# EDGAR Filing Document

**Accession Number:** 0001441082
**File Stem:** 0001477932-23-001355
**Filing Date:** 2023-3
**Character Count:** 234506
**Document Hash:** 0e7859698375df8d80949b166e94c475
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-23-001355.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001477932-23-001355

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 22

**CONFORMED PERIOD OF REPORT**: 20230303

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Healing Co Inc.
- **CENTRAL INDEX KEY:** 0001441082
- **STANDARD INDUSTRIAL CLASSIFICATION:** METAL MINING [1000]
- **IRS NUMBER:** 262862618
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-152805
- **FILM NUMBER:** 23713694

**BUSINESS ADDRESS:**
- **STREET 1:** 11TH FLOOR, TEN GRAND STREET,
- **CITY:** BROOKLYN
- **STATE:** NY
- **ZIP:** 11249
- **BUSINESS PHONE:** 866-241-0670

**MAIL ADDRESS:**
- **STREET 1:** 11TH FLOOR, TEN GRAND STREET,
- **CITY:** BROOKLYN
- **STATE:** NY
- **ZIP:** 11249

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Lake Forest Minerals Inc.
- **DATE OF NAME CHANGE:** 20080725

?xml version="1.0" encoding="utf-8"?thcc_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **March 7, 2023 (March 3, 2023)**

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| |
|:---|
| **THE HEALING COMPANY, INC.** |
| (Exact name of registrant as specified in its charter) |

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| | | |
|:---|:---|:---|
| **Nevada** | **333-152805** | **26-2862618** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |

---

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| | |
|:---|:---|
| **11th Floor, Ten Grand Street, Brooklyn, New York** | **11249** |
| (Address of principal executive offices) | (Zip Code) |

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<u>**+1 866-241-0670**</u>

(Registrant's telephone number, including area code)

_______________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| N/A |  |  |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01 Entry into a Material Definitive Agreement.**

On March 3, 2023, The Healing Company Inc., a Nevada corporation (the "Company"), and Chopra HLCO LLC, a Delaware limited liability company and indirect wholly owned subsidiary of the Company ("Chopra HLCO" and with the Company, "Buyer"), simultaneously (i) entered into an Asset Purchase Agreement (the "Purchase Agreement") with Chopra Global, LLC, a Delaware limited liability company ("Seller"), and solely with respect to certain specified indemnification provisions of the Purchase Agreement, Deepak Chopra, the majority member of Seller, to acquire (the "Acquisition") certain assets of Seller (the "Purchased Assets") and certain liabilities related to Seller's business activities involving the Chopra Global Digital, Chopra Global Licensing and Chopra Global Products assets (these business activities are referred to herein as the "Chopra Business") and (ii) closed the Acquisition (the "Closing"). Following the Closing, the Purchased Assets are being held by, and the Chopra Business is being operated through, Chopra HLCO.

The consideration paid and payable by Buyer for the Purchased Assets is an aggregate purchase price (the "Purchase Price") of up to Five Million Dollars ($5,000,000) in cash plus newly issued shares of the Company's common stock, par value $0.001 per share (the "Common Stock"). One Million Dollars ($1,000,000) of the cash portion of the Purchase Price was paid to Seller on March 3, 2023, along with the issuance to Seller of One Million Four Hundred Thousand (1,400,000) shares (the "Closing Shares") of the Common Stock. A deferred cash payment of Two Million Five Hundred Thousand Dollars ($2,500,000) will be paid to Seller on March 31, 2023 (the "Deferred Cash Payment"). Additionally, up to three (3) earnout payments of One Million Dollars ($1,000,000) in value each (the "Earnout Payments") may be paid to Seller, subject to and payable in accordance with earnout thresholds specified in the Purchase Agreement. Each of these Earnout Payments will be comprised of fifty percent (50%) in cash and fifty percent (50%) in shares of the Common Stock (the "Earnout Shares"). The Earnout Payments will be earned (i) for the period starting March 1, 2023 and ending December 31, 2023 if net revenue of the Chopra Business (then operated by Buyer) exceeds Five Million Nine Hundred Thousand Dollars $5,900,000; (ii) for the calendar year ending December 31, 2024 if such net revenue exceeds $11,000,000; and (iii) for the calendar year ending December 31, 2025 if such net revenue exceeds $15,000,000. The Earnout Shares will be valued at the market price at the time of issuance based on the five-day volume weighted average price of the Common Stock prior to the last day of the applicable measurement year. If the Company is taken private or undergoes a Change of Control (as defined in the Asset Purchase Agreement), any subsequent Earnout Payment will be paid 100% in cash.

The Closing Shares are restricted securities and do not carry any registration rights that require or permit the filing of any registration statement in connection with their issuance. In accordance with the terms of a lock up/leak out agreement between the Company and Chopra Global effective as of the Closing (the "Lock Up/Leak Out Agreement"), the Closing Shares are subject to a three-year lock-up (unless released earlier as described below) from the date of the Closing (the "Lock Up") and thereafter may be released in four equal quarterly installments beginning on the first day of the fiscal quarter beginning after the third anniversary of the Closing and on the first day of each of the next three fiscal quarters (the "Leak Out") subject to a restricted volume of no more than three percent (3%) of the volume-weighted average trading of the Common Stock over the previous five trading days. The Closing Shares will be released from the Lock Up, but not from the Leak Out, upon (a) the closing of an underwritten, firm commitment public offering of at least $30,000,000 of the Common Stock, (b) a Change of Control or (c) the Company's termination of reporting under the Securities Exchange Act of 1934, as amended.

The Earnout Shares will be restricted securities, will not carry any registration rights that require or permit the filing of any registration statement in connection with their issuance and will not be subject to a lock-up but will be subject to one-year regulatory hold periods. Thereafter, in accordance with the terms of the Lock Up/Leak Out Agreement, the Earnout Shares may be sold in the public market at a restricted rate of no more than fifty percent (50%) of the Earnout Shares per calendar quarter following the period with respect to which such Earnout Shares relate, and at a restricted volume of no more than three percent (3%) of the volume-weighted average trading of the Common Stock over the previous five trading days.

As contemplated by the Purchase Agreement, pursuant to the terms and conditions of a license agreement between Buyer and Seller executed and effective as of the Closing (the "License Agreement"), Buyer will pay Seller a royalty fee in an amount equal to five percent (5%) of Net Revenue (as defined in the Purchase Agreement) in consideration for Seller granting Buyer a limited, worldwide, irrevocable (except as set forth in the License Agreement), license, in the field of use set forth in the License Agreement, in and to certain intellectual property of Seller covered under the License Agreement relating to the Chopra Business (the "Seller Licensed Property").

Under the terms of the Purchase Agreement, as of the Closing, the Buyer and Seller also entered into an assignment and assumption agreement to effect the transfer of the Purchased Assets, as well as a transition services agreement in connection with Buyer and Seller providing interim services to each other after the Closing.

The Purchase Agreement contains customary representations, warranties and covenants of Buyer and Seller.

The Purchase Agreement also contains mutual indemnification provisions relating to breaches of representations, warranties, covenants, agreements, or obligations contained in the Purchase Agreement. In the case of indemnification provided with respect to breaches of representations and warranties, the indemnifying party will only become liable for indemnified losses if the amount exceeds an aggregate of $50,000, in which case such party will be liable for all losses relating back to the first dollar. The survival period for representations and warranties contained in the Purchase Agreement is twenty-four (24) months, except for representations and warranties deemed fundamental ("Fundamental Representations"), which will continue in full force and effect pursuant to applicable statute of limitations, and for certain indemnification obligations of Buyer that will survive during the term of the License Agreement and, after its termination, the applicable statute of limitations. Seller will have no liability under the indemnification provisions of the Purchase Agreement to the Buyer or any Buyer indemnitee in excess of Eight Hundred Twenty-Five Thousand Dollars ($825,000), except for (a) Fundamental Representations, which liability in the aggregate will not exceed the portion of the Purchase Price actually received by Seller, and (b) claims and losses arising out of common law fraud or criminal activity.

The Closing was subject to customary closing conditions, including, without limitation, the completion of due diligence investigations; the receipt of required consents by certain third parties; and the release of certain security interests.

The Purchase Agreement may be terminated by Seller if Buyer fails to timely pay the Deferred Cash Payment in full. In such event, (a) the Purchased Assets and assumed liabilities will immediately revert and be returned to Seller; (b) the Initial Cash Payment will remain with Seller; (c) the Closing Shares will immediately revert and be returned to Buyer; and (d) Buyer will cease, and Seller may resume, conducting the Chopra Business.

The preceding summary does not purport to be complete and is qualified in its entirety by reference to the Purchase Agreement, as well as the other agreements described herein, attached as exhibits hereto and incorporated by reference herein.

**Item 2.01 Completion of Acquisition or Disposition of Assets**.

The information provided in Item 1.01 above is incorporated into this Item 2.01 by reference.

**Item 7.01 Regulation FD Disclosure.**

On March 7, 2023, the Company issued a press release announcing the acquisition of the Chopra Business. A copy of the press release is attached to this report as Exhibit 99.1.

The information set forth under Item 7.01 of this Current Report on Form 8-K ("Current Report"), including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section. The information in Item 7.01 of this Current Report, including Exhibit 99.1, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing, except as expressly set forth by specific reference in such a filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits

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| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| [2.1](thcc_ex21.htm) | [Asset Purchase Agreement, dated as of March 3, 2023, by and among the Company, Chopra HLCO and Chopra Global, LLC, and solely with respect to indemnification provisions, Deepak Chopra.](thcc_ex21.htm) |
| [10.1](thcc_ex101.htm) | [Lock Up/Leak Out Agreement, dated as of March 3, 2023, by and between the Company and Chopra Global, LLC.](thcc_ex101.htm) |
| [10.2](thcc_ex102.htm) | [License Agreement, effective as of March 3, 2023, by and among the Company, Chopra HLCO and Chopra Global, LLC.](thcc_ex102.htm) |
| [10.3](thcc_ex103.htm) | [Assignment and Assumption Agreement, effective as of March 3, 2023, by and among the Company, Chopra HLCO and Chopra Global, LLC.](thcc_ex103.htm) |
| [10.4](thcc_ex104.htm) | [Bill of Sale, dated as of March 3, 2023, of Chopra Global, LLC.](thcc_ex104.htm) |
| [99.1](thcc_ex991.htm) | [Press Release dated March 7, 2023 announcing the acquisition of the Chopra Business.](thcc_ex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **THE HEALING COMPANY INC.** | **THE HEALING COMPANY INC.** |
| Date: March 7, 2023 | By: | */s/ Simon Belsham* |
|  |  | Name: Simon Belsham |
|  |  | Title: Chief Executive Officer |

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## Exhibit 2.1

**EXHIBIIT 2.1**

**ASSET PURCHASE AGREEMENT**

This ASSET PURCHASE AGREEMENT (this "**Agreement**"), dated as of March 3, 2023 ("**Effective Date**"), is entered into by and among **THE HEALING COMPANY INC.**, a Nevada corporation ("**HLCO**"), Chopra HLCO, LLC, a Delaware limited liability company and indirect wholly owned subsidiary of HLCO in which the to be acquired Business (as defined below) will be held and operated (together with HLCO, the "**Buyer**"), Chopra Global, LLC, a Delaware limited liability company ("**Seller**"), and solely with respect to certain specified indemnification provisions of Article VI (as set forth in Article VI), Deepak Chopra, the majority member of Seller (the "**Majority Member**").

**RECITALS**

A. Seller is a modern healthcare company positioned at the intersection of science and spirituality that, among other activities, operates the "**Business**" which, as defined in the attached <u>Exhibit II</u>, encompasses Chopra Global Digital, Chopra Global Licensing and Chopra Global Products (each as defined in the attached <u>Exhibit II</u>).

B. Subject to and upon the terms and conditions set forth in this Agreement, Seller wishes to sell, assign, transfer, convey and deliver to Buyer, and Buyer desires to purchase, acquire and accept from Seller, free and clear of all liens and liabilities of any kind (other than Assumed Liabilities and restrictions set forth in this Agreement and the encumbrances set forth in the Disclosure Schedules), all of Seller's right, title, and interest in and to the Purchased Assets (as defined below), which are owned by Seller and are used in connection with the Business.

C. For purposes of clarity, Buyer acknowledges and agrees that Seller is engaged in other businesses related to, but not included in, the Business and owns and or uses other assets not included in the Purchased Assets, and that Buyer will not acquire any right, title or interest in or to such other businesses or assets.

**AGREEMENT**

NOW, THEREFORE, in consideration of the mutual promises herein contained, and other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the parties, intending to be legally bound, hereby agree as follows:

**<u>ARTICLE 1</u>** 

**SALE OF ASSETS AND ASSUMPTION OF LIABILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Sale of Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchased Assets</u>. At the Closing (as defined below), Seller shall sell, assign, transfer, convey and deliver to Buyer and Buyer shall accept and purchase all of Seller's right, title and interest in and to all of the assets listed in the **Schedule of Purchased** Assets attached hereto and labeled **Schedule 1.1(a)** ("**Purchased Assets**"), and all of the properties, rights, interests, claims and goodwill of Seller, tangible and intangible, of every kind and description, as the same shall exist as of the Closing Date (as defined below), relating to the Purchased Assets. The Purchased Assets include the Assumed Contracts. "**Assumed Contracts**" means the contracts used in conducting the Business which are set forth in **Schedule 1.1(a)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Excluded Assets</u>. "**Excluded Assets**" means any and all assets relating to the Business which are not specifically included in the Purchased Assets and those assets of Seller which are not related to the Business. By way of example only, and not limitation, the Excluded Assets include, without limitation, the items set forth in the attached **Schedule 1.1(b)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restrictions Prior to Receipt of the Deferred Cash Payment</u>. Until Seller confirms receipt of the Deferred Cash Payment (as defined below), Buyer shall not enter into any new agreements, amend any current agreements, incur any additional obligations, or assign, license or otherwise transfer any of Buyer's rights or obligations relating to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Assumption of Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Assumed Liabilities</u>. As of the Closing Date, Buyer shall undertake, assume, and agree to perform, and otherwise pay, satisfy and discharge (i) only such accrued liabilities as specifically set forth on **Schedule 1.2(a)**, (ii) those obligations, duties and liabilities with respect to the Assumed Contracts, licenses and other arrangements included in the Purchased Assets, and (iii) all obligations, duties and liabilities relating to the Business and the Purchased Assets to the extent arising on or after the Closing Date (collectively, the "**Assumed Liabilities**"); provided, however, that the Assumed Liabilities shall include no other liability of Seller of any kind or nature whatsoever and shall not include any Excluded Liabilities (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Excluded Liabilities</u>. Other than the Assumed Liabilities, all liabilities, liens and other obligations of Seller, including, solely to the extent arising prior to the Closing Date, those relating to the Business or the Purchased Assets (collectively, the "**Excluded Liabilities**"), shall remain the sole responsibility of and shall be retained, fully paid, fully performed and fully discharged solely by Seller. Excluded Liabilities shall include, without limitation: any debts, liabilities or obligations not specifically listed in **Schedule 1.2(a)** hereof, including (i) any liability of Seller with respect to any indebtedness for borrowed money, (ii) any liability of Seller arising out of any threatened or pending litigation or other claim to the extent arising from the Business or Purchased Assets prior to the Closing, provided that the claim does not arise from an act or omission occurring on or after the Closing Date, (iii) any liabilities of Seller to the members of Seller ("**Members**") or any affiliates of a current or former Member, or other equity owners of Seller, (iv) except as itemized on **Schedule 1.2(a)** or relating to employees or independent contractors hired or otherwise engaged by Buyer for periods after the Closing Date, any liability, whether arising by operation of law, contract, past custom or otherwise, for unemployment compensation benefits, pension benefits, salaries, wages, bonuses, incentive compensation, sick leave, severance or termination pay, vacation and other forms of compensation or any other form of employee benefit plan (including the health benefits payable reflected on Seller's balance sheet), agreement (including employment agreements), arrangement or commitment payable to or for the benefit of any current or former officers, directors and other employees and independent contractors of Seller, (v) any liability for costs and expenses of Seller in connection with negotiating, documenting and/or closing this Agreement or any transactions contemplated hereby, (vi) any negative cash or book balances or any intercompany debt by and between, or by and among, Seller and any affiliate of Seller and (vii) any environmental liability arising out of or relating to the operation of the Business prior to the Closing or Seller's leasing, ownership or operation of real property. All Excluded Liabilities shall be the responsibility of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Closing</u>. The consummation of the transactions contemplated by this Agreement (collectively, the "**Closing**") will take place through the exchange of signature pages through electronic mail or otherwise on the second business day following the satisfaction or waiver of all conditions to the obligations of the parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the respective parties will take at the Closing itself), or such other date and time as the parties may mutually determine in writing. The date and time of the Closing are referred to as the "**Closing Date**." The parties will use their best efforts to conclude a Closing on or before March 3, 2023, which date may be changed subject to all parties' written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In consideration for the sale, assignment, and delivery of the Purchased Assets and assumption of the Assumed Liabilities, Buyer shall pay the aggregate purchase price (the "**Purchase Price**") of up to $5,000,000 in cash *plus* One Million Four Hundred Thousand (1,400,000) shares of HLCO common stock, payable in accordance with **Section 1.4(b)(iii)** below, and up to an additional $1,500,000 in shares of HLCO common stock, payable in accordance with **Section 1.5(d)** below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Purchase Price, exclusive of the Earnout Payments set forth in **Section 1.5**, shall be comprised of and be payable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Initial Cash Payment at Signing.</u> Promptly following the signing of this Agreement by all parties, but in no event later than two (2) business days thereafter, Buyer shall pay to Seller One Million Dollars ($1,000,000) in immediately available funds (the "**Initial Cash Payment**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Deferred Cash Payment</u>. On March 31, 2023 (the "**Deferred Cash Payment Date**"), Buyer shall pay to Seller an additional Two Million Five Hundred Thousand Dollars ($2,500,000) in immediately available funds (the "**Deferred Cash Payment**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Equity Payment</u>. At the Closing, Buyer shall issue to Seller One Million Four Hundred Thousand (1,400,000) shares of HLCO common stock (the "**Buyer Shares**"), subject to the terms of a lock up leak out agreement, the form of which is attached as <u>Exhibit I</u> ("**Lock Up/Leak Out Agreement**"). The Buyer Shares will be issued according to applicable regulatory and compliance requirements, will be restricted securities (as defined in Rule 144) and will not carry any registration rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Failure to timely Pay</u>. If Buyer fails to timely pay Seller all of the Deferred Cash Payment, then Seller may terminate this Agreement. If Seller terminates this Agreement in connection with a failure by Buyer to timely pay the Deferred Cash Payment, then, in addition to the Agreement being terminated (i) the Purchased Assets and Assumed Liabilities shall immediately revert and be returned to Seller; (ii) the Initial Cash Payment of the Purchase Price shall remain with Seller; (iii) all of the Buyer Shares shall immediately revert and be returned to Buyer; and (iv) Buyer shall cease conducting the Business, and Seller may resume conducting the Business. The Deferred Cash Payment Date may only be extended by the written agreement of Seller. This subsection shall survive the termination of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Distribution of Buyer Shares</u>. Except as otherwise provided in the Lock Up/Leak Out Agreement, Seller may distribute the Buyer Shares to the Members, or the equity holders of such Members (in either case, the "**Distributees**"), pursuant to an allocation to be provided to Buyer prior to any such distribution; provided, however, that (i) such distribution shall only be made by Seller in compliance with the applicable requirements of the Securities Act of 1933, as amended (the "**Securities Act**"), (ii) Seller shall have delivered to Buyer signed representations from the Distributees in substantially the form set forth in **Section 2.1(o)** indicating that they are each an "Accredited Investor" as defined in rule 501(a) of Regulation D under the Securities Act, and (iii) without the written consent of Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), such distribution shall not occur until the earlier of (i) the first anniversary of the Closing; or (ii) such time as the holding period requirements of Rule 144(d) of the Securities Act have been satisfied with respect to the Buyer Shares. Buyer shall issue the Buyer Shares in book-entry form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Lock Up/Leak Out Agreement for Buyer Shares</u>. The Buyer Shares shall be subject to the Lock Up/Leak Out Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Earnout</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Purchase Price includes up to three (3) annual earnout payments (each, an "**Earnout Payment**"), each in an amount of One Million Dollars ($1,000,000), in accordance with the schedule and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Earnout #1</u> – $1,000,000 of additional consideration if the Net Revenue of the Business (the "**Net Revenue**," as defined in <u>Exhibit II</u>) is greater than $5,900,000 for the period starting March 1, 2023 and ending December 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Earnout #2</u> – $1,000,000 of additional consideration if the Net Revenue is greater than $11,000,000 for the calendar year ending December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Earnout #3</u> – $1,000,000 of additional consideration if the Net Revenue is greater than $15,000,000 for the calendar year ending December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each calendar year, or partial calendar year, as applicable, listed above shall constitute an "**Earnout Period**." Each Earnout Payment shall be paid in accordance with **Section 1.5(c).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within sixty (60) days following the end of each Earnout Period, Buyer shall prepare and deliver to Seller an audit of the financial statements of the Business for such Earnout Period (the "**Earnout Statement**"). Seller shall have thirty (30) days after receipt of the Earnout Statement (the "**Earnout Review Period**") to review the calculation of Net Revenue for such Earnout Period. During the Earnout Review Period, Seller shall have the right to inspect Buyer's books and records during normal business hours at Buyer's offices, upon reasonable prior notice and solely for purposes reasonably related to the determinations of Net Revenue and the resulting Earnout Payment. Prior to the expiration of the Earnout Review Period, Seller may object to the Net Revenue calculation set forth on the Earnout Statement by delivering a written notice of objection (an "**Objection Notice**") to Buyer, which shall specify the disputed items and shall describe in reasonable detail the basis for such objection, as well as the amount in dispute. If Seller fails to deliver an Objection Notice to Buyer prior to the expiration of the Earnout Review Period, then the Net Revenue calculation set forth in the Earnout Statement shall be final and binding on the parties hereto. If Seller timely delivers an Objection Notice, the parties shall negotiate in good faith to resolve the disputed items and agree upon the resulting amount of the Net Revenue and the Earnout Payment for the applicable Earnout Period. If the parties are unable to reach agreement within thirty (30) days, then the parties shall forthwith refer the dispute to a nationally recognized accounting firm mutually agreeable to Seller and Buyer for resolution, with the understanding that such firm shall resolve all disputed items within twenty (20) days after such disputed items are referred to it. If Buyer and Seller are unable to agree on the choice of an accounting firm, they shall select a nationally recognized accounting firm by lot (after excluding their respective regular outside accounting firms). The fees and costs of such accounting firm shall be borne by Seller and Buyer in proportion to the amounts by which their respective calculations of Net Revenue differ from the decision of the accounting firm, *provided*, *however*, that in the event the Net Revenue calculation set forth on the applicable Earnout Statement represents less than 90% of the Net Revenue determined by such accounting firm, Buyer shall bear the entire amount of the fees and costs of the accounting firm and shall promptly reimburse Seller for its reasonable expenses incurred in connection with its review of the Earnout Statement and the activities relating to the dispute and resolution thereof as set forth in this section. The decision of the accounting firm shall be deemed final and conclusive and shall be binding upon Seller and Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Earnout Payments shall be comprised of (i) cash in the amount of fifty percent (50%) of the applicable Earnout Payment, and (ii) shares of HLCO common stock in that number of shares equal in value to fifty percent (50%) of the applicable Earnout Payment ("**Earnout Shares**" and collectively with the Buyer Shares, the "**Shares**"). The Earnout Shares related to each Earnout Payment shall be restricted stock, shall not carry any registration rights, and may be distributed in accordance with the provisions of **Section 1.4(d)** above. The Earnout Shares will be issued at the market price at the time of issuance based on the five-day volume weighted average price of HLCO common stock prior to the last day of the applicable measurement year. Notwithstanding the foregoing, in the event HLCO is taken private or undergoes a Change of Control, any subsequent Earnout Payment due shall be paid 100% in cash. For the purpose of this subsection, "Change of Control" shall mean the occurrence of any of the following events: (i) an acquisition of HLCO by one or more third parties by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the domicile of the Company), or (ii) a sale of all or substantially all of the assets of HLCO (collectively, a "Merger"), so long as in either case the HLCO stockholders of record immediately prior to such Merger will, immediately after such Merger, hold less than fifty percent (50%) of the voting power of the surviving or acquiring entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent Seller is entitled to all or a portion of an Earnout Payment in accordance with this **Section 1.5**, the applicable Earnout Payment(s) shall be paid within five (5) business days of (i) the conclusion of the Earnout Review Period or such earlier date as Seller shall waive objection to the Earnout Statement (email waiver to suffice for this purpose), or (ii) if Seller has provided an Objection Notice, the earlier of the date on which the parties mutually agree to a resolution of the objection or the final determination of the accounting firm per the terms of **Section 1.5(c)** is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>Allocation of Purchase Price</u>. The Purchase Price for the Purchased Assets shall be allocated as forth in **Schedule 1.5**. Within ninety (90) days after the Closing Date, Buyer and Seller shall prepare together an allocation of the Purchase Price in accordance with Internal Revenue Code and Treasury regulations (and any similar provision of state, local, or non-U.S. law, as appropriate), which allocation shall be reasonably acceptable to Buyer and Seller. Notwithstanding the foregoing, Buyer shall bear ultimate responsibility in connection with the foregoing. The parties shall provide such information to the other as either of them shall reasonably request in connection with the foregoing. The parties shall (i) prepare each report relating to the federal, state and local and other tax consequences of the purchase and sale contemplated hereby (including the filing of Internal Revenue Service Form 8594) in a manner consistent with the purchase price allocation determined pursuant to this **Section 1.6** and (ii) not take any position in any tax filing, return, proceeding, audit or otherwise which is inconsistent with the position of the other party unless permitted to do so by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 <u>Royalties</u>. In addition to the Purchase Price, Buyer shall pay royalties to Seller in an amount equal to five percent (5%) of Net Revenue (the "**Royalty Fee**"). The specific terms and conditions of the Royalty Fee shall be set forth in a license agreement in substantially the form attached hereto as Exhibit III to be negotiated between Buyer and Seller and executed at Closing (the "**License Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 <u>Further Cooperation</u>. From time to time after the Closing, Seller, at Buyer's reasonable request and without further consideration, agrees to execute and deliver or to cause to be executed and delivered such other instruments of transfer as Buyer may reasonably request that are necessary to transfer to Buyer more effectively the right, title and interest in or to the Purchased Assets and to take or cause to be taken such further or other action as may reasonably be necessary or appropriate in order to effectuate the transactions contemplated by this Agreement.

**<u>ARTICLE 2</u> <br>REPRESENTATIONS AND WARRANTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Representations and Warranties of Seller</u>. Subject to the Disclosure Schedules delivered by Seller to Buyer concurrently with the execution and delivery of this Agreement ("**Disclosure Schedules**"), Seller represents and warrants to Buyer as of the Effective Date and the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization; Subsidiaries; Ownership of Seller</u>. Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Except for the Members, and the equity holders of the Members, and certain convertible noteholders, no other person owns any right, title or interest in or to any capital stock or other equity interest or owns any security that is exercisable or exchangeable for or convertible into any equity interest in Seller. There are no voting trusts, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the equity securities of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Binding Obligation</u>. Seller has all requisite corporate power and authority to enter into and perform its obligations under this Agreement and to carry out the transactions contemplated hereby. Seller has duly authorized the execution and delivery of this Agreement and the other transactions contemplated hereby and, no other corporate proceedings on the part of Seller are necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed and delivered by Seller and constitutes a valid and binding obligation of Seller enforceable in accordance with its terms. The execution, delivery and performance by Seller of this Agreement does not and will not conflict with, or result in any violation of or default under, any provision of the Certificate of Formation, Operating Agreement (as may be amended), or other comparable agreements or constituent instruments of Seller or any ordinance, rule, regulation, judgment, order, decree, agreement, instrument or license applicable to Seller or to any of its properties or assets. No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, is required by or with respect to Seller in connection with its execution, delivery or performance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Purchased Assets</u>. The Purchased Assets, together with the assets, services and other resources provided via the Transaction Documents (as defined in **Section 5.1(f))**, other software programs currently used by Seller, and other employees currently employed by Seller, are sufficient for the continued conduct of the Business immediately after the Closing in substantially the same manner as conducted immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Title to Personal Property; Inventory</u>. Except for assets disposed of, or to be disposed of in the ordinary course of business or as otherwise disclosed on **Disclosure Schedule 2.1(d)**, Seller has good and marketable title or a valid leasehold interest in all of the personal property included in the Purchased Assets, in each case (except as set forth in the attached **Disclosure Schedule 2.1(d)**) free and clear of all mortgages, liens, security interests, pledges, charges or encumbrances of any nature whatsoever. All inventory, finished goods, raw materials, work in progress, supplies, and other inventories of the Business ("**Inventory**"), consists of a quality and quantity usable and salable in the ordinary course of business, except for obsolete, damaged, defective or slow-moving items that have been written off or written down to fair market value or for which adequate reserves have been established. Set forth in the attached **Disclosure Schedule 2.1(d)** is a good faith estimate of the Inventory. The Inventory is fit and sufficient for the purposes for which it was provided or manufactured and is normal and reasonable in kind and amount in light of the normal needs of the Business as presently conducted. All Inventory is owned by Seller free and clear of all liens and no Inventory is held on a consignment basis. The quantities of each item of Inventory (whether raw materials, work-in-process or finished goods) are not excessive, but are reasonable in the present circumstances of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Real Property</u>. Seller does not own any real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Contracts</u>. Except as set forth in **Disclosure Schedule 2.1(f)**, Seller is not currently a party to or bound by any lease, agreement, contract or other commitment relating to the Business, which involves the contractual commitment to pay or receive, or is reasonably likely to result in the payment or receipt of, more than $25,000 in the twelve (12) months following Closing that is not cancelable by Seller on less than 60 days' notice (collectively, the "**Contracts**"). Each Contract is a valid and binding obligation of Seller and is in full force and effect. Seller has performed all material obligations required to be performed by it to date under the Contracts. Except as set forth in Disclosure **Schedule 2.1(f)**, all Contracts are in the name of Seller, and all Contracts included in the Assumed Liabilities will be effectively transferred to Buyer at the time of the Closing. **Disclosure Schedule 1.1(a)** lists all Contracts included in the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Litigation</u>. There are no lawsuits, claims, proceedings or investigations pending or, to the best knowledge of Seller, threatened by or against or affecting Seller or any of its properties, assets, operations or business which could adversely affect the transactions contemplated by this Agreement or Buyer's right to utilize the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Absence of Changes or Events</u>. Since September 30, 2022, the Business has been operated in the ordinary course and there has not been any material adverse change in the financial condition, results of operations, business, assets or prospects of Seller or the value or condition of the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with Laws</u>. Seller is not in violation with respect to its operation of the Purchased Assets of any law, order, ordinance, rule or regulation of any governmental authority, except for any violation that would not have a material adverse effect on the Business or its prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Employee Benefit Plans</u>. **Disclosure Schedule 2.1(j)** sets forth a list of each employee benefit plan maintained, established or sponsored by Seller, or which Seller participates in or contributes to, which is subject to the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"). Seller has made all required contributions and has no liability to any such employee benefit plan, other than liability for health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied in all material respects with all applicable laws for any such employee benefit plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Environmental Matters</u>. Seller has not received notice of any private or governmental claims, citations, complaints, notices of violation, letters or threatened actions made, issued to or threatened against Seller by any governmental entity or private or other party for the impairment or diminution of, or damage, injury or other adverse effects to, the environment or public health resulting, in whole or in part, from the ownership, use or operation of any of Seller's facilities (whether owned or leased) which may be occupied or operated by Buyer as a result of the transactions contemplated hereby (the "**Property**"). Seller has duly complied with, and, to Seller's knowledge, without inquiry, the Property is in compliance with, the provisions of all federal, state and local environmental, health and safety laws, allocations and ordinances and all rules and regulations promulgated thereunder. Seller has provided Buyer with true, accurate and complete copies of any written information in the possession of Seller which pertains to the environmental history of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Financial Statements</u>. Attached hereto as **Disclosure Schedule 2.1(l)** are copies of the unaudited balance sheets and statements of income for Seller as of and for the years ended December 31, 2021 and 2020 and as of and for the nine month period ended September 30, 2022 (the balance sheet as of September 30, 2022 being the "**Most Recent Seller Balance Sheet**" and the date of such balance sheet being the "**Most Recent Seller Balance Sheet Date**") (such balance sheets and statements being referred to collectively as the "**Seller Financial Statements**"). Each of the Seller Financial Statements (including the notes thereto, if any) are correct in all material respects, have been prepared from, and are consistent with, the books and records of Seller (which are correct and complete in all material respects), and present the financial condition of Seller in accordance with Seller's historical practices as of the dates thereof and the operating results for the periods of Seller then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Absence of Undisclosed Liabilities</u>. Except as disclosed on **Disclosure Schedule 2.1(m)**, Seller does not have any liability or obligation, other than (a) liabilities set forth on the liabilities side of the Most Recent Seller Balance Sheet, (b) liabilities and obligations which have arisen after the Most Recent Seller Balance Sheet Date in the ordinary course of business, or (c) liabilities or obligations which are not material to Seller, the Business or the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Taxes</u>. Except as disclosed on **Disclosure Schedule 2.1(n)**, Seller has timely filed (or extended and then timely filed) all tax returns for itself that it was required to file with the appropriate governmental authorities in all jurisdictions in which such returns are required to be filed. All such tax returns accurately and correctly reflect the taxes of Seller for the periods covered thereby and are complete in all material respects. Except as set forth on **Disclosure Schedule 1.2(a)**, all taxes owed by Seller, or for which Seller may be liable (whether or not shown on any tax return), have been or will be timely paid by Seller. Seller is not currently the beneficiary of any extension of time within which to file any tax return. No claim has ever been made by an authority in a jurisdiction where Seller does not file tax returns that Seller is or may be subject to taxation by that jurisdiction. There are no liens on any of the Purchased Assets or assets of Seller that arose in connection with any failure (or alleged failure) to pay any tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Investment</u>. Seller understands that the Buyer Shares and the Earnout Shares (collectively, the "**Securities**") have not been, and will not be, registered under the Securities Act, or under any state securities laws, and are being offered and sold in reliance upon federal and state exemptions for transactions not involving any public offering. The Securities are being acquired by Seller for its own account, for investment purposes and not with a view to the sale or distribution of all or any part of the Securities, nor with any present intention to sell or in any way distribute the same, as those terms are used in the Securities Act. Seller has sufficient knowledge and experience in financial matters so as to be capable of evaluating the merits and risks of purchasing the Securities. Seller has reviewed copies of such documents and other information as Seller has deemed necessary in order to make an informed investment decision with respect to its acquisition of the Securities. Seller understands that the Securities may not be sold, transferred or otherwise disposed of without registration under the Securities Act or the availability of an exemption therefrom, and that in the absence of an effective registration statement covering the Securities or an available exemption from registration under the Securities Act, the Securities must be held indefinitely. Further, Seller understands and has the financial capability of assuming the economic risk of an investment in the Securities for an indefinite period of time. Seller has been advised by Buyer that Seller will not be able to dispose of the Securities, or any interest therein, without first complying with the relevant provisions of the Securities Act and any applicable state securities laws. Seller understands that the provisions of Rule 144 promulgated under the Securities Act, permitting the routine sales of the securities of certain issuers subject to the terms and conditions thereof, are not currently, and may not hereafter be, available with respect to the Securities. Seller acknowledges that Buyer is under no obligation to register the Securities or to furnish any information or take any other action to assist the undersigned in complying with the terms and conditions of any exemption which might be available under the Securities Act or any state securities laws with respect to sales of the Securities in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Intellectual Property Rights</u>. Except as set forth on **Disclosure Schedule 2.1(p)**, Seller does not have any registered patents, trademarks, or copyrights that are used in the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Brokerage</u>. Except as set forth on **Disclosure Schedule 2.1(q)**, there are and will be no claims for brokerage commissions, finders' fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement to which Seller is a party or to which the Business or the Purchased Assets are subject for which Seller or Buyer could become obligated after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Labor Matters</u>. **Disclosure Schedule 2.1(r)** sets forth a true, complete and correct list of (i) all employees of Seller that will be providing services to Buyer pursuant to the Transition Services Agreement (as defined in **Section 5.1(e)**) that Buyer intends to hire in a full time capacity as set forth in the Transition Services Agreement (collectively, the "**Employees**"), (ii) the position, date of hire, current annual rate of compensation (or with respect to Employees compensated on an hourly or per diem basis, the hourly or per diem rate of compensation), including any bonus, contingent or deferred compensation, and estimated or target annual incentive compensation of each Employee, (iii) the exempt or non-exempt classification of each Employee pursuant to the Fair Labor Standards Act and any other applicable law regarding the payment of wages; and (iv) the total compensation for each Employee during the fiscal years ending December 31, 2020 and December 31, 2021, in each case including any bonus, contingent or deferred compensation. Current and complete copies of all available employment contracts for the Employees or, where oral, written summaries of the terms thereof, have been delivered or made available to Buyer. Seller and any affiliate of Seller (to the extent related to the Business) have not been a party to or otherwise bound by any collective bargaining agreement or relationship with any labor union, works council, trade association, or other such employee representative, have not, to Seller's knowledge, committed any material unfair labor practice and have not, within the past three years, implemented any plant closing or layoff of employees that could implicate the Worker Adjustment and Retraining Notification Act of 1988, as amended, or any similar foreign, state, provincial or local plant closing or mass layoff Law (collectively, the "<u>WARN Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Affiliate Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as set forth on **Disclosure Schedule 2.1(s)**, no employee, officer, director or Member of Seller or any affiliate of Seller, or any person in the immediate family group of any of the foregoing (each, a "**Seller Affiliate**") (i) is a party to any agreement, contract, commitment, arrangement, or transaction with Seller or that pertains to the business of Seller other than any employment, non-competition, confidentiality or other similar agreements between Seller and any person who is an officer, director or employee of Seller (each, an "**Affiliate Agreement**"); or (ii) owns, leases, or has any economic or other interest in any asset, tangible or intangible (including Intellectual Property Rights), that is used in, held for use in, or necessary for the operation of the business of Seller as currently conducted and as currently proposed to be conducted (together with the Affiliate Agreements, collectively the "**Affiliate Transactions**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Distributors and Vendors</u>. Except as set forth on **Disclosure Schedule 2.1(t)** and with respect to vendors to the Business, no vendor who has paid to or received from Seller in excess of $10,000 (i) within the last twelve (12) months has canceled or otherwise terminated, or threatened to cancel, or to the knowledge of Seller, intends to cancel or terminate, its relationship with Seller, or (ii) within the last twelve (12) months has decreased materially or threatened to decrease or limit materially its business with Seller, or to the knowledge of Seller, intends to modify materially its relationship with Seller (including changing the terms, whether related to payment, price or otherwise). Except as set forth on **Disclosure Schedule 2.1(t)**, no vendor who has received from Seller in excess of $10,000 within the last twelve (12) months has increased or threatened to materially increase the prices charged by such vendor to Seller for the goods or services provided by such vendor to Seller. The relationship of Seller with each vendor is, to the knowledge of Seller, satisfactory and there are no unresolved material disputes with any such vendor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Warranty Claims</u>. Except as set forth on **Disclosure Schedule 2.1(x)**, Seller does not provide any express warranties, guaranties or assurances of products and services. For the past five (5) years, (a) there have not been (and there is no basis for alleging) any product recalls, withdrawals or seizures with respect to any of the products marketed, sold or delivered by Seller, and (b) there have not been (and there is no basis for alleging) any material claims against Seller alleging any defects or other deficiency (whether of design, materials, workmanship, labeling instructions or otherwise) in Seller's services or products, or alleging any failure of the products or services of Seller to meet applicable specifications, warranties or contractual commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Full Disclosure</u>. To the best knowledge of Seller, no representation or warranty by Seller in this Agreement and no statement contained in the Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant to this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>No Other Representations and Warranties</u>. Except for the representations and warranties of the Seller set forth in this **Section 2.1**, Seller does not make any other express or implied representation or warranty with respect to, as applicable, Seller, the Members, this Agreement or the transactions contemplated by this Agreement. Seller hereby disclaims any other representations or warranties whether made by the Seller or its affiliates or representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Representations and Warranties of Buyer. Buyer represents and warrants to Seller and the Members as of the Effective Date and the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization</u>. HLCO is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite power and authority to carry on its business as now conducted and as presently proposed to be conducted. Chopra HLCO, LLC is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to carry on its business as now conducted and as presently proposed to be conducted. HLCO and Chopra HLCO, LLC are each duly qualified to transact business and are in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Binding Obligation</u>. Buyer has all requisite corporate power and authority to enter into and perform its obligations under this Agreement and to carry out the transactions contemplated hereby. All corporate acts and other proceedings required to be taken by Buyer to authorize the execution, delivery and performance by Buyer of this Agreement and the transactions contemplated hereby, have been duly and properly taken. This Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms. The execution, delivery and performance by Buyer of this Agreement does not and will not conflict with, or result in any violation of, or default under, any provision of the Certificate of Incorporation, Bylaws or other comparable agreements or constituent instruments of Buyer, or any provision of any law, ordinance, rule, regulation, judgment, order, decree, agreement, instrument or license applicable to Buyer or to its respective property or assets. No consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, is required by or with respect to Buyer in connection with its execution, delivery or performance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Valid Issuance</u>. The Securities, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will be validly issued, fully paid and nonassessable and free of any liens of encumbrances and restrictions on transfer other than restrictions on transfer under this Agreement and applicable state and federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Litigation</u>. There are no lawsuits, claims, proceedings or investigations pending or, to the best knowledge of Buyer, threatened by or against or affecting Buyer or any of its properties, assets, operations or business which could adversely affect the transactions contemplated by this Agreement or that could reasonably be expected to result in a material adverse effect on Buyer's business or the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Compliance with Laws</u>. Neither Buyer nor any of its subsidiaries is in violation of any law, order, ordinance, rule or regulation of any governmental authority, except for any violation that would not have a material adverse effect on the Securities or Buyer's business or its prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Buyer Financial Statements</u>. True, complete and correct copies of the audited balance sheet and statement of income for Buyer as of and for the years ended June 20, 2022 and 2021 and the unaudited balance sheet and statement of income for Buyer as of and for the three month period ended September 30, 2022 (the balance sheet as of September 30, 2022 being the "**Most Recent Buyer Balance Sheet**" and the date of such balance sheet being the "**Most Recent Buyer Balance Sheet Date**") (such balance sheets and statements being referred to collectively as the "**Buyer Financial Statements**") have been filed by Buyer with the Securities and Exchange Commission and are available for review by Seller at www.sec.gov. Each of the Buyer Financial Statements (including the notes thereto, if any) are true, complete and correct, have been prepared from, and are consistent with, the books and records of Buyer (which are correct and complete in all material respects), and present the financial condition of Buyer in accordance with Buyer's historical practices as of the dates thereof and the operating results for the periods of Buyer then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Absence of Changes or Events</u>. Since September 30, 2022, the business of Buyer has been operated in the ordinary course and there has not been any material adverse change in the financial condition, results of operations, business, assets or prospects of Buyer or the value or condition of Buyers' business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Absence of Undisclosed Liabilities</u>. Except as disclosed on Disclosure **Schedule 2.1(h)**, Buyer does not have any liability or obligation, other than (a) liabilities set forth on the liabilities side of the Most Recent Buyer Balance Sheet, (b) liabilities and obligations which have arisen after the Most Recent Buyer Balance Sheet Date in the ordinary course of business, or (c) liabilities or obligations which are not material to Buyer or its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Taxes</u>. Except as disclosed on **Disclosure Schedule 2.2(i)**, Buyer has timely filed (or extended and then timely filed) all tax returns for itself that it was required to file with the appropriate governmental authorities in all jurisdictions in which such returns are required to be filed. All such tax returns accurately and correctly reflect the taxes of Buyer for the periods covered thereby and are complete in all material respects. Except as set forth on **Disclosure Schedule 2.2(i)**, all taxes owed by Buyer, or for which Buyer may be liable (whether or not shown on any tax return), have been or will be timely paid by Buyer. Buyer is not currently the beneficiary of any extension of time within which to file any tax return. No claim has ever been made by an authority in a jurisdiction where Buyer does not file tax returns that Buyer is or may be subject to taxation by that jurisdiction. There are no liens on any assets of Buyer that arose in connection with any failure (or alleged failure) to pay any tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Permits</u>. Buyer has all material franchises, permits, licenses and any similar authority necessary for the conduct of its business. Buyer is not in default in any material respect under any of such franchises, permits, licenses or other similar authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Brokerage</u>. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement, or any Transaction Document based upon arrangements made by or on behalf of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Liquidity</u>. Buyer has, or will have, sufficient cash on hand or other sources of available funds to enable it to make payment of the Purchase Price as and when due and to otherwise consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Conflict</u>. There are no actions pending or threatened against or by Buyer or any affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay the timely payment of the Purchase Price as contemplated by this Agreement and no event has occurred or circumstances exist that may give rise or serve as a basis for any such action. Buyer does not, either directly or through an affiliate, have any contractual or other relationship which in any way conflicts with Buyer's ability to sell the Products and Services, including, without limitation, for the purposes of maximizing the opportunity for Seller to earn and receive the full Earnout Payment and maximize the Royalty Fees. For purposes of this subsection, references to the Buyer shall be deemed to refer to any successor-in-interest to the Buyer or the business of the Buyer (whether as a separate entity or division) as the context requires

