Document:

Exhibit
10. 17 

 

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.

 

BUSINESS
COMBINATION AGREEMENT

 

by
and among

 

HARVEST
HEALTH & RECREATION INC.

 

VERANO
HOLDINGS, LLC

 

1204899
B.C. LTD.

 

and

 

1204599
B.C. LTD.

 

dated
as of April 22, 2019

 

    	 	 	 

     

    

 

	ARTICLE
    1 DEFINITIONS	2
	 	 
	ARTICLE
    2 THE BUSINESS COMBINATION	21
	 	 
	 	2.01	Business
    Combination	21
	 	2.02	The
    Company Required Approvals	21
	 	2.03	The
    ParentCo Required Shareholder Approvals	21
	 	2.04	The
    Newco Required Shareholder Approval	22
	 	2.05	The
    Harvest Required Shareholder Approval	22
	 	2.06	The
    Harvest Circular	23
	 	2.07	ParentCo
    Circular	24
	 	2.08	Pre-Arrangement
    Transactions	25
	 	2.09	Payment
    Allocation Schedule	26
	 	2.10	Closing
    Deliveries	27
	 	2.11	Escrow
    Shares	30
	 	2.12	Withholding
    Tax	30
	 	2.13	Exchange
    Ratio Adjustment	30
	 	 	 	 
	ARTICLE
    3 THE ARRANGEMENT	31
	 	 
	 	3.01	The
    Arrangement	31
	 	3.02	The
    Interim Order	31
	 	3.03	The
    Final Order	33
	 	3.04	Effective
    Date of Arrangement	33
	 	3.05	U.S.
    Tax Treatment of the Arrangement	33
	 	3.06	U.S.
    Securities Laws	34
	 	3.07	Equity-Based
    Compensation Plans	35
	 	3.08	ParentCo
    Directors and Officers	35
	 	 	 	 
	ARTICLE
    4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY	36
	 	 
	 	4.01	Organization,
    Qualification and Authorization of the Company	36
	 	4.02	Organization
    of the Company Subsidiaries	36
	 	4.03	Capitalization
    of the Companies	37
	 	4.04	Company
    Subsidiaries	38
	 	4.05	No
    Conflicts; Consents	38
	 	4.06	Financial
    Statements	39
	 	4.07	Undisclosed
    Liabilities	39
	 	4.08	Absence
    of Certain Changes, Events and Conditions	39
	 	4.09	Material
    Contracts	41
	 	4.10	Title
    to Assets; Real Property	43
	 	4.11	Condition
    and Sufficiency of Assets	44
	 	4.12	Intellectual
    Property	45
	 	4.13	Inventory	46
	 	4.14	Accounts
    Receivable	46
	 	4.15	Insurance	46
	 	4.16	Legal
    Proceedings; Governmental Orders	46
	 	4.17	Compliance
    With Laws; Permits	47
	 	4.18	Environmental
    Matters	47
	 	4.19	Employee
    Benefit Matters	48
	 	4.20	Employment
    Matters	51
	 	4.21	Taxes	52

 

    	 	-2-	 

     

    

 

	 	4.22	Related
    Party Transactions	54
	 	4.23	Brokers	55
	 	4.24	Books
    and Records	55
	 	4.25	Information
    in Harvest Circular	55
	 	4.26	Anti-Money
    Laundering	55
	 	4.27	Corrupt
    Practices Legislation	55
	 	4.28	Acquisition
    Targets	56
	 	 	 	 
	ARTICLE
    5 REPRESENTATIONS AND WARRANTIES OF HARVEST	64
	 	 
	 	5.01	Organization,
    Qualification and Authorization of Harvest	64
	 	5.02	No
    Conflicts; Consents	65
	 	5.03	Voting	65
	 	5.04	Governmental
    Approvals and Consents	65
	 	5.05	Brokers	66
	 	5.06	Legal
    Proceedings; Governmental Orders	66
	 	5.07	Tax
    Matters	66
	 	5.08	Public
    Filings	67
	 	5.09	Capitalization	67
	 	5.10	Harvest
    Subsidiaries	68
	 	5.11	Financial
    Statements	69
	 	5.12	Undisclosed
    Liabilities	69
	 	5.13	Absence
    of Certain Changes, Events and Conditions	69
	 	5.14	Inventory	71
	 	5.15	Accounts
    Receivable	71
	 	5.16	Insurance	71
	 	5.17	Compliance
    With Laws; Permits	72
	 	5.18	Environmental
    Matters	72
	 	5.19	Title
    to Assets; Real Property	73
	 	5.20	Intellectual
    Property	73
	 	5.21	Related
    Party Transactions	74
	 	5.22	Books
    and Records	74
	 	5.23	Anti-Money
    Laundering	74
	 	5.24	Corrupt
    Practices Legislation	75
	 	 	 	 
	ARTICLE
    6 REPRESENTATIONS AND WARRANTIES OF PARENTCO	75
	 	 
	 	6.01	Organization
    and Authority of ParentCo	75
	 	6.02	Business
    of ParentCo	76
	 	6.03	Capitalization
    of ParentCo	76
	 	6.04	ParentCo
    Shareholder Approval	77
	 	6.05	Issuance
    of ParentCo Shares	77
	 	6.06	Organization,
    Authorization and Capitalization of Merger Sub	77
	 	 	 	 
	ARTICLE
    7 REPRESENTATIONS AND WARRANTIES OF NEWCO	78
	 	 
	 	7.01	Organization
    and Authorization of Newco	78
	 	7.02	Business
    of Newco	78
	 	7.03	Capitalization
    of Newco	79

 

    	 	-3-	 

     

    

 

	ARTICLE
    8 COVENANTS AND OTHER AGREEMENTS	79
	 	 
	 	8.01	Conduct
    of the Company Business Prior to the Closing	79
	 	8.02	Conduct
    of Harvest Business Prior to the Closing	82
	 	8.03	Transfer
    of Business Permits	82
	 	8.04	Commercial
    Arrangements	83
	 	8.05	Governmental
    Approvals and Consents	84
	 	8.06	Matters
    Relating to ParentCo and Newco	85
	 	8.07	CSE
    Listing of ParentCo Shares	86
	 	8.08	Lock-Up
    Agreements	86
	 	8.09	Access
    to Information	86
	 	8.10	Notice
    of Certain Events	86
	 	8.11	Termination
    of Related Party Agreements	87
	 	8.12	Confidentiality	88
	 	8.13	Company
    Representative	88
	 	8.14	Directors
    & Officers Insurance; Indemnification	89
	 	8.15	Public
    Announcements	90
	 	8.16	Employees	90
	 	8.17	Further
    Assurances	91
	 	8.18	Non-Solicitation
    of Employees	91
	 	8.19	Qualified
    Holdco Exchange Agreements	91
	 	8.20	Qualified
    Pipeline Exchange Agreements	91
	 	8.21	Company
    Non-Solicitation	92
	 	8.22	Harvest
    Non-Solicitation	97
	 	8.23	Disclosure
    Schedules	101
	 	8.24	Pipeline
    Contingent Acquisitions	101
	 	8.25	Shareholder
    Approval	101
	 	8.26	Working
    Capital Loan	101
	 	 	 	 
	ARTICLE
    9 TAX MATTERS	102
	 	 
	 	9.01	Transfer
    Taxes	102
	 	9.02	Termination
    of Existing Tax Sharing Agreements	102
	 	9.03	Tax
    Indemnification By Company Arrangement Participants	102
	 	9.04	Tax
    Treatment of Indemnification Payments	102
	 	9.05	Survival	103
	 	9.06	Overlap	103
	 	9.07	Tax
    Returns	103
	 	 	 	 
	ARTICLE
    10 CONDITIONS TO CLOSING	106
	 	 
	 	10.01	Conditions
    to Obligations of All Parties	106
	 	10.02	Conditions
    to Obligations of Harvest	107
	 	10.03	Conditions
    to Obligations of the Company	109
	 	10.04	Conditions
    to Obligations of ParentCo	110
	 	10.05	Change
    in Law	111
	 	 	 	 
	ARTICLE
    11 SURVIVAL & INDEMNIFICATION	111
	 	 
	 	11.01	Survival	111
	 	11.02	Indemnification
    By Company Arrangement Participants	111
	 	11.03	Indemnification
    By Harvest	112
	 	11.04	Indemnification
    Procedures	112
	 	11.05	Distributions
    from Escrow Fund	113
	 	11.06	Certain
    Limitations	114

 

    	 	-4-	 

     

    

 

	 	11.07	Payments	114
	 	11.08	Non-Recourse
    Parties	115
	 	11.09	Disclaimer
    of Additional Representations and Warranties	115
	 	11.10	Tax
    Treatment of Indemnification Payments	115
	 	11.11	Effect
    of Investigation	115
	 	11.12	Exclusive
    Remedies	115
	 	 	 	 
	ARTICLE
    12 TERMINATION	116
	 	 
	 	12.01	Termination	116
	 	12.02	Notice
    of Termination	118
	 	12.03	Effect
    of Termination	118
	 	 	 	 
	ARTICLE
    13 MISCELLANEOUS	118
	 	 
	 	13.01	Waiver	118
	 	13.02	Expenses	118
	 	13.03	Notices	118
	 	13.04	Interpretation	119
	 	13.05	Headings	120
	 	13.06	Severability	120
	 	13.07	Entire
    Agreement	120
	 	13.08	Successors
    and Assigns	120
	 	13.09	No
    Third-Party Beneficiaries	120
	 	13.10	Amendment
    and Modification; Waiver	120
	 	13.11	Severability	121
	 	13.12	Governing
    Law; Submission to Jurisdiction; Waiver of Jury Trial	121
	 	13.13	Specific
    Performance	121
	 	13.14	Counterparts	121

 

SCHEDULES

 

Schedule
A - Plan of Arrangement

Schedule
B - Harvest Support Agreement Schedule C - Company Support Agreement

Schedule
D - Harvest Arrangement Resolution

Schedule
E - ParentCo Arrangement Resolution

Schedule
F- Locked-Up Shareholders

Schedule
G - Key Licenses

Schedule
H - Acquisition Targets

Schedule
I - Pipeline Contingent Acquisitions

 

    	 	 	 

     

    

 

BUSINESS
COMBINATION AGREEMENT

 

This
Business Combination Agreement (this “Agreement”), dated as of April 22, 2019, is entered into by and among
Harvest Health & Recreation Inc., a British Columbia corporation (“Harvest”), 1204899 B.C. Ltd., a British
Columbia corporation (“ParentCo”), 1204599 B.C. Ltd., a British Columbia corporation (“Newco”),
and Verano Holdings, LLC, a Delaware limited liability company (the “Company”). Each of Harvest, ParentCo,
Newco and the Company shall be referred to herein individually as a “Party” and collectively as the “Parties.”
Capitalized terms used herein have the meanings given such terms in Article 1 or in the Section or Schedule to this Agreement
cross-referenced therein.

 

RECITALS

 

WHEREAS,
Harvest, through the Harvest Subsidiaries, acquires, owns and operates marijuana dispensaries, cultivation facilities and manufacturing
businesses in the United States of America (the “Harvest Business”).

 

WHEREAS,
the Company, through the Company Subsidiaries, owns and/or operates marijuana dispensaries, cultivation facilities and manufacturing
businesses in the United States of America (the “Company Business”).

 

WHEREAS,
Harvest and the Company desire to combine the Harvest Business and Company Business under a combined corporate ownership structure
(the “Combination”) pursuant to which the Harvest Business and Company Business will be indirectly held by
ParentCo, which has been formed for the purposes of giving effect to the transactions contemplated by this Agreement (the “Transactions”).

 

WHEREAS,
the Parties intend that the Combination shall be consummated by the Parties and their Affiliates in accordance with and pursuant
to the provisions of this Agreement and the Plan of Arrangement.

 

WHEREAS,
the Board of Directors of Harvest (the “Harvest Board”) has unanimously: (a) determined that it is in the best
interests of Harvest and the Harvest Shareholders, and has declared it advisable, for Harvest to enter into this Agreement and
consummate the Transactions; (b) approved the execution and delivery of this Agreement by Harvest, and the performance by Harvest
and the Harvest Subsidiaries of their respective obligations under this Agreement, the Plan of Arrangement and the Transactions;
and (c) resolved, subject to the terms and conditions set forth in this Agreement, to recommend approval of the Transactions,
including the Arrangement, by the Harvest Shareholders, in accordance with the BCBCA.

 

WHEREAS,
the Board of Managers of the Company (the “Company Board”) has unanimously: (a) determined that it is in the
best interests of the Company and the Company Unit Holders, and has declared it advisable, for the Company to enter into this
Agreement and consummate the Transactions; (b) determined that the Combination is a “Reorganization” as defined in
and pursuant to the Operating Agreement and requires the approval of a super-majority of the members of the Company Board as well
as the requisite approval of the members of the Company; and (c) approved the execution and delivery of this Agreement by the
Company, and the performance by the Company and the Company Subsidiaries of their respective obligations under this Agreement
and the Transactions, in each case, in accordance with the DLLCA and the Operating Agreement.

 

WHEREAS,
the Board of Directors of ParentCo (the “ParentCo Board”) has unanimously: (a) determined that it is in the
best interests of ParentCo, and has declared it advisable, for ParentCo to enter into this Agreement and consummate the Transactions;
(b) approved the execution and delivery of this Agreement by ParentCo, and the performance by ParentCo of its obligations under
this Agreement, the Plan of Arrangement and the Transactions; (c) resolved, subject to the terms and conditions set forth in this
Agreement and the Interim Order, to seek the approval of the Arrangement, the Transactions and the adoption of this Agreement
by the Company Unit Holders and the Qualified Holdco Shareholders who would become shareholders in the Resulting Issuer as a result
of the Transactions (the “Prospective Shareholders”) and recommend such approval, in each case, as applicable,
in accordance with the BCBCA.

 

    	 	 	 

     

    

 

WHEREAS,
the Board of Directors of Newco (the “Newco Board”) and the Newco Shareholder have unanimously: (a) determined
that it is in the best interests of Newco, and has declared it advisable, for Newco to enter into this Agreement and consummate
the Transactions; and (b) approved the execution and delivery of this Agreement by Newco, and the performance by Newco of its
obligations under this Agreement, the Plan of Arrangement and the Transactions.

 

WHEREAS,
simultaneously with the execution and delivery of this Agreement and as a condition and inducement to the willingness of the Company
and ParentCo to enter into this Agreement, Harvest is delivering to the Company and ParentCo a support agreement attached hereto
as Schedule “B”, executed by certain Harvest Shareholders, pursuant to which such Harvest Shareholders have agreed,
among other things, to vote their Harvest Shares in favour of the Harvest Arrangement Resolution and approve the Transactions.

 

WHEREAS,
simultaneously with the execution and delivery of this Agreement and as a condition and inducement to the willingness of Harvest
to enter into this Agreement, the Company is delivering to Harvest a support agreement attached hereto as Schedule “C”,
executed by certain Company Unit Holders, pursuant to which such Company Unit Holders have agreed, among other things, to vote
their Company Units in favour of the ParentCo Arrangement Resolution.

 

WHEREAS,
for United States federal income tax purposes: (a) ParentCo (which, following the effective time of the ParentCo Amalgamation
means the Resulting Issuer) is intended to be treated as a U.S. domestic corporation under Section 7874 of the Code; (b) the Harvest
Exchange is intended to qualify as a reorganization governed by the provisions of Section 368(a) of the Code; (c) the Unit Exchange,
the Qualified Holdco Exchange, the Qualified Pipeline Exchange, the Harvest Exchange and the Harvest Roll- up Exchange are intended
to constitute a single integrated transaction qualifying as a tax-deferred transaction governed by the provisions of Section 351
of the Code; and (d) this Agreement is intended to constitute a “plan of reorganization” under Section 368 of the
Code.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
1 DEFINITIONS

 

The
following terms have the meanings specified or referred to in this Article 1:

 

“280E”
has the meaning set forth in Section 9.07(h).

 

“ACA”
has the meaning set forth in Section 4.19(i).

 

“Acquisition
Target” means a Person listed on Schedule “H” that is acquired in a Pipeline Binding Acquisition for which
the definitive acquisition documents have been executed by the parties thereto on or prior to the date of this Agreement, except
that the Parties agree that [***] is not an Acquisition Target.

 

    	 	-2-	 

     

    

 

“Acquisition
Target Benefit Plan” has the meaning set forth in Section 4.28(n)(i).

 

“Acquisition
Target Cannabis Permits” has the meaning set forth in Section 4.28(l)(ii).

 

“Acquisition
Target Equity Interests” has the meaning set forth in Section 4.28(b).

 

“Acquisition
Target Financial Statements” has the meaning set forth in Section 4.28(e).

 

“Acquisition
Target Intellectual Property” has the meaning set forth in Section 4.28(j)(i).

 

“Acquisition
Target Leased Property” has the meaning set forth in Section 4.28(i)(ii).

 

“Acquisition
Target Leases” has the meaning set forth in Section 4.28(i)(ii).

 

“Acquisition
Target Material Contracts” has the meaning set forth in Section 4.28(h).

 

“Acquisition
Target Owned Real Property” has the meaning set forth in Section 4.28(i)(ii).

 

“Acquisition
Target Real Property” has the meaning set forth in Section 4.28(i)(ii).

 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether
at law or in equity.

 

“Actual
Fraud” means an actual, knowing and intentional misrepresentation by a Person who intended that the Person claiming
fraud relied on the misrepresentation to its detriment.

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Aggregate
Threshold” has the meaning set forth in Section 11.06(a).

 

“Agreement”
has the meaning set forth in the preamble.

 

“Arrangement”
means the arrangement pursuant to section 288 of the BCBCA on the terms and pursuant to the conditions set forth in the Plan of
Arrangement, subject to any amendments to the Plan of Arrangement made in accordance with the terms of this Agreement or made
at the direction of the Court in the Final Order with the prior written consent of Harvest and the Company, each acting reasonably.

 

“Arrangement
Consideration Shares” means the Resulting Issuer Shares to be issued by the Resulting Issuer under the Plan of Arrangement
to (i) ParentCo Shareholders and Newco Shareholders pursuant to the ParentCo Amalgamation, and (ii) Harvest Shareholders pursuant
to the Harvest Exchange.

 

“Arrangement
Parties” means Harvest, ParentCo and Newco.

 

“BCBCA”
means the Business Corporations Act (British Columbia) and the regulations thereunder, as amended.

 

    	 	-3-	 

     

    

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in any of Chicago, Illinois,
Phoenix, Arizona or Vancouver, British Columbia are authorized or required by Law to be closed for business.

 

“Buyer
Indemnitees” has the meaning set forth in Section 11.02.

 

“Canadian
Securities Laws” means applicable Canadian provincial and territorial securities laws.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.

 

“Closing”
has the meaning set forth in Section 2.10(a).

 

“Closing
Date” means the date on which the Closing occurs, which date shall be two Business Days after the last of the conditions
to Closing set forth in Article 10 have been satisfied or waived (other than conditions which, by their nature, are to be satisfied
on the Closing Date), or such other date as Harvest and the Company may mutually agree upon in writing prior to the Closing Date,
provided further that the Closing Date shall be the same date as the Effective Date.

 

“Closing
Time” means 10:00 a.m. (Vancouver time) on the Closing Date, or such other time on the Closing Date as Harvest and the
Company may agree upon in writing prior to the Closing Date.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Combination”
has the meaning set forth in the Recitals.

 

“Commercial
Arrangement” has the meaning set forth in Section 8.04(a).

 

“commercially
reasonable efforts” means efforts that are fair, moderate, equitable and suitable under the circumstances and appropriate
to the end in view to be taken by a Person as promptly as practicable that would be reasonable in the circumstances for similarly
situated parties, which efforts do not guarantee an outcome and do not require that Person to (a) engage in conduct that would
have a materially adverse effect on such Person; (b) take illegal actions; or (c) take any action that would harm its existence
or solvency.

 

“Companies”
means the Company together with the Company Subsidiaries.

 

“Company”
has the meaning set forth in the preamble.

 

“Company
Acquisition Proposal” means, other than the Transactions, the Pipeline Acquisitions and any transaction among the Company
and one or more of its Subsidiaries, any offer, proposal or inquiry from any Person or group of Persons, whether or not in writing
and whether or not delivered to the shareholders or members, as the case may be, of the Company, after the date hereof and prior
to the ParentCo Meeting relating to: (a) any acquisition or purchase, direct or indirect, of: (i) the assets of the Company and/or
one or more of its Subsidiaries that, individually or in the aggregate, constitute all or substantially all of the consolidated
assets of the Company and its Subsidiaries, taken as a whole, or (ii) all or substantially all of any voting or equity securities
or membership interests of the Company or any one or more of its Subsidiaries that, in the case of such Subsidiaries, individually
or in the aggregate, contribute all or substantially all of the consolidated revenues or constitute all or substantially all of
the consolidated assets of the Company and its Subsidiaries, taken as a whole; (b) any take-over bid, tender offer or exchange
offer that, if consummated, would result in such Person or group of Persons beneficially owning all or substantially all of any
class of voting or equity securities or membership interests of the Company; (c) a plan of arrangement, merger, amalgamation,
consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution or other similar
transaction involving the Company and/or any of its Subsidiaries whose assets or revenues, individually or in the aggregate, constitute
100% or more of the consolidated assets or revenues, as applicable, of the Company and its Subsidiaries, taken as a whole; or
(d) a public announcement or other public disclosure of an intention to do the foregoing, directly or indirectly.

 

    	 	-4-	 

     

    

 

“Company
Anti-Money Laundering Laws” has the meaning set forth in Section 4.26.

 

“Company
Arrangement Participant Indemnitees” has the meaning set forth in Section 11.03.

 

“Company
Arrangement Participants” means all Company Unit Holders, Qualified Holdco Shareholders and Qualified Pipeline Equity
Holders who receive Arrangement Consideration Shares pursuant to the Arrangement.

 

“Company
Benefit Plan” has the meaning set forth in Section 4.19(a).

 

“Company
Board” has the meaning set forth in the Recitals.

 

“Company
Business” has the meaning set forth in the Recitals.

 

“Company
Cannabis Consents” means any and all consents or other requirements of any Governmental Agency or under any Company
Cannabis Permit held by the Company or any Company Subsidiary or Affiliate of the Company in connection with the Company Business.

 

“Company
Cannabis Permits” means the local and state cannabis permits issued to the Company or a Company Subsidiary, all of which
are listed in Section 4.17(b) of the Company Disclosure Schedules.

 

“Company
Change in Recommendation” has the meaning set forth in Section 12.01(f)(i).

 

“Company
Class A Units” means the Class A common units of the Company, as established by the Operating Agreement.

 

“Company
Class B Units” means the Class B common units of the Company, as established by the Operating Agreement.

 

“Company
Disclosure Schedules” means the disclosure schedules to this Agreement delivered by the Company concurrently with the
execution and delivery of this Agreement, as may be modified, supplemented or amended in accordance with Section 8.23.

 

“Company
Equity Instruments” has the meaning set forth in Section 4.03(d).

 

“Company
Financial Statements” has the meaning set forth in Section 4.06.

 

“Company
Information” has the meaning set forth in Section 2.06(c).

 

“Company
Insurance Policies” has the meaning set forth in Section 4.15.

 

“Company
Intellectual Property” means all Intellectual Property that is owned by the Companies.

 

“Company
IP Agreements” means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements, covenants
not to sue, permissions and other Contracts (including any right to receive or obligation to pay royalties or any other consideration),
whether written or oral, relating to Intellectual Property to which the Company or a Subsidiary is a party, beneficiary or otherwise
bound.

 

    	 	-5-	 

     

    

 

“Company
IP Registrations” means all Company Intellectual Property that is subject to any issuance registration, application
or other filing by, to or with any Governmental Authority or authorized private registrar in any jurisdiction, including registered
trademarks, domain names and copyrights, issued and reissued patents and pending applications for any of the foregoing.

 

“Company
Key Employee” has the meaning set forth in Section 8.16.

 

“Company
Material Adverse Effect” means a Material Adverse Effect with respect to the Companies, taken as a whole.

 

“Company
Proposed Agreement” has the meaning set forth in Section 8.21(e).

 

“Company
Real Property” means the Owned Real Property and Leased Property, together with all buildings, structures and facilities
located thereon.

 

“Company
Representative” means George Archos, or any successor who is appointed by George Archos, who is designated to represent
each of the Company Arrangement Participants for purposes of this Agreement, including prior to the Closing for the purposes set
forth herein.

 

“Company
Specified Representations” has the meaning set forth in Section 10.02(a).

 

“Company
Subsidiaries” mean the Subsidiaries of the Company, but excludes in all cases any Acquisition Target and all Persons
proposed to be acquired in a Pipeline Contingent Transaction.

 

“Company
Subsidiaries Equity Interests” has the meaning set forth in Section 4.03(e).

 

“Company
Superior Proposal” means an unsolicited bona fide Company Acquisition Proposal made by a third party to the Company
or the Company Unit Holders that is communicated to the Company Board in writing prior to the ParentCo Meeting: (a) that the Company
board determines in good faith (after receipt of advice from its outside legal counsel and financial advisors) is reasonably capable
of being completed without undue delay, taking into account all legal, financial, regulatory and other aspects of such proposal
and the party making such proposal; (b) is not subject to any financing condition and in respect of which any required financing
to complete such Company Acquisition Proposal has been demonstrated to be available to the satisfaction of the Company Board,
acting in good faith (after receipt of advice from its outside legal counsel); (c) which is not subject to a due diligence and/or
access condition; (d) that did not result from a breach of Section 8.21 by the Company or its Representatives; (e) is made available
to the Company Unit Holders or other equity securities, as applicable, on the same terms and conditions; and (f) in respect of
which the Company Board determines in good faith (after receipt of advice from its outside legal counsel and financial advisors
with respect to (X) below) that (X) failure to recommend such Company Acquisition Proposal to its members or other equity holders
would be inconsistent with its fiduciary duties and (Y) which would, taking into account all of the terms and conditions of such
Company Acquisition Proposal, if consummated in accordance with its terms (but not assuming away any risk of non-completion),
result in a transaction more favourable to the Company Unit Holders from a financial point of view than the Combination (including
any adjustment to the terms and conditions of the Combination proposed by Harvest pursuant to Subsection 8.21(f) and after taking
into account the impact to the Company of paying the Termination Fee).

 

“Company
Unit Holders” means the holders of Company Units.

 

    	 	-6-	 

     

    

 

“Company
Units” means the Company Class A Units and Company Class B Units.

 

“Company
U.S. Merger” has the meaning set forth in Section 2.08(b)(i).

 

“Confidentiality
Agreement” means the Confidentiality Agreement dated February 16, 2019 by and between the Company and Harvest Enterprises,
Inc.

 

“Contingent
Target” means a Person listed on Schedule “I” that is acquired in a Pipeline Contingent Acquisition for
which the definitive acquisition documents have not been executed by the parties thereto on or prior to the date of this Agreement
except that the Parties agree that [***] is a Contingent Target.

 

“Contracts”
means all written contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint
ventures and all other agreements, commitments and legally binding arrangements.

 

“Court”
means the Supreme Court of British Columbia.

 

“CSA”
means the Controlled Substances Act.

 

“CSE”
means the Canadian Stock Exchange.

 

“D&O
Indemnified Persons” has the meaning set forth in Section 8.14.

 

“D&O
Tail Policy” has the meaning set forth in Section 8.14.

 

“Depositary”
has the meaning ascribed thereto in the Plan of Arrangement.

 

“DGV”
has the meaning set forth in Section 4.28(j)(iii).

 

“DGV
Intellectual Property” has the meaning set forth in Section 4.28(j)(iii).

 

“Direct
Claim” has the meaning set forth in Section 11.04(c).

 

“DLLCA”
means the Delaware Limited Liability Company Act, as amended.

 

“Dollars”
or “$” means the lawful currency of the United States.

 

“Effective
Date” has the meaning ascribed thereto in the Plan of Arrangement.

 

“Effective
Time of the Arrangement” has the meaning ascribed to “Effective Time” in the Plan of Arrangement.

 

“Encumbrance”
means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option,
security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including
any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

“Environmental
Claim” means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment arising
therefrom, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility for the
costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages,
property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising
out of, based on or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any actual or
alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit.

 

    	 	-7-	 

     

    

 

“Environmental
Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a)
relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human
health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b)
concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse,
treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials.
The term “Environmental Law” includes, without limitation, the following (including their implementing regulations
and any state analogs): CERCLA; the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act
of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq. (“RCRA”);
the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§
1251 et seq. (“CWA”); the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601
et seq. (“TSCA”); the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§
11001 et seq. (“EPCRA”); the Clean Air Act of 1966, as amended by the Clean Air Act Amendments of
1990, 42 U.S.C. §§ 7401 et seq. (“CAA”); and the Occupational Safety and Health Act of 1970,
as amended, 29 U.S.C. §§ 651 et seq. (“OSHA”).

 

“Environmental
Notice” means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim
relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.

 

“Environmental
Permit” means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other action required
under or issued, granted, given, authorized by or made pursuant to Environmental Law.

 

“ERISA”
means the United States Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means all employers (whether or not incorporated) that would be treated together with the Companies or any
of their Affiliates as a “single employer” within the meaning of Section 414 of the Code.

 

“Escrow
Agent” means Odyssey Trust Company, or such other escrow agent as shall be agreed to between Harvest and the Company,
acting reasonably.

 

“Escrow
Agreement” means the escrow agreement which satisfies the requirements of Section 2.02 of IRS Revenue Procedure 84-42,
to be entered into among ParentCo, the Company Representative, the Qualified Holdco Shareholders and the Escrow Agent at or prior
to the Closing Time, in form and substance agreed upon by all such parties, acting reasonably, pursuant to which the Escrow Shares
shall be held by the Escrow Agent until released as contemplated herein and therein.

 

“Escrow
Shares” means, collectively, 10% of the aggregate number of Resulting Issuer Subordinate Voting Shares and 10% of the
aggregate number of Resulting Issuer Multiple Voting Shares to be issued by the Resulting Issuer under the Arrangement pursuant
to the ParentCo Amalgamation to former Participating Company Unit Holders and former Qualified Holdco Shareholders in exchange
for their ParentCo Shares.

 

“Final
Order” means the final order of the Court pursuant to Section 291 of the BCBCA, in a form acceptable to Harvest and
ParentCo, each acting reasonably, approving the Arrangement, as such order may be amended by the Court with the consent of Harvest
and ParentCo, each acting reasonably, any time prior to the Effective Date or, if appealed, then, unless such appeal is withdrawn
or denied, as affirmed or as amended, on appeal, provided that any such amendment is acceptable to Harvest and ParentCo, each
acting reasonably, and complies with the restrictions on amendment set forth in Section 13.10.

 

    	 	-8-	 

     

    

 

“Governmental
Authority” means any federal, state, provincial, local or foreign government or political subdivision thereof, or any
agency, or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental
regulatory authority or quasi- governmental authority (to the extent that the rules, regulations or orders of such organization
or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any
Governmental Authority.

 

“Government
Contracts” has the meaning set forth in Section 4.09(a)(x).

 

“Harvest”
has the meaning set forth in the preamble.

 

“Harvest
Acquisition Proposal” means, other than the Transactions and other than any transaction among Harvest and one or more
of its Subsidiaries, any offer, proposal or inquiry from any Person or group of Persons, whether or not in writing and whether
or not delivered to the Harvest Shareholders, after the date hereof and prior to the Harvest Meeting relating to: (a) any transaction
or agreement that could reasonably be expected to materially impede or delay the consummation of the Transactions; or (b) a public
announcement or other public disclosure of an intention to do the foregoing, directly or indirectly.

 

“Harvest
Anti-Money Laundering Laws” has the meaning set forth in Section 5.23.

 

“Harvest
Arrangement Resolution” means a special resolution of the Harvest Shareholders in respect of the Arrangement to be considered
at the Harvest Meeting, in substantially the form of Schedule “D” hereto.

 

“Harvest
Board” has the meaning set forth in the Recitals.

 

“Harvest
Business” has the meaning set forth in the Recitals.

 

“Harvest
Cannabis Permits” means the local and state cannabis permits issued to Harvest, the Harvest Subsidiaries, or another
Person, which are required to conduct the Harvest Business as of the date of this Agreement, all of which are listed in Section
5.17(b) of the Harvest Disclosure Schedules.

 

“Harvest
Change in Recommendation” has the meaning set forth in Section 12.01(g)(i).

 

“Harvest
Circular” means the notice of the Harvest Meeting to be sent to Harvest Shareholders, and the accompanying management
information circular to be prepared in connection with the Harvest Meeting, together with any amendments thereto or supplements
thereof in accordance with the terms of this Agreement.

 

“Harvest
Companies” mean Harvest together with its Subsidiaries.

 

“Harvest
Disclosure Documents” has the meaning set forth in Section 5.08.

 

    	 	-9-	 

     

    

 

“Harvest
Disclosure Schedules” means the disclosure schedules to this Agreement delivered by Harvest concurrently with the execution
and delivery of this Agreement, as may be modified, supplemented or amended in accordance with Section 8.23.

 

“Harvest
Dissent Rights” means any rights of dissent exercisable by the Harvest Shareholders pursuant to Section 238 of the BCBCA
in respect of the Harvest Arrangement Resolution.

 

“Harvest
Equity Incentive Plan” means the Harvest Health & Recreation, Inc. 2018 Stock and Incentive Plan approved by the
Harvest Shareholders on November 13, 2018.

 

“Harvest
Equity Incentive Plan Resolution” means an ordinary resolution of the Harvest Shareholders to approve the Resulting
Issuer Equity Incentive Plan.

 

“Harvest
Exchange” means the exchange by Harvest Shareholders of their Harvest Shares for Resulting Issuer Shares pursuant to
the Plan of Arrangement.

 

“Harvest
Financial Statements” has the meaning set forth in Section 5.11.

 

“Harvest
Information” has the meaning set forth in Section 2.06(c).

 

“Harvest
Insurance Policies” has the meaning set forth in Section 5.16.

 

“Harvest
Intellectual Property” means all Intellectual Property that is owned by Harvest and the Harvest Subsidiaries.

 

“Harvest
IP Agreements” means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements, covenants
not to sue, permissions and other Contracts (including any right to receive or obligation to pay royalties or any other consideration),
whether written or oral, relating to Intellectual Property to which Harvest and/or the Harvest Subsidiaries are a party, beneficiary
or otherwise bound.

 

“Harvest
IP Registrations” means all Harvest Intellectual Property that is subject to any issuance registration, application
or other filing by, to or with any Governmental Authority or authorized private registrar in any jurisdiction, including registered
trademarks, domain names and copyrights, issued and reissued patents and pending applications for any of the foregoing.

 

“Harvest
Letters of Transmittal” means the letter of transmittal in a form to be agreed to by the Parties, to be delivered to
each of the Harvest Shareholders in connection with the Harvest Meeting.

 

“Harvest
Lock-Up Agreements” has the meaning set forth in Section 8.08(b).

 

“Harvest
Material Adverse Effect” means a Material Adverse Effect with respect to Harvest and the Harvest Subsidiaries, taken
as a whole.

 

“Harvest
Meeting” means the meeting of Harvest Shareholders, including any adjournment or postponement thereof in accordance
with the terms of this Agreement, that is to be convened as provided by the Interim Order to consider, and if deemed advisable
approve, the Harvest Arrangement Resolution and the Harvest Equity Incentive Plan Resolution.

 

“Harvest
Multiple Voting Shares” means the shares in the capital of Harvest designated as Multiple Voting Shares.

 

    	 	-10-	 

     

    

 

“Harvest
Optionholders” means the holders of Harvest Options.

 

“Harvest
Options” means the options to purchase Harvest Subordinate Voting Shares awarded under the Harvest Equity Incentive
Plan.

 

“Harvest
Proposed Agreement” has the meaning set forth in Section 8.22(e).

 

“Harvest
Public Reports” means all documents filed by or on behalf of Harvest on SEDAR as at the date of this Agreement.

 

“Harvest
Real Property” means the real property owned or leased by Harvest as at the date of this Agreement, together with all
buildings, structures and facilities located thereon.

 

“Harvest
Required Shareholder Approval” has the meaning set forth in Section 3.02(c).

 

“Harvest
Roll-up Entity” means a Person that: (i) carries on a business that is related to or ancillary to the Harvest Business;
and (ii) is acquired by Harvest or a Harvest Subsidiary, or in respect of which a definitive acquisition agreement is entered
into by Harvest or a Harvest Subsidiary, prior to the Effective Date.

 

“Harvest
Roll-up Entity Interests” means shares or equity ownership interests in any Harvest Roll-up Entity.

 

“Harvest
Roll-up Exchange” means the exchange of Harvest Roll-up Entity Interests for Harvest Shares or ParentCo Shares in conjunction
with the Closing.

 

“Harvest
Shareholders” means the holders of Harvest Shares.

 

“Harvest
Shares” means the Harvest Super Voting Shares, the Harvest Multiple Voting Shares and the Harvest Subordinate Voting
Shares.

 

“Harvest
Specified Representations” has the meaning set forth in Section 10.03(a).

 

“Harvest
Subordinate Voting Shares” means the shares in the capital of Harvest designated as Subordinate Voting Shares.

 

“Harvest
Subsidiaries Equity Interests” has the meaning set forth in Section 5.10(d).

 

“Harvest
Subsidiary” has the meaning set forth in Section 5.10(a).

 

“Harvest
Super Voting Shares” means the shares in the capital of Harvest designated as Super Voting Shares.

 

“Harvest
Superior Proposal” means an unsolicited bona fide Harvest Acquisition Proposal made by a third party to Harvest or to
the Harvest Shareholders that is communicated to the Harvest Board in writing prior to the Harvest Meeting: (a) that is reasonably
capable of being completed without undue delay, taking into account all legal, financial, regulatory and other aspects of such
proposal and the party making such proposal; (b) is not subject to any financing condition and in respect of which any required
financing to complete such Harvest Acquisition Proposal has been demonstrated to be available to the satisfaction of the Harvest
Board, acting in good faith (after receipt of advice from its outside legal counsel); (c) which is not subject to a due diligence
and/or access condition; (d) that did not result from a breach of Section 8.22 by Harvest or its Representatives; and (e) in respect
of which the Harvest Board determines in good faith (after receipt of advice from its outside legal counsel with respect to (X)
below) that (X) failure to recommend such Harvest Acquisition Proposal to the Harvest Shareholders or other equity holders would
be inconsistent with its fiduciary duties and (Y) which would, taking into account all of the terms and conditions of such Harvest
Acquisition Proposal, if consummated in accordance with its terms (but not assuming away any risk of non-completion), result in
a transaction more favourable to the Harvest Shareholders from a financial point of view than the Combination (including any adjustment
to the terms and conditions of the Combination proposed by the Company pursuant to Subsection 8.22(f) and after taking into account
the impact to Harvest of paying the Termination Fee).

 

    	 	-11-	 

     

    

 

“Hazardous
Materials” means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid,
mineral or gas, in each case, whether naturally occurring or manmade, that is defined under Environmental Law as hazardous, acutely
hazardous, toxic, or words of similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived
products, radon, radioactive materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam
insulation, and polychlorinated biphenyls.

 

“HSR
Act” means the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 

“HSR
Approval” has the meaning set forth in Section 8.05(c).

 

“IFRS”
means International Financial Reporting Standards in effect as of the applicable date of determination.

 

“Income
Tax Return” means a Tax Return (including, without limitation, IRS Form 1065) filed or required to be filed in connection
with the determination, assessment or collection of any Income Tax of any Person or the administration of any Laws or administrative
requirements relating to any Income Tax.

 

“Income
Taxes” means Taxes (a) imposed on, or with reference to, net income or gross receipts, or (b) imposed on, or with reference
to, multiple bases including net income or gross receipts.

 

“Indemnified
Party” has the meaning set forth in Section 11.04.

 

“Indemnifying
Party” has the meaning set forth in Section 11.04.

 

“Initial
ParentCo Shares” has the meaning set forth in Section 6.03(a)(ii).

 

“Initial
ParentCo Shareholder” means George P. Archos.

 

“Intellectual
Property” means all intellectual property and industrial property rights and assets, and all rights, interests and protections
that are associated with, similar to, or required for the exercise of, any of the foregoing, however arising, pursuant to the
Laws of any jurisdiction throughout the world, whether registered or unregistered, including any and all: (a) trademarks, service
marks, trade names, brand names, logos, trade dress, design rights and other similar designations of source, sponsorship, association
or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications and renewals
for, any of the foregoing; (b) internet domain names, whether or not trademarks, registered in any top-level domain by any authorized
private registrar or Governmental Authority, web addresses, web pages, websites and related content, accounts with Twitter, Facebook
and other social media companies and the content found thereon and related thereto, and URLs; (c) works of authorship, expressions,
designs and design registrations, whether or not copyrightable, including copyrights, author, performer, moral and neighboring
rights, and all registrations, applications for registration and renewals of such copyrights; (d) inventions, discoveries, trade
secrets, business and technical information and know-how, databases, data collections and other confidential and proprietary information
and all rights therein; (e) patents (including all reissues, divisionals, provisionals, continuations and continuations-in-part,
re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental
Authority-issued indicia of invention ownership (including inventor’s certificates, petty patents and patent utility models).

 

    	 	-12-	 

     

    

 

“Intended
U.S. Tax Treatment” has the meaning set forth in Section 3.05.

 

“Interim
Order” means the interim order of the Court contemplated by Section 3.02 and made pursuant to Section 291 of the BCBCA
providing for, among other things, the calling and holding of the Harvest Meeting and ParentCo Meeting, and the obtaining of the
Harvest Required Shareholder Approval and ParentCo Required Shareholder Approval, as the same may be amended by the Court with
the consent of Harvest and the Company, each acting reasonably, provided that any such amendment complies with the restrictions
on amendment set forth in Section 13.10.

 

“IRS”
means the United States Internal Revenue Service.

 

“Key
Licenses” means the Company Cannabis Permits held by the Companies set forth in Schedule “G” hereto.

 

“Knowledge
of Harvest” or “Harvest’s Knowledge”, or any other similar knowledge qualification related
to any Harvest Companies, means the actual knowledge of Jason Vedadi and Steve White after due inquiry.

 

“Knowledge
of the Company” or the “Company’s Knowledge”, or any other similar knowledge qualification
related to any Companies, means the actual knowledge of George Archos, Sam Dorf and Darren Weiss after due inquiry.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority applicable to a Party, including its business and operations, except for any federal
statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, or other rule of law
related to the federal illegality of cannabis, including, but not limited to, the manufacture, sale, and/or distribution of cannabis
or cannabis infused products or financial, banking or other services related thereto.

 

“Leased
Property” has the meaning set forth in Section 4.10(b).

 

“Leases”
has the meaning set forth in Section 4.10(b).

 

“Liability”
means any liability, obligation or commitment of any nature whatsoever, whether asserted or unasserted, absolute or contingent,
accrued or unaccrued, matured or unmatured or otherwise.

 

“Lock-Up
Agreements” means the lock-up agreements in form and substance agreed upon by the Company and Harvest, acting reasonably,
between the Resulting Issuer and the Locked-Up Shareholders setting forth the terms and conditions upon which they have agreed,
among other things, to certain transfer restrictions on their Resulting Issuer Shares issued in the Arrangement.

 

“Locked-Up
Shareholders” means certain Company Arrangement Participants as specified in Schedule “F” hereto, who have
entered into the Lock-Up Agreements.

 

“Locked-Up
Shares” has the meaning set forth in Section 8.08.

 

    	 	-13-	 

     

    

 

“Losses”
means losses, damages, liabilities, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind, including
reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any
insurance providers; provided, however, that “Losses” shall not include indirect or punitive damages, except
in the case of Actual Fraud or to the extent actually awarded to a Governmental Authority or other third-party.

 

“Material
Adverse Effect” means for any Party, any event, occurrence, fact, condition or change that is, or could reasonably be
expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition
(financial or otherwise) or assets of such Party and its Subsidiaries, taken as a whole, or (b) the ability of such Party to consummate
the Transactions to which it is a party on a timely basis; provided, however, that “Material Adverse Effect” shall
not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general
economic or political conditions; (ii) any changes in financial or securities markets in general; (iii) acts of war (whether or
not declared), armed hostilities or terrorism, or the escalation or worsening thereof; (iv) any action required or permitted by
this Agreement; (v) any changes in applicable Laws or accounting rules, including IFRS, and Laws governing the ownership, transfer,
and/or management of Permits, the Harvest Business or the Company Business; (vi) the public announcement, pendency or completion
of the Transactions; (vii) Harvest or a Harvest Subsidiary completing the acquisition of one or more Permits and its failure or
inability to divest, transfer, or otherwise dispose of such Permit prior to the Closing Date which has the effect of requiring,
whether by Law or Contract, any of the Companies to divest, transfer, or otherwise dispose of any Company Cannabis Permit(s);
(viii) Harvest or a Harvest Subsidiary completing the acquisition of any Permits and its failure or inability to divest, transfer
or otherwise dispose of such Permit prior to the Closing Date which materially impedes the ability of the Company to transfer
any Company Cannabis Permit or enter into a Commercial Arrangement with respect to any Company Cannabis Permit including, any
Key License; (ix) the public announcement, pendency or completion of the Transactions or (x) any matter disclosed in any of the
Company Disclosure Schedules, or the Harvest Disclosures Schedules; provided further, however, that any event, occurrence, fact,
condition or change referred to in clauses (i) through (iii) above shall be taken into account in determining whether a Material
Adverse Effect has occurred or could reasonably be expected to occur to the extent (and only to the extent) that such event, occurrence,
fact, condition or change has a disproportionate effect on such Party and its Subsidiaries, taken as a whole.

 

“Material
Contract” has the meaning set forth in Section 4.09(a).

 

“Merger
Sub” means the Delaware limited liability company to be formed by ParentCo as contemplated by Section 2.08(a).

 

“Merger
Sub Units” has the meaning set forth in Section 6.06(f).

 

“Meeting
Deadline” means July 31, 2019.

 

“MI
61-101” means Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special

Transactions.

 

“MVS
Conversion Ratio” means the “Conversion Ratio” as defined in the rights and restrictions attached to the
Harvest Multiple Voting Shares in Harvest’s articles and notice of articles, as such Conversion Ratio may be adjusted from
time to time in accordance with the rights and restrictions attached to the Harvest Multiple Voting Shares, which Conversion Ratio
at the date hereof is equal to 100.

 

“MVS
Exchange Ratio” means the quotient (rounded to six decimal places) obtained when (a) the SVS Exchange Ratio, is divided
by (b) the MVS Conversion Ratio, as such MVS Exchange Ratio may be adjusted in accordance with Section 2.13.

 

    	 	-14-	 

     

    

 

“Newco”
has the meaning set forth in the preamble.

 

“Newco
Arrangement Resolution” means a special resolution of the Newco Shareholder approving the Arrangement.

 

“Newco
Board” has the meaning set forth in the Recitals.

 

“Newco
Permitted Activities” has the meaning set forth in Section 7.02(a)(i).

 

“Newco
Share” has the meaning set forth in Section 7.03(b).

 

“Newco
Shareholder” means Jason Vedadi.

 

“Non-Key
Licenses” has the meaning set forth in Section 8.03(c).

 

“Non-Recourse
Party” has the meaning set forth in Section 11.08.

 

“Off-the-Shelf
Software” means license, subscription, and/or other services agreements relating to the license and/or use of software,
software-as-a-service and/or other cloud computing services and/or IT hardware generally publicly available for an annual or one-time
license fee of no more than $[***] in the aggregate.

 

“Operating
Agreement” means the Limited Liability Operating Agreement of the Company dated as of August 16, 2018.

 

“Owned
Real Property” has the meaning set forth in Section 4.10(b).

 

“Outside
Date” means June 30, 2020.

 

“ParentCo”
has the meaning set forth in the preamble, provided that following the effective time of the ParentCo Amalgamation pursuant to
the Plan of Arrangement, “ParentCo” shall mean the Resulting Issuer.

 

“ParentCo
Amalgamation” has the meaning ascribed thereto in the Plan of Arrangement.

 

“ParentCo
Arrangement Resolution” means a special resolution of the ParentCo Shareholders in respect of the Arrangement to be
considered at the ParentCo Meeting, in substantially the form of Schedule “E” hereto.

 

“ParentCo
Articles Amendment” has the meaning set forth in Section 2.07(e).

 

“ParentCo
Board” has the meaning in the Recitals.

 

“ParentCo
Circular” means the notice of the ParentCo Meeting to be sent to Prospective Shareholders, and the accompanying information
circular to be prepared in connection with the ParentCo Meeting, together with any amendments thereto or supplements thereof in
accordance with the terms of this Agreement.

 

“ParentCo
Common Shares” means the shares in the capital of ParentCo designated as Common Shares.

 

“ParentCo
Dissent Rights” has the meaning set forth in Section 2.03(b)(iii).

 

    	 	-15-	 

     

    

 

“ParentCo
Equity Incentive Plan Resolution” means an ordinary resolution of the ParentCo Shareholders to approve the Resulting
Issuer Equity Incentive Plan.

 

“ParentCo
Letters of Transmittal” means the letter of transmittal in a form to be agreed to by the Parties, to be delivered to
each of the ParentCo Shareholders in connection with the ParentCo Meeting.

 

“ParentCo
Meeting” means the meeting of the Initial ParentCo Shareholder and the Prospective Shareholders, including any adjournment
or postponement thereof in accordance with the terms of this Agreement, that is to be convened as provided by the Interim Order
to consider, and if deemed advisable approve, the ParentCo Arrangement Resolution and the ParentCo Equity Incentive Plan Resolution.

 

“ParentCo
Multiple Voting Shares” means the shares in the capital of ParentCo designated as Multiple Voting Shares, which ParentCo
Multiple Voting Shares shall have substantially the same rights and restrictions as the Harvest Multiple Voting Shares.

 

“ParentCo
Permitted Activities” has the meaning set forth in Section 6.02(a)(i).

 

“ParentCo
Required Shareholder Approval” has the meaning set forth in Section 3.02(g).

 

“ParentCo
Shareholders” means the holders of ParentCo Shares.

 

“ParentCo
Shares” means the shares in the capital of ParentCo, consisting of the ParentCo Common Shares and, following the ParentCo
Articles Amendment, the ParentCo Subordinate Voting Shares, the ParentCo Multiple Voting Shares and the ParentCo Super Voting
Shares.

 

“ParentCo
Subordinate Voting Shares” means the shares in the capital of ParentCo designated as Subordinate Voting Shares, which
ParentCo Subordinate Voting Shares shall have substantially the same rights and restrictions as the Harvest Subordinate Voting
Shares.

 

“ParentCo
Super Voting Shares” means the shares in the capital of ParentCo designated as Super Voting Shares, which ParentCo Super
Voting Shares shall have substantially the same rights and restrictions as the Harvest Super Voting Shares.

 

“Participating
Company Unit Holders” means Company Unit Holders other than (i) any Company Unit Holder that exercises ParentCo Dissent
Rights, and (ii) any Qualified Holdco.

 

“Partnership
Tax Audit Rules” means Code Sections 6221 through 6241, as amended by the U.S. Bipartisan Budget Act of 2015,
together with any guidance issued thereunder or successor provisions and any similar provision of state or local tax Laws.

 

“Party”
and “Parties” have the meanings set forth in the preamble.

 

“Payment
Allocation Schedule” has the meaning set forth in Section 2.09.

 

“Per
Share Value” has the meaning set forth in Section 11.06(b).

 

“Permits”
means, with respect to a Person, all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances
and similar rights obtained, or required to be obtained, from Governmental Authorities for the operation of that Person’s
business, and includes (a) with respect to the Companies, the Company Cannabis Permits, and (b) with respect to Harvest and the
Harvest Subsidiaries, the Harvest Cannabis Permits.

 

    	 	-16-	 

     

    

 

“Permitted
Encumbrances” has the meaning set forth in Section 4.10(a).

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

“Pipeline
Acquisitions” means the Pipeline Binding Acquisitions and the Pipeline Contingent Acquisitions.

 

“Pipeline
Binding Acquisitions” means the acquisitions of the Acquisition Targets.

 

“Pipeline
Contingent Acquisitions” means the acquisitions of the Contingent Targets.

 

“Plan
of Arrangement” means the Plan of Arrangement of Harvest, ParentCo and Newco, substantially in the form of Schedule
A hereto, and includes any amendments or variations thereto made in accordance with the Plan of Arrangement or upon the direction
of the Court in the Final Order with the consent of Harvest and ParentCo, each acting reasonably.

 

“Post-Closing
Tax Period” means any taxable period beginning after the Closing Date and, with respect to any taxable period beginning
before and ending after the Closing Date, the portion of such taxable period beginning after the Closing Date.

 

“Post-Closing
Taxes” means Taxes of the Companies for any Post-Closing Tax Period.

 

“Pre-Arrangement
Transactions” has the meaning set forth in Section 2.08.

 

“Pre-Closing
Tax Period” means any taxable period ending on or before the Closing Date and, with respect to any taxable period beginning
before and ending after the Closing Date, the portion of such taxable period ending on and including the Closing Date.

 

“Pre-Closing
Taxes” means Taxes of the Companies for any Pre-Closing Tax Period.

 

“Prospective
Shareholders” has the meaning in the Recitals.

 

“Qualified
Holdco” means a corporation or limited liability company (i) that is organized under the laws of a State of the United
States, (ii) a majority of the shares or interests in which are owned by Persons who are residents of a country other than the
United States for U.S. Income Tax purposes, (iii) that owns Company Units, (iv) that owns no other property or assets other than
Company Units and cash, (v) that has not exercised or purported to exercise, and does not exercise or purport to exercise, any
ParentCo Dissent Rights in respect of its Company Units, (vi) that notifies the Company in writing, not more than ten (10) Business
Days and not less than five (5) Business Days prior to the Closing Date (or within such other period or in such manner as the
Company and Harvest may agree), that it elects to participate in the Qualified Holdco Exchange rather than having its Company
Units exchanged for ParentCo Shares pursuant to the Unit Exchange, and (vii) in which all of the holders of shares or equity ownership
interests have entered into a Qualified Holdco Exchange Agreement with ParentCo in accordance with Section 8.19 with respect to
the exchange of their Qualified Holdco Shares with ParentCo; provided that ParentCo may waive the requirement in clause (vi) with
respect to any corporation or limited liability company that has no shareholder or member that together with any Person that does
not deal at arm’s length for purposes of the Tax Act with such shareholder or member, holds 10% or more of the Company Units.

 

    	 	-17-	 

     

    

 

“Qualified
Holdco Exchange” means the exchange contemplated by Section 2.08(c) pursuant to which the Qualified Holdco Shareholders
exchange all of their Qualified Holdco Shares for ParentCo Shares in accordance with the terms and conditions of a Qualified Holdco
Exchange Agreement.

 

“Qualified
Holdco Exchange Agreement” has the meaning set forth in Section 8.19.

 

“Qualified
Holdco Exchange Shares” means the ParentCo Subordinate Voting Shares and/or the ParentCo Multiple Voting Shares, as
applicable, to be issued by ParentCo to Qualified Holdco Shareholders pursuant to the Qualified Holdco Exchange.

 

“Qualified
Holdco Shareholder” means, with respect to a Qualified Holdco, a holder of Qualified Holdco Shares.

 

“Qualified
Holdco Shares” means, with respect to a Qualified Holdco, shares or equity ownership interests in such Qualified Holdco.

 

“Qualified
Pipeline Entities” means the Acquisition Targets and the Contingent Targets.

 

“Qualified
Pipeline Equity Holder” means, with respect to a Qualified Pipeline Entity, a Person (other than the Company or any
Company Subsidiary) that is a holder of Qualified Pipeline Interests in such Qualified Pipeline Entity.

 

“Qualified
Pipeline Exchange” means the exchange contemplated by Section 2.08(d) pursuant to which the Qualified Pipeline Equity
Holders exchange all of their Qualified Pipeline Interests for ParentCo Shares in accordance with the terms and conditions of
a Qualified Pipeline Exchange Agreement.

 

“Qualified
Pipeline Exchange Agreement” has the meaning set forth in Section 8.20.

 

“Qualified
Pipeline Exchange Shares” means the ParentCo Subordinate Voting Shares and/or the ParentCo Multiple Voting Shares, as
applicable, to be issued by ParentCo to Qualified Pipeline Equity Holders pursuant to the Qualified Pipeline Exchange Agreements.

 

“Qualified
Pipeline Exchange Shares Amount” has the meaning set forth in Section 8.20(b).

 

“Qualified
Pipeline Interests” means, with respect to a Qualified Pipeline Entity, shares or equity ownership interests in such
Qualified Pipeline Entity.

 

“Release”
means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without
limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building,
structure, facility or fixture).

 

“Replacement
Compensation Option” has the meaning set forth in the Plan of Arrangement.

 

“Replacement
Option” has the meaning set forth in the Plan of Arrangement.

 

“Representative”
means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants
and other agents of such Person, in each case, that have been duly authorized by such Person.

 

    	 	-18-	 

     

    

 

“Required
Regulatory Approvals” means: HSR Approval; the approval of the Arrangement and Plan of Arrangement by the Court; the
filing with the securities regulators in Canada and with the CSE of the Harvest Circular, including any applicable filings thereof
with the SEC; the application for, and approval of, the listing on the CSE of the Resulting Issuer Subordinate Voting Shares to
be issued under the Arrangement; and any consents, approvals, authorizations, designations, declarations, waivers or filings,
the absence of which would have a Harvest Material Adverse Effect; and the Restricted Security Relief.

 

“Restricted
Security Relief” means an exemptive relief order issued by the applicable securities regulators in Canada to permit
the distribution of Resulting Issuer Subordinate Voting Shares and related subject securities on the same basis as is currently
permitted by Harvest (under a prospectus or under an exemption from the prospectus requirement), being as if the Resulting Issuer
had completed a “restricted security reorganization” under National Instrument 41-101 – General Prospectus
Requirements and a restricted share “reorganization” under Ontario Securities Commission Rule 56-501 – Restricted
Shares.

 

“Resulting
Issuer” has the meaning ascribed thereto in the Plan of the Arrangement.

 

“Resulting
Issuer Equity Incentive Plan” means the equity incentive plan of the Resulting Issuer, which shall be in a form to be
agreed upon between Harvest and the Company, each acting reasonably, and acceptable to the CSE.

 

“Resulting
Issuer Multiple Voting Shares” means the shares in the capital of the Resulting Issuer designated as Multiple Voting
Shares, which shares shall have substantially the same rights and restrictions as the Harvest Multiple Voting Shares immediately
prior to the Effective Time.

 

“Resulting
Issuer Shares” means the shares in the capital of the Resulting Issuer, consisting of the Resulting Issuer Subordinate
Voting Shares, the Resulting Issuer Multiple Voting Shares and the Resulting Issuer Super Voting Shares.

 

“Resulting
Issuer Subordinate Voting Shares” means the shares in the capital of the Resulting Issuer designated as Subordinate
Voting Shares, which shares shall have substantially the same rights and restrictions as the Harvest Subordinate Voting Shares
immediately prior to the Effective Time.

 

“Resulting
Issuer Super Voting Shares” means the shares in the capital of the Resulting Issuer designated as Super Voting Shares,
which shares shall have substantially the same rights and restrictions as the Harvest Super Voting Shares immediately prior to
the Effective Time.

 

“Section
3(a)(10) Exemption “ has the meaning set forth in Section 3.06(a).

 

“SEC”
means the United States Securities and Exchange Commission.

 

“SEDAR”
means www.sedar.com, which is the official website that provides access to public securities documents and information
filed by public companies and investment funds as maintained by the Canadian Securities Administrators in the SEDAR filing system.

 

“Settlement
Accountants” has the meaning set forth in Section 9.07(a).

 

“Sherman
Act” means the Sherman Antitrust Act of 1890, as amended, 15 U.S.C. §§ 1 et seq.

 

“Straddle
Period” has the meaning set forth in Section 9.08(a).

 

    	 	-19-	 

     

    

 

“Subsidiary”
or “Subsidiaries” of a Person means a corporation, partnership, limited liability company, or other business
entity of which a majority of the shares of voting securities is at the time beneficially owned, or the management of which is
otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Person.

 

“SVS
Exchange Ratio” means 4.7536, as such SVS Exchange Ratio may be adjusted in accordance with Section 2.11.

 

“Tax”
or “Taxes” shall mean, without duplication, any (i) national, state, provincial, municipal and local income,
gross receipts, franchise, estimated, alternative minimum, add on minimum, sales, use, transfer, goods or services, registration,
value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties,
levies, profits, real property, personal property, capital stock, social security (or similar), employment, unemployment, disability,
payroll, license, employee or other withholding, unclaimed property or escheat, or other tax, of any kind whatsoever, including
any interest, penalties or additions to tax, (ii) any liability for the payment of any amounts of the type described in clause
(i) as a result of being a member of an affiliated, consolidated, combined or unitary group, as a result of any tax sharing, allocation
or indemnity agreement, arrangement or understanding, or as a result of being liable for another Person’s taxes as a transferee
or successor, by agreement or otherwise and (iii) any Taxes as a result of amounts required to be included in income (A) under
Section 951 of the Code in respect of “subpart F income” (as defined in Section 952 of the Code), (B) under Section
951A of the Code in respect of “global intangible low taxed income,” in each case, for the taxable period in which
the Closing occurs and that is attributable, based on an interim closing of the books at Closing, to the Pre- Closing Tax Period
(including, for clarity, any increase in subpart F income pursuant to Section 965 of the Code), and (C) under Section 965(h) of
the Code.

 

“Tax
Return” means any return, declaration, report, claim for refund, information return or statement or other document relating
to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Tax
Act” means the Income Tax Act (Canada) and the regulations thereunder, as amended.

 

“Termination
Fee” means $100,000,000.

 

“Third-Party
Claim” has the meaning set forth in Section 11.04(a).

 

“Transactions”
has the meaning set forth in the Recitals.

 

“Transaction
Documents” means this Agreement, the Plan of Arrangement, the Escrow Agreement, the Lock-Up Agreements, the Harvest
Letters of Transmittal, the ParentCo Letters of Transmittal, the Qualified Holdco Exchange Agreements, the Qualified Pipeline
Exchange Agreements, the Harvest Circular, the ParentCo Circular, the U.S. Merger Agreement and the other documents and agreements
to be executed and delivered by a Party hereto at the Closing as contemplated hereby and thereby.

 

“Transfer
Consent” has the meaning set forth in Section 8.03(a).

 

“Union”
has the meaning set forth in Section 4.20(b).

 

“Unit
Exchange” means the exchange by Company Unit Holders of their Company Units for ParentCo Shares pursuant to the Company
U.S. Merger as contemplated by Section 2.08(b).

 

    	 	-20-	 

     

    

 

“Unit
Exchange Shares” means the ParentCo Subordinate Voting Shares and/or the ParentCo Multiple Voting Shares, as applicable,
to be issued by ParentCo to Company Unit Holders (other than any Qualified Holdco) pursuant to the Unit Exchange.

 

“Unit
Holder Voting Instructions” has the meaning set forth in Section 2.03(b)(i).

 

“U.S.
Merger Agreement” has the meaning set forth in Section 2.08(b).

 

“U.S.
Securities Act” means the United States Securities Act of 1933, as amended, supplemented or restated from time
to time and any successor to such statute, and the rules and regulations promulgated thereunder.

 

“U.S.
Treasury Regulations” means the regulations promulgated under the Code by the United States Department of the Treasury.

 

“WARN
Act” has the meaning set forth in Section 4.20(d).

 

“Working
Capital Loan” has the meaning set forth in Section 8.26.

 

“[***]
Warrant” means the Warrant to Purchase Membership Interests dated January 4, 2019, granting [***] the right
to purchase up to [***] Company Class B Units.

 

ARTICLE
2

THE
BUSINESS COMBINATION

 

	2.01	Business
    Combination

 

The
Parties agree that the Combination will be implemented in accordance with and subject to the terms and conditions contained in
this Agreement and the Plan of Arrangement.

 

	2.02	The
    Company Required Approvals

 

	 	(a)	As
    of the date hereof, the Company has obtained the approval of a super-majority of the Company Board in accordance with the
    Operating Agreement and DLLCA for the execution and delivery of this Agreement by the Company and the performance by the Company
    its obligations under this Agreement and the Transaction and recommended to the members of the Company to approve the Transactions,
    including the Company Merger.
	 	 	 
	 	(b)	In
    accordance with the Operating Agreement and the DLLCA, the Company Board will obtain the required Company Unit Holder approval
    for the Transactions and the Company U.S. Merger by written consent pursuant to the requirements of the Operating Agreement
    and DLLCA.

 

	2.03	The
    ParentCo Required Shareholder Approvals

 

	 	(a)	Subject
    to the terms of this Agreement and the Interim Order, ParentCo shall convene and conduct the ParentCo Meeting in accordance
    with its governing documents, applicable Laws and the Interim Order, such ParentCo Meeting to be held no later than the Meeting
    Deadline.
	 	 	 
	 	(b)	Prior
    to holding the ParentCo Meeting, ParentCo, the Initial ParentCo Shareholder and the Company shall provide the ParentCo Circular
    to the Prospective Shareholders, pursuant to which:

 

	 	(i)	the
    Company will provide Prospective Shareholders with voting proxies asking them to indicate whether or not they approve of (i)
    the ParentCo Arrangement Resolution, and (ii) the ParentCo Equity Incentive Plan Resolution (collectively, the “Unit
    Holder Voting Instructions”);

 

    	 	-21-	 

     

    

 

	 	(ii)	the
    Initial ParentCo Shareholder shall agree to vote its ParentCo Shares with respect to the approval of the ParentCo Arrangement
    Resolution and the ParentCo Equity Incentive Plan Resolution as directed by the Company, in accordance with the Unit Holder
    Voting Instructions received by the Company from the Company Unit Holders and in proportion to their ownership of Company
    Units; and
	 	 	 
	 	(iii)	ParentCo
    agrees to give dissent rights (the “ParentCo Dissent Rights”) to Prospective Shareholders, which ParentCo
    Dissent Rights shall be substantially similar to dissent rights under Section 238 of the BCBCA.

 

	 	(c)	In
    accordance with the ParentCo Circular, the Company shall use its commercially reasonable efforts to obtain sufficient Unit
    Holder Voting Instructions in favor of the ParentCo Arrangement Resolution and ParentCo Equity Incentive Plan Resolution,
    and shall take all other action reasonably necessary or advisable, to secure the ParentCo Required Shareholder Approval.
	 	 	 
	 	(d)	The
    Company shall advise Harvest as Harvest may reasonably request, and at least on a daily basis on each of the last seven (7)
    Business Days prior to the date of the ParentCo Meeting, as to the aggregate tally of the Unit Holder Voting Instructions
    received by the Company in respect of the ParentCo Arrangement Resolution and ParentCo Equity Incentive Plan Resolution.
	 	 	 
	 	(e)	ParentCo
    will promptly advise Harvest and the Company of any written notice of dissent or purported exercise of ParentCo Dissent Rights
    received in relation to the ParentCo Arrangement Resolution, and provide Harvest and the Company with copies of any written
    communications received by ParentCo from or on behalf of any Person pertaining to the exercise, purported exercise or withdrawal
    of ParentCo Dissent Rights.

 

	2.04	The
    Newco Required Shareholder Approval

 

The
Newco Arrangement Resolution has been approved by the Newco Shareholder and has not been, and will not be, rescinded.

 

	2.05	The
    Harvest Required Shareholder Approval

 

	 	(a)	Subject
    to the terms of this Agreement and the Interim Order, Harvest shall convene and conduct the Harvest Meeting in accordance
    with its governing documents, applicable Laws and the Interim Order, such Harvest Meeting to be held no later than the Meeting
    Deadline. Harvest shall use its commercially reasonable efforts to obtain the Harvest Required Shareholder Approval at the
    Harvest Meeting, including voting any proxy obtained by it from Harvest Shareholders in favor of the Harvest Arrangement Resolution
    and the Harvest Equity Incentive Plan Resolution, and shall take all other action reasonably necessary or advisable to secure
    the Harvest Required Shareholder Approval.
	 	 	 
	 	(b)	Harvest
    shall give notice to the Company of the Harvest Meeting and allow Company Representatives to attend the Harvest Meeting.

 

    	 	-22-	 

     

    

 

	 	(c)	Harvest
    will instruct its transfer agent and registrar to advise the Company as the Company may reasonably request, and at least on
    a daily basis on each of the last seven (7) Business Days prior to the date of the Harvest Meeting, as to the aggregate tally
    of the proxies received by Harvest in respect of the Harvest Arrangement Resolution and the Harvest Equity Incentive Plan
    Resolution.
	 	 	 
	 	(d)	Harvest
    will promptly provide the Company with any reports that Harvest receives from any proxy advisory services firms in respect
    of the Arrangement or the Harvest Meeting.
	 	 	 
	 	(e)	Harvest
    will promptly advise ParentCo and the Company of any written notice of dissent or purported exercise of Harvest Dissent Rights
    received in relation to the Harvest Arrangement Resolution, and provide ParentCo and the Company with copies of any written
    communications received by Harvest from or on behalf of any Person pertaining to the exercise, purported exercise or withdrawal
    of Harvest Dissent Rights.

 

	2.06	The
    Harvest Circular

 

	 	(a)	Subject
    to the Company providing Harvest with the Company Information in accordance with Section 2.06(c), Harvest shall, in consultation
    with the Company, promptly prepare and complete the Harvest Circular together with any other documents required by applicable
    Law in connection with the Harvest Meeting and the Arrangement, and Harvest shall, promptly after obtaining the Interim Order,
    cause the Harvest Circular and such other documents to be filed and sent to each Harvest Shareholder and other Person as required
    by the Interim Order and applicable Law.
	 	 	 
	 	(b)	Subject
    to compliance by the Company with Section 2.06(c), Harvest shall ensure that the Harvest Circular complies in all material
    respects with all applicable Laws, and, without limiting the generality of the foregoing, that the Harvest Circular will not,
    at the time of mailing, contain any misrepresentation (other than with respect to any information furnished by the Company
    or its Affiliates) and shall provide Harvest Shareholders with information in sufficient detail to permit them to form a reasoned
    judgment concerning the matters to be placed before them at the Harvest Meeting, subject to compliance by the Company with
    Section 2.06(c). Subject to the terms of this Agreement, the Harvest Circular will include the unanimous recommendation of
    the Harvest Board that Harvest Shareholders vote in favor of the Harvest Arrangement Resolution (unless such recommendation
    has been withdrawn, modified or amended, in accordance with the terms of this Agreement). The Company and its legal counsel
    shall be given a reasonable opportunity to review and comment on drafts of the Harvest Circular and other documents related
    thereto, and reasonable consideration shall be given to any comments made by the Company and its legal counsel, provided that
    all information relating solely to the Companies and their Affiliates included in the Harvest Circular shall be in form and
    content satisfactory to the Company, acting reasonably. Harvest shall provide the Company with a final copy of the Harvest
    Circular prior to mailing to the Harvest Shareholders.
	 	 	 
	 	(c)	The
    Company shall use commercially reasonable efforts to obtain and furnish to Harvest the information and financial statements
    with respect to the Companies required to be included under Canadian Securities Law in the Harvest Circular, including, if
    required, the audited financial statements consisting of the combined balance sheets of the Company at December 31, 2018 and
    the related combined statements of income and retained earnings, members’ equity and cash flow of the Company for the
    year then ended, including the notes thereto and the unaudited financial statements of the Company for any quarterly period
    thereafter as may be required under applicable Canadian Securities Laws (the “Company Information”). The
    Company warrants that as of the date the Company Information is first provided to Harvest and as of the date of the Harvest
    Circular, the Company Information shall be complete and correct in all material respects, shall not contain any untrue statement
    of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein,
    in light of the circumstances in which they are made, not misleading and shall comply in all material respects with all applicable
    Canadian Securities Laws. The Company shall promptly correct any Company Information previously provided by it to Harvest
    for use in the Harvest Circular which to the Company’s Knowledge has become false or misleading in any material respect
    at any time prior to the Harvest Meeting. The Company shall also use commercially reasonable efforts to obtain any necessary
    consents from any of its auditors and any other advisors to the use of any financial, technical or other expert information
    required to be included in the Harvest Circular or other related filings and to the identification in such filings of each
    such advisor.

 

    	 	-23-	 

     

    

 

	2.07	ParentCo
    Circular

 

	 	(a)	Subject
    to Harvest providing ParentCo with the Harvest Information in accordance with Section 2.07(c), ParentCo shall, in consultation
    with Harvest, promptly prepare and complete the ParentCo Circular together with any other documents required by applicable
    Law in connection with the ParentCo Meeting and the Arrangement, and ParentCo shall, promptly after obtaining the Interim
    Order, cause the ParentCo Circular and such other documents to be filed and sent to each Prospective Shareholder and other
    Person as required by the Interim Order and applicable Law.
	 	 	 
	 	(b)	Subject
    to compliance by Harvest with Section 2.07(c), ParentCo shall ensure that the ParentCo Circular complies in all material respects
    with all applicable Laws, and, without limiting the generality of the foregoing, that the ParentCo Circular will not, at the
    time of mailing, contain any misrepresentation (other than with respect to any information furnished by Harvest or its Affiliates)
    and shall provide ParentCo Shareholders with information in sufficient detail to permit them to form a reasoned judgment concerning
    the matters to be placed before them at the ParentCo Meeting, subject to compliance by Harvest with Section 2.07(c). Subject
    to the terms of this Agreement, the ParentCo Circular will include the unanimous recommendation of the ParentCo Board that
    ParentCo Shareholders vote in favor of the ParentCo Arrangement Resolution (unless such recommendation has been withdrawn,
    modified or amended, in accordance with the terms of this Agreement). Harvest and its legal counsel shall be given a reasonable
    opportunity to review and comment on drafts of the ParentCo Circular and other documents related thereto, and reasonable consideration
    shall be given to any comments made by Harvest and its legal counsel, provided that all information relating solely to the
    Harvest Companies and their Affiliates included in the ParentCo Circular shall be in form and content satisfactory to Harvest,
    acting reasonably. ParentCo shall provide Harvest with a final copy of the ParentCo Circular prior to mailing to the ParentCo
    Shareholders.
	 	 	 
