Document:

Exhibit 10.1

 

EXECUTION
VERSION

 

HSCP CN HOLDINGS II ULC

 

as Borrower

 

and

 

HIGH STREET CAPITAL PARTNERS, LLC

 

as Guarantor

 

and

 

[REDACTED - LENDER NAME]

 

as Lender

 

 

loan
agreement

 

September 28,
2020

 

 

Stikeman
Elliott LLP

 

     

     

    

 

	 	TABLE OF CONTENTS	 
	 	 	 
	 	ARTICLE 1	 
	 	INTERPRETATION	 
	 	 	 
	Section 1.1	Defined Terms	1
	Section 1.2	Gender and Number	7
	Section 1.3	Headings, etc.	7
	Section 1.4	Currency	7
	Section 1.5	Certain Phrases, etc	7
	Section 1.6	Non-Business Days	8
	Section 1.7	Accounting Terms	8
	Section 1.8	Conflict	8
	Section 1.9	Certificates	8
	Section 1.10	References to Agreements	8
	Section 1.11	Statutes	8
	 	 	 
	 	ARTICLE 2	 
	 	CREDIT FACILITY	 
	 	 	 
	Section 2.1	Availability	8
	Section 2.2	Interest	8
	Section 2.3	Use of Proceeds	9
	Section 2.4	Mandatory Repayments	9
	Section 2.5	Optional Prepayments	9
	Section 2.6	Fees.	9
	Section 2.7	Payments under this Agreement	9
	Section 2.8	Application of Payments and Prepayments	9
	Section 2.9	Computations of Interest and Fees	10
	 	 	 
	 	ARTICLE 3	 
	 	CONDITIONS OF LENDING	 
	 	 	 
	Section 3.1	Conditions Precedent to the Loan Advance	10
	 	 	 
	 	ARTICLE 4	 
	 	REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES	 
	 	 	 
	Section 4.1	Representations and Warranties of the Credit Parties.	11
	Section 4.2	Survival of Representations and Warranties	14
	 	 	 
	 	ARTICLE 5	 
	 	REPRESENTATION AND WARRANTY OF THE LENDER	 
	 	 	 
	Section 5.1	Representations and Warranties of the Lender	14
	Section 5.2	Survival of Representations and Warranties	14
	 	 	 
	 	ARTICLE 6	 
	 	COVENANTS OF THE BORROWER	 
	 	 	 
	Section 6.1	Affirmative Covenants	14
	Section 6.2	Negative Covenants	15

 

    (i)

     

    

 

	 	ARTICLE 7	 
	 	CHANGES IN CIRCUMSTANCES	 
	 	 	 
	Section 7.1	Increased Costs	16
	Section 7.2	Taxes	17
	Section 7.3	Illegality	18
	 	 	 
	 	ARTICLE 8	 
	 	EVENTS OF DEFAULT	 
	 	 	 
	Section 8.1	Events of Default	19
	Section 8.2	Remedies Upon Default	20
	Section 8.3	Right of Set-off	20
	 	 	 
	 	ARTICLE 9	 
	 	MISCELLANEOUS	 
	 	 	 
	Section 9.1	Amendments, etc	21
	Section 9.2	Waiver	21
	Section 9.3	Evidence of Debt	21
	Section 9.4	Notices: Effectiveness; Electronic Communication	21
	Section 9.5	Expenses; Indemnity; Damage Waiver	22
	Section 9.6	Successors and Assigns	23
	Section 9.7	Judgment Currency	24
	Section 9.8	Interest on Amounts	24
	Section 9.9	Governing Law: Jurisdiction: Etc	24
	Section 9.10	Entire Agreement	25
	Section 9.11	Waiver of Jury Trial	25
	Section 9.12	Counterparts: Integration: Effectiveness: Electronic Execution	25
	Section 9.13	Treatment of Certain Information: Confidentiality	26
	Section 9.14	Severability	27
	Section 9.15	Time of the Essence	27
	Section 9.16	No Fiduciary Duty	27

 

    (ii)

     

    

 

 

LOAN AGREEMENT

 

Loan
Agreement dated September 28, 2020 among HSCP CN Holdings II ULC, as Borrower, High Street Capital Partners, LLC, as
Guarantor, and [REDACTED - LENDER NAME], as Lender.

 

ARTICLE 1

INTERPRETATION

 

Section 1.1         Defined
Terms.

 

As used in this Agreement,
the following terms have the following meanings:

 

“Affiliate”
means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

 

“Agreement”
means this loan agreement as amended, modified, extended, renewed, replaced, restated, supplemented or refinanced from time to
time; and the expressions “Article” and “Section” followed by a number mean and refer to
the specified Article or Section of this Agreement.

 

“Annual
Review Fee” has the meaning specified in Section 2.6.

 

“Anti-Terrorism Laws”
means any law, judgment, order, executive order, decree, ordinance, rule or regulation related to terrorism financing, money
laundering or Sanctions including Part II.1 and Part XII.2 of the Criminal Code, the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act, S.C. 2000, c. 17, and regulations promulgated pursuant to the Special Economic Measures Act,
S.C. 1992, c. 17, the United Nations Act, R.S.C. 1985, c. U-2 and the Justice for Victims of Corrupt Foreign Officials
Act, S.C. 2017, c. 21.

 

“Applicable Law”
means, (a) any domestic or foreign statute, law (including common and civil law), treaty, code, ordinance, rule, regulation,
restriction or by-law (zoning or otherwise); (b) any judgment, order, writ, injunction, determination, decision, ruling, decree
or award; (c) any regulatory or stock exchange policy, practice, guideline or directive; or (d) any franchise, licence,
qualification, authorization, consent, exemption, waiver, right, permit or other approval of any Governmental Authority, binding
on or affecting the Person referred to in the context in which the term is used or binding on or affecting the Assets of such Person,
in each case whether or not having the force of law, provided that, unless specifically included, the Federal Cannabis Laws are
specifically excluded.

 

“Approved Fund”
means any Fund that is administered or managed by (a) the Lender, (b) an Affiliate of the Lender or (c) an entity
or an Affiliate of an entity that administers or manages the Lender.

 

“Asset” means,
with respect to any Person, any property (including real property), assets and undertakings of such Person of every kind and wheresoever
situate, whether now owned or hereafter acquired (and, for greater certainty, includes any equity or like interest of such Person
in any other Person).

 

“Assignee”
has the meaning specified in Section 9.7.

 

“Borrower”
means HSCP CN Holdings II ULC, an unlimited liability corporation incorporated under the laws of Alberta, and its successors and
permitted assigns.

 

     

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“Business
Day” means any day of the year, other than a Saturday, Sunday or any day on which banks are closed for business
in Calgary, Alberta.

 

“Canopy” means
Canopy Growth Corporation and each successor thereto.

 

“Canopy Option”
means Canopy’s option to acquire certain of the issued and outstanding securities of the Parent in accordance with the Parent’s
constating documents as amended in connection with the plan of arrangement implemented by the Parent on June 27, 2019, as
such plan of arrangement was amended on September 23, 2020.

 

“Capital
Lease” means a lease that would, in accordance with GAAP, be treated as a balance sheet liability.

 

“Change in Law”
means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption, making, issuance or taking
effect of any Applicable Law, (b) any change in any Applicable Law or in the administration, interpretation, implementation
or application thereof by any Governmental Authority, or (c) compliance by any Lender with any request, rule, regulation,
guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of
this Agreement, provided that notwithstanding anything herein to the contrary (i) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder or issued in connection therewith
or in implementation thereof, and (ii) all requests, rules, regulations, guidelines and directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the Canadian,
United States or foreign regulatory authorities, in each case, pursuant to Basel III, shall in each case be deemed to be a “Change
in Law”, regardless of the date enacted, adopted, issued or implemented.

 

“Change
of Control” means the occurrence of any of the following events: (a) any Person (or any successor to it continuing
from any amalgamation, merger or other reorganization) or group of Persons acting jointly or in concert (as such concept is defined
in National Instrument 62-104 - Take-over Bids and Issuer Bids) becoming the owner, directly or indirectly, beneficially or of
record, of Equity Securities representing more than 50% of the aggregate ordinary voting power represented by the outstanding share
capital of the Parent, (b) any sale, lease, exchange or other transfer (in one transaction or series of related transactions)
of all or substantially all of the Parent’s and its subsidiaries, on a consolidated basis, property and assets, (c) the
Parent’s shareholders approve any plan or proposal for the liquidation or dissolution of the Parent, or (d) the Parent
ceases to own, directly or indirectly, 100% of the Equity Securities of the Credit Parties; provided, however, that none of the
following events shall constitute a “Change of Control”: (i) the acquisition of outstanding Equity Securities
by Canopy or an affiliate thereof pursuant to the Canopy Option, (ii) Mr. Kevin Murphy ceasing to hold Equity Securities
representing more or less than 50% of the aggregate ordinary voting power represented by the outstanding share capital of the Parent,
or (iii) any event or circumstance in which the public shareholders of the Parent immediately prior to such event or circumstance
continue to, directly or indirectly, own substantially all of the Parent’s and its subsidiaries property and assets through
the ownership in a successor to, or assignee of, the Parent under this Agreement.

 

“Closing
Date” means September 28, 2020 or such other date as agreed by the parties hereto.

 

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

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have corresponding meanings.

 

     

    - 3 -

    

 

“Credit Parties”
means, collectively, the Borrower and the Guarantors.

 

“Criminal Code”
means the Criminal Code (Canada), R.S.C. 1985, c.C-46.

