# EDGAR Filing Document

**Accession Number:** 0001851491
**File Stem:** 0001575872-26-000054
**Filing Date:** 2026-2
**Character Count:** 2699212
**Document Hash:** 346fa3d9aad165e31f6330622ef6b73e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001575872-26-000054.hdr.sgml**: 20260409

**ACCESSION NUMBER**: 0001575872-26-000054

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 42

**FILED AS OF DATE**: 20260202

**DATE AS OF CHANGE**: 20260130

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMASS BRANDS
- **CENTRAL INDEX KEY:** 0001851491
- **STANDARD INDUSTRIAL CLASSIFICATION:** BEVERAGES [2080]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 815227282
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08646
- **FILM NUMBER:** 26585409

**BUSINESS ADDRESS:**
- **STREET 1:** 927 SOUTH SANTA FE AVENUE
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90021
- **BUSINESS PHONE:** 7209379286

**MAIL ADDRESS:**
- **STREET 1:** 927 SOUTH SANTA FE AVENUE
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90021

**As confidentially submitted to the U.S. Securities and Exchange Commission on January 30, 2026 as Amendment No. 1 to the confidential submission dated November 3, 2025. This draft registration statement has not been filed publicly with the Securities and Exchange Commission and all information contained herein remains strictly confidential.**

**Registration No. 333-**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**_________________________________**

**FORM S-1**

**REGISTRATION STATEMENT**

**Under**

**The Securities Act of 1933**

**_________________________________**

**AMASS Brands Inc**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **2085** | **81-5227282** |
| &nbsp;&nbsp; (State or other jurisdiction of<br> incorporation or organization) | &nbsp;&nbsp; (Primary Standard Industrial<br> Classification Code Number) | &nbsp;&nbsp; (I.R.S. Employer<br> Identification Number*)* |

---

**_________________________________**

**860 E Stowell Road**

**Santa Maria, CA, 93454**

**909-293-8571**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**_________________________________**

**Mark T. Lynn**

**Chairman & Chief Executive Officer**

**AMASS Brands Inc**

**860 E Stowell Road**

**Santa Maria, CA, 93454** 

**909-293-8495**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**_________________________________**

***Copies to:***

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| | |
|:---|:---|
| **Michael Blankenship**<br> **Beniamin D. Smolij**<br> **Winston & Strawn, LLP**<br> **800 Capitol St, Suite 2400**<br> **Houston, Texas 77002**<br> **(713) 651-2600** | **Mark T. Lynn**<br> **Chairman & Chief Executive Officer**<br> **AMASS Brands Inc**<br> **860 E Stowell Road**<br> **Santa Maria, CA, 93454**<br> **(720) 937-9286**  |

---

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. ⌧

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻ Accelerated filer ◻ <br> Non-accelerated filer ⌧ Smaller reporting company ⌧ <br> 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 7(a)(2)(B) of the Securities Act. ◻

**_________________________________**

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

**Explanatory Note**

Pursuant to the applicable provisions of the Fixing America's Surface Transportation Act as well as the Division of Corporation Finance's statement on Enhanced Accommodations for Issuers Submitting Draft Registration Statements (March 3, 2025), we are omitting from the registration statement the financial statements of AMASS Brands Inc (the "Company") for the nine-months ended September 30, 2025, as well as pro forma information for the nine-months ended September 30, 2025, because they relate to historical periods that we believe will not be required to be included in this prospectus at the time that the registration statement is publicly filed. We intend to amend the registration statement on or prior to the date of the first public filing of the registration statement to include all financial information required by Regulation S-X, and all required pro forma financial information, at the date of such amendment.

On January 9, 2026, the Company effected a one-for-three (1-for-3) reverse stock split of its Common Stock (the "Reverse Stock Split"). The Reverse Stock Split is legally effective as of the date of this prospectus. The audited financial statements and related share and per-share information included herein have not yet been retrospectively adjusted to reflect the Reverse Stock Split. As a result, historical share counts, weighted-average shares outstanding, and per-share amounts presented in this prospectus do not reflect the Company's current capitalization, except as otherwise indicated.

**The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

*PROSPECTUS*

*(Subject to Completion)*

*Dated January 30, 2026*

**[●] Shares of Common Stock**

This prospectus relates to the registration of the resale of up to [●] shares of our common stock, $0.00001 par value per share (our "Common Stock") by our stockholders identified in this prospectus (the "Registered Stockholders"), in connection with our direct listing (the "Direct Listing"), on the Nasdaq Capital Market ("Nasdaq"). Each share of our non-voting Common Stock has been converted into one share of Common Stock, and the holders of our Common Stock are entitled to one vote per share of Common Stock on matters to be voted on by stockholders. Unlike an initial public offering, the resale by the Registered Stockholders is not being underwritten on a firm-commitment basis by any investment bank. The Registered Stockholders may, or may not, elect to sell their shares of Common Stock covered by this prospectus, as and to the extent they may determine. The Registered Stockholders may offer, sell or distribute all or a portion of the shares of Common Stock (the "Resale Shares") hereby registered publicly or through private transactions at prevailing market prices or at negotiated prices. If the Registered Stockholders choose to sell their shares of Common Stock, we will not receive any proceeds from the sale of shares of Common Stock by the Registered Stockholders.

No public market for our Common Stock currently exists, and our shares of Common Stock have a limited history of trading in private transactions.

Recent purchase prices of our Common Stock in private transactions may have little or no relation to the opening public price of our shares of Common Stock on Nasdaq or the subsequent trading price of our shares of Common Stock on Nasdaq. For more information, see "*<u>Sale Price History of Our Capital Stock</u>.*" Further, the listing of our Common Stock on Nasdaq, without a firm-commitment underwritten offering, is a novel method for commencing public trading in shares of our Common Stock and, consequently, the trading volume and price of shares of our Common Stock may be more volatile than if shares of our Common Stock were initially listed in connection with an initial public offering underwritten on a firm-commitment basis.

On the day that our shares of Common Stock are initially listed on Nasdaq, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative Current Reference Price (as defined below) on the basis of such accepted orders. The Current Reference Price is calculated each second and, during a 10-minute "Display Only" period, is disseminated, along with other indicative imbalance information, to market participants by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which Maxim Group LLC (the "Advisor"), in its capacity as our financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once the Advisor has notified Nasdaq that our shares of Common Stock are ready to trade, Nasdaq will calculate the Current Reference Price for our shares of Common Stock, in accordance with Nasdaq rules. If the Advisor then approves proceeding at the Current Reference Price, Nasdaq will conduct a price validation test in accordance with Nasdaq Rule 4120(c)(8). As part of conducting such price validation test, Nasdaq may consult with the Advisor, if the price bands need to be modified, to select the new price bands for purposes of applying such test iteratively until the validation tests yield a price within such bands. Upon completion of such price validation checks, the applicable orders that have been entered will be executed at such price and regular trading of our shares of Common Stock on Nasdaq will commence. Under Nasdaq rules, the "Current Reference Price" means: (i) the single price at which the maximum number of orders to buy or sell can be matched; (ii) if there is more than one price at which the maximum number of orders to buy or sell can be matched, then it is the price that minimizes the imbalance between orders to buy or sell (*i.e.* minimizes the number of shares that would remain unmatched at such price); (iii) if more than one price exists under clause (ii), then it is the entered price (*i.e.* the specified price entered in an order by a customer to buy or sell) at which our shares of Common Stock will remain unmatched (*i.e.* will not be bought or sold); and (iv) if more than one price exists under clause (iii), a price determined by Nasdaq in consultation with the Advisor in its capacity as our financial advisor. In the event that more than one price exists under clause (iii), the Advisor will exercise any consultation rights only to the extent that it can do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M, or applicable relief granted thereunder. Neither we nor the Registered Stockholders will be involved in Nasdaq's price-setting mechanism, including any decision to delay or proceed with trading, nor will we or they control or influence the Advisor in carrying out its role as a financial adviser. The Advisor will determine when our shares of Common Stock are ready to trade and approve proceeding at the Current Reference Price primarily based on considerations of volume, timing and price. In particular, the Advisor will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the Current Reference Price. For more information, see "*<u>Plan of Distribution</u>*" beginning on page [79]of this prospectus.

We have applied to list our Common Stock on the Nasdaq Capital Market under the symbol "AMSS*.*" We expect our Common Stock to begin trading on Nasdaq on or about [●], 2026.

If our Nasdaq application is not approved or we otherwise determine that we will not be able to secure the listing of our Common Stock on Nasdaq, we will not complete this Direct Listing. This listing is a condition to the offering. No assurance can be given that our Nasdaq application will be approved and that our Common Stock will ever be listed on Nasdaq. If our listing application is not approved by Nasdaq, we will not be able to consummate the offering and we will terminate this Direct Listing.

**We are an "emerging growth company" and a "smaller reporting company" as defined under the federal securities laws and, as such, have elected to comply with certain reduced public company reporting requirements for this prospectus and may elect to do so in future filings. See "*<u>Prospectus Summary—Implications of Being an Emerging Growth Company and a Smaller Reporting Company</u>*."**

**Investing in our Common Stock involves a high degree of risk. See the "*<u>Risk Factors</u>*" section beginning on page [10] of this prospectus for the risks and uncertainties you should consider before investing in our Common Stock.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

**Prospectus dated [●], 2026**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [About This Prospectus](#a_001) | [1](#a_001) |
| [Prospectus Summary](#a_002) | [2](#a_002) |
| [Summary Financial and Other Data](#a_003) | [8](#a_003) |
| [Risk Factors](#a_004) | [10](#a_004) |
| [Cautionary Note Regarding Forward-Looking Statements](#a_005) | [28](#a_005) |
| [Market and Industry Data](#a_006) | [29](#a_006) |
| [Trademarks, Service Marks and Tradenames](#a_007) | [30](#a_007) |
| [Use of Proceeds](#a_008) | [30](#a_008) |
| [Dividend Policy](#a_009) | [30](#a_009) |
| [Capitalization](#a_010) | [31](#a_010) |
| [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_011) | [32](#a_011) |
| [Business](#a_012) | [47](#a_012) |
| [Management](#a_013) | [54](#a_013) |
| [Executive and Director Compensation](#a_014) | [58](#a_014) |
| [Certain Relationships and Related Person Transactions](#a_015) | [63](#a_015) |
| [Selling Stockholders](#c_001) | [66](#c_001) |
| [Principal and Registered Stockholders](#a_016) | [64](#a_016) |
| [Description of Capital Stock](#a_017) | [68](#a_017) |
| [Shares Eligible for Future Sale](#a_018) | [74](#a_018) |
| [Sale Price History of Our Capital Stock](#a_019) | [75](#a_019) |
| [Material U.S. Federal Income Tax Consequences to Non-U.S. Holders of Our Common Stock](#a_020) | [76](#a_020) |
| [Plan of Distribution](#a_021) | [80](#a_021) |
| [Legal Matters](#a_022) | [83](#a_022) |
| [Experts](#a_023) | [83](#a_023) |
| [Where You Can Find Additional Information](#a_024) | [83](#a_024) |
| [Index to Consolidated Financial Statements](#a_025) | [F-1](#a_025) |

---

You should rely only on the information contained in this prospectus or contained in any free writing prospectus filed with the Securities and Exchange Commission (the "SEC"). Neither we nor any of the Registered Stockholders have authorized anyone to provide any information different from, or in addition to, the information contained in this prospectus and in any free writing prospectuses we have prepared. Neither we nor any of the Registered Stockholders take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. The Registered Stockholders are offering to sell, and seeking offers to buy, shares of their Common Stock only under the circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date, regardless of the time of delivery of this prospectus or of any sale of our Common Stock. Our business, financial condition, results of operations and prospects may have changed since such date.

**Through and including [●], 2026 (the 25th day after the listing date of our Common Stock), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus.**

For investors outside the United States: Neither we nor any of the Registered Stockholders have done anything that would permit the use of or possession or distribution of this prospectus or any related free writing prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our Common Stock by the Registered Stockholders and the distribution of this prospectus outside the United States.

**ABOUT THIS PROSPECTUS**

This prospectus is a part of a registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the "SEC"), using a "shelf" registration or continuous offering process. Under this process, the Registered Stockholders may, from time to time, sell the Common Stock covered by this prospectus in the manner described in the section titled "*<u>Plan of Distribution</u>*." Additionally, we may provide a prospectus supplement to add information to, or update or change information contained in, this prospectus, including the section titled "*<u>Plan of Distribution</u>*". You may obtain this information without charge by following the instructions under the "*<u>Where You Can Find Additional Information</u>*" section of this prospectus. You should read this prospectus and any prospectus supplement before deciding to invest in our Common Stock.

This prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein have been filed or will be filed as exhibits to the registration statement of which this prospectus is a part, and you may obtain copies of those documents as described under "*<u>Where You Can Find Additional Information</u>*."

For additional information about the Registered Stockholders, including Item 507 information for entities and the identity of natural person(s) who exercise voting and/or investment control, see "*<u>Selling Stockholders</u>*" and "*<u>Certain Relationships and Related Person Transactions</u>*."

**PROSPECTUS SUMMARY**

*This summary highlights select information contained elsewhere in this prospectus and does not contain all the information you should consider before making an investment decision. You should read the entire prospectus carefully, including the sections entitled "<u>Risk Factors</u>," "<u>Cautionary Note Regarding Forward-Looking Statements</u>," "<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>" and our financial statements and the accompanying notes included elsewhere in this prospectus before making an investment decision. Unless otherwise indicated or the context otherwise requires, all references to "we," "us," "our," the "Company," "AMASS" and similar terms refer to AMASS Brands Inc.*

***Overview***

 ****

AMASS Brands Inc ("AMASS," the "Company," "we," "our," or "us") is a Delaware corporation with our principal place of business in Santa Maria. Founded in 2016, AMASS is building a diversified premium beverage platform at the intersection of craft, wellness, and functionality. Our mission is to modernize drinking occasions with products that are premium, health-conscious, and culturally resonant.

We operate across multiple categories—spirits, wine, and non-alcoholic alternatives—creating a uniquely diversified portfolio aligned with long-term consumer shifts toward moderation, premiumization, and wellness. Our brands are distributed primarily in the United States through wholesale, on-premise, direct-to-consumer ("DTC"), with limited international activity through third-party partners, reaching more than 44,000 points of sale. We are continuously evaluating and adjusting our portfolio, investments and strategy. The markets in which we operate are subject to evolving consumer preferences and broader industry dynamics. For example, although the wine category in North America is expected to expand in the future, certain metrics such as declining volumes in recent years signal changes in demographics and preferences. Because declining consumption has made growth more challenging, we have taken steps to revise our wine portfolio accordingly. Similarly, we are taking a discipled approach to our spirits segment, with near-term deprioritization in 2026 while we look for opportunities for renewed growth in the future.

For the year ended December 31, 2024, we generated $22.0 million in net revenues and incurred a net loss of $15.0 million. For the year ended December 31, 2023, we generated $33.0 million in net revenues and recognized net income of $5.0 million. Since inception, we have generated more than $78 million in cumulative revenue across our portfolio.

Our consolidated financial statements for the year ended December 31, 2024 have been prepared on a going concern basis and include an explanatory paragraph from our independent auditors raising substantial doubt about our ability to continue as a going concern. This conclusion was based on factors including our history of operating losses, including a net loss of $15.0 million for the year ended December 31, 2024, our liquidity position, and our obligations related to accounts payable and outstanding indebtedness.

Management has taken and continues to evaluate actions intended to improve our liquidity and financial condition, including cost reduction initiatives, portfolio rationalization, working capital management, and pursuing additional sources of capital. However, there can be no assurance that these actions will be successful or sufficient to alleviate the conditions giving rise to the substantial doubt.

We maintain commercial relationships with a number of customers across our wine and spirits portfolio. One such customer is Full Glass Wine Co. ("Full Glass"). Our contracts and ongoing commercial dealings with Full Glass include fixed-price and minimum purchase/take-or-pay obligations, and a supplier arrangement under which we sell certain finished goods at prices below our cost of production. As a result, during 2024, we incurred losses on the sale of finished goods under our contracts of $0.8 million. In order to partially fulfil this supplier agreement, the Company maintains firm purchase commitment contracts for bulk wine whereby the net realizable value of committed purchases is below the firm purchase commitment value. Accordingly, the Company recorded a liability of $2.9 million in relation to the firm purchase commitment contracts with a corresponding charge during 2024. Losses are expected to continue for the supplier contract. Full Glass is currently in default under a multi-year production agreement and a settlement is being negotiated. Our losses associated with certain arrangements with Full Glass have had, and may continue to have, material adverse effects on our gross profit and cash flows.

**Our Market Position**

We believe AMASS represents a new generation of beverage company defined by:

● A **multi-category portfolio** spanning spirits, wine, and non-alcoholic beverages—enabling participation across a wide range of consumer occasions.

● **Premium, design-forward positioning** appealing to modern, health-conscious, and culturally engaged consumers.

● **A proven track record of acquisitions and brand incubation** that builds both scale and category breadth.

● **Strategic partnerships with cultural talent** that enhance awareness, authenticity, and consumer trust.

**Corporate Structure and Acquisitions**

In addition to its own brand incubations, AMASS has pursued an acquisition growth strategy:

● **2016** – Incorporated in Delaware and launched the flagship AMASS line of spirits.

● **2022** – Acquired substantially all assets of *GEM&BOLT Mezcal*, including its Oaxaca-based subsidiary *Art+Plants*, which manages mezcal production. In 2024, we concluded that the carrying amount related to these assets and the associated reporting unit exceeded its fair value and recognized a goodwill impairment loss of $322,049 for the year ended December 31, 2024.

● **January 2023 –** Acquired substantially all of the assets of Winc, Inc., adding an established wine portfolio including the Summer Water and Folly of the Beast brands. Winc.com's DTC subscription business was later sold in June 2023.

● **2024** – Purchased a controlling **50.0001%** stake in **222** Spirits, owner of *Calirosa Tequila*. The partnership with Adam Levine of Maroon 5 expanded Calirosa's reach and visibility in the premium tequila market.

**Portfolio of Brands**

Today, AMASS manages a portfolio of 16+ brands across key categories:

● **AMASS** – Flagship line of spirits and non-alcoholic alternatives.

● **Spirits** – *GEM&BOLT Mezcal* (premium mezcal infused with damiana) and *Calirosa Tequila* (red-wine-barrel-aged tequila, in partnership with Adam Levine).

● **Wine** – *Summer Water* (lifestyle rosé brand), *Folly of the Beast* (Pinot Noir), and premium imports (*Pizzolato*, *Biokult Österreich*, *Maison Raymond*).

● **Non-Alcoholic Wine** – *Good Twin*, a premium alcohol-free wine alternative designed for the "sober-curious" consumer.

● **Minority Interests** – *De Soi* (non-alcoholic aperitif co-founded with Katy Perry) and *HpO* (protein sparkling water).

**Differentiation through Talent Partnerships**

A key component of our strategy is to partner with leading cultural figures to create and scale category-defining brands:

● *Calirosa Tequila* — partnership with Adam Levine and Behati Prinsloo expands reach and media visibility.

● *De Soi* — co-founded with Katy Perry, reinforces leadership in the non-alcoholic aperitif category.

● *Summer Water* and *Good Twin* — align with lifestyle-driven communities, integrating culture with innovation.

These partnerships strengthen brand resonance, deepen consumer engagement, and accelerate market adoption.

**Growth Strategy**

Our long-term strategy is centered on scalable growth, margin expansion, and brand equity creation through the following levers:

**1. Expand Wholesale, Retail, and On-Premise Distribution**

In 2020, the U.S. market included approximately 600,000 retail outlets selling beverage alcohol and premium non-alcoholic beverages, according to the National Beer Wholesalers Association. See "*<u>Market and Industry Data</u>*" for additional information on third-party sources of market and industry data. AMASS products currently occupy only a small fraction of this potential footprint.

We intend to:

● Deepen penetration through existing distributors and targeted sales expansion.

● Focus on high-value geographies and emerging on-premise accounts (bars, hotels, restaurants).

● Prioritize premium placements and experiential activations that drive trial and visibility.

**2. Scale Brand-Led Direct-to-Consumer and Digital Channels**

Our direct-to-consumer and digital initiatives are designed primarily to support brand building, consumer engagement, and marketing effectiveness, which reflects a shift away from large-scale brand agnostic subscription-based direct-to-consumer commerce platforms.

● Expand brand-led online experiences for eligible categories, including wine and non-alcoholic products, where permitted by law.

● Utilize selective membership and loyalty initiatives to deepen consumer engagement and brand affinity

● Invest in CRM, analytics, and digital marketing to improve retention and cross-brand engagement.

**3. Launch New Products Across Core Categories**

We expect to introduce new SKUs and line extensions over the next 24–36 months across spirits, wine, and non-alcoholic beverages.

Product innovation will emphasize **clean labels and wellness-adjacent formulations**.

**4. Pursue Selective, Accretive Acquisitions**

AMASS expects to continue to target high-quality, synergistic brands in premium and functional beverage segments.

Acquisition criteria include strong brand equity, attractive margins, and scalability across our distribution platform.

**5. Expand International and Travel Retail Presence**

While substantially all of our commercial operations are concentrated in the United States, we believe there is a substantial opportunity to expand internationally, and we are considering initially focusing on Canada, select European markets and global travel retail, and in the longer term, select markets in Asia and Latin America, where consumer demand for premium and wellness beverages continues to rise.

Travel retail (airports, cruise terminals, hotels) represents an under-leveraged growth channel.

According to IMARC Group, the global travel retail market totalled **US $65.0 billion in 2024** and is projected to reach **US $112.5 billion by 2033 (CAGR ~6.3%)**. See "*<u>Market and Industry Data</u>*" for additional information on third-party sources of market and industry data.

The wine & spirits travel retail segment is expected to grow from **US $10.0 billion in 2024** to **US $17.5 billion by 2030 (CAGR ~9.8%)**, per Grand View Research. See "*<u>Market and Industry Data</u>*" for additional information on third-party sources of market and industry data.

**6. Leverage Celebrity and Cultural Partnerships**

We plan to continue to amplify growth through high-impact collaborations and experiential marketing.

Celebrity partners, influencer campaigns, and limited-edition releases provide strong cultural reach and reinforce AMASS's premium identity.

**7. Drive Operational Leverage and Efficiency**

● Optimize procurement, manufacturing, and logistics to enhance gross margin.

● Centralize shared services to reduce overhead.

● Expand sales training and analytics to strengthen execution and category insight.

Financial Highlights

● **Lifetime revenue:** Over **$65 million** 

● **Total bottles sold:** Over **5.7 million** 

● **Active brands:** 16 +

***Non-Binding Term Sheet for Series C Preferred Financing***

 ****

We have entered into a non-binding term sheet with Streeterville Capital, LLC ("Streeterville") for a prepaid preferred purchase of up to $30 million of our Series C preferred stock, including an initial $6 million purchase to occur concurrently with our Nasdaq listing, subject to definitive documentation and conditions. The Series C would be convertible into common stock at a fixed price based on our Nasdaq listing valuation and, after the earlier of 180 days post-listing or specified trigger events, at an alternate price equal to the lower of the fixed price and 90% of the lowest daily VWAP during the ten trading days prior to conversion, subject to a floor tied to Nasdaq measures. In connection with the closing, we would issue commitment shares equal to 1.5% of the commitment amount and 3,000,000 cash-exercisable warrants. The arrangement also contemplates Streeterville consent rights over specified future financings.

***Recent Sale and Licensing of AMASS Trademark***

 ****

On April 12, 2024, as part of a secured debt restructuring, AMASS sold all rights, title and interest in the AMASS® trademark (U.S. Reg. No. 5,498,634; Serial No. 87-215,668) and associated goodwill to Resonant Subholdings Inc. for $2.5 million, following a Partial Release of Collateral and UCC-3 termination by our senior secured lender, Merchant Factors Corp.; concurrently, we entered into an exclusive, worldwide, royalty-free license with Resonant that permits our continued use of the AMASS® name (with customary quality-control obligations), such that we no longer own the mark and all resulting goodwill accrues to Resonant. The purchase price was financed by a secured promissory note to Half Church Holdings Pte. Ltd. (HCH), which holds a first-priority security interest in the AMASS® mark; our Chief Executive Officer, Mark Lynn, provided a personal guaranty of Resonant's obligations; and in January 2026, maturity was extended to April 2027. As a result, legal ownership of the AMASS® trademark resides with Resonant and the mark remains encumbered by HCH's first-priority lien, and our business depends on continued rights under the license; adverse outcomes under the license or the HCH security interest could impair our ability to use the AMASS® brand.

***Lease Termination and Settlement Agreement***

 ****

In March 2025, we entered into a Lease Termination and Settlement Agreement (the "Settlement Agreement") with VV1515 LLC, the landlord of our former facility located at 1515 Garnet Mine Road, Bethel Township, Pennsylvania. The Settlement Agreement resolves litigation between the parties and terminates our industrial lease for the Pennsylvania facility, which was otherwise scheduled to expire on January 31, 2028. Under the Settlement Agreement, the landlord retains our $300,000 security deposit, and we agreed to make additional cash payments totaling $75,000, consisting of $25,000 due by April 15, 2025; $7,500 due on each of May 15, June 15, July 15, August 15, and September 15, 2025; and $12,500 due on October 15, 2025. Upon execution, we surrendered possession of the premises and the landlord accepted our surrender. The settlement provides for mutual releases, subject to our timely performance, and the dismissal with prejudice of the related litigation filed in the United States District Court for the Eastern District of Pennsylvania. The Settlement Agreement includes customary confidentiality, non-disparagement, and forbearance provisions, and a confession of judgment remedy in the event of payment default. We ceased our Pennsylvania operations in 2024 following notice from the Pennsylvania Liquor Control Board that we were no longer permitted to operate in the Commonwealth. We do not expect the termination of this lease to have a material adverse effect on our ongoing operations; however, the settlement results in cash outflows during 2025 and will be reflected in our financial statements and MD&A.

***Seventh Amended and Restated Certificate of Incorporation***

On January 9, 2026, we filed with the State of Delaware, the Company's Seventh Amended and Restated Certificate of Incorporation (the "Certificate of Incorporation"), which was approved by the requisite stockholders by written consent in accordance with Section 228 of the Delaware General Corporation Law ("DGCL") and adopted pursuant to DGCL Sections 242 and 245. The Seventh A&R CoI, among other things, (i) increases the total authorized shares of Common Stock to 250,000,000, par value $0.00001 per share, while retaining 41,192,462 authorized shares of Preferred Stock, par value $0.00001 per share, with existing series designations unchanged; (ii) eliminates the Company's Non-Voting Common Stock through an automatic one-for-one conversion of each outstanding share of Non-Voting Common Stock into one share of Common Stock at the effective time, after which the Company has no authority to issue Non-Voting Common Stock; (iii) effects a Reverse Stock Split of the Common Stock at a ratio of three-for-one (3-for-1), applied uniformly to all holders, with no fractional shares issued, fractional interests rounded up to the nearest whole share, no cash paid in lieu of fractional shares, no change to the par value per share, and no change to the number of authorized shares of Common Stock; (iv) provides that the Company has a single class of Common Stock with one vote per share, does not provide for cumulative voting, and clarifies that holders of Common Stock are not entitled to vote on amendments that relate solely to the terms of one or more outstanding series of Preferred Stock where such series have a separate class vote; (v) updates Preferred Stock conversion provisions to maintain existing optional and mandatory conversion mechanics (including anti-dilution and reservation of sufficient Common Stock) and adds an additional mandatory conversion trigger upon the initial public filing on EDGAR of a Form S-1 registering existing capital stock for resale, with an underwritten initial public offering and holder-approved conversion remaining as triggers; (vi) provides for exculpation of directors and officers to the fullest extent permitted by Delaware law (with "officer" defined by reference to DGCL Section 102(b)(7)) and authorizes indemnification and advancement to the fullest extent permitted by law; and (vii) updates the exclusive forum provision to designate, unless the Company consents otherwise, the Court of Chancery of the State of Delaware (or, if the Court of Chancery lacks jurisdiction, the federal district court for the District of Delaware) as the exclusive forum for certain internal-affairs claims, with an express carve-out for claims under the Securities Exchange Act of 1934, the Securities Act of 1933, and any claim for which U.S. federal courts have exclusive jurisdiction. From and after effectiveness, certificates or book-entry notations formerly representing shares of Non-Voting Common Stock represent only the right to receive an equal number of shares of Common Stock, and certificates or book-entry notations formerly representing shares of Common Stock represent the number of whole shares after giving effect to the one-for-three (1-for-3) Reverse Stock Split; upon request and surrender of any such certificate, the Company will issue a new certificate or book-entry reflecting the appropriate number of shares of Common Stock.

The Reverse Stock Split is legally effective as of the date of this prospectus. The audited financial statements and related share and per-share information included herein have not yet been retrospectively adjusted to reflect the Reverse Stock Split. As a result, historical share counts, weighted-average shares outstanding, and per-share amounts presented in this prospectus do not reflect the Company's current capitalization, except as otherwise indicated.

***Summary of Risk Factors***

Our business is subject to numerous risks and uncertainties that you should be aware of before making an investment decision, including those highlighted in the section entitled "*<u>Risk Factors</u>*" in this prospectus. These risks include, but are not limited to, the following:

*Risks Related to Our Business*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may not be able to meet our projections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have identified material weaknesses in our internal control over financial reporting. If we are unable
to remediate such weaknesses, or are unable to otherwise maintain effective internal controls, we may not be able to accurately report
our financial results, which could adversely affect our business and stock price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The availability and pricing of our inputs and transportation may be disrupted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Broad economic conditions may affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We no longer own the AMASS trademark and our business now depends on our exclusive license to use the
brand; if our license is terminated, restricted or otherwise impaired, our business, results of operations and financial condition could
be materially adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The AMASS trademark is subject to a first-priority security interest held by a third-party lender; foreclosure
or other enforcement actions could impair or interrupt our rights under the license and materially disrupt our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Continuing default risk under the note secured by the trademark creates uncertainty that could threaten
trademark ownership at our licensor and disrupt our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our license includes quality-control and operational obligations; failure to comply could result in termination,
restrictions on use, or other remedies that could harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Because all goodwill arising from our continued use of the AMASS mark accrues to the trademark owner,
we may not realize the long-term economic benefits of brand-building investments to the same extent as if we owned the mark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our CEO has provided a personal guaranty of obligations under the note secured by the AMASS trademark,
which could create real or perceived conflicts of interest and may affect decision-making.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The cost of enforcing our trademarks and copyrights could prevent us from enforcing them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified
personnel in the future, could harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to sell our product or service is dependent on outside government regulation which can be
subject to change at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We rely on third parties to provide services essential to the success of our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The development and commercialization of the Company's products and services are highly competitive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we do not comply with the specialized regulations and laws that regulate the alcoholic beverage industry,
our business could be materially adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our COO served a similar role for a prior company that filed for bankruptcy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Termination of Our Pennsylvania Facility and Other Factors Affecting Our Facilities and Operations
Could Adversely Affect Our Business, Results of Operation and Financial Condition.

· We may enter into purchase contracts or other fixed obligations to
acquire inventory in advance of demand, which may result in, and has resulted in the past, losses and adverse cash flow effects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our internal computer systems, or those of any of our manufacturers, contractors, consultants, collaborators
or potential future collaborators, may fail or suffer security or data privacy breaches or other unauthorized or improper access to, use
of, or destruction of our proprietary or confidential data, employee data or personal data, which could result in additional costs, loss
of revenue, significant liabilities, harm to our brand and material disruption of our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our operations are vulnerable to interruption by fire, severe weather conditions, power loss, telecommunications
failure, terrorist activity and other events beyond our control, which could harm our business.

 

*Risks Related to Our Financial Condition and Capital Requirements*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have a limited operating history, which may make it difficult for you to evaluate our current business and predict our future success
and viability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have historically operated at a loss, which has resulted in an accumulated deficit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We anticipate sustaining operating losses for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We will require substantial additional capital to finance our operations and meet our growth objectives. If we are unable to raise
such capital when needed, or on acceptable terms, we may be forced to delay, reduce and/or eliminate one or more of our research and development
programs or future commercialization efforts, and/or our business and prospects could be materially and adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Raising additional capital may cause dilution to our existing stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we enter into the contemplated Streeterville prepaid preferred financing, conversion and warrant mechanics could cause significant
dilution and downward pressure on our stock price, restrict future financings, and trigger adverse default consequences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may not be able to continue as a going concern without additional financing, and if such financing is not available to us or is
not available to us on acceptable terms, we may be forced to cease operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have experienced a covenant breach under our credit facility, and such and other future covenant violations could result in acceleration
of our debt and materially adversely affect our liquidity.

 

 

*Risks Related to This Offering and Ownership of Our Common Stock*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The direct listing process differs from an initial public offering underwritten on a firm-commitment basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We will not receive any proceeds from the direct listing, and our management will have broad discretion in the use of any future capital
we may raise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Limitations on investors' ability to trace their shares to this registration statement may preclude claims under Sections 11
and 12 of the Securities Act, potentially reducing our liability exposure and limiting investors' remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Common Stock currently has no public market. An active trading market may not develop or continue to be liquid and the market
price of shares of our Common Stock may be volatile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Future sales of Common Stock by our Registered Stockholders and other existing stockholders could cause our share price to decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· You will be diluted by the automatic conversion of our preferred stock and may be further diluted by future issuances of preferred
stock or additional Common Stock in connection with our incentive plans, acquisitions or otherwise; future sales of such shares in the
public market, or the expectations that such sales may occur, could lower our stock price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Because we have no current plans to pay cash dividends on our Common Stock, you may not receive any return on investment unless you
sell your Common Stock for a price greater than that which you paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging
growth companies and smaller reporting companies may make our Common Stock less attractive to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Certificate of Incorporation provides that, unless we
consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware and, to the extent enforceable,
the federal district courts of the United States of America will be the exclusive forums for certain disputes between us and our stockholders,
which could limit our stockholders' ability to choose the judicial forum for disputes with us or our directors, officers or employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The public price of our shares of Common Stock, upon listing on Nasdaq, may have little or no relationship to the historical sales
prices of our shares of Common Stock in private transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The uncertainty associated with the fact that few companies have undertaken direct listings to date may lead to increased volatility
and pricing challenges for our Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The direct listing process differs from an initial public offering underwritten on a firm-commitment basis and the impact of awareness
of our brand and investor recognition of our Company on the demand for our Common Stock is unpredictable and our marketing and brand development
efforts may not be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Certificate of Incorporation renounces corporate opportunities that may be favorable to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have not agreed to indemnify the Registered Stockholders for claims arising in connection with sales of our Common Stock in this
offering, however, claims for indemnification by our directors and officers may reduce the amount of money available to us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federal and state laws governing ownership interests in alcoholic beverage licensees may impact your ability to invest in the company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Company may undergo a future change that could affect your investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reports published by analysts, including projections in those reports that differ from our actual results, could adversely affect
the price and trading volume of our Common Stock.

***Implications of being an emerging growth company and a smaller reporting company***

We are an "emerging growth company" as defined in the Securities Act of 1933 (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As such, we are eligible to take, and intend to take, advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies for as long as we continue to be an emerging growth company, including (i) the exemption from the auditor attestation requirements with respect to internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), (ii) the exemptions from say-on-pay, say-on-frequency and say-on-golden parachute voting requirements and (iii) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary of this offering, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which would occur if the market value of our Common Stock held by non-affiliates was $700.0 million or more as of the last business day of the second fiscal quarter of such year or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period and, as a result, we may adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-public companies instead of the dates required for other public companies.

We are also a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies until the fiscal year following the determination that our Common Stock held by non-affiliates is $250 million or more measured on the last business day of our second fiscal quarter, or our annual revenues are less than $100 million during the most recently completed fiscal year and our Common Stock held by non-affiliates is $700 million or more measured on the last business day of our second fiscal quarter.

 ****

***Corporate Information***

We were incorporated under the laws of the State of Delaware on September 22, 2016. Our principal mailing address is 860 E Stowell Road Santa Maria, CA, 93454. Our telephone number is 909-293-8571 and our website addresses are <u>www.amass.com</u> or <u>www.amassbrands.com</u>. Information contained on or that can be accessed through our website is neither a part of, nor incorporated by reference into, this prospectus, and you should not consider information on our website to be part of this prospectus. Our website address is included in this prospectus as an inactive textual reference only.

**SUMMARY FINANCIAL AND OTHER DATA**

The summary financial and other data set forth below should be read together with our financial statements and the related notes to those statements, as well as the "*<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>*" section of this prospectus.

The statements of operations data for the years ended December 31, 2025, 2024 and 2023, and the statements of cash flows data for the years ended December 31, 2025, 2024 and 2023, have been derived from our audited financial statements included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in any future period.

---

| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **(In millions, except share and per share data)** | **(In millions, except share and per share data)** | **(In millions, except share and per share data)** |
| **Statements of Income Data:** |  |  |  |
| Net revenues | $| $22 | $33 |
| Cost of sales |  | 20 | 23 |
| Gross profit |  | 2 | 11 |
| Selling, general and administrative expenses |  | (25) | (33) |
| Other operating expenses |  | 40 | 55 |
| Income from operations |  | (13) | (10) |
| Non-operating income (expense), net |  | (1) | 18 |
| Interest expense, net |  | (2) | (2) |
| Income tax expense |  | - | - |
| Net income | $| $(15) | $5 |

---

Note: In 2023 AMASS acquired and then disposed of Winc's DTC wine business which has an impact on our 2023 results. 2023 results include $12.1 million in sales from the DTC business was disposed of in June 2023. The gain from the sale of $16.7 million is reflected in our net income in 2023.

---

| | | | |
|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Historical** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **(In millions, except share and per share data)** | **(In millions, except share and per share data)** | **(In millions, except share and per share data)** |
| **Per Share:** |  |  |  |
| Earnings per share: |  |  |  |
| Basic |  | $(1.88) | $0.67 |
| Diluted |  | $(1.88) | $0.19 |
| Weighted average number of shares used in calculating earnings per share: |  |  |  |
| Basic |  | 8132263 | 7272618 |
| Diluted |  | 8132263 | 25893510 |
| **Balance Sheet Data (as of end of period):** |  |  |  |
| Accounts receivable, net | $| $3 | $4 |
| Inventories |  | 15 | 11 |
| Total assets |  | 39 | 38 |
| Accounts payable |  | 8 | 8 |
| Short-term debt |  | 6 | 2 |
| Long-term debt |  | 2 | 8 |
| Total equity (deficit) |  | 10 | 18 |
| **Cash Flow Data:** |  |  |  |
| Net cash provided by (used in): |  |  |  |
| Operating activities | $| $(6) | $(4) |
| Investing activities |  | 5 | (7) |
| Financing activities |  | 0 | 10 |

---

**RISK FACTORS**

*An investment in our Common Stock involves a high degree of risk. You should carefully consider the following risks and uncertainties, together with all of the other information contained in this prospectus, including our financial statements and related notes appearing elsewhere in this prospectus, before deciding whether to invest in our Common Stock. The occurrence of one or more of the events or circumstances described in these risk factors, alone or in combination with other events or circumstances, may have a material adverse effect on our business, reputation, revenue, financial condition, results of operations and future prospects, in which event you could lose all or part of your investment. The risks and uncertainties described below are not intended to be exhaustive and are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. This prospectus also contains forward-looking statements that involve risks and uncertainties. See "<u>Cautionary Note Regarding Forward-Looking Statements</u>." Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including those described below.*

**Risks Related to Our Business**

***We may not be able to meet our projections.***

Any projections or forward-looking statements regarding our anticipated financial or operational performance are hypothetical and are based on management's best estimate of the probable results of our operations and have not been reviewed by our independent accountants. These projections will be based on assumptions which management believes are reasonable. Some assumptions invariably will not materialize due to unanticipated events and circumstances beyond management's control. Demand for our products may be insufficient, consumers may prefer competing products, and we may be unable to produce and sell our products at profitable levels. Any of these factors could adversely affect our business, financial condition, and results of operations. Accordingly, actual results of operations may vary from such projections, and such variances may be material. Any projected results cannot be guaranteed.

***We have identified material weaknesses in our internal control over financial reporting. If we are unable to remediate such weaknesses, or are unable to otherwise maintain effective internal controls, we may not be able to accurately report our financial results, which could adversely affect our business and stock price.***

 ****

We have identified material weaknesses in our internal control over financial reporting, as described below. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. If we are unable to remediate any material weaknesses in a timely manner, or if we identify additional material weaknesses, it could impair our ability to report our financial results accurately and in a timely manner. Any such failure could harm our reputation, result in a loss of investor confidence, and have an adverse effect on our stock price.

Specifically, we lacked a comprehensive and formalized accounting and financial reporting policies and procedures manual addressing items such as closing procedures, descriptions of responsibilities, segregation of duties, management review procedures and the Company's accounting policies. While we are in the process of developing a remediation plan, there can be no assurance that our remediation efforts will be successful in all respects, or that additional material weaknesses will not be identified in the future.

***The availability and pricing of our inputs and transportation may be disrupted.***

The availability and pricing of our inputs may be affected by factors outside our control, including agricultural conditions, water availability, climate events (including wildfires), supply chain disruptions, and capacity constraints among packaging vendors. If we are unable to obtain sufficient quantities of raw materials and packaging inputs that meet our specifications at commercially reasonable prices, our ability to produce and distribute products could be materially adversely affected.

Along with the availability and pricing of raw materials, transportation costs and supply chain disruptions can all impact the ability to manufacture and distribute products or services, leading to lost revenue or increased costs. Products and services that are not available when customers need them can lead to lost sales and damage to the brand's reputation.

***Broad economic conditions may affect our business.***

Economic conditions, both globally and within specific markets, can significantly influence the success of early-stage startups. Downturns or recessions may lead to reduced consumer spending, limited access to capital, and decreased demand for the company's products or services. Additionally, factors such as inflation, tariffs, interest rates, and exchange rate fluctuations can affect the cost of raw materials, operational expenses, and profitability, potentially impacting the company's ability to operate. The alcohol beverage industry at a macroeconomic level is challenged by innumerable additional factors, including without limitation lasting COVID impacts, inflation of farm employee and input costs, quickly changing market conditions driven by changing consumer preferences and profiles, decreased national consumption and sales of wine and beer products in recent years, foreign and subsidized imports, distributor and retailer consolidation, a rise in private label products promoted by retailers that replace wholesale brands, new and competing business and product offerings, changes to laws and new applicable laws, trade barriers and regulatory policies at international and national level including those that increasingly scrutinize the health effects of alcohol and warn consumers against consumption.

 

***Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective.***

Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our trademark and copyright protection without obtaining a sublicense, it is likely that the Company's value will be materially and adversely impacted. This could also impair the Company's ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company.

 

***We no longer own the AMASS trademark and our business now depends on our exclusive license to use the brand; if our license is terminated, restricted or otherwise impaired, our business, results of operations and financial condition could be materially adversely affected.***

On April 12, 2024, we sold all rights, title and interest in the AMASS trademark and associated goodwill to a third party and simultaneously entered into an exclusive, worldwide, royalty-free license that permits our continued use of the AMASS name for our product lines and marketing operations. Because we no longer own the trademark, our ability to market, promote and sell products under the AMASS brand is dependent on the continued effectiveness of, and our compliance with, the license. The license contains customary terms and conditions, including termination rights and ongoing covenants. If the license is terminated in accordance with its terms, lapses, is not renewed (if applicable), or is otherwise limited or adversely modified, we may lose the right to use the AMASS name, be required to rebrand products and marketing materials on short notice, incur substantial transition costs, experience customer confusion or loss of brand recognition, and face disruption to distribution relationships, any of which could materially harm our business and prospects. Even short of termination, the exercise of approval rights or other limitations by the trademark owner could constrain our product development, packaging, promotional activities or geographic expansion.

***The AMASS trademark is subject to a first-priority security interest held by a third-party lender; foreclosure or other enforcement actions could impair or interrupt our rights under the license and materially disrupt our operations.***

The purchaser of the AMASS trademark financed the acquisition with a secured promissory note in favor of a third-party lender that holds a first-priority security interest in the trademark. If the secured lender exercises remedies due to a default under that note, including foreclosure or disposition of the trademark, our ability to continue using the AMASS brand may depend on the enforceability of our license against successors and assigns of the trademark and on the terms of any foreclosure sale. If our license is not binding on, or is rejected or modified by, a purchaser or successor, or if a court limits its enforceability in an enforcement or insolvency proceeding, our rights to use the AMASS mark could be interrupted, curtailed or terminated. Any interruption could require rapid rebranding, cause loss of revenue, damage customer relationships and brand equity, and result in significant costs and operational disruption. In addition, uncertainty surrounding potential enforcement actions could negatively affect our strategic planning, supply chain commitments and negotiations with customers and partners.

***Continuing default risk under the note secured by the trademark creates uncertainty that could threaten trademark ownership at our licensor and disrupt our business.***

The secured promissory note used to finance the trademark purchase experienced payment defaults and was amended in February 2025 to extend its maturity to December 15, 2025 and to address such defaults, including permitting partial repayment through transfers of equity interests in specified affiliates. Most recently in January 2026, the Company and the lender agreed to extend the maturity of the note to April 2027. Future payments may not be made when due, that financial or other covenants (if any) will be maintained, or that additional waivers or amendments will be obtained. Any future default or acceleration under the note could result in enforcement of the security interest over the AMASS trademark. While we are not the obligor on the note, our operations are highly dependent on continued access to the AMASS brand. The possibility of renewed defaults and enforcement actions may create ongoing uncertainty, adversely affect our relationships with customers and suppliers, and impair our ability to forecast, invest and execute our growth strategy. If a default results in a transfer of the trademark to a third party that is not bound by our license, our ability to use the AMASS brand could be materially and adversely affected.

***Our license includes quality-control and operational obligations; failure to comply could result in termination, restrictions on use, or other remedies that could harm our business.***

Trademark licenses typically require the licensee to meet defined quality standards and to submit to the trademark owner's oversight, including approval rights over product specifications, packaging, labelling, marketing and advertising. Our license includes customary quality-control provisions and may impose other operational restrictions intended to protect the trademark's goodwill. Failure to maintain required quality standards, obtain necessary approvals, comply with usage guidelines, or satisfy related covenants could constitute a breach and give rise to remedies that may include cure requirements, limitations on use, injunctive relief or termination. Even absent a formal breach, disagreements over quality or approvals could delay product launches, packaging changes or marketing campaigns, impede innovation, increase costs, and limit our responsiveness to market conditions. Any such restrictions or disputes could negatively affect sales, margins, customer relationships and our competitive positioning.

**Because all goodwill arising from our continued use of the AMASS mark accrues to the trademark owner, we may not realize the long-term economic benefits of brand-building investments to the same extent as if we owned the mark.**

Under our arrangement, the legal owner of the AMASS trademark accrues the goodwill generated by our continued use of the brand. Although the license enables us to operate under the AMASS name, our investments in brand awareness, marketing and product quality may enhance the value of the trademark for its owner without creating a corresponding asset on our balance sheet. As a result, we may have less ability to monetize or leverage brand equity in future strategic transactions, financings or collaborations than if we owned the mark. In addition, if our license were terminated or otherwise impaired, we may not be able to recapture the value of our historical brand investments and could be required to invest significant additional resources to rebuild brand recognition under a new mark.

**Our Chief Executive Officer has provided a personal guaranty of obligations under the note secured by the AMASS trademark, which could create real or perceived conflicts of interest and may affect decision-making.**

In connection with the financing of the trademark acquisition, Mark Lynn, our Chief Executive Officer provided a personal guaranty of the obligor's obligations under the secured note. Although the guaranty is personal and not a company obligation, the existence of the guaranty could create the appearance or actuality of conflicts of interest between the CEO's personal interests and the interests of our stockholders, including with respect to decisions involving interactions with the trademark owner or the secured lender, responses to defaults or restructuring proposals, or strategic alternatives that could affect the likelihood of enforcement. We maintain corporate governance practices intended to mitigate potential conflicts, but such measures may not eliminate all risks. Any perceived or actual conflict could influence negotiations, constrain strategic flexibility, or give rise to stockholder or counterparty concerns, and adverse outcomes under the note could nevertheless indirectly affect our operations through impacts on the ownership and control of the AMASS trademark.

***The cost of enforcing our trademarks and copyrights could prevent us from enforcing them.***

Trademark and copyright litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or copyrights, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or copyright(s) outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our trademark(s) or copyright(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or copyright(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

***The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business.***

Our business depends on our ability to attract, retain, and develop highly skilled and qualified employees. As we grow, we will need to continue to attract and hire additional employees in various areas, including sales, marketing, design, development, operations, finance, legal, and human resources. However, we may face competition for qualified candidates, and we cannot guarantee that we will be successful in recruiting or retaining suitable employees. Additionally, if we make hiring mistakes or fail to develop and train our employees adequately, it could have a negative impact on our business, financial condition, or operating results. We may also need to compete with other companies in our industry for highly skilled and qualified employees. If we are unable to attract and retain the right talent, it may impact our ability to execute our business plan successfully, which could adversely affect the value of your investment. Furthermore, the economic environment may affect our ability to hire qualified candidates, and we cannot predict whether we will be able to find the right employees when we need them. This would likely adversely impact the value of your investment.

***Our ability to sell our product or service is dependent on outside government regulation which can be subject to change at any time.***

Our ability to sell our products is subject to various government regulations, including but not limited to, regulations related to the manufacturing, labeling, distribution, and sale of our products. Changes in these regulations, or the enactment of new regulations, could impact our ability to sell our products or increase our compliance costs. Furthermore, the regulatory landscape is subject to regular change, and we may face challenges in adapting to such changes, which could adversely affect our business, financial condition, or operating results. In addition to government regulations, we may also be subject to other laws and regulations related to our products, including intellectual property laws, data privacy laws, and consumer protection laws. Non-compliance with these laws and regulations could result in legal and financial liabilities, reputational damage, and regulatory fines and penalties. It is also possible that changes in public perception or cultural norms regarding our products may impact demand for our products, which could adversely affect our business and financial performance, which may adversely affect your investment.

***We rely on third parties to provide services essential to the success of our business.***

We rely on third-party manufacturers and service providers for key aspects of our operations, including the production and bottling of our products, as well as warehousing, logistics, and fulfillment. We do not own or operate manufacturing or bottling facilities and depend on third parties to meet our quality standards, production timelines, regulatory requirements, and volume needs. Our reliance on these third parties exposes us to risks outside of our control including capacity constraints, quality control issues, operational disruptions, labor shortages, regulatory non-compliance, and the financial instability of such service providers. If any of these third parties are unable or unwilling to provide services on acceptable terms, or at all, we may experience delays, increased costs, supply interruptions, or an inability to meet customer demand, which could materially adversely affect our business, results of operations, and financial condition.

In addition, our wine brands depend on the availability of agricultural raw materials, including grapes, which are sourced from third-party growers. The supply, quality, and cost of grapes may be affected by factors beyond our control, including weather conditions, climate variability, crop disease, water availability, regulatory restrictions, and changes in agricultural practices. Any disruption in the availability or quality of grapes, or significant increases in grape costs, could adversely affect our ability to produce our wine products on a timely and cost-effective basis.

We also rely on third parties to provide a variety of essential business functions for us, including shipping, customer service, legal and compliance services, public relations, advertising, information technology and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. As a result, the value of an investment in the company could be adversely impacted by our reliance on third parties and their performance. In particular, we rely on third party distributors for the distribution of our alcohol to retail customers. State and federal laws regulate the ability of distributors to distribute alcohol and regulate the relationship of the Company with its distributors. Both the Company and distributors may be required to negotiate contracts and often file the same with regulatory agencies, establish a franchise relationship, obtain licenses, registrations, consents, post prices, and obtain other approvals from government agencies in order to deliver alcohol to end customers in the many states. Changes in our access to those distributors, including changes in prices or changes in our relationships and incentive structures with those distributors, changes in the laws allowing third party distribution of alcohol, or regulatory discipline against licenses held by those distributors, and the distributors' marketing efforts of our products could materially adversely affect our business. Delivery of the products we sell to retail customers could also be affected or interrupted by the merger, acquisition, insolvency, or government shutdown of the distributors we engage to distribute our products. If the products we sell are not delivered in proper condition or on a timely basis, our business and reputation could suffer.

***The development and commercialization of the Company's products and services are highly competitive.***

The Company faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The consumer-packaged goods market is an emerging industry where new competitors are entering the market frequently. Many of the Company's competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize product offerings. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company's competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.

***If we do not comply with the specialized regulations and laws that regulate the alcoholic beverage industry, our business could be materially adversely affected.***

The alcohol industry is regulated extensively by federal agencies, including without limitation the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury ("TTB"), the Federal Communications Commission and the Food and Drug Administration. Every state has its own separate alcoholic beverage regulations and regulatory agencies, including without limitation the California Department of Alcoholic Beverage Control ("ABC"), the California Department of Food and Agriculture, the California Department of Tax and Fee Administration. Many local jurisdictions have separate rules and regulations governing the alcohol industry as well. Regulated areas include licensing, production, importation, exportation, distribution, retail, sale, product labeling and advertising, taxes, marketing, pricing, delivery, ownership restrictions, prohibitions on sales to minors, franchise laws, trade practices (including marketing methods, and interactions and relationships among the three tiers of the alcohol industry — producers, wholesalers and retailers). We cannot assure you that we are or will always be in full compliance with all applicable regulations or laws, that we will be able to comply with any future regulations and laws, that we will not incur material costs or liabilities in connection with compliance with applicable regulatory and legal requirements, or that such regulations and laws will not materially adversely affect our alcohol business. We rely on various internal and external personnel with relevant experience to comply with applicable regulatory and legal requirements, and the loss of personnel with such expertise could adversely affect our alcohol business. Licenses, tax permits, registrations and additional approvals issued by state and federal alcoholic beverage regulatory agencies are required in order to produce, import, distribute, sell and ship alcohol. We have basic permits with TTB under the Federal Alcohol Administration Act, state production, importation and wholesale permits with ABC, and various out of state permits with other states. These approvals and permits as well as our other registrations and approvals must remain in compliance with state and federal laws in order to keep our licenses in good standing. There is no guarantee the Company can maintain its current licenses, permits, registrations and other government approvals. There is no guarantee the Company will be able to obtain additional licenses, permits, registration and other government approvals to grow or adjust its business objectives. Failure of investors to disclose information to the Company can result in compliance failures. Generally, compliance failures of any sort can result in fines, license suspension, license revocation, and expulsion of owners or officers from the Company by federal and state agencies. In some cases, compliance failures can also result in cease and desist orders, injunctive proceedings or other criminal or civil penalties by federal and state agencies. If our licenses do not remain in good standing, our alcohol business could be materially adversely affected. The federal government and most states impose taxes on alcohol beverage production, distribution, shipping and/or sales in varying amounts which are frequently changing. Significant increases in such taxes on alcohol beverage products and delivery thereof could materially and adversely affect the financial condition or results of operations for the Company, and thereby affect the Company and/or its subsidiaries' operations.

***Our Chief Operating Officer served a similar role for a prior company that filed for bankruptcy.***

AMASS Brands Inc's Chief Operating Officer, Erin Green, previously worked as Chief Operating Officer (COO) for BWSC LLC, D/B/A Winc ("Winc"), which filed for Ch. 11 bankruptcy in November of 2022. Winc's bankruptcy filing was caused by several factors that affected the business including a downturn in the DTC wine market, ongoing challenges from COVID, rising customer acquisition costs, and worsening macroeconomic conditions in both public and private markets. Ms. Green began working for Winc as Vice President of Operations in 2015 and became COO in 2021. While Ms. Green did not serve on Winc's board of directors, she was involved in the management and decision-making of its business. Winc's bankruptcy was not a direct result of Ms. Green's actions or decisions, there is some level of risk in investing in a company whose officers previously managed a company that filed for bankruptcy.

***The Termination of Our Pennsylvania Facility and Other Factors Affecting Our Facilities and Operations Could Adversely Affect Our Business, Results of Operation and Financial Condition.***

We ceased operations in Pennsylvania in 2024 following regulatory notice from the Pennsylvania Liquor Control Board and subsequently terminated the lease associated with our Pennsylvania facility in March 2025. While we have adjusted our operations and do not expect a material adverse impact, the loss of this facility reduces our physical footprint and could increase logistics complexity and costs. If we experience delays or increased expenses in reconfiguring our supply chain or if regulatory actions similar to those in Pennsylvania limit our activities in other states, our revenues, margins, and growth prospects could be negatively affected.

We also lease our Santa Maria Warehouse, which we use to store wine and spirits inventory, dry goods, and point-of-sale items. The on-site team performs inventory management, wholesale wine order fulfilment, and direct-to-consumer order fulfilment. We rely on our Santa Maria Warehouse to support our ongoing wholesale and direct-to-consumer activities, and our inability to continue operations at the facility could have a material adverse effect on our business, financial condition and results of operations. We currently renew our lease for the Santa Maria Warehouse on an annual basis and there is no guarantee that we can continue to maintain such lease. Although we believe we can sufficiently adjust our operations and find a suitable replacement warehouse to meet our business needs, in the event our Santa Maria Warehouse lease is terminated, our business may experience material disruptions as we make necessary adjustments, including effecting a transfer of our alcohol licenses that are currently tied to the Santa Maria Warehouse location.

***We may enter into purchase contracts or other fixed obligations to acquire inventory in advance of demand, which may result in, and has resulted in the past, losses and adverse cash flow effects.***

 ****

From time to time, we enter into purchase contracts or other binding obligations to secure inventory, such as bulk wine. Such commitments are sometimes made in advance of firm customer demand. If customer demand, pricing conditions or other economic factors deteriorate after we enter into such contracts, we may be obligated to purchase inventory at prices below their market value or in volumes in excess of our demand. In such circumstances, we may incur losses or be forced to recognize charges that may adversely affect our business, results of operations and financial condition.

For example, in 2024, we recognized $2.9 million of losses on purchase contracts, reflecting adverse bulk-wine purchase commitments through 2025. We acquired bulk wine contracts as part of the Winc acquisition, which at the time were indicative of market values. However, after the sale, the wine category as a whole began to decline and the volume of wine necessary to support operations after the sale was reduced, resulting in expected purchase commitment volumes in excess of our expected demand. As a mitigation effort to utilize potential excess supply, we entered into a supplier agreement under which we sell finished wine to Full Glass at prices below cost, which resulted in $0.8 million of losses during 2024.

Although the Company expects that bulk wine purchase contracts will have a smaller role at the Company, with a corresponding diminishing effect on the risks associated with such commitments, there is no guarantee that we will not enter into additional bulk wine purchase contracts in the future.

***Our dependence on Full Glass and our loss-making obligations to Full Glass have materially harmed, and may continue to materially harm, our gross margins, liquidity, and results of operations.***

 ****

We have entered into agreements with Full Glass that have resulted, and are expected to continue to result, in losses and adverse cash flow effects. In 2024, we recognized $3.7 million of losses on contracts, reflecting adverse bulk-wine purchase commitments of $2.0 million through 2025 and a supplier agreement under which we sell finished wine to Full Glass at prices expected to be below cost of production, resulting in $0.8 million of losses. As of December 31, 2024, the related liability was $2.9 million. These obligations have materially reduced our gross profit and compressed margins, and may continue to do so for the duration of the commitments. In addition, under a Multi-Year Wine Purchase Agreement, Full Glass committed to purchase approximately 111,000 cases of finished wine (aggregate value of approximately $4.0 million) through February 2026 at a fixed price of $36 per case, subject to a semi-annual $1.0 million take-or-pay minimum and 30-day payment terms. Full Glass is currently in default under this production agreement, and a settlement is being negotiated. If we are unable to collect amounts due, enforce remedies, or renegotiate acceptable terms, we may incur further reductions in gross profit, increased working capital needs, higher allowances for credit losses, and additional write-downs or reserves. Any settlement may not fully compensate us for losses incurred and could impose additional obligations or restrictions.

***Our internal computer systems, or those of any of our manufacturers, contractors, consultants, collaborators or potential future collaborators, may fail or suffer security or data privacy breaches or other unauthorized or improper access to, use of, or destruction of our proprietary or confidential data, employee data or personal data, which could result in additional costs, loss of revenue, significant liabilities, harm to our brand and material disruption of our operations.***

Despite the implementation of security measures, our internal computer systems and those of our current and any future manufacturers, contractors, consultants, collaborators and third-party service providers, are vulnerable to damage from computer viruses, cybersecurity threats, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failure. Because the techniques used to obtain unauthorized access to, or to sabotage, systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures. We may also experience security breaches that may remain undetected for an extended period. Some of the federal, state and foreign government requirements include obligations of companies to notify individuals of security breaches involving particular personally identifiable information, which could result from breaches experienced by us or by our vendors, contractors or organizations with which we have formed strategic relationships. Notifications and follow-up actions related to a security breach could impact our reputation, cause us to incur significant costs, including legal expenses and remediation costs. We also rely on third parties for certain portions of our manufacturing process, and similar events relating to their computer systems could also have a material adverse effect on our business. To the extent that any disruption or security breach were to result in a loss of, or damage to, our data, or inappropriate disclosure of confidential or proprietary information, we could be exposed to litigation and governmental investigations, the further development and commercialization of our product candidates could be delayed, and we could be subject to significant fines or penalties for any noncompliance with certain state, federal and/or international privacy and security laws.

Our insurance policies may not be adequate to compensate us for the potential losses arising from any such disruption, failure or security breach. In addition, such insurance may not be available to us in the future on economically reasonable terms, or at all. Further, our insurance may not cover all claims made against us and could have high deductibles in any event, and defending a suit, regardless of its merit, could be costly and divert management attention.

***Our operations are vulnerable to interruption by fire, severe weather conditions, power loss, telecommunications failure, terrorist activity and other events beyond our control, which could harm our business.***

Our facility is located in a region which experiences severe weather from time to time. We have not undertaken a systematic analysis of the potential consequences to our business and financial results from a major tornado, flood, fire, earthquake, power loss, terrorist activity or other disasters and do not have a recovery plan for such disasters. In addition, we do not carry sufficient insurance to compensate us for actual losses from interruption of our business that may occur, and any losses or damages incurred by us could harm our business. The occurrence of any of these business disruptions could seriously harm our operations and financial condition and increase our costs and expenses.

**Risks Related to Our Financial Condition and Capital Requirements**

***We have a limited operating history, which may make it difficult for you to evaluate our current business and predict our future success and viability.***

Our Company was incorporated under the laws of the State of Delaware on September 22, 2016. The likelihood of our creation of a successful business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the growth of a business, operation in a competitive industry, and the continued development of our technology and products. We anticipate that our operating expenses will increase for the near future, and there is no assurance that we will be profitable in the near future. You should consider our business, operations, and prospects in light of the risks, expenses and challenges faced as an emerging growth company.

***We have historically operated at a loss, which has resulted in an accumulated deficit.***

For the fiscal years ended December 31, 2024 and 2023, we incurred net losses from operations of approximately $12.6 million and approximately $10.3 million, respectively. We may never achieve profitability. Even if we do, we may not be able to maintain or increase profitability on a quarterly or annual basis. Failure to do so would continue to have a material adverse effect on our accumulated deficit, would affect our cash flows, would affect our efforts to raise capital and is likely to result in a decline in the value of your investment in our Company.

***We anticipate sustaining operating losses for the foreseeable future.***

It is anticipated that we will sustain operating losses until for the foreseeable future as we expand our team, continue with research and development, and strive to gain customers and gain market share in our industry. Our ability to become profitable depends on our ability to expand our customer base. Unanticipated problems and expenses are often encountered in offering new products which may impact whether the Company is successful. Furthermore, we may encounter substantial delays and unexpected expenses related to development, technological changes, marketing, regulatory requirements and changes to such requirements or other unforeseen difficulties. We may not ever become profitable. If the Company sustains losses over an extended period of time, it may be unable to continue in business.

***We will require substantial additional capital to finance our operations and meet our growth objectives. If we are unable to raise such capital when needed, or on acceptable terms, we may be forced to delay, reduce and/or eliminate one or more of our research and development programs or future commercialization efforts, and/or our business and prospects could be materially and adversely affected.***

Our operations have consumed substantial amounts of cash since inception, and we expect our expenses to increase in connection with our ongoing activities. The Company will continue to invest in building out its sales and marketing teams as well as maintain a robust development team. General and administrative expenses will increase as the cost of maintaining a public company is significantly higher than maintaining a privately held company. Accordingly, we will need to obtain substantial additional funding in order to maintain our continuing operations.

As of the year ended December 31, 2025, we had approximately $0.5 million of cash on hand and our anticipated operating requirements for the next twelve months, assuming the maintenance of our current operations, exceed our available capital resources. Our estimate as to how long we expect our existing capital to be able to continue to fund our operations is based on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect. Changing circumstances, some of which may be beyond our control, could cause us to consume capital significantly faster than we currently anticipate, and we may need to seek additional funds sooner than planned.

Our future funding requirements will depend on many factors, including, but not limited to:

· the initiation, progress, timeline, cost and results of our products;

· the cost and timing of manufacturing activities;

· the effect of competing technological and market developments;

· the payment of licensing fees, potential royalty payments and potential milestone payments;

· the cost of general operating expenses; and

· the costs of operating as a public company.

Advancing the development of our product will require a significant amount of capital. In order to fund all of the activities that are necessary to complete the development of our product, we will be required to obtain further funding through equity offerings, debt financings, collaborations and licensing arrangements or other sources, which may dilute our stockholders or restrict our operating activities. Adequate additional funding may not be available to us on acceptable terms, or at all.

Because our direct listing will not involve the sale of new shares or the engagement of underwriters to raise capital, we will need to rely on other sources of financing. Our failure to raise such capital as and when needed or on acceptable terms would have a negative impact on our results of operation, financial condition and our ability to pursue our business strategy, and we may have to delay, reduce the scope of, suspend or eliminate one or more of our research-stage programs, clinical trials or future commercialization efforts, grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves, obtain funds through arrangement with collaborators on terms unfavorable to us or pursue merger or acquisition strategies, all of which could adversely affect the holdings or the rights of our stockholders.

***Raising additional capital may cause dilution to our existing stockholders.***

We may seek additional capital through a variety of means, including through equity, debt financings, or other sources. We may seek additional capital due to favorable market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms may include liquidation or other preferences and anti-dilution protections that adversely affect your rights as a stockholder.

Such financing may also result in imposition of debt covenants, increased fixed payment obligations or other restrictions that may adversely affect our ability to conduct our business. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that are not favorable to us.

***If we enter into the contemplated Streeterville prepaid preferred financing, conversion and warrant mechanics could cause significant dilution and downward pressure on our stock price, restrict future financings, and trigger adverse default consequences.***

If we consummate the contemplated prepaid preferred purchase with Streeterville, our existing stockholders will experience dilution, and our stock price could be adversely affected by conversion mechanics tied to market prices. The Series C would be convertible into common stock at an alternate price equal to the lower of the fixed conversion price and 90% of the lowest daily VWAP in the ten trading days prior to conversion, subject to a floor based on Nasdaq minimum price metrics. Issuances of commitment shares and up to 3,000,000 warrant shares would further dilute stockholders. The arrangement contemplates Streeterville consent rights over specified debt and equity financings, which could limit our ability to raise capital on favorable terms or at the times we desire. Trigger events and defaults could increase our obligations or accelerate conversions (including dividend accrual at elevated rates following default), which could require us to issue additional shares at times of price weakness.

***We may not be able to continue as a going concern without additional financing, and if such financing is not available to us or is not available to us on acceptable terms, we may be forced to cease operations.***

We have a limited operating history and have incurred recurring losses from operations. For the years ended December 31, 2025 and 2024, we incurred a net loss of approximately $[●] million and approximately $15 million, respectively. Additionally, for the fiscal year ended 2023, we generated net income of approximately $5 million. Our failure to generate sufficient revenues, effectively manage expenses or raise additional capital could adversely affect our ability to achieve our intended business objectives. These matters, among others, raise substantial doubt about our ability to continue as a going concern. We expect losses on core operations to continue over the next 12 months.

We have funded our operations partially through the issuance of convertible notes, SAFEs, preferred stock, and Regulation CF offerings.

Between 2017 and 2021, we issued a series of convertible notes, raising an aggregate of approximately $11.0 million. This included $500,000 raised through convertible notes in 2017, $1.5 million raised through convertible notes in 2018 and 2019, $2.0 million raised through convertible notes in 2019, and $7.0 million raised through convertible notes in 2020 and 2021. In 2022, we completed SAFE financings for an additional $1.65 million.

We subsequently completed several rounds of preferred stock financings. In 2021 and 2022, we raised approximately $5.1 million through the issuance of Series Seed Preferred Stock, of which 409,921 shares and $1,557,461.78 were raised through a crowdfunding (CF) offering. Between 2022 and 2023, we raised approximately $3.6 million through the issuance of Series A Preferred Stock in connection with the GEM&BOLT acquisition and a related fundraising transaction. In 2023, we raised approximately $6.0 million through the issuance of Series B-1 Preferred Stock, which included the conversion of the previously issued SAFEs and was completed in connection with the Winc acquisition. In 2024, we raised approximately $293,000 through the issuance of Series B-2 Preferred Stock in connection with a debt conversion, and an additional $1.7 million through the issuance of Series B-3 Preferred Stock in a follow-on financing.

In May 2025, we completed a Regulation CF crowdfunding campaign at a purchase price of $2.85 per share, raising $470,759 and issuing 185,580 shares of Common Stock. Most recently, in December 2025, the Company closed a Regulation Crowdfunding offering at a purchase price of $2.99 per share, raising approximately $261,856 through the issuance of 87,475 shares of Common Stock. The Company currently plans to commence an additional Regulation CF crowdfunding offering in February 2026.

In addition to equity fundraising, we have capital resources available in the form of a line of credit for $8 million from Merchant Financial, other debt instruments totalling $4.9 million, and $0.5 million of cash on hand. To date we have raised a financing round of $1.2 million through a promissory notes convertible into Common Stock. We plan to raise an additional $1.8-$2.8 million through promissory notes convertible into Common Stock prior to listing to provide us with, and allow us to maintain, stockholders' equity well in excess of the required minimum under Nasdaq Listing Rule 5505(b) as well as enable us to fund our operations through at least May 2027, and after which we intend to raise additional capital pursuant to one or more registered offerings of equity or debt securities. However, we cannot be certain that additional funding will be available on acceptable terms, or at all. To the extent that we raise additional funds by issuing equity securities, our stockholders may experience significant dilution. Any debt financing, if available, may involve restrictive covenants that impact our ability to conduct business. If we are not able to raise additional capital when required or on acceptable terms, we may have to: (i) significantly delay, scale back or discontinue the development or commercialization of new products; (ii) seek collaborators for further development and commercialization of our products; or (iii) relinquish or otherwise dispose of some or all of our rights to technologies or the products that we would otherwise seek to develop or commercialize.

***We have experienced a covenant breach under our credit facility, and such and other future covenant violations could result in acceleration of our debt and materially adversely affect our liquidity.***

In August 2025, we experienced a technical breach of financial covenants under our credit facility. Although we have not received any demands from our lender and we are in discussions to obtain a waiver and/or forbearance, there is no guarantee that such waiver and/or forbearance will be obtained, and there can be no assurance that future covenant violations will not occur.

Our ability to comply with financial covenants depends on operating performance, working capital management, and access to capital, all of which are subject to significant uncertainty. Any future breach that is not waived could result in an event of default, permitting the lender to accelerate repayment, foreclose on collateral, impose additional restrictions, or terminate future availability under the facility.

If our indebtedness were accelerated or if we were unable to obtain additional waivers or refinancing on acceptable terms, we could face significant liquidity constraints, be required to raise capital on unfavorable terms, or be forced to reduce or suspend operations. Any of these outcomes could materially adversely affect our business, financial condition, and results of operations.

**Risks Related to This Offering and Ownership of Our Common Stock**

***Our historical financial statements and per-share information do not reflect our recent Reverse Stock Split, which may make our Common Stock more difficult to evaluate.***

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On January 9, 2026, we effected our Reverse Stock Split, which is legally effective as of the date of this prospectus. However, the audited financial statements and related share and per-share information included in this prospectus have not yet been retrospectively adjusted to reflect the Reverse Stock Split. As a result, historical share counts, weighted-average shares outstanding, earnings per share, and other per-share data presented in this prospectus do not reflect our current capitalization.

Because the Reverse Stock Split is not reflected in the historical financial statements included herein, investors may have difficulty evaluating and comparing our Common Stock, historical financial results, capitalization, and per-share metrics with those of other companies or with our future results. Although we expect to retrospectively adjust applicable share and per-share information in a subsequent amendment to this registration statement, until such adjustments are made, the information presented herein may not be comparable to our post–Reverse Stock Split capitalization.

***The direct listing process differs from an initial public offering underwritten on a firm-commitment basis.***

This is not an underwritten initial public offering of Common Stock. This listing of our Common Stock on Nasdaq differs from an underwritten initial public offering in several significant ways, which include, but are not limited to, the following:

· There
 are no underwriters engaged on a firm-commitment basis. Consequently, prior to the opening
 of trading on Nasdaq, there will be no traditional book building process and no price at
 which underwriters initially sold shares to the public to help inform efficient and sufficient
 price discovery with respect to the opening trades on Nasdaq. Therefore, buy and sell orders
 submitted prior to and at the opening of trading of our Common Stock on Nasdaq will not have
 the benefit of being informed by a published price range or a price at which the underwriters
 initially sold shares to the public, as would be the case in an initial public offering underwritten
 on a firm-commitment basis. Moreover, there will be no underwriters engaged on a firm-commitment
 underwritten basis assuming risk in connection with the initial resale of shares of our Common
 Stock. In an initial public offering underwritten on a firm-commitment basis, the underwriters
 may engage in "covered" short sales in an amount of shares representing the underwriters'
 option to purchase additional shares. To close a covered short position, the underwriters
 purchase shares in the open market or exercise the underwriters' option to purchase
 additional shares. In determining the source of shares to close the covered short position,
 the underwriters typically consider, among other things, the price of shares available for
 purchase in the open market as compared to the price at which they may purchase shares through
 the underwriters' option to purchase additional shares. Purchases in the open market
 to cover short positions, as well as other purchases underwriters may undertake for their
 own accounts, may have the effect of preventing a decline in the market price of shares.
 Given that there will be no underwriters' option to purchase additional shares and
 no underwriters engaging in stabilizing transactions, there could be greater volatility in
 the public price of our Common Stock during the period immediately following the listing.
 See also "— *<u>Our Common Stock currently has no public market. An active trading market may not develop or continue to be liquid and the market price of shares of our Common Stock may be volatile</u>* ."

· There is not a fixed number of shares of Common Stock available for sale. Therefore, there can be no assurance
that any Registered Stockholders or other existing stockholders will sell any or all of their Common Stock and there may initially be
a lack of supply of, or demand for, our Common Stock on Nasdaq. Alternatively, we may have a large number of Registered Stockholders or
other existing stockholders who choose to sell their Common Stock in the near term resulting in an oversupply of our Common Stock, which
could adversely impact the public price of our Common Stock once listed on Nasdaq and thereafter.

· None of our Registered Stockholders or other existing stockholders have entered into contractual lock-up
agreements or other contractual restrictions on transfer. In a firm-commitment underwritten initial public offering, it is customary for
an issuer's officers, directors, and most of its other stockholders to enter into a 180-day contractual lock-up arrangement with
the underwriters to help promote orderly trading immediately after such initial public offering. Consequently, any of our stockholders,
including our directors and officers who own our Common Stock and other significant stockholders, may sell any or all of their Common
Stock at any time (subject to any restrictions under applicable law), including immediately upon listing. If such sales were to occur
in a significant volume in a short period of time following our listing, it may result in an oversupply of our Common Stock in the market,
which could adversely impact the public price of our Common Stock.

· We will not conduct a traditional "roadshow" with underwriters prior to the opening of trading
on Nasdaq. Instead, we intend to host an investor day, as well as engage in certain other investor education meetings. In advance of the
investor day, we will announce the date for such day over financial news outlets in a manner consistent with typical corporate outreach
to investors. We will prepare an electronic presentation for this investor day, which will have content similar to a traditional roadshow
presentation, and make one version of the presentation publicly available, without restriction, on a website. There can be no guarantees
that the investor day and other investor education meetings will have the same impact on investor education as a traditional "roadshow"
conducted in connection with a firm-commitment underwritten initial public offering. As a result, there may not be efficient price discovery
with respect to our Common Stock or sufficient demand among investors immediately after our listing, which could result in a more volatile
public price of our Common Stock.

Such differences from a firm-commitment underwritten initial public offering could result in a volatile trading price for our Common Stock and uncertain trading volume, which may adversely affect your ability to sell any Common Stock that you may purchase.

***We will not receive any proceeds from the direct listing, and our management will have broad discretion in the use of any future capital we may raise.***

Because our direct listing will involve the registration of existing shares for resale by our stockholders and will not involve the issuance of new shares by the Company, we will not receive any proceeds from the direct listing. If we raise additional capital in the future through equity or debt financings, our management will have broad discretion in the use of such proceeds. The success of our business will depend on the ability of management to apply any future proceeds effectively. Management's judgment in allocating future capital may not ultimately prove successful, and investors will have limited ability to influence how such funds are used.

***Limitations on investors' ability to trace their shares to this registration statement may preclude claims under Sections 11 and 12 of the Securities Act, potentially reducing our liability exposure and limiting investors' remedies.***

In connection with this direct listing, we are registering a number of shares of our Common Stock, all of which may be sold into the public market. Unlike in a traditional initial public offering, where all shares sold in the public market are issued pursuant to a registration statement, in a direct listing, both registered and unregistered shares may become freely tradeable simultaneously. As a result, purchasers in the public market following our direct listing may not be able to determine whether their shares were issued pursuant to this registration statement.

The ability to bring a claim under Section 11 of the Securities Act of 1933 requires that the security purchased be traceable to the allegedly defective registration statement. In *Slack Technologies, LLC v. Pirani, 598 U.S. 759 (2023)*, the U.S. Supreme Court held that Section 11 applies only to shares that are actually issued pursuant to the registration statement. The U.S. Court of Appeals for the Ninth Circuit, in its 2025 opinion on remand, confirmed that the tracing requirement applies in the context of direct listings and that tracing shares to a registration statement is particularly difficult where registered and unregistered shares begin trading at the same time.

Accordingly, if you purchase our Common Stock in the open market following this Direct Listing, you may not be able to assert claims under Section 11 or Section 12(a)(2) of the Securities Act for any material misstatements or omissions in this registration statement or related prospectus. This limitation may reduce the potential remedies available to investors, limit recovery in the event of a violation of the federal securities laws, and adversely affect the market price of our Common Stock. Moreover, because our potential liability under the Securities Act may be reduced as compared to a traditional initial public offering, investors may face greater risk in the event of inaccurate or incomplete disclosure.

***Our Common Stock currently has no public market. An active trading market may not develop or continue to be liquid and the market price of shares of our Common Stock may be volatile.***

We expect our Common Stock to be listed and traded on Nasdaq. Prior to the listing on Nasdaq, there has not been a public market for any of our securities, and an active market for our Common Stock may not develop or be sustained after the listing, which could depress the market price of shares of our Common Stock and could affect the ability of our stockholders to sell our Common Stock. In the absence of an active public trading market, investors may not be able to liquidate their investments in our Common Stock. An inactive market may also impair our ability to raise capital by selling shares of our Common Stock, our ability to motivate our employees through equity incentive awards and our ability to acquire other companies, products or technologies by using shares of our Common Stock as consideration.

In addition, we cannot predict the prices at which our Common Stock may trade on Nasdaq following the listing of our Common Stock, and the market price of our Common Stock may fluctuate significantly in response to various factors, some of which are beyond our control. In particular, as this listing is taking place through a novel process that is not a firm-commitment underwritten initial public offering, there will be no traditional book building process and no price at which traditional underwriters initially sold shares to the public to help inform efficient price discovery with respect to the opening trades on Nasdaq. On the day that our shares of Common Stock are initially listed on Nasdaq, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative Current Reference Price on the basis of such accepted orders. The Current Reference Price is calculated each second and, during a 10-minute "Display Only" period, is disseminated, along with other indicative imbalance information, to market participants by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which the Advisor, in its capacity as our financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once the Advisor has notified Nasdaq that our shares of Common Stock are ready to trade, Nasdaq will calculate the Current Reference Price for our shares of Common Stock, in accordance with Nasdaq rules. If the Advisor then approves proceeding at the Current Reference Price, Nasdaq will conduct a price validation test in accordance with Nasdaq Rule 4120(c)(8). As part of conducting such price validation test, Nasdaq may consult with the Advisor, if the price bands need to be modified, to select the new price bands for purposes of applying such test iteratively until the validation tests yield a price within such bands. Upon completion of such price validation checks, the applicable orders that have been entered will be executed at such price and regular trading of shares of our Common Stock on Nasdaq will commence. The Advisor will determine when our shares of Common Stock are ready to trade and approve proceeding at the Current Reference Price primarily based on considerations of volume, timing and price. In particular, the Advisor will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the Current Reference Price. If the Advisor does not approve proceeding at the Current Reference Price (for example, due to the absence of adequate preopening buy and sell interest), the Advisor will request that Nasdaq delay the open until such a time that sufficient price discovery has been made to ensure a reasonable amount of volume crosses on the opening trade. For more information, see "*<u>Plan of Distribution</u>*."

Additionally, prior to the opening trade, there will not be a price at which underwriters initially sold shares of Common Stock to the public as there would be in a firm-commitment underwritten initial public offering. The absence of a predetermined initial public offering price could impact the range of buy and sell orders collected by Nasdaq from various broker-dealers. Consequently, upon listing on Nasdaq, the public price of our Common Stock may be more volatile than in a firm-commitment underwritten initial public offering and could decline significantly and rapidly.

Furthermore, because of our novel listing process on Nasdaq, Nasdaq's rules for ensuring compliance with its initial listing standards, such as those requiring a valuation or other compelling evidence of value, are untested. In the absence of a prior active public trading market for our Common Stock, if the price of our Common Stock or our market capitalization falls below those required by Nasdaq's eligibility standards, we may not be able to satisfy the ongoing listing criteria and may be required to delist.

In addition, because of our novel listing process and the potential consumer awareness and brand recognition of AMASS, individual investors, retail or otherwise, may have greater influence in setting the opening public price and subsequent public prices of our Common Stock on Nasdaq and may participate more in our initial trading than is typical for a firm-commitment underwritten initial public offering. These factors could result in a public price of our Common Stock that is higher than other investors (such as institutional investors) are willing to pay, which could cause volatility in the trading price of our Common Stock and an unsustainable trading price if the price of our Common Stock significantly rises upon listing and institutional investors believe our Common Stock is worth less than retail investors, in which case the price of our Common Stock may decline over time. Further, if the public price of our Common Stock is above the level that investors determine is reasonable for our Common Stock, some investors may attempt to short our Common Stock after trading begins, which would create additional downward pressure on the public price of our Common Stock. To the extent that there is a lack of consumer awareness among retail investors, such a lack of consumer awareness could reduce the value of our Common Stock and cause volatility in the trading price of our Common Stock.

The public price of our Common Stock following the listing also could be subject to wide fluctuations in response to the risk factors described in this prospectus and others beyond our control, including:

· changes in the industries in which we operate;

· variations in our operating performance and the performance of our competitors in general;

· actual or anticipated fluctuations in our quarterly or annual operating results;

· publication of research reports by securities analysts about us or our competitors or our industry;

· the public's reaction to our press releases, our other public announcements and our filings with
the SEC;

· our failure or the failure of our competitors to meet analysts' projections or guidance that we
or our competitors may give to the market;

· additions and departures of key personnel;

· changes in laws and regulations affecting our business;

· commencement of, or involvement in, litigation involving us;

· changes in our capital structure, such as future issuances of securities or the incurrence of additional
debt;

· the volume of shares of our Common Stock available for public sale; and

· general economic and political conditions such as recessions, interest rates, fuel prices, foreign currency
fluctuations, international tariffs, social, political and economic risks and acts of war or terrorism.

In addition, securities exchanges have experienced price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. Stock prices of many companies have fluctuated in a manner often unrelated to the operating performance of those companies. These fluctuations may be even more pronounced in the trading market for our Common Stock shortly following the listing of our Common Stock on Nasdaq as a result of the supply and demand forces described above. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business and harm our business, results of operations and financial condition.

***Future sales of Common Stock by our Registered Stockholders and other existing stockholders could cause our share price to decline.***

We currently expect our Common Stock to be listed and traded on Nasdaq. Prior to listing on Nasdaq, there has been no public market for our Common Stock and there has not been a sustained history of trading in our Common Stock in "over-the-counter" markets. While our Common Stock may be sold after our listing on Nasdaq by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders in accordance with Rule 144 under the Securities Act, unlike a firm-commitment underwritten initial public offering, there can be no assurance that any Registered Stockholders or other existing stockholders will sell any of their shares of Common Stock and there may initially be a lack of supply of, or demand for, Common Stock on Nasdaq. As described herein, certain shares of our Common Stock outstanding as of the date hereof will be registered under this registration statement. There can be no assurance that the Registered Stockholders and other existing stockholders will not sell all of their shares of Common Stock, resulting in an oversupply of our Common Stock on Nasdaq. In the case of a lack of supply of our Common Stock, the trading price of our Common Stock may rise to an unsustainable level. Further, institutional investors may be discouraged from purchasing our Common Stock if they are unable to purchase a block of our Common Stock in the open market due to a potential unwillingness of our existing stockholders to sell a sufficient amount of Common Stock at the price offered by such institutional investors and the greater influence individual investors have in setting the trading price. If institutional investors are unable to purchase our Common Stock, the market for our Common Stock may be more volatile without the influence of long-term institutional investors holding significant amounts of our Common Stock. In the case of a lack of market demand for our Common Stock, the trading price of our Common Stock could decline significantly and rapidly after our listing. Therefore, an active, liquid and orderly trading market for our Common Stock may not initially develop or be sustained, which could significantly depress the public price of our Common Stock and/or result in significant volatility, which could affect your ability to sell your shares of Common Stock.