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Other Representations and Warranties</u>. Except for the representations and warranties of the Buyer set forth in this **Section 2.2**, Buyer does not make any other express or implied representation or warranty with respect to, as applicable, Buyer, this Agreement or the transactions contemplated by this Agreement. Buyer hereby disclaims any other representations or warranties whether made by Buyer or its affiliates or representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Full Disclosure</u>. To the best knowledge of Buyer, no representation or warranty by Buyer in this Agreement and no statement contained in the Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Seller or the Members pursuant to this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

**<u>ARTICLE 3</u>**

**INTERIM COVENANTS**

During the period from the date of this Agreement and continuing until the Closing, Seller agrees (except as expressly contemplated by this Agreement or to the extent that Buyer shall otherwise consent in writing) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Ordinary Course</u>. Seller shall carry on the Business in the usual, regular and ordinary course in substantially the same manner as heretofore conducted and, to the extent consistent with such business, use commercially reasonable efforts consistent with past practice and policies to preserve intact its present business organization, keep available the services of its present officers and key employees, preserve its relationships with customers, suppliers and others having business dealings with it to the end that its goodwill and ongoing business shall be unimpaired as a result of the transactions contemplated hereby and refrain from making any distributions of any portions of the Purchased Assets to the Members. For purposes of clarity, Buyer acknowledges and agrees that the license and option to purchase content transaction by and between Seller and IIN will not be a violation of this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Access to Information</u>. Seller shall afford to Buyer and to Buyer's accountants, counsel and other representatives, at Buyer's sole cost and expense, reasonable access during normal business hours to the books and records of the Business and such other information concerning the Business as Buyer may reasonably request. Buyer will hold such information in confidence until such time as such information otherwise becomes publicly available and in the event of termination of this Agreement for any reason Buyer shall promptly return, or cause to be returned, to Seller all nonpublic documents obtained from Seller which it would not otherwise have been entitled to obtain; and shall use the information only for purposes of the transactions contemplated hereby and not in any other manner whatsoever. Whenever Buyer desires information pursuant to this **Section 3.2**, Buyer shall request such information from Seller and provide Seller with sufficient time to allow Buyer or its representatives to visit Seller's place of business and review and copy such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Exclusivity</u>. In consideration of the substantial investment of time and resources that Buyer will make in connection with its due diligence investigation of the Purchased Assets and Seller, Seller agrees that, for a period ending on March 15, 2023 (the "**Exclusivity Period**"), Seller shall not and shall cause the Members and Seller's employees, affiliates, directors, or representatives not to, directly or indirectly, provide information regarding Seller to, or initiate, negotiate, or hold any discussions or enter into any understanding or agreement with, any party other than Buyer with respect to any Competitive Transaction (as defined below). To the extent such discussions or negotiations are on-going, they will be terminated. In addition, Seller agrees to immediately communicate to Buyer the terms of any proposal relating to a Competitive Transaction received by Seller or the Members, or the employees, directors, or representatives of Seller during the Exclusivity Period. For purposes hereunder, a "**Competitive Transaction**" is a transaction involving, directly or indirectly, the acquisition of all or any material portion of the assets of the Business, or of any of the outstanding equity interests in Seller regardless of the structure of any such acquisition, or the authorization of any advisors of Seller to take any action for the purposes of advancing any such acquisition with any party other than Buyer or any other material transaction that is inconsistent with this Agreement. For purposes of clarity, this subsection does not apply to Seller's contemplated transaction with Integrative Nutrition, LLC ("IIN").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Notification of Certain Matters</u>. From the Effective Date through the earlier of the Closing or the termination of this Agreement in accordance with its terms, Buyer and Seller shall give each other prompt notice in writing of: (a) the occurrence, or failure to occur, of any result, occurrence, fact, change, event or effect which occurrence or failure could, individually or in the aggregate, reasonably be expected to cause any of such party's representations or warranties contained in this Agreement to be untrue or inaccurate in any material respect; (b) the failure by such party to comply with or satisfy in any respect any covenant, condition or agreement required to be complied with or satisfied by it under this Agreement; (c) any results, occurrences, facts, changes, events or effects that had, or would, individually or in the aggregate, reasonably be expected to have (i) a material adverse effect on the business or operations of such party or (ii) a material adverse effect on such party's ability to consummate the transactions contemplated by this Agreement in a timely manner; or (d) any actions, suits, claims, investigations, audits or proceedings commenced or, to the knowledge of such party, threatened against such party or otherwise affecting such party, which relate to the consummation of the transactions contemplated by this Agreement.

**<u>ARTICLE 4</u>** 

**COVENANTS, ADDITIONAL AGREEMENTS AND OBLIGATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Expenses</u>. Except as otherwise expressly set forth herein, all costs and expenses incurred by Buyer or Seller in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs; provided that, if the transactions contemplated hereby are consummated, Buyer shall be responsible for all liabilities and obligations set forth on Schedule 1.2(a) and those expressly set forth in the Transactions Documents, including the Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Press Release; Communications</u>. None of the parties hereto shall issue a press release or other publicity announcing the sale of the Purchased Assets or any other aspect of the transactions contemplated hereby without the prior written approval of the other party (which approval shall not be unreasonably withheld, conditioned or delayed), unless such disclosure is required by applicable law. Seller approval of a Buyer press release or other form of publicity shall be deemed approved by Seller if no written approval is received by Buyer within 48 hours after such press release or other publicity has been delivered to Seller. The parties agree to work together to develop a communication and client positioning strategy to ensure maximum retention of clients of the Business, minimize impact to the businesses of Seller not included in the Business and mitigate any liability to Seller. Buyer and Seller will communicate this transaction as a win-win strategic alliance that is beneficial for all parties including customers, when communicating with all external stakeholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Confidentiality</u>. Negotiations between the parties and all information received by the parties in the course of negotiations and prior to the Closing shall be kept in strict confidence pending the Closing and there shall be no disclosure that any agreement has been entered into, without all parties' written consent except to the extent required by applicable law, including the Securities Exchange Act of 1934, as amended. All parties acknowledge they have executed and will continue to be bound by the Mutual Non-Disclosure Agreement dated October 7, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Covenant Not to Compete</u>. For a period of three (3) years from and after the Closing Date (the "**Noncompetition Period**"), Seller will not engage, directly or indirectly, in any business that is directly competitive with the Business in the United States; provided, however, that no owner of less than 5% of the outstanding stock of any publicly-traded corporation shall be deemed to engage solely by reason thereof in any of its businesses. During the Noncompetition Period, Seller shall not induce or attempt to induce any customer, or supplier of Buyer or any affiliate of Buyer to terminate its relationship with Buyer or any affiliate of Buyer or to enter into any business relationship to provide or purchase the same or substantially the same services as are provided to or purchased from the Business which might harm Buyer or any affiliate of Buyer. During the Noncompetition Period, Seller shall not, on behalf of any entity other than Buyer or an affiliate of Buyer, hire or retain, or attempt to hire or retain, in any capacity any person who is, or was at any time during the preceding twelve (12) months, an employee or officer of Buyer or an affiliate of Buyer. For purposes of this **Section 4.4**, an affiliate of Buyer shall refer to a person or entity, the identity of which is known to Seller as an affiliate of Buyer, and which is in the same business as the Business. If the final judgment of a court of competent jurisdiction declares that any term or provision of this **Section 4.4** is invalid or unenforceable, the parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed. Notwithstanding the foregoing, Seller shall not be required to comply with this **Section 4.4** at any time that Buyer is in material breach of this Agreement or any of the other Transaction Documents; provided that Seller provides Buyer with written notice of such material breach and a thirty (30) day opportunity to cure such material breach. For purposes of clarity, Buyer acknowledges and agrees that Seller continuing those portions of its existing businesses not being sold to Buyer and Seller's contemplated transaction with IIN are not violations of this subsection. If the License Agreement is terminated, then this Section 4.4 shall automatically and immediately cease to be effective upon such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Earnout Protection</u>. Buyer shall use commercially reasonable efforts to timely meet the sales and revenue thresholds to maximize the Earnout Payments, and Buyer shall not, directly or indirectly, take any actions in bad faith that would have the purpose of avoiding or reducing any of the Earnout Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Tax Matters</u>. All Transfer Taxes, if any, due under the laws of any state, any local government authority, or the federal government of the United States, in connection with the purchase and sale of the Purchased Assets shall be paid by Buyer. For purposes of this Agreement, "**Transfer Taxes**" means all federal, state, local and foreign transfer, deed, documentary, sales, excise, use, stamp, registration, value added, recording, real and personal property transfer, stock transfer, or other similar taxes (including any penalties and interest) applicable to, imposed upon, arising out of, or incurred in connection with this Agreement or the transactions contemplated hereby. In addition to the Transfer Taxes, Buyer shall pay all similar taxes that may arise out of or result from the transactions consummated pursuant to this Agreement or the Transaction Documents. Following the Closing, Buyer and Seller shall cooperate fully, as and to the extent reasonably requested by the other party and at the expense of the other party, in connection with the filing of any tax returns and any audit, litigation or other proceeding with respect to taxes. Such cooperation shall include the retention and (upon the other party's request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided thereunder. Buyer agrees to retain all books and records with respect to tax matters pertinent to Seller relating to any taxable period beginning before the Closing Date until the expiration of the applicable statute of limitations of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Transfer of Cash Collections Post-Closing</u>. Until such time as Seller's accounts with the Google Play and Apple App stores are transferred to Buyer, Seller agrees to remit to Buyer, after the Closing, all cash received by Seller from sales of the Chopra Meditation & Wellbeing App from transactions subsequent to February 28, 2023, within seven (7) days of receipt. Similarly, until Seller's account with Chase Paymentech relating to sales of the Chopra Health Retreat at CIVANA Wellness Resort & Spa is transferred to Buyer or replaced by an account in Buyer's name and connected to Buyer's bank accounts, after the Closing, Seller will remit to Buyer all net (of refunds) cash received by Seller following February 28, 2023 from sales of the Chopra Health Retreat on a weekly basis. In the event that, after the Closing, any of Seller's accounts referenced above are not able to be transferred to Buyer, Seller shall continue to remit to Buyer all cash received from post-February 28, 2023 sales for so long as such cash is received by Seller. In addition, promptly following the Closing, Seller shall remit to Buyer all cash received by Seller prior to the Closing to the extent relating to enrollments in the Chopra Health Retreat scheduled to take place after the Closing. For the avoidance of doubt, the payments set forth in this **Section 4.7** shall be made net of any amounts paid by Chopra for sales commissions and credit card fees in connection with the sales to which the required cash payments relate. Notwithstanding anything to the contrary herein, Buyer shall be fully liable for the delivery of the services with respect to which such payments relate and shall indemnify Seller with respect to any claims related thereto. In the event any refunds are required to be provided by Seller with respect to any payments previously made to Buyer, Buyer shall promptly remit such amounts to Seller for the purposes thereof or, alternatively, Seller may net such amounts from later payments to be made to Buyer in accordance with the provisions of this **Section 4.7**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Privacy, Data Security and Marketing Compliance</u>. Buyer has, and shall maintain, commercially reasonable administrative, technical and organizational processes and procedures to protect all personal data from unauthorized access and/or use, which such processes and procedures meet or exceed industry standards. Buyer has been in compliance, and shall continue to comply, with all applicable data privacy and security laws, rules and regulations, as well as any and all other applicable laws, rules and regulations. Buyer shall comply with the CAN-SPAM Act, TCPA, and all other applicable marketing laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Reputational Protection</u>. Buyer shall not use any Purchased Asset in a manner that is defamatory, obscene, unlawful, or that may be injurious to Seller's or Deepak Chopra's name or brand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Compliance with Transaction Documents</u>. Buyer shall comply with all of the terms and conditions of the License Agreement and the Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 21 <u>Day Meditation Experience</u>. Buyer shall continue to provide purchasers of 21 Day Meditation Experience albums with continued access to such albums via the Chopra Meditation & Well-being App for iOS and Android (the "Chopra App"), or any successor offering to the App, as well as via the website located at <u>www.chopra.com</u> for so long as the foregoing is licensed to Buyer pursuant to the License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <u>Continued Business Operations</u>. In the event the delivery of any products or services of the Business that are purchased prior to the Closing extends beyond the Closing Date, Buyer shall ensure such delivery in the manner consistent with Chopra's recent practices and the reasonable expectations of the applicable purchasers with respect to such products or services. For example, in the event a subscriber to the Chopra App purchases an annual subscription to the Chopra App prior to the Closing Date, Buyer shall take all commercially reasonable measures to provide the Chopra App for the duration of the subscription term at substantially the same level of service as provided by Seller immediately prior to the Closing, without diminution in the functionality or performance of, or content available via, the Chopra App. Additionally, Buyer shall take all reasonable effort to operate the Business on an ongoing basis in a manner intended to maximize its long term financial performance while avoiding actions or inactions that are intended to or result in a reduction of Net Revenues for the purpose of avoiding Earnout Payments or reducing Royalty Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 <u>Sale of Purchased Assets</u>. Buyer shall not sell any of the Purchased Assets or rights in and to the Purchased Assets without assigning to the purchaser all of the obligations of Buyer set forth in this Agreement, including, without limitation, the Earnout Payment and Royalty Fee obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 <u>RESERVED</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 <u>Dissolution of Seller</u>. Seller shall not dissolve Seller without providing prior written notice of such dissolution to Buyer.