	 	(c)	Harvest
    shall use commercially reasonable efforts to obtain and furnish to ParentCo the information and financial statements with
    respect to the Harvest Companies required to be included under Canadian Securities Law in the ParentCo Circular (the “Harvest
    Information”). Harvest warrants that as of the date the Harvest Information is first provided to ParentCo and as
    of the date of the ParentCo Circular, the Harvest Information shall be complete and correct in all material respects, shall
    not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
    to make the statements therein, in light of the circumstances in which they are made, not misleading and shall comply in all
    material respects with all applicable Canadian Securities Laws. Harvest shall promptly correct any Harvest Information previously
    provided by it to ParentCo for use in the ParentCo Circular which to Harvest’s Knowledge has become false or misleading
    in any material respect at any time prior to the ParentCo Meeting. Harvest shall also use commercially reasonable efforts
    to obtain any necessary consents from any of its auditors and any other advisors to the use of any financial, technical or
    other expert information required to be included in the ParentCo Circular or other related filings and to the identification
    in such filings of each such advisor.

 

    	 	-24-	 

     

    

 

	2.08	Pre-Arrangement
    Transactions

 

ParentCo
and the Company shall use reasonable commercial efforts to cause the following transactions or events (the “Pre-Arrangement
Transactions”) to occur prior to the Closing Time:

 

	 	(a)	ParentCo
    shall cause Merger Sub to be formed under the laws of the State of Delaware.
	 	 	 
	 	(b)	The
    Qualified Holdco Shareholders shall, pursuant to the Qualified Holdco Exchange Agreements, transfer their Qualified Holdco
    Shares to ParentCo in exchange for that aggregate number of ParentCo Subordinate Voting Shares equal to the product obtained
    when (i) the aggregate number of Company Units held by such Qualified Holdco and set out in the Payment Allocation Schedule,
    is multiplied by (ii) the SVS Exchange Ratio;
	 	 	 
	 	(c)	The
    Qualified Pipeline Equity Holders shall, pursuant to the Qualified Pipeline Exchange Agreements, transfer all of their Qualified
    Pipeline Interests to ParentCo in exchange for ParentCo Shares in accordance with Section 8.20.
	 	 	 
	 	(d)	The
    Company, Merger Sub and ParentCo shall have entered into an agreement (the “U.S. Merger Agreement”), which
    U.S. Merger Agreement shall be in a form acceptable to Harvest and which shall provide that:

 

	 	(i)	the
    Company and Merger Sub shall, prior to the Closing Time, be merged pursuant to the DLLCA (the “Company U.S. Merger”),
    with the Company surviving and the separate existence of Merger Sub ceasing;
	 	 	 
	 	(ii)	each
    Company Unit Holder that is a Qualified Holdco shall not participate in or receive any ParentCo Shares pursuant to the Unit
    Exchange, and instead the Qualified Holdco Shareholders of such Qualified Holdco shall participate in the Qualified Holdco
    Exchange; and
	 	 	 
	 	(iii)	pursuant
    to the Unit Exchange, each Company Unit Holder (other than a Qualified Holdco) shall transfer their Company Units to ParentCo,
    free and clear of all Encumbrances, and in exchange therefore ParentCo shall issue to such Company Unit Holder, for each such
    transferred Company Unit, either:

 

	 	(A)	that
    number of ParentCo Subordinate Voting Shares equal to the SVS Exchange Ratio; or
	 	 	 
	 	(B)	that
    number of ParentCo Multiple Voting Shares equal to the MVS Exchange Ratio, in each case as more specifically set out in the
    Payment Allocation Schedule.

 

    	 	-25-	 

     

    

 

	 	(e)	Prior
    to the date of mailing of the Harvest Circular and the ParentCo Circular, the articles and notice of articles of ParentCo
    shall have been amended (which amended articles shall be prepared by Harvest and delivered to ParentCo) to create the ParentCo
    Subordinate Voting Shares, the ParentCo Multiple Voting Shares and the ParentCo Super Voting Shares (the “ParentCo
    Articles Amendment”).

 

The
Parties agree to co-operate in seeking to structure the Company U.S. Merger, Unit Exchange, Qualified Holdco Exchange and Qualified
Pipeline Exchange so as to minimize, to the extent reasonably possible, any Taxes payable by ParentCo, Harvest, the Company, the
Company Subsidiaries, the Company Unit Holders, the Qualified Holdco Shareholders and the Qualified Pipeline Equity Holders in
connection with such transactions.

 

	2.09	Payment
    Allocation Schedule

 

At
least two Business Days prior to the scheduled Closing Date, and prior to the implementation of the Company U.S. Merger, Unit
Exchange, Qualified Holdco Exchange and Qualified Pipeline Exchange, the Company and Harvest shall jointly prepare an allocation
statement (the “Payment Allocation Schedule”) (and not containing any fractional ParentCo Shares), setting
forth:

 

	 	(a)	the
    aggregate number of Unit Exchange Shares to be issued by ParentCo pursuant to the Unit Exchange, along with the allocation
    of such Unit Exchange Shares among each Person entitled to receive such Unit Exchange Shares;
	 	 	 
	 	(b)	the
    aggregate number of Qualified Holdco Exchange Shares to be issued by ParentCo pursuant to the Qualified Holdco Exchange, along
    with the allocation of such Qualified Holdco Exchange Shares among each Person entitled to receive such Qualified Holdco Exchange
    Shares;
	 	 	 
	 	(c)	the
    aggregate number of Qualified Pipeline Exchange Shares to be issued by ParentCo pursuant to the Qualified Pipeline Exchange,
    along with the allocation of such Qualified Pipeline Exchange Shares among each Person entitled to receive such Qualified
    Pipeline Exchange Shares;
	 	 	 
	 	(d)	the
    aggregate number of Arrangement Consideration Shares to be issued by the Resulting Issuer pursuant to the Arrangement;
	 	 	 
	 	(e)	the
    allocation of the Arrangement Consideration Shares among each Person receiving such Arrangement Consideration Shares (other
    than Arrangement Consideration Shares issued in exchange for Harvest Subordinate Voting Shares); and
	 	 	 
	 	(f)	the
    aggregate number of Escrow Shares to be delivered by the Resulting Issuer to the Escrow Agent in accordance with the Plan
    of Arrangement, which Escrow Shares shall be held by the Escrow Agent on behalf of the former Company Unit Holders or former
    Qualified Holdco Shareholders, as applicable, in accordance with the Escrow Agreement, along with the allocation of such Escrow
    Shares among each of the former Company Unit Holders or former Qualified Holdco Shareholders.

 

The
Company and Harvest agree that in preparing the Payment Allocation Schedule, the allocation of Unit Exchange Shares and Pipeline
Exchange Shares shall be governed by the following general principles: (i) the aggregate number of ParentCo Subordinate Voting
Shares or ParentCo Multiple Voting Shares issued to any Person shall, in each case, be a whole number of such ParentCo Shares;
(ii) any ParentCo Subordinate Voting Shares shall be allocated, first, to Company Unit Holders and Qualified Pipeline Equity Holders
that are not residents of the United States, and thereafter to other Company Unit Holders and Qualified Pipeline Equity Holders;
(iii) that any ParentCo Multiple Voting Shares shall be allocated only to Company Unit Holders and Qualified Pipeline Equity Holders
that are residents of the United States, and only to the extent required so as to not (i) violate ParentCo’s (and, following
the Arrangement, the Resulting Issuer’s) notice of articles, (ii) materially prejudice the ability of Harvest Shareholders
who receive Resulting Issuer Multiple Voting Shares pursuant to the Arrangement to exercise the conversion rights attached to
such Resulting Issuer Multiple Voting Shares, or (iii) result in a loss of ParentCo’s (and, following the Arrangement, the
Resulting Issuer’s) status as a “foreign private issuer” under United States securities laws when such status
is required under United States securities laws to be assessed.

 

    	 	-26-	 

     

    

 

	2.10	Closing
    Deliveries

 

	 	(a)	Subject
    to the terms and conditions of this Agreement, the deliveries contemplated by this Section 2.10 shall occur electronically
    at a closing (the “Closing”) to be held at the Closing Time on the Closing Date.
	 	 	 
	 	(b)	Harvest
    and the Company shall make commercially reasonable efforts to have the Closing Date occur on the final day of a month or quarter
    for purposes of determining the Company’s opening IFRS balance sheet as of the Closing.
	 	 	 
	 	(c)	At
    the Closing, the Company and/or ParentCo, as applicable, shall deliver or cause to be delivered to Harvest:

 

	 	(i)	a
    true and complete copy, certified by the secretary or similar officer of the Company, of the resolutions duly and validly
    adopted by the Company Board and members of the Company evidencing authorization of the execution of this Agreement and the
    Transaction Documents to which the Company is a party, as applicable, and the consummation of the Transactions, including
    the Company U.S. Merger, contemplated hereby and thereby;
	 	 	 
	 	(ii)	a
    true and complete copy, certified by the secretary or similar officer of ParentCo of (A) the resolutions duly and validly
    adopted by the ParentCo Board evidencing authorization of the execution of this Agreement and the Transaction Documents to
    which ParentCo or Merger Sub is a party and the consummation of the Transactions contemplated thereby, (B) the ParentCo Arrangement
    Resolution duly and validly adopted evidencing the ParentCo Required Shareholder Approval, (A) the ParentCo Equity Incentive
    Plan Resolution duly and validly adopted evidencing the ParentCo Required Shareholder Approval, and (D) ParentCo’s articles
    and notice of articles as of the Closing Date, including the rights and restrictions attached to the ParentCo Shares, which
    rights and restrictions shall be identical to those in the ParentCo Articles Amendment;
	 	 	 
	 	(iii)	a
    certificate of the secretary or similar officer of the Company certifying the number of ParentCo Shares in respect of which
    any Company Unit Holder has exercised or purported to exercise ParentCo Dissent Rights, along with particulars regarding the
    identity of, and number of Company Units held by, any such Company Unit Holders;

 

    	 	-27-	 

     

    

 

	 	(iv)	a
    true and complete copy, certified by the secretary or similar officer of the Company, of the U.S. Merger Agreement executed
    by the Company, ParentCo and Merger Sub and the certificate of merger with required exhibits attached thereto;
	 	 	 
	 	(v)	a
    certified copy of the certificate of merger issued by the Delaware Secretary of State confirming the Company U.S. Merger is
    effective;
	 	 	 
	 	(vi)	a
    true and complete copy, certified by the secretary or similar officer of the Company, of each Qualified Holdco Exchange Agreement
    entered into by ParentCo prior to the Closing Time, in each case executed by ParentCo and all of the Qualified Holdco Shareholders
    who are a party to such Qualified Holdco Exchange Agreement, along with certificates representing all of the Qualified Holdco
    Shares, duly endorsed for transfer to ParentCo, to which such Qualified Holdco Exchange Agreement relates and such other documents
    as are required pursuant to the terms of such Qualified Holdco Exchange Agreement to be delivered at the Closing;
	 	 	 
	 	(vii)	a
    true and complete copy, certified by the secretary or similar officer of the Company, of each Qualified Pipeline Exchange
    Agreement entered into by ParentCo prior to the Closing Time, in each case executed by ParentCo and all of the Qualified Pipeline
    Equity Holders who are a party to such Qualified Pipeline Exchange Agreement, along with certificates representing all of
    the Qualified Pipeline Interests, duly endorsed for transfer to ParentCo, to which such Qualified Pipeline Exchange Agreement
    relates and such other documents as are required pursuant to such Qualified Pipeline Exchange Agreement to be delivered at
    the Closing;
	 	 	 
	 	(viii)	the
    Escrow Agreement executed Harvest, the Company Representative for and on behalf of all of the Participating Company Unit Holders,
    all of the Qualified Holdco Shareholders, and the Escrow Agent;
	 	 	 
	 	(ix)	the
    Lock-Up Agreements executed by the Locked-Up Shareholders (or, to the extent such any such Locked-Up Shareholder is a Qualified
    Holdco, Lock-Up Agreements executed by all of the Qualified Holdco Shareholders of such Qualified Holdco);
	 	 	 
	 	(x)	a
    properly executed statement, dated as of the Closing Date, in accordance with U.S. Treasury Regulations Sections 1.1445-11T(d)(2),
    and in a form reasonably acceptable to Harvest, certifying that an interest in the Company is not a U.S. real property interest
    within the meaning of Section 897(c) of the Code;
	 	 	 
	 	(xi)	a
    properly executed statement, dated as of the Closing Date, in accordance with U.S. Treasury Regulations Sections 1.1445-11T(d)(2),
    and in a form reasonably acceptable to Harvest, with respect to each Qualified Pipeline Entity certifying that an interest
    in such Qualified Pipeline Entity is not a U.S. real property interest within the meaning of Section 897(c) of the Code or
    with respect to a Qualified Pipeline Entity, a properly executed statement, dated as of the Closing Date, in accordance with
    Treasury Regulations Section 1.1445-2(b)(2), and in a form reasonably acceptable to Harvest, with respect to each Qualified
    Pipeline Entity owner certifying that such owner is not a foreign person;

 

    	 	-28-	 

     

    

 

	 	(xii)	with
    respect to each member of the Company, either: (a) a properly executed certificate completed in accordance with Section 1446(f)
    of the Code and Section 6.01 of IRS Notice 2018-29 and, in form and substance reasonably acceptable to Harvest, that satisfies
    the requirements of Section 1.1445-2(b)(2) of the Treasury Regulations (as modified to take into account Section 1446(f) of
    the Code), certifying that such member is not a foreign person or (b) a properly completed and executed IRS Form W-9 (Request
    for Taxpayer Identification Number and Certification) (for the avoidance of doubt, the failure of any member to provide such
    certificate or form shall not prevent the Closing and in such case, ParentCo shall withhold U.S. federal income tax pursuant
    to Section 2.12);
	 	 	 
	 	(xiii)	all
    other agreements, documents, instruments or certificates required to be delivered by the Company at or prior to the Closing
    pursuant to Section 10.02; and
	 	 	 
	 	(xiv)	all
    other agreements, documents, instruments or certificates required to be delivered by ParentCo or Merger Sub at or prior to
    the Closing pursuant to Section 10.02.

 

	 	(d)	At
    the Closing, Harvest shall deliver to the Company and ParentCo:

 

	 	(i)	a
    true and complete copy, certified by the secretary or similar officer of Harvest, of (A) the resolutions duly and validly
    adopted by the Harvest Board evidencing its authorization of the execution of this Agreement and the Transaction Documents
    to which it is a party and the consummation of the Transactions, and (B) the Harvest Arrangement Resolution duly and validly
    adopted evidencing the Harvest Required Shareholder Approval;
	 	 	 
	 	(ii)	a
    properly executed statement, dated as of the Closing Date, in accordance with U.S. Treasury Regulations Sections 1.897-2(h)
    and 1.1445-2(c)(3) and in a form reasonably acceptable to the Company, certifying that an interest in Harvest is not a U.S.
    real property interest within the meaning of Section 897(c) of the Code; and
	 	 	 
	 	(iii)	all
    other agreements, documents, instruments or certificates required to be delivered by Harvest at or prior to the Closing pursuant
    to Section 10.03.

 

	 	(e)	At
    the Closing, Newco shall deliver to the Company, ParentCo and Harvest:

 

	 	(i)	a
    true and complete copy, certified by the secretary or similar officer of Newco, of (A)                  the
    resolutions duly and validly adopted by the Newco Board evidencing its authorization of the execution of this Agreement and
    the Transaction Documents to which it is a party and the consummation of the Transactions, and (B) the Newco Arrangement Resolution,
    duly and validly adopted by the Newco Shareholder; and
	 	 	 
	 	(ii)	all
    other agreements, documents, instruments or certificates required to be delivered by Newco at or prior to the Closing pursuant
    to Section 10.03.

 

	 	(f)	At
    the Closing, each Arrangement Party shall deliver, in escrow, all documents contemplated under the Plan of Arrangement, to
    the extent such documents have not otherwise been delivered in accordance with this Section 2.10.

 

    	 	-29-	 

     

    

 

	2.11	Escrow
    Shares

 

	 	(a)	At
    the Closing, and in accordance with the Plan of Arrangement, ParentCo shall deliver the Escrow Shares to the Escrow Agent.
	 	 	 
	 	(b)	Following
    the Closing, the Escrow Shares shall be available as the sole source to satisfy the indemnification obligations of the Participating
    Company Unit Holders and the Qualified Holdco Shareholders pursuant to this Agreement.
	 	 	 
	 	(c)	Pursuant
    to the Escrow Agreement, on the 12-month anniversary of the Closing Date, the Escrow Agent shall release the Escrow Shares
    minus an amount reasonably required to satisfy any outstanding and unresolved indemnification claims of the Buyer Indemnitees.
    The number of Escrow Shares issued to satisfy the Buyer Indemnitees’ indemnification claims pursuant to this Agreement
    shall be based on the Per Share Value.
	 	 	 
	 	(d)	Each
    Participating Company Unit Holder and each Qualified Holdco Shareholder shall have the right to vote his, her or its pro-rata
    portion of the Escrow Shares unless and until any such shares are released to ParentCo in satisfaction of an indemnity claim
    pursuant to Section 11.07.

 

	2.12	Withholding
    Tax

 

Notwithstanding
any other provision of this Agreement, ParentCo, Harvest, the Company, the Depositary, the Escrow Agent, and any other applicable
withholding agent shall be entitled to deduct and withhold from the consideration otherwise payable in connection with any of
the Transactions, the Plan of Arrangement or the other Transaction Documents such amounts as such Person determines, acting reasonably,
are required to be deducted and withheld from such consideration in accordance with the Tax Act, the Code or any provision of
any other applicable Law. To the extent that amounts are so withheld, ParentCo shall cause such withheld amounts to be timely
paid to the applicable Governmental Authority and such withheld accounts shall be treated for all purposes hereof as having been
paid to the Person in respect of which such withholding was made. Each such withholding agent shall be authorized to sell or otherwise
dispose of such portion of the ParentCo Shares (including, for the avoidance of doubt, Resulting Issuer Shares) payable hereunder
in a commercially reasonable manner to the extent as is necessary to provide sufficient funds to enable it to implement such deduction
or withholding. Except with respect to employment or compensatory related withholding or deduction, ParentCo shall use commercially
reasonable efforts to provide notice in advance of such withholding or deduction, and shall cooperate with the Company Representative
or Harvest, as applicable, to take commercially reasonable steps to minimize or eliminate such withholding or deduction.

 

	2.13	Exchange
    Ratio Adjustment

 

Notwithstanding
any other provision of this Agreement, the Plan of Arrangement or any other Transaction Document, if, between the date of this
Agreement and the Closing Time, the issued and outstanding Harvest Subordinate Voting Shares shall have been changed into a different
number of shares by reason of any split, consolidation or stock dividend of the issued and outstanding Harvest Subordinate Voting
Shares, then the SVS Exchange Ratio and MVS Exchange Ratio shall be adjusted in such a manner and to such an extent so as to ensure
that, under the Transactions, the Persons entitled to receive Arrangement Consideration Shares receive the same economic proportionate
ownership interest in the Resulting Issuer following such adjustment event as they would otherwise have received under the Transactions
had such adjustment event not occurred, and the number of Resulting Issuer Shares to be issued in the Transactions pursuant to
the Plan of Arrangement shall be adjusted accordingly.

 

    	 	-30-	 

     

    

 

ARTICLE
3

THE
ARRANGEMENT

 

	3.01	The
    Arrangement

 

	 	(a)	On
    the terms and subject to the conditions hereof, the Arrangement Parties shall proceed to effect the Arrangement under Section
    288 of the BCBCA on the Effective Date, immediately following the Closing, on the terms and subject to the conditions contained
    in the Plan of Arrangement.
	 	 	 
	 	(b)	On
    the terms and subject to the conditions hereof, the Arrangement Parties shall:

 

	 	(i)	make
    and diligently prosecute an application to the Court for the Interim Order in respect of the Arrangement;
	 	 	 
	 	(ii)	in
    accordance with the terms of and the procedures contained in the Interim Order, duly call, give notice of, convene and hold
    the Harvest Meeting, the ParentCo Meeting and the Newco Meeting as promptly as practicable; and
	 	 	 
	 	(iii)	subject
    to obtaining the approvals as contemplated in the Interim Order and as may be directed by the Court in the Interim Order,
    take all steps necessary or desirable to submit the Arrangement to the Court and apply for the Final Order as soon as reasonably
    practicable.

 

	3.02	The
    Interim Order

 

As
soon as reasonably practicable after the date of this Agreement, the Arrangement Parties shall apply pursuant to Section 291 of
the BCBCA and prepare, file and diligently pursue an application for the Interim Order, which shall provide, among other things:

 

	 	(a)	for
    the class of Persons to whom notice is to be provided in respect of the Arrangement, the Harvest Meeting and the ParentCo
    Meeting, and for the manner in which such notice is to be provided;
	 	 	 
	 	(b)	confirmation
    of the record date for the purposes of determining the Harvest Shareholders entitled to notice of and to vote at the Harvest
    Meeting in accordance with the Interim Order;
	 	 	 
	 	(c)	that
    the required level of approval (the “Harvest Required Shareholder Approval”):

 

	 	(i)	for
    the Harvest Arrangement Resolution shall be not less than (A) 66.67% of the votes cast on the Harvest Arrangement Resolution
    by holders of Harvest Subordinate Voting Shares present in person or represented by proxy and entitled to vote at the Harvest
    Meeting, voting separately as a class; (B) 66.67% of the votes cast on the Harvest Arrangement Resolution by holders of Harvest
    Multiple Voting Shares present in person or represented by proxy and entitled to vote at the Harvest Meeting, voting separately
    as a class; (C) 66.67% of the votes cast on the Harvest Arrangement Resolution by holders of Harvest Super Voting Shares present
    in person or represented by proxy and entitled to vote at the Harvest Meeting, voting separately as a class; (D) 66.67% of
    the votes cast on the Harvest Arrangement Resolution by holders of Harvest Subordinate Voting Shares, Harvest Multiple Voting
    Shares and Harvest Super Voting Shares present in person or represented by proxy and entitled to vote at the Harvest Meeting,
    voting together as a single class; and (E) if required by applicable Law, a simple majority of the votes cast on the Harvest
    Arrangement Resolution excluding the votes for Harvest Shares held by “related parties” and “interested
    parties” as defined under MI 61- 101; and

 

    	 	-31-	 

     

    

 

	 	(ii)	for
    the Harvest Equity Incentive Plan Resolution shall be a simple majority of the votes cast on the Harvest Equity Incentive
    Plan Resolution excluding the votes for Harvest Shares held by “related parties” and “interested parties”
    as defined under MI 61-101;

 

	 	(d)	that
    the terms, restrictions and conditions of Harvest’s constating documents relating to the holding of a meeting of Harvest
    Shareholders, including quorum requirements and all other matters, shall, unless varied by the Interim Order, apply in respect
    of the Harvest Meeting;
	 	 	 
	 	(e)	for
    the grant of the Harvest Dissent Rights to those Harvest Shareholders who are registered Harvest Shareholders;
	 	 	 
	 	(f)	confirmation
    of the record date for the purposes of determining the ParentCo Shareholders entitled to notice of and to vote at the ParentCo
    Meeting in accordance with the Interim Order;
	 	 	 
	 	(g)	that
    the required level of approval (the “ParentCo Required Shareholder Approval”):

 

	 	(i)	for
    the ParentCo Arrangement Resolution shall be: (A) 66.67% of the votes cast on the ParentCo Arrangement Resolution by holders
    of ParentCo Shares present in person or represented by proxy and entitled to vote at the ParentCo Meeting; and (B) if required
    by applicable Law, a simple majority of the votes cast on the ParentCo Arrangement Resolution excluding the votes for ParentCo
    Shares held by “related parties” and “interested parties” as defined under MI 61-101; and
	 	 	 
	 	(ii)	for
    the ParentCo Equity Incentive Plan Resolution shall be a simple majority of the votes cast on the ParentCo Equity Incentive
    Plan Resolution excluding the votes for ParentCo Shares held by “related parties” and “interested parties”
    as defined under MI 61-101;

 

	 	(h)	that
    the terms, restrictions and conditions of ParentCo’s constating documents relating to the holding of a meeting of ParentCo
    Shareholders, including quorum requirements and all other matters, shall, unless varied by the Interim Order, apply in respect
    of the ParentCo Meeting;
	 	 	 
	 	(i)	for
    the grant of the ParentCo Dissent Rights as contemplated by the ParentCo Circular;
	 	 	 
	 	(j)	for
    the notice requirements with respect to the presentation of the application to the Court for the Final Order; and
	 	 	 
	 	(k)	for
    such other matters as Harvest, ParentCo and the Company may consider necessary or desirable.Subject to the terms of this Agreement
    (including Section 13.10), the Company will use commercially reasonable efforts to cooperate with and assist the Arrangement
    Parties in seeking the Interim Order and the Final Order, including providing on a timely basis any information in its possession
    or control that is reasonably required or requested to be supplied by the Company in connection therewith.

 

    	 	-32-	 

     

    

 

	3.03	The
    Final Order

 

Provided
each of the following events shall have occurred:

 

	 	(a)	the
    Interim Order is obtained;
	 	 	 
	 	(b)	the
    Harvest Arrangement Resolution and the Harvest Equity Incentive Plan Resolution are approved at the Harvest Meeting as provided
    for in the Interim Order and as required by applicable Law; and
	 	 	 
	 	(c)	the
    ParentCo Arrangement Resolution and ParentCo Equity Incentive Plan Resolution are approved at the ParentCo Meeting as provided
    for in the Interim Order and as required by applicable Law;

 

then
as soon as reasonably practicable and no later than three Business Days thereafter, the Arrangement Parties shall diligently pursue
and take all steps necessary or desirable to have the hearing before the Court of the application for the Final Order pursuant
to the BCBCA.

 

	3.04	Effective
    Date of Arrangement

 

Provided
the conditions in Article 10 have been satisfied or waived and the Closing shall have occurred, the Arrangement Parties shall,
forthwith following the completion of the Closing, cause all filings pursuant to the Arrangement to be made, such that the Arrangement
shall become effective on the Closing Date in accordance with the Plan of Arrangement.

 

	3.05	U.S.
    Tax Treatment of the Arrangement

 

The
Parties intend (i) that ParentCo (which, following the effective time of the ParentCo Amalgamation means the Resulting Issuer)
will be treated as a U.S. domestic corporation under Section 7874 of the Code, (ii) that the Harvest Exchange will qualify as
a reorganization within the meaning of Section 368(a) of the Code and the U.S. Treasury Regulations, (iii) that the Unit Exchange,
the Qualified Holdco Exchange, the Qualified Pipeline Exchange, the Harvest Exchange and the Harvest Roll-up Exchange are interdependent
steps in a single transaction, to which the Parties are legally committed as provided herein, and which the Parties intend to
treat as a single integrated transaction qualifying as a tax-deferred transaction within the meaning of Section 351 of the Code
and (iv) this Agreement to be, and this Agreement is adopted as, a “plan of reorganization” under Section 368 of the
Code (collectively, the “Intended U.S. Tax Treatment”). Each Party hereto agrees to not take any position on
any Tax Return or otherwise take any Tax reporting position inconsistent with the Intended U.S. Tax Treatment set forth in this
Section 3.05, unless otherwise required by a “determination” within the meaning of Section 1313 of the Code that such
treatment is not correct. Each Party agrees to act in a manner that is consistent with the Intended U.S. Tax Treatment. In the
event the Parties determine that the foregoing transactions may not qualify for the Intended U.S. Tax Treatment, the Parties will
cooperate in restructuring such transactions to the extent reasonably possible, to cause such transactions to so qualify. Notwithstanding
the foregoing, the Parties do not make any representation, warranty or covenant to any other Party or to their shareholders or
members (and including, without limitation, holders of stock options, warrants, debt instruments or other similar rights or instruments)
regarding the U.S. tax treatment of the Unit Exchange, the Qualified Holdco Exchange, the Qualified Pipeline Exchange, the Harvest
Exchange, the Harvest Roll-up Exchange, the Arrangement, or any other transaction contemplated by this Agreement. Harvest shall
provide the Company with a copy of all agreements entered into with respect to the acquisition of a Harvest Roll-up Entity within
five (5) days of signing.

 

    	 	-33-	 

     

    

 

	3.06	U.S.
    Securities Laws

 

	 	(a)	The
    Parties intend that each of the issuance of the Arrangement Consideration Shares, the Replacement Options and the Replacement
    Compensation Options, shall, in each case, be exempt from the registration requirements of the U.S. Securities Act pursuant
    to the exemption provided by Section 3(a)(10) thereof (the “Section 3(a)(10) Exemption”). Each Arrangement
    Party shall act in good faith, consistent with the intent of the Parties and the intended treatment of the Arrangement set
    forth in this Section 3.06.
	 	 	 
	 	(b)	In
    order to ensure the availability of the Section 3(a)(10) Exemption, the Arrangement Parties agree that the issuance of each
    of the Arrangement Consideration Shares, the Replacement Options and the Replacement Compensation Options, pursuant to the
    Arrangement shall be carried out on the following basis:

 

	 	(i)	the
    Arrangement and the issuance of the Arrangement Consideration Shares, the Replacement Options and the Replacement Compensation
    Options shall be subject to the approval of the Court;
	 	 	 
	 	(ii)	the
    Interim Order shall specify that each Person to whom Arrangement Consideration Shares, Replacement Options or Replacement
    Compensation Options, as applicable, shall be issued pursuant to the Arrangement shall have the right to appear before the
    Court at the hearing of the Court to approve the Arrangement, so long as such securityholder enters an appearance within a
    reasonable time;
	 	 	 
	 	(iii)	the
    Court shall be advised as to the intention of the Arrangement Parties to rely on the Section 3(a)(10) Exemption prior to the
    hearing required to approve each of the Arrangement and the issuance of such Arrangement Consideration Shares, Replacement
    Options and Replacement Compensation Options;
	 	 	 
	 	(iv)	the
    Court shall be required to satisfy itself as to the substantive and procedural fairness of each of the Arrangement and the
    issuance of such Arrangement Consideration Shares, Replacement Options and Replacement Compensation Options;
	 	 	 
	 	(v)	the
    Final Order shall state that the Arrangement and the issuance of such Arrangement Consideration Shares, Replacement Options
    and Replacement Compensation Options are approved by the Court as being substantively and procedurally fair to the Persons
    to whom the Arrangement Consideration Shares, Replacement Options and Replacement Compensation Options will be issued;
	 	 	 
	 	(vi)	the
    Arrangement Parties shall ensure that the Persons entitled to receive Arrangement Consideration Shares, Replacement Options
    or Replacement Compensation Options, as applicable, in the Arrangement shall be given adequate and timely notice advising
    them of their right to attend and appear before the Court at the hearing of the Court for the Final Order and providing them
    with adequate information to enable such Persons to exercise such right; and
	 	 	 
	 	(vii)	the
    Final Order shall include a statement to substantially the following effect:

 

	 	 	“This
    Order shall serve as the basis for reliance on the exemption provided by Section 3(a)(10) of the United States Securities
    Act of 1933, as amended, from the registration requirements otherwise imposed by that act, regarding the issuance of (i) shares
    of the Resulting Issuer pursuant to the Plan of Arrangement, and (ii) options to purchase shares of the Resulting Issuer in
    exchange for currently outstanding Harvest options and Harvest compensation options, as contemplated in the Plan of Arrangement.”

 

    	 	-34-	 

     

    

 

	 	(c)	Unless
    required to ensure that the Resulting Issuer Subordinate Voting Shares are freely tradeable on the CSE and that the Resulting
    Issuer Subordinate Voting Shares issued in connection with the Arrangement will not be “restricted securities”
    within the meaning of Rule 144 under the U.S. Securities Act upon their issuance (other than restrictions on transfers applicable
    to “affiliates” (as defined in Rule 405 under the U.S. Securities Act) of the Resulting Issuer following completion
    of the Arrangement or who were affiliates of ParentCo within 90 days prior to completion of the Transaction), Harvest and
    ParentCo shall not be required to file a prospectus, registration statement or similar document or otherwise become subject
    to the securities Laws of any jurisdiction (other than Canadian Securities Laws) in order to complete the Arrangement. Harvest
    and ParentCo may elect, at their sole discretion, to make such securities and other regulatory filings in the United States
    or other jurisdictions as may be necessary or desirable in connection with the completion of the Arrangement.

 

	3.07	Equity-Based
    Compensation Plans

 

Following
approval of the Harvest Arrangement Resolution and the Harvest Equity Incentive Plan Resolution at the Harvest Meeting and approval
of the ParentCo Arrangement Resolution and the ParentCo Equity Incentive Plan Resolution at the ParentCo Meeting, and prior to
the Effective Date, Harvest shall take all steps reasonably necessary to amend the Harvest Equity Incentive Plan, including to
exercise any discretion provided thereunder to the extent required, to provide that each Harvest Option outstanding immediately
prior to the Effective Time of the Arrangement shall, pursuant to and in accordance with the Plan of Arrangement, be exchanged
for a Replacement Option to purchase that number of Resulting Issuer Subordinate Voting Shares or Resulting Issuer Multiple Voting
Shares equal to the number of Harvest Subordinate Voting Shares or Harvest Multiple Voting Shares subject to such Harvest Option
immediately prior to the Effective Time of the Arrangement, at an exercise price per Resulting Issuer Subordinate Voting Share
equal to the exercise price per Harvest Subordinate Voting Share subject to each such Harvest Option immediately before the Effective
Time of the Arrangement, with all other terms and conditions of such Replacement Option being the same as the terms and conditions
as in the Harvest Equity Incentive Plan, except that the obligations of Harvest in respect of such Replacement Options shall instead
continue as obligations of the Resulting Issuer immediately following the Effective Time of the Arrangement.

 

	3.08	ParentCo
    Directors and Officers

 

The
Plan of Arrangement shall provide that, immediately following the Effective Time of the Arrangement the board of directors of
the Resulting Issuer shall be comprised of five directors, each of whom shall be named in the Plan of Arrangement, with each such
director to hold office until the earliest of the next annual meeting of the shareholders of the Resulting Issuer, his or her
death or resignation or until his or her successor is elected or appointed, provided that all such individuals are eligible to
serve as a director of the Resulting Issuer under applicable Law and are acceptable to the CSE.

 

    	 	-35-	 

     

    

 

ARTICLE
4

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the correspondingly numbered Section of the Company Disclosure Schedules, the Company represents and warrants
to ParentCo and Harvest that the statements contained in this Article 4 are true and correct as of the date hereof and will be
true and correct as of the Closing Date.

 

	4.01	Organization,
    Qualification and Authorization of the Company

 

	 	(a)	The
    Company is duly formed and validly existing under the Laws of the State of Delaware and has all necessary limited liability
    company power and authority to conduct its business in the manner in which it is currently being conducted. The Company is
    duly qualified or otherwise authorized to do business in each of the jurisdictions in which it is required to be so qualified
    or otherwise authorized, except to the extent that the failure to be so qualified or otherwise authorized would not have a
    Company Material Adverse Effect. The Company is not the subject of any administration, administrative receivership, insolvency,
    dissolution, liquidation, receivership, reorganization or similar proceeding and, to the Knowledge of the Company, no steps
    have been taken for the Company to become the subject of any such proceeding.
	 	 	 
	 	(b)	The
    execution, delivery and performance by the Company of this Agreement, the Transaction Documents to which the Company is a
    party, and the consummation of the Transactions to which the Company is a party have been duly and validly authorized and
    approved by all members of the Board of Managers of the Company and, other than the approval of the Company Unit Holders in
    accordance with Section 2.02(b), no other proceeding on the part of the Company, its managers or its members is necessary
    to authorize this Agreement or the Company’s performance hereunder. This Agreement has been and, upon their execution
    and delivery, the Transaction Documents to which the Company is or shall become a party shall have been, duly executed and
    delivered by the Company, and (assuming due authorization, execution and delivery by each other Party of this Agreement and
    the applicable Transaction Documents) this Agreement constitutes and, upon their execution, the Transaction Documents shall
    constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with the terms
    hereof and thereof, in each case, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
    and similar Laws affecting creditors’ rights and remedies.

 

	4.02	Organization
    of the Company Subsidiaries

 

Each
of the Company Subsidiaries is a limited liability company or corporation, as applicable, duly organized, formed or incorporated,
as applicable, validly existing and in good standing under the Laws of the state of its formation or incorporation as applicable.
Each of the Company Subsidiaries has full limited liability company power or corporate power and authority to own, operate or
lease the properties and assets now owned, operated or leased by it and to carry on its business as it has been and is currently
conducted, except to the extent that any lack of power or authority would not result in a Company Material Adverse Effect.

 

    	 	-36-	 

     

    

 

	4.03	Capitalization
    of the Companies

 

	 	(a)	Section
    4.03(a) of the Company Disclosure Schedules sets forth all of the equity interests authorized, issued and outstanding for
    the Company, consisting of the Company Units. All of the Company Units have been duly authorized, are validly issued and are
    owned of record by the respective Company Unit Holders as set forth in Section 4.03(a) of the Company Disclosure Schedules,
    free and clear of all Encumbrances. No former equity holder of the Company has made a claim or asserted a right against the
    Company that remains unresolved or to which the Company has or may have any Liability. Upon consummation of the Transactions,
    the Resulting Issuer shall own, either directly or through its ownership of one or more Qualified Holdcos, all of the Company
    Units, free and clear of all Encumbrances, other than any transfer restrictions in the Operating Agreement or under applicable
    securities Laws.
	 	 	 
	 	(b)	All
    of the Company Units were issued in compliance with applicable Laws. None of the Company Units were issued in violation of
    any agreement, arrangement or commitment to which the Company or any Company Subsidiary is a party or is subject to or in
    violation of any preemptive or similar rights of any Company Unit Holder.
	 	 	 
	 	(c)	There
    are no voting trusts, member agreements, proxies or other agreements or understandings in effect with respect to the voting
    or transfer of any of the Company Units to which the Company is a party, except as set forth in Section 4.03(c) of the Company
    Disclosure Schedules.
	 	 	 
	 	(d)	Section
    4.03(d) of the Company Disclosure Schedules sets forth all authorized, issued and outstanding options, warrants (including
    the [***] Warrant), convertible securities or other rights, agreements, arrangements or commitments of any character relating
    to the membership units of the Company, as well as all agreements or arrangements (other than this Agreement) obligating the
    Company to issue or sell any shares of capital stock or membership units of, or any other interest in, the Company (collectively,
    the “Company Equity Instruments”). As of the Closing, all of the Company Equity Instruments will have been
    exercised or converted for Company Units prior to the Closing, extinguished, paid in full or cancelled, with no further obligation
    of the Company or ParentCo with respect to the Company Equity Instruments. In particular, the [***]Warrant shall
    be fully exercised prior to the Closing Time, and the Company Units issued upon such exercise shall participate in the Unit
    Exchange to the same extent and on the same terms as other Company Units. The Company does not have outstanding or authorized
    any stock appreciation, phantom stock, profit participation or similar rights. There are no outstanding options to purchase
    membership units or any other interest in the Company.
	 	 	 
	 	(e)	Section
    4.03(e) of the Company Disclosure Schedules sets forth all of the outstanding issued share capital, shares or limited liability
    company or membership interests, other equity rights, interests in or other securities of each Company Subsidiary that are
    owned directly or indirectly by the Company, or Company Unit Holders who own 10% or more of the Company Units (the “Company
    Subsidiaries Equity Interests”). Except as set forth in Section 4.03(e) of the Company Disclosure Schedules, all
    of the Company Subsidiaries Equity Interests are duly and validly issued and outstanding, and are legally and beneficially
    owned, directly or indirectly, by the Company, free and clear of all Encumbrances, except for applicable transfer restrictions
    pursuant to applicable Laws or Encumbrances in the respective governing documents of the Company Subsidiaries. Each member
    or shareholder, as applicable, of each Company Subsidiary was duly admitted as a member or shareholder, as applicable, of
    such Company Subsidiary.

 

    	 	-37-	 

     

    

 

	 	(f)	Except
    as set forth in Section 4.03(f) of the Company Disclosure Schedules or pursuant to the respective governing documents of the
    Company Subsidiaries, there are no outstanding warrants, grants, options, rights, agreements, convertible or exchangeable
    securities or other commitments or obligations pursuant to which the Company or any Company Subsidiary is or may become obligated
    to allot, issue, sell, transfer, purchase, return or redeem any shares or limited liability company or membership interests,
    other equity rights, interests or other securities of any Company Subsidiary.
	 	 	 
	 	(g)	Except
    as set forth in Section 4.03(g) of the Company Disclosure Schedules, there is no outstanding or authorized appreciation, phantom
    interest or similar rights with respect to any of the Companies. There are no voting trusts, proxies or other agreements or
    undertakings with respect to the voting of the issued equity capital of any Company Subsidiary to which a Company Subsidiary
    is a party.

 

	4.04	Company
    Subsidiaries

 

	 	(a)	Section
    4.04(a) of the Company Disclosure Schedules sets forth all Company Subsidiaries, listing each Company Subsidiary’s name,
    type of entity, jurisdiction and date of formation or incorporation, as applicable, and the names and ownership percentages
    of each of the owners of its equity and the kind and percentage of the outstanding equity interest of each such Company Subsidiary
    owned by the Company and each other Company Subsidiary. Section 4.04(a) of the Company Disclosure Schedules sets forth each
    jurisdiction in which the Company Subsidiaries are licensed or qualified to do business, and each of the Company Subsidiaries
    is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or
    leased by it or the operation of the Company Business as currently conducted by it makes such licensing or qualification necessary.
	 	 	 
	 	(b)	Except
    for the Company Subsidiaries or as otherwise set forth in Section 4.04(b) of the Company Disclosure Schedules, there are no
    other corporations, limited liability companies, partnerships, joint ventures or similar arrangements in which the Company
    or any Company Subsidiary owns any direct or indirect equity ownership or other interest or right to acquire the same.
	 	 	 
	 	(c)	No
    Company Subsidiary is the subject of any administration, administrative receivership, insolvency, bankruptcy, dissolution,
    liquidation, receivership, examinership, reorganization or similar proceeding and, to the Knowledge of the Company, no actions
    have been taken for any Company Subsidiary to become the subject of any such proceeding.
	 	 	 
	 	(d)	The
    Company has made available to Harvest true and complete copies of the governing documents of each Company Subsidiary as in
    effect as of the date of this Agreement.

 

	4.05	No
    Conflicts; Consents

 

The
execution, delivery and performance by the Company of this Agreement and the applicable Transaction Documents, and the consummation
of the Transactions contemplated hereunder and thereunder, do not and will not: (a) conflict with or result in a violation or
breach of, or default under, any provision of the certificate of formation, certificate of incorporation, limited liability agreement,
by-laws or other organizational documents of the Companies; (b) except as set forth in Section 4.05 of the Company Disclosure
Schedules and except with respect to the illegality of cannabis under United States federal law, conflict with, or result in a
violation or breach, in any material respect, of any provision of any Law or Governmental Order applicable to any of the Companies;
or (c) except as set forth in Section 4.05 of the Company Disclosure Schedules, or as otherwise required by the terms of this
Agreement, require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of,
constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result
in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which any of
the Companies is a party or by which any of the Companies is bound or to which any of their respective properties and assets are
subject (including any Material Contract) or any Permit affecting the properties, assets or business of the Companies, except
(i) where such violation, default or breach, individually or in the aggregate with any other violations, defaults or breaches,
would not result in a Company Material Adverse Effect; (ii) for those consents, notices or other actions, the failure to give
or obtain such consent, notice or take such other action would not result in a Company Material Adverse Effect; or (iii) that
are the Company Cannabis Consents. Except as set forth in Section 4.05 of the Company Disclosure Schedules or as otherwise required
by the terms of this Agreement, no consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any
Governmental Authority is required by any of the Companies in connection with the execution and delivery of this Agreement and
the consummation of the Transactions.

 

    	 	-38-	 

     

    

 

	4.06	Financial
    Statements

 

Complete
copies of the Company’s audited financial statements consisting of the combined statements of financial position of the
Company at December 31 in each of the years 2017 and 2016 and the related combined statements of operations, combined statements
of changes in members’ equity and combined statements of cash flows of the Company for the years then ended, including the
notes thereto and the unaudited combined statements of financial position of the Company at December 31, 2018 (together, the “Company
Financial Statements”) have been delivered to Harvest. The Company Financial Statements have been prepared in accordance
with IFRS applied on a consistent basis throughout the periods involved. The Company Financial Statements are based on the books
and records of the Companies, and fairly present in all material respects the combined financial condition of the Companies as
of the respective dates they were prepared and the combined results of the operations of the Companies for the periods indicated.
The Company maintains a standard system of accounting established and administered in accordance with IFRS.

 

	4.07	Undisclosed
    Liabilities

 

Except
as set forth in Section 4.07 of the Company Disclosure Schedules, the Companies have no Liabilities, except (a) those which are
adequately reflected or reserved against in the Company Financial Statements, and (b) those which have been incurred in the ordinary
course of business consistent with past practice and which are not, individually or in the aggregate, material in amount.

 

	4.08	Absence
    of Certain Changes, Events and Conditions

 

Except
as set forth in Section 4.08 of the Company Disclosure Schedules, and other than (i) in the ordinary course of business consistent
with past practice, or (ii) as otherwise contemplated by this Agreement, since August 16, 2018 there has not been, with respect
to any of the Companies, any:

 

	 	(a)	event,
    occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Company
    Material Adverse Effect;

 

    	 	-39-	 

     

    

 

	 	(b)	amendment
    of its charter, by-laws or other organizational documents;
	 	 	 
	 	(c)	split,
    combination or reclassification of any shares of its capital stock or membership units;
	 	 	 
	 	(d)	issuance,
    sale or other disposition of any of its capital stock or membership units, or grant of any options, warrants or other rights
    to purchase or obtain (including upon conversion, exchange or exercise) any of its capital stock or membership units;
	 	 	 
	 	(e)	declaration
    or payment of any dividends or distributions on or in respect of any of its capital stock or membership units or redemption,
    purchase or acquisition of its capital stock or membership units, other than tax distributions pursuant to the Operating Agreement
    or tax distributions pursuant to operating agreements of Subsidiaries for the Tax year ending December 31, 2018 and for the
    period from December 31, 2018 to the Closing;
	 	 	 
	 	(f)	material
    change in any method of its accounting or accounting practice, except as required by IFRS or as disclosed in the notes to
    the Company Financial Statements;
	 	 	 
	 	(g)	material
    change in its cash management practices and its policies, practices and procedures with respect to collection of accounts
    receivable, establishment of reserves for uncollectible accounts, accrual of accounts receivable, inventory control, prepayment
    of expenses, payment of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer
    deposits;
	 	 	 
	 	(h)	incurrence,
    assumption or guarantee of any indebtedness for borrowed money, except unsecured current obligations and Liabilities incurred
    in the ordinary course of business consistent with past practice;
	 	 	 
	 	(i)	transfer,
    assignment, sale or other disposition of any of the assets shown or reflected in the Company Financial Statements or cancellation
    of any debts or entitlements;
	 	 	 
	 	(j)	transfer,
    assignment or grant of any license or sublicense of any material rights under or with respect to any Company Intellectual
    Property or Company IP Agreements;
	 	 	 
	 	(k)	material
    damage, destruction or loss (whether or not covered by insurance) to its property;
	 	 	 
	 	(l)	any
    capital investment in, or any loan to, any other Person;
	 	 	 
	 	(m)	acceleration,
    termination, material modification to or cancellation of any material Contract (including, but not limited to, any Material
    Contract) to which it is a party or by which it is bound;
	 	 	 
	 	(n)	any
    capital expenditures in excess of $[***];
	 	 	 
	 	(o)	imposition
    of any Encumbrance upon any of the Companies or any of their material properties, or assets, whether tangible or intangible;
	 	 	 
	 	(p)	(i)
    grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation
    or benefits in respect of its current or former employees, officers, directors, independent contractors or consultants, other
    than as provided for in any written agreements or required by applicable Law or (ii) action to accelerate the vesting or payment
    of any compensation or benefit for any current or former employee, officer, director, independent contractor or consultant;

 

    	 	-40-	 

     

    

 

	 	(q)	adoption,
    modification or termination of any (i) employment, severance, retention or other agreement with any current or former employee,
    officer, director, independent contractor or consultant receiving annual compensation in excess of $[***], (ii) Company
    Benefit Plan, or (iii) collective bargaining or other agreement with a Union, in each case whether written or oral;
	 	 	 
	 	(r)	any
    loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders, members or current
    or former directors, managers, officers and employees;
	 	 	 
	 	(s)	purchase,
    lease or other acquisition of the right to own, use or lease any property or assets for an amount in excess $[***]
    individually (in the case of a lease, per annum) $[***] in the aggregate (in the case of a lease, for the entire term
    of the lease, not including any option term), except for purchases of inventory or supplies in the ordinary course of business
    consistent with past practice;
	 	 	 
	 	(t)	acquisition
    by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner,
    any business or any Person or any division thereof (excluding any acquisition, consolidation or purchase in connection with
    a Pipeline Binding Acquisition); or
	 	 	 
	 	(u)	action
    by it to make, revoke or change any election in respect of Taxes, adopt or change any accounting method in respect of Taxes,
    enter into any Tax sharing, allocation, indemnification or similar agreement, enter into any closing agreement with any taxing
    authority, settle any material claim or assessment in respect of Taxes, consent to any extension or waiver of the limitation
    period applicable to any claim or assessment in respect of Taxes, apply for or pursue any Tax ruling, change any Tax identification
    number, execute any powers of attorney in respect of any Tax matter, or file any amended Tax Return.

 

	4.09	Material
    Contracts

 

	 	(a)	Section
    4.09(a) of the Company Disclosure Schedules lists each of the following Contracts of the Companies (such Contracts, together
    with all Contracts concerning the occupancy, management or operation of any Real Property (including without limitation, brokerage
    contracts) listed or otherwise disclosed in Section 4.10(b) of the Company Disclosure Schedules and all Company IP Agreements
    set forth in Section 4.12(a) of the Company Disclosure Schedules, being “Material Contracts”):

 

	 	(i)	each
    Contract involving aggregate consideration in excess of $[***] and which, in each case, cannot be cancelled thereby
    without penalty or without more than ninety (90) days’ notice;
	 	 	 
	 	(ii)	all
    purchase agreements, merger agreements or similar acquisition or disposition agreements that provide for the acquisition or
    disposition of any business, a material amount of equity or assets of any other Person or any real property (whether by merger,
    sale of stock, sale of assets or otherwise);

 

    	 	-41-	 

     

    

 

	 	(iii)	all
    employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which any of
    the Companies is a party and which provide for annual compensation in excess of $[***] and are not cancellable without
    penalty or without more than ninety (90) days’ notice;
	 	 	 
	 	(iv)	all
    Contracts relating to indebtedness for borrowed money (including, without limitation, guarantees) of the Company or a Company
    Subsidiary;
	 	 	 
	 	(v)	any
    partnership, joint venture or similar agreements that could require any payment or contribution in excess of $[***];
	 	 	 
	 	(vi)	any
    agreement limiting or restraining in any material respect any of the Companies or any successor thereto from soliciting customers
    or engaging or competing in any manner (including any non-competition covenants, exclusivity restrictions, rights of first
    refusal or most-favored pricing clauses), in any location or in any business;
	 	 	 
	 	(vii)	any
    agreement providing for the license of or settlement with respect to material Company Intellectual Property (other than any
    licenses of Company Intellectual Property to customers, end users, providers and/or distributors entered into in the ordinary
    course of business);
	 	 	 
	 	(viii)	any
    agreement that grants to any Person any right of first offer or right of first refusal to purchase, lease, sublease, use,
    possess or occupy all or a substantial portion of the assets of the Companies, taken as a whole;
	 	 	 
	 	(ix)	any
    agreement that would provide for any standstill arrangements;
	 	 	 
	 	(x)	all
    Contracts with any Governmental Authority to which any of the Companies is a party (“Government Contracts”);
	 	 	 
	 	(xi)	all
    Contracts that limit or purport to limit the ability of any of the Companies to compete in any line of business or with any
    Person or in any geographic area or during any period of time;
	 	 	 
	 	(xii)	all
    Contracts between or among any of the Companies on the one hand and any Company Unit Holder, Qualified Pipeline Equity Holder
    or any Affiliate of any of the foregoing (other than the Company or a Subsidiary) on the other hand (except for the Company
    Benefit Plans); and
	 	 	 
	 	(xiii)	all
    collective bargaining agreements or Contracts with any Union to which any of the Companies is a party.

 

	 	(b)	Each
    Material Contract is valid and binding on the applicable Company in accordance with its terms and is in full force and effect.
    None of the Companies or, to the Company’s Knowledge, any other party thereto is in material breach of or default under
    (or, to the Company’s Knowledge, is alleged to be in material breach of or default under), or has provided or received
    any notice of any intention to terminate, any Material Contract. No event or circumstance has occurred that, with notice or
    lapse of time or both, would constitute an event of default by the Companies, or to the Company’s Knowledge any other
    party thereto, under any Material Contract or result in a termination thereof by the Companies, or to the Company’s
    Knowledge any other party thereto, or would cause or permit the acceleration or other changes of any material right or obligation
    or the loss of any material benefit thereunder by the Companies, or to the Company’s Knowledge any other party thereto.
    Complete and correct copies of each Material Contract (including all modifications, amendments and supplements thereto and
    waivers thereunder) have been made available to Harvest. As of the date of this Agreement, there exists no actual, or to the
    Company’s Knowledge threatened, termination, cancellation or material limitation of, or any material amendment, material
    modification or material change to, any Material Contract.

 

    	 	-42-	 

     

    

 

	4.10	Title
    to Assets; Real Property

 

	 	(a)	Except
    as set forth in Section 4.10(a) of the Company Disclosure Schedules, each of the Companies has good and marketable title to,
    or a valid leasehold interest in, all real property, personal property and other assets reflected in the Company Financial
    Statements, other than properties and assets sold or otherwise disposed of in the ordinary course of business consistent with
    past practice. All such properties and assets (including Company Real Property) are free and clear of Encumbrances except
    for the following (collectively referred to as “Permitted Encumbrances”):

 

	 	(i)	statutory
    liens for Taxes not yet due and payable;
	 	 	 
	 	(ii)	mechanics,
    carriers’, workmen’s, repairmen’s, warehousemen, laborers, materialmen’s or other like liens arising
    or incurred in the ordinary course of business consistent with past practice or amounts that are not delinquent and which
    are not, individually or in the aggregate, material to the Company Business; or
	 	 	 
		(iii)	easements,
    rights of way, zoning ordinances and other similar encumbrances affecting Company Real Property which are not, individually
    or in the aggregate, material to the Company Business.

 

	 	(b)	Section
    4.10(b) of the Company Disclosure Schedules sets forth a true, correct and complete list of (i) all real property owned by
    each of the Company and the Company Subsidiaries (collectively, the “Owned Real Property”), including their
    street addresses, and (ii) all interests in real property leased or subleased by any of the Companies as lessee (collectively,
    the “Leased Property”), and identifies for each lease of Leased Property (collectively, the “Leases”)
    the parties thereto, the street address of the property subject thereto, the base rent payable thereunder, and the renewal
    option date (if any). With respect to each Owned Real Property, the Company or applicable Company Subsidiary has good and
    marketable title to each such Owned Real Property, subject only to Permitted Encumbrances, and has delivered or made available
    to ParentCo and Harvest true, complete and correct copies of the deeds and other instruments (as recorded) by which it acquired
    such Owned Real Property, and copies of all title insurance policies, opinions, abstracts and surveys in its possession and
    relating to the Owned Real Property. With respect to the Leased Property, the Company or applicable Company Subsidiary has
    a valid leasehold interest in each Leased Property, subject only to Permitted Encumbrances. The Company has previously delivered
    to the ParentCo and Harvest correct and complete copies of each Lease, together with all amendments, modifications, supplements,
    waivers and side letters related thereto. With respect to each Lease: (i) the Lease is legal, valid, binding, enforceable
    and in full force and effect; (ii) none of the Companies or, to the Company’s Knowledge, any other party to the Lease
    is in breach or default thereunder, and no event has occurred which, with notice or lapse of time or both, would constitute
    such a breach or default or permit termination, modification or acceleration under the Lease; (iii) no party to the Lease
    has provided the other party with notice of any repudiation of any provision thereof; (iv) there are no disputes or oral agreements
    in effect as to the Lease; (v) the Lease has not been modified in any respect, except to the extent that such modifications
    are disclosed by the documents delivered to ParentCo and Harvest; and (vi) none of Company or the Company Subsidiaries has
    assigned, transferred, conveyed, mortgaged, deeded in trust or encumbered any interest in the Lease.

 

    	 	-43-	 

     

    

 

	 	(c)	Except
    as set forth in Section 4.10(c) of the Company Disclosure Schedules, with respect to each Company Real Property: (i) the current
    use of such Company Real Property and the operation of the Company Business thereon does not violate any instrument of record
    or Contract affecting such Company Real Property, or any applicable Law in any material respect (without any fines or monetary
    Liabilities attached); (ii) there are no leases, subleases, licenses, concessions or other Contracts, written or oral, granting
    to any Person the right of use or occupancy of any portion of such Company Real Property except in favor of one of the Companies;
    and (iii) there are no Persons in possession of such Company Real Property except the Company or one of its Subsidiaries.
	 	 	 
	 	(d)	To
    the extent necessary to run the Company Business as conducted as of the date of this Agreement, the Company or applicable
    Company Subsidiary has all certificates of occupancy and Permits necessary for the current use and operation, in all material
    respects, of each Company Real Property. Such Permits have been validly issued by the appropriate Governmental Authority in
    compliance with all applicable Laws, and the Company or applicable Company Subsidiary has fully complied with all conditions
    of the Permits applicable to it. All such Permits are in full force and effect in all material respects without requirement
    of further consent or approval of any Person.
	 	 	 
	 	(e)	To
    the Company’s Knowledge, no part of any Company Real Property is subject to any building or use restrictions that would,
    individually or in the aggregate, materially restrict or prevent the operation of the Company Business in any material respect
    on such Real Property, and each such Real Property is properly and duly zoned for its current use, and such current use is
    in all respects a conforming use. No Governmental Authority having jurisdiction over any Company Real Property has issued
    or, to the Knowledge of the Company, threatened to issue any notice or order, injunction, judgment, decree, ruling, writ or
    arbitration award that adversely affects the use or operation of such Company Real Property.
	 	 	 
	 	(f)	There
    does not exist any actual or, to the Knowledge of the Company, threatened or contemplated, condemnation or eminent domain
    proceedings that affect any Company Real Property or any part thereof, and none of the Company or any of the Company Subsidiaries
    has received any notice, oral or written, of the intention of any Governmental Authority or other Person to take or, other
    than pursuant to the terms of the applicable Contract, use any Company Real Property or any part thereof.

 

	4.11	Condition
    and Sufficiency of Assets

 

The
buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property
of the Companies are structurally sound, are in good operating condition and repair, and are adequate for the uses to which they
are being put, and none of such buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items
of tangible personal property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are
not material in nature or cost. The buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other
items of tangible personal property currently owned or leased by the Companies, together with all other properties and assets
of the Companies, are sufficient for the continued conduct of the Company Business after the Closing in substantially the same
manner as conducted prior to the Closing and constitute all of the rights, property and assets necessary to conduct the Company
Business as currently conducted.

 

    	 	-44-	 

     

    

 

	4.12	Intellectual
    Property

 

	 	(a)	The
    Company or a Company Subsidiary is the sole and exclusive legal and beneficial, and with respect to the Company IP Registrations,
    record, owner of all right, title and interest in and to the Company Intellectual Property, and has the valid right to use
    all other Intellectual Property used in or necessary for the conduct of the Company’s current business or operations,
    in each case, free and clear of Encumbrances other than Permitted Encumbrances. Section 4.12(a) of the Company Disclosure
    Schedules contains a true and accurate list of all Company IP Registrations.
	 	 	 
	 	(b)	The
    Companies’ rights in the Company Intellectual Property are valid and enforceable. The Companies have taken all reasonable
    steps to maintain, protect and enforce the Company Intellectual Property and to protect and preserve the confidentiality of
    all trade secrets included in the Company Intellectual Property.
	 	 	 
	 	(c)	Except
    as set forth in Section 4.12(c) of the Company Disclosure Schedules, the conduct of the Company Business as currently conducted,
    and the products, processes and services of the Companies, do not infringe, misappropriate or otherwise violate the Intellectual
    Property or other rights of any Person. No Person is currently infringing, misappropriating, or otherwise violating, any Company
    Intellectual Property.
	 	 	 
	 	(d)	Except
    as set forth in Section 4.12(d) of the Company Disclosure Schedules, there are no Actions (including any oppositions, interferences
    or re-examinations) settled, pending or, to the Company’s Knowledge, threatened: (i) alleging any infringement, misappropriation,
    dilution or violation of the Intellectual Property of any Person by the Companies; or (ii) challenging the validity, enforceability,
    registrability or ownership of any Company Intellectual Property or the Companies’ rights with respect to any Company
    Intellectual Property. The Companies are not subject to any outstanding or prospective Governmental Order (including any motion
    or petition therefor) that does or would restrict or impair the use of any Company Intellectual Property.
	 	 	 
	 	(e)	Except
    as would not have a Company Material Adverse Effect, the business of the Companies has not experienced any incident in which
    sensitive, personally identifiable information or other sensitive data was accessed without authorization by the Companies.
	 	 	 
	 	(f)	Section
    4.12(f) of the Company Disclosure Schedules accurately identifies in all material respects each Contract pursuant to which
    any material Intellectual Property is licensed, or otherwise conveyed or provided to the Companies, other than (A) agreements
    between the Companies and their employees and consultants with respect to the ownership of any Company Intellectual Property
    by the Companies and (B) Off-the-Shelf Software. Section 4.12(f) of the Company Disclosure Schedules accurately identifies
    in all material respects each Contract pursuant to which any Person is currently granted any license under, or otherwise has
    received or acquired any right (whether or not currently exercisable) or interest in, any material Company Intellectual Property,
    other than consumer agreements or service agreements on the Company’s standard form(s) thereof and other non-exclusive
    licenses granted in the ordinary course of business.

 

    	 	-45-	 

     

    

 

	4.13	Inventory

 

All
inventory of the Companies, whether or not reflected in the Company Financial Statements, consists of a quality and quantity usable
and salable in the ordinary course of business consistent with past practice except for obsolete, damaged, defective or slow-moving
items that have been written off or down to fair market value and for which adequate reserves have been established. All such
inventory is owned by the Companies free and clear of all Encumbrances, and no inventory is held on a consignment basis. As of
the Closing, the Companies will have a level of inventory consistent with past practice.

 

	4.14	Accounts
    Receivable

 

The
trade accounts receivable of the Companies (a) have arisen from bona fide transactions entered into by the Companies involving
the sale of goods or the rendering of services in the ordinary course of business consistent with past practice; and (b) constitute
only valid, undisputed claims of the Companies not subject to claims of set-off or other defenses or counterclaims other than
normal cash discounts accrued in the ordinary course of business consistent with past practice or as reserved for in the Company
Financial Statements.

 

	4.15	Insurance

 

Section
4.15 of the Company Disclosure Schedules sets forth a true and complete list of all current policies or binders of fire, liability,
product liability, umbrella liability, real and personal property, workers’ compensation, vehicular, directors’ and
officers’ liability, fiduciary liability and other casualty and property insurance maintained by the Companies and relating
to the Company Business (collectively, the “Company Insurance Policies”) and true and complete copies of such
Company Insurance Policies have been made available to ParentCo and Harvest. Such Company Insurance Policies are in full force
and effect and shall remain in full force and effect following the consummation of the Transaction. All premiums due on such Company
Insurance Policies have either been paid or, if due and payable prior to Closing, will be paid prior to Closing in accordance
with the payment terms of each Company Insurance Policy. To the Knowledge of the Company, there are no circumstances which would
reasonably be expected to lead to the insurers avoiding any material Liability under any of the Company Insurance Policies. Except
as would not have a Company Material Adverse Effect, (a) the applicable insured parties have complied with the provisions of the
applicable Company Insurance Policies, and (b) none of the Companies has received any written notice regarding (i) the cancellation
or invalidation of any of the Company Insurance Policies or (ii) any refusal of coverage under or any rejection of any material
claim under, any such Company Insurance Policies.

 

	4.16	Legal
    Proceedings; Governmental Orders

 

	 	(a)	Except
    as set forth in Section 4.16(a) of the Company Disclosure Schedules, there are no Actions pending or, to the Company’s
    Knowledge, threatened against or by the Company or any Company Subsidiary that seeks Losses, or that challenge or seek to
    prevent, enjoin or otherwise delay the Transactions.
	 	 	 
	 	(b)	To
    the Company’s Knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for,
    any Action. Except as set forth in Section 4.16(b) of the Company Disclosure Schedules, there are no outstanding Governmental
    Orders and no unsatisfied judgments, penalties or awards against or affecting the Companies or any of their properties or
    assets.

 

    	 	-46-	 

     

    

 

	4.17	Compliance
    With Laws; Permits

 

	 	(a)	Except
    as set forth in Section 4.17(a) of the Company Disclosure Schedules or with respect to the illegality of cannabis under United
    States federal law or as otherwise disclosed with respect to the Environmental Laws covered in Section 4.18, each of the Companies
    has complied, and is now complying in all material respects, with all Laws applicable to it or its properties, assets or the
    Company Business. Except as set forth in Section 4.17(a) of the Company Disclosure Schedules, none of the Companies has received
    any written notice of any material inquiry, investigation, violation or alleged violation of any applicable Law or Governmental
    Order.
	 	 	 
	 	(b)	(i)
    Except as set forth in Section 4.17(b) of the Company Disclosure Schedules, all Company Cannabis Permits and all other material
    Permits, including without limitation all Company Cannabis Permits and other material Permits, required for each of the Companies
    to conduct the Company Business have been obtained by it or by their Affiliates and are valid and in full force and effect
    in accordance with their terms, and each of the Companies has timely executed the relevant requirements for the renewal of
    such Company Cannabis Permits or other material Permits, whenever needed, and (ii) no written notice of revocation, cancellation
    or termination of any Company Cannabis Permit or other material Permit has been received by any of the Companies. All fees
    and charges with respect to such Company Cannabis Permits and other material Permits as of the date hereof have been paid
    in full. Section 4.17(b) of the Company Disclosure Schedules lists all current Company Cannabis Permits and all other material
    Permits issued to any of the Companies, including the names of the Permits and their respective dates of issuance and expiration.
    Except as set forth in Section 4.17(b) of the Company Disclosure Schedules or as a result of a change in Law, no event has
    occurred that, with or without notice or lapse of time or both (including after the Closing), would reasonably be expected
    to result in the revocation, suspension, lapse or limitation of any Company Cannabis Permit or other material Permit.

 

	4.18	Environmental
    Matters

 

	 	(a)	Except
    as set forth in Section 4.18(a) of the Company Disclosure Schedules, the Companies are, and have been, in compliance in all
    material respects with all Environmental Laws. The Companies have not received, from any Person, any: (i) Environmental Notice
    or Environmental Claim; or (ii) written request for information pursuant to Environmental Law, which, in each case, either
    remains pending or unresolved, or is the source of ongoing obligations or requirements as of the Closing Date. To the Knowledge
    of the Company, the Companies are not under investigation or inquiry by any Governmental Authority in relation to any breach
    of Environmental Law or the failure to comply with the terms and conditions of any authorization required by Environmental
    Law.
	 	 	 
	 	(b)	The
    Companies have obtained and are in material compliance with all Environmental Permits necessary for the Company Business.
    Except as would not be material to the Companies, taken as a whole, (i) the Companies have obtained each authorization required
    by Environmental Laws for their respective businesses as currently conducted, (ii) the Companies have complied in all material
    respects with the terms and conditions on which any authorization required by Environmental Laws has been given to it and
    (iii) the Companies have complied in all material respects with any notification or claim made within the five (5) years ending
    on the date of this Agreement by any relevant Governmental Authority in respect of any breach of Environmental Laws.

 

    	 	-47-	 

     

    

 

	 	(c)	No
    real property currently or formerly owned, operated or leased by a Company is listed on, or has been proposed for listing
    on, the National Priorities List (or the Superfund Enterprise Management System) under CERCLA, or any similar state list.
	 	 	 
	 	(d)	There
    has been no Release of Hazardous Materials by any of the Companies or their agents in contravention of Environmental Law with
    respect to the business or assets of any of the Companies or any real property currently or formerly owned, operated or leased,
    or formerly owned by any of the Companies, and none of the Companies has received an Environmental Notice that any real property
    currently or formerly owned, operated or leased in connection with the Company Business (including soils, groundwater, surface
    water, buildings and other structure located on any such real property) is contaminated with any Hazardous Material which
    could reasonably be expected to result in either an Environmental Claim against, or non-compliance or violation of any Environmental
    Law or term of any Environmental Permit by any of the Companies.
	 	 	 
	 	(e)	The
    Company has provided or otherwise made available to ParentCo: (i) any and all environmental reports, studies, audits, records,
    sampling data, site assessments, risk assessments, economic models and other similar documents with respect to the business
    or assets of the Companies or any currently or formerly owned, operated or leased real property which are in the possession
    or control of the Companies, Company Unit Holders or Qualified Pipeline Entity Holders related to compliance with Environmental
    Laws, Environmental Claims or an Environmental Notice or the Release of Hazardous Materials; and (ii) any and all material
    documents concerning planned or anticipated capital expenditures required to reduce, offset, limit or otherwise control pollution
    and/or emissions, manage waste or otherwise ensure compliance with current or future Environmental Laws (including, without
    limitation, costs of remediation, pollution control equipment and operational changes).

 

	4.19	Employee
    Benefit Matters

 

	 	(a)	Section
    4.19(a) of the Company Disclosure Schedules contains a true and complete list of each pension, benefit, retirement, compensation,
    employment, consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity, stock
    or stock-based, change in control, retention, severance, vacation, paid time off, insurance, welfare, fringe-benefit and other
    similar agreement, plan, policy, program or arrangement (and any amendments thereto), in each case whether or not reduced
    to writing and whether funded or unfunded, including each “employee benefit plan” within the meaning of Section
    3(3) of ERISA, whether or not tax-qualified and whether or not subject to ERISA, which is or has been maintained, sponsored,
    contributed to, or required to be contributed to by the Companies or any ERISA Affiliate for the benefit of any current or
    former employee, officer, director, retiree, independent contractor or consultant of the Companies or any spouse or dependent
    of such individual, or under which the Companies has or may have any Liability, or with respect to which ParentCo or any of
    its Affiliates would reasonably be expected to have any Liability, contingent or otherwise (each, a “Company Benefit
    Plan”).

 

    	 	-48-	 

     

    

 

	 	(b)	With
    respect to each Company Benefit Plan, the Company has made available to ParentCo accurate, current and complete copies of
    each of the following: (i) where the Company Benefit Plan has been reduced to writing, the plan document together with all
    amendments; (ii) where the Company Benefit Plan has not been reduced to writing, a written summary of all material plan terms;
    (iii) where applicable, copies of any trust agreements or other funding arrangements, custodial agreements, insurance policies
    and Contracts, administration agreements and similar agreements, and investment management or investment advisory agreements,
    now in effect or required in the future as a result of the transactions contemplated by this Agreement or otherwise; (iv)
    copies of any summary plan descriptions, summaries of material modifications, employee handbooks and any other written communications
    (or a description of any oral communications) relating to any Company Benefit Plan; (v) in the case of any Company Benefit
    Plan that is intended to be qualified under Section 401(a) of the Code, a copy of the most recent determination, opinion or
    advisory letter from the Internal Revenue Service; (vi) in the case of any Company Benefit Plan for which a Form 5500 is required
    to be filed, a copy of the two most recently filed Form 5500, with schedules and financial statements attached; (vii) actuarial
    valuations and reports related to any Company Benefit Plan with respect to the two most recently completed plan years; (viii)
    the most recent nondiscrimination tests performed under the Code; and (ix) copies of material notices, letters or other correspondence
    with the Internal Revenue Service, Department of Labor, Pension Benefit Guaranty Corporation or other Governmental Authority
    relating to the Company Benefit Plan.
	 	 	 
	 	(c)	Each
    Company Benefit Plan can be amended, terminated or otherwise discontinued after the Closing in accordance with its terms,
    without Liabilities to ParentCo, the Companies or any of their Affiliates other than ordinary administrative expenses typically
    incurred in a termination event.
	 	 	 
	 	(d)	No
    Company Benefit Plan is, nor does the Company nor any of its ERISA Affiliates have or is reasonably expected to have any Liability
    or obligation under (i) any employee benefit plan subject to Section 412 of the Code or Title IV of ERISA; (ii) a multi-employer
    plan as defined in Section 3(37) of ERISA, (iii) a multiple employer plan as described in Section 413(c) of the Code, (iv)
    a multiple employer welfare arrangement as described in Section 3(40)(A) of ERISA, or (v) a voluntary employees’ beneficiary
    association described under Section 501(c)(9) of the Code or any other welfare benefit fund described under Section 419 or
    419A of the Code.
	 	 	 
	 	(e)	Each
    Company Benefit Plan is in compliance in all material respects with its terms and with ERISA, the Code and other applicable
    Law. All material premiums, material contributions, or material other payments required to have been made by Law or under
    the terms of any Company Benefit Plan or any Contract or agreement relating thereto as of the Closing Date have been timely
    made, and all material reports, material returns and similar material documents required to be filed with any Governmental
    Authority or distributed to any plan participant with respect to any Company Benefit Plan have been duly and timely filed
    or distributed.
	 	 	 
	 	(f)	No
    Company Benefit Plan provides, and neither the Company nor any of the Company Subsidiaries has any obligation to provide,
    health, medical, life insurance or death benefits to current or former employees beyond their retirement or other termination
    of service, other than coverage mandated by COBRA or Section 4980B of the Code, or other Law, the premiums of which are fully
    paid by such current or former employees or their dependents.

 

    	 	-49-	 

     

    

 

	 	(g)	With
    respect to each Company Benefit Plan (i) no “prohibited transaction” has occurred within the meaning of Sections
    406 or 407 of ERISA or Section 4975 of the Code for which any Liability remains outstanding; and (ii) there have been no acts
    or omissions by the Company or any ERISA Affiliate that have given or could be reasonably expected to give rise to any fines,
    penalties, taxes or related charges under Sections 502(c), 502(i), 502(l), 502(m) or 4071 of ERISA or Section 511 or Chapter
    43 of the Code, for which the Company or any Company Subsidiary has any Liability or with respect to which ParentCo or any
    of its Affiliates would reasonably be expected to have any Liability.
	 	 	 