 

“Debt” of
any Person means (without duplication):

 

		(a)	all indebtedness of such Person for borrowed money, including borrowings of commodities, prepaid
forward sales of commodities, bankers’ acceptances, letters of credit or letters of guarantee;

 

		(b)	all indebtedness of such Person for the deferred purchase price of Assets or services, other than
for Assets and services purchased in the ordinary course of business and paid for in accordance with customary practice and not
represented by a note, bond, debenture or other evidence of Debt;

 

		(c)	all indebtedness created or arising under any conditional sale or other title retention agreement
with respect to Assets acquired by such Person (even though the rights and remedies of the seller or lender under such agreement
in the event of default are limited to repossession or sale of such Assets);

 

		(d)	all obligations of such Person represented by a note, bond, debenture or other evidence of Debt;

 

		(e)	all obligations under Capital Leases and all obligations under synthetic leases, in each case,
in respect of which such Person is liable as lessee;

 

		(f)	all obligations with respect to any Equity Securities in the capital of the Person which, by their
terms (or by the terms of any security into which they are convertible or for which they are exchangeable), or upon the happening
of any event (i) mature or are mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (ii) are redeemable
for cash or debt at the sole option of the holder, or (iii) provide for scheduled payments of dividends in cash, in each case,
on or prior to the Maturity Date;

 

		(g)	the net amount payable by such Person under Derivatives Agreements, provided that such amount shall
only constitute Debt if such Derivatives Agreements have been closed out or terminated; and

 

		(h)	all Debt of another entity of a type described in clauses (a) through (g) which is directly
or indirectly guaranteed by such Person, which is secured by a Lien on any Assets of such Person, which such Person has agreed
(contingently or otherwise) to purchase or otherwise acquire, or in respect of which such Person has otherwise assured a creditor
or other entity against loss.

 

The Debt of any Person shall
include the Debt of any other entity (including a partnership in which such Person is a general partner) to the extent such Person
is liable therefor as a result of such Person’s ownership interest in or relationship with such entity, except (other than
in the case of general partner liability) to the extent that the terms of such Debt expressly provide that such Person is not liable
therefor.

 

“Default”
means an event which, with the giving of notice or passage of time, or both, would constitute an Event of Default.

 

     

    - 4 -

    

 

“Derivatives
Agreement” means any agreement relating to a transaction of a type commonly considered to be a derivatives or
hedging transaction or any combination of such transactions, in each case, whether relating to one or more of currencies, interest,
commodities, securities or other matters, including (a) any option, collar, floor or cap, (b) any forward contract, and
(c) any rate swap, basis swap, commodity swap, cross-currency swap or other swap or contract for differences.

 

“Equity Securities”
means, with respect to any Person, any and all shares, interests, participations, rights in, or other equivalents (however designated
and whether voting or non-voting) of, such Person’s capital, including any interest in a partnership, limited partnership
or other similar Person and any beneficial interest in a trust, and any and all rights, warrants, options or other rights exchangeable
for or convertible into any of the foregoing.

 

“Event
of Default” has the meaning specified in Section 8.1.

 

“Excluded Taxes”
means, with respect to the Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder or under any other Loan Document, (a) Taxes imposed on or measured by its net income, capital gains or capital,
and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under
the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located, or that are Other Connection Taxes, (b) any branch profits taxes or any similar
tax imposed by any jurisdiction in which the Lender is located, (c) any Taxes imposed under FATCA, and (d) any Taxes
required to be deducted or withheld under the Income Tax Act from any ‎payment under the Loan Documents as a result of: (1) the
recipient (or beneficial ‎holder of the Loan) not dealing at arm’s length (within the meaning of the Income ‎Tax
Act) with the Borrower, or (2) the recipient being a “specified non-resident ‎shareholder” of the Borrower
or not dealing at arm’s length with a “specified ‎shareholder” of the Borrower (in each case within the meaning
of the Income Tax ‎Act) (other than where the non-arm’s length relationship arises, or where the ‎recipient is a
 “specified non-resident shareholder”, or does not deal at arm’s length ‎with a “specified shareholder”,
as a result of such Person having become a party to, ‎received or perfected a security interest under, or received or enforced
any rights ‎under, any Loan Document)‎.

 

“FATCA” means
Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor ‎version that is substantively
comparable),‎ any current or future regulations or official interpretations thereof, any agreements entered into pursuant to
Section 1471(b)(1) of the Code and any intergovernmental agreements or implementing legislation enacted by any jurisdiction
with respect to such intergovernmental agreements.‎

 

“Federal Cannabis Laws”
means the Controlled Substances Act, 21 USC 801 et seq. as it applies to marijuana (including any implementing regulations and
schedules in effect at the relevant time) or any other federal law of the United States the violation of which is predicated upon
a violation of the Controlled Substances Act as it applies to marijuana.

 

“Fees” means
the fees payable by the Borrower under this Agreement, including the Annual Review Fee.

 

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise
investing in commercial loans and similar extensions of credit in the ordinary course of its business.

 

“GAAP”
means the accounting principles generally accepted in Canada and/or the United States, as may be adopted by the Parent from time
to time in accordance with applicable securities legislation.

 

     

    - 5 -

    

 

“Governmental
Authority” means the government of Canada or any other nation, or of any political subdivision thereof, whether
state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including
any supranational bodies such as the European Union or the European Central Bank and including a Minister of the Crown, Superintendent
of Financial Institutions or other comparable authority or agency, any securities exchange and any self-regulatory organization.

 

“Guarantees”
means the guarantee dated as of the date hereof given by the Guarantor in favour of the Lender, in form and substance
satisfactory to the Lender, as may be amended, amended and restated, supplemented or otherwise modified from time to time.

 

“Guarantor”
means High Street Capital Partners, LLC, a limited liability company incorporated under the laws of Delaware, and its
successors and permitted assigns.

 

“Income Tax Act”
means the Income Tax Act (Canada), as amended from time to time.‎

 

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

 

“Indemnitee”
has the meaning specified in Section 9.5(2).

 

“Information”
has the meaning specified in Section 9.13(2).

 

“Lender”
means [REDACTED - LENDER NAME], its successors and assigns.

 

“Lien”
means any mortgage, deed of trust, trust or deemed trust, lien (statutory or otherwise), pledge, assignment, hypothecation, encumbrance,
charge, security interest, deposit arrangement, royalty interest, claim, right of detention or seizure, right of distraint, easement,
or right of set off (other than a right of set off arising in the ordinary course), including the interest of a vendor or a lessor
under any conditional sale agreement, Capital Lease, title retention agreement or consignment agreement (or any financing lease
having substantially the same economic effect as any of the foregoing), and any other agreement, trust or arrangement that in substance
secures payment or performance of an obligation.

 

“Loan”
means the term loan in the aggregate principal amount of US$33,000,000 to be made available to the Borrower by the Lender under
this Agreement for the purposes set out in Section 2.3.

 

“Loan
Commitment” has the meaning specified in Section 2.1(1).

 

“Loan
Documents” means this Agreement, the Guarantees and all other documents to be executed and delivered to the Lender
by the Credit Parties, or any of them, from time to time in connection with this Agreement or any other Loan Document.

 

“Loan
Rate” means the 7.50% per annum.

 

“Material
Adverse Effect” means (a) a material adverse effect on the business, operations, results of operations, Assets,
liabilities or financial condition of the Credit Parties taken as a whole, (b) a material adverse effect on the ability of
any of the Credit Parties to perform its obligations under any Loan Document to which it is a party, or (c) a material adverse
effect on the rights and remedies of the Lender under any Loan Document.

 

“Maturity
Date” means the date which is 36 months following the Closing Date or, if such date is not a Business Day, the
immediately following Business Day.

 

     

    - 6 -

    

 

“Obligations”
means all debts, liabilities and obligations, present or future, direct or indirect, absolute or contingent, matured or unmatured,
at any time or from time to time due or accruing due and owing by or otherwise payable by the Credit Parties, or any of them, to
the Lender under, in connection with or pursuant to the Loan Documents, including the Loan, all accrued interest and Fees and all
other amounts payable under this Agreement.

 

“Original Currency”
has the meaning specified in Section 9.7.

 

“Other Connection Taxes”
means, with respect to the Lender or ‎any other recipient of any payment to be made by or on account of any obligation of the
 ‎Borrower hereunder, Taxes imposed as a result of a present or former connection between ‎such recipient and the jurisdiction
imposing such Tax (other than connections arising from ‎such recipient having executed, delivered, become a party to, performed
its obligations ‎under, received payments under, received or perfected a security interest under, engaged in ‎any other
transaction pursuant to or enforced any Loan Document, or sold or assigned an ‎interest in any Loan Document).‎

 

“Other Currency”
has the meaning specified in Section 9.7(1).

 

“Other Taxes”
means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement or any other Loan Document, in each case, including any interest, additions to tax or penalties
applicable thereto.

 

“Parent” means
Acreage Holdings, Inc., and its successors and permitted assigns.

 

“Permitted
Liens” means, in respect of any Person, any Liens for Taxes which are not due or delinquent or the validity of
which is being contested at the time by the Person in good faith by proper legal proceedings if adequate provision has been made
for their payment and such Liens are not executed on or enforced against any of the Assets of any Credit Party.

 

“Person”
means an individual, sole proprietorship, corporation, limited liability company, trust, joint venture, association, company, partnership,
institution, public benefit corporation, investment or other fund, Governmental Authority or other entity, and pronouns have a
similarly extended meaning.

 

“Related
Parties” means, with respect to any Person, such Person’s Affiliates and the directors, officers, employees,
agents and advisors of such Person and of such Person’s Affiliates.

 

“Sanctioned
Person” means any Person that is a designated target of Sanctions or is otherwise a subject of Sanctions, including
as a result of being (a) owned, held or controlled by any person which is a designated target of Sanctions, (b) located
or resident in, a national of, or organized under, the laws of any country that is subject to general or country-wide Sanctions,
or (c) a “designated person”, a “politically exposed foreign person” or “terrorist group”
as described in any Sanctions.

 

“Sanctions”
means applicable economic or trade sanctions or other restrictive measures administered or enforced by a Governmental Authority
(including, in Canada, Global Affairs Canada and Public Safety Canada) or other relevant sanctions authority which governs transactions
in controlled goods or technologies or dealings with countries, entities, organizations or individuals subject to such economic
or trade sanctions or restrictive measures.