**<u>ARTICLE 5</u>** 

**CONDITIONS PRECEDENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Conditions to Each Party's Obligation</u>. The respective obligations of each party hereunder shall be subject to the satisfaction prior to the Closing Date of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Approvals</u>. All authorizations, consents, orders or approvals of, or declarations or filings with, or expiration of waiting periods imposed by, any governmental entity necessary for the consummation of the transactions contemplated by this Agreement shall have been filed, occurred or been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Legal Action</u>. No action, suit or proceeding shall have been instituted or threatened before any court or governmental body seeking to challenge or restrain the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>License Agreement</u>. Buyer and Seller shall have agreed to the terms of the License Agreement which shall (i) provide Buyer with the use of Chopra central assets including, but not limited to the website located at <u>www.chopra.com</u>, social media accounts using the @chopraglobal handle across key social channels, and certain trademarks and content and (ii) set forth the terms and conditions of the Royalty Fee referred to in **Section 1.7** above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Transition Services Agreement</u>. Buyer and Seller shall have agreed to the terms of a transition services agreement in substantially the form attached hereto as <u>Exhibit IV</u> providing for the continued operation of the Business (i) by certain employees of Seller (along with current and future employees of Buyer) for a defined period of time, following which Buyer intends to hire some of such employees (the "**Hired Employees**") as set forth in such agreement and cease its reliance on employees of Seller in connection with the operation of the Business and (ii) utilizing certain technology applications and services of Seller, including (x) certain applications and services that will be acquired (in the case of applications and services owned by Seller) or assigned, transferred or otherwise assumed (along with associated liabilities, in the case of third-party applications and services licensed by Seller) by Buyer on a date and as otherwise set forth in such agreement and (y) certain applications and services that will be replaced with Buyer owned and operated applications and services prior to the termination of such agreement (the "**Transition Services Agreement**"). The Transition Services Agreement shall also clarify certain other post-Closing financial matters, including the process for settling certain amounts collected or disbursed by one Party on behalf of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Closing Documents</u>. The License Agreement, Transition Services Agreement, Bill of Sale (as defined in **Section 5.2(h)(i))**, Assignment and Assumption Agreement (as defined in **Section 5.2(h)(ii))** and Chopra Waivers (collectively, the "**Transaction Documents**") and the Buyer Shares shall be or shall have been delivered in form and substance reasonably satisfactory to each of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Conditions of Obligations of Buyer</u>. The obligations of Buyer to effect the transactions contemplated hereby are subject to the satisfaction of the following conditions unless waived by Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. The representations and warranties of Seller set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date, and Buyer shall have received a certificate signed by the chief executive officer of Seller to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance of Obligations of Seller</u>. Seller shall have performed all obligations required to be performed by them under this Agreement to the extent intended to be performed at or prior to Closing, and Buyer shall have received a certificate signed by the chief executive officer of Seller to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Material Adverse Change</u>. Since September 30, 2022, there shall have been no material adverse change in the financial condition, results of operations, business or assets of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Consents and Actions</u>. All requisite consents of or notices to any third parties to permit Buyer to assume Seller's interest in any Assumed Contracts or otherwise conduct the Business shall have been obtained or sent by Seller, including those required consents or notices relating to those agreements listed in **Schedule 5.2(f)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Revolving Loans Default Waivers</u>. Seller shall have obtained and delivered to Buyer from the Deepak K. Chopra & Rita Chopra Family Trust and from the Mandal-Chopra Trust, both of which entities are holders (the "**Secured Note Holders**") of secured revolving line of credit promissory notes (the "**Secured Notes**") of Seller, written waivers (the "**Chopra Waivers**") of the provisions of the Secured Notes that would trigger a default under the Secured Notes upon the sale of the Purchased Assets to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Closing Deliveries</u>. Seller shall deliver, or cause to be delivered, to Buyer at or prior to the Closing the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A bill of sale in the form of <u>Exhibit V</u> attached hereto (the "**Bill of Sale**"), and such other documents as may be required to convey all of Seller's right, title and interest in all personal property included in the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An assignment and assumption agreement in the form of <u>Exhibit VI</u> attached hereto (the "**Assignment and Assumption Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Executed License Agreement and Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such other documents, instruments or certificates as shall be reasonably requested by Buyer or its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Conditions of Obligations of Seller</u>. The obligations of Seller to effect the transactions contemplated hereby are subject to the satisfaction of the following conditions unless waived by Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. The representations and warranties of Buyer set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date, and Seller shall have received a certificate signed by the chief executive officer of Buyer to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance of Obligations of Buyer</u>. Buyer shall have performed all obligations required to be performed by it under this Agreement to the extent intended to be performed at or prior to Closing, and Seller shall have received a certificate signed by the chief executive officer of Buyer to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Material Adverse Change</u>. Since September 30, 2022, there shall have been no material adverse change in the financial condition, results of operations, business or assets of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consents and Actions</u>. All requisite consents of any third parties to the transactions contemplated by this Agreement shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Closing Deliveries</u>. Buyer shall deliver, or cause to be delivered, to Seller at or prior to the Closing the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Buyer Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Executed License Agreement and Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such other documents, instruments or certificates as shall be reasonably requested by Seller or its counsel.

**<u>ARTICLE 6</u>** 

**INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Survival of Representations and Warranties</u>. All of the representations, warranties, covenants, agreements, and obligations of Seller and Buyer contained in this Agreement shall survive the Closing and continue in full force and effect for a period of twenty-four (24) months thereafter, provided that (i) the representations and warranties contained in **Sections 2.1(a)** (Ownership of Seller), **2.1(b)** (Binding Obligation), **2.1(d)** (Title to Personal Property), **2.1(n)** (Taxes), **2.2(a)** (Organization), **2.2(b)** (Binding Obligation), **2.2(c)** (Valid Issuance), **2.2(i)** (Taxes) and **4.4** (Covenant not to Compete) (such representations being referred to herein as the "**Fundamental Representations**") shall continue in full force and effect for a period equal to the applicable statute of limitations, and (ii) the indemnification obligations of Buyer pursuant to **Section 6.3(b)** will survive for the periods set forth in that section. For the avoidance of doubt, the covenants, agreements and obligations of Buyer pursuant to **Sections 4.8** to **4.13** shall also be considered Fundamental Representations for all purposes herein. This **Section 6.1** shall survive so long as any representations, warranties, covenants, agreements, and obligations (including, without limitation, indemnification obligations) of any party survive under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Indemnification Provisions for Benefit of Buyer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to **Section 6.1** and **Section 6.4**, if Seller breaches any of its representations, warranties, covenants, agreements and obligations contained in this Agreement and Buyer makes a written claim for indemnification against Seller within the applicable survival period, which written claim shall specifically identify the basis for indemnification and any relevant facts forming the basis for such claim, then Seller and the Majority Member, severally and jointly, agree to defend, indemnify and hold harmless Buyer and its affiliates and their respective members, managers, directors, officers, and employees (collectively, the "**Buyer Indemnitees**") from and against the entirety of any Adverse Consequences (as defined below) resulting from, arising out of, relating to, in the nature of, or caused by the breach of such representation, warranty or covenant. For purposes of this Agreement, "**Adverse Consequences**" means all third-party actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, liabilities, obligations, taxes, liens, losses, lost value, expenses, and fees, including court costs and reasonable attorneys' fees and expenses actually incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the indemnification provided in **Section 6.2(a)**, Seller and the Majority Member agree to indemnify the Buyer Indemnitees from and against the entirety of any Adverse Consequences Buyer Indemnities may suffer resulting from, arising out of, relating to, in the nature of, or caused by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Excluded Liability; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any liability of Seller which is not an Assumed Liability and which is imposed upon any of the Buyer Indemnities under any bulk transfer law of any jurisdiction or under any common law doctrine of de facto merger or successor liability so long as such liability arises out of the ownership, use or operation of the assets of Seller, or the operation or conduct of the Business prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Indemnification Provisions for Benefit of Seller and the Members</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to **Section 6.1** and **Section 6.4**, if Buyer breaches any of its representations, warranties, covenants, agreements and obligations contained in this Agreement and Seller makes a written claim for indemnification against Buyer within the applicable survival period, which written claim shall specifically identify the basis for indemnification and any relevant facts forming the basis for such claim, then Buyer agrees to defend, indemnify and hold harmless Seller, the Members, and their affiliates and respective members, managers, directors, officers, and employees (collectively, the "**Seller Indemnitees**") from and against the entirety of any Adverse Consequences resulting from, arising out of, relating to, in the nature of, or caused by the breach of such representation, warranty or covenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the indemnification provided in **Section 6.3(a)**, Buyer agrees to indemnify the Seller Indemnitees from and against the entirety of any Adverse Consequences the Seller Indemnitees may suffer resulting from, arising out of, relating to, in the nature of, or caused by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Assumed Liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any liability (other than any Excluded Liability) asserted by a third party against any Seller Indemnitee which arises out of the ownership of the Purchased Assets after the Closing or the operation of the Business after the Closing Date, and this indemnification provision shall survive during the term of the License Agreement and following termination of the License Agreement for only so long as the applicable statute of limitations is in effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Third-Party Claims (as defined in the License Agreement) arising out of the License Agreement, and this indemnification provision shall survive during the term of the License Agreement and following termination of the License Agreement for only so long as the applicable statute of limitations is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Limitation on Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary in this Agreement, including, without limitation, **Section 6.2** or **Section 6.3**, in no event shall Buyer have or assert any claim against Seller or the Majority Member, or shall Seller have or assert any claim against Buyer based upon or arising out of the breach of any representation, warranty, covenant, agreement or obligation under this Agreement or otherwise relating to the subject matter of this Agreement unless, until and to the extent that the aggregate of all such claims under **Section 6.2**, in the case of the Buyer or any Buyer Indemnitee, or under **Section 6.3**, in the case of Seller or any Seller Indemnitee, exceeds Fifty Thousand Dollars ($50,000) (the "**Indemnification Threshold**") (at which point the indemnifying party will be obligated to indemnify the indemnified party from and against all such Adverse Consequences relating back to the first dollar).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, including, without limitation, **Section 6.2**, Seller and the Majority Member, in the aggregate, shall have no liability under this Agreement to Buyer or any Buyer Indemnitee in excess of $825,000, except with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) claims for Fundamental Representations, which, in the aggregate, shall not exceed the Purchase Price actually received by Seller as of the date of payment of the applicable indemnification claim (A) valuing the Buyer Shares at the lower of (x) the market price at the time of payment of the indemnification claim based on the five-day volume weighted average price of HLCO common stock immediately prior to the date of payment and (y) $3,500,000, (B) valuing the Earnout Shares at the lower of the market price at the time of issuance to Seller or at the time of payment of the indemnification claim, either way based on the five-day volume weighted average price of HLCO common stock immediately prior to the date of payment), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) claims and losses arising out of common law fraud or criminal activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Matters Involving Third Parties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any third party shall notify any party (the "**Indemnified Party**") with respect to any matter (a "**Third Party Claim**") which may give rise to a claim for indemnification ("**Indemnification**") against any other party (the "**Indemnifying Party**") under this **Section 6**, then the Indemnified Party shall promptly notify the Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying Party is prejudiced by such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Indemnifying Party will have the right to defend the Indemnified Party against the Third Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party so long as (A) the Indemnifying Party notifies the Indemnified Party in writing within 20 days after the Indemnified Party has given written notice of the Third Party Claim that the Indemnifying Party will indemnify the Indemnified Party from and against any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim, (B) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial resources to defend against the Third Party Claim and fulfill its indemnification obligations hereunder, (C) the Third Party Claim involves only money damages and does not seek an injunction or other equitable relief, (D) settlement of, or an adverse judgment with respect to, the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to establish a precedential custom or practice materially adverse to the continuing business interests of the Indemnified Party (it being understood that any Third Party Claim involving a person or entity which is a customer or supplier of Buyer following the Closing, will be deemed to involve the possibility of such a precedential custom or practice), and (E) the Indemnifying Party conducts the defense of the Third Party Claim actively and diligently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) So long as the Indemnifying Party is conducting the defense of the Third Party Claim in accordance with **Section 6.5(b)** above, (A) the Indemnified Party may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party Claim, (B) the Indemnified Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnifying Party (not to be withheld unreasonably), and (C) the Indemnifying Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnified Party (not to be withheld unreasonably).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event any of the conditions in **Section 6.5(b)** above is or becomes unsatisfied, however, (A) the Indemnified Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to, the Third Party Claim in any manner it reasonably may deem appropriate (and the Indemnified Party need not consult with, or obtain any consent from, any Indemnifying Party in connection therewith), (B) the Indemnifying Parties will reimburse the Indemnified Party promptly and periodically for the costs of defending against the Third Party Claim (including reasonable attorneys' fees and expenses), and (C) the Indemnifying Parties will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim to the fullest extent provided in this **Section 6**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Payment Provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Recoupment</u>. For any amounts judicially determined by a court of competent jurisdiction no longer subject to appeal to be due and payable to Buyer under the indemnification provisions of this Section 6, Buyer shall have the option of recouping all or any part of any successfully adjudicated Adverse Consequences it may suffer by notifying Seller that Buyer is reducing the Earnout Payments or Royalty Fee by the amount of such Adverse Consequences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Order of Payment</u>. Any payment to Buyer pursuant to a claim for Indemnification shall be made as follows; *provided, however*, Seller has the option to pay cash rather than Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, in cash by wire transfer of immediately available funds, following receipt from Buyer of a bill, up to an amount equal to the Initial Cash Payment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, in shares of HLCO common stock up to the 1,400,000 Buyer Shares, valued at the market price at the time of payment of the indemnification claim based on the five-day volume weighted average price of HLCO common stock immediately prior to the date of payment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) third, in cash by wire transfer of immediately available funds up to $1,000,000,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) fourth, out of the Earnout Payments, first in Earnout Shares to the extent that Earnout Shares has been received as Earnout Payments (valued at the market price at the time of payment of the indemnification claim based on the five-day volume weighted average price of HLCO common stock immediately prior to the date of payment), and second in cash, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) finally, in cash by wire transfer of immediately available funds up to the remaining balance of the Deferred Cash Payment actually received by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Exclusive Remedies</u>. The parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims and/or losses (other than claims arising from fraud, criminal activity or willful misconduct) for any breach of any representation, warranty, covenant, agreement or obligation set forth in this Agreement or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this **Section 6**. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under applicable law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth in this Agreement or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their affiliates and each of their respective representatives arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this **Section 6**. Nothing in this section shall limit any person's right to seek and obtain any equitable relief to which any person shall be entitled or to seek any remedy on account of any party's fraudulent, criminal or intentional misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Insurance Proceeds</u>. Payments by an Indemnifying Party pursuant to this **Section 6** in respect of any losses shall be limited to the amount of any losses that remain after deducting therefrom any insurance proceeds and any indemnity, contribution, or other similar payment actually received by the Indemnified Party with respect to such losses less any related costs and expenses, including the aggregate cost of pursuing any related insurance claims and any related increases in insurance premiums or other chargebacks. The Indemnified Party shall use commercially reasonable efforts to recover under insurance policies or indemnity, contribution or other similar agreements for any losses prior to seeking indemnification under this Agreement.

**<u>ARTICLE 7</u>** 

**TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Termination</u>. This Agreement may be terminated at any time prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual consent of Buyer and Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by either of Buyer or Seller if there has been a material misrepresentation or breach of any covenant or agreement contained in this Agreement on the part of the other party and such breach of a covenant or agreement has not been cured within thirty (30) days following the giving of written notice with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provided Buyer and Seller have acted in good faith to timely complete the conditions set forth in **Section 5.1** and **Section 5.2**, by Buyer if any of the conditions set forth in **Sections 5.1 and 5.2** shall not have been satisfied before the sixtieth (60<sup>th</sup>) day following the Effective Date (the "**Outside Date**"), or such later date as Buyer and Seller shall mutually agree in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provided Buyer and Seller have acted in good faith to timely complete the conditions set forth in **Section 5.1** and **Section 5.3**, by Seller if any of the conditions set forth in **Section 5.1** or **Section 5.3** shall not have been satisfied before the Outside Date, or such later date as Buyer and Seller shall mutually agree in writing.