	 	(h)	The
    Company and its ERISA Affiliates have each complied in all material respects with the notice and continuation coverage requirements,
    and all other requirements, of Section 4980B of the Code and Parts 6 and 7 of Title I of ERISA, and the regulations thereunder.
	 	 	 
	 	(i)	The
    Companies and each Company Benefit Plan that is a “group health plan” as defined in Section 733(a)(1) of ERISA
    (i) are currently in compliance, in all material respects, with the Patient Protection and Affordable Care Act, Pub.
    L. No. 111-148 (“ACA”), the Health Care and Education Reconciliation Act of 2010, Pub. L. No.111-152
    (“HCERA”), and all regulations and guidance issued thereunder (collectively, with ACA and HCERA, the “Health
    Care Reform Laws”) and (ii) have been in compliance, in all material respects, with all Health Care Reform Laws
    since March 23, 2010, in the case of each of clauses (i) and (ii), to the extent the Health Care Reform Laws are applicable
    thereto.
	 	 	 
	 	(j)	There
    is no pending or, to the Company’s Knowledge, threatened Action relating to a Company Benefit Plan (other than routine
    claims for benefits), and no Company Benefit Plan has within the three years prior to the date hereof been the subject of
    an examination or audit by a Governmental Authority or the subject of an application or filing under or is a participant in,
    an amnesty, voluntary compliance, self-correction or similar program sponsored by any Governmental Authority.
	 	 	 
	 	(k)	Each
    individual who is classified by the Companies as an independent contractor has been properly classified for purposes of participation
    and benefit accrual under each Company Benefit Plan.
	 	 	 
	 	(l)	Except
    as set forth in Section 4.19(l) of the Company Disclosure Schedules, neither the Company nor any of the Company Subsidiaries
    has any contractual obligation to reimburse or otherwise “gross-up” any Person for Tax.
	 	 	 
	 	(m)	Neither
    the execution of this Agreement nor any of the transactions contemplated by this Agreement will (either alone or upon the
    occurrence of any additional or subsequent events): (i) entitle any current or former director, manager, officer, employee,
    independent contractor or consultant of any of the Companies to severance pay or any other payment; (ii) accelerate the time
    of payment, funding or vesting, or increase the amount of compensation due to any such individual; (iii) limit or restrict
    the right of the Companies to merge, amend or terminate any Company Benefit Plan; (iv) increase the amount payable under or
    result in any other material obligation pursuant to any Company Benefit Plan; (v) result in “excess parachute payments”
    within the meaning of Section 280G(b) of the Code or (vi) require a “gross-up” or other payment to any “disqualified
    individual” within the meaning of Section 280G(c) of the Code or be subject to an excise tax under Section 4999 of the
    Code.

 

    	 	-50-	 

     

    

 

	4.20	Employment
    Matters

 

	 	(a)	Section
    4.20(a) of the Company Disclosure Schedules contains a list of all persons who are employees, independent contractors or consultants
    of any of the Companies as of the date hereof, including any such employee who is on a leave of absence of any nature, paid
    or unpaid, authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii) title or position
    (including whether classified as exempt or non-exempt for overtime purposes), the name of their respective employer and work
    location; (iii) hire date; (iv) employment status (including whether active or on leave; and (v) current annual base compensation
    rate; and (vi) commission, bonus or other incentive based compensation for directors and officers of the Company, as of the
    date hereof. Except as set forth in Section 4.20 of the Company Disclosure Schedules, as of the date hereof, all compensation,
    including wages, commissions and bonuses, payable to all employees, independent contractors or consultants of any of the Companies
    for services performed on or prior to the date hereof have been paid in full and there are no outstanding agreements, understandings
    or commitments of any of the Companies with respect to any compensation, commissions or bonuses, except for (i) discretionary
    bonuses for 2018 described in Section 4.20(a) of the Company Disclosure Schedules and which will be paid in 2019; (ii) wages
    owed and which will be paid during the Company’s upcoming payroll cycles; and (iii) any bonuses described in Section
    4.20(a) of the Company Disclosure Schedules that are payable in connection with the consummation of the transactions contemplated
    by this Agreement.
	 	 	 
	 	(b)	Except
    as set forth in Section 4.21(b) of the Company Disclosure Schedules, none of the Companies has ever been a party to, bound
    by, or negotiated any collective bargaining agreement or other Contract with a union, works council or labor organization
    (collectively, “Union”). None of the Company or any Company Subsidiary has been subject to a strike, work
    stoppage or material labor dispute since the date that is three (3) years prior to the date hereof. There are no organizational
    efforts with respect to the formation of a collective bargaining unit presently being made or, to the Company’s Knowledge,
    threatened involving employees of the Company or any Company Subsidiary. There are no pending or, to the Company’s Knowledge,
    threatened, and, since January 1, 2016, there have been no strikes, lockouts, or union organization activities. The Company
    and each of the Company Subsidiaries are not engaged in and have not engaged in any unfair labor practice that has resulted
    or could reasonably be expected to result, individually or in the aggregate, in any Liability to the Company or any of the
    Company Subsidiaries. There is no unfair labor practice charge against the Company or any of the Company Subsidiaries pending
    or, to the Company’s Knowledge, threatened before the National Labor Relations Board or any similar labor relations
    authority that could reasonably be expected to result in any Liability to the Company or any of the Company Subsidiaries.
	 	 	 
	 	(c)	Except
    as set forth in Section 4.20(c) of the Company Disclosure Schedules, all of the Companies are and have been in compliance
    all applicable Laws pertaining to employment and employment practices, including all Laws relating to labor relations, equal
    employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation,
    disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion and termination
    of employees, working conditions, meal and break periods, privacy, health and safety, workers’ compensation, leaves
    of absence and unemployment insurance.

 

    	 	-51-	 

     

    

 

	 	(d)	The
    Companies are in compliance with the federal Workers Adjustment and Retraining Notification Act and all similar state or local
    Laws (collectively, the “WARN Act”), and the Companies do not have any Liability pursuant the WARN Act.
    The Companies have not implemented or been involved in any “mass layoff” or “plant closing” as defined
    in the WARN Act within the past three (3) years.

 

	4.21	Taxes

 

	 	(a)	The
    Company and each of the Company Subsidiaries has duly and timely filed or caused to be filed (taking into account any valid
    extensions) all material Tax Returns required by Law to be filed by it and all such Tax Returns are true, correct and complete
    in all material respects; provided that the Company makes no representations with respect to the application of Section 280E
    of the Code. The Company and the Company Subsidiaries have timely and fully paid all material income and other Taxes due and
    owing (whether or not shown on any Tax Return); provided that the Company makes no representations regarding the possible
    adjustment to or recalculation of Taxes due and owing by the Company or the Company Subsidiaries for any period prior to the
    Closing Date from the application of Section 280E.
	 	 	 
	 	(b)	Except
    as set forth on Section 4.21(b) of the Company Disclosure Schedules, there have been no entity classification elections filed
    pursuant to Treasury Regulations Section 301.7701-3 (or any analogous provision of state or local income Tax Law), with respect
    to the Company or any of the Company Subsidiaries. Except as set forth in Section 4.21(a) of the Company Disclosure Schedules,
    each of the Company and the Company Subsidiaries is currently, and has been at all times since its formation, treated as a
    partnership or as an entity disregarded from its owner as defined in Section 301.7701-3 of the U.S. Treasury Regulations for
    U.S. federal, state, and where applicable, local income tax purposes.
	 	 	 
	 	(c)	The
    Companies have withheld and paid each material Tax required to have been withheld and paid in connection with amounts paid
    or owing to any employee, independent contractor, creditor, customer, owner or other party, and complied with all material
    backup withholding and material information reporting provisions of applicable Law.
	 	 	 
	 	(d)	There
    are no liens for material Taxes upon the assets of any of the Company and the Company Subsidiaries other than for current
    Taxes not yet due and payable.
	 	 	 
	 	(e)	No
    claim (which remains unresolved) has been made in writing by any Tax authority in a jurisdiction where any of the Company
    or any of the Company Subsidiaries does not file Tax Returns that the Company or any such Company Subsidiary is subject to
    Tax in such jurisdiction. None of the Company or any of the Company Subsidiaries has nexus or is required to file Tax Returns
    in a jurisdiction where it does not file Tax Returns, whether or not the Company or any such Company Subsidiary has a physical
    presence in such jurisdiction (including any jurisdiction that may subject the Company or such Company Subsidiary to taxation
    in accordance with South Dakota v. Wayfair, Inc., 86 U.S.L.W. 4452 (2018)).
	 	 	 
	 	(f)	Except
    as set forth on Section 4.21(f) of the Company Disclosure Schedules, no extensions or waivers of statutes of limitations extending
    the period for the assessment or collection of any Tax have been given or requested with respect to any Taxes of the Company
    or the Company Subsidiaries, other than extensions for periods that are now expired.

 

    	 	-52-	 

     

    

 

	 	(g)	To
    the Knowledge of the Company, no audit or other examination of any Tax Return of any of the Company or any Company Subsidiary
    by any Governmental Authority is presently in progress, nor has any of the Company or any Company Subsidiary been notified
    in writing of any request for such an audit or other examination. No power of attorney that is currently in effect has been
    granted by the Company or any Company Subsidiary with respect to any Tax matter.
	 	 	 
	 	(h)	None
    of the Company or the Company Subsidiaries has requested or is the subject of or bound by any private letter ruling, technical
    advice memorandum or similar ruling or memorandum with any taxing authority with respect to any Taxes, nor is any such request
    outstanding.
	 	 	 
	 	(i)	None
    of the Company or the Company Subsidiaries will be required to include any item of material income in, or exclude any item
    of material deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a
    result of (i) any change in or improper use of any method of accounting for a taxable period ending on or prior to the Closing
    Date under Section 481(c) of the Code (or any corresponding or similar provision of state, local, or foreign income Tax law);
    (ii) any “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision
    of state, local, or foreign income Tax law); (iii) any installment sale or open transaction made on or prior to the Closing
    Date; (iv) any prepaid amount received on or prior to the Closing Date; (v) intercompany transaction or excess loss account
    described in the Treasury Regulations under Section 1502 of the Code (or any corresponding or similar provision of state,
    local, or foreign income Tax law) existing on the Closing Date; or (vi) an election under Section 108(i) of the Code. None
    of the Company nor any of the Company Subsidiaries has made an election under Section 965(h) of the Code to pay the net Tax
    liability under Section 965 of the Code in installments.
	 	 	 
	 	(j)	None
    of the Company or any Company Subsidiaries has (i) ever been a member of an affiliated, consolidated, combined, unitary or
    similar group filing a consolidated Tax Return, (ii) ever been a party to any Tax sharing, Tax indemnification, Tax allocation
    agreement, or similar agreement (other than pursuant to commercial Contracts entered into in the ordinary course of business
    the primary purpose of which is not related to Taxes), nor does the Company or any Company Subsidiary owe any amount under
    any such agreement or have any liability to any Person as a result of, pertaining to or arising in connection with any such
    agreement (iii) any Liability for the Taxes of any Persons, including any arrangement for group or consortium relief or similar
    arrangement, as a transferee or successor, by contract, by operation of Law or otherwise (other than pursuant to commercial
    Contracts entered into in the ordinary course of business the primary purpose of which is not related to Taxes).
	 	 	 
	 	(k)	Neither
    the Company nor any Company Subsidiary has engaged in any transaction with a non-U.S. Affiliate.
	 	 	 
	 	(l)	Except
    as set forth on Section 4.21(l) of the Company Disclosure Schedules, neither the Company nor any Company Subsidiary is a party
    to any joint venture, partnership, other arrangement or Contract which could be treated as a partnership for U.S. federal
    income Tax purposes.
	 	 	 
	 	(m)	None
    of the Company or any Company Subsidiaries has ever been a controlled foreign corporation as defined in Section 957(a) of
    the Code or a passive foreign investment company as defined in Section 1297(a) of the Code nor does any of the Company or
    any Company Subsidiary own stock in a controlled foreign corporation as defined in Section 957(a) of the Code or a passive
    foreign investment company as defined in Section 1297(a) of the Code.

 

    	 	-53-	 

     

    

 

	 	(n)	Neither
    the Company nor any Company Subsidiary has (i) participated in any reportable transaction within the meaning of U.S. Treasury
    Regulations Section 1.6011-4(b) (or any similar provision of any Tax Law), or (ii) taken any reporting position on a Tax Return,
    which reporting position (A) if not sustained would be reasonably likely, absent disclosure, to give rise to a penalty for
    substantial understatement of federal income Tax under Section 6662 of the Code (or any similar provision of any Tax law),
    and (B) has not adequately been disclosed on such Tax Return in accordance with Section 6662(d)(2)(B) of the Code (or any
    similar provision of any Tax Law).
	 	 	 
	 	(o)	Neither
    the Company nor any Company Subsidiary is subject to Tax in any jurisdiction outside its jurisdiction of organization by virtue
    of (i) having a permanent establishment or other place of business or (ii) having a source of income in that jurisdiction.
    The Company is not required to file Tax Returns or pay Taxes in a country other than the United States.
	 	 	 
	 	(p)	Within
    the meaning of U.S. Treasury Regulation Section 1.1445-11T(d), neither (i) 50% or more of the value of the gross assets of
    the Company consists of “United States real property interests” under Section 897 of the Code, nor (ii) 90% or
    more of the value of the gross assets of the Company consists of U.S. real property interests plus cash or cash equivalents.
	 	 	 
	 	(q)	The
    Company and the Company Subsidiaries have not taken or omitted any action and, to the Company’s Knowledge, there is
    no fact, agreement, plan or other circumstance relating to the Harvest Exchange, Unit Exchange, Qualified Holdco Exchange
    or Qualified Pipeline Exchange that would reasonably be expected to prevent or impede such transactions from qualifying for
    the Intended U.S. Tax Treatment.
	 	 	 
	 	(r)	Notwithstanding
    anything to the contrary contained in this Agreement, no representations or warranties are made as to the amount or availability
    in any Post-Closing Tax Period of any net operating losses, credits, adjusted tax basis or other tax attributes of the Company
    and the Company Subsidiaries as of the Effective Date.

 

	4.22	Related
    Party Transactions

 

Except
(i) for the Company Benefit Plans and employment relationships entered into and compensation paid in the ordinary course of business,
(ii) for intercompany arrangements between any of the Companies, or (iii) as listed in Section 4.22 of the Company Disclosure
Schedules, as of the date of this Agreement, none of the Company, or any officer, manager or director of any of the Companies
or to the Company’s Knowledge, any Affiliates of the Companies (a) has any direct or indirect ownership interest in, or
is an officer, manager, director, employee of, consultant to, or contractor for, any Person that does business with, or has any
contractual arrangement with, any of the Companies (except with respect to any interest in less than 5% of the shares of any corporation
whose shares are publicly traded) or (b) is a party to an agreement with any of the Companies.

 

    	 	-54-	 

     

    

 

	4.23	Brokers

 

No
broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.

 

	4.24	Books
    and Records

 

The
corporate records and minute books of the Companies have been maintained in material compliance with all applicable Laws, and
the minute books of the Companies as provided to Harvest are complete and accurate in all material respects. The corporate minute
books for the Companies contain minutes of all meetings and resolutions of the directors and securityholders held.

 

	4.25	Information
    in Harvest Circular

 

The
information supplied or to be supplied by the Company, or on its behalf by any Affiliate or Representative, relating to the Companies
and their respective stockholders, members, control Persons and Representatives for inclusion in the Harvest Circular, any supplements
thereto or in any other document filed with any Governmental Authority in connection herewith, shall be in accordance with Section
2.06.

 

	4.26	Anti-Money
    Laundering

 

The
operations of the Companies are and have been conducted, at all times, in material compliance with all applicable financial recordkeeping
and reporting requirements of applicable anti-money laundering Laws of the jurisdictions in which the Company conducts business,
the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced
by any Governmental Authority (collectively, the “Company Anti-Money Laundering Laws”), and no Action by or
before any Governmental Authority against the Company with respect to the Company Anti-Money Laundering Laws is pending. None
of the Companies has, directly or indirectly: (a) made or authorized any contribution, payment or gift of funds or property to
any official, employee or agent of any governmental agency, authority or instrumentality of any jurisdiction in violation of applicable
Law; or (b) made any contribution to any candidate for public office, in either case where either the payment or the purpose of
such contribution, payment or gift was, is or would be prohibited under the Canada Corruption of Foreign Public Officials Act
(Canada) or the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) or the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (United States) or the rules and regulations
promulgated thereunder or under any other Law of any relevant jurisdiction covering a similar subject matter applicable to the
Company, its Subsidiaries and their operations. None of the Companies, or, to the Knowledge of the Company, any director, officer,
agent, employee, affiliate or Person acting on behalf of the Company has been or is currently subject to any United States sanctions
administered by the Office of Foreign Assets Control of the United States Treasury Department or, to the Knowledge of the Company,
are conducting business with any person subject to any United States sanctions.

 

	4.27	Corrupt
    Practices Legislation

 

None
of the Companies or any of their respective officers, managers, directors or employees acting on behalf of the Company or the
Company Subsidiaries has violated the United States’ Foreign Corrupt Practices Act (and the regulations promulgated
thereunder), the Corruption of Foreign Public Officials Act (Canada) (and the regulations promulgated thereunder) or any
similar applicable Law, and to the Knowledge of the Company, no such action has been taken by any of its agents, representatives
or other Persons acting on behalf of the Company or its Subsidiaries. The Company and the Company Subsidiaries have instituted
and maintained policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued
compliance therewith.

 

    	 	-55-	 

     

    

 

	4.28	Acquisition
    Targets

 

The
Companies have entered into letters of intent or definitive purchase agreements to acquire the businesses and operations of the
Acquisition Targets as described in Section 4.28 of the Company Disclosure Schedules. The representations and warranties set forth
in this Section 4.28 relate solely to the Acquisition Targets.

 

	 	(a)	Organization.
    Each of the Acquisition Targets is a limited liability company or corporation, as applicable, duly organized, validly existing
    and in good standing under the Laws of the state of its formation or incorporation, as applicable. Each of the Acquisition
    Targets has full limited liability company power or corporate power and authority to own, operate or lease the properties
    and assets now owned, operated or leased by it and to carry on its business as it has been and is currently conducted, except
    to the extent that any lack of power or authority would not result in a Material Adverse Effect. No Acquisition Target is
    the subject of any administration, administrative receivership, insolvency, dissolution, liquidation, receivership, reorganization
    or similar proceeding and, to the Knowledge of the Company, no steps have been taken for the Acquisition Targets to become
    the subject of any such proceeding.
	 	 	 
	 	(b)	Capitalization.
    All of the outstanding issued share capital, shares or limited liability company or membership interests of, or other equity
    rights or equity interests in, each Acquisition Target (collectively, the “Acquisition Target Equity Interests”)
    are duly and validly issued and outstanding, and are legally owned by the record holders thereof, free and clear of all Encumbrances,
    except for applicable transfer restrictions pursuant to applicable Laws or Encumbrances in the respective governing documents
    of the Acquisition Targets. Upon consummation of the applicable Pipeline Binding Acquisition, any of the Companies that is
    acquiring Acquisition Target Equity Interests in such Pipeline Binding Acquisition will own all of such Acquisition Target
    Equity Interests, free and clear of all Encumbrances, other than those created by the Company’s governing documents
    or under applicable securities Laws. Except as set forth on Section 4.28(b) of the Company Disclosure Schedules, there are
    no outstanding warrants, grants, options, rights, agreements, convertible or exchangeable securities or other commitments
    or obligations pursuant to which any Acquisition Target is or may become obligated to allot, issue, sell, transfer, purchase,
    return or redeem any shares or limited liability company or membership interest, other equity rights, interests or other securities
    of the Acquisition Target.
	 	 	 
	 	(c)	Acquisition
    Targets. Except as set forth on Section 4.28(c) of the Company Disclosure Schedules, there are no other corporations,
    limited liability companies, partnerships, joint ventures or similar arrangements in which any Acquisition Target owns any
    direct or indirect equity ownership or other interest or right to acquire the same.
	 	 	 
	 	(d)	No
    Conflicts. The execution, delivery and performance by each Acquisition Target of the transaction documents governing the
    applicable Pipeline Binding Acquisition (if and when executed), and the consummation of the transactions contemplated thereunder,
    do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the certificate
    of formation, certificate of incorporation, limited liability agreement, by-laws or other organizational documents of the
    Acquisition Targets; (b) except as set forth in Section 4.28(d) of the Company Disclosure Schedules and except with respect
    to the illegality of cannabis under United States federal law, conflict with, or result in a violation or breach, in any material
    respect, of any provision of any Law or Governmental Order applicable to any of the Acquisition Targets; or (c) except as
    set forth in Section 4.28(d) of the Company Disclosure Schedules, or as otherwise disclosed or required by the transaction
    documents governing the applicable Pipeline Binding Acquisition, require the consent, notice or other action by any Person
    under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or
    lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to
    accelerate, terminate, modify or cancel any Contract to which any of the Acquisition Targets is a party or by which any of
    the Acquisition Targets is bound or to which any of their respective properties and assets are subject (including any Acquisition
    Target Material Contract) or any Permit affecting the properties, assets or business of the Acquisition Targets, except (i)
    where such violation, default or breach, individually or in the aggregate with any other violations, defaults or breaches,
    would not result in an Acquisition Target Material Adverse Effect; (ii) for those consents, notices or other actions, the
    failure to give or obtain such consent, notice or take such other action would not result in an Acquisition Target Material
    Adverse Effect; or (iii) that are the Acquisition Target Cannabis Consents.

 

    	 	-56-	 

     

    

 

	 	(e)	Financial
    Statements. The annual financial statements as at December 31, 2018, and if applicable, interim, financial statements
    of each Acquisition Target, in each case that are in the possession of the Company (the “Acquisition Target Financial
    Statements”), have been delivered to Harvest. Except as set forth in Section 4.28(e) of the Company Disclosure Schedules,
    the Acquisition Target Financial Statements fairly present in all material respects the financial condition of the applicable
    Acquisition Target as of the date they were prepared and the results of the operations of such Acquisition Target for the
    periods indicated.
	 	 	 
	 	(f)	Undisclosed
    Liabilities. Except as disclosed or required by the transaction documents governing the applicable Pipeline Binding Acquisition,
    no Acquisition Target has any Liabilities, except (i) those which are adequately reflected or reserved against in the Acquisition
    Target Financial Statements, and (ii) those which have been incurred in the ordinary course of business consistent with past
    practice and which are not, individually or in the aggregate material in amount.
	 	 	 
	 	(g)	Absence
    of Certain Changes, Events and Conditions. Except as set forth in Section 4.28(g) of the Company Disclosure Schedules,
    and other than (i) in connection with the acquisition of an Acquisition Target, (ii) in the ordinary course of business consistent
    with past practice, or (iii) as contemplated by this Agreement, since January 1, 2019 there has not been, with respect to
    any of the Acquisition Targets, any:

 

	 	(i)	event,
    occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material
    Adverse Effect;
	 	 	 
	 	(ii)	amendment
    of its charter, by-laws or other organizational documents (other than amendments made at the request of the Company);
	 	 	 
	 	(iii)	split,
    combination or reclassification of any shares of its capital stock or membership units;

 

    	 	-57-	 

     

    

 

	 	(iv)	issuance,
    sale or other disposition of any of its capital stock or membership units (excluding issuances of capital stock (A) pursuant
    to ordinary course grants to officers, employees or consultants, (B) upon conversion, exchange or exercise of outstanding
    convertible securities, (C) pursuant to restructuring or roll-up transactions or (D) pursuant to the Pipeline Binding Acquisitions);
	 	 	 
	 	(v)	material
    change in any method of its accounting or accounting practice, except as required by IFRS or as disclosed in the notes to
    the Acquisition Target Financial Statements;
	 	 	 
	 	(vi)	incurrence,
    assumption or guarantee of any material indebtedness for borrowed money (except for funds borrowed from any of the Companies,
    unsecured current obligations and Liabilities incurred in the ordinary course of business consistent with past practice);
	 	 	 
	 	(vii)	material
    damage, destruction or loss (whether or not covered by insurance) to its property;
	 	 	 
	 	(viii)	any
    material capital investment in, or any material loan to, any other Person;
	 	 	 
	 	(ix)	acceleration,
    termination or cancellation of any Acquisition Target Material Contract (other than terminations made at the request of the
    Company);
	 	 	 
	 	(x)	any
    capital expenditures in excess of $[***], inclusive of the capital expenditures of the Companies;
	 	 	 
	 	(xi)	adoption,
    modification or termination of any collective bargaining or other agreement with a Union, in each case whether written or
    oral;
	 	 	 
	 	(xii)	any
    material loan to (or forgiveness of any material loan to) any of its stockholders or current or former directors, officers
    and employees;
	 	 	 
	 	(xiii)	imposition
    of any Encumbrance upon any of the Acquisition Targets or any of their material properties, or assets, whether tangible or
    intangible;
	 	 	 
	 	(xiv)	action
    by any Acquisition Target to enter into any Tax sharing, allocation, indemnification or similar agreement, enter into any
    closing agreement with any taxing authority, settle any material claim or assessment in respect of Taxes, consent to any extension
    or waiver of the limitation period applicable to any claim or assessment in respect of Taxes, apply for or pursue any Tax
    ruling, change any Tax identification number, execute any powers of attorney in respect of any Tax matter, or file any amended
    Tax Return;
	 	 	 
	 	(xv)	purchase,
    lease or other acquisition of the right to own, use or lease any property or assets for an amount in excess $[***],
    inclusive of the capital expenditures of the Companies, individually (in the case of a lease, per annum) $[***] in
    the aggregate, inclusive of the capital expenditures of the Companies (in the case of a lease, for the entire term of the
    lease, not including any option term), except for purchases of inventory or supplies in the ordinary course of business consistent
    with past practice; or

 

    	 	-58-	 

     

    

 

	 	(xvi)	acquisition
    by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner,
    any business or any Person or any division thereof.

 

	 	(h)	Material
    Contracts. Section 4.28(h) of the Company Disclosure Schedules lists each of the following Contracts of the Acquisition
    Targets disclosed the transaction documents governing the applicable Pipeline Binding Acquisition (such Contracts, together
    with all Contracts concerning the occupancy, management or operation of any Real Property (including without limitation, brokerage
    contracts) listed or otherwise disclosed in Section 4.28(h) of the Company Disclosure Schedules, being “Acquisition
    Target Material Contracts”):

 

	 	(i)	each
    Contract involving aggregate consideration in excess of $[***], inclusive of the capital expenditures of the Companies,
    and which, in each case, cannot be cancelled thereby without penalty or without more than ninety (90) days’ notice;
	 	 	 
	 	(ii)	all
    purchase agreements, merger agreements or similar acquisition or disposition agreements that provide for the acquisition or
    disposition of any business, a material amount of stock or assets of any other Person or any real property (whether by merger,
    sale of stock, sale of assets or otherwise);
	 	 	 
	 	(iii)	all
    employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which any of
    the Acquisition Targets is a party and which provide for annual compensation in excess of $[***] and are not cancellable
    without penalty or without more than ninety (90) days’ notice;
	 	 	 
	 	(iv)	all
    Contracts relating to material indebtedness for borrowed money (including, without limitation, guarantees) of any Acquisition
    Target;
	 	 	 
	 	(v)	any
    partnership, joint venture or similar agreements that could require any payment or contribution in excess of $[***],
    inclusive of the capital expenditures of the Companies;
	 	 	 
	 	(vi)	any
    agreement limiting or restraining in any material respect any of the Acquisition Targets or any successor thereto from soliciting
    customers or engaging or competing in any manner (including any non-competition covenants, exclusivity restrictions, rights
    of first refusal or most-favored pricing clauses), in any location or in any business;
	 	 	 
	 	(vii)	any
    agreement that grants to any Person any right of first offer or right of first refusal to purchase, lease, sublease, use,
    possess or occupy all or a substantial portion of the material assets of an Acquisition Target;
	 	 	 
	 	(viii)	all
    material Contracts with any Governmental Authority to which any of the Acquisition Targets is a party;
	 	 	 
	 	(ix)	all
    Contracts that limit or purport to limit the ability of any of the Acquisition Targets to compete in any line of business
    or with any Person or in any geographic area or during any period of time; and

 

    	 	-59-	 

     

    

 

	 	(x)	all
    collective bargaining agreements or Contracts with any Union to which any of the Acquisition Targets is a party.

 

	 	Complete
    and correct copies of each Acquisition Target Material Contract have been made available to Harvest. Each Acquisition Target
    Material Contract is valid and binding on the applicable Acquisition Target in accordance with its terms and is in full force
    and effect. None of the Acquisition Targets or, to the Company’s Knowledge, any other party thereto is in material breach
    of or default under (or, to the Company’s Knowledge, is alleged to be in material breach of or default under), or has
    provided or received any notice of any intention to terminate, any Acquisition Target Material Contract. To the Knowledge
    of the Company, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event
    of default under any Acquisition Target Material Contract or result in a termination thereof or would cause or permit the
    acceleration or other changes of any right or obligation or the loss of any benefit thereunder. As of the date of this Agreement,
    there exists no actual, or to the Company’s Knowledge threatened, termination or cancellation or material limitation
    of any Material Contract.

 

	 	(i)	Title
    to Assets; Real Property.

 

	 	(i)	Except
    as set forth in Section 4.28(i)(i) of the Company Disclosure Schedules, each of the Acquisition Targets has good and marketable
    title to, or a valid leasehold interest in, all real property, personal property and other assets reflected in the Acquisition
    Target Financial Statements, other than properties and assets sold or otherwise disposed of in the ordinary course of business
    consistent with past practice. All such properties and assets (including the Acquisition Target Real Property) are free and
    clear of Encumbrances except for Permitted Encumbrances.

 

	 	(ii)	Section
    4.28(i)(ii) of the Company Disclosure Schedules sets forth a true, correct and complete list of (i) all real property owned
    by each Acquisition Target (collectively, the “Acquisition Target Owned Real Property”), including their
    street addresses, and (ii) all interests in real property leased or subleased by any of the Acquisition Targets as lessee
    (collectively, the “Acquisition Target Leased Property”, and together with the Acquisition Target Owned
    Real Property, the “Acquisition Target Real Property”), and identifies for each lease of Acquisition Target
    Leased Property (collectively, the “Acquisition Target Leases”) the parties thereto and the street address
    of the property subject thereto. With respect to each Acquisition Target Owned Real Property, the applicable Acquisition Target
    has good and marketable title to each such Acquisition Target Owned Real Property, subject only to Permitted Encumbrances.
    With respect to each Acquisition Target Leased Property, the applicable Acquisition Target has a valid leasehold interest
    in each Acquisition Target Leased Property, subject only to Permitted Encumbrances. With respect to each Acquisition Target
    Lease: (i) the Acquisition Target Lease is legal, valid, binding, enforceable and in full force and effect; (ii) none of the
    Acquisition Targets or, to the Company’s Knowledge, any other party to the Acquisition Target Lease is in breach or
    default thereunder; and (iii) none of Acquisition Targets has assigned, transferred, conveyed, mortgaged, deeded in trust
    or encumbered any interest in the Acquisition Target Lease.

 

	 	(iii)	Except
    as set forth in Section 4.28(i)(iii) of the Company Disclosure Schedules, with respect to each Acquisition Target Real Property,
    the current use of the Acquisition Target Real Property and the operation of the applicable Acquisition Target’s business
    thereon does not violate any instrument of record or Contract affecting such Acquisition Target Real Property, or any applicable
    Law in any material respect (without any fines or monetary Liabilities attached).

    	 	-60-	 

     

    

 

	 	(iv)	There
    does not exist any actual or, to the Knowledge of the Company, threatened or contemplated, condemnation or eminent domain
    proceedings that affect any Acquisition Target Real Property or any part thereof, and none of the Acquisition Targets has
    received any notice, oral or written, of the intention of any Governmental Authority or other Person to take or, other than
    pursuant to the terms of the applicable Contract, use any Acquisition Target Real Property or any part thereof.

 

	 	(j)	Intellectual
    Property.

 

	 	(i)	The
    conduct of the business of the Acquisition Targets as currently conducted, and the products, processes and services of the
    Acquisition Targets, do not infringe, misappropriate or otherwise violate the Intellectual Property or other rights of any
    Person. No Person is currently infringing, misappropriating, or otherwise violating, any Intellectual Property that is owned
    by the Acquisition Targets (the “Acquisition Target Intellectual Property”).

 

	 	(ii)	Except
    as set forth in Section 4.28(j)(ii) of the Company Disclosure Schedules, there are no Actions settled, pending or, to the
    Company’s Knowledge, threatened (i) alleging any infringement, misappropriation, dilution or violation of the Intellectual
    Property of any Person by the Acquisition Targets or (ii) challenging the validity, enforceability, registrability or ownership
    of any Acquisition Target Intellectual Property or the Acquisition Targets’ rights with respect to any Acquisition Target
    Intellectual Property. The Acquisition Targets are not subject to any outstanding or prospective Governmental Order (including
    any motion or petition therefor) that does or would restrict or impair the use of any Acquisition Target Intellectual Property.

 

	 	(iii)	DGV
    Group, LLC, a Delaware limited liability company (“DGV”), (or its Affiliates) owns or has adequate, valid
    and enforceable rights to use all of its registered Intellectual Property, free and clear of all Encumbrances. DGV is not
    bound by any outstanding order, injunction, order or decree restricting the use of its registered Intellectual Property, or
    restricting the licensing thereof to any person or entity. With respect to the DGV registered Intellectual Property set forth
    in Section 4.28(j)(iii) of the Company Disclosure Schedules (the “DGV Intellectual Property”), including
    the (A) jurisdiction where the application or registration is located, (B) the application or registration number; and (C)
    the application or registration date. All DGV registered Intellectual Property set forth in Section 4.28(j)(iii) of the Company
    Disclosure Schedules is valid, subsisting and in full force and effect and DGV (or its Affiliates) has paid all maintenance
    fees and made all filings required to maintain DGV’s ownership thereof.

 

	 	(iv)	DGV’s
    rights in the DGV Intellectual Property are valid and enforceable. DGV has taken all reasonable steps to maintain, protect
    and enforce the DGV Intellectual Property and to protect and preserve the confidentiality of all trade secrets included in
    the DGV Intellectual Property.

 

    	 	-61-	 

     

    

 

	 	(v)	Section
    4.28(j)(v) of the Company Disclosure Schedules contains a list of all DGV contracts. Each DGV contract is valid and binding
    on DGV in accordance with its terms and is in full force and effect. None of DGV or, to DGV’s knowledge, any other party
    thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received
    any notice of any intention to terminate any DGV contract.

 

	 	(k)	Legal
    Proceedings; Governmental Orders.

 

	 	(i)	Except
    as set forth in Section 4.28(k)(i) of the Company Disclosure Schedules, there are no Actions pending or, to the Company’s
    Knowledge, threatened against any Acquisition Target that seeks Losses or challenge or seek to prevent, enjoin or otherwise
    delay the applicable Pipeline Binding Acquisition.

 

	 	(ii)	Except
    as set forth in Section 4.28(k)(ii) of the Company Disclosure Schedules, there are no material outstanding Governmental Orders
    and no material unsatisfied judgments, penalties or awards against or affecting the Acquisition Targets or any of their properties
    or assets.

 

	 	(l)	Compliance
    with Laws; Permits.

 

	 	(i)	Except
    as set forth in Section 4.28(l)(i) of the Company Disclosure Schedules, or with respect to the illegality of cannabis under
    United States federal law or as otherwise disclosed with respect to the Environmental Laws covered in Section 4.28(m), each
    of the Acquisition Targets has complied, and is now complying in all material respects, with all Laws applicable to it or
    its properties or assets. Except as set forth in Section 4.28(l)(i) of the Company Disclosure Schedules, none of the Acquisition
    Targets has received any written notice of any material inquiry, investigation, violation or alleged violation of any applicable
    Law or Governmental Order.

 

	 	(ii)	Section
    4.17(b) of the Company Disclosure Schedules lists all local and state cannabis permits issued to an Acquisition Target (“Acquisition
    Target Cannabis Permits”). Except as set forth on Section 4.28(l)(ii) of the Company Disclosure Schedules, (i) all
    Acquisition Target Cannabis Permits (including all Acquisition Target Cannabis Permits) or other material Acquisition Target
    Permits required for each of the Acquisition Targets to conduct their business as currently conducted have been obtained by
    it or by its Affiliates and are valid and in full force and effect in accordance with their terms, and each of the Acquisition
    Targets has timely executed the relevant requirements for the renewal of such Acquisition Target Cannabis Permits and other
    material Acquisition Target Permits, whenever needed, and (ii) no written notice of revocation, cancellation or termination
    of any Acquisition Target Cannabis Permits or other material Acquisition Target Permits has been received by any of the Companies.
    All fees and charges with respect to such Acquisition Target Cannabis Permits and other material Acquisition Target Permits
    as of the date hereof have been paid in full. Except as set forth on Section 4.28(l)(ii) of the Company Disclosure Schedules
    or as a result of a change in Law, no event has occurred that, with or without notice or lapse of time or both (including
    after the closing of the applicable Pipeline Binding Acquisition), would reasonably be expected to result in the revocation,
    suspension, lapse or limitation of any Acquisition Target Cannabis Permits and other material Acquisition Target Permits of
    an Acquisition Target.

 

    	 	-62-	 

     

    

 

	 	(m)	Environmental
    Laws. Except as set forth in Section 4.28(m) of the Company Disclosure Schedules, the Acquisition Targets are, and have
    been, in compliance in all material respects with all Environmental Laws. The Acquisition Targets have not received, from
    any Person, any: (i) Environmental Notice or Environmental Claim; or (ii) written request for information pursuant to Environmental
    Law, which, in each case, either remains pending or unresolved, or is the source of ongoing obligations or requirements as
    of the Closing Date. To the Knowledge of the Company, the Acquisition Targets are not under investigation or inquiry by any
    Governmental Authority in relation to any breach of Environmental Law or the failure to comply with the terms and conditions
    of any authorization required by Environmental Law.

 

	 	(n)	Employee
    Benefit Matters.

 

	 	(i)	For
    purposes of this Agreement, “Acquisition Target Benefit Plan” means each pension, benefit, retirement,
    compensation, employment, consulting, profit- sharing, deferred compensation, incentive, bonus, performance award, phantom
    equity, stock or stock-based, change in control, retention, severance, vacation, paid time off, insurance, welfare, fringe-benefit
    and other similar agreement, plan, policy, program or arrangement that is or has been maintained, sponsored, contributed to,
    or required to be contributed to by any Acquisition Target or any ERISA Affiliate of an Acquisition Target for the benefit
    of any current or former employee, officer, director, retiree, independent contractor or consultant of the Acquisition Targets
    or any spouse or dependent of such individual.

 

	 	(ii)	Except
    as set forth in Section 4.28(n)(ii) of the Company Disclosure Schedules, each Acquisition Target Benefit Plan can be amended,
    terminated or otherwise discontinued after the closing of the applicable Pipeline Binding Acquisition in accordance with its
    terms, without Liabilities to ParentCo, the Companies or any of their Affiliates other than ordinary administrative expenses
    typically incurred in a termination event.

 

	 	(iii)	There
    is no pending or, to the Company’s Knowledge, threatened Action relating to an Acquisition Target Benefit Plan (other
    than routine claims for benefits), and no Acquisition Target Benefit Plan has within the three years prior to the date hereof
    been the subject of an examination or audit by a Governmental Authority or the subject of an application or filing under or
    is a participant in, an amnesty, voluntary compliance, self-correction or similar program sponsored by any Governmental Authority.

 

	 	(o)	Employment
    Matters.

 

	 	(i)	Section
    4.28(o)(i) of the Company Disclosure Schedules contains a list of all persons who are employees, independent contractors or
    consultants of any of the Acquisition Targets as of the date hereof with annual compensation in excess of $[***] and
    which cannot be terminated at will, and sets forth for each such individual the following: (i) name; (ii) title or position;
    and (iii) current annual base compensation rate, as of the respective dates set forth in Section 4.28(o)(i) of the Company
    Disclosure Schedules.

 

    	 	-63-	 

     

    

 

	 	(ii)	Except
    as set forth in Section 4.28(o)(ii) of the Company Disclosure Schedules, none of the Acquisition Targets is a party to, bound
    by, or negotiating any collective bargaining agreement or other Contract with a Union.

 

	 	(p)	Taxes.
    Each Acquisition Target has duly and timely filed or caused to be filed (taking into account any valid extensions) all material
    Tax Returns required by Law to be filed by it and all such Tax Returns are true, correct and complete in all material respects;
    provided that no representation is made with respect to the application of Section 280E of the Code. Each Acquisition Target
    has timely and fully paid all material income and other Taxes due and owing (whether or not shown on any Tax Return); provided
    that no representation is made regarding the possible adjustment to or recalculation of Taxes due and owing by such Acquisition
    Target for any period prior to the Closing Date from the application of Section 280E.

 

ARTICLE
5

REPRESENTATIONS
AND WARRANTIES OF HARVEST

 

Except
as set forth in the correspondingly numbered sections of the Harvest Disclosure Schedules, Harvest represents and warrants to
the Company and ParentCo that the statements contained in this Article 5 are true and correct as of the date hereof and will be
true and correct as of the Closing Date.

 

	5.01	Organization,
    Qualification and Authorization of Harvest

 

	 	(a)	Harvest
    is a corporation duly organized, validly existing and in good standing under the Laws of British Columbia, Canada and has
    all necessary power and authority to conduct its business in the manner in which it is currently being conducted. Harvest
    is duly qualified or otherwise authorized to do business in each of the jurisdictions where it is required to be so qualified
    or otherwise authorized, except to the extent that the failure to be so qualified or otherwise authorized would not have a
    Harvest Material Adverse Effect. Harvest is not the subject of any administration, administrative receivership, insolvency,
    dissolution, liquidation, receivership, reorganization or similar proceeding and, to the Knowledge of Harvest, no steps have
    been taken for Harvest to become the subject of any such proceeding.

 

	 	(b)	The
    execution and delivery by Harvest of this Agreement and the Transaction Documents to which it is a party, the performance
    by it of its obligations hereunder and thereunder and the consummation by it of the Transactions have been duly authorized
    by all requisite corporate action of Harvest, and no other proceeding on the part of Harvest is necessary to authorize this
    Agreement or Harvest’s performance hereunder other than as provided for under this Agreement. This Agreement has been
    and, upon their execution and delivery, the Transaction Documents to which it is or shall become a party shall have been,
    duly executed and delivered by Harvest, and (assuming due authorization, execution and delivery by the Company and each other
    Party hereto of this Agreement and the applicable Transaction Documents) this Agreement constitutes, and upon their execution
    the Transaction Documents shall constitute, a legal, valid and binding obligation of Harvest enforceable against Harvest in
    accordance with the terms hereof and thereof, in each case, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
    reorganization, moratorium and similar Laws affecting creditors’ right and remedies.

 

    	 	-64-	 

     

    

 

	5.02	No
    Conflicts; Consents

 

The
execution, delivery and performance by Harvest of this Agreement and the applicable Transaction Documents, and the consummation
of the Transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach
of, or default under, any provision of the articles of organization, bylaws or other organizational documents of Harvest or the
Harvest Subsidiaries; (b) except with respect to the illegality of cannabis under United States federal law, conflict with or
result in a violation or breach in any material respect, of any provision of any Law or Governmental Order applicable to Harvest
or any Harvest Subsidiary; or (c) except as set forth in Section 5.02 of the Harvest Disclosure Schedules, or as otherwise required
by the terms of this Agreement, require the consent, notice or other action by any Person under, conflict with, result in a violation
or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default
under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract
to which Harvest or any Harvest Subsidiary is a party or by which Harvest or any Harvest Subsidiary is bound or to which any of
their respective properties and assets are subject or any Permit affecting the properties, assets or business of Harvest and the
Harvest Subsidiaries, except (i) where such violation, default or breach would not result in a Harvest Material Adverse Effect,
(ii) for those consents, notices or other actions the failure to give or obtain would not result in a Harvest Material Adverse
Effect; or (iii) result in the creation or imposition of any Encumbrance other than Permitted Encumbrances on any properties or
assets of any of Harvest or the Harvest Subsidiaries. Except as set forth in Section 5.02 of the Harvest Disclosure Schedules
(or as otherwise expressly contemplated by this Agreement), no consent, approval, Permit, Governmental Order, declaration or filing
with, or notice to, any Governmental Authority is required by or with respect to Harvest or any of the Harvest Subsidiaries in
connection with the execution and delivery of this Agreement and the consummation of the Transactions.

 

	5.03	Voting

 

The
only vote of any of the Harvest Shareholders necessary in connection with the entry into of this Agreement by Harvest and the
consummation of the Transactions, including the Closing are:

 

	 	(a)	the
    Harvest Required Shareholder Approval to approve (i) the Arrangement and the Plan of Arrangement, and (ii) the Harvest Equity
    Incentive Plan Resolution; and

 

	 	(b)	any
    approval that may be required in connection with the Restricted Security Relief.

 

	5.04	Governmental
    Approvals and Consents

 

Other
than as set forth in Section 5.04 of the Harvest Disclosure Schedules, no consent, notice, waiver, approval, Governmental Order
or authorization of, or registration, declaration or filing with, any Governmental Authority is required by or with respect to
Harvest or any Harvest Subsidiary with the execution and delivery of this Agreement and any Transaction Documents to which Harvest
is a party or the consummation of the Transactions, except for (a) HSR Approval, (b) the approval of the Arrangement and Plan
of Arrangement by the Court, (c) the filing with the securities regulators in Canada and with the CSE of the Harvest Circular,
including any applicable filings thereof with the SEC, (d) the application for, and approval of, the listing of the ParentCo Subordinate
Voting Shares to be issued by ParentCo as contemplated hereunder on the CSE, (e) any consents, approvals, authorizations, designations,
declarations, waivers or filings, the absence of which would not have a Harvest Material Adverse Effect and (f) the Restricted
Security Relief.

 

    	 	-65-	 

     

    

 

	5.05	Brokers

 

Other
than as set forth in Section 5.05 of the Harvest Disclosure Schedules, no broker, finder or investment banker is entitled to any
brokerage, finder’s or other fee or commission in connection with the Transactions based upon arrangements made by or on
behalf of Harvest.

 

	5.06	Legal
    Proceedings; Governmental Orders

 

	 	(a)	Except
    as set forth in Section 5.06(a) of the Harvest Disclosure Schedules, there are no Actions pending or, to Harvest’s Knowledge,
    threatened against or by Harvest or any Harvest Subsidiary that seek to prevent, enjoin or otherwise delay the Transactions.
    To the Knowledge of Harvest, no event has occurred or circumstances exist that may give rise or serve as a basis for any such
    Action.

 

	 	(b)	Except
    as set forth in Section 5.06(b) of the Harvest Disclosure Schedules, there are no outstanding Governmental Orders and no unsatisfied
    judgments, penalties or awards against or affecting Harvest or any Harvest Subsidiary or any of their properties or assets.

 

	5.07	Tax
    Matters

 

	 	(a)	Harvest
    and the Harvest Subsidiaries have duly and timely filed or caused to be filed (taking into account any valid extensions) all
    material Tax Returns required by Law to be filed by it and all such Tax Returns are true, correct and complete in all material
    respects provided that Harvest makes no representation with respect to the application of Section 280E of the Code. Harvest
    and its subsidiaries have timely and fully paid all material amounts of Taxes due and owing (whether or not shown on any Tax
    Return); provided that Harvest makes no representation regarding the possible adjustment to or recalculation of Taxes due
    and owing by the Company or the Subsidiaries for any period prior to the Closing Date from the application of Section 280E
    of the Code.

 

	 	(b)	For
    U.S. federal, state and where applicable, local income tax purposes, Harvest is treated as a U.S. corporation pursuant to
    the provisions of Section 7874 of the Code and any corresponding sections of state or local law. Harvest is not and has not
    been a U.S. real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period specified
    in Section 897(c) of the Code.

 

	 	(c)	Harvest
    and the Harvest Subsidiaries have withheld and paid each material Tax required to have been withheld and paid in connection
    with amounts paid or owing to any employee, independent contractor, creditor, customer, owner or other party, and complied
    with all material backup withholding and material information reporting provisions of applicable Law.

 

	 	(d)	There
    are no material liens for Taxes upon the assets of any of Harvest and the Harvest Subsidiaries other than for current Taxes
    not yet due and payable.

 

	 	(e)	No
    audit or other examination of any Tax Return of any of Harvest or any Harvest Subsidiary by any Governmental Authority is
    presently in progress, nor has any of Harvest or any Harvest Subsidiary been notified in writing of any request for such an
    audit or other examination.

 

    	 	-66-	 

     

    

 

	 	(f)	Harvest
    and Newco have not taken or omitted any action and to Harvest’s Knowledge, there is no fact, agreement, plan or other
    circumstance relating to the Harvest Exchange, Unit Exchange, Qualified Holdco Exchange or Qualified Pipeline Exchange that
    would be reasonably be expected to prevent or impede such transactions from qualifying for the Intended U.S. Tax Treatment.

 

Notwithstanding
anything to the contrary contained in this Agreement, no representations or warranties are made as to the amount or availability
in any Post-Closing Tax Period of any net operating losses, credits, adjusted tax basis or other tax attributes of Harvest and
its Subsidiaries as of the Effective Date.

 

	5.08	Public
    Filings

 

Harvest
is in compliance in all material respects with all its disclosure obligations under applicable Canadian Securities Laws. Harvest
has filed all material forms, reports, documents and information required to be filed by it under Canadian Securities Laws (the
“Harvest Disclosure Documents”). As of the time a Harvest Disclosure Document was filed (or, if amended or
superseded by a filing prior to the date of this Agreement, then on the date of such filing): (i) such Harvest Disclosure Document
complied in all material respects with the requirements of the applicable Canadian Securities Laws; and (ii) such Harvest Disclosure
Document did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

	5.09	Capitalization

 

	 	(a)	The
    authorized capital stock of Harvest consists of: (i) an unlimited number of Harvest Super Voting Shares; (ii) an unlimited
    number of Harvest Multiple Voting Shares; (iii) an unlimited number of Harvest Subordinate Voting Shares; and (iv) an unlimited
    number of Harvest preferred shares. Section 5.09 of the Harvest Disclosure Schedules sets forth the issued and outstanding
    capital stock of Harvest as of the date of this Agreement. All of the outstanding Harvest Shares are duly authorized, validly
    issued, fully paid, and non- assessable, and not subject to any pre-emptive rights. No Harvest Subsidiary owns any Harvest
    Shares. No former equity holder of Harvest has any claim or right against Harvest that remains unresolved or to which Harvest
    has or may have any Liability.

 

	 	(b)	All
    of the Harvest Shares were issued in compliance with applicable Laws. None of the Harvest Shares were issued in violation
    of any agreement, arrangement or commitment to which Harvest or any Harvest Subsidiary is a party or is subject to or in violation
    of any preemptive or similar rights of any Person.

 

	 	(c)	As
    of the date of this Agreement, there are no voting trusts, stockholder agreements, proxies or other agreements or understandings
    in effect with respect to the voting or transfer of any of the Harvest Shares to which Harvest is a party, except as set forth
    in Section 5.09(c) of the Harvest Disclosure Schedules.

 

	 	(d)	Section
    5.09(d) of the Harvest Disclosure Schedules sets forth all authorized, issued and outstanding options, warrants, convertible
    securities or other rights, agreements, arrangements or commitments, as well as all agreements or arrangements (other than
    this Agreement) obligating Harvest to issue or sell any shares of capital stock of, or any other interest in, Harvest as of
    the date of this Agreement.

 

    	 	-67-	 

     

    

 

	5.10	Harvest
    Subsidiaries

 

	 	(a)	Section
    5.10(a) of the Harvest Disclosure Schedules sets forth all subsidiaries of Harvest as of the date of this Agreement (each,
    a “Harvest Subsidiary”), listing each Harvest Subsidiary’s name, type of entity, jurisdiction and
    date of formation and the names and ownership percentages of each of the owners of its equity and the kind and percentage
    of the outstanding equity interests of each such Harvest Subsidiary owned by Harvest and each other Harvest Subsidiary as
    of the date of this Agreement,

 

	 	(b)	Each
    of the Harvest Subsidiaries is duly organized, validly existing and in good standing under the Laws of the jurisdiction of
    its formation. Each of the Harvest Subsidiaries has full power and authority to own, operate or lease the properties and assets
    now owned, operated or leased by it and to carry on its business as it has been and is currently conducted, except to the
    extent that any lack of power or authority would not result in a Material Adverse Effect. Each of the Harvest Subsidiaries
    is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or
    leased by it or the operation of the Harvest Subsidiaries’ business as currently conducted makes such licensing or qualification
    necessary.

 

	 	(c)	Except
    for the Harvest Subsidiaries, there are no other corporations, limited liability companies, partnerships, joint ventures or
    similar arrangements in which Harvest or any Harvest Subsidiary owns any direct or indirect equity ownership or other interest
    or right to acquire the same.

 

	 	(d)	Section
    5.10(d) of the Harvest Disclosure Schedules sets forth the percentage interests held by the owners of the outstanding issued
    share capital, shares or limited liability company or membership interests, other equity rights, interests or other securities
    of each Harvest Subsidiary, as of the date of this Agreement (the “Harvest Subsidiaries Equity Interests”).
    Except as set forth in Section 5.10(d) of the Harvest Disclosure Schedules, all of the Harvest Subsidiaries Equity Interests
    are duly and validly issued and outstanding and are legally and beneficially owned, directly or indirectly, by Harvest, free
    and clear of all Encumbrances, except for applicable transfer restrictions pursuant to applicable Laws or Encumbrances in
    the respective governing documents of the Harvest Subsidiaries. Each member of each Harvest Subsidiary was duly admitted as
    a member of such Harvest Subsidiary.

 

	 	(e)	As
    of the date of this Agreement, except as set forth in Section 5.10(e) of the Harvest Disclosure Schedules or pursuant to the
    respective governing documents of the Harvest Subsidiaries, there are no outstanding warrants, grants, options, rights, agreements,
    convertible or exchangeable securities or other commitments or obligations pursuant to which Harvest or any Harvest Subsidiary
    is or may become obligated to allot, issue, sell, transfer, purchase, return or redeem any shares or limited liability company
    or membership interests, other equity rights, interests or other securities of any Harvest Subsidiary. As of the date of this
    Agreement, except as set forth in Section 5.10(e) of the Harvest Disclosure Schedules, there is no outstanding or authorized
    appreciation, phantom interest or similar rights with respect to any Harvest Subsidiary. There are no voting trusts, proxies
    or other agreements or undertakings with respect to the voting of the issued share capital of any Harvest Subsidiary.

 

	 	(f)	No
    Harvest Subsidiary is the subject of any administration, administrative receivership, insolvency, bankruptcy, dissolution,
    liquidation, receivership, examinership, reorganization or similar proceeding and, to the Knowledge of Harvest, no actions
    have been taken for any Harvest Subsidiary to become the subject of any such proceeding.

 

    	 	-68-	 

     

    

 

	 	(g)	Harvest
    has made available to the Company true and complete copies of the governing documents of each Harvest Subsidiary as in effect
    as of the date of this Agreement.

 

	5.11	Financial
    Statements

 

Complete
copies of Harvest and the Harvest Subsidiaries’ combined audited financial statements consisting of the combined statements
of financial position of Harvest and the Harvest Subsidiaries as at September 30 in each of the years 2018 and 2017 and the related
combined statements of comprehensive loss, statements of cash flows and statements of changes in equity for the years then ended,
together with the notes thereto (the “Harvest Financial Statements”) have been delivered or made available
to the Company. The Harvest Financial Statements have been prepared in accordance with IFRS applied on a consistent basis throughout
the period involved. The Harvest Financial Statements are based on the books and records of Harvest and the Harvest Subsidiaries,
and fairly present in all material respects the financial condition of Harvest and the Harvest Subsidiaries as of the respective
dates they were prepared and the results of the operations of Harvest and the Harvest Subsidiaries for the periods indicated.
Harvest and the Harvest Subsidiaries maintain a standard system of accounting established and administered in accordance with
IFRS. Harvest has established and maintains disclosure controls and procedures and internal control over financial reporting to
the degree necessary to avoid any Harvest Material Adverse Effect that is caused by inaccuracy of such reporting.

 

	5.12	Undisclosed
    Liabilities

 

Harvest
and the Harvest Subsidiaries have no Liabilities, except (a) those which are adequately reflected or reserved against in the Harvest
Financial Statements, and (b) those which have been incurred in the ordinary course of business consistent with past practice
and which are not, individually or in the aggregate, material in amount.

 

	5.13	Absence
    of Certain Changes, Events and Conditions

 

As
at the date of this Agreement, except as set forth in Schedule 5.13 of the Harvest Disclosure Schedules or as provided for in
the Harvest Public Reports, and other than (i) in the ordinary course of business consistent with past practice, or (ii) as otherwise
contemplated by this Agreement, since September 30, 2018 there has not been, with respect to Harvest or any Harvest Subsidiary,
any:

 

	 	(a)	event,
    occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Harvest
    Material Adverse Effect;

 

	 	(b)	amendment
    of its charter, by-laws or other organizational documents;

 

	 	(c)	split,
    combination or reclassification of any shares of its capital stock;

 

	 	(d)	issuance,
    sale or other disposition of any of its capital stock, or grant of any options, warrants or other rights to purchase or obtain
    (including upon conversion, exchange or exercise) any of its capital stock;

 

	 	(e)	declaration
    or payment of any dividends or distributions on or in respect of any of its capital stock or redemption, purchase or acquisition
    of its capital stock;

 

    	 	-69-	 

     

    

 

	 	(f)	material
    change in any method of its accounting or accounting practice, except as required by IFRS or as disclosed in the notes to
    the Harvest Financial Statements; or

 

	 	(g)	material
    change in its cash management practices and its policies, practices and procedures with respect to collection of accounts
    receivable, establishment of reserves for uncollectible accounts, accrual of accounts receivable, inventory control, prepayment
    of expenses, payment of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer
    deposits.

 

	 	(h)	incurrence,
    assumption or guarantee of any indebtedness for borrowed money, except unsecured current obligations and Liabilities incurred
    in the ordinary course of business consistent with past practice;

 

	 	(i)	transfer,
    assignment, sale or other disposition of any of the assets shown or reflected in the Harvest Financial Statements or cancellation
    of any debts or entitlements;

 

	 	(j)	transfer,
    assignment or grant of any license or sublicense of any material rights under or with respect to any Harvest Intellectual
    Property;

 

	 	(k)	material
    damage, destruction or loss (whether or not covered by insurance) to its property;

 

	 	(l)	any
    capital investment in, or any loan to, any other Person;

 

	 	(m)	acceleration,
    termination, material modification to or cancellation of any Material Contract to which it is a party or by which it is bound;

 

	 	(n)	any
    material capital expenditures;

 

	 	(o)	imposition
    of any Encumbrance upon any of Harvest or any Harvest Subsidiary or any of their material properties, or assets, whether tangible
    or intangible;

 

	 	(p)	(i)
    grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation
    or benefits in respect of its current or former employees, officers, directors, independent contractors or consultants, other
    than as provided for in any written agreements or required by applicable Law or (ii) action to accelerate the vesting or payment
    of any compensation or benefit for any current or former employee, officer, director, independent contractor or consultant;

 

	 	(q)	adoption,
    modification or termination of any (i) employment, severance, retention or other agreement with any current executive officer
    or director, except as set forth in Section 5.13(q) of the Harvest Disclosure Schedules, (ii) benefit plan, or (iii) collective
    bargaining or other agreement with a Union, in each case whether written or oral;

 

	 	(r)	any
    loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders or current or former
    directors, officers and employees;

 

	 	(s)	acquisition
    by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner,
    any business or any Person or any division thereof; or

 

    	 	-70-	 

     

    

 

	 	(t)	action
    by it to make, revoke or change any election in respect of Taxes, adopt or change any accounting method in respect of Taxes,
    enter into any Tax sharing, allocation, indemnification or similar agreement, enter into any closing agreement with any taxing
    authority, settle any material claim or assessment in respect of Taxes, consent to any extension or waiver of the limitation
    period applicable to any claim or assessment in respect of Taxes, apply for or pursue any Tax ruling, change any Tax identification
    number, execute any powers of attorney in respect of any Tax matter, file any amended Tax Return, or, take any action, omit
    to take any action or enter into any other transaction that would have the effect of increasing the Tax liability or reducing
    any Tax asset of ParentCo in respect of any Post-Closing Tax Period.

 

	5.14	Inventory

 

All
inventory of Harvest and the Harvest Subsidiaries, whether or not reflected in the Harvest Financial Statements, consists of a
quality and quantity usable and salable in the ordinary course of business consistent with past practice except for obsolete,
damaged, defective or slow-moving items that have been written off or down to fair market value and for which adequate reserves
have been established. All such inventory is owned by Harvest and the Harvest Subsidiaries free and clear of all Encumbrances,
and no inventory is held on a consignment basis. As of the Closing, Harvest and the Harvest Subsidiaries will have a level of
inventory consistent with past practice.

 

	5.15	Accounts
    Receivable

 

The
trade accounts receivable of Harvest (a) have arisen from bona fide transactions entered into by Harvest and the Harvest Subsidiaries
involving the sale of goods or the rendering of services in the ordinary course of business consistent with past practice, and
(b) constitute only valid, undisputed claims of Harvest and the Harvest Subsidiaries not subject to claims of set-off or other
defenses or counterclaims other than normal cash discounts accrued in the ordinary course of business consistent with past practice
or as reserved for in the Harvest Financial Statements.

 

	5.16	Insurance

 

Section
5.16 of the Harvest Disclosure Schedules sets forth a true and complete list of all current policies or binders of fire, liability,
product liability, umbrella liability, real and personal property, workers’ compensation, vehicular, directors’ and
officers’ liability, fiduciary liability and other casualty and property insurance maintained by Harvest or its Affiliates
(including the Harvest Subsidiaries) (collectively, the “Harvest Insurance Policies”) and true and complete
copies of such Harvest Insurance Policies have been made available to the Company. Such Harvest Insurance Policies are in full
force and effect and shall remain in full force and effect following the consummation of the Transaction. All premiums due on
such Harvest Insurance Policies have either been paid or, if due and payable prior to Closing, will be paid prior to Closing in
accordance with the payment terms of each Harvest Insurance Policy. To the Knowledge of Harvest, there are no circumstances which
would reasonably be expected to lead to the insurers avoiding any material liability under any of the Harvest Insurance Policies.
Except as would not result in a Harvest Material Adverse Effect, (a) the applicable insured parties have complied with the provisions
of the applicable Harvest Insurance Policies, and (b) Harvest has not received any written notice regarding (i) the cancellation
or invalidation of any Harvest Insurance Policy or (ii) any refusal of coverage under or any rejection of any material claim under
any Harvest Insurance Policy. This Section 5.16 shall not apply to insurance provided with respect to any employee benefit plan
or arrangement.

 

    	 	-71-	 

     

    

 

	5.17	Compliance
    With Laws; Permits

 

	 	(a)	Except
    as set forth in Section 5.17(a) of the Harvest Disclosure Schedules or with respect to the illegality of cannabis under United
    States federal law or as otherwise disclosed with respect to the Environmental Laws which are covered in Section 5.18, Harvest
    and each of the Harvest Subsidiaries has complied, and is now complying in all material respects, with all Laws applicable
    to it or its properties, assets or the Harvest Business, and neither Harvest nor any Harvest Subsidiary has received any written
    notice of any material inquiry, investigation, violation or alleged violation of any applicable Law or Governmental Order.

 

	 	(b)	(i)
    Except as set forth in Section 5.17(b) of the Harvest Disclosure Schedules, all Harvest Cannabis Permits and all other material
    Permits required for each of Harvest and the Harvest Subsidiaries to conduct their business, including without limitation
    the Harvest Cannabis Permits and other materials Permits required for Harvest and the Harvest Subsidiaries to conduct the
    Harvest Business, have been obtained by it or by its Affiliates and are valid and in full force and effect in accordance with
    its terms, and each of Harvest and the Harvest Subsidiaries has timely executed the relevant requirements for the renewal
    of such Harvest Cannabis Permits or other material Permits, whenever needed, except to the extent that any failure to obtain,
    maintain or renew such Permit would not result in a Harvest Material Adverse Effect, and (ii) no written notice of revocation,
    cancellation or termination of any Harvest Cannabis Permit or other material Permit has been received by Harvest and the Harvest
    Subsidiaries, or any of them. All fees and charges with respect to such Harvest Cannabis Permits and other material Permits
    as of the date hereof have been paid in full. Section 5.17(b) of the Harvest Disclosure Schedules lists all current Harvest
    Cannabis Permits and all other material Permits issued to Harvest and the Harvest Subsidiaries, including the names of the
    Permits and their respective dates of issuance and expiration. Except as set forth in Section 5.17(b) of the Harvest Disclosure
    Schedules or as a result of a change in Law, no event has occurred that, with or without notice or lapse of time or both (including
    after the Closing), which would reasonably be expected to result in the revocation, suspension, lapse or limitation of any
    Harvest Cannabis Permit or other material Permit.

 

	5.18	Environmental
    Matters

 

	 	(a)	Harvest
    and the Harvest Subsidiaries are currently and have been in compliance in all material respects with all Environmental Laws
    and have not, received from any Person any: (i) Environmental Notice or Environmental Claim; or (ii) written request for information
    pursuant to Environmental Law, which, in each case, either remains pending or unresolved, or is the source of ongoing obligations
    or requirements as of the Closing Date. To Harvest’s Knowledge, Harvest and the Harvest Subsidiaries are not under investigation
    or inquiry by any Governmental Authority in relation to any breach of Environmental Law or the failure to comply with the
    terms and conditions of any Authorization required by Environmental Law.

 

	 	(b)	No
    real property currently or formerly owned, operated or leased by a Harvest or any Harvest Subsidiary is listed on, or has
    been proposed for listing on, the National Priorities List (or the Superfund Enterprise Management System) under CERCLA, or
    any similar state list.

 

	 	(c)	There
    has been no Release of Hazardous Materials in contravention of Environmental Law by Harvest or any Harvest Subsidiary with
    respect to the business or assets of Harvest or any Harvest Subsidiary or any real property currently owned, operated, or
    leased, or formerly owned by Harvest or any Harvest Subsidiary, and neither Harvest nor any Harvest Subsidiary has received
    an Environmental Notice that any real property currently owned, operated, or leased, or formerly owned is contaminated with
    any Hazardous Material which could reasonably be expected to result in either a material Environmental Claim against, or a
    material violation of Environmental Law by, Harvest or any Harvest Subsidiary.

 

    	 	-72-	 

     

    

 

	5.19	Title
    to Assets; Real Property

 

	 	(a)	Except
    as set forth in Section 5.19(a) of the Harvest Disclosure Schedules, Harvest and the Harvest Subsidiaries has good and marketable
    title to, or a valid leasehold interest in, all Harvest Real Property and personal property and other assets reflected in
    the Harvest Financial Statements, other than properties and assets sold or otherwise disposed of in the ordinary course of
    business consistent with past practice. All such properties and assets (including Harvest Real Property) are free and clear
    of Encumbrances except for Permitted Encumbrances.

 

	 	(b)	Except
    as set forth in Section 5.19(b) of the Harvest Disclosure Schedules, with respect to each Harvest Real Property: (i) the current
    use of such Harvest Real Property and the operation of the business of Harvest or the Harvest Subsidiaries thereon does not
    violate any instrument of record or Contract affecting such Harvest Real Property, or any applicable Law in any material respect
    (without any fines or monetary Liabilities attached); (ii) there are no leases, subleases, licenses, concessions or other
    Contracts, written or oral, granting to any Person the right of use or occupancy of any portion of such Harvest Real Property
    except in favor of Harvest or the Harvest Subsidiaries; and (iii) there are no Persons in possession of such Harvest Real
    Property except Harvest or the Harvest Subsidiaries.

 

	 	(c)	To
    the extent required to conducts its business on the date hereof, Harvest or the applicable Harvest Subsidiary has all certificates
    of occupancy and Permits necessary for the current use and operation of each Harvest Real Property. Such Permits have been
    validly issued by the appropriate Governmental Authority in compliance with all applicable Laws, and Harvest or the applicable
    Harvest Subsidiary has fully complied with all conditions of the Permits applicable to it. All such Permits are in full force
    and effect in all material respects without further consent or approval of any Person.

 

	 	(d)	There
    does not exist any actual or, to the Knowledge of Harvest, threatened or contemplated, condemnation or eminent domain proceedings
    that affect any Harvest Real Property or any part thereof, and none of Harvest or any of the Harvest Subsidiaries has received
    any notice, oral or written, of the intention of any Governmental Authority or other Person to take or use any Harvest Real
    Property or any part thereof.

 

	5.20	Intellectual
    Property

 

	 	(a)	Harvest
    or a Harvest Subsidiary is the sole and exclusive legal and beneficial, and with respect to all Harvest IP Registrations,
    record, owner of all right, title and interest in and to the Harvest Intellectual Property, and has the valid right to use
    all other Intellectual Property used in or necessary for the conduct of Harvest’s current business or operations, in
    each case, free and clear of Encumbrances other than Permitted Encumbrances. Section 5.20(a) of the Harvest Disclosure Schedules
    contains a true and accurate list of all Harvest IP Registrations.

 

    	 	-73-	 

     

    

 

	 	(b)	Harvest’s
    or the Harvest Subsidiaries’ rights in the Harvest Intellectual Property are valid, subsisting and enforceable. To Harvest’s
    Knowledge, Harvest or the Harvest Subsidiaries have taken all reasonable steps to maintain the Harvest Intellectual Property
    and to protect and preserve the confidentiality of all trade secrets included in the Harvest Intellectual Property, including
    requiring all Persons having access thereto to execute written non- disclosure agreements.

 

	 	(c)	The
    conduct of the Harvest Business as currently and formerly conducted, and the products, processes and services of Harvest or
    the Harvest Subsidiaries, do not infringe, misappropriate, or otherwise violate the Intellectual Property or other rights
    of any Person. To Harvest’s Knowledge, no Person is currently infringing, misappropriating, diluting or otherwise violating,
    any Harvest Intellectual Property.

 

	 	(d)	Except
    as set forth in Section 5.20(d) of the Harvest Disclosure Schedules, there are no Actions (including any oppositions, interferences
    or re-examinations) settled, pending or to Harvest’s Knowledge, threatened: (i) alleging any infringement, misappropriation,
    dilution or violation of the Intellectual Property of any Person by Harvest or the Harvest Subsidiaries; or (ii) challenging
    the validity, enforceability, registrability or ownership of any Harvest Intellectual Property or Harvest’s or the Harvest
    Subsidiaries’ rights with respect to any Harvest Intellectual Property. To Harvest’s Knowledge, neither Harvest
    or any of the Harvest Subsidiaries are subject to any outstanding or prospective Governmental Order (including any motion
    or petition therefor) that does or would restrict or impair the use of any Harvest Intellectual Property.

 

	5.21	Related
    Party Transactions

 

Except
(a) for the Harvest benefit plans and employment relationships entered into and compensation paid in the ordinary course of business,
or (b) as listed in Section 5.21 of the Harvest Disclosure Schedules, as of the date of this Agreement, none of Harvest, or any
officer or director of any of Harvest or any Harvest Subsidiary (i) has any direct or indirect ownership interest in, or is an
officer, director, employee of, consultant to, or contractor for, any Person that does business with, or has any contractual arrangement
with, any of Harvest or the Harvest Subsidiaries (except with respect to any interest in less than 5% of the shares of any corporation
whose shares are publicly traded and with respect to intercompany arrangements between any of Harvest or the Harvest Subsidiaries)
or (ii) is a party to an agreement with any of Harvest or the Harvest Subsidiaries.

 

	5.22	Books
    and Records

 

The
corporate records and minute books of Harvest and the Harvest Subsidiaries have been maintained in material compliance with all
applicable Laws, and the minute books of Harvest and the Harvest Subsidiaries as provided to the Company are complete and accurate
in all material respects. The corporate minute books for Harvest and the Harvest Subsidiaries contain minutes of all meetings
and resolutions of the directors and securityholders held.

 

	5.23	Anti-Money
    Laundering

 

The
operations of Harvest and the Harvest Subsidiaries are and have been conducted, at all times, in material compliance with all
applicable financial recordkeeping and reporting requirements of applicable anti- money laundering Laws of the jurisdictions in
which Harvest conducts business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any Governmental Authority (collectively, the “Harvest Anti-Money Laundering Laws”),
and no Action by or before any Governmental Authority against Harvest with respect to the Harvest Anti-Money Laundering Laws is
pending. None of Harvest nor any Harvest Subsidiary has, directly or indirectly: (A) made or authorized any contribution, payment
or gift of funds or property to any official, employee or agent of any governmental agency, authority or instrumentality of any
jurisdiction in violation of applicable Law; or (B) made any contribution to any candidate for public office, in either case where
either the payment or the purpose of such contribution, payment or gift was, is or would be prohibited under the Canada Corruption
of Foreign Public Officials Act (Canada) or the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada)
or the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (United
States) or the rules and regulations promulgated thereunder or under any other Law of any relevant jurisdiction covering a similar
subject matter applicable to Harvest, the Harvest Subsidiaries and their operations. None of Harvest, the Harvest Subsidiaries,
or, to the Knowledge of Harvest, any director, officer, agent, employee, affiliate or Person acting on behalf of the Harvest or
a Harvest Subsidiary has been or is currently subject to any United States sanctions administered by the Office of Foreign Assets
Control of the United States Treasury Department.

 

    	 	-74-	 

     

    

 

	5.24	Corrupt
    Practices Legislation

 

None
of Harvest, any of its Affiliates (including the Harvest Subsidiaries), nor any of their respective officers, directors or employees
acting on behalf of Harvest (including the Harvest Subsidiaries) has violated the United States’ Foreign Corrupt Practices
Act (and the regulations promulgated thereunder), the Corruption of Foreign Public Officials Act (Canada) (and the
regulations promulgated thereunder) or any similar Law, and to the Knowledge of Harvest, no such action has been taken by any
of its agents, representatives or other Persons acting on behalf of Harvest or the Harvest Subsidiaries. Harvest and the Harvest
Subsidiaries have instituted and maintained policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith.