 

     

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“Solvent”
means, (a) with respect to any Person organized under the laws of Canada or any province or territory thereof, on a particular
date, that on such date, (i) such Person is not for any reason unable to meet its obligations as they generally become due,
(ii) such Person has not ceased paying its current obligations in the ordinary course of business as they generally become
due, and (iii) the aggregate property of such Person is, at a fair valuation, sufficient, or, if disposed of at a fairly conducted
sale under legal process, would be sufficient, to enable payment of all its obligations, due and accruing due, and (b) with
respect to any Person organized under the laws of a jurisdiction located within the United States on a particular date, that on
such date (i) the fair value of the property of such Person is greater than the total amount of liabilities, including, without
limitation, contingent liabilities, of such Person, (ii) the present fair saleable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and
matured, (iii) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay such debts and liabilities as they mature and (iv) such Person is not engaged in business or a transaction,
and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably
small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in light of all the ‎facts
and circumstances existing at such time, represents the amount that can reasonably be expected ‎to become an actual or matured
liability.‎

 

“Taxes” means
all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“U.S. Dollars”
and “US$” means lawful money of the United States of America.

 

Section 1.2         Gender
and Number.

 

Any reference in the
Loan Documents to gender includes all genders and words importing the singular number only include the plural and vice versa.

 

Section 1.3         Headings, etc.

 

The provision of a
Table of Contents, the division of this Agreement into Articles and Sections and the insertion of headings are for convenient reference
only and are not to affect the interpretation of this Agreement.

 

Section 1.4         Currency.

 

All references in the
Loan Documents to $ or dollars, unless otherwise specifically indicated, are expressed in the currency of the United States of
America.

 

Section 1.5         Certain
Phrases, etc.

 

In any Loan Document
(i) (y) the words “including” and “includes” mean “including (or includes)
without limitation” and (z) the phrase “the aggregate of”, “the total of”,
 “the sum of”, or a phrase of similar meaning means “the aggregate (or total or sum), without duplication,
of”, (ii) in the computation of periods of time from a specified date to a later specified date, unless otherwise
expressly stated, the word “from” means “from and including” and the words “to”
and “until” each mean “to but excluding”, and references to “this Agreement”,
 “hereof” and “herein” and like references refer to such Loan Document and not to any particular
Article, Section or other subdivision of such Loan Document.

 

     

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Section 1.6         Non-Business
Days.

 

Whenever any payment
to be made hereunder shall be stated to be due or any action to be taken hereunder shall be stated to be required to be taken on
a day other than a Business Day, such payment shall be made or such action shall be taken on the next succeeding Business Day and,
in the case of the payment of any amount, the extension of time shall be included for the purposes of computation of interest,
if any, thereon.

 

Section 1.7         Accounting
Terms.

 

All accounting terms
not specifically defined in this Agreement shall be interpreted in accordance with GAAP.

 

Section 1.8         Conflict.

 

The provisions of this
Agreement prevail in the event of any conflict or inconsistency between its provisions and the provisions of any of the other Loan
Documents.

 

Section 1.9         Certificates.

 

Any certificate required
by the terms of this Agreement or any other Loan Document to be given by an officer of the Borrower for and on behalf of any Credit
Party shall be given without any personal liability on the part of the officer giving the certificate.

 

Section 1.10       References
to Agreements.

 

Any
reference in this Agreement to any agreement or document means such agreement or document as the same may have been or may from
time to time be amended, modified, extended, renewed, restated, replaced or supplemented in accordance herewith and therewith.

 

Section 1.11       Statutes.

 

Any
reference in this Agreement to a statute refers to such statute and all rules and regulations made under it as the same may
have been or may from time to time be amended, re-enacted or replaced.

 

ARTICLE 2

CREDIT FACILITY

 

Section 2.1         Availability.

 

		(1)	The Lender agrees, on the terms and conditions of this Agreement, to lend the principal amount
of up to US$33,000,000 (the “Loan Commitment”) to the Borrower in one instalment on the Closing Date. To the
extent that less than the full amount of any Loan Commitment is borrowed by the Borrower on the Closing Date, such Loan Commitment
will be automatically reduced to the amount so borrowed.

 

		(2)	The Loan does not revolve and any amount repaid or prepaid, as the case may be, cannot be reborrowed
and reduces the Loan Commitment by the amount repaid or prepaid, as the case may be.

 

Section 2.2         Interest.

 

		(1)	The principal amount of the Loan outstanding from time to time shall bear interest at the Loan
Rate.

 

     

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		(2)	Interest shall be calculated and payable in arrears (i) on the first Business Day of each
month, and (ii) when the Loan becomes due and payable in full or is repaid.

 

		(3)	From and after the date of the occurrence of an Event of Default and for so long as such Event
of Default continues, the principal amount of the Loan outstanding from time to time shall bear interest at the Loan Rate.

 

Section 2.3         Use of
Proceeds.

 

The Borrower shall
use the proceeds of the Loan for general corporate purposes.

 

Section 2.4         Mandatory
Repayments.

 

The Borrower shall
repay (subject to Section 8.1) the Loan, together with all accrued interest and Fees and all other amounts payable in connection
with the Loan, on the Maturity Date.

 

Section 2.5         Optional
Prepayments.

 

At any time after September 28,
2022, upon five Business Days’ notice to the Lender specifying (i) the date of prepayment, and (ii) the amount
to be prepaid, the Borrower may prepay all or any portion of the Loan together with all interest accrued thereon to that date,
without any premium, bonus, penalty or other charge. Each partial prepayment or reduction shall be in an aggregate principal amount
of US$1,000,000 or an integral multiple of such amount.

 

Section 2.6         Fees.

 

The Borrower shall
pay to the Lender an annual review fee of [REDACTED - COMMERCIALLY SENSITIVE] (the “Annual Review Fee”)
on each of the first and second 12-month anniversary of the Closing Date.

 

Section 2.7     Payments
under this Agreement.

 

All payments to be
made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or set-off. Unless
otherwise expressly provided in this Agreement, the Borrower shall make any payment required to be made by it to the Lender by
depositing the amount of the payment an account specified by the Lender in immediately available funds not later than 10:00 a.m. (Calgary
time) on the date the payment is due.

 

Section 2.8         Application
of Payments and Prepayments.

 

		(1)	All repayments or prepayments received by the Lender pursuant to Section 2.7 shall be applied
by the Lender to the amounts due pursuant to Section 2.4 in the inverse order of their maturity.

 

		(2)	All amounts received by the Lender from or on behalf of the Borrower and not previously applied
pursuant to this Agreement shall be applied by the Lender as follows (i) first, in reduction of the Borrower’s obligation
to pay any unpaid interest and any fees which are due and owing, (ii) second, in reduction of the Borrower’s obligation
to pay any claims or losses referred to in Section 9.5, (iii) third, in reduction of the Borrower’s obligation
to pay any amounts due and owing on account of the Loan, (iv) fourth, in reduction of any other obligation of the Borrower
under this Agreement and the other Loan Documents, and (v) fifth, to the Borrower or such other Persons as may lawfully be
entitled to or directed to receive the remainder.

 

     

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Section 2.9         Computations
of Interest and Fees.

 

		(1)	All computations of interest shall be made by the Lender taking into account the actual number
of days occurring in the period for which such interest is payable.

 

		(2)	All computations of Fees shall be made by the Lender on the basis of a year of 365 days taking
into account the actual number of days (including the first day but excluding the last day) occurring in the period for which the
fees are payable.

 

		(3)	For purposes of the Interest Act (Canada), (i) whenever any interest or Fee under this
Agreement is calculated using a rate based on a year of 365 days (or such other period that is less than a calendar year), as the
case may be, the rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (x) the
applicable rate based on a year of 365 days (or such other period that is less than a calendar year), as the case may be, (y) multiplied
by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded)
ends, and (z) divided by 365 (or such other period that is less than a calendar year), as the case may be, (ii) the principle
of deemed reinvestment of interest does not apply to any interest calculation under this Agreement, and (iii) the rates of
interest stipulated in this Agreement are intended to be nominal rates and not effective rates or yields.

 

		(4)	If any provision of this Agreement or of any of the other Loan Documents would obligate any Credit
Party to make any payment of interest or other amount payable to the Lender in an amount or calculated at a rate which would be
prohibited by Applicable Law or would result in a receipt by the Lender of interest at a criminal rate (as such terms are construed
under the Criminal Code) then, notwithstanding such provisions, such amount or rate shall be deemed to have been adjusted
with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by Applicable
Law or so result in a receipt by the Lender of interest at a criminal rate, such adjustment to be effected, to the extent necessary,
as follows: firstly, by reducing the amount or rate of interest required to be paid to the Lender under the applicable Loan Document,
and thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid to the Lender which would constitute
 “interest” for purposes of Section 347 of the Criminal Code.

 

		(5)	To the extent permitted by Applicable Law, the provisions of the Judgment Interest Act (Alberta)
will not apply to the Loan Documents and are hereby expressly waived by each of the Credit Parties.

 

ARTICLE 3

CONDITIONS OF LENDING

 

Section 3.1         Conditions
Precedent to the Loan Advance.