***You will be diluted by the automatic conversion of our preferred stock and may be further diluted by future issuances of preferred stock or additional Common Stock in connection with our incentive plans, acquisitions or otherwise; future sales of such shares in the public market, or the expectations that such sales may occur, could lower our stock price.***

Because our direct listing will not involve the issuance of new shares by us, we will not receive any proceeds in connection with the listing. Following the listing, our board of directors will have the ability, subject to applicable law, the Certificate of Incorporation, our bylaws, stock exchange rules, and any applicable contractual restrictions, to issue additional shares of our Common Stock or other securities convertible into or exercisable for shares of our Common Stock, including in connection with our equity incentive plans, acquisitions, and other strategic transactions. Any such issuances could dilute the ownership interests of existing stockholders, and such dilution could be significant. In all cases, issuances are limited to the number of shares then authorized but unissued (or reserved) under the Certificate of Incorporation, and certain issuances—such as the adoption of new equity compensation plans or material amendments to existing plans if we are listed—may require stockholder approval under stock exchange rules. The Certificate of Incorporation does not grant preemptive rights, so existing stockholders will not be entitled to purchase additional shares to maintain their proportionate ownership.

Concurrently with the initial public filing of our prospectus, all outstanding shares of Preferred Stock will automatically convert into shares of Common Stock. Despite this automatic conversion at the time of the direct listing, we could issue additional shares of Preferred Stock prior to, or after the direct listing. For example, we are currently evaluating a prepaid preferred purchase facility with Streeterville for up to $30 million of Series C preferred stock, including an initial $6 million tranche at listing. Such conversions and any issuances of additional Preferred Stock could adversely affect the rights of, and dilute the interests of, holders of our Common Stock and could depress the market price of our Common Stock.

Sales of substantial amounts of our Common Stock in the public market after the direct listing, or the perception that these sales could occur, could also adversely affect the market price of our Common Stock. In a direct listing, a significant number of shares may be immediately eligible for sale upon effectiveness of the registration statement, subject to applicable securities laws and any contractual transfer restrictions. If our stockholders sell, or are perceived as intending to sell, substantial amounts of our Common Stock, the market price of our Common Stock could decline.

***Because we have no current plans to pay cash dividends on our Common Stock, you may not receive any return on investment unless you sell your Common Stock for a price greater than that which you paid.***

We currently intend to retain all available funds and any future earnings to fund the development, commercialization and growth of our business, and therefore we do not anticipate declaring or paying any cash dividends on our Common Stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions and other factors that our board of directors may deem relevant. Our future ability to pay cash dividends on our Common Stock may also be limited by the terms of any future debt securities or credit facility. As a result, capital appreciation, if any, of the Common Stock you purchase in this offering will be your sole source of gain for the foreseeable future.

***We are an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our Common Stock less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of certain exemptions and relief from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including (i) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (ii) having the option of delaying the adoption of certain new or revised financial accounting standards, (iii) reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements and (iv) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We may take advantage of these exemptions until such time that we are no longer an emerging growth company. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock. Further, pursuant to Section 107 of the JOBS Act, we have elected to take advantage of the extended transition period for complying with new or revised accounting standards until those standards would otherwise apply to private companies. As a result, our operating results and financial statements may not be comparable to the operating results and financial statements of other companies who have adopted the new or revised accounting standards.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary of this offering, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our Common Stock held by non-affiliates was $700.0 million or more as of the last business day of the second fiscal quarter of such year or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

We are also a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies until the fiscal year following the determination that our Common Stock held by non-affiliates is $250 million or more measured on the last business day of our second fiscal quarter, or our annual revenues are less than $100 million during the most recently completed fiscal year and our Common Stock held by non-affiliates is $700 million or more measured on the last business day of our second fiscal quarter.

It is possible that some investors will find our Common Stock less attractive as a result of the foregoing, which may result in a less active trading market for our Common Stock and higher volatility in our stock price.

Our Certificate of Incorporation provides for an exclusive forum in the Court of Chancery of the State of Delaware for certain disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.

 ***Our Certificate of Incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware and, to the extent enforceable, the federal district courts of the United States of America will be the exclusive forums for certain disputes between us and our stockholders, which could limit our stockholders' ability to choose the judicial forum for disputes with us or our directors, officers or employees.***

 ****

Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all Securities Act actions. Accordingly, both state and federal courts have jurisdiction to entertain such claims. To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our Certificate of Incorporation provides that the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act and the Exchange Act. While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring a claim in a venue other than those designated in the exclusive forum provisions. In such instance, we would expect to vigorously assert the validity and enforceability of the exclusive forum provisions of our Certificate of Incorporation.

Any person or entity purchasing or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to these provisions. These exclusive-forum provisions may limit a stockholder's ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. If a court were to find either exclusive-forum provision in our Certificate of Incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could harm our results of operations.

***The public price of our shares of Common Stock, upon listing on Nasdaq, may have little or no relationship to the historical sales prices of our shares of Common Stock in private transactions.***

 ****

Prior to listing on Nasdaq, there has been no public market for our shares of Common Stock. Our Common Stock has a limited history of trading in private transactions. However, this information may have little or no relation to broader market demand for our shares of Common Stock and thus the initial public price of our shares of Common Stock on Nasdaq once trading begins. As a result, you should not place undue reliance on these historical sales prices as they may differ materially from the opening public prices and subsequent public prices of our shares of Common Stock on Nasdaq. For additional details about how the initial listing price on Nasdaq will be determined, see "*<u>Plan of Distribution</u>*<u>.</u>"

***The uncertainty associated with the fact that few companies have undertaken direct listings to date may lead to increased volatility and pricing challenges for our Common Stock.***

 ****

Few companies have conducted direct listings, and the process by which shares of our Common Stock will be listed on Nasdaq is a novel process. The absence of a traditional underwritten offering may result in a less orderly market for our Common Stock, increased volatility in the trading price, and potential difficulties in achieving a stable market price. Unlike an initial public offering, there is no firm-commitment underwritten offering to help inform efficient and sufficient price discovery. Consequently, the public price of our Common Stock may be more volatile than it would be if shares were initially listed in connection with a firm-commitment underwritten initial public offering. In addition, the trading volume and price of shares of our Common Stock may be more volatile and subject to greater fluctuations due to the direct listing method.

***The direct listing process differs from an initial public offering underwritten on a firm-commitment basis and the impact of awareness of our brand and investor recognition of our Company on the demand for our Common Stock is unpredictable and our marketing and brand development efforts may not be successful.***

We will not conduct a traditional "roadshow" with underwriters prior to the opening of trading of our Common Stock on Nasdaq. Instead, we may engage in certain investor presentations and educational meetings to enhance our brand awareness and investor recognition of our Company. In advance of any investor presentation or educational meeting, we will announce the date for such presentation or meeting through financial news outlets in a manner consistent with typical corporate outreach to investors. We will prepare an electronic presentation for any investor presentation or educational meeting that we hold, and will make the presentation publicly available, without restriction, on a website.

There can be no assurance that any investor presentations or other educational meetings that we hold will have the same impact on awareness of our brand and investor recognition of our Company as a traditional "roadshow" conducted in connection with a firm-commitment underwritten initial public offering. As a result, there may not be efficient price discovery with respect to our Common Stock or sufficient demand among investors immediately following our listing, which could result in a more volatile public price of our Common Stock.

***Our Certificate of Incorporation renounces corporate opportunities that may be favorable to us.***

Our Certificate of Incorporation contains a provision that, to the fullest extent permitted by law, renounces any interest or expectancy in certain business opportunities (referred to as "Excluded Opportunities") that may be presented to, acquired by or developed by (i) our directors who are not employees of the Company or its subsidiaries and (ii) any holder of our Preferred Stock or any of such holder's partners, members, directors, stockholders, employees, affiliates or agents, in each case other than individuals who are employees of the Company or its subsidiaries (collectively, the persons referred to in clauses (i) and (ii) are "Covered Persons"), unless such interest or expectancy is presented to, acquired by or developed by the applicable Covered Person expressly and solely in such Covered Person's capacity as a director of the Company. As a result of this provision, these Covered Persons generally have no duty to present such Excluded Opportunities to us, even if the opportunity is one that we might reasonably be expected to pursue or that could be complementary to our business.

This renunciation of corporate opportunities may limit our ability to pursue attractive business opportunities, including opportunities that could enhance our competitive position, accelerate our growth or improve our financial performance. In addition, Covered Persons may pursue such opportunities for their own benefit or for the benefit of other entities, including entities that may compete with us now or in the future, and we may have limited or no recourse against such persons with respect to these matters.

Further, any amendment or repeal of this provision requires the affirmative vote of the requisite holders of our capital stock and, even if amended or repealed, any such change would apply only prospectively and would not affect rights that existed with respect to actions or omissions occurring prior to such amendment or repeal. As a result, this provision may continue to adversely affect us even if our stockholders later determine that it is no longer in our best interests.

***We have not agreed to indemnify the Registered Stockholders for claims arising in connection with sales of our Common Stock in this offering, however, claims for indemnification by our directors and officers may reduce the amount of money available to us.***

We have not agreed to indemnify the Registered Stockholders for claims arising in connection with sales of our Common Stock under this prospectus. However, our Certificate of Incorporation provides that our directors and officers will be indemnified by us to the fullest extent permitted by Delaware law. In addition, as permitted by Section 145 of the Delaware General Corporation Law, our Certificate of Incorporation and any indemnification agreements that we enter into with our directors and officers following the effectiveness of the registration statement of which this prospectus forms a part:

· we will indemnify our directors and officers for serving us in those capacities or for serving other business
enterprises at our request, to the fullest extent permitted by Delaware law;

· Delaware law provides that a corporation may indemnify such person if such person acted in good faith
and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to
any criminal proceeding, had no reasonable cause to believe such person's conduct was unlawful;

· we may, in our discretion, indemnify employees and agents in those circumstances where indemnification
is permitted by applicable law;

· we are required to advance expenses, as incurred, to our directors and officers in connection with defending
a proceeding, except that such directors or officers shall undertake to repay such advances if it is ultimately determined that such person
is not entitled to indemnification;

· we are authorized to enter into indemnification agreements with our directors, officers, employees, and
agents and to obtain insurance to indemnify such persons; and

· we may not retroactively amend our Certificate of Incorporation provisions
to reduce our indemnification obligations to directors, officers, employees, and agents.

While we have procured directors' and officers' liability insurance policies, such insurance policies may not be available to us in the future at a reasonable rate, may not cover all potential claims for indemnification, and may not be adequate to indemnify us for all liability. Large indemnity payments to our directors and officers in excess of any available insurance would materially adversely affect our business, financial condition, and results of operations.

***Federal and state laws governing ownership interests in alcoholic beverage licensees may impact your ability to invest in the company.***

Alcohol beverage licensees, their owners, officers, employees and agents are subject to state and federal trade practice and "tied-house" laws that restrict and/or prohibit certain ownership or financial interests, relationships and interactions among and between the three tiers of the alcoholic beverage industry - those tiers being the manufacturing or supply tier, the wholesale tier, and the retail tier. The rules and exceptions to the rules regarding such investments are materially different among the federal government and each state. They are also subject to frequent change and varying degrees of enforcement and focus. Further, alcohol beverage licensees are subject to applicable state and federal laws restricting and/or prohibiting ownership and relationships with individuals with certain criminal histories, including without limitation, felonies, certain misdemeanor violations, and crimes of moral turpitude. We cannot make any assurances that investments in the company by investors are permissible by the federal government or state regulatory agencies if (a) an investor or qualifying family member has an impermissible criminal violation, or (b) such investor or investor's qualifying family member holds direct or indirect interests in domestic or foreign alcoholic beverage licensees or, in some instances, is even just employed by or contracted as an agent with another licensee, or (c) such investor's investment results in any other trade practice or tied house violation under state or federal law. No state alcohol regulatory agency or federal alcohol regulatory authority has reviewed, passed on or endorsed the merits, adequacy or accuracy of this Offering, or the conformity of its/their provisions under any law or act, including without limitation the California Alcohol Beverage Act or Federal Alcohol Administration Act. It is within the purview of the TTB, ABC and each state alcohol regulatory agency to investigate our compliance with federal and state trade practice and tied-house requirements regardless of such investors' amount of investment in the company. In connection therewith, Investor is required to represent and warrant to Company in connection with this offering that Investor is not disqualified under applicable laws from owning equity interests in the Company and that Investor will promptly provide Company all information and documentation necessary or desirable for the Company to make such determination. If Investor is disqualified at the time of investment, not truthful in its representation to the Company, or subsequently takes any actions or causes any omissions that result in a disqualifying event, investor's shares may be subject to redemption.

***The Company may undergo a future change that could affect your investment***

The Company may change its business, management or advisory team, IP portfolio and licensing, location of its principal place of business, its production or distribution partners and strategic alliances, and alcohol beverage licenses, or other change that may result in adverse effects on your investment. Additionally, the Company may alter its corporate structure through a merger, acquisition, consolidation, or other restructuring of its current corporate entity structure. Should such a future change occur, it would be based on management's review and determination that it is in the best interests of the Company.

***Reports published by analysts, including projections in those reports that differ from our actual results, could adversely affect the price and trading volume of our Common Stock.***

Securities research analysts may establish and publish their own periodic projections for our Company. These projections may vary widely and may not accurately predict the results we actually achieve. The price of our Common Stock may decline if our actual results do not match the projections of these securities research analysts. Similarly, if one or more of the analysts who write reports on us downgrades our stock or publishes inaccurate or unfavorable research about our business, our stock price could decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, our stock price or trading volume could decline.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements that can involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, business plan and strategy, future revenue, timing and likelihood of success, plans and objectives of management for future operations, future results of anticipated products and prospects, plans and objectives of management are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

· the implementation of our business model and our strategic plans for our business, product, services and
technology;

· our commercialization and marketing capabilities and strategy;

· our ability to establish or maintain collaborations or strategic relationships or obtain additional funding;

· our competitive position;

· the scope of protection that we able to establish and maintain for intellectual property rights covering
our products, services and technology;

· developments and projections relating to our competitors and our industry;

· our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;

· the period over which we estimate our existing cash and cash equivalents will be sufficient to fund our
future operating expenses and capital expenditure requirements; and

· the impact of new or existing laws and regulations on our business and strategy.

We have based these forward-looking statements largely on our current expectations and projections about our business, the industry in which we operate and financial trends that we believe may affect our business, financial condition, results of operations and prospects, and these forward-looking statements are not guarantees of future performance or development. These forward-looking statements speak only as of the date of this prospectus and are subject to a number of risks, uncertainties and assumptions, including, but not limited to, those described in the section titled "*<u>Risk Factors</u>*" and elsewhere in this prospectus. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein until after we distribute this prospectus, whether as a result of any new information, future events or otherwise.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements.

**MARKET AND INDUSTRY DATA**

This prospectus includes estimates regarding market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity, and market size, are based on our management's knowledge and experience in the markets in which we operate, together with currently available information obtained from various sources, including publicly available information, industry reports and publications, surveys, our customers, trade and business organizations, and other contacts in the markets in which we operate. Certain information is based on management estimates, which have been derived from third-party sources, as well as data from our internal research. We have not commissioned any of the industry publications or other reports generated by third-party providers that we refer to in this prospectus.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the estimated market and industry data included in this prospectus is generally reliable, such information is inherently uncertain and imprecise. We have not independently verified the accuracy or completeness of the data contained therein. Market and industry data is also subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process, and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions, and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "*<u>Risk Factors</u>*" and "*<u>Cautionary Note Regarding Forward-Looking Statements</u>*." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates.

The sources of the statistical data, estimates, and market and industry data contained in this prospectus are provided below. The content of such sources, except to the extent specifically set forth in this prospectus, does not constitute a part of this prospectus and is not incorporated herein.

1 Precedence Research: Functional Beverages Market Size, Share and Trends 2026 to 2035 Report Date: December 2025 Available at: https://www.precedenceresearch.com/functional-beverages-market

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| | |
|:---|:---|
| 2 | Fortune Business Insights: U.S. Non-Alcoholic Beverages Market Size, Share & Industry Analysis, By Type (Fruits & Vegetable Juice, RTD Coffee, RTD Tea, Functional Drinks, Flavored Water, Coffee, Tea, Smoothies, and Others), By Distribution Channel (Food Service and Retail [Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Retail, and Others]), and Regional Forecast, 2025-2032<br> Report Date: December 2025<br> Available at: https://www.fortunebusinessinsights.com/u-s-non-alcoholic-beverages-market-107932 |

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| | |
|:---|:---|
| 3.0 | Mordor Intelligence: US Wine Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)<br> Report Date: January 2026<br> Available at: https://www.mordorintelligence.com/industry-reports/united-states-wine-market |
| 4.0 | Mordor Intelligence: United States Spirits Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)<br> Report Date: January 2026<br> Available at: https://www.mordorintelligence.com/industry-reports/united-states-spirits-market |
| 5.0 | National Beer Wholesalers Association: The Economic Impact and Value Added by U.S. Beer Distributors<br> Report Date: February 2020<br> Available at: https://nbwa.org/wp-content/uploads/2022/10/NBWA-Report-2020-Beer-Distributors-Value-Added-003.pdf |
| 6.0 | Grand View Research, Inc.: Wine & Spirits – Travel Retail Market Statistics<br> Available at: https://www.grandviewresearch.com/horizon/statistics/travel-retail-market/product/wine-spirits/global |
| 7.0 | IMARC Group: Applied Business and Economic Research Associates: Travel Retail Market Report by Product Type (Perfume and Cosmetics, Wine and Spirit, Electronics, Luxury Goods, Food, Confectionery and Catering, Tobacco, and Others), Sector (Duty-Free, Duty Paid), Distribution Channel (Airports, Cruise Liner, Railway Station, Border, Downtown and Hotel Shop), and Region 2025-2033<br> Report Date: January 2025<br> Available at: https://www.imarcgroup.com/global-travel-retail-market |

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**Market Opportunity**

**Functional Beverages**

The U.S. functional beverage market, which includes energy drinks, sports hydration, protein beverages, and other wellness-focused ready-to-drink products, was estimated at approximately $51.84 billion in 2025¹. The market is projected to grow to $71,.03 billion by 2030<sup>1</sup>. Growth is driven by heightened consumer focus on health and wellness, demand for beverages with added functional benefits, and the popularity of natural, low-sugar, and plant-based formulations. Energy and sports drinks are the largest sub-segments, accounting for nearly half of category sales.

**Non-Alcoholic Beverages**

The U.S. non-alcoholic beverages market size was valued at USD 169.55 billion in 2024. The market is projected to grow from USD 178.10 billion in 2025 to USD 246.90 billion by 2032, exhibiting a CAGR of 4.78% during the forecast period of 2025-2032<sup>2</sup>. The category is undergoing significant shifts as consumers increasingly opt for bottled water, functional and 'better-for-you' beverages, and low- or no-sugar alternatives. Premiumization, convenience, and sustainability are shaping category dynamics, as brands innovate with zero-sugar formulations, eco-friendly packaging, and functional offerings.

**Alcoholic Beverages – Wine and Spirits**

US wine market size in 2026 is estimated at USD 360.3 billion, growing from 2025 value of USD 352.34 billion with 2031 projections showing USD 402.93 billion, growing at 2.26% CAGR over 2026-2031<sup>3</sup>. Driven by changing consumer preferences and a pronounced tilt towards premiumization, the U.S. wine market is on an upward trajectory. Younger consumers are increasingly favoring higher-quality wines, often opting for boutique or vineyard-specific labels that promise distinct character and authenticity. Innovations such as canned formats and resealable bottles are making sparkling and rosé wines more accessible, elevating their appeal beyond just celebratory moments.

The United States spirits market size is expected to reach USD 123.48 billion in 2026 and is forecast to climb to USD 140.32 billion by 2031, advancing at a 2.59% CAGR during the period<sup>4</sup>. Premiumization is driving value growth as consumers reduce their drinking frequency yet willingly pay more for super-premium and ultra-premium tiers, allowing supplier revenue to rise even as total case volumes soften. Craft authenticity, once the growth engine, now competes with broader quality cues such as age statements, provenance, and sustainability claims that resonate with urban, high-income buyers.

**TRADEMARKS, SERVICE MARKS AND TRADENAMES**

We own or otherwise have rights to the trademarks, including those mentioned in this prospectus, used in conjunction with the operation of our business. This prospectus includes our own trademarks, which are protected under applicable intellectual property laws, as well as trademarks, service marks and tradenames of other entities, which are the property of their respective owners. Solely for convenience, trademarks, trade names and service marks referred to in this prospectus may appear without the <sup>®</sup>, <sup>TM</sup> or <sup>SM</sup> symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks, service marks and tradenames. We do not intend our use or display of other entities' trademarks, service marks or tradenames to imply a relationship with, or endorsement or sponsorship of us by, any other entities.

**USE OF PROCEEDS**

The Registered Stockholders may, or may not, elect to sell shares of our Common Stock covered by this prospectus. To the extent any Registered Stockholder chooses to sell shares of our Common Stock covered by this prospectus, we will not receive any proceeds from any such sales of our Common Stock. See "*<u>Principal and Registered Stockholders</u>.*"

**DIVIDEND POLICY**

We have never declared or paid dividends on our Common Stock. We currently intend to retain all available funds and any future earnings to fund the development, commercialization and growth of our business, and therefore we do not anticipate declaring or paying any dividends on our Common Stock in the foreseeable future. Any future determination as to the declaration and payment of dividends, if any, will be at the discretion of our board of directors. Any such determination will also depend upon our business prospects, operating results, financial condition, capital requirements, general business conditions and other factors that our board of directors may deem relevant. Our future ability to pay dividends on our Common Stock may also be limited by the terms of any future debt securities or credit facility*.***

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and capitalization as of December 31, 2025. On January 9, 2026, we filed with the State of Delaware, the Certificate of Incorporation, which, among other things, effected the Reverse Stock Split at a ratio of one-for-three (1-for-3), applied uniformly to all holders of Common Stock. The conversion rates of our outstanding shares of Preferred Stock were adjusted proportionately in accordance with their terms.

This table should be read in conjunction with, and is qualified in its entirety by reference to, our financial statements and related notes, and the section entitled "*<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>*" appearing elsewhere in this prospectus.

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| | |
|:---|:---|
|  | As of December 31, 2025 |
|  | Actual |
| Cash and cash equivalents | $[ ] |
| Stockholders' equity: |  |
| Preferred stock, $0.00001 par value per share; 41,192,462 shares authorized; and 21,706,939 shares issued and outstanding | [ ] |
| Common Stock, $0.00001 par value per share; 63,500,000 shares authorized; and 8,697,983 shares issued and outstanding | [ ] |
| Additional paid-in capital | [ ] |
| Accumulated deficit | [ ] |
| Total stockholders' equity | $[ ] |
| Total capitalization | $[ ] |

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes and other financial information appearing elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the "<u>Risk Factors</u>" section of this prospectus, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes included elsewhere in this prospectus. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in the section entitled "*<u>Risk Factors</u>*." This MD&A, which should be read in conjunction with our Financial Statements, is organized as follows:

**Overview.** This section provides a general description of our business and brief descriptions of recent goodwill and trademarks impairments, which we believe is important in understanding the results of our operations, financial condition, and potential future trends.

**Strategy.** This section provides a description of our strategy and a discussion of a recent development, and significant divestitures, acquisitions, and investments.

**Results of operations.** This section provides an analysis of our results of operations presented on a business segment basis. In addition, a brief description of significant transactions and other items that affect the comparability of the results is provided.

**Liquidity and capital resources.** This section provides an analysis of our cash flows, outstanding debt, liquidity position, and commitments. Included in the analysis of outstanding debt is a discussion of the financial capacity available to fund our on-going operations and future commitments, as well as a discussion of other financing arrangements.

**Critical accounting policies and estimates.** This section identifies accounting policies that are considered important to our results of operations and financial condition, require significant judgment, and involve significant management estimates. Our significant accounting policies, including those considered to be critical accounting policies, are summarized in Note 1.

**Overview**

We are a consumer packaged goods company focused on developing, marketing, and distributing a portfolio of premium beverage brands across the wine, spirits, and functional non-alcoholic categories with the ethos of meeting the needs of the modern day consumer. We have also historically offered a limited selection of personal and self-care products, but such products are not a priority on a go-forward basis as we focus on growing our beverage portfolio. Our products are primarily sold through a three-tier system to wholesale distributors, who then sell to retailers, bars, and restaurants, as well as directly to consumers through our e-commerce platforms.

Our business is driven by (i) the strength of our brands, (ii) the breadth and depth of our distribution network, (iii) consumer adoption of new product innovations, and (iv) our ability to manage costs while investing in long-term growth. We measure performance not only by revenue and profitability, but also by key operating metrics such as shipments, depletions, retail scan data, points of distribution ("PODs"), and velocity.

Our internal management financial reporting consists of two business divisions: (i) Wine and (ii) Spirits. We report our operating results in two segments: (i) Wine and (ii) Spirits.

In the Wine segment, we offer a portfolio that includes organic, biodynamic, and "better for you" premium wine brands, comprising both domestically produced and imported wines. The wine segment also includes our non-alcoholic wine business. In our Spirits segment, our portfolio includes AMASS spirits, GEM&BOLT mezcal, and Calirosa tequila. The Spirits segment also includes our non-alcoholic spirits products and, historically, a limited amount of personal and self-care products, which are not a priority on a go-forward basis. Certain items such as costs related to corporate communications, development, finance, strategy and growth, executive management, human resources, investor relations, IT, and legal are general costs applicable to the consolidated group and are not allocated to the reportable segments. These costs are not included in our Chief Operating Decision Maker's (CODM) evaluation of the operating income (loss) performance of the other reportable segments.

Our business segments reflect how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management, and the structure of our internal financial reporting.

**Geographic Markets**

Substantially all of our net revenues are currently generated in the United States, which represents our primary market across our spirits, wine, and non-alcoholic beverage portfolios. We have limited international exposure. Certain of our brands have historically been sold in Europe, Canada, and Asia on a limited basis, primarily through third-party distributors or production-related arrangements, and such sales have not been material to our consolidated revenues. In addition, certain of our agave-based spirits products are produced in Mexico by our fully owned Mexican subsidiary and third-party production arrangements, but we do not currently operate material direct sales or distribution operations outside the United States. While our brands may reach consumers outside the United States through isolated or opportunistic transactions, we do not presently have established, ongoing commercial operations in Canada, Europe, Asia, or Latin America.

**Strategy**

Our business strategy for the Wine segment is centered on generating consistent cash flow while preserving market positioning and selectively growing key brands that drive long-term enterprise value. We are optimizing the portfolio with a focus on brands that demonstrate sustainable velocity and margin expansion, while rationalizing non-core labels to reduce complexity and improve working capital efficiency. We remain a committed supplier to the U.S. three-tier system and continue to deepen our relationships with key distributors and national accounts. Our approach balances near-term cash generation with long-term brand equity development. This includes disciplined cost management, tighter inventory controls, and increased focus on higher-performing SKUs, while selectively investing behind priority brands to maintain growth momentum. By maintaining our premium positioning and generating cash flow across the portfolio, we believe we are well positioned to navigate industry headwinds and deliver shareholder value.

In June 2023, we completed the sale of our wine direct-to-consumer business ("Winc"). The decision to divest from Winc was driven by our strategic focus on scaling our wholesale, on-premise, and retail distribution channels, where we believe we can generate more sustainable long-term growth and improved unit economics. While the divestiture resulted in certain short-term revenue losses and transition costs, we believe this trade-off positions us to achieve our long-term objectives of building a more efficient, capital-light platform and driving growth through our core portfolio of beverage alcohol and functional beverage brands. Proceeds from the sale were used to strengthen our liquidity position and support investments in brand development and innovation.

Our strategy for the Spirits segment reflects a disciplined approach, with a near-term deprioritization in 2026 as we position the business for renewed growth in subsequent periods. We are actively managing existing brands to protect cash flow and maintain distribution presence, while deferring significant incremental investment until market conditions and capital allocation priorities support accelerated expansion. Looking forward, we plan to pursue strategic acquisitions that complement our portfolio and enhance our competitiveness in premium spirits categories. Concurrently, we are establishing a dedicated on-premise sales team to strengthen our presence in bars, restaurants, and hospitality channels—key entry points for brand discovery and long-term consumer adoption. This measured approach balances short-term capital discipline with long-term growth ambitions. By preserving optionality for acquisitions, preparing for enhanced on-premise capabilities, and maintaining core distribution relationships, we aim to position our Spirits business as a meaningful growth driver in future periods, aligned with our broader portfolio strategy. The Company's long-term strategy includes a plan to acquire or develop brands to optimize the portfolio of products for growth initiatives and substantially reduced liabilities. At times, the Company may divest or shutter brands to extract value or preserve capital depending on performance and market outlook.

In April 2024, the Company sold the AMASS trademark to Resonant Subholdings, LLC ("Resonant") and entered into an arrangement under which the Company will repurchase the trademark from Resonant after repayment of the Secured Promissory note entered into concurrently with this transaction. The Company simultaneously entered into an exclusive, worldwide, royalty-free license that permits our continued use of the AMASS name for our product lines and marketing operations. Concurrently, a third-party investor loaned Resonant funds, which was secured by the underlying trademark. The Company received those funds which was memorialized into the Secured Promissory Note described in Note 10. As Resonant is a special purpose vehicle whose director is a related party, it is consolidated with the Company under variable interest entity ("VIE") accounting guidance as the Company is the primary beneficiary. Accordingly, the transaction of the sale of the trademark had no impact on the Company's consolidated financial statements, as all intercompany activity between the Company and Resonant was eliminated in consolidation. However, the Company recognized the related Secured Promissory Note and associated interest expense on its consolidated balance sheets and statements of operations. The note was structured in this manner to more fully secure the lender's position. Subsequent to the original April 2024 secured note, the Company and lender agreed to extend the maturity of the note, including most recently in January 2026, through April 2027.

*Marketing, Sales, and Distribution*

 

Our marketing, sales, and distribution activities are primarily managed on a geographic basis, enabling us to leverage market-specific strengths and leading positions where established. Consumer preferences and competitive dynamics vary significantly across geographies, and our approach is designed to adapt to these differences while maintaining consistent brand positioning.

In our primary U.S. market, we offer a diversified portfolio across wine, spirits, and functional/non-alcoholic beverages. Distribution is generally structured through separate networks for (i) our wine portfolio and (ii) our spirits and functional beverage portfolios, allowing for more targeted execution and channel alignment. We remain focused on optimizing our presence within the U.S. 3-tier system while expanding our retailer footprint. The competitive environment is intense across each of our business segments.

*Long-Term Financial Model*

We remain committed to our long-term objectives of:

- Driving sales growth across priority brands and categories;

- Expanding margins through portfolio mix, operational efficiencies, and disciplined cost management;

- Generating consistent cash flow to support growth investments and strengthen our balance sheet.

While we are not currently a dividend-paying company, we are prioritizing reinvestment in the business to support growth initiatives, with an emphasis on long-term value creation for shareholders.

*Consumer and Market Environment*

We operate across several segments of the beverage market, including premium spirits, non-alcoholic distilled alternatives, and functional beverages in development. Each of these categories is influenced by distinct consumer trends, regulatory frameworks, and competitive dynamics.

Within our wine portfolio, category growth in North America has stagnated in recent years, reflecting broader demographic and consumption shifts. Younger consumers have gravitated toward agave-based spirits, ready-to-drink products, and low- or no-alcohol alternatives, resulting in reduced volume growth in traditional table wine segments. While our focus on organic, NSA, sugar-free, non-alcoholic, and other "better-for-you" products resonates with these consumers, we expect competitive intensity and promotional activity to remain high.

The functional beverage segment, which we plan to enter through innovation and potential partnerships, is still in the early stages of development. Consumer understanding of functional ingredients and willingness to pay a premium for perceived benefits are still forming. While we believe this space presents long-term opportunity, the market's ultimate size, rate of growth, and regulatory landscape remain uncertain.

Across all our categories, macroeconomic conditions, evolving distribution models, and shifts in consumer preferences toward wellness, sustainability, and transparency continue to shape demand. We intend to remain disciplined in evaluating category exposure, pricing architecture, and product innovation as the beverage landscape evolves.

**Recent Developments**

● *Seventh Amended and Rested Certificate of Incorporation (January 2026)*. On January 9, 2026, we filed with the State of Delaware, the Certificate of Incorporation, which, among other things, effected the Reverse Stock Split at a ratio of one-for-three (1-for-3), applied uniformly to all holders of Common Stock. The conversion rates of our outstanding shares of Preferred Stock were adjusted proportionately in accordance with their terms.

● *222 Spirits acquisition (Sept 2024).* We issued 2,220,150 shares of Series B-3 Preferred Stock as consideration and applied purchase accounting, recording identifiable intangibles (principally tradenames) and goodwill primarily attributable to expected synergies.

● *Winc.com disposition (June 2023).* We sold the subscription e-commerce unit for consideration including senior and subordinated notes and equity interests in the buyer, recognizing a gain on sale in 2023; the notes were subsequently amended in 2024 and largely repaid, with the remaining balance $0.4 million at December 31, 2024.

● *Loss contracts (2024)*. We recognized $3.7 million of losses on contracts, reflecting (a) adverse bulk-wine purchase commitments ($2.0 million through 2025) and (b) a supplier agreement to sell wine to Full Glass at prices expected to be loss-making ($1.7 million). The related liability was $2.9 million at December 31, 2024.

● *Goodwill impairment.* We recorded a $0.3 million goodwill impairment related to a spirits reporting unit following indicators of underperformance.

● *Restatement (2024).* We corrected errors related to loss contracts, warrant valuation for stock-based compensation, goodwill impairment measurement, and investment classification/measurement for Full Glass.

**Results of Operations**

**Financial Highlights**

Below is a summary of changes in net income (loss) in 2024 from 2023, with comparable adjustments broken out and shown separately (further discussed below):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Net revenue | $21668525 | $33483852 | $(11815327) | -35% |
| Cost of net revenue | 19581499 | 22734166 | (3152667) | -14% |
| Gross profit | 2087026 | 10749686 | (8662660) | -81% |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 4122121 | 3768258 | 353863 | 9% |
| &nbsp;&nbsp;&nbsp;General and administrative | 10039494 | 15276837 | (5237343) | -34% |
| &nbsp;&nbsp;&nbsp;Research and development | 168365 | 151812 | 16553 | 11% |
| &nbsp;&nbsp;&nbsp;Impairment expense | 322049 | 1864713 | (1542664) | -83% |
| Total operating expenses | 14652029 | 21061620 | (6409591) | -30% |
| Comparable loss from operations | (12565003) | (10311934) | (2253069) | 22% |
| Other income (expense) | (2690525) | 15187309 | (17877834) | -118% |
| Provision for income taxes | - | - | - | N/A |
| Net income (loss) | $(15255528) | $4875375 | $(20130903) | -413% |

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**Comparable Adjustments**

Management excludes items that affect comparability from its evaluation of the results of each operating segment as these Comparable Adjustments are not reflective of core operations of the segments. Segment operating performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these Comparable Adjustments.

As more fully described herein and in the related Notes, the Comparable Adjustments that impacted comparability in our segment results for each period are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2024** | **December 31,**<br> **2023** |
| <u>Net revenues</u> |  |  |
| &nbsp;&nbsp;&nbsp;Sales from divested business unit<sup>(a)</sup> | $2144793 | $14025542 |
| &nbsp;&nbsp;&nbsp;Sales of bulk wine<sup>(b)</sup> | 45376 | 99312 |
| Comparable adjustments, Net revenues | 2190169 | 14124854 |
| <u>Cost of net revenues</u> |  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales from divested business unit<sup>(a)</sup> | 2012135 | 9332405 |
| &nbsp;&nbsp;&nbsp;Cost of sales of bulk wine<sup>(b)</sup> | 581181 | 154587 |
| &nbsp;&nbsp;&nbsp;Cost of write-down of unutilized wine pre-acquisition<sup>(c)</sup> | 445817 |  |
| &nbsp;&nbsp;&nbsp;Loss on contracts<sup>(d)</sup> | 3687394 | - |
| Comparable adjustments, Cost of net revenues | 6726527 | 9486992 |
| <u>Selling and marketing</u> |  |  |
| &nbsp;&nbsp;&nbsp;Cost of divested business unit<sup>(a)</sup> |  | 241265 |
| &nbsp;&nbsp;&nbsp;Overallocated selling & marketing costs<sup>(e)</sup> | (308892) | - |
| Comparable adjustments, general and administrative | (308892) | 241265 |
| <u>General and administrative</u> |  |  |
| &nbsp;&nbsp;&nbsp;Cost of divested business unit<sup>(a)</sup> |  | 2259851 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation<sup>(f)</sup> | 378437 | 168708 |
| &nbsp;&nbsp;&nbsp;Transaction services fees<sup>(g)</sup> |  | 3437155 |
| &nbsp;&nbsp;&nbsp;Impairment loss<sup>(h)</sup> | 322049 | 1864713 |
| Comparable adjustments, general and administrative | 700486 | 7730427 |
| Comparable adjustments, Operating income (loss) | (4927952) | (3333830) |

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(a) Sales from divested business unit relates to the sale of Winc.com in June 2023. All of those revenues pre-sale and associated costs
are not part of our recurring business and are thus excluded from what the CODM views as regular operations. Along the same line, the
sales from divested business unit also include sales and associated costs related to inventory sold to the buyer of winc.com post-sale.
These revenues are not regular and part of the business' long-term business plans/strategy and occur because they have been cash
accretive in nature. Operating expenses related to these revenues are also excluded from performance evaluations for the segments.

(b) The Company sold and is expected to sell excess bulk wine for losses on the bulk market. These are not
part of the Company's regular operations and thus are excluded from the CODM's review of the wine business.

(c) The Company wrote-down inventory that was acquired as part of the Winc acquisition in 2023. When the Company
sold the winc.com business, it lost its ability to sell wine unwanted on the wholesale channel through the winc.com channel. As such,
excess bulk wine that was identified and written down in 2024 was not considered to be a core/recurring operation for the business.

(d) Loss contracts are removed because they were the result of the Company's historical acquisitions
and not a result of core wine operations.

(e) Overallocated selling & marketing costs are expenses billed by the corporate infrastructure (unallocated
amounts) to the other segments. The corporate infrastructure ended up generating income from those services, it is excluded because they
were intercompany incomes.

(f) The Company does not include stock-based compensation in its evaluation of performance.

(g) Transaction service fees were related to the acquisition of Winc in January 2023 and the sale of winc.com
in June 2023.

(h) The Company does not include impairment loss in its evaluation of performance.

*M&A Activity*

The M&A activity we completed in 2023 and 2024 significantly shapes the appearance of the financials and impacts operating performance. We believe our acquisition of Winc was at a good value, as we acquired the business for $11.0 million and sold the Winc DTC business - which accounted for roughly half of the go-forward revenues - for the purchase price of $11.0 million. As the Winc DTC business carried a significant amount of credits that are treated as deferred revenue, the sale led to us recording a gain of $17.5 million in 2023. Two drivers of getting the higher valuation was (i) that the majority of the purchase price was seller financed and (ii) that the buyer did not take as much inventory as we had allocated to that business unit. At the time of the sale, we believed we could either find an alternative use for the inventory that would have been allocated to the Winc DTC or believed we could sell it to the buyer at cost. After the sale, the wine category as a whole began to decline, and coupled with an oversaturation of the bulk market, led to the bulk wine markets significantly declining and Full Glass not wanting to purchase the inventory at cost. Since we acquired the bulk wine contracts as part of the Winc acquisition, which at the time were indicative of market values, we were still obligated to purchase bulk wine through 2025 at volumes in excess of our demand. Further, we have amended the notes from Full Glass to reduce the balance by a total of $2.3 million, inclusive of accrued interest, to obtain more liquidity. Further, we incurred $3.4 million in transaction fees in 2023 for the purchase of Winc. While GAAP requires the losses to be shown in losses from operations and the gain to be shown in other income (expense), management views these losses as reductions to the gain received on the sale of Winc DTC. While we recorded a GAAP gain of $17.5M from the disposition of Wink DTC; we have incurred subsequent losses due to the legacy contracts on bulk wine, the forgiveness of receivables to accelerate liquidity for our business and incurred significant transaction fees associated with the Winc transactions that are not included in gain and loss calculations in accordance with US GAAP.

**Business Segments**

 

*Net revenue*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Wine | $17750599 | $17946742 | $(196143) | -1% |
| Spirits | 1727757 | 1412256 | 315501 | 22% |
| Comparable Adjustments | 2190169 | 14124854 | (11934685) | -84% |
| **Consolidated net revenues** | $**21668525** | $**33483852** | $**(11815327)** | **-35%** |

---

The wine business was relatively flat from 2023 to 2024, with a decline of 1.1%. This decline was largely due to portfolio optimization. We believe this optimization will better utilize working capital and allow for more stable growth in future periods, as marketing resources and focus can be more directed to the brands we have higher conviction behind. In 2024, our eight core wine brands - Summer Water, Pizzolato MUSE, Pizzolato, Good Twin, Biokult, Folly of the Beast, Les Hauts de Lagarde, and Chop Shop - grew 1.5% over the prior year and are expected to continue growing in future periods. In 2024, our core brands accounted for approximately 83% of wholesale wine revenue, a 6% increase from 2023.

Spirits sales were up 22% due to the acquisition of Calirosa tequila in September 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Organic | $1018338 | $1412256 | $(393918) | -28% |
| Calirosa | 709419 | - | 709419 | 100% |
| **Consolidated net revenues - spirits** | $**1727757** | $**1412256** | $**315501** | **22%** |

---

Organic revenues (AMASS Spirits and GEM&BOLT) were down 28% for the spirits portfolio largely due to the strategic decision to deprioritize these brands for the short-term, as is discussed in the strategy section above. This deprioritization led to headcount reductions and reduced selling and marketing expenditures for the organic spirits portfolio in the year, which led to reduced revenues. We believe the spirits portfolio has significant growth potential if given adequate resourcing and/or a wider range of products.

The decline in comparable adjustments is largely due to the sale of the Winc DTC business in 2023.

*Gross profit*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Wine | $5741126 | $5395441 | $345685 | 6% |
| Spirits | 882258 | 716383 | 165875 | 23% |
| Comparable Adjustments | (4536358) | 4637862 | (9174220) | -198% |
| **Consolidated gross profit** | $**2087026** | $**10749686** | $**(8662660)** | **-81%** |

---

Gross profit declined in 2024 primarily due to losses on bulk wine and contracted sales to Full Glass, including both realized and accrued losses. Fiscal year 2023 included approximately six months of results from the Winc DTC business, which contributed $4.7 million in gross profit. Spirits gross profit increased in line with higher revenues, while wine gross profit improved due to reduced obsolescence charges and the benefits of operating under our own licenses. Our core wine brands profitability was flat year-over-year.

*Selling and marketing*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Wine | $4044490 | $2658435 | $1386055 | 52% |
| Spirits | 386523 | 868471 | (481948) | -55% |
| Unallocated amounts | 0 | 87 | (87) | -100% |
| Comparable adjustments | (308892) | 241265 | (550157) | -228% |
| **Consolidated selling and marketing** | $**4122121** | $**3768258** | $**353863** | **9%** |

---

Overall selling and marketing expenses increased due to increased wine prioritization, which was mitigated by decreases due to the sale of the Winc DTC business and spirits deprioritization in 2024. Wine selling and marketing increased due to an increased investment in growing core brands, namely Summer Water, Good Twin, and Pizzolato MUSE. These brands all grew in 2024 and the marketing investment in 2024 is expected to yield results in future periods. Changes in spirits selling and marketing costs were largely caused by reducing the sales team headcount from five at the beginning of 2023 to one at the end of 2024 - a reduction of $0.5 million.

*General and administrative*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Wine | $5735877 | $5944317 | $(208440) | -4% |
| Spirits | 1274339 | 1469191 | (194852) | -13% |
| Unallocated amounts | 2650841 | 1997615 | 653226 | 33% |
| Comparable Adjustments | 378437 | 5865714 | (5487277) | -94% |
| **Consolidated general and administrative** | $**10039494** | $**15276837** | $**(5237343)** | **-34%** |

---

General and administrative expenses decreased in 2024 largely due to the sale of the Winc DTC business. Headcount reductions and expense optimization on the wine and spirits segments were offset by an increase in unallocated amounts related to legal fees on the Calirosa acquisition and losses on the Pennsylvania warehouse lease settlement. The reduction in comparability adjustments relate primarily to the 2023 Winc operating and transaction costs.

 

 

*Research and development*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Wine | $22600 | $29960 | $(7360) | -25% |
| Spirits | 126065 | 121852 | 4123 | 3% |
| Unallocated amounts | 19700 | - | 19700 | N/A |
| **Consolidated research and development** | $**168365** | $**151812** | $**16553** | **11%** |

---

We did not have material research and development costs in 2023 nor 2024.

*Operating loss*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Wine | $(4061841) | $(3237271) | $(824570) | 25% |
| Spirits | (904669) | (1743131) | 838462 | -48% |
| Unallocated amounts | (2670541) | (1997702) | (672839) | 34% |
| Comparable Adjustments | (4927952) | (3333830) | (1594122) | 48% |
| **Consolidated operating loss** | $**(12565003)** | $**(10311934)** | $**(2253069)** | **22%** |

---

Overall, operating losses increased by $2.3 million due primarily to the increase in operating expenses, $1.6 of which was driven by Comparable Adjustments. The Comparable Adjustments impacting losses are largely related to the impact of the Winc DTC sale. Losses in the wine segment increased due to additional selling and marketing investments into the business, while spirits losses decreased due to the deprioritization of the segment. Losses increased in unallocated amounts due to legal fees on the Calirosa acquisition and losses on the Pennsylvania warehouse lease settlement.

 

*Other income (expense)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Interest income | $117523 | $395798 | $(278275) | -70% |
| Interest expense | (1805985) | (2828677) | 1022692 | -36% |
| Other expense, net | (1214303) | (263454) | (950849) | 361% |
| Gain on sale of business |  | 17482322 | (17482322) | -100% |
| Unrealized gain on investments at fair value | 212240 | 401320 | (189080) | -47% |
| **Consolidated other income (expense)** | $**(2690525)** | $**15187309** | $**(18622251)** | **-123%** |

---

The biggest change in consolidated other income (expense) is we earned a gain on the sale of Winc DTC of $17.5 million in 2023. As discussed above, this gain in 2023 was partially offset by losses incurred in 2023 and 2024 included in comparable adjustments. Interest expense decreased $1.0 million in 2024 due to the payoff of the loans used to acquire Winc. Included in the other expense, net figure is $0.8 million in losses related to the forfeiture of Full Glass warrants discussed in the Contractual Obligations and Commitments section below and a $0.4 million loss on selling investments in De Soi below market value. The sales were made to investors in the Company to acquire short-term liquidity and do not represent what the Company believes the fair value of the stock is.

**Liquidity and Capital Resources**

 ****

*Sources of Liquidity*

We have historically funded our operations through issuances of stock, credit facilities, term loans, revenue producing activities, convertible debt, and SAFE agreements. In August 2025, we experienced a technical breach of financial covenants under our credit facility. There have been no demands from the lender and we are in discussions to obtain a written waiver and/or forbearance. As of December 31, 2024, we had cash and cash equivalents of $0.7 million.

Based on our recurring losses from operations incurred since inception, expectation of continuing operating losses for the foreseeable future, and the need to raise additional capital to finance our future operations and, without giving effect to this offering, we have concluded that there is substantial doubt regarding our ability to continue as a going concern within one year after the date of our audited consolidated financial statements. See the section entitled "*<u>Risk Factors — Risks Related to Our Financial Condition and Capital Requirements — We may not be able to continue as a going concern without additional financing, and if such financing is not available to us or is not available to us on acceptable terms, we may be forced to cease operations</u>*." included elsewhere in this prospectus. Our Independent Registered Accounting Firm issued an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.

**Cash Flows**

The following table summarizes our sources and uses of cash for the years ended December 31, 2024 and December 31, 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal<br>2024 | Fiscal<br>2023 | Dollar<br>Change | Percent<br>Change |
| Net cash used in operating activities | $(5806377) | $(4153387) | $(1652990) | 40% |
| Net cash provided by (used in) investing activities | 5112656 | (6729447) | 11842103 | -176% |
| Net cash provided by financing activities | 450631 | 10191902 | (9741271) | -96% |
| **Net increase (decrease) in cash** | $**(243090)** | $**(690932)** | $**447842** | **-66%** |

---

 

*Operating activities*

Net cash used in operating activities for the year ended December 31, 2023 was $4.2 million. Our net income of $4.9 million was offset by non-cash adjustments to net income of $14.9 million in reductions, which are predominantly comprised of $17.5 million in gain on the sale of Winc DTC and a $1.6 million impairment loss on the promissory note receivable from Full Glass. In 2023, the accounts receivable ($1.5 million), inventory ($1.5 million), prepaid expenses and other current assets ($1.3 million), and accounts payable and accrued liabilities ($0.8 million) all show as cash significant cash inflows because the consideration used to acquire Winc is shown in the cash flows from investments section of the statement ($7.5 million cash outflow). Further, we sold the Winc DTC business, which included the sale of $6.2 million of inventory.

Net cash used in operating activities for the year ended December 31, 2024 was $5.8 million. Our net loss of $15.3 million was offset by non-cash adjustments of $6.5 million, primarily consisting of $3.7 million in losses on contracts and $0.8 million in forfeiture of warrants in Full Glass. The changes in cash flow from accounts payable and accrued liabilities in 2024 ($4.1 million) was primarily used to in the purchase of inventory ($3.9 million). $1.2 million of the accounts payable and accrued liabilities and $2.4 million of the inventory was related to the Calirosa acquisition and thus inorganic.

 

*Investing activities*

Net cash used in investing activities for the year ended December 31, 2023 was $6.7 million, which consisted of $7.5 million in cash used in the acquisition of Winc, $1.5 million received on the sale of Winc DTC, of which $0.3 million was received up front and $1.3 million was received on the notes receivable, $0.4 million increase in advances to related parties, and $0.3 million increase in deposits.

Net cash provided by investing activities for the year ended December 31, 2024 was $5.1 million, which consisted of $5.0 million received on the notes receivable, $0.5 million received for the sale of some of the Company's investment in De Soi, net of $0.3 million increase in advances to the Company's founder, as described under "*<u>Certain Relationships and Related Person Transactions</u>.*"

 

*Financing activities*

Net cash provided by financing activities for the year ended December 31, 2023 was $10.2 million, which consisted of $6.3 million received from the issuance of loans payable, $4.9 million in net proceeds from the secured facility, and $4.0 million in proceeds from the issuance of Series B Preferred Stock, less $4.9 million repaid on loans payable, and $0.1 million paid in offering costs.

Net cash provided by financing activities for the year ended December 31, 2024 was $0.5 million, which consisted of $2.5 million received from the issuance of loans payable, a net repayment of $1.4 million in the Company's credit facility, $0.1 million in proceeds from the exercise of warrants, and $1.7 million in proceeds from the issuance of Series B Preferred Stock, less $2.2 million repaid on short-term debt, and $0.1 million paid in offering costs.

 

*Planned Financing—Streeterville Capital Prepaid Preferred Purchase*

 

We are evaluating a prepaid preferred purchase facility with Streeterville for up to $30 million of Series C preferred stock, including an initial $6 million tranche at listing. Subsequent purchases would be at our election, subject to conditions that include trading volume, market capitalization, shareholder approval for issuances exceeding Nasdaq thresholds, maintenance of sufficient authorized shares, and trading above a floor price metric. Conversions would initially be at a fixed price based on the Nasdaq listing valuation and, after the earlier of 180 days post-listing or specified trigger events, at an alternate price equal to the lower of the fixed price and 90% of the lowest daily VWAP in the ten trading days prior to conversion, in each case subject to a floor. In connection with closing, we would issue commitment shares equal to 1.5% of the commitment amount and 3,000,000 warrants that are cash-exercisable at 110% of the fixed price. The arrangement contemplates Streeterville consent rights over certain future debt and equity issuances and a post-listing registration of all shares issuable under the commitment; failure to cause the registration to become effective within a specified period would increase outstanding stated value by a stated percentage per month, subject to caps and tolling. We believe this facility, if executed, would enhance near-term liquidity but would also result in dilution to existing stockholders and could constrain other financing alternatives.

 

*Planned Financing—Regulation Crowdfunding*

 

Most recently, in December 2025, the Company closed a Regulation Crowdfunding offering at a purchase price of $2.99 per share, raising approximately $261,856 through the issuance of 87,475 shares of Common Stock. The Company currently plans to commence an additional Regulation CF crowdfunding offering in February 2026.

 

*Future funding requirements*

We anticipate that we will continue to incur net losses for the foreseeable future due to the requisite investment in selling and marketing to grow our brands, costs to incubate new brands, and to potentially engage in future acquisitions. We expect our operating losses to continue until we can increase revenues to support operational costs. We also have short term liabilities that are coming due in the near term.

 

As of December 31, 2024, we had $0.7 million in cash and cash equivalents. From January 1, 2025 through December 31, 2025, we raised $0.7 million in equity, issued $1.0 million through promissory notes, and $0.4 million of notes convertible into common stock. As of December 31, 2025 we had $0.5 million in cash and cash equivalents.

We believe that our existing cash and cash equivalents will be sufficient to fund our current operating plan through at least March 2026. Based on our current operation and fundraise plan, we believe that our existing cash and cash equivalents, will allow us to fund our operations and meet our debt obligations through May 2027. Our forecast for the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially as a result of a number of factors, including the factors discussed in the section of this prospectus entitled "*<u>Risk Factors</u>*." We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. We expect that we will require additional funding to continue operations and fund growth objectives. Further, our operating plans and other demands on our cash resources may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than planned through public or private equity or debt financings or other sources, such as strategic collaborations. Such financing may result in dilution to stockholders, imposition of debt covenants and repayment obligations, or other restrictions that may affect our business. We may seek additional capital due to favorable market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. Attempting to secure additional financing may divert the attention of our management from our day-to-day activities, which may adversely affect our ability to meet our business objectives.

*Material cash requirements*

Our material cash requirements consist primarily of debt obligations, amounts due under convertible instruments and SAFEs upon triggering events, leases and licensing fees, payables to inventory suppliers, and payables for professional services. The timing and magnitude of these cash requirements depend on a variety of factors, including operating performance, compliance with debt covenants, access to capital, and the timing of any liquidity events.

The table below summarizes our material cash requirements as of December 31, 2025, separated between short-term (within the next 12 months) and long-term (thereafter).

---

| | | | |
|:---|:---|:---|:---|
| **Category** | **Next 12 Months** | **Thereafter** | **Total** |
| Secured credit facility principal and interest <sup>(1)</sup> | $3277 | $- | $3277 |
| Other debt principal and interest <sup>(2)</sup> | 4678 | 263 | 4941 |
| SAFEs and convertible instruments <sup>(3)</sup> |  | 500 | 500 |
| Leases and licensing fees <sup>(4)</sup> | 507 |  | 507 |
| Supplier payables <sup>(5)</sup> | 4388 |  | 4388 |
| Professional service payables <sup>(6)</sup> | 5099 | - | 5099 |
| **Total material cash requirements** | $**17949** | $**603** | $**18552** |

---

(amount in thousands)

*Note:* Amounts reflect contractual obligations and known commitments as of December 31, 2025 and do not include discretionary operating expenditures. Amounts also do not include principal and interest of $420,000 of convertible notes that will automatically convert into shares of Common Stock upon the consummation of an initial public offering or direct listing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents scheduled principal and interest payments under our credit facility, assuming renewal of the credit facility in the ordinary course consistent with historical practice. Amounts are based on contractual repayment terms in effect as of the reporting date and do not reflect potential acceleration resulting from covenant breaches or events of default. The presentation also does not reflect future renewals, extensions, refinancings, or other modifications that management expects to pursue in the normal course of business. Management believes it has the intent and ability to renew the credit facility on an ongoing basis and to satisfy principal obligations as they come due through continued access to the facility, operating cash flows, and other capital-management actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents scheduled principal and interest payments under our other indebtedness based on contractual terms in effect as of the reporting date. The amounts presented do not reflect potential acceleration resulting from covenant breaches or events of default, nor do they reflect any extensions, refinancings, or other modifications that management may pursue. All debt instruments scheduled to mature within the next 12 months are held by shareholders, and management is evaluating and expects to pursue a combination of equity conversions and maturity extensions to address principal obligations due within that period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Our SAFEs and convertible instruments do not require scheduled cash repayment and are generally convertible into equity upon the occurrence of a qualifying financing, liquidity event, or other specified triggering events. As a result, no cash payments are reflected in the short-term column. Amounts presented in the long-term column reflect potential settlement amounts only in the event that conversion does not occur or upon the occurrence of other contingent outcomes.

(4) We have an obligation to pay $42,248 per month under our Santa Maria Warehouse (as defined below) lease that ends in December 2026. We do not have any other material leases or licensing fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Represents payables to various suppliers throughout our supply chain. With respect to the two vendors with the largest outstanding balances, management is in active discussions to negotiate a settlement that would involve converting approximately $2.35 million of the outstanding payables into term debt payable over a three-year period. Management is also actively negotiating settlements and other resolutions with a majority of its remaining suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Represents payables to various professional service providers related primarily to legal and transaction services, which were largely incurred in connection with acquisitions completed in prior periods. Management intends to negotiate and settle these balances over the next several years through a combination of negotiated reductions and conversions to equity.

**Contractual Obligations and Commitments**

*Bulk wine contracts*

In connection with our 2023 acquisition of Winc, we assumed a portfolio of long-term bulk wine supply contracts originally structured to support both Winc's direct-to-consumer and wholesale operations. These agreements provide for the purchase of bulk wine through the 2025 calendar year, primarily covering the 2023 and 2024 vintage years, at contracted prices generally ranging from $9.00 to $15.50 per gallon.

Since the acquisition, market conditions in the bulk wine segment have deteriorated materially. We believe the decline is other than temporary through the dates for which the contracts apply. Wines that were previously contracted at $10–$15 per gallon now trade for as little as $3 per gallon in the spot market, reflecting approximately a 4% category-wide volume decline and oversupply across key varietals. As a result, the realizable value of the wine under contract has decreased significantly. To address these excess commitments, we are actively evaluating a range of mitigation strategies, including negotiated contract terminations, resale into the bulk market, and alternative production uses. During 2024, we recognized approximately $3.7 million in anticipated losses associated with these contracts.

*Supplier contracts*

In June 2023, the Company entered into an Asset Purchase Agreement with Full Glass to sell substantially all assets of the Winc DTC business. The total purchase consideration was approximately $11.0 million, consisting of $0.25 million in cash, a $5.25 million senior secured promissory note, a $4.0 million subordinated note, and penny warrants in Full Glass's parent company.

Following the closing, the parties executed subsequent agreements to define the ongoing commercial terms and expand the relationship.

● February 2024: Full Glass and AMASS entered into an agreement, under which (i) the warrants issued to AMASS were permanently cancelled and forfeited, (ii) the subordinated note was cancelled, (iii) all prior defaults under the original notes were waived, and (iv) the two existing promissory notes were consolidated into a single Amended and Restated Secured Promissory Note with an initial principal balance of $1.884 million, bearing interest at 8% per annum with monthly $150 thousand payments beginning in March 2024. The restatement reflected an agreed purchase-price reduction of approximately $1.6 million, which was estimated in 2023. For such considerations, Full Glass accelerated repayment of the Secured Promissory Note that existed prior to this amendment. On the same date, AMASS and Full Glass executed a Multi-Year Wine Purchase Agreement under which Full Glass committed to purchase approximately 111,000 cases of finished wine (aggregate value ≈$4 million) through February 2026 at a price of $36 per case, subject to a semi-annual $1 million take-or-pay minimum and 30-day payment terms, thereby establishing AMASS as a continuing production partner for Full Glass's portfolio. At this time Full Glass is in default of the production agreement and a settlement is being negotiated.

● October 2024: The note balance was reduced to $718 thousand, with continued $150 thousand monthly payments and an additional $215 thousand principal pay-down linked to bank funding. A concurrent letter agreement required Full Glass to pay $695 thousand toward outstanding trade payables owed to AMASS in two tranches tied to the facility's funding timeline.

*Settlement of Pennsylvania Warehouse*

In August 2024, the Company terminated its warehouse lease in Bethel Township, Pennsylvania. As a result of the termination, in March 2025 the Company entered into a Lease Termination and Settlement Agreement with the lessor. Under the agreement, the Company was required to forfeit its security deposit of $300,000 and pay an additional $75,000 between April and October 2025. The security deposit was expensed as an expected loss in 2024 as it was reasonably knowable that we were not going to be having the security deposit returned, but any further amounts were not known nor quantifiable. The loss of the security deposit was shown as an adjustment to net income in cash flows from operations as of December 31, 2024. The payments made in 2025 will be shown in cash flows from operations.

**Recent Accounting Pronouncements**

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 3, "Summary of Significant Accounting Policies" to our consolidated financial statements included elsewhere in this prospectus.

**Credit Facility Covenant Breach**

In August 2025, we experienced a technical breach of certain financial covenants under our credit facility, primarily related to minimum liquidity and financial ratio requirements. As a result of this breach, the outstanding borrowings under the credit facility became subject to potential default remedies, including acceleration.

Following the breach, we entered into discussions with the lender to obtain a waiver and/or forbearance with respect to the applicable covenant violations. There have been no demands from the lender, but there can be no assurance that such waiver and/or forbearance will be received, or that we will continue to comply with such covenants in future periods.

The covenant breach and related waiver underscore our dependence on continued access to liquidity and the importance of maintaining compliance with our debt agreements. Failure to maintain compliance could require us to seek additional waivers, restructure our indebtedness, raise additional capital, or curtail operations.

**Critical Accounting Policies and Estimates**

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles (GAAP), which require management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as related disclosures. These estimates are inherently uncertain, and actual results may differ from those estimates. The following accounting policies and estimates are material to our financial condition and results of operations and require significant management judgment.

**Critical Accounting Policies**

*Fair Value Option*

ASC 825, *Financial Instruments* (ASC 825), allows for entities to elect the "fair value option," which permits entities to choose, at specified election dates, to measure eligible financial assets and financial liabilities at fair value. The decision to elect the fair value option is: (a) applied on an instrument-by-instrument basis (except as delineated within the guidance of ASC 825); (b) irrevocable, unless a new election date occurs; and (c) applied to an entire instrument.

Entities may elect the fair value option for several defined items, including a recognized financial asset and financial liability (with certain specified exceptions). The fair value option may not be elected for several items as defined in ASC 825, including an investment in a subsidiary or an interest in a variable interest entity that is required to be consolidated.

The election of recognition under the fair value option is irrevocable unless another election date occurs. The fair value option need not be applied to all instruments issued or acquired in a single transaction. A financial instrument that is legally a single contract may not be separated into parts for purposes of applying the fair value option. An investor in an equity security may elect the fair value option for its entire investment in that security, including fractional shares.

The Company has elected the fair value option on its equity investment in De Soi, Inc. ("De Soi"). Management determined to elect the fair value option on these investments in order to provide more useful information to the shareholders regarding the performance of its investment.

*Business combinations*

The Company accounts for business combinations under ASC 805, *Business Combinations*, which requires that the assets acquired and the liabilities assumed be recorded at the date of acquisition at their respective fair value and that direct costs of acquisitions be expensed as they are incurred. The excess purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.

*Inventory*<br> Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (FIFO) method and consist of components, finished goods, and products in transit from the Company's suppliers. Costs of finished goods inventories include all costs incurred to bring inventory to its current condition, including inbound freight and duties. If the Company determines that the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to cost of net revenues to reflect the lower of cost or net realizable value. If actual market conditions are less favorable than those projected by the Company, further adjustments may be required that would increase the cost of goods sold in the period in which such a determination was made.

*Impairment of long-lived assets*

The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC Subtopic 360-10-35, *Property, Plant, and Equipment – Overall – Subsequent Measurement* (ASC 360). In accordance with ASC 360, the Company reviews its long-lived assets, including finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future undiscounted net cash flows that it expects the asset to generate. When an asset is determined to be impaired, the Company recognizes the impairment amount, which is measured by the amount the carrying value of the asset exceeds its fair value. In addition, the Company evaluates goodwill for impairment in accordance with ASC 350, *Intangibles-Goodwill and Other* (ASC 350). Goodwill is tested at least annually, or more frequently if a triggering event occurs. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to the excess, not to exceed the total amount of goodwill.

*Stock-based compensation*

The Company accounts for stock-based compensation costs under the provisions of ASC 718, *Compensation—Stock Compensation*, which requires the measurement and recognition of compensation expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock based compensation expense recognized includes the compensation cost for all stock-based payments granted to employees, officers, advisors, and directors based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled during the periods reported. Stock-based compensation is recognized as expense over the employee's requisite vesting period and over the nonemployee's period of providing goods or services.

The Company classifies stock-based compensation expense in its consolidated statements of operations in the same manner in which the award recipient's payroll costs are classified or in which the award recipient's service payments are classified.

The fair value of each stock option and warrant grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company historically has been a private company and lacks company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company's stock options has been determined utilizing the "simplified" method for awards that qualify as "plain-vanilla" options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are recognized as they occur. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

*Revenue Recognition*

The Company recognizes revenue under FASB ASC 606, *Revenue from Contracts with Customers*. The Company derives its revenue primarily through the sale of alcohol and non-alcoholic spirits, wine, and seltzers in both wholesale and direct to consumer channels. Spirits, wine, and seltzer end customers consist primarily of retailers, bars, and restaurants, while personal and self-care products were sold to wholesalers, retailers, and direct-to-consumer via e-commerce. The Company determines revenue recognition through the following steps:

● Identification of the contract, or contracts, with a customer,

● Identification of the performance obligations in the contract,

● Determination of the transaction price,

● Allocation of the transaction price to the performance obligations in the contract, and

● Recognition of revenue when, or as, the Company satisfies a performance obligation.

The Company's revenue generating activities have a single performance obligation and are recognized when the ordered goods are shipped to the end customer, which is when control transfers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for the sale of its product. The Company's sales terms do not typically allow for a right of return on sales to wholesale and distributor customers except for matters related to any manufacturing defects. Amounts billed to customers for shipping and handling are included in net revenues.

As the Company's standard payment terms are less than one year, the Company has elected, as a practical expedient, to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable source that depicts the price as if sold to a similar customer in similar circumstances. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing component as payments are received at or shortly after the point of sale.

Costs incurred to obtain a contract are expensed as incurred when the amortization period is less than a year. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has concluded that none of the costs it has incurred to obtain and fulfill its sales contracts meet the capitalization criteria, and as such, there are no costs deferred and recognized as assets on the balance sheets at December 31, 2024 and 2023.

Net revenues reflect reductions attributable to consideration given to customers in various customer incentive programs, including pricing discounts on single transactions, volume discounts, promotional and advertising allowances, coupons, and rebates. This variable consideration is recognized as a reduction of the transaction price based upon expected amounts at the time revenue for the corresponding product sale is recognized. For example, customer promotional discount programs are entered into with certain distributors for certain periods of time. The amount ultimately reimbursed to distributors is determined based upon agreed-upon promotional discounts which are applied to distributors' sales to retailers. Other common forms of variable consideration include volume rebates for meeting established sales targets, including discounts offered to the end customer. The determination of the reduction of the transaction price for variable consideration requires certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recognized. Management estimates this variable consideration by taking into account factors such as the nature of the promotional activity, historical information, and current trends, availability of actual results, and expectations of customer and consumer behavior. All such estimates were not material for the years ended December 31, 2024 and 2023.

Further, the Company offers discounts on e-commerce transitions such as first order discounts, free shipping on sales over certain thresholds, subscription discounts, and bundled set discounts. All e-commerce discounts are included as part of net revenues on the statements of operations and known at the time of the transaction.

**Critical Estimates**

*Inventory Valuation*

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out (FIFO) method and includes materials, labor, and applicable overhead. We regularly evaluate inventory for potential obsolescence, slow-moving or excess quantities, spoilage, shrinkage, and changes in net realizable value. These estimates require management judgment and are influenced by factors such as changes in consumer demand, supply chain disruptions, inflation, and raw material price volatility, any of which could materially impact our results.

Estimation in 2024 included expected losses on long-term supply contracts where the net realizable value of certain inventoriable goods are believed to be below the contractual purchase price. As it pertains to the Company's bulk wine purchase, this includes consideration of the varietal, vintage, and volume of product versus the market price.

*Long-term Contracts*

We evaluate long-term supply and purchase contracts to determine whether the expected costs to fulfill our obligations exceed the anticipated economic benefits. When estimated costs under a supply contract exceed its realizable value, we recognize a loss for the difference in accordance with U.S. GAAP. These estimates require management judgment regarding future market prices, utilization, and recoverability, and actual results may differ from those estimates. Changes in these assumptions could materially affect the amount of expense recognized in our financial statements.

*Impairment on goodwill*

We allocate the purchase price in business combinations to net assets, including identifiable intangible assets and goodwill. Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment at least annually or whenever indicators of impairment arise. Definite-lived intangible assets are amortized over their useful lives and tested for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Inputs to impairment tests include market multiples, forecasted cash flows, growth rates, margins, allocations between reporting units, and long-term projections.

*Intangible asset valuation*

The determination of the fair value of identifiable intangible assets acquired in business combinations requires significant management judgment. The Company values trademarks and other brand-related intangible assets using the relief-from-royalty method, which estimates the present value of future after-tax cash flows saved by owning the asset rather than licensing it.

Key inputs include projected revenues attributable to the acquired brands, an assumed royalty rate, and a discount rate that reflects the time value of money and the risk characteristics of the underlying cash flows. These assumptions are inherently subjective and based on management's best estimates at the acquisition date. Changes in the royalty rate, discount rate, or projected revenue growth could materially impact the resulting fair value and related amortization or impairment conclusions.

*Fair value of equity awards*

We grant equity-based awards for compensation purposes. The measurement of compensation expense for these awards requires management to estimate the fair value of the underlying common stock, for which there is no market, as well as the awards on the grant date, which require assumptions regarding expected term, volatility, dividend yield, and forfeiture rates. Changes in these assumptions could materially affect the amount of expense recognized in our financial statements.

*Fair value measurements of investments*

The Company measures certain investments at fair value on a recurring basis under ASC 820, using Level 3 inputs due to significant unobservable assumptions. Fair value is determined using a market-based approach that considers comparable company multiples, liquidity discounts, and recent transactions, including partial investment sales. Further, the investment's management's projections are utilized in the analysis, which is also subject to significant estimation. Changes in these assumptions could materially affect the valuation. There were no changes in valuation methodologies during the years ended December 31, 2024 and 2023.

*Accounts receivable*

Accounts receivable are derived from products and services delivered to customers and are stated at their net realizable value. The Company evaluates the creditworthiness of its customers prior to extending credit and monitors the aging and collectability of receivables on a continuous basis. The Company establishes an allowance for expected credit losses on financial assets, including trade and other receivables, at each reporting date. The allowance reflects management's estimate of lifetime expected credit losses based on historical collection experience, the type and credit quality of the customer, the age of outstanding receivables, and current and expected future economic conditions. Management uses the best information available to make these estimates; however, future adjustments may be required if there are significant changes in customer financial condition or broader economic trends.

**Quantitative and Qualitative Disclosures About Market Risk**

*Global Trade Environment*

We continue to monitor developments in global trade policy, including the potential for new or increased tariffs and retaliatory actions by trading partners. These factors may impact our sourcing, cost structure, and international growth strategy, and we actively evaluate mitigation strategies to limit potential adverse effects.

We expect certain market conditions and their related impacts to persist through Fiscal 2025 and into 2026, which could materially affect our results of operations and financial condition. We will continue to closely monitor evolving consumer demand trends and broader economic conditions and assess their effects on our business. We regularly evaluate margin profiles on all of our imported products and action on mitigation strategies to reduce the impact of tariffs or other global market factors. Our mitigation strategies include pricing actions, productivity improvements, inventory management, and optimized marketing, which may not be sufficient in all cases. Additionally, severe weather events such as wildfires, droughts, floods, extreme heat, or late frosts could adversely impact both our supply chain and consumer purchasing behavior, potentially resulting in a material effect on our operations and financial results.

*Inflation Risk*

Inflationary pressures have the potential to adversely affect our business operations, financial condition, and results of operations. Rising costs associated with cost of labor, research and development costs, and raw materials can lead to increased production and operational expenses. If we are unable to pass these increased costs onto our customers through pricing adjustments, our profit margins may be negatively impacted.

Furthermore, inflation can influence consumer behavior, particularly in discretionary spending categories such as premium beverages. Economic pressures may lead consumers to reduce, trade down, or delay purchases of non-essential or higher-priced beverage products, which could adversely affect demand for our offerings.

**Emerging Growth Company and Smaller Reporting Company Status**

The Jumpstart Our Business Startups Act of 2012 permits an "emerging growth company" such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have elected not to "opt out" of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we will adopt the new or revised standard at the time private companies adopt the new or revised standard and will do so until such time that we either (i) irrevocably elect to "opt out" of such extended transition period or (ii) no longer qualify as an emerging growth company. As a result of this election, our consolidated financial statements may not be comparable to other public companies that comply with new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

**BUSINESS**

 

*Stockholders should read this section in conjunction with the more detailed information about the Company contained in this prospectus, including our audited financial statements and the other information appearing in the section entitled "<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>."*

**Overview**

AMASS Brands Inc ("AMASS," the "Company," "we," "our," or "us") is a Delaware corporation with our principal place of business in Santa Maria, California. Founded in 2016, AMASS is building a diversified premium beverage platform at the intersection of craft, wellness, and functionality. Our mission is to modernize drinking occasions with products that are premium, health-conscious, and culturally resonant.

We operate across multiple categories—spirits, wine, and non-alcoholic alternatives—creating a uniquely diversified portfolio aligned with long-term consumer shifts toward moderation, premiumization, and wellness. Our brands are distributed primarily in the United States through wholesale, on-premise and direct-to-consumer ("DTC") channels.

For the year ended December 31, 2024, we generated $22.0 million in net revenues and incurred a net loss of $15.0 million. For the year ended December 31, 2023, we generated $33.0 million in net revenues and recognized net income of $5.0 million. Since inception, we have generated more than $78 million in cumulative revenue across our portfolio

**Our Corporate Structure & History**

AMASS is a corporation formed on September 22, 2016, under the laws of the State of Delaware. With a principal place of business in Santa Maria, California, we sell alcoholic and non-alcoholic beverages through wholesale and online platforms and invest in and acquire different companies and entities in the aforementioned categories and industries.

In the past, we offered a limited selection of personal and self-care products (e.g., lotions, soaps, candles) which were historically included in our spirits category and accounted for less than 5% of annual revenue. As of the date of this prospectus, such products are not a priority on a go-forward basis.

In 2022, AMASS entered into an Asset Purchase Agreement (the "Asset Purchase") for substantially all assets and liabilities of GEM&BOLT, LLC ("GEM&BOLT"); which was accounted for as a business acquisition. As part of the Asset Purchase, AMASS acquired all of the equity interest in ART+ PLANTS HEALS DE RL DE CV ("Art+ Plants"), a wholly owned Mexican subsidiary. Located and formed in Oaxaca, Mexico, the Art+ Plants company manages mezcal production.

In December 2022, AMASS formed three wholly-owned subsidiaries, Project Crush Acquisition Corp LLC ("PCAC"), Project Crush DTC Sub LLC ("DTC Sub"), and Project Crush Wholesale Sub, LLC for its anticipated asset purchase of Winc, Inc. ("Winc"). In February 2023, the Project Crush Wholesale Sub, LLC changed its legal name to Maison Thomas, LLC ("Maison Thomas").

The asset purchase of substantially all of the assets of Winc, Inc., a producer of innovative alcoholic beverage products (primarily wines) available for sale through direct-to-consumer ("Winc.com DTC") e-commerce and wholesale channels, occurred in January 2023. In June 2023, the Winc.com DTC subscription-based e-commerce portion was sold to Full Glass Wine Co, leaving Natural Merchants and Domestic Wholesales wine portfolio products which are either purchased from other manufacturers or developed and manufactured in conjunction with winemakers, vineyards, and distillers domestically and internationally.

In September 2024, the Company purchased 50.0001% of 222 Spirits Holdco, LLC, and its two wholly owned subsidiaries, 222 Spirits Company, LLC, and 222 Spirits Management Holdco, LLC (collectively, "222 Spirits").

**Portfolio of Brands**

AMASS manages a diversified portfolio of wholly owned brands, acquisitions, and minority interests spanning spirits, wine and non-alcoholic wine:

- AMASS – The flagship brand of spirits and non-alcoholic alternatives. AMASS is known for its clean formulations and design-forward positioning.

- Spirits

- GEM&BOLT Mezcal – A premium mezcal brand infused with damiana herb blending traditional craftsmanship with modern branding.

- Calirosa Tequila (via 222 Spirits) – A premium tequila brand co-founded with Adam Levine of Maroon 5. Calirosa is uniquely aged in red wine barrels, which impart its signature pink hue and nuanced flavor profile.

- Wine & Non-Alcoholic Wine

- Summer Water – A lifestyle rosé brand that resonates strongly with millennial and Gen Z consumers.

- Folly of the Beast – An accessible Pinot Noir emphasizing quality and sustainability.

- Organic & Biodynamic Imports – Partnerships with producers including Pizzolato (Italy), Biokult Österreich (Austria), and Maison Raymond (France).

- Good Twin – A premium non-alcoholic wine option designed for the growing "sober-curious" and moderation segments, offering consumers wine-style ritual and flavor without alcohol.

- Non-Alcoholic Aperitifs & Functional Water (Minority Interests)

- De Soi – A non-alcoholic aperitif co-founded by AMASS alongside Katy Perry. AMASS now holds a minority interest in the company, which targets the premium no/low-alcohol segment with sophisticated, occasion-based offerings.

- HpO – A pea protein sparkling water brand where AMASS holds a minority interest, combining plant-based protein with hydration to meet functional beverage demand.

**Business Model**

We operate through a multi-channel platform, generating revenue via:

- Wholesale distribution through national retailers, distributors, and on-premise accounts.

- Direct-to-consumer (DTC) via online channels and brand websites.

- International expansion (under evaluation), initially focusing on Canada, select European markets and global travel retail, and in the longer term, select markets in Asia and Latin America.

Our model is designed to balance scale with consumer engagement while leveraging acquisitions and brand incubation to accelerate portfolio growth.

**Competitive Strengths**

Functional innovation – Differentiated use of clean-label ingredients and adaptogens.

- Established distribution – Over 40,000 points of sale worldwide.

- Diverse portfolio – Multi-category platform spanning spirits, wine, and non-alcoholic.

- Experienced leadership – Management team with strong track record in beverage operations, brand-building, and acquisitions.

**Growth Strategy**

Our strategy for long-term growth includes:

- Expanding distribution across wholesale, retail, and on-premise accounts.

- Scaling direct-to-consumer and e-commerce platforms.

- Investing in innovation and new product launches.

- Executing strategic acquisitions to broaden our portfolio.

- Targeting international expansion, including Global Travel Retail and targeted new markets.

**Current Markets**

At present, our commercial operations are concentrated in the United States. Our products are distributed domestically through a network of third-party distributors, retail partners, and direct-to-consumer channels, subject to applicable regulatory restrictions.

We have had limited international sales activity, including certain historical or brand-specific sales in Canada, Europe, and Asia. These activities have been conducted through third-party partners and have not represented a significant portion of our revenues. In addition, we utilize a fully owned Mexican subsidiary and third-party production arrangements in Mexico for certain agave-based spirits products, but we do not currently maintain dedicated international sales teams, distribution infrastructure, or regulatory licenses outside the United States.

**International Expansion Strategy**

International expansion represents a long-term growth opportunity rather than a current operating focus. We are in the early stages of evaluating potential expansion into select international markets, including Canada, select European markets and global travel retail, and in the longer term, select markets in Asia and Latin America. These efforts are currently limited to market research, potential distributor discussions, and strategic evaluation.

We have not entered into definitive distribution agreements, committed material capital, or commenced material commercial sales activities outside of the United States. Any future international expansion is subject to regulatory approvals, distributor arrangements, market conditions, and the availability of capital, and there can be no assurance that such expansion will occur on favorable terms or at all.

**Our Current Stage**

AMASS is in the growth stage, having successfully expanded its product line and market reach. We have secured significant funding through various investment rounds, enabling us to scale operations and enhance our marketing efforts as well as complete several acquisitions. Our planned presence in key international markets and robust domestic performance highlight our successful expansion strategy. We continue to build on our achievements with new product launches and strategic partnerships.

With 10+ core distinctive brands, our portfolio spans the entire spectrum of spirits and wine, underscoring AMASS's commitment to variety and quality. Some of our notable brands include, Calirosa, Summer Water Rosé, Folly of the Beast, GEM&BOLT Mezcal, Good Twin, Pizzolato Organic Wine, Biokult Österreich and Maison Raymond.

**Future Roadmap**

We intend to broaden our presence in non-alcoholic and functional beverages, and expand our international distribution footprint. By leveraging our platform capabilities, distribution scale, and innovation pipeline, we aim to establish AMASS as a leading next-generation beverage company.

**Competition**

We compete against large global conglomerates such as Diageo, Pernod Ricard, Constellation Brands, and Brown-Forman, as well as regional and craft producers. Our differentiation lies in premium positioning, health-conscious innovation, and a multi-category approach that allows us to appeal to younger consumers and evolving drinking habits.

**Chief Operating Officer Prior Bankruptcy Disclosure**

AMASS Brands Inc's Chief Operating Officer, Erin Green, previously worked as Chief Operating Officer for BWSC LLC, D/B/A Winc ("Winc"), which filed for bankruptcy in November of 2022 as a result of several market factors and the COVID pandemic. Ms. Green began working for Winc as Vice President of Operations in 2015 and became COO in 2021. While Ms. Green did not serve on Winc's board of directors, she was involved in the management and strategy of its business. See the Risk Factors section of this prospectus, below, for how this may affect your investment.

**Our Customer Base**

We sell our portfolio of beverage alcohol and non-alcohol products to a diverse group of customers across the United States. Our customer base includes national and regional distributors, wholesalers, and direct-to-consumer ("DTC") customers through our e-commerce platforms. No single customer accounted for more than 9.9% of our net revenues in 2024, and our top ten customers together represented approximately 46.6% of net revenues.

Notwithstanding this diversification, one of our customers, Full Glass, is party to multiple commercial arrangements with us that have resulted in loss-making sales and adverse cash flow effects. In 2024, we recognized $0.8 million of losses on sales under the Full Glass supply contract for which we sell finished wine below current costs. Full Glass is also in default under a multi-year wine purchase agreement that includes fixed pricing and take-or-pay minimums through February 2026, and we are negotiating a potential settlement.

While Full Glass did not exceed 10% of net revenues in 2024, our exposure to this customer may be significant in certain periods due to the pricing of these arrangements and the concentration of related accounts receivable. For the year ended December 31, 2024, sales to Full Glass represented approximately [●]% of net revenues, and amounts due from Full Glass represented approximately [●]% of accounts receivable at period-end. These arrangements, and Full Glass's default, have negatively affected our gross profit and operating cash flows and may continue to do so while the commitments remain outstanding. Brief descriptions of the material terms of our agreements with Full Glass can be found immediately below.

<u>Asset Purchase Agreement (June 11, 2023)</u>

AMASS and its affiliates (as sellers) agreed to sell to Full Glass the DTC wine business assets (the "Asset Purchase Agreement"), including inventory, trademarks, technology, marketing materials, data, and specified contracts, subject to stated exclusions and with Full Glass assuming defined liabilities; closing required execution of ancillary transfer documents and a transition services and license arrangement, with customary representations, indemnification (including survival and caps), and cooperation covenants governing post-closing matters and transfer mechanics. The agreement provides non-assignment procedures where third-party consents are required, restricts public announcements prior to closing, allocates transfer taxes, and includes confidentiality and trademark use covenants.

<u>Amendment to Agreement (June 21, 2023)</u>

AMASS and Full Glass amended the Asset Purchase Agreement to provide that Full Glass would advance $150,000 to AMASS affiliates before closing, creditable against closing cash if the transaction closes, and otherwise treated as an "Extension Deposit" under the parties' LOI upon termination; all other terms of the Asset Purchase Agreement remained in effect.

<u>Second Amendment and Waiver to Asset Purchase Agreement (June 11, 2023)</u>

AMASS and Full Glass amended schedules to the Asset Purchase Agreement (including transferred trademarks and contracts), added clarifying provisions related to the prior bankruptcy acquisition by BWSC, and included a new "No Other Representations" section for seller acknowledgments; with seller indemnification for any resulting damages, and certain estimated post-closing adjustment amounts were set. The amendment provides that its terms control over any conflict with the Asset Purchase Agreement and confirms continued application of the agreement's miscellaneous provisions.

<u>Disclosure Schedule to Asset Purchase Agreement (June 11, 2023)</u>

The disclosure schedule sets forth exceptions, supplemental details, and lists supporting the representations, warranties, and schedules to the Asset Purchase Agreement, including title and condition matters, permit and licensing inventories across jurisdictions, and a comprehensive register of material contracts and assignments relevant to the transferred assets and assumed liabilities.

<u>Amended and Restated Secured Promissory Note (February 29, 2024)</u>

Full Glass (as borrower) issued to AMASS (as lender) an amended and restated senior secured promissory note in the principal amount of $1,884,023.62, bearing interest at 8.0% per annum, requiring $150,000 monthly payments beginning March 1, 2024, and maturing on the earlier of April 30, 2025 or acceleration, with customary default interest, offset rights tied to indemnification under the Asset Purchase Agreement, and security interests over defined collateral subject to covenants and events of default. The note reflects the Restatement Agreement's reduction of principal and cancellation of the subordinated note, and includes a waiver of any defaults existing prior to the effective date.

<u>Restatement Agreement (February 29, 2024)</u>

AMASS and Full Glass agreed that upon a "Payment Event" (receipt by AMASS Parties of $3,500,000 in cash by March 1, 2024), the AMASS warrant would be cancelled, the senior and subordinated notes would be collectively amended and restated into a single $1,884,023.62 note with prior defaults waived, all guaranties would terminate, and certain purchase price adjustment provisions under the Asset Purchase Agreement would be deleted; AMASS retained a limited board observer right until the restated note is satisfied. The parties also terminated the transition services agreement (with specified survivals and no further amounts owing), set storage and landlord acknowledgment obligations for company inventory at AMASS facilities, and established delivery and payment schedules for "Ordered Inventory"; tax treatment was agreed as purchase price adjustments.

<u>Multi-Year Wine Purchase Agreement (February 29, 2024)</u>

AMASS (as seller) and a Full Glass affiliate (as buyer) entered into a multi-year agreement for the manufacture, purchase, and sale of wine products through February 28, 2026, providing for quarterly demand forecasts, minimum purchase order quantities per SKU and production run, and FCA (Incoterms 2020) delivery terms with title and risk of loss passing upon loading at the delivery point; a schedule reflects committed bulk wine volumes by varietal/SKU.