 

ARTICLE
6

REPRESENTATIONS
AND WARRANTIES OF PARENTCO

 

ParentCo
represents and warrants to Harvest, the Company and Newco that the statements contained in this Article 6 are true and correct
as of the date hereof and will be true and correct as of the Closing Date immediately prior to the Closing.

 

	6.01	Organization
    and Authority of ParentCo

 

ParentCo
is a corporation duly incorporated, validly existing and in good standing under the Laws of British Columbia, and has all necessary
power and authority to conduct its business in manner in which it is currently being conducted. ParentCo has the full power and
authority to enter into this Agreement and to fulfill its obligations in connection with the consummation of the Transactions.
The execution and delivery by ParentCo of this Agreement and the Transaction Documents to which it is a party, the performance
by it of its obligations hereunder and thereunder and the consummation by it of the Transactions contemplated hereby and thereby
have been duly authorized by all requisite corporate action of ParentCo. This Agreement has been, and upon their execution and
delivery the Transaction Documents to which ParentCo is or shall become a party shall have been, duly executed and delivered by
ParentCo, and (assuming due authorization, execution and delivery by each other Party hereto of this Agreement and the applicable
Transaction Documents) this Agreement constitutes, and upon their execution the Transaction Documents shall constitute, a legal,
valid and binding obligation of ParentCo enforceable against ParentCo in accordance with the terms hereof and thereof, in each
case, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting
creditors’ right and remedies.

 

    	 	-75-	 

     

    

 

	6.02	Business
    of ParentCo

 

	 	(a)	ParentCo
    does not, and prior to the Closing Date will not, directly or indirectly:

 

	 	(i)	engage
    in any business activities, except (A) the incorporation, organization and capitalization of ParentCo, (B) the authorization
    and execution of this Agreement and any Transaction Documents, (C) applying for and obtaining the Interim Order and Final
    Order, (D) applying for and obtaining any regulatory approvals (including in connection with the listing of ParentCo Shares
    on the CSE) contemplated by this Agreement and any Transaction Documents, (E) administrative activities reasonably necessary
    or desirable in order to permit ParentCo to fulfill its obligations under this Agreement and any Transaction Documents, and
    (F) activities ancillary to the foregoing (such activities in clauses(A) to (F) collectively, the “ParentCo Permitted
    Activities”); 

 

	 	(ii)	own,
    lease, license or have any rights with respect to any assets (tangible or intangible) or properties, including securities
    of any other corporation or entity, and no asset of ParentCo is subject to any Encumbrance; or

 

	 	(iii)	employ
    any employees, or maintain, contribute or sponsor any benefit plans, programs, policies, agreements or arrangements that if
    sponsored, maintained or contributed to would constitute an employee benefit plan.

 

	 	(b)	Except
    for Liabilities incurred in connection with the ParentCo Permitted Activities, ParentCo has not incurred any Liabilities.

 

	 	(c)	ParentCo
    is duly qualified or otherwise authorized to do business in each of the jurisdictions in which it is required to be so qualified
    or otherwise authorized. ParentCo is not the subject of any administration, administrative receivership, insolvency, dissolution,
    liquidation, receivership, reorganization or similar proceeding and no steps have been taken for ParentCo to become the subject
    of any such proceeding.

 

	6.03	Capitalization
    of ParentCo

 

	 	(a)	As
    of the date hereof:

 

	 	(i)	the
    authorized capital stock of ParentCo consists of an unlimited number of ParentCo Common Shares; and

 

	 	(ii)	the
    issued and outstanding ParentCo Shares consist of one hundred ParentCo Common Shares (the “Initial ParentCo Shares”)
    issued to the Initial ParentCo Shareholder.

 

	 	(b)	On
    the Closing Date, immediately prior to the Effective Time:

 

	 	(i)	the
    authorized capital stock of ParentCo will consist of an unlimited number of ParentCo Common Shares, an unlimited number of
    ParentCo Subordinate Voting Shares, an unlimited number of ParentCo Multiple Voting Shares and an unlimited number of ParentCo
    Super Voting Shares; and

 

    	 	-76-	 

     

    

 

	 	(ii)	the
    issued and outstanding ParentCo Shares will consist solely of: (A) the Initial ParentCo Shares, and (B) ParentCo Subordinate
    Voting Shares and/or ParentCo Multiple Voting Shares issued pursuant to the Unit Exchange, the Qualified Holdco Exchange and
    the Qualified Pipeline Exchange.

 

	 	(c)	Except
    as otherwise contemplated by this Agreement (including the Unit Exchange, the Qualified Holdco Exchange, the Qualified Pipeline
    Exchange, and the Plan of Arrangement), there are no options, warrants, convertible securities or other rights, agreements,
    arrangements or commitments obligating ParentCo to issue or sell any shares of capital stock of, or any other interest in,
    ParentCo.

 

	6.04	ParentCo
    Shareholder Approval

 

In
connection with the ParentCo Meeting, ParentCo shall, in accordance with the terms and conditions of the ParentCo Circular, assist
the Company in soliciting proxies from Company Unit Holders in which they agree to vote in favor of all actions necessary to consummate
the Transactions, including but not limited to, approval of the ParentCo Arrangement Resolution and the ParentCo Equity Incentive
Plan Resolution.

 

	6.05	Issuance
    of ParentCo Shares

 

	 	(a)	The
    Unit Exchange Shares to be issued pursuant to the Unit Exchange will, upon issuance, be duly and validly issued, fully paid,
    and non-assessable, and will be free of any Encumbrances or restrictions on transfer.

 

	 	(b)	The
    Qualified Holdco Exchange Shares to be issued pursuant to the Qualified Holdco Exchange will, upon issuance, be duly and validly
    issued, fully paid, and non-assessable, and will be free of any Encumbrances or restrictions on transfer.

 

	 	(c)	The
    Arrangement Consideration Shares to be issued pursuant to the Arrangement will, upon issuance, be duly and validly issued,
    fully paid, and non-assessable, and will be free of any Encumbrances or restrictions on transfer, other than as set forth
    in the Lock-Up Agreements.

 

	6.06	Organization,
    Authorization and Capitalization of Merger Sub

 

As
of the Closing Date, immediately prior to the effective time of the Company U.S. Merger:

 

	 	(a)	Merger
    Sub will be a limited liability company duly formed, validly existing and in good standing under the Laws of the State of
    Delaware;

 

	 	(b)	Merger
    Sub will have all necessary power and authority to conduct its business in manner in which it is then being conducted;

 

	 	(c)	Merger
    Sub will have the full power and authority to enter into the U.S. Merger Agreement and to fulfill its obligations thereunder
    and in connection with the consummation of the Transactions;

 

	 	(d)	the
    execution and delivery by Merger Sub of the U.S. Merger Agreement and the Transaction Documents to which it is a party, the
    performance by it of its obligations thereunder and the consummation by it of the Transactions contemplated hereby and thereby
    will have been duly authorized by all requisite corporate action of Merger Sub;

 

    	 	-77-	 

     

    

 

	 	(e)	the
    U.S. Merger Agreement and Transaction Documents to which Merger Sub shall become a party shall have been, duly executed and
    delivered by Merger Sub, and (assuming due authorization, execution and delivery by each other party to the U.S. Merger Agreement
    and the applicable Transaction Documents) the U.S. Merger Agreement and such Transaction Documents shall constitute, a legal,
    valid and binding obligation of Merger Sub enforceable against Merger Sub in accordance with the terms thereof, in each case,
    subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting
    creditors’ right and remedies;

 

	 	(f)	the
    member interests of Merger Sub will consist of membership units (the “Merger Sub Units”), all of which
    issued Merger Sub Units will be held solely by ParentCo; and

 

	 	(g)	except
    as otherwise contemplated by this Agreement, there will be no options, warrants, convertible securities or other rights, agreements,
    arrangements or commitments obligating Merger Sub to issue or sell any Merger Sub Units or any other interest in Merger Sub.

 

ARTICLE
7 

REPRESENTATIONS
AND WARRANTIES OF NEWCO

 

Newco
represents and warrants to Harvest, the Company and ParentCo that the statements contained in this Article 7 are true and correct
as of the date hereof and will be true and correct as of the Closing Date.

 

	7.01	Organization
    and Authorization of Newco

 

	 	(a)	Newco
    is a corporation duly incorporated, validly existing and in good standing under the Laws of British Columbia, and has all
    necessary power and authority to conduct its business in manner in which it is currently being conducted. Newco has the full
    power and authority to enter into this Agreement and to fulfill its obligations in connection with the consummation of the
    Transactions. The execution and delivery by Newco of this Agreement and the Transaction Documents to which it is a party,
    the performance by it of its obligations hereunder and thereunder and the consummation by it of the Transactions contemplated
    hereby and thereby have been duly authorized by all requisite corporate action of Newco. This Agreement has been, and upon
    their execution and delivery the Transaction Documents to which Newco is or shall become a party shall have been, duly executed
    and delivered by Newco, and (assuming due authorization, execution and delivery by each other Party hereto of this Agreement
    and the applicable Transaction Documents) this Agreement constitutes, and upon their execution the Transaction Documents shall
    constitute, a legal, valid and binding obligation of Newco enforceable against Newco in accordance with the terms hereof and
    thereof, in each case, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
    similar Laws affecting creditors’ right and remedies.

 

	7.02	Business
    of Newco

 

	 	(a)	Newco
    does not, and prior to the Closing Date will not, directly or indirectly:

 

	 	(i)	engage
    in any business activities, except (A) the incorporation, organization and capitalization of Newco, (B) the authorization
    and execution of this Agreement and any Transaction Documents, (C) applying for and obtaining the Interim Order, Final Order
    and any regulatory approvals contemplated by this Agreement and any Transaction Documents, and (D) administrative activities
    reasonably necessary or desirable in order to permit Newco to fulfill its obligations under this Agreement, the Plan of Arrangement
    and any Transaction Documents, and (E) activities ancillary to the foregoing (such activities in clauses (A) to (E) collectively,
    the “Newco Permitted Activities”);

 

    	 	-78-	 

     

    

 

	 	(ii)	own,
    lease, license or have any rights with respect to any assets (tangible or intangible) or properties, including securities
    of any other corporation or entity, and no asset of Newco is subject to any Encumbrance; or

 

	 	(iii)	employ
    any employees, or maintain, contribute or sponsor any benefit plans, programs, policies, agreements or arrangements that if
    sponsored, maintained or contributed to would constitute an employee benefit plan.

 

	 	(b)	Except
    for Liabilities incurred in connection with the Newco Permitted Activities, Newco has not incurred any Liabilities.

 

	 	(c)	Newco
    is duly qualified or otherwise authorized to do business in each of the jurisdictions in which it is required to be so qualified
    or otherwise authorized. Newco is not the subject of any administration, administrative receivership, insolvency, dissolution,
    liquidation, receivership, reorganization or similar proceeding and no steps have been taken for Newco to become the subject
    of any such proceeding.

 

	7.03	Capitalization
    of Newco

 

	 	(a)	The
    authorized capital stock of Newco consists of a unlimited number of common shares (each, a “Newco Share”).

 

	 	(b)	The
    issued and outstanding Newco Shares consists of one Newco Share issued to the Newco Shareholder.

 

	 	(c)	Except
    as otherwise contemplated by this Agreement (including the Plan of Arrangement), there are no options, warrants, convertible
    securities or other rights, agreements, arrangements or commitments obligating Newco to issue or sell any shares of capital
    stock of, or any other interest in, Newco.

 

ARTICLE
8

COVENANTS
AND OTHER AGREEMENTS

 

	8.01	Conduct
    of the Company Business Prior to the Closing

 

	 	(a)	From
    the date hereof until the Closing, except (i) as otherwise provided in this Agreement, including the consummation of the Transactions,
    (ii) as required by applicable Law (including, but not limited to, the HSR Act) or Contract, (iii) as consented to in writing
    by Harvest (which consent shall not be unreasonably withheld, conditioned or delayed), (iv) as contemplated under this Agreement,
    or (v) to the extent that such action or inaction would not be reasonably likely to cause a Company Material Adverse Effect,
    the Company shall, and shall cause the Company Subsidiaries to, (x) conduct the Company Business in the ordinary course consistent
    with past practice; and (y) use commercially reasonable efforts to maintain and preserve intact the current organization,
    business and franchise of any of the Companies and to preserve the rights, franchises, goodwill and relationships of its employees,
    customers, lenders, suppliers, regulators and others having business relationships with the Companies. Without limiting the
    foregoing, from the date hereof until the Closing the Companies shall not:

 

	 	(i)	take
    any action which, to the Company’s Knowledge, may reasonably be expected to adversely affect the good standing of any
    Permit, except as a result of the completion by Harvest of any acquisition of one or more Permits and its failure or inability
    to divest, transfer, or otherwise dispose of such Permit prior to the Closing Date;

 

    	 	-79-	 

     

    

 

	 	(ii)	except
    as set forth in Section 8.01(a)(ii) of the Company Disclosure Schedules, issue, sell or deliver any units or shares of their
    capital stock or membership units or issue or sell any securities convertible into, or options with respect to, or warrants
    to purchase or rights to subscribe for, any units or shares of their capital stock or membership units, other than as contemplated
    in connection with the completion of the Pipeline Binding Acquisitions and Pipeline Contingent Acquisitions that have been
    approved pursuant to Section 8.24;

 

	 	(iii)	effect
    any recapitalization, reclassification, stock dividend, stock split or like change in their capitalization;

 

	 	(iv)	amend
    or otherwise modify in any respect its organizational documents;

 

	 	(v)	make
    any redemption or purchase of any shares or units of any of the Companies;

 

	 	(vi)	enter
    into any Tax sharing, allocation, indemnification or similar agreement, enter into any closing agreement with any taxing authority,
    settle any material claim or assessment in respect of Taxes, consent to any extension or waiver of the limitation period applicable
    to any material claim or assessment in respect of Taxes, apply for or pursue any Tax ruling, change any tax identification
    number, execute any powers of attorney in respect of any Tax matter, forgo any Tax refund claim;

 

	 	(vii)	make
    any amended material Tax Return except as required by applicable Tax law;

 

	 	(viii)	make
    any change to its methods of accounting (except as required by a change in IFRS accounting standards);

 

	 	(ix)	make
    any increase in the compensation or benefits of any employees except as set forth in Section 8.01(a)(ix)or 8.16(b)of the Company
    Disclosure Schedules;

 

	 	(x)	take
    any action that may reasonably be expected to prevent the Unit Exchange and the Arrangement from qualifying for the Intended
    U.S. Tax Treatment;

 

	 	(xi)	incur
    any material indebtedness in excess of $[***] other than ordinary course borrowings under existing lines of credit
    or equipment leases;

 

	 	(xii)	acquire
    or dispose of any material assets in excess of $[***] unless contemplated in connection with the completion of the
    Pipeline Binding Acquisitions and Pipeline Contingent Acquisitions that have been approved pursuant to Section 8.24 or as
    a result of the completion by Harvest of any acquisition of one or more Permits and its failure or inability to divest, transfer,
    or otherwise dispose of such Permit prior to the Closing Date;

 

    	 	-80-	 

     

    

 

	 	(xiii)	make
    any pledge of material assets or permit any material assets to become subject to any Encumbrances, other than as contemplated
    in connection with the completion of the Pipeline Binding Acquisitions and Pipeline Contingent Acquisitions that have been
    approved pursuant to Section 8.24, or as a result of the completion by Harvest of any acquisition of one or more Permits and
    its failure or inability to divest, transfer, or otherwise dispose of such Permit prior to the Closing Date;

 

	 	(xiv)	make
    or agree to any capital expenditures in excess of $[***] unless contemplated in connection with the completion of the
    Pipeline Binding Acquisitions and Pipeline Contingent Acquisitions that have been approved pursuant to Section 8.24;

 

	 	(xv)	amend
    or terminate any Material Contract (other than as a result of expiration of its term) or enter into any agreement which would
    be a Material Contract if in existence prior to the date of this Agreement or as a result of any act taken by Harvest;

 

	 	(xvi)	adopt
    a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization any of the
    Companies, except in connection with the completion of the Pipeline Binding Acquisitions and Pipeline Contingent Acquisitions
    that have been approved pursuant to Section 8.24;

 

	 	(xvii)	become
    delinquent on any debts, Taxes and other material obligations;

 

	 	(xviii)	take
    any action that would cause any of the changes, events or conditions described in Section 4.08 to occur; or

 

	 	(xix)	authorize
    any of, or commit or agree to take any of, the foregoing actions.

 

	 	(b)	Subject
    to applicable Laws, from the date of this Agreement, the Company may complete the Pipeline Binding Acquisitions and Pipeline
    Contingent Acquisitions that have been approved pursuant to Section 8.24.

 

	 	(c)	Notwithstanding
    any provision in this Section 8.01, nothing herein shall prevent the Company from (i) making expenditures incurred in the
    ordinary course of business, or (ii) making expenditures reasonably necessary to maintain any Company Cannabis Permits; or
    to continue to carry on its expansion and build-out plans, in particular with reference to the Company’s assets in New
    Jersey, Nevada, Ohio, Massachusetts, Illinois, Maryland and Arkansas.

 

	 	(d)	Notwithstanding
    anything contained in this Section 8.01, in the event Harvest publicly discloses its intent to acquire or manage, or completes
    the acquisition of or enters into a management relationship with, one or more Permit or Permit-holding Persons, which action
    the Company reasonably believes could, without further action by the Company, Harvest or an Affiliate of Harvest, adversely
    affect the good standing of any Company Cannabis Permit, upon mutual agreement of the Parties acting reasonably, the Company
    shall be permitted, but shall not be obligated to, obtain a Transfer Consent; enter into a Commercial Arrangement; and/or
    sell, divest, or otherwise dispose of such Company Cannabis Permit as set forth in Sections 8.03 and 8.04.

 

    	 	-81-	 

     

    

 

	8.02	Conduct
    of Harvest Business Prior to the Closing

 

	 	(a)	From
    the date hereof until the Closing, except as (i) otherwise provided in this Agreement, including the consummation of the Transactions,
    (ii) as required by applicable Law (including, but not limited to, the HSR Act) or Contract, (iii) consented to in writing
    by the Company (which consent shall not be unreasonably withheld, conditioned or delayed), (iv) as contemplated under this
    Agreement, (v) to the extent that such action or inaction would not be reasonably likely to cause a Harvest Material Adverse
    Effect, Harvest shall, and shall cause the Harvest Subsidiaries to, (x) conduct the Harvest Business in the ordinary course
    consistent with past practice; and (y) use commercially reasonable efforts to maintain and preserve intact the current organization,
    business and franchise of any of the Harvest Companies and to preserve the rights, franchises, goodwill and relationships
    of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Harvest Companies.
    Without limiting the foregoing, from the date hereof until the Closing the Harvest Companies shall not:

 

	 	(i)	take
    any action which, to Harvest’s Knowledge, may reasonably be expected to adversely affect the good standing of any Permit;

 

	 	(ii)	make
    any change to its methods of accounting (except as required by a change in IFRS accounting standards);

 

	 	(iii)	take
    any action that may reasonably be expected to prevent the Unit Exchange and the Arrangement from qualifying for the Intended
    U.S. Tax Treatment;

 

	 	(iv)	adopt
    a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization of Harvest;

 

	 	(v)	become
    delinquent on any material debts, material Taxes and other material obligations; or

 

	 	(vi)	authorize
    any of, or commit or agree to take any of, the foregoing actions.

 

	8.03	Transfer
    of Business Permits

 

	 	(a)	With
    respect to the Company Cannabis Permits set forth in Section 8.03(a) of the Company Disclosure Schedules (individually, a
    “Key License” and collectively, the “Key Licenses”), as soon as practicable after the
    date of this Agreement and prior to the Closing Date, the Company, ParentCo and Harvest shall cooperate and use commercially
    reasonable efforts to: (i) obtain the approval, consent or written confirmation of non- objection (a “Transfer Consent”)
    from the applicable Governmental Authorities (to the extent a Transfer Consent is required under applicable Law) to the transfer
    to Resulting Issuer or an Affiliate of Resulting Issuer of all the Key Licenses and/or to the change in ownership or change
    of control of a Subsidiary or Affiliate of the Company holding such Key License as a result of the Transactions, as appropriate;
    or (ii) if the Parties determine, acting reasonably, that a Transfer Consent for any Key License is either infeasible or impractical
    to obtain prior to the Closing Date, then Harvest or an Affiliate of Harvest shall enter into a Commercial Arrangement (as
    hereinafter defined) with the Companies that hold such Key Licenses; or (iii) if neither a Transfer Consent has been obtained
    nor a Commercial Arrangement has been entered into with respect to any Key License prior to the Closing Date, then the Parties,
    acting reasonably, may agree to the sale, divestiture or other disposition of such Key License, in which case such sale, divestiture
    or disposition must take place prior to Closing (but after HSR Approval), however neither Party is required to agree to any
    sale, divestiture or other disposition with respect to any Key License, and the proceeds of such sale shall inure to the benefit
    of Harvest or ParentCo.

 

    	 	-82-	 

     

    

 

	 	(b)	As
    soon as practicable after the date of this Agreement, Harvest shall use commercially reasonable efforts to (i) obtain a Transfer
    Consent from the applicable Governmental Authorities (to the extent a Transfer Consent is required under applicable Law) to
    the transfer to Resulting Issuer or an Affiliate of Resulting Issuer of all Harvest Cannabis Permits set forth in Section
    8.03(b) of the Harvest Disclosure Schedules, to the change in ownership or change of control of a Subsidiary or Affiliate
    of Harvest, as applicable, holding such Harvest Cannabis Permit as a result of the Transactions, or (ii) enter into a reasonable
    arrangement to secure the benefits of such Harvest Cannabis Permits or the entity which owns the Harvest Cannabis Permit.
    Harvest shall use commercially reasonable efforts to obtain applicable state regulatory approvals to the extent required for
    each necessary commercial arrangement, and each commercial arrangement shall comply with applicable state Law in the relevant
    jurisdictions.

 

	 	(c)	As
    soon as practicable after the date of this Agreement, the Company, ParentCo and Harvest shall cooperate and use commercially
    reasonable efforts to obtain Transfer Consents or enter into Commercial Arrangements for all of the Company Cannabis Permits
    which are not Key Licenses (the “Non-Key Licenses”); however, if such Transfer Consents or Commercial Arrangements
    have not been received prior to the Closing Date, then, provided all of the conditions in Section 10.01 have been satisfied
    or are otherwise capable of being satisfied:

 

	 	(i)	Following
    the Closing, the Parties shall use commercially reasonable efforts to (A) obtain a Transfer Consent from the applicable Governmental
    Authorities (to the extent a Transfer Consent is required under applicable Law) to the transfer to Resulting Issuer or an
    Affiliate of Resulting Issuer of all the Non-Key Licenses and/or to the change in ownership or change of control of a Subsidiary
    or Affiliate of the Company holding such Non-Key License as a result of the Transactions, as appropriate, (B) if the Parties
    determine, acting reasonably, that a Transfer Consent for any Non-Key License is either infeasible or impractical to obtain,
    then the Resulting Issuer or an Affiliate of the Resulting Issuer shall enter into a Commercial Arrangement with the Companies
    that hold such Non-Key Licenses, or (C) if neither a Transfer Consent has been obtained nor a Commercial Arrangement has been
    entered into with respect to any Non-Key License, then such Non-Key License or the entity which holds such Non-Key License
    shall be sold, divest, or otherwise disposed of as expeditiously as practicable, it being understood that such sale, divestiture
    or disposition may take place prior to or after the Closing Date and that the proceeds of such sale shall inure to the benefit
    of the Resulting Issuer or its Affiliates.

 

	8.04	Commercial
    Arrangements

 

	 	(a)	To
    the extent necessary, and as required in Section 8.03, the Parties agree to cooperate and use commercially reasonable efforts
    to cause the relevant entity to enter into a reasonable interim arrangement to secure the benefits of such Key License or
    Non-Key License or the entity which owns the Key License or the Non-Key License (“Commercial Arrangements”)
    with an Affiliate of Harvest in a form of agreement to be agreed to by the Parties whereby the Harvest Affiliate agrees to
    fully support the post-Closing financial and operation needs of such entity (and commit to any state regulator mandated operational
    timetables) until such time as the entity may be transferred, divested or separated out. The Company and Harvest shall use
    commercially reasonable efforts to obtain applicable state regulatory approvals to the extent required for each necessary
    Commercial Arrangements, and each Commercial Arrangement shall comply with applicable state Law in the relevant jurisdictions
    and the obligations of the Companies shall be limited to those otherwise required to manage and operate the Company Business
    in accordance with the applicable Company Cannabis Permit in the states in which they operate.

 

    	 	-83-	 

     

    

 

	 	(b)	Harvest
    shall not take any action or require any action from the Company pursuant to its operation and management of the Company Business
    under Section 8.01(c) which would cause the Company and Harvest to be consolidated under IFRS, and Harvest agrees that it
    shall not engage in integration of the Company Business prior to Closing and subject to local or state authorization or HSR
    Approval or other applicable Law. The Company retains the right to take all action as it deems necessary or appropriate, in
    its discretion, prior to Closing, to comply with any state, local or other licenses and to engage in any divestiture of licenses
    or locations that may be necessary in connection with the Transactions to the extent permitted under Sections 8.03(a) or 8.03(c).

 

	8.05	Governmental
    Approvals and Consents

 

	 	(a)	Each
    Party hereto shall, as promptly as possible, (i) make, or cause or be made, all filings and submissions required under any
    Law applicable to such Party or any of its Affiliates; (ii) use its commercially reasonable efforts to ensure the valid transfer
    (or authorization to change ownership) of all Permits from the Companies or Harvest, as applicable, to ParentCo or a direct
    or indirect subsidiary of ParentCo as of the Closing, such that Harvest and its Affiliates would not suffer any interruption
    in the operation of the Company Business as currently conducted after the Closing; and (iii) use commercially reasonable efforts
    to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that
    may be or become necessary for its execution and delivery of this Agreement, the Transactions, including the Plan of Arrangement,
    and the performance of its obligations pursuant to this Agreement. Each Party shall cooperate fully with the other Party and
    its Affiliates in promptly seeking to obtain all such consents, authorizations, orders and approvals. The Parties shall not
    willfully take any action that will have the effect of delaying, impairing or impeding the receipt of any required consents,
    authorizations, orders and approvals.

 

	 	(b)	The
    Company and Harvest shall use commercially reasonable efforts to give all notices to, and obtain all consents from, all third
    parties that are described in Section 5.04 of the Harvest Disclosure Schedules.

 

	 	(c)	Without
    limiting the generality of the Parties’ undertakings pursuant to subsections (a) and (b) above, the Company and Harvest
    shall each take all reasonable action necessary to file as soon as practicable, but in no event later than fifteen (15) Business
    Days following the date hereof, notifications under the HSR Act and any other applicable Law governing antitrust or competition
    matters, including, without limitation, any foreign antitrust Laws, and respond as promptly as practicable to any inquiries
    from the Federal Trade Commission and the Antitrust Division of the Department of Justice for additional information or documentation
    and to respond as promptly as practicable to all inquiries and requests received from any state attorney general or other
    Governmental Authority in connection with anti-trust matters related to the Transactions and use its commercially reasonable
    efforts to take or cause to be taken all other actions necessary, proper or advisable consistent with this Section 8.05 to
    cause the expiration or termination of the applicable waiting periods, or receipt of required authorizations, as applicable,
    under the HSR Act (the “HSR Approval”); provided that and notwithstanding the foregoing, nothing in this
    Agreement will require Harvest or any of its Affiliates to take or refrain from taking any action that would (A) restrict,
    prohibit or limit the ownership or operation by Harvest or its Affiliates of all or any material portion of the business or
    assets of the Companies or compel Harvest of its Affiliates to dispose of or hold separately all or any material portion of
    the business or assets of Harvest and its Affiliates taken as a whole, or impose any material limitation, restriction or prohibition
    on the ability of Harvest and its Affiliates taken as a whole to conduct its business or own such assets, (B) restrict, prohibit
    or limit the ownership or operation by any of the Companies of all or any material portion of the business or assets of any
    of the Companies or compel any of the Companies to dispose of or hold separately all or any material portion of the business
    or assets of the Company taken as a whole, or impose any material limitation, restriction or prohibition on the ability of
    the Company taken as a whole to conduct its business or own such assets or (C) impose material limitations on the ability
    of Harvest to consummate the Transactions contemplated hereby.

 

    	 	-84-	 

     

    

 

	 	(d)	No
    Party shall voluntarily extend any waiting period under the HSR Act (or take any action having a like result) or enter into
    any agreement with any Governmental Authority to delay or not to consummate the Transactions contemplated by this Agreement
    except with the prior written consent of the other Parties (such consent not to be unreasonably withheld or delayed and which
    reasonableness shall be determined in light of each party’s obligation to do all things necessary, proper or advisable
    to consummate and make effective, as promptly as practicable, the Transactions).

 

	8.06	Matters
    Relating to ParentCo and Newco

 

	 	(a)	Prior
    to the Closing, other than in connection with the performance of its obligations under this Agreement and the Transactions
    contemplated hereby, ParentCo shall not engage in any business activities other than the ParentCo Permitted Activities, acquire
    any asset or incur any Liability (other than in connection with the ParentCo Permitted Activities), or take any other action
    that would cause any of the representations and warranties of ParentCo set forth in Article 6 not to be true and correct in
    accordance with the terms thereof.

 

	 	(b)	The
    Initial ParentCo Shareholder and the ParentCo Board shall not change until after the Effective Time of the Arrangement.

 

	 	(c)	Prior
    to the Closing, other than in connection with the performance of its obligations under this Agreement and the Transactions
    contemplated hereby, Newco shall not engage in any business activities other than the Newco Permitted Activities, acquire
    any asset or incur any Liability (other than in connection with the Newco Permitted Activities), or take any other action
    that would cause any of the representations and warranties of Newco set forth in Article 7 not to be true and correct in accordance
    with the terms thereof.

 

	 	(d)	The
    Newco Shareholder and the Newco Board shall not change until after the Effective Time of the Arrangement.

 

    	 	-85-	 

     

    

 

	8.07	CSE
    Listing of ParentCo Shares

 

Harvest
and ParentCo shall, prior to the Closing Date, cause the Resulting Issuer Subordinate Voting Shares to be conditionally approved
for listing on the CSE, subject to issuance of the Resulting Issuer Subordinate Voting Shares pursuant to the Arrangement. The
Company and its counsel shall have the right to review and comment on any content in the CSE listing statement to be submitted
to the CSE related to the Company, the Company Unit Holders, the Unit Exchange, the Qualified Holdco Exchange or the Qualified
Pipeline Exchange before such filings are submitted to the CSE.

 

	8.08	Lock-Up
    Agreements

 

	 	(a)	The
    Company shall use its commercially reasonable efforts to cause each of the Locked- Up Shareholders to enter into a Lock-Up
    Agreement on the Closing Date. The Lock-Up Agreements will provide that the Arrangement Consideration Shares held by the Locked-
    Up Shareholders (the “Locked-Up Shares”) will be subject to restrictions on Closing such that: (a) 10%
    of the Locked-Up Shares will be immediately available to the Locked-Up Shareholders on Closing; (b) 10% of the Locked-Up Shares
    will be released three months following the Closing; (c) 20% of the Locked-Up Shares will be released six months following
    the Closing Date; and (d) 20% of the Locked-Up Shares will be released at the end of each calendar quarter following the release
    date specified in (b) above, until all Locked-Up Shares have been released.

 

	 	(b)	The
    Resulting Issuer shall be permitted to enter into amended and restated lockup agreements with any Harvest Shareholder that
    is subject to contractual restrictions on the transfer of any Harvest Shares, as of the Closing Date, that are more restrictive
    than the lockup terms set forth in the Lock-Up Agreements (the “Harvest Lock-Up Agreements”). The Harvest
    Lock-Up Agreements may include terms and conditions that are no less restrictive than the lockup terms set forth in the Lock-Up
    Agreements.

 

	8.09	Access
    to Information

 

From
the date hereof until the Closing and subject to the applicable anti-trust Laws and solely for purposes of validating any of the
representations and warranties of the respective Parties pursuant to this Agreement and the integration of the Parties operations
subsequent to the Closing Date, each of the Company and Harvest shall, and shall cause its Representatives to, (a) afford to such
other Party and its Representatives full and free access to and the right to inspect all of the Company Real Property, properties,
assets, premises, books and records, Contracts and other documents and data related to the Companies or Harvest and the Harvest
Subsidiaries, respectively; (b) furnish to the other Party and its Representatives such financial, operating and other data and
information related to the Companies or Harvest and the Harvest Subsidiaries, as applicable, as such party or any of its Representatives
may reasonably request; and (c) instruct such other Party and its Representatives to cooperate in its investigation of the Companies
or Harvest and the Harvest Subsidiaries, as applicable; provided, however, that any such investigation shall be conducted during
normal business hours upon reasonable advance notice and in such a manner as to not materially interfere with the normal business
operations of the relevant Company or Harvest Subsidiary.

 

	8.10	Notice
    of Certain Events

 

	 	(a)	From
    the date hereof until the Closing, the Company shall promptly notify Harvest in writing of:

 

	 	(i)	any
    fact, circumstance, event or action the existence, occurrence or taking of which (A) has had, or could reasonably be expected
    to have, individually or in the aggregate, a Company Material Adverse Effect, or (B) has resulted in, or could reasonably
    be expected to result in, any representation or warranty made by the Company hereunder not being materially true and correct;

 

    	 	-86-	 

     

    

 

	 	(ii)	any
    notice or other communication from any Person alleging that the consent of such Person is or may be required in connection
    with the Transactions;

 

	 	(iii)	any
    notice or other communication from any Governmental Authority in connection with the Transactions; and

 

	 	(iv)	any
    Actions commenced or, to the Company’s Knowledge, threatened against, relating to or involving or otherwise affecting
    the Companies that, if pending on the date of this Agreement, would have been required to have been disclosed pursuant to
    Section 4.17 or that relates to the consummation of the Transactions.

 

	 	(b)	From
    the date hereof until the Closing, Harvest shall promptly notify the Company in writing of:

 

	 	(i)	any
    fact, circumstance, event or action the existence, occurrence or taking of which (A) has had, or could reasonably be expected
    to have, individually or in the aggregate, a Harvest Material Adverse Effect, or (B) has resulted in, or could reasonably
    be expected to result in, any representation or warranty made by Harvest hereunder not being materially true and correct;

 

	 	(ii)	any
    notice or other communication from any Person alleging that the consent of such Person is or may be required in connection
    with the Transactions;

 

	 	(iii)	any
    notice or other communication from any Governmental Authority in connection with the Transactions; and

 

	 	(iv)	any
    Actions commenced or, to Harvest’s Knowledge, threatened against, relating to or involving or otherwise affecting Harvest
    or any of its Subsidiaries that, if pending on the date of this Agreement, would have been required to have been disclosed
    pursuant to Section 5.17 or that relates to the consummation of the Transactions.

 

Except
as provided in Section 8.23, Harvest or the Company’s, as applicable, receipt of information pursuant to this Section 8.10
shall not operate as a waiver or otherwise affect any representation, warranty or agreement given or made by Harvest or the Company,
as applicable, in this Agreement and shall not be deemed to amend or supplement the Harvest Disclosure Schedules or the Company
Disclosure Schedules.

 

	8.11	Termination
    of Related Party Agreements

 

The
Company shall cause all Contracts set forth in Section 8.11 of the Company Disclosure Schedules to be settled or terminated prior
to the Closing.

 

    	 	-87-	 

     

    

 

	8.12	Confidentiality

 

Prior
to the Closing, the Confidentiality Agreement shall remain in full force and affect and the terms, and agreements therein shall
be binding on the Parties as an original signatory thereto.

 

	8.13	Company
    Representative

 

	 	(a)	The
    Company Representative is hereby designated to represent each of the Company Arrangement Participants for purposes of this
    Agreement, including prior to the Closing for the purposes set forth herein. The Company Representative may appoint a successor
    Company Representative at any time, and any such successor Company Representative shall have all of the rights and obligations
    pertaining to the Company Representative as set forth in this Agreement. The Company Representative shall have the following
    powers and duties: (i) to take such lawful actions and to incur such costs and expenses as the Company Representative, in
    its sole discretion, deems necessary or advisable to safeguard the interests of the Company Arrangement Participants in the
    Escrow Shares; (ii) to compromise, modify, settle, waive, relinquish, exchange, liquidate or otherwise resolve the rights
    of the Company Arrangement Participants in and to any amounts that are or may be payable after the Closing by ParentCo hereunder,
    which compromise, modification, settlement, waiver, relinquishment, exchange, liquidation or resolution may include payment
    to the Company Arrangement Participants of cash, property or any combination thereof; (iii) to employ accountants, investment
    banks, appraisers, and other experts, attorneys and such other agents as the Company Representative may deem advisable; (iv)
    to incur fees, costs and expenses relating to the performance and implementation of this Agreement and the Transaction Documents
    and the Transactions (including costs and expenses relating to third-party paying agents, wire expenses and other costs and
    expenses relating to the payment of any amounts due hereunder); (v) to maintain a register of the Company Arrangement Participants;
    (vi) to receive and distribute to the Company Arrangement Participants the consideration payable hereunder and/or under the
    Escrow Agreement, and holdback therefrom any amounts necessary or appropriate in the judgment of the Company Representative;
    (vii) execute, deliver and perform under the Transaction Documents; (viii) subject to Section 13.10, execute and deliver any
    or perform under any amendment or waiver to this Agreement and the Transaction Documents; (ix) take all actions reasonably
    necessary to effectuate the change of ownership, divestment, separation out and/or transfer (and any subsequent ownership
    administration) of the Company Cannabis Permits as contemplated under this Agreement and (x) to take all lawful actions which
    the Company Representative deems necessary or advisable in order to carry out the foregoing. The Company Representative shall
    serve without compensation. The Company Representative shall not be liable to any Party or the Company Arrangement Participants
    for the performance of any act or failure to act so long as it acted (or failed to act) in good faith within what it reasonably
    believed to be the scope of its authority and for a purpose which it reasonably believed to be in the best interests of the
    Company Arrangement Participants.

 

	 	(b)	The
    appointment of the Company Representative shall be deemed coupled with an interest and is hereby irrevocable. The provisions
    of this Section 8.13 are independent and severable, shall constitute an irrevocable power of attorney, coupled with an interest,
    are given primarily for a business or commercial purpose, shall survive the death, disability, incapacity, bankruptcy, dissolution
    or liquidation of each Company Arrangement Participant, and are granted by each of the Company Arrangement Participants to
    the Company Representative, and shall be binding upon the executors, heirs, legal representatives, successors and assigns
    of each such Company Arrangement Participant.

 

    	 	-88-	 

     

    

 

	 	(c)	The
    Company Representative shall act for the Company Arrangement Participants on all of the matters set forth in this Agreement
    and the Transaction Documents in the manner the Company Representative believes in good faith to be in the best interest of
    the Company Arrangement Participants and consistent with its obligations under this Agreement. The Company Representative
    shall not be responsible to any Party or the Company Arrangement Participants for any damages they may suffer by reason of
    the performance by the Company Representative of the powers, authority and duties of the Company Representative under this
    Agreement, other than loss or damage arising from a willful and knowing violation of the Law or this Agreement by the Company
    Representative.

 

	 	(d)	Each
    Company Arrangement Participant shall indemnify and hold harmless the Company Representative from, and promptly reimburse
    the Company Representative for, any loss, damage, fees, costs or expenses arising from the performance of the powers, authority
    and duties of the Company Representative hereunder, including the reasonable cost of any legal counsel or accountants retained
    by the Company Representative on behalf of the Company Arrangement Participants or otherwise, but excluding any loss or damage
    arising from a willful and knowing violation of the Law or this Agreement by the Company Representative.

 

	 	(e)	All
    actions, decisions and instructions of the Company Representative taken, made or given pursuant to the power or authority
    granted to the Company Representative pursuant to this Section 8.13 shall be conclusive and binding upon each Company Arrangement
    Participant, and no Company Arrangement Participant shall have the right to object to, dissent from, protest or otherwise
    contest the same. ParentCo and Harvest shall be entitled to rely solely on the Company Representative with respect to any
    action or decision required to be made, taken, agreed to or consented to by the Company Arrangement Participants under this
    Agreement or the Transaction Documents. Any action or decision taken or made by ParentCo or Harvest under this Agreement or
    the Transaction Documents with the consent or agreement of, or at the request of, the Company Representative shall be deemed
    approved, consented to, conclusive and binding on all Company Arrangement Participants, regardless of whether any such Company
    Arrangement Participant was provided with notice of any such action or decision.

 

	8.14	Directors
    & Officers Insurance; Indemnification

 

Prior
to the Closing, the Company may, to the extent available at commercially reasonable rates, obtain “tail” insurance
policy naming the officers and directors of the Company as direct beneficiaries (the “D&O Indemnified Persons”)
with a claims period of six years from the Closing Date from an insurance carrier with the same or better credit rating as the
Company’s current insurance carrier with respect to directors’ and officers’ liability insurance in an amount
and scope at least as favorable as the Company’s existing policies with respect to matters existing or occurring at or prior
to the Closing Date (the “D&O Tail Policy”). From and after the Effective Time, the Resulting Issuer shall
use its commercially reasonable efforts to maintain the D&O Tail Policy in effect for six years from the Closing Date to the
extent available at commercially reasonable rates. The provisions of this Section 8.14 are (i) intended to be for the benefit
of, and shall be enforceable by, each D&O Indemnified Person, and (ii) in addition to, and not in substitution for, any other
rights to indemnification or contribution that any such Person may have by Contract or otherwise.

 

    	 	-89-	 

     

    

 

	8.15	Public
    Announcements

 

Unless
otherwise required by applicable Law or stock exchange requirements (based upon the reasonable advice of counsel), no Party shall
make any public announcements or filings in respect of this Agreement or the Transactions or otherwise communicate with any news
media without the prior written consent of the other Parties (which consent shall not be unreasonably withheld or delayed). Harvest
and the Company will jointly prepare the initial public announcement regarding this Agreement and the Transaction. If a public
announcement regarding this Agreement or the Transactions is required by applicable Law or stock exchange requirements, the Party
seeking to make the public announcement will provide the other Party with a written copy of the public announcement a reasonable
period of time before the public announcement is to be made and will consult in good faith with such other Party regarding the
contents of such public announcement.

 

	8.16	Employees

 

	 	(a)	Prior
    to the Closing the Company shall use commercially reasonable efforts to continue to employ the employees of the Company that
    have been designated as key employees by Harvest prior to the date hereof, in its sole discretion (the “Company Key
    Employees”). After the Closing, the Company and Harvest shall use commercially reasonable efforts to continue to
    employ the Company Key Employees, which efforts shall include providing for such employees to participate in the Resulting
    Issuer Equity Incentive Plan on terms and conditions that are similar to Harvest’s existing officers and management.
    The Company and its management shall use commercially reasonable efforts to assist ParentCo in arranging for all the Company
    Key Employees to continue their employment with the Company following the Closing.

 

	 	(b)	On
    the Closing, the Company shall be entitled to pay (through its customary payroll processing) up to an aggregate of $[***]
    of transaction bonuses to certain officers and employees of the Companies that serve in such capacities at such time,
    which individual bonuses shall be in such amounts as determined by the Company.

 

	 	(c)	Except
    to the extent that (i) any such resignation or termination is prohibited by applicable Law, (ii) any such resignation or termination
    may jeopardize the continued good standing of a Company Cannabis Permit, or (iii) any such resignation or termination is not
    within the control of any of the Companies, by the Closing the Company shall have terminated or shall have received resignations
    from such directors, officers and managers of the Companies as are requested in writing by Harvest within a reasonable period
    of time prior to the scheduled Closing Date, which such resignations and/or terminations shall have applicable effective dates
    no earlier than the Closing as reasonably designated in such written request by Harvest; provided, that in all cases such
    resignations or terminations may be contingent upon and subject to the occurrence of the Closing. If Harvest fails to deliver
    such written request with respect to any individual within a reasonable period of time prior to the scheduled Closing, the
    failure to terminate or obtain such resignation by such individual shall not result in a breach or failure to perform by the
    Company hereunder.

 

    	 	-90-	 

     

    

 

	8.17	Further
    Assurances

 

From
the date hereof until the Closing, each Party hereto shall use commercially reasonable efforts to take such actions as are necessary
to expeditiously satisfy the closing conditions set forth in Article 10.

 

	 	(a)	Harvest
    and the Company shall cooperate and use commercially reasonable efforts in good faith to take, or cause to be taken, all reasonable
    actions, including the preparation of any applications for Required Regulatory Approvals and other orders, registrations,
    consents, filings, rulings, exemptions, circulars and approvals required in connection with this Agreement, the Arrangement,
    the Unit Exchange and the Harvest Exchange and the preparation of any required documents, in each case as reasonably necessary
    to discharge their respective obligations under this Agreement and the Plan of Arrangement, and to complete any of the Transactions,
    including their obligations under applicable Laws.

 

	 	(b)	Following
    the Closing, each of the Parties shall, and shall cause their respective Affiliates to, execute and deliver such additional
    documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out
    the provisions hereof and give effect to the Transactions.

 

	8.18	Non-Solicitation
    of Employees

 

Prior
to Closing, Harvest shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or solicit any employee
of Companies or encourage any such employee to leave such employment or hire any such employee who has left such employment

 

	8.19	Qualified
    Holdco Exchange Agreements

 

Prior
to the Closing, ParentCo shall use its commercially reasonable efforts to enter into one or more agreements (each, a “Qualified
Holdco Exchange Agreement”), which Qualified Holdco Exchange Agreements shall be in a form and on terms acceptable to
Harvest, acting reasonably, with any and each Qualified Holdco and all of its Qualified Holdco Shareholders, pursuant to which
such Qualified Holdco Shareholders agree to transfer all of their Qualified Holdco Shares, free and clear of all Encumbrances,
to ParentCo in exchange for that aggregate number of ParentCo Subordinate Voting Shares equal to the product obtained when (i)
the aggregate number of Company Units held by such Qualified Holdco immediately prior to the Effective Time and set out in the
Payment Allocation Schedule, is multiplied by (ii) the SVS Exchange Ratio. Each such Qualified Holdco Exchange Agreement: (i)
shall contain such representations and warranties by the Qualified Holdco Shareholders, including representations relating to
the ownership of the Qualified Holdco Shares, ownership by the Qualified Holdco of Company Units, absence of any business activities
and absence of Liabilities, as Harvest may reasonably request; (ii) require each Qualified Holdco Shareholder to acknowledge and
agree that upon the Arrangement becoming effective, the Resulting Issuer shall be entitled to deliver to the Escrow Agent a portion
of the Arrangement Consideration Shares that such Qualified Holdco Shareholder would otherwise be entitled to receive pursuant
to the Arrangement, to be held by the Escrow Agent pursuant to and in accordance with the Escrow Agreement on account of any indemnification
obligations of such Qualified Holdco Shareholder pursuant to this Agreement; and (iii) subject to the conditions as specified
in the Qualified Holdco Exchange Agreement, permit a Qualified Holdco Shareholder to make a joint tax election with ParentCo pursuant
to subsection 85(1) of the Tax Act.

 

	8.20	Qualified
    Pipeline Exchange Agreements

 

	 	(a)	Prior
    to the Closing, ParentCo shall use its commercially reasonable efforts to enter into one or more agreements (each, a “Qualified
    Pipeline Exchange Agreement”), which Qualified Pipeline Exchange Agreements shall be in a form and on terms acceptable
    to Harvest, acting reasonably, with each Qualified Pipeline Entity and all of its Qualified Pipeline Equity Holders, pursuant
    to which such Qualified Pipeline Equity Holders agree to transfer all of their Qualified Pipeline Interests, free and clear
    of all Encumbrances, to ParentCo in exchange for ParentCo Shares as provided in Section 8.20(b) and set out in the Payment
    Allocation Schedule. Each such Qualified Pipeline Exchange Agreement shall contain such representations and warranties by
    the Qualified Pipeline Equity Holders, including representations relating to the ownership of the Qualified Pipeline Interests,
    as Harvest may request.

 

    	 	-91-	 

     

    

 

	 	(b)	The
    aggregate number of ParentCo Shares to be issued to pursuant to a Qualified Pipeline Exchange Agreement shall, except where
    any agreement entered into between the Company and the applicable Qualified Pipeline Entity Holders prior to the date hereof
    provides for a different exchange ratio as specifically set forth on Section 8.20(b) of the Company Disclosure Schedules,
    or unless agreed to otherwise by Harvest, be determined based on the Qualified Pipeline Exchange Shares Amount applicable
    to such Qualified Pipeline Exchange Agreement. The Qualified Pipeline Shares Exchange Amount with respect to a particular
    Qualified Pipeline Exchange Agreement represents the maximum number of ParentCo Subordinate Voting Shares (including ParentCo
    Subordinate Voting Shares issuable on a conversion of ParentCo Multiple Voting Shares in accordance with the rights and restrictions
    attached to the ParentCo Multiple Voting Shares) that may be issued pursuant to such Qualified Pipeline Exchange Agreement.
    The “Qualified Pipeline Exchange Shares Amount” with respect to a particular Qualified Pipeline Exchange
    Agreement shall be calculated by (i) multiplying (A) the aggregate amount (in US$) of the equity consideration that the applicable
    Qualified Pipeline Entity Holders would otherwise be entitled to receive under the definitive agreement between such Qualified
    Pipeline Entity Holders and the Company, by (B) by the Bank of Canada exchange rate for converting U.S. dollars into Canadian
    dollar for the day that is two Business Days prior to the Closing Date, and (ii) dividing such product by the volume-weighted
    average price of the Harvest Subordinate Voting Shares on the CSE for the five-day trading period ending two Business Days
    prior to the Closing Date. For the avoidance of doubt, ParentCo shall be entitled to issue ParentCo Multiple Voting Shares
    to Qualified Pipeline Equity Holders pursuant to a Qualified Pipeline Exchange Agreement, provided that (i) the aggregate
    number of ParentCo Subordinate Voting Shares into which such ParentCo Multiple Voting Shares may be converted (in accordance
    with the rights and restrictions attached to the ParentCo Multiple Voting Shares), together with the aggregate number of ParentCo
    Subordinate Voting Shares to be issued pursuant to such Qualified Pipeline Exchange Agreement, does not exceed the Qualified
    Pipeline Exchange Shares Amount with respect to such Qualified Pipeline Exchange Agreement, and (ii) such issuance of ParentCo
    Multiple Voting Shares complies with the provisions of Section 2.09.

 

	 	(c)	The
    Company shall use its commercially reasonable efforts to ensure that ParentCo receives the benefit of all of the representations,
    warranties, covenants and indemnities that the Company or an Affiliate of the Company has received under any agreements that
    the Company or an Affiliate of the Company has entered into with respect to any Qualified Pipeline Entity and any Pipeline
    Acquisitions.

 

	 	(d)	Neither
    the Company nor ParentCo may waive any closing condition to a Qualified Pipeline Exchange Agreement without the written consent
    of Harvest, such consent not to be unreasonably withheld, conditioned or delayed.

 

	8.21	Company
    Non-Solicitation

 

	 	(a)	On
    and after the date of this Agreement, except as otherwise provided in this Agreement, the Company and the Company Subsidiaries
    shall not, directly or indirectly, through any officer, director, employee, advisor, representative, agent or otherwise, and
    shall instruct and use commercially reasonable efforts to cause its and its Company Subsidiaries respective representatives
    not to:

 

	 	(i)	make,
    solicit, assist, initiate, encourage or otherwise facilitate any inquiries, proposals or offers from any other Person (including
    any of its officers or employees) relating to any Company Acquisition Proposal, or furnish to any Person any information with
    respect to, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt
    by any other Person to do or seek to do any of the foregoing;

 

    	 	-92-	 

     

    

 

	 	(ii)	engage
    in any discussions or negotiations regarding, or provide any information with respect to, or otherwise co-operate in any way
    with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to make or complete
    any Company Acquisition Proposal, provided that, for greater certainty, the Company may advise any Person making an unsolicited
    Company Acquisition Proposal that such Company Acquisition Proposal does not constitute a Company Superior Proposal when the
    Company Board has so determined;

 

	 	(iii)	withdraw,
    modify or qualify, or propose publicly to withdraw, modify or qualify, in any manner adverse to Harvest, the approval or recommendation
    of the Company Board or any committee thereof of this Agreement or the Transactions;

 

	 	(iv)	approve,
    recommend or remain neutral with respect to, or propose publicly to approve, recommend or remain neutral with respect to,
    any Company Acquisition Proposal; or

 

	 	(v)	accept
    or enter into, or publicly propose to accept or enter into, any letter of intent, agreement in principle, agreement, arrangement
    or undertaking related to any Company Acquisition Proposal;

 

provided,
however, that nothing contained in this Section 8.21(a) or any other provision of this Agreement shall prevent the Company Board
from, and the Company Board shall be permitted, prior to the ParentCo Meeting, to engage in discussions or negotiations with,
or respond to enquiries from any Person that has made a bona fide unsolicited written Company Acquisition Proposal that did not
result from a breach of this Section 8.21 that the Company Board has determined constitutes a Company Superior Proposal, or provide
information pursuant to Section 8.21(d) to any such Person, in each case, where the requirements of Section 8.21(d) are met.

 

	 	(b)	The
    Company shall immediately cease and cause to be terminated any existing discussions or negotiations with any Person (other
    than Harvest) with respect to any potential Company Acquisition Proposal and, in connection therewith, the Company will discontinue
    access to any of its confidential information (and not establish or allow access to any of its confidential information, or
    any data room, virtual or otherwise). The Company agrees not to release any third party from any confidentiality, non-solicitation
    or standstill agreement to which such third party is a party, or terminate, modify, amend or waive the terms thereof and the
    Company undertakes to enforce, or cause its Subsidiaries to enforce, all standstill, non-disclosure, non-disturbance, non-solicitation
    and similar covenants that it or any of its Subsidiaries have entered into prior to the date hereof or enter into after the
    date hereof.

 

    	 	-93-	 

     

    

 

	 	(c)	Prior
    to the ParentCo Meeting, the Company shall immediately provide notice to Harvest of any bona fide Company Acquisition Proposal
    or any proposal, inquiry or offer that could lead to a Company Acquisition Proposal or any amendments to the foregoing or
    any request for non-public information relating to the Company or any of its Subsidiaries in connection with such a Company
    Acquisition Proposal or potential Company Acquisition Proposal or for access to the properties, books or records of the Company
    or any Subsidiary by any Person that informs the Company or any member of the Company Board that it is considering making,
    or has made, a Company Acquisition Proposal. Such notice to Harvest shall be made, from time to time, first immediately orally
    and then promptly (and in any event within 24 hours) in writing and shall indicate the identity of the Person making such
    proposal, inquiry or contact, all material terms thereof, including price, and such other details of the proposal, inquiry
    or contact known to the Company, and shall include copies of any such proposal, inquiry, offer or request or any amendment
    to any of the foregoing. The Company shall keep Harvest promptly and fully informed of the status, including any change to
    the material terms, of any such Company Acquisition Proposal, offer, inquiry or request and will respond promptly to all inquiries
    by Harvest with respect thereto.

 

	 	(d)	Prior
    to the ParentCo Meeting, if the Company Board receives a request for material non- public information from a Person who proposes
    to the Company a bona fide Company Acquisition Proposal that did not result from a breach of this Section 8.21, or indicates
    a possible intent to do so, the Company may contact the Person making the Company Acquisition Proposal and its representatives
    solely for the purpose of clarifying the terms and conditions of such Company Acquisition Proposal and the likelihood of its
    consummation so as to determine whether such Company Acquisition Proposal is a Company Superior Proposal; provided that the
    Company shall promptly provide Harvest with copies of all correspondence, including email and other electronic and digital
    communications, and information provided to or received from such Person. If: (x) the Company Board determines that such Company
    Acquisition Proposal constitutes a Company Superior Proposal; and (y) in the opinion of the Company Board, acting in good
    faith and on written advice from its outside legal counsel and financial advisors, the failure to provide such party with
    access to information regarding the Company and its Subsidiaries would be inconsistent with the fiduciary duties of the Company
    Board, then, and only in such case, the Company may provide such Person with access to information regarding the Company and
    its Subsidiaries, subject to the execution of a confidentiality agreement which is customary in such situations and which,
    in any event and taken as a whole, is no less favourable to the Company than the Confidentiality Agreement; provided that
    the Company sends a copy of any such confidentiality agreement to Harvest promptly upon its execution and Harvest is provided
    with copies of the information provided to such Person which was not previously provided to or made available to Harvest and
    immediately provided with access to similar information to which such Person was provided.

 

	 	(e)	The
    Company agrees that it will not accept, approve or enter into any agreement (a “Company Proposed Agreement”),
    other than a confidentiality agreement as contemplated by Section 8.21(d), with any Person providing for or to facilitate
    any Company Acquisition Proposal unless:

 

	 	(i)	the
    Company Board determines in good faith, after consultation with its outside legal counsel and financial advisors, that the
    Company Acquisition Proposal constitutes a Company Superior Proposal;

 

    	 	-94-	 

     

    

 

	 	(ii)	the
    Company Board determines in good faith after consultation with outside legal counsel and financial advisors that the failure
    to take action with respect to such Company Superior Proposal would be inconsistent with its fiduciary duties under applicable
    Laws;

 

	 	(iii)	the
    ParentCo Meeting has not occurred;

 

	 	(iv)	the
    Company has complied with Sections 8.21(a) through 8.21(d) inclusive;

 

	 	(v)	the
    Company has provided Harvest with a notice in writing that there is a Company Superior Proposal together with all documentation
    related to and detailing the Company Superior Proposal, including a copy of any Company Proposed Agreement relating to such
    Company Superior Proposal, and a written notice from the Company Board regarding the value in financial terms that the Company
    Board has determined should be ascribed to any non-cash consideration offered under the Company Superior Proposal, such documents
    to be so provided to Harvest not less than five (5) Business Days prior to the proposed acceptance, approval, recommendation
    or execution of the Company Proposed Agreement by the Company;

 

	 	(vi)	five
    (5) Business Days shall have elapsed from the date Harvest received the notice and documentation referred to in Section 8.21(e)(v)
    from the Company and, if Harvest has collectively proposed to amend the terms of the Transactions in accordance with Section
    8.21(f), the Company Board shall have determined, in good faith, after consultation with its outside legal counsel, that the
    Company Acquisition Proposal is a Company Superior Proposal compared to the proposed amendment to the terms of the Transactions
    by Harvest;

 

	 	(vii)	the
    Company concurrently terminates this Agreement pursuant to Section 12.01(g);

 

	 	(viii)	the
    Company has previously, or concurrently will have, paid to Harvest the Termination Fee;

 

	 	(ix)	and
    the Company further agrees that it will not withdraw, modify or qualify (or propose to withdraw, modify or qualify) in any
    manner adverse to Harvest the approval or recommendation of the Transactions, nor accept, approve or recommend any Company
    Acquisition Proposal unless the requirements of this Section 8.21(e)(i) through 8.21(e)(vii) have been satisfied.

 

	 	(f)	The
    Company acknowledges and agrees that, during the five (5) Business Day period referred to in Sections 8.21(e)(v) and 8.21(e)(vi)
    or such longer period as the Company may approve for such purpose, Harvest shall have the opportunity, but not the obligation,
    to propose to amend the terms of this Agreement and the Transactions and the Company shall co-operate with Harvest with respect
    thereto, including negotiating in good faith with Harvest to enable Harvest to make such adjustments to the terms and conditions
    of this Agreement and the Transactions as Harvest deems appropriate and as would enable Harvest to proceed with the Transactions
    on such adjusted terms. The Company Board will review diligently and in good faith any proposal by Harvest to amend the terms
    of the Transactions in order to determine, in good faith in the exercise of its fiduciary duties and consistent with Section
    8.22(a), whether Harvest’s proposal to amend the Transactions would result in the Company Acquisition Proposal not being
    a Company Superior Proposal compared to the proposed amendment to the terms of the Transactions.

 

    	 	-95-	 

     

    

 

	 	(g)	The
    Company Board shall promptly reaffirm and communicate its recommendation of the Transactions by press release after: (x) any
    Company Acquisition Proposal which the Company Board determines not to be a Company Superior Proposal is publicly announced
    or made; or (y) the Company Board determines that a proposed amendment to the terms of the Transactions would result in the
    Company Acquisition Proposal which has been publicly announced or made not being a Company Superior Proposal, and Harvest
    has so amended the terms of the Transactions . Harvest and its counsel shall be given a reasonable opportunity to review and
    comment on the form and content of any such press release, recognizing that whether or not such comments are required by applicable
    Laws or the fiduciary duties of the Company Board will be determined by the Company, acting reasonably and upon the advice
    of legal counsel.

 

	 	(h)	Nothing
    in this Agreement shall prevent the Company Board from complying with its disclosure obligations under applicable Law. Further,
    nothing in this Agreement shall prevent the Company Board from making any disclosure to the Company Unitholders to the extent
    the Company Board, acting in good faith and upon the written advice of its legal advisors, shall have first determined that
    the failure to make such disclosure would be inconsistent with the fiduciary duties of the Company Board or such disclosure
    is otherwise required under applicable Law, provided, however, that, notwithstanding the Company Board shall be permitted
    to make such disclosure, the Company Board shall not be permitted to make a Company Change in Recommendation, other than as
    permitted by Section 8.21(e) or the first sentence of this paragraph. Harvest and its counsel shall be given a reasonable
    opportunity to review and comment on the form and content of any such disclosure, recognizing that whether or not such comments
    are required by applicable Laws or the fiduciary duties of the Company Board will be determined by the Company, acting reasonably
    and upon the advice of legal counsel.

 

	 	(i)	The
    Company acknowledges and agrees that each successive modification of any Company Acquisition Proposal shall constitute a new
    Company Acquisition Proposal for the purposes of this Section 8.21.

 

	 	(j)	The
    Company shall ensure that the officers, managers and employees of the Company and its Subsidiaries and any investment bankers
    or other advisors or representatives retained by the Company and/or its Subsidiaries in connection with the transactions contemplated
    by this Agreement are aware of the provisions of this Section 8.21; and the Company shall be responsible for any action or
    inaction that would constitute a breach of this Section 8.21 by such officers, directors, employees, investment bankers, advisors
    or representatives as if such Persons or entities were parties hereto.

 

	 	(k)	If
    the Company provides Harvest with the notice of a Company Acquisition Proposal contemplated in this Section 8.21 on a date
    that is less than seven (7) calendar days prior to the ParentCo Meeting, Harvest shall adjourn the ParentCo Meeting to a date
    that is not less than seven (7) calendar days and not more than ten (10) calendar days after the date of such notice, provided,
    however, that the ParentCo Meeting shall not be adjourned or postponed to a date later than the seventh (7th) Business Day
    prior to the Outside Date.

 

    	 	-96-	 

     

    

 

	8.22	Harvest
    Non-Solicitation

 

	 	(a)	On
    and after the date of this Agreement, except as otherwise provided in this Agreement, Harvest and the Harvest Subsidiaries
    shall not, directly or indirectly, through any officer, director, employee, advisor, representative, agent or otherwise, and
    shall instruct and use commercially reasonable efforts to cause its and the Harvest Subsidiaries respective representatives
    not to:

 

	 	(i)	make,
    solicit, assist, initiate, encourage or otherwise facilitate any inquiries, proposals or offers from any other Person (including
    any of its officers or employees) relating to any Harvest Acquisition Proposal, or furnish to any Person any information with
    respect to, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt
    by any other Person to do or seek to do any of the foregoing;

 

	 	(ii)	engage
    in any discussions or negotiations regarding, or provide any information with respect to, or otherwise co-operate in any way
    with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to make or complete
    any Harvest Acquisition Proposal, provided that, for greater certainty, Harvest may advise any Person making an unsolicited
    Harvest Acquisition Proposal that such Harvest Acquisition Proposal does not constitute a Harvest Superior Proposal when the
    Harvest Board has so determined;

 

	 	(iii)	withdraw,
    modify or qualify, or propose publicly to withdraw, modify or qualify, in any manner adverse to the Company, the approval
    or recommendation of the Harvest Board or any committee thereof of this Agreement or the Transaction;

 

	 	(iv)	approve,
    recommend or remain neutral with respect to, or propose publicly to approve, recommend or remain neutral with respect to,
    any Harvest Acquisition Proposal; or

 

	 	(v)	accept
    or enter into, or publicly propose to accept or enter into, any letter of intent, agreement in principle, agreement, arrangement
    or undertaking related to any Harvest Acquisition Proposal;

 

	 	provided,
    however, that nothing contained in this Section 8.22(a) or any other provision of this Agreement shall prevent the Harvest
    Board from, and the Harvest Board shall be permitted, prior to the Harvest Meeting, to engage in discussions or negotiations
    with, or respond to enquiries from any Person that has made a bona fide unsolicited written Harvest Acquisition Proposal that
    did not result from a breach of this Section 8.22 that the Harvest Board has determined constitutes a Harvest Superior Proposal,
    or provide information pursuant to Section 8.22(d) to any such Person, in each case, where the requirements of Section 8.22(d)
    are met.

 

	 	(b)	Harvest
    shall immediately cease and cause to be terminated any existing discussions or negotiations with any Person (other than the
    Company) with respect to any potential Harvest Acquisition Proposal and, in connection therewith, Harvest will discontinue
    access to any of its confidential information (and not establish or allow access to any of its confidential information, or
    any data room, virtual or otherwise). Harvest agrees not to release any third party from any confidentiality, non-solicitation
    or standstill agreement to which such third party is a party, or terminate, modify, amend or waive the terms thereof and Harvest
    undertakes to enforce, or cause its Subsidiaries to enforce, all standstill, non- disclosure, non-disturbance, non-solicitation
    and similar covenants that it or any of its Subsidiaries have entered into prior to the date hereof or enter into after the
    date hereof.

 

    	 	-97-	 

     

    

 

	 	(c)	Prior
    to the Harvest Meeting, Harvest shall immediately provide notice to the Company of any bona fide Harvest Acquisition Proposal
    or any proposal, inquiry or offer that could lead to an Harvest Acquisition Proposal or any amendments to the foregoing or
    any request for non-public information relating to Harvest or any of its Subsidiaries in connection with such an Harvest Acquisition
    Proposal or potential Harvest Acquisition Proposal or for access to the properties, books or records of Harvest or any Subsidiary
    by any Person that informs Harvest, any member of the Harvest Board or such Subsidiary that it is considering making, or has
    made, an Harvest Acquisition Proposal. Such notice to the Company shall be made, from time to time, first immediately orally
    and then promptly (and in any event within 24 hours) in writing and shall indicate the identity of the Person making such
    proposal, inquiry or contact, all material terms thereof, including price, and such other details of the proposal, inquiry
    or contact known to Harvest, and shall include copies of any such proposal, inquiry, offer or request or any amendment to
    any of the foregoing. Harvest shall keep the Company promptly and fully informed of the status, including any change to the
    material terms, of any such Harvest Acquisition Proposal, offer, inquiry or request and will respond promptly to all inquiries
    by the Company with respect thereto.

 

	 	(d)	Prior
    to the Harvest Meeting, if the Harvest Board receives a request for material non- public information from a Person who proposes
    to Harvest a bona fide Harvest Acquisition Proposal that did not result from a breach of this Section 8.22, or indicates a
    possible intent to do so, Harvest may contact the Person making the Harvest Acquisition Proposal and its representatives solely
    for the purpose of clarifying the terms and conditions of such Harvest Acquisition Proposal and the likelihood of its consummation
    so as to determine whether such Harvest Acquisition Proposal is a Harvest Superior Proposal; provided that Harvest shall promptly
    provide the Company with copies of all correspondence, including email and other electronic and digital communications, and
    information provided to or received from such Person. If: (x) the Harvest Board determines that such Harvest Acquisition Proposal
    constitutes a Harvest Superior Proposal; and (y) in the opinion of the Harvest Board, acting in good faith and on written
    advice from their outside legal counsel and financial advisors, the failure to provide such party with access to information
    regarding Harvest and its Subsidiaries would be inconsistent with the fiduciary duties of the Harvest Board, then, and only
    in such case, Harvest may provide such Person with access to information regarding Harvest and its Subsidiaries, subject to
    the execution of a confidentiality agreement which is customary in such situations and which, in any event and taken as a
    whole, is no less favourable to Harvest than the Confidentiality Agreements; provided that Harvest sends a copy of any such
    confidentiality agreement to the Company promptly upon its execution and the Company is provided with copies of the information
    provided to such Person which was not previously provided to or made available to the Company and immediately provided with
    access to similar information to which such Person was provided.

 

	 	(e)	Harvest
    agrees that it will not accept, approve or enter into any agreement (a “Harvest Proposed Agreement”), other
    than a confidentiality agreement as contemplated by Section 8.22(d), with any Person providing for or to facilitate any Harvest
    Acquisition Proposal unless:

 

	 	(i)	the
    Harvest Board determines in good faith, after consultation with its outside legal counsel and financial advisors, that the
    Harvest Acquisition Proposal constitutes a Harvest Superior Proposal;

 

    	 	-98-	 

     

    

 

	 	(ii)	the
    Harvest Board determines in good faith after consultation with outside legal counsel and financial advisors that the failure
    to take action with respect to such Harvest Superior Proposal would be inconsistent with its fiduciary duties under applicable
    Law;

 

	 	(iii)	the
    Harvest Meeting has not occurred;

 

	 	(iv)	Harvest
    has complied with Sections 8.22(a) through 8.22(d) inclusive;

 

	 	(v)	Harvest
    has provided the Company with a notice in writing that there is a Harvest Superior Proposal together with all documentation
    related to and detailing the Harvest Superior Proposal, including a copy of any Harvest Proposed Agreement relating to such
    Harvest Superior Proposal, and a written notice from the Harvest Board regarding the value in financial terms that the Harvest
    Board has in consultation with its financial advisors determined should be ascribed to any non- cash consideration offered
    under the Harvest Superior Proposal, such documents to be so provided to the Company not less than five (5) Business Days
    prior to the proposed acceptance, approval, recommendation or execution of the Harvest Proposed Agreement by Harvest;

 

	 	(vi)	five
    (5) Business Days shall have elapsed from the date the Company received the notice and documentation referred to in Section
    8.22(e)(v) from Harvest and, if the Company has proposed to amend the terms of the Transactions in accordance with Section
    8.22(f), the Harvest Board shall have determined, in good faith, after consultation with its financial advisors and outside
    legal counsel, that the Harvest Acquisition Proposal is a Harvest Superior Proposal compared to the proposed amendment to
    the terms of the Transactions by the Company;

 

	 	(vii)	Harvest
    concurrently terminates this Agreement pursuant to Section 12.01(h);

 

	 	(viii)	Harvest
    has previously, or concurrently will have, paid to the Company the Termination Fee; and Harvest further agrees that it will
    not withdraw, modify or qualify (or propose to withdraw, modify or qualify) in any manner adverse to the Company the approval
    or recommendation of the Transactions, nor accept, approve or recommend any Harvest Acquisition Proposal unless the requirements
    of Section 8.22(e)(i) through 8.22(e)(vii) have been satisfied.

 

	 	(f)	Harvest
    acknowledges and agrees that, during the five (5) Business Day period referred to in Sections 8.22(e)(v) and 8.22(e)(vi) or
    such longer period as Harvest may approve for such purpose, the Company shall have the opportunity, but not the obligation,
    to propose to amend the terms of this Agreement and the Transactions and Harvest shall co-operate with the Company with respect
    thereto, including negotiating in good faith with the Company to enable Company to make such adjustments to the terms and
    conditions of this Agreement and the Transactions as the Company deems appropriate and as would enable the Company to proceed
    with the Transactions on such adjusted terms. The Harvest Board will review diligently and in good faith any proposal by the
    Company to amend the terms of the Transactions in order to determine, in good faith in the exercise of its fiduciary duties
    and consistent with Section 8.22(a), whether the Company’s proposal to amend the Transactions would result in the Harvest
    Acquisition Proposal not being a Harvest Superior Proposal compared to the proposed amendment to the terms of the Transactions.

 

    	 	-99-	 

     

    

 

	 	(g)	The
    Harvest Board shall promptly reaffirm and communicate its recommendation of the Transactions by press release after: (x) any
    Harvest Acquisition Proposal which the Harvest Board determines not to be a Harvest Superior Proposal is publicly announced
    or made; or (y) the Harvest Board determines that a proposed amendment to the terms of the Transactions would result in the
    Harvest Acquisition Proposal which has been publicly announced or made not being a Harvest Superior Proposal, and the Company
    has so amended the terms of the Transaction. The Company and its respective counsel shall be given a reasonable opportunity
    to review and comment on the form and content of any such press release, recognizing that whether or not such comments are
    required by applicable Laws or the fiduciary duties of the Harvest Board will be determined by Harvest, acting reasonably
    and upon the advice of outside legal counsel.

 

	 	(h)	Nothing
    in this Agreement shall prevent the Harvest Board from complying with its disclosure obligations under applicable Law. Further,
    nothing in this Agreement shall prevent the Harvest Board from making any disclosure to Harvest Shareholders to the extent
    the Harvest Board, acting in good faith and upon the written advice of its legal advisors, shall have first determined that
    the failure to make such disclosure would be inconsistent with the fiduciary duties of the Harvest Board or such disclosure
    is otherwise required under applicable Law, provided, however, that, notwithstanding the Harvest Board shall be permitted
    to make such disclosure, the Harvest Board shall not be permitted to make a Harvest Change in Recommendation, other than as
    permitted by Section 8.22(e) or the first sentence of this paragraph. The Company and its counsel shall be given a reasonable
    opportunity to review and comment on the form and content of any such disclosure, recognizing that whether or not such comments
    are required by applicable Laws or the fiduciary duties of the Harvest Board will be determined by Harvest, acting reasonably
    and upon the advice of outside legal counsel.

 

	 	(i)	Harvest
    acknowledges and agrees that each successive modification of any Harvest Acquisition Proposal shall constitute a new Harvest
    Acquisition Proposal for the purposes of this Section 8.22.