 

The obligation of the
Lender to make the Loan is subject to fulfilment of the following conditions precedent at the time the Loan is made:

 

		(a)	no Default or Event of Default has occurred or is continuing or would arise immediately after giving
effect to or as a result of the Loan;

 

		(b)	the Loan will not violate any Applicable Law (including any Federal Cannabis Law);

 

		(c)	the representations and warranties of the Credit Parties contained in Article 4 and in any
other Loan Document are true and correct on the date of the Loan as if such representations and warranties were made on that date;

 

     

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		(d)	the Lender has received, in form, substance, scope and dated a date satisfactory to it and its
counsel:

 

		(i)	an executed copy of the Loan Documents;

 

		(ii)	certified copies of (i) the charter documents and the by-laws of each Credit Party, (ii) all
resolutions of the board of directors or shareholders, as the case may be, of each Credit Party approving the borrowing and other
matters contemplated by this Agreement and the other Loan Documents, and (iii) a list of the officers and directors authorized
to sign agreements together with their specimen signatures;

 

		(iii)	a certificate of status, compliance or like certificate with respect to each Credit Party issued
by the appropriate Governmental Authority of the jurisdiction of its incorporation;

 

		(iv)	opinions of counsel to the each of the Credit Parties;

 

		(v)	all approvals, acknowledgments and consents of all Governmental Authorities and other Persons which
are required to be obtained by any Credit Party in order to complete the transactions contemplated by this Agreement and to perform
its obligations under any Loan Document to which it is a party; and

 

		(vi)	such other certificates and documentation as the Lender may reasonably request;

 

		(e)	the Lender shall have completed, to its satisfaction, a due diligence review of the Credit Parties
and the business of the Credit Parties;

 

		(f)	the Lender is satisfied that, since June 30, 2020, there has not been an event or circumstance
which could reasonably be expected to result in a Material Adverse Effect;

 

		(g)	all fees, costs and expenses and other amounts then payable under the Loan Documents, including
all fees of the Lender’s counsel, have been paid in full or arrangements for payment of such fees, costs and expenses have
been made that are satisfactory to the Lender; and

 

		(h)	the Lender shall have received funds from its limited partners in an amount not less than the Loan
Commitment.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES

 

Section 4.1         Representations
and Warranties of the Credit Parties.

 

Each Credit Party jointly
and severally represents and warrants to the Lender, acknowledging and confirming that the Lender is relying on such representations
and warranties without independent inquiry in entering into this Agreement and providing the Loan that:

 

		(a)	Incorporation and Qualification. Each of the Credit Parties is a corporation or limited
liability company duly incorporated, organized and validly existing under the laws of its jurisdiction of incorporation. Each of
the Credit Parties is qualified, licensed or registered to carry on business under the laws applicable to it in all jurisdictions
in which such qualification, licensing or registration is necessary or where failure to be so qualified would have a Material Adverse
Effect;

 

     

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		(b)	Corporate Power. Each of the Credit Parties has all requisite corporate power and authority
to (i) own, lease and operate its properties and assets and to carry on its business as now being conducted by it, and (ii) enter
into and perform its obligations under the Loan Documents to which it is a party;

 

		(c)	Conflict With Other Instruments. The execution and delivery by each of the Credit Parties
and the performance by each of them of their respective obligations under, and compliance with the terms, conditions and provisions
of, the Loan Documents to which they are a party will not conflict with or result in a breach of any of the terms or conditions
of (i) their respective constating documents or by-laws, (ii) any Applicable Law (including any Federal Cannabis Law),
or (iii) any contractual restriction binding on or affecting them or their respective Assets;

 

		(d)	Corporate Action, Governmental Approvals, etc. The execution and delivery of each of
the Loan Documents by each of the Credit Parties, in each case, to the extent a party thereto and the performance by each of the
Credit Parties of their respective obligations under the Loan Documents, in each case, to the extent a party thereto have been
duly authorized by all necessary corporate action including, without limitation, the obtaining of all necessary shareholder consents.
No authorization, consent, approval, registration, qualification, designation, declaration or filing with any Governmental Authority
or other Person, is or was necessary in connection with the execution, delivery and performance of obligations under the Loan Documents
except as are in full force and effect, unamended, at the date of this Agreement;

 

		(e)	Execution and Binding Obligation. This Agreement and the other Loan Documents have been
duly executed and delivered by each of the Credit Parties, in each case, to the extent a party thereto and constitute legal, valid
and binding obligations of such Credit Party enforceable against them in accordance with their respective terms, subject only to
any limitation under Applicable Laws relating to (i) bankruptcy, insolvency, arrangement or creditors’ rights generally,
and (ii) the discretion that a court may exercise in the granting of equitable remedies;

 

		(f)	Authorizations, etc. Each of the Credit Parties possesses all authorizations, permits,
consents, registrations and approvals necessary to properly conduct their respective businesses and all such authorizations, permits,
consents, registrations and approvals are in good standing and in full force and effect, except where the failure to possess or
maintain in good standing and in full force and effect such authorizations, permits, consents, registrations or approvals, individually
or in the aggregate, would not reasonably be expected to have a Material Adverse Effect;

 

		(g)	Compliance with Laws. Each of the Credit Parties is in compliance with all Applicable Laws
(including, with respect to the Borrower only, all Federal Cannabis Laws except as it relates to the use by the Borrower of the
proceeds of the Loan hereunder) except where the failure to be in compliance, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect. The Loan Documents and the transactions contemplated thereby are in compliance with
all applicable securities related laws, rules and regulations applicable to each of the Credit Parties and any direct or indirect
parent thereof to which any such laws, rules and regulations would apply;

 

		(h)	No Default. No Credit Party is in violation of its constating documents, its by-laws or
any shareholders’ agreement applicable to it if such violation would reasonably be expected to have a Material Adverse Effect;

 

     

    - 13 -

    

 

		(i)	No Default or Event of Default. No Default or Event of Default has occurred and is continuing
or would reasonably be expected to arise immediately after giving effect to or as a result of the Loan pursuant to this Agreement;

 

		(j)	Books and Records. All books and records of each of the Credit Parties have been fully,
properly and accurately kept and completed in accordance with GAAP, where applicable, and there are no material inaccuracies or
discrepancies of any kind contained or reflected therein. The Credit Parties’ books and records and other data and information
are available to the Credit Parties in the ordinary course of their respective businesses;

 

		(k)	Tax Liability. Each of the Credit Parties has filed all tax and information returns which
are required to be filed. Each of the Credit Parties has paid all Taxes which have become due pursuant to such returns or pursuant
to any assessment received by any of them other than those in respect of which liability based on such returns or assessments is
being contested in good faith and by appropriate proceedings where adequate reserves have been established in accordance with GAAP,
and all Taxes that any Governmental Authority is currently entitled to collect in respect of such contest, if any, have been paid.
Adequate provision for payment has been made for Taxes not yet due. There are no disputes with respect to Taxes existing or pending
involving any of the Credit Parties or their respective businesses which would reasonably be expected to have a Material Adverse
Effect;

 

		(l)	Debt. The Borrower does not have any Debt except as permitted by Section 6.2(a);

 

		(m)	Solvency. Each of the Credit Parties is Solvent;

 

		(n)	No Litigation. There is no action, suit, arbitration or proceeding pending, taken or to
the Borrower’s knowledge, threatened, before or by any Governmental Authority or arbitrator or by or against any elected
or appointed public official or private person in Canada or elsewhere, which (i) challenges, or to the knowledge of the Borrower,
has been proposed which may challenge, the validity or propriety of the transactions contemplated under the Loan Documents or the
documents, instruments and agreements executed or delivered in connection therewith or related thereto, or (ii) would reasonably
be expected to have a Material Adverse Effect;

 

		(o)	Anti-Terrorism, Anti-Corruption Laws. None of the Credit Parties
or other Related Parties is a Sanctioned Person or is in violation of any Anti-Terrorism Law or Sanction, or deals in property
or interests in property, or otherwise engages in any transaction, prohibited by any Anti-Terrorism Law or Sanction. Neither the
Loan nor any of the other services and products, if any, to be provided by the Lender or in connection with this Agreement (i) will
be used by, on behalf of, or for the benefit of, any Person other than any Credit Party, (ii) will be used, directly or indirectly,
for any payments to any governmental official or employee, political party, official of a political party, candidate for political
office, official of any public international organization, or anyone else acting in an official capacity, in order to obtain, retain
or direct business or obtain any improper advantage, in violation of the Corruption of Foreign Public Officials Act (Canada),
or any similar laws, rules or regulations issued, administered or enforced by any Governmental Authority having jurisdiction
over any Credit Party, or (iii) will be used in a manner that would result in a violation of any Sanctions, section
462.31(1) of the Criminal Code and/or any Applicable Law. None of the Obligations and none of the other amounts payable under
the Credit Agreement will be paid by any of the Credit Parties with any property or proceeds of any property that was obtained
or derived directly or indirectly as a result of an act or omission anywhere that, if it had occurred in Canada, would have constituted
a designated offence (as defined in section 462.31(1) of the Criminal Code). Each of the Credit Parties has taken measures
appropriate to the circumstances (in any event as required by Applicable Law) to ensure that each of the Credit Parties is and
will continue to be in compliance with such applicable anti-corruption laws, rules and regulations and Anti-Terrorism Laws;
and

 

     

    - 14 -

    

 

 

		(p)	Disclosure. All written information supplied to the Lender is true and accurate in all material
respects and does not contain any untrue statement of material fact or omit to state a material fact necessary in order to make
the statements contained in such written information not misleading in light of the circumstances under which such statements were
made. There is no fact known to the Credit Parties which would reasonably be expected to have a Material Adverse Effect and which
has not been disclosed to the Lender. No event has occurred which would reasonably be expected to have a Material Adverse Effect
since the date of last financial statements delivered to the Lenders.

 

Section 4.2     Survival
of Representations and Warranties.

 

The representations
and warranties in this Agreement and in any certificates or documents delivered to the Lender shall not merge in or be prejudiced
by and shall survive the advance of the Loan and shall continue in full force and effect so long as any amounts are owing by the
Borrower to the Lender under this Agreement.

 

ARTICLE 5

REPRESENTATION AND WARRANTY OF THE LENDER

 

Section 5.1     Representations
and Warranties of the Lender.

 

The Lender represents
and warrants to the Credit Parties, acknowledging and confirming that the Credit Parties are relying on such representation and
warranty without independent inquiry in entering into this Agreement, that the Lender is a “Canadian partnership” within
the meaning of the Income Tax Act.

 

Section 5.2     Survival
of Representations and Warranties.