<u>Second Amended and Restated Promissory Note (October 23, 2024)</u>

Full Glass (as borrower) issued to AMASS (as lender) a second amended and restated senior promissory note in the principal amount of $717,714.38, bearing interest at 8.0% per annum, requiring $150,000 monthly payments beginning November 1, 2024 and an additional $215,000 principal payment upon specified bank facility funding, with maturity on the earlier of April 30, 2025 or acceleration and a waiver of all prior defaults as of the effective date. The note incorporates offset rights tied to indemnification under the Asset Purchase Agreement and provides that, upon receipt of a $550,000 repayment in respect of the prior amended and restated note, the security interests automatically terminate and UCC and IP security filings may be terminated.

**Our Employees**

As of December 31, 2025, we employed approximately 25 full-time employees, primarily located across the continental United States. Our employees are engaged across functions including sales, marketing, operations, finance, and product development. We believe our ability to attract, develop, and retain top talent is critical to our long-term success, particularly given the competitive nature of the consumer products and beverage alcohol industries. None of our employees are represented by a labor union, and we consider our relationship with our employees to be strong. In addition, we supplement our workforce with independent contractors and consultants where specialized expertise is required. We are committed to fostering a culture that emphasizes collaboration, accountability, and innovation, while investing in employee development and engagement to support the continued growth of our business.

**Outsourcing**

We rely on a network of third-party service providers and strategic partners to support key aspects of our operations. These include contract manufacturers for production and bottling, third-party logistics providers for warehousing and fulfillment, and specialized vendors for functions such as information technology, customer service, and compliance. Outsourcing these functions allows us to maintain a scalable and capital-efficient operating model, focus our resources on brand building and innovation, and access specialized expertise without incurring significant fixed costs. We maintain relationships with multiple suppliers and partners to help mitigate concentration risk, but the loss of, or disruption at, a key outsourced partner could have an adverse effect on our business.

**Distribution and Brokerage Arrangements**

We distribute our alcoholic beverage products primarily through third-party licensed wholesalers and distributors pursuant to distribution agreements that generally grant exclusivity for specified brands and territories, while in certain cases permitting us to retain direct-to-consumer sales rights (where permitted by law). These agreements typically include: (i) pricing set forth in agreed price lists, with advance notice of price changes (often 60–90 days); (ii) customary payment terms (including net payment terms) and late charges on past-due amounts; (iii) an initial term (often three years) with renewal provisions that in some cases are tied to achievement of agreed sales targets; (iv) termination rights for cause (including non-payment, insolvency, loss of required licenses, or other material breach) subject to notice and cure periods, and in some cases termination without cause by the distributor upon advance notice; (v) post-termination obligations, which may include the resale or transfer of remaining inventory at laid-in cost and cessation of use of our trademarks; and (vi) ongoing performance and reporting obligations, including commercially reasonable or "best efforts" promotion of the brands and periodic (often monthly) sales and depletion reporting. Certain of our agreements also include minimum performance thresholds tied to renewal and/or liquidated-damages style payments in limited circumstances if terminated early without cause. Certain distribution agreements also include provisions that may be triggered by a change of control or sale of a brand or related intellectual property, including requirements that a purchaser assume the agreement and/or that we pay a fee or termination payment in specified circumstances, which may survive termination.

**Suppliers**

We source raw materials, packaging, and finished goods from a network of domestic and international suppliers. Key inputs include bulk wine, spirits, glass, closures, and packaging materials. We work with both long-term strategic suppliers and spot market vendors to maintain flexibility and manage costs. In certain cases, we rely on a limited number of suppliers for specific ingredients or components, and disruptions in the availability or quality of these materials could adversely affect our operations. However, we do not rely on any one particular supplier and believe we can find suitable replacements in the event we lose any particular supplier. We actively manage supplier relationships and diversify sourcing where feasible to mitigate concentration risk and supply chain volatility. We believe our supplier base is generally stable and provides us with access to the quality and innovation required to support our brands.

Our principal raw materials include grapes and bulk wine, spirits and packaging inputs such as glass bottles, closures, labels, and other packaging materials. For our wine portfolio, we source grapes and bulk wine entirely from third parties through a combination of contracted grapes, contracted bulk wine, spot grapes, and spot bulk wine, and we utilize a mix of longer-term strategic relationships and spot market purchases to support continuity of supply.

We also procure certain bulk wine, finished wine, and storage and bottling services pursuant to written agreements such as those filed as exhibits to this registration statement. Under a bulk wine purchase agreement for a rosé program (Exhibit 10.30), we agreed to purchase 150,000 gallons for harvest years 2024 through 2028 at $13.50 per gallon, with pricing increasing by 3% per annum in the evergreen renewal period and capped at $14.00 per gallon. Payments are made in four installments (25% due September 1 and December 1 of the harvest year and 25% due March 1 and June 1 of the following year). We are required to accept the bulk wine by December 1 following harvest; bulk wine not paid for and shipped within 30 days after December 1 is subject to storage charges of $0.14 per gallon per month. Title does not transfer until all amounts owed are paid in full, and risk of loss shifts at acceptance as defined in the agreement. The agreement provides for interest on late payments at 1.5% per month, and if an invoice is more than 45 days past due, then the supplier may sell all or a portion of the bulk wine to a replacement buyer, with us remaining responsible for any decrease in the sale price. The agreement automatically renews annually after the initial term unless timely notice of intent to terminate is delivered during the specified annual notice window, and includes termination rights, including termination following a force majeure event preventing performance for 30 or more consecutive days, and the supplier's right to terminate immediately for nonpayment, other noncompliance, or insolvency/bankruptcy. The agreement also grants the supplier a security interest in the bulk wine and proceeds to secure payment obligations.

We also have finished bulk wine purchase agreements (E.g. Exhibits 10.32 and 10.33) providing for the purchase of specified annual volumes across multiple vintages at fixed prices per gallon. For example, one agreement provides for 77,000 gallons per vintage of a California Red Wine Blend for the 2021–2023 vintages at $9.00 per gallon, and another provides for 60,000 gallons per vintage of California Cabernet Sauvignon for the 2021–2023 vintages at $9.85 per gallon. Under these agreements, we pay 100% net 30 days from the date of shipment or bottling; storage fees of $0.08 per gallon per month beginning on April 1 following harvest, and wine must be shipped or bottled and paid for in full by December 31 one year following harvest. Delinquent amounts are subject to a late charge of 1.5% per month, and failure to pay does not constitute a default until the seller makes written demand and we fail to pay within 10 days after receipt of the demand. Title and risk of loss transfer upon shipment, and the seller represents that it is the sole owner of the wine and will deliver it free of liens; the agreements also include assignment restrictions requiring the other party's written consent.

In addition, we rely on third-party storage and bottling services under a custom storage and bottling agreement (Exhibit 10.31) that expires on December 31, 2028, and applies to vintages 2024–2027. Under that agreement, we commit to deliver approximately 120,000 gallons per vintage for storage and to bottle approximately 50,000 9L equivalent cases per vintage, and the service provider may charge for the greater of cases actually bottled or 80% of the aggregate bottling commitment if bottling volumes fall short. Bottling charges are due 15 days after each bottling event and other charges are due 30 days after billing; past due amounts bear a late charge of 1.5% per month. The agreement includes scheduling requirements (completed bottling work orders due 30 days prior to bottling; bulk wine delivered 14 days prior; packaging delivered no later than two business days prior), and provides that delays caused by late or defective wine or packaging may result in cancellation fees as specified in the agreement. We supply all packaging materials (including bottles, labels, closures and boxes) and are responsible for packaging condition/quality and label compliance, and bottled wine must be removed within five business days after bottling. The agreement includes limited cancellation rights for later vintages subject to notice and buy-out fees (including $221,450 payable by September 1, 2026 if cancelled after the 2025 bottling and before the 2026 vintage, and $136,000 payable by September 1, 2027 if cancelled after the 2026 bottling and before the 2027 vintage), as well as default provisions (including a 30-day notice period for payment defaults and cure provisions for other breaches) and dispute resolution through arbitration in California.

**Strategic Acquisitions**

In December 2022, the Company entered into a debtor-in-possession credit facility (DIP) to fund Winc during the Company's section 363 asset acquisition. Under the DIP, the Company paid $2,000,000 in December 2022 and an additional $1,500,000 in January 2023. Total interest and credits earned on the DIP was $133,832 and was considered part of the purchase consideration on January 23, 2023, along with the principal, as part of the Company acquisition of Winc.

In January 2023, the Company finalized the Asset Purchase Agreement to acquire substantially all of the assets and liabilities from Winc out of bankruptcy through a Section 363 sale. The Company considers the net assets acquired through the Winc transaction to be two business units: wholesale and Winc.com DTC.

On September 19, 2024, the Company entered into an Asset Purchase Agreement to acquire 50.0001% of the equity stake in 222 Spirits Holdings, LLC. The Company issued 2,220,150 shares of Series B-3 Preferred Stock as total consideration for the transaction. 222 Spirits houses the IP for the brand Calirosa, a brand backed by Adam Levine in which the tequila is aged in red wine barrels.

**Regulatory Environment**

Our operations, together with those of our distributors, retail accounts, and ingredient and packaging suppliers, are subject to extensive regulation by federal, state, and local authorities in the United States and in foreign jurisdictions where our products are sold. In the United States, the production, distribution, marketing, and sale of our craft spirits, canned cocktails, and other beverage alcohol products are overseen by agencies including the Alcohol and Tobacco Tax and Trade Bureau ("TTB"), the U.S. Food and Drug Administration ("FDA"), and various state-level alcohol beverage control boards. We must comply with a wide range of requirements relating to labeling, advertising, formulation, permitting, packaging, storage, and distribution, as well as state and local tax obligations in all jurisdictions where our products are sold and federal excise taxes on spirits removed from bond. We continuously monitor regulatory developments to maintain compliance with all applicable tax, licensing, and reporting requirements, and in states where we operate, we are also subject to city and county building, land use, and other local codes and regulations.

Maison Thomas maintains 24 active wholesale permits for the states in which it directly conducts sales and distribution. In 13 additional states, operations are conducted either through third-party entities that hold the requisite licenses (8 states) or through our distributor partner, which maintains the relevant licenses (5 states). Certain jurisdictions, including Alaska, Florida, Hawaii, and South Dakota, do not require a state-level license for our activities. The Company's spirits portfolio is distributed exclusively through third-party partners that possess and maintain all required state and federal approvals.

We utilize Avalara, a third-party software platform, to manage state-level compliance, excise tax filings, and reporting obligations. Avalara assists us in ensuring adherence to applicable federal and state regulations and enables us to scale operations efficiently while reducing the administrative burden of multi-jurisdictional compliance and product registration.

*Alcohol-related regulation*

We are subject to extensive regulation in the United States by federal, state and local laws and regulations regulating the production, distribution and sale of consumable food items, and specifically alcoholic beverages, including by the TTB and the FDA. The TTB is primarily responsible for overseeing alcohol production records supporting tax obligations, issuing labeling guidelines, including input and alcohol content requirements, as well as reviewing and issuing certificates of label approval, which are required for the sale of spirits and alcoholic beverages through interstate commerce. We carefully monitor compliance with TTB rules and regulations, as well as the state laws of each state in which we sell our products. In the states in which our distilleries are located, we are subject to alcohol-related licensing and regulations by many authorities, including the state department of alcohol beverage control or liquor control. State agents and representatives investigate applications for licenses to sell alcoholic beverages, report on the moral character and fitness of alcohol license applicants and the suitability of premises where sales are to be conducted and enforce state alcoholic beverages laws. We are subject to municipal authorities with respect to aspects of our operations, including the terms of our use permits. These regulations may limit the production of alcoholic beverages and control the sale of alcoholic beverages, among other elements.

 

*Employee and occupational safety regulation*

We are subject to certain state and federal employee safety and employment practices regulations, including regulations issued pursuant to the U.S. Occupational Safety and Health Act ("OSHA"), and regulations governing prohibited workplace discriminatory practices and conditions. These regulations require us to comply with manufacturing safety standards, including protecting our employees from accidents, providing our employees with a safe and non-hostile work environment and being an equal opportunity employer. We are also subject to employment and safety regulations issued by state and local authorities.

 

*Environmental regulation*

Due to our production activities, we and certain third parties with which we work are subject to federal, state and local environmental laws and regulations. Federal regulations govern, among other things, air emissions, wastewater and stormwater discharges, and the treatment, handling and storage and disposal of materials and wastes. State environmental regulations and authorities intended to address and oversee environmental issues are largely state-level analogs to federal regulations and authorities intended to perform similar purposes.

 

*Privacy and security regulation*

We collect personal information from individuals. Accordingly, we are subject to several data privacy and security related regulations, including but not limited to: U.S. state privacy, security and breach notification laws; and the General Data Protection Regulation ("GDPR"). In addition, the Federal Trade Commission and many state attorneys general have interpreted existing federal and state consumer protection laws to impose evolving standards for the online collection, use, dissemination and security of information about individuals. Certain states have also adopted robust data privacy and security laws and regulations. In response to such data privacy laws and regulations and those in other countries in which we do business, we have implemented several technological safeguards, processes, contractual third-party provisions, and employee trainings to help ensure that we handle information about our employees and customers in a compliant manner. We maintain a global privacy policy and related procedures and train our workforce to understand and comply with applicable privacy laws.

**Intellectual Property**

We rely on a combination of trademarks, domain names, copyrights, and trade secrets to protect our brands and proprietary rights. We believe the trademarks, including brand names, logos, and distinctive packaging designs, we use are valuable assets that help differentiate our products in the marketplace and build consumer loyalty. We actively manage and maintain registrations for our key marks in the United States and in select international jurisdictions where our products are sold. In addition, we rely on confidentiality agreements, non-disclosure agreements, and other contractual protections with employees, contractors, and business partners to safeguard our proprietary information, formulations, and know-how. Although we consider our intellectual property protections to be robust, we cannot be certain that they will prevent others from misappropriating our rights or developing competing products that do not infringe on our intellectual property. From time to time, we may be required to enforce or defend our intellectual property rights, which could result in significant costs or diversion of resources.

Following the April 12, 2024 transaction, legal ownership of the AMASS® trademark (U.S. Reg. No. 5,498,634; Serial No. 87-215,668) and associated goodwill resides with Resonant Subholdings Inc., a Delaware corporation. We hold an exclusive, worldwide, royalty-free license from Resonant permitting the continued use of the AMASS® name for our product lines and marketing operations. The license includes customary quality-control provisions under which we must maintain specified product quality standards and comply with brand usage guidelines, and provides the licensor with customary approval rights designed to protect the goodwill of the mark. All goodwill generated from our continued use of the AMASS® mark accrues to Resonant as the trademark owner. The license contains standard commercial terms, including provisions addressing termination for cause and other customary remedies, as well as assignability and successor-in-interest concepts intended to support continuity of our rights; however, the effectiveness of such provisions against purchasers or successors in the event of an enforcement or insolvency proceeding may be subject to applicable law and the circumstances of any transfer, as described in Risk Factors. We do not have any ownership interest in the AMASS® trademark following the transaction.

We own registrations for GOOD TWIN in the United States, and our affiliate, Project Crush Acquisition Corp., LLC, owns registrations in the United States for its brands, including SUMMER WATER and associated logos.

**Property**

We do not maintain a traditional brick-and-mortar corporate headquarters office. Our executive team primarily works remotely. Our primary mailing address is in Santa Maria, California, and our primary operating facility is our leased warehouse in Santa Maria described below.

Santa Maria, California (Operating Warehouse and Primary Mailing Address): We lease a warehouse facility located in Santa Maria, California, which we use to store wine and spirits inventory, dry goods, and point-of-sale items (the "Santa Maria Warehouse"), serving both our wine and spirits segments. The on-site team performs inventory management, wholesale wine order fulfillment, and direct-to-consumer order fulfillment for Good Twin. The Santa Maria Warehouse is licensed under AMASS Brands Inc as a federal wholesaler and holder of California Type 02 and Type 14 licenses, authorizing the storage and distribution of wine and spirits. Through our wholly owned subsidiary, Maison Thomas LLC, the same location is licensed as a federal importer and wholesaler and holds California Type 09, Type 17, and Type 18 licenses, authorizing the importation into California and distribution of alcoholic beverages. The Santa Maria Warehouse lease expired in December 2023 and was renewed in January 2024, January 2025, and January 2026, each time for a one-year term. The Santa Maria Warehouse is currently operational and supports our ongoing wholesale and direct-to-consumer activities.

Bethel Township, Pennsylvania (Former Warehouse Facility): As part of the Winc acquisition in January 2023, we assumed contracts for two warehouse facilities: the Santa Maria Warehouse and a warehouse facility located at 1515 Garnet Mine Road, Bethel Township, Pennsylvania (the "Former Warehouse Facility"). The Former Warehouse Facility lease was terminated in July 2024, and we surrendered the premises and ceased operations at the facility. In March 2025, we entered into a Lease Termination and Settlement Agreement with the landlord of the Former Warehouse Facility. The final scheduled payment under that agreement was due in October 2025, and all obligations under the Lease Termination and Settlement Agreement have been satisfied and no amounts remain due. As a result, we no longer lease or operate the Former Warehouse Facility.

Los Angeles, California (Former Office Location): We previously maintained office space at 927 Santa Fe Avenue, Los Angeles, California, which was terminated by mutual consent with the landlord, and we do not have any remaining obligations under that lease. We do not currently maintain a separate executive office location.

**Legal Proceedings**

From time to time, we may become involved in claims, litigation, regulatory inquiries, audits, or other legal proceedings arising in the ordinary course of business. These matters may include commercial disputes with suppliers or distributors, employment-related claims, intellectual property matters, or regulatory compliance issues. We are not currently a party to any material pending legal proceedings, and, to our knowledge, no such proceedings have been threatened against us. While the outcome of legal proceedings is inherently uncertain, we do not believe that any existing claims or proceedings, individually or in the aggregate, would have a material adverse effect on our business, financial condition, or results of operations.

On July 12, 2024, we filed a civil action against VV1515 LLC, the landlord of our former Pennsylvania facility, in the United States District Court for the Eastern District of Pennsylvania, captioned AMASS Brands Inc. v. VV1515 LLC, Case No. 2:24-cv-04299, relating to a dispute concerning the termination of our lease for premises located at 1515 Garnet Mine Road, Bethel Township, Pennsylvania. In March 2025, we entered into a Lease Termination and Settlement Agreement with the landlord that resolves the dispute and provides for the dismissal with prejudice of the litigation. The landlord retained our $300,000 security deposit, and we agreed to make additional cash payments totaling $75,000 on a scheduled basis through October 2025. Subject to our timely performance under the Settlement Agreement, the parties exchanged mutual releases. Other than the matter described above, we are not currently a party to any legal proceedings that we believe are material to our business.

**Recent Developments**

Since December 31, 2025, we have undertaken a number of significant initiatives and experienced developments that we believe position us for future growth. These include (i) the launch of new product innovations, (ii) the expansion of our distribution footprint into additional states and key national retail accounts, (iii) continued growth of our direct-to-consumer channel, supported by targeted digital marketing campaigns, and (iv) capital raising activities. In addition, we have implemented cost optimization measures to improve gross margin and operating efficiency. These actions, together with our ongoing brand investments, have strengthened our platform as we prepare for the next stage of our growth as a public company.

**MANAGEMENT**

**Executive Officers**

The following table sets forth certain information, as of the date of this prospectus, concerning our executive officers:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Mark T. Lynn | 41 | Chairman & Chief Executive Officer |
| Erin K. Green | 41 | Chief Operating Officer |
| Zachary Ament | 30 | Chief Financial Officer |

---

The following is a biographical summary of the experience of our executive officers.

**Mark T. Lynn** is our Chief Executive Officer, Founder, Principal Accounting Officer, and a director. Mr. Lynn has served as our Chief Executive Officer and a director since January 2019, when he founded AMASS. Since founding the Company, he has overseen strategy, operations, and brand development across the portfolio. In addition, Mr. Lynn has served as a member of the Board of Directors of Digital Brands Group (NASDAQ: DBGI) since September 2015. Prior to founding AMASS, Mr. Lynn held leadership positions in the consumer products sector, focusing on brand building, go-to-market execution, and scaling operations. Because of his deep knowledge of the beverage and consumer industries, his entrepreneurial background, and his leadership experience as both a founder and a board member of a public company, we believe Mr. Lynn is well qualified to serve on our board of directors.

**Erin K. Green** Ms. Green has served as our Chief Operating Officer since 2023, overseeing supply chain, operations, and commercial execution across our wine, spirits, and emerging beverage businesses. She is responsible for strategy and execution across multiple channels, including direct-to-consumer and wholesale, driving scalable growth and operational alignment across diverse routes to market. Ms. Green has also served as a member of our Board of Directors since 2025. Prior to AMASS, she joined Winc in 2015, where she served as served as Chief Operating Officer from 2023 to 2021. Ms. Green led multi-brand operations across wholesale and DTC, and before that held senior leadership roles at several consumer and retail companies. Throughout her career, she has built and executed wholesale strategies, optimized supply chains, and scaled consumer brands, bringing significant expertise in logistics, process management, and strategic execution. Ms. Green holds a Bachelor's degree in fine arts from Indiana University.

**Zachary Ament** is our Chief Financial Officer. Mr. Ament has served as our Chief Financial Officer since 2025, after previously serving as Director of Finance. Mr. Ament joined the Company's finance and accounting team in May 2020 and has held roles of increasing responsibility since that time. In his current role, he is responsible for all aspects of finance, accounting, capital markets, financial planning and analysis, M&A activity, and strategic planning, including leading the Company's readiness for a potential public listing. Prior to joining AMASS, Mr. Ament worked as an auditor for CohnReznick LLP across technology, media, food and beverage sectors. Mr. Ament earned his Masters of Accountancy degree from the University of Southern California and is a CPA (inactive).

**Non-Employee Directors**

The following table sets forth certain information, as of the date of this prospectus, concerning our non-employees who serve on our board of directors:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Christopher Bridges | 46 | Director |
| Edoardo Piscopo Di Ciccolini | 37 | Director |
| Jed MacArthur | 46 | Director |

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The following is a biographical summary of the experience of our non-employee directors.

**Christopher Bridges** serves as a director of AMASS, a position which he has held since 2025, and is the Chief Executive Officer of AMARA Rewards Inc., a fintech company focused on consumer credit and payments innovation. Prior to AMARA, Mr. Bridges was CEO of Vital Card from January 2020 through June 2025, overseeing product development, technology strategy, and capital raising. Prior to his current roles, Mr. Bridges held senior positions in financial services and technology companies, where he gained extensive experience in payments, consumer credit, and business development. Because of Mr. Bridges' leadership in financial services, his experience scaling technology-driven consumer businesses, and his governance expertise, we believe Mr. Bridges is well qualified to serve on our board of directors.

**Edoardo Piscopo di Ciccolini** serves as a director of AMASS, a position which he has held since 2025. Mr. Piscopo di Ciccolini is the Founder and Chief Executive Officer of Forte Technologies, a consumer technology company founded in 2024. From 2020 to 2023 he served as Chief Operating Officer of O'Gara Coach, one of the largest luxury automobile dealership groups in the world, representing brands such as McLaren, Lamborghini, Rolls Royce, and Aston Martin. Since 2023, Mr. Piscopo di Ciccolini has served on the board of Italcost S.R.L., a strategic Italian LPG import and distribution company, and Italmare S.p.A., a national retail business. We believe Mr. Piscopo di Ciccolini's extensive leadership experience in luxury consumer brands, international distribution, and global operations provides valuable insights and expertise to our Board.

**Jed MacArthur** serves as a director of AMASS, a position which he has held since 2025. Jed is the operator of Westbound & Down Brewery, which he founded in 2015, the most award-winning Colorado craft brewery recognized nationally for quality and innovation. He has scaled the brand from a single brewpub into a multi-location business with medals from the Great American Beer Festival and a loyal consumer following. As a board member, Jed brings founder-level experience in alcohol CPG, with expertise in brand building, distribution strategy, fundraising, and operating in regulated markets. He combines creative vision with disciplined execution, offering strategic guidance on scaling, capital planning, and long-term brand growth.

**Board of Directors**

Our Board of Directors is responsible for overseeing the management of our business and affairs and providing strategic guidance to our executive leadership team. The Board is currently composed of 5 members, including 3 independent directors within the meaning of the applicable listing standards of The Nasdaq Stock Market. Our directors bring a diverse range of expertise across consumer products, beverage alcohol, finance, operations, and corporate governance. The Board has established an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee, each composed entirely of independent directors. We believe the collective experience, industry knowledge, and leadership skills of our Board members position us well to execute on our strategic priorities and support our transition to the public mark.

**Director Independence**

Our board of directors has determined that Christopher Bridges, Edoardo Piscopo di Ciccolini, and Jed MacArthur are independent under the NASDAQ listing standards, and that a majority of our board is currently independent. Our board has made independence determinations under Nasdaq Listing Rule 5605(a)(2) and Item 407(a) of Regulation S-K, and our independent directors have held regularly scheduled executive sessions as required by Nasdaq Listing Rule 5605(b)(2).

**Board Leadership Structure**

Our Chief Executive Officer, other executive officers and other members of our management team regularly report to the non-executive directors and the audit committee to discuss any financial, legal, cybersecurity or regulatory risks, to ensure effective and efficient oversight of our activities and to assist in proper risk management and the ongoing evaluation of management controls. We believe that the leadership structure of our board of directors provides appropriate risk oversight of our activities.

**Committees of our Board of Directors**

***Audit Committee***

The members of our audit committee are Jed MacArthur, Edoardo Piscopo Di Ciccolini, and Christopher Bridges. Jed MacArthur serves as the chairperson of the committee. Our board of directors has determined that each member of the audit committee is "independent" as that term is defined in Nasdaq rules and has sufficient knowledge in financial and auditing matters to serve on the audit committee. In addition, our board of directors has determined that each member of the audit committee meets the heightened independence requirements for audit committees required under Section 10A of the Exchange Act and related SEC and Nasdaq rules. Our board of directors has determined that Jed MacArthur is an "audit committee financial expert," as defined under the applicable rules of the SEC. The audit committee's responsibilities include:

· appointing, approving the compensation of and assessing the independence of our independent registered
public accounting firm;

· pre-approving auditing and permissible non-audit services, and the terms of such services, to be provided
by our independent registered public accounting firm;

· reviewing the overall audit plan with our independent registered public accounting firm and members of
management responsible for preparing our financial statements;

· reviewing and discussing with management and our independent registered public accounting firm our annual
and quarterly financial statements and related disclosures as well as critical accounting policies and practices used by us;

· coordinating the oversight and reviewing the adequacy of our internal control over financial reporting;

· establishing policies and procedures for the receipt and retention of accounting-related complaints and
concerns;

· recommending based upon the audit committee's review and discussions with management and our independent
registered public accounting firm whether our audited financial statements shall be included in our annual report on Form 10-K;

· monitoring the integrity of our financial statements and our compliance with legal and regulatory requirements
as they relate to our financial statements and accounting matters;

· preparing the audit committee report required by SEC rules to be included in our annual proxy statement;

· reviewing all related person transactions for potential conflict of interest situations and approving
all such transactions; and

· reviewing quarterly earnings releases.

**Compensation Committee**

The members of our compensation committee are Edoardo Piscopo di Ciccolini, Jed MacArthur, and Christopher Bridges. Christopher Bridges serves as the chairperson of the committee. Our board of directors has determined that each member of the compensation committee is "independent" as that term is defined in Nasdaq rules and is a "non-employee director" under Rule 16b-3 under the Exchange Act. In addition, our board of directors has determined that each member of the compensation committee meets the heightened independence requirements for compensation committee purposes under Section 10C of the Exchange Act and related SEC and Nasdaq rules. The compensation committee's responsibilities include:

· reviewing and approving our philosophy, policies and plans with respect to the compensation of our chief
executive officer;

· making recommendations to our board of directors with respect to the compensation of our chief executive
officer and our other executive officers;

· reviewing and assessing the independence of compensation advisors;

· overseeing and administering our equity incentive plans;

· reviewing and making recommendations to our board of directors with respect to director compensation;
and

· preparing the compensation committee reports required by the SEC, including our "compensation discussion
and analysis" disclosure.

**Nominating and Corporate Governance Committee**

The members of our nominating and corporate governance committee are Edoardo Piscopo di Ciccolini, Jed MacArthur, and Christopher Bridges. Christopher Bridges serves as the chairperson of the committee. Our board of directors has determined that each member of the nominating and corporate governance committee is "independent" as defined in Nasdaq rules. The nominating and corporate governance committee's responsibilities include:

· developing and recommending to the board of directors criteria for board and committee membership;

· establishing procedures for identifying and evaluating board of director candidates, including nominees
recommended by shareholders;

· reviewing the composition of the board of directors to ensure that it is composed of members containing
the appropriate skills and expertise to advise us;

· identifying and screening individuals qualified to become members of the board of directors;

· recommending to the board of directors the persons to be nominated for election as directors and to each
of the board's committees;

· developing and recommending to the board of directors a code of business conduct and ethics and a set
of corporate governance guidelines; and

· overseeing the evaluation of our board of directors and management.

**Code of Conduct**

We have adopted a written code of business conduct and ethics, that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. In connection with the effectiveness of the registration statement of which this prospectus forms a part, a current copy of the code will be posted on our website at <u>www.amass.com</u> or <u>www.amassbrands.com</u>. If we make any substantive amendments to, or grant any waivers from, the code of business conduct and ethics for any officer or director, we will disclose the nature of such amendment or waiver on our website or in a Current Report on Form 8-K.

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Executive Compensation**

This section discusses the material components of the executive compensation program for our executive officers who are named in the "<u>— *2024 Summary Compensation Table*</u>" below. For the fiscal year ended December 31, 2025, our "named executive officers" and their positions were as follows:

· Mark T. Lynn, Chief Executive Officer

· Erin K. Green, Chief Operating Officer

· Geoffrey McFarlane, Former Interim
Chief Financial Officer

· Andrew Kim, Former Chief Financial Officer

This discussion may contain forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt following the completion of this offering may differ materially from the currently planned programs summarized in this discussion. As an "emerging growth company" and a "smaller reporting company," each as defined under SEC rules, we are not required to include a compensation discussion and analysis section and have elected to comply with the scaled disclosure requirements applicable to emerging growth companies and smaller reporting companies.

**2024 Summary Compensation Table**

The following table represents information regarding the total compensation awarded to, earned by or paid to our named executive officers during the fiscal year ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary**<br> **($)**  | **Total**<br> **($)**  |
| Mark T. Lynn, Chief Executive Officer | 2024 | 167240 | 167240 |
| Erin K. Green, Chief Operating Officer | 2024 | 200000 | 200000 |
| Geoffrey McFarlane, Former Interim Chief Financial Officer<sup>(1)</sup> | 2024 | 241904<sup>(2)</sup> | 241904 |
| Andrew Kim, Former Chief Financial Officer<sup>(3)</sup> | 2024 | 100300 | 100300 |

---

<sup>(1)</sup> Mr. McFarlane was appointed as interim chief financial officer of the Company in July 2024, and held that position until August 2025, when the Company appointed its current chief financial officer, Zachary Ament.

<sup>(2)</sup> Mr. McFarlane earned $121,904 in consulting fees prior to his appointment as interim chief financial officer and $120,000 in base salary as interim chief financial officer.

<sup>(3)</sup> Mr. Kim served as the Company's chief financial officer through June 2024.

 ****

**Narrative Disclosure to the Summary Compensation Table**

***2024 Salaries***

Base salaries are paid to our named executive officers to compensate them for services rendered to us. The base salary payable to each named executive officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role, and responsibilities.

For the fiscal year ended December 31, 2024, although Mr. Lynn's employment agreement provides for an initial base salary of $200,000. However, Mr. Lynn and the Company came to a mutual understanding to adjust his annualized cash base salary from time to time during 2024 due to business needs. Mr. Lynn's annualized cash base salary was $66,560 at the beginning of 2024 and was increased to an annualized rate of $200,000 in April 2024. Ms. Green's annual base salary was $200,600. In connection with the direct listing, the Board anticipates reviewing and potentially adjusting the base salaries of the Company's executive officers to better align with market practices for similarly situated executives at publicly traded companies. Any such adjustments would be intended to ensure the Company remains competitive in attracting and retaining key executive talent.

Mr. Kim served as the Company's chief financial officer through June 2024 with an annual base salary of $200,000. Following his separation, Mr. Kim provided consulting services to the company for which he received $48,666 in compensation. For additional details, please see the section titled "*<u>Agreements with our Named Executive Officers</u>*" below.

Mr. McFarlane was appointed interim chief financial officer in July 2024 with a base salary of $20,000 per month.

***2024 Bonuses***

None of the Company's named executive officers received bonuses for the fiscal year ended December 31, 2024.

***Equity Compensation***

None of the Company's named executive officers received equity compensation grants during the fiscal year ended December 31, 2024.

For additional information about the Company's equity compensation plans, please see the section titled "*<u>Equity Compensation Plans</u>*" below.

**Other Elements of Compensation**

***Retirement Plans***

The Company is a participating employer under the Justworks Retirement Savings Plan (the "401(k) Plan"). The 401(k) Plan is a multiple employer plan intended to qualify as a tax-qualified plan under Section 401(k) of the Code. The named executive officers are eligible to participate in the 401(k) Plan on the same basis as our other employees. The Code allows eligible employees to contribute, on a pre-tax basis, a portion of their salary, within prescribed limits, through contributions to the 401(k) Plan. Contributions are allocated to each participant's account and are then invested in selected investment alternatives according to each participant's directions. The Company has discretion to make employer matching and/or nonelective contributions to the 401(k) Plan on participants' behalf; however, the Company did not make any such contributions to the 401(k) Plan in the fiscal year ended December 31, 2024.

***Employee Benefits and Perquisites***

The Company's named executive officers are eligible to receive the same employee benefits that are generally available to all full-time, U.S.-based employees, subject to the satisfaction of certain eligibility requirements. In structuring these benefit plans, the Company seeks to provide an aggregate level of benefits that are comparable to those provided by similar companies.

**Agreements with our Named Executive Officers**

***Mark T. Lynn***

We entered into an employment agreement with Mr. Lynn, effective March 16, 2020, pursuant to which Mr. Lynn serves as our Chief Executive Officer. Pursuant to his agreement, Mr. Lynn is entitled to receive an initial base salary of $200,000. However, Mr. Lynn and the Company came to a mutual understanding to adjust his annualized cash base salary from time to time during 2024 due to business needs. Mr. Lynn's annualized cash base salary was $66,560 at the beginning of 2024 and was increased to an annualized rate of $200,000 in April 2024. Mr. Lynn's employment pursuant to the employment agreement is "at-will" and is terminable by either party for any reason and with or without notice.

The Company anticipates entering into a revised employment agreement with Mr. Lynn in connection with or following the completion of the direct listing. The terms of any such agreement are expected to reflect Mr. Lynn's role and responsibilities at the Company and to be consistent with market practices for similarly situated executives at publicly traded companies. As of the date of this prospectus, no such agreement has been finalized.

***Erin K. Green***

We entered into an offer letter with Ms. Green, dated January 19, 2023, pursuant to which Ms. Green serves as our Chief Operating Officer. Pursuant to her agreement, Ms. Green is entitled to receive an initial base salary of $200,000. Ms. Green's employment pursuant to the offer letter is "at-will" and is terminable by either party for any reason and with or without notice.

The Company anticipates entering into an employment agreement with Ms. Green in connection with or following the completion of the direct listing. The terms of any such agreement are expected to reflect Ms. Green's role and responsibilities at the Company and to be consistent with market practices for similarly situated executives at publicly traded companies. As of the date of this prospectus, no such agreement has been finalized.

***Zachary Ament***

We entered into an employment letter with Mr. Ament dated August 21, 2025, pursuant to which Mr. Ament was promoted to serve as our Chief Financial Officer. Pursuant to the employment letter, Mr. Ament is entitled to receive an annual base salary of $160,000. Mr. Ament is also eligible to receive an annual cash bonus in the amount of $40,000. Amounts earned through the completion of the Company's direct listing are payable on a pro rata basis upon the closing of the direct listing, subject to Mr. Ament's continued employment through such date, with any such amounts payable within thirty (30) days following the closing. Mr. Ament is also eligible to receive an additional transaction-related bonus in connection with the completion of the direct listing and to participate in the Company's standard employee benefit programs as in effect from time to time. Mr. Ament's employment is at-will and may be terminated by either party at any time, with or without cause or notice.

Subject to approval by the Board, Mr. Ament has been granted an option to purchase 100,000 shares of the Company's common stock pursuant to the Company's equity incentive plan, as amended or adopted from time to time, with vesting and other terms to be determined by the Board and set forth in the applicable award agreement.

The Company anticipates entering into a revised employment agreement with Mr. Ament in connection with or following the completion of the direct listing. As of the date of this prospectus, no such agreement has been finalized.

***Geoffrey McFarlane***

We did not enter into any agreements with Mr. McFarlane during or following his employment as interim chief financial officer.

Following his term as interim chief financial officer, Mr. McFarlane continued to serve as a consultant. The Company anticipates entering into a consulting agreement with Mr. McFarlane in the near future. As of the date of this prospectus, no such agreement has been finalized.

***Andrew Kim***

Following his term as chief financial officer, the Company entered into a consulting arrangement with Good Juju, an entity owned and controlled by Mr. Kim, pursuant to which Mr. Kim provided transition services for a period of 60 days. Mr. Kim received $48,666 in compensation pursuant to this consulting arrangement. As of the date of this prospectus, no agreements are currently in effect between Mr. Kim and the Company.

**Equity Compensation Plans**

The following summarizes the material terms of the AMASS equity compensation plans.

***2016 Stock Option Plan***

 ****

On September 22, 2016, our Board and stockholders approved the AMASS 2016 Stock Plan (the "2016 Stock Plan"). The 2016 Stock Plan is intended to offer select employees, directors, and consultants with the opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by acquiring shares of the Company's common stock.

The 2016 Stock Plan authorizes the grant of shares, incentive stock options, and nonstatutory stock options, or any combination of the foregoing, each as determined by the plan administrator.

The 2016 Stock Plan initially reserved 4,666,667 shares of our common stock for issuance, subject to adjustment for stock splits, recapitalizations and similar events. Shares underlying awards that expire, are forfeited, or are settled in cash (including shares surrendered or withheld to cover exercise prices or tax withholding obligations) generally become available again for future awards under the 2016 Stock Plan.

The Board administers the 2016 Stock Plan and may delegate its authority to a committee of the Board. The administrator has broad discretionary authority to, among other things: select eligible participants; determine the type, size and terms of awards (including vesting conditions, exercise prices and expiration dates); accelerate or extend vesting or exercise; interpret and amend the plan and outstanding awards; and establish rules for plan administration.

Options granted under the 2016 Stock Plan must have an exercise price at least equal to the fair market value of our common stock on the date of grant (110 percent of fair market value for incentive stock options granted to holders of 10 percent or more of our total voting power). Options may have a term of up to ten years, except that incentive stock options granted to 10 percent stockholders may not exceed a five-year term.

Upon a subdivision of the outstanding stock, a declaration of a dividend payable in shares, a combination or consolidation of the outstanding stock into a lesser number of shares, a reclassification, or any other increase or decrease in the number of issued shares, the proportional adjustments will automatically be made to the number and type of shares reserved under the 2016 Stock Plan and to outstanding awards (including, as applicable, the number of shares and exercise prices and any repurchase price that applies to shares granted pursuant a Company repurchase right under the applicable award agreement). In connection with the declaration of an extraordinary dividend payable in a form other than shares in an amount that has a material effect of the fair market value of the Company's common stock, a recapitalization, a spin-off, or other similar occurrence, the administrator may, in its discretion, make appropriate adjustments to the number and type of shares reserved under the 2016 Stock Plan and to outstanding awards (including, as applicable, the number of shares and exercise prices and any repurchase price that applies to shares granted pursuant a Company repurchase right under the applicable award agreement). In connection with a merger or consolidation, or in the event of a sale of all or substantially all of the Company's stock or assets, the administrator may, in its discretion, provide for the acceleration, assumption, substitution, or cash-out of outstanding awards, or for their termination if the optionee has been given notice and an opportunity to exercise vested options for period of no less than five business days preceding the effective date of the transaction.

The 2016 Stock Plan allows the administrator to establish procedures for satisfying tax-withholding obligations, including by withholding shares otherwise deliverable upon exercise.

Unless earlier terminated by the Board, the 2016 Stock Plan will remain in effect until the tenth (10th) anniversary of the later of (i) the date the 2016 Stock Plan was approved by the Board or (ii) the date when the Board approved the most recent increase in the number of shares reserved under the 2016 Stock Plan that was also approved by the Company's stockholders. No awards may be granted under the plan thereafter.

The foregoing summary of the 2016 Stock Plan is qualified in its entirety by reference to the full text of the plan, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part and is incorporated herein by reference.

***2026 Omnibus Incentive Plan***

On [·], 2026 and [·], 2026, our Board and stockholders, respectively, approved the 2026 Omnibus Plan. The 2026 Omnibus Plan is intended to promote the long-term success of the Company by aligning the interests of employees, directors and consultants with those of our stockholders, encouraging individual performance, fostering teamwork and enabling us to attract and retain the talent necessary to drive our growth following the direct listing of our common stock.

The 2026 Omnibus Plan authorizes the grant of a broad array of equity and cash-based awards, including incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based awards (including performance-conditioned restricted stock and restricted stock units), other share-based awards and other cash-based awards, or any combination of the foregoing, each as determined by the plan administrator.

The 2026 Omnibus Plan initially reserves [·] shares of our common stock for issuance, subject to adjustment for stock splits, recapitalizations and similar events. Beginning January 1, 2027 and on the first trading day of each calendar year thereafter, the share reserve will automatically increase by a number of shares equal to four (4%) percent of the total outstanding shares of our common stock on the last day of the immediately preceding calendar year, unless the Board determines prior to the date of increase that no such increase (or a lesser increase) will occur. Shares underlying awards that expire, are forfeited, or are settled in cash (including shares surrendered or withheld to cover exercise prices or tax withholding obligations) generally become available again for future awards under the 2026 Omnibus Plan; however, shares tendered to pay an exercise price, withheld to satisfy tax obligations, or repurchased on the open market with option proceeds will not again become available for issuance.

The Board administers the 2026 Omnibus Plan and may delegate its authority to a committee of the Board or, within prescribed limits, to one or more officers. The administrator has broad discretionary authority to, among other things: select eligible participants; determine the type, size and terms of awards (including performance goals, vesting conditions, exercise prices and expiration dates); accelerate or extend vesting or exercise; interpret and amend the plan and outstanding awards; and establish rules for plan administration.

Options and stock appreciation rights ("SARs") granted under the 2026 Omnibus Plan must have an exercise price (or base price, in the case of SARs) at least equal to the fair market value of our common stock on the date of grant (110 percent of fair market value for incentive stock options granted to holders of 10 percent or more of our total voting power). Options and SARs may have a term of up to ten years, except that incentive stock options granted to 10 percent stockholders may not exceed a five-year term. The administrator determines vesting schedules for all awards; however, stock options and other full-value awards are generally expected to vest over time or upon achievement of performance goals.

Upon certain changes in our capitalization (for example, stock splits, mergers or similar events), the administrator will make equitable adjustments to the number and type of shares reserved under the 2026 Omnibus Plan and to outstanding awards (including, as applicable, the number of shares and exercise prices). In connection with a change in control, the administrator may, in its discretion, provide for the assumption, substitution, or cash-out of outstanding awards, or for their termination if the exercise price equals or exceeds the consideration payable to stockholders. If a participant's employment is terminated without Cause or resigns for Good Reason (as each term is defined in the applicable award agreement or other applicable agreement) within twelve months after a change in control, the participant's awards under the 2026 Omnibus Plan will become fully vested.

The 2026 Omnibus Plan allows the administrator to establish procedures for satisfying tax-withholding obligations, including by withholding shares otherwise deliverable upon exercise, vesting or settlement, or by accepting previously owned shares. Awards may be settled in shares, cash, or a combination of both, as provided in the applicable award agreement.

Unless earlier terminated by the Board, the 2026 Omnibus Plan will remain in effect until the day immediately preceding the tenth (10th) anniversary of the earlier of (a) its effective date or (b) the date the Plan was adopted by the Board, and no awards may be granted under the Plan thereafter.

The foregoing summary of the 2026 Omnibus Plan is qualified in its entirety by reference to the full text of the plan, a copy of which is filed as an exhibit to the registration statement of which this prospectus forms a part and is incorporated herein by reference.

**Outstanding Equity Awards at December 31, 2024 <sup>(1)</sup>**

The following table presents information regarding outstanding equity awards held by our named executive officers as of December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| Name | **Number of Securities <br>Underlying Unexercised <br>Options Exercisable** | **Number of Securities <br>Underlying Unexercised <br>Options Unexercisable** | **Option <br>Exercise <br>Price** | **Option <br>Expiration Date** |
| Mark T. Lynn<sup>(2)</sup> | 210416 | 489584 | $0.06 | October 30, 2033 |
| Erin K. Green<sup>(2)</sup> | 237499 | 362501 | $0.06 | October 30, 2033 |
| Geoffrey McFarlane |  |  |  |  |
| Andrew Kim |  |  |  |  |

---

(1) All stock options were granted under the
 2016 Stock Plan, as described in more detail under "*<u>Equity Compensation Plans</u>* <u>— *2016 Stock Option Plan*</u> " above. All of the stock
 options were granted with a per share exercise price equal to the fair value of one share
 of the Company's common stock on the date of grant, as determined in good faith by
 the Board. In making this determination, the Board relied on an independent third-party valuation
 prepared in accordance with Code Section 409A to assess the fair market value of the Company's
 common stock as of the applicable grant date.

(2) On October 31, 2023, the Company granted to Mr. Lynn and Ms. Green the option to purchase the number of
shares of common stock reflected above. All options vest and become exercisable in 48 ratable monthly installments, subject to the individual's
continued employment with the Company through the applicable vesting date. For Mr. Lynn, 200,000 stock options began vesting as of January
23, 2023 and 500,000 stock options began vesting as of January 1, 2024. For Ms. Green, 200,000 options began vesting as of January 23,
2023 and 400,000 stock options began vesting as of January 1, 2024. All options are classified as incentive stock options.

**Director Compensation**

No non-employee directors served on the Company's Board as of December 31, 2024. Christopher Bridges, Edoardo Piscopo Di Ciccolini and Jed MacArthur joined the Board as non-employee directors in 2025, as described in more detail under "*<u>Management—Non-Employee Directors</u>*" above. We intend to begin granting equity compensation to our non-employee directors, contingent upon completion of the Direct Listing.

**CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS**

The following is a summary of transactions since January 1, 2023 to which we were or are a party in which the amount involved exceeded the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two completed fiscal years, and in which any of our directors or executive officers, holders of more than 5% of our voting securities, or any immediate family member of, or entity affiliated with, any of the foregoing persons, had or will have a direct or indirect material interest.

Name of Person: Mark T. Lynn

Relationship to Company: Chief Executive Officer, Founder and director

Nature / amount of interest in the transaction: Mark T. Lynn is the Company's founder.

Material Terms: Mark T. Lynn has received various advances from the Company. In January 2022, the Company entered into a loan agreement with Mark T. Lynn in which the balance outstanding is incurring interest at a rate of 1.6% per annum. As of December 31, 2024 and 2023, net amount due from Mark T. Lynn was $1,268,341 and $942,291, respectively. Interest earned in the years ended December 31, 2024 and 2023, on the advances was $18,095 and $10,665, respectively. These advances are payable on demand.

Prior to the effectiveness of this registration statement, the Company intends to purchase a portion of Mr. Lynn's common stock at a price equal to the most recent financing price. The full amount owed by Mr. Lynn to the Company is expected to be satisfied prior to the effectiveness of this registration statement through a non-cash offset against the purchase price of such shares. Following this transaction, no amounts are expected to remain outstanding from Mr. Lynn to the Company.

Name of Entity: Nitehous LLC

Relationship to Company: Directors and Officers

Nature / amount of interest in the transaction: Mark Lynn is executor but not investor, and Geoffrey McFarlane

Material Terms: In January 2023, the company took out a loan from Nitehouse LLC to finance the purchase of substantially all of Winc's assets. The loan amount was for the principal balance of $500,000. The note accrues interest at a monthly rate of 15% for the first month and a monthly rate of 2% for each subsequent month. The loan initially matured in December 2023 was extended to July 2025. In 2024 when Geoffrey McFarlane became interim CFO, the Company deemed this loan to be with a related party. As of December 31, 2024 and 2023, the balance on the note was $325,866 and $552,098, respectively. Interest accrued in the years ended December 31, 2024 and 2023, on the advances was $123,768 and $177,098, respectively. The terms of the loan were at the same terms as other arms-length lenders during that time.

Name of Entity: Alchemi Project Inc.

Relationship to Company: Beneficial owner of more than 5% of Common Stock

Nature / amount of interest in the transaction: On January 30, 2024, we issued a promissory note in the principal amount of $1,000,000 to Alchemi Project Inc. (the "Alchemi Note"). The Alchemi Note bears simple interest at a rate of 6.25% per annum (based on a 365-day year), with interest prepaid as of the date of issuance. The Alchemi Note matures on the earliest to occur of January 30, 2026 or an event of default (as defined in the note). We may prepay the Alchemi Note, in whole or in part, at any time without penalty. Events of default include specified insolvency and receivership events. The Alchemi Note is governed by Delaware law. In connection with the promissory note, Alchemi received warrants convertible to 642,686 shares of common stock at the exercise price of $0.08 per share. Alchemi exercised the warrants in February 2025. The Alchemi Note does not permit assignment by either party without the written consent of the other. See "*<u>Selling Stockholders</u>*" and "*<u>Management's Discussion and Analysis of Financial Results and Condition Liquidity and Capital Resources</u>*" for additional information. For a description of the selling stockholder affiliated with the Alchemi Note and related Item 507 disclosures, see "*<u>Selling Stockholders</u>*".

Name of Entity: Resonant LLC

Relationship to Company: Special purpose entity whose director is a related party; consolidated variable interest entity

Nature / amount of interest in the transaction: The Company sold the AMASS trademark to Resonant and entered into a secured promissory note arrangement in connection with a financing transaction.

Material Terms: In April 2024, the Company sold the AMASS trademark to Resonant LLC, a special purpose vehicle whose director is a related party, and concurrently entered into an arrangement pursuant to which the Company will repurchase the trademark following repayment of a secured promissory note entered into in connection with the transaction. At the same time, the Company entered into an exclusive, worldwide, royalty-free license permitting its continued use of the AMASS name for its products and marketing operations.

Concurrently with the trademark sale, a third-party investor loaned funds to Resonant, which were secured by the trademark. The Company received the loan proceeds, which were memorialized in a secured promissory note described in Note 10 to the consolidated financial statements. Because Resonant is a variable interest entity whose director is a related party and the Company is the primary beneficiary, Resonant is consolidated with the Company. Accordingly, the sale of the trademark had no impact on the Company's consolidated financial statements; however, the Company recognized the secured promissory note and related interest expense. The maturity of the note was subsequently extended, including most recently, through April 2027.

Name: Various

Relationship to Company: Stockholders of the Company

Material Terms:

In connection with our preferred stock financings, we entered into an Amended and Restated Investors' Rights Agreement, and Amended and Restated Voting Agreement and an Amended and Restated Right of First Refusal and Co-Sale Agreement, containing, among other things, registration rights, information and observer rights, rights of first refusal, and rights of co-sale with certain holders of our capital stock, including Alchemi Project Inc., Mark Lynn (also our CEO) and Desmond Lynn. The foregoing rights are expected to terminate upon the direct listing, except for the registration rights under the Amended and Restated Investors' Rights Agreement, as more fully described under "*<u>Description of Capital Stock</u>*"

Name: Kayus LLC

Relationship to Company: Beneficial owner of more than 5% of Common Stock

Material Terms:

In December 2024, we sold 340,864 shares of De Soi common stock to Kayus LLC, a beneficial owner of more than 5% of our voting securities, for aggregate consideration of $500,000 ($1.47 per share). See "*<u>Principal and Registered Stockholders</u>*" for additional information regarding Kayus LLC's beneficial ownership.

**PRINCIPAL AND REGISTERED STOCKHOLDERS**

**Security Ownership of Certain Beneficial Owners and Management**

The following table sets forth:

&nbsp;&nbsp;&nbsp;&nbsp;· certain information with respect to the beneficial
ownership of our Common Stock and as of January 26, 2026 for:

&nbsp;&nbsp;&nbsp;&nbsp;· each person or group of affiliated persons known by us to be the beneficial owner of more than 5% of our Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;· each of our directors and named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;· all of our directors and named executive officers as a group; and

&nbsp;&nbsp;&nbsp;&nbsp;· the number of shares of our Common Stock and held by the Registered Stockholders and registered as Common Stock for resale by means of this prospectus for the Registered Stockholders.

The Registered Stockholders include (i) our affiliates and certain other stockholders with "restricted securities" (as defined in Rule 144 under the Securities Act) who, because of their status as affiliates pursuant to Rule 144 or because they acquired their Common Stock from an affiliate or from us within the prior 12 months, would be unable to sell their securities pursuant to Rule 144 until we have been subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act for a period of at least 90 days and (ii) our employees. The Registered Stockholders may, or may not, elect to sell their Common Stock covered by this prospectus, as and to the extent they may determine. The Registered Stockholders may offer, sell or distribute all or a portion of the shares of Common Stock hereby registered publicly or through private transactions at prevailing market prices or at negotiated prices. The Registered Stockholders may elect to sell their shares in connection with this Direct Listing and in market transactions following this Direct Listing. As such, we will have no input if and when any Registered Stockholder may, or may not, elect to sell their Common Stock or the prices at which any such sales may occur. See "*<u>Plan of Distribution</u>*." See "*<u>Selling Stockholders</u>*" for additional information regarding Registered Stockholders, including Item 507 information for entities and the identity of natural person(s) who exercise voting and/or investment control over their securities, and "*<u>Certain Relationships and Related Person Transactions</u>*" for descriptions of material relationships.

Information concerning the Registered Stockholders may change from time to time and any changed information will be set forth in supplements to this prospectus, if and when necessary. Because the Registered Stockholders may sell all, some, or none of the Common Stock covered by this prospectus, we cannot determine the number of Common Stock that will be sold by the Registered Stockholders, or the amount or percentage of shares of Common Stock that will be held by the Registered Stockholders upon consummation of any particular sale. In addition, the Registered Stockholders listed in the table below may have sold, transferred, or otherwise disposed of, or may sell, transfer, or otherwise dispose of, at any time and from time to time, our Common Stock or in transactions exempt from the registration requirements of the Securities Act, after the date on which they provided the information set forth in the table below.

We currently intend to use our reasonable efforts to keep the registration statement effective for a period of 90 days after the effectiveness of the registration statement. We are not party to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of Common Stock by the Registered Stockholders. However, we have engaged Maxim Group LLC, as our financial advisor to provide advice and otherwise assist us with respect to certain matters relating to our listing, including in defining objective, analysing, structuring and planning the direct listing, developing and assisting with investor communication strategy and consulting with Nasdaq. See "*<u>Plan of Distribution</u>*."

We have based percentage of beneficial ownership for the following table on 3,364,975 shares of Common Stock and 21,706,931 shares of Preferred Stock outstanding as of January 26, 2026. In addition, in accordance with the rules of the SEC, beneficial ownership includes voting or investment power with respect to securities issuable within 60 days of January 26, 2026. As such, shares of Common Stock and issuable pursuant to options and warrants that may be exercised or settled within 60 days of January 26, 2026 are deemed to be outstanding for purposes of computing the percentage of the class beneficially owned by the person holding such securities but are not deemed to be outstanding for purposes of computing the percentage of the class beneficially owned by any other person.

Each share of our Common Stock is entitled to 1 vote per share on all matters submitted to a vote of the stockholders, including the election of directors. Each holder of shares of our Preferred Stock is entitled to the number of votes equal to the number of whole shares of Common Stock into which shares of Preferred Stock held by such holder are convertible. Except as provided by law or the Certificate of Incorporation, holders of Preferred Stock vote together with the holders of Common Stock as a single class and on an as-converted to Common Stock basis.

The Registered Stockholders have not, nor have they within the past three years had, any position, office, or other material relationship with us, other than as disclosed in this prospectus. See "*<u>Management's Discussion and Analysis of Financial Results and Condition</u>*" and "*<u>Certain Relationships and Related Party Transactions</u>*" for further information regarding the Registered Stockholders.

Except as otherwise indicated in the footnotes to the table set forth below, all persons listed have sole voting power and investment power, except to the extent that authority is shared by spouses under applicable law, and record and beneficial ownership of their common stock. Unless otherwise indicated, the business address of each of the individuals and entities named below is c/o AMASS Brands Inc, 860 E Stowell Road Santa Maria, CA, 93454.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Beneficially Owned** | **Shares Beneficially Owned** | **Shares Beneficially Owned** | **Shares Beneficially Owned** | **Shares Beneficially Owned** | | |
| | **Common Stock** | **Common Stock** |  | **Preferred Stock†** | **Preferred Stock†** | | |
| <br>**Name of Beneficial Owner** | **Number** | **%** |  | **Number** | **%** | **Percentage of Total**<br>**Voting**<br>**Power†** | **Shares of Common Stock**<br>**Being**<br>**Registered** |
| **Executive Officers and Directors** |  |  |  |  |  |  |  |
| Mark T. Lynn<sup>(1)</sup> | 496711 | 14.2 | % | 0 | 0% | 14.2% | 496711 |
|  Geoffrey McFarlane <sup>(2)</sup> | 0 | 0 | % | 0 | 0% | 0% | 0 |
|  Erin K. Green <sup>(3)</sup> | 180555 | 5.1 | % | 0 | 0% | 5.1% | 0 |
|  Zachary Ament <sup>(4)</sup> | 46569 | 1.4 | % | 0 | 0% | 1.4% | 0 |
|  Christopher Bridges <sup>(5)</sup> | 0 | 0 | % | 0 | 0% | 0% | 0 |
|  Edoardo Piscopo Di Ciccolini <sup>(6)</sup> | 0 | 0 | % | 0 | 0% | 0% | 0 |
|  Jed MacArthur <sup>(7)</sup> | 0 | 0 | % | 0 | 0% | 0% | 0 |
| Andrew Kim <sup>(8)</sup> | 103700 | 3.1 | % | 0 | 0% | 3.1% | 0 |
| All executive officers and directors as a group (8 persons) | 827535 | 23 | .7% | 0 | 0% | 23.7% | 496711 |
| **5% Stockholders other than Executive Officers and Directors** |  |  |  |  |  |  |  |
| Desmond Lynn <sup>(9)</sup> | 1283334 | 38.1 | % | 0 | 0% | 38.1% | 1283334 |
| Alchemi Project Inc.<sup>(10)</sup> | 1958272 | 46.0 | % | 1988278 | 9.2% | 46.0% | 1958272 |
| Kayus LLC<sup>(11)</sup> | 683332 | 16.9 | % | 2049994 | 9.4% | 16.9% | 0 |
| Z1967 Limited<sup>(12)</sup> | 871239 | 20.6 | % | 2613713 | 12.0% | 20.6% | 0 |
| Kukus LLC<sup>(13)</sup> | 800002 | 19.2 | % | 2400000 | 11.1% | 19.2% | 0 |
| Davies Holdings Europe Kft.<sup>(14)</sup> | 526053 | 13.5 | % | 1578152 | 7.3% | 13.5% | 0 |

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\* Represents beneficial ownership of less than one percent.

**†** Concurrently with the initial public filing of our prospectus, all outstanding shares of Preferred Stock will automatically convert into shares of Common Stock without any further action by the holders.

(1) Common Stock holdings consist of (i) 352,778 shares of Common Stock held directly, (ii) 143,056 shares of Common Stock issuable upon conversion of vested options and (iii) 877 shares of Common Stock issuable upon the exercise of Common Stock warrants held by Mr. Lynn. Mark T. Lynn is currently a director and Chief Executive Office of the Company. The address for Mark T. Lynn is 3900 Alton Rd, Apt 805, Miami Beach, FL 33140. Mr. Lynn is also party to that certain Amended and Restated Voting Agreement dated June 24, 2024, which is expected to terminate upon the initial trade in the direct listing. See "*<u>Description of Capital Stock</u>*" for additional details.

(2) Geoffrey McFarlane is the former Interim Chief Financial Officer of the Company.

(3) Common Stock holdings consist of 180,555 shares of Common Stock issuable upon conversion of vested options held by Erin K. Green. Ms. Green currently serves as Chief Operating Officer and as a director of the Company.

(4) Common Stock holdings consist of 46,569 shares of Common Stock issuable upon conversion of vested options held by Zachary Ament. Mr. Ament currently serves as Chief Financial Officer of the Company.

(5) Christopher Bridges currently serves as a director of the Company.

(6) Edoardo Piscopo Di Ciccolini currently serves as a director of the Company.

(7) Jed MacArthur currently serves as a director of the Company.

(8) Common Stock holdings consist of 103,700 shares of Common Stock held directly. Andrew Kim is a Former Chief Executive Officer of the Company.

(9) Common Stock holdings consist of (i) 1,083,334 shares of Common Stock held directly and (ii) 200,000 shares of Common Stock held by E Technologies LLC. Desmond Lynn, as manager, may deemed to have voting and dispositive power over such shares held by E Technologies LLC. Mr. Lynn disclaims beneficial ownership over such securities except to the extent of his pecuniary interest therein. The address for Desmond Lynn is 16 R. Eduardo Paulo Ericeira, Lisbon Portugal. Desmond Lynn is a family member of Mark T. Lynn. Desmond Lynn is party to that certain Amended and Restated Voting Agreement dated June 24, 2024, which is expected to terminate upon the initial trade in the direct listing. See "*<u>Description of Capital Stock</u>*" for additional details.

(10) Common Stock holdings consist of (i) 1,067,887 shares of Common Stock held directly, (ii) 227,625 shares of Common Stock issuable upon the exercise of Common Stock warrants and (iii) 662,760 shares of Common Stock issuable upon the conversion of 1,988,278 shares of Preferred Stock held by the Alchemi Project Inc. The address for Alchemi Project Inc. is 119 Malibu Colony Rd, Malibu, CA 90265.

(11) Common Stock holdings consist of 683,332 shares of Common Stock issuable upon the conversion of 2,049,994 shares of Preferred Stock held by Kayus LLC. The address for Kayus LLC is 9060 W. Cheyenne Avenue, Las Vegas, NV 89129.

(12) Common Stock holdings consists of 871,239 shares of Common Stock issuable
upon the conversion of 2,613,713 shares of Preferred Stock held by Z1967 Limited. The address for Z1967 Limited is 25 Duxton Hill #02-01,
Singapore 089608. Z1967 Limited is party to that certain Amended and Restated Voting Agreement dated June 24, 2024, which is expected
to terminate upon the initial trade in the direct listing. See "*<u>Description of Capital Stock</u>*" for additional
details.

(13) Common Stock holdings consist of 800,002 shares of Common Stock issuable
upon the conversion of 2,400,000 shares of Preferred Stock held by Kukus LLC. The address for Kukus LLC is 9060 W. Cheyenne Avenue, Las
Vegas, NV 89129. Kukus LLC is party to that certain Amended and Restated Voting Agreement dated June 24, 2024, which is expected to terminate
upon the initial trade in the direct listing. See "*<u>Description of Capital Stock</u>*" for additional details.

(14) Common Stock holdings consist of 526,053 shares of Common Stock issuable
upon the conversion of 1,578,152 shares of Preferred Stock held by Davies Holdings Europe Kft. The address for Davies Holdings Europe
KFT is 30/A Bródy Sándor Street, 2nd floor, Apt 15, 1088 Budapest, Hungary. Davies Holdings Europe KFT is party to that
certain Amended and Restated Voting Agreement dated June 24, 2024, which is expected to terminate upon the initial trade in the direct
listing. See "*<u>Description of Capital Stock</u>*" for additional details.

**SELLING STOCKHOLDERS**

This prospectus covers the possible resale by the Registered Stockholders identified in the table below of up to [●] shares of our Common Stock (the "Resale Shares"). The transactions by which the Registered Stockholders acquired their securities from us were exempt under the registration provisions of the Securities Act. The Registered Stockholders may sell some, all, or none of the Resale Shares.

We have prepared the following table based on written representations and information furnished to us by or on behalf of the Registered Stockholders. Unless otherwise indicated in the footnotes to the table below, we believe that (i) none of the Registered Stockholders are broker-dealers or affiliates of broker-dealers, and (ii) no selling stockholder has direct or indirect agreements or understandings with any person to distribute their Resale Shares. To the extent any Registered Stockholders identified below are, or is affiliated with, a broker-dealer, it could be deemed, individually, but not severally, to be an "underwriter" within the meaning of the Securities Act. Information about the Registered Stockholders may change over time.

The following table presents information regarding the Registered Stockholders and the Resale Shares that they may offer and sell from time to time under this prospectus. The table is prepared based on information supplied to us by the Registered Stockholders, and reflects their respective holdings immediately prior to the date of this prospectus, unless otherwise noted in the footnotes to the table. Beneficial ownership is determined in accordance with the rules of the SEC, and thus represents voting or investment power with respect to our securities. Under such rules, beneficial ownership includes any shares over which the individual has sole or shared voting power or investment power as well as any shares that the individual has the right to acquire within 60 days after the date of this table, to our knowledge and subject to applicable community property rules, the persons and entities named in the table have sole voting and sole investment power with respect to all equity interests beneficially owned.

The second column lists the number of shares of Common Stock beneficially owned by each selling stockholder, based on its ownership of Resale Shares prior to this offering. The percentage of shares beneficially owned before and after this offering is based on shares of our Common Stock issued and outstanding as of the date of the prospectus.

The third column lists the shares of Common Stock being offered by this prospectus by the Registered Stockholders.

The fourth column assumes the sale of all of the shares offered by the Registered Stockholders pursuant to this prospectus.

The business address of each selling stockholder is c/o AMASS Brands Inc, 860 E Stowell Road Santa Maria, CA, 93454, unless otherwise indicated below.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Names of Registered Stockholders** | **Number of**<br> **Shares of**<br> **Common Stock**<br> **Beneficially**<br> **Owned Prior to**<br> **this Offering** | **Percentage of Common Stock Beneficially Owned Prior to this Offering** | **Shares of**<br> **Common**<br> **Stock Being**<br> **Registered** | **Shares of Common Stock Beneficially Owned After this Offering** | **Percentage of Common Stock Beneficially Owned After this Offering** |
| Desmond Lynn<sup>(1)</sup> | 1283334 | 38.1% | 1283334 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 |
| Alchemi Project Inc.<sup>(2)(3)</sup> | 1958272 | 46.0% | 1958272 | 0 | 0 |
| Mark T. Lynn<sup>(4)</sup> | 496711 | 14.2% | 496711 | 0 | 0 |

---

\* Less than 1%.

<sup>(1)</sup> Desmond Lynn. Mr. Desmond Lynn is a stockholder and a family member of our Chief Executive Officer, Mark T. Lynn. The address for Mr. Desmond Lynn is 16 R. Eduardo Paulo Ericeira, Lisbon, Portugal. In connection with our preferred stock financings, Mr. Desmond Lynn is a party to an Amended and Restated Investors' Rights Agreement, an Amended and Restated Voting Agreement and an Amended and Restated Right of First Refusal and Co-Sale Agreement. Among other things, these agreements provide registration rights, information and observer rights, rights of first refusal and co-sale rights. These rights are expected to terminate upon the direct listing, other than the registration rights under the Amended and Restated Investors' Rights Agreement, as more fully described under "*<u>Description of Capital Stock</u>*."

<sup>(2)</sup> The address for Alchemi Project Inc. is 119 Malibu Colony Rd, Malibu, CA 90265.

<sup>(3)</sup> Alchemi Project Inc. beneficially owns more than 5% of our Common Stock. The natural person exercising voting and/or investment control over the securities held by Alchemi Project Inc. is Michael Lewis. Within the past three years, Alchemi Project Inc. engaged in a material financing transaction with us: the Alchemi Note dated January 30, 2024 in the principal amount of $1,000,000, which bears simple interest at 6.25% per annum (based on a 365-day year) with interest prepaid at issuance, matures on the earlier of January 30, 2026 or an event of default, is prepayable at any time without penalty, and is governed by Delaware law. Alchemi received warrants convertible to 642,686 shares of common stock at the exercise price of $0.08 per share. Alchemi exercised the warrants in February 2025. See "*<u>Certain Relationships and Related Person Transactions</u>*" and "*<u>Management's Discussion and Analysis of Financial Results and Condition - Liquidity and Capital Resources</u>*."

<sup>(4)</sup> Mark T. Lynn. Mr. Lynn is our Chief Executive Officer, a director and our founder. The address for Mr. Lynn is 3900 Alton Rd, Apt 805, Miami Beach, FL 33140. From time to time Mr. Lynn has received advances from the Company. In January 2022, we entered into a loan agreement with Mr. Lynn under which amounts outstanding accrue interest at a rate of 1.6% per annum. As of December 31, 2024 and 2023, the net amounts due from Mr. Lynn were $1,268,341 and $942,291, respectively, and we recognized interest income on such advances of $18,095 and $10,665, respectively. These advances are payable on demand. Prior to the effectiveness of this registration statement, we intend to purchase a portion of Mr. Lynn's common stock at a price equal to the most recent financing price, and we expect that the full amount then owed by Mr. Lynn to the Company will be satisfied through a non-cash offset against the purchase price of such shares. If consummated as expected, following this transaction no amounts would remain outstanding from Mr. Lynn to the Company. Mr. Lynn serves as executor of Nitehous LLC but is not an investor in that entity. In January 2023, we borrowed $500,000 from Nitehous LLC to finance the purchase of substantially all of Winc's assets. The note accrued interest at a rate of 15% for the first month and 2% per month thereafter, initially matured in December 2023 and was extended to July 2025. As of December 31, 2024 and 2023, the balance on the note was $325,866 and $552,098, respectively, and we recognized interest expense of $123,768 and $177,098 for the years then ended. In 2024, when Geoffrey McFarlane was appointed interim Chief Financial Officer, we determined this loan to be a related-party transaction. We believe the terms of the note were comparable to those available from unaffiliated lenders at the time it was entered into. In connection with our preferred stock financings, we entered into an Amended and Restated Investors' Rights Agreement, an Amended and Restated Voting Agreement and an Amended and Restated Right of First Refusal and Co-Sale Agreement with certain holders of our capital stock, including Alchemi Project Inc., Mark T. Lynn and Desmond Lynn. Among other things, these agreements provide registration rights, information and observer rights, rights of first refusal and co-sale rights. These rights are expected to terminate upon the direct listing, other than the registration rights under the Amended and Restated Investors' Rights Agreement. See "*<u>Certain Relationships and Related Person Transactions</u>*" and "*<u>Description of Capital Stock</u>*."

**DESCRIPTION OF CAPITAL STOCK**

**General**

The following description summarizes certain important terms of our capital stock, as they are expected to be in effect in connection with the effectiveness of the registration statement of which this prospectus forms a part. This description summarizes the provisions of our Certificate of Incorporation and our bylaws. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description of the matters set forth in this section titled "*<u>Description of Capital Stock</u>*," you should refer to our Certificate of Incorporation and our bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part, and to the applicable provisions of Delaware law.

As provided in our Certificate of Incorporation, we are authorized to issue 291,192,462 shares of capital stock, which consist of: (i) 250,000,000 shares of Common Stock, par value $0.00001 per share, and (ii) 41,192,462 shares of Preferred Stock, par value $0.00001 per share.

As provided in our Certificate of Incorporation, each outstanding share of non-voting Common Stock was automatically converted into one share of Common Stock. We no longer have the authority to issue shares of Non-Voting Common Stock.

Pursuant to our Certificate of Incorporation, our board of directors has the authority, subject to the rights of the holders of our Preferred Stock and applicable law, to issue additional shares of our capital stock without further stockholder approval.

**Common Stock**

As of January 26, 2026, there are 3,364,975 shares of our common stock outstanding.

Our Certificate of Incorporation provides that**:**

&nbsp;&nbsp;&nbsp;&nbsp;· holders of Common Stock have voting rights for the election of our directors and all other matters requiring stockholder action, except with respect to amendments to our certificate of incorporation that alter or change the powers, preferences, rights or other terms of any outstanding preferred stock if the holders of such affected series of preferred stock are entitled to vote on such an amendment;

&nbsp;&nbsp;&nbsp;&nbsp;· holders of Common Stock are entitled to one vote per share on matters to be voted on by stockholders and are also entitled to receive such dividends, if any, as may be declared from time to time by our board of directors in its discretion out of funds legally available therefor;

&nbsp;&nbsp;&nbsp;&nbsp;· the payment of dividends, if any, on the Common Stock will be subject to the prior payment of dividends on any outstanding preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;· upon our liquidation or dissolution, the holders of Common Stock will be entitled to receive pro rata all assets remaining available for distribution to stockholders after payment of all liabilities and provision for the liquidation of any shares of preferred stock outstanding at that time; and

&nbsp;&nbsp;&nbsp;&nbsp;· our stockholders have no conversion, pre-emptive or other subscription rights and there are no sinking fund or redemption provisions applicable to the Common Stock.

**Voting Rights**

Under our Certificate of Incorporation, the number of authorized shares of Common Stock may be increased or decreased by the affirmative vote of the holders of a majority of the voting power of our outstanding capital stock, and a separate class vote of our Common Stock is not required for such a change. In other instances, as provided by Delaware law, holders of our Common Stock are entitled to vote as a separate class on certain amendments to our Certificate of Incorporation that would alter or change the powers, preferences, or special rights of the Common Stock in a manner that would adversely affect them.

**Preferred Stock**

Our Certificate of Incorporation authorizes the issuance of up to 41,192,462 shares of Preferred Stock, $0.00001 par value per share, divided into multiple series. Each series of Preferred Stock is granted specific rights, preferences, privileges, and restrictions, as detailed below. The rights of the holders of Common Stock are subject to and qualified by the rights of the holders of Preferred Stock.

**Authorized Series of Preferred Stock**

As of January 26, 2026, the following series of Preferred Stock are authorized, each with its own designation and number of shares and outstanding:

● **Series Seed Preferred Stock:** 1,362,530 shares authorized, 1,362,530 shares outstanding

● **Series Seed-1 Preferred Stock:** 2,412,297 shares authorized, 2,412,297 shares outstanding

● **Series Seed-2 Preferred Stock:** 4,323,248 shares authorized, 4,323,248 shares outstanding

● **Series Seed-3 Preferred Stock:** 1,579,994 shares authorized, 1,579,994 shares outstanding

● **Series Seed-4 Preferred Stock:** 2,346,635 shares authorized, 2,346,635 shares outstanding

● **Series Seed-5 Preferred Stock:** 504,316 shares authorized, 504,316 shares outstanding

● **Series A Preferred Stock:** 873,734 shares authorized, 873,734 shares outstanding

● **Series B-1 Preferred Stock:** 18,198,578 shares authorized, 5,237,632 shares outstanding

● **Series B-2 Preferred Stock:** 4,262,724 shares authorized, 104,226 shares outstanding

● **Series B-3 Preferred Stock:** 5,328,406 shares authorized, 2,962,327 shares outstanding

All outstanding shares of Preferred Stock will automatically convert into shares of Common Stock upon the occurrence of certain trigger events, including a qualified initial public offering, the initial public filing of a registration statement on Form S-1 in connection with a direct listing, or by a vote of the requisite holders of Preferred Stock (including the requisite holders of Series B Preferred Stock). Immediately after an automatic conversion is triggered by the direct listing, we will not have any shares of Preferred Stock outstanding; however, we may subsequently issue additional shares of Preferred Stock, subsequently increasing the number of Preferred Stock outstanding. As of January 26, 2026, there are 21,706,931 shares of Preferred Stock outstanding, which are convertible into an aggregate 7,235,686 shares of Common Stock, as of the such date.

We are evaluating authorization and issuance of a new series of preferred stock (Series C) in connection with a prepaid preferred purchase facility. Each share of Series C would carry a stated value reflecting an original issue discount and accrue quarterly dividends (payable in cash or in kind), rank senior to common stock, and be convertible into common stock at a fixed price based on our Nasdaq listing valuation, with an alternate conversion price available after a specified period or upon trigger events, subject in all cases to a floor based on Nasdaq pricing metrics. Final terms would be set forth in definitive agreements.

**Dividends**

Holders of each series of Preferred Stock are entitled to receive dividends prior to any dividends declared or paid on Common Stock, unless the dividend on Common Stock is payable in additional shares of Common Stock. The dividend amount for each series is calculated based on the "Original Issue Price" for that series, which is as follows:

● Series Seed: $3.7994 per share

● Series Seed-1: $0.2332 per share

● Series Seed-2: $0.3732 per share

● Series Seed-3: $1.1664 per share

● Series Seed-4: $3.0395 per share

● Series Seed-5: $0.5198 per share

● Series A: $4.15806 per share

● Series B-1: $1.4644 per share

● Series B-2: $2.8150 per share

● Series B-3: $2.2521 per share

**Liquidation Preferences**

In the event of any liquidation, dissolution, winding up, or a "Deemed Liquidation Event," holders of Series B Preferred Stock (Series B-1, B-2, and B-3) are entitled to receive, on a pari passu basis and before any payment to other series of Preferred Stock or the Common Stock, an amount per share equal to their respective Original Issue Price plus any declared but unpaid dividends.

After full payment to the holders of Series B Preferred Stock, the holders of the remaining series of Preferred Stock (Series Seed, Seed-1, Seed-2, Seed-3, Seed-4, Seed-5, and Series A) are entitled to receive, on a pari passu basis among themselves and before any payment to Common Stock, their respective Original Issue Price plus any declared but unpaid dividends.

Any remaining assets are distributed pro rata among Common Stockholders.

**Deemed Liquidation Events**

A Deemed Liquidation Event includes certain mergers, consolidations, asset sales, or similar transactions. The allocation of proceeds in such events follows the same order of priority as in a standard liquidation.

**Conversion Rights**

Each share of Preferred Stock is convertible at the option of the holder into Common Stock at a rate determined by dividing the Original Issue Price by the applicable Conversion Price (initially set at the Original Issue Price for each series). Conversion rights are subject to adjustment for stock splits, combinations, dividends, and certain dilutive issuances. All outstanding Preferred Stock will automatically convert into Common Stock upon the occurrence of certain trigger events, such as the initial public filing of this registration statement or a vote of the requisite holders. Immediately after an automatic conversion is triggered by the direct listing, we will not have any shares of Preferred Stock outstanding; however, we may subsequently issue additional shares of Preferred Stock, subsequently increasing the number of Preferred Stock outstanding.

**Voting Rights**

Holders of Preferred Stock vote together with holders of Common Stock on an as-converted basis, except as otherwise required by law or the Certificate of Incorporation. Certain actions require the separate consent of the holders of a majority of the outstanding shares of Preferred Stock (the "Requisite Holders"), voting as a single class, including:

● Liquidation, dissolution, or winding up of the corporation

● Amendments to the Certificate of Incorporation or Bylaws that adversely affect Preferred Stock

● Changes to the authorized number of shares of Preferred Stock

● Certain redemptions or dividends

● Changes to the size of the Board of Directors

Series B Preferred Stock (B-1, B-2, B-3) holders have additional protective provisions, including the right to approve the creation of any new class or series of equity security senior to Series B, or amendments that adversely affect Series B specifically.

**Redemption**

Preferred Stock is generally not redeemable at the option of the holder or the corporation, except in connection with certain Deemed Liquidation Events where holders may require redemption if the corporation does not dissolve within a specified period.

Any shares of Preferred Stock that are redeemed, converted, or otherwise acquired by the corporation are automatically cancelled and may not be reissued. The rights, powers, preferences, and other terms of each series of Preferred Stock may be waived by the affirmative written consent or vote of the requisite holders of that series.

**Anti-Takeover Effects of our Certificate of Incorporation, Bylaws and Delaware Law**

**Board Structure and Director Removals**

Our bylaws determine the number of directors on our board of directors (the "Board"), and each director is entitled to one vote on matters before the Board. The holders of Common Stock, exclusively and as a separate class, are entitled to elect one director. Any director elected by a class or series may be removed without cause by the affirmative vote of the holders of a majority of the shares of that class or series, and vacancies in such directorships are filled only by the holders of that class or series or by any remaining director(s) elected by that class or series.

**Advance Notice Requirements**

Our bylaws will establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures will specify that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken, and define what is considered timely. Our bylaws will also specify the requirements as to form and content of all stockholder notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting.

**Preferred Stock Authorization and Rights**

Our Certificate of Incorporation authorizes 41,192,462 shares of Preferred Stock, divided into multiple series (Series Seed, Seed-1, Seed-2, Seed-3, Seed-4, Seed-5, Series A, Series B-1, B-2, and B-3), each with specific rights, preferences, and privileges. The Board has broad authority to establish the rights and preferences of authorized and unissued shares of Preferred Stock, subject to the protective provisions in the Certificate of Incorporation. The existence of authorized but unissued Preferred Stock may enable the Board to discourage attempts to obtain control of the corporation by means such as mergers, tender offers, or proxy contests. The issuance of Preferred Stock could dilute the voting or other rights of existing stockholders and may delay, deter, or prevent a change in control.

**Exclusive Forum**

Any person or entity purchasing or otherwise acquiring or holding any interest in shares of our capital stock shall be deemed to have notice of and consented to the forum provision in our Certificate of Incorporation. Our choice of forum provision may impose additional litigation costs on stockholders in pursuing claims and may limit a stockholder's ability to bring a claim in a judicial forum that it believes to be favorable for disputes with us or any of our directors, officers or other employees, which may discourage lawsuits with respect to such claims.

**Renunciation of Corporate Opportunities**

Our Certificate of Incorporation provides that, to the fullest extent permitted by law, the Company renounces any interest or expectancy in, or in being offered an opportunity to participate in, certain business opportunities ("Excluded Opportunities"). Excluded Opportunities include any matter, transaction or interest that is presented to, or acquired, created or developed by, or otherwise comes into the possession of (i) any director of the Company who is not an employee of the Company or any of its subsidiaries or (ii) any holder of our Preferred Stock or any partner, member, director, stockholder, employee, affiliate or agent of any such holder, in each case other than individuals who are employees of the Company or its subsidiaries (collectively, "Covered Persons"), unless such opportunity is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such person's capacity as a director of the Company.

Under this provision, Covered Persons generally have no duty to communicate or offer Excluded Opportunities to the Company, and may pursue such opportunities for their own benefit or for the benefit of other entities, including entities that may compete with the Company.

The Certificate of Incorporation further provides that any repeal or modification of this renunciation of corporate opportunities will apply only prospectively and will not affect rights with respect to actions or omissions occurring prior to such amendment or repeal. In addition, notwithstanding anything to the contrary in the Certificate of Incorporation, the affirmative vote of the requisite holders of the Company's capital stock is required to amend or repeal, or adopt any provision inconsistent with, this renunciation of corporate opportunities.

**Limitation of Liability and Indemnification of Directors and Officers**

Our Certificate of Incorporation and bylaws provide that our directors and officers will be indemnified by us to the fullest extent authorized by Delaware law, and we are authorized to advance expenses to them as incurred in connection with legal proceedings.

These provisions may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. Furthermore, a stockholder's investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions and insurance are necessary to attract and retain talented and experienced directors and officers. In addition, in connection with the effectiveness of the registration statement of which this prospectus forms a part, we intend to enter into separate indemnification agreements with each of our directors and executive officers.

**Section 203 of the DGCL**

As a Delaware corporation, we will be subject to the provisions of Section 203 of the DGCL. This statute prevents certain Delaware corporations, under certain circumstances, from engaging in a "business combination" with an "interested stockholder." In general, Section 203 defines an "interested stockholder" as an entity or person who, together with the person's affiliates and associates, beneficially owns 15% or more of the outstanding voting stock of the corporation.

A "business combination" includes a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 of the DGCL do not apply if:

&nbsp;&nbsp;&nbsp;&nbsp;· the business combination takes place more than three years after the interested stockholder became an "interested stockholder;"

&nbsp;&nbsp;&nbsp;&nbsp;· our board of directors approves the transaction that made the stockholder an "interested stockholder" prior to the date of the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;· after the completion of the transaction that resulted in the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding, other than statutorily excluded shares of Common Stock; or

&nbsp;&nbsp;&nbsp;&nbsp;· on or subsequent to the date of the transaction, the business combination is approved by our board of directors and authorized at a meeting of our stockholders, and not by written consent, by an affirmative vote of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.

**Amended and Restated Investors' Rights Agreement** 

Our Amended and Restated Investors' Rights Agreement (the "IRA") provides for demand and piggyback registration rights, including Form S-1 demand rights after the earlier of five years from the IRA date or 180 days after the Company's IPO or Direct Listing, upon request by holders of at least 50% of the registrable securities then outstanding, for at least 40% of the registrable securities with an anticipated net offering size of at least $10 million, and Form S-3 demand rights (when eligible) upon request by holders of at least 30% of the registrable securities then outstanding for offerings with at least $5 million in anticipated net proceeds, in each case subject to customary deferral and cutback provisions and limits on the number and frequency of demands. The Company may defer a filing once in any 12-month period for up to 120 days if the Board determines filing would be materially detrimental to the Company and its stockholders, and underwriting cutbacks allocate pro rata among selling holders and prioritize registrable securities over other selling stockholder securities, subject to specified IPO limitations. The Company bears registration expenses (other than selling expenses) and will indemnify selling holders for Securities Act liabilities, subject to standard exceptions, and holders provide reciprocal indemnity limited to offering proceeds. These registration rights terminate upon the earliest of a Deemed Liquidation Event (as defined in the certificate), the time Rule 144 permits sale of all holder shares within three months without volume limits, or the third anniversary of the IPO or Direct Listing. The IRA also includes a market standoff for holders of up to 180 days applicable only to an underwritten IPO and not to a Direct Listing.

The registration rights could result in resales by existing investors that increase the supply of shares and affect the trading price or volatility upon and after listing, and underwriter cutbacks in a Company-initiated offering may limit stockholder participation. Because the IRA's market standoff applies only in an underwritten IPO and does not apply to a Direct Listing, absent other restrictions, investors may sell freely at listing, which could increase volatility; this aligns with the existing S-1 disclosure noting the absence of contractual lock-ups in a Direct Listing. In addition, information and observer rights could facilitate coordinated stockholder action and provide certain investors with access to non-public information prior to an IPO, though those rights terminate at IPO or upon Exchange Act reporting.