 

	 	(j)	Harvest
    shall ensure that the officers, directors and employees of Harvest and its Subsidiaries and any investment bankers or other
    advisors or representatives retained by Harvest and/or its Subsidiaries in connection with the transactions contemplated by
    this Agreement are aware of the provisions of this Section 8.22, and Harvest shall be responsible for any action or inaction
    that would constitute a breach of this Section 8.22 by such officers, directors, employees, investment bankers, advisors or
    representatives as if such Persons or entities were parties hereto.

 

	 	(k)	If
    Harvest provides the Company with the notice of a Harvest Acquisition Proposal contemplated in this Section 8.22 on a date
    that is less than seven (7) calendar days prior to the Harvest Meeting, if requested by the Company, the Harvest Meeting will
    be adjourned to a date that is not less than seven (7) calendar days and not more than ten (10) calendar days after the date
    of such notice, provided, however, that the Harvest Meeting shall not be adjourned or postponed to a date later than the seventh
    (7th) Business Day prior to the Outside Date.

 

    	 	-100-	 

     

    

 

	8.23	Disclosure
    Schedules

 

From
and after the date of this Agreement until the Closing, each of the Parties shall promptly (and in any event within two Business
Days of becoming aware thereof) provide the other Parties with written notice, in reasonable detail, of any matter, event, condition,
fact, circumstance or development that, if existing or known on the date of this Agreement would have been required to be set
forth or listed by such Party in the Company Disclosure Schedules or Harvest Disclosure Schedules, as applicable. If any such
matter, event, condition, fact, circumstance or development (either individually or collectively with all other matters, events,
conditions, facts, circumstances or developments disclosed by such Party after the date hereof pursuant to this Section 8.23)
would result in any material breach or inaccuracy of a representation, warranty or covenant of such disclosing Party such that
any of the closing conditions set forth in Section 10.02, 10.03 or 10.04, as applicable, are incapable of being satisfied, then
within ten (10) Business Days of the receipt of such written disclosure notice, this Agreement may be terminated by any Party
(other than the disclosing Party) whose closing conditions are incapable of being so satisfied because of all of such disclosed
information, collectively. If this Agreement is not terminated as provided in this Section 8.23 the Parties cannot rely on Section
12.01(b) or 12.01(c) to terminate this Agreement as a result of such written notice and should the Parties consummate the Closing,
then (a) any written notice provided pursuant to this Section 8.23 shall be deemed to qualify and update the representations and
warranties of such disclosing Party in all respects for the purposes of the satisfaction of the closing conditions set forth in
Section 10.02, 10.03 or 10.04, as applicable, and shall not be a basis for failure to satisfy any such conditions, and (b) for
the purposes of indemnification rights of any Party under Article 11, such written notice shall not be deemed to qualify and update
the representations and warranties of such disclosing Party and such indemnification rights as set forth in Article 11 shall remain
in full force or effect with respect to such disclosed information.

 

	8.24	Pipeline
    Contingent Acquisitions

 

The
Company agrees that neither it nor any Company Subsidiary will accept, approve or enter into any definitive binding agreement
with respect to a Pipeline Contingent Acquisition, with any Person, without the prior written consent of Harvest. The Company
further agrees to provide Harvest with reasonable access to information necessary for Harvest to evaluate whether to approve the
Pipeline Contingent Acquisition.

 

	8.25	Shareholder
    Approval

 

In
connection with the Harvest Meeting, Harvest shall solicit proxies from the holders of Harvest Subordinate Voting Shares in which
they agree to vote their Harvest Shares in favor of all actions necessary to consummate the transactions contemplated by this
Agreement, including but not limited to, approval of the Harvest Arrangement Resolution.

 

	8.26	Working
    Capital Loan

 

If
requested by the Company prior to Closing, the Parties may seek to enter into one or more financing transactions whereby Harvest,
or an Affiliate of Harvest, would provide the Company with a working capital loan or other mutually-agreeable commercial arrangement
on commercially reasonable and market terms, to permit the Companies to conduct its business as provided for in this Agreement
in an amount of up to $[***] on such terms and conditions as mutually agreed to by Harvest and the Company acting reasonably
(the “Working Capital Loan”). In the event Harvest and the Company are unable to mutually agree on the terms
and conditions of the Working Capital Loan acting in good faith, then, notwithstanding anything to the contrary contained in this
Agreement, the Company shall be permitted to obtain one or more working capital loans which in the aggregate shall not exceed
$[***] from a third party that is at arm’s length to the Companies on commercially reasonable and market terms.

 

    	 	-101-	 

     

    

 

ARTICLE
9

TAX
MATTERS

 

	9.01	Transfer
    Taxes

 

All
transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and
interest) incurred in connection with the transfer of any Cannabis Permits in accordance with Section 8.03, the Unit Exchange,
the Qualified Holdco Exchange, the Pipeline Exchange or the Pipeline Acquisitions shall be borne by ParentCo. The Company and
Harvest agree to cooperate with ParentCo in the execution and delivery of all instruments and certificates necessary to enable
compliance with the payment of such Taxes.

 

	9.02	Termination
    of Existing Tax Sharing Agreements

 

Any
and all existing Tax sharing agreements (other than commercial Contracts entered into in the ordinary course of business that
primarily do not relate to Taxes) (whether written or not) binding upon the Company or its Subsidiaries shall be terminated as
of the Closing Date. After such date neither the Companies, Company Arrangement Participants nor any of Company Arrangement Participants’
Affiliates and their respective Representatives shall have any further rights or liabilities thereunder.

 

	9.03	Tax
    Indemnification By Company Arrangement Participants

 

Company
Arrangement Participants shall indemnify the Companies, ParentCo, Harvest, and each Harvest Affiliate and hold them harmless from
and against, without duplication: (a) any Loss attributable to any breach of or inaccuracy in any representation or warranty made
in Section 4.21; (b) any Loss attributable to any breach or violation of, or failure to fully perform by the Companies, any covenant,
agreement, undertaking or obligation in Article 9; (c) all Taxes of any member of an affiliated, consolidated, combined or unitary
group of which any Company (or any predecessor of any Company) is or was a member on or prior to the Closing Date by reason of
a liability under U.S. Treasury Regulations Section 1.1502-6 or any comparable provisions of foreign, state or local Law; and
(d) any and all Taxes of any Person (other than the Company and its Subsidiaries) imposed on the Companies arising under the principles
of transferee or successor liability or by contract (other than pursuant to commercial Contracts entered into in the ordinary
course of business the primary purpose of which is not related to Taxes), relating to an event or transaction occurring before
the Closing Date. In each of the above cases, together with any out-of-pocket fees and expenses (including attorneys’ and
accountants’ fees) incurred in connection therewith. Notwithstanding anything herein to the contrary, unless otherwise required
by applicable Law, Harvest and ParentCo shall report all transactions not in the ordinary course of business occurring on the
Closing Date, but after the Closing, in taxable periods, or portions thereof beginning after the Closing Date and ParentCo shall
pay or cause the Company to pay all Taxes, if any, of the Companies and the Company Arrangement Participants arising from or relating
to such transactions. Except as provided in Section 9.07 below, the Company Representative, on behalf of the Company Arrangement
Participants, shall reimburse ParentCo for any Taxes of the Companies that are the responsibility of Company Arrangement Participants
pursuant to this Section 9.03 solely with Escrow Shares and if and when there are no Escrow Shares remaining, the Company Arrangement
Participants obligations under this Section 9.03 shall terminate.

 

	9.04	Tax
    Treatment of Indemnification Payments

 

Any
indemnification payments pursuant to this Article 9 shall be treated as an adjustment to the total consideration received by each
of the parties pursuant to the Transactions for Tax purposes, unless otherwise required by Law.

 

    	 	-102-	 

     

    

 

	9.05	Survival

 

Notwithstanding
anything in this Agreement to the contrary, the provisions of this Article 9 shall survive for the full period of all applicable
statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus 90 days.

 

	9.06	Overlap

 

To
the extent that any obligation or responsibility pursuant to Article 10 or Article 11 may overlap with an obligation or responsibility
pursuant to this Article 9, as it relates to Taxes, the provisions of this Article 9 shall govern.

 

	9.07	Tax
    Returns

 

	 	(a)	Preparation
    of Tax Returns. The Company shall prepare, or cause to be prepared, and timely file, or cause to be timely filed, all
    Tax Returns of the Company and its Subsidiaries that are required to be filed on or before the Closing Date and pay all Taxes
    due with such Tax Returns. Except with respect to the IRS Forms 1065 (and corresponding state and local income Tax Returns)
    for the Pre-Closing Tax Periods and Straddle Periods to be filed for the Company and each of the Company Subsidiaries which
    are classified for U.S. federal income tax purposes as a partnership, which will be prepared, or caused to be prepared, and
    timely filed, or caused to timely filed, at ParentCo’s sole expense, by the Company Representative, the Resulting Issuer
    shall prepare, or cause to be prepared, and timely file, or cause to be timely filed, all Tax Returns of the Company and its
    Subsidiaries that are required to be filed after the Closing Date. All such Tax Returns with respect to a Pre- Closing Tax
    Period or a tax period that begins before and ends after the Closing Date (a “Straddle Period”) that are
    to be prepared and filed pursuant to this Section 9.07(a) shall be (i) prepared and timely filed in a manner consistent with
    the most recent past practice and methods of the Company and its Subsidiaries and Section 9.07(b) (except as otherwise required
    by applicable Law) and (ii) delivered to the non-preparing party (i.e., ParentCo with respect to Company and Company Representative
    prepared Tax Returns and the Company Representative with respect to ParentCo prepared Tax Returns) for its review (X) with
    respect to Income Tax Returns, no later than 30 days before the filing date thereof and (Z) with respect to all other Tax
    Returns, within three (3) days of filing. If the non- preparing party agrees with the Income Tax Returns, then such Income
    Tax Returns shall be timely filed or cause to be filed by the preparing party. If, within twenty (20) days after the receipt
    of the Income Tax Returns, the non-preparing party notifies the preparing party that it disputes the manner of preparation
    of the Income Tax Returns, then ParentCo and the Company Representative shall attempt to resolve their disagreement within
    five days following the notification of such disagreement. If ParentCo and the Company Representative are not able to resolve
    their disagreement, then the disputed items shall be submitted to an accountant mutually agreed to by the Parties (the “Settlement
    Accountants”) as an expert and not an arbitrator, for resolution on at least a more-likely- than-not basis. ParentCo
    and the Company Representative shall use their reasonable efforts to cause the Settlement Accountants to resolve the disagreement
    within 30 days after the date on which they are engaged or as soon as possible thereafter. The determination of the Settlement
    Accountant shall be final and binding on the parties. If the Settlement Accountants are unable to resolve any such dispute
    prior to the due date (with applicable extensions) for any such Income Tax Return, such Income Tax Return shall be filed as
    prepared by the preparing party subject to amendment, if necessary, to reflect the resolution of the dispute by the Settlement
    Accountants. The cost of the services of the Settlement Accountant shall be borne by the party whose calculation of the matter
    in disagreement differs the most from the calculation as finally determined by the Settlement Accountant. The Company and
    its Subsidiaries shall timely pay to the applicable Tax authorities the amount of Taxes of the Company and its Subsidiaries
    due with respect to such Income and other Tax Returns.

 

    	 	-103-	 

     

    

 

	 	(b)	Straddle
    Periods. For purposes of preparing any Income Tax Return of a Company or any Subsidiary, in the case of any Straddle Period,
    items of income, gain, loss and deduction shall be apportioned between the Pre-Closing Tax Period and the remaining portion
    of such Tax year or period on the basis of a closing of the books as of the end of the Closing; provided, however, that in
    the case of a Tax not based on income, receipts, proceeds, profits or similar items, Straddle Period Taxes shall be equal
    to the amount of Tax for the Tax Period multiplied by a fraction, the numerator of which shall be the number of days from
    the beginning of the Tax period through the Closing Date and the denominator of which shall be the number of days in the Tax
    period. ParentCo and the Company Representative agree that for purposes of Section 706(d) of the Code, each of the Company
    and the Subsidiaries that are treated as partnerships for federal income tax purposes shall use the “closing of the
    books” method to allocation income, gain, deduction and loss for Tax year in which the Closing takes place.

 

	 	(c)	Tax
    Contests. If any Governmental Authority issues to the Company or any of its Subsidiaries a notice of deficiency, or of
    its intent to audit or conduct another proceeding with respect to a Tax Return or Taxes of the Company or any of its Subsidiaries,
    for any Pre-Closing Tax Period or Straddle Period that could adversely affect the Tax liability or any Tax position of any
    of the direct or indirect equity owners of the Company for any taxable period, then the Company shall notify Harvest and the
    Company Representative, or the Company Representative shall notify Harvest, as the case may be, of its receipt of such communication
    from the Governmental Authority within ten (10) days of receipt and provide the other party with copies of all correspondence
    and other documents received from the Governmental Authority. Upon written notice to ParentCo and Harvest, the Company Representative
    shall control any audit or other proceeding with respect to Income Taxes or Income Tax Returns of the Company or its Subsidiaries
    for any Pre-Closing Tax Period; provided that ParentCo shall be entitled to participate in the conduct of any such audit or
    other proceeding at its expense and the Company Representative shall not settle, compromise, resolve, or abandon any such
    audit or other proceeding without the prior written consent of ParentCo, such consent not to be unreasonably withheld or delayed.
    ParentCo shall control any audit or other proceeding in respect of any non-Income Tax Returns of the Company or its Subsidiaries
    for any Pre-Closing Tax Period and any Tax Returns of the Company or its Subsidiaries for any Straddle Period; provided that
    the Company Representative, at its expense, shall have the right to participate in any such audit or other proceeding and
    ParentCo shall not, and shall not allow the Companies to, settle, compromise, resolve, or abandon any such audit or other
    proceeding without the prior written consent of the Representative, such consent not to be unreasonably withheld or delayed.
    In the event of an audit or deficiency for a tax year commencing after December 31, 2017 with respect to the Company, the
    Partnership Representative of the Company shall make a timely election pursuant to Code Section 6221(b) of the Code, and if
    not applicable, a timely election under Section 6226(a) of the Code.

 

	 	(d)	Cooperation.
    Each of ParentCo, the Company Representative and the Company Arrangement Participants shall reasonably cooperate with the
    other party in connection with the filing of any Tax Return, in any audit, litigation or other proceeding with respect to
    Taxes. Such cooperation shall include the retention and the provision of records and information that are reasonably relevant
    to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide
    additional information and explanation of any materials provided hereunder; provided, however, that ParentCo and its affiliates
    shall not be required to provide records and information or additional information or explanation that are protected by the
    attorney-client, work product or similar protection or privilege. ParentCo agrees to retain all books and records with respect
    to Tax matters pertinent to the Company and its Subsidiaries relating to any taxable period beginning before the Closing Date
    until the expiration of the statute of limitations (and, to the extent notified by the Company Representative, any extensions
    thereof) of the respective taxable periods.

 

    	 	-104-	 

     

    

 

	 	(e)	Amendments.
    ParentCo shall not (i) file, or allow to be filed, any amended Tax Returns of the Company or any of its Subsidiaries for a
    Pre-Closing Tax Period or Straddle Period, (ii)apply to any Tax authority for any binding or non-binding opinion, ruling
    or other determination with respect to the Company or any of its Subsidiaries in relation to any act, matter, or transaction
    that occurred on or before the Closing Date or that relates to any Pre- Closing Tax Period, without the written consent of
    the Company Representative, such consent not to be unreasonably withheld, conditioned or delayed.

 

	 	(f)	Tax
    Distributions. Notwithstanding any provision of this Agreement to the contrary, prior to the Closing Date, with respect
    to Pre-Closing Tax Periods and Straddle Periods, without duplication, the Company shall be permitted to make cash distributions
    to the members of the Company to fund the payment of their Income Tax liabilities with respect to their allocable share of
    taxable income and gain of the Company pursuant to Section 6.01 and/or Section 6.02 of the Operating Agreement of the Company
    and the Subsidiaries shall be permitted to make cash distributions to their members of Subsidiaries to fund the payment of
    their Income Tax liabilities with respect to their allocable share of taxable income and gain of the Subsidiaries pursuant
    to the current distribution or tax distribution provisions of the relevant operating agreements. The Company shall determine
    the amount of such Tax distributions in good faith and such determinations by the Company shall be final and binding on the
    Parties.

 

	 	(g)	Partnership
    Tax Audit Rules. With respect to any Tax period of the Company and the Qualified Pipeline Entities ending on or prior
    to the Closing Date in which the Partnership Tax Audit Rules apply to the Company and the Qualified Pipeline Entities, unless
    otherwise agreed in writing by the Resulting Issuer, notwithstanding anything herein to the contrary, the Company and the
    Qualified Pipeline Entities shall make the election under Section 6226(a) of the Code with respect to the alternative to payment
    of imputed underpayment and the parties hereto shall take any other action such as filings, disclosures and notifications
    necessary to effectuate such election. None of the parties hereto or their Affiliates shall make any election or otherwise
    take any action to cause the Partnership Tax Audit Rules to apply to the Company and the Qualified Pipeline Entities at any
    earlier date than is required by Law.

 

	 	(h)	The
    Parties acknowledge and agree that Harvest, the Harvest Subsidiaries, the Company and the Company Subsidiaries are engaged
    in the business of operating a licensed dispensary of medical marijuana (cannabis), which is classified as a Schedule I controlled
    substance under Section 812 of the CSA, and are required to file tax returns under Section 280E of the Code (“280E”).
    The Parties further acknowledge and agree that the U.S. federal Laws affecting the medical and recreational use of cannabis
    are subject to the U.S. federal government’s policies with respect to such Laws, which cannot be known with any level
    of certainty, including the IRS’ application or enforcement of 280E. Harvest and the Company have provided copies of
    their Tax Returns filed under 280E, and the Parties have had an opportunity to thoroughly review such returns, with the expert
    advice of their legal and financial advisors. Notwithstanding anything to the contrary in this Agreement: (1) the Parties
    understand and agree that the IRS may conclude that the Company and the Subsidiaries have not complied with 280E and, but
    for a determination that a Company or Subsidiary acted in a grossly negligent manner or without commercial reasonableness,
    the Company Arrangement Participants shall not be liable for an adverse determination by the IRS and (2) the Parties understand
    and agree that the IRS may conclude that Harvest or the Harvest Subsidiaries have not complied with 280E and, but for a determination
    that Harvest or the Harvest Subsidiaries acted in a grossly negligent manner or without commercial reasonableness, neither
    the Resulting Issuer nor Harvest shall be liable for an adverse determination by the IRS.

 

    	 	-105-	 

     

    

 

ARTICLE
10

CONDITIONS
TO CLOSING

 

	10.01	Conditions
    to Obligations of All Parties

 

The
obligations of each Party to consummate the Transactions shall be subject to the fulfillment, at or prior to the Closing, of each
of the following conditions, any one or more of which may be waived (if legally permitted) in writing by all of the Parties:

 

	 	(a)	The
    ParentCo Arrangement Resolution shall have been approved and adopted at the ParentCo Meeting in accordance with the Interim
    Order and this Agreement.

 

	 	(b)	The
    Harvest Arrangement Resolution shall have been approved and adopted at the Harvest Meeting in accordance with the Interim
    Order and this Agreement.

 

	 	(c)	The
    Resulting Issuer Equity Incentive Plan shall have been approved and adopted at the ParentCo Meeting and at the Harvest Meeting.

 

	 	(d)	The
    Interim Order and the Final Order shall have each been obtained on terms consistent with this Agreement, and shall not have
    been set aside or modified, on appeal or otherwise, in a manner unacceptable to any of Harvest or the Company, each acting
    reasonably.

 

	 	(e)	No
    Governmental Authority shall have enacted, issued, promulgated, enforced, entered any Governmental Order which is in effect
    and has the effect of making the Transactions illegal, otherwise restraining or prohibiting consummation of the Transactions
    or causing any of the Transactions to be rescinded or otherwise modified following completion thereof (or, in the case of
    arising in connection with the seeking of HSR Approval, any Governmental Authority shall have filed a proceeding seeking such
    a Government Order); but shall not include any of the foregoing which results from any act taken by Harvest after the date
    of this Agreement (other than the Harvest Roll-up Exchange), including the acquisition, directly or indirectly, of any Permit
    from a third party.

 

	 	(f)	The
    Resulting Issuer Subordinate Voting Shares shall have been conditionally approved for listing, subject to issuance, on the
    CSE.

 

	 	(g)	The
    issuance of the Arrangement Consideration Shares, the Replacement Options and the Replacement Compensation Options shall be
    exempt from the prospectus requirements of Canadian Securities Laws and shall be exempt from the registration requirements
    of the U.S. Securities Act pursuant to Section 3(a)(10) thereof; provided, however, that an Arrangement Party shall not be
    entitled to rely on the provisions of this Section 10.01(g) if the Arrangement Parties fail to advise the Court prior to the
    hearing in respect of the Final Order that the Arrangement Parties will rely on the exemption from the registration requirements
    of the U.S. Securities Act provided by Section 3(a)(10) thereof based on the Court’s approval of the Arrangement.

 

    	 	-106-	 

     

    

 

	 	(h)	There
    shall be no resale restrictions on the Arrangement Consideration Shares issued in connection with the Transactions under Canadian
    Securities Laws, except in respect of those holders that are subject to restrictions on resale as a result of being a “control
    person” under Canadian Securities Laws.

 

	 	(i)	ParentCo
    shall have delivered, in accordance with the Payment Allocation Schedule and the Plan of Arrangement, (i) to the Depositary,
    the Arrangement Consideration Shares to be issued pursuant to the Arrangement, other than the Escrow Shares, and (ii) to the
    Escrow Agent, the Escrow Shares.

 

	 	(j)	In
    accordance with Sections 8.03 and 8.04, Commercial Arrangements or dispositions shall have been entered into for all Non-Key
    Licenses save and except for Commercial Arrangements or dispositions which cannot be entered into prior to Closing, as set
    forth in Sections 8.03 and 8.04.

 

	 	(k)	This
    Agreement shall not have been terminated.

 

	10.02	Conditions
    to Obligations of Harvest

 

The
obligations of Harvest to consummate the Transactions contemplated by this Agreement shall be subject to the fulfillment or Harvest’s
waiver, at or prior to the Closing, of each of the following conditions:

 

	 	(a)	Each
    of the representations and warranties of the Company contained in Sections 4.01, 4.02, 4.04, 4.06, 4.07, 4.17(a), 4.19, 4.21,
    4.26, 4.27, 4.28(a)(e)(k)(l)(i))(n) and (p) (collectively, the “Company Specified Representations”) shall
    be true and correct in all material respects as of the Closing Date as though made on the Closing Date (except to the extent
    such representations and warranties expressly relate to an earlier date, in which case, they shall be true and correct on
    and as of such earlier date). The representations and warranties of the Company contained in Section 4.03 (Capitalization)
    and Section 4.17(b) (Cannabis Permits) shall be true and correct as of the Closing Date as though made on the Closing Date.
    Each of the representations and warranties of the Company contained in this Agreement (other than the Company Specified Representations
    and the representations and warranties of the Company contained in Section 4.03 (Capitalization) and Section 4.17(b) (Cannabis
    Permits)) shall be true and correct as of the Closing Date as though made on the Closing Date (except to the extent such representations
    and warranties expressly relate to an earlier date, in which case, they shall be true and correct on and as of such earlier
    date), except, in either case, where the failure of such representations and warranties to be so true and correct would not
    have a Company Material Adverse Effect.

 

	 	(b)	Each
    of the representations and warranties of ParentCo contained in Article 6 shall be true and correct as of the Closing Date
    as though made on the Closing Date (except to the extent such representations and warranties expressly relate to an earlier
    date, in which case, they shall be true and correct on and as of such earlier date).

 

    	 	-107-	 

     

    

 

	 	(c)	The
    Company shall have duly performed and complied in all material respects (and in all respects in the case of any agreements,
    covenants and conditions qualified by materiality or Material Adverse Effect) with all agreements, covenants and conditions
    required by this Agreement to be performed or complied with by it prior to or on the Closing Date.

 

	 	(d)	ParentCo
    shall have duly performed and complied in all material respects (and in all respects in the case of any agreements, covenants
    and conditions qualified by materiality or Material Adverse Effect) with all agreements, covenants and conditions required
    by this Agreement to be performed or complied with by it prior to or on the Closing Date.

 

	 	(e)	All
    Required Regulatory Approvals and all approvals, consents and waivers that are listed in Section 10.02(e) of the Company Disclosure
    Schedules shall have been received, and executed counterparts thereof shall have been delivered to Harvest at or prior to
    the Closing, save and except for those approvals, consents or waivers which cannot be obtained due to a change in Law or any
    act taken by Harvest (including any act taken prior to the date of this Agreement) including the acquisition, directly or
    indirectly of any Permit from a third party.

 

	 	(f)	From
    the date of this Agreement, there shall not have occurred any Company Material Adverse Effect, nor shall any event or events
    have occurred that, individually or in the aggregate, with or without the lapse of time, would result in a Company Material
    Adverse Effect.

 

	 	(g)	Harvest
    shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of the Company, that each
    of the conditions set forth in Section 10.02(a) and Section 10.02(c), have been satisfied.

 

	 	(h)	Harvest
    shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of ParentCo, that each of
    the conditions set forth in Section 10.02(b) and Section 10.02(d), have been satisfied.

 

	 	(i)	The
    Company and/or ParentCo, as applicable, shall have delivered to Harvest each of the documents referred to in Section 2.10(c).

 

	 	(j)	The
    Company U.S. Merger, Unit Exchange, Qualified Holdco Exchange and Qualified Pipeline Exchange shall have occurred.

 

	 	(k)	Transfer
    Consents or Commercial Arrangements for each of the Key Licenses shall have been obtained, save and except for those Transfer
    Consents or Commercial Arrangements which cannot be obtained as a result of the completion by Harvest of any acquisition of
    one or more Permits and its failure or inability to divest, transfer, or otherwise dispose of such Permit prior to the Closing
    Date.

 

	 	(l)	All
    Company Equity Instruments shall have been paid off, extinguished or otherwise cancelled with no further affect or obligation
    to any Person, except as disclosed on any Company Disclosure Schedule hereto.

 

    	 	-108-	 

     

    

 

	 	(m)	The
    number of Company Units held by Company Unit Holders exercising or purporting to exercise ParentCo Dissent Rights shall not
    exceed 5% of the number of Company Units issued and outstanding on the date hereof.

 

	 	(n)	All
    securities issued in connection with the Company U.S. Merger shall be exempt from the registration requirements of the U.S.
    Securities Act and all applicable state securities laws.

 

	 	(o)	The
    Company shall provide Harvest with: (i) if the Closing occurs 120 days or more following the 2019 fiscal year end of the Company,
    audited financial statements of the Company consisting of the combined statements of financial position of the Company at
    December 31, 2019 and the related combined statements of operations, combined statements of changes in members’ equity
    and combined statements of cash flows of the Company for the year then ended; (ii) if the Closing occurs 150 or more days
    following the 2019 fiscal year end of the Company, the audited financial statements referred to in (i) above and unaudited
    financial statements of the Company for the most recently completed interim three-month period of the Company ended 60 days
    or more prior to the Closing; (iii) if the Closing occurs after the 2019 fiscal year end of the Company but prior to the 120th
    day following such fiscal year end, unaudited financial statements of the Company in respect of the interim period ended September
    30, 2019; and (iv) if the Closing occurs prior to the 2019 fiscal year end of the Company, unaudited financial statements
    of the Company in respect of the most recently completed interim period ended 60 days or more prior to the Closing. In addition,
    the Company shall provide such cooperation and assistance as Harvest may reasonably require to prepare and complete a business
    acquisition report in respect of the Combination pursuant to Part 8 of National Instrument 51-102 – Continuous Disclosure
    Obligations.

 

	 	(p)	The
    Company shall have delivered consent to assignments and amendment to the Management Services Agreements and Options listed
    in Schedule 10.02(p) of the Company Disclosure Schedules, on such terms and conditions as reasonably approved by Harvest

 

	10.03	Conditions
    to Obligations of the Company

 

The
obligations of the Company to consummate the Transactions contemplated by this Agreement shall be subject to the fulfillment or
the Company’s waiver, at or prior to the Closing, of each of the following conditions:

 

	 	(a)	Each
    of the representations and warranties of Harvest contained in Sections 5.01, 5.07, 5.09, 5.10, 5.11, 5.12, 5.17, 5.24 and
    5.25 (the “Harvest Specified Representations”) shall be true and correct in all material respects as of
    the Closing Date as though made on the Closing Date (except to the extent such representations and warranties expressly relate
    to an earlier date, in which case, they shall be true and correct on and as of such earlier date. Each of the representations
    and warranties of Harvest contained in this Agreement (other than the Harvest Specified Representations) shall be true and
    correct as of the Closing Date as though made on the Closing Date (except to the extent such representations and warranties
    expressly relate to an earlier date, in which case, they shall be true and correct on and as of such earlier date), except,
    in either case, where the failure of such representations and warranties to be so true and correct would not have a Harvest
    Material Adverse Effect.

 

    	 	-109-	 

     

    

 

	 	(b)	Each
    of the representations and warranties of Newco contained in Article 7 shall be true and correct as of the Closing Date as
    though made on the Closing Date (except to the extent such representations and warranties expressly relate to an earlier date,
    in which case, they shall be true and correct on and as of such earlier date).

 

	 	(c)	Harvest
    shall have duly performed and complied with all agreements, covenants and conditions required by this Agreement to be performed
    or complied with by it prior to or on the Closing Date.

 

	 	(d)	Newco
    shall have duly performed and complied with all agreements, covenants and conditions required by this Agreement to be performed
    or complied with by it prior to or on the Closing Date.

 

	 	(e)	All
    Required Regulatory Approvals and all approvals, consents and waivers that are listed in Section 10.03(e) of the Harvest Disclosure
    Schedules shall have been received, and executed counterparts thereof shall have been delivered to the Company at or prior
    to the Closing, save and except for those approvals, consents or waivers which cannot be obtained due to a change in Law.

 

	 	(f)	Harvest
    and Newco, as applicable, shall have delivered to the Company and ParentCo each of the documents referred to in Section 2.10(d)
    and Section 2.10(e).

 

	 	(g)	The
    Company shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Harvest, that
    each of the conditions set forth in Section 10.03(a) and Section 10.03(c) have been satisfied.

 

	 	(h)	The
    Company shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Newco, that each
    of the conditions set forth in Section 10.03(b) and Section 10.03(d) have been satisfied.

 

	 	(i)	From
    the date of this Agreement, there shall not have occurred any Harvest Material Adverse Effect, nor shall any event or events
    have occurred that, individually or in the aggregate, with or without the lapse of time, would result in a Harvest Material
    Adverse Effect.

 

	10.04	Conditions
    to Obligations of ParentCo

 

The
obligations of ParentCo to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or ParentCo’s
waiver, at or prior to the Closing, of each of the following conditions:

 

	 	(a)	Each
    of the Harvest Specified Representations shall be true and correct in all material respects as of the Closing Date as though
    made on the Closing Date (except to the extent such representations and warranties expressly relate to an earlier date, in
    which case, they shall be true and correct on and as of such earlier date. Each of the representations and warranties of Harvest
    contained in this Agreement (other than the Harvest Specified Representations) shall be true and correct as of the Closing
    Date as though made on the Closing Date (except to the extent such representations and warranties expressly relate to an earlier
    date, in which case, they shall be true and correct on and as of such earlier date), except, in either case, where the failure
    of such representations and warranties to be so true and correct would not a Harvest Material Adverse Effect.

 

    	 	-110-	 

     

    

 

	 	(b)	Harvest
    shall have duly performed and complied with all agreements, covenants and conditions required by this Agreement to be performed
    or complied with by it or them prior to or on the Closing Date.

 

	 	(c)	Newco
    shall have duly performed and complied with all agreements, covenants and conditions required by this Agreement to be performed
    or complied with by it or them prior to or on the Closing Date.

 

	10.05	Change
    in Law

 

Notwithstanding
anything to the contrary, the inability of the Company to transfer any Key License or enter into a commercial agreement relating
to any Company Cannabis Permit or any loss or divestiture of any Company Cannabis Permit, including a Key License, as a result
of (i) any act taken by Harvest including the acquisition, directly or indirectly of any Permit from a third party, or (ii) as
a result of a change in Law, shall not be deemed to constitute a failure or non-fulfillment of any condition set out in this Article
10 or breach of any representation and warranty of the Company.

 

ARTICLE
11 

SURVIVAL
& INDEMNIFICATION

 

	11.01	Survival

 

Subject
to the limitations and other provisions of this Agreement, the representations and warranties contained herein (other than any
representations or warranties contained in Section 4.21 which are subject to Article 9) shall survive the Closing and shall remain
in full force and effect until the date that is 12 months from the Closing Date. All covenants and agreements of the Parties contained
herein shall survive the Closing for the period explicitly specified herein. Notwithstanding the foregoing, any claims for which
Losses have been incurred that is asserted in good faith with reasonable specificity (to the extent known at such time) and in
writing by notice from the non-breaching Party to the breaching Party prior to the expiration date of the applicable survival
period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive
until finally resolved.

 

	11.02	Indemnification
    By Company Arrangement Participants

 

For
a period of 12 months after the Closing and subject to the other terms and conditions of this Article 11, the Company Unit Holders
and the Qualified Holdco Shareholders who received Arrangement Consideration Shares pursuant to the Arrangement jointly shall
indemnify and defend each of the Resulting Issuer and its Affiliates and their respective Representatives (collectively, the “Buyer
Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them
for, any and all Losses incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, with respect
to or by reason of:

 

	 	(a)	any
    inaccuracy in or breach of any of the representations or warranties of the Company or ParentCo contained in this Agreement,
    the Transaction Documents to which the Company or ParentCo is a party, or in any certificate delivered by the Company or ParentCo
    pursuant to this Agreement at the Closing, in each case without regard to any materiality qualifier contained in such representations
    or warranties, except as provided below;

 

	 	(b)	any
    breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Company or ParentCo contained in
    this Agreement; or

 

    	 	-111-	 

     

    

 

	 	(c)	any
    Actions against the Company or any Company Subsidiary, or affecting any of their respective property or assets (whether owned
    or leased), at law or in equity, that arise out of or are based on any event, fact, condition or change that occurred or was
    in existence prior to the Closing, that has been judicially determined by final non-appealable order issued by a court of
    competent jurisdiction and such award or judgment individually or in the aggregate is in excess of $5,000,000.

 

For
purposes of determining the indemnification obligations of the Company Unit Holders and the Qualified Holdco Shareholders pursuant
to Section 11.02(a), materiality qualifiers shall not be disregarded, and shall be given effect, with respect to the representations
and warranties contained in each of Sections 4.06, 4.09(a), 4.12(f), 4.17(b), 4.19(b) and 4.28(h).

 

	11.03	Indemnification
    By Harvest

 

For
a period of 12 months after the Closing and subject to the other terms and conditions of this Article 11, Harvest and the Resulting
Issuer jointly shall indemnify and defend each Company Arrangement Participant and their Affiliates and their respective Representatives
(collectively, the “Company Arrangement Participant Indemnitees”) against, and shall hold each of them harmless
from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon,
the Company Arrangement Participant Indemnitees based upon, arising out of, with respect to or by reason of:

 

	 	(a)	any
    inaccuracy in or breach of any of the representations or warranties of Harvest or Newco contained in this Agreement, the Transaction
    Documents to which either Harvest or Newco, as applicable, are a party, or in any certificate delivered by either of them
    pursuant to this Agreement at the Closing, in each case without regard to any materiality qualifier contained in such representation
    or warrant, except as provided below; or

 

	 	(b)	any
    breach or non-fulfillment of any covenant, agreement or obligation to be performed by Harvest or Newco contained in this Agreement.

 

For
purposes of determining the indemnification obligations of Harvest and the Resulting Issuer pursuant to Section 11.03(a), materiality
qualifiers shall not be disregarded, and shall be given effect, with respect to the representations and warranties contained in
Sections 5.11 and Section 5.17(b).

 

	11.04	Indemnification
    Procedures

 

The
Party making a claim under this Article 11 is referred to as the “Indemnified Party”, and the party against
whom such claims are asserted under this Article 11 is referred to as the “Indemnifying Party”. For the sake
of clarity, the Company Representative shall be such party in the event a Company Arrangement Participant is the Indemnifying
Party.

 

	 	(a)	If
    any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is
    not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing (a “Third-Party
    Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification
    under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but
    in any event not later than twenty calendar days after receipt of such notice of such Third-Party Claim. The failure to give
    such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and
    only to the extent that the Indemnifying Party is harmed by reason of such failure. Such notice by the Indemnified Party shall
    describe the Third-Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall
    indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified
    Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party,
    to assume the defense of any Third-Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s
    own counsel, and the Indemnified Party shall cooperate in good faith in such defense; provided, that if the Indemnifying Party
    is a Company Arrangement Participant, such Indemnifying Party shall not have the right to defend or direct the defense of
    any such Third-Party Claim that seeks an injunction or other equitable relief against the Indemnified Party. In the event
    that the Indemnifying Party assumes the defense of any Third-Party Claim, subject to Section 11.04(b), it shall have the right
    to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third-Party
    Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the
    defense of any Third- Party Claim with counsel selected by it subject to the Indemnifying Party’s right to control the
    defense thereof. If the Indemnifying Party (i) does not have the right to, or elects not to, compromise or defend such Third-Party
    Claim, (ii) fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement,
    or (iii) fails to diligently prosecute the defense of such Third-Party Claim, then in any case the Indemnified Party may,
    subject to Section 11.04(b), pay, compromise, defend such Third- Party Claim and seek indemnification for any and all Losses
    based upon, arising from or relating to such Third-Party Claim. The Company Representative and ParentCo shall cooperate with
    each other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available
    records relating to such Third-Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket
    expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation
    of the defense of such Third-Party Claim.

 

    	 	-112-	 

     

    

 

	 	(b)	Notwithstanding
    any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third-Party Claim without
    the prior written consent of the Indemnified Party, except as provided in this Section 11.04(b). If a firm offer is made to
    settle a Third-Party Claim without leading to liability or the creation of a financial or other obligation on the part of
    the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities
    and obligations in connection with such Third-Party Claim and the Indemnifying Party desires to accept and agree to such offer,
    the Indemnifying Party shall give written notice to that effect to the Indemnified Party. Within ten days after its receipt
    of such notice, the Indemnified Party may reject such firm offer and continue to contest or defend such Third-Party Claim
    on its own behalf and in such event, the maximum liability of the Indemnifying Party as to such Third-Party Claim shall not
    exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to
    assume defense of such Third- Party Claim, then the Indemnifying Party may settle the Third-Party Claim upon the terms set
    forth in such firm offer to settle such Third-Party Claim. If the Indemnified Party has assumed the defense pursuant to this
    Section 11.04(a), it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent
    shall not be unreasonably withheld or delayed).

 

	 	(c)	Any
    Action by an Indemnified Party on account of a Loss which does not result from a Third-Party Claim (a “Direct Claim”)
    shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in
    any event not later than twenty calendar days after the Indemnified Party becomes aware of such Direct Claim.The failure to
    give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except
    and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the
    Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence
    thereof and shall indicate the Loss incurred and the estimated amount, if reasonably practicable, of any future Loss that
    may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 calendar days after its receipt of such notice
    to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional
    advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent
    any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party’s
    investigation by giving such information and assistance (including access to the Companies’ premises and Personnel and
    the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors
    may reasonably request. If the Indemnifying Party does not so respond within such 30-day period, the Indemnifying Party shall
    be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be
    available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

 

	 	(d)	Notwithstanding
    any other provision of this Agreement, the control of any claim, assertion, event or proceeding in respect of Taxes of the
    Companies (including, but not limited to, any such claim in respect of a breach of the representations and warranties in Section
    4.21 or any breach or violation of or failure to fully perform any covenant, agreement, undertaking or obligation in Article
    9) shall be governed exclusively by Article 9 hereof.

 

	11.05	Distributions
    from Escrow Fund

 

In
the event that (a) the Company Representative shall not have objected to the amount claimed by any Buyer Indemnitee for indemnification
with respect to any Loss in accordance with the procedures set forth in the Escrow Agreement or (b) the Company Representative
shall have delivered notice of its disagreement as to the amount of any indemnification requested by any such Buyer Indemnitee
either (i) the Company Representative and the Resulting Issuer have, subsequent to the giving of such notice, mutually agreed
in writing that the Company Arrangement Participants are obligated to indemnify the Buyer Indemnitee for a specified amount and
shall have so jointly notified the Escrow Agent in writing or (ii) a final, non- appealable judgment shall have been rendered
by the court having jurisdiction over the matters relating to such claim by the Resulting Issuer for indemnification from the
Company Arrangement Participants, and the Escrow Agent shall have received, in the case of clause (i) above, joint written instructions
from the Company Representative and the Resulting Issuer or, in the case of clause (ii) above, a copy of the final, non-appealable
judgment of the court, the Escrow Agent shall deliver to ParentCo from the Escrow Account such number of Escrow Shares determined
to be owed to the Buyer Indemnitees under this Article 11 in accordance with the Escrow Agreement. All Escrow Shares remaining
with the Escrow Agent as of the date that is one year following the Closing Date, other than such number of Escrow Shares which
are reasonably required to satisfy any outstanding and unresolved properly made indemnity claims by any Buyer Indemnitee, shall
be released to the Company Representative as set forth in Section 2.11 and in accordance with the terms of the Escrow Agreement
for the account of the Company Arrangement Participants. Harvest agrees that all Escrow Shares to be released to Company Arrangement
Participants pursuant to the Escrow Agreement shall be released to the Resulting Issuer’s transfer agent, for further distribution
to the Company Arrangement Participants.

 

    	 	-113-	 

     

    

 

	11.06	Certain
    Limitations

 

The
indemnification provided for in Section 11.02 or Section 11.03 shall be subject to the following limitations:

 

	 	(a)	Notwithstanding
    anything contained herein to the contrary, no Buyer Indemnitee shall be entitled to indemnification with respect to claims
    made pursuant to clauses (a) or (b) of Section 11.02 unless and until Losses in an aggregate amount of $6,500,000 (the “Aggregate
    Threshold”) have been suffered or incurred by all Buyer Indemnitees under such clauses, in which case the Buyer
    Indemnitees will be entitled to indemnification for all Losses under such clauses (a) and (b) from the first dollar in excess
    of the Aggregate Threshold.

 

	 	(b)	Any
    and all Losses for which the Buyer Indemnitees are entitled to indemnification pursuant to this Agreement shall be satisfied
    solely from the release of Escrow Shares, which are the sole source of recovery for any indemnity claims by the Buyer Indemnitees.
    The number of Escrow Shares used to satisfy an indemnification claim made by a Buyer Indemnitee shall be calculated based
    upon the five-day volume weighted average price of the Subordinate Voting Shares determined as of the last Business Day immediately
    prior to the Closing Date (the “Per Share Value”).

 

	 	(c)	Any
    claims for Losses caused by Actual Fraud may be asserted by an Indemnified Party solely against the Person that committed
    such Actual Fraud without regard to the limitations set forth in this Section 11.06.

 

	 	(d)	Notwithstanding
    anything contained herein to the contrary, no Buyer Indemnitee shall be entitled to indemnification with respect to any claim
    made pursuant to Section 11.02(a) based upon, arising out of, with respect to or by reason of any inaccuracy in or breach
    of any of the representations or warranties of the Company contained in Section 4.28 with respect to a specific Acquisition
    Target unless such Buyer Indemnitee has first taken all commercially reasonable steps to recover any Losses related to such
    claim from the seller(s) of such Acquisition Target and to enforce the indemnification rights of the Company and the Company
    Subsidiaries under the definitive acquisition documents for the Pipeline Binding Acquisition of such Acquisition Target, and
    only after such Buyer Indemnitee has taken all commercially reasonable steps to mitigate any Losses upon becoming aware of
    any event or circumstance that would be reasonably expected to, or does, give rise thereto.

 

	11.07	Payments

 

Once
a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this Article 11, the Indemnifying
Party shall satisfy its obligations within fifteen (15) Business Days of such final, non-appealable adjudication by wire transfer
of immediately available funds. The Parties agree that should an Indemnifying Party not make full payment of any such obligations
within such fifteen (15) Business Day period, any amount payable shall accrue interest from and including the date of agreement
of the Indemnifying Party or final, non-appealable adjudication to and including the date such payment has been made at a rate
per annum equal to 15%. Such interest shall be calculated daily on the basis of a 365- day year and the actual number of days
elapsed. In the event the Indemnifying Party is a Company Arrangement Participant, the Resulting Issuer shall first satisfy such
indemnity obligations through the Escrow Shares which shall be valued based on the Per Share Value. In the event the Escrow Shares
are not available or insufficient to satisfy such indemnity obligations, the Indemnified Party shall look directly to the Indemnifying
Party for satisfaction of such indemnity obligations.

 

    	 	-114-	 

     

    

 

	11.08	Non-Recourse
    Parties

 

This
Agreement may only be enforced against the named Parties and their respective successors and assigns (subject to the terms, conditions
and other limitations set forth herein). Following the Closing, (a) all claims or Actions that may be based upon, arise out of
or relate to this Agreement, or the negotiation, execution or performance of this Agreement may be made only against the Persons
that are expressly identified as parties hereto and their successors and assigns and (b) except as expressly provided hereunder,
no Person who is not a named party to this Agreement including, without limitation, any director, officer, employee, incorporator,
member, partner, stockholder, Affiliate, agent, attorney or representative of any named Party to this Agreement, including any
Person negotiating or executing this Agreement on behalf of a Party (each, a “Non-Recourse Party”) shall have
any liability or obligation with respect to this Agreement or with respect to any claim or cause of action that may arise out
of or relate to this Agreement, or the negotiation, execution or performance of this Agreement. Each Non-Recourse Party is expressly
intended as a third- party beneficiary of this provision of this Agreement.

 

	11.09	Disclaimer
    of Additional Representations and Warranties

 

Each
Party acknowledges and agrees that, except for the representations, warranties and agreements expressly set forth in this Agreement,
as qualified by the Company Disclosure Schedules and the Harvest Disclosure Schedule, as applicable, such Party is not relying
on any other representation or warranty, express or implied, at Law or in equity, with respect to the matters contained herein.

 

	11.10	Tax
    Treatment of Indemnification Payments

 

All
indemnification payments made under this Agreement shall be treated by the Parties as an adjustment to the total consideration
received by each of the parties pursuant to the Transactions for Tax purposes, unless otherwise required by Law.

 

	11.11	Effect
    of Investigation

 

The
representations, warranties and covenants of the Indemnifying Party, and the Indemnified Party’s right to indemnification
with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of the Indemnified
Party (including by any of its Representatives) or by reason of the fact that the Indemnified Party or any of its Representatives
knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason of the Indemnified
Party’s waiver of any condition set forth in Section 10.02, Section 10.03 or Section 10.04, as the case may be.

 

	11.12	Exclusive
    Remedies

 

The
Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other than claims against
a Person to the extent arising from Actual Fraud) relating (directly or indirectly) to any representation, warranty, covenant,
agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement or the Transactions shall
be pursuant to the indemnification provisions set forth in Article 9 and Article 11, regardless of the legal theory under which
such liability or obligation may be sought to be imposed, whether sounding in contract or tort, or whether at Law or in equity,
or otherwise. Except as set forth in Section 2.11, no Person (including the Company Arrangement Participants and their Non-Recourse
Parties) shall have any obligation to fund any escrow account. The provisions in this Agreement relating to indemnification, and
the limits imposed on the Buyer Indemnitees’ remedies with respect to this Agreement and the Transactions were specifically
bargained for between sophisticated parties and were specifically taken into account in the determination of the amounts to be
paid to the Company Arrangement Participants hereunder. No Indemnified Party may avoid the limitations on liability set forth
in this Agreement by seeking damages for breach of contract, tort or pursuant to any other theory of liability. Nothing in this
Section 11.12 shall limit the rights of a Party to seek specific performance of the other Parties’ obligations hereunder
in accordance with this Agreement or limit a Party’s right to bring a claim for Actual Fraud.

 

    	 	-115-	 

     

    

 

ARTICLE
12 

TERMINATION

 

	12.01	Termination

 

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

 

	 	(a)	by
    the mutual written consent of the Company and Harvest;

 

	 	(b)	by
    Harvest by written notice to ParentCo and the Company, if Harvest is not then in material breach of any provision of this
    Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement
    made by the Company pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Article
    10 and such breach, inaccuracy or failure has not been cured by the Company within ten days of the Company’s receipt
    of written notice of such breach from ParentCo or Harvest;

 

	 	(c)	by
    the Company by written notice to ParentCo and Harvest, if the Company is not then in material breach of any provision of this
    Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement
    made by Harvest pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Article
    10 and such breach, inaccuracy or failure has not been cured by Harvest within ten days of receipt of written notice of such
    breach from the Company;

 

	 	(d)	by
    any of ParentCo, Harvest or the Company in the event that (i) there shall be any Law that makes consummation of the Transactions
    illegal or otherwise prohibited or (ii) any Governmental Authority shall have issued a Governmental Order restraining or enjoining
    the Transactions, and such Governmental Order shall have become final and non- appealable, other than as a result of any act
    taken by Harvest or any change in Law;

 

	 	(e)	by
    Harvest if holders of more than 5% of the Unit Exchange Shares have exercised ParentCo Dissent Rights;

 

	 	(f)	by
    the Company or Harvest if:

 

	 	(i)	prior
    to the Effective Time: (1) the Company Board fails to recommend or withdraws, amends, modifies or qualifies, in a manner adverse
    to Harvest, or fails to publicly reaffirm its recommendation of the Transactions within three (3) calendar days (and in any
    case prior to the ParentCo Meeting) after having been requested in writing by Harvest, to do so (a “Company Change
    in Recommendation”); or (2) the Company Board shall have approved or recommended any Company Acquisition Proposal;
    or

 

    	 	-116-	 

     

    

 

	 	(ii)	Harvest
    has been notified in writing by the Company that the Company Board has authorized the Company to enter into a Company Proposed
    Agreement in accordance with Section 8.21(e), and either: (A) Harvest does not deliver an amended Transactions proposal within
    five (5) Business Days of delivery of the Company Proposed Agreement to Harvest; or (B) Harvest delivers an amended Transactions
    proposal pursuant to Section 8.21(f) but the Company Board determines following the conclusion of such five (5) Business Day
    period, acting in good faith and in the proper discharge of its fiduciary duties following advice of outside legal counsel
    and financial advisors, that the Company Acquisition Proposal provided in the Company Proposed Agreement continues to be a
    Company Superior Proposal in comparison to the amended Transactions terms offered by Harvest;

 

provided
that no termination under this Section 12.01(f) shall be effective unless and until the Company shall have paid to Harvest the
Termination Fee by wire transfer of immediately available funds;

 

	 	(g)	by
    the Company or Harvest if:

 

	 	(i)	prior
    to the Effective Time: (1) the Harvest Board fails to recommend or withdraws, amends, modifies or qualifies, in a manner adverse
    to the Company, or fails to publicly reaffirm its recommendation of the Combination within three (3) calendar days (and in
    any case prior to the Harvest Meeting) after having been requested in writing by the Company, to do so (a “Harvest
    Change in Recommendation”); or (2) the Harvest Board shall have approved or recommended any Harvest Acquisition
    Proposal; or

 

	 	(ii)	the
    Company has been notified in writing by Harvest that the Harvest Board has authorized Harvest to enter into a Harvest Proposed
    Agreement in accordance with Section 8.22(e), and either: (A) the Company does not deliver an amended Transactions proposal
    within five (5) Business Days of delivery of the Harvest Proposed Agreement to the Company; or (B) the Company delivers an
    amended Transactions proposal pursuant to Section 8.22(f) but the Harvest Board determines following the conclusion of such
    five (5) Business Day period, acting in good faith and in the proper discharge of its fiduciary duties following advice of
    outside legal counsel and financial advisors, that the Harvest Acquisition Proposal provided in the Harvest Proposed Agreement
    continues to be a Harvest Superior Proposal in comparison to the amended Transactions terms offered by the Company;
	 	 	 
	 	provided
    that no termination under this Section 12.01(g) shall be effective unless and until Harvest shall have paid to the Company
    the Termination Fee by wire transfer of immediately available funds;

 

	 	(h)	by
    the Company or Harvest if the condition set out in Section 10.01(a) is not satisfied, in which case the Company shall concurrently
    pay to Harvest the Termination Fee by wire transfer of immediately available funds;

 

	 	(i)	by
    the Company or Harvest if the condition set out in Section 10.01(b) is not satisfied, in which case Harvest shall concurrently
    pay to the Company the Termination Fee by wire transfer of immediately available funds; or

 

    	 	-117-	 

     

    

 

	 	(j)	if
    the Arrangement has not been consummated on or before the Outside Date; provided, however, that the right to terminate
    this Agreement pursuant to this Section 12.01(k) shall not be available to any Party whose breach of any representation, warranty,
    covenant, or agreement set forth in this Agreement has been the primary cause of, or resulted in, the failure of the Arrangement
    to be consummated on or before the such specified date.

 

	12.02	Notice
    of Termination

 

A
terminating Party will provide written notice of termination of this Agreement to the other Parties specifying with particularity
the reason for such termination (including the provision or provisions of this Agreement pursuant to which such terminated is
to be effected). If more than one provision of Section 12.01 is available to a terminating Party in connection with a termination
of this Agreement, a terminating Party may rely on any available provisions in Section 12.01 for any such termination, whether
or not to the exclusion of other available provisions in Section 12.01.

 

	12.03	Effect
    of Termination

 

In
the event of the termination of this Agreement in accordance with this Article 12, this Agreement shall forthwith become void
and there shall be no liability on the part of any Party except:

 

	 	(a)	as
    set forth in this Article 12 and Article 13; and

 

	 	(b)	that
    nothing herein shall relieve any Party from liability for any Actual Fraud or willful and intentional breach of any provision
    hereof.

 

ARTICLE
13

MISCELLANEOUS

 

	13.01	Waiver

 

Any
Party to this Agreement may, at any time prior to the Closing, by action taken by its general partner, board of directors, board
of managers or officers thereunto duly authorized, waive any of the terms or conditions of this Agreement or agree to an amendment
or modification to this Agreement in the manner contemplated by Section 13.10 and by an agreement in writing executed in the same
manner (but not necessarily by the same Persons) as this Agreement.

 

	13.02	Expenses

 

Except
as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees and disbursements of counsel,
financial advisors and accountants, incurred in connection with this Agreement and the Transactions shall be paid by the Party
incurring such costs and expenses, whether or not the Closing shall have occurred.

 

	13.03	Notices

 

All
notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document
(with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent
after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or
at such other address for a party as shall be specified in a notice given in accordance with this Section 13.03):

 

	If
    to the Company:	Verano
    Holdings, LLC
	 	415
                                         North Dearborn Street, 4th

        Floor
        Chicago, Illinois 60654

	 	 
	 	E-mail:
    [***]
	 	 
	 	Attention:
    George Archos 

 

    	 	-118-	 

     

    

 

	If
    to the Company Representative:	George
    Archos
	 	415
                                         North Dearborn Street, 4th

        Floor
        Chicago, Illinois 60654

	 	 
	 	E-mail:
    [***]
	 	 
	 	Attention:
    George Archos 
	 	 
	If
    to Harvest or Newco:	Harvest
    Health & Recreation Inc.
	 	Suite
                                         201, 1155 West Rio Salado Parkway

        Tempe,
        Arizona 85281

	 	 
	 	E-mail:
    [***]
	 	Attention:
    Jason Vedadi
	 	 
	If
    to ParentCo:	1204899
    B.C. Ltd.
	 	550
                                         Burrard Street, Suite 2900 Vancouver,

        British
        Columbia V6C 0A3

	 	 
	 	E-mail:
    [***]
	 	Attention:
    George Archos

 

	13.04	Interpretation

 

For
purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed
to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words
“herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this
Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules
and Schedules mean the Articles and Sections of, and Disclosure Schedules and Schedules attached to, this Agreement; (y) to an
agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified
from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time
to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed
without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or
causing any instrument to be drafted. The Schedules, the Company Disclosure Schedules and the Harvest Disclosure Schedules referred
to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim
herein.

 

    	 	-119-	 

     

    

 

	13.05	Headings

 

The
headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

	13.06	Severability

 

If
any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such
term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the Parties shall negotiate in good faith to modify this Agreement so as to affect the original intent of the parties as closely
as possible in a mutually acceptable manner in order that the Transactions be consummated as originally contemplated to the greatest
extent possible.

 

	13.07	Entire
    Agreement

 

This
Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained
herein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such
subject matter. In the event of any inconsistency between the statements in the body of this Agreement, the Schedules, the Company
Disclosure Schedules and the Harvest Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure
Schedules), the statements in the body of this Agreement will control. The Recitals to this Agreement are hereby incorporated
into this Agreement.

 

	13.08	Successors
    and Assigns

 

This
Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.
No Party may assign its rights or obligations hereunder without the prior written consent of the other Parties, which consent
shall not be unreasonably withheld or delayed; provided, however, that (i) prior to the Closing Date, Harvest may, without the
prior written consent of the other Parties, assign all or any portion of its rights under this Agreement to one or more of its
Affiliates, and (ii) at the effective time of the ParentCo Amalgamation, any rights and obligations of ParentCo shall, pursuant
to the Arrangement, be assigned to and assumed by the Resulting Issuer without any requirement for consent of the other Parties.

 

	13.09	No
    Third-Party Beneficiaries

 

Except
as provided in Article 11, this Agreement is for the sole benefit of the Parties and their respective successors and permitted
assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable
right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

	13.10	Amendment
    and Modification; Waiver

 

This
Agreement may only be amended, modified or supplemented by an agreement in writing signed by each Party. No waiver by any Party
of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving.
No waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified
by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure
to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy, power or privilege. Notwithstanding the foregoing,
subject to applicable Law, the Interim Order and the Final Order, the Plan of Arrangement may be amended without the consent of
all of the Parties (i) if such amendment is agreed to in writing by Harvest and the Company, each acting reasonably, or (ii) to
the extent permitted under the Plan of Arrangement or the Interim Order or Final Order.

 

    	 	-120-	 

     

    

 

	13.11	Severability

 

If
any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement shall remain in full force and effect. The Parties further agree that if any provision contained herein is,
to any extent, held invalid or unenforceable in any respect under the Laws governing this Agreement, they shall take any actions
necessary to render the remaining provisions of this Agreement valid and enforceable to the fullest extent permitted by Law and,
to the extent necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein that is held
invalid or unenforceable with a valid and enforceable provision giving effect to the intent of the Parties.

 

	13.12	Governing
    Law; Submission to Jurisdiction; Waiver of Jury Trial

 

	 	(a)	This
    Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia without giving
    effect to any choice or conflict of law provision or rule (whether of British Columbia or any other jurisdiction).

 

	 	(b)	Each
    of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
    of the British Columbia court and any appellate court from any thereof, in any action or proceeding arising out of or relating
    to this Agreement or the Transactions or for recognition or enforcement of any judgment relating thereto, and each of the
    parties hereby irrevocably and unconditionally (a) agrees not to commence any such action or proceeding except in the British
    Columbia court, (b) agrees that any claim in respect of any such action or proceeding may be heard and determined in the British
    Columbia court and any appellate court from any thereof, (c) waives, to the fullest extent it may legally and effectively
    do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding in the British
    Columbia court, and (d) waives, to the fullest extent it may legally and effectively do so, the defense of an inconvenient
    forum to the maintenance of such action or proceeding in the British Columbia court.

 

	13.13	Specific
    Performance

 

The
Parties agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur
in the event that the parties do not perform their obligations under the provisions of this Agreement (including failing to take
such actions as are required of them hereunder to consummate this Agreement) in accordance with its specified terms or otherwise
breach such provisions. The Parties acknowledge and agree that the Parties shall be entitled to seek an injunction, specific performance,
or other equitable relief, to prevent breaches of this Agreement and to seek to enforce specifically the terms and provisions
hereof, without proof of damages, prior to the valid termination of this Agreement in accordance with Section 12.01, this being
in addition to any other remedy to which they are entitled under this Agreement. The Parties agree that Harvest’s stock
price or financial metrics of Harvest or any of its Affiliates prior to the Closing shall not affect the Parties’ obligation
to perform its respective obligations pursuant to this Agreement.

 

	13.14	Counterparts

 

This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	-121-	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their
respective officers (as applicable) thereunto duly authorized.

 

	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	 
	 	By:	“Jason
    Vedadi”
	 	Name:	Jason
    Vedadi
	 	Title:	Executive
    Chairman
	 	 	 
	 	VERANO
    HOLDINGS, LLC
	 	 	 
	 	By:	“George
    Archos”
	 	Name:	George
    Archos
	 	Title:	CEO
    & Chairman
	 	 	 
	 	1204899
    B.C. LTD.
	 	 	 
	 	By:	“George
    Archos”
	 	Name:	George
    Archos
	 	Title:	Director
	 	 	 
	 	1204599
    B.C. LTD.
	 	 	 
	 	By:	“Jason
    Vedadi”
	 	Name:	Jason
    Vedadi
	 	Title:	Director

 

[Signature
page to Business Combination Agreement]

 

    	 	 	 

     

    

 

SCHEDULE
“A”

 

PLAN
OF ARRANGEMENT

 

PLAN
OF ARRANGEMENT UNDER DIVISION 5 OF PART 9 OF THE BUSINESS CORPORATIONS ACT (BRITISH COLUMBIA0

 

ARTICLE
1 DEFINITIONS AND INTERPRETATION

 

	1.1	Definitions.

 

In
this Plan of Arrangement, unless indicated otherwise, the following terms shall have the following meanings:

 

“Arrangement”
means the arrangement under Section 288 of the BCBCA on the terms and subject to the conditions set out in this Plan of Arrangement,
subject to any amendments or variations thereto made in accordance with the Business Combination Agreement, Section 6.1 of this
Plan of Arrangement or made at the direction of the Court in the Final Order;

 

“Arrangement
Consideration Shares” means the Resulting Issuer Shares to be issued:

 

	 	(a)	to
    the Participating ParentCo Shareholders and the Newco Shareholder pursuant to the ParentCo Amalgamation in Section 3.2(f);
    and

 

	 	(b)	to
    Participating Harvest Shareholders pursuant to the Harvest Exchange in Section 3.2(i);

 

“Arrangement
Consideration Shares Recipients” means the Participating ParentCo Shareholders, the Newco Shareholder and the Participating
Harvest Shareholders;

 

“Arrangement
Filings” means the records and information required to be filed with the Registrar under Section 292(a) of the BCBCA
in respect of the Arrangement, together with a copy of the Final Order;

 

“Arrangement
Issued Securities” means all securities to be issued pursuant to the Arrangement;

 

“BCBCA”
means the Business Corporations Act (British Columbia), including all regulations made thereunder, as promulgated or amended
from time to time;

 

“Business
Combination Agreement” means the business combination agreement dated as of April 22, 2019 between Harvest, Verano,
ParentCo and Newco, as the same may be amended, amended and restated or supplemented from time to time in accordance with its
terms;

 

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

 

“Company
U.S. Merger” has the meaning ascribed to such term in the Business Combination Agreement;

 

    	 	A-1	 

     

    

 

“Depositary”
means ●, appointed to act as depositary for the purpose of, among other things, exchanging certificates representing Harvest
Shares for Arrangement Consideration Shares in connection with the Arrangement;

 

“Effective
Date” means the date on which the Arrangement Filings are filed with the Registrar in accordance with the terms of the
Business Combination Agreement;

 

“Effective
Time” means 10:00 a.m. (Vancouver time) on the Effective Date, or such other time on the Effective Date as the Parties
may agree to in writing; provided that, notwithstanding the foregoing, the Effective Time shall not occur until after the
completion of the Pre-Arrangement Transactions;

 

“Electing
Qualified Holdco Shareholders” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Escrow
Agent” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Escrow
Agreement” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Escrow
Shares” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Final
Order” means the final order of the Court pursuant to Section 291 of the BCBCA approving the Arrangement, in a form
to acceptable to Harvest and ParentCo, each acting reasonably, as such order may be amended in accordance with the Business Combination
Agreement at any time prior to the Effective Date or, if appealed, then unless such appeal is withdrawn or denied, as affirmed
or amended on appeal;

 

“Governmental
Entity” means (i) any applicable multinational, federal, provincial, state, regional, local or other government, governmental
or public department, central bank, court, tribunal, arbitral body, commission, board, bureau or agency, whether domestic or foreign,
(ii) any subdivision, agency, commission, board or authority of any of the foregoing, or (iii) any quasi- governmental or private
body exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing;

 

“Harvest”
means Harvest Health & Recreation Inc., a corporation organized under the BCBCA;

 

“Harvest
Arrangement Resolution” means the special resolution approving this Plan of Arrangement to be considered at the Harvest
Meeting, substantially in the form attached as Schedule D to the Business Combination Agreement;

 

“Harvest
Circular” means the notice of the Harvest Meeting and accompanying management information circular, including all schedules,
appendices and exhibits to, and information incorporated by reference in, such management information circular, to be sent to
Harvest Shareholders in connection with the Harvest Meeting, as amended, supplemented or otherwise modified from time to time
in accordance with the terms of the Business Combination Agreement;

 

    	 	A-2	 

     

    

 

“Harvest
Compensation Option Holder” means a holder of one or more Harvest Compensation Options;

 

“Harvest
Compensation Options” means the compensation options to purchase Harvest Subordinate Voting Shares, which are outstanding
immediately prior to the Effective Time;

 

“Harvest
Dissenting Shareholder” means a registered holder of Harvest Shares who dissents in respect of the Harvest Arrangement
Resolution in strict compliance with the Harvest Dissent Rights, and who is ultimately entitled to be paid fair value for their
Harvest Shares;

 

“Harvest
Dissent Rights” has the meaning ascribed to such term in Section 4.1;

 

“Harvest
Equity Incentive Plan” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Harvest
Equity Incentive Plan Resolution” means the ordinary resolution approving the Resulting Issuer Equity Incentive Plan
to be considered at the Harvest Meeting;

 

“Harvest
Exchange” means the exchange by Participating Harvest Shareholders of their Harvest Shares for Resulting Issuer Shares
pursuant to Section 3.2(i);

 

“Harvest
Letter of Transmittal” means the letter of transmittal sent by Harvest to Harvest Shareholders for use in connection
with the Arrangement, providing for the delivery of certificates representing Harvest Shares to the Depositary;

 

“Harvest
Meeting” means the special meeting of Harvest Shareholders, including any adjournment or postponement of such meeting
in accordance with the terms of the Business Combination Agreement, to be called and held in accordance with the Interim Order
to consider the Harvest Arrangement Resolution and the Harvest Equity Incentive Plan Resolution;

 

“Harvest
Multiple Voting Shares” means the shares in the capital of Harvest designated as Multiple Voting Shares, each currently
entitling the holder thereof to one hundred (100) votes per share at shareholder meetings of Harvest;

 

“Harvest
Optionholder” means a holder of Harvest Options;

 

“Harvest
Option In-The-Money-Amount” means, in respect of a Harvest Option, the amount, if any, determined immediately before
the Effective Time, by which the total fair market value of the Harvest Shares that a holder is entitled to acquire on exercise
of the Harvest Option, exceeds the aggregate exercise price to acquire such Harvest Shares at that time;

 

“Harvest
Options” means the options to purchase Harvest Subordinate Voting Shares issued pursuant to the Harvest Equity Incentive
Plan, which are outstanding immediately prior to the Effective Time;

 

“Harvest
Required Shareholder Approval” has the meaning ascribed to such term in the Business Combination Agreement.

 

    	 	A-3	 

     

    

 

“Harvest
Share” means a share in the capital of Harvest, and includes the Harvest Subordinate Voting Shares, the Harvest Multiple
Voting Shares and the Harvest Super Voting Shares;

 

“Harvest
Shareholder” means a registered or beneficial holder of one or more Harvest Shares, as the context requires;

 

“Harvest
Subordinate Voting Shares” means the shares in the capital of Harvest designated as Subordinate Voting Shares, each
entitling the holder thereof to one vote per share at shareholder meetings of Harvest;

 

“Harvest
Super Voting Shares” means the shares in the capital of Harvest designated as Super Voting Shares, each entitling the
holder thereof to two hundred (200) votes per share at shareholder meetings of Harvest;

 

“Initial
ParentCo Shares” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Initial
ParentCo Shareholder” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Initial
ParentCo Share Subscription Price” means $0.01, being the amount paid by the Initial ParentCo Shareholder per Initial
ParentCo Share;

 

“Interim
Order” means the interim order of the Court made pursuant to section 291 of the BCBCA, to be issued following the application
therefor as contemplated by the Business Combination Agreement, providing for, among other things, the calling and holding of
the Harvest Meeting and the ParentCo Meeting, and the obtaining of the Harvest Required Shareholder Approval and the ParentCo
Required Shareholder Approval, as such order may be amended, supplemented or varied by the Court in accordance with the Business
Combination Agreement;

 

“Law”
means, with respect to any Person, any and all applicable law (statutory, common or otherwise), constitution, treaty, convention,
ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement, whether domestic
or foreign, enacted, adopted, promulgated or applied by a Governmental Entity that is legally binding upon such Person or its
business, undertaking, property or securities, and to the extent that they have the force of law, policies, guidelines, notices
and protocols of any Governmental Entity, as amended;

 

“Lien”
means any mortgage, charge, pledge, hypothec, security interest, prior claim, encroachments, option, right of first refusal or
first offer, occupancy right, covenant, assignment, lien (statutory or otherwise), defect of title, or restriction or adverse
right or claim, or other third party interest or encumbrance of any kind, in each case, whether contingent or absolute;

 

“Merger
LLC” means a limited liability company to be formed by ParentCo pursuant to the Laws of the State of Delaware prior
to the Effective Date for the purpose of participating in the Company

U.S.
Merger;

 

“MVS
Conversion Ratio” means the “Conversion Ratio” as defined in the rights and restrictions attached to the
Harvest Multiple Voting Shares in Harvest’s articles and notice of articles, as such Conversion Ratio may be adjusted from
time to time in accordance with the rights and restrictions attached to the Harvest Multiple Voting Shares, which Conversion Ratio
at the date hereof is equal to one hundred (100);

 

    	 	A-4	 

     

    

 

“MVS
Exchange Ratio” means the quotient (rounded to six decimal places) obtained when (i) the SVS Exchange Ratio, is divided
by (ii) the MVS Conversion Ratio, as such MVS Exchange Ratio may be adjusted in accordance with Section 2.13 of the Business Combination
Agreement;

 

“Newco”
means 1204599 B.C. Ltd., a corporation organized under the BCBCA;

 

“Newco
Shareholder” has the meaning ascribed to such term in the Business Combination Agreement;

 

“paid-up
capital” has the meaning ascribed to such term in the Tax Act; “ParentCo” means 1204899 B.C. Ltd.,
a corporation organized under the BCBCA; “ParentCo Amalgamation” has the meaning ascribed to such term in Section
3.2(f).