 

The representations
and warranties in this Agreement and in any certificates or documents delivered to the Credit Parties shall not merge in or be
prejudiced by and shall survive the advance of the Loan and shall continue in full force and effect so long as any amounts are
owing by the Borrower to the Lender under this Agreement.

 

ARTICLE 6

COVENANTS OF THE BORROWER

 

Section 6.1     Affirmative
Covenants.

 

So long as any amount
owing under this Agreement remains unpaid or the Lender has any obligation under this Agreement, and unless consent is given in
accordance with Section 9.1, the Borrower and each other Credit Party shall do the following:

 

		(a)	Prompt Payment. The Borrower will pay or cause to be
paid all Obligations and other amounts payable under the Loan Documents punctually when due;

 

		(b)	Reporting Requirements. Deliver to the Lender:

 

		(i)	as soon as practicable, and in any event within five days after the occurrence of each Default
or Event of Default, a statement of the chief financial officer of the Borrower or any other officer acceptable to the Lender setting
forth the details of the Default or Event of Default and the action which the Credit Parties propose to take or have taken; and

 

     

    - 15 -

    

 

		(ii)	such other information respecting the condition or operations, financial or otherwise, of any Credit
Party or its business as the Lender may from time to time reasonably request;

 

		(c)	Corporate Existence. Except as otherwise permitted in this Agreement, preserve and maintain
its corporate existence;

 

		(d)	Permitted Uses. Use the proceeds of the Loan hereunder only for the purposes permitted pursuant
to Section 2.3 and in compliance with Section 4.1(o);

 

		(e)	Compliance with Applicable Laws, etc. Comply with the requirements of all Applicable
Laws (including, with respect to the Borrower only, all Federal Cannabis Laws except as it relates to the use by the Borrower of
the proceeds of the Loan hereunder) except where non-compliance with any such requirement of Applicable Law (including, with respect
to the Borrower only, all Federal Cannabis Laws except as it relates to the use by the Borrower of the proceeds of the Loan hereunder)
would not reasonably be expected to have a Material Adverse Effect;

 

		(f)	Payment of Taxes and Claims. Pay or cause to be paid, when due, (i) all Taxes imposed
upon it or upon its income, sales, capital or profit or any other Assets belonging to it before the same becomes delinquent or
in default, and (ii) all claims which, if unpaid, would by Applicable Law become a Lien upon the Assets of any of the Credit
Parties, except any such Tax or claim which is being contested in good faith and by proper proceedings and in respect of which
such Credit Party have established adequate reserves in accordance with GAAP or which are Permitted Liens;

 

		(g)	Keeping of Books. Keep proper books of record and account, in which full and correct entries
shall be made in respect of the businesses in accordance with GAAP;

 

		(h)	Anti-Terrorism Laws. Promptly provide all information with respect to the Credit Parties,
their respective directors, authorized signing officers, direct or indirect shareholders or other persons in control of the Credit
Parties, including supporting documentation and other evidence, as may be reasonably requested by the Lender, or any prospective
assignee of the Lender, in order to comply with any applicable Anti-Terrorism Laws or such other applicable “know your client”
laws and requirements, whether now or hereafter existence; and

 

		(i)	Further Assurances. At its cost and expense, upon the reasonable request of the Lender,
execute and deliver or cause to be executed and delivered to the Lender such further instruments and do and cause to be done such
further acts as may be necessary or proper in the reasonable opinion of the Lender to carry out more effectually the provisions
and purposes of the Loan Documents.

 

Section 6.2     Negative
Covenants.

 

So long as any amount
owing under this Agreement remains unpaid or the Lender has any obligation under this Agreement and, unless consent is given in
accordance with Section 9.1, the Borrower and each other Credit Party shall not:

 

     

    - 16 -

    

 

		(a)	Debt. With respect to the Borrower, create, incur, assume or suffer to exist any Debt except
Debt of the Borrower to the Lender under this Agreement;

 

		(b)	Liens. With respect to the Borrower, create, incur, assume or suffer to exist any Lien on
any of its Assets other than Permitted Liens;

 

		(c)	Mergers, Etc. Enter into, or permit any of the Credit Parties to enter into, any reorganization,
consolidation, amalgamation, arrangement, winding-up, merger or other similar transaction except any Credit Party may enter into
any such transaction if:

 

		(i)	no Default or Event of Default exists and is continuing or would result from such transaction;

 

		(ii)	in the case of a transaction involving the Borrower incorporated under the laws of Canada or one
of its Provinces or Territories, the continuing corporation is also a limited liability corporation existing under the laws of
Canada or one of its Provinces or Territories;

 

		(iii)	the continuing corporation assumes the relevant Credit Parties’ obligations under the Loan
Documents;

 

		(iv)	in the case of a transaction involving the Borrower, the Guarantor confirms that its guarantee
continues to extend to the Obligations of the Borrower;

 

		(v)	such transaction is on such terms, and carried out in such manner, as to preserve and not to impair,
and to have no adverse effect on, any of the rights and powers of the Lender hereunder and under the other Loan Documents; and

 

		(vi)	prior to or contemporaneously with the completion of such transaction, the continuing corporation
shall have executed and delivered, or caused to have been executed and delivered, to the Lender such documents (including legal
opinions of counsel to the continuing corporation) as may, in the opinion of the Lender, acting reasonably, be necessary to effect
or establish the matters in paragraphs (i) through (v) above;

 

		(d)	Amendments. Amend or change any of its constating documents, except where such amendment,
change or new agreement is not materially adverse (as determined by the Lender, acting reasonably) to the interests of the Lender
under the Loan Documents; and

 

		(e)	Anti-Terrorism Laws. Pay or cause to be paid all Obligations
and other amounts payable under the Loan Documents with any property or proceeds of any property that was obtained or derived directly
or indirectly as a result of an act or omission anywhere that, if it had occurred in Canada, would have constituted a designated
offence (as defined in section 462.31(1) of the Criminal Code).

 

ARTICLE 7

CHANGES IN CIRCUMSTANCES

 

Section 7.1     Increased
Costs.

 

		(1)	If any Change in Law shall:

 

     

    - 17 -

    

 

		(a)	impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge
or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, the Lender;

 

		(b)	subject the Lender to any Tax of any kind whatsoever with respect to this Agreement, the Loan made
by it or any participation by it in the Loan, or change the basis of taxation of payments to the Lender in respect thereof, except
for Indemnified Taxes or Other Taxes covered by Section 7.2 and the imposition, or any change in the rate, of any Excluded
Tax payable by the Lender; or

 

		(c)	impose on the Lender or any applicable interbank market any other condition, cost or expense affecting
this Agreement, the Loan made by the Lender or the Loan in which the Lender has a participation interest;

 

and the result of any of the
foregoing shall be to increase the cost to the Lender of making, maintaining, issuing or participating in the Loan (or of maintaining
its obligation to make, issue or participate in the Loan), or to reduce the amount of any sum received or receivable by the Lender
hereunder (whether of principal, interest or any other amount), then upon request of the Lender the Borrower will pay to the Lender
such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.

 

		(2)	A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender
or its holding company, as the case may be, as specified in Section 7.1(1), including reasonable detail of the basis of calculation
of the amount or amounts, and delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay the Lender
the amount shown as due on any such certificate within 10 days after receipt thereof.

 

		(3)	Failure or delay on the part of the Lender to demand compensation pursuant to this Section 7.1
shall not constitute a waiver of the Lender’s right to demand such compensation, except that the Borrower shall not be required
to compensate the Lender pursuant to this Section 7.1 for any increased costs incurred or reductions suffered more than nine
months prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions
and of the Lender’s intention to claim compensation therefore, unless the Change in Law giving rise to such increased costs
or reductions is retroactive, in which case the nine-month period referred to above shall be extended to include the period of
retroactive effect thereof.

 

		(4)	The provisions of this Section 7.1 shall survive the termination of this Agreement and the
repayment of the Obligations.

 

Section 7.2     Taxes.

  

		(1)	If any Credit Party or the Lender is required by Applicable Law to deduct or pay any Indemnified
Taxes (including any Other Taxes) in respect of any payment by or on account of any obligation of any Credit Party hereunder or
under any other Loan Document, then (i) the sum payable shall be increased by such Credit Party when payable as necessary
so that after making or allowing for all required deductions and payments for Indemnified Taxes (including deductions and payments
applicable to additional sums payable under Section 7.2), the Lender receives an amount equal to the sum it would have received
had no such deductions or payments for Indemnified Taxes been required, (ii) such Credit Party shall make any such deductions
required to be made by it under Applicable Law and (iii) such Credit Party shall timely pay the full amount required to be
deducted to the relevant Governmental Authority in accordance with Applicable Law.

 

		(2)	Without limiting the provisions of Section 7.2 above, each Credit Party shall timely pay any
Other Taxes to the relevant Governmental Authority in accordance with Applicable Law.

 

     

    - 18 -

    

 

		(3)	The Borrower shall indemnify the Lender, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) paid by the Lender and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive
absent manifest error.

 

		(4)	As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Credit Party
to a Governmental Authority, such Credit Party shall deliver to the Lender the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment
satisfactory to the Lender.

 

		(5)	If the Lender determines, in its sole discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by a Credit Party or with respect to which a Credit Party has paid additional amounts
pursuant to this Section 7.2(5) or that, because of the payment of such Taxes or Other Taxes, it has benefited from a
reduction in Excluded Taxes otherwise payable by it, it shall pay to such Credit Party an amount equal to such refund or reduction
(but only to the extent of indemnity payments made, or additional amounts paid, by such Credit Party under this Section 7.2(5) with
respect to the Taxes or Other Taxes giving rise to such refund or reduction), net of all reasonable expenses of the Lender, as
the case may be, and without interest (other than any net after Tax interest paid by the relevant Governmental Authority with respect
to such refund). Each Credit Party, upon the request of the Lender, agrees to repay the amount paid over to such Credit Party (plus
any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Lender if the Lender is required
to repay such refund or reduction to such Governmental Authority. This Section 7.2(5) shall not be construed to require
the Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the
Borrower or any other Person, to arrange its affairs in any particular manner or to claim any available refund or reduction.