**<u>ARTICLE 8</u>** 

**GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Counterparts; Electronic Signatures</u>. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart. Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any such signature appearing on this Agreement or such other documents as are contemplated hereby are the same as handwritten signatures for the purpose of validity, enforceability and admissibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Governing Law and Arbitration. This Agreement shall be governed in all respects, including validity, interpretation and effect, by the internal laws of the State of New York without regard to conflict of law principles thereof. Any dispute shall be resolved in the state or federal courts located in New York County, New York. The provisions of this **Section 8.2** shall survive the entry of any judgment, and will not merge, or be deemed to have merged, into any judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Entire Agreement</u>. This Agreement and the Transaction Documents constitute the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they related in any way to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Amendment</u>. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Succession and Assignment</u>. This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted assigns. No party may assign either this Agreement or any of his or its rights, interests, or obligations hereunder without the prior written approval of Buyer and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices, requests, claims, demands and other communications among the Parties shall be in writing and given to the respective parties at their respective addresses set forth on the signature page to this Agreement (or to such other address as a Party shall have furnished to the other Parties in writing in accordance with the provisions of this **Section 8.6)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All notices shall be given (i) by delivery in person (ii) by a nationally recognized next day courier service, (iii) by first class, registered or certified mail, postage prepaid, (iv) by facsimile or (v) by electronic mail to the address of the party specified in **Section 8.6(a)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All notices shall be effective upon (i) receipt by the party to which notice is given, or (ii) on the fifth (5th) day following mailing, whichever occurs first.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Severability</u>. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Waiver</u>. Any party hereto may (a) agree to extend the time for the performance of any of the obligations or other acts of another Party, (b) waive any inaccuracies in the representations and warranties of the other Party contained herein or in any document delivered pursuant thereto or (c) waive compliance with any of the agreements or conditions contained herein by the other Party. Any agreement on the part of the Party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <u>Specific Performance</u>. Each of the Parties acknowledges and agrees that the other Parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached. Accordingly, each of the Parties agrees that the other Parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction over the Parties and the matter, in addition to any other remedy to which they may be entitled, at law or in equity.

[*Remainder of page intentionally left blank; signature pages and attachments follow*.]

IN WITNESS WHEREOF, Buyer, Seller and the Majority Member (Majority Member solely with respect to certain specific indemnification provisions as set forth in Article VI) have duly authorized, executed and entered into this Asset Purchase Agreement as of the Effective Date.

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| | | | |
|:---|:---|:---|:---|
| **BUYER:** | **BUYER:** | **SELLER:** | **SELLER:** |
| **THE HEALING COMPANY INC.** | **THE HEALING COMPANY INC.** | **CHOPRA GLOBAL LLC** | **CHOPRA GLOBAL LLC** |
| By: | /s/ Simon Belsham  | By: | /s/ Mallika Chopra |
| Name: | Simon Belsham | Name:  | Mallika Chopra |
| Title: | Chief Executive Officer | Title: | Chief Executive Officer |
| Ten Grand Street, 11<sup>th</sup> Floor | Ten Grand Street, 11<sup>th</sup> Floor | 13485 Veteran's Way | 13485 Veteran's Way |
| Brooklyn, NY 11249 | Brooklyn, NY 11249 | Suite 105 | Suite 105 |
| Attention: Simon Belsham  | Attention: Simon Belsham  | Orlando, FL 32827 | Orlando, FL 32827 |
| Email: <u>simon@healingcompany.com</u> | Email: <u>simon@healingcompany.com</u> | Attention: Mallika Chopra | Attention: Mallika Chopra |
|  |  | Email: <u>mallika@chopra.com</u>  | Email: <u>mallika@chopra.com</u>  |
| **CHOPRA HLCO, LLC** | **CHOPRA HLCO, LLC** |  |  |
|  |  | with a copy, which shall not constitute notice to Seller, to: [Seller's counsel] | with a copy, which shall not constitute notice to Seller, to: [Seller's counsel] |
| **By: HLCO Borrower LLC, Sole Member** | **By: HLCO Borrower LLC, Sole Member** |  |  |
|  |  | Gray Robinson, P.A. | Gray Robinson, P.A. |
| By: | /s/ Simon Belsham  | 333 SE 2<sup>nd</sup> Avenue | 333 SE 2<sup>nd</sup> Avenue |
| Name: | Simon Belsham | Suite 3200 | Suite 3200 |
| Title:  | Chief Executive Officer | Miami, Florida 33131 | Miami, Florida 33131 |
|  |  | Attention: Kevin M. Levy, Esq. | Attention: Kevin M. Levy, Esq. |
| **By: The Healing Company Inc., as Sole Member of HLCO Borrower LLC** | **By: The Healing Company Inc., as Sole Member of HLCO Borrower LLC** | Email: <u>kevin.levy@gray-robinson.com</u>  | Email: <u>kevin.levy@gray-robinson.com</u>  |
| By:<u> </u> | /s/ Simon Belsham  |  |  |
| Name: | Simon Belsham |  |  |
| Title:  | Chief Executive Officer |  |  |
| Ten Grand Street, 11<sup>th</sup> Floor | Ten Grand Street, 11<sup>th</sup> Floor |  |  |
| Brooklyn, NY 11249 | Brooklyn, NY 11249 |  |  |
| Attention: Simon Belsham  | Attention: Simon Belsham  |  |  |
| Email: <u>simon@healingcompany.com</u>  | Email: <u>simon@healingcompany.com</u>  |  |  |
| with a copy, which shall not constitute notice to Buyer, to: | with a copy, which shall not constitute notice to Buyer, to: |  |  |
| BEVILACQUA PLLC | BEVILACQUA PLLC |  |  |
| 1050 Connecticut Avenue, NW | 1050 Connecticut Avenue, NW |  |  |
| Suite 500 | Suite 500 |  |  |
| Washington, DC 20036 | Washington, DC 20036 |  |  |
| Attention: Louis A. Bevilacqua, Esq. | Attention: Louis A. Bevilacqua, Esq. |  |  |
| Email: <u>lou@bevilacquapllc.com</u>  | Email: <u>lou@bevilacquapllc.com</u>  |  |  |

---

*Signature Page*

---

| | |
|:---|:---|
| **MAJORITY MEMBER** (solely with respect to certain specific indemnification provisions set forth in Article VI) | **MAJORITY MEMBER** (solely with respect to certain specific indemnification provisions set forth in Article VI) |
| **Deepak Chopra** | **Deepak Chopra** |
| By: | /s/ Deepak Chopra |
| 13485 Veteran's Way<br> Suite 105<br> Orlando, FL 32827<br> Email: ________________<br>with a copy, which shall not constitute notice to the Stockholder, to:<br>Gray Robinson, P.A.<br> 333 SE 2<sup>nd</sup> Avenue<br> Suite 3200<br> Miami, Florida 33131<br> Attention: Kevin M. Levy, Esq.<br> Email: <u>kevin.levy@gray-robinson.com</u> | 13485 Veteran's Way<br> Suite 105<br> Orlando, FL 32827<br> Email: ________________<br>with a copy, which shall not constitute notice to the Stockholder, to:<br>Gray Robinson, P.A.<br> 333 SE 2<sup>nd</sup> Avenue<br> Suite 3200<br> Miami, Florida 33131<br> Attention: Kevin M. Levy, Esq.<br> Email: <u>kevin.levy@gray-robinson.com</u> |

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 *Signature Page*

 **<u>Exhibit II</u>**

**Certain Definitions** 

"**Business**" means those activities encompassing Chopra Global Digital, Chopra Global Licensing, and Chopra Global Products, which will be carried on by Buyer following the Closing using the Purchased Assets, certain assets licensed to Buyer pursuant to the License Agreement, and/or certain technology systems and other resources set forth in the Transition Services Agreement.

"**Chopra Global Digital**" means that business of developing, supporting, marketing and selling the Chopra Meditation & Well-being mobile application for iOS and Android and any derivative or successor offerings thereto, and of developing, maintaining and managing the website at www.chopra.com and the content and services provided thereon.

"**Chopra Global Licensing**" means that business of developing, supporting, marketing and selling Chopra programming and other products and services at CIVANA Wellness Resort & Spa in Carefree, Arizona and the Chopra Mind-Body Zone at Lake Nona Performance Center in Lake Nona, Florida and substantially similar or derivative activities that may be conducted in the future on a permanent or consistently episodic basis (i.e. recurring) at other physical locations (including the activities contemplated pursuant to the agreement between Chopra and 11th Street Owners, LLC); for the avoidance of doubt, at the Closing Chopra Global Licensing consists of both a (i) programs model (e.g., CIVANA Wellness Resort & Spa) whereby individuals attend a multi-day comprehensive program that is offered on an ongoing basis and (ii) a membership model (e.g., the Chopra Mind-Body Zone) whereby individuals can participate in Chopra offerings on an a la carte basis regardless of whether they 'pay-as-they-go' or on a periodic 'all-you-can-eat' basis.

"**Chopra Global Products**" means that business of developing, manufacturing, marketing and selling Chopra-branded consumer products, including such products currently sold by Seller or in development (including as set forth in Schedule 1.1(a)) for potential future sale.

"**Net Revenue**" means gross revenue earned from commercial sales of Products and Services, including pursuant to sublicenses, if any, net of sales tax (and excise, VAT and other similar taxes), returns, affiliate fees paid by Buyer and promotions (e.g., discounts), relating to such sales calculated in accordance with generally accepted accounting principles; Net Revenue shall exclude (i) affiliate income earned by Buyer from Seller in connection with Seller's other business activities, if any, and (ii) third-party products and agreements (e.g., ProVEDA) that involve Deepak Chopra and/or use the Deepak Chopra name, provided that such third-party products and agreements do not use the Licensed Intellectual Property (as defined in the License Agreement) or the Purchased Assets. Additionally, Seller Deferred Revenue Liability (net of any amounts that would be netted in calculating Net Revenue) assumed by Buyer at Closing shall be deducted from Net Revenue for purposes of calculating the Royalty Fee. For avoidance of doubt, customer funds collected by Seller prior to Closing to the extent relating to enrollments in the Chopra Health Retreat scheduled to take place after the Closing and transferred to Buyer will be included in the calculation of Net Revenue for purposes of calculating the Royalty Fee.

"**Products and Services**" means products and services sold by or on behalf of Buyer that (i) are, or are derived from, the Purchased Assets, (ii) are related to, or derived from, the Business, (iii) are sold by way of the Licensed Intellectual Property; or (iv) are sold as or under Sub-brands.

"**Seller Deferred Revenue Liability**" means money received by Seller prior to the Closing Date for products or services of the Business to be delivered, provided or performed following the Closing Date.

"**Sub-brands**" means any brands, product names or other nomenclature, other than generic terms, e.g., "detox kit," used with products sold by Licensee, or by any Licensee Affiliate or licensee, *at any* time to the extent that it is or has been used in connection with the Licensed Marks (as defined in Section 2(d)), regardless of whether such use in connection with the Licensed Marks has ceased (i.e., Sub-brand is a perpetual designation, regardless of the manner of subsequent use with respect to the Licensed Marks). For purposes of clarity, the Sub-brands are neither Licensed Marks nor Licensed Intellectual Property.

## Exhibit 10.1

**EXHIBIT 10.1**

**LOCK UP/LEAK OUT AGREEMENT**

**THIS LOCK UP/LEAK OUT AGREEMENT** (the "**Agreement**") is entered into as of this 3<sup>rd</sup> day of March 2023 by and between The Healing Company Inc., a Nevada corporation (the "**Company** "), and Chopra Global, LLC, a Delaware limited liability company (the "**Stockholder** ").

**WHEREAS**, the Company and the Stockholder are parties to that certain Asset Purchase Agreement (the "**Asset Purchase Agreement**") dated as of March 3, 2023, by and among the Company, Chopra HLCO LLC and the Stockholder, pursuant to which the Company acquired certain of the assets and certain of the liabilities of the Stockholder in exchange for cash and shares of common stock, par value $0.001 per share (the "**Common Stock** "), of the Company;

**WHEREAS**, as consideration under the Asset Purchase Agreement, the Stockholder will be issued (i) an aggregate of 1,400,000 shares of Common Stock at the closing of the transaction contemplated by the Asset Purchase Agreement (the "**Closing Shares**") and (ii) up to an additional $1,500,000 of value in shares of Common Stock in three annual earnout payments in accordance with the schedule and conditions set forth in the Asset Purchase Agreement (the "**Earnout Shares**" and together with the Closing Shares, the "**Shares** "); and

**WHEREAS**, as a condition of the Asset Purchase Agreement, the Stockholder has agreed to restrict the sale, assignment, transfer, encumbrance or other disposition of the Shares by the Stockholder as hereinafter provided.

**NOW THEREFORE**, in consideration of the premises and of the terms and conditions contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. **<u>Lock Up/Leak Out Of The Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Lock Up of the Closing Shares</u>. The Stockholder hereby agrees that, without the prior written consent of the Company and except as set forth below, it will not during the period commencing on the date of issuance of the Closing Shares (the "**Closing Shares Issuance Date**") and ending on the third anniversary of the Closing Shares Issuance Date (the "**Lock Up Period** "), (i) offer, pledge, gift, donate, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Closing Shares, or (ii) enter into any swap, option (including, without limitation, put or call options), short sale, future, forward or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Closing Shares, whether any such transaction is to be settled by delivery of shares of the Company's Common Stock or other securities, in cash or otherwise ((i) and (ii) being hereinafter collectively referred to as the "**Lock Up** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Stockholder hereby authorizes the Company during the relevant Lock Up Period to cause any transfer agent for the Closing Shares to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to the Closing Shares subject to the Lock Up for which the Stockholder is the record holder and, in the case of Closing Shares subject to this Agreement for which the Stockholder is not the record holder, agrees during the Lock Up Period to cause the record holder to cause the relevant transfer agent to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to the Closing Shares subject to the Lock Up, if such transfer would constitute a violation or breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Early Release of Closing Shares from the Lock Up</u>. Upon the closing of an underwritten, firm commitment public offering of at least $30,000,000 of the Company's Common Stock (a "Qualified Offering ") or a Change of Control (as defined in the Asset Purchase Agreement) or in the event the Company has terminated reporting under the Securities Exchange Act of 1934, as amended, the Closing Shares shall be released from the Lock Up but shall be subject to the Leak Out (as defined below) provisions set forth immediately below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Leak Out of Closing Shares</u>. Following termination of the Lock Up Period, whether in accordance with Section 1(a) or Section 1(c) above, the Stockholder may sell the Closing Shares as follows (the **"Leak Out "**): No more than Twenty-Five percent (25%) of the Closing Shares may be sold in a calendar quarter, subject to the further restriction that the Stockholder will not sell on any given trading day more than three percent (3%) of the volume weighted average price (the "**VWAP**") of the Common Stock over the previous five trading days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Leak Out of Earnout Shares</u>. Although not subject to a lock-up, from the date of issuance of any of the Earnout Shares, following any restrictive holding period that may be mandated by federal securities laws and regulations, the Stockholder may sell the Earnout Shares as follows: No more than 50% of the Earnout Shares may be sold in the public market per calendar quarter, subject to the further restriction that the Stockholder will not sell on any given trading day more than three percent (3%) of the VWAP of the Common Stock over the previous five trading days.

2. **<u>Releases</u>**. At any time during the Lock Up Period, in the sole discretion of the Company's board of directors, the Company may elect to release some or all of the Closing Shares from the Lock Up in such amounts as it may determine. Additionally, the Company may, in its sole discretion, at any time and from time to time, waive any of the leak out restrictions placed on the Closing Shares and the Earnout Shares. Any release or waiver by the Company of any of the terms and conditions of this Agreement in any instance must be in writing and must be duly executed by the Company and the Stockholder, and shall not be deemed or construed to be a waiver of such term or condition for the future, or of any other term or condition.

3. **<u>Transfer; Successor And Assigns</u>**. The Stockholder may distribute the Closing Shares to the Distributees (as defined in the Asset Purchase Agreement) in accordance with the terms of Section 1(c) above and Section 1.4(d) of the Asset Purchase Agreement. Any attempted sale, transfer, encumbrance or other disposition of the Closing Shares in violation of this Agreement shall be null and void. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

4. **<u>Legends</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Stockholder hereby agrees that each outstanding certificate or book entry notation representing the Closing Shares shall during the Lock Up Period, in addition to any other legends as may be required in compliance with Federal securities laws, bear a legend reading substantially as follows:

THE SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK UP/LEAK OUT AGREEMENT DATED MARCH 3, 2023, BETWEEN THE ISSUER AND THE STOCKHOLDER LISTED ON THE FACE HEREOF. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE ISSUER AND WILL BE PROVIDED TO THE HOLDER HEREOF UPON REQUEST. NO TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH LOCK UP/LEAK OUT AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A copy of this Agreement shall be filed with the corporate secretary of the Company, shall be kept with the records of the Company and shall be made available for inspection by any stockholder of the Company. In addition, a copy of this Agreement shall be filed with the Company's transfer agent of record.

5. **<u>No Other Rights</u>**. The Stockholder understands and agrees that the Company is under no obligation to register the sale, transfer or other disposition of the Closing Shares or the Earnout Shares under the Securities Act or to take any other action necessary in order to make compliance with an exemption from such registration available.

6. **<u>Specific Performance</u>**. The Stockholder acknowledges that there would be no adequate remedy at law if the Stockholder fails to perform any of its obligations hereunder, and accordingly agrees that the Company, in addition to any other remedy to which it may be entitled at law or in equity, shall be entitled to seek specific performance of the obligations of the Stockholder under this Agreement in accordance with the terms and conditions of this Agreement. Any remedy under this Section 6 is subject to certain equitable defenses and to the discretion of the court before which any proceedings therefor may be brought.

7. **<u>Notices</u>**. All notices, statements, instructions or other documents required to be given hereunder shall be in writing and shall be given either personally or by mailing the same in a sealed envelope, first-class mail, postage prepaid and either certified or registered, return receipt requested, or by telecopy, and shall be addressed to the Company at its principal offices and to the Stockholder at the address last appearing on the books and records of the Company.

8. **<u>Governing Law</u>**. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Any suit, action or proceeding with respect to this Agreement shall be brought in the state or federal courts located in New York County in the State of New York. The parties hereto hereby accept the exclusive jurisdiction and venue of those courts for the purpose of any such suit, action or proceeding. The parties hereto hereby irrevocably waive, to the fullest extent permitted by law, any objection that any of them may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any judgment entered by any court in respect thereof brought in New York County, New York, and hereby further irrevocably waive any claim that any suit, action or proceeding brought in New York County, New York has been brought in an inconvenient form.

9. **<u>Counterparts</u>**. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

10. **<u>Amendments And Waivers</u>**. Any term of this Agreement may be amended with the written consent of the Company and the Stockholder. No delay or failure on the part of either party in exercising any power or right under this Agreement shall operate as a waiver of any power or right.

11. **<u>Severability</u>**. If one or more provisions of this Agreement are held to be unenforceable under applicable law, portions of such provisions, or such provisions in their entirety, to the extent necessary, shall be severed from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

12. **<u>Construction</u>**. This Agreement has been entered into freely by each of the parties, following consultation with their respective counsel, and shall be interpreted fairly in accordance with its respective terms, without any construction in favor of or against either party.

13. **<u>Entire Agreement</u>**. This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties hereto are expressly canceled.