“ParentCo
Arrangement Resolution” means a special resolution of the ParentCo Shareholders in respect of the Arrangement to be
considered at the ParentCo Meeting, in substantially the form of Schedule E to the Business Combination Agreement;

 

“ParentCo
Circular” has the meaning ascribed to such term in the Business Combination Agreement;

 

“ParentCo
Dissenting Shareholder” means a Person who dissents in respect of the ParentCo Arrangement Resolution in strict compliance
with the ParentCo Dissent Rights, and who is ultimately entitled to be paid fair value for their ParentCo Shares;

 

“ParentCo
Dissent Rights” has the meaning ascribed to such term in the ParentCo Circular;

 

“ParentCo
Equity Incentive Plan Resolution” means the ordinary resolution approving the Resulting Issuer Equity Incentive Plan
to be considered at the ParentCo Meeting;

 

“ParentCo
Letter of Transmittal” means the letter of transmittal sent by ParentCo to ParentCo Prospective Shareholders for use
in connection with the Arrangement;

 

“ParentCo
Meeting” means the special meeting of ParentCo Shareholders, including any adjournment or postponement of such meeting
in accordance with the terms of the Business Combination Agreement, to be called and held in accordance with the Interim Order
to consider the ParentCo Arrangement Resolution and the ParentCo Equity Incentive Plan Resolution;

 

“ParentCo
Multiple Voting Shares” means the shares in the capital of ParentCo designated as Multiple Voting Shares, each currently
entitling the holder thereof to one hundred (100) votes per share at shareholder meetings of ParentCo;

 

    	 	A-5	 

     

    

 

“ParentCo
Prospective Shareholders” means (i) Company Unit Holders who are entitled to receive ParentCo Shares pursuant to the
Unit Exchange, and (ii) Electing Qualified Holdco Shareholders who are entitled to receive ParentCo Shares pursuant to the Qualified
Holdco Exchange;

 

“ParentCo
Required Shareholder Approval” has the meaning ascribed to such term in the Business Combination Agreement;

 

“ParentCo
Shareholders” means the holders of ParentCo Shares;

 

“ParentCo
Shares” means the ParentCo Subordinate Voting Shares, the ParentCo Multiple Voting Shares and the ParentCo Super Voting
Shares;

 

“ParentCo
Subordinate Voting Shares” means the shares in the capital of ParentCo designated as Subordinate Voting Shares, each
currently entitling the holder thereof to one vote per share at shareholder meetings of ParentCo;

 

“ParentCo
Super Voting Shares” means the shares in the capital of ParentCo designated as Super Voting Shares, each currently entitling
the holder thereof to two hundred (200) votes per share at shareholder meetings of ParentCo;

 

“Participating
Harvest Shareholders” means Harvest Shareholders, other than Harvest Dissenting Shareholders, who hold Harvest Shares
immediately prior to the Effective Time;

 

“Participating
ParentCo Shareholders” means ParentCo Shareholders, other than ParentCo Dissenting Shareholders, who hold ParentCo Shares
immediately prior to the Effective Time, and for greater certainty includes ParentCo Shareholders, other than ParentCo Dissenting
Shareholders, who receive or are entitled to receive ParentCo Shares pursuant to the Unit Exchange, the Qualified Holdco Exchange
and the Qualified Pipeline Exchange;

 

“Parties”
means, collectively, Harvest, ParentCo and Newco, and “Party” means any one of them;

 

“Payment
Allocation Schedule” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Person”
means an individual, partnership, association, body corporate, joint venture, business organization, trustee, executor, administrative
legal representative, Governmental Entity or any other entity, whether or not having legal status;

 

“Plan
of Arrangement” means this plan of arrangement and any amendments or variations made in accordance with the Business
Combination Agreement or this Plan of Arrangement, or made at the direction of the Court in the Final Order with the prior written
consent of Harvest and ParentCo, each acting reasonably;

 

“Pre-Arrangement
Transactions” means, collectively, the Company U.S. Merger, the Unit Exchange, the Qualified Holdco Exchange and the
Qualified Pipeline Exchange;

 

“Proscription
Date” has the meaning ascribed to such term in Section 5.2(c);

 

    	 	A-6	 

     

    

 

“Qualified
Holdco Exchange” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Qualified
Pipeline Exchange” has the meaning ascribed to such term in the Business Combination Agreement;

 

“Registrar”
means the person appointed as the Registrar of Companies under Section 400 of the BCBCA;

 

“Replacement
Compensation Option” has the meaning ascribed to such term in Section 3.2(l); “Replacement Option”
has the meaning ascribed to such term in Section 3.2(k);

 

“Replacement
Option In-The-Money Amount” means, in respect of a Replacement Option, the amount, if any, determined immediately after
the exchange in Section 3.2(k), by which the fair market value of the Resulting Issuer Shares that a holder is entitled to acquire
on exercise of the Replacement Option exceeds the aggregate exercise price to acquire such Resulting Issuer Shares at that time;

 

“Resulting
Issuer” has the meaning ascribed to such term in Section 3.2(f); “Resulting Issuer Board Nominees”
means ●, ●, ●, ● and ●;

 

“Resulting
Issuer Arrangement Shares” means the Resulting Issuer Shares to be issued to Participating ParentCo Shareholders pursuant
to the ParentCo Amalgamation;

 

“Resulting
Issuer Exchange Shares” means the Resulting Issuer Shares to be issued to Participating Harvest Shareholders pursuant
to the Harvest Exchange, which shall consist of:

 

	 	(a)	one
    Resulting Issuer Subordinate Voting Share for each Harvest Subordinate Voting Share;

 

	 	(b)	one
    Resulting Issuer Multiple Voting Share for each Harvest Multiple Voting Share; and

 

	 	(c)	one
    Resulting Issuer Super Voting Share for each Harvest Super Voting Share;

 

“Resulting
Issuer Multiple Voting Shares” means the shares in the capital of the Resulting Issuer designated as Multiple Voting
Shares, which shares shall have substantially the same rights and restrictions as the Harvest Multiple Voting Shares immediately
prior to the Effective Time;

 

“Resulting
Issuer Shares” means the Resulting Issuer Subordinate Voting Shares, the Resulting Issuer Multiple Voting Shares and
the Resulting Issuer Super Voting Shares;

 

“Resulting
Issuer Subordinate Voting Shares” means the shares in the capital of the Resulting Issuer designated as Subordinate
Voting Shares, which shares shall have substantially the same rights and restrictions as the Harvest Subordinate Voting Shares
immediately prior to the Effective Time;

 

    	 	A-7	 

     

    

 

“Resulting
Issuer Super Voting Shares” means the shares in the capital of the Resulting Issuer designated as Super Voting Shares,
which shares shall have substantially the same rights and restrictions as the Harvest Super Voting Shares immediately prior to
the Effective Time;

 

“SVS
Exchange Ratio” means 4.7536, as such SVS Exchange Ratio may be adjusted in accordance with Section 2.13 of the Business
Combination Agreement;

 

“Tax
Act” means the Income Tax Act (Canada) and the regulations thereunder, as amended; “TSX” means
the Toronto Stock Exchange;

“United
States” and “U.S.” each mean the United States of America, its territories and possessions, any State
of the United States and the District of Colombia;

 

“Unit
Exchange” has the meaning ascribed to such term in the Business Combination Agreement;

 

“U.S.
Securities Act” means the United States Securities Act of 1933, as amended, supplemented or restated from time
to time and any successor to such statute, and the rules and regulations promulgated thereunder;

 

“U.S.
Tax Code” means the United States Internal Revenue Code of 1986, as amended;

 

“U.S.
Treasury Regulations” means the regulations promulgated under the U.S. Tax Code by the United States Department of the
Treasury;

 

“Verano”
means Verano Holdings, LLC, a limited liability company formed under the laws of the State of Delaware;

 

“Verano
Board” means the board of managers of Verano;

 

“Verano
Operating Agreement” means the limited liability company agreement dated as of August 16, 2018 among Verano and the
Verano Unit Holders governing the operations and management of Verano, as the same may be amended from time to time;

 

“Verano
Unit” has the meaning ascribed to the term “Unit” in the Verano Operating Agreement; and

 

“Verano
Unit Holders” means the holders of Verano Units.

 

Capitalized
words and phrases used herein that are defined in the Business Combination Agreement and not defined herein shall have the same
meaning herein as in the Business Combination Agreement, unless the context otherwise requires.

 

	1.2	Interpretation
    Not Affected By Headings.

 

The
division of this Plan of Arrangement into Articles, Sections, Paragraphs and Subparagraphs and the insertion of headings herein
are for convenience of reference only and shall not affect the construction or interpretation of this Plan of Arrangement. The
terms “this Plan of Arrangement”, “hereof”, “herein”, “hereto”, “hereunder”
and similar expressions refer to this Plan of Arrangement and not to any particular Article, Section or other portion hereof and
include any instrument supplementary or ancillary hereto.

 

    	 	A-8	 

     

    

 

	1.3	References
    to Articles, Sections, etc.

 

Unless
otherwise indicated, references in this Plan of Arrangement to any Article, Section, Paragraph, Subparagraph or portion thereof
are a reference to the applicable Article, Section, Paragraph, Subparagraph or portion thereof in this Plan of Arrangement.

 

	1.4	Number,
    Gender and Persons.

 

In
this Plan of Arrangement, unless the context otherwise requires, words importing the singular shall include the plural and vice
versa, words importing the use of either gender shall include both genders and neuter and the word person and words importing
persons shall include a natural person, firm, trust, partnership, association, corporation, joint venture or government (including
any governmental agency, political subdivision or instrumentality thereof) and any other entity or group of persons of any kind
or nature whatsoever.

 

	1.5	Date
    for Any Action.

 

In
the event that the date on which any action is required to be taken hereunder by any of the parties is not a Business Day, such
action shall be required to be taken on the next succeeding day which is a Business Day.

 

	1.6	Statutory
    References.

 

Unless
otherwise indicated, references in this Plan of Arrangement to any statute include all regulations made pursuant to such statute
and the provisions of any statute or regulation which amends, supplements or supersedes any such statute or regulation.

 

	1.7	Currency.

 

Unless
otherwise stated, all references to currency herein are expressed in lawful money of Canada, and “$” refers
to Canadian dollars.

 

ARTICLE
2

COMBINATION
AGREEMENT AND BINDING EFFECT

 

	2.1	Business
    Combination Agreement.

 

This
Plan of Arrangement is made pursuant to, and is subject to the provisions of, the Business Combination Agreement, except in respect
of the sequence of the steps comprising the Arrangement, which shall occur in the order set forth herein.

 

	2.2	Binding
    Effect.

 

As
of and from the Effective Time, this Plan of Arrangement will be binding on: (i) Harvest, (ii) ParentCo, (iii) Newco, (iv) the
Depositary, (v) the Escrow Agent, (vi) the Harvest Shareholders (including Dissenting Harvest Shareholders), (vii) all holders
of Harvest Options and Harvest Compensation Options, (viii) the ParentCo Shareholders (including Dissenting ParentCo Shareholders),
(ix) the Initial ParentCo Shareholder, (x) the Newco Shareholder, and (xi) the Arrangement Consideration Shares Recipients, in
each case without any further act or formality required on the part of any Person.

 

 

    	 	A-9	 

     

    

 

	2.3	Effective
    Time of Arrangement.

 

The
exchanges, issuances and cancellations provided for in Section 3.2 shall be deemed to occur at the time and in the order specified
in Section 3.2, notwithstanding that certain of the procedures related thereto are not completed until after such time.

 

ARTICLE
3

ARRANGEMENT

 

	3.1	Preliminary
    Steps to the Arrangement.

 

The
following preliminary steps shall occur prior to, and shall be conditions precedent to, the implementation of the Arrangement:

 

	 	(a)	the
    Qualified Holdco Exchange shall have occurred;

 

	 	(b)	the
    Qualified Pipeline Exchange shall have occurred;

 

	 	(c)	the
    Unit Exchange shall have occurred pursuant to the Company U.S. Merger;

 

	 	(d)	the
    Resulting Issuer Equity Incentive Plan shall have been approved at the ParentCo Meeting and at the Harvest Meeting; and

 

	 	(e)	the
    Resulting Issuer Director Nominees shall have consented to act as directors of the Resulting Issuer in accordance with the
    BCBCA.

 

	3.2	Arrangement.

 

Commencing
at the Effective Time, each of the following events or transactions shall occur and shall be deemed to occur in the following
sequence without any further act or formality on the part of any Person, and in each case, unless otherwise specifically provided
in this Section 3.2, effective as at two-minute intervals starting at the Effective Time:

 

	 	(a)	each
    ParentCo Share held by a ParentCo Dissenting Shareholder shall be, and shall be deemed to be, surrendered to ParentCo by the
    holder thereof, free and clear of all Liens, claims or encumbrances, and each such ParentCo Share so surrendered shall be
    cancelled and thereupon each such ParentCo Dissenting Shareholder shall cease to have any rights as a holder of such ParentCo
    Shares other than a claim against ParentCo in an amount determined and payable in accordance with Article 4, and the name
    of such ParentCo Dissenting Shareholder shall be removed from ParentCo’s central securities register for the ParentCo
    Shares;

 

    	 	A-10	 

     

    

 

	 	(b)	concurrently
    with the surrender and cancellation of ParentCo Shares held by ParentCo Dissenting Shareholders pursuant to Section 3.2(a),
    the capital of the applicable class of ParentCo Shares that includes any ParentCo Shares cancelled pursuant to Section 3.2(a)
    shall be reduced by an amount equal to the product obtained when (A) the capital of the ParentCo Shares of that class immediately
    prior to the Effective Time, is multiplied by (B) a fraction, the numerator of which is the number of ParentCo Shares of that
    class surrendered and cancelled pursuant to Section 3.2(a), and the denominator of which is the number of ParentCo Shares
    of that class outstanding immediately prior to the Effective Time;

 

	 	(c)	each
    Harvest Share held by a Harvest Dissenting Shareholder shall be, and shall be deemed to be, surrendered to Harvest by the
    holder thereof, free and clear of all Liens, claims or encumbrances, and each such Harvest Share so surrendered shall be cancelled
    and thereupon each such Harvest Dissenting Shareholder shall cease to have any rights as a holder of such Harvest Shares other
    than a claim against Harvest in an amount determined and payable in accordance with Article 4, and the name of such Harvest
    Dissenting Shareholder shall be removed from Harvest’s central securities register for the Harvest Shares;

 

	 	(d)	concurrently
    with the surrender and cancellation of Harvest Shares held by Harvest Dissenting Shareholders pursuant to Section 3.2(c),
    the capital of the applicable class of Harvest Shares that includes any Harvest Shares cancelled pursuant to Section 3.2(c)
    shall be reduced by an amount equal to the product obtained when (A) the capital of the Harvest Shares of that class immediately
    prior to the Effective Time, is multiplied by (B) a fraction, the numerator of which is the number of Harvest Shares of that
    class surrendered and cancelled pursuant to Section 3.2(c), and the denominator of which is the number of Harvest Shares of
    that class outstanding immediately prior to the Effective Time;

 

	 	(e)	the
    Initial ParentCo Shares shall be, and shall be deemed to be, transferred by the Initial ParentCo Shareholder to ParentCo,
    free and clear of all Liens, claims or encumbrances, for cancellation in exchange for the payment by ParentCo to the Initial
    ParentCo Shareholder of the Initial ParentCo Share Subscription Price, and upon such transfer the name of the Initial ParentCo
    Shareholder shall be removed from ParentCo’s central securities register with respect to the ownership of the Initial
    ParentCo Shares;

 

	 	(f)	Newco
    shall merge with and into ParentCo (the “ParentCo Amalgamation”) to form one company (the “Resulting
    Issuer”) with the same effect as if they had amalgamated under Section 269 of the BCBCA, except that the legal existence
    of ParentCo shall not cease and ParentCo shall survive the ParentCo Amalgamation as the Resulting Issuer notwithstanding the
    issue by the Registrar of a certificate of amalgamation and the assignment of a new incorporation number to the Resulting
    Issuer (and for the avoidance of doubt, the amalgamation is intended to qualify as an amalgamation as defined in subsection
    87(1) of the Tax Act), and upon the ParentCo Amalgamation becoming effective:

 

	 	(i)	without
    limiting the generality of the foregoing, ParentCo shall survive the ParentCo Amalgamation as the Resulting Issuer;

 

    	 	A-11	 

     

    

 

	 	(ii)	the
    properties, rights and interests and obligations of ParentCo shall continue to be the properties, rights and interests and
    obligations of the Resulting Issuer;

 

	 	(iii)	the
    separate legal existence of Newco shall cease without Newco being liquidated or wound up, and the property, rights and interests
    and obligations of Newco shall become the property, rights and interests and obligations of the Resulting Issuer;

 

	 	(iv)	the
    Resulting Issuer shall continue to be liable for the obligations of each of Newco and ParentCo;

 

	 	(v)	the
    Resulting Issuer shall be deemed to be the party plaintiff or the party defendant, as the case may be, in any civil action
    commenced by or against either ParentCo or Newco before the ParentCo Amalgamation has become effective;

 

	 	(vi)	a
    conviction against, or a ruling, order or judgment in favour of or against, either ParentCo or Newco may be enforced by or
    against the Resulting Issuer;

 

	 	(vii)	the
    Notice of Articles and Articles of the Resulting Issuer shall be substantially in the form of the Notice of Articles and Articles
    of ParentCo, except that the authorized share capital of the Resulting Issuer shall consist solely of Resulting Issuer Subordinate
    Voting Shares, Resulting Issuer Multiple Voting Shares and Resulting Issuer Super Voting Shares, and not include any Common
    Shares;

 

	 	(viii)	the
    registered office of the Resulting Issuer shall be the registered office of ParentCo;

 

	 	(ix)	subject
    to Section 3.2(f)(x) the size of the board of directors of the Resulting Issuer shall be not less than five (5) and not more
    than nine (9) directors, as determined from time to time by the board of directors of the Resulting Issuer;

 

	 	(x)	the
    initial size of the board of directors of the Resulting Issuer shall be five (5) directors, and the Resulting Issuer Board
    Nominees shall be the initial five directors of the board of directors of the Resulting Issuer, to hold office until the next
    annual meeting of the shareholders of the Resulting Issuer or until their successors are elected or appointed;

 

	 	(xi)	each
    ParentCo Subordinate Voting Share outstanding immediately prior to the ParentCo Amalgamation (excluding, for the avoidance
    of doubt, any ParentCo Subordinate Voting Share in respect of which the holder exercises ParentCo Dissent Rights) shall be,
    and shall be deemed to be, cancelled and the name of the holder of such ParentCo Subordinate Voting Share shall be removed
    from ParentCo’s central securities register in respect of such ParentCo Subordinate Voting Share, and in consideration
    therefor such holder will receive a fully paid and non-assessable Resulting Issuer Subordinate Voting Share, and upon such
    exchange each such former holder of such exchanged ParentCo Subordinate Voting Shares shall, subject to Article 5, be deemed
    to have executed and delivered all consents, releases, assignments and waivers, statutory or otherwise, required to exchange
    such ParentCo Subordinate Voting Share in accordance therewith and shall be entered in the Resulting Issuer’s central
    securities register for the Resulting Issuer Subordinate Voting Shares as the legal and beneficial owner of such Resulting
    Issuer Subordinate Voting Share;

 

    	 	A-12	 

     

    

 

	 	(xii)	each
    ParentCo Multiple Voting Share outstanding immediately prior to the ParentCo Amalgamation (excluding, for the avoidance of
    doubt, any ParentCo Multiple Voting Share in respect of which the holder exercises ParentCo Dissent Rights) shall be, and
    shall be deemed to be, cancelled and the name of the holder of such ParentCo Multiple Voting Share shall be removed from ParentCo’s
    central securities register in respect of such ParentCo Multiple Voting Share, and in consideration therefor such holder will
    receive a fully paid and non-assessable Resulting Issuer Multiple Voting Share, and upon such exchange each such former holder
    of such exchanged ParentCo Multiple Voting Shares shall, subject to Article 5, be deemed to have executed and delivered all
    consents, releases, assignments and waivers, statutory or otherwise, required to exchange such ParentCo Multiple Voting Share
    in accordance therewith and shall be entered in the Resulting Issuer’s central securities register for the Resulting
    Issuer Multiple Voting Shares as the legal and beneficial owner of such Resulting Issuer Multiple Voting Share;

 

	 	(xiii)	the
    Newco Share outstanding immediately prior to the ParentCo Amalgamation shall be, and shall be deemed to be, cancelled and
    the name of the holder of such Newco Share will be removed from Newco’s central securities register in respect of such
    Newco Share, and in consideration therefor such holder will receive a fully paid and non-assessable Resulting Issuer Subordinate
    Voting Share, and upon such exchange such former holder of such exchanged Newco Share shall, subject to Article 5, be deemed
    to have executed and delivered all consents, releases, assignments and waivers, statutory or otherwise, required to exchange
    such Newco Share in accordance therewith and shall be entered in the Resulting Issuer’s central securities register
    for the Resulting Issuer Subordinate Voting Shares as the legal and beneficial owner of such Resulting Issuer Subordinate
    Voting Share;

 

	 	(xiv)	concurrently
    with the exchange of the ParentCo Shares and the Newco Share in Section 3.2(f)(xi), Section 3.2(f)(xii) and Section 3.2(f)(xiii),
    there shall be added to the stated capital of the Resulting Issuer Shares, in respect of the Resulting Issuer Shares issued
    by the Resulting Issuer to the former holders of such ParentCo Shares and the Newco Share:

 

	 	(A)	in
    the case of the Resulting Issuer Subordinate Voting Shares, an amount equal to the aggregate paid-up capital of the ParentCo
    Subordinate Voting Shares (other than the ParentCo Subordinate Voting Shares held by any Dissenting ParentCo Shareholders)
    and the Newco Share immediately prior to such exchange; and

 

    	 	A-13	 

     

    

 

	 	(B)	in
    the case of the Resulting Issuer Multiple Voting Shares, an amount equal to the aggregate paid-up capital of the ParentCo
    Multiple Voting Shares (other than the ParentCo Multiple Voting Shares held by any Dissenting ParentCo Shareholders) immediately
    prior to such exchange;

 

	 	(g)	the
    Resulting Issuer Incentive Plan shall be, and shall be deemed to have been, approved;

 

	 	(h)	the
    one Resulting Issuer Subordinate Voting Share issued to the Newco Shareholder pursuant to Section 3.2(f)(xiii) shall, without
    any further action by or on behalf of the Newco Shareholder, be, and shall be deemed to be, canceled in exchange for the payment
    by the Resulting Issuer to the Newco Shareholder of the Initial Newco Share Subscription Price, and upon such cancellation
    the name of the Newco Shareholder shall be removed from the Resulting Issuer’s central securities register with respect
    to the ownership of such Resulting Issuer Subordinate Voting Share;

 

	 	(i)	each
    Harvest Share outstanding immediately prior to the Effective Time held by a Participating Harvest Shareholder shall be, and
    shall be deemed to be, transferred by the holder thereof to the Resulting Issuer, free and clear of all Liens, claims or encumbrances,
    in exchange for the applicable fully paid and non-assessable Resulting Issuer Exchange Share, and, subject to Article 5, upon
    such transfer:

 

	 	(i)	each
    such former holder of such transferred Harvest Shares shall cease to be the holder of such Harvest Share and to have any rights
    as a holder of such Harvest Share other than the rights of such former holder under this Section Section 3.2(i), and such
    former holder shall be removed from Harvest’s central securities register for the Harvest Shares in respect of the Harvest
    Shares transferred by such former holder;

 

	 	(ii)	the
    Resulting Issuer shall be, and shall be deemed to be, the transferee of such Harvest Share;

 

	 	(iii)	Harvest
    shall make the appropriate entries in its central securities register for the Harvest Shares, showing the Resulting Issuer
    as the legal and beneficial owner of such transferred Harvest Shares; and

 

    	 	A-14	 

     

    

 

	 	(iv)	each
    such former Participating Harvest Shareholder shall, subject to Article 5, be entered in the Resulting Issuer’s central
    securities register for the Resulting Issuer Shares in respect of the Resulting Issuer Exchange Shares issued to such former
    Participating Harvest Shareholder pursuant to this Section 3.2(i);

 

	 	(j)	concurrently
    with the exchange of the Harvest Shares in Section 3.2(i), there shall be added to the stated capital of the Resulting Issuer
    Shares, in respect of the Resulting Issuer Shares issued by the Resulting Issuer to the former Participating Harvest Shareholders:

 

	 	(v)	in
    the case of the Resulting Issuer Subordinate Voting Shares, an amount equal to the aggregate paid-up capital of the Harvest
    Subordinate Voting Shares (other than the Harvest Subordinate Voting Shares held by any Dissenting Harvest Shareholders) immediately
    prior to such exchange;

 

	 	(vi)	in
    the case of the Resulting Issuer Multiple Voting Shares, an amount equal to the aggregate paid-up capital of the Harvest Multiple
    Voting Shares (other than the Harvest Multiple Voting Shares held by any Dissenting Harvest Shareholders) immediately prior
    to such exchange; and

 

	 	(vii)	in
    the case of the Resulting Issuer Super Voting Shares, an amount equal to the aggregate paid-up capital of the Harvest Super
    Voting Shares (other than the Harvest Super Voting Shares held by any Dissenting Harvest Shareholders) immediately prior to
    such exchange;

 

	 	(k)	each
    Harvest Option outstanding immediately prior to the Effective Time, whether or not vested, shall be, and shall be deemed to
    be, terminated and cancelled in its entirety and in exchange therefor each holder of such Harvest Option shall be entitled
    to receive an option (each a “Replacement Option”) to acquire from the Resulting Issuer the number of Resulting
    Issuer Subordinate Voting Shares equal to the number of Harvest Subordinate Voting Shares subject to such Harvest Option immediately
    prior to the Effective Time. The exercise price per Resulting Issuer Subordinate Voting Share subject to a Replacement Option
    shall be an amount equal to the exercise price per Harvest Subordinate Voting Share subject to each such Harvest Option immediately
    before the Effective Time. It is intended that sections 1.424-1(a)(5) and 1.409A-1(b)(5)(v)(D) of the U.S. Treasury Regulations,
    as applicable, apply to such exchange of Harvest Options. Accordingly, and notwithstanding the foregoing, if required, the
    exercise price of a Replacement Option will be increased such that the Replacement Option In-The-Money Amount immediately
    after the application of this Section 3.2(k) does not exceed the Harvest Option In-The-Money Amount of the Harvest Option
    (or a fraction thereof) exchanged for such Replacement Option immediately before the exchange, so that on a share-by-share
    basis the ratio of the exercise price to the fair market value of such Harvest Option shall not be less favourable to the
    Harvest Optionholder than the ratio of the exercise price to the fair market value of such Replacement Option immediately
    following the exchange; and

 

    	 	A-15	 

     

    

 

	 	(l)	each
    Harvest Compensation Option outstanding immediately before the Effective Time shall be, and shall be deemed to be, terminated
    and cancelled in its entirety and in exchange therefore each holder of such Harvest Compensation Option shall be entitled
    to receive an option (each, a “Replacement Compensation Option”) to acquire from the Resulting Issuer the
    number of Resulting Issuer Subordinate Voting Shares equal to the number of Harvest Subordinate Voting Shares subject to such
    Harvest Compensation Option immediately prior to the Effective Time. The exercise price per Resulting Issuer Subordinate Voting
    Share subject to a Replacement Compensation Option shall be an amount equal to the exercise price per Harvest Subordinate
    Voting Share subject to each such Harvest Compensation Option immediately before the Effective Time. Except as provided herein,
    all terms and conditions of a Replacement Compensation Option, including the term to expiry, conditions to and manner of exercising,
    will be the same as the Harvest Compensation Option for which it was exchanged, and the exchange shall not provide any optionee
    with any additional benefits as compared to those under his, her or its original Harvest Compensation Option.

 

ARTICLE
4

DISSENT
RIGHTS

 

	4.1	Harvest
    Rights of Dissent.

 

Pursuant
to the Interim Order, a registered holder of Harvest Shares may exercise dissent rights with respect to the Harvest Shares held
by such holder (“Harvest Dissent Rights”) in connection with the Arrangement pursuant to and in accordance
with Division 2 of Part 8 of the BCBCA, all as the same may be modified by the Interim Order, the Final Order and this Section
4.1; provided that the written notice of dissent to the Harvest Arrangement Resolution contemplated by Section 242 of the BCBCA
must be sent to and received by Harvest not later than 5:00 p.m. (Toronto time) on the Business Day that is two (2) Business Days
before the Harvest Meeting. Harvest Shareholders who exercise Harvest Dissent Rights and who:

 

	 	(a)	are
    ultimately determined to be entitled to be paid fair value from Harvest for the Harvest Shares in respect of which they have
    exercised Harvest Dissent Rights, will, notwithstanding anything to the contrary contained in Section 245 of the BCBCA, be
    deemed to have irrevocably transferred such Harvest Shares to Harvest pursuant to Section 3.2(c) in consideration of such
    fair value, and in no case will Harvest or the Resulting Issuer or any other Person be required to recognize such holders
    as holders of Harvest Shares after the Effective Time, and each Harvest Dissenting Shareholder will cease to be entitled to
    the rights of a Harvest Shareholder in respect of the Harvest Shares in relation to which such Harvest Dissenting Shareholder
    has exercised Harvest Dissent Rights and the central securities register of Harvest will be amended to reflect that such former
    holder is no longer the holder of such Harvest Shares as at and from the Effective Time; or

 

	 	(b)	are
    ultimately not entitled, for any reason, to be paid fair value for the Harvest Shares in respect of which they have exercised
    Harvest Dissent Rights, will be deemed to have participated in the Arrangement on the same basis as a Harvest Shareholder
    who has not exercised Harvest Dissent Rights.

 

    	 	A-16	 

     

    

 

In
addition to any other restrictions set forth in the BCBCA or the Interim Order, none of the following Persons shall be entitled
to exercise Harvest Dissent Rights: (i) Harvest Optionholders (with respect to any Harvest Options); (ii) Harvest Compensation
Option Holders (with respect to any Harvest Compensation Options); and (iii) Harvest Shareholders who vote in favour of, or who
have instructed a proxyholder to vote in favour of, the Harvest Arrangement Resolution.

 

	4.2	ParentCo
    Rights of Dissent.

 

Pursuant
to the Interim Order, a ParentCo Prospective Shareholder may exercise ParentCo Dissent Rights in connection with the Arrangement
pursuant to and in accordance with Division 2 of Part 8 of the BCBCA, all as the same may be modified by the Interim Order, the
Final Order and this Section 4.2; provided that the written notice of dissent to the ParentCo Arrangement Resolution contemplated
by Section 242 of the BCBCA must be sent to and received by ParentCo not later than 5:00 p.m. (Toronto time) on the Business Day
that is two (2) Business Days before the ParentCo Meeting. ParentCo Prospective Shareholders who exercise ParentCo Dissent Rights
and who:

 

	 	(a)	are
    ultimately determined to be entitled to be paid fair value from ParentCo for the ParentCo Shares in respect of which they
    have exercised ParentCo Dissent Rights, will, notwithstanding anything to the contrary contained in Section 245 of the BCBCA,
    be deemed to have irrevocably transferred such ParentCo Shares to ParentCo pursuant to Section 3.2(a) in consideration of
    such fair value, and in no case will ParentCo or the Resulting Issuer or any other Person be required to recognize such holders
    as holders of ParentCo Shares after the Effective Time, and each ParentCo Dissenting Shareholder will cease to be entitled
    to the rights of a ParentCo Shareholder in respect of the ParentCo Shares in relation to which such ParentCo Dissenting Shareholder
    has exercised ParentCo Dissent Rights and the central securities register of ParentCo will be amended to reflect that such
    former holder is no longer the holder of such ParentCo Shares as at and from the Effective Time; or

 

	 	(b)	are
    ultimately not entitled, for any reason, to be paid fair value for the ParentCo Shares in respect of which they have exercised
    ParentCo Dissent Rights, will be deemed to have participated in the Arrangement on the same basis as a ParentCo Shareholder
    who has not exercised ParentCo Dissent Rights.

 

In
addition to any other restrictions set forth in the BCBCA or the Interim Order, none of the following Persons shall be entitled
to exercise ParentCo Dissent Rights: (i) any Electing Qualified Holdco or Electing Qualified Holdco Shareholders; (ii) any ParentCo
Shareholders with respect to ParentCo Shares acquired by them pursuant to the Qualified Pipeline Exchange; and (ii) any ParentCo
Shareholders who vote in favour of, or who have instructed a proxyholder to vote in favour of, the ParentCo Arrangement Resolution.

 

    	 	A-17	 

     

    

 

ARTICLE
5 

DELIVERY
AND PAYMENT

 

	5.1	Deposit
    of Arrangement Consideration Shares by ParentCo.

 

Following
the receipt of the Final Order and no later than one Business Day before the Effective Date, ParentCo shall deliver or arrange
to be delivered to the Depositary certificates representing the aggregate Arrangement Consideration Shares required to be issued
to all Arrangement Consideration Shares Recipients in accordance with the provisions of Section 3.2, which certificates shall
be held by the Depositary as agent and nominee for the Arrangement Consideration Shares Recipients for distribution to such Arrangement
Consideration Shares Recipients in accordance with the provisions of this Article 5.

 

	5.2	Delivery
    and Payment of Arrangement Consideration Shares to Participating ParentCo Shareholders.

 

	 	(a)	Forthwith
    upon the Arrangement becoming effective, the Depositary shall deliver, or cause to be delivered, the Escrow Shares to the
    Escrow Agent, which Escrow Shares shall be held by the Escrow Agent pursuant to, and in accordance with the terms and conditions
    of, the Escrow Agreement.

 

	 	(b)	Upon
    delivery by a Participating ParentCo Shareholder to the Depositary of (i) a duly completed and executed ParentCo Letter of
    Transmittal in respect of outstanding ParentCo Shares which were exchanged for Resulting Issuer Shares pursuant to the ParentCo
    Amalgamation in Section 3.2(f), and (ii) such additional documents and instruments as the Depositary may reasonably require,
    such former holder of such ParentCo Shares shall be entitled to receive in exchange therefor, and the Depositary shall, subject
    to Section 5.5, deliver to such Participating ParentCo Shareholder, a certificate representing the aggregate Resulting Issuer
    Amalgamation Shares (or, if such Participating ParentCo Shareholder is entitled to receive Resulting Issuer Shares of more
    than one class, certificates representing the aggregate Resulting Issuer Shares of each such class), after first deducting
    any Escrow Shares that are allocated to such Participating ParentCo Shareholder pursuant to the Payment Allocation Schedule,
    which such holder is entitled to receive. Such Resulting Issuer Shares will be registered in such name or names and either
    (A) delivered to the address or addresses as such Participating ParentCo Shareholder directed in their ParentCo Letter of
    Transmittal; or (B) made available for pick up at the office of the Depositary in accordance with the instructions of the
    Participating ParentCo Shareholder in the ParentCo Letter of Transmittal.

 

	 	(c)	A
    Participating ParentCo Shareholder who fails to deliver to the Depositary a ParentCo Letter of Transmittal and such additional
    documents and instruments as the Depositary may reasonably require in accordance with Section 5.2(b) on or before the second
    anniversary of the Effective Date (the “Proscription Date”) shall, following such Proscription Date, cease
    to have any claim or interest of any kind or nature against or in Harvest or the Resulting Issuer, and following such Proscription
    Date all Resulting Issuer Amalgamation Shares (and any dividends and other distributions on such Resulting Issuer Amalgamation
    Shares) to which such former Participating ParentCo Shareholder was entitled shall be deemed to have been surrendered to the
    Resulting Issuer and shall be paid over by the Depositary to the Resulting Issuer or as directed by the Resulting Issuer.

 

    	 	A-18	 

     

    

 

	 	(d)	No
    dividends or other distributions declared or made after the Effective Date with respect to Resulting Issuer Shares with a
    record date on or after the Effective Date will be payable or paid to any Participating ParentCo Holder unless such Participating
    ParentCo Holder delivers to the Depositary a ParentCo Letter of Transmittal and such additional documents and instruments
    as the Depositary may reasonably require in accordance with Section 5.2(b). Subject to applicable Law and to Section 5.2(c)
    and Section 5.5, at the time of such delivery there shall, in addition to the delivery of the Resulting Issuer Amalgamation
    Shares to which such former Participating ParentCo Shareholder is entitled in accordance with Section 5.2(b), be delivered
    to such holder, without interest, the amount of the dividends and other distributions with a record date after the Effective
    Time theretofore paid with respect to such Resulting Issuer Amalgamation Shares.

 

	 	(e)	No
    Participating ParentCo Shareholder shall be entitled to receive any consideration or entitlement with respect to such holder’s
    ParentCo Shares in connection with the transactions or events contemplated by this Plan of Arrangement other than any consideration
    or entitlement to which such holder is entitled to receive in accordance with Section 3.2, this Section 5.2 and the other
    terms of this Plan of Arrangement.

 

	5.3	Delivery
    and Payment of Arrangement Consideration Shares to Participating Harvest Shareholders.

 

	 	(a)	Upon
    surrender to the Depositary for cancellation of a certificate(s) which immediately prior to the Effective Time represented
    outstanding Harvest Shares which were exchanged for Resulting Issuer Shares pursuant to the Harvest Exchange in Section 3.2(i),
    together with a duly completed and executed Harvest Letter of Transmittal and such additional documents and instruments as
    the Depositary may reasonably require, the holder of such surrendered certificate(s) shall be entitled to receive in exchange
    therefor, and the Depositary shall, subject to Section 5.5, deliver to such Participating Harvest Shareholder a certificate
    representing the aggregate Resulting Issuer Exchange Shares (or, if such Participating Harvest Shareholder is entitled to
    receive Resulting Issuer Shares of more than one class, certificates representing the aggregate Resulting Issuer Shares of
    each such class) which such holder is entitled to receive, which Resulting Issuer Shares will be registered in such name or
    names and either (A) delivered to the address or addresses as such Participating Harvest Shareholder directed in their Harvest
    Letter of Transmittal; or (B) made available for pick up at the office of the Depositary in accordance with the instructions
    of the Participating Harvest Shareholder in the Harvest Letter of Transmittal, and any certificate representing Harvest Shares
    so surrendered shall forthwith thereafter be cancelled.

 

    	 	A-19	 

     

    

 

	 	(b)	Until
    surrendered as contemplated by Section 5.3(a), each certificate that immediately prior to the Effective Time represented Harvest
    Shares of a Participating Harvest Shareholder shall be deemed after the Effective Time to represent only the right to receive,
    upon surrender of such certificate, the Resulting Issuer Exchange Shares in lieu of such certificate as contemplated in Section
    5.3(a), less any amounts withheld pursuant to Section 5.5. Any such certificate formerly representing Harvest Shares not duly
    surrendered on or before the Proscription Date shall, following the Proscription Date, cease to represent a claim by or interest
    of any former Participating Harvest Shareholder of any kind or nature against or in Harvest or the Resulting Issuer, and all
    Resulting Issuer Exchange Shares (and any dividends and other distributions on such Resulting Issuer Exchange Shares) to which
    such former Participating Harvest Shareholder was entitled shall be deemed to have been surrendered to the Resulting Issuer
    and shall be paid over by the Depositary to the Resulting Issuer or as directed by the Resulting Issuer.

 

	 	(c)	No
    dividends or other distributions declared or made after the Effective Date with respect to Resulting Issuer Shares with a
    record date on or after the Effective Date will be payable or paid to the holder of any unsurrendered certificate or certificates
    for Harvest Shares which, immediately prior to the Effective Date, represented outstanding Harvest Shares, until the surrender
    of such certificates to the Depositary. Subject to applicable Law and to Section 5.3(b) and Section 5.5, at the time of such
    surrender, there shall, in addition to the delivery of the Resulting Issuer Exchange Shares to which such former Participating
    Harvest Shareholder is thereby entitled, be delivered to such holder, without interest, the amount of the dividends and other
    distributions with a record date after the Effective Time theretofore paid with respect to such Resulting Issuer Exchange
    Shares.

 

	 	(d)	No
    Participating Harvest Shareholder shall be entitled to receive any consideration or entitlement with respect to such holder’s
    Harvest Shares in connection with the transactions or events contemplated by this Plan of Arrangement other than any consideration
    or entitlement to which such holder is entitled to receive in accordance with Section 3.2, this Section 5.3 and the other
    terms of this Plan of Arrangement.

 

	5.4	Lost
    Certificates.

 

In
the event that any certificate which immediately prior to the Effective Time represented one or more outstanding Harvest Shares
which were exchanged or transferred in accordance with Section 3.2 shall have been lost, stolen or destroyed, upon the making
of an affidavit of that fact by the person claiming such certificate to be lost, stolen or destroyed, the Depositary shall deliver
in exchange for such lost, stolen or destroyed certificate, the consideration which such person is entitled to receive in accordance
with Section 3.2, provided that, as a condition precedent to any such delivery by the Depositary, such person shall have provided
a bond satisfactory to the Resulting Issuer and the Depositary in such amount as the Resulting Issuer and the Depositary may direct,
or otherwise have indemnified the Resulting Issuer and the Depositary in a manner satisfactory to the Resulting Issuer and the
Depositary, against any claim that may be made against the Resulting Issuer or the Depositary with respect to the certificate
alleged to have been lost, stolen or destroyed and shall otherwise have taken such actions as may be required by the articles
of Harvest.

 

    	 	A-20	 

     

    

 

	5.5	Withholding
    Rights.

 

ParentCo,
the Resulting Issuer, Harvest, the Depositary or the Escrow shall be entitled to deduct and withhold from any amount payable to
any Person under this Plan of Arrangement (including, without limitation, any amounts payable pursuant to Section 4.1 or Section
4.2), such amounts as ParentCo, the Resulting Issuer, Harvest, the Depositary or the Escrow Agent determines, acting reasonably,
are required or permitted to be deducted and withheld with respect to such payment under the Tax Act, the U.S. Tax Code or any
provision of any other Law. To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes
hereof as having been paid to the Person in respect of which such withholding was made, provided that such amounts are actually
remitted to the appropriate Governmental Entity.

 

	5.6	U.S.
    Securities Laws Exemption.

 

Notwithstanding
any provision herein to the contrary, Harvest, ParentCo and Newco agree that this Plan of Arrangement will be carried out with
the intention that all Arrangement Issued Securities issued on completion of this Plan of Arrangement will be issued by the Resulting
Issuer in reliance on the exemption from the registration requirements of the U.S. Securities Act, as provided by Section 3(a)(10)
thereof.

 

ARTICLE
6

AMENDMENTS

 

	6.1	Amendments
    to Plan of Arrangement.

 

	 	(a)	Harvest
    and ParentCo may amend, modify and/or supplement this Plan of Arrangement at any time and from time to time prior to the Effective
    Time, provided that each such amendment, modification and/or supplement must be (i) set out in writing, (ii) approved by Harvest
    and Verano, each acting reasonably, (iii) filed with the Court and, if made following the Harvest Meeting and/or the ParentCo
    Meeting, approved by the Court, and (iv) communicated to or approved by the Harvest Shareholders and ParentCo Prospective
    Shareholders if and as required by the Court.

 

	 	(b)	Any
    amendment, modification or supplement to this Plan of Arrangement may be proposed by Harvest or Verano at any time prior to
    the Harvest Meeting and ParentCo Meeting (subject to the Business Combination Agreement), and if so proposed and accepted
    by the Persons voting at the Harvest Meeting and ParentCo Meeting (other than as may be required under the Interim Order),
    such amendment, modification or supplement shall become part of this Plan of Arrangement for all purposes.

 

	 	(c)	Any
    amendment, modification or supplement to this Plan of Arrangement that is approved or directed by the Court following the
    Harvest Meeting and/or ParentCo Meeting shall be effective only if (i) it is consented to in writing by each of Harvest and
    ParentCo (in each case, acting reasonably), and (ii) if required by the Court, it is consented to by some or all of the Harvest
    Shareholders and/or ParentCo Prospective Shareholders voting in the manner directed by the Court.

 

	 	(d)	Any
    amendment, modification or supplement to this Plan of Arrangement may be made following the Effective Date by ParentCo and
    Harvest, provided that it concerns a matter which, in the reasonable opinion of ParentCo and Harvest, is of an administrative
    nature required to better give effect to the implementation of this Plan of Arrangement and is not adverse to the economic
    interest of any Participating Harvest Shareholder or Participating ParentCo Shareholder.

 

ARTICLE
7 

FURTHER
ASSURANCES

 

	7.1	Further Assurances

 

Notwithstanding
that the transactions and events set out herein shall occur and be deemed to occur in the order set out in this Plan of Arrangement
without any further act or formality, each of the Parties shall make, do and execute, or cause to be made, done and executed,
all such further acts, deeds, agreements, transfers, assurances, instruments or documents as may reasonably be required by any
of them in order further to document or evidence any of the transactions or events set out in this Plan of Arrangement.

 

    	 	A-21	 

     

    

 

SCHEDULE
“B”

 

VOTING
SUPPORT AGREEMENT

 

THIS
AGREEMENT is made as of April , 2019

 

BETWEEN:

 

[SHAREHOLDER]
(the “Shareholder”)

 

-
and -

 

VERANO
HOLDINGS, LLC, a Delaware limited liability company (“Verano”);

 

-
and -

 

1204899
B.C. Ltd., a British Columbia company (“ParentCo”, and together with Verano, the “Verano Parties”).

 

RECITALS:

 

WHEREAS
pursuant to a Business Combination Agreement dated April , 2019 (the “Business Combination Agreement”),
among Harvest Health & Recreation Inc., a British Columbia company (“Harvest”), ParentCo, 1204599 B.C.
Ltd., a British Columbia company (“Newco”), and Verano, pursuant to which Harvest and Verano desire to combine
their businesses (the “Combination”),

 

AND
WHEREAS pursuant to the Business Combination Agreement, which, among other things, provides for the exchange of all of the
issued and outstanding shares in the capital of Harvest (the “Exchanged Securities”) held by shareholders of
Harvest (the “Harvest Shareholders”) for shares in the capital of the Resulting Issuer, as more particularly
described in the Business Combination Agreement;

 

AND
WHEREAS in connection with the Combination, Harvest shall hold a meeting of the Harvest Shareholders to consider a proposed
statutory plan of arrangement (the “Arrangement”) under Section 288 of the Business Corporations Act
(British Columbia), to be completed pursuant to the terms of the Business Combination Agreement;

 

AND
WHEREAS, the Shareholder is the beneficial owner, directly or indirectly, of the Subject Securities listed in Schedule “A”
hereto;

 

AND
WHEREAS, the Shareholder believes it will derive benefit for the Arrangement and wishes to confirm its support for the Arrangement;

 

AND
WHEREAS, this Agreement sets out the terms and conditions of the agreement of the Shareholder to abide by the covenants in
respect of the Subject Securities and the other restrictions and covenants set forth herein;

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged) the parties hereto agree as follows:

 

    	 	B-1	 

     

    

 

ARTICLE
1

INTERPRETATION

 

	1.1	Definitions

 

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

 

“affiliate”
of any Person means, at the time such determination is being made, any other Person controlling, controlled by or under common
control with such first Person, in each case, whether directly or indirectly, and “control” and any derivation
thereof means the holding of voting securities of another entity sufficient to elect a majority of the board of directors (or
the equivalent) of such entity;

 

“Agreement”
means this voting support agreement dated as of the date hereof between the Shareholder and the Verano Parties, as it may be amended,
modified or supplemented from time to time in accordance with its terms;

 

“Arrangement”
has the meaning ascribed thereto in the recitals hereof;

 

“Business
Combination Agreement” has the meaning ascribed thereto in the recitals hereof;

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in any of Chicago, Illinois,
Phoenix, Arizona or Vancouver, British Columbia are authorized or required by Law to be closed for business.

 

“Combination”
has the meaning ascribed thereto in the recitals hereof;

 

“Exchanged
Securities” has the meaning ascribed thereto in the recitals hereof;

 

“Governmental
Entity” means (i) any international, multinational, national, federal, provincial, state, regional, municipal, local
or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, commissioner,
board, bureau, ministry, agency or instrumentality, domestic or foreign, (ii) any subdivision or authority of any of the above,
(iii) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account
of any of the foregoing or (iv) any stock exchange;

 

“Harvest”
has the meaning ascribed thereto in the recitals hereof;

 

“Harvest
Acquisition Proposal” has the meaning ascribed thereto in the Business Combination Agreement;

 

“Harvest
Shareholders” has the meaning ascribed thereto in the recitals hereof;

 

“Notice”
has the meaning ascribed thereto in Section 4.8;

 

“Newco”
has the meaning ascribed thereto in the recitals hereof;

 

“ParentCo”
has the meaning ascribed thereto in the recitals hereof;

 

“Parties”
means the Shareholder and the Verano Parties and “Party” means any one of them;

 

    	 	B-2	 

     

    

 

“Person”
includes any individual, partnership, association, body corporate, organization, trust, estate, trustee, executor, administrator,
legal representative, government (including Governmental Entity), syndicate or other entity, whether or not having legal status.

 

“Shareholder”
has the meaning ascribed thereto in the preamble hereof;

 

“Subject
Securities” means the Exchanged Securities and other securities listed on Schedule “A” hereto and any Exchanged
Securities acquired by the Shareholder or any of its affiliates subsequent to the date hereof, and includes all securities which
such Subject Securities may be converted into, exchanged for or otherwise changed into;

 

“Verano”
has the meaning ascribed thereto in the recitals hereof; and,

 

“Verano
Parties” has the meaning ascribed thereto in the recitals hereof;

 

Terms
used but not otherwise defined shall have the meaning ascribed thereto in the Business Combination Agreement.

 

	1.2	Gender
    and Number

 

Any
reference to gender includes all genders. Words importing the singular number only include the plural and vice versa.

 

	1.3	Currency

 

All
references to dollars or to $ are references to Canadian dollars.

 

	1.4	Headings.

 

The
division of this Agreement into Articles, Sections and Schedules and the insertion of the recitals and headings are for convenient
reference only and do not affect the construction or interpretation of this Agreement and, unless otherwise stated, all references
in this Agreement or in the Schedules hereto to Articles, Sections and Schedules refer to Articles, Sections and Schedules of
and to this Agreement or of the Schedules in which such reference is made, as applicable.

 

	1.5	Date
    for any Action

 

A
period of time is to be computed as beginning on the day following the event that began the period and ending at 4:30 p.m. (Vancouver
time) on the last day of the period, if the last day of the period is a Business Day, or at 4:30 p.m. (Vancouver time) on the
next Business Day if the last day of the period is not a Business Day. If the date on which any action is required or permitted
to be taken under this Agreement by a Person is not a Business Day, such action shall be required or permitted to be taken on
the next succeeding Business Day.

 

	1.6	Governing
    Law

 

This
Agreement will be governed by and interpreted and enforced in accordance with the laws of the Province of British Columbia and
the federal laws of Canada applicable therein. Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of
the courts of the Province of Ontario and waives objection to the venue of any proceeding in such court or that such court provides
an inconvenient forum.

 

 

    	 	B-3	 

     

    

 

	1.7	Incorporation
    of Schedules

 

Schedule
“A”, attached hereto, for all purposes hereof, forms an integral part of this Agreement.

 

ARTICLE
2

REPRESENTATIONS
AND WARRANTIES

 

	2.1	Representations
    and Warranties of the Shareholder

 

The
Shareholder represents and warrants to the Verano Parties (and acknowledges that the Verano Parties are relying on these representations
and warranties in completing the transactions contemplated hereby and by the Business Combination Agreement) that:

 

	 	(a)	The
    Shareholder, if the Shareholder is not a natural Person, is a corporation or other entity validly existing under the laws
    of the jurisdiction of its incorporation, formation or organization.

 

	 	(b)	The
    Shareholder, if the Shareholder is not a natural Person, has the requisite corporate power and authority to enter into and
    perform its obligations under this Agreement. This Agreement has been duly executed and delivered by the Shareholder and constitutes
    a legal, valid and binding agreement of the Shareholder enforceable against the Shareholder in accordance with its terms subject
    only to any limitation under bankruptcy, insolvency or other applicable laws affecting the enforcement of creditors’
    rights generally and the discretion that a court may exercise in the granting of equitable remedies such as specific performance
    and injunction.

 

	 	(c)	The
    Shareholder exercises control or direction over all of the Subject Securities set forth opposite its name in Schedule “A”
    hereto. At and immediately prior to the Harvest Meeting, and at all times between the date hereof and the Harvest Meeting,
    the Shareholder will control or direct, directly or indirectly, all of the Subject Securities. Other than the Subject Securities,
    the Shareholder does not beneficially own, or exercise control or direction over any additional securities, or any securities
    convertible or exchangeable into any additional securities, of Harvest or any of its affiliates.

 

	 	(d)	As
    at the date hereof, the Shareholder is, and immediately prior to the time at which any of the Subject Securities then held
    by the Shareholder are exchanged under the Arrangement, the Shareholder will be, the sole beneficial owner of the Subject
    Securities, with good and marketable title thereto, free and clear of all liens and other encumbrances.

 

	 	(e)	The
    Shareholder has the sole right to sell and vote or direct the sale and voting of the Subject Securities, to the extent such
    Subject Securities carry a right to vote.

 

	 	(f)	No
    Person has any agreement or option, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming
    an agreement or option, for the purchase, acquisition or transfer of any of the Subject Securities or any interest therein
    or right thereto, except pursuant to the Business Combination Agreement.

 

	 	(g)	No
    material consent, approval, order or authorization of, or declaration or filing with, any Person is required to be obtained
    by the Shareholder in connection with the execution and delivery of this Agreement by the Shareholder and the performance
    by it of its obligations under this Agreement, other than those that are contemplated by the Business Combination Agreement.

 

    	 	B-4	 

     

    

 

	 	(h)	None
    of the Subject Securities is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right
    to vote, call meetings of any of Harvest’s securityholders or give consents or approvals of any kind, except this Agreement
    or as will be contemplated by the Business Combination Agreement.

 

	 	(i)	None
    of the execution and delivery by the Shareholder of this Agreement or the completion of the transactions contemplated hereby
    or the compliance by the Shareholder with its obligations hereunder will violate, contravene, result in any breach of, or
    be in conflict with, or constitute a default under, or create a state of facts which after notice or lapse of time or both
    would constitute a default under, any term or provision of: (i) any constating documents of the Shareholder (if the Shareholder
    is not a natural Person); (ii) any contract to which the Shareholder is a party or by which the Shareholder is bound; (iii)
    any judgment, decree, order or award of any Governmental Entity; or (iv) any applicable law.

 

	2.2	Representations
    and Warranties of the Verano Parties

 

The
Verano Parties represent and warrant to the Shareholder (and acknowledges that the Shareholder is relying on these representations
and warranties in completing the transactions contemplated hereby and by the Business Combination Agreement) that:

 

	 	(a)	The
    Verano Parties are duly incorporated, formed or organized and validly existing under the laws of their respective jurisdictions
    of incorporation, formation or organization and have the requisite corporate power and authority to enter into and perform
    their obligations under this Agreement. This Agreement has been duly executed and delivered by the Verano Parties and constitutes
    a legal, valid and binding agreement of the Verano Parties enforceable against the Verano Parties in accordance with its terms
    subject only to any limitation under bankruptcy, insolvency or other applicable laws affecting the enforcement of creditors’
    rights generally and the discretion that a court may exercise in the granting of equitable remedies such as specific performance
    and injunction.

 

	 	(b)	None
    of the execution and delivery by the Verano Parties of this Agreement or the compliance by the Verano Parties with the Verano
    Parties’ obligations hereunder will violate, contravene, result in any breach of, or be in conflict with, or constitute
    a default under, or create a state of facts which after notice or lapse of time or both would constitute a default under,
    any term or provision of: (i) any constating documents of the Verano Parties; (ii) any contract to which the Verano Parties
    are a party or by which the Verano Parties are bound; (iii) any judgment, decree, order or award of any Governmental Entity;
    or (iv) any applicable law.

 

	 	(c)	No
    material consent, approval, order or authorization of, or declaration or filing with, any Governmental Entity is required
    to be obtained by the Verano Parties in connection with the execution and delivery of this Agreement, the performance by it
    of its obligations under this Agreement and the consummation by the Verano Parties of the Arrangement, other than those which
    are contemplated by the Business Combination Agreement.

 

	 	(d)	There
    are no claims, actions, suits, audits, proceedings, investigations or other actions pending against, or, to the knowledge
    of the Verano Parties, threatened against or affecting the Verano Parties or any of their respective properties that, individually
    or in the aggregate, could reasonably be expected to have a material and adverse effect on the Verano Parties’ ability
    to execute and deliver this Agreement and to perform its obligations contemplated by this Agreement or the Business Combination
    Agreement.

 

    	 	B-5	 

     

    

 

ARTICLE
3

COVENANTS

 

	3.1	Covenants
    of the Shareholder

 

	 	(a)	The
    Shareholder hereby covenants with the Verano Parties that the Shareholder will not, from the date of this Agreement until
    the Harvest Meeting, without having first obtained the prior written consent of the Verano Parties:

 

	 	(i)	sell,
    transfer, gift, assign, convey, pledge, hypothecate, encumber, option or otherwise dispose of any right or interest in any
    of the Subject Securities or tender any of the Subject Securities to a take-over bid or enter into any agreement, arrangement,
    commitment or understanding in connection therewith, other than (A) pursuant to the Arrangement, (B) any exercise of warrants
    or options exercisable for Exchanged Securities in accordance with their terms, or (C) to one or more of a parent, spouse,
    child or grandchild of, or a corporation, partnership, limited liability company or other entity controlled by, the Shareholder
    or a trust or account existing for the benefit of such Person or entity, provided that in such case and for greater certainty,
    any Subject Securities acquired as a result thereof shall remain Subject Securities and subject to the terms and conditions
    of this Agreement and, in the case of a corporation, partnership, limited liability company or other entity controlled by,
    the Shareholder, provided that such entity remains controlled by the Shareholder;

 

	 	(ii)	other
    than as set forth herein, grant or agree to grant any proxies or powers of attorney, deliver any voting instruction form,
    deposit any Subject Securities into a voting trust or pooling agreement, or enter into a voting agreement, commitment, understanding
    or arrangement, oral or written, with respect to the voting of any Subject Securities; or

 

	 	(iii)	requisition
    or join in the requisition of any meeting of any of the securityholders of Harvest for the purpose of considering any resolution.

 

	 	(b)	The
    Shareholder hereby covenants, undertakes and agrees from time to time to cause to be counted as present for purposes of establishing
    quorum and to vote (or cause to be voted) all of the Subject Securities (to the extent they carry a right to vote):

 

	 	(i)	at
    any meeting of any of the securityholders of Harvest at which the Shareholder or any registered or beneficial owner of the
    Subject Securities are entitled to vote, including the meeting of Harvest Shareholders to be called to approve the Arrangement;
    and

 

	 	(ii)	in
    any action by written consent of the securityholders of Harvest, in favour of the approval, consent, ratification and adoption
    of the resolution approving the Arrangement and the transactions contemplated by the Business Combination Agreement (and any
    actions required for the consummation of the transactions contemplated by the Business Combination Agreement). In connection
    with the foregoing, subject to this Section 3.1(b), the Shareholder hereby agrees to deposit a proxy, or voting instruction
    form, as the case may be, duly completed and executed in respect of all of its Subject Securities (to the extent that they
    carry the right to vote) as soon as practicable following the mailing of the Harvest Circular and in any event at least 5
    Business Days prior to the meeting of shareholders to be called to approve the Arrangement and as far in advance as practicable
    of every adjournment or postponement thereof, voting all such Subject Securities (to the extent that they carry the right
    to vote) in favour of the resolution approving the Arrangement. The Shareholder hereby agrees that it will not take, nor permit
    any Person on its behalf to take, any action to withdraw, revoke, change, amend or invalidate any proxy or voting instruction
    form deposited pursuant to this Agreement notwithstanding any statutory or other rights or otherwise which the Shareholder
    might have unless this Agreement has at such time been previously terminated in accordance with Section 4.1. The Shareholder
    will provide copies of each such proxy or voting instruction form (or screen shots evidencing electronic voting thereof) referred
    to above to the Verano Parties at the address below concurrently with its delivery as provided for above.

 

    	 	B-6	 

     

    

 

	 	(c)	The
    Shareholder hereby covenants, undertakes and agrees from time to time to cause to be counted as present for purposes of establishing
    quorum and to vote (or cause to be voted) all of the Subject Securities (to the extent that they carry the right to vote)
    against any proposed action by Harvest, any Harvest Shareholder, any of Harvest’s subsidiaries or any other Person (or
    group of Persons) other than the Verano Parties: (i) in respect of a Harvest Acquisition Proposal, or (ii) which would reasonably
    be regarded as being directed towards or likely to prevent or delay the successful completion of the Arrangement, including
    without limitation any amendment to the articles or by-laws of Harvest or any of its subsidiaries or their respective corporate
    structures or capitalization.

 

	 	(d)	The
    Shareholder hereby covenants, undertakes and agrees, in the event that any transaction for the proposed acquisition of at
    least a majority of the Exchanged Securities of Harvest, where such transaction requires the approval of Harvest Shareholders
    under applicable law, other than the Arrangement, is presented prior to the Effective Time of the Arrangement for approval
    of, or acceptance by, Harvest Shareholders, whether or not it may be recommended by the board of directors of Harvest, not
    to directly or indirectly, accept, assist or otherwise further the successful completion of such transaction or purport to
    tender or deposit into any such transaction any of the Subject Securities.

 

	 	(e)	Subject
    to Section 4.5 the Shareholder will not, and will ensure that its affiliates do not, directly or indirectly, through any officer,
    director, employee, representative or agent or otherwise:

 

	 	(i)	solicit
    proxies or become a participant in a solicitation in opposition to or competition with ParentCo’s proposed acquisition
    of the Exchanged Securities as contemplated by the Arrangement;

 

	 	(ii)	assist
    any Person in taking or planning any action that would compete with, restrain or otherwise serve to interfere with or inhibit
    ParentCo’s proposed purchase of the Exchanged Securities as contemplated by the Arrangement;

 

	 	(iii)	act
    jointly or in concert with others with respect to voting securities of Harvest for the purpose of opposing or competing with
    ParentCo’s proposed acquisition of the Exchanged Securities as contemplated by the Arrangement;

 

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

 

    	 	B-7	 

     

    

 

	 	(v)	participate
    in any discussions or negotiations with any Person (other than the Verano Parties) regarding any inquiry, proposal or offer
    that constitutes or would reasonably be expected to constitute or lead to a Harvest Acquisition Proposal;

 

	 	(vi)	accept
    or enter into, or publicly propose to accept or enter into, any letter of intent, agreement, arrangement or understanding
    regarding any Harvest Acquisition Proposal; or

 

	 	(vii)	cooperate
    in any way with, assist or participate in, knowingly encourage or otherwise facilitate or encourage any effort or attempt
    by any other Person to do or seek to do any of the foregoing.

 

	 	(f)	The
    Shareholder will not: (i) exercise any dissent rights in respect of the Arrangement; (ii) contest in any way the approval
    of the Arrangement by any Governmental Entity; or (iii) take any other action of any kind, in each case which would reasonably
    be regarded as likely to reduce the success of, or materially delay or interfere with the completion of, the transactions
    contemplated by the Business Combination Agreement.

 

	 	(g)	The
    Shareholder will, and will cause each of its affiliates and will instruct each of its representatives to, immediately cease
    and terminate, and cause to be terminated, any solicitation, encouragement, discussion, negotiations, or other activities
    commenced prior to the date of this Agreement with any Person (other than the Verano Parties or an affiliate thereof) with
    respect to any inquiry, proposal or offer that constitutes, or may reasonably be expected to constitute or lead to, a Harvest
    Acquisition Proposal.

 

	 	(h)	The
    Shareholder hereby consents to:

 

	 	(i)	details
    of this Agreement being set out in any press release, information circular, including the Harvest Circular, ParentCo Circular,
    and court documents produced by Harvest, the Verano Parties or any of their respective affiliates in connection with the transactions
    contemplated by this Agreement and the Business Combination Agreement; and

 

	 	(ii)	this
    Agreement being made publicly available, including by filing on the System for Electronic Document Analysis and Retrieval
    (SEDAR) operated on behalf of the Canadian provincial securities regulators.

 

	 	(i)	Except
    as required by applicable law or stock exchange requirements, the Shareholder will not, and will ensure that their affiliates
    and representatives do not, make any public announcement with respect to the transactions contemplated herein or pursuant
    to the Business Combination Agreement without the prior written approval of the Verano Parties.

 

    	 	B-8	 

     

    

 

	3.2	Covenants
    of the Verano Parties

 

Subject
to Section 4.1, the Verano Parties will take all steps required of them under the Business Combination Agreement to cause the
Arrangement to occur in accordance with the terms of and subject to the conditions set forth in the Business Combination Agreement.

 

ARTICLE
4

GENERAL

 

	4.1	Termination

 

This
Agreement will terminate and be of no further force or effect upon the earliest to occur of:

 

	 	(a)	the
    mutual agreement in writing of the Shareholder and the Verano Parties;

 

	 	(b)	the
    termination of the Business Combination Agreement in accordance with its terms; and

 

	 	(c)	the
    completion of the Arrangement.

 

	4.2	Time
    of the Essence

 

Time
is of the essence in this Agreement.

 

	4.3	Effect
    of Termination

 

If
this Agreement is terminated in accordance with the provisions of Section 4.1, no Party will have any further liability to
perform its obligations under this Agreement except as expressly contemplated by this Agreement, and provided that neither
the termination of this Agreement nor anything contained in Section 4.1 will relieve any Party from any liability for any
breach by it of this Agreement, including from any inaccuracy in its representations and warranties and any non-performance
by it of its covenants made herein.

 

	4.4	Equitable
    Relief

 

The
Parties agree that irreparable harm would occur for which money damages would not be an adequate remedy at law in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the Parties shall be entitled to injunctive and other equitable relief to prevent breaches of this
Agreement, and to enforce compliance with the terms of this Agreement without any requirement for the securing or posting of any
bond in connection with the obtaining of any such injunctive or other equitable relief, this being in addition to any other remedy
to which the Parties may be entitled at law or in equity.

 

	4.5	Fiduciary
    Duty

 

Notwithstanding
anything to the contrary herein, nothing herein shall restrict or limit any director or officer of Harvest from taking any action
required to be taken in the discharge of his or her fiduciary duty as a director or officer of Harvest that is otherwise permitted
by, and done in compliance with, the terms of the Business Combination Agreement. The Verano Parties further hereby agree that
the Shareholder is not making any agreement or understanding herein in any capacity other than in the capacity as beneficial owner
of the Subject Securities.

 

    	 	B-9	 

     

    

 

	4.6	Waiver;
    Amendment

 

Each
party hereto agrees and confirms that any provision of this Agreement may be amended or waived if, and only if, such amendment
or waiver is in writing and signed, in the case of an amendment, by all of the Parties or in the case of a waiver, by the Party
against whom the waiver is to be effective. No waiver of any of the provisions of this Agreement will constitute a waiver of any
other provision (whether or not similar). No waiver will be binding unless executed in writing by the Party to be bound by the
waiver. A Party’s failure or delay in exercising any right under this Agreement will not operate as a waiver of that right.
A single or partial exercise of any right will not preclude a Party from any other or further exercise of that right or the exercise
of any other right. No waiver of any of the provisions of this Agreement will be deemed to constitute a waiver of any other provision
(whether or not similar).

 

	4.7	Entire
    Agreement

 

This
Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings among the Parties with respect thereto. For greater certainty, the transaction non-disclosure letter
agreement entered into in anticipation of entering into this Agreement remains in full force and effect.

 

	4.8	Notices

 

Any
notice, direction or other communication given regarding the matters contemplated by this Agreement (each a “Notice”)
(must be in writing, sent by personal delivery, courier or facsimile or electronic mail and addressed:

 

	 	(a)	if
    to the Verano Parties at:
	 	 	 
	 	 	Verano
    Holdings, LLC
	 	 	214
    West Ohio Street
	 	 	Chicago,
    IL 60654
	 	 	 
	 	 	E-mail:
	 	 	Attention:
    George Archos

 

	 	(b)	to
    the Shareholder, at the address set out at Schedule “B” hereto.

 

Any
Notice is deemed to be given and received: (i) if sent by personal delivery or same day courier, on the date of delivery if it
is a Business Day and the delivery was made prior to 4:30 p.m. (local time in place of receipt) and otherwise on the next Business
Day, (ii) if sent by overnight courier, on the next Business Day, (iii) if sent by facsimile, on the Business Day following the
date of confirmation of transmission by the originating facsimile or (iv) if sent by email, on the same Business Day that it was
sent if the recipient acknowledged receipt prior to 4:30 p.m. (Toronto time), and otherwise, the next Business Day. A Party may
change its address for service from time to time by providing a Notice in accordance with the foregoing. Any subsequent Notice
must be sent to the Party at its changed address. Any element of a Party’s address that is not specifically changed in a
Notice will be assumed not to be changed. Sending a copy of a Notice to a Party’s legal counsel as contemplated above is
for information purposes only and does not constitute delivery of the Notice to that Party. The failure to send a copy of a Notice
to a Party’s legal counsel does not invalidate delivery of that Notice to such Party.

 

    	 	B-10	 

     

    

 

	4.9	Severability

 

If
any provision of this Agreement is determined to be illegal, invalid or unenforceable by an arbitrator or any court of competent
jurisdiction, that provision will be severed from this Agreement and the remaining provisions shall remain in full force and effect.
Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in
an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

 

	4.10	Successors
    and Assigns

 

The
provisions of this Agreement will be binding upon and enure to the benefit of the parties hereto and their respective heirs, administrators,
executors, legal representatives, successors and permitted assigns, provided that no Party may assign, delegate or otherwise transfer
any of its rights, interests or obligations under this Agreement without the prior written consent of the other Party hereto,
provided that the Verano Parties may assign all or part of its rights under this Agreement to, and its obligations under this
Agreement may be assumed by, any of its affiliates, provided that if such assignment and/or assumption takes place, the Verano
Parties shall continue to be liable joint and severally with such affiliate for all of its obligations hereunder.

 

	4.11	Independent
    Legal Advice

 

Each
of the Parties hereby acknowledges that it has been afforded the opportunity to obtain independent legal advice and confirms by
the execution and delivery of this Agreement that they have either done so or waived their right to do so in connection with the
entering into of this Agreement.

 

	4.12	Further
    Assurances

 

The
parties hereto will, with reasonable diligence, do all things and provide all such reasonable assurances as may be required to
consummate the transactions contemplated by this Agreement, and each Party will provide such further documents or instruments
required by the other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out
its provisions, whether before or after the Effective Time.

 

	4.13	Counterparts

 

This
Agreement may be executed in any number of counterparts (including counterparts by facsimile) and all such counterparts taken
together shall be deemed to constitute one and the same instrument. The Parties shall be entitled to rely upon delivery of an
executed facsimile or similar executed electronic copy of this Agreement, and such facsimile or similar executed electronic copy
shall be legally effective to create a valid and binding agreement between the Parties.

 

[The
remainder of this page has been intentionally left blank.]

 

    	 	B-11	 

     

    

 

IN
WITNESS OF WHICH the Parties have executed this Agreement as at the date first above written.

 

	 	[SHAREHOLDER]
	 	 	 
	 	Per:	 
	 	Name:	
	 	Title:	
	 	 	 
	 	VERANO
    HOLDINGS, LLC
	 	 	 
	 	Per:	 
	 	Name:	
	 	Title:	
	 	 	 
	 	1204899
    B.C. LTD.
	 	 	 
	 	Per:	 
	 	Name:	
	 	Title:	                 

 

    	 	B-12	 

     

    

 

SCHEDULE
A

Exchanged
Securities

 

	Owner	 	 	Number
    of Exchanged Securities	 	 	Number
    of Options	 	 	Number
    of Warrants	 
	 		 	 	 		 	 	 		 	 	 		 

 

    	 	B-13	 

     

    

 

SCHEDULE
B

Shareholder
Address for Notice

 

    	 	B-14	 

     

    

 

SCHEDULE
“C”

 

COMPANY
SUPPORT AGREEMENT

 

THIS
AGREEMENT is made as of April , 2019

 

BETWEEN:

 

[SECURITYHOLDER]
(the “Securityholder”)

 

-
and -

 

HARVEST
HEALTH & RECREATION INC., a British Columbia company (“Harvest”);

 

-
and -

 

1204599
B.C. LTD., a British Columbia company (“NewCo”, and together with Harvest, the “Harvest Parties”).

 

RECITALS:

 

WHEREAS
pursuant to a Business Combination Agreement dated April , 2019 (the “Business Combination Agreement”)
among Harvest, Verano Holdings, LLC, a Delaware limited liability company (“Verano”), 1204899 B.C. Ltd. (“ParentCo”),
and NewCo, Harvest and Verano desire to combine their businesses (the “Combination”);

 

AND
WHEREAS pursuant to the Business Combination Agreement, which, among other things, provides for the exchange of all of the
issued and outstanding units in the capital of Verano (the “Exchanged Securities”) held by the unitholders
of Verano (the “Verano Unitholders”), for shares in the capital of ParentCo, which has been formed for the
purpose of giving effect to the Combination, all as more particularly described in the Business Combination Agreement;

 

AND
WHEREAS in connection with the Combination, ParentCo shall hold a meeting of the Verano Unitholders and Qualified Holdco Shareholders
(as such term is defined in the Business Combination Agreement, and together with the Verano Unitholders, the “Prospective
Shareholders”) to consider a proposed statutory plan of arrangement (the “Arrangement”) under Section
288 of the Business Corporations Act (British Columbia), to be completed pursuant to the terms of the Business Combination
Agreement;

 

AND
WHEREAS, the Securityholder is the beneficial owner, directly or indirectly, of the Subject Securities listed in Schedule
“A” hereto;

 

AND
WHEREAS, the Securityholder believes it will derive benefit for the Arrangement and wishes to confirm its support for the
Arrangement;

 

AND
WHEREAS, this Agreement sets out the terms and conditions of the agreement of the Securityholder to abide by the covenants
in respect of the Subject Securities and the other restrictions and covenants set forth herein;

 

    	 	C-1	 

     

    

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged) the parties hereto agree as follows:

 

ARTICLE
1

INTERPRETATION

 

	1.1	Definitions

 

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

 

“affiliate”
of any Person means, at the time such determination is being made, any other Person controlling, controlled by or under common
control with such first Person, in each case, whether directly or indirectly, and “control” and any derivation
thereof means the holding of voting securities of another entity sufficient to elect a majority of the board of directors (or
the equivalent) of such entity;

 

“Agreement”
means this voting support agreement dated as of the date hereof between the Securityholder and the Harvest Parties, as it may
be amended, modified or supplemented from time to time in accordance with its terms;

 

“Arrangement”
has the meaning ascribed thereto in the recitals hereof;

 

“Business
Combination Agreement” has the meaning ascribed thereto in the recitals hereof;

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in any of Chicago, Illinois,
Phoenix, Arizona or Vancouver, British Columbia are authorized or required by Law to be closed for business.

 

“Combination”
has the meaning ascribed thereto in the recitals hereof;

 

“Company
Acquisition Proposal” has the meaning ascribed thereto in the Business Combination Agreement;

 

“Exchanged
Securities” has the meaning ascribed thereto in the recitals hereof;

 

“Governmental
Entity” means (i) any international, multinational, national, federal, provincial, state, regional, municipal, local
or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, commissioner,
board, bureau, ministry, agency or instrumentality, domestic or foreign, (ii) any subdivision or authority of any of the above,
(iii) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account
of any of the foregoing or (iv) any stock exchange;

 

“Harvest”
has the meaning ascribed thereto in the recitals hereof;

 

“Harvest
Parties” has the meaning ascribed thereto in the recitals hereof;

 

“Newco”
has the meaning ascribed thereto in the recitals hereof;

 

“Notice”
has the meaning ascribed thereto in Section 4.8;

 

    	 	C-2	 

     

    

 

“ParentCo”
has the meaning ascribed thereto in the recitals hereof;

 

“Parties”
means the Securityholder and the Harvest Parties and “Party” means any one of them;

 

“Person”
includes any individual, partnership, association, body corporate, organization, trust, estate, trustee, executor, administrator,
legal representative, government (including Governmental Entity), syndicate or other entity, whether or not having legal status.

 

“Prospective
Shareholders” has the meaning ascribed thereto in the recitals hereof;

 

“Securityholder”
has the meaning ascribed thereto in the preamble hereof;

 

“Subject
Securities” means the Exchanged Securities and other securities listed on Schedule “A” hereto and any Exchanged
Securities acquired by the Securityholder or any of its affiliates subsequent to the date hereof, and includes all securities
which such Subject Securities may be converted into, exchanged for or otherwise changed into;

 

“Verano”
has the meaning ascribed thereto in the recitals hereof;

 

“Verano
Unitholders” has the meaning ascribed thereto in the recitals hereof;

 

Terms
used but not otherwise defined shall have the meaning ascribed thereto in the Business Combination Agreement.

 

	1.2	Gender
    and Number

 

Any
reference to gender includes all genders. Words importing the singular number only include the plural and vice versa.

 

	1.3	Currency

 

All
references to dollars or to $ are references to Canadian dollars.

 

	1.4	Headings.

 

The
division of this Agreement into Articles, Sections and Schedules and the insertion of the recitals and headings are for convenient
reference only and do not affect the construction or interpretation of this Agreement and, unless otherwise stated, all references
in this Agreement or in the Schedules hereto to Articles, Sections and Schedules refer to Articles, Sections and Schedules of
and to this Agreement or of the Schedules in which such reference is made, as applicable.