 

		(6)	The provisions of this Section 7.2 shall survive the termination of this Agreement and the
repayment of the Obligations.

 

Section 7.3     Illegality.

 

If the Lender determines
that any Applicable Law (including Federal Cannabis Law) has made it unlawful, or that any Governmental Authority has asserted
that it is unlawful, for the Lender or its applicable lending office to make, maintain, issue or participate in, the Loan (or to
maintain any such obligation to make, issue or participate in the Loan), or to determine or charge interest rates based upon any
particular rate, then, on notice thereof by the Lender to the Borrower, any obligation of the Lender with respect to the activity
that is unlawful shall be suspended until the Lender notifies the Borrower that the circumstances giving rise to such determination
no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from the Lender, prepay or take any necessary steps
with respect to the Loan, in order to avoid the activity that is unlawful. Upon any such prepayment, the Borrower shall also pay
accrued interest on the amount so prepaid and any applicable breakage costs and amounts as a result of prepayment to the Lender.

 

     

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ARTICLE 8

EVENTS OF DEFAULT

 

Section 8.1     Events
of Default.

 

If
any of the following events occurs and is continuing and has not been cured, remedied or waived within three Business Days
following the occurrence of such event (each an “Event of Default”), provided that, for the avoidance of doubt,
such three Business Days shall only commence following the expiry of any grace, remedy or cure period contemplated in this Section 8.1:

 

		(a)	the Borrower fails to pay any amount of the Loan when such amount becomes due and payable;

 

		(b)	the Borrower fails to pay any interest or fees when they become due and payable and such failure
remains unremedied for a period of three Business Days;

 

		(c)	any representation or warranty or certification made or deemed to be made by the any Credit Party
or any of their respective directors or officers in any Loan Document shall prove to have been incorrect when made or deemed to
be made, and if the circumstances giving rise to the incorrect representation or warranty are capable of modification or rectification
(such that, thereafter the representation or warranty would be correct), the representation or warranty remains uncorrected for
a period of 15 days;

 

		(d)	any Credit Party fails to perform, observe or comply with any of the covenants contained in Section 6.2;

 

		(e)	any Credit Party fails to perform, observe or comply with any of the covenants contained in Section 6.1
and such failure remains unremedied for 15 days;

 

		(f)	any Credit Party fails to perform, observe or comply with any other term, covenant or agreement
contained in any Loan Document to which it is a party and such failure remains unremedied for 15 days;

 

		(g)	any Credit Party repudiates its obligations under any Loan Document or any material provision thereof,
or claims any of the Loan Documents or any material provision thereof to be invalid or withdrawn in whole or in part;

 

		(h)	any one or more of the Loan Documents or any material provision thereof ceases to be, or is determined
by a court of competent jurisdiction not to be, a legal, valid and binding obligation of any Credit Party which is a party thereto,
enforceable by the Lender against such Credit Party;

 

		(i)	any judgment or order for the payment of money in excess of US$15,000,000 (or the equivalent amount
in any other currency) is rendered against any Credit Party and either (i) enforcement proceedings have been commenced by
a creditor upon the judgment or order, or (ii) there is any period of 15 consecutive days during which a stay of enforcement
of the judgment or order, by reason of a pending appeal or otherwise, is not in effect;

 

		(j)	there is a Change of Control;

 

		(k)	any of the Credit Parties (i) becomes insolvent or generally not able to pay its debts as
they become due, (ii) admits in writing its inability to pay its debts generally or makes a general assignment for the benefit
of creditors, (iii) institutes or has instituted against it any proceeding seeking (x) to adjudicate it a bankrupt or
insolvent, (y) liquidation, winding up, administration, reorganization, arrangement, adjustment, protection, relief or composition
of it or its debts under any Applicable Law relating to bankruptcy, insolvency, reorganization or relief of debtors including any
proceeding under applicable corporate law seeking a compromise or arrangement of, or stay of proceedings to enforce, some or all
of the debts of such Person, or (z) the entry of an order for relief or the appointment of a receiver, receiver-manager, administrator,
custodian, monitor, trustee or other similar official for it or for any substantial part of its Assets, and in the case of any
such proceeding instituted against it (but not instituted by it), either the proceeding remains undismissed or unstayed for a period
of 30 days, such Person fails to diligently and actively oppose such proceeding, or any of the actions sought in such proceeding
(including the entry of an order for relief against it or the appointment of a receiver, receiver-manager, administrator, custodian,
monitor, trustee or other similar official for it or for any substantial part of its properties and assets) occurs, or (iv) takes
any corporate action to authorize any of the above actions; or

 

     

    - 20 -

    

 

		(l)	there has occurred an event or development that, in the sole opinion of the Lender, has had or
could reasonably be expected to have a Material Adverse Effect,

 

then the Lender may declare the Loan, all
accrued interest and Fees and all other amounts payable under this Agreement to be immediately due and payable, without presentment,
demand, protest or further notice of any kind, all of which are expressly waived by the Borrower.

 

Section 8.2     Remedies
Upon Default.

 

		(1)	Upon a declaration that the Loan is immediately due and payable pursuant to Section 8.1, the
Lender may commence such legal action or proceedings as it, in its sole discretion, deems expedient, including, the commencement
of enforcement proceedings under the Loan Documents all without any additional notice, presentation, demand, protest, notice of
dishonour, entering into of possession of any property or assets, or any other action or notice, all of which are expressly waived
by the Borrower.

 

		(2)	The rights and remedies of the Lender under the Loan Documents are cumulative and are in addition
to, and not in substitution for, any other rights or remedies. Nothing contained in the Loan Documents with respect to the indebtedness
or liability of the Borrower to the Lender, nor any act or omission of the Lender with respect to the Loan Documents shall in any
way prejudice or affect the rights, remedies and powers of the Lender under the Loan Documents.

 

Section 8.3     Right of
Set-off.

 

If an Event of Default
has occurred and is continuing, Lender and each of its Affiliates is hereby authorized at any time and from time to time to set
off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time
held and other obligations (in whatever currency) at any time owing by the Lender or any such Affiliate to or for the credit or
the account of the Credit Parties against any and all of the obligations of the Credit Parties now or hereafter existing under
this Agreement or any other Loan Document to the Lender, irrespective of whether or not the Lender has made any demand under this
Agreement or any other Loan Document and although such obligations of the Credit Parties may be contingent or unmatured. The rights
of each of the Lender and its Affiliates under this Section are in addition to other rights and remedies (including other
rights of set-off, consolidation of accounts and bankers’ lien) that the Lender or its Affiliates may have. The Lender may
notify the Borrower after any such set-off and application, but the failure to give such notice shall not affect the validity of
such set-off and application.

 

     

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ARTICLE 9

MISCELLANEOUS

 

Section 9.1     Amendments, etc.

 

No amendment or waiver
of any provision of any of the Loan Documents, nor consent to any departure by the Borrower or any other Person from such provisions,
shall be effective unless in writing and approved by the Lender. Any amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it was given.

 

Section 9.2     Waiver.

 

		(1)	No failure on the part of the Lender to exercise, and no delay in exercising, any right under any
of the Loan Documents shall operate as a waiver of such right; nor shall any single or partial exercise of any right under any
of the Loan Documents preclude any other or further exercise of such right or the exercise of any other right.

 

		(2)	Except as otherwise expressly provided in this Agreement, the covenants, representations and warranties
shall not merge on and shall survive the advance of the Loan and, notwithstanding such advance of the Loan or any investigation
made by or on behalf of any party, shall continue in full force and effect. The closing of this transaction shall not prejudice
any right of one party against any other party in respect of anything done or omitted under this Agreement or in respect of any
right to damages or other remedies.

 

Section 9.3     Evidence
of Debt.

 

The indebtedness of
the Borrower resulting from the advance of the Loan shall be evidenced by the records of the Lender which shall constitute prima
facie evidence of such indebtedness.

 

Section 9.4     Notices:
Effectiveness; Electronic Communication.

 

		(1)	Except in the case of notices and other communications expressly permitted to be given by telephone,
all notices and other communications provided for herein shall be in writing and shall be sent by personal delivery or courier
service, mailed by certified or registered mail, or sent by e-mail addressed:

 

		(a)	to a Credit Party at:

 

c/o Acreage Holdings, Inc.

450 Lexington Avenue, #3308

New York, NY 10163

USA

 

Attention:     Glen Leibowitz,
Chief Financial Officer

 

     

    - 22 -

    

 

Telephone:     [REDACTED
- PERSONAL INFORMATION]

E-mail:          [REDACTED - PERSONAL INFORMATION]

 

		(b)	to the Lender at:

 

[REDACTED - LENDER
NAME]

[REDACTED - PERSONAL INFORMATION]

 

Attention:     [REDACTED
- PERSONAL INFORMATION]

 

Telephone:     [REDACTED
- PERSONAL INFORMATION]

E-mail:          [REDACTED - PERSONAL INFORMATION]

 

		(2)	A notice is deemed to have been given and received (i) if sent by personal delivery or courier
service, or mailed by certified or registered mail, on the date of delivery if it is a Business Day and the delivery was made prior
to 4:00 p.m. (local time in place of receipt) and otherwise on the next Business Day or (ii) if sent by e-mail, on the
date sent if it is a Business Day prior to 4:00 p.m. (local time where the recipient is located) and otherwise on the next
Business Day.

 

		(3)	Any party hereto may change its address or e-mail address for notices and other communications
hereunder by notice to the other parties hereto.

 

Section 9.5     Expenses;
Indemnity; Damage Waiver.