[*Remainder of this page left blank*.]

**IN WITNESS WHEREOF**, the parties hereto have executed this Lock Up/Leak Out Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
|  | **COMPANY:**<br>THE HEALING COMPANY INC. | **COMPANY:**<br>THE HEALING COMPANY INC. |
| Date: March 3, 2023 | By: | /s/ Simon Belsham |
|  |  | Simon Belsham<br> Chief Executive Officer  |
|  | **STOCKHOLDER**:<br>Chopra Global LLC | **STOCKHOLDER**:<br>Chopra Global LLC |
| Date: March 3, 2023  | By: | /s/ Mallika Chopra |
|  |  | Mallika Chopra<br> Chief Executive Officer  |

---

## Exhibit 10.2

**EXHIBIT 10.2**

**LICENSE AGREEMENT**

This License Agreement (the "**Agreement**"), effective as of March 3, 2023 (the "**Effective Date**"), is made by and among **Chopra Global, LLC**, a Delaware limited liability company ("**Licensor**"), **THE HEALING COMPANY INC.**, a Nevada corporation ("**HLCO**"), and **Chopra HLCO, LLC**, a Delaware limited liability company and indirect wholly owned subsidiary of HLCO in which the acquired Business will be held and operated ("**Chopra HLCO**" and together with HLCO, the "**Licensee**") (collectively, the "**Parties**," or each of Licensor or Licensee, individually, a "**Party**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Agreement is being entered into pursuant to that certain Asset Purchase Agreement (the "**APA**"), dated as of March 3, 2023, by and among Licensor, HLCO, and Chopra HLCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Licensor owns certain proprietary trademarks, trade names, service marks, copyrights, and other intellectual property and assets used in conducting Licensor's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Licensee wishes to obtain from Licensor, and Licensor is willing to grant to Licensee, a license to use certain of the foregoing intellectual property rights as set forth in, and pursuant to, the terms and conditions of this Agreement.