 

	1.5	Date
    for any Action

 

A
period of time is to be computed as beginning on the day following the event that began the period and ending at 4:30 p.m. (Vancouver
time) on the last day of the period, if the last day of the period is a Business Day, or at 4:30 p.m. (Vancouver time) on the
next Business Day if the last day of the period is not a Business Day. If the date on which any action is required or permitted
to be taken under this Agreement by a Person is not a Business Day, such action shall be required or permitted to be taken on
the next succeeding Business Day.

 

    	 	C-3	 

     

    

 

	1.6	Governing
    Law

 

This
Agreement will be governed by and interpreted and enforced in accordance with the laws of the Province of British Columbia and
the federal laws of Canada applicable therein. Each Party irrevocably attorns and submits to the non-exclusive jurisdiction of
the courts of the Province of Ontario and waives objection to the venue of any proceeding in such court or that such court provides
an inconvenient forum.

 

	1.7	Incorporation
    of Schedules

 

Schedule
“A”, attached hereto, for all purposes hereof, forms an integral part of this Agreement.

 

ARTICLE
2

REPRESENTATIONS
AND WARRANTIES

 

	2.1	Representations
    and Warranties of the Securityholder

 

The
Securityholder represents and warrants to the Harvest Parties (and acknowledges that the Harvest Parties are relying on these
representations and warranties in completing the transactions contemplated hereby and by the Business Combination Agreement) that:

 

	 	(a)	The
    Securityholder, if the Securityholder is not a natural Person, is a corporation or other entity validly existing under the
    laws of the jurisdiction of its incorporation, formation or organization.

 

	 	(b)	The
    Securityholder, if the Securityholder is not a natural Person, has the requisite corporate power and authority to enter into
    and perform its obligations under this Agreement. This Agreement has been duly executed and delivered by the Securityholder
    and constitutes a legal, valid and binding agreement of the Securityholder enforceable against the Securityholder in accordance
    with its terms subject only to any limitation under bankruptcy, insolvency or other applicable laws affecting the enforcement
    of creditors’ rights generally and the discretion that a court may exercise in the granting of equitable remedies such
    as specific performance and injunction.

 

	 	(c)	The
    Securityholder exercises control or direction over all of the Subject Securities set forth opposite its name in Schedule “A”
    hereto. At and immediately prior to the Effective Time of the Arrangement and at all times between the date hereof and the
    Effective Time of the Arrangement, the Securityholder will control or direct, directly or indirectly, all of the Subject Securities.
    Other than the Subject Securities, the Securityholder does not beneficially own, or exercise control or direction over any
    additional securities, or any securities convertible or exchangeable into any additional securities, of Verano or any of its
    affiliates.

 

	 	(d)	As
    at the date hereof, the Securityholder is, and immediately prior to the time at which the Subject Securities are exchanged
    under the Arrangement, the Securityholder will be, the sole beneficial owner of the Subject Securities, with good and marketable
    title thereto, free and clear of all liens and other encumbrances, except as set forth in the Operating Agreement.

 

	 	(e)	The
    Securityholder has the sole right to sell and vote or direct the sale and voting of the Subject Securities, to the extent
    such Subject Securities carry a right to vote, except as set forth in the Operating Agreement.

 

	 	(f)	No
    Person has any agreement or option, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming
    an agreement or option, for the purchase, acquisition or transfer of any of the Subject Securities or any interest therein
    or right thereto, except ParentCo pursuant to the Business Combination Agreement.

 

    	 	C-4	 

     

    

 

	 	(g)	No
    material consent, approval, order or authorization of, or declaration or filing with, any Person is required to be obtained
    by the Securityholder in connection with the execution and delivery of this Agreement by the Securityholder and the performance
    by it of its obligations under this Agreement, other than those that are contemplated by the Business Combination Agreement
    and as set forth in the Operating Agreement.

 

	 	(h)	None
    of the Subject Securities is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right
    to vote, call meetings of any of Verano’s securityholders or give consents or approvals of any kind, except this Agreement
    and as set forth in the Operating Agreement, or as will be contemplated by the Business Combination Agreement.

 

	 	(i)	None
    of the execution and delivery by the Securityholder of this Agreement or the completion of the transactions contemplated hereby
    or the compliance by the Securityholder with its obligations hereunder will violate, contravene, result in any breach of,
    or be in conflict with, or constitute a default under, or create a state of facts which after notice or lapse of time or both
    would constitute a default under, any term or provision of: (i) any constating documents of the Securityholder (if the Securityholder
    is not a natural Person); (ii) any contract to which the Securityholder is a party or by which the Securityholder is bound;
    (iii) any judgment, decree, order or award of any Governmental Entity; or (iv) any applicable law.

 

	2.2	Representations
    and Warranties of the Harvest Parties

 

The
Harvest Parties represent and warrant to the Securityholder (and acknowledges that the Securityholder is relying on these representations
and warranties in completing the transactions contemplated hereby and by the Business Combination Agreement) that:

 

	 	(a)	The
    Harvest Parties are duly incorporated and validly existing under the laws of their respective jurisdictions of incorporation
    and have the requisite corporate power and authority to enter into and perform their obligations under this Agreement. This
    Agreement has been duly executed and delivered by the Harvest Parties and constitutes a legal, valid and binding agreement
    of the Harvest Parties enforceable against the Harvest Parties in accordance with its terms subject only to any limitation
    under bankruptcy, insolvency or other applicable laws affecting the enforcement of creditors’ rights generally and the
    discretion that a court may exercise in the granting of equitable remedies such as specific performance and injunction.

 

	 	(b)	None
    of the execution and delivery by the Harvest Parties of this Agreement or the compliance by the Harvest Parties with the Harvest
    Parties’ obligations hereunder will violate, contravene, result in any breach of, or be in conflict with, or constitute
    a default under, or create a state of facts which after notice or lapse of time or both would constitute a default under,
    any term or provision of: (i) any constating documents of the Harvest Parties; (ii) any contract to which the Harvest Parties
    are a party or by which the Harvest Parties are bound; (iii) any judgment, decree, order or award of any Governmental Entity;
    or (iv) any applicable law.

 

	 	(c)	No
    material consent, approval, order or authorization of, or declaration or filing with, any Governmental Entity is required
    to be obtained by the Harvest Parties in connection with the execution and delivery of this Agreement, the performance by
    it of its obligations under this Agreement and the consummation by the Harvest Parties of the Arrangement, other than those
    which are contemplated by the Business Combination Agreement.

 

    	 	C-5	 

     

    

 

	 	(d)	There
    are no claims, actions, suits, audits, proceedings, investigations or other actions pending against, or, to the knowledge
    of the Harvest Parties, threatened against or affecting the Harvest Parties or any of their respective properties that, individually
    or in the aggregate, could reasonably be expected to have a material and adverse effect on the Harvest Parties’ ability
    to execute and deliver this Agreement and to perform its obligations contemplated by this Agreement or the Business Combination
    Agreement.

 

ARTICLE
3 

COVENANTS

 

	3.1	Covenants
    of the Securityholder

 

	 	(a)	The
    Securityholder hereby covenants with the Harvest Parties that the Securityholder will not, without having first obtained the
    prior written consent of the Harvest Parties:

 

	 	(i)	sell,
    transfer, gift, assign, convey, pledge, hypothecate, encumber, option or otherwise dispose of any right or interest in any
    of the Subject Securities or tender any of the Subject Securities to a take-over bid or enter into any agreement, arrangement,
    commitment or understanding in connection therewith, other than (A) pursuant to the Arrangement, (B) any exercise of warrants
    or options exercisable for Exchanged Securities in accordance with their terms, or (C) to one or more of a parent, spouse,
    child or grandchild of, or a corporation, partnership, limited liability company or other entity controlled by, the Securityholder
    or a trust or account existing for the benefit of such Person or entity, provided that in such case and for greater certainty,
    any Subject Securities acquired as a result thereof shall remain Subject Securities and subject to the terms and conditions
    of this Agreement and, in the case of a corporation, partnership, limited liability company or other entity controlled by,
    the Securityholder, provided that such entity remains controlled by the Securityholder;

 

	 	(ii)	other
    than as set forth herein, grant or agree to grant any proxies or powers of attorney, deliver any voting instruction form,
    deposit any Subject Securities into a voting trust or pooling agreement, or enter into a voting agreement, commitment, understanding
    or arrangement, oral or written, with respect to the voting of any Subject Securities; or

 

	 	(iii)	requisition
    or join in the requisition of any meeting of any of the securityholders of Harvest for the purpose of considering any resolution.

 

	 	(b)	The
    Securityholder hereby covenants, undertakes and agrees from time to time to cause to be counted as present for purposes of
    establishing quorum and to vote (or cause to be voted) all of the Subject Securities (to the extent they carry a right to
    vote):

 

	 	(i)	at
    any meeting of any of the securityholders of ParentCo or Verano at which the Securityholder or any registered or beneficial
    owner of the Subject Securities are entitled to vote, including the meeting of Prospective Shareholders to be called to approve
    the Arrangement; and

 

    	 	C-6	 

     

    

 

	 	(ii)	in
    any action by written consent of the securityholders of ParentCo or Verano, in favour of the approval, consent, ratification
    and adoption of the resolution approving the Arrangement and the transactions contemplated by the Business Combination Agreement
    (and any actions required for the consummation of the transactions contemplated by the Business Combination Agreement). In
    connection with the foregoing, subject to this Section 3.1(b), the Securityholder hereby agrees to deposit a proxy, or voting
    instruction form, as the case may be, duly completed and executed in respect of all of its Subject Securities (to the extent
    that they carry the right to vote) as soon as practicable following the mailing of the ParentCo Circular and in any event
    at least 5 Business Days prior to the meeting of securityholders to be called to approve the Arrangement and as far in advance
    as practicable of every adjournment or postponement thereof, voting all such Subject Securities (to the extent that they carry
    the right to vote) in favour of the resolution approving the Arrangement. The Securityholder hereby agrees that it will not
    take, nor permit any Person on its behalf to take, any action to withdraw, revoke, change, amend or invalidate any proxy or
    voting instruction form deposited pursuant to this Agreement notwithstanding any statutory or other rights or otherwise which
    the Securityholder might have unless this Agreement has at such time been previously terminated in accordance with Section
    4.1. The Securityholder will provide copies of each such proxy or voting instruction form (or screen shots evidencing electronic
    voting thereof) referred to above to the Harvest Parties at the address below concurrently with its delivery as provided for
    above.

 

	 	(c)	The
    Securityholder hereby covenants, undertakes and agrees from time to time to cause to be counted as present for purposes of
    establishing quorum and to vote (or cause to be voted) all of the Subject Securities (to the extent that they carry the right
    to vote) against any proposed action by ParentCo or Verano, any Prospective Shareholder, any of ParentCo or Verano’s
    subsidiaries or any other Person (or group of Persons) other than the Harvest Parties, in respect of: (i) a Company Acquisition
    Proposal or Company Superior Proposal, or (ii) which would reasonably be regarded as being directed towards or likely to prevent
    or delay the successful completion of the Arrangement, including without limitation any amendment to the articles or by-laws
    of ParentCo, Verano or any of their subsidiaries or their respective corporate structures or capitalization.

 

	 	(d)	The
    Securityholder hereby covenants, undertakes and agrees, in the event that any transaction for the proposed acquisition of
    at least a majority of the Exchanged Securities of ParentCo or Verano, where such transaction requires the approval of Prospective
    Shareholders under applicable law, other than the Arrangement, is presented prior to the Effective Time of the Arrangement
    for approval of, or acceptance by, Prospective Shareholders, whether or not it may be recommended by the board of directors
    of ParentCo or Verano, not to directly or indirectly, accept, assist or otherwise further the successful completion of such
    transaction or purport to tender or deposit into any such transaction any of the Subject Securities.

 

	 	(e)	Subject
    to Section 4.5 the Securityholder will not, and will ensure that its affiliates do not, directly or indirectly, through any
    officer, director, employee, representative or agent or otherwise:

 

	 	(i)	solicit
    proxies or become a participant in a solicitation in opposition to or competition with ParentCo’s proposed acquisition
    of the Exchanged Securities as contemplated by the Arrangement;

 

    	 	C-7	 

     

    

 

	 	(ii)	assist
    any Person in taking or planning any action that would compete with, restrain or otherwise serve to interfere with or inhibit
    ParentCo’s proposed purchase of the Exchanged Securities as contemplated by the Arrangement;

 

	 	(iii)	act
    jointly or in concert with others with respect to voting securities of ParentCo or Verano for the purpose of opposing or competing
    with ParentCo’s proposed acquisition of the Exchanged Securities as contemplated by the Arrangement;

 

	 	(iv)	solicit,
    initiate, encourage or otherwise facilitate (including by way of furnishing or providing copies of, access to, or disclosure
    of, any confidential information, properties, facilities, books or records of ParentCo or Verano or any subsidiary or entering
    into any form of agreement, arrangement or understanding) any inquiry, proposal or offer that constitutes or may reasonably
    be expected to constitute or lead to, a Company Acquisition Proposal;

 

	 	(v)	participate
    in any discussions or negotiations with any Person (other than the Harvest Parties) regarding any inquiry, proposal or offer
    that constitutes or would reasonably be expected to constitute or lead to a Company Acquisition Proposal;

 

	 	(vi)	accept
    or enter into, or publicly propose to accept or enter into, any letter of intent, agreement, arrangement or understanding
    regarding any Company Acquisition Proposal; or

 

	 	(vii)	cooperate
    in any way with, assist or participate in, knowingly encourage or otherwise facilitate or encourage any effort or attempt
    by any other Person to do or seek to do any of the foregoing.

 

	 	(f)	The
    Securityholder will not: (i) exercise any dissent rights in respect of the Arrangement; (ii) contest in any way the approval
    of the Arrangement by any Governmental Entity; or (iii) take any other action of any kind, in each case which would reasonably
    be regarded as likely to reduce the success of, or materially delay or interfere with the completion of, the transactions
    contemplated by the Business Combination Agreement.

 

	 	(g)	The
    Securityholder will, and will cause each of its affiliates and will instruct each of its representatives to, immediately cease
    and terminate, and cause to be terminated, any solicitation, encouragement, discussion, negotiations, or other activities
    commenced prior to the date of this Agreement with any Person (other than the Harvest Parties or an affiliate thereof) with
    respect to any inquiry, proposal or offer that constitutes, or may reasonably be expected to constitute or lead to, a Company
    Acquisition Proposal.

 

	 	(h)	The
    Securityholder hereby consents to:

 

	 	(i)	details
    of this Agreement being set out in any press release, information circular, including the ParentCo Circular, the Harvest Circular,
    and court documents produced by Harvest, the Harvest Parties or any of their respective affiliates in connection with the
    transactions contemplated by this Agreement and the Business Combination Agreement; and

 

	 	(ii)	this
    Agreement being made publicly available, including by filing on the System for Electronic Document Analysis and Retrieval
    (SEDAR) operated on behalf of the Canadian provincial securities regulators.

 

    	 	C-8	 

     

    

 

	 	(i)	Except
    as required by applicable law or stock exchange requirements, the Securityholder will not, and will ensure that their affiliates
    and representatives do not, make any public announcement with respect to the transactions contemplated herein or pursuant
    to the Business Combination Agreement without the prior written approval of the Harvest Parties.

 

	3.2	Covenants
    of the Harvest Parties

 

Subject
to Section 4.1, the Harvest Parties will take all steps required of them under the Business Combination Agreement to cause the
Arrangement to occur in accordance with the terms of and subject to the conditions set forth in the Business Combination Agreement.

 

ARTICLE
4 

GENERAL

 

	4.1	Termination

 

This
Agreement will terminate and be of no further force or effect upon the earliest to occur of:

 

	 	(a)	the
    mutual agreement in writing of the Securityholder and the Harvest Parties;

 

	 	(b)	written
    notice by the Securityholder to the Harvest Parties if without the prior written consent of the Securityholder, there is any
    decrease in the MVS Exchange Ratio or the SVS Exchange Ratio, as applicable;

 

	 	(c)	the
    termination of the Business Combination Agreement in accordance with its terms; and

 

	 	(d)	the
    completion of the Arrangement.

 

	4.2	Time
    of the Essence

 

Time
is of the essence in this Agreement.

 

	4.3	Effect
    of Termination

 

If
this Agreement is terminated in accordance with the provisions of Section 4.1, no Party will have any further liability to perform
its obligations under this Agreement except as expressly contemplated by this Agreement, and provided that neither the termination
of this Agreement nor anything contained in Section 4.1 will relieve any Party from any liability for any breach by it of this
Agreement, including from any inaccuracy in its representations and warranties and any non-performance by it of its covenants
made herein.

 

	4.4	Equitable
    Relief

 

The
Parties agree that irreparable harm would occur for which money damages would not be an adequate remedy at law in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.
It is accordingly agreed that the Parties shall be entitled to injunctive and other equitable relief to prevent breaches of this
Agreement, and to enforce compliance with the terms of this Agreement without any requirement for the securing or posting of any
bond in connection with the obtaining of any such injunctive or other equitable relief, this being in addition to any other remedy
to which the Parties may be entitled at law or in equity.

 

    	 	C-9	 

     

    

 

	4.5	Fiduciary
    Duty

 

Notwithstanding
anything to the contrary herein, nothing herein shall restrict or limit any director or officer of Verano from taking any action
required to be taken in the discharge of his or her fiduciary duty as a director or officer of Verano that is otherwise permitted
by, and done in compliance with, the terms of the Business Combination Agreement. The Harvest Parties further agree that the Securityholder
is not making any agreement or understanding herein in any capacity other than in the capacity as beneficial owner of the Subject
Securities.

 

	4.6	Waiver;
    Amendment

 

Each
party hereto agrees and confirms that any provision of this Agreement may be amended or waived if, and only if, such amendment
or waiver is in writing and signed, in the case of an amendment, by all of the Parties or in the case of a waiver, by the Party
against whom the waiver is to be effective. No waiver of any of the provisions of this Agreement will constitute a waiver of any
other provision (whether or not similar). No waiver will be binding unless executed in writing by the Party to be bound by the
waiver. A Party’s failure or delay in exercising any right under this Agreement will not operate as a waiver of that right.
A single or partial exercise of any right will not preclude a Party from any other or further exercise of that right or the exercise
of any other right. No waiver of any of the provisions of this Agreement will be deemed to constitute a waiver of any other provision
(whether or not similar).

 

	4.7	Entire
    Agreement

 

This
Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings among the Parties with respect thereto. For greater certainty, the transaction non-disclosure letter
agreement entered into in anticipation of entering into this Agreement remains in full force and effect.

 

	4.8	Notices

 

Any
notice, direction or other communication given regarding the matters contemplated by this Agreement (each a “Notice”)
(must be in writing, sent by personal delivery, courier or facsimile or electronic mail and addressed:

 

	 	(a)	if
                                         to the Harvest Parties at:

         

        Harvest
        Health & Recreation Inc.

        Suite
        201, 1155 West Rio Salado Parkway

        Tempe,
        Arizona 85281

         

        E-mail:
        [***]

        Attention:
        Jason Vedadi

         

        with
        a copy (which shall not constitute notice) to:

         

        Bennett
        Jones LLP

        Suite
        3400, 100 King Street West Suite

        Toronto,
        Ontario

        M5X
        1A4

         

        Attention:
        Sander Grieve

        Email:[***]

 

    	 	C-10	 

     

    

 

	 	(b)	to
    the Securityholder, at the address set out at Schedule “B” hereto.

 

Any
Notice is deemed to be given and received: (i) if sent by personal delivery or same day courier, on the date of delivery if it
is a Business Day and the delivery was made prior to 4:30 p.m. (local time in place of receipt) and otherwise on the next Business
Day, (ii) if sent by overnight courier, on the next Business Day, (iii) if sent by facsimile, on the Business Day following the
date of confirmation of transmission by the originating facsimile or (iv) if sent by email, on the same Business Day that it was
sent if the recipient acknowledged receipt prior to 4:30 p.m. (Toronto time), and otherwise, the next Business Day. A Party may
change its address for service from time to time by providing a Notice in accordance with the foregoing. Any subsequent Notice
must be sent to the Party at its changed address. Any element of a Party’s address that is not specifically changed in a
Notice will be assumed not to be changed. Sending a copy of a Notice to a Party’s legal counsel as contemplated above is
for information purposes only and does not constitute delivery of the Notice to that Party. The failure to send a copy of a Notice
to a Party’s legal counsel does not invalidate delivery of that Notice to such Party.

 

	4.9	Severability

 

If
any provision of this Agreement is determined to be illegal, invalid or unenforceable by an arbitrator or any court of competent
jurisdiction, that provision will be severed from this Agreement and the remaining provisions shall remain in full force and effect.
Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in
an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

 

	4.10	Successors
    and Assigns

 

The
provisions of this Agreement will be binding upon and enure to the benefit of the parties hereto and their respective heirs, administrators,
executors, legal representatives, successors and permitted assigns, provided that no Party may assign, delegate or otherwise transfer
any of its rights, interests or obligations under this Agreement without the prior written consent of the other Party hereto,
provided that the Harvest Parties may assign all or part of its rights under this Agreement to, and its obligations under this
Agreement may be assumed by, any of its affiliates, provided that if such assignment and/or assumption takes place, the Harvest
Parties shall continue to be liable joint and severally with such affiliate for all of its obligations hereunder.

 

	4.11	Independent
    Legal Advice

 

Each
of the Parties hereby acknowledges that it has been afforded the opportunity to obtain independent legal advice and confirms by
the execution and delivery of this Agreement that they have either done so or waived their right to do so in connection with the
entering into of this Agreement.

 

    	 	C-11	 

     

    

 

	4.12	Further
    Assurances

 

The
parties hereto will, with reasonable diligence, do all things and provide all such reasonable assurances as may be required to
consummate the transactions contemplated by this Agreement, and each Party will provide such further documents or instruments
required by the other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out
its provisions, whether before or after the Effective Time.

 

	4.13	Counterparts

 

This
Agreement may be executed in any number of counterparts (including counterparts by facsimile) and all such counterparts taken
together shall be deemed to constitute one and the same instrument. The Parties shall be entitled to rely upon delivery of an
executed facsimile or similar executed electronic copy of this Agreement, and such facsimile or similar executed electronic copy
shall be legally effective to create a valid and binding agreement between the Parties.

 

[The
remainder of this page has been intentionally left blank.]

 

    	 	C-12	 

     

    

 

IN
WITNESS OF WHICH the Parties have executed this Agreement as at the date first above written.

 

	 	[SECURITYHOLDER]
	 	 	 
	 	Per:	 
	 	Name:	
	 	Title:	
	 	 	 
	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	 
	 	Per:	 
	 	Name:	
	 	Title:	                 
	 	 	 
	 	1204599
    B.C. LTD.
	 	 	 
	 	Per:	 
	 	Name:	
	 	Title:	

 

    	 	C-13	 

     

    

 

SCHEDULE
A

Exchanged
Securities

 

	Owner	 	 	Number
    of Exchanged Securities	 	 	Number
    of Options	 	 	Number
    of Warrants	 
	 		 	 	 		 	 	 		 	 	 		 

 

    	 	C-14	 

     

    

 

SCHEDULE
B

Securityholder
Address for Notice

 

    	 	C-15	 

     

    

 

SCHEDULE
“D”

 

HARVEST
ARRANGEMENT RESOLUTION

 

BE
IT RESOLVED, AS A SPECIAL RESOLUTION, THAT:

 

	1.	The
    arrangement (the “Arrangement”) under section 288 of the Business Corporations Act (British Columbia)
    (the “BCBCA”) involving 1204899 B.C. Ltd. (“ParentCo”), 1204599 B.C. Ltd. (“Newco”)
    and Harvest Health & Recreation Inc. (“Harvest”), as more particularly described and set forth in the
    management information circular of Harvest dated ●, 2019 accompanying the notice of this meeting, as the Arrangement
    may be modified or amended in accordance with its terms, is hereby authorized, approved and adopted.

 

	2.	The
    plan of arrangement (the “Plan of Arrangement”) involving Harvest, the full text of which is set out as
    Schedule “A” to the Business Combination Agreement made as of April ●, 2019, among Verano Holdings, LLC,
    ParentCo, Newco, and Harvest (the “Business Combination Agreement”), as the Plan of Arrangement may be
    modified or amended in accordance with its terms, is hereby authorized, approved and adopted.

 

	3.	The
    Business Combination Agreement, the actions of the directors of Harvest in approving the Business Combination Agreement and
    the actions of the directors and officers of Harvest in executing and delivering the Business Combination Agreement and any
    amendments thereto in accordance with its terms are hereby ratified and approved.

 

	4.	Notwithstanding
    that this resolution has been passed (and the Plan of Arrangement adopted) by the shareholders of Harvest or that the Arrangement
    has been approved by the Supreme Court of British Columbia (the “Court”), the directors of Harvest are
    hereby authorized and empowered without further notice to or approval of the shareholders of Harvest (i) to amend the Business
    Combination Agreement or the Plan of Arrangement, to the extent permitted by the Business Combination Agreement or the Plan
    of Arrangement, and (ii) subject to the terms of the Business Combination Agreement, not to proceed with the Arrangement.

 

	5.	Any
    one director or officer of Harvest be and is hereby authorized and directed for and on behalf of Harvest to make an application
    to the Court for an order approving the Arrangement, to execute, under the corporate seal of Harvest or otherwise, and to
    deliver or file such other documents as are necessary or desirable to give effect to the Arrangement and the Plan of Arrangement
    in accordance with the Business Combination Agreement.

 

	6.	Any
    one director or officer of Harvest be and is hereby authorized and directed for and on behalf of Harvest to execute or cause
    to be executed, under the corporate seal of Harvest or otherwise, and to deliver or cause to be delivered, all such other
    documents and instruments and to perform or cause to be performed all such other acts and things as in such person’s
    opinion may be necessary or desirable to give full effect to the foregoing resolutions and the matters authorized thereby,
    such determination to be conclusively evidenced by the execution and delivery of such document, agreement or instrument or
    the doing of any such act or thing.

 

    	 	D-1	 

     

    

 

SCHEDULE
“E”

 

PARENTCO
ARRANGEMENT RESOLUTION

 

1204899
B.C. LTD. (the “Company”)

 

BUSINESS
COMBINATION AGREEMENT AND PLAN OF ARRANGEMENT

 

WHEREAS:

 

	A.	The
    Company proposes to enter into a business combination agreement (the “Business Combination Agreement”)
    with and among Harvest Health & Recreation Inc. (“Harvest”), 1204599 B.C. Ltd (“Newco”)
    and Verano Holdings, LLC (“Verano” and collectively with the Company, Harvest and Newco, the “Parties”)
    which contemplates an arrangement (the “Arrangement”) under Section 288 of the Business Corporations
    Act (British Columbia) (the “BCBCA”), whereby the Parties seek to combine their respective companies,
    all to be owned by the Resulting Issuer, as such term is defined in the Business Combination Agreement;

 

	B.	The
    Arrangement will be implemented pursuant to, and in accordance with the provisions of a plan of arrangement (the “Plan
    of Arrangement”) attached as Schedule “A” to the Business Combination Agreement;

 

	C.	The
    transactions contemplated by the Business Combination Agreement (the “Transactions”), namely the Arrangement,
    are subject to, among other things, approval by the Supreme Court of British Columbia (the “Court”), and
    by special resolution of the shareholders, passed either (i) at a meeting of shareholders where at least 662⁄3% of the
    votes cast by the Company’s shareholders holding shares that carry the right to vote are in favour of such resolution,
    or (ii) in writing by all the shareholders carrying the right to vote at general meetings of the Company;

 

	D.	The
    sole director of the Company, having reviewed all aspects of the Business Combination Agreement and the Arrangement, has determined
    that the Business Combination Agreement and the Transactions, including the Arrangement, are in the best interest of the Company
    and are fair to all of the holders of securities of the Company; and

 

	E.	Accordingly,
    the sole director wishes to approve the Business Combination Agreement and the Transactions, including the Arrangement, and
    recommend that the shareholders of the Company vote in favour of the Arrangement and the Transactions.

 

NOW
THEREFORE IT IS RESOLVED THAT:

 

	1.	The
    Business Combination Agreement, in substantially the form of the draft circulated to the sole director of the Company and
    the Transactions, are fair to the Company and to the holders of securities of the Company, are in the best interest of the
    Company, and are hereby approved.

 

    	 	E-1	 

     

    

 

	2.	The
    sole director of the Company hereby recommends that shareholders of the Company approve the Business Combination Agreement
    and the Transactions.

 

	3.	The
    Company be and is hereby authorized to enter into, execute and deliver, and to perform its obligations under, the Business
    Combination Agreement, in substantially the form of the draft circulated to the sole director of the Company, and the sole
    director of the Company is hereby authorized and directed to execute and deliver the Business Combination Agreement for and
    on behalf of the Company, with any and all such amendments thereto as may be approved by the sole director of the Company
    executing the Business Combination Agreement, such approval to be conclusively evidenced by his or her execution thereof.

 

	4.	The
    Plan of Arrangement, as the same may be amended, modified or supplemented pursuant to the provisions thereof, is hereby approved
    and authorized.

 

	5.	The
    applications, as necessary, to the Court for approval of the Arrangement, and the Transactions be and are hereby ratified,
    confirmed and approved and the sole director of the Company is hereby authorized to file with the Court all documents, certificates,
    declarations and other documents as may be necessary or advisable in connection with the Arrangement.

 

	6.	All
    agreements, documents, deeds, instruments, writings, acts or proceedings connected with or pertaining to the Arrangement which
    may heretofore have been executed, made, done or performed by the Company or by any one of the director or the officer of
    the Company, be and are hereby authorized, approved, ratified and confirmed.

 

	7.	Notwithstanding
    that the resolutions have been passed (and the Arrangement adopted) by the shareholders of the Company in accordance with
    the interim order of the Court, or that the Arrangement has been approved by the Court, the sole director of the Company is
    hereby authorized, without further notice to or approval of the shareholders of the Company: (i) to amend the Plan of Arrangement
    to the extent permitted by the Business Combination Agreement and the Plan of Arrangement; and (ii) subject to the terms of
    the Business Combination Agreement, not to proceed with the Arrangement or to otherwise give effect to these resolutions.

 

	8.	The
    sole director of the Company is hereby authorized, for and on behalf and in the name of the Company, to execute and deliver
    all such agreements, forms, waivers, notices, certificate, confirmations and other documents and instruments, and to do or
    cause to be done all such other acts and things, as in the opinion of such director may be necessary, desirable or useful
    for the purpose of giving effect to these resolutions, the Business Combination Agreement and the completion of the Plan of
    Arrangement in accordance with the terms of the Business Combination Agreement, including:

 

	 	(a)	all
    actions required to be taken by or on behalf of the Company, and all necessary filings and obtaining the necessary approvals,
    consents and acceptances of appropriate regulatory authorities; and

 

	 	(b)	the
    signing of the certificates, consents and other documents or declarations required under the Business Combination Agreement
    or otherwise to be entered into by the Company,

 

such
determination to be conclusively evidenced by the execution and delivery of such document, agreement or instrument or the doing
of any such act or thing.

 

    	 	E-2	 

     

    

 

SCHEDULE
“F”

 

LOCKED-UP
SHAREHOLDERS

 

[***]

 

    	 	F-1	 

     

    

 

SCHEDULE
“G”

 

KEY
LICENSES

 

[***]

 

    	 	G-1	 

     

    

 

SCHEDULE
“H”

 

ACQUISITION
TARGETS

 

[***]

 

    	 	H-1	 

     

    

 

SCHEDULE
“I”

 

PIPELINE
CONTINGENT ACQUISITIONS

  

[***]

 

    	 	I-1Exhibit 10. 18 

 

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.

 

INVESTMENT
AGREEMENT

 

May
10, 2019

 

Harvest
Health & Recreation Inc.

1155
W. Rio Salado Parkway

Suite
201

Tempe,
Arizona 85281

 

Attention:
Jason Vedadi, Executive Chairman

 

	Re:	Convertible
    Debenture Facility

 

The
undersigned, [***], (the “Investor”), understands that Harvest Health & Recreation, Inc. (the “Company”
or the “Issuer”) proposes to sell, and the Investor propose to purchase, on an private placement agency basis
through Eight Capital (the “Agent”), over an eighteen (18) month period commencing on the date hereof (the
“Term”), up to 400,000 unsecured convertible debentures (the “Convertible Debentures”) in
the principal amount of US$1,000 per Convertible Debentures, completed in Tranches (as defined below).

 

The
maximum amount of Convertible Debentures to be subscribed for over the Term is four hundred million dollars (US$400,000,000) (herein,
the “Offering”) in lawful money of the United States of America. The Convertible Debentures will be issuable
in four tranches (each a “Tranche”) of 100,000 Convertible Debentures per Tranche upon prior notice by the
Company. The Investor shall be entitled to appoint, at its sole discretion, a syndicate consisting of other investors to participate
in the Offering. The Investor and any syndicate members will subscribe for 100,000 Convertible Debentures in each Tranche in their
respective pro rata shares (the “Pro Rata Share”), provided the each syndicate member shall meet the criteria
set out in Section 9(b). If any syndicate member fails to subscribe for their Pro Rata Share in respect of any Tranche, the Investor
will subscribe for any Convertible Debentures not subscribed for by such syndicate member.

 

The
first Tranche shall be issuable no earlier than 60 days following the date of this Agreement. Each subsequent Tranche shall be
issuable no earlier than the 60th day following the issuance of the immediately preceding Tranche (the “Draw-Down
Period”). Notwithstanding the foregoing, the Company may at any time decide, in its discretion, not to issue any Convertible
Debentures pursuant to the Offering.

 

The
Company shall issue to the Investor and any syndicate members in the first Tranche common share purchase warrants (each, a “Warrant”)
in the Pro Rata Share to purchase subordinated voting shares (each, a “Common Share”) in the capital of the
Company in an amount equal to 40% of the number of Common Shares issuable upon conversion of Convertible Debentures of the first
Tranche. The Company shall issue to the Investor in the second Tranche Warrants to Common Shares in an amount equal to 20% of
the number of Common Shares issuable upon conversion of Convertible Debentures of the second Tranche. No additional Warrants will
be issued to the Investor in respect of any subsequent Tranche completed after the first and second Tranches.

 

    	 

    	- 2 -

    

 

It
is understood and acknowledged by the Investor that the Company and the Agent have entered into an agency agreement dated as of
the date hereof (the “Agency Agreement”) pursuant to which the Agent has agreed to act, as agent to the Company
to effect the Offering on a best efforts agency basis, without underwriter liability. In consideration of the services to be rendered
by the Agent under the Agency Agreement and all other matters in connection with the offer and issue and sale of the Convertible
Debentures, the Company shall, subject to the provisions hereof, pay to the Agent a commission (the “Commission”)
equal to 4.0% of the aggregate gross proceeds of the Offering. The Commission will be payable by the Company on the Closing Date
of each Tranche.

 

The
Convertible Debentures will bear interest at a rate of 7.0%, payable semi-annually in arrears on June 30 and December 31 of each
year, commencing on the date of issuance. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day
months. The maturity date for the Convertible Debentures will be 36 months following the applicable date of issuance (the “Maturity
Date”).

 

The
Convertible Debentures will be convertible at the option of the holder of the Convertible Debenture into Common Shares at any
time prior to the close of business on the last Business Day immediately preceding the Maturity Date, subject to the policies
of the Exchange, at a conversion price, expressed in U.S. dollars, equal to a 15% premium to the volume weighted average trading
price of the Common Shares on the Exchange (as defined below) during the five (5) trading days commencing on the trading day after
the acceptance by the Investor of the applicable Draw-Down Notice and ending on the trading day immediately preceding the Closing
Date (as defined below) of each applicable Tranche (the “Conversion Price”), subject to adjustment in certain
events. For the purposes of determining the Conversion Price of the Convertible Debentures, the U.S. dollars equivalent of the
trading price of the Common Shares will be determined based on the Bank of Canada USD/CAD exchange rate on the date that is two
(2) Business Days (as defined below) prior to the issuance of the applicable Tranche of Convertible Debentures.

 

Commencing
on the date that is four months plus one day following the Closing Date of each applicable Tranche, the Company may require the
holder of the Convertible Debentures to convert all but not less than all of the then outstanding principal amount of the Convertible
Debentures issued in the applicable Tranche at the Conversion Price, if, for any ten (10) consecutive trading days commencing
on the date that is four months plus one day following the Closing Date of the applicable Tranche and prior to the applicable
Maturity Date, the daily volume weighted average trading price of the Common Shares on the Exchange, is greater than a 40% premium
to the applicable Conversion Price, provided that the Company gives 30 days’ advance written notice of such conversion to
the holder of the Convertible Debentures, subject to such conversion being permitted under the policies of the Exchange. For greater
certainty, ten (10) consecutive trading 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 the Convertible Debentures. Notwithstanding the foregoing,
the Company shall not be permitted to force conversion of the Convertible Debentures 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
Convertible Debentures during the restricted period.

 

    	 

    	- 3 -

    

 

Each
Warrant will entitle the holder thereof to acquire one Common Share, subject to the policies of the Exchange, at an exercise price
(“Warrant Exercise Price”) equal to a 30% premium to the volume weighted average trading price of the Common
Shares on the Exchange during the five (5) trading days immediately preceding the Closing Date of each applicable Tranche exercisable
for a period of 36 months following the Closing Date of the applicable Tranche, subject to adjustment in certain circumstances.

 

The
Convertible Debentures shall be duly and validly created and issued pursuant to, and governed by, the certificates representing
the Convertible Debentures (the “Debenture Certificates”), in substantially the form of the certificate attached
as Schedule B hereto with such changes as required for the particular terms of a Tranche. The Warrants shall be duly and validly
created and issued pursuant to, and governed by, the certificates representing the Warrants (the “Warrant Certificates”),
in substantially the form of the certificate attached as Schedule C hereto with such changes as required for the particular terms
of a Tranche. To the extent there is any inconsistency between the description of the terms of the Convertible Debentures and
Warrants, as applicable, contained in this Agreement and the Debenture Certificates and Warrant Certificates, as applicable, the
terms set forth in the Debenture Certificates and Warrant Certificates shall govern.

 

All
references to “dollars” or “$” in this Agreement refer to Canadian dollars and all references to “U.S.
dollars” or “US$” in this Agreement refer to United States of America dollars, unless the context otherwise
requires.

 

	1.	Tranches

 

All
Tranches shall be initiated upon the receipt and acceptance by the Investor of a written irrevocable notice (“Draw-Down
Notice”) in the form attached hereto as Schedule B no sooner than sixty (60) calendar days following the closing (“Closing”)
of the previous Tranche.

 

Subject
to the terms and conditions set forth in this Agreement, the Investor agrees to subscribe (subject to syndication as provided
above) for Convertible Debentures for maximum proceeds of US$100,000,000 in any Draw-Down Period upon acceptance by the Investor
of a “Draw-Down Notice”, provided that: (i) the Company delivers an irrevocable Draw-Down Notice to the Investor in
respect of the applicable Tranche; (ii) a period of not less than five Business Days’ (as defined below) has passed commencing
on the Business Day after the issuance of the Press Release (as defined below) and ending on the Business Day preceding the applicable
drawdown date; and (iii) the terms of any drawdown in the Subscription Agreement are satisfied. Notwithstanding the foregoing,
the Company shall not be permitted to initiate a drawdown hereunder during any period when the Investor is subject to restrictions
on trading in securities of the Company under applicable securities laws.

 

Upon
receipt of an irrevocable Draw-Down Notice, but subject to the conditions of each Tranche being met in favour of the Investor,
the Investor will, within two (2) Business Days, counter-sign the Draw-Down Notice and send it back to the Company: (i) confirming
that they accept such notice, or (ii) notifying the Company that the Investor do not accept the Draw-Down Notice and providing
reasons for such non-acceptance. Provided that the conditions to initiate a Tranche set out in this Section 1 are satisfied and
the conditions prohibiting delivery of a Draw-Down Notice set out in Section 13 have not occurred, or if occurred are not continuing,
the Investor shall be required to accept the Draw Down Notice.

 

    	 

    	- 4 -

    

 

If
the Investor signs back the Draw-Down Notice (accepting its terms), the Company shall immediately file, if necessary, an amended
Form 9 (or such other form or procedure prescribed by the Exchange) in order to establish the Conversion Price and Warrant Exercise
Price for the Convertible Debentures and Warrants to be purchased in the Tranche in question. Immediately following the acceptance
of a Draw-Down Notice by the Investor, the Company shall issue a press release (“Press Release”) announcing
the terms of the offering of Convertible Debentures and Warrants to be purchased in the Tranche in question.

 

The
Company shall provide the Investor with a copy of the Press Release, the amended Form 9 (or such other form or procedure prescribed
by the Exchange), if any, filed with the Exchange and the conditional approval request made by the Company, if any, to the Exchange
for each such Tranche.

 

The
Company may withdraw a Drawdown Notice for the issuance of a Tranche if volume weighted average trading price of the Common Shares
on the Exchange during the five (5) trading days immediately preceding the Closing Date is 20% lower than the volume weighted
average trading price of the Common Shares for the five (5) trading days immediately preceding the date of the Drawdown Notice.

 

In
order for a Tranche to be initiated, the following conditions must be met:

 

	 	(a)	the
    Company shall not be subject to any cease trade orders in the Reporting Provinces;
	 	 	 
	 	(b)	the
    Common Shares shall continue to be listed on the Exchange;
	 	 	 
	 	(c)	the
    issuance of the Convertible Debentures and Warrants shall be in compliance with the policies of the Exchange;
	 	 	 
	 	(d)	the
    market capitalization (assuming the conversion of all multiple voting shares and super voting shares into Common Shares) of
    the Company shall exceed $2 billion, based on volume weighted average trading price of the Common Shares on the Exchange during
    the five (5) trading days immediately preceding the date of the Drawdown Notice;
	 	 	 
	 	(e)	the
    Company shall be in a position to deliver on closing of the applicable Tranche, a certificate confirming the accuracy of all
    representations and warranties in all material respects contained in this Agreement, as if such representations and warranties
    were provided as of the date of such Tranche;
	 	 	 
	 	(f)	the
    Company shall not be in breach of any covenant owing to the Investor under this Agreement;
	 	 	 
	 	(g)	the
    Common Shares issuable to any Investor pursuant to a Tranche, when aggregated with the Common Shares and securities exercisable
    or convertible into Common Shares held by such Investor on the date of the closing of the particular Tranche, would not result
    in such Investor becoming a “control person” of the Company (as such term is defined in the Securities Act
    (Ontario);

 

    	 

    	- 5 -

    

 

	 	(h)	no
    proceedings shall have been commenced for the liquidation, dissolution, bankruptcy, insolvency or winding-up of the Company
    or any substantial part of its business; and
	 	 	 
	 	(i)	the
    Investor (or a syndicate member, as applicable) and one or more shareholders of the Company shall have entered into a Security
    Lending Agreement (as defined herein) for the free loan of Common Shares of the Company equal to 40% of the aggregate number
    of Common Shares issuable upon conversion of the Convertible Debentures issued in the applicable Tranche, to the Investor
    in their Pro Rata Share for the term of thirty-six (36) months from the applicable Closing Date on terms satisfactory to the
    Investor, acting reasonably, including, without limitation, that such Common Shares subject to the securities loan arrangements
    are free of any resale restrictions in Canada or any legend intended to restrict their sale, or if any such Common Shares
    bear a legend such legend is removed on or prior to the Closing Date.

 

	2.	Documents
    Required for a Tranche

 

Assuming
the conditions for the initiation of a Tranche have been met and the conditions prohibiting delivery of a Draw-Down Notice set
out in Section 13 have not occurred, or if occurred are not continuing, the parties shall enter into the following documents or
make the following deliveries:

 

	 	(a)	A
    duly executed irrevocable Draw-Down Notice (in the form of Schedule D attached) in respect to the applicable Tranche;
	 	 	 
	 	(b)	The
    Company shall have issued a press release announcing the issuance of the particular Tranche of Convertible Debentures immediately
    upon acceptance of the applicable Draw-Down Notice by the Investor;
	 	 	 
	 	(c)	A
    duly executed Subscription Agreement (in the form of Schedule A attached) in respect to the applicable Tranche;
	 	 	 
	 	(d)	A
    Debenture Certificate issued to the Investor (or a syndicate member, as applicable) representing the Convertible Debentures
    convertible at the applicable Conversion Price (in the form of Schedule B attached) in respect to the applicable Tranche;
	 	 	 
	 	(e)	In
    respect of the first Tranche and the second Tranche, a Warrant Certificate issued to the Investor (or a syndicate member,
    as applicable) representing the Warrants exercisable at the applicable Warrant Exercise Price (in the form of Schedule C attached)
    in respect to the applicable Tranche;

 

    	 

    	- 6 -

    

 

	 	(f)	A
    bring-down certificate of a senior officer of the Company attesting to the continued accuracy in all material respects of
    all representations, warranties and covenants contained in this Agreement, as if such representations, warranties and covenants
    were given as of the day of funding of the applicable Tranche;
	 	 	 
	 	(g)	A
    certificate of a senior officer of the Company attesting to the consolidated capitalization of the Company as of the date
    immediately preceding the Closing Date;
	 	 	 
	 	(h)	On
    the Closing Date, the Investor shall deliver same day funds to the Agent, by wire transfer, bank draft or certified funds
    in U.S. dollars;
	 	 	 
	 	(i)	On
    the Closing Date, the Agent shall deliver same day funds to the Company, after deduction of the applicable commission, by
    wire transfer, bank draft or certified funds in U.S. dollars, against delivery of the Debenture Certificate and Warrant Certificate
    representing the Convertible Debentures and Warrants in relation to the applicable Tranche;
	 	 	 
	 	(j)	Evidence
    of approval of the Exchange to the applicable Tranche, if necessary; and
	 	 	 
	 	(k)	Certificate
    of the Transfer Agent as to its due appointment as registrar and transfer agent of the Common Shares and the number of issued
    and outstanding Common Shares as of the date immediately preceding the Closing Date.

 

Capitalized
terms used but not defined above have the meanings ascribed to those terms in subsection 3(a) of this Agreement.

 

	3.	Definitions

 

	 	(a)	Where
    used in this Agreement, or in any amendment hereto, unless there is something in the subject matter or context inconsistent
    therewith, the following words and phrases shall have the respective meanings ascribed to them as follows:

 

“Acquiror”
has the meaning given to such term in Section 20;

 

“affiliate”
shall have the meaning ascribed to such term under Securities Laws;

 

“Agreement”,
“hereto”, “herein”, “hereby”, “hereunder”, “hereof”
and similar expressions refer to this investment agreement and not to any particular section, subsection, clause, subdivision
or other portion hereof and include any and every instrument supplemental or ancillary hereto;

 

“Assets
and Properties” with respect to any person means all material assets and properties of every kind, nature, character
and description (whether real, personal or mixed, tangible or intangible, choate or inchoate, absolute, accrued, contingent, fixed
or otherwise, and, in each case, wherever situated), including the goodwill related thereto, operated, owned or leased by or in
the possession of such person.

 

    	 

    	- 7 -

    

 

“Applicable
Laws” means, in relation to any person or persons, the Securities Laws and all other statutes, regulations, rules, orders,
by-laws, codes, ordinances, decrees, the terms and conditions of any grant of approval, permission, authority or licence, or any
judgment, order, decision, ruling, award, policy or guidance document that are applicable to such person or persons or its or
their business, undertaking, property or securities and emanate from a Governmental Authority having jurisdiction over the person
or persons or its or their business, undertaking, property or securities;

 

“Business
Day” means any day (other than a Saturday, Sunday or a statutory holiday in Toronto, Ontario or Phoenix, Arizona) on
which the Exchange is open for trading;

 

“Closing”
means completion of a Tranche consisting of the issue and sale by the Company of the Convertible Debentures pursuant to a Subscription
Agreement;

 

“Closing
Date” means the date for a Closing for a particular Tranche, which shall be the Business Day following the fifth trading
day after acceptance of a Drawdown Notice by the Investor or such later date as agreed to by the Company and the Investor, each
acting reasonably;

 

“Closing
Time” means 1:00 p.m. (Toronto time) on the Closing Date, or any other time on the Closing Date as may be agreed to
by the Company and the Investor;

 

“Common
Shares” means the subordinate voting shares in the capital of the Company as constituted on the date hereof;

 

“Company”
has the meaning given to such term in the first paragraph of this Agreement;

 

“Disclosure
Documents” means, collectively, all of the publicly available documents which have been filed by or on behalf of the
Company since September 11, 2018 with the Securities Commission pursuant to the requirements of applicable Securities Laws, including,
without limitation, all press releases, annual information forms, material change reports, financial statements, management’s
discussion and analysis, information circulars, business acquisition reports and other documents that have been publicly disclosed
by the Company and posted on SEDAR, as applicable;

 

“distribution”
means “distribution” or “distribution to the public”, which terms have the meanings attributed
thereto under the Securities Laws or any of them;

 

“Exchange”
means the Canadian Securities Exchange, or another Canadian stock exchange upon which the Common Shares are listed and upon which
the majority of the trading of the Common Shares occurs, or such other exchange as may be acceptable to the Investor, acting reasonably;

 

“Governmental
Authority” means any governmental authority and includes, without limitation, any national or federal government, province,
state, municipality or other political subdivision of any of the foregoing, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled
(through stock or capital ownership or otherwise) by any of the foregoing;;

 

“Investor”
has the meaning given to such term in the first paragraph of this Agreement;

 

    	 

    	- 8 -

    

 

“Investor
Counsel” means McMillan LLP, Canadian legal counsel for the Investor;

 

“Investor
Legal Expenses” has the meaning given to such term in Section 14;

 

“Material
Adverse Effect” when used herein means the effect resulting from any change (including a decision to implement such
a change made by the board of directors or by senior management of the Company who believe that confirmation of the decision of
the board of directors is probable), event, violation, inaccuracy or circumstance that is or would reasonably be expected: (i)
to be materially adverse to the business, the Assets and Properties, capitalization, condition (financial or otherwise), prospects
or results of operations of the Company and the Subsidiaries, taken as a whole, whether or not in the ordinary course of business;
(ii) to have a significant negative effect on the market price or value of the securities of the Company or the Common Shares;
or (iii) to result in any document containing a misrepresentation;

 

“material
change”, “material fact” and “misrepresentation” shall have the meanings ascribed to such terms
under Securities Laws;

 

“Material
Subsidiaries” means the entities listed in Schedule “E”, and each, a “Material Subsidiary”;

 

“Offering”
has the meaning given to such term in the first paragraph of this Agreement;

 

“person”
means any individual, corporation, partnership, trust, fund, association, syndicate, organization or other organized group of
persons, whether incorporated or not, and an individual or other person in that’s person’s capacity as a trustee,
executor, administrator or personal or other legal representative;

 

“Reporting
Provinces” means, at any point in time, any Province of Canada in which the Company is a “reporting issuer”
as defined in Securities Laws;

 

“Securities”
means the Convertible Debentures, the Warrants, and the Common Shares and the Warrant Shares issuable upon conversion or exercise
of the Convertible Debentures and Warrants, as applicable;

 

“Securities
Commissions” means the securities commissions or similar securities regulatory authorities in the Reporting Provinces;

 

“Securities
Laws” means, as applicable, all applicable securities laws in each of the Reporting Provinces, and the respective regulations
made thereunder, together with applicable published fee schedules, prescribed forms, policy statements, national or multilateral
instruments, orders, and other published regulatory instruments of the Securities Commissions;

 

“Security
Lending Agreement” means the securities lending agreement between the Investor and any syndicate members in their Pro
Rata Share and one or more shareholders to be entered into on or prior to the Closing of the first Tranche;

 

“SEDAR”
means the System for Electronic Document Analysis and Retrieval;

 

    	 

    	- 9 -

    

 

“Subscription
Agreements” means, collectively, the agreements to subscribe for Convertible Debentures and Warrants, as applicable,
between the Company and the Investor substantially in the form attached hereto as Schedule A; and “Subscription Agreement”
means any one of them;

 

“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, and each a “Subsidiary”;

 

“Warrant”
has the meaning ascribed thereto on the face page hereof; and

 

“Warrant
Share” means a Common Share issuable upon exercise of the Warrants.

 

	 	(b)	Unless
    otherwise indicated, all references to monetary amounts in this Agreement are to lawful money of Canada.
	 	 	 
	 	(c)	Any
    reference in this Agreement to a schedule, section, paragraph, subsection, subparagraph, clause or subclause will refer to
    a schedule, section, paragraph, subsection, subparagraph, clause or subclause of this Agreement.
	 	 	 
	 	(d)	The
    schedules hereto are incorporated into this Agreement by reference and are deemed to be a part hereof.
	 	 	 
	 	(e)	Unless
    otherwise expressly provided in this Agreement, words importing the singular number include the plural and vice versa and
    words importing gender include all genders and the gender neutral.

 

	4.	Material
    Change

 

	 	(a)	During
    the period from the date of this Agreement until the last Closing of the Offering the Company shall promptly comply with all
    applicable filing and other requirements under Securities Laws in connection with the Offering and shall prepare any document
    or material as may be required under Securities Laws in respect of the following:
	 	 	 	 
	 	 	(i)	any
    material change in or affecting the business, operations, capital, properties, assets (including intangible assets), liabilities
    (absolute, accrued, contingent or otherwise), condition (financial or otherwise) or results of operations of the Company and
    its Subsidiaries (taken as a whole);
	 	 	 	 
	 	 	(ii)	any
    material fact which has arisen or has been discovered or any new material fact contained or referred to in this Agreement,
    the Subscription Agreements or any Disclosure Document;

 

    	 

    	- 10 -

    

 

	 	(b)	During
    the term of this Agreement the Company shall promptly notify the Investor of the following:
	 	 	 	 	 
	 	 	(i)	any
    event or state of facts has occurred after the date hereof, which, in any case, is, or may be, of such a nature as to:
	 	 	 	 	 
	 	 	 	(1)	render
    any representation or warranty contained in this Agreement or the Subscription Agreements untrue or misleading in any material
    respect, or
	 	 	 	 	 
	 	 	 	(2)	to
    result in this Agreement or the Subscription Agreements containing a misrepresentation, including as a result of this Agreement
    or the Subscription Agreements containing or incorporating by reference an untrue statement of a material fact or omitting
    to state a material fact required to be stated therein or necessary to make any statement therein not false or not misleading
    in the light of the circumstances in which it was made, or
	 	 	 	 	 
	 	 	 	(3)	which
    would reasonably be expected to result in this Agreement or the Subscription Agreements not complying with the applicable
    Securities Laws;
	 	 	 	 	 
	 	 	(ii)	any
    request of any Securities Commission or the Exchange for any information in respect of the Offering;
	 	 	 	 	 
	 	 	(iii)
    	the
    receipt by the Company of any material communication, whether written or oral, from any Securities Commission, the Exchange
    or any other competent authority, relating to the Offering;
	 	 	 	 
	 	 	(iv)
    	any
    notice or other correspondence received by the Company from any Governmental Authority and any requests from such bodies for
    information, a meeting or a hearing relating to the Offering, the issue and sale of the Securities or any other event or state
    of affairs that would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect; or
	 	 	 	 
	 	 	(v)	the
    issuance by any Securities Commission, the Exchange or any other competent authority, including any other Governmental Authority,
    of any order to cease or suspend trading or distribution of any securities of the Company or of the institution of any proceedings
    for that purpose or any notice of investigation that could potentially result in an order to cease or suspend trading or distribution
    of any securities of the Company.

 

    	 

    	- 11 -

    

 

	5.	Company
    Representations and Warranties.

 

The
Company represents and warrants to the Investor, as of the date hereof and as of the Closing Time and at the time of each subsequent
Closing, and acknowledges that the Investor are relying upon such representations and warranties in entering into this Agreement,
and agrees with the Investor, as follows:

 

	 	(a)	the
    Company is validly existing under the Business Corporations Act (British Columbia) and is and will on each Closing
    Date be up-to-date in all corporate filings except where the failure to make any such filings would not reasonably be expected
    to have a Material Adverse Effect, has all requisite corporate power and corporate authority or power and authority, as applicable,
    to carry on its business as now conducted and to own, lease or operate its Assets and Properties, including as described in
    the Disclosure Documents, and neither the Company nor, to the knowledge of the Company, any other person, has taken any steps
    or proceedings, voluntary or otherwise, requiring or authorizing the Company’s dissolution or winding up, and the Company
    has all requisite corporate power and corporate authority to enter into this Agreement and to carry out its obligations hereunder
    and thereunder (including, without limitation, the issuance of the Convertible Debentures and Warrants comprising the Convertible
    Debentures, the Common Shares and the Warrant Shares issuable upon conversion or exercise of the Convertible Debentures and
    Warrants, as applicable);
	 	 	 
	 	(b)	each
    Material Subsidiary is a corporation duly incorporated, amalgamated, continued or organized and existing under the laws of
    its jurisdiction of incorporation, amalgamation, continuation or organization and has all requisite corporate or other power
    and authority to own, lease and operate its property and assets and conduct its business. The Material Subsidiaries are current
    with all corporate filings required to be made under their respective jurisdictions of incorporation and all other jurisdictions
    in which they carry on business, and have all necessary licences, leases, permits, authorizations and other approvals necessary
    to permit them to conduct their respective business as currently conducted;
	 	 	 
	 	(c)	no
    proceedings have been taken, instituted or, to the knowledge of the Company, are pending for the dissolution or liquidation
    of the Company or any Material Subsidiary;
	 	 	 
	 	(d)	this
    Agreement has been duly authorized and executed and delivered by the Company and constitutes a valid and binding obligation
    of the Company, enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited
    by bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting the rights of creditors generally
    and except as limited by the application of equitable principles when equitable remedies are sought, and by the fact that
    rights to indemnity, contribution and waiver, and the ability to sever unenforceable terms, may be limited by Applicable Laws;

 

    	 

    	- 12 -

    

 

	 	(e)	all
    consents, approvals, permits, authorizations or filings as are required by the Company under Canadian Securities Laws for
    the execution and delivery of this Agreement, and the performance of its obligations hereunder and thereunder and the issue
    and sale of the Convertible Debentures, have been or will be made or obtained, as applicable;
	 	 	 
	 	(f)	no
    order, ruling or determination having the effect of suspending the sale or ceasing the trading in any securities of the Company
    has been issued by any regulatory authority and is continuing in effect and no proceedings for that purpose have been instituted
    or, to the knowledge of the Company, are pending, contemplated or threatened, by any regulatory authority;
	 	 	 
	 	(g)	each
    of the execution and delivery of this Agreement, and the performance by the Company of its obligations hereunder, the issue
    and sale of the Convertible Debentures and the consummation of the transactions contemplated in this Agreement, including
    the issuance of the Convertible Debentures, do not and will not (as the case may be) conflict with or result in a breach or
    violation of any of the terms or provisions of, or constitute a default under (whether after notice or lapse of time or both):
    (A) Securities Laws; (B) the constating documents, articles, notice of articles or resolutions of the Company and any Material
    Subsidiary which are in effect at the date hereof; (C) any mortgage, note, indenture, contract, agreement, joint venture,
    partnership, instrument, lease or other document to which the Company or any Material Subsidiary is a party or by which it
    is bound; or (D) any judgment, decree or order binding the Company, any Material Subsidiary or their respective Assets and
    Properties;
	 	 	 
	 	(h)	other
    than the Agent, there is no person acting or purporting to act at the request or on behalf of the Company that is entitled
    to any brokerage or finder’s fee or other compensation in connection with the transactions contemplated by this Agreement.

 

	6.	Investor
    Representations and Warranties.

 

Each
of the Investor severally represents and warrants to the Company, and acknowledges that the Company is relying upon such representations
and warranties in entering into this Agreement, as of the date hereof and as of the Closing Time and each subsequent Closing,
that:

 

	 	(a)	the
    Investor has been formed and is existing under the laws of the Investor’s jurisdiction of formation and has the corporate
    power to enter into and perform its obligations under this Agreement;
	 	 	 
	 	(b)	the
    execution and delivery of and performance by the Investor of this Agreement has been authorized by all necessary action on
    the part of the Investor;
	 	 	 
	 	(c)	this
    Agreement has been duly executed and delivered by the Investor and constitutes a legal, valid and binding agreement of the
    Investor, enforceable against such Investor in accordance with its terms; and
	 	 	 
	 	(d)	the
    Investor shall, as of each Closing Time in respect of a particular Tranche, have sufficient sources of immediately available
    funds to enable the Investor to consummate the Closing of such Tranche.

 

    	 

    	- 13 -

    

 

	7.	Closing.
	 	 	 
	 	(a)	Closing.
    The Closing will be completed at the Closing Time at the offices of Company’s Counsel in Toronto, Ontario, or at such
    other place and time as the Investor and the Company agree upon, each acting reasonably.
	 	 	 
	 	(b)	Payment.
    At the Closing Time, and subject to the terms and conditions contained in this Agreement, the Subscription Agreement and the
    Agency Agreement, the Company will issue and deliver the Debenture Certificate and Warrant Certificate, as applicable, representing
    the Convertible Debentures and, if applicable, Warrants to be issued to the Investor or any syndicate member in respect of
    a Tranche, against payment of the subscription proceeds.

 

	8.	Covenants
    of the Company.

 

The
Company covenants and agrees with the Investor, and acknowledges that the Investor is relying on such covenants in connection
with the entering into of this Agreement and the purchase by the Investor of the Convertible Debentures pursuant to the Offering,
that the Company:

 

	 	(a)	will
    use its commercially reasonable efforts to promptly do, make, execute, deliver or cause to be done, made, executed or delivered,
    all such acts, documents and things as the Investor may reasonably require (or which may be required pursuant to Securities
    Laws) from time to time for the purpose of giving effect to this Agreement and take all such steps as may be reasonably within
    its power to implement the provisions of this Agreement and the transactions contemplated hereunder;
	 	 	 
	 	(b)	will
    use its commercially reasonable efforts to remain, and to cause each of the Material Subsidiaries to remain, a corporation
    validly subsisting under the laws of its jurisdiction of incorporation, and to be duly licensed, registered or qualified as
    an extra-provincial or foreign corporation in all jurisdictions where the character of its properties owned or leased or the
    nature of the activities conducted by it make such licensing, registration or qualification necessary and to carry on its
    business in the ordinary course and in compliance in all material respects with all Applicable Laws, rules and regulations
    of each such jurisdiction;
	 	 	 
	 	(c)	will
    use its commercially reasonable efforts to maintain its status as a “reporting issuer” (or the equivalent thereof)
    not in default of the requirements of the Securities Laws of each of the Reporting Provinces which have such a concept and
    will comply with all of its obligations under Applicable Laws;
	 	 	 
	 	(d)	will
    use its commercially reasonable efforts to maintain the listing of the Common Shares on the Exchange or such other recognized
    stock exchange or quotation system as the Investor may approve, acting reasonably;

 

    	 

    	- 14 -

    

 

	 	(e)	will
    promptly do, make, execute, deliver or cause to be done, made, executed or delivered, all such acts, documents and things
    as the Investor may reasonably require from time to time for the purpose of giving effect to this Agreement and the Company
    will use its commercially reasonable efforts to implement to their full extent the provisions, and to satisfy the conditions,
    of this Agreement;
	 	 	 
	 	(f)	will
    forthwith notify the Investor of any breach of any covenant of this Agreement or any ancillary documents, by any party thereto,
    or upon it becoming aware that any representation or warranty of the Company contained in this Agreement or any ancillary
    document, is or has become untrue or inaccurate in any material respect;
	 	 	 
	 	(g)	will
    ensure that the Securities purchased pursuant to the Offering are duly and validly created, authorized and issued on payment
    of the purchase price therefor and have attributes corresponding in all material respects to the description thereof set forth
    in this Agreement and the Subscription Agreements;
	 	 	 
	 	(h)	will
    ensure that at all times a sufficient number of Common Shares are duly and validly allotted and reserved for issuance upon
    any conversion of the Convertible Debentures;
	 	 	 
	 	(i)	will
    ensure that at all times a sufficient number of Warrant Shares are duly and validly allotted and reserved for issuance upon
    any exercise of the Warrants;
	 	 	 
	 	(j)	in
    connection with the Offering, will execute and file with the Securities Commissions all forms, notices and certificates required
    to be filed pursuant to applicable Securities Laws within prescribed time periods; and
	 	 	 
	 	(k)	will
    use its commercially reasonable efforts to ensure that the Offering is conducted in a manner that is in compliance with applicable
    Securities Laws.

 

	9.	Covenants
    of the Investor.

 

The
Investor covenants and agrees with the Company, and acknowledges that the Company is relying on such covenants in connection with
the entering into of this Agreement and the offer and sale of the Convertible Debentures to the Investor pursuant to the Offering,
that the Investor:

 

	 	(a)	will
    use its commercially reasonable efforts to promptly do, make, execute, deliver or cause to be done, made, executed or delivered,
    all such acts, documents and things as may be required pursuant to Securities Laws from time to time for the purpose of giving
    effect to this Agreement;
	 	 	 
	 	(b)	will
    promptly do, make, execute, deliver or cause to be done, made, executed or delivered, all such acts, documents and things
    as may be required pursuant to Securities Laws from time to time for the purpose of giving effect to this Agreement and take
    all such steps as may be reasonably within its power to implement the provisions of this Agreement and the transactions contemplated
    hereunder; and

 

    	 

    	- 15 -

    

 

	 	(c)	will
    not invite into the syndicate any member that: (i) is a U.S. Person, (ii) that is not an “accredited investor”,
    or (iii) that is resident in any jurisdiction that would require the Company to 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 Convertible Debentures, Warrants or the Common Shares or to otherwise comply with any continuous
    disclosure obligations under the applicable securities laws of any jurisdiction outside of the Reporting Provinces or to make
    any filings or seek any approvals of any kind whatsoever from any regulatory authority of any kind whatsoever outside of a
    jurisdiction of Canada.

 

	10.	Conditions
    of Waiver and Investor’s Obligations.

 

The
obligations of the Investor hereunder is subject to the performance by the Company of its covenants and other obligations hereunder,
and to the following further conditions:

 

	 	(a)	the
    Company shall deliver to the Investor, at the Closing Time, certificates dated the Closing Date addressed to the Investor
    and signed by the Chief Executive Officer of the Company and the Chief Financial Officer of the Company, or such other senior
    officer(s) of the Company as may be acceptable to the Investor, certifying for and on behalf of the Company and without personal
    liability, after having made due enquiries, to the effect that:
	 	 	 	 
	 	 	(i)	there
    shall not have been, since the date hereof or since the respective dates as of which information is given in the Disclosure
    Documents any event having a Material Adverse Effect;
	 	 	 	 
	 	 	(ii)	the
    representations and warranties of the Company contained herein or in certificates of any officer of the Company delivered
    pursuant to the provisions hereof are true and correct in all material respects (or, in the case of any representation or
    warranty containing a materiality or Material Adverse Effect qualification, in all respects) as at the Closing Time with the
    same force and effect as if made on and as at the Closing Time after giving effect to the transactions contemplated hereby;
	 	 	 	 
	 	 	(iii)	the
    Company has complied with all agreements and satisfied all covenants and conditions on its part to be performed or satisfied
    at or prior to the Closing Time;
	 	 	 	 
	 	 	(iv)	to
    the knowledge of such persons, no order, ruling or determination having the effect of ceasing the trading of the Common Shares
    or suspending the offering or sale of the Common Shares to be issued by the Company has been issued and no proceedings for
    such purpose have been instituted or are pending or, to the knowledge of such officers, contemplated or threatened by any
    Securities Commission or other Governmental Authority;

 

    	 

    	- 16 -

    

 

	 	 	(v)	there
    has been no change in any material fact (which includes the disclosure of any previously undisclosed material fact) contained
    in the Disclosure Record which fact or change is, or may be, of such a nature as to render any statement in the Disclosure
    Record misleading or untrue in any material respect or which would result in a misrepresentation in the Disclosure Record
    or which would result in the Disclosure Record not complying with Applicable Securities Laws; and
	 	 	 	 
	 	 	(vi)	such
    other matters as the Investor may reasonably request prior to the Closing;
	 	 	 	 
	 	(b)	the
    representations and warranties of the Company contained in this Agreement will be true and correct in all material respects
    (or, in the case of any representation or warranty containing a materiality or Material Adverse Effect qualification, in all
    respects) at and as of the Closing Date, as if such representations and warranties were made at and as of such time and all
    agreements, covenants and conditions required by this Agreement to be performed, complied with or satisfied by the Company
    will have been performed, complied with or satisfied prior to that time;
	 	 	 
	 	(c)	the
    absence of any misrepresentations in the Disclosure Documents or undisclosed material change or material fact relating to
    the Company or the Common Shares;
	 	 	 
	 	(d)	at
    or prior to the Closing Time, the Subscription Agreements shall have been duly executed and delivered by the Company, and
    each Subscription Agreement shall be in full force and effect;
	 	 	 
	 	(e)	at
    the Closing Time, there shall have been delivered to the Investor evidence satisfactory to the Investor of any applicable
    conditional approval of the Exchange of the listing and posting for trading on the Exchange of the Common Shares (issuable
    upon exercise of the Convertible Debentures) and Warrant Shares (issuable upon exercise of the Warrants), subject only to
    satisfaction by the Company of customary post-closing conditions imposed by the Exchange in similar circumstances (the “Standard
    Listing Conditions”);
	 	 	 
	 	(f)	the
    Company will make all necessary filings and obtain all necessary regulatory consents and approvals (if any), and the Company
    will pay all filing, exemption and other fees required to be paid in connection with the transactions contemplated in this
    Agreement; and
	 	 	 
	 	(g)	all
    proceedings taken by the Company in connection with the issuance and sale of the Convertible Debentures as herein contemplated
    shall be satisfied.

 

    	 

    	- 17 -

    

 

	11.	Conditions
    of Waiver and Company’s Obligations.

 

The
obligations of the Company hereunder are subject to the accuracy of the representations and warranties of the Investor contained
in Section 6 hereof and to the performance by the Investor of its covenants and other obligations hereunder.

 

	12.	Representations,
    Warranties and Agreements to Survive.

 

All
representations, warranties and agreements of the parties contained in this Agreement or in certificates of officers of the Company
submitted pursuant hereto shall remain operative and in full force and effect for a period of three (3) years from the date of
the last Closing of the Offering notwithstanding: (i) any investigation made by or on behalf of the Investor or the Company, as
applicable, or their respective affiliates, officers or directors, or any person controlling the Company, (ii) the completion
of the purchase of the Convertible Debentures and Warrants, as applicable, by the Investor, or (iii) the subsequent disposition
of the Convertible Debentures, Warrants and underlying Common Shares, as applicable, by the Investor.

 

	13.	Termination
    of Agreement.

 

This
Agreement shall terminate at the conclusion of the Term irrespective of whether or not any Convertible Debentures are issued pursuant
to the Offering.

 

	14.	Delivery
    of Draw-Down Notice.

 

Notwithstanding
any other provision of this Agreement, the Company shall not be permitted to deliver a Draw-Down Notice if any of the following
events have occurred and are continuing:

 

	 	(a)	there
    shall occur any material change in the assets, business, affairs, financial condition, results of operations, capital or prospects
    of the Company or its Subsidiaries, or there should be discovered any previously undisclosed material fact or circumstance
    or there should occur a change in any material fact relating to the Company or its Subsidiaries, including from that information
    disseminated by the Company through its periodic and timely Disclosure Documents, which in any case has or would reasonably
    be expected to have a Material Adverse Effect; or
	 	 	 
	 	(b)	any
    inquiry, action, suit, investigation or other proceeding (whether formal or informal) is commenced, announced or threatened
    or any order made by any federal, provincial, state, municipal or other governmental department, commission, board, bureau,
    agency or instrumentality including, without limitation, the Exchange or any securities regulatory authority or any law, rule
    or regulation is enacted or changed, including any law relating to taxation or the administration or interpretation thereof,
    which operates to prevent or materially restrict the distribution or trading of the Common Shares or has, or would reasonably
    be expected to have, a Material Adverse Effect on the market price of the Common Shares or the business, operations or affairs
    of the Company and its Material Subsidiaries, taken as a whole; or

 

    	 

    	- 18 -

    

 

	 	(c)	there
    should develop, occur or come into effect or existence any event, action, state, condition or major financial occurrence of
    national or international consequence, including, without limiting the generality of the foregoing, any military conflict,
    civil insurrection, or any terrorist action (whether or not in connection with such conflict or insurrection), or any law
    or regulation (or change in the interpretation or administration thereof) which adversely affects, or involves, or would reasonably
    be expected to adversely affect or involve, the financial markets or the business, operations or affairs of the Company and
    its Material Subsidiaries, taken as a whole, or prevent or materially restrict the distribution of the Common Shares; or
	 	 	 
	 	(d)	an
    order is made or threatened and would reasonably be expected to lead to an order to be made to cease or suspend trading or
    to otherwise prohibit or restrict in any manner the distribution or trading, or proceedings are announced or commenced for
    the making of any such order in respect of the Common Shares, or other securities of the Company by any Securities Commission,
    the Exchange or other competent authority; or
	 	 	 
	 	(e)	the
    Company is not in compliance in all material respects with any Applicable Laws (including applicable Securities Laws relating
    to timely disclosure of material information) other than 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; or
	 	 	 
	 	(f)	a
    material disruption has occurred in commercial banking or securities settlement or clearance services in Canada; or
	 	 	 
	 	(g)	a
    banking moratorium has been declared by Canadian federal authorities.
	 	 	 
	15.	Indemnity

 

Provided
that the Investor is in compliance in all material respects with the terms and conditions of this Agreement, including its covenants
set out in Section 9, the Company and its Subsidiaries or affiliated companies, as the case may be (collectively, the “Indemnitor”)
agrees to indemnify and hold harmless each of the Investor and its respective Subsidiaries and affiliates, and each of their respective
directors, officers, employees, securityholders and agents (collectively, the “Indemnified Parties” and each,
an “Indemnified Party”), to the full extent lawful, from and against all expenses, fees, losses, claims, actions,
damages, obligations and liabilities, joint or several, of any nature (including the reasonable fees and expenses of their respective
counsel and other expenses, including any amount for lost profits) (collectively, “Losses”) to which an Indemnified
Party may become subject or otherwise involved in any capacity insofar as the Losses arise out of or are based upon, directly
or indirectly, a breach of this Agreement by the Company that results in any failure or delay by the Company in completing the
issue and sale of Convertible Debentures to the Investor after delivery by the Company and acceptance by the Investor of a Draw-Down
Notice in respect of a Tranche under the Offering, together with any Losses that are incurred in enforcing this indemnity. This
indemnity shall not be available to an Indemnified Party in respect of Losses incurred where a court of competent jurisdiction
in a final judgment that has become non-appealable determines that such Losses resulted solely from the fraud, gross negligence
or willful misconduct of the Indemnified Party.