**Amended and Restated Right of First Refusal and Co-Sale Agreement**

Our Amended and Restated Right of First Refusal and Co-Sale Agreement (the "ROFR/Co-Sale Agreement") provides that the Company has a right of first refusal to purchase the offered shares on the terms of a bona fide offer; to the extent the Company declines or only partially exercises, investors have a secondary refusal right to purchase their pro rata share, with an oversubscription mechanism among exercising investors. Notices and election periods are specified (including a Company response within 15 days and an investor election within 10 days following the Company's secondary notice), and closing occurs within the later of the intended transfer date or 45 days after the original notice, with non-cash consideration payable in cash equivalents at fair market value as determined by the Board. To the extent Transfer Stock is not purchased under the right of first refusal, investors have tag-along rights to sell a pro rata portion on the same terms, with consideration in a change-of-control sale allocated consistent with the certificate's liquidation preference waterfall; if a proposed buyer will not purchase from participating investors, the selling key holder must purchase the investors' tendered shares on the same terms concurrently with its sale, and violations trigger a purchase remedy in favor of investors. Certain transfers by key holders, including transfers to affiliates or for estate planning purposes and sales in a registered public offering or deemed liquidation event, are exempt subject to joinder requirements, while transfers to competitors or certain customers or distributors may be prohibited if deemed competitively harmful by the Board. Certain key holders agree to an underwritten initial public offering lock-up of up to 180 days (and any additional period required to accommodate FINRA research quiet periods), applicable only if officers, directors and 1% stockholders are subject to similar restrictions; this lock-up does not apply to a direct listing, and the Company may impose stop-transfer instructions during the lock-up. The ROFR/Co-Sale Agreement terminates immediately prior to an underwritten initial public offering, upon the initial trade in a direct listing, or upon a deemed liquidation event.

The ROFR/Co-Sale Agreement provisions restrict certain key holders' liquidity and can delay or condition private transfers, while providing investors with downside protection and participation in private sales, which could limit strategic transfers by certain key holders. In addition, because the IPO lock-up in this agreement does not apply to a direct listing, and as disclosed elsewhere, the absence of lock-ups in a Direct Listing can increase volatility and supply uncertainty at listing.

**Amended and Restated Voting Agreement**

Our Amended and Restated Voting Agreement (the "Voting Agreement") provides that stockholders agree to vote their shares, and grant an irrevocable proxy, to elect designated directors consistent with the certificate of incorporation, including a common director elected by holders of Common Stock voting as a separate class, with removal and vacancy provisions tracking designation rights, and they further covenant to vote to increase authorized common shares as needed to permit conversion of preferred stock. If a Sale (as defined in the Voting Agreement) of the Company is approved by (i) holders of a majority of the shares of Common Stock then issuable upon conversion of the preferred (Selling Investors), (ii) the Board, and (iii) holders of a majority of outstanding Common Stock (other than as-converted), and the approval specifies application of the drag, each stockholder agrees to vote for and to participate in the Sale of the Company on the same terms and conditions, subject to customary stockholder-level limitations, including several and limited representations on authority and title, no non-compete for non-employees, several indemnity caps at proceeds received, the same form and amount of consideration within each class or series, and cash in lieu where securities consideration would require registration or non-customary information. To ensure compliance with these voting covenants on board composition, share increases and Sale of the Company approvals, stockholders grant the Company's Chief Executive Officer an irrevocable proxy and power of attorney (coupled with an interest) to vote shares or execute documentation if the stockholder fails to do so or attempts to vote inconsistently. The Voting Agreement terminates upon the earlier to occur of the consummation of the Company's first underwritten public offering of its Common Stock, the initial trade in a direct listing or the consummation of a Sale of the Company.

The Voting Agreement concentrates governance outcomes by contract, including the ability of specified majorities to approve a Sale of the Company and compel participation by all stockholders, subject to investor-friendly protections, which may limit minority stockholders' ability to oppose or condition a sale once the drag triggers are met. In addition, the irrevocable proxy and power of attorney ensure enforceability of voting covenants and may limit a stockholder's discretion in director elections, share authorizations and Sale of the Company approvals.

**Listing**

We have applied to list our Common Stock on the Nasdaq Capital Market under the symbol "AMSS".

**Transfer Agent and Registrar**

The transfer agent and registrar for our Common Stock is Odyssey Transfer and Trust Company. The transfer agent and registrar's address is 2155 Woodlane Drive, Suite 100, Woodbury, MN 55125. The transfer agent and registrar can be contacted by phone at: 1-855-584-2880.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to the listing of our Common Stock on Nasdaq, there has been no public market for our Common Stock. Sales of a substantial number of shares of our Common Stock in the public market following our listing on Nasdaq, or the perception that such sales could occur, could adversely affect the public price of our Common Stock and may make it more difficult for you to sell your shares at a time and price that you deem appropriate. We will have no input if and when any Registered Stockholders may, or may not, elect to sell their shares or the prices at which any such sales may occur.

After the Direct Listing, a total of [●] shares of our Common Stock will be outstanding, including [●] shares of our Common Stock registered for resale under the registration statement of which this prospectus forms a part. Any shares not registered hereunder will be "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if they are registered under the Securities Act, including, but not limited to, the shares registered hereunder, or if they qualify for an exemption from registration, including under Rules 144 or 701 under the Securities Act, which are summarized below. Restricted securities also may be sold outside of the United States to non-U.S. persons in accordance with Rule 904 of Regulation S. With the exception of shares owned by our directors, officers and certain stockholders, substantially all of our Common Stock may be sold after our initial listing on Nasdaq, either by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders in accordance with Rule 144 of the Securities Act.

If executed, the Streeterville arrangement would increase the number of shares eligible for future sale through conversions and warrant exercises and may increase volatility in our stock price after listing, particularly given that our direct listing is not subject to IPO-style contractual lock-ups.

**Rule 144**

In general, under Rule 144 as currently in effect, once we have been subject to and in compliance with public company reporting requirements of Section 13 or Section 15(d) of the Exchange Act for at least 90 days, an eligible shareholder is entitled to sell such shares without complying with the manner of sale, volume limitation, or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. To be an eligible shareholder under Rule 144, such shareholder must not be deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares of Common Stock proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates. If such a person has beneficially owned the shares of Common Stock proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then such person is entitled to sell such shares without complying with any of the requirements of Rule 144.

In general, under Rule 144, as currently in effect, our affiliates or persons selling Common Stock on behalf of our affiliates are entitled to sell shares 90 days after we become a reporting company. Within any three-month period, such shareholders may sell a number of shares that does not exceed the greater of:

· 1% of the number of shares of Common Stock then outstanding, which will equal approximately shares immediately
after our registration; or

· the average weekly trading volume of our Common Stock during the four calendar weeks preceding the filing
of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares of Common Stock on behalf of our affiliates also are subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701**

Rule 701 generally allows a shareholder who was issued shares under a written compensatory plan or contract and who is not deemed to have been our affiliate during the immediately preceding 90 days, to sell these shares in reliance on Rule 144, but without being required to comply with the public information, holding period, volume limitation, or notice provisions of Rule 144. Rule 701 also permits our affiliates to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required by that rule to wait until 90 days after we become a reporting company before selling those shares under Rule 701.

**Registration Statements on Form S-8**

We intend to file one or more registration statements on Form S-8 under the Securities Act to register shares of our Common Stock subject to outstanding stock options or reserved for issuance under our 2025 Omnibus Incentive Plan, as soon as permitted under the Securities Act. Such registration statements will automatically become effective upon filing with the SEC. However, shares registered on Form S-8 may be subject to the volume limitations and the manner of sale, notice, and public information requirements of Rule 144.

**Lock-up Agreements**

None of our Registered Stockholders or other existing stockholders have entered into contractual lock-up agreements or other contractual restrictions on transfer. In a firm-commitment underwritten initial public offering, it is customary for an issuer's officers, directors, and most of its other stockholders to enter into a 180-day contractual lock-up arrangement with the underwriters to help promote orderly trading immediately after such initial public offering. Consequently, any of our stockholders, including our directors and officers who own our Common Stock and other significant stockholders, may sell any or all of their Common Stock at any time (subject to any restrictions under applicable law), including immediately upon listing. If such sales were to occur in a significant volume in a short period of time following our listing, it may result in an oversupply of our Common Stock in the market, which could adversely impact the public price of our Common Stock.

**SALE PRICE HISTORY OF OUR CAPITAL STOCK**

We have applied to list our Common Stock on Nasdaq. Prior to the listing of our Common Stock on Nasdaq, there have been no public market for our Common Stock. Our Common Stock has a limited history of trading in private transactions. In May 2025, we completed a Regulation CF crowdfunding campaign at a purchase price of $2.85 per share. Most recently, in December 2025, the Company closed a Regulation Crowdfunding offering at a purchase price of $2.99 per share. The recent sales prices in these private transactions may have little or no bearing on the trading price of our Common Stock at the opening of trading on Nasdaq or at any subsequent time. The trading price of our Common Stock could be significantly different from the prices at which shares were recently sold in private transactions.

While Maxim Group LLC, in its capacity as our financial advisor, is expected to consider this information in connection with setting the opening public price of our Common Stock, this information may have little or no relation to broader market demand for our Common Stock and thus the opening public price and subsequent public price of our Common Stock on Nasdaq. As a result, you should not place undue reliance on these historical private sale prices as it may differ materially from the opening public price and subsequent public price of our Common Stock on Nasdaq.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES**

**TO NON-U.S. HOLDERS OF OUR COMMON STOCK**

The following discussion is a summary of certain material U.S. federal income tax consequences to non-U.S. holders (as defined below) of the acquisition, ownership, and disposition of our Common Stock. This discussion is not a complete analysis of all potential U.S. federal income tax consequences relating thereto, does not address the potential application of the Medicare contribution tax on net investment income or the alternative minimum tax, and does not address any estate or gift tax consequences or any tax consequences arising under any state, local, or foreign tax laws, or any other U.S. federal tax laws. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), Treasury regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the Internal Revenue Service (the "IRS"), all as in effect as of the date of this registration statement. These authorities are subject to differing interpretations and may change, possibly retroactively, resulting in U.S. federal income tax consequences different from those discussed below. We have not requested a ruling from the IRS with respect to the statements made and the conclusions reached in the following summary, and there can be no assurance that the IRS or a court will agree with such statements and conclusions.

This discussion is limited to non-U.S. holders who purchase our Common Stock pursuant to this registration statement and who hold our Common Stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all of the U.S. federal income tax consequences that may be relevant to a particular holder in light of such holder's particular circumstances. This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, financial institutions or financial services entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• governments or agencies or instrumentalities thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulated investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• real estate investment trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expatriates or former long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• except as specifically provided below, persons that actually or constructively own five percent or more
(by vote or value) of our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that acquired our Common Stock pursuant to an exercise of employee share options, in connection
with employee share incentive plans or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dealers or traders subject to a mark-to-market method of accounting with respect to our Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding our Common Stock as part of a "straddle," constructive sale, hedge, wash sale,
conversion or other integrated or similar transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons subject to special tax accounting rules as a result of any item of gross income with respect to
our Common Stock being taken into account in an applicable financial statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-U.S. holders (as defined below) whose functional currency is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships (or entities or arrangements classified as partnerships or other pass-through entities for
U.S. federal income tax purposes) and any beneficial owners of such partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• controlled foreign corporations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• passive foreign investment companies.

If an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds our Common Stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. Partnerships holding our Common Stock and the partners in such partnerships are urged to consult their own tax advisors about the particular U.S. federal income tax consequences to them of holding and disposing of our Common Stock.

**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES TO THEM OF ACQUIRING, OWNING, AND DISPOSING OF OUR COMMON STOCK, AS WELL AS ANY TAX CONSEQUENCES ARISING UNDER ANY STATE, LOCAL, OR FOREIGN TAX LAWS AND ANY OTHER U.S. FEDERAL TAX LAWS. IN ADDITION, SIGNIFICANT CHANGES IN U.S. FEDERAL TAX LAWS WERE RECENTLY ENACTED. PROSPECTIVE INVESTORS SHOULD ALSO CONSULT WITH THEIR TAX ADVISORS WITH RESPECT TO SUCH CHANGES IN U.S. TAX LAW AS WELL AS POTENTIAL CONFORMING CHANGES IN STATE TAX LAWS.**

**Definition of Non-U.S. Holder**

For purposes of this discussion, a non-U.S. holder is any beneficial owner of our Common Stock that is not a "U.S. person" or a partnership (including any entity or arrangement treated as a partnership) for U.S. federal income tax purposes. A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

· an individual who is a citizen or resident of the United States;

· a corporation (or any entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of
the United States, any state thereof or the District of Columbia;

· an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

· a trust (i) whose administration is subject to the primary supervision of a U.S. court and which has one or more U.S. persons who
have the authority to control all substantial decisions of the trust, or (ii) that has a valid election in effect under applicable Treasury
regulations to be treated as a U.S. person.

**Distributions on Our Common Stock**

As described under the section titled "*<u>Dividend Policy</u>*," we have never declared or paid dividends on our Common Stock and do not anticipate paying dividends in the foreseeable future. However, if we make cash or other property distributions on our Common Stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts that exceed such current and accumulated earnings and profits and, therefore, are not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and will first be applied against and reduce a holder's tax basis in our Common Stock, but not below zero. Any excess amount distributed will be treated as gain realized on the sale or other disposition of our Common Stock and will be treated as described under the section titled "<u>—*Gain On Disposition of Our Common Stock*</u>" below.

Subject to the discussion below regarding effectively connected income, backup withholding and FATCA (as defined under the section titled "<u>—*Withholding on Foreign Entities*</u>" below), dividends paid to a non-U.S. holder of our Common Stock generally will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends or such lower rate specified by an applicable income tax treaty. To receive the benefit of a reduced treaty rate, a non-U.S. holder must furnish us or our withholding agent a valid IRS Form W-8BEN or IRS Form W-8BEN-E (or applicable successor form) certifying such holder's qualification for the reduced rate. This certification must be provided to us or our withholding agent before the payment of dividends and must be updated periodically. If the non-U.S. holder holds the stock through a financial institution or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation to the agent, which then will be required to provide certification to us or our withholding agent, either directly or through other intermediaries.

If a non-U.S. holder holds our Common Stock in connection with the conduct of a trade or business in the United States, and dividends paid on our Common Stock are effectively connected with such holder's U.S. trade or business (and are attributable to such holder's permanent establishment or fixed base in the United States if required by an applicable tax treaty), the non-U.S. holder will be exempt from U.S. federal withholding tax. To claim the exemption, the non-U.S. holder must generally furnish a valid IRS Form W-8ECI (or applicable successor form) to the applicable withholding agent.

However, any such effectively connected dividends paid on our Common Stock generally will be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates in the same manner as if such holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items.

Non-U.S. holders that do not provide the required certification on a timely basis, but that qualify for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

Non-U.S. holders should consult their own tax advisors regarding any applicable income tax treaties that may provide for different rules.

**Gain on Disposition of Our Common Stock**

Subject to the discussion below regarding backup withholding and FATCA, a non-U.S. holder generally will not be subject to U.S. federal income tax on any gain realized on the sale or other disposition of our Common Stock, unless:

· the gain is effectively connected with the non-U.S. holder's conduct of a trade or business in the United States and, if required
by an applicable income tax treaty, is attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the
United States;

· the non-U.S. holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of
the disposition, and certain other requirements are met; or

· our Common Stock constitutes a "United States real property interest" by reason of our status as a United States real
property holding corporation ("USRPHC"), for U.S. federal income tax purposes at any time within the shorter of the five-year
period preceding the disposition or the non-U.S. holder's holding period for our Common Stock, and our Common Stock is not regularly
traded on an established securities market during the calendar year in which the sale or other disposition occurs.

Determining whether we are a USRPHC depends on the fair market value of our U.S. real property interests relative to the fair market value of our other trade or business assets and our foreign real property interests. We believe that we are not currently and do not anticipate becoming a USRPHC for U.S. federal income tax purposes, although there can be no assurance we will not in the future become a USRPHC.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates in the same manner as if such holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items. Gain described in the second bullet point above will be subject to U.S. federal income tax at a flat 30% rate (or such lower rate specified by an applicable income tax treaty), but may be offset by certain U.S.-source capital losses (even though the individual is not considered a resident of the United States), provided that the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses. Gain described in the third bullet point above will generally be subject to U.S. federal income tax in the same manner as gain that is effectively connected with the conduct of a U.S. trade or business (subject to any provisions under an applicable income tax treaty), except that the branch profits tax generally will not apply. Non-U.S. holders should consult their tax advisors regarding any applicable income tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding**

Annual reports are required to be filed with the IRS and provided to each non-U.S. holder indicating the amount of dividends on our Common Stock paid to such holder and the amount of any tax withheld with respect to those dividends. These information reporting requirements apply even if no withholding was required because the dividends were effectively connected with the holder's conduct of a U.S. trade or business, or withholding was reduced or eliminated by an applicable income tax treaty. This information also may be made available under a specific treaty or agreement with the tax authorities in the country in which the non-U.S. holder resides or is established. Backup withholding, currently at a 24% rate, generally will not apply to payments to a non-U.S. holder of dividends on or the gross proceeds of a disposition of our Common Stock provided the non-U.S. holder furnishes the required certification for its non-U.S. status, such as by providing a valid IRS Form W-8BEN, IRS Form W-8BEN-E, or IRS Form W-8ECI (or applicable successor form), or certain other requirements are met. Backup withholding may apply if the payor has actual knowledge, or reason to know, that the holder is a U.S. person who is not an exempt recipient.

Backup withholding is not an additional tax. If any amount is withheld under the backup withholding rules, the non-U.S. holder should consult with a U.S. tax advisor regarding the possibility of and procedure for obtaining a refund or a credit against the non-U.S. holder's U.S. federal income tax liability, if any.

**Withholding on Foreign Entities**

Sections 1471 through 1474 of the Code and the Treasury regulations promulgated thereunder (collectively, "FATCA") impose a U.S. federal withholding tax of 30% on certain payments made to a "foreign financial institution" (as specially defined under these rules) unless such institution enters into an agreement with the U.S. government to withhold on certain payments and to collect and provide to the U.S. tax authorities substantial information regarding certain U.S. account holders of such institution (which includes certain equity and debt holders of such institution, as well as certain account holders that are foreign entities with U.S. owners) or an exemption applies. FATCA also generally will impose a U.S. federal withholding tax of 30% on certain payments made to a non-financial foreign entity unless such entity either certifies that it does not have any "substantial United States owners" as defined in the Code or provides the withholding agent a certification identifying certain direct and indirect U.S. owners of the entity or an exemption applies. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Under certain circumstances, a non-U.S. holder might be eligible for refunds or credits of such taxes. The withholding provisions described above currently apply to payments of dividends on our Common Stock. Prior to the issuance of proposed Treasury regulations described below, withholding taxes under FATCA would have also applied to gross proceeds from sales or other disposition of our Common Stock. However, the U.S. Treasury Department's proposed regulations that, if finalized in their present form, would eliminate the federal withholding tax of 30% applicable to the gross proceeds of a sale or other disposition of our Common Stock. In its preamble to such proposed regulations, the U.S. Treasury Department stated that taxpayers (including withholding agents) may generally rely on the proposed regulations until they are revoked or final regulations are issued.

Prospective investors should consult with their own tax advisors regarding the possible implications of FATCA on an investment in our Common Stock.

**PLAN OF DISTRIBUTION**

The Registered Stockholders, and their pledgees, donees, transferees, assignees, or other successors in interest may sell their shares of Common Stock covered hereby pursuant to brokerage transactions on Nasdaq, or other public exchanges or registered alternative trading venues, at prevailing market prices at any time after the Common Stock are listed for trading. We are not party to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of shares of Common Stock by the Registered Stockholders. However, we have engaged Maxim Group LLC, as our financial advisor to assist us with respect to certain matters relating to our listing, as further described below. As such, we do not anticipate receiving notice as to if and when any Registered Stockholder may, or may not, elect to sell their shares of Common Stock or the prices at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of their shares of Common Stock covered by this prospectus.

We will not receive any proceeds from the sale of shares of Common Stock by the Registered Stockholders. We will recognize costs related to this direct listing and our transition to a publicly-traded company consisting of professional fees and other expenses. We will expense these amounts in the period incurred and not deduct these costs from net proceeds to the issuer as they would be in an initial public offering.

Prior to the listing of our Common Stock on Nasdaq, there has been a limited public market for our Common Stock. In May 2025, we completed a Regulation CF crowdfunding campaign at a purchase price of $2.85 per share. Most recently, in December 2025, the Company closed a Regulation Crowdfunding offering at a purchase price of $2.99 per share. The recent sales prices in these private transactions may have little or no bearing on the trading price of our Common Stock at the opening of trading on Nasdaq or at any subsequent time. The trading price of our Common Stock could be significantly different from the prices at which shares were recently sold in private transactions.

We have engaged Maxim Group LLC (the "Advisor"), as our financial advisor to advise and assist us with respect to certain matters relating to our direct listing (the "Direct Listing"). The services expected to be performed by the Advisor will include providing advice and assistance with respect to defining objectives, analyzing, structuring and planning the Direct Listing, developing and assisting with our investor communication strategy in relation to the Direct Listing, and being available to consult with Nasdaq, including on the day that our shares of Common Stock are initially listed on the Nasdaq Capital Market.

In addition, the Advisor will determine when our shares of Common Stock are ready to trade and to approve proceeding with the opening of trading at the Current Reference Price (as defined below). However, the Advisor has not been engaged to participate in investor meetings or to otherwise facilitate or coordinate price discovery activities or sales of our Common Stock in consultation with us, except as described herein.

On the day that our shares of Common Stock are initially listed on Nasdaq, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders and will begin to continuously generate the indicative Current Reference Price on the basis of such accepted orders. The Current Reference Price is calculated each second and, during a 10-minute "Display Only" period, is disseminated, along with other indicative imbalance information, to market participants by Nasdaq on its NOII and BookViewer tools. Following the "Display Only" period, a "Pre-Launch" period begins, during which the Advisor, in its capacity as our financial advisor to perform the functions under Nasdaq Rule 4120(c)(8), must notify Nasdaq that our shares are "ready to trade." Once the Advisor has notified Nasdaq that our shares of Common Stock are ready to trade, Nasdaq will calculate the Current Reference Price for our shares of Common Stock, in accordance with Nasdaq rules. If the Advisor then approves proceeding at the Current Reference Price, Nasdaq will conduct a price validation test in accordance with Nasdaq Rule 4120(c)(8). As part of conducting such price validation test, Nasdaq may consult with the Advisor, if the price bands need to be modified, to select the new price bands for purposes of applying such test iteratively until the validation tests yield a price within such bands. Upon completion of such price validation checks, the applicable orders that have been entered will then be executed at such price and regular trading of our shares of Common Stock on Nasdaq will commence.

Under Nasdaq rules, the "Current Reference Price" means: (i) the single price at which the maximum number of orders to buy or sell can be matched; (ii) if there is more than one price at which the maximum number of orders to buy or sell can be matched, then it is the price that minimizes the imbalance between orders to buy or sell (*i.e*. minimizes the number of shares that would remain unmatched at such price); (iii) if more than one price exists under (ii), then it is the entered price (*i.e*. the specified price entered in an order by a customer to buy or sell) at which our shares of Common Stock will remain unmatched (*i.e*. will not be bought or sold); and (iv) if more than one price exists under (iii), a price determined by Nasdaq in consultation with the Advisor in its capacity as our financial advisor. In the event that more than one price exists under (iii), the Advisor will exercise any consultation rights only to the extent that it can do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M, or applicable relief granted thereunder.

In determining the Current Reference Price, Nasdaq's cross algorithms will match orders that have been entered into and accepted by Nasdaq's system. This occurs with respect to a potential Current Reference Price when orders to buy shares of Common Stock at an entered bid price that is greater than or equal to such potential Current Reference Price are matched with orders to sell a like number of shares of Common Stock at an entered asking price that is less than or equal to such potential Current Reference Price. To illustrate, as a hypothetical example of the calculation of the Current Reference Price, if Nasdaq's cross algorithms matched all accepted orders as described above, and two limit orders remained—a limit order to buy 500 shares of Common Stock at an entered bid price of $10.01 per share and a limit order to sell 200 shares of Common Stock at an entered asking price of $10.00 per share—the Current Reference Price would be selected as follows:

· Under clause (i), if the Current Reference Price is $10.00, then the maximum number of additional shares that can be matched is 200.
If the Current Reference Price is $10.01, then the maximum number of additional shares that can be matched is also 200, which means that
the same maximum number of additional shares would be matched at the price of either $10.00 or $10.01.

· Because more than one price under clause (i) exists, under clause (ii), the Current Reference Price would be the price that minimizes
the imbalance between orders to buy or sell (i.e., minimizes the number of shares that would remain unmatched at such price). Selecting
either $10.00 or $10.01 as the Current Reference Price would create the same imbalance in the limit orders that cannot be matched, because
at either price 300 shares would not be matched.

· Because more than one price under clause (ii) exists, under clause (iii), the Current Reference Price would be the entered price at
which orders for shares of Common Stock at such entered price will remain unmatched. In such case, choosing $10.01 would cause 300 shares
of the 500-share limit order with the entered price of $10.01 to remain unmatched, compared to choosing $10.00, where all 200 shares of
the limit order with the entered price of $10.00 would be matched, and no shares at such entered price remain unmatched. Thus, Nasdaq
would select $10.01 as the Current Reference Price, because orders for shares at such entered price will remain unmatched. The above example
(including the prices) is provided solely by way of illustration.

The Advisor, as the designated financial advisor under Nasdaq Rule 4120(c)(8), will determine when our shares of Common Stock are ready to trade and approve proceeding at the Current Reference Price primarily based on considerations of volume, timing and price. In particular, the Advisor will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to open trading at the Current Reference Price. If the Advisor does not approve proceeding at the Current Reference Price (for example, due to the absence of adequate pre-opening buy and sell interest), the Advisor will request that Nasdaq delay the opening until such a time that sufficient price discovery has been made to ensure that a reasonable amount of volume crosses on the opening trade.

Further, in the highly unlikely event that Nasdaq consults with the Advisor as described in clause (iv) of the definition of Current Reference Price, the Advisor would request that Nasdaq delay the opening to ensure a single opening price within clauses (i), (ii) or (iii) of the definition of the Current Reference Price. Under Nasdaq rules, in the event of such delay, prior to terminating such delay, there will be a 10-minute "Display Only" period during which market participants may enter quotes and orders in shares of our Common Stock in Nasdaq systems. In addition, beginning at 4:00 a.m., market participants may enter orders in shares of our Common Stock on Nasdaq. Such orders will be accepted and entered into the system. After the conclusion of the 10-minute "Display Only" period, our Common Stock will enter a "Pre-Launch" period of indeterminate duration. The "Pre-Launch" period will end and shares of our Common Stock will be released for trading by Nasdaq when certain conditions are met, including Nasdaq's receipt of notice from the Advisor that our shares of Common Stock are ready to trade, after which the Nasdaq system will calculate the Current Reference Price at that time and display it to the Advisor. If the Advisor then approves proceeding, the Nasdaq system will conduct certain validation checks. The Advisor, with concurrence of Nasdaq, may determine at any point during the delay process up through the conclusion of the "Pre-Launch" period to postpone and reschedule the Direct Listing. Neither we nor the Registered Stockholders will be involved in Nasdaq's price-setting mechanism nor will we or they coordinate or be in communication with the Advisor including with respect to any decision by the Advisor to delay or proceed with trading.

Similar to a Nasdaq-listed firm-commitment underwritten initial public offering, in connection with the listing of our shares of Common Stock, buyers and sellers who have subscribed will have access to Nasdaq's Order Imbalance Indicator (the "Net Order Imbalance Indicator"), a widely available, subscription-based data feed, prior to submitting buy or sell orders. Nasdaq's electronic trading platform simulates auctions every second to calculate a Current Reference Price, the number of shares of Common Stock that can be paired off the Current Reference Price, the number of shares of Common Stock that would remain unexecuted at the Current Reference Price and whether a buy-side or sell-side imbalance exists, or whether there is no imbalance, to disseminate that information continuously to buyers and sellers via the Net Order Imbalance Indicator data feed.

However, because this is not an initial public offering being conducted on a firm-commitment underwritten basis, there will be no traditional book building process (that is, an organized process pursuant to which buy and sell interest is coordinated in advance to some prescribed level – the "book"). Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of Common Stock to the public, as there would be in a firm-commitment underwritten initial public offering. The lack of an initial public offering price could impact the range of buy and sell orders collected by Nasdaq from various broker-dealers. Consequently, the public price of our shares of Common Stock may be more volatile than in an initial public offering underwritten on a firm-commitment basis and could, upon being listed on Nasdaq, decline significantly and rapidly.

In addition, to list on Nasdaq, we are also required to have at least three registered and active market makers. We expect that the Advisor will act as a registered and active market maker and will engage other market makers.

In addition to sales made pursuant to this prospectus, the shares of Common Stock covered by this prospectus may be sold by the Registered Stockholders in private transactions exempt from the registration requirements of the Securities Act. Under the securities laws of some states, shares of Common Stock may be sold in such states only through registered or licensed brokers or dealers.

A Registered Stockholder may from time to time transfer, distribute (including distributions in kind by Registered Stockholders that are investment funds), pledge, assign, or grant a security interest in some or all the shares of Common Stock owned by it and, if it defaults in the performance of its secured obligations, the transferees, distributees, pledgees, assignees, or secured parties may offer and sell the shares of Common Stock from time to time under this prospectus, or under an amendment to this prospectus under applicable provisions of the Securities Act amending the list of the Registered Stockholders to include the transferee, distributee, pledgee, assignee, or other successors in interest as Registered Stockholders under this prospectus. The Registered Stockholders also may transfer the shares in other circumstances, in which case the transferees, distributes, pledgees, or other successors in interest will be the registered beneficial owners for purposes of this prospectus.

A Registered Stockholder that is an entity may elect to make an in-kind distribution of Common Stock to its members, partners, or stockholders pursuant to the registration statement of which this prospectus forms a part by delivering a prospectus.

If any of the Registered Stockholders utilize a broker-dealer in the sale of the shares of Common Stock being offered by this prospectus, such broker-dealer may receive commissions in the form of discounts, concessions or commissions from such Registered Stockholder or commissions from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal.

In connection with its engagement as our financial advisor, the Advisor received 394,172 shares of our Common Stock, which is equal to 1.0% of our outstanding Common Stock, on a fully diluted basis, as of the date of our engagement letter with the Advisor. In addition, the Advisor will be entitled to a cash fee of $250,000 (payable upon the closing of the Company's first financing either concurrent to or post direct listing) and that number of shares of Common Stock equal to 1.0% of the issued and outstanding Common Stock upon the successful consummation of the Direct Listing. The Advisor will also be entitled to an expense reimbursement for all reasonable, documented expenses incurred by the Advisor in connection with its engagement, provided that such expenses, other than legal fees, may not exceed $50,000 without our prior authorization.

In addition, pursuant to our agreement with the Advisor, for a period of 12 months from the date of the consummation of the Direct Listing, if we propose to (i) effect a public offering of our securities on a major U.S. exchange, (ii) effect a private placement of our securities, (iii) enter into certain financing transactions with third parties introduced to us by the Advisor or (iv) propose to enter into certain other transactions with third parties introduced to us by the Advisor, including, without limitation, a merger, acquisition or sale of stock or assets, or other similar transaction, we are obligated to offer to retain the Advisor as our lead underwriter and book running manager, our lead placement or sales agent, or our lead, as applicable, in connection with such financing or transaction, upon such reasonable and customary terms as the Advisor and we may mutually agree, with such terms to be set forth in a separate engagement letter or other agreement between the Advisor and us.

The Advisor will not be engaged to otherwise facilitate or coordinate price discovery activities or the solicitation or sales of shares of our Common Stock in consultation with us, and will not be permitted to, and will not be instructed by us to, plan or actively participate in any investor education activities, except as described herein.

Prior to the financial advisory services provided by the Advisor to us in connection with the listing of our securities, neither the Advisor nor any affiliates of the Advisor have provided services of any kind to us.

If we enter into definitive agreements prior to effectiveness requiring registration of shares issuable under the Streeterville commitment, we will identify Streeterville as a selling stockholder and describe the resale mechanics in 'Plan of Distribution.' Otherwise, we currently expect to file a separate resale registration statement after listing as contemplated by the term sheet.

**LEGAL MATTERS**

Certain legal matters with respect to the validity of the securities being offered by this prospectus will be passed upon by Winston & Strawn LLP, Houston, Texas.

**EXPERTS**

The financial statements for the years ended December 31, 2024 and 2023 included in this prospectus have been audited by dbb*mckennon*, an independent registered public accounting firm, as set forth in their report appearing herein, and included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act, with respect to the shares of Common Stock covered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits filed therewith. For further information about us and our Common Stock, we refer you to the registration statement and the exhibits filed therewith. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and in each instance, we refer you to the copy of such contract or other document filed as an exhibit to the registration statement. The SEC maintains a website that contains reports, proxy, and information statements, and other information regarding registrants that file electronically with the SEC. The address of the website is www.sec.gov.

Immediately upon the effectiveness of the registration statement of which this prospectus forms a part, we will become subject to the information and reporting requirements of the Exchange Act and, in accordance with this law, will file periodic reports, proxy statements, and other information with the SEC. These periodic reports, proxy statements, and other information will be available for inspection and copying at the website of the SEC referred to above. We also maintain websites at <u>www.amassbrands.com</u> and <u>www.amass.com</u>. Upon the effectiveness of the registration statement of which this prospectus forms a part, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The inclusion of our website address in this prospectus is an inactive textual reference only. The information contained in or accessible through our website is not part of this prospectus or the registration statement of which this prospectus forms a part, and investors should not rely on such information in making a decision to purchase shares of our Common Stock.

**INDEX TO FINANCIAL STATEMENTS**

**AMASS Brands Inc**

December 31, 2024 and 2023

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| [**Report of Independent Registered Public Accounting Firm (PCAOB ID: #3501)**](#b_001) | [F-3](#b_001) |
| **Consolidated Financial Statements as of and for the years ended December 31, 2024 and 2023** |  |
| &nbsp;&nbsp;&nbsp;[Consolidated Balance Sheets](#b_002) | [F-5](#b_002) |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Operations](#b_003) | [F-7](#b_003) |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Changes in Stockholders' Equity](#b_004) | [F-8](#b_004) |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Cash Flows](#b_005) | [F-9](#b_005) |
| &nbsp;&nbsp;&nbsp;[Notes to Consolidated Financial Statements](#b_006) | [F-11](#b_006) |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and

Stockholders of AMASS Brands Inc

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of AMASS Brands Inc (the "Company") as of December 31, 2024 and 2023 and the related consolidated statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 of the financial statements, the Company sustained net losses, used cash from operations and will be dependent on additional funding sources until profitability is achieved. These factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include adjustments that might result from the outcome of this uncertainty.

**Restatement of Financial Statements**

As discussed in Note 4 to the financial statements, the 2024 financial statements have been restated for the correction of errors.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ dbb*mckennon*

We have served as the Company's auditor since 2022.

Newport Beach, California

October 31, 2025

**Consolidated Financial Statements, as restated**

**AMASS Brands Inc and Subsidiaries**

**Consolidated Balance Sheets**

**December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  | (as restated) | |
| **ASSETS** |  |  |
| CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $693946 | $939975 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 3341357 | 3782276 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 1268341 | 942291 |
| &nbsp;&nbsp;&nbsp;Promissory notes receivable | 421653 | 4934235 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 15318703 | 11216326 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 558179 | 1692323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 21602179 | 23507426 |
| Property and equipment, net | 168179 | 306724 |
| Right-of-use lease assets |  | 1356646 |
| Intangible assets, net | 3064240 | 2985182 |
| Goodwill | 8705994 | 1465964 |
| Investments at fair value | 4926737 | 5578479 |
| Investments at cost | 745283 | 1500000 |
| Promissory Notes Receivable, net of current portion |  | 601714 |
| Deposits | 13640 | 332160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $39226252 | $37634295 |

---

See accompanying notes to these consolidated financial statements.

**AMASS Brands Inc and Subsidiaries**

**Consolidated Balance Sheets**

**December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  | (as restated) | |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $8412794 | $7508404 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 4235065 | 459320 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, current |  | 294132 |
| &nbsp;&nbsp;&nbsp;Secured credit facility, current | 3601405 |  |
| &nbsp;&nbsp;&nbsp;Loans payable, current | 2809898 | 1922053 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 2919691 |  |
| &nbsp;&nbsp;&nbsp;Interest payable | 633744 | 940087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 22612597 | 11123996 |
| &nbsp;&nbsp;&nbsp;Secured credit facility, net of current portion |  | 4969943 |
| &nbsp;&nbsp;&nbsp;Loans payable, net of current portion | 164570 | 792260 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, net of current portion |  | 1077902 |
| &nbsp;&nbsp;&nbsp;Promissory notes payable | 1650000 | 1900000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 24427167 | 19864101 |
| COMMITMENTS AND CONTINGENCIES (NOTE 14) |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Series B Preferred Stock, $0.00001 par, 27,789,708 shares authorized, 8,304,185 and 5,237,632 shares issued and outstanding and liquidation value of $14,634,844 and $7,669,990 as of December 31, 2024 and 2023, respectively | 82 | 52 |
| &nbsp;&nbsp;&nbsp;Series A Preferred Stock, $0.00001 par, 873,734 shares authorized, 873,734 and 873,734 shares issued and outstanding and liquidation value of $3,633,038 and $3,633,038 as of December 31, 2024 and 2023, respectively | 9 | 9 |
| &nbsp;&nbsp;&nbsp;Series Seed Preferred Stock, $0.00001 par, 12,529,020 shares authorized, 12,529,020 and 12,529,020 shares issued and outstanding and liquidation value of $15,741,343 and $15,741,343 as of December 31, 2024 and 2023, respectively | 125 | 125 |
| &nbsp;&nbsp;&nbsp;Common stock, 0.00001 par, 63,500,000 shares authorized, 8,697,983 and 7,367,632 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 87 | 74 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 35881494 | 28588619 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 57459 | 65938 |
| Accumulated deficit | (26127313) | (10884623) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total AMASS Brands, Inc and Subsidiaries stockholders' equity | 9811943 | 17770194 |
| Non-controlling interest | 4987142 | - |
| Total stockholders' equity | 14799085 | 17770194 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $39226252 | $37634295 |

---

See accompanying notes to these consolidated financial statements.

**AMASS Brands Inc and Subsidiaries**

**Consolidated Statements of Operations**

**Years Ended December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  | (as restated) |  |
| Net revenues |  |  |
| &nbsp;&nbsp;&nbsp;Spirits & wine revenues | $19070546 | $30916302 |
| &nbsp;&nbsp;&nbsp;Other revenues | 2597979 | 2567550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net revenues | 21668525 | 33483852 |
| Cost of net revenues |  |  |
| &nbsp;&nbsp;&nbsp;Cost of spirits & wine revenues | 12182046 | 19814068 |
| &nbsp;&nbsp;&nbsp;Cost of other revenues | 3712059 | 2920098 |
| &nbsp;&nbsp;&nbsp;Loss on contracts | 3687394 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of net revenues | 19581499 | 22734166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 2087026 | 10749686 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 4122121 | 3768258 |
| &nbsp;&nbsp;&nbsp;General and administrative | 10039494 | 15276837 |
| &nbsp;&nbsp;&nbsp;Research and development | 168365 | 151812 |
| &nbsp;&nbsp;&nbsp;Impairment loss | 322049 | 1864713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 14652029 | 21061620 |
| Loss from operations | (12565003) | (10311934) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 117523 | 395798 |
| &nbsp;&nbsp;&nbsp;Interest expense | (1805985) | (2828677) |
| &nbsp;&nbsp;&nbsp;Other expense, net | (1214303) | (263454) |
| &nbsp;&nbsp;&nbsp;Gain on sale of business |  | 17482322 |
| &nbsp;&nbsp;&nbsp;Unrealized gain on investments at fair value | 212240 | 401320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (2690525) | 15187309 |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | (15255528) | 4875375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interest | (12838) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) attributable to controlling interest | (15242690) | 4875375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (8479) | 47926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total comprehensive income (loss) | $(15251169) | $4923301 |
| Weighted average common shares outstanding - basic and diluted |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 8132263 | 7272618 |
| &nbsp;&nbsp;&nbsp;Diluted | 8132263 | 25893510 |
| &nbsp;&nbsp;&nbsp;Net loss per common share |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(1.88) | $0.67 |
| &nbsp;&nbsp;&nbsp;Diluted | $(1.88) | $0.19 |

---

See accompanying notes to these consolidated financial statements.

**AMASS Brands Inc and Subsidiaries**

**Consolidated Statements of Stockholders' Equity**

**Years Ended December 31, 2024 and 2023**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series B** | **Series B** | **Series A** | **Series A** | **Series Seed** | **Series Seed** | | | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Other**<br>**Comprehensive**<br>**Income** |<br>**Noncontrolling**<br>**Interest** | **Total**<br>**Stockholders'**<br>**Equity** |
| **Balances at December 31, 2022** |  | $- | 873734 | $9 | 12529020 | $125 | 7252632 | $73 | $20409565 | $(15759998) | $18012 | $- | $4667786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series B Preferred Stock for cash | 3428019 | 34 |  |  |  |  |  |  | 5019963 |  |  |  | 5019997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series B Preferred Stock for conversion of SAFEs | 1126740 | 11 |  |  |  |  |  |  | 1649987 |  |  |  | 1649998 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series B Preferred Stock for debt | 682873 | 7 |  |  |  |  |  |  | 999993 |  |  |  | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options |  |  |  |  |  |  | 115000 | 1 | 10499 |  |  |  | 10500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrant issued with debt |  |  |  |  |  |  |  |  | 441273 |  |  |  | 441273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrant issued for additional interest |  |  |  |  |  |  |  |  | 8189 |  |  |  | 8189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-compensation - options |  |  |  |  |  |  |  |  | 59799 |  |  |  | 59799 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation - warrants |  |  |  |  |  |  |  |  | 108908 |  |  |  | 108908 |
| &nbsp;&nbsp;&nbsp;&nbsp;Offering costs |  |  |  |  |  |  |  |  | (119557) |  |  |  | (119557) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cumulative translation adjustment |  |  |  |  |  |  |  |  |  |  | 47926 |  | 47926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | - | - | - | - | - | - | - | - | - | 4875375 | - | - | 4875375 |
| **Balances at December 31, 2023** | 5237632 | 52 | 873734 | 9 | 12529020 | 125 | 7367632 | 74 | 28588619 | (10884623) | 65938 |  | 17770194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series B Preferred Stock for cash | 742177 | 7 |  |  |  |  |  |  | 1671449 |  |  |  | 1671456 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series B Preferred Stock for acquisition | 2220150 | 22 |  |  |  |  |  |  | 4999978 |  |  | 4999980 | 9999980 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series B Preferred Stock for debt and accrued interest | 104226 | 1 |  |  |  |  |  |  | 293396 |  |  |  | 293397 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options |  |  |  |  |  |  | 8750 |  | 525 |  |  |  | 525 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock warrants |  |  |  |  |  |  | 1321601 | 13 | 79283 |  |  |  | 79296 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-compensation - options |  |  |  |  |  |  |  |  | 14658 |  |  |  | 14658 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation - warrants |  |  |  |  |  |  |  |  | 378724 |  |  |  | 378724 |
| &nbsp;&nbsp;&nbsp;&nbsp;Offering costs |  |  |  |  |  |  |  |  | (145138) |  |  |  | (145138) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  |  |  |  |  |  | (8479) |  | (8479) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  | (12838) | (12838) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to controlling interest | - | - | - | - | - | - | - | - | - | (15242690) | - | - | (15242690) |
| **Balances at December 31, 2024 (as restated)** | 8304185 | $82 | 873734 | $9 | 12529020 | $125 | 8697983 | $87 | $35881494 | $(26127313) | $57459 | $4987142 | $14799085 |

---

See accompanying notes to these consolidated financial statements.

**AMASS Brands Inc and Subsidiaries**

**Consolidated Statements of Cash Flows**

**Years Ended December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  | (as restated) | |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $(15255528) | $4875375 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 663492 | 786041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 393382 | 168708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for expected credit losses | 13992 | 24010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of goodwill | 322049 | 264713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain of investments at fair value | (212240) | (401320) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt financing costs | 63076 | 473545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on lease termination | 328044 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on forfeiture of warrants in Full Glass | 754717 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on short-term promissory note receivable |  | 1600000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory reserve | 1061913 | 454310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of investment in De Soi | 363982 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of Winc DTC |  | (17482322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of asset acquired and liabilities assumed |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 861996 | 1476769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (3389003) | 1450455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1271882 | 1311726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 762225 | 329932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 3332732 | 436370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable | 162689 | (404654) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable | (230382) | 808550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | 4915 | (22641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue |  | (302954) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 2919690 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (5806377) | (4153387) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Advances to related parties, net | (326050) | (391102) |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment, net disposals | (12900) | (3836) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets |  | (13052) |
| &nbsp;&nbsp;&nbsp;Acquisitions of businesses, net of cash received |  | (7529528) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of Winc DTC |  | 250000 |
| &nbsp;&nbsp;&nbsp;Sale of investment | 500000 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from notes receivable | 4951606 | 1276592 |
| &nbsp;&nbsp;&nbsp;Deposits | - | (318521) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 5112656 | (6729447) |

---

See accompanying notes to these consolidated financial statements.

**AMASS Brands Inc and Subsidiaries**

**Consolidated Statements of Cash Flows, as restated**

**Years Ended December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
|  | (as restated) | |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Repayments on merchant advances | $- | $(58553) |
| &nbsp;&nbsp;&nbsp;Proceeds from loans payable | 2500000 | 6275000 |
| &nbsp;&nbsp;&nbsp;Repayments of loans payable | (2239936) | (4852948) |
| &nbsp;&nbsp;&nbsp;Proceeds from (repayments of) secured credit facility, net | (1415572) | 4917465 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of Series B Preferred Stock | 1671456 | 4019995 |
| &nbsp;&nbsp;&nbsp;Offering costs | (145138) | (119557) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 525 | 10500 |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 79296 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 450631 | 10191902 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (243090) | (690932) |
| Effect of exchange rate changes on cash and cash equivalents | (2939) | 47228 |
| CASH AND CASH EQUIVALENTS, beginning of year | 939975 | 1583679 |
| CASH AND CASH EQUIVALENTS, end of year | $693946 | $939975 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $38706 | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $1432427 | $1682911 |
| NONCASH INVESTING AND FINANCING ACTIVITES |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of convertible notes and accrued interest to preferred stock | $- | $1000000 |
| &nbsp;&nbsp;&nbsp;Conversion of promissory notes payable and accrued interest to preferred stock | $293398 | $- |
| &nbsp;&nbsp;&nbsp;Warrants issued with promissory notes | $- | $441273 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset | $- | $1637688 |
| &nbsp;&nbsp;&nbsp;Conversion of SAFEs to Series B Preferred Stock | $- | $1650000 |

---

See accompanying notes to these consolidated financial statements.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**December 31, 2024 and 2023**

**Note 1 – Organization and Nature of Business**

AMASS Brands Inc (AMASS), is a corporation formed on September 22, 2016, under the laws of the State of Delaware. Headquartered in Los Angeles, California, the Company sells alcoholic and non-alcohol beverages (and, historically, personal and self-care products) through wholesale and online platforms.

In December 2022, AMASS formed three wholly owned subsidiaries, Project Crush Acquisition Corp LLC (PCAC), Project Crush DTC Sub LLC (DTC Sub), and Project Crush DTB Sub, LLC, for its anticipated asset purchase of Winc, Inc. (Winc). In February 2023, the Project Crush DTB Sub, LLC, changed its legal name to Maison Thomas, LLC (Maison Thomas).

The asset purchase of Winc, Inc., a producer of innovative alcoholic beverage products (primarily wines) available for purchase through direct-to-consumer (Winc.com DTC) ecommerce and wholesale channels, occurred in January 2023. In June 2023, the Winc.com DTC subscription-based ecommerce portion was sold, resulting in the retention of summerwater.com and the wholesale wine channels. Products are either purchased from other manufacturers or developed and manufactured in conjunction with winemakers, vineyards, and distillers domestically and internationally (see Note 5 Acquisitions and Disposition for additional information).

In September 2024, the Company purchased 50.0001% of 222 Spirits Holdco, LLC, and its two wholly owned subsidiaries, 222 Spirits Company, LLC, and 222 Spirits Management Holdco, LLC (collectively, 222 Spirits), which is accounted for as a business acquisition. (see Note 5 Acquisitions and Disposition for additional information).

**Note 2 – Liquidity and Capital Resources**

The Company has evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had not generated profits until the year ended December 31, 2023, where the $4,875,375 in profits primarily resulted from the $17,482,322 gain realized on the sale of the Winc.com DTC business unit. In 2024, the Company incurred a comprehensive loss of $15,251,169. Further, the Company has incurred negative cash flows from operations for the years ended December 31, 2024 and 2023. These factors, among others, raise doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern for the next twelve months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or to obtain additional working capital.

The Company plans to raise additional capital as necessary to support its operating losses through the issuances of stock and loans. No assurances can be given that the Company will be successful in these efforts. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities as a result of this uncertainty.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Note 3 – Summary of Significant Accounting Policies**

**Basis of accounting** – The accompanying consolidated financial statements are prepared under the accrual method of accounting using accounting principles generally accepted in the United States of America (U.S. GAAP). The Company's fiscal year-end is December 31. Certain prior period amounts have been reclassified to conform to current year presentation.

**Principles of consolidation –** These consolidated financial statements include the accounts of the Company and its subsidiaries in which it owns a controlling interest in and variable interest entities where the Company was determined to be the primary beneficiary. All inter-company transactions and balances have been eliminated on consolidation. AMASS, along with Art + Plants, PCAC, DTC Sub, Maison Thomas, Resonant Subholdings, LLC ("Resonant"), and 222 Spirits make up "the Company."

The Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIE") as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. The Company evaluated whether it was the primary beneficiary as it pertains to Resonant and determined that the Company was the primary beneficiary. The Company made this determination due to its obligation to absorb losses and perform on its debt. The separate assets and liabilities of Resonant relate to the Secured Promissory Note described in Note 10 for which the Company makes the payments for and guarantees, and the Trademark sold to it as described in Note 15. Resonant had no other operations and was formed solely to hold the debt and trademark which have been consolidated.

**Use of estimates** – The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to inventory, reserve for expected credit losses, valuation of investments at fair value, revenue recognition, valuation of acquisitions, valuation of loss contracts, impairment, and the valuations of common stock and related stock options and warrants. The Company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

**Concentrations of credit risk** – Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company generally maintains balances in various operating accounts at financial institutions that management believes to be of high credit quality, in amounts that may exceed federally insured limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. As of December 31, 2024 and 2023, all the Company's cash and cash equivalents were held at accredited financial institutions.

**Fair value option** – ASC 825, *Financial Instruments* (ASC 825), allows for entities to elect the "fair value option," which permits entities to choose, at specified election dates, to measure eligible financial assets and financial liabilities at fair value. The decision to elect the fair value option is: (a) applied on an instrument-by-instrument basis (except as delineated within the guidance of ASC 825); (b) irrevocable, unless a new election date occurs; and (c) applied to an entire instrument.

Entities may elect the fair value option for several defined items, including a recognized financial asset and financial liability (with certain specified exceptions). The fair value option may not be elected for several items as defined in ASC 825, including an investment in a subsidiary or an interest in a variable interest entity that is required to be consolidated.

The election of recognition under the fair value option is irrevocable unless another election date occurs. The fair value option need not be applied to all instruments issued or acquired in a single transaction. A financial instrument that is legally a single contract may not be separated into parts for purposes of applying the fair value option. An investor in an equity security may elect the fair value option for its entire investment in that security, including fractional shares.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

The Company has elected the fair value option on its equity investment in De Soi, Inc. ("De Soi"). Management determined to elect the fair value option on these investments in order to provide more useful information to the shareholders regarding the performance of its investment.

**Fair value measurements** – Certain assets and liabilities of the Company are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

**Level 1** – Quoted prices in active markets for identical assets or liabilities.

**Level 2** – Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

**Level 3** – Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques.

The investments at fair value are measured using Level 3 inputs. Measurement of fair value using Level 3 inputs necessitates the use of estimates and assumptions that are inherently subjective, and the values determined by management as a result of using such inputs may differ from the values that would have been used had observable quotations in an active market existed, the differences could be material.

Except for investments at fair value, the carrying amounts of the Company's assets and liabilities, which are defined as financial instruments pursuant to U.S. GAAP, approximate fair value due to their short-term nature.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2024 and 2023:

---

| | |
|:---|:---|
| **Investments at Fair Value** | **Amount** |
| Balance, December 31, 2022 | $5177159 |
| &nbsp;&nbsp;&nbsp;Change in fair value | 401320 |
| Balance, December 31, 2023 | 5578479 |
| &nbsp;&nbsp;&nbsp;Sale of De Soi common stock | (500000) |
| &nbsp;&nbsp;&nbsp;Loss on sale of De Soi common stock | (363982) |
| &nbsp;&nbsp;&nbsp;Change in fair value | 212240 |
| Balance, December 31, 2024 | $4926737 |

---

**Valuation techniques and inputs** – The Company's financial instruments measured at fair value on a recurring basis include investments at fair value, which are classified as Level 3 due to significant unobservable inputs used in their valuation.

The fair value of the Company's investment at fair value is sensitive to changes in key unobservable inputs such as valuation multiples, volatilities, and financial projections. If these assumptions were to change materially, it could significantly impact the fair value conclusions. There were no changes in the valuation techniques used to determine the fair value of Level 3 instruments during the years ended December 31, 2024 and 2023.

To value the investment at fair value, the Company used a market-based approach by identifying similar companies, applying multiples of revenues and liquidation waterfall to reach the Company's equity value, considering discounts for lack of marketability and including weighting for transactions where we sold stock.

The Company sold a portion of its investments in 2024, which caused losses. These losses were incurred for strategic reasons and not necessarily the value the Company would get for its highest and best use. However, such was used as an input in determining fair value.

**At-cost investments –** In accordance with ASC Subtopic 321-10-35-2, *Investments - Others - Cost Method Investments*, investments where the Company does not have a significant influence are accounted for at cost. The Company reviews all material investments on an annual basis to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of the investment. In the event the fair value of the investment declines below the cost basis, the Company records an impairment with the offset recorded in the consolidated statements of operations.

**Foreign currency translation** – The functional currency of the Company's foreign subsidiaries is generally the respective local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate for the period. The resulting translation adjustments are recognized as a component of accumulated other comprehensive loss. Gains or losses resulting from foreign currency denominated transactions are included in accumulated other comprehensive loss.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Business combinations** – The Company accounts for business combinations under ASC 805, *Business Combinations*, which requires that the assets acquired and the liabilities assumed be recorded at the date of acquisition at their respective fair value and that direct costs of acquisitions be expensed as they are incurred. The excess purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.

**Cash and cash equivalents** – The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

**Accounts receivable, net** – Accounts receivable are derived from products and services delivered to customers and are stated at their net realizable value. The Company evaluates the creditworthiness of its customers prior to extending credit and monitors the aging and collectability of receivables on a continuous basis. Accounts receivable are generally written off when deemed uncollectible, and recoveries of receivables previously written off are recognized when received. Generally, no interest is charged on past-due accounts.

In accordance with FASB Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL"), the Company establishes an allowance for expected credit losses on financial assets, including trade and other receivables, at each reporting date. The allowance reflects management's estimate of lifetime expected credit losses based on historical collection experience, the type and credit quality of the customer, the age of outstanding receivables, and current and expected future economic conditions.

Management uses the best information available to make these estimates; however, future adjustments may be required if there are significant changes in customer financial condition or broader economic trends. As of December 31, 2024 and 2023, the Company had a reserve for expected credit losses of $204,957 and $343,573, respectively. The beginning balance of accounts receivable at January 1, 2023, was $423,285, net of a reserve for expected credit losses of $297,072.

**Inventory** – Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (FIFO) method and consist of components, finished goods, and products in transit from the Company's suppliers. Costs of finished goods inventories include all costs incurred to bring inventory to its current condition, including inbound freight and duties. If the Company determines that the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to cost of net revenues to reflect the lower of cost or net realizable value. If actual market conditions are less favorable than those projected by the Company, further adjustments may be required that would increase the cost of goods sold in the period in which such a determination was made.

**Property and equipment, net** – Property and equipment, net includes long-term fixed assets such as machinery, equipment, furniture, and fixtures reported, net of depreciation. Property and equipment are recorded at cost. Depreciation is expensed using the straight-line method over the estimated useful lives of the assets. During 2024 and 2023, the Company's property and equipment were depreciated over five years, and leasehold improvements are amortized over the shorter of one to five years or the lease life. Additions and improvements are capitalized, while routine repairs and maintenance are charged to expense as incurred.

**Leases** – The Company accounts for leases under the provisions of FASB ASC 842, *Leases*, and recognizes the following for all leases (with the exception of short-term leases):

&nbsp;&nbsp;&nbsp;&nbsp;· A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

&nbsp;&nbsp;&nbsp;&nbsp;· A right-of-use (ROU) asset, which represents the lessee's right to use or control the use of a specified asset for the lease
term.

Under ASC 842, the Company determines whether the arrangement is or contains a lease at inception. Operating and finance leases will be recognized on the consolidated balance sheet as ROU assets and lease liabilities. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company will utilize the risk-free rate, a rate for a U.S. Treasury security for a similar term, as permitted by ASC 842.

The Company leases property under agreements classified as operating leases. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Certain of the Company's leases include renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liabilities and ROU assets unless the Company is reasonably certain to be exercising the options. The Company has elected the short-term lease recognition exemption for certain leases, which are less than 12 months in duration. This means, for those leases that qualify, ROU assets or lease liabilities will not be recognized. See Note 16 for details.

**Intangible assets, net** – Intangible assets consist of capitalized website development costs, tradenames and transferred intellectual property, customer base, and non-competes. Intangible assets have been determined to have definite lives and are amortized on a straight-line bases over their estimated economic lives which range from 5 to 15 years. Website development costs are amortized over two years.

**Impairment of long-lived assets** – The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC Subtopic 360-10-35, *Property, Plant, and Equipment – Overall – Subsequent Measurement* (ASC 360). In accordance with ASC 360, the Company reviews its long-lived assets, including finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future undiscounted net cash flows that it expects the asset to generate. When an asset is determined to be impaired, the Company recognizes the impairment amount, which is measured by the amount the carrying value of the asset exceeds its fair value. In addition, the Company evaluates goodwill for impairment in accordance with ASC 350, *Intangibles-Goodwill and Other* (ASC 350). Goodwill is tested at least annually in the fourth quarter, or more frequently if a triggering event occurs. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to the excess, not to exceed the total amount of goodwill. For the years ended December 31, 2024 and 2023, impairment losses of $322,049 and $264,713, were recognized, respectively.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Income taxes –** The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the consolidated financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will not be realized. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon evaluation of the facts, circumstances, and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the policy will be to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the consolidated financial statements.

**Convertible instruments** – U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable U.S. GAAP.

**Convertible preferred stock** – ASC 480, *Distinguishing Liabilities from Equity*, includes standards for how an issuer of equity (including equity shares issued by consolidated entities) classifies and measures on its balance sheet certain financial instruments with characteristics of both liabilities and equity.

Management is required to determine the presentation for the preferred stock as a result of the redemption and conversion provisions, among other provisions in the agreement. Specifically, management is required to determine whether the embedded conversion feature in the preferred stock is clearly and closely related to the host instrument, and whether the bifurcation of the conversion feature is required and whether the conversion feature should be accounted for as a derivative instrument. If the host instrument and conversion feature are determined to be clearly and closely related (both more akin to equity), derivative liability accounting under ASC 815, is not required. Management determined that the host contract of the preferred stock is more akin to equity, and accordingly, derivative liability accounting is not required by the Company.

**Future equity obligations** – The Company has issued Simple Agreements for Future Equity (SAFEs) in exchange for cash financing. These funds were classified as long-term liabilities prior to their conversion into shares. The Company has accounted for its SAFE investments as derivatives liabilities under the ASC 815-40 and ASC 815-10. If any changes in the fair value of the SAFEs occur, the Company will record such changes through earnings, under the guidance prescribed by ASC 825-10. During the year ended December 31, 2023, SAFE notes were converted to stock (see Note 10) and there were no remaining SAFEs outstanding as of December 31, 2024 and 2023.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Stock-based compensation** – The Company accounts for stock-based compensation costs under the provisions of ASC 718, *Compensation—Stock Compensation*, which requires the measurement and recognition of compensation expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock based compensation expense recognized includes the compensation cost for all stock-based payments granted to employees, officers, advisors, and directors based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or canceled during the periods reported. Stock-based compensation is recognized as expense over the employee's requisite vesting period and over the nonemployee's period of providing goods or services.

The Company classifies stock-based compensation expense in its consolidated statements of operations in the same manner in which the award recipient's payroll costs are classified or in which the award recipient's service payments are classified.

The fair value of each stock option and warrant grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company historically has been a private company and lacks company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company's stock options has been determined utilizing the "simplified" method for awards that qualify as "plain-vanilla" options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are recognized as they occur. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

**Revenue recognition –** The Company recognizes revenue under FASB ASC 606, *Revenue from Contracts with Customers*. The Company derives its revenue primarily through the sale of alcohol and non-alcoholic spirits, wine, seltzers, and personal and self-care products in both wholesale and direct to consumer channels. Spirits, wine, and seltzer end customers consist primarily of retailers, bars, and restaurants, while personal and self-care products were sold to wholesalers, retailers, and direct-to-consumer via e-commerce. The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;· Identification of the contract, or contracts, with a customer,

· Identification
of the performance obligations in the contract,

&nbsp;&nbsp;&nbsp;&nbsp;· Determination of the transaction price,

&nbsp;&nbsp;&nbsp;&nbsp;· Allocation of the transaction price to the performance obligations in the contract, and

&nbsp;&nbsp;&nbsp;&nbsp;· Recognition of revenue when, or as, the Company satisfies a performance obligation.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

The Company's revenue generating activities have a single performance obligation and are recognized when the ordered goods are shipped to the end customer, which is when control transfers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for the sale of its product. The Company's sales terms do not typically allow for a right of return on sales to wholesale and distributor customers except for matters related to any manufacturing defects. Amounts billed to customers for shipping and handling are included in net revenues.

As the Company's standard payment terms are less than one year, the Company has elected, as a practical expedient, to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable source that depicts the price as if sold to a similar customer in similar circumstances. Incidental items that are immaterial in the context of the contract are recognized as expense. The Company does not have any significant financing component as payments are received at or shortly after the point of sale.

Costs incurred to obtain a contract are expensed as incurred when the amortization period is less than a year. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has concluded that none of the costs it has incurred to obtain and fulfill its sales contracts meet the capitalization criteria, and as such, there are no costs deferred and recognized as assets on the balance sheet at December 31, 2024 and 2023.

Net revenues reflect reductions attributable to consideration given to customers in various customer incentive programs, including pricing discounts on single transactions, volume discounts, promotional and advertising allowances, coupons, and rebates. This variable consideration is recognized as a reduction of the transaction price based upon expected amounts at the time revenue for the corresponding product sale is recognized. For example, customer promotional discount programs are entered into with certain distributors for certain periods of time. The amount ultimately reimbursed to distributors is determined based upon agreed-upon promotional discounts which are applied to distributors' sales to retailers. Other common forms of variable consideration include volume rebates for meeting established sales targets, including discounts offered to the end customer. The determination of the reduction of the transaction price for variable consideration requires certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recognized. Management estimates this variable consideration by taking into account factors such as the nature of the promotional activity, historical information, and current trends, availability of actual results, and expectations of customer and consumer behavior. All such estimates were not material for the years ended December 31, 2024 and 2023.

Further, the Company offers discounts on e-commerce transitions such as first order discounts, free shipping on sales over certain thresholds, subscription discounts, and bundled set discounts. All e-commerce discounts are included as part of net revenues on the statements of operations and known at the time of the transaction.

Sales tax collected from customers is not considered revenue and is included in accrued expenses until remitted to the taxing authorities. Excise taxes were not material to the consolidated financial statements for the years ended December 31, 2024 and 2023.

**Cost of net revenues** – Cost of net revenues consists of the costs of inventory sold, which includes inbound freight, and production and fulfillment-related payroll. Outbound freight, third-party logistics costs, customs and duties, packaging materials, payment processing fees, and other fulfillment costs are also included in cost of net revenues. Shipping and handling costs amounted to $607,256 and $2,929,200 for the years ended December 31, 2024 and 2023, respectively.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Sales and marketing expenses** – Sales and marketing expenses include all expenditures incurred to market or sell products. These costs include expenditures by the sales team while in the field, marketing and advertising costs, distributor costs, and payroll costs for the sales, marketing, and digital departments.

**Advertising costs** – Advertising costs are expensed in the period incurred and are included as sales and marketing expenses in the consolidated statements of operations. Advertising costs amounted to $45,322 and $197,157 for the years ended December 31, 2024 and 2023, respectively.

**General and administrative expenses** – General and administrative expenses consist primarily of payroll and payroll-related benefits and taxes, professional services, administrative expenditures, and information technology. These costs are expensed as incurred.

**Research and development expenses** – Costs related to development of the Company's products are included in research and development expenses and are expensed as incurred.

**Net earnings (loss) per share** – Basic net earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings (loss) per share on the statements of operations. Diluted net earnings (loss) per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net income (loss) per share if their inclusion would be anti-dilutive. The details of the earnings per share calculations for the years ended December 31, 2024 and 2023 are as follows:

---

| | | |
|:---|:---|:---|
|  | Year Ended | Year Ended |
|  | 2024 | 2023 |
| Basic earnings (loss) per share computation |  |  |
| Net income (loss) | $(15255528) | $4875375 |
| Weighted-average number of shares outstanding - basic | 8132263 | 7272618 |
| Basic earnings per share | $(1.88) | $0.67 |
| Net income (loss) | $(15255528) | $4875375 |
| Weighted-average number of shares outstanding - basic | 8132263 | 7272618 |
| Dilutive effect of converted preferred stock |  | 17859133 |
| Dilutive effect of stock options |  | 281898 |
| Dilutive effect of common stock warrants | - | 479861 |
| Weighted-average number of shares outstanding - diluted | 8132263 | 25893510 |
| Diluted earnings (loss) per share | $(1.88) | $0.19 |

---

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Recently adopted accounting pronouncements**

 

*Segment reporting* – In November 2023, the FASB issued a standard requiring disclosures, on an annual and interim basis, of significant segment expenses and other segment items that are regularly provided to the CODM as well as the title and position of the CODM. We adopted these disclosures for our annual period ending December 31, 2024. The amendments in this standard were applied retrospectively to all prior periods presented in the financial statements (see Note 17).

**Accounting pronouncements not yet adopted**

 

*Income taxes* – In December 2023, the FASB issued a standard to enhance the transparency and decision usefulness of income tax disclosures. This standard requires public companies to disclose (i) specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, (ii) the amount of income taxes paid disaggregated by federal, state, and foreign taxes and disaggregated by material individual jurisdictions, and(iii) income from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense from continuing operations disaggregated by federal, state, and foreign. We are required to adopt these disclosures for our annual period ending December 31, 2026, with early adoption permitted and this standard may be applied retrospectively. We expect this standard to impact our disclosures with no material impacts to our results of operations, cash flows, or financial condition.

 

*Disaggregation of income statement expenses* – In November 2024, the FASB issued a standard requiring disaggregated information about certain income statement expense line items to be disclosed on an annual and interim basis. We are required to adopt these disclosures for our annual period ending December 31, 2028, with early adoption permitted and this standard may be applied retrospectively. We expect this standard to impact our disclosures with no material impacts to our results of operations, cash flows, or financial condition.

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

**Note 4 – Restatement of Financial Statements**

During the preparation of the Company's consolidated financial statements for the year ended December 31, 2024, we identified certain errors in the accounting for loss contracts, stock-based compensation expense related to the fair value of the warrants granted in 2024, the fair value calculation of impairment of goodwill, and the valuation methodology of the Company's investment in Full Glass, as well as certain related classification within the statement of cash flow, compared to previously publicly reported amounts.

**Loss contracts** – We identified that it was probable that some of its long-term contracts would incur losses in future periods. See Note 9 for further discussion.

**Stock-based compensation expense** – We failed to sufficiently consider for the fair value of warrants granted in 2024. We did not take into account recent sales of common stock as a data point in considering fair value. As such, the Company increased stock-based compensation expense by $368,432 to account for the increase in fair value granted.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Goodwill impairment** – In our analysis of goodwill impairment for the GEM&BOLT acquisition, it inappropriately included intercompany accounts that should have been excluded from the net asset value calculation for the reporting unit. As such, we increased impairment loss by $138,000.

**Investment in Full Glass** – Upon re-review of the Company's financials, we determined that there was no formal election to move to the fair value option for the investment in Full Glass and accordingly, the initial election should remain. As such, we adjusted the classification of the investment from Investments at fair value to Investments at cost on the balance sheet, removed the unrealized gain in fair value related to the investment in Full Glass of $402,768, and reduced the value of the investment by $754,717 to reflect the Company's forfeiture of its warrants in Full Glass (See Note 8) which was not previously reflected.

**Cash Flow –** Upon review of the Company's cash flow, we determined that repayments of promissory notes receivable were inappropriately included in cash flows from financing activities when they should have been reflected as investing activities as it pertained to the principal and operating activities as it pertained to the interest receivable. Accordingly, $5,120,000 previously reported as proceeds in financing activities were allocated to investing and operating activities. Similarly, certain payments on interest payable for 181,684 were included in financing activities, when they should have been operating activities. These, in addition to the effects of other restatement matters above, changed the results of the statement of cash flow as summarized below.

As a result, the Company restated its previous issued financial statements for the year ended December 31, 2024.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

The following table summarizes the impact of the restatement on the Company's previously issued financial statements for the year ended December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** |
| **Line Item** | **As previously reported** | **Restatement adjustment** | **As restated** |
| Cost of spirits & wine revenues | 12182046 |  | 12182046 |
| Cost of other revenues | 4479763 | (767704) | 3712059 |
| Loss on contracts | - | 3687394 | 3687394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total cost of net revenues** | **16661809** | **2919690** | **19581499** |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 4122121 |  | 4122121 |
| &nbsp;&nbsp;&nbsp;General and administrative | 9671062 | 368432 | 10039494 |
| &nbsp;&nbsp;&nbsp;Research and development | 168365 |  | 168365 |
| &nbsp;&nbsp;&nbsp;Impairment loss | 184049 | 138000 | 322049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | $**14145597** | $**506432** | $**14652029** |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 117523 |  | 117523 |
| &nbsp;&nbsp;&nbsp;Interest expense | (1805985) |  | (1805985) |
| &nbsp;&nbsp;&nbsp;Other expense, net | (459586) | (754717) | (1214303) |
| &nbsp;&nbsp;&nbsp;Gain on sale of business |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain on investment at fair value | 615008 | (402768) | 212240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other income (expense)** | $**(1533040)** | $**(1157485)** | $**(2690525)** |
| **Net income (loss)** | $**(10671921)** | $**(4583607)** | $**(15255528)** |
| **Basic earnings per share** | $**(1.31)** | $**(0.56)** | $**(1.88)** |
| **Diluted earnings per share** | $**(1.31)** | $**(0.56)** | $**(1.88)** |
| **Investments at fair value** | $**6829505** | $**(1902768)** | $**4926737** |
| **Investments at cost** | $**-** | $**745283** | $**745283** |
| **Goodwill** | $**8843994** | $**(138000)** | $**8705994** |
| **Contract liabilities** | $**-** | $**2919691** | $**2919691** |
| **Additional Paid-in Capital** | $**35513062** | $**368432** | $**35881494** |
| **Accumulated deficit** | $**(21543706)** | $**(4583607)** | $**(26127313)** |
| **Cash flows from operating activities** | $**(5808023)** | $**1646** | $**(5806377)** |
| **Cash flows from investing activities** | $**161050** | $**4951606** | $**5112656** |
| **Cash flows from financing activities** | $**5403883** | $**(4953252)** | $**450631** |

---

**Note 5 – Acquisitions and Disposition**

**222 Spirits acquisition** – On September 19, 2024, the Company entered into an Asset Purchase Agreement to acquire 50.0001% of the equity stake in 222 Spirits Holdings, LLC. The Company issued 2,220,150 shares of Series B-3 Preferred Stock as total consideration for the transaction.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

The acquisition transaction resulted in a change in control and AMASS was determined to be the legal and accounting acquirer. Accordingly, AMASS has applied the acquisition method of accounting and elected to apply pushdown accounting to establish a new basis of accounting. The assets acquired and liabilities assumed are accordingly measured at their estimated fair values.

The estimated fair values of the assets and liabilities at the date of the acquisition were determined by applying established valuation techniques, based on information that management believed to be relevant to this determination. Working capital was recorded at the net book value as of the date of the transaction, as the net book value approximates fair value.

The identifiable intangible assets consist primarily of tradenames. The tradename was valued using the relief from royalty method considering royalty rates for the industry and projected future revenues. Goodwill represents the excess of the consideration over the fair value of the tangible and intangible net assets acquired. Goodwill is primarily attributable to synergies that are expected to arise as a result of the acquisition and other intangible assets that do not qualify for separate recognition. The goodwill is allocated to the spirits segment.

The purchase price was valued as follows:

---

| | |
|:---|:---|
| Equity | $5000000 |
| Fair value of noncontrolling interest | 4999980 |
| Total | $9999980 |

---

The new basis of assets acquired and liabilities assumed as of the date of the transaction is as follows:

---

| | |
|:---|:---|
| Accounts receivable | $436946 |
| Inventory | 1779390 |
| Prepaids and other current assets | 203442 |
| Tradename | 620774 |
| Accounts payable and accrued expenses | (588081) |
| Loans payable | (14570) |
| Net assets acquired | 2437901 |
| Goodwill | 7562079 |
| Total | $9999980 |

---

**Unaudited Pro Forma Financial Information –** The following unaudited pro forma financial information presents the Company's financial results as if the 222 Spirits acquisition had occurred as of January 1, 2024. The unaudited pro forma financial information is not necessarily indicative of what the financial results actually would have been had the acquisitions been completed on this date. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the Company's future financial results. The following unaudited pro forma financial information includes incremental intangible asset amortization as a result of the acquisition. The pro forma information does not give effect to any estimated and potential cost savings or other operating efficiencies that could result from the acquisition:

---

| | |
|:---|:---|
|  | **Year<br> Ended<br> December<br> 31, 2024** |
| Revenue | $239987757 |
| Net loss | $(16299532) |
| Net loss per share – basic and diluted | $(2.00) |

---

**Winc acquisition and partial disposition** – In December 2022, the Company entered into a debtor-in-possession credit facility (DIP) to fund Winc during the Company's section 363 asset acquisition. Under the DIP, the Company paid $2,000,000 in December 2022 and an additional $1,500,000 in January 2023. Total interest and credits earned on the DIP was $133,832 and was considered part of the purchase consideration on January 23, 2023, along with the principal, as part of the Company acquisition of Winc.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

In January 2023, the Company finalized the Asset Purchase Agreement to acquire substantially all of the assets and liabilities from Winc out of bankruptcy through a Section 363 sale. The Company considers the net assets acquired through the Winc transaction to be two business units: wholesale and Winc.com DTC. The Company paid $11,000,000 in total consideration, of which $3,500,000 was paid through the DIP principal, $133,832 through DIP-related fees and credits, $6,014,107 in cash, and $1,352,061 in assumed net liabilities.

The Company has made an allocation of the purchase price in regard to the acquisition related to the assets acquired and the liabilities assumed as of the purchase date.

Total fair value of the purchase price consideration as of January 2023 was determined as follows:

---

| | |
|:---|:---|
| Cash | $6014107 |
| Debtor-in-possession credit facility | 3633832 |
| Assumed net liabilities | 1352061 |
| Total | $11000000 |

---

The Company has made an allocation of the purchase price to the assets acquired and the liabilities assumed as of the purchase date. The following table summarizes the purchase price allocation:

---

| | |
|:---|:---|
| Accounts receivable | $3240300 |
| Inventory | 17692531 |
| Prepaids and other current assets | 2890406 |
| Property and equipment | 167719 |
| Right-of-use lease asset | 477328 |
| Intangible assets | 3869660 |
| Deposits | 13640 |
| Accounts payable and accrued expenses | (3422058) |
| Lease liabilities | (515357) |
| Deferred revenue | (13678882) |
| Net assets acquired | 10735287 |
| Goodwill | 264713 |
| Total | $11000000 |

---

Goodwill is primarily attributable to synergies that are expected to arise as a result of the acquisition and other intangible assets that do not qualify for separate recognition. The goodwill is not deductible for tax purposes. The goodwill was removed as part of the Winc.com DTC disposition described below.

Unaudited pro forma financial information has not been presented, as the acquisition occurred in January 2023 and, accordingly, the Company's consolidated results of operations for the year ended December 31, 2023, include substantially all of Winc's operating activity.

In June 2023, the Company sold the Winc.com DTC business unit for total consideration of $11,000,000 in the form of a $5,250,000 Secured Senior Promissory Note ($5,500,000 net of $250,000 cash received immediately), a $4,000,000 Secured Subordinated Promissory Note, 39,500 Common Units of equity in the buyer, and warrants to purchase 40,000 Common Units of equity in the buyer (the Winc.com Sale). The warrants have an exercise price of $0.01 and have a five-year maturity. The notes were initially to mature on December 31, 2023, but were amended to extend the maturity through April 30, 2025. In February 2024, the Company amended its Secured Promissory Notes receivables. The Company reduced the principal by $1,600,000, forgave all default interest, and reduced the monthly minimum payment to $150,000 in exchange for a lump payment of $3,650,000. The balance due on the Secured Promissory Notes receivable was $421,653 and $5,535,949 as of December 31, 2024 and 2023, respectively.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

In relation to the disposition, the Company was relieved of net liabilities of $6,482,322. Based on the consideration received and net liabilities relieved, the Company recognized a gain on sale of $17,217,609 ($17,482,322, net of goodwill impairment of $264,713), as shown in the consolidated statement of operations for the year ended December 31, 2023.

The net revenues attributable to Winc.com DTC were $12,778,022 and cost of goods sold $8,063,522 in the consolidated statement of operations for the year ended December 31, 2023. Since the operating expenses and cash flows are not clearly distinguishable from other aspects of operations neither item is being reported.

The Company has made an allocation of the sale price in regard to the disposition and assets relieved liabilities assumed as of the sale date. The following table summarizes the purchase price allocation:

The sale price consideration as of June 2023 was determined as follows:

---

| | |
|:---|:---|
| Promissory notes receivable | $9500000 |
| Investment in purchasing company | 1500000 |
| Total | $11000000 |

---

The Company has made an allocation of the sale price to the assets sold and the liabilities relieved as of the sale date. The following table summarizes the sale price allocation:

---

| | |
|:---|:---|
| Inventory | $5286396 |
| Intangible assets, net | 440550 |
| Cash consideration to pay off debt | 1242113 |
| Accounts payable | (75453) |
| Deferred revenue | (13375928) |
| Net liabilities relieved | $(6482322) |
| Sale price | 11000000 |
| Gain on sale | $17482322 |

---

**Note 6 – Inventory, net**

Inventory, net consisted of the following as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Raw materials | $2802258 | $1715154 |
| Work in process | 5417094 | 2087393 |
| Finished goods | 9085465 | 8625500 |
| Inventory reserve | (1986114) | (1211721) |
| &nbsp;&nbsp;&nbsp;Total inventory, net | $15318703 | $11216326 |

---

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

As of December 31, 2024 and 2023, the Company had $29,711 and $1,286,737, respectively, in deposits for inventory purchases and production runs, which are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets.

**Note 7 – Long-Lived Assets**

**Property and equipment, net** – Property and equipment, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Plant and equipment | $126345 | $175629 |
| Office and storage equipment | 38495 | 38502 |
| Furniture and fixtures | 183322 | 183332 |
| Leasehold improvements | 314518 | 372424 |
| Property and equipment, gross | 662680 | 769887 |
| Less: accumulated depreciation and amortization | (494501) | (463163) |
| Property and equipment, net | $168179 | $306724 |

---

Depreciation and amortization expenses of $121,776 and $163,500 were included in general and administrative expenses in the accompanying consolidated statements of operations for the years ended December 31, 2024 and 2023, respectively.

**Intangible assets, net** – Intangible assets, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Website development | $130538 | $130538 |
| Tradename/transferred IP | 788005 | 167231 |
| Customer base | 44267 | 44267 |
| Non-competes | 3857 | 3857 |
| Brand names | 3264000 | 3264000 |
| Intangible assets, gross | 4230667 | 3609893 |
| Less: Accumulated amortization | (1166427) | (624711) |
| Intangible assets, net | $3064240 | $2985182 |
| Goodwill | $8705994 | $1465964 |

---

Amortization expense was $541,716 and $622,341 for years ended December 31, 2024 and 2023, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of operations.

**Goodwill** – The Company tests goodwill for impairment when a triggering event occurs that indicates that the fair value of an entity may be below its carrying amount.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

During the year ended December 31, 2024, the Company identified triggering events indicating a potential impairment of goodwill. These indicators included a significant decline in the Company's decline in revenue in a reporting unit, and lower-than-expected financial performance in certain reporting units. As a result of these indicators, the Company performed an goodwill impairment test The Company utilized a market approach (comparable company analysis) to determine the fair value of the affected reporting units.

The impairment test concluded that the carrying value of goodwill related to the GEM&BOLT Asset Purchase and the associated reporting unit exceeded its fair value. Accordingly, the Company recognized a goodwill impairment loss of $322,049 during the year ended December 31, 2024, which is presented as a separate line item within operating expenses in the accompanying consolidated statement of operations and resulted in a reduction of the goodwill balance to $1,143,876 as of December 31, 2024. No triggering events occurred during the year ended December 31, 2023.

As part of the Company's acquisition of Winc in January 2023, the Company recorded $264,713 of goodwill. This goodwill was relieved as part of the Winc.com DTC Sale, as it was believed to be primarily associated with that business unit. There is no remaining goodwill as part of the Winc Acquisition as of December 31, 2023.

As part of the Company's acquisition of 222 Spirits in September 2024, the Company recorded $7,562,079 of goodwill. There were no triggering events during the period from acquisition to December 31, 2024.

**Note 8 – Investments**

**De Soi** – In August 2020, the Company entered into a joint venture to create De Soi, a celebrity-founded, non-alcoholic wine product company. De Soi first made its product available for sale in January 2022 through the release of three flavors available in both bottles and cans. The Company was granted 2,500,000 of 5,000,000 shares of common stock in De Soi for no consideration. In 2022, the Company acquired certain preferred stock and sold common stock, resulting in ownership of less than 50%, at which point De Soi ceased being a joint venture, as De Soi had raised outside capital in the year and the Company owned less than 50% of De Soi. In December 2024, the Company sold 340,864 shares of De Soi common stock to a stockholder for $500,000 and recognized a loss on sale of $363,982 which is included in other expenses in the accompanying consolidated statements of operations. Subsequent to year end in January 2025, the Company sold another portion of its investment in De Soi for $500,000.

At the valuation dates of December 31, 2024 and 2023, management used the market approach to determine the fair value of the Company's investment in De Soi was $4,926,737 and $5,578,479, respectively, which includes common stock and Series Seed holdings. The market approach was based on valuations related to financing transactions with third-party investors and market multiples of comparable companies, adjusted for certain time and market factors. An unrealized gain on investment of $212,240 was recognized, which is included in the accompanying consolidated statements of operations.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Full Glass** – As partial consideration for the sale of the Winc.com DTC business unit (Note 5), the Company received 39,500 Common Units and warrants convertible to 40,000 Common Units of the buyer with a total implied value of $1,500,000. The warrants had an exercise price of $0.01 and have a five-year maturity. During the year ended December 31, 2023, the Company elected to record the investment at cost and evaluate the investment for impairment whenever a triggering event occurs. In February 2024, 8,892 of the Common Units were converted to Series A Preferred Units and the Company was awarded an additional 41,345 Common Units in consideration for the dilution the Company took on Full Glass' Series A as contemplated by the original contract with Full Glass. Further in February 2024, the Company entered into a Restatement Agreement in which it forfeited its warrants in exchange for a $3,500,000 lump payment on the promissory notes. As such forfeiture represented approximately half of the initial value of the investment, the Company reduced the value of the investment by $754,717 and recorded the loss as a component of other expense, net. As of December 31, 2024, no triggering events occurred and the investment had a value of $745,283.

**Note 9 – Contract Losses**

The Company identified that evidence existed, including declining bulk wine market and demand concerns for finished goods wine, indicating that some of its long-term, unhedged purchase commitment contracts of bulk wine would incur losses in future periods. The identified contracts included bulk wine expected to be received in 2025. In accordance with ASC 330, Inventory, the Company records a provision when evidence exists that net realizable value is lower than the contractual price. The provision is measured at the best estimate of the expected loss, recorded in cost of net revenues, and will be reassessed each period for changes in estimates. Key estimates include remaining expected consideration and market pricing affecting net realizable value. The total liability associated with firm purchase commitment contracts was $2,919,691 as of December 31, 2024, and is presented within accrued expenses and other current liabilities on the consolidated balance sheets.

In February 2024, the Company entered into a supplier agreement to sell finished goods wine to Full Glass at prices below cost. This contract was entered into as a mitigation tool for its long-term purchase commitment contracts above, and on-hand bulk wine in inventory, as the Company is not expecting there to be enough demand for utilization of the bulk wine commitments. The Company utilized the Full Glass supplier agreement in considering the net realizable value for finished goods produced through the long-term purchase commitments above. The Company recognizes losses on the fulfilment of this contract as incurred, which totalled $767,704 during the year ended December 31, 2024.