 

		(1)	The Borrower shall pay (i) all reasonable expenses incurred by the Lender, including the fees,
charges and disbursements of counsel, in connection with the preparation, negotiation, execution, delivery and administration of
this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether
or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all reasonable expenses incurred by
the Lender, including the reasonable fees, charges and disbursements of counsel, in connection with the enforcement or protection
of their rights in connection with this Agreement and the other Loan Documents, including their rights under this Section 9.5,
or in connection with the Loan, including all such expenses incurred during any workout, restructuring or negotiations in respect
of the Loan.

 

		(2)	The Credit Parties shall indemnify the Lender and each Related Party of the Lender (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by
any Indemnitee or asserted against any Indemnitee by any third party or by any Credit Party arising out of, in connection with,
or as a result of (a) the execution, delivery or enforcement of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance or non-performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation or non-consummation of the transactions contemplated hereby or thereby, (b) the
Loan or the use or proposed use of the proceeds therefrom, or (c) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by a Credit Party and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not,
as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined
by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or wilful
misconduct of such Indemnitee.

 

		(3)	To the fullest extent permitted by Applicable Law, no Credit Party shall assert, and hereby waives,
any claim against any Indemnitee, on any theory of liability, for indirect, consequential, punitive, aggravated or exemplary damages
(as opposed to direct damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or
any agreement or instrument contemplated hereby (or any breach thereof), the transactions contemplated hereby or thereby, the advance
of the Loan or the use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

 

     

    - 23 -

    

 

		(4)	Without limiting the foregoing, the Borrower shall pay to the Lender on demand any amounts required
to compensate the Lender for any loss suffered or incurred by it as a result of (i) the failure of the Borrower to give any
notice in the manner and at the times required by this Agreement, (ii) the failure of the Borrower to effect the Loan in the
manner and at the time specified in this Agreement or to make a prepayment in the manner and at the time specified in this Agreement
with respect thereto, or (iii) the failure of the Borrower to make a payment in the manner and at the time specified in this
Agreement, including any loss or expense arising from the liquidation or deployment of funds obtained by it to maintain the Loan
or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative
fees charged by the Lender in connection with the foregoing.

 

		(5)	All amounts due under this Section 9.5 shall be payable promptly after demand therefor. A
certificate of the Lender setting forth the amount or amounts owing to the Lender or a sub-agent or Related Party, as the case
may be, as specified in this Section, including reasonable detail of the basis of calculation of the amount or amounts, and delivered
to the Borrower shall be conclusive absent manifest error.

 

		(6)	The provisions of this Section 9.5 shall survive the termination of this Agreement and the
repayment of the Obligations. To the extent required by law to give full effect to the rights of the Indemnitees under this Section 9.5,
the parties hereto agree and acknowledge that the Lender is acting as agent for its respective Related Parties and agrees to hold
and enforce such rights on behalf of such Related Parties as they may direct. Each of the Credit Parties acknowledge that neither
its obligation to indemnify nor any actual indemnification by it of the Lenders or any other Indemnitee in respect of such Person’s
losses for legal fees and expenses shall in any way affect the confidentiality or privilege relating to any information communicated
by such Person to its counsel.

 

Section 9.6     Successors
and Assigns.

 

		(1)	The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of the Lender.

 

		(2)	The Lender may assign all or any part of its interest in the Loan to (i) an Approved Fund,
(ii) any Affiliate of the Lender, (iii) any limited partner of the Lender, (iv) any limited partner of an Affiliate
of the Lender, or (v) with the prior written consent of the Borrower, one or more Persons (each an “Assignee”).
At any time after the occurrence of an Event of Default, the Lender may assign all or any part of its interest in the Loan to an
Assignee without any requirement for notice to, or consent of, the Borrower or any other Person. Upon an assignment, the Assignee
shall have the same rights and benefits and be subject to the same limitations under the Loan Documents as it would have if it
was the Lender.

 

		(3)	The Borrower shall provide such certificates, acknowledgments and further assurances in respect
of this Agreement and the Loan as the Lender may reasonably require in connection with any assignment, pursuant to this
Section 9.6.

 

		(4)	In the case of an assignment, the Lender shall deliver to the Borrower and the Borrower shall execute
an assignment and assumption agreement pursuant to which the Assignee assumes the obligations of the Lender and agrees to be bound
by all the terms and conditions of this Agreement, all as if the Assignee had been an original party. Upon receipt by the Lender
of the assignment and assumption agreement, the assigning Lender and the Borrower shall be released from their respective obligations
under this Agreement (to the extent of such assignment and assumption) and shall have no liability or obligations to each other
to such extent, except in respect of matters arising prior to the assignment.

 

     

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		(5)	Any assignment pursuant to this Section 9.6 will not constitute a repayment by the Borrower
to the assigning or granting Lender of the Loan nor a new loan to the Borrower by the Lender or by the Assignee and the parties
acknowledge that the Borrower’s obligations with respect to the Loan will continue and will not constitute new obligations.

 

		(6)	The Lender may at any time pledge or assign a security interest in all or any portion of its rights
under the Credit Documents to secure obligations of the Lender, but no such pledge or assignment shall release the Lender from
any of its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party hereto or thereto.

 

Section 9.7     Judgment
Currency.

 

		(1)	If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due to
the Lender in any currency (the “Original Currency”) into another currency (the “Other Currency”),
the parties agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which,
in accordance with normal banking procedures, the Lender could purchase the Original Currency with the Other Currency on the Business
Day preceding the day on which final judgment is given or, if permitted by Applicable Law, on the day on which the judgment is
paid or satisfied.

 

		(2)	The obligations of the Borrower in respect of any sum due in the Original Currency from it to the
Lender under any of the Loan Documents shall, notwithstanding any judgment in any Other Currency, be discharged only to the extent
that on the Business Day following receipt by the Lender of any sum adjudged to be so due in the Other Currency, the Lender may,
in accordance with normal banking procedures, purchase the Original Currency with such Other Currency. If the amount of the Original
Currency so purchased is less than the sum originally due to the Lender in the Original Currency, the Borrower agrees, as a separate
obligation and notwithstanding the judgment, to indemnify the Lender, against any loss, and, if the amount of the Original Currency
so purchased exceeds the sum originally due to the Lender in the Original Currency, the Lender shall remit such excess to the Borrower.

 

Section 9.8     Interest
on Amounts.

 

Without duplication
of any amounts contemplated in Section 2.2(3) and except as may be expressly provided otherwise in this Agreement, all
amounts owed by the Borrower to the Lender, which are not paid when due (whether at stated maturity, on demand, by acceleration
or otherwise) shall bear interest (both before and after default and judgment), from the date on which such amount is due until
such amount is paid in full, payable on demand, at the Loan Rate, calculated daily and compounded monthly.

 

Section 9.9     Governing
Law: Jurisdiction: Etc.

 

		(1)	This Agreement shall be governed by, and construed in accordance with, the laws of the Province
of Alberta and the laws of Canada applicable in that Province.

 

		(2)	Each Credit Party irrevocably and unconditionally submits to the non-exclusive jurisdiction of
the courts of the Province of Alberta, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties
hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined
in such court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement
or in any other Loan Document shall affect any right that the Lender may otherwise have to bring any action or proceeding relating
to this Agreement or any other Loan Document against any Credit Party in the courts of any jurisdiction.

 

     

    - 25 -

    

 

		(3)	Each Credit Party irrevocably consents to the service of any and all process in any such action
or proceeding to such Credit Party at the address provided for it in Section 9.4. Nothing in this Section 9.9(3) limits
the right of the Lender to serve process in any other manner permitted by Applicable Law.

 

		(4)	Each Credit Party irrevocably and unconditionally waives, to the fullest extent permitted by Applicable
Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating
to this Agreement or any other Loan Document in any court referred to in Section 9.9(2). Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

 

Section 9.10     Entire
Agreement.

 

This Agreement together
with the other Loan Documents constitutes the whole and entire agreement between the parties and cancels and supersedes any prior
agreements, undertakings, declarations and representations, written or verbal, in respect of the subject matter of this Agreement
and the other Loan Documents, and any other written agreements that are expressly stated to survive the effectiveness of this Agreement.

 

Section 9.11     Waiver
of Jury Trial.

 

Each party hereto hereby
irrevocably waives, to the fullest extent permitted by Applicable Law, any right it may have to a trial by jury in any legal proceeding
directly or indirectly arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated
hereby or thereby (whether based on contract, tort or any other theory). Each party hereto (a) certifies that no representative,
agent or attorney of any other Person has represented, expressly or otherwise, that such other Person would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced
to enter into this Agreement and the other Loan Documents by, among other things, the mutual waivers and certifications in this
Section.

 

Section 9.12     Counterparts:
Integration: Effectiveness: Electronic Execution.

 

		(1)	This Agreement may be executed in any number of counterparts, each of which is deemed to be an
original, and such counterparts together constitute one and the same instrument. Transmission of an executed signature page by
facsimile, email or other electronic means is as effective as a manually executed counterpart of this Agreement. This Agreement
and the other Loan Documents and any separate letter agreements with respect to fees payable to the Lender constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. This Agreement shall become effective when it has been executed by the
Lender and when the Lender has received counterparts hereof that, when taken together, bear the signatures of each of the other
parties hereto.

 

		(2)	The words “execution,” “signed,” “signature”
and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of
a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including Parts
2 and 3 of the Personal Information Protection and Electronic Documents Act (Canada), the Electronic Transactions Act
(Alberta) and other similar federal or provincial laws based on the Uniform Electronic Commerce Act of the Uniform Law Conference
of Canada or its Uniform Electronic Evidence Act, as the case may be.

 

     

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Section 9.13     Treatment
of Certain Information: Confidentiality.

 

		(1)	The Lender agrees, and each of the Credit Parties agree, to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to it, its Affiliates and its and its Affiliates’
respective partners, directors, officers, employees, managers, administrators, trustees, agents, auditors, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information
and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting
to have jurisdiction over it (including any self-regulatory authority), (c) to the extent required by Applicable Laws or regulations
or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any
remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document
or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section 9.13 to (i) any assignee of, or any prospective assignee of, any of its rights or obligations
under this Agreement or (ii) any actual or prospective party (or its partners, directors, officers, employees, managers, administrators,
trustees, agents, advisors or other representatives) to any swap, derivative, credit-linked note or similar transaction under which
payments are to be made by reference to the Credit Parties and its obligations, this Agreement or payments hereunder, or the advisors
of the Persons referred to in (i) and (ii), (g) with the consent of the Credit Party or (h) to the extent such Information
(x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the
Lender on a non-confidential basis.