**AGREEMENT**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Definitions**. Except as otherwise indicated in this Agreement, capitalized terms used, but not defined, in this Agreement shall have the meanings given to them in the APA. In addition, the following terms shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate**" of a Person means any Person that, directly or indirectly, is controlled by, controls or is under common control with such Person. For the purposes of this definition, the term control as used with respect to a Person shall mean the possession, directly or indirectly, of the power to direct, or cause the direction of, the management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Exclusively Licensed Intellectual Property**" means the Licensed Intellectual Property set forth in **Section 1** of **Schedule 1(b).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Field of Use**" means the field of use set forth in the attached **<u>Schedule 1(c)</u>**. For the avoidance of doubt, the Field of Use specifically excludes, among other categories, those categories included in the license granted by Licensor to Integrative Nutrition, LLC ("**IIN**") as described in **<u>Schedule 7(b)</u>** (the "**IIN Field of Use**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**License**" has the meaning set forth in section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Licensed Intellectual Property**" means the intellectual property and proprietary rights of Licensor set forth in the attached **Schedule 1(b)**, which are being granted to Licensee pursuant to the License) and the other terms and conditions set forth in this Agreement. For the avoidance of doubt, the Licensed Intellectual Property includes the Exclusively Licensed Intellectual Property, the Restricted Licensed Intellectual Property and the Non-Exclusively Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Net Revenue**" means gross revenue earned from commercial sales of Products and Services, including pursuant to sublicenses, if any, net of sales tax (and excise, VAT and other similar taxes), returns, affiliate fees paid by Licensee and promotions (e.g., discounts), relating to such sales calculated in accordance with generally accepted accounting principles; Net Revenue shall exclude (i) affiliate income earned by Licensee from Licensor in connection with Licensor's other business activities, if any, and (ii) third-party products and agreements (e.g., ProVEDA) that involve Deepak Chopra and/or use the Deepak Chopra name, provided that such third-party products and agreements do not use the Licensed Intellectual Property or the Purchased Assets, as defined in the APA. Additionally, Seller Deferred Revenue Liability (net of any amounts that would be netted in calculating Net Revenue) assumed by Licensee at Closing shall be deducted from Net Revenue for purposes of calculating the Royalty Fee. For avoidance of doubt, customer funds collected by Licensor prior to Closing to the extent relating to enrollments in the Chopra Health Retreat scheduled to take place after the Closing and transferred to Licensee will be included in the calculation of Net Revenue for purposes of calculating the Royalty Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Non-Exclusively Licensed Intellectual Property**" means the Licensed Intellectual Property set forth in **Section 3** of **Schedule 1(b).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **"Person"** means any individual, firm, corporation, partnership, limited liability company, trust, business trust, joint venture, governmental authority, association or other entity or other form of business organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Products and Services**" means products and services sold by or on behalf of Licensee that (i) are, or are derived from, the Purchased Assets, (ii) are related to or derived from the Business, (iii) are sold by way of the Licensed Intellectual Property, or (iv) are sold as or under Sub-brands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Restricted Licensed Intellectual Property**" means the Licensed Intellectual Property set forth in **Section 2** of **Schedule 1(b).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Royalty Fee**" means the cash payment by Licensee to Licensor equal to five percent (5%) of Net Revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Seller Deferred Revenue Liability**" means money received by Licensor prior to the Closing Date for products or services of the Business to be delivered, provided or performed following the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Sub-brands**" means any brands, product names or other nomenclature, other than generic terms, e.g., "detox kit," used with products sold by Licensee, or by any Licensee Affiliate or licensee, *at any* time to the extent being used or having been used with the Licensed Marks (as defined in Section 2(d)), regardless of whether such use in connection with the Licensed Marks has ceased (i.e., Sub-brand is a perpetual designation, regardless of the manner of subsequent use with respect to the Licensed Marks). For purposes of clarity, the Sub-brands are neither Licensed Marks nor Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Term**" has the meaning given to that term in Section 10(a) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Territor**y" means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Grant ofLicense</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>License</u>. During the Term, and pursuant to the terms and conditions set forth in this Agreement, Licensor hereby grants to Licensee, and Licensee hereby accepts from Licensor, a limited, worldwide, irrevocable (except as expressly set forth in this Agreement), non-transferrable (except as expressly set forth in this Agreement) right and license to use the Licensed Intellectual Property according to the exclusivity and rights of use set forth in Section 2(a)(i), Section 2(a)(ii), Section 2(a)(iii) below ("**License**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensee is granted an exclusive license (subject to Section 7(c)(v)) to use the Exclusively Licensed Intellectual Property and may use the Exclusively Licensed Intellectual Property within or (subject to Section 7(c)(iii)) outside the Field of Use; *provided*, *however*, that use of the Exclusively Licensed Intellectual Property within or in connection with the IIN Field of Use is expressly prohibited without the express written permission of IIN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Licensee is granted an exclusive (only in the Field of Use) license to use the Restricted Licensed Intellectual Property solely in the Field of Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Licensee is granted a non-exclusive license to use the Non-Exclusively Licensed Intellectual Property solely in the Chopra Meditation and Well-being App for iOS and Android or any successor offering thereto (collectively, the "**Chopra App**") and as further strictly limited in **Section 3** of **Schedule 1(b)**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Proprietary Rights</u>. Except for the License as specifically set forth in this Agreement, Licensor reserves all rights currently or in the future held by Licensor in and to the Licensed Intellectual Property and all goodwill associated therewith. The rights licensed pursuant to this Agreement are only licensed to Licensee for the Term, subject to the terms of this Agreement, and are not sold to Licensee. Licensee further acknowledges and agrees that, except as specifically set forth in this Agreement, Licensee will have no rights whatsoever from Licensor with respect to the Licensed Intellectual Property, and shall not interfere with any of Licensor's other rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sublicense Rights</u>. Licensee shall have the right to sublicense its rights in the Licensed Intellectual Property to an Affiliate of Licensee. As a condition to each such sublicense, the applicable Affiliate, if any, shall be required to execute a written sublicense agreement with Licensee with respect to such Licensed Intellectual Property with terms no less protective of Licensor's rights as the terms of this Agreement, including pursuant to Section 10(c), and Licensee shall be, jointly and severally with each such Affiliate, liable to Licensor for each sublicensee's performance of its obligations under such sublicense. Except as provided herein, Licensee shall not sublicense or otherwise authorize any third party, including, but not limited to any Affiliate or other related entity, to display or use any of its rights in the Licensed Intellectual Property and Licensee shall promptly report to Licensor in writing any and all breaches of such restriction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Intellectual Property Transfer**. On the Effective Date, Licensor shall disclose the Licensed Intellectual Property to Licensee in such form and media as may be reasonably requested by Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Payments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Royalty Fee</u>. Licensee shall pay to Licensor the Royalty Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment Terms</u>. Licensee shall pay the Royalty Fee due within forty-five (45) days after the end of each calendar quarter. Licensee shall make all payments due under this Agreement (i) in US dollars by check/wire transfer of immediately available funds to a bank account designated in writing by Licensor; and (ii) without deduction of exchange, collection, transfer or other charges or withholding or other government-imposed fees or taxes, other than those amounts (e.g., sales tax, excise and VAT taxes, etc.) deducted from gross revenue in determining Net Sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Royalty Reports</u>. On or before the due date for all payments to Licensor, Licensee shall submit to Licensor a report (the "**Royalty Report**") setting forth its Royalty Fee calculation for the applicable calendar quarter in sufficient detail to permit confirmation of the accuracy of the Royalty Fee payment made, including: (i) the gross revenue earned from bona fide commercial sales of Products and Services; (ii) the type and amount of all deductions and offsets allocated with respect to such sales; (iii) the calculation of Net Revenue; and (iv) the applicable Royalty Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Records and Audit</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensee shall keep, in accordance with generally accepted accounting principles, records in sufficient detail to verify the completeness and accuracy of any Royalty Report submitted under Section 4(c) and the calculation of payments due to Licensor hereunder. Licensee shall maintain such records for at least three (3) years after each such payment is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Licensor, at its sole expense, may at any time within two (2) years after receiving any Royalty Report from Licensee, nominate an independent certified public accountant ("**Auditor**") for the purpose of verifying such Royalty Report and related payment made to Licensor. Licensee shall permit the Auditor to have access to Licensee's records kept in accordance with Section 4(d)(i) upon reasonable notice to Licensee and during Licensee's normal business hours. All information and materials made available to the Auditor in connection with such audit will be deemed to be Licensee's Confidential Information. Licensor shall provide to Licensee a copy of the Auditor's audit report within ten (10) days of Licensor's receipt of the report. If the report shows Licensee's payments are deficient, Licensee shall pay Licensor the deficient amount within thirty (30) days after Licensee's receipt of the audit report. If any report reflects an underpayment to Licensor of more than five percent (5%) for the period audited, then Licensee shall immediately reimburse Licensor for costs and fees incurred in conducting such audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Affiliate Fee</u>. Licensee will take commercially reasonable measures to promote and offer for sale via the website at www.chopra.com (the "**Website**") and through Licensee's payment and other technology systems, Licensor's 21 Day Meditation Experience ("**21DME**") albums and Licensee shall be entitled to retain an affiliate fee of 20% of such sales (the "**Affiliate Fee**"), net of any amounts payable by Licensee to third-parties, including talent featured in such 21DME albums. Licensor will provide any relevant information necessary for Licensee to calculate the amount due to Licensor in respect of the foregoing 21DME sales and for Licensee to provide reporting and payment to Licensor with respect thereto which shall be effected in a manner similar to that provided with respect to the Royalty Fee (i.e., the provisions of Sections 4(b) through 4(d)(ii) shall apply with respect to 21DME sales facilitated by Licensee). Upon the request of Licensor, Licensee shall provide information regarding the purchasers of such 21DME albums to Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Proprietary Rights</u><u>and Enforcement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to the renewals of any registrations of trademarks set forth in **Schedule 1(b)**, Licensee agrees, upon the written request of Licensor, to cooperate in connection with effecting the same, and in connection therewith to supply fully any and all data, labels, or specimens of the mark required for such renewals, and to execute any and all documents, applications and other instruments which may, in the opinion of Licensor's counsel, be necessary and proper in connection therewith. Licensor agrees that during the Term of this Agreement it shall take such actions as may be necessary to continue in force, renew and otherwise protect the Licensed Marks, and further agrees to indemnify and hold harmless Licensee from all liability, of whatsoever nature, which may arise out of its cooperation, activities and actions pertaining to any such renewals of said registrations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Licensee wishes to use or register a derivative mark (including, but not limited to, a sub-brand) or register a Licensed Mark in a new jurisdiction, then Licensor shall effect such registration at Licensee's reasonable request and Licensor's expense, subject in all cases to Licensor's approval, not to be unreasonably withheld. Licensor will own any such subsequently registered marks and such marks shall become part of the suite of Licensed Marks. For the avoidance of doubt, Licensor may consider the financial return to it (and the timing thereof) from the sale of Products and Services by Licensee bearing the subsequently registered marks in determining whether to approve the registration thereof. Notwithstanding the foregoing, Licensee may bear the cost of registering the foregoing marks in its sole discretion, subject to the terms set forth in this section, including the classification of such marks as Licensed Marks, wholly-owned by Licensor. Licensee expressly acknowledges and understands that the Licensed Marks are not registered in any jurisdictions outside of the United States and that Licensor will not indemnify Licensee for claims resulting from the use of any of the Licensed Marks in a jurisdiction where such Licensed Marks are not registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party shall immediately notify the other Party in writing with reasonable detail of any: (i) actual, suspected, or threatened infringement of the Licensed Intellectual Property, claim that the Licensed Intellectual Property is invalid, or opposition, or other challenge, to the Licensed Intellectual Property; (ii) actual, suspected, or threatened claim that use of the Licensed Intellectual Property infringes the rights of any third party; (iii) person or third party applying for, or being granted, a registered trademark by reason of which that person may be, or has been, granted rights which conflict with any of the rights granted to Licensee under this Agreement; or (iv) other actual, suspected or threatened claim to which the Licensed Intellectual Property may be subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Licensor shall have the sole and exclusive right to undertake proceedings with respect to any past, present, or future infringement of the Licensed Intellectual Property in its own name and at its sole expense, as well as the right to enforce and defend the validity and enforceability of any claim related to the Licensed Intellectual Property in any judicial or administrative proceeding in which the validity and/or enforceability of any of the Licensed Intellectual Property is challenged, including in connection with a declaratory judgment action, a counterclaim or proceedings before the United States Patent and Trademark Office, and any appeals therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Licensor shall be free to undertake proceedings with respect to past, present, or future infringement of any and/or all of the Licensed Intellectual Property as it deems desirable in its sole and absolute discretion. Licensor shall have the sole right to select counsel, control the proceeding, assert counterclaims and cross claims, bond any lien or judgment, take any appeal and to settle on such terms as it, in its sole and absolute discretion, reasonably deems advisable. Licensor shall be entitled to receive and retain any and all damages and settlement proceeds associated with enforcement of the Licensed Intellectual Property, including those associated with any past, present, or future infringement of any and/or all of the Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Licensee believes that Licensor should seek to enforce a right with respect to the Licensed Intellectual Property and Licensor has not done so, then Licensee may provide Licensor with written notice explaining why the enforcement should be undertaken and that Licensee is prepared to undertake such obligation. If Licensor does not agree to enforce such rights itself or does not respond to such written notice within thirty (30) days, then Licensee may, at Licensee's sole cost and expense, undertake such obligation unless and until Licensor either assumes the obligation of provides a reasonable explanation of why undertaking such obligation is not in the best interest of Licensee and Licensor with respect to the Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Licensee shall comply with all reasonable requests by Licensor for assistance in any enforcement and/or USPTO proceedings related to the Licensed Intellectual Property and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples, specimens, and the like.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If so requested by Licensor, Licensee hereby agrees to join with Licensor in the enforcement and defense of the Licensed Intellectual Property in any judicial or administrative proceeding where the validity or enforceability of any of the Licensed Intellectual Property is at issue. All expenses of any such action shall be borne by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Confidentiality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidential Information</u>. Each Party acknowledges that in connection with this Agreement it will receive or gain access to certain non-public, confidential, or proprietary information and materials of the other Party in oral, written, electronic, or other form or media, whether or not such information and materials are marked, designated, or otherwise identified as "confidential" ("**Confidential Information**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exclusions</u>. Confidential Information does not include information that: (i) was already known to the receiving Party or any of its Affiliates, without any obligations to keep it confidential or any restriction on its use, prior to disclosure by the disclosing Party; (ii) was or becomes generally known by the public other than by breach of this Agreement; (iii) was received from a third party not under any confidentiality obligation to the other Party; or (iv) is independently developed without reference to or use of the other Party's Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Confidentiality Obligations; Exceptions</u>. Each Party shall (i) maintain the other Party's Confidential Information in strict confidence using not less than the efforts such Party uses to maintain in confidence its own confidential and proprietary information of similar kind and value but in no event using less than reasonable efforts (ii) not use the other Party's Confidential Information for any purpose, except those permitted by this Agreement (it being understood that this clause shall not create or imply any rights or licenses not expressly granted under this Agreement) and (iii) not disclose the other Party's Confidential Information to any other person or entity, except to its employees or independent contractors who have a need to know such Confidential Information for such Party to exercise its rights or perform its obligations hereunder and who are bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Section 6; *provided, however*, that the receiving Party shall remain responsible for any failure by any such Person who receives such Confidential Information to adhere to the confidentiality provisions herein set forth. Notwithstanding the foregoing, each Party may disclose the other Party's Confidential Information to the limited extent required to comply with applicable law (including any securities law or regulation or the rules of a securities exchange) or a valid order issued by a court or governmental agency of competent jurisdiction; provided that the Party making the required disclosure shall first provide the disclosing Party with: (i) prompt written notice of such requirement so that the disclosing Party may seek, at its sole cost and expense, a protective order or other remedy; and (ii) reasonable assistance, at the disclosing Party's sole cost and expense, in opposing such disclosure or seeking a protective order or other limitations on disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Representations, Warranties, and Covenants</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mutual Representations and Warranties</u>. Each Party represents and warrants to the other Party that, as of the Effective Date: (i) it is duly organized, validly existing, and in good standing under the laws of the state or jurisdiction of its organization; (ii) it has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder; (iii) the execution of this Agreement by its representative whose signature is set forth on the signature page of this Agreement has been duly authorized by all necessary corporate action of such Party; and (iv) when executed and delivered by such Party, this Agreement will constitute the legal, valid, and binding obligation of that Party, enforceable against that Party in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Licensor Representations, Warranties and Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensor represents and warrants that: (i) Licensor either owns the entire right, title, and interest in and to the Licensed Intellectual Property and/or has the right to grant the license and other rights hereunder; (ii) to Licensor's knowledge, use of the Licensed Intellectual Property permitted under this Agreement does not infringe any intellectual property rights of any other person or entity; and (iii) Licensor has not granted to any third party any licenses or other rights under the Licensed Intellectual Property that conflict with rights granted to Licensee under this Agreement (it being agreed and acknowledged among the Parties that the license granted to IIN as indicated and described in **<u>Schedule 7(b)</u>** and any other rights retained by Licensor or granted by Licensor outside of the Field of Use do not conflict with the rights granted to Licensee under this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Licensor expressly acknowledges and agrees that Licensor shall not use and shall not authorize any third party to use the Licensed Intellectual Property in connection with a Chopra**-**branded subscription offering substantially similar or directly competitive to the Chopra Digital Properties (as defined on **<u>Schedule 1(c)</u>**);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Licensor has no agreements with any other Person, firm or corporation which will in any way interfere with any rights granted to Licensee under this Agreement, it being understood and acknowledged by Licensee that Licensor's use, or authorization of others to use, any Licensed Intellectual Property outside the Field of Use during the Term, other than the Exclusively Licensed Intellectual Property, shall not be deemed to interfere with any rights granted to Licensee under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Licensor shall not, and shall not allow any Affiliate to, (a) engage in any business that holds Licensee and/or any of Licensee's rights under this Agreement in a negative light or is otherwise detrimental to Licensee's name or brand or (b) take any action that is reasonably likely to diminish, tarnish or dilute the reputation of Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Licensee Representations, Warranties and Covenants.</u> Licensee represents, warrants and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensee shall not and shall not allow any third-party to (a) engage in any business that holds Licensor and/or any of Licensor's rights under this Agreement in a negative light or is otherwise detrimental to Licensor's name or brand or to the Licensed Intellectual Property; (b) use any Licensed Intellectual Property in a manner that is defamatory, obscene, unlawful, or that may be injurious to Licensor's name or brand; (c) in any way or at any time contest or dispute Licensor's rights in the Licensed Intellectual Property or (d) take any other action that impairs the rights of Licensor in and to the Licensed Marks, or that is reasonably likely to diminish, tarnish or dilute the validity, enforceability or reputation of the Licensed Marks or Licensor's image or reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To preserve the inherent value of the Licensed Intellectual Property, including, without limitation, each of the Licensed Marks, Licensee will use best efforts to ensure that Licensee maintains the high quality of the Business and the operation thereof and use of the Licensed Intellectual Property equal to the high standards prevailing with respect thereto by Licensee in its similar operations and activities. Licensee further agrees to use the Licensed Intellectual Property in accordance with the Guidelines and such quality standards as may be reasonably established by Licensor and communicated to Licensee from time to time in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in this Agreement, Licensee shall only use the Licensed Intellectual Property in connection with the provision of products, services, or information primarily focused on the advancement of health and well-being and which are scientifically validated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Licensee shall not, anywhere in the world, register any marks that are the same as, or that a reasonable person would find confusingly similar to, the Licensed Marks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Licensee will work collaboratively and in good faith with Licensor and IIN in the management and use of the Exclusively Licensed Intellectual Property for the benefit of all such parties, including by providing reasonable access to the Exclusively Licensed Intellectual Property to such parties for the purposes of offering or marketing such parties' Chopra-branded products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Licensee will develop and promote the sale of Products and Services through the exploitation of the Licensed Intellectual Property, pursuant to the terms and conditions of this Agreement and shall not take any action, directly or indirectly, for the purpose of avoiding or otherwise diminishing the Royalty Fee payable to Licensor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Licensee has, and shall maintain, commercially reasonable administrative, technical and organizational processes and procedures to protect all personal data from unauthorized access and/or use, which such processes and procedures meet or exceed industry standards. Licensee has been in compliance, and shall continue to comply, with all applicable data privacy and security laws, rules and regulations, as well as any and all other applicable laws, rules and regulations. Additionally, Licensee shall comply with the CAN-SPAM Act, TCPA, and all other applicable marketing laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Licensee shall comply with all of the terms and conditions of the Transition Services Agreement ("**TSA**") to be executed between the Parties in connection with the APA and acknowledges and agrees that in the event of a conflict between this Agreement and the TSA, the TSA shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Licensee shall continue to provide past (i.e., prior to the Effective Date) and future purchasers of 21DME albums with continued access to such albums via the Chopra App as well as via the Website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) In the event the delivery of any products or services of the Business that are purchased prior to the Effective Date extends beyond the Effective Date, Licensee shall ensure such delivery in the manner consistent with Licensor's recent practices and the reasonable expectations of the applicable purchasers with respect to such products or services. For example, in the event a subscriber to the Chopra App purchases an annual subscription to the Chopra App prior to the Effective Date, Licensee shall take all commercially reasonable measures to provide the Chopra App for the duration of the subscription term at substantially the same level of service as provided by Licensor immediately prior to the Effective Date, without diminution in the functionality or performance of, or content available via, the Chopra App. Additionally, Licensee shall take all reasonable effort to operate the Business on an ongoing basis in a manner intended to maximize its long-term financial performance while avoiding actions or inactions that are intended to or result in a reduction of Net Revenues for the purpose of avoiding Earnout Payments or reducing Royalty Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Throughout the Term and for a period of two (2) years thereafter, Licensee will maintain at all times and at its own expense the insurance coverage described on **<u>Schedule 7(c)</u>** and name Licensor as an additional insured. At Licensor's request, Licensee shall furnish to Licensor a Certificate of Insurance evidencing the coverage required by this Section within five (5) days of Licensor's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Disclaimer</u>. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 7, LICENSOR DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, CONCERNING THE LICENSED INTELLECTUAL PROPERTY, INCLUDING AS TO THE ACCURACY, COMPLETENESS, OR USEFULNESS FOR ANY PURPOSE OF THE LICENSED INTELLECTUAL PROPERTY, LICENSOR SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT AND WARRANTIES ARISING FROM A COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE, OR TRADE PRACTICE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By Licensor</u>. Licensor shall indemnify, defend, and hold harmless Licensee and its Affiliates, and each of Licensee's and its Affiliates' respective officers, directors, employees, and agents (each, a "**Licensee Indemnified Party**") against all losses, damages, liabilities and costs (including reasonable attorneys' fees) ("**Losses**") resulting from any third-party claim, suit, action, or other proceeding ("**Third-Party Claim**") arising out of Licensor's breach of any representation, warranty, covenant, or obligation under this Agreement or alleging that the use of the Licensed Intellectual Property infringes or misappropriates any third party's (i) U.S. intellectual property rights, or (ii) intellectual property rights in jurisdictions outside of the United States if, and only if Licensor has specifically agreed to provide such indemnification in an amendment to this Agreement, *provided*, *however*, that Licensor will have no obligation for any Third-Party Claim that arises from (i) modifications to the Licensed Intellectual Property by any Licensee Indemnified Party or sublicensee thereof; (ii) specifications provided by or on behalf of any Licensee Indemnified Party or sublicensee thereof; (iii) use of the Licensed Intellectual Property by any Licensee Indemnified Party or sublicensee thereof other than as specified in or permitted pursuant to this Agreement; (iv) use of the Licensed Intellectual Property by any Licensee Indemnified Party or sublicensee thereof in combination with other content and marks, to the extent the infringement arises out of such combination, or (v) continued use of the Licensed Intellectual Property by any Licensee Indemnified Party or sublicensee thereof following notice from Licensor to cease use of the Licensed Intellectual Property. Licensor's sole liability, and Licensee's sole remedy, for a claim that the Licensed Intellectual Property infringes the intellectual property rights of a third party is the indemnification obligation set forth in this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By Licensee</u>. Licensee shall indemnify, defend, and hold harmless Licensor and its Affiliates, and each of Licensor's and its Affiliates' respective officers, directors, employees, and agents (each, a "**Licensor Indemnified Party**") against all Losses resulting from: (i) any unauthorized use or disclosure of the Licensed Intellectual Property; or (ii) any Third-Party Claim arising out of (x) Licensee's breach of any representation, warranty, covenant, or obligation under this Agreement, (y) a claim that any product or service of Licensee infringes any intellectual property rights of a third-party, or (z) Licensee's operation of the Business, or use of the Licensed Intellectual Property or Purchased Assets, subject in all cases to the provisions of Section 8(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An Indemnified Party, which for purposes hereof may be a Licensee Indemnified Party or a Licensor Indemnified Party, as the case may be, shall: (i) promptly notify an indemnifying party hereunder in writing of any known or reasonably foreseeable claim subject to indemnification (provided that failure to provide such prompt notice shall not alleviate the indemnification obligation, except, and only to the extent, such failure has a material adverse effect on the defense of the claim); (ii) allow the indemnifying party sole control of the defense and settlement of the claim (subject to the limitations set forth below and provided that if the indemnifying party materially fails to defend the claim, then the Indemnified Party may assume control of the defense of the claim at the sole cost of the indemnifying party); and (iii) provide assistance, at the indemnifying party's sole cost and expense, in defending or settling the claim. The indemnifying party shall (i) keep the Indemnified Party informed of, and consult with the Indemnified Party in connection with, the progress of the settlement or litigation of any claim subject to indemnification; and (ii) not settle any such claim in a manner that does not unconditionally release the Indemnified Party without the Indemnified Party's prior, written consent (not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Limitation of Liability</u>**. TO THE MAXIMUM EXTENT PROVIDED BY APPLICABLE LAW, EXCEPT TO THE EXTENT ARISING OUT OF (1) A PARTY'S INDEMNIFICATION OBLIGATIONS; (2) A PARTY'S GROSS NEGLIGENCE, FRAUD, OR WILLFUL MISCONDUCT; OR (3) ANY BREACH OF A PARTY'S CONFIDENTIALITY, SECURITY, OR DATA PROTECTION OBLIGATIONS SET FORTH IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY LOSS OR UNAUTHORIZED ACCESS TO OR USE OR DISCLOSURE OF A PARTY'S CONFIDENTIAL INFORMATION, NEITHER PARTY WILL BE LIABLE UNDER ANY CIRCUMSTANCES OR UNDER ANY LEGAL THEORY, WHETHER IN TORT, CONTRACT, OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR SUBSTITUTE SERVICES, LOSS OF USE, LOSS OF PROFITS, LOSS OF GOODWILL, OR OTHER INTANGIBLE LOSSES (EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES). TO THE MAXIMUM EXTENT PROVIDED BY APPLICABLE LAW, EXCEPT TO THE EXTENT ARISING OUT OF (1) A PARTY'S INDEMNIFICATION OBLIGATIONS; (2) A PARTY'S GROSS NEGLIGENCE, FRAUD, OR WILLFUL MISCONDUCT; (3) ANY BREACH OF A PARTY'S CONFIDENTIALITY, SECURITY, OR DATA PROTECTION OBLIGATIONS SET FORTH IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY LOSS OR UNAUTHORIZED ACCESS TO OR USE OR DISCLOSURE OF A PARTY'S CONFIDENTIAL INFORMATION; OR (4) LICENSEE'S OBLIGATION TO PAY ALL ROYALTIES DUE LICENSOR, IN NO EVENT SHALL EITHER PARTY'S TOTAL LIABILITY TO THE OTHER FOR ANY CLAIM ARISING OUT OF THIS AGREEMENT UNDER ANY LEGAL THEORY, WHETHER IN TORT, CONTRACT, OR OTHERWISE, EXCEED THE AMOUNTS PAID OR PAYABLE BY LICENSEE TO LICENSOR DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRIOR TO THE EVENTS GIVING RISE TO THE CLAIM. TO THE EXTENT ARISING OUT OF (1) A PARTY'S INDEMNIFICATION OBLIGATIONS; (2) A PARTY'S GROSS NEGLIGENCE, FRAUD, OR WILLFUL MISCONDUCT; OR (3) ANY BREACH OF A PARTY'S CONFIDENTIALITY, SECURITY, OR DATA PROTECTION OBLIGATIONS SET FORTH IN THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY LOSS OR UNAUTHORIZED ACCESS TO OR USE OR DISCLOSURE OF A PARTY'S CONFIDENTIAL INFORMATION, IN NO EVENT SHALL EITHER PARTY'S TOTAL LIABILITY TO THE OTHER FOR ANY CLAIM ARISING OUT OF THIS AGREEMENT UNDER ANY LEGAL THEORY, WHETHER IN TORT, CONTRACT, OR OTHERWISE, EXCEED THE GREATER OF (A) THE AMOUNTS PAID OR PAYABLE BY LICENSEE TO LICENSOR DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRIOR TO THE EVENTS GIVING RISE TO THE CLAIM MULTIPLIED BY TWO (2); OR (B) THE APPLICABLE INSURANCE LIMITS SET FORTH IN THIS AGREEMENT. THE PARTIES ACKNOWLEDGE AND AGREE THAT THESE LIMITATIONS OF LIABILITY WERE SPECIFICALLY BARGAINED FOR AND THAT EACH PARTY'S WILLINGNESS TO AGREE TO THESE LIMITATIONS OF LIABILITY ARE MATERIAL TO SUCH PARTY'S DECISION TO ENTER INTO THIS AGREEMENT AND SHALL CONTINUE TO APPLY EVEN IF ANY EXCLUSIVE REMEDY HEREUNDER FAILS OF ITS ESSENTIAL PURPOSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Term and Termination</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Term</u>. This Agreement shall commence on the Effective Date and shall continue in perpetuity (the "**Term**") unless this Agreement is rightfully terminated by either party in accordance with the provisions of Section 10(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination For Cause</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Breach</u>. Either Party may terminate this Agreement in its entirety immediately upon notice to the other Party if such other Party materially breaches this Agreement and has not cured such breach to the reasonable satisfaction of the non-breaching Party within thirty (30) days after notice of such breach from the non-breaching Party *provided*, *however*, that (i) if the breaching Party, in good faith, diligently seeks to cure the alleged material breach, the non-breaching Party may, but is not obligated to, agree to extend the cure period to a time period that is reasonable under the circumstances; and (ii) if the material breach is not curable, the non-breaching Party may terminate this Agreement upon providing written notice of termination to the breaching Party. For purposes of this subsection, a failure by Licensee to pay to Licensor any amounts payable as due pursuant to the APA shall be deemed a material breach subject to the termination provisions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Termination of the APA</u>. In the event the APA is terminated for any reason, this Agreement shall concurrently and immediately terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Insolvency</u>. Either Party may terminate this Agreement in its entirety immediately upon notice to the other Party if such other Party: (A) is dissolved or liquidated or takes any corporate action for such purpose; (B) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due; (C) files or has filed against it a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law; (D) makes or seeks to make a general assignment for the benefit of creditors; or (E) applies for or has a receiver, trustee, custodian, or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon termination of this Agreement for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The License shall terminate and all rights to the Licensed Intellectual Property shall revert to Licensor and Licensee shall immediately cease and desist from using the Licensed Intellectual Property, including by discontinuing and removing all instances of such use in existence as of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each Party shall promptly return to the other Party all relevant records and materials in such Party's possession or control containing Confidential Information of the other Party; provided, however, that within thirty (30) days following such termination, Licensee shall, at Licensor's option, either return to Licensor or destroy all products bearing the Licensed Marks in Licensee's possession, and destroy all notes, analyses, summaries, and other materials prepared by Licensee relating to the Licensed Intellectual Property, and certify in writing to Licensor the destruction of such Confidential Information and related materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) All sublicenses granted by Licensee will automatically terminate; provided, however, that upon the request of any sublicensee who is in good standing under this Agreement and the applicable sublicense agreement, Licensor may, in its sole discretion, elect to continue such sublicense under a direct license agreement with such sublicensee under the Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If this Agreement is terminated by Licensee pursuant to the provisions of Section 10(b)(i), then the Royalty Fee obligations of Licensee shall not survive termination of this Agreement; provided, however, that upon such termination, Licensee shall pay to Licensor the Royalty Fee it would have otherwise paid following such termination as a result of the subsequent recognition of Net Revenue arising from any sales, bookings or other transactions entered into prior to termination and, further, Licensee shall have the right to continue to use under a non-Licensor owned brand any of the Sub-brands or other assets jointly developed under this Agreement, provided that such use does not include the use of any Licensed Intellectual Property in any manner whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If this Agreement is terminated for any reason other than by Licensee pursuant to the provisions of Section 10(b)(i), then the Royalty Fee obligations of Licensee shall survive termination of this Agreement. For purposes of clarity, under the condition stated in the immediately previous sentence, Licensee shall continue to pay Licensor the Royalty Fee pursuant to the terms of Section 4(a) through Section 4(d) and in accordance with the definitions related thereto as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything to the contrary herein contained, including Section 10(c)(ii), all obligations of payment incurred or accrued prior to the effective date of the termination of this Agreement and the provisions in Sections 4(a), 4(b), 4(c), 4(d), 5(c), 6, 7(d), 8, 9, 10(c), 12 and 13 will survive the expiration or earlier termination of this Agreement.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>RESERVED.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Assignment</u>**. Neither Party may assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or performance, under this Agreement, in each case whether voluntarily, involuntarily, by operation of law, or otherwise, without the other Party's prior written consent, which consent shall not be unreasonably withheld or delayed, except that either Party may make such an assignment, delegation, or other transfer, in whole or in part, without the other Party's consent: (a) to an Affiliate; or (b) in connection with the transfer or sale of all or substantially all of the business or assets of the Party relating to this Agreement and the APA (for purposes of clarity, this License Agreement cannot be assigned separate and apart from the Purchased Assets and the obligations of Licensee set forth in the APA). No assignment, delegation or other transfer will relieve either Party of any of its obligations or performance under this Agreement, unless and only to the extent that the other Party has consented to such assignment, delegation or other transfer in writing. Any purported assignment, delegation, or other transfer in violation of this Section 12 is void. This Agreement is binding upon and inures to the benefit of the Parties and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Further Assurances</u>. Each Party shall, and shall cause their respective Affiliates to, upon the request of the other Party, execute such documents and take such further actions as may be necessary to give full effect to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Independent Contractors</u>. The relationship between the Parties is that of independent contractors. Nothing contained in this Agreement creates any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship between the parties, and neither Party has authority to contract for or bind the other party in any manner whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Public Statements</u>. Neither Party may issue or release any announcement, statement, press release, or other publicity or marketing materials relating to this Agreement or, unless expressly permitted under this Agreement, otherwise use the other party's trademarks, service marks, trade names, logos, domain names, or other indicia of source, association, or sponsorship, in each case, without the other Party's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices</u>. All notices, requests, consents, claims, demands, waivers, and other communications hereunder must be in writing and sent to the respective Party at the addresses indicated on the signature page of this Agreement (or at such other address for a Party as may be specified in a notice given in accordance with this Section). Notices sent in accordance with this Section will be deemed effective: (i) when received, if delivered by hand (with written confirmation of receipt); (ii) when received, if sent by a nationally recognized overnight courier (receipt requested); or (iii) on the date sent by facsimile or email (in each case, with confirmation of transmission), if sent during normal business hours of the recipient, and on the next day if sent after normal business hours of the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Interpretation</u>. For purposes of this Agreement: (i) the words "include," "includes," and "including" will be deemed to be followed by the words "without limitation"; (ii) the word "or" is not exclusive; and (iii) the words "herein," "hereof," "hereby," "hereto," and "hereunder" refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (i) to Sections and Schedules refer to the Sections of and Schedules attached to this Agreement; (ii) to an agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions thereof; and (iii) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement will be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing any instrument to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement</u>. This Agreement, together with the APA, the TSA, and all Schedules and any other documents incorporated herein by reference, constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit, or remedy of any nature whatsoever, under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Amendment; Waiver</u>. No amendment to this Agreement will be effective unless it is in writing and signed by the Parties. No waiver by any Party of any of the provisions hereof will be effective unless explicitly set forth in writing and signed by the waiving Party. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power, or privilege arising from this Agreement will operate or be construed as a waiver thereof; nor will any single or partial waiver of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability will not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Governing Law; Submission to Jurisdiction</u>. This Agreement shall be governed in all respects, including validity, interpretation and effect, by the internal laws of the State of New York without regard to conflict of law principles thereof. Any dispute shall be resolved in the state or federal courts located in New York County, New York. The provisions of this Section 13(j) shall survive the entry of any judgment, and will not merge, or be deemed to have merged, into any judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Equitable Relief</u>. Each Party acknowledges that a breach by the other Party of this Agreement may cause the non-breaching Party irreparable harm, for which an award of damages would not be adequate compensation and, in the event of such a breach or threatened breach, the non-breaching Party will be entitled to seek equitable relief, including in the form of a restraining order, orders for preliminary or permanent injunction, specific performance, and any other relief that may be available from any court, and the Parties hereby waive any requirement for the securing or posting of any bond or the showing of actual monetary damages in connection with such relief. These remedies are not exclusive but are in addition to all other remedies available under this Agreement at law or in equity, subject to any express exclusions or limitations in this Agreement to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will be deemed to be one and the same agreement. Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any signature appearing on this Agreement or such other documents are the same as handwritten signatures for the purpose of validity, enforceability and admissibility.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Licensor, HLCO and Chopra HLCO have executed this License Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **LICENSOR:** | **LICENSOR:** | **LICENSEE:** | **LICENSEE:** |
| **CHOPRA GLOBAL, LLC** | **CHOPRA GLOBAL, LLC** | **THE HEALING COMPANY INC.** | **THE HEALING COMPANY INC.** |
| By: | /s/ Mallika Chopra | By: | /s/ Simon Belsham |
| Name: | Mallika Chopra | Name: | Simon Belsham |
| Title: | Chief Executive Officer | Title: | Chief Executive Officer |
| Address | Address | **CHOPRA HLCO, LLC** | **CHOPRA HLCO, LLC** |
| Attention: Mallika Chopra | Attention: Mallika Chopra | By: |  |
| Email:  |  | Name:  | Simon Belsham |
|  |  | Title: | Authorized Officer |
| with a copy, which shall not constitute notice to <br> Licensor, to: [Licensor's counsel] | with a copy, which shall not constitute notice to <br> Licensor, to: [Licensor's counsel] |  |  |
|  |  | Ten Grand Street, 11<sup>th</sup> Floor | Ten Grand Street, 11<sup>th</sup> Floor |
| Name: |  | Brooklyn, NY 11249 | Brooklyn, NY 11249 |
| Address: | Address: | Attention: Simon Belsham  | Attention: Simon Belsham  |
|  |  | Email: simon@healingcompany.co | Email: simon@healingcompany.co |
| Attention:  | Attention:  |  |  |
| Email:  |  | with a copy, which shall not constitute notice to Licensee, to:<br> BEVILACQUA PLLC<br> 1050 Connecticut Avenue, NW<br> Suite 500<br> Washington, DC 20036<br> Attention: Louis A. Bevilacqua, Esq.<br> Email: lou@bevilacquapllc.com | with a copy, which shall not constitute notice to Licensee, to:<br> BEVILACQUA PLLC<br> 1050 Connecticut Avenue, NW<br> Suite 500<br> Washington, DC 20036<br> Attention: Louis A. Bevilacqua, Esq.<br> Email: lou@bevilacquapllc.com |