In aggregate, the Company expensed $3,687,394 in losses on contracts, which are showing in cost of net revenues on the consolidated statements of operations.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Note 10 – Debt**

**Secured credit facility –** In September 2023, the Company entered into a Loan and Security Agreement to open a credit facility with the maximum aggregate principal amount of $8,000,000 (the ABL). Interest is accrued at the greater of (i) 12% and (ii) Prime Rate (7.5% and 8.5% as of December 31, 2024 and 2023, respectively) plus 3.75% per annum. The Company also incurred one-time fees related to the origination of the loan totaling $105,000 and incurs $1,000 per month in collateral monitoring fees. The ABL matured in September 2025 with an automatic renewal for one year if not terminated before 60 days before the termination date. All obligations under the ABL are secured by a first-priority lien on substantially all of Maison Thomas and DTC Sub's tangible and intangible assets, including accounts receivable, inventory, equipment, general intangibles, and related proceeds, subject to customary exclusions. The outstanding balance on the ABL was $3,601,405 and $4,920,975 as of December 31, 2024 and 2023, respectively. Availability under the ABL was $3,152,918 as of December 31, 2024 and does not include the overdraw on bulk wine allowed for November through February each year.

**Loans payable** – In May 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was established to provide economic relief to small businesses facing COVID-19-related economic hardships. In June 2020, the Company applied and received COVID relief funding for qualified small businesses under the Economic Injury Disaster Loan (EIDL) assistance program by the Small Business Administration (SBA). Per the terms of the EIDL agreement, the Company received total proceeds of $150,000. The loan matures in thirty years from the effective date of the loan and has a fixed interest rate of 3.75% per annum. As of December 31, 2024 and 2023, the outstanding balance was $159,924 and $161,014 inclusive of accrued interest, respectively. Interest expense for this loan was $9,144 and $5,562 for the years ended December 31, 2024 and 2023, respectively.

In December 2022, the Company obtained three Mezzanine Secured Notes with shareholders in an aggregate principal amount of $1,200,000. The notes accrue interest at a monthly rate of 15% for the first month and a monthly rate of 2% for each subsequent month. In January 2023, the Company issued another Mezzanine Secured Note for $500,000. During 2023, the Company repaid $1,000,000 of principal balances on these notes. The loans initially matured in December 2023 were extended to July 2025. As of December 31, 2024 and 2023, the balance of Mezzanine Secured Notes was $992,564 and $1,181,860, inclusive of interest, respectively. One of the lenders of the Mezzanine Secured Notes was a related party, as is further discussed in Note 15.

In January 2023, the Company issued two Senior Secured Notes with shareholders in an aggregate principal amount of $5,000,000. The loans earned interest of $1,179,822 and matured in July 2023. In connection with these notes, the Company issued 645,315 warrants to purchase Series B Preferred Stock at an exercise price of $1.46 per share. The Company valued the warrants using the Black-Scholes option pricing model, using inputs described in Note 13, and determined that the relative fair value of the warrants was $441,273. The value of the warrants was recorded as a discount to the debt and accreted up through the maturity date. During the year ended December 31, 2023, the Company repaid one of the Senior Secured Notes through payment of $4,040,625. The Company amended the other note by extending the term through March 2024 and modifying the interest to 7.79% accruing monthly in arrears. The loans were fully paid in March 2024. As of December 31, 2023, the balance outstanding on the second Senior Secured Note was $1,539,196.

In February 2023, the Company issued a Mezzanine Secured Note with the principal value of $300,000. The note incurs interest for the first month at a monthly rate of 17% and after incurred interest at a monthly rate of 2%. The note was repaid in March 2024. Embedded in the note are warrants convertible to 68,194 shares of Common Stock at the exercise price of $1.46 per share with an exercise period of 3 years. The relative fair value of the warrants using the Black-Scholes option pricing model, using inputs described in Note 13, determined the relative fair value was negligible. As of December 31, 2023, the balance outstanding on the Mezzanine Secured Note was $47,994.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

In April 2023, the Company issued a Senior Secured Note with the principal value of $300,000. The note incurred a 1% origination fee, interest for the first month at a monthly rate of 15%, and after incurred interest at a monthly rate of 2%. The note was repaid in March 2024. As of December 31, 2023, the balance outstanding on the Senior Secured Note was $390,000, inclusive of accrued interest.

In May 2023, the Company issued a Senior Secured Note with the principal value of $175,000. The note incurred a 1% origination fee, interest for the first month at a monthly rate of 15%, and after incurred interest at a monthly rate of 2%. The note was fully repaid in March 2024. As of December 31, 2023, the balance outstanding on the Senior Secured Note was $226,202, inclusive of accrued interest.

In April 2024, the Company issued a Secured Promissory Note with the principal balance of $2,500,000. The note accrues interest at $72,917 per month and matured in April 2025. It was subsequently extended to December 2025. The outstanding balance was $2,356,250 as of December 31, 2024, all of which was principal. The Company incurred and paid $656,250 of interest on the note as of December 31, 2024. The Company's trademark is held as collateral on this note. See Note 15.

**Promissory notes payable** – As of December 31, 2024 and 2023, the Company had promissory notes with the total outstanding principal balance of $1,650,000 and $1,900,000, respectively. From January through April 2023, all promissory notes' interest rates were amended from 9% to 12% per annum in exchange for subordination to other debt instruments. In August 2024, one of the holders of the promissory notes received 104,226 shares of Series B-2 Preferred Stock as consideration for the outstanding principal balance of $250,000 and accrued interest of $43,397.

The promissory notes mature between August 2026 and September 2027. Interest accrued on the notes is paid quarterly in arrears. The notes incurred $218,351 and $223,168 of interest expense for the years ended December 31, 2024 and 2023, respectively, of which $157,820 and $108,134 was payable at December 31, 2024 and 2023, respectively.

The promissory notes included warrants to purchase 50,003 shares of common stock at the exercise price of $3.7994 or through a cashless exercise. The exercise period on the warrants is five years from the issuance date. The relative fair value of the warrants using the Black-Scholes option pricing model, using inputs similar to those for stock options after adjusting for the contractual life, was determined to be negligible.

**SAFE notes** – From July through December 2022, the Company issued SAFE Notes for $1,650,000. The SAFE Notes were to convert at a valuation cap of $35,000,000. During 2023, upon the Series B financing, the SAFEs converted into 1,126,740 shares of Series B Preferred Stock. No gain or loss was recognized as the value of the as converted Preferred Stock equaled the value of the SAFEs converted.

The aggregate maturities of the Company's debt subsequent to December 31, 2024, are as follows:

---

| | |
|:---|:---|
| 2025 | $6411303 |
| 2026 | 1550000 |
| 2027 | 100000 |
| Thereafter | 164570 |
| Total | $8225873 |

---

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Note 11 – Convertible Notes**

In December 2022, the Company issued a convertible note with the principal balance of $1,000,000. The note bore 14% interest if the Company did not close its acquisition of Winc; however, if the transaction closed no interest would be incurred. The note was convertible into Series B Preferred Stock and matured at the earlier of the DIP Lender's receipt of repayment or June 30, 2023. In June 2023, the note converted to 682,873 shares of Series B-1 Preferred Stock. Upon conversion of the convertible note, the lender received warrants for 682,873 shares of Common Stock at the exercise price of $1.46 per share. The fair value of the warrants using the Black-Scholes option pricing model, using inputs similar to those for stock options after adjusting for the contractual life; the value, $6,829, was considered interest expense due to the discount and immediate accretion to the note.

As the Winc acquisition closed, no interest accrued on the convertible note.

**Note 12 – Stockholders' Equity**

**Common stock** – As of December 31, 2024, the Company was authorized to issue a total of 63,500,000 shares of Common Stock with $0.00001 par value.

Each holder of stock (both common and preferred) is entitled to one vote for each share of stock held. No distributions have been made for the years ended December 31, 2024 and 2023.

**Preferred stock** – The holders of Series B Preferred Stock are initially entitled to repayment amount at the greater of (i) the Original Issue Price of the Series B Preferred Stock, plus any dividends declared but unpaid thereon or (ii) such amount per share as would have been payable had all shares of the Series B Preferred Stock been converted into Common Stock immediately prior to such liquidation, dissolution, winding up, or Deemed Liquidation Event.

After holders of Series B Preferred Stock are repaid, the holders of shares of all other series of Preferred Stock then outstanding shall be entitled to be paid out of the consideration payable to stockholders in such Deemed Liquidation Event or out of the Available Proceeds, as applicable, on a pari passu basis among each other and before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the greater of (i) the applicable Original Issue Price, plus any dividends declared but unpaid thereon or (ii) such amount per share as would have been payable had all shares of the applicable series of Preferred Stock been converted into Common Stock immediately prior to such liquidation, dissolution, winding up, or Deemed Liquidation Event. If upon any such liquidation, dissolution, or winding up of the Corporation or Deemed Liquidation Event, the assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the holders of shares of Preferred Stock the full amount to which they shall be entitled, the holders of shares of Preferred Stock shall on a pari passu basis share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Corporation, after the payment in full of all Liquidation Amounts required to be paid to the holders of shares of Preferred Stock, the remaining assets of the Corporation available for distribution to its stockholders or, in the case of a Deemed Liquidation Event, the consideration not payable to the holders of shares of Preferred Stock or the remaining Available Proceeds, as the case may be, shall be distributed among the holders of shares of Common Stock, pro rata based on the number of shares held by each such holder.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

The Company authorized and had outstanding the following shares as of December 31, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2024 | December 31, 2024 | December 31, 2023 | December 31, 2023 |
|  | Authorized | Outstanding | Authorized | Outstanding |
| Common Stock | 63500000 | 8697983 | 38000000 | 7367632 |
| Series Seed-1 Preferred Stock | 2412297 | 2412297 | 2412297 | 2412297 |
| Series Seed-2 Preferred Stock | 4323248 | 4323248 | 4323248 | 4323248 |
| Series Seed-3 Preferred Stock | 1579994 | 1579994 | 1579994 | 1579994 |
| Series Seed-4 Preferred Stock | 2346635 | 2346635 | 2346635 | 2346635 |
| Series Seed-5 Preferred Stock | 504316 | 504316 | 504316 | 504316 |
| Series Seed Preferred Stock | 1362530 | 1362530 | 1362530 | 1362530 |
| Series A Preferred Stock | 873734 | 873734 | 873734 | 873734 |
| Series B-1 Preferred Stock | 18198578 | 5237632 | 18198578 | 5237632 |
| Series B-2 Preferred Stock | 4262724 | 104226 |  |  |
| Series B-3 Preferred Stock | 5328406 | 2962327 |  |  |

---

**Stock transactions 2024** – During 2024, the Company issued 742,177 shares of Series B-3 Preferred Stock for cash proceeds of $1,671,456.

The Company issued 2,220,150 shares of Series B-3 Preferred Stock for the acquisition of 222 Spirits (Note 5).

The Company issued 104,226 shares of Series B-2 Preferred Stock as consideration for the repayment of a promissory note (Note 10).

The Company issued 8,750 and 1,321,601 shares of Common Stock for the exercise of stock options and warrants, for proceeds of $525 and $79,296, respectively.

**Stock transactions 2023** – During 2023, the Company issued 3,428,019 shares of Series B-1 Preferred Stock for cash proceeds of $4,019,991 and the $1,000,000 in Series B-1 Preferred Stock deposit received in 2022. In connection with the offering, the Company incurred offering costs of $119,557.

Concurrent with the Series B-1 Preferred Stock financing, the Company issued 1,126,740 shares of Series B-1 Preferred Stock for conversion of SAFEs totaling $1,649,998 and 682,873 shares for convertible debt totaling $1,000,000 (Note 10).

During 2023, the Company issued 115,000 shares of common stock for the exercise of stock options and received cash proceeds of $10,500.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Note 13 – Stock-Based Compensation**

**Incentive stock options and non-qualified stock options** – In September 2016, the Company adopted the 2016 Stock Plan (2016 Plan), which provides for the grant of shares of stock options and restricted stock awards to employees, non-employee directors, and non-employee consultants. As of December 31, 2024, the 2016 Stock Plan, as amended, authorized 5,178,390 shares. The options typically have a term of ten years. The amount granted each calendar year to an employee or non-employee is limited depending on the type of award. Stock options comprise all of the awards granted since the 2016 Plan's inception. Stock options granted under the 2016 Plan typically vest over a four-year period with a one-year cliff, but also include grants that vest over shorter periods of time. As of December 31, 2024, the 2016 Plan had 1,449,155 shares, available for future issuance.

A summary of information related to stock options is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |<br>Options | Weighted<br>Average<br>Exercise Price |<br>Intrinsic<br>Value |
| Outstanding as of December 31, 2022 | 1473236 | $0.12 |  |
| Granted | 2963000 | 0.06 |  |
| Exercised | (115000) | 0.09 |  |
| Forfeited | (390000) | 0.16 |  |
| Outstanding as of December 31, 2023 | 3931236 | 0.06 |  |
| Exercised | (8750) | 0.06 | $21700 |
| Forfeited | (665917) | 0.06 |  |
| Outstanding as of December 31, 2024 | 3256569 | 0.06 | $8063977 |
| Exercisable as of December 31, 2024 | 1623190 | 0.07 | $4013200 |
| Exercisable and expected to vest as of December 31, 2024 | 3256569 | 0.06 | $8063977 |

---

The following table presents the range assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted to employees and directors:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Risk free interest rate | N/A | 4.2%-4.9 |
| Expected dividend yield | N/A | 0.0% |
| Expected volatility | N/A | 75.0% |
| Expected life (years) | N/A | 6.08 |

---

The total fair value of the options granted during the years ended December 31, 2024 and 2023, was $0 and $118,520, respectively. Stock-based compensation expense for stock options of $14,658 and $59,799 was recognized for the years ended December 31, 2024 and 2023, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of operations. Total unrecognized compensation cost related to non-vested stock option awards amounted to $67,110 as of December 31, 2024. The remaining expense is expected to be recognized over a weighted-average period of approximately 24 months.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

During 2023, the Company modified all outstanding stock options to lower the strike price to the assessed fair market value of underlying common stock at the time of modification. The Company analyzed the value of the existing options and modified options immediately before and after modification using similar inputs to those above, adjusting for expected life and determined that the incremental value to the holder of the options was negligible.

**Preferred Stock and Common Stock warrants** – In the years ended December 31, 2024 and 2023, the Company entered into arrangements with its vendors and investors in which it provided Preferred Stock and Common Stock warrants (the warrants) in lieu of cash for goods and services provided or embedded in the Company promissory notes (see Note 10). The warrants generally have a term of five to ten years and are typically either fully vested at issuance or vest over four years with a one-year cliff.

Outstanding and exercisable Preferred Stock warrants amount to 1,328,185, with weighted-average exercise price at $1.46 per share at December 31, 2024 and 2023. Weighted average grant date fair value of the Preferred Stock warrants was $0.75 at December 31, 2023. There were no Preferred Stock warrants granted during the year ended December 31, 2024. Weighted-average years to expiration on outstanding Preferred Stock warrants was 1.10 and 2.11 years at December 31, 2024 and 2023.

In 2023, the Company granted the following Preferred Stock warrants: 645,315 were granted with loans payable (Note 10), 614,583 were granted to Series B investors, the value of which is both an addition and reduction to additional paid-in capital for no effect, and 68,287 warrants for compensation. The exercise price of all these warrants was $1.46 per share and had contractual maturity dates of three years.

A summary of information related to Common Stock warrants is as follows:

---

| | | |
|:---|:---|:---|
|  | Common<br>Stock<br>Warrants | Weighted<br>Average<br>Exercise Price |
| Outstanding as of December 31, 2022 | 1007700 | $0.35 |
| &nbsp;&nbsp;&nbsp;Granted | 2258502 | 0.57 |
| Outstanding as of December 31, 2023 | 3266202 | $0.50 |
| &nbsp;&nbsp;&nbsp;Granted | 205828 | 0.06 |
| &nbsp;&nbsp;&nbsp;Exercised | (1321601) | 0.06 |
| Outstanding as of December 31, 2024 | 2150429 | $0.73 |
| Exercisable as of December 31, 2024 | 2150429 | $0.73 |

---

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Weighted average fair value of warrants granted during the year | $1.84 | $0.03 |
| Weighted average duration (years) to expiration of outstanding | 4.66 | 5.38 |

---

In 2023, the Company granted the following Common Stock warrants: 1,439,582 for compensation and 818,920 for additional interest in relation to modification of notes. These warrants had exercise prices ranging from $0.06 to $1.46 with contractual maturity dates of 2.4-10 years.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

In 2024, the Company granted warrants convertible to 205,828 of common stock for advisory services. The exercise price of these warrants was $0.06 with contractual maturity date of 5 years.

Warrant compensation totaled $378,437 and $108,908 for December 31, 2024 and 2023, respectively, and is included in general and administrative expenses in the accompanying statements of operations. There were no unrecognized compensation costs related to non-vested warrants as of December 31, 2024 and 2023, as all warrants were fully vested upon grant.

The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of warrants granted:

---

| | | |
|:---|:---|:---|
| **Preferred Stock warrants** | 2024 | 2023 |
| Risk free interest rate | N/A | 3.7%-4.3% |
| Expected dividend yield | N/A | 0.0% |
| Expected volatility | N/A | 75.0% |
| Expected life (years) | N/A | 3 |

---

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Weighted average fair value of warrants granted during the year | N/A | $0.75 |
| Weighted average duration (years) to expiration of outstanding warrants at year-end | 1.10 | 2.11 |

---

---

| | | |
|:---|:---|:---|
| **Common Stock warrants** | 2024 | 2023 |
| Risk free interest rate | 4.5% | 3.5%–5.1% |
| Expected dividend yield | 0.0% | 0.0% |
| Expected volatility | 65.0% | 75.0% |
| Expected life (years) | 5 | 2.4–10 |

---

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Note 14 – Income Taxes**

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for consolidated financial statement and income tax purposes. The differences relate primarily to tax to book differences, stock-based compensation expense, and net operating loss carryforwards. As of December 31, 2024 and 2023, the following table presents the deferred tax assets and liabilities by source:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $9323810 | $7176455 |
| &nbsp;&nbsp;&nbsp;Temporary differences | 2279320 | 858757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets | 11603130 | 8035212 |
| Valuation allowance | (11603130) | (8035212) |
| Net deferred tax assets | $- | $- |

---

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to taxable losses for the years ended December 31, 2024 and 2023, cumulative losses through December 31, 2024, and no history of generating taxable income. Therefore, valuation allowances of $11,603,131 and $8,035,212 were recorded as of December 31, 2024 and 2023, respectively. Valuation allowances increased by $3,567,918 and $2,922,388 during the years ended December 31, 2024 and 2023, respectively. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 25.6%. The effective rate is reduced to 0% for 2024 and 2023 due to the full valuation allowance on its net deferred tax assets.

The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. As of December 31, 2024 and 2023, the Company had net operating loss (NOL) carryforwards available to offset future taxable income totaling $34,734,654 and $27,267,845, respectively. NOLs generated in tax years 2017 and prior generally expire 20 years from the year in which they were incurred. NOLs generated in 2018 and subsequent years, which make up substantially all of the Company's NOLs are carried forward indefinitely, subject to limitations under current tax law.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

The Company may in the future become subject to federal, state, and local income taxation though it has not been since its inception. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though its 2021-2024 tax years remain open to examination.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

**Note 15 – Related-Party Transactions**

**Due from related parties** – The Company's founder has received various advances from the Company. In January 2022, the Company entered into a loan agreement with the founder in which the balance outstanding is incurring interest at a rate of 1.6% per annum. As of December 31, 2024 and 2023, net amount due from the founder was $1,268,341 and $942,291, respectively. Interest earned in the years ended December 31, 2024 and 2023, on the advances was $18,095 and $10,665, respectively. These advances are payable on demand.

**Loan payable – related party** – As discussed in Note 10, the holders of one of the Mezzanine Secured Notes was related party. The balance of Mezzanine Secured Notes due to that related party was $325,866 and $522,098 as of December 31, 2024 and 2023, respectively.

**Related entity activity** – During part of 2023, the Company shared certain activities with De Soi, including certain employees and office space. Transactions during the years ended December 31, 2024 and 2023 were immaterial and there were no balances due from De Soi at December 31, 2024 and 2023.

**Loan payable** – In April 2024, the Company sold the AMASS trademark to Resonant and entered into an arrangement under which the Company will repurchase the trademark from Resonant after repayment of the Secured Promissory note entered into concurrently with this transaction. The Company simultaneously entered into an exclusive, worldwide, royalty-free license that permits our continued use of the AMASS name for our product lines and marketing operations. Concurrently, a third-party investor loaned Resonant funds, which was secured by the underlying trademark. The Company received those funds which was memorialized into the Secured Promissory Note described in Note 10. As Resonant is a special purpose vehicle whose director is a related party, it is consolidated with the Company under variable interest entity ("VIE") as the Company is the primary beneficiary. Accordingly, the transaction of the sale of the trademark had no impact on the Company's consolidated financial statements, as all intercompany activity between the Company and Resonant was eliminated in consolidation. However, the Company recognized the related Secured Promissory Note and associated interest expense on its consolidated balance sheets and statements of operations. The note was structured in this manner to more fully secure the lender's position. Subsequent to the original April 2024 secured note, the Company and lender agreed to extend the maturity of the note through December 2025.

**Note 16 – Commitments and Contingencies**

**Lease commitments** – The Company's headquarters in Los Angeles, CA was leased on a month-to-month basis for the years ended December 31, 2024 and 2023. As such, there were no lease obligations as of December 31, 2024.

As part of the Winc acquisition in January 2023, the Company acquired contracts for two warehouses: one in Santa Maria, CA and the other in Bethel Township, PA. The Santa Maria lease expired in December 2023 and was renewed in January 2024 for a term of one year. The lease for the Bethel Township property, originally set to expire in December 2027, was terminated in July 2024. As a result, the related right-of-use (ROU) asset and lease liability were removed from the balance sheet. In addition, a lease deposit totaling $318,520 was forfeited upon termination.

For the years ended December 31, 2024 and 2023, the Company incurred office rent expense of $202,718 and $196,548, respectively, and warehouse rent expense of $940,354 and $891,298, respectively. Office and warehouse rent expense are components of general and administrative expenses in the accompanying consolidated statements of operations. No obligations exist on the Company's operating leases as of December 31, 2024.

**Inventory commitments –** See Note 4 for discussion on inventory commitments.

**Contingencies** – The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition, or results of operations.

**Note 17 – Business Segment Information**

Our internal management financial reporting consists of two business divisions: (i) Wine and (ii) Spirits and we report our operating results in two segments: (i) Wine and (ii) Spirits. In the Wine segment, our portfolio consists of premium imported and domestic wine brands across multiple varietals and price points (both alcoholic and non-alcoholic). In the Spirits segment, our portfolio includes premium and craft spirits brands across categories such as gin, vodka, mezcal, tequila, and non-alcoholic. Our CODM is our Chief Executive Officer. The business segments reflect how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management, and the structure of our internal financial reporting. Our CODM utilizes segment comparable operating income (loss) performance in deciding how to deploy capital in line with disciplined and balanced priorities. These priorities largely include investing in our people and our brands, making capital investments, and strategic acquisitions. Our CODM also monitors budgeted versus actual results in assessing segment operating performance and understanding underlying business trends.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

Management excludes certain non-GAAP Comparable Adjustments from its evaluation of the results of each operating segment as these Comparable Adjustments are not reflective of core operations of the segments. Segment operating performance and the incentive compensation of segment management are evaluated based on core segment operating income (loss) which does not include the impact of these Comparable Adjustments, collectively referred to as comparable operating income (loss). We evaluate segment operating performance based on comparable operating income (loss) of the respective business units.

The accounting policies of the segments are the same as those described for the Company in the Summary of Significant Accounting Policies in Note 3.

Segment information is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Wine** | **Spirits** | **Total segment** | **Unallocated<br> amounts** | **Comparable<br> Adjustments****<sup>(c)</sup>** | **Consolidated** |
| **For the year ended December 31, 2024** |  |  |  |  |  |  |
| Net revenues | $17750599 | $1727757 | $19478356 | $- | $2190169 <sup>(a)</sup> | $21668525 |
| Cost of net revenues | 12009473 | 845499 | 12854972 | - | 6726527 <sup>(a)</sup> | 19581499 |
| Gross profit (loss) | 5741126 | 882258 | 6623384 |  | (4536358) | 2087026 |
| Selling and marketing | 4044490 | 386523 | 4431013 |  | (308892)<sup>(a)</sup> | 4122121 |
| General and administrative | 5735877 | 1274339 | 7010216 | 2650841 <sup>(b)</sup> | 378437 <sup>(a)</sup> | 10039494 |
| Research and development | 22600 | 126065 | 148665 | 19700 <sup>(b)</sup> |  | 168365 |
| Impairment loss | - | - | - | - | 322049 <sup>(a)</sup> | 322049 |
| Loss from operations | (4058841) | (904669) | (4966510) | (2670541) | (4927952) | (12565003) |
| Other income (expense) |  |  |  |  |  | (2690525) |
| Provision for income taxes |  |  |  |  |  | - |
| Net income (loss) |  |  |  |  |  | (15255528) |
| Non-controlling interest net (loss) |  |  |  |  |  | (12838) |
| Net income (loss) attributable to parent |  |  |  |  |  | (15242690) |
| Foreign currency translation adjustment |  |  |  |  |  | (8479) |
| Total comprehensive loss |  |  |  |  |  | $(15251169) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) See comparable adjustments table discussed in this footnote for explanations surrounding items included in comparable adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Unallocated amounts include costs held in the corporate infrastructure that are not allocated to any reporting segment. Significant
items included in general and administrative expenses include $754 thousand in headcount and contractor costs, $483k in legal costs, $120k
in depreciation, and $318k in warehouse lease termination costs.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Comparable Adjustments are determined and presented on a non-GAAP basis and are intended to reflect our current operations.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Wine** | **Spirits** | **Total segment** | **Unallocated<br> amounts** | **Comparable<br> Adjustments****<sup>(c)</sup>** | **Consolidated** |
| **For the year ended December 31, 2023** |  |  |  |  |  |  |
| Net revenues | $17946742 | $1412256 | $19358998 | $- | $14124854 <sup>(a)</sup> | $33483852 |
| Cost of net revenues | 12551301 | 695873 | 13247174 | - | 9486992 <sup>(a)</sup> | 22734166 |
| Gross profit | 5395441 | 716383 | 6111824 |  | 4637862 | 10749686 |
| Selling and marketing | 2658435 | 868471 | 3526906 | 87 <sup>(b)</sup> | 241265 <sup>(a)</sup> | 3768258 |
| General and administrative | 5944317 | 1469191 | 7413508 | 1997615 <sup>(b)</sup> | 5865714 <sup>(a)</sup> | 15276837 |
| Research and development | 29960 | 121852 | 151812 |  |  | 151812 |
| Impairment loss | - | - | - | - | 1864713 <sup>(a)</sup> | 1864713 |
| Loss from operations | (3237271) | (1743131) | (4980402) | (1997702) | (3333830) | (10311934) |
| Other income (expense) |  |  |  |  |  | 15187309 |
| Provision for income taxes |  |  |  |  |  | - |
| Net income (loss) |  |  |  |  |  | 4875375 |
| Non-controlling interest net (loss) |  |  |  |  |  | - |
| Net income (loss) attributable to parent |  |  |  |  |  | 4875375 |
| Foreign currency translation adjustment |  |  |  |  |  | 47926 |
| Total comprehensive loss |  |  |  |  |  | $4923301 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) See comparable adjustments table discussed in this footnote for explanations surrounding items included in comparable adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Unallocated amounts include costs held in the corporate infrastructure that are not allocated to any reporting segment. Significant
items included in general and administrative expenses include $845 thousand in headcount and contractor costs, $238k in headquarters lease
and maintenance costs, and $190k in depreciation and amortization.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Comparable Adjustments are determined and presented on a non-GAAP basis and are intended to reflect our current operations.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

Non-GAAP Comparable Adjustments were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| <u>Net revenues</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales from divested business unit <sup>(a)</sup> | $2144793 | $14025542 |
| &nbsp;&nbsp;&nbsp;Sales of bulk wine <sup>(b)</sup> | 45376 | 99312 |
| Comparable adjustments, Net revenues | 2190169 | 14124854 |
| <u>Cost of net revenues</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of sales from divested business unit <sup>(a)</sup> | 2012135 | 9332405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of sales of bulk wine <sup>(b)</sup> | 581181 | 154587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of write-down of unutilized wine pre-acquisition <sup>(c)</sup> | 445817 |  |
| &nbsp;&nbsp;&nbsp;Loss on contracts <sup>(d)</sup> | 3687394 | - |
| Comparable adjustments, Cost of net revenues | 6726527 | 9486992 |
| <u>Selling and marketing</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of divested business unit <sup>(a)</sup> |  | 241265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overallocated selling & marketing costs <sup>(e)</sup> | (308892) | - |
| Comparable adjustments, selling and marketing | (308892) | 241265 |
| <u>General and administrative</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of divested business unit <sup>(a)</sup> |  | 2259851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation <sup>(f)</sup> | 378437 | 168708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction services fees <sup>(g)</sup> |  | 3437155 |
| &nbsp;&nbsp;&nbsp;Impairment loss <sup>(h)</sup> | 322049 | 1864713 |
| Comparable adjustments, general and administrative | 700486 | 7730427 |
| Comparable adjustments, Operating income (loss) | (4927952) | (3333830) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Sales from divested business unit relates to the sale of Winc.com
in June 2023. All of those revenues pre-sale and associated costs are not part of our recurring business and are thus excluded from what
the CODM views as regular operations. Along the same line, the sales from divested business unit also include sales and associated costs
related to inventory sold to the buyer of winc.com post-sale. These revenues are not regular and part of the business' long-term
business plans/strategy and occur because they have been cash accretive in nature. Operating expenses related to these revenues are
also excluded from performance evaluations for the segments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company sold and is expected to sell excess bulk wine for losses.
These are not part of the Company's regular operations and thus are excluded from the CODM's review of the wine business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company wrote-down inventory that was acquired as part of
the Winc acquisition in 2023. When the Company sold the winc.com business, it lost its ability to sell wine unwanted on the wholesale
channel through the winc.com channel. As such, excess bulk wine that was identified and written down in 2024 was not considered to be
a core/recurring operation for the business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Loss contracts are removed because they were the result of the
Company's historical acquisitions and not a result of core wine operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Overallocated selling & marketing costs are expenses billed
by the corporate infrastructure (unallocated amounts) to the other segments. The corporate infrastructure ended up generating income
from those services, it is excluded because they were intercompany incomes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company does not include stock-based compensation in its
evaluation of performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Transaction service fees were related to the acquisition of Winc
in January 2023 and the sale of winc.com in June 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company does not include impairment losses in its evaluation of
performance.

**AMASS Brands Inc and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Years Ended December 31, 2024 and 2023**

Our principal area of operation is in the U.S. Current operations for one of the spirits brands is in Mexico. Revenues are attributed to countries based on the location of the customer.

Geographic data is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| <u>Net revenues</u> |  |  |
| &nbsp;&nbsp;&nbsp;U.S. | $19172222 | $18644344 |
| &nbsp;&nbsp;&nbsp;Non-U.S. | 306134 | 714654 |

---

The assignment of goodwill to reporting units has not been completed as of December 31, 2024.

**Note 18 – Subsequent Events**

**Debt** – In January 2025, the Company issued a promissory note with the principal value of $1,000,000. The note incurs interest at a rate of 6% per annum and has a maturity date in February 2026.

In August 2025, the Company had a technical breach of covenants on its credit facility. The Company is in discussions with the lender to obtain a waiver and/or forbearance with respect to the applicable covenant violations.

**De Soi** – In January 2025, the Company transferred 237,270 shares of common stock of De Soi for $500,000. In February 2025, the Company transferred 505,051 shares of common stock of De Soi for a $1,000,000 reduction in principal on its senior loan.

**SAFE** – In February 2025, the Company issued a $500,000 SAFE note to an existing loan holder at a $5,000,000 post-money valuation cap in one of our subsidiaries.

**Leases** – The Company entered into a lease renewal with the Santa Maria warehouse. The lease term is January 1, 2025 to December 31, 2025 with monthly rent of $41,420.

**Stock-based compensation** – In January 2025, the Company issued warrants to purchase up to 642,686 shares of common stock at $0.08 per share. In February 2025, the warrants were exercised for the aggregate purchase price of $51,415.

**Equity** –

In January 2025, the Company's board of directors authorized an increase in the number of shares of Common Stock issuable to 66,700,000, of which 63,500,000 were designated as voting Common Stock and 3,200,000 as non-voting Common Stock.

In January 2025, the Company issued warrants to purchase up to 642,686 shares of common stock at $0.08 per share to the lender of the $1,000,000 debt described above. In February 2025, the warrants were exercised for the aggregate purchase price of $51,415.

In May 2025, we completed a Regulation CF crowdfunding campaign at a purchase price of $2.85 per share, raising $470,759 and issuing 185,580 shares of Common Stock.

**Promissory notes receivable** – The promissory notes receivable were fully repaid in August 2025.

Management has evaluated subsequent events through October 31, 2025, the date the financial statements were available to be issued.

**The date of this Prospectus is [●], 2026**

**Through and including [·], 2026 (the 25th day after the listing date of our Common Stock), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus.**

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

---

| | |
|:---|:---|
| ***Item 13.*** | ***Other Expenses of Issuance and Distribution*** |

---

The following table sets forth the costs and expenses payable by us in connection with this registration statement and the listing of our Common Stock. All amounts shown are estimates except for the SEC registration fee and the Nasdaq listing fee.

---

| | |
|:---|:---|
| SEC registration fee | $\* |
| Nasdaq listing fee | \* |
| Legal fees and expenses | \* |
| Accounting fees and expenses | \* |
| Advisory fee | \* |
| Printing and engraving expenses | \* |
| Transfer agent fees and expenses | \* |
| Miscellaneous expenses | \* |
| Total | $\* |

---

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| | |
|:---|:---|
| ***Item 14.*** | ***Indemnification of Directors and Officers*** |

---

We are incorporated under the laws of the State of Delaware. Section 145 of the DGCL provides that a Delaware corporation may indemnify any person who was or is, or is threatened to be made, a party to any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was a director, officer, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding, if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person's conduct was unlawful.

Section 145 of the DGCL also provides that Delaware corporation may indemnify any person who was or is, or is threatened to be made, a party to any threatened, pending, or completed action or suit by or in the right of the corporation by reason of the fact that such person is or was a director, officer, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification of any claim, issue or matter is permitted without judicial approval if such person is adjudged to be liable to the corporation.

Under the DGCL, where a present or former officer or director is successful on the merits or otherwise in the defense of any action referred to above, or in defense of any claim, issue or matter therein, the corporation must indemnify such present or former officer or director against the expenses (including attorney's fees) which such present or former officer or director actually and reasonably incurred in connection with such action (or claim, issue or matter therein).

Section 102(b)(7) of the DGCL permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director, except for liability for any:

· breach of a director's duty of loyalty to the corporation or its stockholders;

· act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;

· unlawful payment of dividends or unlawful stock purchase or redemption; or

· transaction from which the director derived an improper personal benefit.

Our Certificate of Incorporation contains a provision that precludes any director of ours from being personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director, except for the aforementioned liabilities which we are not permitted to eliminate or limit under Section 107(b)(7) of the DGCL.

In addition, our Certificate of Incorporation and bylaws requires us to indemnify, and advance expenses to, to the fullest extent permitted by law, any person who was or is, or is threatened to be made, a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that the person is or was our director, officer, employee or agent, or is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

Our bylaws further authorizes us to purchase and maintain insurance on behalf of any person who is or was our director, officer, employee or agent, or is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or nonprofit entity against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person's status as such, whether or not we would have the power to indemnify such person against such liability under the provisions of the DGCL.

We plan to purchase an insurance policy covering our officers and directors with respect to certain liabilities, including liabilities arising under the Securities Act, or otherwise. In addition, in connection with the effectiveness of the registration statement of which this prospectus forms a part, we intend to enter into separate indemnification agreements with each of our directors and executive officers.

---

| | |
|:---|:---|
| ***Item 15.*** | ***Recent Sales of Unregistered Securities*** |

---

During the three years immediately preceding the filing of this registration statement, the Company issued the following unregistered securities. Unless otherwise indicated, no underwriters were involved in these transactions, no underwriting discounts or commissions were paid, the securities were issued as restricted securities bearing appropriate legends, and the purchasers represented their investment intent and received or had access to information required for a reasonable evaluation of the investment. The issuances described below were exempt from registration under the Securities Act pursuant to the exemptions noted.

***Regulation Crowdfunding Offerings***

 ****

In 2021 and 2022, the Company conducted offerings pursuant to Regulation Crowdfunding under Section 4(a)(6) of the Securities Act through an intermediary registered with the SEC and a member of FINRA. In connection with those offerings, the Company issued an aggregate of 409,921 shares of its Series Seed Preferred Stock for aggregate gross proceeds of approximately $1,557,462. In May 2025, the Company completed a Regulation CF crowdfunding campaign at a purchase price of $2.85 per share, raising $470,759 and issuing 185,580 shares of Common Stock. Most recently, in December 2025, the Company closed a Regulation Crowdfunding offering at a purchase price of $2.99 per share, raising approximately $261,856 through the issuance of 87,475 shares of Common Stock. The Company currently plans to commence an additional Regulation CF crowdfunding offering in February 2026. These issuances were made in compliance with Regulation Crowdfunding, including offering limits, investor limits, disclosure, filing, and intermediary requirements. The purchasers in these offerings included both accredited and non-accredited investors as permitted by Regulation Crowdfunding. The securities issued in the Regulation Crowdfunding offerings were subject to transfer restrictions in accordance with Rule 501 of Regulation Crowdfunding.

***Private Placements of Equity Securities***

 ****

Series Seed Preferred Stock. In 2021 and 2022, in transactions separate from the Regulation Crowdfunding offerings described above, the Company issued an aggregate of 952,609 shares of Series Seed Preferred Stock. The total aggregate proceeds for sales of Series Seed Preferred Stock is approximately $5,101,617. The total aggregate proceeds for sales of Series Seed Preferred Stock not raised via Regulation Crowdfunding was an approximate $3,544,155. These issuances were made in private placements to a limited number of investors in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D. All purchasers were accredited investors, and there was no general solicitation or general advertising in connection with these offerings

Series A Preferred Stock. In 2022 and 2023, the Company issued an aggregate of 873,734 shares of Series A Preferred Stock for aggregate gross proceeds of approximately $3,633,038. These issuances were made in private placements to accredited investors in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D. No general solicitation or advertising was used.

Series B-1 Preferred Stock. In 2023, the Company issued 5,237,632 shares of Series B-1 Preferred Stock for aggregate gross proceeds of approximately $6,019,990. These issuances were made in private placements to accredited investors in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D. No general solicitation or advertising was used. In connection with the Series B-1 financing, the Company also issued warrants as described under "Warrants" below.

Series B-2 Preferred Stock (Debt Conversion). In 2024, the Company issued 104,226 shares of Series B-2 Preferred Stock upon conversion of certain outstanding indebtedness in the aggregate principal and accrued interest amount of approximately $293,397. These issuances were made in reliance on Section 3(a)(9) of the Securities Act as an exchange of securities by the issuer with its existing security holders, and/or Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D, as applicable.

Series B-3 Preferred Stock. In 2024, the Company issued 2,962,327 shares of Series B-3 Preferred Stock for aggregate gross proceeds of approximately $1,671,456. These issuances were made in private placements to accredited investors in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D. No general solicitation or advertising was used.

***Common Stock***

 ****

In February 2025, the Company issued 642,686 shares of common stock upon the exercise of warrants for an aggregate purchase price of $51,415. These issuances were made in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D.

In January 2025, the Company issued a promissory note in the principal amount of $1,000,000 to a lender. The note incurs interest at a rate of 6% per annum and has a maturity date in February 2026. This issuance was made in a private placement in reliance on Section 4(a)(2) of the Securities Act.

 **

***Convertible Securities and SAFEs***

 **

Convertible Notes. From 2017 through 2021, the Company issued convertible promissory notes in multiple tranches for aggregate principal of approximately $10,500,000, consisting of $500,000 in 2017 (CN1), $1,500,000 in 2018 and 2019 (CN2), $2,000,000 in 2019 (CN3), and $7,000,000 in 2020 and 2021 (CN4). The notes were issued in private placements to accredited investors in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D. Certain of these notes subsequently converted into shares of the Company's preferred stock as reflected in the Company's capitalization table.

SAFEs. In 2022, the Company entered into simple agreements for future equity (SAFEs) with investors for aggregate purchase amounts of approximately $1,650,000. These SAFEs subsequently converted into shares of the Company's preferred stock. In February 2025, the Company issued an additional SAFE for $500,000 to an existing loan holder. These securities were issued in private placements to accredited investors in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D.

***Warrants***

 ****

In connection with the Company's financing activities, the Company issued (i) warrants to purchase an aggregate of 1,328,185 shares of Series B-1 Preferred Stock in 2023, and (ii) common stock warrants to purchase an aggregate of 2,150,429 shares issued in connection with historical financing. These warrants were issued in private placements in reliance on Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D to accredited investors and service providers, without general solicitation or advertising.

***Equity Compensation***

 ****

From 2022 through the date of this registration statement, the Company granted stock options and restricted stock units to employees, directors, consultants, and advisors covering an aggregate of 3,313,027 shares of common stock under the Company's equity incentive plan, and reserved an additional 1,075,347 shares for future issuance. These grants were made in reliance on Rule 701 promulgated under the Securities Act and/or Section 4(a)(2). The Company also issued restricted stock awards and other compensatory equity awards under Rule 701. No commissions or remuneration were paid in connection with these compensatory grants.

***General***

 ****

Unless otherwise specified above, the offers, sales, and issuances of the securities described were made in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof and/or Regulation D promulgated thereunder, as transactions not involving any public offering, or pursuant to Regulation Crowdfunding as noted. In each case, the purchasers represented their intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, appropriate legends were affixed to the securities issued in these transactions, and all purchasers were either accredited investors or, where applicable, were offered disclosure reasonably sufficient to permit an informed investment decision.

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| | |
|:---|:---|
| ***Item 16.*** | ***Exhibits and Financial Statement Schedules*** |

---

***Exhibits***

See the Exhibit Index immediately preceding the signature page hereto for a list of exhibits filed as part of this registration statement, which Exhibit Index is incorporated herein by reference.

***Financial Statement Schedules***

All financial statement schedules are omitted because the information called for is not required or is shown either in the financial statements or in the accompanying notes.

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| | |
|:---|:---|
| ***Item 17.*** | ***Undertakings*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To include any prospectus required by Section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

Provided, however, that paragraphs (a)(1)(i), (ii), and (iii) of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the SEC by the registrant pursuant to Section 13 or Section 15(d) of the Exchange Act, that are incorporated by reference in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That, for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first 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;(5) That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Title** |
| [3.1\*](amass003_ex3-1.htm) | [Seventh Amended and Restated Certificate of Incorporation](amass003_ex3-1.htm) |
| 3.2^ | Bylaws |
| 5.1\*\* | Opinion of Winston & Strawn LLP |
| [10.1\*#](amass003_ex10-1.htm) | [Promissory Note, dated as of January 30, 2024, by and between AMASS Brands Inc and Alchemi Project Inc.](amass003_ex10-1.htm) |
| [10.2\*#](amass003_ex10-2.htm) | [Loan and Security Agreement, dated as of September 7, 2023, by and between Maison Thomas, LLC and Project Crush DTC Sub LLC and Merchant Factors Corp.](amass003_ex10-2.htm) |
| [10.3\*#](amass003_ex10-3.htm) | [Promissory Note, dated as of April 12, 2024, by and between Resonant Subholdings Inc. and Half Church Holdings Pte. Ltd.](amass003_ex10-3.htm) |
| [10.4\*#](amass003_ex10-4.htm) | [Promissory Note Amendment 1, dated as of February 14, 2025, by and between Resonant Subholdings Inc. and Half Church Holdings Pte. Ltd.](amass003_ex10-4.htm) |
| [10.5\*#](amass003_ex10-5.htm) | [Promissory Note Amendment 2, dated as of February 26, 2025, by and between Resonant Subholdings Inc. and Half Church Holdings Pte. Ltd.](amass003_ex10-5.htm) |
| [10.6\*#](amass003_ex10-6.htm) | [Asset Purchase Agreement, dated as of April 12, 2024, by and between AMASS Brands Inc and Resonant Subholdings Inc.](amass003_ex10-6.htm) |
| 10.7^ | Asset Purchase Agreement, dated as of December 7, 2022, by and between Project Crush Acquisition Corp, Winc. Inc., Lost Poet. LLC and BWSC, LLC |
| 10.8^ | Amended and Restated Asset Purchase Agreement, dated as of December 21, 2022, by and between Project Crush Acquisition Corp, Winc. Inc., Lost Poet. LLC and BWSC, LLC |
| 10.9^ | Second Amended and Restated Asset Purchase Agreement, dated as of January 17, 2023, by and between Project Crush Acquisition Corp, Winc. Inc., Lost Poet. LLC and BWSC, LLC |
| 10.10^ | Amendment to Second Amended and Restated Asset Purchase Agreement, dated as of January 21, 2023, by and between Project Crush Acquisition Corp, Winc. Inc., Winc Lost Poet. LLC and BWSC, LLC |
| 10.11^ | Disclosure Schedule to Second Amended and Restated Asset Purchase Agreement, dated as of January 17, 2023, by and between Project Crush Acquisition Corp LLC, Winc, Inc., Winc Lost Poet. LLC and BWSC, LLC |
| [10.12\*+](amass003_ex10-12.htm) | [Asset Purchase Agreement, dated as of June 11, 2023, by and between Full Glass Wine Co., LLC, Full Glass - Winc, LLC, Project Crust Acquisition Corp LLC, and Project Crush DTC Sub](amass003_ex10-12.htm) |
| [10.13\*](amass003_ex10-13.htm) | [Amendment to Asset Purchase Agreement, dated as of June 11, 2023, by and between Full Glass Wine Co., LLC, Full Glass - Winc, LLC, Project Crust Acquisition Corp LLC, and Project Crush DTC Sub](amass003_ex10-13.htm) |
| 10.14^ | Second Amendment to Asset Purchase Agreement, dated as of June 11, 2023, by and between Full Glass Wine Co., LLC, Full Glass - Winc, LLC, Project Crust Acquisition Corp LLC, and Project Crush DTC Sub |
| 10.15^ | Disclosure Schedule to Asset Purchase Agreement, dated as of June 11, 2023, by and between Full Glass Wine Co., LLC, Full Glass - Winc, LLC, Project Crust Acquisition Corp LLC, and Project Crush DTC Sub |
| [10.16\*#](amass003_ex10-16.htm) | [Amended and Restated Secured Promissory Note, dated as of February 29, 2024, by and between Full Glass - Winc, LLC and AMASS Brands Inc.](amass003_ex10-16.htm) |
| 10.17^ | Restatement Agreement, dated as of February 29, 2024, by and between Full Glass Wine Co., LLC, Full Glass - WInc, LLC, Louis A. Amoroso, Project Crush Acquisition Corp LLC, Project Crush DTC Sub, LLC, and AMASS Brands Inc. |
| 10.18^ | Multi-Year Wine Purchase Agreement, dated as of February 29, 2024, by and between AMASS Brands Inc and Full Glass - Licensing LLC |
| [10.19\*#](amass003_ex10-19.htm) | [Second Amended and Restated Promissory Note, dated as of October 23, 2024, by and between Full Glass - Winc, LLC and AMASS Brands Inc.](amass003_ex10-19.htm) |
| [10.20\*+](amass003_ex10-20.htm) | [Unit Purchase Agreement, dated as of September 19, 2024, by and between AMASS Brands, Inc, 222 Spirits Holdco, LLC, and The Adhati Trust and JAJC Investments LLC](amass003_ex10-20.htm) |
| [10.21\*](amass003_ex10-21.htm) | [Standard Industrial/Commercial Multi-Tenant Lease, dated as of May 15, 2019, by and between BWSC, LLC and CBC Joint Venture Partners](amass003_ex10-21.htm) |
| [10.22\*](amass003_ex10-22.htm) | [First Amendment to Standard Industrial/Commercial Multi-Tenant Lease, dated as of September 10, 2020, by and between BWSC, LLC and Columbia Business Center Partners L.P.](amass003_ex10-22.htm) |
| 10.23^ | Second Amendment to Standard Industrial/Commercial Multi-Tenant Lease, dated as of March 20, 2021, by and between BWSC, LLC and Columbia Business Center Partners L.P. |
| [10.24\*](amass003_ex10-24.htm) | [Third Amendment to Standard Industrial/Commercial Multi-Tenant Lease, dated as of August 20, 2021, by and between BWSC, LLC and Columbia Business Center Partners L.P.](amass003_ex10-24.htm) |
| [10.25\*](amass003_ex10-25.htm) | [Forth Amendment to Standard Industrial/Commercial Multi-Tenant Lease, dated as of March 29, 2024, by and between BWSC, LLC and Columbia Business Center Partners L.P.](amass003_ex10-25.htm) |
| 10.26^ | Amended and Restated First Amendment to Industrial Lease Agreement, dated as of February 3, 2023, by and between VV1515 LLC and AMASS Brands Inc. |
| 10.27^ | Confidential Lease Termination, Settlement Agreement and Release, dated as of March 20, 2025, by and between VV1515 LLC and AMASS Brands Inc. |
| [10.28\*#†](amass003_ex10-28.htm) | [Warehouse and Logistics Services Agreement, dated as of July 31, 2024, by and between \[\*\*\*\] and Maison Thomas](amass003_ex10-28.htm) |
| [10.29\*#†](amass003_ex10-29.htm) | [\[\*\*\*\] Services Agreement, dated as of April 7, 2025, by and between \[\*\*\*\] and AMASS Brands Inc.](amass003_ex10-29.htm) |
| [10.30\*#†](amass003_ex10-30.htm) | [Summer Water Bulk Wine Agreement, dated as of August 29, 2024, by and between \[\*\*\*\] and Summer Water, Inc.](amass003_ex10-30.htm) |
| [10.31\*#†](amass003_ex10-31.htm) | [Custom Storage and Bottling Agreement, dated as of January 24, 2025, by and between \[\*\*\*\] and Summer Water, Inc.](amass003_ex10-31.htm) |
| [10.32\*#†](amass003_ex10-32.htm) | [Wine Purchase Agreement, dated as of February 3, 2022, by and between BWSC, LLC and \[\*\*\*\]](amass003_ex10-32.htm) |
| [10.33\*#†](amass003_ex10-33.htm) | [Wine Purchase Agreement, dated as of March 12, 2022, by and between BWSC, LLC and \[\*\*\*\]](amass003_ex10-33.htm) |
| 10.34^+ | A&R Investors_ Rights Agreement |
| [10.35\*](amass003_ex10-35.htm) | [2026 Omnibus Incentive Plan](amass003_ex10-35.htm) |
| 10.36^ | Form of Stock Option Award Agreement |
| 10.37^ | Form of RSU Award Agreement |
| [10.38\*](amass003_ex10-38.htm) | [Employee Unsecured Credit Facility, dated as of January 1, 2022, by and between Mark Thomas Lynn and AMASS Brands Inc.](amass003_ex10-38.htm) |
| 10.39^ | Form of Indemnification Agreement |
| 10.40^# | Senior Secured Note, dated as of January 23, 2023, by and between AMASS Brands Inc and Nitehous, LLC |
| 10.41^ | Amendment to the Senior Secured Note, dated as of January 23, 2023, by and between AMASS Brands Inc and Nitehous, LLC |
| 10.42^ | Employment Agreement, Erin K. Green |
| 10.43^ | Employment Agreement, Zachary Ament |
| 10.44^ | Employment Agreement, Mark T. Lynn |
| 10.45^+ | A&R ROFR and Co-Sale Agreement |
| 10.46^+ | A&R Voting Agreement |
| [10.47\*](amass003_ex10-47.htm) | [AMASS Brands Inc 2016 Stock Plan](amass003_ex10-47.htm) |
| 14.1^ | Code of Ethics |
| 21.1^ | List of Subsidiaries |
| 23.1\*\* | Consent of dbbmckennon |
| 23.2\*\* | Consent of Winston & Strawn LLP (included in Exhibit 5.1) |
| [24.1](#ya_001) | [Power of Attorney (included on the signature page)](#ya_001) |
| [99.1\*](amass003_ex99-1.htm) | [Audit Committee Charter](amass003_ex99-1.htm) |
| 99.2^ | Nominating and Corporate Governance Committee Charter |
| 99.3^ | Compensation Committee Charter |
| 107\*\* | Filing Fee Table |

---

---

| | |
|:---|:---|
| ^ | Previously filed. |
| \* | Filed or furnished herewith. |
| \*\* | To be filed by amendment. |
| + | Certain schedules and exhibits to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant undertakes to furnish copies of such schedules and exhibits to the SEC upon request. |
| # | Certain personally identifiable information has been omitted from this exhibit pursuant to Item 601(a)(6) of Regulation S-K. |
| † | Certain portions of the exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K. Such information is marked by [\*\*\*]. The registrant hereby undertakes to furnish supplementally an unredacted copy of such exhibit to the SEC upon request. |
|  | *Financial Statement Schedule.* |
|  | All financial statement schedules are omitted because they are not applicable or the information is included in the registrant's consolidated financial statements or related notes. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of [●], on [●], 2026.

---

| | |
|:---|:---|
| **AMASS BRANDS, INC** | **AMASS BRANDS, INC** |
| By: |  |
|  | Mark T. Lynn |
|  | Chief Executive Officer |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Mark Lynn and Zachary Ament, as his or her true and lawful attorneys-in-fact, proxies and agents, each with full power of substitution, for him or her in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments or any abbreviated registration statement and any amendments thereto filed pursuant to Rule 462(b) increasing the number of securities for which registration is sought), and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact, proxies and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact, proxies and agents, or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
|  | Chief Executive Officer, Director | [●], 2026 |
| Mark T. Lynn | *(Principal Executive Officer)* |  |
|  | Chief Financial Officer | [●], 2026 |
| Zachary Ament | *(Principal Financial and Accounting Officer)* |  |
|  | Chief Operating Officer | [●], 2026 |
| Erin K. Green | Director |  |
|  | Director | [●], 2026 |
| Christopher Bridges |  |  |
|  | Director | [●], 2026 |
| Edoardo Piscopo Di Ciccolini |  |  |
|  | Director | [●], 2026 |
| Jed MacArthur |  |  |

---

## Exhibit 3.1

**Exhibit 3.1**

**SEVENTH AMENDED AND RESTATED**

**CERTIFICATE OF INCORPORATION OF**

**AMASS BRANDS INC**

(Pursuant to Sections 242 and 245 of the<br> General Corporation Law of the State of Delaware)

AMASS Brands Inc., a corporation organized and existing under and by virtue of the provisions of the General Corporation Law of the State of Delaware (the "**General Corporation Law**"),

**DOES HEREBY CERTIFY:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** That the name of this corporation is AMASS Brands Inc, and that this corporation was originally incorporated pursuant to the General Corporation Law on September 22, 2016 under the name AMASS Brands Inc (the "**Original Certificate**") and which Original Certificate was fully amended and restated by that certain Amended and Restated Certificate of Incorporation, dated as of April 13, 2021, as further amended by that certain Certificate of Amendment to the Amended and Restated Certificate of Incorporation, dated as of April 28, 2021, and as further amended and restated by that certain Amended and Restated Certificate of Incorporation, dated as of January 6, 2023 and as further amended and restated by that certain Amended and Restated Certificate of Incorporation, dated as of February 14, 2023 and as further amended and restated by that certain Amended and Restated Certificate of Incorporation, dated as of January 30, 2025 (collectively, the "**Amended Certificate**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** That the Board of Directors of this corporation (the **"Board of Directors")** duly adopted resolutions proposing to amend and restate the Amended Certificate of this corporation, declaring said amendment and restatement to be advisable and in the best interests of this corporation and its stockholders, and authorizing the appropriate officers of this corporation to solicit the consent of the stockholders therefor, which resolution setting forth the proposed amendment and restatement is as follows:

**RESOLVED,** that the Amended Certificate of this corporation be amended and restated in its entirety to read as follows:

**FIRST:** The name of this corporation is AMASS Brands Inc (the **"Corporation").**

**SECOND:** The address of the registered office of the Corporation in the State of Delaware is 2140 S. Dupont Highway, in the City of Camden, Delaware, County of Kent, 19934. The name of its registered agent at such address is Paracorp Incorporated.

**THIRD:** The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law.

**FOURTH:** The total number of shares of all classes of stock which the Corporation shall have authority to issue is (i) 250,000,000 shares of Common Stock, $0.00001 par value per share ("**Common Stock**") and (ii) 41,192,462 shares of Preferred Stock, $0.00001 par value per share ("**Preferred Stock**").

**FIFTH:** Upon the filing and effectiveness of this Seventh Amended and Restated Certificate of Incorporation (the "**Effective Time**"), each outstanding share of Non-Voting Common Stock, $0.00001 par value per share ("**Non-Voting Common Stock**"), shall automatically, without any further action by the Corporation or the holders thereof, be converted into one (1) fully paid and nonassessable share of Common Stock, on a one-for-one basis. From and after the Effective Time, certificates (or book-entry notations) formerly representing shares of Non-Voting Common Stock shall represent only the right to receive an equal number of shares of Common Stock. The Corporation shall, upon request and surrender of any certificate formerly representing shares of Non-Voting Common Stock, issue a new certificate (or book-entry notation) representing the appropriate number of shares of Common Stock. After the Effective Time, the Corporation shall have no authority to issue shares of Non-Voting Common Stock.

**SIXTH:** Upon the Effective Time, each three (3) shares of Common Stock, either issued and outstanding or held in the treasury of the Corporation immediately prior to the Effective Time, shall automatically, without any further action on the part of the Corporation or the respective holders thereof, be combined into one (1) validly issued, fully paid and nonassessable share of Common Stock (the "**Reverse Stock Split**"). No fractional shares shall be issued in connection with the Reverse Stock Split. Any fractional share resulting from the Reverse Stock Split shall be rounded up to the nearest whole share; no cash shall be paid in lieu of fractional shares. Each certificate (or book-entry notation) that immediately prior to the Effective Time represented shares of Common Stock shall thereafter represent the number of shares of Common Stock into which the shares represented by such certificate (or book-entry notation) have been combined as a result of the Reverse Stock Split. The Reverse Stock Split shall be effected simultaneously for all holders of Common Stock and shall affect all shares of Common Stock uniformly. The Reverse Stock Split shall not change the number of authorized shares of Common Stock or the par value per share of the Common Stock.

The following is a statement of the designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation.

**A. COMMON STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. General.** The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and preferences of the holders of the Preferred Stock set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Voting.** Except as otherwise provided herein or by applicable law, the holders of the Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders (and written actions in lieu of meetings); provided, however, that, except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Seventh Amended and Restated Certificate of Incorporation (this "**Certificate of Incorporation**") that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation or pursuant to the General Corporation Law. There shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by (in addition to any vote of the holders of one or more series of Preferred Stock that may be required by the terms of this Certificate of Incorporation) the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of the votes represented by all outstanding shares of capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law.

**B. PREFERRED STOCK**

1,362,530 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series Seed Preferred Stock**," 2,412,297 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series Seed-1 Preferred Stock**;" 4,323,248 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series Seed-2 Preferred Stock**;" 1,579,994 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series Seed-3 Preferred Stock**;" 2,346,635 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series Seed-4 Preferred Stock**;" 504,316 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series Seed-5 Preferred Stock**;" 873,734 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series A Preferred Stock**;" 18,198,578 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-1 Preferred Stock**;" 4,262,724 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-2 Preferred Stock**;" 5,328,406 shares of the authorized Preferred Stock of the Corporation are hereby designated "**Series B-3 Preferred Stock**;" each with the following rights, preferences, powers, privileges and restrictions, qualifications and limitations. Unless otherwise indicated, references to "Sections" in this Part B of this Article Fourth refer to sections of Part B of this Article Fourth. References to "Preferred Stock" mean the Series Seed Preferred Stock, the Series Seed-1 Preferred Stock, the Series Seed-2 Preferred Stock, the Series Seed-3 Preferred Stock, the Series Seed-4 Preferred Stock, the Series Seed-5 Preferred Stock, the Series A Preferred Stock, the Series B-1 Preferred Stock, the Series B-2 Stock and the Series B-3 Preferred Stock. References to "Series B Preferred Stock" mean the Series B-1 Preferred Stock, the Series B-2 Preferred Stock and the Series B-3 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Dividends.** 

The Corporation shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Corporation (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in this Certificate of Incorporation) the holders of the Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of the applicable series of Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of the applicable series of Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the applicable Original Issue Price (as defined below) for such series of Preferred Stock; *provided* that, if the Corporation declares, pays or sets aside, on the same date, a dividend on shares of more than one class or series of capital stock of the Corporation, the dividend payable to the holders of a series of Preferred Stock pursuant to this Section 1 shall be calculated based upon the dividend on the class or series of capital stock that would result in the highest dividend to the holders of the applicable series of Preferred Stock. The **"Original Issue Price"** shall mean, with respect to the Series Seed Preferred Stock, $3.7994 per share, with respect to the Series Seed-1 Preferred Stock, $0.2332 per share, with respect to the Series Seed-2 Preferred Stock, $0.3732 per share, with respect to the Series Seed-3 Preferred Stock, $1.1664 per share, with respect to the Series Seed-4 Preferred Stock, $3.0395 per share, with respect to the Series Seed-5 Preferred Stock, $0.5198 per share, with respect to the Series A Preferred Stock, $4.15806 per share, with respect to the Series B-1 Preferred Stock, $1.4644 per share, with respect to the Series B-2 Preferred Stock, $2.8150, and with respect to the Series B-3 Preferred Stock, $2.2521 per share, in each case subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the applicable Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations and Asset Sales.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Preferential Payments to Holders of Preferred Stock.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.1** In the event of (a) any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders of shares of Series B Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders, and (b) a Deemed Liquidation Event (as defined below), the holders of shares of Series B Preferred Stock then outstanding shall be entitled to be paid out of the consideration payable to stockholders in such Deemed Liquidation Event or out of the Available Proceeds (as defined below), as applicable, before any payment shall be made to the holders of all other series of Preferred Stock (including Series Seed Preferred Stock, Series Seed-1 Preferred Stock, Series Seed-2 Preferred Stock, Series Seed-3 Preferred Stock, Series Seed-4 Preferred Stock, Series Seed-5 Preferred Stock, and Series A Preferred Stock) or Common Stock by reason of their ownership thereof, an amount per share equal to the greater of (i) the applicable Original Issue Price of the applicable Series B Preferred Stock, plus any dividends declared but unpaid thereon or (ii) such amount per share as would have been payable had all shares of the applicable Series B Preferred Stock been converted into Common Stock pursuant to Section 4 immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event (the amount payable pursuant to this sentence is hereinafter referred to, for each series of Series B Preferred Stock, as applicable, as the **"Series B Liquidation Amount").** If, upon any such liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the holders of shares of Series B Preferred Stock the full amount to which they shall be entitled under this Section 2.1.1, the holders of shares of Series B Preferred Stock shall share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.2** In the event of (a) any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, after the payment of all preferential amounts required to be paid to the holders of Series B Preferred Stock pursuant to Section 2.1.1, the holders of shares of all other series of Preferred Stock (excluding the Series B Preferred Stock) then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders, and (b) in the event of a Deemed Liquidation Event, after the payment of all preferential amounts required to be paid to the holders of Series B Preferred Stock pursuant to Section 2.1.1, the holders of shares of all other series of Preferred Stock then outstanding shall be entitled to be paid out of the consideration payable to stockholders in such Deemed Liquidation Event or out of the Available Proceeds, as applicable, on a *pari passu* basis among each other and before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the greater of (i) the applicable Original Issue Price, plus any dividends declared but unpaid thereon or (ii) such amount per share as would have been payable had all shares of the applicable series of Preferred Stock been converted into Common Stock pursuant to Section 4 immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event (the Series B Liquidation Amount and the amount payable pursuant to this sentence is hereinafter referred to, for each series of Preferred Stock, as applicable, as the **"Liquidation Amount").** If upon any such liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, (i) the assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the holders of shares of Series B Preferred Stock the full amount to which they shall be entitled under this Section 2.1, the holders of shares of Series B Preferred Stock shall on a *pari passu* basis share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full and (ii) if but only to the extent the assets of the Corporation available for distribution to its stockholders were sufficient to pay the holders of shares of Series B Preferred Stock in the full amount to which they are entitled under this Section 2.1, the holders of shares of Preferred Stock (other than Series B Preferred Stock) shall on a *pari passu* basis share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the Preferred Stock (other than Series B Preferred Stock) held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Payments to Holders of Common Stock.** In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, after the payment in full of all Liquidation Amounts required to be paid to the holders of shares of Preferred Stock, the remaining assets of the Corporation available for distribution to its stockholders or, in the case of a Deemed Liquidation Event, the consideration not payable to the holders of shares of Preferred Stock pursuant to Section 2.1 or the remaining Available Proceeds, as the case may be, shall be distributed among the holders of shares of Common Stock, pro rata based on the number of shares of Common Stock held by each such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Deemed Liquidation Events.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.1 Definition.** Each of the following events shall be considered a "Deemed Liquidation Event" unless (i) the holders of a majority of the outstanding shares of Preferred Stock voting together on an as-converted to Common Stock basis (the **"Requisite Holders")** and (ii) with respect to the Series B Preferred Stock only, the holders of a majority of the outstanding shares of Series B Preferred Stock, voting together as a single class on an as-converted basis (the **"Series B Requisite Holders"),** elect otherwise by written notice sent to the Corporation at least ten days prior to the effective date of any such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** a merger,
 consolidation, statutory conversion, transfer, domestication, or continuance in which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 Corporation is a constituent party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such merger, consolidation, statutory conversion, transfer, domestication, or continuance, except any such merger, consolidation, statutory conversion, transfer, domestication, or continuance involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation outstanding immediately prior to such merger, consolidation, statutory conversion, transfer, domestication, or continuance continue to represent, or are converted into or exchanged for shares of capital stock or other equity interests that represent, immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation or entity; or (2) if the surviving or resulting corporation or entity is a wholly owned subsidiary of another corporation or entity immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, the parent corporation or entity of such surviving or resulting corporation or entity; 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;&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)** (i) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole or (ii) the sale, lease, transfer, exclusive license or other disposition (whether by merger, consolidation, statutory conversion, domestication, continuance or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.2 Effecting a Deemed Liquidation Event.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Corporation shall not have the power to effect a Deemed Liquidation Event referred to in Section 2.3.1(a)(i) unless the agreement or plan of merger or consolidation for such transaction, or terms of such transaction (any such agreement, plan or terms, the **"Transaction Document"),** provides that the consideration payable to the stockholders of the Corporation in such Deemed Liquidation Event shall be allocated to the holders of capital stock of the Corporation in accordance with Sections 2.1 and 2.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 of a Deemed Liquidation Event referred to in Section 2.3.1(a)(ii) or 2.3.1(b), if the Corporation does not effect a dissolution of the Corporation under the General Corporation Law within 90 days after such Deemed Liquidation Event, then (i) the Corporation shall send a written notice to each holder of Preferred Stock no later than the 90<sup>th</sup> day after the Deemed Liquidation Event advising such holders of their right (and the requirements to be met to secure such right) pursuant to the terms of the following clause (ii) to require the redemption of such shares of Preferred Stock, and (ii) if the Requisite Holders so request in a written instrument delivered to the Corporation not later than 120 days after such Deemed Liquidation Event, the Corporation shall use the consideration received by the Corporation for such Deemed Liquidation Event (net of any retained liabilities associated with the assets sold or technology licensed, any other expenses reasonably related to such Deemed Liquidation Event or any other expenses incident to the dissolution of the Corporation as provided herein, in each case as determined in good faith by the Board of Directors), together with any other assets of the Corporation available for distribution to its stockholders, all to the extent permitted by Delaware law governing distributions to stockholders (the **"Available Proceeds"),** on the 150<sup>th</sup> day after such Deemed Liquidation Event (the **"Liquidation Date"),** to redeem all outstanding shares of Preferred Stock at a price per share equal to the applicable Liquidation Amount (the **"Mandatory Liquidation").** Notwithstanding the foregoing, in the event of a redemption pursuant to the preceding sentence, if the Available Proceeds are not sufficient to redeem all outstanding shares of Preferred Stock, the Corporation shall redeem a pro rata portion of each holder's shares of Preferred Stock to the fullest extent of such Available Proceeds, based on the respective amounts which would otherwise be payable in respect of the shares to be redeemed if the Available Proceeds were sufficient to redeem all such shares, and shall redeem the remaining shares as soon as it may lawfully do so under Delaware law governing distributions to stockholders. Prior to the distribution or redemption provided for in this Section 2.3.2(b), the Corporation shall not expend or dissipate the consideration received for such Deemed Liquidation Event, except to discharge expenses incurred in connection with such Deemed Liquidation Event or in the ordinary course of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Redemption Notice.** The Corporation shall send written notice of the Mandatory Liquidation to each holder of record of Preferred Stock not less than twenty (20) days prior to the Liquidation Date. Such notice shall state: (1) the number of shares of Preferred Stock held by the holder that the Corporation shall redeem on such Liquidation Date; (2) the Liquidation Date and the redemption price (i.e., the applicable Liquidation Amount); and (3) that the holder is to surrender to the Corporation, in the manner and at the place designated, such holder's certificates representing shares of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Surrender of Certificates.** On or before such Liquidation Date, each holder of shares of Preferred Stock to be redeemed on such Liquidation Date (unless such holder has, prior to such Liquidation Date exercised such holder's right to convert such shares as provided in Section 4), shall surrender such holder's certificates representing such shares (or, if such registered holder alleges that any such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation, in the manner and at the place designated in the Corporation's notice, and thereupon the redemption price for such shares shall be payable to the order of the person whose name appears on such certificates as the owner thereof. In the event less than all of the shares of Preferred Stock represented by a certificate are redeemed, a new certificate representing the unredeemed shares of Preferred Stock shall promptly be issued to such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Rights Subsequent to Redemption.** If the Company's redemption notice shall have been duly given, and if on the Liquidation Date the redemption price is paid or tendered for payment or deposited with an independent payment agent so as to be available therefor in a timely manner, then notwithstanding that the certificates evidencing any of the shares of Preferred Stock so called for redemption shall not have been surrendered, all rights with respect to such shares shall forthwith after such Liquidation Date terminate, except only the right of the holders to receive such redemption price without interest upon surrender of their certificates therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.3 Amount Deemed Paid or Distributed.** The amount deemed paid or distributed to the holders of capital stock of the Corporation upon any such merger, consolidation, sale, transfer, exclusive license, other disposition or redemption shall be the cash or the value of the property, rights or securities to be paid or distributed to such holders pursuant to such Deemed Liquidation Event. The value of such property, rights or securities shall be determined in good faith by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.4 Allocation of Escrow and Contingent Consideration.** In the event of a Deemed Liquidation Event pursuant to Section 2.3.1(a)(i), if any portion of the consideration payable to the stockholders of the Corporation is payable only upon satisfaction of contingencies (the **"Additional Consideration"),** the Transaction Document shall provide that (a) the portion of such consideration that is not Additional Consideration (such portion, the **"Initial Consideration")** shall be allocated among the holders of capital stock of the Corporation in accordance with Sections 2.1 and 2.2 as if the Initial Consideration were the only consideration payable in connection with such Deemed Liquidation Event; and (b) any Additional Consideration which becomes payable to the stockholders of the Corporation upon satisfaction of such contingencies shall be allocated among the holders of capital stock of the Corporation in accordance with Sections 2.1 and 2.2 after taking into account the previous payment of the Initial Consideration as part of the same transaction. For the purposes of this Section 2.3.4, consideration placed into escrow or retained as a holdback to be available for satisfaction of indemnification or similar obligations in connection with such Deemed Liquidation Event shall be deemed to be Additional Consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Voting.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 General.** On any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of a meeting), each holder of outstanding shares of Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder are convertible (as provided in <u>Section 4</u> below) as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of this Certificate of Incorporation, holders of Preferred Stock shall vote together with the holders of Common Stock as a single class and on an as-converted to Common Stock basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Election of Directors.** The holders of record of the shares of Common Stock (excluding shares of Common Stock issued or issuable upon conversion of the Preferred Stock), exclusively and as a separate class, shall be entitled to elect one director of the Corporation. Any director elected as provided in the preceding sentence may be removed without cause by, and only by, the affirmative vote of the holders of a majority of the shares of the class or series of capital stock entitled to elect such director or directors, given either at a special meeting of such stockholders duly called for that purpose or pursuant to a written consent of stockholders; and no such directorship may be filled by stockholders of the Corporation other than by the stockholders of the Corporation that are entitled to elect a person to fill such directorship, voting exclusively and as a separate class. At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of the outstanding shares of the class or series entitled to elect such director shall constitute a quorum for the purpose of electing such director. Except as otherwise provided in this Section 3.2, a vacancy in any directorship filled by the holders of any class or classes or series shall be filled only by vote or written consent in lieu of a meeting of the holders of such class or classes or series or by any remaining director or directors elected by the holders of such class or classes or series pursuant to this Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Preferred Stock Protective Provisions.** So long as any shares of Preferred Stock are outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, domestication, transfer, continuance, recapitalization, reclassification, waiver, statutory conversion, or otherwise, effect any of the following acts or transactions without (in addition to any other vote required by law or this Certificate of Incorporation) the written consent or affirmative vote of the Requisite Holders given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a class, and any such act or transaction entered into without such consent or vote shall be null and void *ab initio,* and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.1** liquidate, dissolve or wind-up the business and affairs of the Corporation, effect any merger or consolidation or any other Deemed Liquidation Event, or consent to any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.2** amend, alter or repeal any provision of this Certificate of Incorporation or Bylaws of the Corporation in a manner that adversely affects the powers, preferences or rights of the Preferred Stock (or any series thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.3** increase or decrease the authorized number of shares of Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.4** purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on, any shares of capital stock of the Corporation other than (i) redemptions of or dividends or distributions on the Preferred Stock as expressly authorized herein, (ii) dividends or other distributions payable on the Common Stock solely in the form of additional shares of Common Stock and (iii) repurchases of stock from former employees, officers, directors, consultants or other persons who performed services for the Corporation or any subsidiary in connection with the cessation of such employment or service at no greater than the original purchase price thereof or (iv) as approved by the Board of Directors; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3.5** increase or decrease the authorized number of directors constituting the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Series B Preferred Stock Protective Provisions.** So long as any shares of Series B Preferred Stock are outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, recapitalization, reclassification, or otherwise, do any of the following without (in addition to any other vote required by law or this Certificate of Incorporation) the written consent or affirmative vote of the Series B Requisite Holders given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a class, and any such act or transaction entered into without such consent or vote shall be null and void *ab initio,* and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4.1** amend, alter or repeal any provision of this Certificate of Incorporation in a manner that adversely alters the voting or other powers, preferences, or other special rights or privileges of the Series B Preferred Stock if all series of Preferred Stock are not similarly affected (it being understood that the Series B Preferred Stock shall not be affected differently because of the proportional differences in the amounts of respective dividends, issue prices and liquidation preferences that arise out from differences in the relative Original Issue Price of the series of Preferred Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4.2** authorize or create or issue or obligate itself to issue any new class or series of equity security (including any security convertible into or exercisable for any equity security) having rights, preferences or privileges with respect to dividends, or payments upon liquidation senior to the Series B Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4.3** reclassify, alter or amend any existing security of the Corporation that is junior to the Series B Preferred Stock in respect of the distribution of assets on the liquidation, dissolution or winding up of the Corporation, a Deemed Liquidation Event, the payment of dividends or rights of redemption, if such reclassification, alteration or amendment would render such other security senior to or *pari passu* with the Series B Preferred Stock in respect of any such right, preference or privilege; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4.4** amend this Section 3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Optional Conversion.** The holders of the Preferred Stock shall have conversion rights as follows (the **"Conversion 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;**4.1 Right to Convert.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.1 Conversion Ratio.** Each share of Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such whole number of fully paid and non-assessable shares of Common Stock (calculated as provided in <u>Section 4.2</u> below), as is determined by dividing the applicable Original Issue Price by the applicable Conversion Price (as defined below) in effect at the time of conversion. The **"Conversion Price"** applicable to (a) the Series Seed Preferred Stock shall initially be equal to the Original Issue Price of the Series Seed Preferred Stock, (b) the Series Seed-1 Preferred Stock shall initially be equal to the Original Issue Price of the Series Seed-1 Preferred Stock, (c) the Series Seed-2 Preferred Stock shall initially be equal to the Original Issue Price of the Series Seed-2 Preferred Stock, (d) the Series Seed-3 Preferred Stock shall initially be equal to the Original Issue Price of the Series Seed-3 Preferred Stock, (e) the Series Seed-4 Preferred Stock shall initially be equal to the Original Issue Price of the Series Seed-4 Preferred Stock, (f) the Series Seed-5 Preferred Stock shall initially be equal to the Original Issue Price of the Series Seed-5 Preferred Stock, (g) the Series A Preferred Stock shall initially be equal to the Original Issue Price of the Series A Preferred Stock, (h) the Series B-1 Preferred Stock shall initially be equal to the Original Issue Price of the Series B-1 Preferred Stock, (i) the Series B-2 Preferred Stock shall initially be equal to the Original Issue Price of the Series B-2 Preferred Stock and (j) the Series B-3 Preferred Stock shall initially be equal to the Original Issue Price of the Series B-3 Preferred Stock. Each such initial Conversion Price, and the rate at which shares of Preferred Stock may be converted into shares of Common Stock, shall be subject to adjustment as provided 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1.2 Termination of Conversion Rights.** In the event of a liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event, the Conversion Rights shall terminate at the close of business on the last full day preceding the date fixed for the payment of any such amounts distributable on such event to the holders of Preferred Stock; *provided* that the foregoing termination of Conversion Rights shall not affect the amount(s) otherwise paid or payable in accordance with Section 2.1 to holders of Preferred Stock pursuant to such liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Fractional Shares.** No fractional shares of Common Stock shall be issued upon conversion of the Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the number of shares of Common Stock to be issued upon conversion of the Preferred Stock shall be rounded to the nearest whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Mechanics of Conversion.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3.1 Notice of Conversion.** In order for a holder of Preferred Stock to voluntarily convert shares of Preferred Stock into shares of Common Stock, such holder shall (a) provide written notice to the Corporation's transfer agent at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent) that such holder elects to convert all or any number of such holder's shares of Preferred Stock and, if applicable, any event on which such conversion is contingent and (b), if such holder's shares are certificated, surrender the certificate or certificates for such shares of Preferred Stock (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent). Such notice shall state such holder's name or the names of the nominees in which such holder wishes the shares of Common Stock to be issued. If required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of such notice and, if applicable, certificates (or lost certificate affidavit and agreement) shall be the time of conversion (the "**Conversion Time**"), and the shares of Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date. The Corporation shall, as soon as practicable after the Conversion Time (i) issue and deliver to such holder of Preferred Stock, or to his, her or its nominees, a certificate or certificates for the number of full shares of Common Stock issuable upon such conversion in accordance with the provisions hereof and a certificate for the number (if any) of the shares of Preferred Stock represented by the surrendered certificate that were not converted into Common Stock, and (ii) pay all declared but unpaid dividends on the shares of Preferred Stock converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3.2 Reservation of Shares.** The Corporation shall at all times when the Preferred Stock shall be outstanding, reserve and keep available out of its authorized but unissued capital stock, for the purpose of effecting the conversion of the Preferred Stock, such number of its duly authorized shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding Preferred Stock; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Preferred Stock, the Corporation shall take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes, including, without limitation, engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment to this Certificate of Incorporation. Before taking any action that would cause an adjustment reducing the applicable Conversion Price below the then par value of the shares of Common Stock issuable upon conversion of such series of Preferred Stock, the Corporation will take any corporate action which may, in the opinion of its counsel, be necessary in order that the Corporation may validly and legally issue fully paid and non-assessable shares of Common Stock at such adjusted applicable Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3.3 Effect of Conversion.** All shares of Preferred Stock which shall have been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the Conversion Time, except only the right of the holders thereof to receive shares of Common Stock in exchange therefor and to receive payment of any dividends declared but unpaid thereon. Any shares of Preferred Stock so converted shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action regardless of the provisions of Section 3.3 above) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3.4 No Further Adjustment.** Upon any such conversion, no adjustment to the applicable Conversion Price shall be made for any declared but unpaid dividends on the Preferred Stock surrendered for conversion or on the Common Stock delivered upon conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3.5 Taxes.** The Corporation shall pay any and all issue and other similar taxes that may be payable in respect of any issuance or delivery of shares of Common Stock upon conversion of shares of Preferred Stock pursuant to this Section 4. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in a name other than that in which the shares of Preferred Stock so converted were registered, and no such issuance or delivery shall be made unless and until the person or entity requesting such issuance has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Adjustments to Preferred Stock Conversion Price for Diluting Issues.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.1 Special Definitions.** For purposes of this Article Fourth, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Additional Shares of Common Stock"** shall mean all shares of Common Stock issued (or, pursuant to Section 4.4.3 below, deemed to be issued) by the Corporation after the Original Issue Date (as defined below), other than (1) the following shares of Common Stock and (2) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities (clauses (l) and (2), collectively, "**Exempted Securities**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** as to any series of Preferred Stock shares of Common Stock, Options or Convertible Securities issued as a dividend or distribution on such series of Preferred Stock (including dividends payable in connection with dividends on other classes or series of stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or other distribution on shares of Common Stock that is covered by Section 4.5, 4.6, 4.7 or 4.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock, Options or Convertible Securities issued to employees or directors of, or consultants or advisors to, the Corporation or any of its subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon the conversion or exchange of Convertible Securities, in each case provided such issuance is pursuant to the terms of such Option or Convertible Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock, Options or Convertible Securities issued to banks, equipment lessors, financial institutions or other lenders, or to real property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction approved by the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock, Options or Convertible Securities issued to suppliers or third-party service providers in connection with the provision of goods or services pursuant to transactions approved by the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock, Options or Convertible Securities issued as acquisition consideration pursuant to the acquisition of another corporation by the Corporation by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement, *provided* that such issuances are approved by the Board of Directors; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** shares of Common Stock, Options or Convertible Securities issued in connection with sponsored research, collaboration, technology license, development, original equipment manufacturing, marketing or other similar agreements or strategic partnerships approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Convertible Securities"** shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Option"** shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Original Issue Date"** shall mean the date on which the first share of either Series B-2 Preferred Stock or Series B-3 Preferred Stock was issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.2 No Adjustment of Preferred Stock Conversion Price.** No adjustment in the applicable Conversion Price shall be made as the result of the issuance or deemed issuance of Additional Shares of Common Stock if the Corporation receives written notice from the Requisite Holders, or with respect to the applicable Conversion Price for the applicable Series B Preferred Stock, from the Series B Requisite Holders, agreeing that no such adjustment shall be made as the result of the issuance or deemed issuance of such Additional Shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.3** **Deemed Issue of Additional Shares of Common Stock.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** If the Corporation at any time or from time to time after the Original Issue Date shall issue any Options or Convertible Securities (excluding Options or Convertible Securities which are themselves Exempted Securities) or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record 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;&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)** If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the applicable Conversion Price pursuant to the terms of Section 4.4.4, are revised as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security or (2) any increase or decrease in the consideration payable to the Corporation upon such exercise, conversion and/or exchange, then, effective upon such increase or decrease becoming effective, the applicable Conversion Price computed upon the original issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such applicable Conversion Price as would have obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible Security. Notwithstanding the foregoing, no readjustment pursuant to this clause (b) shall have the effect of increasing the applicable Conversion Price to an amount which exceeds the lower of (i) the applicable Conversion Price in effect immediately prior to the original adjustment made as a result of the issuance of such Option or Convertible Security, or (ii) the applicable Conversion Price that would have resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment 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;&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)** If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted Securities), the issuance of which did not result in an adjustment to the applicable Conversion Price pursuant to the terms of Section 4.4.4 (either because the consideration per share (determined pursuant to Section 4.4.5) of the Additional Shares of Common Stock subject thereto was equal to or greater than the applicable Conversion Price then in effect, or because such Option or Convertible Security was issued before the Original Issue Date), are revised after the Original Issue Date as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti- dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or (2) any decrease in the consideration payable to the Corporation upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto (determined in the manner provided in Section 4.4.3(a)) shall be deemed to have been issued effective upon such increase or decrease becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the applicable Conversion Price pursuant to the terms of Section 4.4.4, the applicable Conversion Price shall be readjusted to such applicable Conversion Price as would have obtained had such Option or Convertible Security (or portion thereof) never been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, is calculable at the time such Option or Convertible Security is issued or amended but is potentially subject to adjustment based upon subsequent events, any adjustment to the applicable Conversion Price provided for in this Section 4.4.3 shall be effected at the time of such issuance or amendment based on such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent adjustments shall be treated as provided in clauses (b) and (c) of this Section 4.4.3). If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or Convertible Security is issued or amended, any adjustment to the applicable Conversion Price that would result under the terms of this Section 4.4.3 at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount of consideration is first calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment to the applicable Conversion Price that such issuance or amendment took place at the time such calculation can first be 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;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.4 Adjustment of Conversion Price Upon Issuance of Additional Shares of Common Stock.** In the event the Corporation shall at any time after the Original Issue Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Section 4.4.3), without consideration or for a consideration per share less than the applicable Conversion Price in effect immediately prior to such issuance or deemed issuance, then the applicable Conversion Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest one-hundredth of a cent) determined in accordance with the following formula:

CP2 = CP1\* (A + B) ÷ (A + C).