 

    	 

    	- 19 -

    

 

The
Indemnified Party will notify the Indemnitor promptly in writing after sustaining any Losses by the Indemnified Party which is
based, directly or indirectly, upon any matter in respect of which indemnification may be sought from the Indemnitor, stating
the particulars thereof, will provide copies of all relevant documentation to the Indemnitor and will discuss all significant
actions proposed. The omission to so notify the Indemnitor shall not relieve the Indemnitor of any liability which the Indemnitor
may have to an Indemnified Party except only to the extent that any such delay in giving or failure to give notice as herein required
results in any material increase in the liability under this indemnity which the Indemnitor would otherwise have incurred had
the Indemnified Party not so delayed in giving, or failed to give, the notice required hereunder.

 

The
indemnity and contribution obligations of the Indemnitor hereunder shall be in addition to any liability which the Indemnitor
may otherwise have (including under this Agreement and the transaction contemplated herein), shall extend upon the same terms
and conditions to the Indemnified Parties and shall be binding upon and enure to the benefit of any successors, permitted assigns,
heirs and personal representatives of the Indemnitor, the Underwriter and any other Indemnified Party. The foregoing provisions
shall survive any termination of this Agreement or the completion of professional services rendered under this Agreement.

 

	16.	Entire
    Agreement.

 

This
Agreement constitutes the entire agreement between the Company and the Investor in connection with the transactions described
herein and supersedes all prior understandings, negotiations and discussions, whether oral or written, in relation to the transactions
described herein.

 

	17.	Payment
    of Expenses.

 

Whether
or not this Offering or the other transactions contemplated by this Agreement are completed, the Company will pay or cause to
be paid all reasonable expenses incident to the performance of its obligations under this Agreement and the transactions contemplated
hereby, including all fees and expenses of Investor’s Counsel plus any applicable taxes thereon (collectively, the “Investor
Legal Expenses”). The Investor’s legal expenses shall be capped at the amount set out in the subscription agreement
of even date herewith between the Company and the Investor plus $10,000, exclusive of taxes and disbursements, in respect to the
closing for each Tranche.

 

	18.	Notices.

 

All
notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
by any standard form of telecommunication including electronic mail. Notices shall be directed to.

 

    	 

    	- 20 -

    

 

in
the case of the Company, to:

 

Harvest
Health & Recreation, Inc.

1155
W. Rio Salado Parkway

Suite
201

Tempe,
Arizona 85281

 

Attention:
Jason Vedadi, Executive Chairman

Email:
[***]

 

With
a copy (that shall not constitute notice), to:

 

Cassels
Brock & Blackwell LLP

2100,
Scotia Plaza

40
King Street West

Toronto,
ON

M5H
3C2

 

Attention:
John Vettese

Email:
[***]

 

in
the case of the Investor, to:

 

[***]

[***].

[***]

[***]

[***]

[***]

 

Attention:
Director

E-mail
: [***]

 

The
Company and the Investor may change their respective addresses for notice by notice given in the manner aforesaid. Any such notice
or other communication shall be in writing, and unless delivered personally to the addressee or to a responsible officer of the
addressee, as applicable, shall be given by fax or electronic mail and shall be deemed to have been given when: (i) in the case
of a notice delivered personally to a responsible officer of the addressee, when so delivered; (ii) in the case of a notice delivered
or given by fax on the first business day following the day on which it is sent; or (iii) in the case of a notice delivered or
given by electronic mail, on the business day on which it was sent, unless it was sent after 4:00 p.m., in which case it will
be deemed to have been delivered on the first business day following the day on which it is sent.

 

	19.	Parties.

 

This
Agreement shall inure to the benefit of and be binding upon each of the Investor and the Company and their respective permitted
assigns and successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person,
firm or Company, other than the Investor and the Company and their respective permitted assigns and successors any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions
and provisions hereof are intended to be for the sole and exclusive benefit of each of the Investor and the Company and their
respective permitted assigns and successors and for the benefit of no other person, firm or company.

 

    	 

    	- 21 -

    

 

	20.	Assignment.

 

This
Agreement may not be assigned by any party hereto without the prior written consent of the other party. Notwithstanding the foregoing,
in connection with an arrangement transaction involving the Company and Verano Holdings, LLC pursuant to a business combination
agreement by and among the Company, Verano Holdings, LLC, 1204899 B.C. Ltd. and 1204599 B.C. Ltd. dated April 22, 2019, the Company
shall be entitled to assign this agreement to 1204899 B.C. Ltd. (as the same may be renamed following the arrangement transaction)
(the “Acquiror”) as the acquirer of all of the issued and outstanding shares of the Company, provided that:
(i) the Acquiror is a “reporting issuer” in at least one province of Canada; and (ii) the common shares of the Acquiror
are listed and posted for trading on the Exchange, and thereafter all references to the Company herein and in all documents contemplated
herein shall instead be to the Acquiror and all rights and obligations hereunder and thereunder shall enure to the benefit of
and be binding upon the Acquiror and its successors.

 

	21.	Governing
    Law.

 

This
Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws
of Canada applicable therein.

 

	22.	Time.

 

Time
shall be of the essence of this Agreement. Except as otherwise set forth herein, specified times of day refer to Toronto time.

 

	23.	Counterparts.

 

This
Agreement may be executed in any number of counterparts (including by PDF/email), each of which shall be deemed to be an original,
but all such counterparts shall together constitute one and the same Agreement.

 

	24.	Effect
    of Headings.

 

The
Section headings herein are for convenience only and shall not affect the construction hereof.

 

[The
remainder of this page is intentionally left blank.]

 

    	 

    	- 22 -

    

 

If
the foregoing is in accordance with your understanding of our agreement, please sign and return to the Investor a counterpart
hereof, whereupon this instrument, along with all counterparts, will become a binding agreement between each of the Investor and
the Company in accordance with its terms.

 

	 	Yours
    very truly,
	 	 
	 	[***]
	 	 	 
	 	By:	/s/
    [***]
	 	Name:	[***]
	 	Title:
    	Director

 

The
foregoing accurately reflects the terms of the transaction that we are to enter into and such terms are agreed to.

 

ACCEPTED
as of this 10th day of May, 2019.

 

	 	Yours
    very truly,
	 	 
	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	 
	 	By:	/s/
    Jason Vedadi
	 	Name:	Jason
Vedadi
	 	Title:	Executive
Chairman

 

    	 

    	 

    

 

SCHEDULE
A

 

Form
of Subscription Agreement

 

(See
attached)

 

    	 

    	 

    

 

HARVEST
HEALTH & RECREATION INC.

 

SUBSCRIPTION
AGREEMENT FOR CONVERTIBLE DEBENTURES [AND WARRANTS]

 

	TO:	HARVEST
    HEALTH & RECREATION INC. (THE “CORPORATION”)
	 	 
	AND
    TO:	EIGHT
    CAPITAL (THE “AGENT”)

 

The
undersigned (the “Subscriber”) hereby subscribes for and agrees to purchase from the Corporation, on the terms
and conditions herein (the “Subscription Agreement”) that number of unsecured convertible debentures of the
Corporation set out below (the “Convertible Debentures”) at a price of US$1,000.00 per Convertible Debenture
(the “Subscription Price”). The Convertible Debentures will bear interest at a rate of 7.0% per annum from
the Closing Date (as defined herein), payable semi-annually in arrears on June 30 and December 30 of each year, and will mature
36 months from the Closing Date. The Convertible Debentures will be convertible at the option of the holder to subordinate voting
shares of the Corporation (the “Underlying Shares”) at a price of US$• (the “Conversion Price”)
(being CAD$• multiplied by the Exchange Rate (as defined below)) per Underlying Share, subject to customary adjustment provisions
in certain stated circumstances.

 

Upon
conversion of the Convertible Debentures, the holder shall receive a cash payment equal to the accrued and unpaid interest due
on the Convertible Debentures being so converted on and including the date of conversion. Additionally, all final definitive terms
of the Convertible Debentures shall be set forth in the Debenture certificate (the “Debenture Certificate”)
for the Convertible Debentures to be entered into by the Corporation on or prior to the Closing Date. “Exchange Rate”
shall mean the Bank of Canada USD/CAD exchange rate on the date that is 2 business days prior to the issuance of the Convertible
Debentures.

 

At
any time after the date that is four months and one day following the Closing Date, the Corporation may require the holder of
the Convertible Debentures to convert all but not less than all of the then outstanding principal amount of the Convertible Debentures
at the Conversion Price, provided that the Corporation gives 30 days’ advance written notice of such conversion to the holder,
which notice may be given if, at any time after the date that is four months and one day following the Closing Date, the daily
volume weighted average trading price (“VWAP”) of the Underlying Shares on the CSE (as defined herein), or
such other Canadian stock exchange on which the Underlying Shares are listed and posted for trading, is greater than a 40% premium
to the Conversion Price for any 10 consecutive trading days (the “VWAP Days”), subject to such conversion being
permitted under the policies of the exchange. For greater certainty, VWAP Days shall not include any trading day during the four
months following the Closing Date. Notwithstanding the foregoing, the Corporation shall not be permitted to force conversion of
the Convertible Debentures if the Underlying Shares will be subject to restrictions on resale in Canada upon conversion, other
than restrictions on resale imposed by a subsequent transfer of the Convertible Debentures during the restricted period.

 

[Concurrently
with the issuance of the Convertible Debentures, the Subscriber shall receive warrants of the Corporation (“Warrants”)
equal to •% of the number of Underlying Shares issuable upon the conversion of the Convertible Debentures purchased hereunder
(rounded down to the nearest whole number). Each Warrant shall entitle the holder thereof to acquire one subordinate voting share
of the Corporation (the “Warrant Shares”) at an exercise price of CAD$• per Warrant Share, subject to customary
adjustment provisions in certain stated circumstances, until the date that is 36 months from the Closing Date. Additionally, all
final definitive terms of the Warrants shall be set forth in the warrant certificate (the “Warrant Certificate”) for
the warrants to be issued by the Corporation on or prior to the Closing Date.]

 

The
Subscriber agrees to be bound by the terms and conditions set forth in the attached “Terms and Conditions of Subscription
for Convertible Debentures [and Warrants]” including without limitation the terms, representations, warranties, covenants,
certifications and acknowledgements set forth in the applicable Schedule attached thereto. The Subscriber further agrees, without
limitation, that the Corporation and the Agent may rely upon the Subscriber’s representations, warranties, covenants, certifications
and acknowledgements contained in such documents.

 

    	 

    	 

    

 

SUBSCRIPTION
AND SUBSCRIBER INFORMATION

 

Please
print all information (other than signatures), as applicable, in the space provided below

 

	Subscriber
    Information and Signature	 	 
	 	 	 
	 	 	Number
    of Convertible Debentures:                          x US$1000
	(Name
    of Subscriber)	 	 
	 	 	=
	 	 	 
	Account
    Reference (if applicable):	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	By:	 	Aggregate
    Subscription Price:                                                      
	                   	 	(the
    “Subscription Amount”)
	 	 	 
	Authorized
    Signature	 	[Number
    of Warrants:]                       
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Official
    Capacity or Title – if the Subscriber is not an individual)	 	 
	 	 	 
	                 	 	 
	 	 	 
	(Name
    of individual whose signature appears above if different than the name of the Subscriber printed above)	 	 
	 	 	 
	                   	 	 
	 	 	 
	(Subscriber’s
    Residential Address, including Postal Code)	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Subscriber’s
    Telephone Number )	(Email
    Address)	 	 

 

The
Subscriber hereby provides the following registration instructions in connection with the Convertible Debentures [and Warrants]
being purchased hereunder.

 

	Account
    Registration Information	 	Number
    and kind of securities of the Corporation held, directly or indirectly, if any:
	 	 	 
	 	 	 
	 	 	 
	(Name)	 	 
	 	 	 
	 	 	State
    whether Subscriber is an Insider of the Corporation:
	(Account
    Reference, if applicable)	 	            Yes    [  ]
    No    [  ]
	 	 	 
	 	 	 
	 	 	 
	(Address,
    including Postal Code)	 	 

 

	State
        whether Subscriber is a Registrant

         

        Yes
            [  ]    No     [  ]
	 	 
	 	 	 
	Note:
    A Registrant means a dealer, adviser, investment fund manager, an ultimate designated person or chief compliance officer as
    those terms are used pursuant to the Securities Laws (as defined herein), or a Person (as that term is defined herein) registered
    or otherwise required to be registered under the Securities Laws.	 	 

 

    	 

    	 

    

 

TERMS
AND CONDITIONS OF SUBSCRIPTION FOR CONVERTIBLE DEBENTURES [AND WARRANTS]

 

ARTICLE
1 - INTERPRETATION

 

	1.1	Definitions

 

Whenever
used in this Subscription Agreement, unless there is something in the subject matter or context inconsistent therewith, the following
words and phrases shall have the respective meanings ascribed to them as follows:

 

“Agency
Agreement” means the agency agreement dated May 10, 2019 between the Agent, as agent, and the Corporation in connection
with the Offering.

 

“Business
Day” means any day, other than (a) a Saturday, Sunday or statutory holiday in the Province of Ontario, and (b) a day
on which banks are generally closed in the Province of Ontario.

 

“Closing”
shall have the meaning ascribed to such term in Section 4.1.

 

“Closing
Date” shall have the meaning ascribed to such term in Section 4.1.

 

“Closing
Time” shall have the meaning ascribed to such term in Section 4.1.

 

“Control
Person” shall have the meaning ascribed to such term in Section 1(1) of the Securities Act (Ontario).

 

“Conversion
Price” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

“Convertible
Debentures” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

“Corporation”
means Harvest Health & Recreation Inc. and includes any successor corporation to or of the Corporation.

 

“CSE”
shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

“Debenture
Certificate” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

“Designated
Province” means the province of British Columbia.

 

“ELEA”
shall have the meaning ascribed to such term in Section 6.3(f).

 

“FAME”
shall have the meaning ascribed to such term in Section 6.3(f)(iii).

 

“including”
means including without limitation.

 

“Insider”
means (i) a director or officer of the Corporation (or a subsidiary of the Corporation), (ii) any Person who beneficially owns,
directly or indirectly, voting securities of the Corporation or who exercises control or direction over, directly or indirectly,
voting securities of the Corporation or a combination of both carrying more than 10% of the voting rights attached to all voting
securities of the Corporation for the time being outstanding, or (iii) a director or officer of an Insider of the Corporation.

 

“International
Jurisdiction” shall have the meaning ascribed to such term in Section 6.3(a).

 

“Material
Subsidiaries” means the entities listed in Schedule “D”.

 

    	4

    	 

    

 

“NI
45-106” means National Instrument 45-106 – Prospectus Exemptions of the Canadian Securities Administrators.

 

“Offering”
means the Offering by the Corporation of the Convertible Debentures [and Warrants] pursuant to the terms set forth in this Subscription
Agreement.

 

“Offering
Fee” shall have the meaning ascribed to such term in Section 8.1.

 

“permitted
participant” shall have the meaning ascribed to such term in Section 6.3(f)(ii).

 

“Person”
includes any individual (whether acting as an executor, trustee administrator, legal representative or otherwise), corporation,
firm, partnership, sole proprietorship, syndicate, joint venture, trustee, trust, unincorporated organization or association,
and pronouns have a similar extended meaning.

 

“Prospectus
Directive” shall have the meaning ascribed to such term in Section 6.3(f).

 

“Registrant”
means a dealer, adviser, investment fund manager, ultimate designated person or chief compliance officer as those terms are used
pursuant to the Securities Laws, or a Person registered or otherwise required to be registered under the Securities Laws.

 

“Regulations”
shall have the meaning ascribed to such term in Section 6.3.

 

“Securities
Commission” means the British Columbia Securities Commission.

 

“Securities
Laws” means, as applicable, the securities laws, regulations, rules, rulings and orders in the Designated Province,
the applicable policy statements, notices, blanket rulings, orders and all other regulatory instruments of the securities regulator
in the Designated Province, and the rules and policies of the CSE.

 

“SEDAR”
means the System for Electronic Document Analysis and Retrieval of the Canadian Securities Administrators.

 

“Subscriber”
means the subscriber for the Convertible Debentures [and Warrants] as set out on page 1 of this Subscription Agreement.

 

“Subscription
Agreement” means this subscription agreement (including the Schedule attached hereto) and any instrument amending this
Subscription Agreement; “herein”, “hereof”, “hereto”, “hereunder”,
and similar expressions mean and refer to this Subscription Agreement and not to a particular Article or Section; and the expression
“Article” or “Section” followed by a number means and refers to the specified Article or
Section of this Subscription Agreement.

 

“Subscription
Price” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement. 

 

“Underlying
Shares” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

“United
States” means the United States of America, its territories and possessions, any State of the United States and the
District of Columbia.

 

“U.S.
Person” means a “U.S. person” as such term is defined in Regulation S under the U.S. Securities Act.

 

“U.S.
Securities Act” means the United States Securities Act of 1933, as amended.

 

“VWAP”
shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

“VWAP
Days” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.

 

    	5

    	 

    

 

[“Warrants”
shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.] 

 

[“Warrant
Shares” shall have the meaning ascribed to such term on page 1 of this Subscription Agreement.]

 

	1.2	Number
    and Gender

 

Words
importing the singular number only shall include the plural and vice versa, words importing the masculine gender shall include
the feminine gender and vice versa and words importing persons shall include firms and corporations and vice versa.

 

	1.3	Subdivisions
    and Headings

 

The
division of this Subscription Agreement into Articles, Sections, Schedules and other subdivisions and the inclusion of headings
are for convenience of reference only and shall not affect the construction or interpretation of this Subscription Agreement.
The headings in this Subscription Agreement are not intended to be full or precise descriptions of the text to which they refer.
Unless something in the subject matter or context is inconsistent therewith, references herein to an Article, Section, Subsection,
paragraph, clause or Schedule are to the applicable article, section, subsection, paragraph, clause or schedule of this Subscription
Agreement.

 

ARTICLE
2 - SCHEDULES

 

	2.1	Description
    of Schedule

 

The
following is the Schedule attached to and incorporated in this Subscription Agreement by reference and deemed to be a part hereof:

 

	Schedule
    “A”	-	Contact
    Information – Securities Regulatory Authority
	Schedule
    “B”	-	Term
    Sheet
	Schedule
    “C”	-	Accredited
    Investor Certificate
	Schedule
    “D”	-	Material
    Subsidiaries
	Schedule
    “E”	-	Acknowledgement
    Re Security for Debentures

 

ARTICLE
3 - SUBSCRIPTION AND DESCRIPTION OF CONVERTIBLE DEBENTURES

 

	3.1	Subscription
    for the Convertible Debentures [and Warrants]

 

The
Subscriber hereby confirms its subscription which, upon acceptance by the Corporation, will constitute an irrevocable agreement
of the Subscriber to purchase from the Corporation, and of the Corporation to sell to the Subscriber, that number of Convertible
Debentures [and Warrants] indicated on page 2 of this Subscription Agreement, on and subject to the terms and conditions
set out in this Subscription Agreement. The Convertible Debentures form part of an of an aggregate of 100,000 Convertible Debentures,
for gross proceeds of US$100,000,000. The Convertible Debentures are to be offered pursuant the terms of the Agency Agreement
to be entered into on the Closing Date between the Corporation and the Agent. Further details of the Offering are set forth in
the Term Sheet attached hereto as Schedule B.

 

ARTICLE
4- CLOSING

 

	4.1	Closing

 

Delivery
and sale of the Convertible Debentures [and Warrants] and payment of the Subscription Amount will be completed (the “Closing”)
at the offices of the Corporation’s counsel, Cassels Brock & Blackwell LLP, in Toronto, Ontario at 8:00 a.m. (Toronto
time) (the “Closing Time”) on ● or at such other date or time as the Corporation and the Subscriber may
mutually agree (the “Closing Date”), provided such date is not later than a day mandated by the CSE. If, on
or prior to the Closing Time, the terms and conditions contained in this Subscription Agreement and the Agency Agreement have
been complied with to the satisfaction of the Subscriber and the Agent, as applicable, or waived by the Subscriber or the Agent,
as applicable, the Agent shall deliver to the Corporation the Subscription Agreement and the payment of the Subscription Amount
for the Convertible Debentures [and the Warrants] against delivery of certificates representing the Convertible Debentures,
[the Warrants] and such other documentation as may be required pursuant to this Subscription Agreement and the Agency Agreement.

 

    	6

    	 

    

 

If,
prior to the Closing Time, the terms and conditions contained in this Subscription Agreement and the Agency Agreement have not
been complied with to the satisfaction of the Subscriber and the Agent, applicable, or waived by the Subscriber, the Corporation,
the Agent and the Subscriber will have no further obligations under this Subscription Agreement.

 

	4.2	Conditions
    of Closing of the Corporation

 

The
Subscriber acknowledges that the obligation of the Corporation to, among other things, complete the purchase of the Convertible
Debentures [and Warrants] by the Subscriber is subject to the fulfillment of the following conditions prior to the Closing
Time:

 

	 	(a)	payment
    by the Subscriber of the Subscription Amount by electronic money transfer to the Agent or such other payment method as may
    be agreed to by the Agent;
	 	 	 
	 	(b)	the
    Subscriber having properly completed, signed and delivered this Subscription Agreement to the Agent:

 

Eight
Capital

100
Adelaide Street West, Suite 2900

Toronto,
ON M5H 1S3

 

	 	Email:	pmcbride@viiicapital.com
	 	Attention:	Patrick
    McBride

 

	 	(c)	the
    Subscriber having executed and returned to the Corporation, at the Corporation’s request, all other documents as may
    be reasonably required by the Securities Laws or any other laws for delivery by the Corporation on behalf of the Subscriber;
	 	 	 
	 	(d)	the
    Corporation having accepted the Subscriber’s subscription;
	 	 	 
	 	(e)	the
    closing conditions contained in the Agency Agreement having being satisfied or waived by the relevant party; and
	 	 	 
	 	(f)	all
    documentation relating to the offer, sale and issuance of the Convertible Debentures [and the Warrants], including
    the Investment Agreement, being in form and substance satisfactory to the Corporation.

 

The
conditions contained in this Section 4.2 of this Subscription Agreement are for the exclusive benefit of the Corporation and are
subject to fulfillment on or before the Closing Time unless waived, in whole or in part, by the Corporation in its sole discretion
by prior written notice given to the Subscriber.

 

    	7

    	 

    

 

	4.3	Conditions
    of Closing of the Subscriber

 

The
Corporation acknowledges that the obligation of the Subscriber to, among other things, complete the purchase of the Convertible
Debentures [and Warrants] from the Corporation is subject to the fulfillment of the following conditions prior to the Closing
Time:

 

	 	(a)	the
    Subscriber shall have received a certificate, dated as of the Closing Date and addressed to the Subscriber, signed by the
    Chief Executive Officer and Chief Financial Officer of the Corporation, or such other officers or directors of the Corporation
    as the Subscriber may agree, certifying for and on behalf of the Corporation, and without personal liability, to the best
    of the knowledge, information and belief of the persons so signing after due inquiry, that:

 

	 	(i)	the
    Corporation having complied with, in all material respects, all the covenants and satisfied all the terms and conditions of
    this Subscription Agreement and the Agency Agreement on its part to be complied with and satisfied at or prior to the Closing
    Time;
	 	 	 
	 	(ii)	no
    order, ruling or determination having the effect of ceasing or suspending the trading in the Underlying Shares [and the
    Warrant Shares] or prohibiting the sale of the Debentures [and the Warrants] or any other securities of the Corporation
    has been issued by any regulatory authority and is continuing in effect and no proceedings for such purpose have been instituted
    or are pending or, to the knowledge of such officer signing the certificate, contemplated or threatened under any relevant
    Canadian securities laws or by any regulatory authority;
	 	 	 
	 	(iii)	no
    material change relating to the Corporation and the Material Subsidiaries on a consolidated basis having occurred since the
    date hereof with respect to which the requisite material change report has not been filed and there is no such disclosure
    having been made on a confidential basis that remains confidential; and
	 	 	 
	 	(iv)	the
    representations and warranties of the Corporation contained in this Subscription Agreement and in any certificates of the
    Corporation delivered pursuant to or in connection with this Subscription Agreement, being true and correct in all material
    respects as at the Closing Time, with the same force and effect as if made on and as at the Closing Time;

 

	 	(b)	the
    Subscriber shall have received at the Closing Time a certificate dated the Closing Date, signed by an officer of the Corporation
    addressed to the Subscriber, with respect to the constating documents of the Corporation, all resolutions of the Corporation’s
    board of directors relating to the Offering and otherwise pertaining to the issue and sale of the Convertible Debentures [and
    the Warrants] and the transactions contemplated hereby and thereby and the incumbency and specimen signatures of signing
    officers;
	 	 	 
	 	(c)	the
    Subscriber shall have received at the Closing Time legal opinions from Cassels Brock & Blackwell LLP, Canadian counsel
    to the Corporation, in form and substance satisfactory to the Subscriber, acting reasonably, dated as of the Closing Date,
    with respect to such matters that are customary in transactions similar to the Offering, subject to customary assumptions,
    qualifications and limitations;
	 	 	 
	 	(d)	the
    Subscriber shall have received a legal opinion from legal counsel to each Material Subsidiary, addressed to the Subscriber
    with respect to: (i) the existence of each Material Subsidiary; (ii) the issued and outstanding securities of each Material
    Subsidiary and the securities thereof held by the Corporation or a Material Subsidiary; and (iv) the corporate power and capacity
    of each Material Subsidiary to legally carry on its business and activities and to own and lease property and assets, in form
    and substance satisfactory to the Subscriber, acting reasonably, dated as of the Closing Date, with respect to such matters
    that are customary in transactions similar to the Offering, subject to customary assumptions, qualifications and limitations;

 

    	8

    	 

    

 

	 	(e)	the
    closing conditions contained in the Agency Agreement having being satisfied or waived by the relevant party;
	 	 	 
	 	(f)	the
    Subscriber shall have received a certificate of status or the equivalent in respect of (i) the Corporation, dated within two
    business days of the Closing Date, and (ii) each of the Material Subsidiaries, dated within a reasonable period of time before
    the Closing Date;
	 	 	 
	 	(g)	the
    Subscriber shall have received copies of any required filings with the CSE in respect of the issuance of the Convertible Debentures
    [and the Warrants] and listing of the Debenture Shares [and Warrant Shares] to be listed on the CSE;
	 	 	 
	 	(h)	the
    Subscriber and the Corporation shall have entered into an investment agreement (the “Investment Agreement”) in
    respect of the issue and sale of four additional tranches of up to an additional 400,000 (in equal tranches of 100,000) debentures
    convertible into subordinate voting shares (“Additional Underlying Shares”) of the Corporation (the “Additional
    Convertible Debentures”) in accordance with the terms set out in such Investment Agreement at a price of US$1,000
    per Additional Debenture and, (i) with respect to the first tranche, warrants (“Additional Warrants”) exercisable
    for subordinate voting shares (“Additional Warrant Shares”) of the Corporation in an amount equal to 40%
    of the Additional Underlying Shares issuable upon conversion of the Additional Convertible Debentures in that tranche; and
    (ii) with respect to the second tranche, Additional Warrants exercisable for Additional Warrant Shares in an amount equal
    to 20% of the Additional Underlying Shares issuable upon conversion of the Additional Convertible Debentures in that tranche,
    for additional gross proceeds of up to an additional US$400,000,000, on terms and conditions subject to the Subscriber in
    its sole discretion, acting reasonably;
	 	 	 
	 	(i)	the
    entering into and completion of securities loan arrangements for not less than ● subordinated voting shares of the Corporation
    between the Subscriber and certain shareholders of the Corporation for a period of 36 months from the Closing Date, on terms
    and conditions satisfactory to the Subscriber in its sole discretion, acting reasonably, including, without limitation, that
    such common shares subject to the securities loan arrangements are free of any resale restrictions or any legend intended
    to restrict their sale;
	 	 	 
	 	(j)	the
    Corporation shall have obtained all required regulatory and corporate approvals, and all requisite third party consents, to
    complete the offering, issue and sale of the Convertible Debentures [and the Warrants]; and
	 	 	 
	 	(k)	the
    representations and warranties of the Corporation contained in this Subscription Agreement being true and correct in all material
    respects at and as of the Closing Time.

 

The
conditions contained in this section 4.3 of this Subscription Agreement are for the exclusive benefit of the Subscriber and are
subject to fulfillment on or before the Closing Time unless waived, in whole or in part, by the Subscriber in its sole discretion
by prior written notice given to the Corporation.

 

    	9

    	 

    

 

ARTICLE
5– REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE CORPORATION

 

	5.1	Representations,
    Warranties and Covenants of the Corporation

 

By
accepting this Subscription Agreement, the Corporation hereby represents and warrants to the Subscriber that the representations,
warranties, covenants, certifications and acknowledgements made by the Corporation in the Agency Agreement are true and correct
in all material respects as of the date hereof. The Corporation further agrees, without limitation, that the Subscriber shall
have the benefit of and may rely upon the Corporation’s representations, warranties, covenants, certifications and acknowledgements
contained herein and in the Agency Agreement. Such representations, warranties and covenants shall be deemed to be incorporated
herein as if they are reproduced in their entirety (with such changes as are necessary in order to reflect that such representations,
warranties, covenants, certifications and acknowledgements are being made by the Corporation to the Subscriber), shall form an
integral part of this Subscription Agreement and shall survive the Closing and shall continue in full force and effect for the
benefit of the Subscriber in accordance with the terms of the Agency Agreement. The Corporation acknowledges that, in making its
decision to purchase the Convertible Debentures [and Warrants], the Subscriber is relying on this Subscription Agreement and the
representations, warranties and covenants of the Corporation contained in the Agency Agreement.

 

ARTICLE
6– REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER

 

	6.1	Acknowledgements,
    Representations, Warranties and Covenants of the Subscriber

 

The
Subscriber hereby acknowledges, represents [and Warrants] to, and covenants with, the Corporation and the Agent as follows
and acknowledges that the Corporation and the Agent are relying on such acknowledgements, representations, warranties and covenants
in connection with the transactions contemplated herein:

 

	 	(a)	The
Subscriber confirms that it:

 

	 	(i)	has
    such knowledge in financial and business affairs as to be capable of evaluating the merits and risks (including the potential
    loss of its entire investment) of its proposed investment in the Convertible Debentures [and the Warrants];
	 	 	 
	 	(ii)	is
    aware of the characteristics of the Convertible Debentures, the Underlying Shares, [the Warrants, and the Warrants Shares],
    and understands the risks relating to an investment therein; and
	 	 	 
	 	(iii)	is
    able to bear the economic risk of loss of its entire investment in the Convertible Debentures [and the Warrants].

 

	 	(b)	The
    Subscriber confirms that the Subscriber is relying on the “accredited investor” exemption in NI 45-106, the Subscriber
    is purchasing the Convertible Debentures [and Warrants] as principal for the Subscriber’s own account, not for the
    benefit of any other person, for investment only and not with a view to the resale or distribution of all or any of the Convertible
    Debentures or Warrants, the Subscriber is resident in or otherwise subject to the securities laws of the jurisdiction set
    out at the “Subscriber’s Address” on page 2 of this Subscription Agreement and (A) the Subscriber is, and at the
    Closing Time will be, an “accredited investor” (as such term is defined in NI 45-106) and reproduced in Appendix
    “A” to Schedule “C” of this Subscription Agreement or the Securities Act (Ontario)), (B) the
    Subscriber is not a trust company or trust corporation registered under the laws of Prince Edward Island that is not registered
    under the Trust and Loan Companies Act (Canada) or under comparable legislation in another jurisdiction of Canada,
    (C) the Subscriber was not created or used solely to purchase or hold securities as an accredited investor, (D) the Subscriber
    has concurrently executed and delivered a Representation Letter in the form attached as Schedule “C” to this Subscription
    Agreement (and has initialled Appendix “A” thereto indicating that the Subscriber satisfies one of the categories
    of “accredited investor” set out in such Appendix).

 

    	10

    	 

    

 

	 	(c)	The
    acknowledgements, representations, warranties, covenants and information of the Subscriber contained herein are true and correct
    as of the date hereof and will be true and correct as of the Closing Time.
	 	 	 
	 	(d)	The
    Subscriber is aware that the Convertible Debentures, the Underlying Shares, [the Warrants and the Warrants Shares] have
    not been and will not be registered under the U.S. Securities Act or the securities laws of any state and that the Convertible
    Debentures, the Underlying Shares, [the Warrants and the Warrants Shares] may not be offered or sold, directly or indirectly,
    in the United States without registration under the U.S. Securities Act and applicable state securities laws or compliance
    with the requirements of an exemption from registration therefrom and it acknowledges that the Corporation has no current
    intention of filing a registration statement under the U.S. Securities Act or applicable state securities laws in respect
    of such securities.
	 	 	 
	 	(e)	The
    Subscriber is not a U.S. Person and is not acquiring the Convertible Debentures or [the Warrants] for the account or benefit
    of a U.S. Person or a Person in the United States.
	 	 	 
	 	(f)	The
    Convertible Debentures [and the Warrants] have not been offered to the Subscriber in the United States, and the individuals
    making the order to purchase the Convertible Debentures [and the Warrants] and executing and delivering this Subscription
    Agreement on behalf of the Subscriber were not in the United States when the order was placed and this Subscription Agreement
    was executed and delivered.
	 	 	 
	 	(g)	The
    Subscriber undertakes and agrees that it will not offer or sell any of the Convertible Debentures, the Underlying Shares,
    [the Warrants and the Warrants Shares] in the United States unless such securities are registered under the U.S. Securities
    Act and the securities laws of all applicable states of the United States, or an exemption from such registration requirement
    is available.
	 	 	 
	 	(h)	The
    Subscriber represents [and Warrants] that, to its knowledge, the offer, sale and issuance of the Convertible Debentures
    [and the Warrants] to the Subscriber under this Agreement is not a transaction, or part of a chain of transactions
    which, although in technical compliance with an available exemptions under the U.S. Securities Act, is part of a plan or scheme
    to evade the registration requirements of the U.S. Securities Act.
	 	 	 
	 	(i)	This
    Subscription Agreement has been duly authorized, executed and delivered by, and constitutes a legal, valid and binding agreement
    of, the Subscriber. This Subscription Agreement is enforceable in accordance with its terms against the Subscriber.
	 	 	 
	 	(j)	The
    Subscriber is duly incorporated and is validly subsisting under the laws of its jurisdiction of incorporation and has all
    requisite legal and corporate power and authority to execute and deliver this Subscription Agreement, to subscribe for the
    Convertible Debentures [and the Warrants] as contemplated herein and to carry out and perform its covenants and obligations
    under the terms of this Subscription Agreement.
	 	 	 
	 	(k)	The
    Subscriber is not acting jointly or in concert with any other subscriber in connection with the Offering for the purpose of
    the acquisition of the Convertible Debentures [and the Warrants].

 

    	11

    	 

    

 

	 	(l)	If
    required by applicable Securities Laws, the Agent or the Corporation, the Subscriber will execute, deliver and file or assist
    the Corporation in filing such reports, undertakings and other documents with respect to the issue of the Convertible Debentures
    [and the Warrants] as may be required by any securities commission, stock exchange or other regulatory authority.
	 	 	 
	 	(m)	The
    Subscriber has been advised to consult its own legal advisors with respect to the execution, delivery and performance by it
    of this Subscription Agreement and the transactions contemplated by this Subscription Agreement, including trading in the
    Convertible Debentures, the Underlying Shares, [the Warrants, and the Warrants Shares], and with respect to the hold
    periods imposed by the Securities Laws of the Designated Province and other applicable securities laws, and acknowledges that
    no representation has been made by the Corporation or the Agent respecting the applicable hold periods imposed by the Securities
    Laws or other resale restrictions applicable to such securities which restrict the ability of the Subscriber to resell such
    securities, that the Subscriber is solely responsible to find out what these restrictions are, that the Subscriber is solely
    responsible (and neither the Corporation nor the Agent are in any way responsible) for compliance with applicable resale restrictions
    and that the Subscriber is aware that it may not be able to resell such securities except in accordance with limited exemptions
    under the Securities Laws and other applicable securities laws.
	 	 	 
	 	(n)	The
    Subscriber has not received or been provided with a prospectus, offering memorandum (within the meaning of the Securities
    Laws) or any sales or advertising literature in connection with the Offering or any document purporting to describe the business
    and affairs of the Corporation which has been prepared by the Corporation or the Agent for review by prospective purchasers
    to assist in making an investment decision in respect of the Convertible Debentures [and the Warrants] and the Subscriber’s
    decision to subscribe for the Convertible Debentures [and the Warrants] was not based upon, and the Subscriber has
    not relied upon, any oral or written representations as to facts made by or on behalf of the Corporation or the Agent, or
    any employee, agent or affiliate thereof or any other person associated therewith, except as set forth herein. The Subscriber’s
    decision to subscribe for the Convertible Debentures [and the Warrants] was based solely upon this Subscription Agreement,
    the representations, warranties and covenants of the Corporation contained in Article 5 and information about the Corporation
    which has been filed by it under its corporate profile on the SEDAR website at www.sedar.com (any such information
    having been obtained by the Subscriber without independent investigation or verification by Eight Capital).
	 	 	 
	 	(o)	Neither
    the Corporation nor the Agent, nor any of their directors, employees, officers, affiliates or agents has made any written
    or oral representations:

 

	 	(i)	that
    any Person will resell or repurchase the Convertible Debentures or [the Warrants];
	 	 	 
	 	(ii)	that
    any Person will refund all or any part of the Subscription Amount; or
	 	 	 
	 	(iii)	as
    to the future price or value of the Convertible Debentures, the Underlying Shares, [the Warrants], or the Warrant Shares.

 

	 	(p)	The
    Subscriber is not purchasing the Convertible Debentures [and the Warrants] with knowledge of any material information
    concerning the Corporation that has not been generally disclosed.

 

    	12

    	 

    

 

	 	(q)	The
    subscription for the Convertible Debentures [and the Warrants] has not been made through or as a result of and the
    distribution of the Convertible Debentures [and the Warrants] is not being accompanied by any advertisement, including
    without limitation in printed public media, radio, television or telecommunications, including electronic display, or as part
    of a general solicitation.
	 	 	 
	 	(r)	The
    funds representing the Subscription Amount which will be advanced by the Subscriber hereunder will not represent proceeds
    of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”)
    and the Subscriber acknowledges that the Corporation may in the future be required by law to disclose the Subscriber’s
    name and other information relating to this Subscription Agreement and the Subscriber’s subscription hereunder, on a
    confidential basis, pursuant to the PCMLTFA. The Subscriber represents and covenants that (a) to the best of its knowledge,
    none of the Subscription Amount to be provided by the Subscriber (i) has been or will be derived from or related to any activity
    that is deemed criminal under the laws of Canada, the United States, or any other jurisdiction, or (ii) are being tendered
    on behalf of a Person or entity who has not been identified to the Subscriber, and (b) the Subscriber shall promptly notify
    the Corporation and the Agent if the Subscriber discovers that any of such representations ceases to be true and shall provide
    the Corporation and the Agent with appropriate information in connection therewith.

 

	6.2	Further
    Acknowledgments and Covenants of the Subscriber 
	 	 
	 	The
    Subscriber acknowledges, covenants and agrees as follows:

 

	 	(a)	There
    are risks associated with the purchase of the Convertible Debentures [and the Warrants] and no securities commission,
    agency, governmental authority, regulatory body, stock exchange or similar authority has reviewed or passed on the merits
    of the Convertible Debentures or [the Warrants] nor have any such agencies or authorities made any recommendations
    or endorsement with respect to the Convertible Debentures or the Warrants.
	 	 	 
	 	(b)	The
    Convertible Debentures, Underlying Shares, [the Warrants and the Warrants Shares] may be subject to statutory resale
    restrictions under the Securities Laws of the Designated Province and under other applicable securities laws, and the Subscriber
    covenants that it will not resell the Convertible Debentures, the Underlying Shares, [the Warrants, or the Warrant Shares]
    except in compliance with such laws and the Subscriber acknowledges that it is solely responsible (and neither the Corporation
    nor the Agent are in any way responsible) for such compliance.
	 	 	 
	 	(c)	The
    Subscriber’s ability to transfer the Convertible Debentures, the Underlying Shares, [the Warrants, and the Warrants
    Shares] is limited by, among other things, applicable Securities Laws.
	 	 	 
	 	(d)	The
    Convertible Debentures [and the Warrants] shall have attached to them a legend setting out resale restrictions under
    applicable Securities Laws substantially in the following form (and with the necessary information inserted):

 

“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 CLOSING DATE WILL BE INSERTED].”]

 

    	13

    	 

    

 

	 	(e)	The
    Agent and/or their directors, officers, employees, agents and representatives assume no responsibility or liability of any
    nature whatsoever for the accuracy or adequacy of any publicly available information concerning the Corporation or as to whether
    all information concerning the Corporation that is required to be disclosed or filed by the Corporation under the Securities
    Laws has been so disclosed or filed.
	 	 	 
	 	(f)	The
    Corporation is relying on an exemption from the requirement to provide the Subscriber with a prospectus under the Securities
    Laws and, as a consequence of acquiring the Convertible Debentures, the Underlying Shares, [the Warrants, and the Warrants
    Shares] pursuant to such exemption:

 

	 	(i)	certain
    protections, rights and remedies provided by the Securities Laws, including statutory rights of rescission and certain statutory
    remedies against an issuer, underwriters, auditors, directors and officers that are available to investors who acquire securities
    offered by a prospectus, will not be available to the Subscriber;
	 	 	 
	 	(ii)	the
    common law may not provide investors with an adequate remedy in the event that they suffer investment losses in connection
    with securities acquired in a private placement;
	 	 	 
	 	(iii)	the
    Subscriber may not receive information that would otherwise be required to be given under the Securities Laws; and
	 	 	 
	 	(iv)	the
    Corporation is relieved from certain obligations that would otherwise apply under the Securities Laws.

 

	 	(g)	The
    offer, issuance, sale and delivery of the Convertible Debentures, the Underlying Shares, [the Warrants, and the Warrants
    Shares] is conditional upon such sale being exempt from the prospectus filing or registration requirements and the requirements
    to deliver an offering memorandum in connection with the distribution of the Convertible Debentures [and the Warrants]
    under the Securities Laws of the Designated Province or upon the issuance of such orders, consents or approvals as may
    be required to permit such sale without the requirement of filing a prospectus.
	 	 	 
	 	(h)	The
    Corporation may complete additional financings in the future in order to develop the business of the Corporation and fund
    its ongoing development, and such future financings may have a dilutive effect on current shareholders or securityholders
    of the Corporation, including the Subscriber.
	 	 	 
	 	(i)	There
    is no government or other insurance covering the Convertible Debentures, the Underlying Shares, [the Warrants, or the Warrant
    Shares].
	 	 	 
	 	(j)	Legal
    counsel retained by the Corporation and legal counsel retained by the Agent are acting as counsel to the Corporation and the
    Agent respectively, and not as counsel to the Subscriber.
	 	 	 
	 	(k)	The
    Subscriber acknowledges that this Subscription Agreement requires the Subscriber to provide certain personal information to
    the Corporation. Such information is being collected by the Corporation for the purposes of completing the Offering, which
    includes, without limitation, determining the Subscriber’s eligibility to purchase the Convertible Debentures [and
    the Warrants] under the Securities Laws and other applicable securities laws and completing filings required by any stock
    exchange or securities regulatory authority. The Subscriber’s personal information may be disclosed by the Corporation
    to: (a) stock exchanges or securities regulatory authorities, (b) the Canada Revenue Agency or other taxing authorities, and
    (c) legal counsel to the Corporation and the Agent and may be included in record books in connection with the Offering. By
    executing this Subscription Agreement, the Subscriber consents to the foregoing collection, use and disclosure of the Subscriber’s
    personal information. The Subscriber also consents to the filing of copies or originals of any of the Subscriber’s documents
    described herein as may be required to be filed with any stock exchange or securities regulatory authority in connection with
    the transactions contemplated hereby.

 

    	14

    	 

    

 

	 	(l)	The
    Subscriber acknowledges and consents to the collection, use and disclosure of personal information, including information
    provided by the Subscriber on page 2 of this Subscription Agreement, by the CSE and its affiliates, authorized agents, subsidiaries
    and divisions, including the CSE for the following purposes: (i) to verify personal information that has been provided about
    each individual, (ii) to provide disclosure to market participants as to the security holdings of directors, officers, other
    insiders and promoters of the issuer or its associates or affiliates, (iii) to conduct enforcement proceedings, and (iv) to
    perform other investigations as required by and to ensure compliance with all applicable rules, policies, rulings and regulations
    of the CSE, Securities Laws and other legal and regulatory requirements governing the conduct and protection of the public
    markets in Canada. As part of this process, the Subscriber further acknowledges that the CSE also collects additional personal
    information from other sources, including but not limited to, securities regulatory authorities in Canada or elsewhere, investigative,
    law enforcement or self-regulatory organizations, regulations services providers and each of their subsidiaries, affiliates,
    regulators and authorized agents, to ensure that the purposes set out above can be accomplished. The personal information
    collected by the CSE may also be disclosed (i) to the aforementioned agencies and organizations or as otherwise permitted
    or required by law and may be used for the purposes described above for their own investigations, and (ii) on the CSE’s
    website or through printed materials published by or pursuant to the directions of the CSE. The CSE may from time to time
    use third parties to process information and/or provide other administrative services and may share information with such
    third party services providers.
	 	 	 
	 	(m)	The
    information provided by the Subscriber on page 2 of this Subscription Agreement identifying the name, address and telephone
    number of the Subscriber, the number of Convertible Debentures [and Warrants] being purchased hereunder, the Subscription
    Amount, the Closing Date and the exemption that the Subscriber is relying on in purchasing the Convertible Debentures [and
    Warrants] will be disclosed to the Securities Commission, and such information is being indirectly collected by the Securities
    Commission under the authority granted to it under securities legislation. This information is being collected for the purposes
    of the administration and enforcement of the securities legislation of the Designated Province and policy development. The
    Subscriber hereby authorizes the indirect collection of such information by the Securities Commission. In the event the Subscriber
    has any questions with respect to the indirect collection of such information by the Securities Commission, the Subscriber
    should contact the securities regulatory authority at the contact details provided in Schedule “A”.

 

    	15

    	 

    

 

	6.3	Further
    Acknowledgements, Representations, Warranties and Covenants of Subscribers who are not U.S. Purchasers and who were
    not in Canada and not resident in Canada when the offer to purchase Convertible Debentures was received or signed.

 

If
the Subscriber is not resident in Canada, and not in Canada when the offer to purchase Convertible Debentures [and Warrants]
was received, the Subscriber (on its own behalf and, if applicable, on behalf of each person on whose behalf the Subscriber
is contracting) represents, warrants, covenants and acknowledges to the Corporation and Eight Capital (and acknowledges that the
Corporation and Eight Capital are relying thereon) at the date hereof and the Closing Time that:

 

	 	(a)	The
    Subscriber is not a U.S. Person, was not offered the Convertible Debentures [and Warrants] in the United States, and did not
    sign this Subscription Agreement in the United States.
	 	 	 
	 	(b)	The
    Subscriber is knowledgeable of, or has been independently advised as to, the applicable Securities Laws of the country that
    the Subscriber is resident in (the “International Jurisdiction”) which would apply to this Subscription
    Agreement, if any.
	 	 	 
	 	(c)	The
    Subscriber is purchasing the Convertible Debentures, Underlying Shares, [Warrants and Warrants Shares] pursuant to
    exemptions from any prospectus, registration or similar requirements under the applicable Securities Laws of that International
    Jurisdiction or, if such is not applicable, the Subscriber is permitted to purchase the Convertible Debentures, Underlying
    Shares, Warrants [and Warrants Shares] under the applicable Securities Laws of the International Jurisdiction without
    the need to rely on an exemption.
	 	 	 
	 	(d)	The
    applicable Securities Laws of the International Jurisdiction in which the Subscriber resides do not require the Corporation
    or Eight Capital to 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 Convertible Debentures, Underlying
    Shares, Warrants or Warrant Shares or to otherwise comply with any continuous disclosure obligations under the applicable
    Securities Laws of the International Jurisdiction or to make any filings or seek any approvals of any kind whatsoever from
    any regulatory authority of any kind whatsoever in the International Jurisdiction.
	 	 	 
	 	(e)	The
    delivery of this Subscription Agreement, the acceptance of it by the Corporation and the issuance of the Convertible Debentures
    [and Warrants] to the Subscriber complies with all applicable laws of the Subscriber’s jurisdiction of residence
    or domicile and all other applicable laws and will not cause the Corporation to become subject to or comply with any disclosure,
    prospectus or other offering document or reporting requirements under any such applicable laws.
	 	 	 
	 	(f)	The
    Subscriber will, if requested by the Corporation, Eight Capital or their respective counsel, deliver to the Corporation and
    Eight Capital a certificate or opinion of local counsel from the International Jurisdiction in which the Subscriber resides
    which will confirm the matters referred to in subsections (d), (e) and (f) above to the satisfaction of the Corporation and
    Eight Capital and their respective counsel, acting reasonably.
	 	 	 
	 	(g)	In
    addition, if the Subscriber, or any other purchaser for whom it is acting hereunder, is resident in or otherwise subject to
    applicable Securities Laws of a member state (“Member State”) of the European Economic Area (“ELEA”)
    which has implemented Directive 2003/71/EC (the “Prospectus Directive”) other than the United Kingdom,
    the Subscriber (as principal for its own account or acting as agent for a Disclosed Principal who is disclosed on page 2 of
    the Subscription Agreement) represents and warrants that it is either:

 

    	16

    	 

    

 

	 	(i)	(1) a qualified investor within the meaning of the law in that Member State of the ELEA which implements Article 2(1)(e) of the Prospectus Directive; and (2) is not acting as a financial intermediary as that term is used in Article 3(2) of the Prospectus Directive, or, if so acting (I) the Convertible Debentures [and Warrants] which it proposes to acquire are not being acquired on behalf of, nor are they being acquired with a view to their offer or resale to, persons in a Member State of the ELEA other than qualified investors as defined in the Prospectus Directive or persons who have agreed to purchase at least €50,000 worth of Convertible Debentures; or (ii) where it proposes to acquire Convertible Debentures [and Warrants] on behalf of persons in a Member State of the ELEA other than qualified investors or persons who have agreed to purchase at least €50,000 worth of Convertible Debentures, the offer of those Convertible Debentures [and Warrants] to it is not treated under the Prospectus Directive as having been made to such persons; or
	 	 	 
	 	(ii)	not a qualified
    investor within the meaning of the law in that Member State of the ELEA which implements Article 2(1)(e) of the Prospectus
    Directive; and is purchasing at least €50,000 worth of Convertible Debentures (collectively, a “permitted participant”).

 

In
addition, if the Subscriber, or any other purchaser for whom it is acting hereunder, is resident in or otherwise subject to applicable
Securities Laws of the United Kingdom:

 

	 	(iii)	(a)
the Subscriber is either: (1) purchasing the Convertible Debentures [and Warrants] as principal for its own account, (2) acting
as agent for a Disclosed Principal who is disclosed on page 2 of the Subscription Agreement and who is purchasing the Convertible
Debentures [and Warrants] as principal for its own account; or (3) purchasing the Convertible Debentures [and Warrants]
on behalf of discretionary client(s) in circumstances where section 86(2) of the Financial Services and Markets Act 2000 (“FAME”)
applies;
	 	 	 
	 	(iv)	the
    Subscriber (and if the Subscriber is purchasing as agent for a Disclosed Principal, the Disclosed Principal) is a person in
    the United Kingdom who: (1) is a permitted participant, (2) is a “qualified investor” for the purposes of section
    86(7) of the FAME, (3) is such a person as is referred to in Article 19 (investment professionals) or Article 49 (high net
    worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order
    2005; and (4) has complied with and undertakes to comply with all applicable provisions of the FAME and other applicable Securities
    Laws with respect to anything done by it in relation to the Convertible Debentures [and Warrants] in, from or otherwise
    involving the United Kingdom; and

 

it
confirms that, to the extent applicable to it, it is aware of, has complied and will comply with its obligations in connection
with the Criminal Justice Act 1993, the Proceeds of Crime Act 2002 and Part VIII of the FAME, it has identified its clients in
accordance with the Money Laundering Regulations 2003 (the “Regulations”) and has complied fully with its obligations
pursuant to the Regulations and will, as a condition precedent of any acceptance of this subscription, provide all such information
and documents as may be required in relation to it (or any person on whose behalf it is acting as agent) that may be required
by the Corporation or any agent or person acting for it in order to discharge any obligations under the Regulations.

 

	6.4	Reliance
    on Representations, Warranties, Covenants and Acknowledgements

 

The
Subscriber acknowledges and agrees that the representations, warranties, covenants and acknowledgements made by the Subscriber
in this Subscription Agreement are made with the intention that they may be relied upon by the Corporation, the Agent and their
respective legal counsel, including in determining the Subscriber’s eligibility to purchase the Convertible Debentures [and
the Warrants]. The Subscriber further agrees that by accepting the Convertible Debentures [and the Warrants], the Subscriber
shall be representing and warranting that such representations, warranties, covenants and acknowledgements are true as at the
Closing Time with the same force and effect as if they had been made by the Subscriber at the Closing Time. The Subscriber undertakes
to immediately notify the Corporation and the Agent of any change in any statement or other information relating to the Subscriber
set forth herein which takes place prior to the Closing Time.

 

    	17

    	 

    

 

ARTICLE
7- SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

 

	7.1	Survival
    of Representations, Warranties and Covenants

 

	 	(a)	The
    representations, warranties and covenants of the Subscriber contained in this Subscription Agreement shall survive the Closing
    and continue in full force and effect for the benefit of the Corporation and the Agent for a period of three years following
    the Closing, in each case notwithstanding such Closing or any investigation made by or on behalf of the Corporation or the
    Agent with respect thereto and notwithstanding any subsequent disposition by the Subscriber of any of the Convertible Debentures,
    the Underlying Shares, [the Warrants], [or the Warrant Shares].
	 	 	 
	 	(b)	The
    representations, warranties and covenants of the Corporation contained in this Subscription Agreement shall survive the Closing
    and continue in full force and effect for the benefit of the Subscriber and the Agent for a period of three years following
    the Closing, in each case notwithstanding such Closing or any investigation made by or on behalf of the Subscriber or the
    Agent with respect thereto and notwithstanding any subsequent disposition by the Subscriber of any of the Convertible Debentures,
    the Underlying Shares, [the Warrants], or the Warrant Shares.

 

ARTICLE
8 - FEES

 

	8.1	Agency
    Agreement

 

The
Subscriber acknowledges that the Convertible Debentures [and Warrants] will be issued as part of the Offering at the Subscription
Price. For its services in connection with the Offering, at the Closing Time, the Agent will receive from the Corporation on Closing,
a cash fee equal to 4.0% of the aggregate gross proceeds from the Offering (the “Offering Fee”). The Agent
will also be entitled to reimbursement for reasonable fees and out-of-pocket expenses in connection with the distribution of the
Convertible Debentures pursuant to the Offering and the reasonable legal fees and disbursements (plus applicable taxes) of the
Agent’s legal counsel, subject to the terms and conditions of the Agency Agreement.

 

Other
than the Offering Fee, no other commission or fee is payable by the Corporation in connection with the completion of the Offering.

 

ARTICLE
8 - MISCELLANEOUS

 

	8.1	Further
    Assurances

 

Each
of the parties hereto upon the request of each of the other parties hereto, whether before or after the Closing Time, shall do,
execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, documents,
assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be necessary or desirable to complete
the transactions contemplated herein.

 

	8.2	Notices

 

	 	(a)	Any
    notice, direction or other instrument required or permitted to be given to any party hereto shall be in writing and shall
    be sufficiently given if delivered personally, or transmitted electronically tested prior to transmission to such party, as
    follows:

 

    	18

    	 

    

 

	 	(i)	in
    the case of the Corporation, to:

 

Harvest
Health & Recreation Inc.

1155
W. Rio Salado Parkway

Suite
201

Tempe,
AZ 85281

 

	 	Email:	[***]
	 	Attention:	Brian
    Manning

 

with
a copy (which shall not constitute notice) sent to:

 

Cassels
Brock & Blackwell LLP

2100
Scotia Plaza

40
King Street West

Toronto,
ON M5H 3C2

 

	 	Email:	f[***]
	 	Attention:	Frank
    DeLuca

 

	 	(ii)	in
    the case of the Subscriber, at the address specified on the page 2 of this Subscription Agreement.

 

	 	(b)	Any
    such notice, direction or other instrument, if delivered personally, shall be deemed to have been given and received on the
    day on which it was delivered, provided that if such day is not a Business Day then the notice, direction or other instrument
    shall be deemed to have been given and received on the first Business Day next following such day, and if transmitted electronically,
    shall be deemed to have been given and received on the day of its transmission, provided that if such day is not a Business
    Day or if it is transmitted or received after the end of normal business hours then the notice, direction or other instrument
    shall be deemed to have been given and received on the first Business Day next following the day of such transmission.
	 	 	 
	 	(c)	Any
    party hereto may change its address for service from time to time by notice given to each of the other parties hereto in accordance
    with the foregoing provisions.

 

	8.3	Time
    of the Essence

 

Time
shall be of the essence of this Subscription Agreement and every part hereof.

 

	8.4	Costs
    and Expenses

 

Subject
to the Agency Agreement and Section 8.4 hereof, all costs and expenses (including, without limitation, the fees and disbursements
of legal counsel) incurred in connection with this Subscription Agreement and the transactions herein contemplated shall be paid
and borne by the party incurring such costs and expenses.

 

	8.5	Applicable
    Law

 

This
Subscription Agreement shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed
by, the laws of the Province of Ontario and the laws of Canada applicable therein. Any and all disputes arising under this Subscription
Agreement, whether as to interpretation, performance or otherwise, shall be subject to the non-exclusive jurisdiction of the courts
of the Province of Ontario and each of the parties hereto hereby irrevocably attorns to the jurisdiction of the courts of such
Province.

 

    	19

    	 

    

 

	8.6	Entire
    Agreement

 

Except
as contemplated hereby with respect to the Agency Agreement, this Subscription Agreement constitutes the entire agreement between
the parties hereto with respect to the transactions contemplated herein and cancels and supersedes any prior understandings, agreements,
negotiations and discussions between the parties hereto. There are no representations, warranties, terms, conditions, undertakings
or collateral agreements or understandings, express or implied, between the parties hereto other than those expressly set forth
in this Subscription Agreement or in any such agreement, certificate, affidavit, statutory declaration or other document as aforesaid.
This Subscription Agreement may not be amended or modified in any respect except by written instrument executed by each of the
parties hereto.

 

	8.7	Counterparts

 

This
Subscription Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same Subscription Agreement. Counterparts may be delivered either in original, PDF
or faxed form and the parties adopt any signatures received by PDF or a receiving fax machine as original signatures of the parties.

 

	8.8	Assignment

 

This
Subscription Agreement may not be assigned by any party hereto except with the prior written consent of the other parties hereto.

 

	8.9	Enurement

 

This
Subscription Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors,
administrators, successors (including any successor by reason of the amalgamation or merger of any party) and permitted assigns.

 

	8.10	Language

 

It
is the express wish of the Subscriber that this Subscription Agreement and any related documentation be drawn up in English only.
Il est de la volonté expresse du souscripteur que la convention de souscription ainsi que tout document connexe soient
rédigés en langue anglaise uniquement.

 

    	20

    	 

    

 

The
Corporation hereby accepts the subscription for Convertible Debentures [and Warrants] as set forth on page 2 of this Subscription
Agreement on the terms and conditions contained in this Subscription Agreement this ____ day of ●.

 

	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	 
	 	Per:	 
	 	 	Authorized
    Signing Officer

 

    	21

    	 

    

 

SCHEDULE
“A”

CONTACT
INFORMATION – SECURITIES REGULATORY AUTHORITY

 

Alberta
Securities Commission

Suite
600, 250 – 5th Street SW

Calgary,
Alberta T2P 0R4

Telephone:
(403) 297-6454

Toll
free in Canada: 1-877-355-0585

Facsimile:
(403) 297-2082

Public
official contact regarding indirect collection of information: FOIP Coordinator

 

British
Columbia Securities Commission

P.O.
Box 10142, Pacific Centre

701
West Georgia Street

Vancouver,
British Columbia V7Y 1L2

Inquiries:
(604) 899-6854

Toll
free in Canada: 1-800-373-6393

Facsimile:
(604) 899-6581

Email:
inquiries@bcsc.bc.ca

Email
(regarding indirect collection of information): FOI-privacy@bcsc.bc.ca

Public
official contact regarding indirect collection of information: FOI Inquiries

 

Ontario
Securities Commission

20
Queen Street West, 22nd Floor

Toronto,
Ontario M5H 3S8

Telephone:
(416) 593-8314

Toll
free in Canada: 1-877-785-1555

Facsimile:
(416) 593-8122

Email:
exemptmarketfilings@osc.gov.on.ca

Public
official contact: Inquiries Officer

 

    	 

    	 

    

 

SCHEDULE
“B”

 

TERM
SHEET

 

(see
attached)

 

    	 

    	 

    

 

SCHEDULE
“C”

 

REPRESENTATION
LETTER

 

(FOR
ACCREDITED INVESTORS)

 

	TO:	HARVEST
    HEALTH & RECREATION INC. (THE “CORPORATION”)
	 	 
	AND
    TO:	EIGHT
    CAPITAL (THE “AGENT”)

 

Capitalized
terms used herein but not otherwise defined shall have the meaning ascribed to them in the Subscription Agreement to which this
Schedule it is attached.

 

In
connection with the purchase of Convertible Debentures [and Warrants] by the undersigned subscriber (the “Subscriber”
for the purposes of this Schedule “C”, the undersigned hereby represents, warrants and certifies to and covenants
with the Corporation that:

 

	1.	The
    Subscriber is resident in the jurisdiction set out on the face page of the accompanying Subscription Agreement;
	 	 
	2.	The
Subscriber is purchasing the Convertible Debentures [and Warrants] as principal for the Subscriber’s own account;

 

The
Subscriber is an “accredited investor” within the meaning of National Instrument 45-106 – Prospectus Exemptions
(“NI 45-106”) by virtue of satisfying the indicated criterion as set out in Appendix “A” to this
Representation Letter;

 

The
Subscriber was not created and is not used solely to purchase or hold securities as an accredited investor; and

 

The
representations contained in this Representation Letter and in the attached Appendix “A” are true and accurate as of
the date of this certificate and will be true and accurate as of the Closing Time. The Subscriber acknowledges that this Representation
Letter and the attached Appendix “A” are incorporated into and form a part of the Subscription Agreement to which it
is attached.

 

	Dated:
    ______________________________ , 2019.	 
	 	 
	 	 
	 	Print
    name of Subscriber
	 	 
	 	 
	 	Authorized
    Signature
	 	 
	 	 
	 	Print
    name of Signatory (if different from Subscriber)
	 	 
	 	 
	 	Title

 

IMPORTANT:
PLEASE INDICATE THE APPLICABLE PARAGRAPH OF THE DEFINITION OF “ACCREDITED INVESTOR” ON THE ATTACHED

APPENDIX
“A”

 

    	 

    	 

    

 

APPENDIX
“A” TO SCHEDULE “C”

 

CANADIAN
ACCREDITED INVESTOR CERTIFICATE

 

NOTE:
THE INVESTOR MUST INDICATE BESIDE THE APPLICABLE PORTION OF THE DEFINITION OF

ACCREDITED
INVESTOR SET OUT BELOW.

 

All
monetary references set out in this Appendix “A” are stated in Canadian Dollars.

 

Accredited
Investor - (defined in National Instrument 45-106 (“NI 45-106”) and Section 73.3(1) of the Securities
Act (Ontario)) means:

 

	(a)	             	except
        in Ontario, a Canadian financial institution, or a Schedule III bank;

         

        in
        Ontario, a financial institution described in paragraph 1, 2 or 3 of subsection 73.1(1) of the Securities Act (Ontario)

	 	 	 
	(b)	             	except
        in Ontario, the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act
        (Canada);

         

        in
        Ontario, the Business Development Bank of Canada;

	 	 	 
	(c)	             	except
        in Ontario, a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities
        of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

         

        in
        Ontario, a subsidiary of any person or company referred to in clause (a) or (b), if the person owns all of the voting
        securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary.

	 	 	 
	(d)	             	except
        in Ontario, a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer;

         

        in
        Ontario, a person or company registered under the securities legislation of a province or territory of Canada as an adviser
        or dealer, except as otherwise prescribed by the regulations;

	 	 	 
	(e)	             	an
    individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred
    to in paragraph (d);
	 	 	 
	(e.1)	             	an
    individual formerly registered under the securities legislation of Canada, other than an individual formerly registered solely
    as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities
    Act (Newfoundland and Labrador);
	 	 	 
	(f)	             	except
        in Ontario, the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly-owned entity
        of the Government of Canada or a jurisdiction of Canada;

         

        in
        Ontario, the Government of Canada, the government of a province or territory of Canada, or any Crown corporation, agency
        or wholly owned entity of the Government of Canada or the government of a province or territory of Canada;

 

    	 

    	 

    

 

	(g)	             	except
        in Ontario, a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité
        de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;

         

        in
        Ontario, a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité
        de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Quebec;

	 	 	 
	(h)	             	any
    national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency
    of that government;
	 	 	 
	(i)	             	except
        in Ontario, a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada),
        a pension commission or similar regulatory authority of a jurisdiction of Canada;

         

        in
        Ontario, a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada)
        or a pension commission or similar regulatory authority of a province or territory of Canada;

	 	 	 
	(j)	             	an
    individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that
    before taxes, but net of any related liabilities, exceeds $1,000,000();
	 	 	 
	(j.1)	             	an
    individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related
    liabilities, exceeds $5,000,000;
	 	 	 
	(k)	             	an
        individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net
        income before taxes combined with that of a spouse exceeded 300,000 in each of the two most recent calendar years and
        who, in either case, reasonably expects to exceed that net income level in the current calendar year;

         

        (Note:
        if individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing
        entities must qualify under section (t) below, which must be initialed.)

	 	 	 
	(l)	             	an
    individual who, either alone or with a spouse, has net assets of at least $5,000,000;
	 	 	 
	(m)	             	a
    person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently
    prepared financial statements;
	 	 	 
	(n)	             	an
        investment fund that distributes or has distributed its securities only to:

         

        (i)       a
        person that is or was an accredited investor (as defined in NI 45-106) at the time of the distribution;

         

        (ii)       a
        person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment]
        or 2.19 [Additional investment in investment funds] of NI 45-106; or

         

        (iii)       a
        person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund
        reinvestment] of NI 45-106;

 

    	 

    	 

    

 

	(o)	             	an
    investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the
    regulator or, in Québec, the securities regulatory authority, has issued a receipt;
	 	 	 
	(p)	             	a
    trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act
    (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a
	 	 	 
	(q)	             	a
    person acting on behalf of a fully managed account by that person, if that person is registered or authorized to carry on
    business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction;
	 	 	 
	(r)	             	a
    registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility
    adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice
    on the securities being traded;
	 	 	 
	(s)	             	an
    entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or
    paragraph (i) in form and function;
	 	 	 
	(t)	             	a
    person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required
    by law to be owned by directors, are persons that are accredited investors (as defined in NI 45-106);
	 	 	 
	(u)	             	an
    investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser;
	 	 	 
	(v)	             	a
    person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the
    regulator as an accredited investor; or
	 	 	 
	(w)	             	a
    trust established by an accredited investor for the benefit of the accredited investor’s family members of which a majority
    of the trustees are accredited investors and all of the beneficiaries are the accredited investor’s spouse, a former spouse
    of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of
    that accredited investor’s spouse or of that accredited investor’s former spouse.

 

    	 

    	 

    

 

For
the purposes hereof:

 

“Canadian
financial institution” means:

 

	 	(i)	an
    association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society for
    which an order has been made under section 473(1) of that Act; or
	 	(ii)	a
    bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire,
    financial services cooperative, or league that, in each case, is authorized by an enactment of Canada or a jurisdiction of
    Canada to carry on business in Canada or a jurisdiction of Canada;

 

"control
person" has the same meaning as in securities legislation except in Manitoba, Newfoundland and Labrador, Northwest Territories,
Nova Scotia, Nunavut, Ontario, Prince Edward Island and Québec where control person means any person that holds or is one
of a combination of persons that holds:

 

	 	(i)	a
sufficient number of any of the securities of an issuer so as to affect materially the control of the issuer; or
	 	(ii)	more
    than 20% of the outstanding voting securities of an issuer except where there is evidence showing that the holding of those
    securities does not affect materially the control of the issuer;

 

“director”
means a member of the board of directors of a company or an individual who performs similar functions for a company, and with
respect to a person that is not a company, an individual who performs functions similar to those of a director of a company;

 

“eligibility
adviser” means:

 

	 	(iii)	a
person that is registered as an investment dealer and authorized to give advice with respect to the type of security being distributed;
and
	 	(iv)	in
Saskatchewan or Manitoba, also means a lawyer who is a practicing member in good standing with a law society of a jurisdiction
of Canada or a public accountant who is a member in good standing of an institute or association of chartered accountants, certified
general accountants or certified management accountants in a jurisdiction of Canada provided that the lawyer or public accountant
must not:

	 	(A)	have
    a professional, business or personal relationship with the issuer, or any of its directors, executive officers, founders,
    or control persons; and
	 	(B)	have
    acted for or been retained personally or otherwise as an employee, executive officer, director, associate or partner of a
    person that has acted for or been retained by the issuer or any of its directors, executive officers, founders or control
    persons within the previous 12 months;

 

“executive
officer” means, for an issuer, an individual who is:

 

	 	(v)	a
chair, vice-chair or president;
	 	(vi)	a
vice-president in charge of a principal business unit, division or function including sales, finance or production; or
	 	(vii)	performing
a policy-making function in respect of the issuer;

 

“financial
assets” means:

 

	 	(viii)	cash;
	 	(ix)	securities;
or
	 	(x)	a
    contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation;
    “founder” means, in respect of an issuer, a person who:
	 	(xi)	acting
alone, in conjunction, or in concert with one or more persons, directly or indirectly, takes the initiative in founding, organizing
or substantially reorganizing the business of the issuer; and
	 	(xii)	at
the time of the trade is actively involved in the business of the issuer;

 

“foreign
jurisdiction” means a country other than Canada or a political subdivision of a country other than Canada;

 

“fully
managed account” means an account of a client for which a person makes the investment decisions if that person has full
discretion to trade in securities for the account without requiring the client's express consent to a transaction;

 

“investment
fund” means a mutual fund or a non-redeemable investment fund;

 

“jurisdiction”
means a province or territory of Canada except when used in the term foreign jurisdiction;

 

“local
jurisdiction” means the jurisdiction in which the Canadian securities regulatory authority is situate;

 

“non-redeemable
investment fund” has the same meaning as in National Instrument 81-106 – Investment Fund Continuous Disclosure;

 

    	 

    	 

    

 

“person”
includes:

 

	 	(xiii)	an
    individual;
	 	(xiv)	a
    corporation;

	 	(
    )	a
    partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated
    or not; and

	 	(xv)	an
    individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative;

 

“regulator”
means, for the local jurisdiction, the person referred to in Appendix D of National Instrument 14-101 Definitions opposite
the name of the local jurisdiction;

 

“related
liabilities” means:

 

	 	(xvi)	liabilities
    incurred or assumed for the purpose of financing the acquisition or ownership of financial assets; or
	 	(xvii)	liabilities
    that are secured by financial assets;

 

“Schedule
III bank” means an authorized foreign bank named in Schedule III of the Bank Act (Canada);

 

“spouse”
means, an individual who:

 

	 	(xviii)	is
    married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada),
    from the other individual;
	 	(i)	is
    living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals
    of the same gender; or
	 	(xix)	in
    Alberta, is an individual referred to in paragraph (i) or (ii) above, or is an adult interdependent partner

 

within
the meaning of the Adult Interdependent Relationships Act (Alberta); and

 

“subsidiary”
means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary.

 

    	 

    	 

    

 

SCHEDULE
“D”

 

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%

 

    	 

    	 

    

 

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%

 

    	 

    	 

    

 

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%

 

    	 

    	 

    

 

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	 	Harvest
    DCP Holding of North Dakota, LLC –
	(HOFW,
    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%

 

    	 

    	 

    

 

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%

 

    	 

    	 

    

 

SCHEDULE
“E”

 

ACKNOWLEDGEMENT
RE SECURITY FOR DEBENTURES

 

	TO:	BRIDGING
    FINANCING INC., AS AGENT (“Bridging”)

 

	RE:	Offering
    of US$500 million of unsecured convertible debentures (the “Debentures”) by Harvest Health & Recreation Inc.
    (the “Company”) in tranches of US$100 million per tranche, on the terms set out in term sheet (the “Term
    Sheet”) attached as Schedule B.

 

The
undersigned hereby acknowledges that it is a subscriber in the closing of the ● tranche of Debentures and that the Debentures
referred to in the Term Sheet are unsecured obligations of the Company and the undersigned confirms, covenants and agrees to and
in favour of Bridging that the undersigned will not seek security in respect of the obligations under the Debentures from the
Company or any affiliate of the Company.

 

DATED
this        day of ●.

 

	 	 
	 	Per:
	 	 
	 	 
	 	Name:
	 	Title:

 

    	 

    	 

    

 

SCHEDULE
“B”

 

Form
of Convertible Debenture

 

(See
attached)

 

    	 

    	 

    

 

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

 

HARVEST
HEALTH & RECREATION INC.

 

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.

 

    	A - 5

    	 

    

 

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.

 

(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.

 

    	A - 10

    	 

    

 

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.

 

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.

 

    	A - 11

    	 

    

 

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.

 

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.

 

    	A - 13

    	 

    

 

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)

 

    	 

    	 

    

 

SCHEDULE
“C”

 

Form
of Warrant

 

(See
attached)

 

    	 

    	 

    

 

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].

 

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.

 

    	 

    	- 2 -

    

 

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).

 

	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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