 

		(2)	For purposes of this Section, “Information” means: (a) with respect to
the Lender, all information received in connection with this Agreement from the Credit Parties relating to the Credit Parties or
any of their respective businesses, other than any such information that is available to the Lender on a non-confidential basis
prior to such receipt; and (b) with respect to the Credit Parties, all information contained in this Agreement and all other
Loan Documents and all information received from the Lender, including the identity of Affiliates and its and its Affiliates’
respective partners, directors, officers, employees, managers, administrators, trustees, agents, auditors, advisors and representatives.
Any Person required to maintain the confidentiality of Information as provided in this Section 9.13 shall be considered to
have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality
of such Information as such Person would accord to its own confidential information. In addition, the Lender may disclose to any
agency or organization that assigns standard identification numbers to loan facilities such basic information describing the facilities
provided hereunder as is necessary to assign unique identifiers (and, if requested, supply a copy of this Agreement), it being
understood that the Person to whom such disclosure is made will be informed of the confidential nature of such Information and
instructed to make available to the public only such Information as such person normally makes available in the course of its business
of assigning identification numbers.

 

		(3)	The Credit Parties agree to provide the Lender with the opportunity to review and comment on any
press release in respect of any matter contemplated in any Loan Document. In respect of any Loan Document or other document to
be filed on SEDAR (or on any other public filing repository), the Credit Parties agree to redact the names of all parties other
than the Lender and the names of any partners, directors, officers, employees, managers, administrators, trustees, agents, auditors,
advisors and representatives of the Lender and their respective Affiliates, the foregoing obligations of the Credit Parties all
subject to applicable securities laws in the relevant jurisdiction in which the public filings are to be made.

 

     

    - 27 -

    

 

Section 9.14     Severability.

 

If any court of competent
jurisdiction from which no appeal exists or is taken, determines any provision of this Agreement to be illegal, invalid or unenforceable,
that provision will be severed from this Agreement and the remaining provisions will remain in full force and effect.

 

Section 9.15     Time of
the Essence.

 

Time is of the essence in this
Agreement.

 

Section 9.16     No Fiduciary
Duty.

 

The Lender and its
Affiliates (collectively, solely for purposes of this Section 9.16, the “Lenders”), may have economic interests
that conflict with those of the Borrower, its shareholders and its Affiliates. The Borrower agrees that nothing in the Loan Documents
will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on
the one hand, and the Borrower, its shareholders or its Affiliates, on the other hand. The Borrower acknowledges and agrees that
(a) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder)
are arm’s-length commercial transactions between the Lenders, on the one hand, and the Borrower, on the other hand, and (b) in
connection therewith and with the process leading thereto, (i) no Lender has assumed an advisory or fiduciary responsibility
in favour of the Borrower, its shareholders or its Affiliates with respect to the transactions contemplated hereby (or the exercise
of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is
currently advising or will advise the Borrower, its shareholders or its Affiliates on other matters) or any other obligation to
the Borrower except the obligations expressly set forth in the Loan Documents and (ii) each Lender is acting solely as principal
and not as the agent or fiduciary of the Borrower, its management, shareholders, creditors or any other person. The Borrower acknowledges
and agrees that the Borrower has consulted its own legal and financial advisors to the extent it deemed appropriate and that it
is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. The Borrower
agrees that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar
duty to the Borrower, in connection with such transactions or the process leading thereto.

 

[Remainder of page left intentionally
blank]

 

     

     

    

 

IN
WITNESS WHEREOF the parties have executed this Loan Agreement.

 

	 	HSCP CN HOLDINGS II ULC, as Borrower
	 	 
	 	By:	“Robert Daino”
	 	 	Name: Robert Daino

Title: President
	 	 	 
	 	 	 
	 	HIGH STREET CAPITAL PARTNERS, LLC, BY ITS SOLE MANAGER, ACREAGE HOLDINGS AMERICA, INC., as Guarantor
	 	 
	 	By:	“Kevin Murphy”
	 	 	Name: Kevin Murphy

Title: President
	 	 	 
	 	 	 
	 	[REDACTED - LENDER NAME], as Lender
	 	 
	 	By:	“[Redacted]”
	 	 	Name: [REDACTED - PERSONAL INFORMATION]

Title: [REDACTED - PERSONAL INFORMATION]

 

Credit Agreementllexq-ex101_6.htm

Exhibit 10.1

FIFTH AMENDMENT TO SENIOR SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION CREDIT AGREEMENT

 

This FIFTH AMENDMENT TO SENIOR SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this “Agreement”) dated as of September 30, 2020, is among Lilis Energy Inc., a Nevada corporation (the “Borrower”), certain Subsidiaries of the Borrower (the “Guarantors”), BMO Harris Bank N.A. (“BMO”), as Administrative Agent for the Lenders, and the other Lenders from time to time party hereto.

Recitals

	
A.
	
WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent are parties to that certain Senior Secured Super-Priority Debtor-In-Possession Credit Agreement dated as of June 30, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

	
B.
	
WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders constituting the Majority Lenders enter into this Amendment to, among other things, grant an extension of certain Chapter 11 Milestones as further set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Agreement, shall have the meaning ascribed to such term in the Credit Agreement. 

Section 2Amendments.  Subject to the occurrence of the Effective Date, the following amendments to the Credit Agreement shall be made:

2.1Amendments to Section 8.23. 

(a)Section 8.23(g) of the Credit Agreement is hereby amended by replacing the phrase “October 2, 2020 with the phrase “October 7, 2020”.

(b)Section 8.23(h) of the Credit Agreement is hereby amended by replacing the phrase “October 13, 2020” with the phrase “October 16, 2020”.

Section 3Conditions Precedent to Effective Date.  This Agreement shall become effective on the date (such date, the “Effective Date”) when each of the following conditions is satisfied (or waived) in accordance with the terms herein: 

3.1The Administrative Agent shall have received from the Borrower, each Guarantor, and Lenders constituting the Majority Lenders, counterparts of this Agreement signed on behalf of such Persons.

3.2As of the Effective Date, after giving effect to this Agreement, (a) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document shall be true and correct in all material respects (unless already qualified by materiality in which case such 

 

 

applicable representation and warranty shall be true and correct), except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) as of such earlier date and (b) no Default or Event of Default shall have occurred and be continuing.

Each party hereto hereby authorizes and directs the Administrative Agent to declare this Agreement to be effective (and the Effective Date shall occur) when it has received documents confirming or certifying, to the reasonable satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.

Section 4Miscellaneous.

4.1Limitation of Waivers. Nothing contained in this Agreement shall directly or indirectly in any way whatsoever, except as set forth herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument.

4.2Confirmation.  The provisions of the Credit Agreement and each Loan Document shall remain in full force and effect following the Effective Date.

4.3Ratification and Affirmation; Representations and Warranties.  Each of the Guarantors and the Borrower certifies to the Lenders, on the Effective Date, as applicable, that, after giving effect to this Agreement and the amendments and transactions occurring on the Effective Date, (a) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty are true and correct), except to the extent such representations and warranties expressly relate to an earlier date, in which case they are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty are true and correct) as of such earlier date and (b) no Default or Event of Default has occurred and is continuing.   

4.4Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any  document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that nothing herein shall require the Administrative Agent to accept electronic signatures in any form or format without its prior written consent.  Without limiting the generality of the foregoing, the Borrower hereby (i) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders and the Borrower and its Subsidiaries, electronic images of this Agreement or any other Loan Documents (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity 

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or enforceability of the Loan Documents based solely on the lack of paper original copies of any Loan Documents, including with respect to any signature pages thereto.

4.5No Oral Agreement.  This Agreement, the Credit Agreement, the other Loan Documents and any separate letter agreement with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreement and understandings, oral or written, relating to the subject matter hereof and thereof. THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENT OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

4.6GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

4.7WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

4.8Severability.  Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof, and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

4.9Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns in accordance with Section 12.04 of the Credit Agreement.

4.10Loan Documents.  This Agreement is a Loan Document.

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the Effective Date.

		
	
 

BORROWER:
	
 

LILIS ENERGY, INC.

	
 
	
 

	
 
	
 

	
 
	
By:/s/ Joseph C. Daches

	
 
	
Name:Joseph C. Daches 

	
 
	
Title:Chief Executive Officer, President and Chief Financial Officer 

	
 

GUARANTORS:
	
 

BRUSHY RESOURCES, INC.

	
 
	
HURRICANE RESOURCES LLC

	
 
	
IMPETRO OPERATING LLC

	
 
	
LILIS OPERATING COMPANY, LLC

	
 
	
IMPETRO RESOURCES, LLC

	
 
	
 

	
 
	
 

	
 
	
Each By: /s/ Joseph C. Daches

	
 
	
Name:Joseph C. Daches

	
 
	
Title:Chief Executive Officer, President and Chief Financial Officer

 

 

	
ADMINISTRATIVE AGENT:
	
BMO HARRIS BANK N.A., 
as Administrative Agent, and a Lender

 

By:/s/ Melissa Guzmann___________
Name:Melissa Guzmann
Title:Director

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LENDERS:
	
CAPITAL ONE, NATIONAL ASSOCIATION,
as a Lender

By:/s/ Michael P. Robinson___________________
Name:Michael P. Robinson
Title:Vice President

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

By:/s/ Megan Kane_____________________
Name:Megan Kane
Title:Authorized Signatory

By:/s/ Didier Siffer____________________
Name:Didier Siffer
Title:Authorized Signatory

 

 

 

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