For purposes of the foregoing formula, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** "CP2" shall mean the applicable Conversion Price in effect immediately after such issuance or deemed issuance of Additional Shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** "CP1" shall mean the applicable Conversion Price in effect immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** "A" shall mean the number of shares of Common Stock outstanding immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock (treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately prior to such issuance or deemed issuance or upon conversion or exchange of Convertible Securities (including the Preferred Stock) outstanding (assuming exercise of any outstanding Options therefor) immediately prior to such issue);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "B"** shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been issued or deemed issued at a price per share equal to CP1 (determined by dividing the aggregate consideration received by the Corporation in respect of such issue by CP1); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** "C" shall mean the number of such Additional Shares of Common Stock issued in such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.5 Determination of Consideration.** For purposes of this Section 4.4, the consideration received by the Corporation for the issuance or deemed issuance of any Additional Shares of Common Stock shall be computed 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;&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) Cash and Property.** Such consideration shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** insofar as it consists of cash, be computed at the aggregate amount of cash received by the Corporation, excluding amounts paid or payable for accrued interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined in good faith by the Board of Directors; 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;&nbsp;&nbsp;&nbsp;&nbsp;&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)** in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Corporation for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (i) and (ii) above, as determined in good faith by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Options and Convertible Securities.** The consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to Section 4.4.3, relating to Options and Convertible Securities, shall be determined by dividing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 total amount, if any, received or receivable by the Corporation as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Corporation upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.6 Multiple Closing Dates.** In the event the Corporation shall issue on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to the applicable Conversion Price pursuant to the terms of Section 4.4.4 then, upon the final such issuance, the applicable Conversion Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any additional adjustments as a result of any such subsequent issuances within such period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Adjustment for Stock Splits and Combinations.** If the Corporation shall at any time or from time to time after the Original Issue Date effect a subdivision of the outstanding Common Stock, the applicable Conversion Price in effect immediately before that subdivision shall be proportionately decreased so that the number of shares of Common Stock issuable on conversion of each share of such series shall be increased in proportion to such increase in the aggregate number of shares of Common Stock outstanding. If the Corporation shall at any time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the applicable Conversion Price in effect immediately before the combination shall be proportionately increased so that the number of shares of Common Stock issuable on conversion of each share of such series shall be decreased in proportion to such decrease in the aggregate number of shares of Common Stock outstanding. Any adjustment under this Section 4.5 shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 Adjustment for Certain Dividends and Distributions.** In the event the Corporation at any time or from time to time after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the applicable Conversion Price in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the applicable Conversion Price then in effect by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, 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;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

Notwithstanding the foregoing (a) if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the applicable Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the applicable Conversion Price shall be adjusted pursuant to this Section 4.6 as of the time of actual payment of such dividends or distributions; and (b) no such adjustment shall be made if the holders of such series of Preferred Stock simultaneously receive a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as they would have received if all outstanding shares of such series of Preferred Stock had been converted into Common Stock on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7 Adjustments for Other Dividends and Distributions.** In the event the Corporation at any time or from time to time after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock in respect of outstanding shares of Common Stock) or in other property and the provisions of Section 1 do not apply to such dividend or distribution, then and in each such event the holders of Preferred Stock shall receive, simultaneously with the distribution to the holders of Common Stock, a dividend or other distribution of such securities or other property in an amount equal to the amount of such securities or other property as they would have received if all outstanding shares of Preferred Stock had been converted into Common Stock on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8 Adjustment for Merger or Reorganization, etc.** Subject to the provisions of Section 2.3, if there shall occur any reorganization, recapitalization, reclassification, consolidation or merger involving the Corporation in which the Common Stock (but not the Preferred Stock) is converted into or exchanged for securities, cash or other property (other than a transaction covered by Section 4.4, 4.6 or 4.7), then, following any such reorganization, recapitalization, reclassification, consolidation or merger, each share of Preferred Stock shall thereafter be convertible in lieu of the Common Stock into which it was convertible prior to such event into the kind and amount of securities, cash or other property which a holder of the number of shares of Common Stock of the Corporation issuable upon conversion of one share of such Preferred Stock immediately prior to such reorganization, recapitalization, reclassification, consolidation or merger would have been entitled to receive pursuant to such transaction; and, in such case, appropriate adjustment (as determined in good faith by the Board of Directors) shall be made in the application of the provisions in this Section 4 with respect to the rights and interests thereafter of the holders of the Preferred Stock, to the end that the provisions set forth in this Section 4 (including provisions with respect to changes in and other adjustments of the applicable Conversion Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion of the Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 Certificate as to Adjustments.** Upon the occurrence of each adjustment or readjustment of the applicable Conversion Price pursuant to this Section 4, the Corporation at its expense shall, as promptly as reasonably practicable but in any event not later than ten days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of such series of Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property into which such series of Preferred Stock is convertible) and showing in detail the facts upon which such adjustment or readjustment is based. The Corporation shall, as promptly as reasonably practicable after the written request at any time of any holder of Preferred Stock (but in any event not later than ten days thereafter), furnish or cause to be furnished to such holder a certificate setting forth (i) the applicable Conversion Price for each series of Preferred Stock then in effect, and (ii) the number of shares of Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the conversion of each such series of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10 Notice of Record Date.** In the event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Corporation shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon conversion of the Preferred Stock) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of capital stock of any class or series or any other securities, or to receive any other security; 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;&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)** of any capital reorganization of the Corporation, any reclassification of the Common Stock of the Corporation, or any Deemed Liquidation Event; 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;&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)** of the voluntary or involuntary dissolution, liquidation or winding-up of the Corporation, then, and in each such case, the Corporation will send or cause to be sent to the holders of the Preferred Stock a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Preferred Stock) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Preferred Stock and the Common Stock. Such notice shall be sent at least ten days prior to the record date or effective date for the event specified in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Mandatory Conversion.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Trigger Events.** Upon the earliest of (a) the closing of the sale of shares of Common Stock to the public in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, (b) the initial public filing on the EDGAR database, maintained by the Securities and Exchange Commission, of a registration statement on Form S-1, that registers shares of existing capital stock of the Company for resale ("**Direct Listing**"), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the Requisite Holders, which must include the consent of the Series B Requisite Holders (the time of such closing or the date and time specified or the time of the event specified in such vote or written consent is referred to herein as the "**Mandatory Conversion Time**"), then (i) all outstanding shares of Preferred Stock shall automatically be converted into shares of Common Stock, at the then effective conversion rate for each series of Preferred Stock as calculated pursuant to Section 4.1.1 and (ii) such shares may not be reissued by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Procedural Requirements.** All holders of record of shares of Preferred Stock shall be sent written notice of the Mandatory Conversion Time and the place designated for mandatory conversion of all such shares of Preferred Stock pursuant to this Section 5. Such notice need not be sent in advance of the occurrence of the Mandatory Conversion Time. Upon receipt of such notice, each holder of shares of Preferred Stock in certificated form shall surrender his, her or its certificate or certificates for all such shares (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation at the place designated in such notice. If so required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or by his, her or its attorney duly authorized in writing. All rights with respect to the Preferred Stock converted pursuant to Section 5.1, including the rights, if any, to receive notices and vote (other than as a holder of Common Stock), will terminate at the Mandatory Conversion Time (notwithstanding the failure of the holder or holders thereof to surrender any certificates at or prior to such time), except only the rights of the holders thereof, upon surrender of any certificate or certificates of such holders (or lost certificate affidavit and agreement) therefor, to receive the items provided for in the next sentence of this Section 5.2. As soon as practicable after the Mandatory Conversion Time and, if applicable, the surrender of any certificate or certificates (or lost certificate affidavit and agreement) for Preferred Stock, the Corporation shall (a) issue and deliver to such holder, or to his, her or its nominees, a certificate or certificates for the number of full shares of Common Stock issuable on such conversion in accordance with the provisions hereof and (b) pay any declared but unpaid dividends on the shares of Preferred Stock converted. Such converted Preferred Stock shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Redemption.** Other than as set forth in Section 2.3.2(b), the Preferred Stock is not redeemable at the option of the holder thereof or the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Redeemed or Otherwise Acquired Shares.** Unless otherwise consented to by the Requisite Holders and the Board of Directors, any shares of Preferred Stock that are redeemed, converted or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Preferred Stock following redemption, conversion or acquisition. The Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Waiver.** Except as otherwise set forth herein, (a) any of the rights, powers, preferences and other terms of the Preferred Stock set forth herein may be waived on behalf of all holders of Preferred Stock by the affirmative written consent or vote of the Requisite Holders, (b) any of the rights, powers, preferences and other terms of the Series B Preferred Stock set forth herein may be waived on behalf of all holders of Series B Preferred Stock by the affirmative written consent or vote of the Series B Requisite Holders, and (c) any of the rights, powers, preferences and other terms of any other series of Preferred Stock set forth herein may be waived on behalf of all holders of such series of Preferred Stock by the affirmative written consent or vote of the holders of at least a majority of the shares of such series of Preferred Stock then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Notices.** Any notice required or permitted by the provisions of this Article Fourth to be given to a holder of shares of Preferred Stock shall be mailed, postage prepaid, to the post office address last shown on the records of the Corporation, or given by electronic communication in compliance with the provisions of the General Corporation Law, and shall be deemed sent upon such mailing or electronic transmission.

**FIFTH:** Subject to any additional vote required by this Certificate of Incorporation or the Bylaws, in furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, repeal, alter, amend and rescind any or all of the Bylaws of the Corporation.

**SIXTH:** Subject to any additional vote required by this Certificate of Incorporation, the number of directors of the Corporation shall be determined in the manner set forth in the Bylaws of the Corporation. Each director shall be entitled to one vote on each matter presented to the Board of Directors.

**SEVENTH:** Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide.

**EIGHTH:** Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws of the Corporation may provide. The books of the Corporation may be kept outside of the State of Delaware at such place or places or in such manner or manners as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

**NINTH:** To the fullest extent permitted by law, a director or officer of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer. If the General Corporation Law or any other law of the State of Delaware is amended after approval by the stockholders of this Article Ninth to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law as so amended. Solely for purposes of this Article Ninth, "officer" shall have the meaning provided in Section 102(b)(7) of the General Corporation Law as amended from time to time. Any amendment, repeal or modification of the foregoing provisions of this Article Ninth by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of, or increase the liability of any director or officer of the Corporation with respect to any acts or omissions of such director or officer occurring prior to, such amendment, repeal or modification.

**TENTH:** To the fullest extent permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Corporation (and any other persons to which the General Corporation Law permits the Corporation to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise, in excess of the indemnification and advancement otherwise permitted by Section 145 of the General Corporation Law. Any amendment, repeal or modification of the foregoing provisions of this Article Tenth shall not (a) adversely affect any right or protection of any director, officer or other agent of the Corporation existing at the time of such amendment, repeal or modification or (b) increase the liability of any director of the Corporation with respect to any acts or omissions of such director, officer or agent occurring prior to, such amendment, repeal or modification.

**ELEVENTH:** The Corporation renounces, to the fullest extent permitted by law, any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, any Excluded Opportunity. An **"Excluded Opportunity"** is any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of (i) any director of the Corporation who is not an employee of the Corporation or any of its subsidiaries, or (ii) any holder of Preferred Stock or any partner, member, director, stockholder, employee, affiliate or agent of any such holder, other than someone who is an employee of the Corporation or any of its subsidiaries (collectively, the persons referred to in clauses (i) and (ii) are **"Covered Persons"),** unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity as a director of the Corporation. Any repeal or modification of this Article Eleventh will only be prospective and will not affect the rights under this Article Eleventh in effect at the time of the occurrence of any actions or omissions to act giving rise to liability. Notwithstanding anything to the contrary contained elsewhere in this Certificate of Incorporation, the affirmative vote of the Requisite Holders will be required to amend or repeal, or to adopt any provisions inconsistent with this Article Eleventh.

**THIRTEENTH:** For purposes of Section 500 of the California Corporations Code (to the extent applicable), in connection with any repurchase of shares of Common Stock permitted under this Certificate of Incorporation from employees, officers, directors or consultants of the Corporation in connection with a termination of employment or services pursuant to agreements or arrangements approved by the Board of Directors (in addition to any other consent required under this Certificate of Incorporation), such repurchase may be made without regard to any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined in Section 500 of the California Corporations Code). Accordingly, for purposes of making any calculation under California Corporations Code Section 500 in connection with such repurchase, the amount of any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined therein) shall be deemed to be zero.

**\* \* \***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** That the foregoing amendment and restatement was approved by the holders of the requisite number of shares of this corporation in accordance with Section 228 of the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** That this Certificate of Incorporation, which restates and integrates and further amends the provisions of the Corporation's Certificate of Incorporation, has been duly adopted in accordance with Sections 242 and 245 of the General Corporation Law.

**[Signature Page Follows]**

This Seventh Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on January 9, 2026.

---

| | |
|:---|:---|
| By: | /s/ Mark T. Lynn |
|  | Mark T. Lynn |
|  | Chief Executive Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**PROMISSORY NOTE**

---

| | |
|:---|:---|
| $1,000,000 (USD) | Jan 30th, 2024 |

---

**FOR VALUE RECEIVED**, AMASS BRANDS INC, a Delaware corporation (the "***Company***"), hereby promises to pay to the order of Alchemi Project Inc ("***Noteholder***"), the principal sum of $1,000,000 (USD) pursuant to the terms of this Promissory Note (this "***Note***") (the "***Principal Balance***"), with simple interest accruing on the outstanding portion of the Principal Balance at 6.25% per annum based on an assumed 365-day year. Interest shall be prepaid on the date hereof.

This Note is made in connection with that certain Warrant to Purchase Shares of Common Stock of Amass Brands Inc, entered into by and between the Company and Noteholder, dated on or about the date hereof (the "***Warrant Agreement***").

1. **PAYMENT**; **MATURITY**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Payment of the entire outstanding unpaid portion of the Principal Balance, together with all accrued and unpaid interest thereon, shall become immediately due and payable to Noteholder upon the earliest to occur of (i) January 30th, 2026, or (ii) an Event of Default (as hereinafter defined) (the "***Maturity Date***"); provided that, this Note has not been previously paid in accordance with the terms of Section 2 below. For purposes of this Note, an "***Event of Default***" shall mean (i) the commencement by the Company of a proceeding in bankruptcy; (ii) the consent by the Company to a proceeding in bankruptcy filed against it by another party; or (iii) the appointment of a receiver, liquidator, assignee or trustee of the Company's assets for the benefit of creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All payments shall be in lawful money of the United States of America. If any payments on this Note become due on a Saturday, Sunday or a public holiday under the laws of the State of Delaware, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest in connection with such payment.

2. **PREPAYMENT**. The Company may prepay the Principal Balance from time to time, either in whole or in part, without penalty.

3. **WAIVER**; **PAYMENT of Fees AND Expenses.** The Company waives presentment and demand for payment, notice of dishonor, protest and notice of protest of this Note, and shall pay all costs of collection when incurred, including, without limitation, documented reasonable outside attorneys' fees, costs and other expenses. The right to plead any and all statutes of limitations as a defense to any demands hereunder is hereby waived to the full extent permitted by law. No delay by either party shall constitute a waiver, election or acquiescence by it, nor shall any single or partial exercise of any right, power or remedy under this Note, or any abandonment or discontinuance of steps to enforce such a right, power or remedy, preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

4. **INTEREST**. Nothing contained herein shall require the Company to pay interest at a rate exceeding the maximum permissible rate under applicable law. If interest payable by the Company on any date would exceed the maximum permissible rate, such interest payment shall automatically be reduced to such maximum permitted amount.

5. **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. All notices, requests, demands, claims and other communications under this Note will be in writing. Any notice, request, demand, claim or other communication under this Note will be deemed duly given (i) two (2) business days after such notice is sent by registered or certified mail, return receipt requested, postage prepaid or (ii) immediately after such notice is sent via email (with confirmation of delivery) if sent during normal business hours of the recipient, and if sent after normal business hours, then on the next business day of the recipient, in each case, addressed to the intended recipient as set forth below:

If to the Company:

927 S. Santa Fe Avenue

Los Angeles, CA 90021

Attn: Mark T. Lynn

Email: mark@amass.com

with a required copy, which shall not constitute notice, to:

Giannuzzi Lewendon, LLP

411 West 14<sup>th</sup> Street, 4<sup>th</sup> Floor

New York, New York 10014

Attn: Adam Marsh

Email: adam@gllaw.us

If to Noteholder

Alchemi Project Inc.

[\*\*\*]

Any party may send any notice, request, demand, claim or other communication to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties notice in the manner set forth in this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Governing Law</u>. The terms of this Note shall be construed in accordance with the laws of the State of Delaware, as applied to contracts entered into by Delaware residents within the state of Delaware, and to be performed entirely within the state of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Assignment</u>. Neither the Company nor Noteholder may assign this Note or delegate any of its obligations or rights hereunder without the written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Amendment and Waiver</u>. This Note may not be amended, converted or a right granted pursuant to thereto waived, without the written consent of the Company and Noteholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Titles and Subtitles</u>. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement</u>. This Agreement and the Warrant Agreement constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof and thereof and supersede all prior oral or written agreements, if any, between the parties hereto with respect to such subject matter.

[*remainder of page intentionally left blank; signature page follows*]

**IN WITNESS WHEREOF,** the undersigned has executed this Promissory Note as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY**: | **COMPANY**: |
| AMASS BRANDS INC | AMASS BRANDS INC |
| By: | /s/ Mark T. Lynn |
| Name: | Mark T. Lynn |
| Title: | Chief Executive Officer |

---

## Exhibit 10.2

**Exhibit 10.2**

LOAN AND SECURITY AGREEMENT

Dated as of <u>September 7, 2023</u> (the "**Effective Date**")

Maison Thomas, LLC

927 South Santa Fe Avenue

Los Angeles, CA 90021

Project Crush DTC Sub LLC

927 South Santa Fe Avenue

Los Angeles, CA 90021

Ladies and Gentlemen:

We are pleased to advise that Merchant Factors Corp. (the **"Lender"**) is prepared, subject to the conditions set forth below, to extend to Maison Thomas, LLC ("Maison") and Project Crush DTC Sub LLC ("DTC Sub" and together with "Maison", each a "**Borrower**" and collectively, the "**Borrowers**") a credit facility (the "**Credit Facility**") in the maximum aggregate principal amount of $8,000,000.00 (the "**Maximum Credit**") to be used solely for loans (each, a "**Revolving Loan**"). All extensions of credit will be in Lender's sole discretion. Revolving Loans may be drawn, repaid and re-borrowed up to the maturity date of the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Revolving Loan Advances/; Repayment; Statements</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) Any Revolving Loans made by Lender in its sole discretion under the Credit Facility are limited to the lesser of (i) the Maximum Credit and (ii) the sum of (A) up to 80% of accounts receivable that Lender, in its sole discretion, deems eligible for borrowing purposes, <u>plus</u> (B) the least of (I) $5,500,000, (II) 50% of the total amount of Revolving Loans outstanding, or (III) the sum of (aa) the lesser of (i) 50% of eligible finished goods inventory or (ii) 85% of the appraised net orderly liquidation value of finished goods inventory, in each case that Lender, in its sole discretion, deems eligible for borrowing purposes, plus (bb) during the period from November through February of each calendar year, so long as Lender has received an Appraisal (as hereafter defined) acceptable to Lender in its sole discretion, no more than 45 days prior thereto, the lesser of (X) $1,500,000 and (Y) the lesser of (i) 50% of the inventory consisting of fruit juice or (ii) 85% of the net orderly liquidation value of inventory consisting of fruit juice, in each case that Lender, in its sole discretion, deems eligible for borrowing purposes, <u>minus</u> (C) reserves that Lender may impose from time to time in its discretion (including without limitation, reserves for past due account payables owing to suppliers subject to the Perishable Agricultural Commodities Act) (the "**Borrowing Base**").

&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) Borrowers shall execute and deliver to Lender, by way of electronic transmission, schedules of all of its accounts receivable in form and substance satisfactory to Lender and if required by Lender (i) copies of Borrowers' invoices to customer in respect thereof or the equivalent thereof, (ii) conclusive evidence of delivery for all goods sold, and (iii) all other information or documents as Lender may request. Eligibility of accounts receivable shall be determined by Lender, in its sole discretion, and shall exclude, among other things, (i) accounts receivable past due more than ninety (90) days past the original invoice date, (ii) foreign accounts receivable other than accounts receivable arising from sales to Canadian customers, (iii) crossaged accounts receivable, i.e. where more than twenty-five percent (25%) of the accounts receivable of any account debtor are past due more than ninety (90) days past the original invoice date, (iv) accounts receivable arising from sales to any Borrower's affiliates, and (v) accounts receivable subject to any offset, deduction, defense, dispute, credits or counterclaim or the customer is also a creditor or supplier of any Borrower. For the avoidance of doubt, finished goods inventory that is eligible shall consist of (a) bottled labeled wine not older than the most recent two vintage years, (b) bottled labeled non-vintage-year wine, and (c) wine based cocktails packaged in a container, not older than eighteen (18) months, in each case of (a), (b) and (c), located at locations in the continental United States of America subject to a collateral access agreement acceptable to Lender or otherwise deemed eligible by Lender and juice inventory located at locations in the continental United States of America subject to a collateral access agreement acceptable to Lender or otherwise deemed eligible by Lender. Any eligible inventory shall not be slow moving, obsolete, unmerchantable, defective, used, unfit for sale, not saleable at the cost of goods of such inventory, or unacceptable due to age, type, category and/or quantity or if it consists of gift cards, work-in-process, spare or replacement parts, subassemblies, packaging and shipping material, manufacturing supplies, samples, prototypes, displays or display items, bill-and-hold or ship-in-place goods, goods that are returned or marked for return, repossessed goods, defective or damaged goods, goods held on consignment, goods which are not of a type held for sale in the ordinary course of business, and any other goods that the Lender deems ineligible in its sole discretion

&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) The sum of the aggregate outstanding principal amount of all Revolving Loans shall not exceed the lesser of (i) the Maximum Credit and (ii) the Borrowing Base. Notwithstanding the foregoing, in the event that aggregate outstanding principal amount of all Revolving Loans exceeds the lesser of (i) the Maximum Credit and (ii) the Borrowing Base, then Borrowers shall, immediately and without notice or demand, pay the amount of such excess to the Lender.

&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) Except as herein otherwise provided, all Revolving Loans made to or for the Borrowers, including for the purposes of paying compensation and reimbursable expenses which have not otherwise been paid, shall be repayable on demand. However, the Lender agrees it will not demand repayment and will permit the Revolving Loans to be repaid from the collection of accounts receivable absent an Event of Default or prior to the termination of this Loan and Security Agreement. Upon the occurrence of an Event of Default or the termination of this Loan and Security Agreement, all of the Obligations of the Borrowers to the Lender shall, at the option of the Lender, be immediately due and payable in full.

&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) All compensation and expense for which the Lender is entitled to be reimbursed hereunder shall be charged by the Lender to the Borrowers' account monthly pursuant to the Lender's statements therefore. The Lender shall make its statement of Borrowers' account available by mail or online at the Lender's option at the close of each month. Borrowers agree to view such statement online each month at https://ereports.merchantfin.com/ by using its assigned log in and password. The Lender's monthly statement shall be considered correct and accepted by the Borrowers and conclusively binding upon the Borrowers, unless the Borrowers notify the Lender in writing of its exceptions thereto within forty-five (45) days of the last day of each month.

&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) The proceeds of the Revolving Loans shall be used by Borrowers for working capital and general corporate purposes. Without limiting the generality of the foregoing, Borrowers do not intend to use nor shall Borrowers use any portion of the proceeds of the Revolving Loans, directly or indirectly, for any purpose in violation of any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest and Fees</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>Interest</u>. All Revolving Loans shall bear interest at a per annum rate equal to the greater of (i) 12% and (ii) Prime Rate plus 3.75% per annum. For purposes of calculating interest due to the Lender, credit will be given to collections on the fifth business day after receipt, or if later, the day Lender is given irrevocable credit at its own bank for any items deposited by it "for collection" (the "**Settlement Date**"). The "**Prime Rate**" means the prime commercial interest rate as published in the Money Rates column of The Wall Street Journal (Eastern Edition); provided if the Money Rates column of The Wall Street Journal ceases to be published or otherwise does not designate a "prime rate" for any reason, Lender may use a similar published prime rate. Whenever the Prime Rate is changed, an equal change shall be made in the interest rate simultaneously with such change in the Prime Rate. If more than one such Prime Rate is published, the highest Prime Rate shall be applicable. From the date of occurrence of any Event of Default until the earlier of the date upon which (i) all Obligations shall have been paid and satisfied in full or (ii) such Event of Default shall have been waived, the applicable interest rate shall be increased by 3% per annum (such increased rate, the "**Default Rate**"). Interest shall be accrued daily and payable monthly in arrears on the first day of each month.

&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>Facility Fees</u>. In consideration of Lender's agreement to extend financial accommodations to Borrowers hereunder, Borrowers agree to pay Lender an initial facility fee in the amount of Eighty Thousand Dollars ($80,000.00) which shall be paid to Lender upon the signing of this Loan and Security Agreement. On each renewal date Borrowers shall pay Lender a facility fee in an amount equal to one percent (1.00%) of the then Maximum Credit (the "**Facility Fee**"), which will be charged to the Borrowers' loan account on or about such renewal date. All facility fees are non-refundable and fully earned as of the date charged.

&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>Minimum Annual Charges</u>. In the event that the Facility Fee and the standard (non-default) interest earned consisting of the spread above the Prime Rate (the "**Lender Charges**") are less than One Hundred Twenty Thousand Dollars ($120,000.00) (the "**Minimum Annual Charge**") in any contract year, the difference between the Lender Charges for such contract year and the Minimum Annual Charge will be charged to the Borrowers' loan account on an annual basis.

&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>Collateral Monitoring Fee</u>. A collateral monitoring fee in the amount of $1,000.00 per month will be charged to the Borrowers' loan account on the last day of each month.

&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>Overadvance Interest and Fees</u>. If the Revolving Loans exceed the lesser of (i) the Maximum Credit and (ii) the Borrowing Base at any time (such excess, an "**Overadvance**"), the Borrowers shall pay Lender, as additional compensation on such Overadvance, interest at two percent (2%) per annum over the interest rate set out in clause (a) above, plus a fee of one percent (1%) of the maximum amount of Overadvances existing during any calendar month. If governing law shall prohibit the foregoing charge, the Borrowers shall pay Lender, as additional compensation, the maximum additional interest permitted by law.

&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>Intentionally Omitted</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;(g) <u>Maximum Compensation</u>. Lender's compensation shall be payable with respect to the daily cash balance owing Lender so long as any such balance exists, even after the maturity of the Borrowers' Obligations to Lender. Upon the occurrence of an Event of Default hereunder, the minimum compensation for each quarter between the date of such Event of Default and the date this Loan and Security Agreement would expire but for the occurrence of such Event of Default shall become immediately due and payable. Lender shall not charge for compensation which, under the circumstances existing at the time, shall constitute a violation of the maximum permissible charge to a company for the loan or forbearance of money under applicable law. Provided any such law would not thereby be violated, the compensation payable for any prior or subsequent quarter hereunder may be increased to absorb, in whole or in part, the difference between the charges computed hereunder without reference to such law. The bona fide tender of a refund of any charges erroneously made in violation of applicable law shall be a full release of Lender.

&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>Interest Calculation</u>. All calculations of interest and fees hereunder shall be made by the Lender on the basis of a year of 360 days for the actual number of days elapsed in the period for which such interest or fees are payable. Each determination by the Lender of an interest rate, fee or other payment hereunder shall be conclusive and binding for all purposes, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Security</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>Grant of Security Interest</u>. As security for the full and prompt payment and performance of any and all Obligations (as hereinafter defined), each Borrower, as debtor, hereby assigns, transfers and grants to Lender, as secured party, a continuing lien on and security interest in the Collateral (as hereinafter defined).

&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>Nature of Security Interest and Obligations</u>. The foregoing grant is made for the benefit of Lender and/or any others having a participation or other interest in any of the Obligations, in such proportions as Lender shall in its sole discretion determine. It is the true, clear, and express intention of Borrowers that the continuing grant of this security interest, and the Collateral covered hereby, remain as security for the full and prompt payment and performance of the Obligations, whether now existing or which may hereinafter be incurred by future advances otherwise and whether or not any of such Obligations is related to a transaction out of which any other Obligations arose, by class, or kind, or whether or not contemplated by the parties at the time of the granting of this security interest. Notice of the continuing grant of this security interest shall not be required to be stated on the face of any document representing any of such Obligations, nor otherwise identified as being secured hereby; and if any of such Obligations shall remain or become that of less than all of the Borrowers herein (if more than one), any Borrower not liable therefor hereby expressly hypothecates his, her, its, or their ownership interest in the Collateral to the extent required to satisfy any of said Obligations, without restriction, or limitation.

&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>Obligations Secured</u>. The term "**Obligations**" shall include all liabilities, loans, advances, debts, obligations, covenants and duties of any kind or nature owing by Borrowers to Lender which may be evidenced by, or otherwise arise under or in connection with, one or more loan, credit or letter agreements, promissory notes, reimbursement agreements, or any other agreements and documents executed and/or delivered to Lender in connection with the Credit Facility, (as each may be amended, modified, extended or renewed from time to time, the "**Loan Documents**"), whether direct or indirect, absolute or contingent, joint, several or independent, secured or unsecured, liquidated or unliquidated, contractual or tortious now or hereafter existing, due or to become due to, or held or to be held by, Lender for its own account or as agent for another or others, whether created directly or acquired by assignment or otherwise, whether or not (a) evidenced by any note, guaranty or other instrument, (b) arising under any agreement, instrument or document, (c) for the payment of money, (d) arising by reason of an extension of credit, opening of a letter of credit, loan, banker's acceptance, equipment lease or guarantee, or (e) arising from any amendments, extensions, renewals and increases of or to any of the foregoing, and all costs and expenses of Lender incurred in the documentation, negotiation, modification, enforcement, collection and otherwise in connection with any of the foregoing, including attorneys' fees and expenses.

&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>Collateral</u>. The term "**Collateral**" as used herein means all of Borrowers' right, title and interest in the following, wherever located and whether now owned or existing or hereafter acquired or created and all proceeds thereof:

All personal property of each Borrower, including without limitation all (a) accounts (including, without limitation, health-care-insurance receivables, accounts receivable and credit card receivables), (b) goods, including equipment, machinery, vehicles, rolling stock, furniture and fixtures, (c) chattel paper (whether tangible or electronic), (d) inventory (including raw materials, work in process, or materials used or consumed in such Borrower's business, items held for sale or lease or furnished or to be furnished under contracts of service, sale or lease, and goods that are returned, reclaimed or repossessed), (e) general intangibles of every kind and nature, including without limitation licenses, domain names, websites, intellectual property, patents, trademarks and copyrights, and payment intangibles, (f) instruments (including promissory notes), (g) documents (including warehouse receipts), (h) deposit accounts and bank accounts of any nature, (i) investment property (including securities entitlements, securities accounts, commodity accounts, and commodity contracts), (j) letters of credit and letter-of-credit rights, (k) supporting obligations, (l) commercial tort claims, (m) farm products, (n) property now or hereafter in Lender's control or possession (or in transit to or from, or under the custody or control of, Lender or any affiliate thereof), (o) books and records; and (p) with respect to all of the foregoing, all property relating thereto, including, without limitation, insurance proceeds, all software, computer programs, computer records, books and records, and all additions and accessions thereto, replacements thereof and substitutions therefor, and the products and proceeds thereof (including cash and non-cash proceeds), investments therein, income, rents, profits, benefits thereof or therefrom, including all cash and cash equivalents.

Notwithstanding the foregoing, Collateral shall not include (a) nonassignable licenses or contracts, which by their terms require the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, Sections 9406, 9407 and 9408 of the UCC) or pledged equity interest, if a pledge of such equity interests would be prohibited or void or would require the consent of or waiver by the applicable third party, provided further, that upon the lapse of such prohibition or such consent or waiver being provided with respect to any license or contract, such license, contract or equity interests shall automatically be included in the Collateral, (b) any property which is subject to a capital lease, purchase money lien or similar equipment financing permitted under this Agreement, but only to the extent and for al long as a line in favor of Leeder would be prohibit by the terms of the related equipment financing agreement or would result in a termination thereof, and provided further, that upon the termination of such prohibition, such property shall automatically be deemed included in the Collateral, (c) any trademark application filed on an "intent to use" basis until the earlier of the filing of a statement of use with respect therteo or the issuance of a registration therefor, and (d) Excluded Accounts (as defined below). In addition, in the event any change in the U.S. tax laws would cause a pledge of some or all of the outstanding equity interest of a foreign subsidiary of Borrower to result in adverse tax consequences to the Borrower (as reasonable determined by the Borrower), the Collateral shall automatically and without further action required by and without notice, any person exclude such equity interests of such foreign subsidiary in excess of the maximum percentage of the outstanding equity interests of such foreign subsidiary that may be pledged without causing such adverse tax consequences. Excluded Accounts means (i) deposit accounts established in the ordinary course of business and used exclusively for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of the employees of the Borrowers, (ii) deposit accounts used exclusively as escrow, fiduciary, withholding, tax payment or trust account, (iii) deposit accounts used exclusively to maintain cash subject to a lien permitted pursuant to the defined term "Permitted Liens", and (iv) deposit accounts subject to a zero dollar balance.

All terms, unless otherwise defined in this Loan and Security Agreement or in any financing statement, shall have the definitions set forth in the Uniform Commercial Code as adopted and enacted and in effect from time to time in the State of New York (the "**UCC**"); provided that terms used herein which are defined in the UCC on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute, except (i) with respect to any modification or amendment to the definition of any category or type of collateral, which modification or amendment will apply automatically to such term as used in this Loan and Security Agreement as of the date thereof, and (ii) as Lender may otherwise determine.

&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>Perfection; Further Assurances</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Borrower hereby grants Lender the right, and irrevocably authorizes Lender, in Lender's sole discretion, to file, in form satisfactory to Lender, one or more financing statements, amendments thereto and continuations thereof (with, or, to the extent permitted by law, without the signature of such Borrower) under the UCC naming such Borrower as debtor and Lender as secured party and indicating therein the types or describing the items of Collateral herein specified, in all jurisdictions in which such filing is deemed by Lender to be necessary or desirable in order to perfect, preserve and protect its security interests in the Collateral. Such financing statements may describe the Collateral as "all personal property" or "all assets" or similar language. Each Borrower agrees to provide to Lender from time to time promptly upon request any information requested by Lender so that Lender can take any such action. Each Borrower hereby ratifies and confirms any of the foregoing actions taken by Lender. If required by Lender, each Borrower will execute, file and record any, notices, affidavits or other documents and take all such other actions as Lender may deem appropriate to protect or perfect its security interest in the Collateral or to otherwise accomplish the purposes of this Loan and Security Agreement. Each Borrower hereby agrees to pay on demand, and/or authorizes Lender to charge its account with the cost of, any and all preparation, filing, recording and other fees and expenses which Lender deems appropriate in order to protect or perfect its security interest in the Collateral or to otherwise accomplish the purposes of this Loan and Security Agreement, including without limitation the cost of all searches of public records as Lender in its sole discretion shall require. Notwithstanding the foregoing, Lender shall have no obligation to comply with any recording, rerecording, filing, re-filing, or other legal requirements necessary to establish or maintain the validity, priority or enforceability of, or Lender's right in or to, the Collateral or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) At the request of Lender, each Borrower will, at its own cost and expense, cause such liens and security interests as are governed by laws other than the UCC to be perfected and to continue to be perfected so long as the Obligations or any portion thereof is outstanding and unpaid or any commitment to lend by Lender with respect to the Obligations remains in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Immediately upon any Borrower's receipt of any portion of the Collateral which itself, or the ownership of which, is or becomes evidenced by an agreement, instrument, document or other writing (including but not limited to promissory notes, documents of title, trade acceptances and warehouse receipts), such Borrower shall deliver the original thereof to Lender, together with appropriate endorsements or other specific evidence, in form and substance reasonably acceptable to Lender, of the assignment thereof to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Borrower shall at any time and from time to time, take such steps as Lender may reasonably request for Lender to obtain an acknowledgement, in form and substance satisfactory to Lender, of any bailee or any other person having possession of any of the Collateral that the bailee or such other person holds such Collateral for Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Borrower further covenants and agrees that, if any Collateral consists of letter of credit rights, electronic chattel paper, deposit accounts or supporting obligations not maintained with Lender or one of its affiliates, or any securities entitlement, securities account, commodities account, commodities contract or other investment property, or otherwise is subject to perfection by "control" (within the appropriate meaning pursuant to the UCC) with a financial intermediary, financial institution or otherwise, Each Borrower shall take all necessary steps as Lender may request to achieve and maintain control of such Collateral in Lender's favor. Without limitation of the foregoing, each Borrower shall execute, and shall cause any depository institution or securities intermediary upon whose books and records the ownership interest of such Borrower in such Collateral appears, to execute such pledge agreements, notification and control agreements or other agreements as Lender deems necessary in order to perfect, prioritize and protect its security interest in such Collateral, in each case in a form satisfactory to Lender. Each Borrower shall, upon receipt of notice of termination of any such control agreement entered into between such Borrower, Lender and a depository institution or securities intermediary (the "**Control Agreement**"), or notice of the closing of any account which is the subject of such Control Agreement, cause the possessory Collateral which is the subject of such Control Agreement to be moved to another depository institution or securities intermediary subject to a new or amended control agreement, in a form satisfactory to Lender, executed by such Borrower and such other depository institution or securities intermediary, and delivered to Lender no later than ten (10) days before the scheduled termination date of the Control 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;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each Borrower hereby grants Lender the right, in its sole discretion, at any time, (i) to transfer to or register in the name of itself or any of its nominees any of the Collateral, and whether or not so transferred or registered, to receive the income and dividends thereon, including stock dividends and rights to subscribe, and to hold the same as a part of the Collateral and/or apply the same as hereinafter provided; (ii) to exchange any of the Collateral for other property upon any reorganization, recapitalization, or other readjustment and in connection therewith to deposit any of the Collateral with any committee or depositary upon such terms as Lender may determine; (iii) in any bankruptcy or similar proceeding to file a proof of claim for the full amount of the Collateral and to vote such claim for or against any arrangement or with respect to any other matter; (iv) to contest, pay and/or discharge all liens, encumbrances, taxes or assessments on, or claims, actions or demands against, any of the Collateral and to take all actions and proceedings in its own name or in the name of such Borrower or any other appropriate person in order to remove or contest such liens, encumbrances, taxes, assessments, claims, actions or demands; or (v) to refrain from doing any of the foregoing, all without affecting the Obligations and the Collateral and without notice or liability to, or the consent of such Borrower except to account for property actually received by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If any Borrower, as registered holder of any of the Collateral, shall receive any stock certificate, option or right, whether as an addition to, or in substitution or exchange for, any Collateral, or otherwise, such Borrower agrees to accept the same as Lender's agent and to hold the same in trust for Lender, and to forthwith deliver the same to Lender in the exact form received, with such Borrower's endorsement thereof if requested by Lender, to be held by Lender as part of the Collateral. Each Borrower hereby assigns to Lender all of such Borrower's rights (but none of its obligations) in, to and under all collateral, guarantees, subordinations and other rights and benefits now or hereafter received by such Borrower with respect to the Collateral and agrees to deliver to Lender, upon demand, all agreements, instruments and or documents evidencing same, endorsed and/or accompanied by instruments of assignment and transfer, in such form and containing such terms as Lender may 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) If any Borrower shall at any time, acquire a commercial tort claim with a value in excess of $100,000, as defined in the UCC, such Borrower shall immediately notify Lender in a writing signed by such Borrower of the brief details thereof and shall grant to Lender in such writing a security interest therein and in all proceeds thereof, all of which shall be upon and subject to the terms of this Loan and Security Agreement, with such writing to be in form and substance satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the possession at any time of any of the Collateral by Lender, whether on its own behalf or on behalf of others, Borrowers shall remain jointly and severally liable for the payment in full of the Obligations. Each Borrower assumes all liability and responsibility for the Collateral, and the obligation of Borrowers to pay the Obligations shall in no way be affected or diminished by reason of the fact that any of the Collateral may be lost, destroyed, stolen, damaged or for any other reason whatsoever unavailable to Borrowers or that the value of the Collateral shall be diminished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Borrower does hereby make, constitute and appoint any officer or agent of Lender as such Borrower's true and lawful attorney in fact, with power to (i) file any claim, and or do any and all things and take any other action or proceedings, either in its own name or in the name of such Borrower or otherwise, alone or jointly, which Lender may deem necessary or advisable to carry out the intent of this Loan and Security Agreement; (ii) endorse the name of such Borrower or any of such Borrower's officers or agents upon agreements, applications, notes, checks, drafts, money orders, invoices, bills of lading, communication relating to any account receivable, or other instruments of payment or Collateral that may come into the possession of Lender in full or part payment of any amounts owing to Lender; (iii) perform verifications of accounts receivable; (iv) request and receive from Borrowers' accountants all information pertaining to such Borrower; or (v) otherwise perfect a security interest in the Collateral, and granting to such Borrower's said attorney full power to do any and all things necessary to be done in and about the premises as fully and effectually as such Borrower might or could do, including the right to sue for, compromise, settle and release all claims and disputes with respect to, the Collateral. Each Borrower hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest, and is irrevocable. Each Borrower acknowledges and agrees that the power of attorney herein granted is for the benefit of Lender and does not require Lender to act for the benefit of any Borrower as principal; and the power of attorney herein granted is not intended to make Lender a fiduciary for any Borrower. Lender hereby accepts this power of attorney and all powers granted hereunder for the benefit of Lender. Each Borrower hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this subsection is irrevocable and coupled with an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Conditions Precedent</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) It shall be a condition precedent to making the initial Revolving Loan that the Lender receive such documentation as it may request, including without limitation, the following, each in form and substance satisfactory to the Lender in all respects: (1) this Loan and Security Agreement duly executed by the Borrowers, (2) Validity Guarantees executed by Andrew Kim and Mark T. Lynn (the "**Individual Guarantors**") in favor of the Lender, (3) Corporate Guarantees and Guarantor Security Agreements executed by Amass Brands Inc., Project Crush Acquisition Corp LLC, Project Crush Wholesale Sub LLC and Project Crush DTC Sub, LLC (the "**Corporate Guarantors**" and together with the Individual Guarantors, the "**Guarantors**") in favor of the Lender, (4) a resolution by each Borrower's Board of Directors approving and authorizing the execution, delivery and performance of the Loan Documents (as defined below) and any transaction contemplated thereby as well as the incumbency and signatures of those authorized to sign and act with respect to the Loan Documents, (5) collateral access agreements with respect to all of Borrowers' locations, (6) a subordination and intercreditor agreement, in ofrm and substance acceptable to Lender with any party that has a lien on the Borrower's assets, (7) such other collateral and security documents designed to create and perfect the Lender's security interest in certain assets of Borrowers and any other documents or instruments related thereto as reasonably required by the Lender and its counsel, (8) cooperation agreement executed by the Individual Guarantors in favor of the Lender, (9) evidence that all licenses, authorizations, waivers and permits required for the ownership, storage, sale and distribution of all alcohol owned by the Borrowers (the "**Required Liquor Licenses**") for all states in which the Borrowers operate and (10) any other documents as the Lender may require. The items referred to above in this Section 4(a) as well as any documents hereafter executed by the Borrowers in favor of the Lender in connection with the Credit Facility shall be referred to herein as the "**Loan 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;(b) It shall be a further condition precedent to any Revolving Loan that on the date of such Revolving Loan (the "**Credit Extension Date**"), that (1) the representations and warranties contained in the Loan Documents are true and accurate in all respects on and as of such date, and (2) no Event of Default or other breach under any Loan Document has occurred and is continuing or would result from such Revolving Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties</u> 

In order to induce the Lender to enter into this Loan and Security Agreement and to make available the Credit Facility provided for herein, each Borrower makes the following representations to the Lender, all of which shall survive the execution and delivery of the Loan 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;(a) <u>Organization</u>. Its type of organization, jurisdiction of organization, registration number and chief executive office are as set forth on Exhibit A attached hereto and made a part hereof, and are true and correct on the date hereof, and it will provide Lender at least thirty (30) days prior written notice of any change in any of the foregoing.

&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>Good Standing and Due Qualification</u>. It (i) is an entity duly organized, validly existing and in good standing under the laws of the state of its jurisdiction of organization, (ii) is duly qualified, authorized to do business and in good standing in each jurisdiction where it is engaged in business except where failure to be so qualified would reasonably be expected to result in a material adverse effect on the its operations and (iii) has the full power, authority and legal right to own its assets and conduct its business as it is now being conducted.

&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>Legal Name and Address</u>. Its legal name is exactly as set forth above in the address to this Loan and Security Agreement, and it has not in the past five years changed its legal name or been known by any other name, been party to a merger, consolidation or other change in structure, changed or had its registration number in its state of organization changed, except as may be set forth on Exhibit A hereto.

&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>Corporate Power and Authority, Enforceability, No Conflict</u>. (i) It has the requisite power and authority to execute, deliver and carry out the terms of the Loan Documents and has taken all necessary company action to authorize the execution, delivery and performance of the Loan Documents, (ii) each of the Loan Documents constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that enforceability of any such Loan Document may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally or limiting the right of specific performance, and (iii) the execution and delivery of, the performance of its Obligations under, and compliance with the provisions of the Loan Documents by such Borrower will not: (A) contravene any existing applicable law, statute, rule or regulation or any judgment decree or permit to which it is subject, the contravention of which would have a material adverse effect on the its operations; (B) conflict with, or result in any breach of any of the terms of, or constitute a default under, any material agreement or other instrument to which it is a party or is subject or by which it or any of its property is bound; (C) contravene or conflict with any provisions of the its Articles of Organization and Operating Agreement; or (D) result in the creation or imposition of, or oblige it or any of its subsidiaries to create, any lien or encumbrance on its or its subsidiaries' assets, rights or revenues, except as provided for in the Loan 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;(f) <u>Location of Collateral</u>. The location of all Collateral owned by each Borrower is as shown on Exhibit A hereto, and each Borrower's records concerning the Collateral are kept only at such location(s).

&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>Accounts Receivable</u>. At the time any Borrower notifies Lender of the existence of any account receivable, such account receivable shall be good and valid, representing an undisputed bona fide indebtedness incurred by the customer named therein for merchandise theretofore delivered pursuant to a contract of sale or lease or for services thereto fore performed by such Borrower with or for said customer; no agreement under which any deduction or discount may be acquired shall have been made with such customer except as indicated in the written "schedule" invoice furnished to Lender concurrently with such Borrower's notifying Lender of the existence of the account receivable; and the net amount so derived from each account receivable shall have been paid in full at its maturity as expressed in the invoices evidencing such account receivable and the schedule pertaining thereto.

&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>Deposit Accounts</u>. All deposit accounts of each Borrower as of the Effective Date are set forth on Exhibit 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;(i) <u>Litigation</u>. No litigation arbitration or administrative proceeding is pending or, to the knowledge of any Borrower and its respective officers, threatened against any Borrower or any other person affiliated with any Borrower, which could have a material adverse effect on the business, assets or financial condition of the Borrower or of any other person affiliated with any Borrower.

&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>Disputes</u>. There is not in existence nor to any Borrower's knowledge is there likely to occur any dispute with any governmental or other authority or any other dispute of any kind which in any such case, may materially adversely affect it or its business or 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;(k) <u>Undisclosed Obligations</u>. Except as disclosed to the Lender and listed on Schedule 5(k) and for Permitted Indebtedness, Borrowers are not materially indebted or subject to any material obligation towards any third party, as debtor, or as guarantor. As used herein, "**<u>Permitted Indebtedness</u>**" means with respect to any Borrower, (i) Borrower's indebtedness to Lender under the Loan Documents, (ii) subordinated debt subject to a subordination agreement in form and substance acceptable to Lender, (iii) unsecured Indebtedness to trade creditors incurred in the ordinary course of business, (iv) indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business, (v) indebtedness owed to any party providing workers' compensation, health, disability or other employee benefits pursuant to reimbursement or indemnification obligations to such party, in each case in the ordinary course of business, (vi) indebtedness in connection with Borrower's corporate credit cards, (vii) other unsecured indebtedness in an amount not to exceed $100,000 in the aggregate, and (viii) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (i) through (viii) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower.

&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>Immunity</u>. To the knowledge of the Borrowers, neither the Borrowers nor any of their assets is entitled to immunity on the grounds of sovereignty or otherwise from any legal action or proceeding (which shall include, without limitation, suit, attachment prior to judgment, execution or other enforcement).

&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) <u>Consents, Approvals</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Every consent, authorization, license or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required by any Borrower to authorize, or required by any Borrower in connection with the execution, delivery, validity, enforceability or admissibility in evidence of the Loan Documents or the performance by any Borrower of its obligations under the Loan Documents has been obtained or made and is in full force and effect and there has been no default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) (A) Schedule 5(m) attached hereto contains a true, accurate and complete list of all of the Required Liquor Licenses, (B) each Required Liquor License was duly and validly issued by the appropriate governmental agency pursuant to procedures which comply with all requirements of applicable law, (C) no event or circumstance exists which is likely to lead to the revocation of any Required Liquor License, (D) each Required Liquor License is in full force and effect and does not conflict with the valid rights of others, (E) no investigation, notice of apparent liability, violation, forfeiture or other order or complaint has been issued by or before any court or regulatory body, which could in any manner threaten or adversely affect the validity or continued effectiveness of the Required Liquor Licenses or give rise to any order of forfeiture, (F) no Borrower has any reason believe that any of the Required Liquor Licenses will not be renewed in the ordinary course, and (G) each Borrower (and each prior holder of any Required Liquor License) has filed in a timely manner all material reports, applications, documents, instruments and information required to be filed by it pursuant to applicable rules and regulations or requests of every regulatory body having jurisdiction over any Required Liquor Licenses.

&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) <u>Financial Condition</u>. All balance sheets, earnings statements and other financial data which have been or may hereafter be furnished to Lender, do or shall fairly represent the financial condition of the Borrowers as of the dates, and the results of its operations for the periods for which the same are furnished; all other information heretofore furnished to Lender is, and all information hereafter furnished to Lender shall be accurate and correct in all material respects and not fail to disclose any fact necessary to make the information furnished not misleading.

&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) <u>Investment Company</u>. No Borrower is an "investment company" or a company controlled by an "investment company", within the meaning of the Investment Company Act of 1940, as amended. No Borrower is subject to regulation under any federal or state statute or regulations that limit its ability to incur any indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Margin Stock.</u> No Borrower is engaged principally in the business of extending credit for the purpose of purchasing or carrying any "Margin Stock" as defined in Regulation U, and no part of the proceeds of any extension of credit hereunder will be used in a manner that would result in the extensions of credit being deemed to be a "purpose credit" under Regulation U of the Federal Reserve Board, as the same may at any time be amended or modified and in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Default</u>. No Borrower is, nor would it be with the giving of notice or lapse of time, in breach of or in default under any agreement relating to indebtedness to which it is a party or by which it may be bound or under any material agreement binding upon it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Reporting Requirements.</u> 

Each Borrower, and by signing below each Guarantor hereby agree that, so long as the Credit Facility remains in effect and any amount is due and owing to Lender thereunder, they shall submit to the following reporting requirements:

&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>Annual Financial Statements</u>. As soon as available, but not later than one-hundred fifty (150) days after the end of each fiscal year, beginning with the fiscal year ended December 31, 2023, (A) the Borrowers' annual reviewed consolidated and consolidating financial statements for or as of such fiscal year, prepared in accordance with generally accepted accounting principles and reviewed by certified public accountants acceptable to Lender (it being understood that DBB McKennon is acceptable to Lender); (B) a comparison in reasonable detail to the prior year's reviewed Financial Statements; and (C) upon Lender's request, a management letter and a statement indicating that the Auditors have not obtained knowledge of the existence of any Event of Default during their 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;(b) <u>Corporate Federal Tax Return</u>. As soon as available but no later than 30 days from filing, a copy of Borrowers' federal tax return.

&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>Monthly Financial Statements</u>. As soon as available, but not later than thirty (30) days after the end of each fiscal month, commencing with the end of the fiscal month following the Effective Date, (A) the Borrowers' compiled interim consolidated financial statements as at the end of such fiscal month, on an individual basis with respect to each of the Borrowers and their affiliates, and (B) a certification by the Representative Borrower's chief financial officer that such financial statements have been prepared in accordance with GAAP and are fairly stated in all material respects (subject to normal year-end audit adjustments).

&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>Projections</u>. (i) Not later than sixty (60) days before the end of each fiscal year of the Borrowers and (ii) within sixty (60) days of any renewal date, the business plan of the Borrowers, in form and substance acceptable to Lender, certified by the Representative Borrower's chief financial officer for the 12-month period commencing with the following fiscal year.

&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>Agings</u>. Monthly, not later than the 10<sup>th</sup> day of each month, agings of each of the Borrower's accounts receivable and accounts payable, prepared on an invoice basis, in scope and detail satisfactory to the Lender, as of the last day of the preceding month, and certified by the Representative Borrower's chief financial officer.

&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>Inventory</u>. Twice each month, not later than (i) the 10th day of each month, a report of each of the Borrower's inventory as of the last day of the preceding month and (ii) the 25<sup>th</sup> day of each month, a report of each of the Borrower's inventory as of the 15<sup>th</sup> day of such month, each in form and substance acceptable to Lender, based upon a perpetual inventory, which shall describe such inventory by category (including by vintage year), item (in reasonable detail) and location.

&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>Guarantors' Financial Information.</u> The Guarantors shall furnish to the Lender as soon as practicable, but in any event (i) no later than sixty (60) days after the end of each calendar year and (ii) within sixty (60) days of any renewal date, personal financial statements of Guarantors in form and substance reasonably satisfactory to the Lender in all respects.

&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>Quarterly Financial Statements</u>. As soon as available, but not later than thirty (30) days after the end of each fiscal quarter, commencing with the end of the fiscal quarter following the Effective Date, (A) the Borrowers' compiled interim consolidated and consolidating financial statements as at the end of such fiscal quarter and (B) a certification by the Representative Borrower's chief financial officer that such financial statements have been prepared in accordance with GAAP and are fairly stated in all material respects (subject to normal year-end audit adjustments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Cash Management</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) Borrowers will cause all proceeds of Collateral arising from Borrowers' ecommerce and/or credit card sales to be deposited into a deposit account (the "Concentration Account") with a financial institution reasonably acceptable to the Lender (the "Concentration Account Bank"). Upon the Effective Date, each of the Borrowers, the Lender and the Concentration Account Bank shall enter into a tri-party deposit account control agreement directing said Concentration Account Bank to transfer all funds deposited in such deposit account to the Lender for application to the Obligations. The Lender does not assume any responsibility for any Concentration Account arrangement, including without limitation, any claim of accord and satisfaction or release with respect to deposits accepted by any bank thereunder. Each Borrower will notify account debtors with respect to all sales, other than ecommerce or credit card sales, that all payments on accounts shall be remitted to a lockbox controlled by Lender with the following payment instructions: by check be made to such Borrower at P.O. Box [\*\*\*] and by wire pursuant to the following wire instructions: [\*\*\*], for the account of Merchant Financial Corporation, account # [\*\*\*]. (the "Lockbox Account"). If any Borrower shall receive proceeds of Collateral including C.O.D. collections, it shall hold such proceeds in trust for Lender and turn over such proceeds to Lender in the form received. All amounts paid to the Lockbox Account, or otherwise collected or received by Lender for Borrowers' account, shall be credited to Borrowers' loan account for application to the Obligations. Until the Borrowers furnishes Lender with satisfactory evidence to the contrary, Lender shall be entitled to rely absolutely on any oral or written advice given to it or its designee by or on behalf of customer in determining the eligibility of accounts receivable or the occurrence of an Event of Default. From time -to -time Lender may confirm accounts receivable directly with customers. Borrowers agree to use their best efforts to grant Lender read-only, online access to its credit card and customer payment portals.

&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) Lender may, at its option, pay itself or others, or reserve for payment, any amount required to be paid by the Borrowers to cure or prevent a breach of any covenant or warranty contained herein, or in any note or other agreement made by any Borrower to Lender, or any apparent breach by reason of any Borrower's failure to furnish Lender with satisfactory evidence of such Borrower's having made such payment itself. Each amount so paid or reserved for payment by Lender shall be deemed a loan to the Borrowers and shall be added to the cash balance owing to Lender. Lender's making one or more such payments or establishing one or more such reserves shall not constitute its agreement to take any further or similar action on any other occasion or a waiver of any Event of Default by any Borrower.

&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 loans and credits shall be repayable, together with interest and charges, at the Lender's address set forth above or such other address as may be set forth in a note or other written notice by the Lender or agreement in a particular instance. Payments, other than cash and wire transfers, which shall be credited to the Borrowers on the date of receipt by Lender shall be credited to the Borrowers immediately for calculating the amount available to Borrowers for borrowing purposes, and as of the Settlement Date (as set forth in Section 2(a) hereof) for interest calculation purposes. Such credits shall be conditional upon final payment to Lender at its own office or bank in New York, NY, in cash or solvent credits of the items giving rise to them, and if any item is not so paid, the amount of any credit given for it shall be charged to the Borrowers whether or not the item is returned.

&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) No Borrower shall open any new deposit accounts unless (i) such Borrower shall have given at least thirty (30) days prior written notice to Lender and Lender has consented in writing, and (ii) Lender shall first have entered into an account control agreement in form and substance satisfactory to Lender sufficient to give Lender "control" (for purposes of Articles 8 and 9 of the Uniform Commercial Code) over such account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>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) Each Borrower shall (i) provide the Lender with such financial and other information concerning such Borrower and its affairs, as the Lender may from time to time reasonably require, (ii) promptly inform the Lender of any occurrence of which it becomes aware which might adversely affect its ability to perform its obligations under the Loan Documents and of any Event of Default under the Loan Documents forthwith upon becoming aware thereof, and (iii) promptly inform the Lender of any litigation threatened in writing or administrative or arbitration proceedings before or of any court, tribunal, arbitrator of other relevant authority materially affecting such Borrower or its assets which involves more than $75,000 individually or together with other pending threats or proceedings.

&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 Borrower shall (i) obtain or cause to be obtained, maintain in full force and effect and comply in all material respects with the conditions and restrictions (if any) imposed in, or in connection with, every material consent, authorization, material license (including all Required Liquor Licenses) or approval of governmental or public bodies or authorities or courts and do, or cause to be done, all other acts and things, which may from time to time be necessary or desirable under applicable law for the continued due performance of all its obligations under the Loan Documents; (ii) comply in all material respects with all applicable laws, rules, regulations and orders of any governmental agency having jurisdiction over such Borrower; (iii) pay to the appropriate governmental authorities when due, all federal, state, local and other taxes required to be paid or deposited by such Borrower, except that such Borrower may defer any such payment while such Borrower is diligently contesting the respective taxes in good faith by appropriate proceedings, but any such deferment shall not extend beyond the time when such unpaid taxes would become a lien upon any of such Borrower's assets. Each Borrower will furnish the Lender promptly at the Lender's request with evidence satisfactory to the Lender establishing payment of such taxes, assessments and contributions. In the Lender's discretion, the Lender shall have the right (but shall not be obligated) to pay any such tax, assessment or contribution (including any interest or penalties thereon) for such Borrower's benefit in the event such Borrower shall fail timely to do so; any such payment shall bear interest at the interest rate specified herein. Each Borrower shall, promptly on demand, reimburse the Lender for any such payment and any costs and expenses (including reasonable attorneys' fees) which the Lender may incur in connection therewith.

&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 Borrower will maintain its company existence and carry on its business in substantially the same manner and in substantially the same fields as such business is now carried on and maintained and shall not merge or consolidate with any other person or permit any change in the control or ownership structure of such Borrower.

&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) No Borrower shall sell, transfer, lend or otherwise dispose of or cease to exercise direct control over any part of its assets, undertakings or revenues which, in the opinion of the Lender, is material, except for (i) inventory in the ordinary course of business; (ii) of worn-out, surplus or obsolete equipment that is, in the reasonable judgment of such Borrower, no longer economically practicable to maintain or useful in the ordinary course of business of such Borrower; or (iii) any Borrower's use or transfer of money in a manner that is not prohibited by the terms of the Loan Documents; so long as the proceeds of such sale or transfer are remitted to the Lockbox Account.

&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) Neither the Borrowers nor any of its subsidiaries shall enter into any transaction with any of its affiliates, unless such transaction is on terms not materially less favorable to the Borrowers or to any such subsidiary than if the transaction had been negotiated in good faith on an arm's length basis with a non-affiliate.

&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) No Borrower shall declare or pay any dividends on or make any other distribution with respect to any equity interests without prior written consent of Lender, provided that so long as no Event of Default has occurred and is continuing or would result from such payment, Borrowers may make annual distributions in an amount not to exceed fifty percent (50%) of their net profits for the purpose of funding tax obligations of their members.

&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) Borrowers will immediately notify Lender of all cases of returns, rejection, repossession, loss or damage with respect to merchandise and any credit or adjustment granted or discount or offset taken with respect to an account receivable, which involves more than $40,000 individually or together with other returns from the customer obligated on such account receivable.

&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) Borrowers shall cooperate with Lender in perfecting all security interests granted herein and in obtaining such agreements from third parties as Lender deems necessary, proper or convenient in connection with the preservation, perfection or enforcement of any of its rights hereunder, including waivers from landlords, warehousemen, and mortgagees, and any other person having an interest in real estate where any Collateral is or is to be attached, installed or located.

&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) Borrowers shall pay when due all transportation, storage and warehousing charges affecting or arising out of the Collateral.

&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) Each Borrower shall (i) keep the Collateral in good order and repair at all times and immediately notify Lender of any event causing a material loss or decline in value of the Collateral, whether or not covered by insurance, and the amount of such loss or depreciation, (ii) not change the location of the Collateral or such Borrower's records concerning the Collateral without Lender's prior written consent, (iii) defend the Collateral against all claims and demands of all persons at any time claiming the same or any interest therein, (iv) not allow any third party to gain control of all or any part of the Collateral, and not use any portion of the Collateral in any manner inconsistent with this Loan and Security Agreement or with the terms of any policy of insurance thereon and (v) not allow any part of the Collateral to be or become an accession to other goods not covered by this Loan and Security 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;(l) In the event of any partial or complete loss or destruction of any of the Collateral by any means, each Borrower shall, at its own expense, cause such repairs to be made as Lender may deem appropriate for its protection or, at the option of Lender, replace such Collateral with new Collateral having a value equal to the value of the lost or destroyed Collateral prior to such loss or destruction. Each Borrower agrees, at its own expense, to keep all insurable Collateral insured against loss or damage by fire, theft, sprinkler leakage or any other risk to which the Collateral may be subject (including without limitation risk of flood if any Collateral is maintained at a location in a flood hazard zone, and such other risks and hazards as Lender may specify), for the full insurable value thereof, under policies and with insurers acceptable to Lender, which policies shall contain a standard Lender's Loss Payable Clause issued in favor of Lender under which all losses thereunder shall be payable to Lender as Lender's interests may appear. Such policies shall expressly provide for at least thirty (30) days prior written notice to Lender of any intended cancellation or modification of the policy, and shall insure Lender notwithstanding the act or neglect of any Borrower. Each Borrower will deliver to Lender on request duplicate copies of policies and certificates of such insurance with evidence of payment of the premium thereon. If any Borrower fails to provide or maintain said insurance, then, in addition to any other right or remedy that Lender may have and without waiving the consequences of such default, Lender may but need not obtain and maintain said insurance, at the sole expense of Borrowers, which expense shall be deemed an Obligation and shall be payable to Lender on demand. Lender is irrevocably authorized to file claims and shall have the sole right to adjust, settle and collect claims under said insurance by such means, at such times, on such terms and in the name of Lender or Borrowers, as Lender may see fit and in the name and on behalf of Borrowers to execute releases and endorse checks or drafts payable in respect of any such insurance claims. All sums received by Lender from any such insurance may be applied by Lender to repair or replace Collateral, held as part of the Collateral and/or applied to reduce the Obligations, all in Lender's sole discretion.

&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) The Borrowers covenant that their combined Tangible Working Capital shall not be less than Seven Million Dollars ($7,000,000.00) at the end of each of Borrowers' fiscal quarters unless otherwise agreed to in writing by Lender. "Tangible Working Capital" is defined as current assets less current liabilities (including any Loans hereunder). Current assets include cash, cash equivalents, trade accounts receivables, and inventory other than accounts receivable and inventory that Lender, in its discretion, determines to be ineligible for inclusion in the calculation of Tangible Working Capital.

&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) The Borrowers covenant that their combined Tangible Net Worth shall be at least Seven Million Dollars ($7,000,000.00) at the end of each of Borrowers' fiscal quarters unless otherwise agreed to in writing by Lender. "Tangible Net Worth" is defined as shareholder's equity plus subordinated loans, if any; net of intangibles, goodwill, deferred costs, all amounts owing by related parties, and the value of accounts receivable and inventory that Lender, in its discretion, determines to be ineligible for inclusion in the calculation of Tangible Net Worth.

&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) Each Borrower shall (i) maintain books and records (including computer records and programs) of account pertaining to the assets, liabilities and financial transactions of the Borrowers and (ii) permit the Lender or one or more designees of Lender to perform such field examinations, collateral analysis, monitoring or such other business analysis ("Field Exams") or appraisals of Collateral ("Appraisals") as reasonably required by Lender and shall in connection therewith provide the Lender with access during normal business hours with reasonable prior notice (provided that after the occurrence and during the continuance of an Event of Default, the Lender shall be provided access at any time) to all facilities and all books and records of the Borrowers required by Lender to conduct such audits and appraisals. Lender may discuss the affairs, finances and business of the Borrowers with any officer, employee or director thereof or with the Borrowers' accountants, all of whom are hereby authorized to disclose to the Lender all financial statements, work papers, and other information relating to such affairs, finances or business. The Borrowers shall reimburse the Lender for the out-of-pocket costs and expenses of any such Field Exam. If the Lender's own employees are used, the Borrowers shall also pay such reasonable per diem allowance as the Lender may from time to time establish, or, if outside examiners or accountants are used, the Borrowers shall also pay the Lender such sum as the Lender may be obligated to pay as fees therefor. All such costs and expenses may be charged to the Borrowers' account. Notwithstanding anything to the contrary contained herein, absent an Event of Default, (i) no more than three (3) Field Exams shall be conducted during any one calendar year at Borrowers' expense and (ii) no more than one (1) full Appraisal and three (3) follow up "evaluations" with respect to finished goods inventory and one (1) full Appraisal with respect to inventory consisting of fruit juice shall be conducted during any one calendar year at Borrowers' expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Defaults</u>. The occurrence of any of the following shall constitute an "**<u>Event of Default</u>**" under this Loan and Security Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Borrower fails to pay, when due, any Obligation or to promptly remit to Lender, in kind, any payment received by any Borrower for any account receivable; (b) any statement, representation or warranty made by any Borrower or any Guarantor orally or in writing under or in connection with this Loan and Security Agreement or any Loan Documents shall be untrue, incorrect or misleading when made or during the period covered thereby; (c) any Borrower commits any breach or default in the performance of any covenant or other agreement in this Loan and Security Agreement or any Loan Documents; (d) any Borrower suspends or ceases operation of all or a material portion or line of such Borrower's business; (e) there shall be issued or filed against any Borrower or any guarantor any attachment, injunction, order, writ, or judgment affecting such Borrower or the Collateral that is not vacated, stayed, bonded, satisfied or otherwise removed within thirty (30) days after such issuance or filing; (f) any material portion of Collateral or other property of any Borrower or any Guarantor is taken or impaired through condemnation; (g) any Borrower or any of its senior management is or at any time has been criminally indicted or convicted for a felony offense under any state or federal law; (h) any Borrower or any Guarantor becomes insolvent, becomes unable to pay its debts as they mature, makes an assignment for the benefit of creditors, or if a receiver is appointed for any of the Collateral, or if a petition under any provision of Title 11 of the United States Code, as amended or modified from time to time, is filed by or against any Borrower or any Guarantor; (i) any Guarantor that is a natural person shall die or be declared incompetent; any Person that is a partner in a partnership or a member in a limited liability company that is a guarantor shall die (if such Person is a natural person) or withdraw from such partnership or limited liability company and in each case a is not replaced within thirty (30) days with someone acceptable to Lender; or the dissolution, merger or consolidation of any Borrower or any Guarantor that is a corporation or a limited liability company; (j) any Guarantor shall challenge the validity, enforceability or effectiveness of, terminate, seek or purport to seek, termination of such Guarantor's guaranty; (k) from and after the Effective Date, the sale, transfer, or exchange, either directly or indirectly, of more than twenty percent (20%) in the aggregate of the equity interests in any Borrower; (l) failure of Lender to have a perfected first priority security interest in any of the Collateral; (m) any event of default (which shall be continuing) with respect to any indebtedness of any Borrower to any other individual or entity if such default would enable said individual or entity to accelerate the maturity of such indebtedness; or (n) there exists or occurs any event or condition with respect to, or any change in the financial condition or affairs of, any Borrower which materially adversely affects the performance of Borrowers of their obligations hereunder or under any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Remedies</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) Upon the occurrence of any Event of Default, (a) any or all of the Obligations shall, at the option of Lender and notwithstanding any time or credit allowed by any instrument evidencing any Obligation, be immediately due and payable without notice, demand or presentment; (b) Lender may, in its discretion, take possession of the Collateral and, for that purpose, may enter, with the assistance of any persons, any premises where the Collateral or any part thereof may be located, and retain possession of the Collateral at such premises or remove the same therefrom; (c) Lender may notify the post office authorities to change the address for delivery of mail addressed to the Borrowers and to receive, open and dispose of such mail, any such mail not retained by Lender to be forwarded to Borrowers; (d) Each Borrower shall, at the request of Lender, assemble and/or deliver the Collateral at such places as Lender may designate and cooperate in all other respects with Lender in the exercise of its rights hereunder; (e) Lender may vote any shares of stock or other securities and exercise all or any powers with respect thereto with the same force and effect as an absolute owner thereof; (f) Lender may transfer Collateral into its own name or that of its nominee, receive income and proceeds thereon and/or sell any of the Collateral or cause the same to be sold in the Borough of Manhattan, New York City, or elsewhere, in one or more sales or parcels, at such price and on such terms as Lender may deem advisable, for cash or on credit, for immediate or future delivery, without assumption of any credit risk, at any public or private sales or other dispositions, without demand of performance (which demand is hereby expressly waived), on at least five (5) days' notice to Borrowers (if any notice is required by law) of any public sale or the time after which a private sale or other disposition may be made (which notice Borrowers acknowledge is reasonable), and in connection therewith may grant options and may impose reasonable conditions thereon, and the purchasers of any of the Collateral so sold shall thereafter hold the same absolutely, free from any claim or right of any kind, including any equity of redemption of Borrowers (any such equity being hereby expressly waived and released), and Lender or any of its nominees or agents may buy at any public sale and if the Collateral is of a type sold in a recognized market, or is of a type which is the subject of widely distributed standard price quotations, buy at private sale; (g) Lender shall not be obligated to make any sale of the Collateral regardless of notice of sale having been given; and (h) in addition to and notwithstanding any other rights granted by law or herein (or any limitations contained herein on any such rights), Lender shall have all of the rights and remedies with respect to the Collateral of a secured party under the UCC. Borrowers agree that any action taken by Lender in accordance with this paragraph shall be deemed to be commercially reasonable.

&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) If in its sole discretion Lender deems it desirable, it may remove any Collateral held by it from the place where it may now or hereafter be located to any other place and deal with it there as herein provided. Lender has no obligation to marshal Collateral or otherwise prepare the Collateral for sale and may specifically disclaim any warranties as to the Collateral, including those of title, merchantability and fitness for a particular purpose.

&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) Lender, at any time, at its option, may apply all of any net cash receipts from the Collateral (whether received on a sale of the Collateral or otherwise) to the payment, in whole or in part, of principal of and/or interest on any or all of the Obligations, whether or not then due, allocating the same as it shall elect, making rebate of interest or discount to the extent required by law and so as not to make the rate of interest charged unlawful with respect to any Borrower or Lender. If any Obligations shall be contingent, Lender may retain a sufficient amount of the net cash receipts from the Collateral as additional Collateral to cover the largest aggregate sum which may become due or owing thereunder with prospective interest, costs, expenses and attorneys' fees and shall not be charged with any interest with respect thereto. If the proceeds of any sale or other disposition of the Collateral are insufficient to pay all of the Obligations, Borrowers shall be liable of the deficiency and the fees of any attorneys employed by Lender to collect such deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Additional Security; Setoff</u>. Upon demand by Lender at any time that any of the Obligations are outstanding, Borrowers shall assign and transfer to Lender and grant to Lender a security interest in additional Collateral of a value and character satisfactory to Lender or make such payment on account of the Obligations as Lender may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Subrogation</u>. If any of the Collateral is applied on account of any of the Obligations, Borrowers shall not have any right of subrogation to Lender's right in any other Collateral held by Lender with respect to the Obligations or any right of contribution from Lender by reason thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Preservation of Rights</u>. No delay or omission on Lender's part to exercise any right or power arising under this Loan and Security Agreement will impair any such right or power or be considered a waiver of any such right or power, nor will Lender's action or inaction impair any such right or power. Lender's rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which Lender may have hereunder or under other agreements, at law or in equity and any and all such rights and remedies may be pursued by Lender simultaneously, separately, or sequentially. Lender may proceed in any order against any Borrower or any other obligor of, or any collateral securing, the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>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) This Loan and Security Agreement shall become effective on the Effective Date and shall continue in full force and effect for a term of two (2) years from the Effective Date (the "**Initial Term**") and shall be automatically renewed for successive two (2) year periods (each, an "**Additional Term**"). Either party may terminate this Loan and Security Agreement as of the end of the Initial Term or any subsequent Additional Term by giving the other party at least sixty (60) days' prior written notice by overnight, registered or certified mail, return receipt requested or by electronic delivery with a confirmed "read receipt". No such termination shall relieve or discharge any Borrower of its duties, obligations and covenants hereunder until all Obligations of the Borrowers to the Lender have been paid in full.

&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) If the Borrowers terminate this Loan and Security Agreement or the Lender terminates this Loan and Security Agreement as a result of an uncured Event of Default prior to the end of the Initial Term or any Additional Term, Borrowers shall pay the Lender (a) the minimum annual charges set forth in Section 2(c) for unexpired term of this Loan and Security Agreement, less any such fees already paid, plus (b) the monthly average amount of interest earned by the Lender above the prime rate during the period from the effective date of this Loan and Security Agreement through the date of termination, but in any event not less than One Thousand Five Hundred Dollars ($1,500) per month for each month or part thereof, for the unexpired term of this Loan and Security 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;(c) Notwithstanding any termination hereof, the Lender shall retain its security interest in, and title to, all existing and future accounts receivable and other Collateral until all of the Obligations owed by the Borrowers to the Lender shall have been fully paid, and until such time Borrowers shall continue to assign all accounts receivable and to turn over all collections in accordance with this Loan and Security Agreement, to the Lender without any obligation on the Lender's part to make further Revolving Loans to the Borrowers.

&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) The Borrowers agree that in the event of any release of the Lender's security interest in, and title to, any Collateral held by the Lender at such time as all the Obligations owed by the Borrowers to the Lender shall have been fully paid, such release shall constitute a general release by the Borrowers of the Lender and each of the Lender's affiliates, shareholders, directors, officers, successors, assigns, agents and representatives (in such capacity, collectively the "**Lender Releasees**"), from all causes of action, controversies, agreements, promises, damages, claims and demands whatsoever in law or equity against any of the Releasees, which either the Borrowers, the Lender, or any of their affiliates, shareholders, directors, officers, successors, assigns, agents, representatives, heirs, executors or administrators ever had, now have or hereafter can, shall or may have for, upon or by reason of any matter, cause or thing whatsoever occurring on or prior to the date of such release of the Lender's security interest in, and title to, any Collateral held by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <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>Borrowing Agency Provisions</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Borrower acknowledges that it, together with each other Borrower, make up a related organization of various entities constituting a single economic and business enterprise and sharing a substantial identity of interests such that, without limitation, Borrowers render services to or for the benefit of each other, purchase or sell and supply goods to or from or for the benefit of each other, make loans, advances and provide other financial accommodations to or for the benefit of each other (including the payment of creditors and guarantees of Indebtedness), provide administrative, marketing, payroll and management services to or for the benefit of each other; have centralized accounting, common officers and directors; and are in certain circumstances are identified to creditors as a single economic and business enterprise. Accordingly, and without limitation, any credit or other financial accommodation extended to any one Borrower pursuant hereto will result in direct and substantial economic benefit to each other Borrower, and each Borrower will likewise benefit from the economies of scale associated with the Borrowers, as a group, applying for credit or other financial accommodations pursuant hereto on a collective basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Borrower hereby irrevocably designates Maison ("**Borrower Representative**") to be its attorney and agent and in such capacity to borrow, sign and endorse notes, and execute and deliver all instruments, documents, writings and further assurances now or hereafter required hereunder, on behalf of such Borrower or Borrowers, and hereby authorizes Lender to pay over or credit all loan proceeds hereunder in accordance with the request of Borrower Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The handling of this credit facility as a co-borrowing facility with a Borrower Representative in the manner set forth in this Agreement is solely as an accommodation to Borrowers and at their request. The Lender shall not shall incur any liability to Borrowers as a result thereof. To induce the Lender to do so and in consideration thereof, each Borrower hereby indemnifies the Lender and holds the Lender harmless from and against any and all liabilities, expenses, losses, damages and claims of damage or injury asserted against the Lender by any person arising from or incurred by reason of the handling of the financing arrangements of Borrowers as provided herein, reliance by the Lender on any request or instruction from Borrower Representative or any other action taken by the Lender with respect to this Section except due to willful misconduct or gross negligence by the indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) All Obligations shall be joint and several, and each Borrower shall make payment upon the maturity of the Obligations by acceleration or otherwise, and such obligation and liability on the part of each Borrower shall in no way be affected by any extensions, renewals and forbearance granted by Lender to any Borrower, any failure of Lender to pursue or preserve its rights against any Borrower, the release by Lender of any Collateral now or thereafter acquired from any Borrower, and such agreement by each Borrower to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior recourse by Lender to the other Borrowers or any Collateral for such Borrower's Obligations or the lack thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution of any other claim which such Borrower may now or hereafter have against the other Borrowers or other person directly or contingently liable for the Obligations hereunder, or against or with respect to the other Borrowers' property (including, without limitation, any property which is Collateral for the Obligations), arising from the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the Obligations.

&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>Security Interest Retained</u>. Until the final termination hereof and the indefeasible payment in full in cash of all liabilities under the Credit Facility and performance of all of Borrowers' Obligations under the Loan Documents, the Lender shall retain the security interests in the Collateral granted hereunder and the ability to exercise any and all rights and remedies available to it pursuant to the Loan Documents and applicable law. Upon final termination hereof and the indefeasible payment in full in cash of all liabilities under the Credit Facility and performance of all of Borrowers' Obligations under the Loan Documents (other than obligations that survive such termination), Lender shall, at Borrowers' sole cost and expense, terminate its security interest and release its liens hereunder in the Collateral and all rights therein shall immediately revert to Borrowers.

&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>Preservation of Rights</u>. No delay or omission on Lender's part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will Lender's action or inaction impair any such right or power. Lender's rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which Lender may have hereunder or under other agreements, at law or in equity and any and all such rights and remedies may be pursued by Lender simultaneously, separately, or sequentially. Lender may proceed in any order against Borrowers or any other obligor of, or any collateral securing, the Obligations.

&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>Interpretation</u>. In this Loan and Security Agreement, unless Lender and Borrowers otherwise agree in writing, (a) the singular includes the plural and the plural the singular; (b) references to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute referred to; (c) the word "or" shall be deemed to include "and/or", the words "including", "includes" and "include" shall be deemed to be followed by the words "without limitation"; (d) references to sections or exhibits are to those of this Loan and Security Agreement; (e) terms defined in Article 9 of the UCC of the State of New York and not otherwise defined in such Agreement are used as defined in such Article; (f) references to any amount as on deposit or outstanding on any particular date means such amount at the close of business on such day; (g) the words "hereof," "herein" and "hereunder" and words of similar import refer to such agreement (or the certificate or other document in which they are used) as a whole and not to any particular provision of such agreement (or such certificate or document); (h) references to any Section, Schedule or Exhibit are references to Sections, Schedules and Exhibits in or to such agreement (or the certificate or other document in which the reference is made), and references to any paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph, subsection, clause or other subdivision of such Section or definition; (i) references to any agreement refer to that agreement as from time to time amended, restated, supplemented, extended, renewed, replaced or otherwise modified or as the terms of such agreement are waived or modified in accordance with its terms; (j) references to any Person include that Person's successors and assigns; and (k) terms in one gender include the parallel terms in the neuter and opposite gender. Section headings in this Loan and Security Agreement are included for convenience of reference only and shall not constitute a part of this Loan and Security Agreement for any other purpose. If this Loan and Security Agreement is executed by more than one party as Borrower, the obligations of such persons or entities will be joint and several.

&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>Notices</u>. All notices, requests and demands which any party is required or may desire to give must be made in writing delivered to each party at his, her or its address first set forth above, or to such other address as any party may designate by written notice to all other parties, and, with respect to any notice to Lender, such notice should be sent to the attention of: Merchant Factors Corp., 1441 Broadway, 22<sup>nd</sup> Floor, New York, NY 10018, Attention: Michael Behuniak. Each such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by other means, one day after transmission or shipment. Without limiting the foregoing, first class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving notices hereunder. No notice to or demand on Borrowers will entitle Borrowers to any other or further notice or demand in the same, similar or other circumstance.

&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>Costs and Expenses</u>. Borrowers shall reimburse Lender immediately upon demand the full amount of all payments, advances, charges, costs and expenses, whether or not collection is instituted hereon, including wire transfer fees and reasonable attorneys' fees (to include outside counsel fees and all allocated costs of Lender's in-house counsel), expended or incurred by Lender in connection with (a) the negotiation and preparation of this Loan and Security Agreement and the other Loan Documents, Lender's continued administration hereof and thereof, and the preparation of amendments and waivers hereto and thereto, including without limitation all costs incidental thereto and costs of the custody, care, collection, repair, storage, preparation for sale, actual or attempted disposition of, protection and preservation of the Collateral (including without limitation insurance premiums and sales commissions), (b) the enforcement of Lender's rights and/or the collection of any amounts which become due to Lender under this Loan and Security Agreement or any of the Loan Documents, and (c) the prosecution or defense of any action in any way related to this Loan and Security Agreement, or any of the Loan Documents, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in any civil action, lawsuit, arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Lender or any other person) relating to Borrowers or any other person or entity.

&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>Entire Agreement</u>. This Loan and Security Agreement constitutes the entire agreement between Borrowers and Lender with respect to subject hereof and supersedes all prior negotiations, communications (written or oral), discussions and correspondence concerning the subject matter hereof. Borrowers and Lender agree that any inconsistency or discrepancy between the provisions of this Loan and Security Agreement and any other documentation evidencing the Obligations of Borrowers to Lender and/or between Borrowers and Lender, shall be resolved in the manner most favorable to Lender.

&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>Severability</u>. The provisions of this Loan and Security Agreement and each other Loan Document are severable and if any provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall not in any manner affect or invalidate such provision in any other jurisdiction or any other provision of any of the Loan Documents in any 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;(i) <u>Limitation of Liability</u>. To the fullest extent permitted by applicable law, Borrowers shall not assert, and hereby waives any claim against Lender, on any theory of liability, for special, indirect, consequential or punitive damages arising out of, in connection with or as a result of, this Loan and Security Agreement, the Loan Documents, any other document evidencing or securing the Obligations, the transactions contemplated hereby or thereby or any loan advance or letter of credit or the use of the proceeds thereof.

&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>Amendments, Modifications, Etc</u>. No amendment, modification or waiver of any provision of this Loan and Security Agreement or consent to any departure by any Borrower therefrom shall be effective unless the same shall be in writing and signed by Lender or other party to be charged, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Notwithstanding the foregoing, Lender may modify this Loan and Security Agreement or any other Loan Document for the purposes of completing missing content or correcting erroneous content, without the need for a written amendment, provided that Lender shall send a copy of any such modification to Representative Borrower (which may be sent by electronic mail).

&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>No Waiver</u>. No failure on the part of Lender to exercise, and no delay in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise by Lender of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any other remedies provided hereunder or by any other instrument or document or under applicable law.

&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>Successors and Assigns; Assignments</u>. This Loan and Security Agreement and the terms hereof shall be binding upon and inure to the benefit of Lender and its successors and assigns, including subsequent holders hereof, and each Borrower and its legal representatives, successors and assigns; provided, however, that Borrowers may not assign or transfer its interests or rights hereunder (whether by operation of law or otherwise) without Lender's prior written consent, which Lender may withhold in its sole discretion. Lender reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Lender's rights and benefits hereunder, whether in or to the Obligations, the Collateral or otherwise. In connection therewith, Lender may disclose all documents and information which Lender now has or hereafter may acquire relating to any credit accommodation subject hereto, Borrowers, its business, or any Collateral.

&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) <u>Counterparts; Electronic Transmission</u>. This Loan and Security Agreement may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original and all of which, taken together, shall constitute one and the same Agreement. Delivery of any executed counterpart of this Loan and Security Agreement by electronic transmission shall be effective as delivery of a manually executed counterpart hereof. Borrowers acknowledge that information and documents relating to this Loan and Security Agreement and the credit accommodations provided for herein may be transmitted through electronic means.

&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) <u>Patriot Act</u>. Lender hereby notifies Borrowers that pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the "**Patriot Act**"), Lender is required to obtain, verify and record information that identifies Borrowers, which information includes the name, address, tax identification number and other information regarding each Borrower that will allow Lender to identify Borrowers in accordance with the Patriot Act. In that connection, Lender may also request corporate formation documents, or other forms of identification, to verify information provided.