---

## Exhibit 10.3

**EXHIBIT 10.3**

**Assignment and Assumption Agreement**

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "<u>Agreement</u>"), effective as of March 3, 2023 (the "<u>Effective Date</u>"), is made by and among Chopra Global, LLC, a Delaware limited liability company ("**Seller**"), and The Healing Company Inc., a Nevada corporation ("**HLCO**"), and Chopra HLCO LLC, a Delaware limited liability company and indirect wholly owned subsidiary of HLCO (together with HLCO, the "**Buyer**")

WHEREAS, Seller, Buyer and solely with respect to the indemnification provisions of Article VI, Deepak Chopra, the majority member of Seller, have entered into that certain Asset Purchase Agreement, dated of even date herewith (the "**<u>Purchase Agreement</u>**"), pursuant to which Seller has agreed to assign all of its right, title and interest in, to and under all of the Purchased Assets, free and clear of all mortgages, liens, security interests, pledges, charges or encumbrances (except those specifically set forth in the Purchase Agreement), and Buyer has agreed to assume and pay, perform and discharge the Assumed Liabilities and Assumed Contracts.

**NOW, THEREFORE**, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. <u>Definitions</u>. All capitalized terms used in this Agreement, but not defined in this Agreement, shall have the meanings assigned to such terms in the Purchase Agreement.

2. <u>Assignment and Assumption</u>. Seller hereby sells, assigns, transfers, conveys and delivers to Buyer all of such Seller's right, title and interest in, to and under the Purchased Assets, Assumed Liabilities, and Assumed Contracts. Buyer hereby accepts such assignment and assumes all of the Seller's duties and obligations under the Purchased Assets, Assumed Liabilities, and Assumed Contracts and agrees to pay, perform and discharge, as and when due, all of the obligations of Seller under the Purchased Assets, Assumed Liabilities, and Assumed Contracts.

3. <u>Terms of the Purchase Agreement</u>. The terms of the Purchase Agreement, including, but not limited to, the representations, warranties, covenants, agreements, obligations and indemnities relating to the Purchased Assets, Assumed Liabilities, and Assumed Contracts are incorporated herein by this reference. The parties hereto acknowledge and agree that the representations, warranties, covenants, agreements, obligations and indemnities contained in the Purchase Agreement shall not be superseded by this Agreement, but shall remain in full force and effect to the full extent provided therein. In the event of any conflict or inconsistency between the terms of the Purchase Agreement and the terms of this Agreement, the terms of the Purchase Agreement shall govern.

4. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

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

6. <u>Further Assurances</u>. Each of the parties hereto shall execute and deliver, at the reasonable request of the other party hereto, such additional documents, instruments, conveyances and assurances and take such further actions as such other party may reasonably request to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

[*Remainder of page intentionally left blank; signature page follows.*]

**IN WITNESS WHEREOF**, the parties have executed this Assignment and Assumption Agreement effective as of the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **BUYER:** | **BUYER:** | **SELLER:** | **SELLER:** |
| **THE HEALING COMPANY INC.** | **THE HEALING COMPANY INC.** | **CHOPRA GLOBAL, LLC** | **CHOPRA GLOBAL, LLC** |
| By: | /s/ Simon Belsham | By: | /s/ Mallika Chopra |
| Name: | Simon Belsham | Name: | Mallika Chopra |
| Title:  | Chief Executive Officer | Title:  | Chief Executive Officer |
| Ten Grand Street, 11<sup>th</sup> Floor<br> Brooklyn, NY 11249<br> Attention: Simon Belsham <br> Email: <u>simon@healingcompany.com</u> | Ten Grand Street, 11<sup>th</sup> Floor<br> Brooklyn, NY 11249<br> Attention: Simon Belsham <br> Email: <u>simon@healingcompany.com</u> | 13485 Veteran's Way<br> Suite 105<br> Orlando, FL 32827<br> Attention: Mallika Chopra<br> Email: <u>mallika@chopra.com</u> | 13485 Veteran's Way<br> Suite 105<br> Orlando, FL 32827<br> Attention: Mallika Chopra<br> Email: <u>mallika@chopra.com</u> |
| **CHOPRA HLCO LLC** | **CHOPRA HLCO LLC** |  |  |
| **By: HLCO Borrower LLC, Sole Member** | **By: HLCO Borrower LLC, Sole Member** |  |  |
| **By: The Healing Company Inc., as Sole Member of HLCO Borrower LLC** | **By: The Healing Company Inc., as Sole Member of HLCO Borrower LLC** |  |  |
| By:  | /s/ Simon Belsham |  |  |
| Name:  | Simon Belsham |  |  |
| Title:  | Chief Executive Officer |  |  |
| Ten Grand Street, 11<sup>th</sup> Floor<br> Brooklyn, NY 11249<br> Attention: Simon Belsham<br> Email: <u>simon@healingcompany.com</u> | Ten Grand Street, 11<sup>th</sup> Floor<br> Brooklyn, NY 11249<br> Attention: Simon Belsham<br> Email: <u>simon@healingcompany.com</u> |  |  |

---

2<br>

## Exhibit 10.4

**EXHIBIT 10.4**

**BILL OF SALE**

For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Chopra Global, LLC, a Delaware limited liability company ("**<u>Seller</u>**"), hereby sells, assigns, transfers, conveys and delivers to The Healing Company Inc., a Nevada corporation ("**HLCO**"), and Chopra HLCO, LLC, a Delaware limited liability company and indirect wholly owned subsidiary of HLCO (together with HLCO, the "**Buyer**"), all of Seller's right, title and interest in, to and under all of the Purchased Assets, free and clear of all mortgages, liens, security interests, pledges, charges or encumbrances (except those specifically set forth in the Purchase Agreement (as defined below)), to have and to hold the same unto Buyer, its successors and assigns, forever.

All capitalized terms used in this bill of sale ("**<u>Bill of Sale</u>**"), but not defined in this Bill of Sale shall have the meanings assigned to such terms in that certain Asset Purchase Agreement, dated of even date with this Bill of Sale ("**Purchase Agreement**"), by and among Buyer, Seller and solely with respect to the indemnification provisions of Article VI, Deepak Chopra, the majority member of Seller.

Buyer acknowledges that Seller makes no representation or warranty with respect to the assets being conveyed by this Bill of Sale and/or the Purchase Agreement, except as specifically set forth in the Purchase Agreement.

Seller for itself, its successors and assigns, hereby covenants and agrees that, at any time and from time to time upon the reasonable written request of Buyer, Seller will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably required by Buyer in order to assign, transfer, set over, convey, assure and confirm unto and vest in Buyer, its successors and assigns, title to the Purchased Assets.

**IN WITNESS WHEREOF**, SELLER has duly executed this Bill of Sale as of March 3, 2023

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| | |
|:---|:---|
| **SELLER:** | **SELLER:** |
| **CHOPRA GLOBAL LLC** | **CHOPRA GLOBAL LLC** |
| By: | /s/ Mallika Chopra |
| Name:  | Mallika Chopra |
| Title: | Chief Executive Officer |
|  | Address: 13485 Veteran's Way, Suite 105, Orlando, FL 32827<br> Email: <u>mallika@chopra.com</u> |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](thcc_ex991img2.jpg)

**HL: The Healing Company [OTC: HLCO] acquires Chopra Global's wellbeing experiences businesses, deepening partnership with wellness icon, Dr. Deepak Chopra**

· This is the second acquisition in four months for The Healing Company, who acquired leading plant-based superfoods brand Your Super, late last year

· The Chopra Global wellbeing experiences businesses, including physical products, the meditation and wellbeing app, and licensed experiences will join The Healing Company's community of healing brands

· With a community of 20M social followers, 6M email database, 7M web traffic, 1M app downloads, top rated 4.9 star app, and more than 90 books authored, Dr. Deepak Chopra, M.D.'s reach and impact in the integrative healing movement is unrivaled

· Landmark partnership signals new era of accelerated growth and impact for Chopra Global, advancing a culture of wellbeing at the nexus of high-growth markets including integrative healing ($100B market, 22% CAGR), Ayurveda ($7B, 15% CAGR), and meditation ($5B, 18.5% CAGR)

· Deepak will continue in his role as Chief Scientific Advisor to The Healing Company, driving innovation and setting a rigorous scientific standard for all brands within the portfolio

![](thcc_ex991img1.jpg)

**NEW YORK, NY - March 7, 2023.** Today, The Healing Company [OTC: HLCO] and Dr. Deepak Chopra, M.D., are thrilled to announce The Healing Company's acquisition of Chopra Global's wellbeing experiences businesses, in a landmark partnership for both companies. The acquisition includes Chopra's physical product line, the Chopra meditation & wellbeing app, and licensed experiences including The Chopra Health Retreat at CIVANA Wellness Resort & Spa and the Chopra Mind-Body Zone and Spa at the Lake Nona Performance Club. Concurrently, the organizations entered into a perpetual license agreement to include the Chopra content, community, and brand. Founded in 2022, The Healing Company is building a community of powerful healing brands through the acquisition of companies in the wellness, supplement, and nutraceutical spaces.

One of TIME Magazine's Top 100 most influential people, Dr. Deepak Chopra has spent a lifetime bringing integrative healing to hundreds of millions of people, authoring more than 90 books, creating educational content for his 20M social followers, leading thousands of events, and developing best-in-class healing products and experiences that have changed lives worldwide. The guiding mission of Chopra Global—personal transformation for collective wellbeing—is anchored by his vision to empower one billion people to create a more peaceful, just, sustainable, healthy, and joyful world.

With this bold vision in mind The Healing Company and Chopra Global enter into this partnership, working to usher the brand into a new era of growth. Chopra Global sits at the nexus of three high growth sectors: integrative healing ($100B market, 22% CAGR), Ayurveda ($7B, 15% CAGR), and meditation ($5B, 30% CAGR), and reached over 100 million people last year. Paired with The Healing Company's deep expertise in S-commerce, media, storytelling, growth, and distribution, and strategy to build a community of powerful healing brands, the partnership will aim to amplify the reach and impact of Chopra's world-class wellbeing experiences. *"I am deeply inspired by The Healing Company's vision and leadership, and am very excited to work together to launch new products and practices that meet the Chopra community—and the world's—healing needs,*" **says Dr. Deepak Chopra, M.D.**

This is the second acquisition in four months for The Healing Company, with leading plant-based superfoods brand Your Super joining the brand community late last year.

**Dr. Deepak Chopra, MD, says:** *"The world's healthcare system is in crisis. The Healing Company is a perfect partner for Chopra Global, with the expertise and leadership to propel our mission of helping 1 billion people access healing so that we can collectively move in the direction of a more just, sustainable, peaceful, healthy, and joyful world."*

**Simon Belsham, CEO and Co-founder of The Healing Company (ex-Jet.com and Equinox Media President) adds:** *"Chopra Global is placed at the intersection of explosive global markets: Ayurveda, meditation, and integrated healing, and is poised to become the leading provider in this space. The company has already reached millions through world-class healing experiences, content, and products, and we look forward to accelerating this further at The Healing Company."*

**Anabel Oelmann, Director and Co-Founder of The Healing Company, says:** *"We are deeply inspired by Deepak's vision to help 1 billion people access healing. As we've built our partnership over the last year, our conviction in mission alignment and our ability to help him achieve this aim have only grown. We could not be more excited for this next chapter in our partnership, and all we can do together to bring leading science-backed healing solutions to the world."*

**ENDS**

For more information please contact thehealingco@ragency.com

All press imagery and videos can be found here.

**About Deepak Chopra:**

DEEPAK CHOPRA MD, FACP, FRCP founder of The Chopra Foundation, a non-profit entity for research on well-being and humanitarianism, and Chopra Global, a modern-day health company at the intersection of science and spirituality, is a world-renowned pioneer in integrative medicine and personal transformation. Chopra is a Clinical Professor of Family Medicine and Public Health at the University of California, San Diego and serves as a senior scientist with Gallup Organization. He is also an Honorary Fellow in Medicine at the Royal College of Physicians and Surgeons of Glasgow. He is the author of over 90 books translated into over forty-three languages, including numerous New York Times bestsellers. For the last thirty years, Chopra has been at the forefront of the meditation revolution and his 93rd book, Living in the Light (Harmony Books) taps into the ancient Indian practice of Royal Yoga and offers an illuminating program for self-realization, bliss, and wholeness. TIME magazine has described Dr. Chopra as "one of their top 100 most influential people." www.deepakchopra.com

**About Chopra Global:**

Chopra Global is a leading integrative health company that is empowering personal transformation for millions of people globally to expand our collective wellbeing. Anchored by the life's practice and research of Dr. Deepak Chopra, M.D. a pioneer in integrative medicine, Chopra Global's signature programs have been proven to improve overall wellbeing through a focus on physical, mental and spiritual health. Chopra Global has been at the forefront of health and wellness for more than two decades with a portfolio that includes an editorial archive of more than 2,000 health articles, expansive self-care practices and meditations, mobile app, masterclasses, teacher certifications, immersive live events, and personalized retreats. By providing tools, guidance, and community, Chopra aims to advance a culture of wellbeing and make a healthy, peaceful, and joyful life accessible to all. For more information, interact with the team on Instagram, Facebook, and Twitter.

**About The Healing Company:**

The Healing Company Inc. was founded with a bold aim: Bring integrated healing to the world. Compelled by the global healthcare crisis and a deep belief in a different way—one which draws on conventional medicine and ancient wisdom, science and nature—the company looks to democratize access to integrated healing methods, while helping the world evolve how it thinks about health and healthcare. To do so, the company is building a community of powerful healing brands, identifying, acquiring, and helping scale the reach and impact of the world's highest potential healing practices & products.

The Healing Company's common stock is quoted for trading on the OTC under the symbol HLCO, and its investors and advisors include global wellbeing icon Dr. Deepak Chopra, MD, renowned investor and psychedelics entrepreneur Christian Angermayer, and Social Chain & Thirdweb founder and Dragons Den member Steven Bartlett. For more information, visit http://www.healingcompany.com.

**Sources:**

Data Bridge, Global Meditation Market – Industry Trends and Forecast to 2029

Research and Markets, Complementary and Alternative Medicine Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027

Market Research Future, Ayurveda Market Information by Application, Disease Pattern, Source, Form, End-Users, Distribution, and Region - Forecast till 2030

Chopra Global and Deepak Chopra data collected from Google Analytics, Facebook, Instagram, YouTube, TikTok, Twitter, App Store, and proprietary CRM

**Forward-looking statements:**

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financial requirements, business strategy, products and services, potential future financings, acquisition and scaling of future brands and or project and its anticipated financing plans, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions that are forward-looking statements. Such forward-looking statements are estimates reflecting the Company' s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements; foreign exchange and other financial markets; changes in the interest rates on borrowings; hedging activities; changes costs of goods; changes in the investments and expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which The Healing Company operates. There can be no assurance that The Healing Company will achieve the above stated brand acquisitions and scaling of those brands or the closing of any required financing. The reader should refer to the risk disclosures set out in the periodic reports and other disclosure documents filed by The Healing Company from time to time with the Securities and Exchange Commission.