&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) <u>GOVERNING LAW</u>. THIS LOAN AND SECURITY AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY BORROWERS AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF ANY CREDIT ACCOMMODATION SECURED HEREUNDER WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, IN ALL RESPECTS. INCLUDING, WITHOUT LIMITATION, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS LOAN AND SECURITY AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD OR MIGHT MAKE THE LAWS OF ANY OTHER JURISDICTION APPLICABLE) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS LOAN AND SECURITY 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;(p) <u>VENUE; JURISDICTION</u>. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR ANY BORROWER ARISING OUT OF OR RELATING TO THIS LOAN AND SECURITY AGREEMENT MAY AT LENDER'S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE STATE OF NEW YORK WHICH SHALL HAVE EXCLUSIVE JURISDICTION IN ANY SUIT, ACTION OR PROCEEDING BETWEEN ANY BORROWER AND LENDER. EACH BORROWER WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING BETWEEN LENDER AND ANY BORROWER, AND HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT. EACH BORROWER DOES HEREBY AGREE THAT SERVICE OF PROCESS UPON SUCH BORROWER AT ITS NOTICE ADDRESS AS SET FORTH IN SECTION 10 HEREOF BY REGISTERED MAIL, RETURN RECEIPT REQUESTED, SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON SUCH BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING AT THE TIME RECEIVED OR REFUSED BY ANY BORROWER AND SHALL CONSTITUTE "PERSONAL DELIVERY" THEREOF AS DEFINED IN SECTION 308(i) OF NEW YORK'S CIVIL PRACTICE LAW AND RULES (OR ANY AMENDMENT THERETO). NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY BORROWER IN ANY OTHER JURISDICTIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>WAIVER OF JURY TRIAL</u>. EACH BORROWER (a) KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES EACH RIGHT SUCH BORROWER MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO, AND IN, ANY ACTION OR OTHER LEGAL PROCEEDING OF ANY NATURE, RELATING TO (i) THIS LOAN AND SECURITY AGREEMENT OR ANY CREDIT ACCOMMODATION PROVIDED WITH RESPECT HERETO, (ii) ANY TRANSACTION CONTEMPLATED IN ANY SUCH LOAN DOCUMENTS OR (iii) ANY NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT OF THIS LOAN AND SECURITY AGREEMENT, ANY OF THE OBLIGATIONS, ANY COLLATERAL OR ANY OTHER LOAN DOCUMENT AND (b) CERTIFIES THAT (i) NEITHER LENDER, ANY AFFILIATE OF LENDER NOR ANY REPRESENTATIVE OF LENDER OR ANY SUCH AFFILIATE HAS REPRESENTED TO ANY BORROWER THAT LENDER OR ANY SUCH AFFILIATE WILL NOT SEEK TO ENFORCE THE WAIVER MADE BY SUCH BORROWER IN THIS PARAGRAPH, AND (ii) SUCH BORROWER HAS BEEN REPRESENTED (OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS LOAN AND SECURITY AGREEMENT AS NECESSARY AND APPROPRIATE BY INDEPENDENT LEGAL COUNSEL. IF FOR ANY REASON AN ACTION IS BROUGHT IN THE STATE OF CALIFORNIA AND TO THE EXTENT A PREDISPUTE WAIVER OF THE RIGHT TO TRIAL BY JURY IS NOT ENFORCEABLE UNDER APPLICABLE LAW, ANY AND ALL DISPUTES, CONTROVERSIES OR CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING, WITHOUT LIMITATION, THE MAKING, PERFORMANCE, OR INTERPRETATION OF THIS AGREEMENT OR ANY OTHER RELATED AGREEMENT, SHALL BE HEARD BY A REFEREE AND RESOLVED BY JUDICIAL REFERENCE PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638. THE REFEREE SHALL BE AN ATTORNEY LICENSED TO PRACTICE LAW IN THE STATE OF CALIFORNIA AND EXPERIENCED AND QUALIFIED IN MATTERS OF THE TYPE CONTEMPLATED BY THIS AGREEMENT OR A RETIRED CALIFORNIA SUPERIOR OR APPELLATE COURT JUDGE. THE PARTIES SHALL NOT SEEK TO APPOINT A REFEREE THAT MAY BE DISQUALIFIED PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 641 OR 641.2 WITHOUT THE PRIOR WRITTEN CONSENT OF ALL PARTIES. IF THE PARTIES ARE UNABLE TO AGREE UPON A REFEREE WITHIN TEN (10) CALENDAR DAYS AFTER ONE PARTY SERVES A WRITTEN NOTICE OF INTENT FOR JUDICIAL REFERENCE ON THE OTHER PARTY OR PARTIES, THEN THE REFEREE WILL BE SELECTED BY THE COURT IN ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 640(B). ANY DECISION OF THE REFEREE SHALL BE ENTERED AS A JUDGMENT IN THE COURT IN ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 644 AND 645. IF ENABLING LEGISLATION WHICH PROVIDES FOR APPOINTMENT OF A REFEREE IS REPEALED (AND NO SUCCESSOR STATUTE IS ENACTED), ANY DISPUTE BETWEEN THE PARTIES THAT WOULD OTHERWISE BE DETERMINED BY A REFERENCE PROCEDURE WILL BE RESOLVED AND DETERMINED BY ARBITRATION. THE ARBITRATION WILL BE CONDUCTED BY A RETIRED JUDGE OR JUSTICE IN ACCORDANCE WITH THE CALIFORNIA ARBITRATION ACT §1280 THROUGH §1294.2 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE AS AMENDED FROM TIME TO TIME. THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT OF OR IS RELATED TO THIS AGREEMENT IN AN ACTION BROUGHT IN CALIFORNIA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Indemnity</u>. Each Borrower agrees to indemnify each of Lender, each legal entity, if any, who controls, is controlled by or is under common control with Lender, and each of their respective directors, officers and employees (the "**Indemnified Parties**"), and to defend and hold each Indemnified Party harmless from and against any and all claims, damages, losses, liabilities and expenses (including all fees and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including any person or entity claiming derivatively on behalf of any Borrower), in connection with or arising out of or relating to the matters referred to in this Loan and Security Agreement or the Loan Documents or the use of any advance with respect hereto, whether (a) arising from or incurred in connection with any breach of a representation, warranty or covenant by any Borrower, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party's gross negligence or willful misconduct, as determined by a final and non-appealable decision of a court of competent jurisdiction. The indemnity agreement contained in this Section shall survive the termination or revocation of this Loan and Security Agreement, payment of any advance hereunder and the assignment of any rights hereunder, or entry of judgment hereon. Borrowers may participate at its expense in the defense of any such action or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Further Assurances; Corrections of Defects</u>. Each Borrower, intending to be legally bound hereby, agrees to promptly correct any defect, error or omission, upon the request of Lender, which may be discovered in the contents of this Loan and Security Agreement or any other document evidencing or securing the Obligations, or in the execution or acknowledgement hereof, and each Borrower will execute, or re-execute, acknowledge and deliver such further instruments and do such further acts as may be necessary or as may be reasonably requested by Lender to satisfy the terms and conditions of this Loan and Security Agreement, and all documents executed in connection therewith, including but not limited to the recording, filing or perfecting of any document given for securing and perfecting liens, mortgages, security interests and interests to secure the Obligations secured hereby.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **MERCHANT FACTORS CORP.** | **MERCHANT FACTORS CORP.** |
| By: |  |
|  | Name: |

---

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **MERCHANT FACTORS CORP.** | **MERCHANT FACTORS CORP.** |
| By: | /s/ Scott Adler |
|  | Name: Scott Adler |
|  | Title: Senior Executive Vice President |

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Borrowers acknowledge that they have read and understood all provisions of this Loan and Security Agreement, including the waiver of jury trial, and has been advised by counsel as necessary and appropriate.

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| | | | |
|:---|:---|:---|:---|
| **Borrower:** | **Borrower:** | | |
| **Maison Thomas LLC** | **Maison Thomas LLC** | **Project Crush DTC Sub, LLC** | **Project Crush DTC Sub, LLC** |
| By: | /s/ Mark T. Lynn | By: | /s/ Mark T. Lynn |
|  | Name: Mark T. Lynn |  | Name: Mark T. Lynn |
|  | Title: Chief Executive Officer |  | Title: Chief Executive Officer |

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[Signature Page to Loan and Security Agreement]

**Individual Guarantors:**

---

| |
|:---|
| /s/ Mark T. Lynn |
| Mark T. Lynn |
| /s/ Andrew Kim |
| Andrew Kim |

---

**Corporate Guarantors**

**Amass Brands Inc**

---

| |
|:---|
| /s/ Mark T. Lynn |
| By: Mark T. Lynn |
| Title: Chief Executive Officer |

---

**Project Crush Acquisition Corp LLC**

---

| |
|:---|
| /s/ Mark T. Lynn |
| By: Mark T. Lynn |
| Title: Chief Executive Officer |

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[Signature Page to Loan and Security Agreement]

**<u>Exhibit A</u>**

**<u>Maison Thomas LLC</u>**

**<u>Project Crush DTC Sub, LLC</u>**

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| | |
|:---|:---|
| a) Borrowers' organizational status: | Maison Thomas LLC: Limited Liability Company<br>Project Crush DTC Sub, LLC: Limited Liability Company |
| b) Borrowers' state of organization: | Maison Thomas LLC: California<br>Project Crush DTC Sub, LLC: California |
| c) Prior state of organization (if any) of the Borrower in the past five years: |  |
| d) Address of Borrowers' chief executive office: | Maison Thomas LLC: 927 South Santa Fe Avenue<br>Los Angeles, CA 90021<br>Project Crush DTC Sub, LLC: 927 South Santa Fe Avenue<br>Los Angeles, CA 90021 |
| e) Borrowers' organizational ID: | Maison Thomas LLC: California Entity ID#202354419083<br>Project Crush DTC Sub, LLC: California Entity ID#202354419100 |
| f) Prior organizational IDs of the Borrowers (if any) from the past five years: |  |
| g) Borrowers' name: | Maison Thomas LLC<br>Project Crush DTC Sub, LLC |
| h) Document reflecting name: (i.e., Articles of Incorporation, Operating Agreement, etc.): | Maison Thomas LLC: Articles of Organization<br>Project Crush DTC Sub, LLC: Articles of Organization |
| i) Other names used by Borrowers in the past five years: | Maison Thomas LLC: Project Crush Wholesale Sub, LLC, Natural Merchants<br>Project Crush DTC Sub, LLC: Summer Water, AMASS Wines, Maison Thomas, Winc |

---

---

| | |
|:---|:---|
| j) Information related to any merger, consolidation or other change of structure by the Borrowers in the past five years: | None - entity was formed this year |
| k) States where Borrowers have had its chief executive office in the past five years other than as set forth above: | None (only CA) |
| l) Location(s) of all Collateral owned by Borrowers: | <u>Maison Thomas LLC and Project Crush DTC Sub, LLC</u><br>a. 35 Industrial Way, Buellton CA<br>b. 1525 E Jahant Road, Acampo CA<br>c. CA 4910 Edna Rd, San Luis Obispo CA<br>d. 2121 Alisos Rd, Santa Ynez CA<br>e. 850 E. Stowell Rd, Santa Maria, CA 93454<br>f. 1515 Garnet Mine Rd, Garnet, PA 19060 |
| m) Location(s) of Borrowers' records concerning the Collateral are kept only at such location(s): | <u>Maison Thomas LLC and Project Crush DTC Sub, LLC</u><br>927 S Santa Fe Ave, Los Angeles, CA 90021,<br>850 E. Stowell Rd, Santa Maria, CA 93454,<br>1515 Garnet Mine Rd, Garnet, PA 19060 |
| n) Borrowers' bank accounts | <u>Maison Thomas LLC</u><br>JPM – Account Number: 966051713 |

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**<u>Schedule 5(k) - Permitted Indebtedness</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Lender** | **Debtor** | **Agreement Description** | **Outstanding Amount** |
| Grays Peak Private Credit LLC | Amass Brands Inc | Senior Secured Note, dated April 27, 2023 | $165,000 principal outstanding |
| Grays Peak Private Credit LLC | Amass Brands Inc | Senior Secured Note, dated May 10, 2023 | $175,000 principal outstanding |
| Grays Peak Private Credit LLC | Amass Brands Inc | Mezzanine Secured Note, dated February 3, 2023 | $300,000 principal outstanding |
| Warehouse Co | Amass Brands Inc | Mezzanine Secured Note dated December 5, 2023 | $200,000 principal outstanding |
| Nitehaus LLC | Amass Brands Inc | Mezzanine Secured Note January 23, 2023 | $450,000 principal outstanding |
| Daniel Brown | Amass Brands Inc | Promissory Note dated October 15, 2021 | $500,000 principal outstanding |
| Esiom Ventures, LLC | Amass Brands Inc | Promissory Note dated August 26, 2021 | $400,000 principal outstanding |
| Mark and Ellen Genender Family Trust dtd 3.10.06 | Amass Brands Inc | Promissory Note dated October 14, 2021 | $250,000 principal outstanding |
| Sam Shaffer | Amass Brands Inc | Promissory Note dated March 7, 2022 | $100,000 principal outstanding |
| Sam Shaffer | Amass Brands Inc | Promissory Note dated August 10, 2021 | $400,000 principal outstanding |
| The Nathan J. Reis Family Protection Trust | Amass Brands Inc | Promissory Note dated September 1, 2022 | $250,000 principal outstanding |
| Small Business Administration | Amass Brands Inc | COVID EIDL dated June 21, 2020 | $150,000 principal outstanding |

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**<u>Schedule 5(m) - Required Liquor Licenses</u>**

---

| | |
|:---|:---|
| **License Type** | **Purpose** |
| **AMASS BRANDS:**<br> TTB Bonded Winery Permit: <u>BWN-CA-24393</u> | Allows for the bond to bond transfer of tax deferred + tax paid wine at licensed premise (SM). |
| **MAISON THOMAS LLC:**<br> TTB Wholesaler Permit (Distilled Spirits, Malt<br> Beverage, Wine): <u>CA-P-26369</u><br>TTB Importer Permit (Distilled Spirits, Malt<br> Beverage, Wine): <u>CA-I-23590</u><br>TTB Bonded Winery Permit: <u>BWN-CA-21456</u> | Allows for the importation + sale of product (DS/Malt Bev/Wine) to wholesale channel.<br>Allows for the production/bottling of wine via Alternating Proprietor (AP) agreement. |
| **MAISON THOMAS LLC:**<br> Winegrower (Type 02): <u>02-649592</u> | Allows for the production/bottling of wine via Alternating Proprietor (AP) agreement. |
| **PROJECT CRUSH DTC LLC:**<br> TTB Bonded Winery Permits:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>BWN-CA-24384</u><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>BWN-CA-24385</u> | Allows for the production/bottling of wine via Alternating Proprietor (AP) agreement. |

---

**<u>Schedule 8(d) – Permitted Liens</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· Lien on assets of Amass Brands, Inc. in favor of U.S. Small Business Administration
filed with the Secretary of State of the State of California, with filing number 207800224792 and filed on July 1, 2020.

## Exhibit 10.3

**Exhibit 10.3**

***Execution Version***

**SECURED PROMISSORY NOTE**

---

| | |
|:---|:---|
| $2500000 | April 12, 2024 |

---

FOR VALUE RECEIVED, Resonant Subholdings Inc. a Delaware corporation (the "<u>Borrower</u>"), HEREBY PROMISES TO PAY to the order of Half Church Holdings Pte. Ltd., a company formed under the laws of Singapore (the "<u>Lender</u>") the principal sum of two million, five hundred thousand Dollars ($2,500,000) ("<u>Principal Amount</u>") and such other payments from time to time, in accordance with the terms further set forth below in this secured promissory note (this "<u>Note</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **The Loan**. Subject to the terms and conditions hereof, the Lender made an advance equal to the Principal Amount (the "<u>Loan</u>") to the Borrower on or around the Effective Date (as defined below). Any outstanding Principal Amount of the Loan, together with all accrued and unpaid Monthly Payments (as defined below) thereon, as modified in this Note, shall be immediately due and payable in full in immediately available funds on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **Terms of the Note**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Payments.** Beginning with the first month that ends at least ninety (90) days after the Effective Date, the Borrower shall pay $300,000 a month to the Lender (each a "<u>Monthly Payment</u>") on the 12th of each month (each a "<u>Payment Date</u>") until and including on the Maturity Date. Monthly Payments shall begin to accrue on June 12, 2024 and shall be paid in arrears on each Payment Date thereafter. The first Monthly Payment is due and payable on July 12, 2024 (the "<u>First Payment Date</u>") and the last Monthly Payment is due and payable on the Maturity Date. The amount of Monthly Payments due and payable each month is fixed and independent of the outstanding Principal Amount at the time such Monthly Payment is due or paid. The first Monthly Payment shall reduce the outstanding Principal Amount by $81,250, and each subsequent Monthly Payment shall reduce the outstanding Principal Amount by $227,083. Any amount of Monthly Payment that do not reduce the outstanding Principal Amount is interest on the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Late Penalties**. If any Monthly Payment is not paid on time in accordance with Section II.(a) above or any Event of Default that is not a Major Event of Default has occurred and is continuing pursuant to Section VIII(b) below, then in each case, a late penalty of $2,000 per day (the "<u>Late Penalty</u>") shall be charged against the Borrower, beginning on the first calendar day after a Monthly Payment is due but not paid, until all past due Monthly Payments are paid in full by the Borrower. The Late Penalty is due immediately to the Lender. The Late Penalty shall continue to accrue each day for so long as any portion of the Monthly Payment remains outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Evidence of Loan**. This Note evidences the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Payments on Business Day**. If any amount payable hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of Monthly Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Lender's Office**. Principal, Monthly Payments and all other amounts due hereunder are payable in lawful money of the United States of America and in immediately available funds at the offices of the Lender located at its address as set forth on its signature page hereto, or at such other place as the Lender shall designate in writing to the Borrower from time to time. All payments under this Note will be made without setoff, counterclaim or other defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Optional Prepayments**. The Borrower may, at its option and upon not less than three (3) Business Days' prior written notice to the Lender (or such shorter time as Lender may agree), prepay and thus reduce the outstanding Principal Amount of the Loan, in part from time to time or in whole at any time after the First Payment Date, without premium or penalty, subject to the payment of all accrued Monthly Payments to the date of such prepayment; provided that, for the avoidance of doubt, no prepayments made be made to pay down the entire outstanding Principal Amount under this Note until after the First Payment Date and this Note shall remain outstanding until after the First Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Use of Proceeds**. Unless otherwise agreed in writing by Lender, the Borrower shall use the proceeds from the Loan to pay, on or around the Effective Date, the acquisition consideration in respect of the Purchased Assets (as defined in and pursuant to that certain Asset Purchase Agreement, dated as of the date hereof, between Borrower and Amass Brands, Inc., a Delaware corporation.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Definitions; Rules of Construction**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms used herein shall have the meaning as set forth in Exhibit A hereto. Capitalized terms used herein and not defined in Exhibit A shall have the meaning as defined in the UCC (as defined in Exhibit A here).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rules of construction set forth in Exhibit A shall apply to any interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **Collateral**. As collateral security for all Obligations of the Borrower now or hereafter evidenced by this Note, and to secure the due and punctual payment and performance of such Obligations to the Lender, the Borrower hereby grants, pledges and collaterally assigns to the Lender a lien on and security interest in all Collateral (as defined in Exhibit A hereto). The Borrower hereby agrees to the terms set forth in Exhibit B, including, without limitation, the Lender's rights with respect to the Collateral following an Event of Default as set forth in Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **Representations**. The Borrower represents and warrants to Lender as of the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower has the legal capacity and right to execute, deliver and perform this Note and each other Note Document and the Borrower is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of their respective business or its ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the execution, delivery and performance by the Borrower of this Note and each other Note Document does not contravene any law or any contractual restriction binding on or affecting the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Governmental Approval or other authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Borrower of any Note Document, except for the filing of the financing statement under the Uniform Commercial Code in the jurisdiction of organization of Borrower and the filing of the TM Security Agreement with the USPTO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Note constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there is no pending or threatened action or proceeding affecting the Borrower before any Governmental Authority or arbitrator that (i) if adversely determined could reasonably be expected to have a Material Adverse Effect, or (ii) relates to this Note or any of the other Note Documents or any transaction contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower is not liable with respect to any indebtedness for borrowed money; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Covenants**. So long as any Obligations shall remain outstanding, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not create, incur, assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to any indebtedness for borrowed money other than indebtedness in favor of the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not incur, create, assume or suffer to exist any Lien on any of the Collateral (including, without limitation, any Lien on any owned real property or upon the Borrower's leasehold interests in any leased real property) or the proceeds thereof, other than Liens with respect to the Collateral created hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not sell, convey, transfer, lease or dispose of (whether in one transaction or in a series of transactions) any of the Collateral other than payments permitted under paragraph (d) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not pay any dividends or make any distribution, other than (i) as required to comply with applicable law or (ii) approved by the Lender in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not make any investments, other than (i) the purchase of the trademark subject to the TM Security Agreement, (ii) as required to comply with applicable law or (iii) approved by the Lender in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) at the Borrower's expense, defend the Lender's right, title and security interest in and to the Collateral against the claims of any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at the Borrower's expense, at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Lender may reasonably request in order to (i) perfect and protect, or maintain the perfection of, the security interest and lien purported to be created hereby, (ii) enable the Lender to exercise and enforce its rights and remedies hereunder in respect of the Collateral or (iii) better secure the Obligations through accepted and customary means;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) not take or fail to take any action which would in any manner reasonably be expected to impair the value or enforceability of the Lender's Lien on any Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain its legal existence and good standing in its jurisdiction of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) comply in all material respects with all laws, ordinances and regulations to which it is subject, obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under this Note and the other Note Documents, including any grant of a security interest to Lender, and promptly provide copies of any such obtained Governmental Approvals to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Reporting</u>. Deliver to Lender the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Prompt written notice of the occurrence of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Note Documents as reasonably requested by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) permit, at reasonable times, on one (1) Business Day's notice (provided no notice is required if an Event of Default has occurred and is continuing), Lender, or its agents, to inspect the Collateral and the right to audit and copy Borrower's Books; provided that, such inspections and audits shall be conducted no more often than once every twelve (12) months, unless an Event of Default has occurred and is continuing, in which case such inspections and audits shall occur as often as Lender shall determine is necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) (i) protect, defend and maintain the validity and enforceability of Borrower's Intellectual Property, except to the extent that such failure to do so would not reasonably be expected to have a Material Adverse Effect; (ii) promptly advise Lender in writing of infringements or any other event that could reasonably be expected to materially and adversely affect the value of Borrower's Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower's business to be abandoned, forfeited or dedicated to the public without Lender's written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) not form any Subsidiary or acquire any Subsidiary without Lender's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) not directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a non-affiliated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) not merge or consolidate with any other Person, or acquire all or substantially all of the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person unless (i) the Borrower has received Lender's prior written consent to consummate such merger or consolidation on terms that are in form and substance reasonably satisfactory to Lender, and (ii) no Event of Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) not (i) become an "investment company" or a company controlled by an "investment company", under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of the Loan for that purpose; (ii)(A) fail to meet the minimum funding requirements of ERISA, (B) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, (C) fail to comply with the Federal Fair Labor Standards Act or (D) violate any other law or regulation, if the foregoing subclauses (A) through (D), individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; or (iii) withdraw or permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) engage in any business other than the businesses currently engaged in by Borrower or a business reasonably related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) permit, allow or suffer to occur any Change in Control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) without at least 30 days prior written notice to Lender, (1) add any new offices or business locations, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **Conditions Precedent**. This Note shall become effective on the date hereof (the "<u>Effective Date</u>") following the Lender's receipt (or waiver of receipt of) the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a fully executed copy of this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a fully executed copy of the Guaranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a fully executed copy of the TM Security Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a copy of resolutions of the Borrower's board of directors (or similar governing body) approving and authorizing the execution, delivery and performance of the Note Documents and the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. **Events of Default**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Major Event of Default shall occur then the Lender may by written notice to the Borrower (i) terminate any commitments to make any further Loans (if any) and declare the then outstanding principal amount of this Note, and all other amounts due hereunder to be immediately due and payable, whereupon the outstanding principal amount of this Note and all such other amounts, shall become and shall be forthwith due and payable, without diligence, presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, and (ii) exercise any and all of its other rights under applicable law, hereunder and under the other Note Documents; <u>provided</u>, <u>however</u>, that upon the occurrence of any Event of Default described in clause (e) of the definition of "Event of Default", without any notice to the Borrower or any other Person or any act by the Lender, all commitments to make any further Loans (if any) shall automatically terminate, all Loans then outstanding, together with all accrued and unpaid Monthly Payments thereon, all fees and all other amounts due under this Note and the other Note Documents, shall be accelerated and become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by the Borrower. In addition to the other rights and remedies provided for herein or otherwise available to it, upon any Event of Default, the Lender may exercise all of the rights and remedies of a secured party on default under the UCC, including, without limitation, such rights as are set forth in Exhibit B hereto. All proceeds received following any Event of Default hereunder shall be applied to this Note or any indebtedness arising hereunder or the other Obligations or in conjunction with this Note as the Lender shall determine in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of an Event of Default that is not a Major Event of Default, regardless of any rights that might be available at law or in equity, Lender's sole remedy is to charge and collect the Late Penalty from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **Successors and Assigns**. This Note shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns; <u>provided</u> that, (a) the Borrower may not assign any rights or obligations hereunder or any interest herein without the prior written consent of the Lender (any such assignment being null and void), and (b) the Lender may assign to one or more other entities all or a portion of its rights under this Note with the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned); <u>provided further,</u> that (i) no such consent under this clause (b) shall be required (x) during the continuance of an Event of Default or (y) for any assignments to any Affiliates of the Lender, and (ii) such consent shall have been deemed to have been given without the need for further action if the Borrower does not respond in writing to a request by the Lender for any such consent within five (5) Business Days after receipt of such request from the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **Register**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall maintain in the United States a register for the recordation of the name and address of the Borrower, and the applicable commitment of, and principal amount (and stated interest) of the Loan owing to the Lender(s) pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower and the Lender(s) shall treat the Lender(s), whose name is recorded in the Register pursuant to the terms hereof, as the Lender(s) for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender that sells a participation (such participant, a "<u>Participant</u>") shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the loan or other obligations under this Agreement or the other loan documents (the "Participant Register"); provided that, no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any loan document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XI. **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices or other communications provided for hereunder shall be in writing (including telecommunications) and shall be mailed, e-mailed or delivered to the Borrower at the address set forth next to the Borrower's signature, or at such other address as may hereafter be specified by the Borrower to the Lender (at its address set forth herein) in writing. All notices and communications shall be effective (i) if mailed, when received at the address specified above, (ii) if e-mailed, upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment) and (iii) if delivered, upon delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure on the part of the Lender to exercise, and no delay in exercising, any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof by the Lender preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy of the Lender. No amendment or waiver of any provision of this Note, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such 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;(d) The Borrower hereby agrees to pay promptly after invoicing thereof all costs and expenses (including, without limitation, all reasonable fees, expenses and other client charges of counsel to the Lender) incurred by the Lender in connection with the enforcement of the Lender's rights, and the collection of all amounts due, hereunder. The obligations of the Borrower under this clause (d) shall survive the payment in full of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary set forth in this Note, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the "<u>Maximum Lawful Rate</u>"), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Borrower shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Lender is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Effective Date as otherwise provided in this Note. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in Section II, unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by the Lender pursuant to the terms hereof exceed the amount that the Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section XI.(e), a court of competent jurisdiction shall finally determine that the Lender has received interest hereunder in excess of the Maximum Lawful Rate, the Lender shall, to the extent permitted by applicable law, promptly apply such excess to the payment of other outstanding Obligations and thereafter shall refund any excess to the Borrower or as a court of competent jurisdiction may otherwise order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Loan is intended to be treated as an indebtedness as defined under Section 385 of the U.S. Internal Revenue Code of 1986, as amended (the "<u>IRS Code</u>") for all U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) The Lender is the beneficial owner of the interest in the Loan. (ii) Lender will deliver to the Borrower properly completed and executed withholding documentation that will permit any payments received by Lender from the Borrower to be made without withholding, including FATCA documentation. (iii) On or prior to the date on which a Person becomes the Lender (or a Lender) under this Note (and from time to time thereafter upon the reasonable request of the Borrower), such Lender(s) and, as applicable, its beneficial owners shall deliver to the Borrower executed originals of the appropriate series of Internal Revenue Service Form W-8, in addition to any supporting or backup documentation (including documentation supporting whether Lender is entitled to the "portfolio interest" exemption under Section 871 or Section 881 of the IRS Code.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of Sections 1272, 1273, and 1275 of the IRS Code, the Loan was issued with "original issue discount" within the meaning of Section 1273(a) of the IRS Code and Section 1.1273-1 of the United States Treasury Regulations. Please contact Lender in accordance with Section XI.(a) to obtain information regarding the issue price, the amount of original issue discount, the issue date, and the yield to maturity of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Note and the other Note Documents as collateral security to secure obligations of the Lender, Affiliates of the Lender or funds or accounts managed by the Lender or an Affiliate of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the State of New York in each case located in the city of New York and county of New York (Manhattan), and each party hereto (i) irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding, (ii) waives any defense based on doctrines of venue or *forum non conveniens*, or similar rules or doctrines, and (ii) irrevocably agrees that all claims in respect of such an action or proceeding may be heard and determined in such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k) THE BORROWER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY ANY MEANS PERMITTED BY APPLICABLE LAW.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l) THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m) THE BORROWER AND THE LENDER (BY ITS ACCEPTANCE HEREOF) MUTUALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.**

[Signature Pages Follow]

BORROWER:

**RESONANT SUBHOLDINGS INC.**

---

| | | |
|:---|:---|:---|
| By: | /s/ Geoff McFarlane | /s/ Geoff McFarlane |
|  | Name: | Geoff McFarlane |
|  | Title: | President |

---

Address:

[\*\*\*]

[*Signature Page to Secured Promissory Note*]

Accepted and agreed:

**HALF CHURCH HOLDINGS PTE. LTD.**

By: <u>[\*\*\*]</u> <br> Name: [\*\*\*] <br> Title: Chief Executive Officer

Address:

[\*\*\*]

[*Signature Page to Secured Promissory Note*]

**EXHIBIT A**

**DEFINITIONS**

"<u>Account</u>" is, as to any Person, any "account" of such Person as "account" is defined in the UCC with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to such Person.

"<u>Account Debtor</u>" is any "account debtor" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Affiliate</u>" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of equity interests, by contract, or otherwise.

"<u>Borrower's Books</u>" are all Borrower's books and records including ledgers, federal and state tax returns, records regarding Borrower's assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close.

"<u>Change in Control</u>" means at any time Geoff McFarlane ceases to the be sole record and beneficial owner of the Borrower.

"<u>Collateral</u>" shall mean, with respect to any Person, all personal property and Fixtures of such Person, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Chattel Paper (whether Electronic Chattel Paper or Tangible Chattel Paper);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Commercial Tort Claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise credited thereto and the monies and property in the possession or under the control of any Lender or any of their respective affiliates, representatives, agents, participants or correspondents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all General Intangibles (including, without limitation, all Payment Intangibles, Intellectual Property (including, without limitation, any Intellectual Property described in the TM Security Agreement) and licenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Goods, including, without limitation, all Equipment, Fixtures and Inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all Instruments (including, without limitation, Promissory Notes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Investment Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Supporting Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all fee interests in any owned real property and all leasehold interests in real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all other tangible and intangible personal property and Fixtures of such Person (whether or not subject to the UCC), including, without limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of such Person described in the preceding clauses (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by such Person in respect of any of the items listed above), and all books, correspondence, files and other Records, including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of such Person or any other Person from time to time acting for such Person that at any time evidence or contain information relating to any of the property described in the preceding clauses of this definition or are otherwise necessary or helpful in the collection or realization thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral;

in each case, howsoever such Person's interest therein may arise or appear (whether by ownership, security interest, claim or otherwise).

For the avoidance of doubt, as used in this definition the following terms shall have the respective meanings provided for in the UCC: "Accounts", "Cash Proceeds", "Chattel Paper", "Commercial Tort Claim", "Commodity Account", "Commodity Contracts", "Deposit Account", "Documents", "Electronic Chattel Paper", "Equipment", "Fixtures", "General Intangibles", "Goods", "Instruments", "Inventory", "Investment Property", "Letter-of-Credit Rights", "Noncash Proceeds", "Payment Intangibles", "Proceeds", "Promissory Notes", "Record", "Security Account", "Software", "Supporting Obligations" and "Tangible Chattel Paper".

"<u>Collateral Account</u>" is any Deposit Account, Securities Account, or Commodity Account.

"<u>Commodity Account</u>" is any "commodity account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Copyrights</u>" are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

"<u>Default</u>" means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

"<u>Deposit Account</u>" is any "<u>deposit account</u>" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Dollar,</u>" "<u>Dollars</u>" and the symbol "$" each means lawful money of the United States of America.

"<u>Effective Date</u>" shall have the meaning given to such term in Section VII.

"<u>ERISA</u>" is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

"<u>Event of Default</u>" shall mean the occurrence and/or continuance of any one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Payment Default</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Borrower fails to make any Monthly Payment or Late Penalty payments when due, and such failure is not remedied or waived within five (5) business days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Borrower fails to make any payment (whether of Monthly Payments, Late Penalty or principal on the Loan) due or past due on the Maturity 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Covenant Default</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Borrower fails or neglects to perform any obligation in Section VI(a), (b), (c), (d), (e), (i), (m)(i), (o), (p), (q) or (s); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Borrower fails or neglects to perform or comply with any other term, provision, condition, covenant or agreement contained in this Note or any of Note Document, and such failure is not cured or waived for a period of 30 days after the earlier to occur of (x) the date upon which written notice thereof is given to the Borrower by the Lender and (y) the date upon a Responsible Officer of Borrower becomes actually aware of such failure to perform or comply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Enforceability</u>. Any Note Document or the Lien of Lender on the Collateral is no longer legally enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Attachment; Levy; Restraint on Business</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. (1) the service of process seeking to attach, by trustee or similar process, any funds of Borrower in a material amount, or (2) a notice of lien or levy is filed against any of Borrower's assets by any Governmental Authority, and the same under subclauses (1) and (2) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. (1) any material portion of Borrower's assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (2) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of its 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Insolvency</u>. (i) Borrower begins an Insolvency Proceeding; or (ii) an Insolvency Proceeding is begun against Borrower and is not dismissed or stayed within 45 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Other Agreements</u>. There is, under any agreement to which Borrower is a party with a third party or parties, any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any indebtedness of the Borrower,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Judgments; Penalties</u>. One or more fines, penalties or final judgments, orders or decrees for the payment of money in a material amount (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower by any Governmental Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or after execution thereof, or stayed pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no advances will be made prior to the discharge, or stay of such fine, penalty, judgment, order or decree);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Misrepresentations</u>. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement in this Note or any Note Document that is incorrect in any material respect when 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;(i) <u>Lien Priority</u>. There is a material impairment in the perfection or priority of Lender's security interest in the Collateral caused by Borrower; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Governmental Approvals</u>. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or nonrenewal (i) causes, or could reasonably be expected to cause, a Material Adverse Effect, or (ii) materially adversely affects the legal qualifications of Borrower to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower to hold any Governmental Approval in any other jurisdiction.

"<u>Exchange Act</u>" is the Securities Exchange Act of 1934, as amended.

"<u>Governing Documents</u>" means, with respect to any Person, the certificate or articles of incorporation or formation, by-laws, operating agreement, partnership agreement or other organizational documents of such Person.

"<u>Governmental Approvals</u>" means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

"<u>Governmental Authority</u>" means any nation or government, any Federal, state, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Guaranty</u>" means that certain Personal Guaranty executed by Mark Lynn in favor of the Lender, dated as of the date hereof, whereby Mark Lynn guarantees all of the obligations of Borrower under this Note;

"<u>Insolvency Proceeding</u>" means any proceeding commenced by or against any Person under any provision of Title 11 of the United States Code, as amended from time to time, or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States or other applicable jurisdiction from time to time in effect.

"<u>Intellectual Property</u>" means, with respect to any Person, all of such Person's right, title, and interest in and to the following:

&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) its Copyrights, Trademarks and Patents;

&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) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how and operating manuals;

&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) any and all source code;

&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) any and all design rights which may be available to such Person;

&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) any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; 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;(f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

"<u>Lien</u>" means any mortgage, deed of trust, pledge, lien (statutory or otherwise), security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, any capitalized lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.

"<u>Major Event of Default</u>" means an Event of Default described in the following clauses of the definition of "Event of Default": (a), (b)(i), (c), (e), (f) and (i).

"<u>Material Adverse Effect</u>" means a material adverse effect on any of (a) the assets, liabilities, or condition (financial or otherwise) of the Borrower, (b) the ability of the Borrower to perform any of its obligations under this Note or any other Note Document, (c) the legality, validity or enforceability of this Note or any other Note Document, (d) the rights and remedies of the Lender under this Note or any other Note Document, or (e) the validity, perfection or priority of a Lien granted by Borrower in favor of the Lender on the Collateral.

"<u>Maturity Date</u>" means the earlier to occur of (a) the one (1) year anniversary of the Effective Date, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

"<u>Note Document</u>" means this Note, the Guaranty, the TM Security Agreement, and any other agreement, instrument, certificate, report and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing the Loan or any other Obligation.

"<u>Obligations</u>" means all present and future indebtedness, obligations, and liabilities of the Borrower to the Lender as such arising under or in connection with this Note or any other Note Document, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any Insolvency Proceeding. Without limiting the generality of the foregoing, the Obligations of the Borrower under the Note Documents include (a) the obligation (irrespective of whether a claim therefor is allowed in an Insolvency Proceeding) to pay principal, interest, charges, expenses, premiums, fees, attorneys' fees and disbursements, indemnities and other amounts payable by such Person under the Note Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that the Lender (in its sole discretion) may elect to pay or advance on behalf of such Person as permitted under this Note.

"<u>Patents</u>" means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

"<u>Person</u>" means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.

"<u>Responsible Officer</u>" means the chief executive officer, president, vice president, chief financial officer, treasurer, controller or comptroller of the Borrower, but in any event, with respect to financial matters, the chief financial officer, treasurer, controller or comptroller of the Borrower.

"<u>Securities Account</u>" is any "securities account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Subsidiary</u>" is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower.

"<u>TM Security Agreement</u>" means that certain Trademark Security Agreement, dated as of the date of this Note, by Borrower in favor of Lender.

"<u>Trademarks</u>" means, with respect to any Person, any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of such Person connected with and symbolized by such trademarks.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the laws of any other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code as in effect from time to time in such state.

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (iv) all references herein to Sections, Exhibits and Schedules (if any) shall be construed to refer to Sections of, and Exhibits and Schedules to, this Note and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any right or interest in or to assets and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

**EXHIBIT B**

**CERTAIN COLLATERAL RIGHTS**

Upon the occurrence and during the continuance of a Major Event of Default, the Borrower agrees that the Lender may cause all or any of the Collateral to be transferred into its name or into the name of its custodians or nominees.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender may, but without obligation to do so, demand, sue for and/or collect any money or property at any time due, payable or receivable, to which it may be entitled hereunder, on account of, or in exchange for, any of the Collateral and shall have the right, for and in the name, place and stead of the Borrower, to execute endorsements, assignments or other instruments of conveyance or transfer with respect to all or any of the Collateral.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender shall have the right at any time thereafter to sell, resell, assign and deliver all or any of the Collateral in one or more parcels at any exchange or broker's board or at a public or private sale. Any such sale shall be conducted in good faith and in a "commercially reasonable" manner within the meaning of any applicable uniform commercial code. The Borrower agrees that, to the extent notice of sale shall be required by law, at least ten (10) days' prior written notice to the Borrower of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.

The Borrower hereby authorizes the Lender to file at any time and from time to time to file one or more financing or continuation statements and amendments thereto, relating to the Collateral (including, without limitation, any such financing statements that (i) describe or identify the Collateral by type or in any other manner as the Lender may determine, and (ii) contain any other information required by Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment).

The Borrower shall, from time to time, (i) immediately take all actions as may be requested by the Lender to perfect the security interest of the Lender in the Collateral, including, without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106 and 9-106 of the UCC, and (ii) after a Major Event of Default, immediately take all actions as may be reasonably requested from time to time by the Lender so that control of such Collateral is obtained and at all times held by the Lender. All of the foregoing shall be at the sole cost and expense of the Borrower.

The Borrower agrees that at any time and from time to time, at the expense of the Borrower, the Borrower will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary, or that the Lender may reasonably request, in order to perfect and protect any security interest granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

If the Borrower fails to perform any obligation contained in this Note, the Lender may itself perform, or cause performance of, such obligation, and the expenses of the Lender incurred in connection therewith shall be payable by the Borrower; <u>provided</u> that, the Lender shall not be required to perform or discharge any obligation of the Borrower. The Borrower hereby appoints the Lender as each Borrower 's attorney-in-fact, with full authority in the place and stead of the Borrower and in the name of the Borrower or otherwise, from time to time during the continuance of an Event of Default in the Lender's discretion to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Note (but the Lender shall not be obligated to and shall have no liability to the Borrower or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

The Lender shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable care. The Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Lender accords its own property, it being understood that the Lender shall not have any responsibility for (i) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Lender has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Collateral. Nothing set forth in this Note, nor the exercise by the Lender of any of the rights and remedies hereunder, shall relieve the Borrower from the performance of any obligation on the Borrower's part to be performed or observed in respect of any of the Collateral.

Following a Major Event of Default, the Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Lender to or for the credit or the account of the Borrower against any and all of the Obligations, irrespective of whether or not the Lender shall have made any demand for payment and although such Obligations may be unmatured. The rights of the Lender under the immediately preceding sentence are in addition to other rights and remedies (including, without limitation, other rights of set-off) that the Lender may have.

## Exhibit 10.4

**Exhibit 10.4**

Execution Version

<u>AMENDMENT NO. 1 TO SECURED PROMISSORY NOTE,</u>

<u>WAIVER AND CONSENT</u>

THIS AMENDMENT NO. 1 TO SECURED PROMISSORY NOTE, WAIVER AND CONSENT (this "<u>Amendment</u>") is made as of February 14, 2025 (the "<u>Amendment Effective Date</u>"), and amends and is supplemental to that certain Secured Promissory Note dated as of April 12, 2024 (as amended, modified, waived, supplemented, extended and/or restated from time to time prior to the date hereof, the "<u>Existing Note</u>" and, as amended by this Amendment, the "<u>Note</u>"), and is by and between Resonant Subholdings Inc. a Delaware corporation, as borrower (the "<u>Borrower</u>") and Half Church Holdings Pte. Ltd., a company formed under the laws of Singapore, as lender (the "<u>Lender</u>"). Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Note.

 <u>WITNESSETH</u>

WHEREAS, pursuant to Section II(a) of the Existing Note, the Borrower is required to pay the Lender Monthly Payments on each Payment Date starting on the First Payment Date until and including the Maturity Date;

WHEREAS, the Borrower has failed to make the Monthly Payments as required under the Existing Note on the Payment Dates occurring on: (i) August 12, 2024, (ii) September 12, 2024, (iii) October 12, 2024, (iv) November 12, 2024, and (v) January 12, 2025 (each, an "<u>Incomplete Payment</u>") and each Incomplete Payment is (x) an Event of Default as described in clause (a)(i) of the definition of "Event of Default" in Exhibit A of the Note and (y) a Major Event of Default as described in the definition of "Major Event of Default" in Exhibit A of the Note (each of the foregoing Events of Default and Major Events of Default, collectively, the "<u>Designated Events of Default</u>");

WHEREAS, the Borrower has requested that the Lender (i) amend the Note to, among other things, extend the Maturity Date of the Note and update the terms of the Monthly Payments, (ii) waive the Designated Events of Default, and (iii) apply toward the repayment of interest and principal under the Note transfers of shares from certain affiliates of the Borrower pursuant to the De Soi Stock Transfer and the Good Twin Stock Transfers (each as defined below) (the "<u>In Kind Exchange</u>"), the fair market value of which reflects the interest and principal under the Note so repaid; and

WHEREAS, the Lender is willing to, among other things, (i) waive the Designated Events of Default, (ii) consent to the In Kind Exchange and (iii) amend certain terms of the Existing Note, as set forth herein, in each case to be effective as of the Amendment Effective Date.

NOW, THEREFORE, subject to and upon the terms and conditions set forth herein, and in consideration of the premises set forth above, the covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree 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;1. <u>Waiver</u>. Subject to the terms and conditions set forth herein and in accordance with Section XI(b)of the Existing Note, the Lender hereby waives the Designated Events of Default. The waiver set forth in this <u>Section 1</u> (the "<u>Waiver</u>") is limited to the Designated Events of Default and no other terms, covenants or provisions of the Note shall in any way be affected hereby. The Waiver shall not in any manner create a course of dealing or otherwise impair the future ability of the Lender to declare an Event of Default or Major Event of Default, as applicable, under, or to otherwise enforce the terms of, the Note with respect to any matter other than the Designated Events of Default specifically and expressly waived in, and subject to the terms of, the Waiver. Notwithstanding any prior, temporary mutual disregard of the terms of any contracts between the parties, the Borrower hereby agrees that it shall be required strictly to comply with all of the terms of the Note on and after the Amendment Effective 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;2. <u>Consent</u>. Subject to the satisfaction of the conditions precedent set forth in <u>Section</u> 5 and the other terms and conditions of this Amendment, the Lender hereby consents to apply (in lieu of cash) toward the repayment of interest and principal under the Note (i) the transfer of certain shares pursuant to the De Soi Stock Transfer, reflecting an aggregate fair market value of $1,000,000.00 for such shares at the time of such transfer, and (ii) the transfer of certain shares pursuant to the Good Twin Stock Transfers, reflecting an initial aggregate fair market value of $500,000.00 for such shares at the time of such transfer(s). The De Soi Stock Transfer and the Good Twin Stock Transfers each form part of the consideration for the amendments, waivers and consents that the Lender is agreeing to 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;3. <u>Amendment of the Note</u>. The parties hereto agree 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;(a) All references to "this Agreement" or "this Note" unless otherwise specified shall be deemed to refer to the Note, as amended hereby, and each reference to the "Note", including any prior iteration thereof, unless otherwise specified, in any loan document shall be deemed to be a reference to the Note, as amended, supplemented or otherwise modified from time to time, including but not limited to as amended by this Amendment.

&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) The Existing Note is hereby amended to delete the stricken text (indicated textually in the same manner as the following example:) and to add the bold and underlined text (indicated textually in the same manner as the following example: bold and underlined text) as set forth in this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The date of the Existing Note shall be amended as follows: "April 15, 2024".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Section II(a) of the Existing Note shall be amended as follows:

"(a) **Payments**. Beginning with the first month that ends at least ninety (90) days after

the Effective Date, the Borrower shall make payments to the Lender in the amount set forth in the Repayment Schedule attached as Exhibit C hereto (each a "<u>Monthly Payment</u>") on the 15th of each month (each a "<u>Payment Date</u>") until and including on the Maturity Date. Monthly Payments shall begin to accrue on June 15, 2024 and shall be paid in arrears on each Payment Date thereafter. The first Monthly Payment is due and payable on July 15, 2024 (the "<u>First Payment Date</u>") and the last Monthly Payment is due and payable on the Maturity Date. The amount of Monthly Payments due and payable each month is fixed and independent of the outstanding Principal Amount at the time such Monthly Payment is due or paid. Any amount of a Monthly Payment that does not reduce the outstanding Principal Amount is interest on the Loan."

&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) A new definition of "First Amendment" shall be added in Exhibit A of the Existing

Note to read in its entirety as follows:

""<u>First Amendment</u>" means that certain Amendment No. 1 to Secured Promissory Note, Waiver and Consent, dated February 14, 2025, between Borrower and Lender."

&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) The definition of "Maturity Date" set forth in Exhibit A of the Existing Note shall be amended and restated in its entirety as follows:

""<u>Maturity Date</u>" means the earlier to occur of (a) September 15, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

&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) A new <u>Exhibit C</u> (Repayment Schedule) shall be added to the Existing Note to read in its entirety as set forth on <u>Annex A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Effect of Amendment, Waiver and Consent</u>. Except as expressly set forth herein, (a) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lender under the Note, and (b) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Note or any other provision of such agreement. Each and every term, condition, obligation, covenant and agreement contained in the Note is hereby ratified and re-affirmed in all respects and shall continue in full force and effect. The Borrower consents to this Amendment and confirms and reaffirms (i) that all obligations of such party under the Note shall continue to apply to the Note, (ii) its prior pledges and grants of security interests and liens on the Collateral to secure the Obligations pursuant to the Note and (iv) such prior pledges and grants of security interests and liens on the Collateral to secure the Obligations, as applicable, shall continue to be in full force and effect and shall continue to inure to the benefit of the Lender. This Amendment shall not constitute a novation of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Effectiveness of this Amendment</u>. This Amendment shall become effective without any further action required to be taken as of the Amendment Effective Date upon the receipt by the Lender of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a copy of this Amendment, duly executed by the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Unit Transfer Agreement duly executed by the Lender and Amass Brands Inc, a Delaware corporation
(" <u>Amass</u> "), effecting the transfer from Amass to the Lender of certain equity interests in Amass De Soi Holdings LLC,
a Delaware corporation (the " <u>De Soi Stock Transfer</u> "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a SAFE (Simple Agreement for Future Equity) duly executed by the Lender and WKND Drinks Inc., a Delaware
corporation (" <u>Good Twin</u> "), which grants the Lender the right to receive certain equity interest in Good Twin at a future
date (the " <u>Good Twin SAFE</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;6. <u>Post-Closing Obligations</u>. If, after the Amendment Effective Date, the equity interests transferred pursuant to the Good Twin SAFE shall represent less than ten (10%) percent of the total equity interests of Good Twin, then the Borrower shall transfer additional shares to the Lender in an amount sufficient for the Lender to maintain a ten (10%) percent ownership interest in Good Twin (each such event, a "<u>Good Twin True-Up</u>" and, together with the Good Twin SAFE, the "<u>Good Twin Stock Transfers</u>"). In the event of a Good Twin True-Up, the fair market value of the additional shares at the time of transfer by Borrower shall be applied toward the In Kind Exchange on a dollar-for-dollar basis and the Repayment Schedule set forth on Exhibit C of the Note shall be updated to reflect such amounts accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Representations and Warranties; No Default</u>. The Borrower represents and warrants to the Lender as of the date hereof that, after giving effect to this Amendment, (a) all representations and warranties contained in the Note are true, accurate and complete in all respects except to the extent such representations and warranties expressly reference an earlier date, in which case such representations and warranties shall be true and correct in all respects as of such earlier date, and (b) no default, Event of Default or Major Event of Default has occurred and is continuing, or would result immediately after giving effect to the terms of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Ratification and Affirmation</u>. The Borrower hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under the Note and (ii) ratifies and reaffirms each grant of a lien on, or security interest in, its property made pursuant to the Note and confirms that such liens and security interests continue to secure the Obligations under the Note, subject to the terms thereof. This Amendment shall not constitute a novation of any Obligations existing prior to the date hereof and shall merely amend or otherwise modify such Obligations to the extent 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;9. <u>No Other Amendment</u>. Except as expressly provided herein, all other terms and conditions of the Note shall remain in full force and effect and the Note shall be read and construed as if the terms of this Amendment were included therein by way of addition or substitution, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Miscellaneous</u>. The terms and provisions of Section XI(a), (b), (c), (j), (k), (l) and (m) of the Note are hereby incorporated herein by reference and shall apply to this Amendment *mutatis mutandis* as if fully 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;11. <u>Execution in Counterparts; Electronic Signatures</u>. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one document. To facilitate execution of this Amendment, the parties may execute and exchange signature pages by facsimile or via electronic mail (\*.pdf or similar file types). The parties further agree that counterparts of this Amendment may be signed electronically via Adobe Sign, DocuSign protocol or other electronic platform. All such signatures may be used in the place of original "wet ink" signatures to this Amendment and shall have the same legal effect as the physical delivery of an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Rules of Construction</u>. The parties acknowledge that the parties have reviewed and revised this Amendment and agree that the normal rule of construction - to the effect that any ambiguities are to be resolved against the drafting party - shall not be employed in the interpretation of this Amendment or amendments hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Recitals</u>. The recitals are incorporated by reference as substantive provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Effect of Amendment</u>. All references to the Note on and after the Amendment Effective Date shall be deemed to refer to the Note as amended hereby, and the parties hereto agree that, except as amended and/or supplemented by this Amendment, all of the terms and provisions of the Existing Note shall remain in full force and effect.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their duly authorized signatories as of the date first above written.

---

| | |
|:---|:---|
| BORROWER: | BORROWER: |
| **RESONANT SUBHOLDINGS INC.** | **RESONANT SUBHOLDINGS INC.** |
| By: | /s/ Geoff McFarlane |
| Name: Geoff McFarlane | Name: Geoff McFarlane |
| Title: President | Title: President |
| Address: | Address: |
| 1853 Lions Ridge Loop<br> E Vail, CO 81657 | 1853 Lions Ridge Loop<br> E Vail, CO 81657 |
| <u>geoff@claritydistro.com</u> | <u>geoff@claritydistro.com</u> |

---

*[Signature Page to Amendment No. 1 to Secured Promissory Note, Waiver and Consent]*

---

| | |
|:---|:---|
| LENDER: | LENDER: |
| **HALF CHURCH HOLDINGS PTE. LTD.** | **HALF CHURCH HOLDINGS PTE. LTD.** |
| By: | /s/ Andrew William Sallay |
| Name: Andrew William Sallay | Name: Andrew William Sallay |
| Title: Chief Executive Officer | Title: Chief Executive Officer |
| Address: | Address: |
| 30 Cecil Street | 30 Cecil Street |
| #18-02/03 | #18-02/03 |
| Prudential Tower | Prudential Tower |
| Singapore 049712 | Singapore 049712 |
| <u>aws@adallon.com</u> | <u>aws@adallon.com</u> |

---

*[Signature Page to Amendment No. 1 to Secured Promissory Note, Waiver and Consent]*

ANNEX A

[Attached.]

**EXHIBIT C**

**REPAYMENT SCHEDULE**

---

| | | | |
|:---|:---|:---|:---|
| **Payment Date:** | **Monthly Payment:** | **Interest:** | **Outstanding Principal** <br> **(after Monthly<br> Payment):** |
| July 15, 2024 | $300000.00 | $218750.00 | $2418750.00 |
| August 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| September 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| October 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| November 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| December 15, 2024 | $300000.00 | $164585.00 | $2283335.00 |
| January 15, 2025 | $50000.00 | $50000.00 | $2283335.00 |
| February 15, 2025 | $1550000.00 | $1033665.00 | $1767000.00 |
| March 15, 2025 | $50000.00 | $0.00 | $1717000.00 |
| April 15, 2025 | $300000.00 | $0.00 | $1417000.00 |
| May 15, 2025 | $300000.00 | $0.00 | $1117000.00 |
| June 15, 2025 | $300000.00 | $0.00 | $817000.00 |
| July 15, 2025 | $300000.00 | $0.00 | $517000.00 |
| August 15, 2025 | $300000.00 | $0.00 | $217000.00 |
| September 15, 2025 | $217000.00 | $0.00 | $0.00 |
|  | **TOTAL:** | $1677000.00 | $**0.00** |

---

## Exhibit 10.5

**Exhibit 10.5**

<u>AMENDMENT NO. 1 TO SECURED PROMISSORY NOTE,</u>

<u>WAIVER AND CONSENT</u>

THIS AMENDMENT NO. 1 TO SECURED PROMISSORY NOTE, WAIVER AND CONSENT (this "<u>Amendment</u>") is made as of February 26, 2025 (the "<u>Amendment Effective Date</u>"), and amends and is supplemental to that certain Secured Promissory Note dated as of April 12, 2024 (as amended, modified, waived, supplemented, extended and/or restated from time to time prior to the date hereof, the "<u>Existing Note</u>" and, as amended by this Amendment, the "<u>Note</u>"), and is by and between Resonant Subholdings Inc. a Delaware corporation, as borrower (the "<u>Borrower</u>") and Half Church Holdings Pte. Ltd., a company formed under the laws of Singapore, as lender (the "<u>Lender</u>"). Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Note.

<u>WITNESSETH</u>

WHEREAS, pursuant to Section II(a) of the Existing Note, the Borrower is required to pay the Lender Monthly Payments on each Payment Date starting on the First Payment Date until and including the Maturity Date;

WHEREAS, the Borrower has requested that the Lender (i) amend the Note to, among other things, extend the Maturity Date of the Note and update the terms of the Monthly Payments, and (ii) apply toward the repayment of interest under the Note the subscription of shares pursuant to the Afterdream Stock Issuance (as defined below) (the "<u>In Kind Exchange</u>"), the fair market value of which reflects the interest under the Note so repaid; and

WHEREAS, the Lender is willing to, among other things, (i) consent to the In Kind Exchange and (ii) amend certain terms of the Existing Note, as set forth herein, in each case to be effective as of the Amendment Effective Date.

NOW, THEREFORE, subject to and upon the terms and conditions set forth herein, and in consideration of the premises set forth above, the covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree 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;1. <u>Consent</u>. Subject to the satisfaction of the conditions precedent set forth in <u>Section 4</u> and the other terms and conditions of this Amendment, the Lender hereby consents to apply (in lieu of cash) toward the repayment of interest under the Note the subscription of certain shares pursuant to the Afterdream Stock Issuance, reflecting an initial fair market value of $0.00001 for such shares at the time of such issuance. The Afterdream Stock Issuance forms part of the consideration for the amendments, and consents that the Lender is agreeing to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendment of the Note</u>. The parties hereto agree 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;&nbsp;&nbsp;&nbsp;&nbsp;(a) All references to "this Agreement" or "this Note" unless otherwise specified shall be deemed to refer to the Note, as amended hereby, and each reference to the "Note", including any prior iteration thereof, unless otherwise specified, in any loan document shall be deemed to be a reference to the Note, as amended, supplemented or otherwise modified from time to time, including but not limited to as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Existing Note is hereby amended to delete the stricken text (indicated textually in the same manner as the following example:) and to add the bold and underlined text (indicated textually in the same manner as the following example: bold and underlined text) as set forth in this <u>Section 1</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;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section II(a) of the Existing Note shall be amended as follows:

"(a) **Payments**. Beginning with the first month that ends at least ninety (90) days after the Effective Date, the Borrower shall make payments to the Lender in the amount set forth in the Repayment Schedule attached as Exhibit C hereto (each a "Monthly Payment") on the 15th of each month (each a "Payment Date") until and including on the Maturity Date. Monthly Payments shall begin to accrue on June 15, 2024 and shall be paid in arrears on each Payment Date thereafter. The first Monthly Payment is due and payable on July 15, 2024 (the "First Payment Date") and the last Monthly Payment is due and payable on the Maturity Date. The amount of Monthly Payments due and payable each month is fixed and independent of the outstanding Principal Amount at the time such Monthly Payment is due or paid. Any amount of a Monthly Payment that does not reduce the outstanding Principal Amount is interest on the Loan. Commencing with the Monthly Payment due on April 15, 2025, the Borrower shall remit to the Lender a minimum Monthly Payment of $50,000.00 until the Maturity Date, and the Borrower retains the discretionary right to make additional payments in excess of the required minimum monthly amount at its sole election. Any such additional payments made in excess of the required minimum Monthly Payment shall be applied toward reducing the amount of the final Monthly Payment due on the Maturity Date as set forth in Exhibit C"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Section II(b) of the Existing Note shall be amended as follows:

"(b) Late Penalties. If any Monthly Payment is not paid on time in accordance with Section II.(a) above or any Event of Default that is not a Major Event of Default has occurred and is continuing pursuant to Section VIII(b) below, then in each case, a late penalty of $2,000 per day (the "Late Penalty") shall be charged against the Borrower, beginning on the first calendar day after a Monthly Payment is due but not paid, until all past due Monthly Payments are paid in full by the Borrower. The Late Penalty is due immediately to the Lender. The Late Penalty shall continue to accrue each day for so long as any portion of the Monthly Payment remains outstanding. Furthermore, in the event the Borrower fails to fully repay any outstanding principal amount on the Maturity Date, the Borrower shall without delay deliver to the Lender a duly executed Stock Transfer Agreement from a shareholder of Afterdream holding at least 5 of the total outstanding shares in Afterdream, effecting the transfer of 5 of the total issued and outstanding shares of Afterdream to the Lender."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) A new definition of "Second Amendment" shall be added in Exhibit A of the Existing Note to read in its entirety as follows:

""<u>Second Amendment</u>" means that certain Amendment No. 2 to Secured Promissory Note, Waiver and Consent, dated February 26, 2025, between Borrower and Lender."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The definition of "Maturity Date" set forth in Exhibit A of the Existing Note shall be amended and restated in its entirety as follows:

""<u>Maturity Date</u>" means the earlier to occur of (a) December 15, 2025, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) A new <u>Exhibit C</u> (Repayment Schedule) shall be added to the Existing Note to read in its entirety as set forth on <u>Annex A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>ffect of Amendment, Waiver and Consent</u>. Except as expressly set forth herein, (a) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lender under the Note, and (b) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Note or any other provision of such agreement. Each and every term, condition, obligation, covenant and agreement contained in the Note is hereby ratified and re-affirmed in all respects and shall continue in full force and effect. The Borrower consents to this Amendment and confirms and reaffirms (i) that all obligations of such party under the Note shall continue to apply to the Note, (ii) its prior pledges and grants of security interests and liens on the Collateral to secure the Obligations pursuant to the Note and (iv) such prior pledges and grants of security interests and liens on the Collateral to secure the Obligations, as applicable, shall continue to be in full force and effect and shall continue to inure to the benefit of the Lender. This Amendment shall not constitute a novation of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Effectiveness of this Amendment</u>. This Amendment shall become effective without any further action required to be taken as of the Amendment Effective Date upon the receipt by the Lender of each of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a copy of this Amendment, duly executed by the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Share Issuance Agreement duly executed by the Lender and Afterdream, Inc, a Delaware corporation ("Afterdream"),
effecting the issuance of 1,000,000 Common Stock shares in Afterdream to the Lender (the " <u>Afterdream Stock Issuance</u> ");
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;5. <u>Representations and Warranties; No Default</u>. The Borrower represents and warrants to the Lender as of the date hereof that, after giving effect to this Amendment, (a) all representations and warranties contained in the Note are true, accurate and complete in all respects except to the extent such representations and warranties expressly reference an earlier date, in which case such representations and warranties shall be true and correct in all respects as of such earlier date, and (b) no default, Event of Default or Major Event of Default has occurred and is continuing, or would result immediately after giving effect to the terms of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Ratification and Affirmation</u>. The Borrower hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under the Note and (ii) ratifies and reaffirms each grant of a lien on, or security interest in, its property made pursuant to the Note and confirms that such liens and security interests continue to secure the Obligations under the Note, subject to the terms thereof. This Amendment shall not constitute a novation of any Obligations existing prior to the date hereof and shall merely amend or otherwise modify such Obligations to the extent 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;7. <u>No Other Amendment</u>. Except as expressly provided herein, all other terms and conditions of the Note shall remain in full force and effect and the Note shall be read and construed as if the terms of this Amendment were included therein by way of addition or substitution, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Miscellaneous</u>. The terms and provisions of Section XI(a), (b), (c), (j), (k), (l) and (m) of the Note are hereby incorporated herein by reference and shall apply to this Amendment *mutatis mutandis* as if fully 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;9. <u>Execution in Counterparts; Electronic Signatures</u>. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one document. To facilitate execution of this Amendment, the parties may execute and exchange signature pages by facsimile or via electronic mail (\*.pdf or similar file types). The parties further agree that counterparts of this Amendment may be signed electronically via Adobe Sign, DocuSign protocol or other electronic platform. All such signatures may be used in the place of original "wet ink" signatures to this Amendment and shall have the same legal effect as the physical delivery of an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Rules of Construction</u>. The parties acknowledge that the parties have reviewed and revised this Amendment and agree that the normal rule of construction - to the effect that any ambiguities are to be resolved against the drafting party - shall not be employed in the interpretation of this Amendment or amendments hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Recitals</u>. The recitals are incorporated by reference as substantive provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Effect of Amendment</u>. All references to the Note on and after the Amendment Effective Date shall be deemed to refer to the Note as amended hereby, and the parties hereto agree that, except as amended and/or supplemented by this Amendment, all of the terms and provisions of the Existing Note shall remain in full force and effect.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their duly authorized signatories as of the date first above written.

---

| | |
|:---|:---|
| BORROWER: | BORROWER: |
| **RESONANT SUBHOLDINGS INC.** | **RESONANT SUBHOLDINGS INC.** |
| By: | /s/ Geoff McFarlane |
| Name: | Geoff McFarlane |
| Title: | President |
| Address: | Address: |
| [\*\*\*] | [\*\*\*] |

---

*[Signature Page to Amendment No. 1 to Secured Promissory Note, Waiver and Consent]*

---

| | |
|:---|:---|
| LENDER: | LENDER: |
| **HALF CHURCH HOLDINGS PTE. LTD.** | **HALF CHURCH HOLDINGS PTE. LTD.** |
| By: | ![](amass003_ex10-5img01.jpg) |
| Name: | [\*\*\*] |
| Title: | Chief Executive Officer |
| Address: | Address: |
| [\*\*\*] | [\*\*\*] |

---

*[Signature Page to Amendment No. 1 to Secured Promissory Note, Waiver and Consent]*

ANNEX A

[Attached.]

**EXHIBIT C**

**REPAYMENT SCHEDULE**

---

| | | | |
|:---|:---|:---|:---|
| <br>**Payment Date:** |<br>**Monthly Payment:** |<br>**Interest:** | **Outstanding Principal**<br>**(after Monthly**<br>**Payment):** |
| July 15, 2024 | $300000.00 | $218750.00 | $2418750.00 |
| August 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| September 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| October 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| November 15, 2024 | $50000.00 | $50000.00 | $2418750.00 |
| December 15, 2024 | $300000.00 | $164585.00 | $2283335.00 |
| January 15, 2025 | $50000.00 | $50000.00 | $2283335.00 |
| February 15, 2025 | $1550000.00 | $1033665.00 | $1767000.00 |
| March 15, 2025 | $50000.00 | $0.00 | $1717000.00 |
| April 15, 2025 | $50010.00 | $10.00 | $1667000.00 |
| May 15, 2025 | $50000.00 | $0.00 | $1617000.00 |
| June 15, 2025 | $50000.00 | $0.00 | $1567000.00 |
| July 15, 2025 | $50000.00 | $0.00 | $1517000.00 |
| August 15, 2025 | $50000.00 | $0.00 | $1467000.00 |
| September 15, 2025 | $50000.00 | $0.00 | $1417000.00 |
| October 15, 2025 | $50000.00 | $0.00 | $1367000.00 |
| November 15, 2025 | $50000.00 | $0.00 | $1317000.00 |
| December 15, 2025 | $1317000.00 | $0.00 | $0.00 |
|  | **TOTAL:** | $**1667010.00** | $**0.00** |

---

## Exhibit 10.6

**Exhibit 10.6**

***Execution Version***

**ASSET PURCHASE AGREEMENT**

between

**AMASS BRANDS, INC.**

and

**RESONANT SUBHOLDINGS INC.**

dated as of

April 12, 2024

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| ARTICLE I PURCHASE AND SALE | 4 |
| &nbsp;&nbsp;&nbsp;**Section 1.01 Purchase and Sale of Assets** | 4 |
| &nbsp;&nbsp;&nbsp;**Section 1.03 No Liabilities/Assumption of Liabilities** | 4 |
| &nbsp;&nbsp;&nbsp;**Section 1.04 Purchase Price** | 4 |
| &nbsp;&nbsp;&nbsp;**Section 1.06 Withholding Tax** | 4 |
| ARTICLE II CLOSING | 4 |
| &nbsp;&nbsp;&nbsp;**Section 2.01 Closing** | 4 |
| &nbsp;&nbsp;&nbsp;**Section 2.02 Closing Deliverables** | 5 |
| ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER | 5 |
| &nbsp;&nbsp;&nbsp;**Section 3.01 Organization and Authority of Seller; Enforceability** | 5 |
| &nbsp;&nbsp;&nbsp;**Section 3.02 No Conflicts; Consents** | 6 |
| &nbsp;&nbsp;&nbsp;**Section 3.03 Title to Purchased Assets** | 6 |
| &nbsp;&nbsp;&nbsp;**Section 3.04 Intellectual Property** | 6 |
| &nbsp;&nbsp;&nbsp;**Section 3.05 Compliance With Laws** | 7 |
| &nbsp;&nbsp;&nbsp;**Section 3.06 Legal Proceedings** | 7 |
| &nbsp;&nbsp;&nbsp;**Section 3.07 Brokers** | 7 |
| &nbsp;&nbsp;&nbsp;**Section 3.08 [Full Disclosure** | 7 |
| ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER | 7 |
| &nbsp;&nbsp;&nbsp;**Section 4.01 Organization and Authority of Buyer; Enforceability** | 7 |
| &nbsp;&nbsp;&nbsp;**Section 4.02 No Conflicts; Consents** | 8 |
| &nbsp;&nbsp;&nbsp;**Section 4.03 Legal Proceedings** | 8 |
| &nbsp;&nbsp;&nbsp;**Section 4.04 Brokers** | 8 |
| ARTICLE V COVENANTS | 8 |
| &nbsp;&nbsp;&nbsp;**Section 5.01 Public Announcements** | 8 |
| &nbsp;&nbsp;&nbsp;**Section 5.02 Transfer Taxes** | 8 |
| &nbsp;&nbsp;&nbsp;**Section 5.03 Further Assurances** | 8 |
| ARTICLE VI INDEMNIFICATION | 9 |
| &nbsp;&nbsp;&nbsp;**Section 6.01 Survival** | 9 |
| &nbsp;&nbsp;&nbsp;**Section 6.02 Indemnification By Seller** | 9 |
| &nbsp;&nbsp;&nbsp;**Section 6.03 Indemnification By Buyer** | 9 |
| &nbsp;&nbsp;&nbsp;**Section 6.04 Indemnification Procedures** | 9 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Section 6.05 Tax Treatment of Indemnification Payments** | 9 |
| &nbsp;&nbsp;&nbsp;**Section 6.06 Effect of Investigation** | 10 |
| &nbsp;&nbsp;&nbsp;**Section 6.07 Cumulative Remedies** | 10 |
| ARTICLE VII MISCELLANEOUS | 10 |
| &nbsp;&nbsp;&nbsp;**Section 7.01 Expenses** | 10 |
| &nbsp;&nbsp;&nbsp;**Section 7.02 Notices** | 10 |
| &nbsp;&nbsp;&nbsp;**Section 7.03 Headings** | 10 |
| &nbsp;&nbsp;&nbsp;**Section 7.04 Severability** | 10 |
| &nbsp;&nbsp;&nbsp;**Section 7.05 Entire Agreement** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.06 Successors and Assigns** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.07 No Third-Party Beneficiaries** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.08 Amendment and Modification** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.09 Waiver** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.10 Governing Law** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.11 Submission to Jurisdiction** | 11 |
| &nbsp;&nbsp;&nbsp;**Section 7.12 Waiver of Jury Trial** | 12 |
| &nbsp;&nbsp;&nbsp;**Section 7.13 Specific Performance** | 12 |
| &nbsp;&nbsp;&nbsp;**Section 7.14 Counterparts** | 12 |

---

**ASSET PURCHASE AGREEMENT**

This Asset Purchase Agreement (this "**Agreement**"), dated as of April 12, 2024, is entered into between Amass Brands, Inc., a Delaware corporation ("**Seller**") and Resonant Subholdings Inc., a Delaware corporation ("**Buyer**").

**RECITALS**

WHEREAS, Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, the rights and obligations of Seller to the Purchased Assets (as defined herein), subject to the terms and conditions set forth herein;

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

**ARTICLE I**

**PURCHASE AND SALE**

**Section 1.01 Purchase and Sale of Assets.** Subject to the terms and conditions set forth herein, Seller shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from Seller, all of Seller's right, title and interest in the assets set forth on Section 1.01 of the disclosure schedules ("**Disclosure Schedules**") attached hereto (the "**Purchased Assets**"), free and clear of any mortgage, pledge, lien, charge, security interest, claim or other encumbrance ("**Encumbrance**").

**Section 1.02 No Liabilities/Assumption of Liabilities.** Buyer shall not assume any liabilities or obligations of Seller of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing or hereinafter created.

**Section 1.03 Purchase Price.** The aggregate purchase price for the Purchased Assets shall be $2,500,000 (the "**Purchase Price**"). The Buyer shall pay the Purchase Price to Seller at the Closing (as defined herein) in cash, by wire transfer of immediately available funds in accordance with the wire transfer instructions separately disclosed to Buyer by Seller.

**Section 1.04 Withholding Tax.** Buyer shall be entitled to deduct and withhold from the Purchase Price all taxes that Buyer may be required to deduct and withhold under any applicable tax law. All such withheld amounts shall be treated as delivered to Seller hereunder.

**ARTICLE II**

**CLOSING**

**Section 2.01 Closing.** The closing of the transactions contemplated by this Agreement (the "**Closing**") shall take place simultaneously with the execution of this Agreement on the date of this Agreement (the "**Closing Date**") remotely by exchange of documents and signatures (or their electronic counterparts). The consummation of the transactions contemplated by this Agreement shall be deemed to occur at 12:01 a.m. on the Closing Date.

**Section 2.02 Closing Deliverables.**

&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) At the Closing, Seller shall deliver to Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Trademark Assignment Agreement in form and substance satisfactory to Buyer (the "**TM Assignment**"), duly executed by Seller and accepted by Buyer, transferring all of Seller's right, title and interest in and to the trademark registrations, included in the Purchased Assets to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) resolutions of the board of directors of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement and the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to Buyer, as may be required to give effect to 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;(b) At the Closing, Buyer shall deliver to Seller the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Purchase Price by wire transfer of immediately available funds to an account designated in writing by Seller to Buyer; 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the TM Assignment Agreement duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) resolutions of the board of directors of Buyer, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement and the transactions contemplated hereby.

**ARTICLE III**

**REPRESENTATIONS AND WARRANTIES OF SELLER**

Seller represents and warrants to Buyer that the statements contained in this ARTICLE III are true and correct as of the date hereof. For purposes of this ARTICLE III, "Seller's knowledge," "knowledge of Seller" and any similar phrases shall mean the actual or constructive knowledge of any director or officer of Seller, after due inquiry.

**Section 3.01 Organization and Authority of Seller; Enforceability.** Seller is a corporation duly organized, validly existing and in good standing under the laws of the state of Delaware. Seller has full corporate power and authority to enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by Seller of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Seller. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement and the documents to be delivered hereunder constitute legal, valid and binding obligations of Seller, enforceable against Seller in accordance with their respective terms.

**Section 3.02 No Conflicts; Consents.** The execution, delivery and performance by Seller of this Agreement and the documents to be delivered hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the certificate of incorporation, by-laws or other organizational documents of Seller; (b) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or the Purchased Assets; (c) conflict with, or result in (with or without notice or lapse of time or both) any violation of, or default under, or give rise to a right of termination, acceleration or modification of any obligation or loss of any benefit under any contract or other instrument to which Seller is a party or to which any of the Purchased Assets are subject; or (d) result in the creation or imposition of any Encumbrance on the Purchased Assets. No consent, approval, waiver or authorization is required to be obtained by Seller from any person or entity (including any governmental authority) in connection with the execution, delivery and performance by Seller of this Agreement and the consummation of the transactions contemplated hereby.

**Section 3.03 Title to Purchased Assets.** Seller owns and has good title to the Purchased Assets, free and clear of Encumbrances.

**Section 3.04 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;(a) "**Intellectual Property**" means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential know-how; (iv) patents and patent applications; (v) websites and internet domain name registrations; and (vi) other intellectual property and related proprietary rights, interests and protections (including all rights to sue and recover and retain damages, costs and attorneys' fees for past, present and future infringement and any other rights relating to any of the foregoing).

&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) Section 1.01 of the Disclosure Schedules lists all Intellectual Property included in the Purchased Assets ("**Purchased IP**"). Seller owns or has adequate, valid and enforceable rights to use all the Purchased IP, free and clear of all Encumbrances. Seller is not bound by any outstanding judgment, injunction, order or decree restricting the use of the Purchased IP, or restricting the licensing thereof to any person or entity. With respect to the registered Intellectual Property listed on Section 3.06(b) of the Disclosure Schedules, (i) all such Intellectual Property is valid, subsisting and in full force and effect; and (ii) Seller has paid all maintenance fees and made all filings required to maintain Seller's ownership thereof. For all such registered Intellectual Property, Section 3.06(b) of the Disclosure Schedules lists (A) the jurisdiction where the application or registration is located; (B) the application or registration number; and (C) the application or registration 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;(c) Seller's prior and current use of the Purchased IP has not and does not infringe, violate, dilute or misappropriate the Intellectual Property of any person or entity and there are no claims pending or threatened by any person or entity with respect to the ownership, validity, enforceability, effectiveness or use of the Purchased IP. No person or entity is infringing, misappropriating, diluting or otherwise violating any of the Purchased IP, and neither Seller nor any affiliate of Seller has made or asserted any claim, demand or notice against any person or entity alleging any such infringement, misappropriation, dilution or other violation.

**Section 3.05 Compliance With Laws.** Seller has complied, and is now complying, with all applicable federal, state and local laws and regulations applicable to ownership and use of the Purchased Assets.

**Section 3.06 Legal Proceedings.** There is no claim, action, suit, proceeding or governmental investigation ("**Action**") of any nature pending or, to Seller's knowledge, threatened against or by Seller (a) relating to or affecting the Purchased Assets; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

**Section 3.07 Brokers.** No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller.

**Section 3.08 Full Disclosure.** 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.

**ARTICLE IV**

**REPRESENTATIONS AND WARRANTIES OF BUYER**

Buyer represents and warrants to Seller that the statements contained in this ARTICLE IV are true and correct as of the date hereof. For purposes of this ARTICLE IV, "Buyer's knowledge," "knowledge of Buyer" and any similar phrases shall mean the actual or constructive knowledge of any director or officer of Buyer, after due inquiry.

**Section 4.01 Organization and Authority of Buyer; Enforceability.** Buyer is a corporation duly organized, validly existing and in good standing under the laws of the state of Delaware. Buyer has full corporate power and authority to enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by Seller) this Agreement and the documents to be delivered hereunder constitute legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms.

**Section 4.02 No Conflicts; Consents.** The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the certificate of incorporation, by-laws or other organizational documents of Buyer; or (b) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Buyer. No consent, approval, waiver or authorization is required to be obtained by Buyer from any person or entity (including any governmental authority) in connection with the execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated hereby.

**Section 4.03 Legal Proceedings.** There is no Action of any nature pending or, to Buyer's knowledge, threatened against or by Buyer that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

**Section 4.04 Brokers.** No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

**ARTICLE V**

**COVENANTS**

**Section 5.01 Public Announcements.** Unless otherwise required by applicable law, neither party shall make any public announcements regarding this Agreement or the transactions contemplated hereby without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed).

**Section 5.02 Transfer Taxes.** All transfer, documentary, sales, use, stamp, registration, value added and other such taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the documents to be delivered hereunder shall be borne and paid by Seller when due. Seller shall, at its own expense, timely file any tax return or other document with respect to such taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

**Section 5.03 Further Assurances.** Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the documents to be delivered hereunder.

**ARTICLE VI**

**INDEMNIFICATION**

**Section 6.01 Survival.** All representations, warranties, covenants and agreements contained herein and all related rights to indemnification shall survive the Closing.

**Section 6.02 Indemnification By Seller.** Seller shall defend, indemnify and hold harmless Buyer, its affiliates and their respective stockholders, directors, officers and employees from and against all claims, judgments, damages, liabilities, settlements, losses, costs and expenses, including attorneys' fees and disbursements, arising from or relating 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;(a) any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement or any document to be delivered hereunder; 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;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement or any document to be delivered.

**Section 6.03 Indemnification By Buyer.** Buyer shall defend, indemnify and hold harmless Seller, its affiliates and their respective stockholders, directors, officers and employees from and against all claims, judgments, damages, liabilities, settlements, losses, costs and expenses, including attorneys' fees and disbursements, arising from or relating 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;(a) any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or any document to be delivered hereunder; 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;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement or any document to be delivered hereunder;

**Section 6.04 Indemnification Procedures.** Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification (the "**Indemnified Party**") shall promptly provide written notice of such claim to the other party (the "**Indemnifying Party**"). In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a person or entity who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and at its own cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including, but not limited to, settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any Action without the Indemnified Party's prior written consent (which consent shall not be unreasonably withheld or delayed).

**Section 6.05 Tax Treatment of Indemnification Payments.** All indemnification payments made by Seller under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for tax purposes, unless otherwise required by law.

**Section 6.06 Effect of Investigation.** Buyer's right to indemnification or other remedy based on the representations, warranties, covenants and agreements of Seller contained herein will not be affected by any investigation conducted by Buyer with respect to, or any knowledge acquired by Buyer at any time, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or agreement.

**Section 6.07 Cumulative Remedies.** The rights and remedies provided in this ARTICLE VI are cumulative and are in addition to and not in substitution for any other rights and remedies available at law or in equity or otherwise.

**ARTICLE VII**

**MISCELLANEOUS**

**Section 7.01 Expenses.** All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

**Section 7.02 Notices.** All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.02):

---

| | |
|:---|:---|
| If to Seller: | 927 South Santa Fe Avenue |
|  | Los Angeles, CA 92083 |
|  | E-mail: mark@amass.com |
|  | Attention: Mark Lynn |
| If to Buyer: | [\*\*\*] |

---

**Section 7.03 Headings.** The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 7.04 Severability.** If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

**Section 7.05 Entire Agreement.** This Agreement and the documents to be delivered hereunder constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and the documents to be delivered hereunder, the Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

**Section 7.06 Successors and Assigns.** This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

**Section 7.07 No Third-Party Beneficiaries.** Except as provided in ARTICLE VI, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

**Section 7.08 Amendment and Modification.** This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.

**Section 7.09 Waiver.** No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

**Section 7.10 Governing Law.** 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).

**Section 7.11 Submission to Jurisdiction.** Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the State of New York in each case located in the city of New York and county of New York (Manhattan), and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.

**Section 7.12 Waiver of Jury Trial.** Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

**Section 7.13 Specific Performance.** The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

**Section 7.14 Counterparts.** This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their duly authorized officers or representatives.

---

| | |
|:---|:---|
| AMASS BRANDS, INC. | AMASS BRANDS, INC. |
| By | /s/ Mark Lynn |
| Name: | Mark Lynn |
| Title: | Chief Executive Officer |
| RESONANT SUBHOLDINGS INC. | RESONANT SUBHOLDINGS INC. |
| By | /s/ Geoff McFarlane |
| Name: | Geoff McFarlane |
| Title: | President |

---

[*Signature Page to Asset Purchase Agreement*]

![](amass003_ex10-6img01.jpg)

## Exhibit 10.12

**Exhibit 10.12**

 

*Execution Version*

**ASSET PURCHASE AGREEMENT**

**THIS ASSET PURCHASE AGREEMENT** (this "<u>Agreement"</u>) is made and entered into as of June 11, 2023 by and among Full Glass Wine Co., LLC, a Delaware limited liability company ("<u>Holdco</u>"), Full Glass - Winc, LLC, a Delaware limited liability company ("<u>Buyer</u>"), Project Crush Acquisition Corp LLC, a Delaware limited liability compan<u>y ("PC</u>A") and Project Crush DTC Sub, LLC, a California limited liability company ("<u>DTC</u>", and together with Parent and PCA, each a "<u>Seller</u>" and, col<u>lectivel</u>y, "Sellers") and AMASS Brands Inc., a Delaware cor<u>poratio</u>n ("Parent"). Each of Buyer, DTC, PCA and Parent are sometimes referred to herein as a "<u>Party</u>" or collectively, the "<u>Parties</u>." Capitalized terms used but not defined in the context in which they are used shall have the meaning assigned to such terms in <u>Section 12.15</u>.

**WHEREAS,** the Sellers are engaged, among other things, in the business of producing, marketing and selling wine available for purchase through a multi-brand, direct-to-consumer website or similar site, subscription box or wine club, including without limitation through subscription agreements with consumers (the "<u>Business</u>");

**WHEREAS,** the Sellers acquired substantially all of the assets used in the Business on January 23, 2023 in a purchase (the "<u>BR Purchase</u>") under Sections 363, 365 and the other applicable provisions of Chapter 11 of the United States Bankruptcy Code, 11 U.S.C. § 101, et seq. (the "<u>Bankruptcy Code</u>") in a proceeding before the United States Bankruptcy Court for the District of Delaware (the "<u>Bankruptcy Court</u>", and the cases arising under the related petition, collectively, the "<u>Bankruptcy Cases</u>");

**WHEREAS,** the Buyer wishes to purchase and acquire from the Sellers and the Sellers wish to sell, transfer, convey, assign and deliver to Buyer, in accordance with the terms of this Agreement, all of the Transferred Assets, free and clear of all Liens other than Permitted Liens, together with the Assumed Liabilities, upon the terms and subject to the conditions set forth in this Agreement (collectively with the transactions contemplated herein and the other Transaction Documents, the "<u>Transaction</u>"); and

**WHEREAS,** the Parties intend that the transactions contemplated hereby shall be treated for U.S. federal and applicable state and local income Tax purposes as a part sale of certain Transferred Assets and assumption of certain Assumed Liabilities in exchange for the Closing Cash, the Senior Note, and the Sub Note, and part contribution of the remaining Transferred Assets and Assumed Liabilities to Holdco in a transaction governed by Section 721 of the Code (as Buyer is an entity disregarded as separate from Holdco for such purposes) in exchange for the Closing Stock Consideration (including any future issuance of Units of Holdco under <u>Section 2.1(b)</u>) and the Warrant (including any contingent additional Units issued pursuant to the terms thereof).

**NOW, THEREFORE,** for value received, and in consideration of the foregoing and the mutual covenants, representations, warranties and agreements set forth in this Agreement, and intending to be legally bound hereby, the Parties hereto agree as follows:

**ARTICLE I**

**PURCHASE AND SALE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Purchase and Sale of the Transferred Assets</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>Transferred Assets</u>. On the terms and subject to the conditions set forth in this Agreement, and subject to the exclusions set forth in <u>Section 1.1(b),</u> at the Closing, the Sellers agree to sell, transfer, convey, assign and deliver, or cause BWSC to sell, transfer, convey, assign and deliver, to Buyer (or its designee, which Buyer shall specify in the applicable Bill of Sale, Trademark Assignment Agreement or Assignment and Assumption Agreement), and Buyer (or its designee) shall purchase, acquire and accept from the Sellers and BWSC, all of the Sellers' and BWSC's rights, title and interest of every kind and nature in, to and under the following, free and clear of all Liens, other than Permitted Liens (collectively, the "<u>Transferred Assets</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;(i) the inventory listed on <u>Schedule 1.1(a)(i)</u> (collectively, the " <u>Inventory</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;(ii) the Transferred Technology and the Transferred IPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all copies of the consumer-facing marketing materials that exclusively relate to products that are branded with the Transferred Trademarks and that are in Sellers' or Parents' possession or control as of the Closing (collectively, the "<u>Owned Marketing Materials</u>"), including any Other IP owned by Sellers or Parent in the Owned Marketing 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;(iv) pursuant to the terms of the License Agreement, copies of the consumerfacing marketing materials that (A) are used in connection with the Business as of the Closing and are for products offered under Sellers' retained brands, or (B) are used in connection with both the Business and Retained Business as of the Closing (collectively, the "<u>Licensed Marketing Materials</u>"), in each case as contained in Lingo, but excluding, for clarity, any Intellectual Property Rights in the Licensed Marketing 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;(v) the Trademarks set forth on <u>Schedule 1.1(a)(v)</u> (collectively, the "<u>Transferred Trademarks</u>") and all goodwill associated with the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the Other IP set forth on <u>Schedule 1.1(a)(vi)</u> (collectively, the "<u>Transferred Other IP</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;(vii) the tangible property set forth on <u>Schedule 1.1(a)(vii)</u> (collectively, the "<u>Tangible Personal Property</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;(viii) the Contracts listed on <u>Schedule 1.1(a)(viii)</u> (the "<u>Assumed Contracts</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;(ix) all books and records relating to the Transferred Assets or the Business, including Inventory logs, financial and accounting records, personnel files for Transferred Employees and any other similar records relating to the Transferred Assets or the Business (the "<u>Transferred Books and Records</u>"); <u>provided</u> that for the avoidance of doubt, Transferred Books and Records shall not include Tax Returns that do not solely relate to the Business or the Transferred Assets (as long as Buyer receives a copy of such records), and it is acknowledged that the Sellers may retain copies of the Shared Customer Data as set forth in <u>Section 1.1(b)(xi)</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) all Transferred User Data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Transferred Customer Data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) copies of all Shared Customer Data; <u>provided,</u> it is acknowledged and agreed that Parent also shall retain copies of all Shared Customer Data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) all deposits and prepayments held by third parties pursuant to any Assumed Contract or otherwise in connection with the Business (other than under Excluded Contracts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) all claims, and proceeds thereof, solely to the extent relating to the Transferred Assets or Assumed Liabilities, if any, that arise under any insurance policies retained by Sellers (the "<u>Transferred Claims</u>"); provided that, Transferred Claims shall not include any claims under any insurance policies retained by Sellers to the extent that such claims relate to any Excluded Liabilities and provided, further, that nothing in this Agreement shall be construed to give rise to an obligation of Sellers to maintain any insurance policies.

&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>Excluded Assets</u>. Notwithstanding anything to the contrary herein, nothing in this Agreement or the Transaction Documents shall operate to transfer from Sellers or BWSC, or create an obligation on Sellers or BWSC, to transfer or have transferred any right, title or interest in or to any assets other than the Transferred Assets (collectively, the "<u>Excluded Assets</u>"), including:

&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 Closing Cash actually paid;

&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) all cash and cash equivalents of the Sellers;

&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 Permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Contracts and Leases that are not Assumed Contracts including, without limitation, (A) the Contracts and Leases listed on <u>Schedule 1.1(b)(iv)</u> (collectively, whether or not so listed, the "<u>Excluded Contracts</u>") (and all deposits, prepayments, refunds, and causes of action thereto or arising therefrom) and (B) all Leases to or for the Leased Real 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;(v) other than the Transferred Books and Records, any of the following books and records: corporate seals, organizational documents, minute books, stock books, Tax Returns, books of account or other records having to do with the corporate organization of the Sellers, all employee-related or employee benefit-related files or records and any other books and records that the Sellers are prohibited from disclosing or transferring to Buyer under applicable Law or are required by applicable Law to retain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) except for any Transferred Claims, all insurance policies of the Sellers and all rights to applicable claims and proceeds thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Tax refunds of the Sellers or any Affiliates of the Sellers for Taxes relating to the Business for a Pre-Closing Tax Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all equity securities or other ownership interests of, owned or held by the Sellers (or any of their Subsidiaries or Affiliates) and any Contracts entered into in connection with the sale or ownership of such equity securities or other ownership interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all interests of the Sellers arising under the Transaction Documents, and under any other agreement between the Sellers and Buyer entered into in connection with this Agreement or the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Employee Plans, including the Business Employee Plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) copies of the Shared Customer Data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) all data that are not Transferred Assets or Shared Customer Data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) all Intellectual Property Rights that are not Transferred 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) all Technology other than the Transferred 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) copies held by Sellers and their Affiliates as of Closing of the Licensed Marketing Materials, and all Intellectual Property Rights therein; 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;(xvi) any other assets, properties and rights set forth on <u>Schedule 1.1(b)(xvi)</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;(c) <u>Assumed Liabilities</u>. On the terms and subject to the conditions set forth in this Agreement and subject to the exclusions set forth in <u>Section 1.1(d)</u> as partial consideration for the Transferred Assets, Buyer shall, effective at the time of the Closing, assume and thereafter pay, discharge and perform in accordance with their terms, the Assumed Liabilities. "<u>Assumed Liabilities</u>" shall mean solely the following liabilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities under the Assumed Contracts to the extent such Liabilities either first arise following Closing or arise from any actions or omissions taken by Sellers at the request of Buyer since June 1, 2023 (without duplication of any such Liabilities included in the calculation of Pre-Closing Earnings), but in each case only to the extent that such obligations: (A) do not arise from or relate to any breach or purported breach by a Seller of any provision of any of such Assumed Contracts; and (B) do not arise from or relate to any event, circumstance or condition occurring or existing (or purported to have occurred or being in existence) on or prior to the date of Closing that, with notice or lapse of time, would constitute or result in a breach of any of such Assumed Contracts; <u>provided, however</u>, that the Assumed Contracts shall expressly exclude, and the Buyer shall not assume or be deemed to assume any Liability, arising from or relating to the obligations or performance under, any Excluded Contract; <u>provided</u>, <u>further,</u> that Buyer shall not be obligated to assume, discharge or perform any Liability under any Assumed Contract until a Seller shall have obtained the Required Consent related to such Assumed Contract, if any (without limiting Buyer's obligations under <u>Section 1.2</u> where Buyer is provided the benefits arising under such Assumed Contract in accordance with such <u>Section 1.2</u>); and <u>provided further</u> that in no event shall the Buyer assume or be deemed to assume any Liability under this <u>Section 1.1(c)(i)</u> arising from or relating to the obligations or performance under any Assumed Contract which accrued or arose prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Gift Card Obligations and Subscription Obligations; 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;(iii) Buyer's share of the Transfer Taxes under <u>Section 7.6</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;(d) <u>Excluded Liabilities</u>. Notwithstanding any other provision of this Agreement, Buyer shall not assume or be bound by or be obligated or responsible for any duties, responsibilities, commitments, expenses, obligations or other Liabilities of the Sellers or relating to the Business or the Transferred Assets (or which may be asserted against or imposed upon Buyer as a successor or transferee of the Sellers, as an acquirer of the Transferred Assets or as a matter of Law) of any kind or nature, fixed or contingent, known or unknown, other than the Assumed Liabilities (collectively, the "<u>Excluded Liabilities</u>") and, without limiting the generality of the foregoing, the Excluded Liabilities shall include the following:

&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) all Liabilities for Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities of any Seller under any Contract or otherwise to the extent arising, accruing or relating to periods prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities of any Seller relating to and arising from the Sellers' operation of the Business or the Transferred Assets prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities of any Seller arising out of or resulting from its compliance or noncompliance with any Law or breach or default under any Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities of any Seller arising out of or related to any Legal Proceeding against it and that was asserted on or prior to, or that relates to any time prior to, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all Liabilities and obligations relating to any Environmental Laws and all other Liabilities relating to any Laws in connection with any environmental, health or safety matters based on facts arising or existing during the Sellers' operation of the Business prior to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all Liabilities with respect to any costs and expenses (including all legal, accounting, financial advisory, valuation, investment banking and other third party advisory or consulting fees and expenses) incurred by or on behalf of any Seller or its Affiliates in connection with the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities relating to any Claims for infringement, dilution, misappropriation or any other violation of any third Person's Intellectual Property Rights arising from the Sellers' operation of the Business prior to the Closing Date, or ownership or use of the Transferred Assets or Excluded Assets, prior to the Closing Date, including all such actions or Claims in respect of any violation of any Intellectual Property Rights prior to the Closing Date, whether arising under a 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all Liabilities with respect to the employment of any of the Sellers' employees, including the Transferred Employees, arising on or prior to the Closing or that relate to any period prior to Closing, including, but not limited to, (A) all Pre-Closing Compensation and Benefits Liabilities (as defined below), and all Liabilities with respect to other employees of the Sellers that would qualify as Pre-Closing Compensation and Benefits Liabilities if such employees were Transferred Employees, (B) all other salary, commissions, paid time off, sick leave, and incentive compensation incurred at any time on or prior to the Closing, (C) all change of control payments, retention payments, and advance notice of termination, garden leave, termination or severance payments to the Transferred Employees or other employees incurred at any time on or prior to the Closing, and (D) all Liabilities arising under any Employee Plans incurred at any time on or prior to the Closing, along with, in each such case, all Taxes related thereto (the "<u>Transferred Employee Excluded Liabilities</u>") (other than, for the avoidance of doubt, the Transferred Employee Assumed Liabilities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Liabilities of any Seller for Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all escheatment Liabilities of any Seller arising on or after the BR Purchase and that by Law should have been satisfied or paid prior to Closing, including those related to any Gift Cards or Subscriptions Obligations of any Seller under any federal or state Law 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any Liability to the extent relating to any Excluded Asset or that is not an 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any Liability to, under or with respect to the BR Purchase or the Bankruptcy Cases, including any obligation to give notice to or obtain any consent or approval from, at any time, and for any reason, the Bankruptcy Court (or any other Person in respect of the Bankruptcy Cases); 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;(xiv) any Liability not expressly assumed by Buyer 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;(e) <u>Tax Withholding</u>. Buyer and its Affiliates and agents shall be entitled to deduct and withhold from the Purchase Price all Taxes that Buyer is required to deduct and withhold under any provision of Law and shall be provided any necessary Tax forms requested by Buyer or its Affiliates, including IRS Form W-9 or applicable IRS Form W-8 and any similar Tax information. All such withheld amounts shall be remitted to the appropriate Governmental Entity and shall be treated as delivered to the Sellers hereunder; provided, however, that Buyer shall use commercially reasonable efforts to notify the Sellers at least two Business Days prior to Closing of any intent to withhold any such Taxes on Purchase Price payable to the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Non-Assignment</u>. To the extent any Assumed Contract is not assumable and assignable by the Sellers to Buyer without the consent of the applicable counterparty thereto, this Agreement shall not constitute an agreement to assign any Assumed Contract and the Sellers shall use their commercially reasonable efforts prior to Closing to obtain all such required consents of third parties under such Assumed Contracts (the "<u>Required Consents</u>"). All such Required Consents shall be in writing, in form and substance reasonably acceptable to Buyer, and executed counterparts thereof shall be delivered to Buyer on or prior to the Closing Date. If a Required Consent is not obtained prior to Closing, or if an attempted assignment thereof would be ineffective or would affect the rights thereunder so that Buyer would not receive all such rights, the Sellers shall continue to use their commercially reasonable efforts to obtain such Required Consents promptly, but in no event later than ninety days following the Closing and, until obtained, (i) Sellers shall use their commercially reasonable efforts after Closing to, including in accordance with the Transition Services Agreement, as applicable, provide to Buyer the claims, rights and benefits under any such Assumed Contract, and (ii) Buyer shall promptly pay, perform or discharge when due any and all such Liabilities under the Transition Services Agreement with respect to any Seller providing the benefits of such Assumed Contract; provided, however, that if any Required Consent with respect to an Assumed Contract is not received within ninety days after Closing, such Assumed Contract shall be deemed to be an Excluded Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Agreements Relating to Transfer of Transferred Assets</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) The Sellers and the Buyer agree that any software and software documentation included in the Transferred Assets and any other Transferred Assets that can be transmitted to the Buyer by electronic transmission (collectively, the "<u>Remotely Transferable Assets</u>") shall be delivered to the Buyer by electronic transmission as of or promptly following the Closing to hardware specified by the Buyer. The Sellers shall electronically deliver, or cause to be electronically delivered, Remotely Transferable Assets by the means designated by Buyer, which may include ftp transfer, other means of remote telecommunications, or by direct installation on the Buyer's hardware (i.e., "<u>load and leave</u>"). Unless agreed in writing by the Buyer, the Sellers shall not deliver, and neither the Buyer nor any Affiliate of the Buyer will be required to accept the delivery of, any Remotely Transferable Assets on any tangible medium. In the event any tangible Transferred Asset is inadvertently transferred to the Buyer (without its prior written consent) together with any Remotely Transferable Asset, (i) such tangible asset shall be returned to the Sellers, (ii) the Remotely Transferable Assets thereon shall be removed by the Sellers, and (iii) the Sellers shall transfer such tangible Transferred Asset back to the Buyer without such Remotely Transferable Assets. The Sellers and the Buyer shall, and shall cause their Affiliates to, cooperate fully with each other and take all commercially reasonable steps to document the electronic delivery or installation of such Remotely Transferable 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;(b) The Sellers shall reasonably cooperate with Buyer (as reasonably requested by Buyer) after the Closing to, at Buyer's sole cost and expense, promptly cause all Transferred Assets other than the Inventory to be located at such locations as are determined by Buyer. Upon the conclusion of the transition period for shipping of the Inventory as provided in the Transition Services Agreement, the Sellers shall reasonably cooperate with Buyer to, at Buyer's sole cost and expense, promptly cause the remaining Inventory to be located at such locations as are determined by Buyer. Without limiting the generality of the foregoing, the Sellers shall maintain, or cause to be maintained (and not reject), any and all Leases for Leased Real Properties on which Transferred Assets are located until such time as the applicable Transferred Assets located thereon have been transferred to such locations as are determined by Buyer, and provide, or cause to be provided, Buyer, its Affiliates and their respective Representatives with access to all Transferred Assets, including Tangible Personal Property, located thereon to permit Buyer, its Affiliates and their respective Representatives to relocate such Transferred Assets in its discretion and at Buyer's sole cost and expense. For the avoidance of doubt, unless expressly agreed otherwise in the Transition Services Agreement, the retaining and maintaining of the Leases for the Leased Real Properties shall be at Sellers' sole cost and expense.

**ARTICLE II**

**CONSIDERATION; ALLOCATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Consideration</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) Subject to the terms and conditions of this Agreement, in exchange for the sale, assignment, transfer, conveyance and delivery by the Sellers of the Transferred Assets, Buyer (and, with respect to the Closing Stock Consideration, Holdco) shall provide to Sellers the consideration (the "<u>Consideration</u>") consisting of the following: (i) delivery at the Closing of cash in the amount of $250,000 <u>minus</u> the $100,000 cash deposit already paid by Buyer to Sellers (such net amount, the "<u>Closing Cash</u>"), (ii) delivery at the Closing of a promissory note in the form of **<u>Exhibit A</u>** (the "<u>Senior Note</u>"), (iii) delivery at the Closing of a promissory note in the form of **<u>Exhibit B</u>** (the "<u>Sub Note</u>"), (iv) issuance and delivery at the Closing to Parent of 39,500 Units of Holdco (the "<u>Closing Stock Consideration</u>"), and (v) delivery at the Closing of a warrant in the form of **<u>Exhibit C</u>** ("the <u>Warrant</u>"). The Closing Cash shall be payable at Closing by wire transfer of immediately available funds to an account designated by the Sellers. The Parties hereby agree that the aggregate combined value of the Consideration (including the prior cash deposit and any future issuance under <u>Section 2.1(b)</u> below) is a total of $11,000,000 (such amount, the "<u>Purchase Price</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;(b) <u>Closing Stock Consideration Adjustment</u>. Notwithstanding anything to the contrary in <u>Section 2.1(a)</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) In the event that, after the Closing Date but prior to December 31, 2023 (the "<u>Adjustment Date</u>"), neither Holdco nor Buyer (nor any of their Affiliates) has consummated either (A) a Financing, or (B) a Qualifying Acquisition, then Holdco shall, on the Adjustment Date, issue and deliver to Parent 47,780 additional Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the event that, after the Closing Date but prior to the Adjustment Date, Holdco or Buyer has consummated a Non-Qualifying Financing, then Holdco shall, within five Business Days after the Post-Money Valuation for such Non-Qualifying Financing has been finally determined in accordance with the provisions of this Agreement, issue and deliver to Parent 47,780 additional Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the event that, after the Closing Date but prior to the Adjustment Date, Holdco or Buyer has consummated a Down Round Financing, then Holdco shall, within five Business Days after the Post-Money Valuation for such Down Round Financing has been finally determined in accordance with the provisions of this Agreement, issue and deliver to Parent the number of additional Units (the "<u>Down Round Units</u>") such that the following formula is correct:

D= <u>(A+B)</u>

C

Where:

A = the number of Down Round Units to be issued;

B = the 39,500 Units originally issued as the Closing Stock Consideration;

C = the sum of 1,000,000 <u>plus</u> the number of Down Round Units to be issued; and

D = the percentage determined by <u>dividing</u> $1,500,000 by the Post-Money Valuation for such

Down Round Financing;

provided, that in no event shall more than 47,780 Down Round Units be issued pursuant to this <u>Section 2.1(b)(iii)</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;(iv) In the event that, prior to the Adjustment Date, Holdco, Buyer or any of their Affiliates has consummated either (A) a Qualifying Financing or (B) a Qualifying Acquisition, no additional Units of Holdco shall be issuable to Parent under this <u>Section 2.1(b)</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;(v) For the avoidance of doubt, and notwithstanding anything to the contrary in this Agreement, in no event shall: (A) more than one of <u>Sections 2.1(b)(i), 2.1(b)(ii), 2.1(b)(iii)</u> or <u>2.1(b)(iv)</u> apply (it being agreed that only the first such Section to apply shall be given effect); (B) more than one issuance of additional Units pursuant to this <u>Section 2.1(b)</u> ever occur; and (C) more than an aggregate of 47,780 additional Units be issued pursuant to this <u>Section 2.1(b)</u>. Further, the Parties agree that any issuance pursuant to this <u>Section 2.1(b)</u> shall be treated by the Parties as an adjustment to the Closing Stock Consideration, such that the combined value of the Closing Stock Consideration and any Units issued under this <u>Section 2.1(b)</u> shall thereafter be deemed by the Parties to equal a total of $1,500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For purposes of this Agreement, the following terms shall have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "<u>Down Round Financing</u>" means the first Financing, at a Post-Money Valuation equal to or more than $18,000,000, but less than $38,000,000, to occur on or after the Closing Date but prior to the Adjustment 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "<u>Financing</u>" means the initial closing of any bona fide debt or equity financing of Holdco, Buyer or any of their Subsidiaries after the Closing Date after which such entity has received gross proceeds (for all closings thereof combined) of at least $5,000,000 in a transaction or series of transactions with the principal purpose of raising capital. For the avoidance of doubt, any loan that is secured primarily by the inventory of the Business shall not be (or count towards) a Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "<u>Non-Qualifying Financing</u>" means the first Financing, at a Post-Money Valuation of less than $18,000,000, to occur on or after the Closing Date but prior to the Adjustment 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "<u>Post-Money Valuation</u>" means the valuation ascribed to Holdco and its Subsidiaries (including Buyer) in the definitive transaction documents for the applicable Financing, inclusive of the proceeds from such Financing; provided that if no such valuation is available, the Post-Money Valuation shall be mutually agreed in good faith by Parent and Buyer within 30 days after the consummation of the applicable Financing or such longer period as Parent and Buyer may mutually agree; provided further that if Parent and Buyer do not agree on the Post-Money Valuation within such period, Parent and Buyer shall submit the dispute to the Accounting Firm and the dispute resolution provisions of <u>Section 2.1(c)(iv)</u> shall apply, *mutatis mutandis.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "<u>Qualifying Acquisition</u>" means any transaction or series of related transactions (other than the transactions contemplated by this Agreement) involving: (i) any acquisition or purchase by Buyer, Holdco and/or any of their respective Affiliates of more than 50% in interest of the total outstanding voting securities of any Qualifying Target, or any tender offer or exchange offer that if consummated would result in Buyer, Holdco and their respective Affiliates collectively beneficially owning more than 50% in interest of the total outstanding voting securities of any Qualifying Target, or any merger, consolidation, business combination or similar transaction involving Buyer, Holdco or any of their respective Affiliates pursuant to which Buyer, Holdco and their respective Affiliates immediately following such transaction collectively hold more than 50% of the equity interests in any Qualifying Target; or (ii) any purchase or acquisition (other than in the ordinary course of business) by Buyer, Holdco and/or any of their respective Affiliates from a third party Person of assets generating trailing twelve-month revenue equaling or exceeding $20,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) "<u>Qualifying Financing</u>" means the first Financing, at a Post-Money Valuation equal to or more than $38,000,000, to occur on or after the Closing Date but prior to the Adjustment 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) "<u>Qualifying Target</u>" means any third party Person whose trailing twelve-month revenue equals or exceeds $20,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Purchase Price Adjustment</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) Notwithstanding anything to the contrary in <u>Section 2.1(a),</u> the Consideration (and thus also the amount of the Purchase Price) shall be reduced on a dollar-for- dollar basis by: (A) the estimated Pre-Closing Earnings Amount; and (B) the amount of any estimated Inventory Shortfall, and (C) the amount of any estimated Gift Card Excess, and (D) the amount of any estimated Subscription Excess. Prior to Closing, the Sellers shall give Buyer a reasonable and good faith estimate of such amounts as of Closing (the "<u>Estimated Amounts</u>"), and an adjustment to the Consideration delivered at Closing shall be made based on such estimated amounts. The adjustment made at the time of Closing (based on such estimates), shall be deducted from and reduce: (1) first, the Closing Cash payable (until it is reduced to zero, as applicable), then (2) second, if amounts of such reduction remain, from the amount of the Senior Note (which shall reduce or eliminate, as applicable, the various payments thereunder in the order in which such payments become due, such that the earliest payment is reduced first, then the second-earliest payment, and so on until the reduction is fully-applied or the amount of the Senior Note is reduced to zero, as applicable), then (3) third, if amounts of such reduction remain, from the amount of the Sub Note (which shall reduce or eliminate, as applicable, the various payments thereunder in the order in which such payments become due, such that the earliest payment is reduced first, then the second-earliest payment, and so on until the reduction is fully-applied or the amount of the Sub Note is reduced to zero, as applicable). If the amount of the Senior Note or Sub Note is so reduced, the Parties agree to evidence such reduction in such instrument(s) in a manner reasonably agreed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 within 120 days after the Closing Date, Buyer determines that the actual amount of any Pre-Closing Earnings Amount, Inventory Shortfall, Gift Card Excess and/or Subscription Excess was larger than the estimate thereof used to adjust the Consideration delivered at Closing (such difference, the "<u>Post-Closing Adjustment Amount</u>"), Buyer may prepare and deliver a statement to Parent setting forth in reasonable detail Buyer's calculations of such Post-Closing Adjustment Amount (such statement, the "<u>Post-Closing Statement</u>"). The Post-Closing Statement shall include reasonable support for the calculations set forth in the Post-Closing Statement. If Buyer prepares and delivers a Post-Closing Statement, Buyer shall prepare such Post-Closing Statement in accordance with the terms of this Agreement (including its defined terms) and, to the extent not inconsistent therewith, in accordance with GAAP. If Buyer does not prepare a Post-Closing Statement within 120 days after the Closing Date, the Estimated Amounts delivered by Sellers pursuant to <u>Section 2.1(c)(i)</u> shall be deemed to be final. In order to allow Buyer to determine any Post-Closing Adjustment Amount, from and after Closing, the Sellers shall make their relevant financial records and management personnel available to Buyer and its accountants and other Representatives at reasonable times for purposes of the review by Buyer of the amounts of the Pre-Closing Earnings Amount, Inventory Shortfall, Gift Card Excess and Subscription Excess, and shall reasonably cooperate with Buyer's efforts related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Parent shall have 30 days following its receipt of any Post-Closing Statement (the "<u>Review Period</u>") to review the Post-Closing Statement. During the Review Period, the Resolution Period and any additional period until all items in the Dispute Statement are finally resolved as provided herein, in order to allow the parties to review such statements, Buyer and Parent shall each make its relevant financial records and management personnel available to the other Party and its accountants and other Representatives at reasonable times, and shall reasonably cooperate with the other Party's efforts related thereto. On or before the expiration of the Review Period, Parent shall deliver to Buyer a written statement accepting or disputing each item set forth on the Post-Closing Statement. In the event that Parent disputes an item on the Post-Closing Statement, Parent shall deliver to Buyer a statement (a "<u>Dispute Statement</u>") that includes (i) a reasonably detailed itemization of the Parent's objections and the reasons therefore, together with supporting documentation, information and calculations and (ii) Parent's alternative calculation of each disputed item. Any component of the Post-Closing Statement that is not disputed in a Dispute Statement during the Review Period shall be final and binding on the parties hereto and not subject to appeal. If Parent does not deliver a Dispute Statement to Buyer within the Review Period or delivers a statement accepting all items detailed on the Post-Closing Statement, such Post-Closing Statement shall be final and binding on the parties hereto and not subject to appeal. The Dispute Statement shall not allege, and the Parent shall not at any time in any resulting dispute take the position that, any of the Pre-Closing Earnings Amount, Inventory Shortfall, Gift Card Excess and/or Subscription Excess was less than the estimate thereof used to adjust the Consideration delivered at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If Parent delivers a Dispute Statement during the Review Period, Parent and Buyer shall promptly attempt in good faith to resolve their differences with respect to the disputed items set forth in the Dispute Statement during the 30 calendar day period immediately following Buyer's receipt of the Dispute Statement, or such longer period as Buyer and Parent may mutually agree (such period, the "<u>Resolution Period</u>"). Any such disputed items that are resolved by Buyer and Parent during the Resolution Period shall be final and binding on the Parties hereto and not subject to appeal. If Buyer and Parent do not resolve all such disputed items by the end of the Resolution Period, Buyer and Parent shall submit all items remaining in dispute with respect to the Dispute Statement to Grant Thornton (the "<u>Accounting Firm</u>") for review and resolution. The Accounting Firm shall act as an expert and not an arbitrator. The Accounting Firm shall make all calculations in accordance with the terms of this Agreement (including its defined terms) and, to the extent not inconsistent therewith, in accordance with GAAP and shall determine only those items remaining in dispute between Parent and Buyer, and shall not be permitted or authorized to assign a dollar amount to any item in dispute greater than the greatest value for such item claimed by either Party or less than the smallest value for such item claimed by either Party. Each of Parent and Buyer shall (A) enter into a customary engagement letter with the Accounting Firm at the time such dispute is submitted to the Accounting Firm and otherwise reasonably cooperate with the Accounting Firm, and (B) have the opportunity to submit a written statement in support of their respective positions with respect to such disputed items, to provide supporting material to the Accounting Firm in defense of their respective positions with respect to such disputed items and to submit a written statement responding to the other party's position with respect to such disputed items. The Accounting Firm shall be instructed to deliver to Parent and Buyer a written determination (such determination to include a worksheet setting forth all material calculations used in arriving at such determination and to be based solely on information provided to the Accounting Firm by Parent and Buyer) of the disputed items within 30 calendar days of receipt of the disputed items, which determination shall be final and binding on the Parties hereto and not subject to appeal, absent manifest error or fraud. The fees and expenses of the Accounting Firm shall be borne by Parent, on the one hand, and Buyer, on the other hand, based on a percentage equal to (x) the portion of the total amounts disputed not awarded to each such Party *divided by* (y) the total amounts disputed. For example, if Parent challenges the calculation of the Pre-Closing Earnings Amount by an amount of $100,000, but the Accounting Firm determines that Parent has a valid claim for only $60,000, Parent will bear 40% of the fees and expenses of the Accounting Firm and Buyer will bear the other 60% of such fees and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any Post-Closing Adjustment Amount, as finally determined in accordance with this Agreement, shall be deducted from and reduce first the Senior Note and then, as applicable, the Sub Note, in each case in the same manner and priorities as are provided in <u>Section 2.1(c)(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Allocation</u>. Buyer and the Sellers agree that the Purchase Price, applicable Assumed Liabilities and other relevant items treated as purchase price for U.S. federal income Tax purposes shall be allocated in accordance with an allocation schedule prepared in accordance with Section 1060 of the Code, the initial draft of which shall be delivered by Buyer to the Sellers within ninety (90) days following the Closing Date. Sellers thereafter shall have thirty (30) days to review and comment on the initial Allocation Statement, and Buyer shall incorporate any reasonable comments received from Sellers with respect thereto. Buyer and the Sellers shall (and shall cause their respective Affiliates to) file all Tax Returns (including IRS Form 8954 (as and to the extent applicable)) and other Tax-related information reports in a manner consistent with the allocation schedule that reflects the comments of the Sellers that were incorporated, if any (the "<u>Allocation Statement</u>") and not take any position inconsistent with such Allocation Statement in any Tax-Related audit, examination or other proceeding (whether administrative or judicial) unless required by applicable Law; provided, however, that if the Sellers and Buyer do not agree to an Allocation Statement, neither Party shall be bound by such Allocation Statement. If any Party receives any notice from a Governmental Entity in respect of an audit, examination or other proceeding (whether administrative or judicial) regarding any allocation of the Purchase Price or otherwise proposing an allocation different from the Allocation Statement, such Party shall notify the other Parties of such notice and provide such other Parties with a copy of such notice, and the Parties shall cooperate with each other in good faith regarding the resolution of any such matter.

**ARTICLE III**

**INSTRUMENTS OF TRANSFER AND ASSUMPTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Transfer Documents</u>. At the Closing or such later time as is agreed in writing by the Parties hereto, the Sellers will deliver to Buyer (a) a bill of sale, in a form reasonably satisfactory to Buyer (a "<u>Bill of Sale</u>"), (b) a trademark assignment agreement, for the Transferred Trademarks in a form reasonably satisfactory to Buyer (a "<u>Trademark Assignment Agreement</u>"), and (c) an assignment and assumption agreement, in a form reasonably satisfactory to Buyer (an "<u>Assignment and Assumption Agreement</u>").

**ARTICLE IV**

**CLOSING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Closing Date</u>. Subject to the terms and conditions hereof, the closing of the transactions contemplated by this Agreement (the "<u>Closing</u>") shall take place virtually (by delivery of executed documents via pdf, DocuSign or other electronic means), no later than the second Business Day following the date on which all conditions to Closing set forth in <u>Article IX</u> and <u>Article X</u> have been satisfied or waived (the date on which the Closing is actually held, the "<u>Closing Date</u>"). If it occurs, the Closing shall be effective as of 11:59 p.m. Central time on the Closing Date.

**ARTICLE V**

**REPRESENTATIONS AND WARRANTIES OF BUYER**

Buyer represents and warrants to the Sellers as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Organization, Qualification and Authority</u>. Buyer and Holdco is each an entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization. Buyer and Holdco each has all necessary corporate power and authority to (a) own and operate its properties, (b) carry on its business as it is now being conducted, and (c) in the case of Buyer, perform its obligations under this Agreement and the other Transaction Documents, and to undertake and carry out the transactions contemplated hereby and thereby. Buyer is a wholly-owned Subsidiary of Holdco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Authorization, Execution and Delivery of Agreement and Transaction Documents</u>. All necessary consents and approvals have been obtained by Buyer for the execution and delivery of this Agreement and the Transaction Documents. This Agreement has been and each of the Transaction Documents to which Buyer is a party will have been when executed, duly authorized, validly executed and delivered by Buyer to the Sellers and, assuming the due authorization, execution and delivery by the Sellers and any other Party thereto, constitute or will constitute when executed legal, valid and binding obligations of Buyer, enforceable in accordance with their respective terms, subject to Laws of general application relating to the rights of creditors generally and the availability of equitable remedies. Buyer has full corporate power, right and authority to acquire the Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Brokers</u>. Buyer has not engaged any agent, broker or other Person acting pursuant to the express or implied authority of Buyer that is or may be entitled to a commission or broker or finder's fee in connection with the transactions contemplated by this Agreement or otherwise with respect to the sale of the Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>No Violation of Laws or Agreements</u>. The performance by Buyer of its obligations contemplated hereunder and the consummation by Buyer of the transactions contemplated herein will not violate (a) any Laws or any order, writ, injunction, decree, judgment, award, consent, settlement, stipulation, regulation or rule of any court or Governmental Entity to which Buyer is subject; or (b) contravene, conflict with or result in a violation of any provision of any organizational documents of Buyer; except that would not, individually or in the aggregate, materially adversely affect Buyer's ability to consummate the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Capitalization</u>. As of immediately after the Closing, the only outstanding equity interests in Holdco will be (a) the 39,500 Units issued as the Closing Stock Consideration, and (b) the 960,500 Units owned in the aggregate by Louis A. Amoroso II and Tina Amoroso (collectively, the "<u>Initial Units</u>"). As used herein, the "<u>Disclosed Rights</u>" means the Initial Units, the Senior Note, the Sub Note and the Warrant, together with any rights of Sellers to receive additional Units pursuant to any of the foregoing or pursuant to this Agreement. As of immediately after the Closing, other than the Disclosed Rights there are no equity securities of Holdco issued and outstanding and there are no other warrants, options, conversion privileges or other similar rights to acquire equity securities of Holdco (including any simple agreements for future equity, employee stock option plans, convertible notes, options or other equity equivalents), or other agreements of any kind or character for the issuance of any equity interests of Holdco, or any security convertible into, or exercisable or exchangeable for equity interests of Holdco, or for other acquisition of any equity interests of Holdco. Except as set forth in the Disclosed Rights and the LLC Agreement, there are no outstanding preemptive rights, subscriptions, options, warrants, puts, calls, phantom securities, profit participation, stock appreciation rights, redemption rights, repurchase rights, convertible, exercisable, or exchangeable securities or other agreements, arrangements or commitments of any character relating to the future issuance of any equity interests of Holdco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Licensing</u>. Buyer (or an Affiliate of Buyer) has all Permits, licenses, grants, authorizations, consents, rights, certificates, registrations, variances, exemptions, and approvals of all Governmental Entities required by Law for the consummation of the purchase and sale of the Transferred Assets contemplated by this Agreement, except where the failure to have such license would not be reasonably likely to have a Material Adverse Effect ("<u>Buyer Permits</u>"). There is no pending Legal Proceeding by a Governmental Entity involving Buyer or its Affiliates that would reasonably be likely to have a material adverse effect on any such Buyer Permit or result in the termination thereof. None of Buyer's (or the applicable licensed Affiliate of Buyer's) officers, directors, management members, or other employees with responsibility for Buyer Permits or beverage alcohol compliance is currently accused or been convicted of any criminal act, act of moral turpitude, or similar act of misfeasance or malfeasance which would materially impair the ability to obtain or retain any such Buyer Permit prior to Closing. No Buyer Permit will require the authorization, consent or approval of its issuing Governmental Entity for the Parties to enter into this Agreement and to consummate the Transaction contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Holdco Tax Status</u>. Prior to the Closing, each of Holdco and Buyer were validly classified as either a partnership or a disregarded entity. From and immediately after Closing, Holdco is validly classified as a partnership for U.S. federal and applicable state and local income Tax purposes and Buyer is a disregarded entity of Holdco for U.S. federal and applicable state and local income Tax purposes. Since their respective formations and until the Closing occurs, neither Holdco nor the Buyer has ever owned or held any material assets other than the cash contributed by their equityholders. There is not currently any binding obligation for any existing equityholder of Holdco or Buyer to contribute any material assets (other than the Transferred Assets and cash to fund the Consideration, and to comply with their obligations under this Agreement and the Transaction Documents) to Holdco or Buyer, respectively, in connection with or after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>No Other Representations</u>. Buyer acknowledges that none of the Sellers has made any representations or warranties regarding the subject matter of this Agreement and the Transaction, express or implied, except as contained in <u>Article VI</u>. Buyer acknowledges and agrees that in entering into this Agreement it has not relied and is not relying on any other representations, warranties or other statements of the Sellers, whether written or oral, other than those contained in <u>Article VI</u>.

**ARTICLE VI**

**REPRESENTATIONS AND WARRANTIES OF SELLERS**

Except as set forth in the disclosure schedule delivered by the Sellers to Buyer (the "<u>Disclosure Schedule</u>") (provided, however, disclosure of any item in any section or subsection of the Disclosure Schedule shall only be deemed disclosure with respect to such section indicated therein and any other section or subsection of this Agreement to which the relevance of such item is reasonably apparent on the face of such disclosure), each Seller hereby represents and warrants to Buyer as of the date of this Agreement and, except to the extent any such representation or warranty in <u>Article VI</u> is expressly made as of a specified date or time, as of the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Organization, Qualification and Authority</u>. Each Seller is each an entity duly organized or incorporated, validly existing and in good standing under the Laws of its jurisdiction of incorporation or organization, as applicable, and under the Laws of each jurisdiction where qualification as a foreign entity is required, except where the lack of such qualification would not reasonably be expected to have a Material Adverse Effect. The Sellers have all necessary power and authority to own and operate their properties and to carry on the Business as it is now being conducted. The Sellers have the power and authority to execute and deliver and perform their obligations under this Agreement and the other Transaction Documents, and to undertake the transactions contemplated hereby and thereby. As of the Closing, Sellers will have no assets or Liabilities other than the Excluded Assets and the Excluded Liabilities, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Authorization, Execution and Delivery of Agreement and Transaction Documents</u>. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Sellers and the transfer or assignment of the Transferred Assets to Buyer have been duly and validly authorized and approved by all necessary corporate or other entity action. This Agreement has been and each of the Transaction Documents to which such Seller is a party will have been when executed, duly authorized, validly executed and delivered by such Seller to Buyer and, assuming the due authorization, execution and delivery by Buyer, constitute or will constitute when executed legal, valid and binding obligations of such Seller, enforceable in accordance with their respective terms, subject to Laws of general application relating to the rights of creditors generally and the availability of equitable remedies. Each Seller has, and at Closing will have, full power, right and authority to sell and convey to Buyer the Transferred Assets owned by such Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Title to and Condition of Assets</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) Each of the Sellers has good and marketable title to, or a valid leasehold interest in, all of the properties and assets of such Seller included in the Transferred Assets (other than the Third- Party Technology). The Sellers have the power and right to use, transfer, sell, convey, assign and deliver, and shall at Closing transfer, sell convey, assign and deliver to Buyer, all of the Sellers' rights, title and interest of every kind and nature in, to and under each of the Transferred Assets, free and clear of all Liens other than Permitted Liens. The delivery to Buyer at the Closing (or such later time as is agreed in writing by the Parties hereto) of the Transaction Documents will vest in Buyer good and marketable title to the Transferred Assets, free and clear of all Liens other than Permitted Liens, or in the case of Transferred Assets that are not owned by the Sellers, a valid, binding and enforceable leasehold interest in, or other valid, binding and enforceable right to possess and use, the Transferred Assets, in accordance with the Contracts applicable to such Transferred Assets, true, complete and correct copies of which Contracts have been provided to Buyer.

&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) Except as set forth in <u>Section 6.3(b)</u> of the Disclosure Schedule, no Subsidiary or Affiliate of a Seller owns any assets used in or held for use in connection with the Business, and all Tangible Personal Property and other tangible assets used in or held for use in connection with the Business are, and at Closing will be, located at the Leased Real Properties. Subject to <u>Section 1.2</u> and except (i) as set forth on <u>Section 6.3(b)</u> of the Disclosure Schedule, (ii) goods and services provided pursuant to the Transition Services Agreement and (iii) goods and services provided pursuant to the License Agreement, upon the Closing, (A) the rights, title and interest in the Transferred Assets that will be transferred to Buyer under this Agreement constitute all of the assets used in or held for use by the Business, and (B) such rights, title and interest in the Transferred Assets that will be transferred to Buyer under this Agreement constitute all of the assets and rights necessary and sufficient to conduct the Business as conducted by, and to operate the Transferred Platform as operated by, Sellers as of the date hereof and as of 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;(c) The Transferred Assets are in good and working order and repair, subject to ordinary wear and tear. No Tangible Personal Property is leased by the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Legal Proceedings</u>. Except as set forth on <u>Section 6.4</u> of the Disclosure Schedule, there is no Legal Proceeding pending or, to the Knowledge of such Seller, threatened in writing against or affecting the Sellers or the Transferred Assets (or to the Knowledge of such Seller, pending or threatened, against any of the officers, directors or employees of the Sellers with respect to their business activities related to or affecting the Transferred Assets), in each case that (a) challenges or that is reasonably expected to have the effect of preventing, making illegal, delaying or otherwise interfering with any of the transactions contemplated by this Agreement; or (b) is related to the Transferred Assets, Assumed Liabilities or the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Real Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Sellers do not own, and have never owned, any real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 6.5(b)</u> of the Disclosure Schedule sets forth a true, complete and correct list (with addresses) of each leased or subleased premises used in or necessary for the conduct of the Business, whether or not pursuant to a written or oral Lease or sublease (the "<u>Leased Real Properties</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For each of the Leased Real Properties, (i) except as set forth in <u>Section 6.5(c)</u> of the Disclosure Schedule, such applicable Seller holds a valid leasehold interest, free and clear of all Liens other than Permitted Liens, (ii) the Sellers have the right to use (and have quiet enjoyment of) such Leased Real Properties for the purposes for which it is being used, (iii) the Sellers have not received any written notice of a dispute concerning the occupancy or use thereof, (iv) each Lease or sublease therefor is legal, valid and binding, in full force and effect, and to the Knowledge of such Seller, enforceable against the other Parties thereto, in accordance with its terms, subject to Laws of general application relating to the rights of creditors generally and the availability of equitable remedies, and (v) neither the Sellers nor, to the Knowledge of such Seller, any other party to such lease or sublease is in default thereunder (with or without notice or lapse of time, or both), nor has any default been, to the Knowledge of such Seller, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>No Violation of Laws or Agreements</u>. The execution and delivery by the Sellers of this Agreement and the Transaction Documents contemplated hereby, the performance by the Sellers of their obligations hereunder and thereunder and the consummation by the Sellers of the transactions contemplated herein and therein will not (a) violate any Laws or any judgment, decree, order, regulation or rule of any court or Governmental Entity to which the Sellers are subject; (b) result in any breach of, or constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, amendment, acceleration or cancellation of, or result in the creation of any Lien on any of the Transferred Assets or any Contract, Lease, license, Permit, franchise or other instrument to which a Seller is a party and which relates to any of the Transferred Assets; and (c) contravene, conflict with or result in a violation of any provision of any organizational documents of the Sellers. Except for the notices, filings and consents set forth on <u>Section 6.6</u> of the Disclosure Schedule, the Sellers are not required to give any notice to, make any registration, declaration or filing with or obtain any consent, waiver or approval from, any Person (including any Governmental Entity) in connection with the execution and delivery of this Agreement and each of the Transaction Documents or the consummation or performance of any of the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Employee Benefits; ERISA Matters; Business Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Sellers have made available to Buyer copies of all Employee Plans covering the Business Employees (the "<u>Business Employee Plans</u>"). The Sellers have made available to Buyer true and complete summaries of all such Business Employee Plans, including summaries of written descriptions thereof which have been distributed to the Business Employees and for which the Sellers have copies, all annuity Contracts or other funding instruments relating thereto, and a summary description of all Business Employee Plans which are not in writing. The Sellers have not incurred any Liability with respect to any Business Employee Plan, which has created or resulted in, or may create or result in, any Liability to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller has made available to Buyer a true, complete and correct list, indicating for each Business Employee, their title, hire date, current base salary or hourly rate, incentive compensation eligibility, severance eligibility, and the amount of any accrued, but unpaid, amounts (including without limitation vacation or paid time off). None of the Business Employee Plans in effect immediately prior to the Closing would result separately or in the aggregate (including, without limitation, as a result of this Agreement or the Transaction) in the payment of any "<u>excess parachute payment</u>" within the meaning of Section 280G of the Code. Neither the Sellers nor any of their Subsidiaries have any obligation to gross- up, indemnify or otherwise reimburse any Business Employee for any Tax incurred by such Business Employee, including under Section 409A or 4999 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 6.8(a)</u> of the Disclosure Schedule sets forth true, correct and complete copies of the unaudited balance sheet accounts of the Business (the "<u>Interim Balance Sheet</u>") as of April 30, 2023 (the "<u>Interim Balance Sheet Date</u>") and the related unaudited statements of income for the four months ended April 30, 2023 (the foregoing unaudited financial statements, the "<u>Business Financial Statements</u>"). Each of the Business Financial Statements (including all related notes or schedules) (i) was prepared from the books and records of Sellers in accordance with United States generally accepted accounting principles ("<u>GAAP</u>"), consistently applied, (ii) is true and correct in all material respects, and (iii) fairly presents, in all material respects, the financial position of the Business as of the dates indicated therein, and the results of Sellers' operations and cash flows for the periods indicated therein. Since the BR Purchase, the financial and accounting books and records of the Business are true, correct and complete, have been maintained in accordance with sound business practices, and accurately reflect in all material respects all the transactions and actions therein described. Notwithstanding anything to the contrary in this Agreement, this <u>Section 6.8</u> is qualified by the fact that the Business has not operated as a separate "stand alone" entity within the Sellers; in certain operational areas, the Business is dependent upon centralized functional activities of the Sellers, the costs of which have not been historically allocated to the Business; and the Business Financial Statements are presented on a carve-out basis and may differ materially from financial statements presented in accordance with GAAP, in that certain costs, assets and liabilities of the Business have not been allocated to the Business Financial Statements, and the Business Financial Statements do not reflect purchase accounting for the BR Purchase and do not include all normal year-end adjustments, audit adjustments, carve-out adjustments, or footnote disclosures and other presentation items required for the presentation of financial statement in conformity with GAAP. As a result, the Business has been allocated certain internal charges and credits (including overhead expenses and cost of goods sold for the Seller Products) for purposes of the preparation of the Business Financial Statements. Such allocations of charges and credits (including overhead expenses and cost of goods sold for the Seller Products) have been made in good faith with the intent of accurately presenting to the extent practicable the financial condition and results of operations of the Business for the time periods covered by the Business Financial Statements, but may not necessarily reflect the amounts that would have resulted from arms-length transactions or the actual costs that would be incurred if the Business were operated as an independent enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Sellers maintain a system of "internal control over financial reporting" (as defined in Rules 13(a)-15(f) and 15(d)-15(f) under the Exchange Act) reasonably designed to provide reasonable assurance (i) that transactions are recorded as necessary to permit preparation of annual financial statements in conformity with GAAP consistently applied, (ii) that transactions are executed only in accordance with the authorization of management, and (iii) regarding prevention or timely detection of the unauthorized acquisition, use or disposition of the Sellers' properties or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section 6.8(c)</u> of the Disclosure Schedule lists all Indebtedness of, or guaranteed by, any Seller which is secured by the Business or the Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The accounts receivable set forth in the Interim Balance Sheet all represent obligations arising from services actually performed by the Sellers in respect of the Business or goods sold by the Sellers in respect of the Business, in each case in the Ordinary Course of Business. To the Knowledge of such Seller and except as reflected in the Sellers' reserve for uncollectable accounts, there is no account debtor of the Business who has refused or threatened to refuse to pay its obligations or who has or threatened to set-off such obligations for any reason, and there is no contest, claim, defense or right of set-off relating to the amount or validity of any accounts receivable in respect of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Sellers do not have any outstanding Liability with respect to any loss, damage, destruction, theft or similar matters with respect to any Inventory or other Transferred Assets held by the Sellers on consignment and, upon the conclusion of the transition period for shipping of the Inventory as provided in the Transition Services Agreement, all Inventory held by the Sellers on consignment will be transferred to the possession of Buyer in accordance with <u>Section 1.3(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Absence of Certain Changes</u>. Since the Interim Balance Sheet Date, the Sellers have conducted the Business in the Ordinary Course of Business, and except as disclosed on <u>Section 6.9</u> of the Disclosure Schedule (which shall be arranged in accordance with the subsections below) or as contemplated by this Agreement, the Sellers have not:

&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 Business, in a single transaction or a series of related transactions, acquired or agreed to acquire by merging or consolidating with, or by purchasing any equity interest in or substantially all the assets of, or by any other manner, any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in a single transaction or series of related transactions, sold (including saleleaseback), leased, licensed, pledged, encumbered or otherwise transferred or disposed of, or agreed to sell (or engage in a sale-leaseback), lease (whether such Lease is an operating or capital Lease), license, pledge, encumber or otherwise transferred or disposed of, the Business or any of the Transferred Assets, or any material rights thereto, other than dispositions in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) modified, amended or terminated (excluding any automatic termination upon the expiration of the term thereof) or granted a waiver of any material right under any Assumed Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) made any change in methods of accounting or procedures (including procedures with respect to revenue recognition, payments of accounts payable and collection of accounts receivable) or, other than in the Ordinary Course of Business, delayed or accelerated the collection of any accounts receivable, notes receivable, negotiable instruments, chattel paper and other receivables or other revenue, in each case relating to the Business or the Transferred Assets, or engaged in any other activity that has or would reasonably be expected to have the effect of accelerating to pre-Closing periods revenue relating to the Business or the Transferred Assets that would otherwise be expected to occur in post-Closing periods or delayed or postponed the payment of any accounts payable or commissions or any other Liability or obligation relating to the Business or the Transferred Assets or agreed or negotiated with any party to extend the payment date of any accounts payable or commissions or any other Liability or obligation relating to the Business or the Transferred Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) sold, transferred, licensed, abandoned, let lapse, encumbered or otherwise disposed of any Intellectual Property Rights that are, or in the absence of such sale, transfer or disposal, would have been Transferred IPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) incurred, created, assumed or otherwise become liable for, any Indebtedness secured by the Business or the Transferred Assets other than pursuant to intercompany borrowings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) adopted a plan or agreement of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other material reorganization or any other transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) entered into any agreement or commitment that subjected the Transferred Assets or the Business to any non-competition or other material restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) materially changed the manner in which they have served the customers of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) materially reduced their pricing structure to their customers for services relating to the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) suffered any material damage, destruction or loss to any Tangible Personal Property as a result of any casualty or similar material event (whether or not covered by insurance), or any damage, destruction or loss to any Tangible Personal Property of any other Person held by the Sellers on consignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) taken any write-down of the value of any Transferred Assets on the books or records of the Sellers, except for depreciation and amortization taken in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) changed the Sellers' sales practices, pricing policies, accounts receivable or accounts payable or any "channel stuffing" or other sale method that would, or would reasonably be expected to have, the effect of artificially or temporarily increasing the Sellers' consolidated revenues relating to the Business or Transferred Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) required or encouraged "<u>sell-in</u>" distributors for the Business to order any inventory in excess of anticipated demand or provided any special payment incentives to such distributors to encourage purchases in excess of anticipated demand inconsistent with historic inventory levels of the Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) entered into any agreement or otherwise obligated themselves to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Contracts and Other Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 6.10(a)</u> of the Disclosure Schedule sets forth a true, complete and correct list of all of the Contracts of any Seller or any of its Affiliates relating to the Business (collectively, the "<u>Company Contracts</u>"), which list identifies the parties thereto. None of the Company Contracts (i) limit the Sellers or any assignee or Affiliate thereof in any way from competing anywhere or in any business or from soliciting any Person as a customer, client, employee or other business relation, (ii) would require the use of any supplier or third party on an exclusive basis for all or substantially all requirements or needs relating to any goods or services, (iii) would require the provision to the other parties thereto of "most favored nations" pricing, or (iv) requires the marketing or co-marketing of any goods or services of a third party. Each Assumed Contract is legal, valid and binding, in full force and effect, and enforceable against the Sellers or its Affiliates, as applicable, and, to the Knowledge of such Seller, enforceable against the other parties thereto, in accordance with its terms, subject to Laws of general application relating to the rights of creditors generally and the availability of equitable remedies, and neither the Sellers nor, to the Knowledge of such Seller, any other parties thereto is in default thereunder (with or without notice or lapse of time, or both). To the Knowledge of such Seller, no event has occurred or circumstance exists that (with or without notice or lapse of time, or both) would result in a breach of, or give the Sellers or any other Person the right to declare a default or exercise any remedy under, or accelerate the maturity or performance of or payment under, or cancel, terminate or modify, any Assumed Contract. The Sellers have not, and to the Knowledge of such Seller, no other party to any Assumed Contract has, exercised any termination rights with respect thereto. The Sellers have made available to Buyer executed originals or true, complete and correct copies of all Assumed Contracts, together with all amendments or modifications thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Section 6.10(b)</u> of the Disclosure Schedules sets forth a list of all Gift Card Obligations outstanding as of April 30, 2023 (including the amount of such obligation and the date such obligation was incurred), subject to system reconciliations not exceeding an amount equal to $5,000 in the aggregate. Seller has made available to Buyer a true, complete and correct list of all of the Subscription Obligations outstanding as of April 30, 2023 (including the amount of such obligation and the date such obligation was incurred), subject to system reconciliations not exceeding an amount equal to $5,000 in the aggregate. Any Gift Card Obligations and Subscription Obligations incurred following April 30, 2023 were incurred in the Ordinary Course of Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Suppliers</u>. <u>Section 6.11</u> of the Disclosure Schedule sets forth a list of the top twenty (20) suppliers of the Business by spend and dollar amount of spend for the 4-month period ended April 30, 2023 (the "<u>Significant Suppliers</u>"). No Significant Supplier has (i) terminated, cancelled or failed to renew, or given the Sellers written or oral notice that references its intention to terminate, cancel or fail to renew, its business relationship in respect of the Business with the Sellers or any of their Subsidiaries (whether or not subject to a Contract) and (ii) since the BR Purchase, materially reduced, or given the Sellers written or oral notice that references its intention to materially reduce, its business dealings in respect of the Business with the Sellers or any of their Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Intellectual Property; Privacy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 6.12(a)</u> of the Disclosure Schedule sets forth, solely for the Transferred IPR, a complete and accurate list of all domestic and foreign federal, state or provincial: (i) registrations and applications for registration of Transferred Trademarks; and (ii) domain names (collectively, the "<u>Transferred Registered Intellectual Property</u>"), in each case listing the title and current owner, and except domain names, the jurisdiction in which each such Transferred Registered Intellectual Property has been issued or registered, the application, and the serial or registration number for each. Additionally, <u>Section 6.12(a)</u> sets forth a list of the Sellers' social media accounts that are exclusively used in connection with the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to each item of Transferred Registered Intellectual Property, (i) all necessary registration, maintenance and renewal fees currently due in connection with such Transferred Registered Intellectual Property have been made and (ii) except as set forth in <u>Section 6.12(b)</u> of the Disclosure Schedule, all documents, recordations and certificates currently required to be filed for the purposes of prosecuting, maintaining and perfecting such Transferred Registered Intellectual Property and recording the Seller's ownership interests therein have been filed, in each case of (i) or (ii), with or to the United States Patent and Trademark Office or any other applicable intellectual property registry or authority anywhere in the world. None of the Transferred Registered Intellectual Property (i) has been abandoned or withdrawn or has lapsed or expired; or (ii) is the subject of any interference, re-examination, opposition or other Legal Proceeding filed with the United States Patent and Trademark Office or any other intellectual property registry anywhere in the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Section 6.12(c)</u> of the Disclosure Schedule sets forth all IP Licenses (excluding non-exclusive off-the-shelf computer programs with annual license fees less than $20,000 and the terms of use or service for any software as a service subject to a subscription or annual fee of less than $20,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All of the Third-Party Technology that is included in the Transferred Assets is duly and validly licensed to the Seller or its Affiliates, as applicable, pursuant to a valid, legally enforceable written Contract that grants the Sellers all rights to use, license, practice, or otherwise exploit, as applicable, such Third-Party Technology in the manner in which the Sellers have used, licensed, practiced, and otherwise exploited such Third-Party Technology. The Sellers exclusively own all Transferred IPR and the Transferred Technology (other than Third-Party Technology), free and clear of any Liens (other than Permitted Liens). Except as set forth on <u>Section 6.12(d)</u> of the Disclosure Schedule, the Sellers have not granted, assigned or transferred to any Person or authorized any Person to retain any rights in any Intellectual Property Rights that are, or at the time of the transfer were, Transferred IPR, or permitted any such intellectual property to enter the public domain. The Sellers have secured from all of employees, consultants and independent contractors who independently or jointly contributed to the conception, reduction to practice, creation or development of any Transferred IPR by, for or on behalf of the Sellers ("<u>Contributors</u>") unencumbered and unrestricted exclusive ownership of all such Transferred IPR, and no such Contributor has retained any rights or licenses with respect thereto. The Sellers own and possess all source code for all software that embodies Intellectual Property Rights owned by the Sellers and that is included in the Transferred Assets (the "<u>Seller Owned Transferred Software</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Sellers have taken commercially reasonable actions to protect, preserve and maintain the Transferred IPR and to maintain the confidentiality, secrecy and value of the confidential information and trade secrets of the Sellers that is included in the Transferred Assets, and to the Knowledge of such Seller, such confidential information and trade secrets have not been used, divulged or appropriated either for the benefit of any Person (other than the Sellers) or to the detriment of the Sellers. To the Knowledge of such Seller, there has not been any breach by any third party of any confidentiality obligation to the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The conduct of the Business as currently conducted by the Sellers, including the making, selling, leasing, licensing, distributing, supporting or other exploitation of the Transferred Platform and related services, including the selling of the products through the Transferred Platform, has not and does not infringe, misappropriate, dilute, or otherwise violate any Intellectual Property Rights of any Person or constitute unfair competition or unfair trade practices. The Seller's use of any Transferred Assets in connection with the Business does not copy without permission, infringe, misappropriate, violate, impair or conflict with any common law, statutory or other right of any Person, including, without limitation, any rights relating to any Intellectual Property Rights, or defamation. Without limiting the generality of the foregoing, to the Knowledge of the Sellers, there are no Patents that impede or limit the current operation of the Business or use of the Transferred Technology (provided that Third-Party Technology is used in accordance with the terms of the associated Assumed Contract or Open Source License).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There is no Legal Proceeding, opposition, cancellation, objection or Claim pending, asserted or threatened in writing against the Sellers concerning the ownership, validity, registrability, enforceability, infringement, misappropriation, violation or use of, or licensed right to use any Transferred IPR or any other Intellectual Property Rights of any third Person. To the Knowledge of such Seller, no valid basis exists for any such Legal Proceeding, opposition, cancellation, objection or Claim. The Sellers have not received any written communication that implies that Sellers' operation of the Business could be infringing Intellectual Property Right of any third Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the Knowledge of Seller, no Person has or is copying without permission, infringing, misappropriating, violating, impairing or conflicting with any common law, statutory or other right of the Sellers or any other Person with respect to any of the Transferred IPR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Transferred Registered Intellectual Property is subsisting, and except with respect to applications which are validly applied for, valid and enforceable, and none of the Transferred IPR is subject to any outstanding order, writ, injunction, decree, judgment, award, consent, settlement, stipulation, regulation, ruling or forbearances to sue or similar obligation, or has been the subject of any litigation within the past five years, whether or not resolved in favor of the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Except as set forth on <u>Section 6.12(j)</u> of the Disclosure Schedules, the Sellers have not directly or indirectly transferred, assigned, licensed or sublicensed their rights in any Transferred IPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All IP Licenses that are Assumed Contracts are in full force and effect in accordance with their terms and no default exists under any of such IP Licenses by the Sellers or, to the Knowledge of such Seller, by any other party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) All royalties, license fees, charges and other amounts payable by, on behalf of, to, or for the account of, the Sellers or the Business in respect of any Transferred IPR or Transferred Technology are disclosed in the financial statements made available to Buyer or in <u>Section 6.12(l)</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) No Open Source Software or any modification or derivative thereof, was or is, used in, incorporated into, integrated or bundled with the Seller Owned Transferred Software, in each case in a way or manner that requires any of the Seller Owned Transferred Software to be: (i) disclosed or distributed in source code form; (ii) licensed for the purpose of making modifications or derivative works; or (iii) distributed at no charge. The Sellers are and have been in compliance with all Open Source Licenses to which they are subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) No third party possesses any copy of any source code to any Seller Owned Transferred Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) With respect to the Third-Party Technology that is licensed under the Assumed Contracts, the Sellers have complied with any and all license obligations and restrictions with respect to the number of copies of such Technology the Sellers are permitted to install or royalty obligations. Neither the Sellers nor any of their employees or agents has used, sublicensed, commercialized, placed or installed any such Technology without a valid license for such Technology. With respect to any software that is licensed to the Sellers under the Assumed Contracts, no Seller or employee, consultant or any third party has copied, over- installed or otherwise used such software in any manner that would violate the terms and provisions of the Assumed Contract through which the Sellers licensed such software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Neither this Agreement or the Transaction Documents, nor the consummation of any of the Transactions will, with or without notice or lapse of time, result in (i) any third party being granted rights or access to, or the placement in or release from escrow of, source code for any Seller Owned Transferred Software, (ii) the granting to any third party of any rights or options in or to any Transferred IPR, (iii) Buyer being obligated to pay any royalties or other amounts to any third party, with respect to Transferred IPR in excess of those payable by the Sellers prior to the Closing, or (iv) the loss or impairment of any of the Transferred IPR; or (v) require the consent of any third party in respect of any Transferred IPR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Except as set forth in <u>Section 6.12(q)</u> of the Disclosure Schedule, the software and information technology systems used or held for use in connection with the operation of the Business are in satisfactory working order, and operates in accordance with their specifications or documentation for the conduct of the Business as currently conducted by Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Sellers have maintained and currently maintain commercially reasonable written policies, procedures, plans, controls and safeguards governing the privacy of Transferred Personal Data applicable to the Business ("<u>Privacy Policies</u>"). The Sellers and the conduct of the Business are and at all times have been in material compliance with all (i) applicable Laws, consents and Contracts pertaining to the privacy, security, integrity, transmission, storage, or protection of Transferred Personal Data and (ii) Privacy Policies, (collectively, the "<u>Privacy and Security Requirements</u>"). The Sellers have not received any notice or complaint during the past six years of, or been charged with or received any claim or notice that Sellers are in material violation of any Privacy and Security Requirements, and there is no charge, Claim, assertion or Legal Proceeding against, and to the Knowledge of such Seller there are no pending investigations by any Governmental Entity relating to Seller's material violations of applicable Privacy and Security Requirements. Except as set forth in <u>Section 6.12(r)</u> of the Disclosure Schedule, to the Knowledge of the Sellers, in the last six years, the Sellers have not experienced any material security incident in which any Transferred Personal Data was stolen, compromised or subject to any unauthorized access or use that, in each case, would reasonably be expected to result in any material Liability to Buyer. The Sellers have valid and enforceable rights to use Transferred Personal Data in compliance with applicable Privacy and Security Requirements. Neither the execution, delivery nor performance of this Agreement, nor the consummation of any of the transactions contemplated by this Agreement, including any direct or indirect transfer of Transferred Personal Data resulting from such transactions, will violate any applicable Privacy and Security Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) To the Sellers Knowledge, no Business Employee is (i) bound by or otherwise subject to any Contract restricting that Business Employee from performing such Business Employee's duties for the Business, (ii) in breach of any Contract with any former employer or other Person concerning Intellectual Property Rights or confidentiality due to such Business Employee's activities as an employee of the Business or (iii) subject to any Contract with any other Person (other than Parent) that requires such Business Employee to assign any interest in Technology or Intellectual Property Rights or keep confidential any trade secrets, proprietary data, customer lists or other business or technical information used in or necessary for the conduct of the Business as currently conducted by Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Labor Matters</u>. Except as set forth on <u>Section 6.13(i)</u> of the Disclosure Schedule, there are no employment, consulting, retention, change of control, severance or indemnification Contracts between any Seller or its Affiliate, on the one hand, and any Transferred Employee, on the other hand. The Sellers (a) are not party to or bound by any collective bargaining or similar agreements with any labor organization applicable to the Business Employees; and (b) no Business Employees are represented by any labor organization. There has not been, and currently there is not, any union organizing activities among the Business Employees. No Business Employee has provided notice to the Sellers of such Business Employee's intent to terminate his or her employment, other than to accept an offer of employment with the Buyer or any Affiliate of Buyer. Except as set forth in <u>Section 6.13(ii)</u> of the Disclosure Schedule, there are no, and have never been, any allegations of sexual, racial or other discriminatory harassment, or similar misconduct by or against any Business Employee or to the Knowledge of the Sellers, are there any such threatened allegations. With respect to the Business Employees, the Sellers are in material compliance with all Laws pertaining to employment and employment practices, including, but not limited to, Laws respecting payment of wages, hours of work, fringe benefits, paid sick leave, employment or termination of employment, leave of absence rights, employment policies, immigration, terms and conditions of employment, child labor, labor or employee relations, affirmative action, government contracting obligations, classification of workers as employees or independent contractors, classification of employees as exempt or non-exempt, equal employment opportunity and fair employment practices, disability rights or benefits, workers' compensation, unemployment compensation and insurance, health insurance continuation, whistle-blowing, privacy rights, harassment, discrimination, retaliation, and working conditions or employee safety or health. The Sellers have no liability with respect to the classification of the Business Employees as exempt or non-exempt under applicable wage and hour Laws. There are no Legal Proceedings against the Sellers pending, or to the Sellers' Knowledge, threatened to be brought or filed, by or with any Governmental Entity or arbitrator in connection with the employment or engagement of any Business Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>Environmental Matters</u>. Except as set forth on <u>Section 6.14</u> of the Disclosure Schedule, to the Knowledge of such Seller, all uses by the Sellers of the Transferred Assets and Leased Real Properties have been in compliance in all material respects with all Laws and Permits related to the protection of the environment or public health and safety of Persons from exposure to Hazardous Substances (collectively, "<u>Environmental Laws</u>"). Except as set forth in <u>Section 6.14</u> of the Disclosure Schedule, the Sellers have not received any written notice of any Legal Proceedings involving any violations or alleged violations by the Sellers of any Environmental Laws in respect of the Business or the Transferred Assets. The Sellers have complied in all material respects with all Environmental Laws applicable to the Business or the Transferred Assets, including those related to the storage, handling and removal of any Hazardous Substance. During the Sellers' leasing of the Leased Real Properties, there has been no Release by the Sellers of any Hazardous Substance on such properties that would be material to the Business. To the Knowledge of such Seller, the Leased Real Properties are not subject to any Liability for the cleanup, Removal, or remediation of any Hazardous Substance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 <u>Compliance with Laws</u>. Except as set forth in <u>Section 6.15</u> of the Disclosure Schedule, the Sellers and the conduct of the Business (a) are and since the BR Purchase have been, and (b) to the Knowledge of the Sellers, at all other times have been, in compliance with all Laws applicable to the Sellers or to the conduct and operations of the Business or relating to or affecting the Transferred Assets. The Sellers have not received any written notice to the effect that, or otherwise been advised of and to the Knowledge of the Sellers there has not occurred with respect to the Transferred Assets or the Business (a) any actual, alleged, possible or potential violation of, or failure to comply with, any such Laws, or (b) any actual, alleged, possible or potential obligation on the part of the Sellers to undertake, or to bear all or any portion of the cost of, any remedial action of any nature, except for any such violations or failures to comply that would not, individually or in the aggregate, have or be reasonably expected to be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 <u>Prepaid Expenses; Deferred Revenue</u>. <u>Section 6.16</u> of the Disclosure Schedule sets forth a true, complete and correct list of all prepaid expenses and deposits of the Sellers relating to the Transferred Assets, including all security deposits for equipment and prepayments on equipment leases of the Sellers relating to the Transferred Assets, which shall be treated in accordance with the terms of this Agreement. Except as set forth on <u>Section 6.16</u> of the Disclosure Schedule, the Sellers have no Liability in respect of or in connection with any prepaid merchant fees as it relates to deferred revenue relating to the Business or the Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17 <u>Brokers</u>. Except for those set forth on <u>Section 6.17</u> of the Disclosure Schedule, for whom the Sellers shall be solely responsible for any fees, commissions or other amounts owing or that may become due and owing, the Sellers have not engaged or incurred any Liability to any agent, broker or other Person acting pursuant to the express or implied authority of the Sellers which is or may be entitled to a commission or broker or finder's fee in connection with the transactions contemplated by this Agreement or otherwise with respect to the sale of the Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.18 <u>Permits</u>. <u>Section 6.18</u> of the Disclosure Schedule sets forth all Permits applicable to the conduct and operations of the Business, or relating to or affecting the Transferred Assets. Except as set forth in <u>Section 6.18</u> of the Disclosure Schedule, the Sellers are and at all times have been in compliance in all respects with all Permits applicable to the conduct and operations of the Business, or relating to or affecting the Transferred Assets, except for such failures to comply that would not reasonably be expected, individually or in the aggregate, to be material to the Business or any Transferred Assets. The Sellers have not received any written notice from any Governmental Entity specifically alleging (a) any actual, alleged, possible or potential violation of, or failure to comply with, any such Permits or (b) any actual, alleged, possible or potential revocation, withdrawal, suspension, cancellation or termination of, or any modification to, any such Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.19 <u>Inventory; Products</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All of the Finished Goods Inventory is of a quality usable and salable in the Ordinary Course of Business, except for the normal and customary allowances for spoilage, obsolescence, damage or otherwise unsellable products ("<u>Unsellable Inventory</u>"). Except as set forth in <u>Section 6.19(a)</u> of the Disclosure Schedule, all of the Finished Goods Inventory has been packaged, produced and labeled in accordance with applicable Laws, and the Sellers have provided to Buyer substantiation for all labeling and marketing claims made on or in referenced to the Finished Goods Inventory since the BR Purchase. No Finished Goods Inventory has been labeled or marketed deceptively. All items included in the Finished Goods Inventory are the property of, or held in trust for, the Sellers and conform in all material respects to all standards applicable to such inventory or its use or sale imposed by any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There has been no product recalls or extraordinary product returns in connection with the Business and, to the Knowledge of such Seller, none are threatened or pending. All products of the Business distributed or sold by the Sellers (collectively, the "<u>Seller Products</u>") have been sold in compliance in all material respects with all applicable Laws (including Alcohol Laws). To the Knowledge of such Seller, each product of the Business complies in all material respects with all applicable product safety standards of each applicable product safety agency, commission, board or other Governmental Entity. To the Knowledge of such Seller, the Sellers do not have any material liability arising out of any injury to individuals or property as a result of the sale of any Seller Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.20 <u>Insurance</u>. <u>Section 6.20</u> of the Disclosure Schedule sets forth a true, complete and correct list of all insurance policies relating to the Business or Transferred Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.21 <u>Taxes; Tax Returns</u>. Since the date of the BR Purchase, the Sellers have timely filed with the proper Governmental Entities all income and other material Tax Returns required to be filed by the Sellers with respect to the Business or the Transferred Assets, and all such Tax Returns are complete and correct in all material respects. Since the date of the BR Purchase, the Sellers have timely paid to the proper Governmental Entities all Taxes (whether or not shown on any Tax Return) with respect to the Business or the Transferred Assets that are due and payable by the Sellers, including any Taxes the non-payment of which has resulted or could result in a Lien on any Transferred Asset that survives the Closing or could result in Buyer becoming liable or responsible therefor. Since the date of the BR Purchase, the Sellers have not received any outstanding notice in writing of audit, procedure, proceeding or contest, and, to the Knowledge of Sellers, are not undergoing any audit, procedure, proceeding or contest, of Tax Returns relating to the Business or the Transferred Assets. The Sellers have never received any written notice of deficiency or assessment from any taxing authority with respect to Liability for Taxes relating to the Business or the Transferred Assets which has not been fully paid or finally settled. The Sellers have complied in all material respects with all applicable Laws, rules and regulations relating to the payment and withholding of Taxes and has withheld all amounts required by Law to be withheld from the wages or salaries of employees and independent contractors of the Business and are not liable for any Taxes with respect to the employees and independent contractors of the Business for failure to comply with such Laws, rules and regulations, except for such Liabilities with respect to which Buyer could not be liable after the Closing. The Sellers have not waived any limitation periods or entered into any agreements providing for an extension of time for (i) the filing of any income or other material Tax Return with respect to the Transferred Assets or the Business, (ii) the assessment or collection of any Tax by any relevant Governmental Entity with respect to the Transferred Assets or the Business or (iii) the payment of any Tax by the Sellers with respect to the Transferred Assets or the Business. No closing agreement, private letter ruling, technical advice memoranda, advance pricing agreement, consent to an extension of time to make an election or consent to a change a method of accounting, has been requested from, entered into between the Sellers and any Governmental Entity or issued by any Governmental Entity to the Sellers, in each case, with respect to the Transferred Assets or the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.22 <u>No Other Representations</u>. Sellers acknowledge that Buyer has not made any representations or warranties regarding the subject matter of this Agreement and the Transaction, express or implied, except as contained in <u>Article V</u>. Sellers acknowledge and agree that in entering into this Agreement they have not relied and are not relying on any other representations, warranties or other statements of Buyer, whether written or oral, other than those contained in <u>Article V</u>.

**ARTICLE VII**

**COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Conduct of Business</u>. Until the earlier of the termination of this Agreement pursuant to <u>Article XI</u> and the Closing Date, the Sellers shall conduct the Business in the Ordinary Course of Business, preserve intact the Business and the Transferred Assets and maintain its rights, Contracts and Permits, keep available the services of employees and contractors and preserve their relationships with customers, manufacturers, landlords and others having business dealings with the Sellers, in each case solely to the extent relating to the Business or the Transferred Assets. Without limiting the generality of the foregoing, the Sellers will not, other than with Buyer's consent, as otherwise required by this Agreement, do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) other than the sale of Inventory in the Ordinary Course of Business, sell, dispose of, transfer, lease, mortgage, encumber, assign or license, any Transferred Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) transfer any tangible Transferred Asset to any other location to the extent that, at the Closing, such Transferred Asset is not at a location that is not otherwise part of the Transferred Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to the Business, other than in the Ordinary Course of Business, acquire assets (including any inventory) from any other Person (including by merger, share exchange, joint venture or other extraordinary transaction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) except as otherwise provided or required in this Agreement, reject, terminate (other than by expiration of its term without renewal), amend or modify the terms of any of the Assumed Contracts or assign any of the Assumed Contracts, or reject, terminate, enter into or amend any other material Contract with respect to the Business of the Sellers that would affect the Transferred Assets, the Assumed Liabilities or the Business Employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) with respect to the Business, acquire or agree to acquire by merging or consolidating with, or by purchasing any equity interest in or assets of, or by any other manner, in a single transaction or a series of related transactions, any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) sell, transfer, license (other than non-exclusive licenses in the Ordinary Course of Business), abandon, let lapse, encumber, fail to maintain or otherwise dispose of any Transferred IPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) amend or propose to amend or otherwise change any Seller's certificate of incorporation, bylaws, certificate of formation, operating agreement or similar governing document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) fail to maintain any books and records of the Business in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cancel, compromise, settle, release or discharge any Legal Proceeding or any other material claim of the Business or in a manner that adversely affects the Transferred Assets or Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter into any agreement or commitment that would subject the Sellers to any noncompetition, non-solicitation or any other material restrictions on the Sellers' ability to conduct its Business, or that limits or restricts the use of the Transferred IPR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) cancel or terminate (other than by expiration of its term without renewal) the insurance coverage under the Sellers' insurance policies to the extent relating to the Business or the Transferred Assets or Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) (i) make, revoke or change any Tax election or any method of Tax accounting, (ii) settle or compromise or enter into any contractual arrangement in respect of any Tax liability, (iii) file an amended Tax Return, (iv) enter into any closing agreement relating to any Tax, (v) enter into any voluntary disclosure or similar program with respect to any Tax, (vi) agree to any extension of a statute of limitations with respect to Taxes or Tax Returns, (vii) surrender any right to claim a Tax refund or (viii) take any other action that could reasonably be expected to increase Buyer's or the Business's liability for Taxes after the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) change or modify any material accounting practice, policy or procedure, except as required by GAAP or applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) make any broad-based communication to customers of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) take any action that, if taken prior to the date of this Agreement, would require disclosure pursuant to <u>Section 6.9</u> or, without limiting the generality of the foregoing, take any action in respect of the Business or the Transferred Assets or Assumed Liabilities outside of the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) incur Gift Card Obligations or Subscription Obligations, other than in the Ordinary Course of Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) authorize any of, or commit, agree in writing or otherwise, to take any of, the foregoing actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Mutual Covenants</u>. The Parties hereto mutually covenant (and subject to the other terms of this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, to use their respective commercially reasonable efforts to perform their obligations hereunder and to take, or cause to be taken, and do, or cause to be done, all things necessary, proper or advisable under applicable Law to cause the transactions contemplated herein to be effected as soon as practicable, but in any event on or prior to the Outside Date, in accordance with the terms hereof and shall cooperate in a commercially reasonable manner with each other Party hereto and their respective Representatives, successors, and permitted assigns, as applicable, in connection with any action required to be taken as a part of their obligations hereunder. From time to time after the Closing and without further consideration, each of Buyer and the Sellers, at the request of the other, will execute and deliver such other instruments of conveyance and transfer or other instruments or documents, and take or arrange for such other actions, as may reasonably be required to effect any of the transactions contemplated by this Agreement or to provide any Party hereto, their respective successors and permitted assigns, as applicable, with the benefits intended to be conferred and conveyed by this Agreement; provided that, notwithstanding anything to the contrary in this <u>Section 7.2(a)</u> or any other provision of this Agreement, neither Buyer nor the Sellers shall be required to execute any document or take any action that would (i) increase the Liability or obligation of the Party of whom such document or action is requested beyond that such Party would have pursuant to the other provisions of this Agreement, (ii) require or cause the Party of whom such action or document is requested to initiate, join in or otherwise become a party to any Legal Proceeding, or (iii) cause such Party to incur any material cost or expense that is not already imposed upon it by another provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) until the earlier of the Closing Date and the date on which this Agreement is terminated pursuant to <u>Article XI,</u> to cooperate with each other in determining whether filings are required to be made or consents (including any Required Consents) required to be obtained in any jurisdiction in connection with the consummation of the transactions contemplated by this Agreement and in making or causing to be made any such filings promptly and in seeking to obtain timely any such consents including any Required Consents (each Party hereto shall furnish to the other and to the other's counsel all such information as may be reasonably required in order to effectuate the foregoing action); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) until the earlier of the Closing Date and the date on which this Agreement is terminated pursuant to <u>Article XI,</u> to advise the other Parties promptly if such Party determines that any condition precedent to its obligations hereunder will not be satisfied in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Notification of Certain Matters</u>. Through earlier of the Closing Date and the date on which this Agreement is terminated pursuant to <u>Article XI,</u> the Sellers shall give prompt written notice to Buyer of: (a) a breach of any representation or warranty or covenant of the Sellers contained in this Agreement, (b) the occurrence, or failure to occur, of any event that would be reasonably likely to cause any representation or warranty of the Sellers contained in this Agreement to be untrue or inaccurate at any time prior to the Closing determined as if such representation or warranty were made at such time, (c) the occurrence of any event which has resulted or could reasonably be expected to result in a Material Adverse Effect, (d) any notice or other written communication from any Person alleging that the consent of such Person is or may be required in connection with the consummation of the Transactions, (e) any material written communication from any Governmental Entity in connection with or relating to the Transactions, and (f) the commencement of any actions, suits, investigations or proceedings relating to the Sellers, any Transferred Asset or the Business that, if pending on the date hereof, would have been required to have been disclosed pursuant to <u>Section 6.4</u> or would have resulted in a breach of any representation contained in <u>Section 6.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Access to Information</u>. Through the earlier of the Closing Date and the date on which this Agreement is terminated pursuant to <u>Article XI,</u> the Sellers shall fully cooperate with Buyer and shall give Buyer and its Representatives, upon reasonable notice and during normal business hours, full access to the properties, Contracts, Leases, equipment, employees, affairs, books, documents, records, data and other information of the Sellers to the extent relating to the Business, the Transferred Assets, the Assumed Liabilities and any other aspect of this Agreement and shall cause their respective Representatives to furnish to Buyer all available documents, records and other information (and copies thereof), to the extent relating to the Business, the Transferred Assets, the Assumed Liabilities, and any other aspect of this Agreement, in each case, as Buyer may reasonably request. Buyer and its Representatives are hereby expressly authorized to contact any persons having a commercial relationship with the Sellers in respect of the Business or the Transferred Assets in connection with the transactions contemplated hereby, provided that (a) notwithstanding the foregoing, without the prior written consent of Sellers, Buyer and its Representatives shall not contact any of the Sellers' customers, vendors or suppliers in connection with the transactions contemplated hereby until the Closing, and (b) Buyer must provide the Sellers with reasonable advance written notice and the opportunity to be present or participate in any communications prior to Closing with the Sellers' customers, vendors or suppliers persons having a commercial relationship with the Sellers in connection with the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Public Announcement</u>. The Parties shall mutually agree on the form of a press release or other public communication with respect to this Transaction. Other than such agreed press release or other public communication, which the Parties hereby agree Buyer may make at any time or times after Closing as it wishes, no Party nor any of their Affiliates shall make any press release, public announcement, securities filing, or public statement concerning this Agreement or the transactions contemplated hereby, except with the consent of the other Party, or as and to the extent that any such Party shall be required to make any such disclosure by applicable law, and then only after giving the other Parties hereto an opportunity to review, if possible under the circumstances, such disclosure and consider in good faith the comments of such other Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Sellers shall be responsible for all Excluded Taxes and, for the avoidance of doubt, all Excluded Taxes shall be Excluded Liabilities. Sellers, on the one hand, and Buyer on the other hand, shall each bear and pay, or cause to be paid, fifty percent (50%) of all stamp, documentary, sales, use, value added, goods and services, registration, property, excise, transfer or similar Taxes, charges or fees ("<u>Transfer Taxes</u>") that may become payable in connection with the conveyance and transfer of the Transferred Assets to Buyer or otherwise in connection with the Transaction, and will cooperate to make all filings, returns, reports and forms as may be required to comply with the provisions of all applicable Law relating to Transfer Taxes. Each of Buyer and the Sellers shall, and shall cause their respective Affiliates to, use commercially reasonable efforts as reasonably requested in writing by the Sellers or the Buyer to lawfully minimize any Transfer Taxes, including by delivering the Transferred Assets through electronic delivery if such delivery does not adversely affect the condition, operability or usefulness of any Transferred Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Sellers and Buyer shall (i) provide the other with such assistance as may reasonably be requested by either of them in connection with the preparation of any Tax Return, any audit or other examination by any taxing authority or any judicial or administrative proceeding with respect to Taxes, (ii) retain and provide the other with any records or other information which may be relevant to such return, audit, examination or proceeding, and (iii) provide the other with any final determination of any such audit or examination proceeding or determination that affects any amount required to be shown on any Tax Return of the other for any period (which shall be maintained confidentially). Without limitation of the foregoing, (i) Holdco and Buyer shall deliver any income Tax Return of Holdco, the Buyer or any subsidiary of the foregoing reflecting the transactions contemplated by this Agreement, or any allocations or positions with respect thereto, to the Sellers at least thirty (30) days before the due date thereof and (ii) the Sellers shall have the right to consult with Holdco and Buyer regarding the characterization of the transactions contemplated by this Agreement (including the characterization of the Consideration (or any component thereof), the treatment of any liabilities assumed by Holdco or Buyer pursuant to this Agreement, and any associated allocations to the Sellers or any beneficial owner thereof) on any income Tax Returns for any applicable tax period, and neither Holdco nor Buyer shall file any such Tax Return without the Sellers' consent, such consent not to be unreasonably withheld, delayed or conditioned; <u>provided</u> that, if Holdco has provided the Sellers with such Tax Returns at least thirty (30) days prior to the due date, Holdco shall not be prevented from timely filing any such Tax Return if the Sellers do not provide consent before the applicable deadline for filing such Tax Return (provided, further, that if the Parties are continuing to negotiate in good faith as of such applicable deadline, such Tax Return shall be amended to reflect the resolution of the Parties' negotiation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All personal property Taxes and similar ad valorem obligations levied with respect to the Transferred Assets for a Straddle Period, if any, shall be apportioned based on the number of days of such taxable period ending on the Closing Date and the number of days of such taxable period after the Closing. The Sellers shall be liable for any such Taxes attributable to the portion of the Straddle Period ending on the Closing Date, and Buyer shall be liable for any such Taxes attributable to the portion of the Straddle Period that begins after the Closing Date. For the avoidance of doubt, Buyer shall not be responsible for or required to pay any real property Taxes (including with respect to the Leased Real Property).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties intend for U.S. federal and all applicable state and local income Tax purposes that any liability that is assumed by Buyer in connection with the Transaction that is attributable to deferred revenue shall not be treated as giving rise to taxable income of Buyer or its Affiliates under James M. Pierce Corp. v. Commissioner, 326 F.2d 67 (8th Cir. 1964). Except as otherwise required pursuant to applicable Law, none of the Parties shall take a Tax position inconsistent with this <u>Section 7.6(d)</u> on any Tax Return or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer and Sellers will determine whether the Parties hereto and their respective Affiliates shall utilize the standard procedure or the alternate procedure set forth in Revenue Procedure 2004-53, 2004-2 C.B. 320 with respect to wage reporting in respect of Transferred Employees, and the Parties shall be obligated to utilize or cause to be utilized the relevant procedure so determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Parties acknowledge and agree that (i) the exchange of a pro rata portion of the Transferred Assets for the Closing Stock Consideration and the additional Units issuable pursuant to <u>Section 2.1(b)</u> as well as the Warrant (and any contingent additional Units issued pursuant to the terms thereof (or any adjustment to the conversion ratio thereof)) (the "<u>Contribution</u>") is intended to qualify as a tax-deferred contribution pursuant to Section 721 of the Code, (ii) the Warrant (and any contingent additional Units issued pursuant to the terms thereof (or any adjustment to the conversion ratio thereof)) is intended to be treated as a partnership interest in Holdco for U.S. federal and applicable state and local income Tax purposes; and (iii) (A) any liability referred to in <u>Section 7.6(d)</u> hereof or otherwise pursuant to this Agreement will not be treated as a distribution by Holdco or Buyer (or liability assumption by Holdco or Buyer resulting in a deemed distribution), including pursuant to Section 752 or Section 731 of the Code, to Sellers or the beneficial owner of Sellers; and (B) no more than 13.636% of any such liability shall be treated as transferred in connection with the Contribution. None of the Parties shall take a Tax position inconsistent with the intended tax treatment set forth in this <u>Section 7.6(f)</u> unless otherwise required after a diligently contested audit or reasonably requested by the Sellers; <u>provided</u> that, with respect to the liabilities assumed by Holdco or Buyer in connection with the Contribution, the parties agree that neither Holdco nor Buyer shall be in breach of Section 7.6(f)(iii)(A), or this sentence as a result of a failure to report consistently with <u>Section 7.6(f)(iii)(A),</u> and neither Holdco nor Buyer shall be liable to Sellers or any beneficial owner of Sellers as a result of such failure to report if, following good faith consultation with their tax advisors, Buyer and/or Holdco determine that there is not at least a reasonable basis for filing consistently with the position set forth in <u>Section 7.6(f)(iii)(A) and Holdco or Buyer does not report consistently with Section 7.6(f)(iii)(A)</u> solely with respect to no more than 13.636% of the liabilities assumed by Buyer and Holdco pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to and in accordance with the provisions of this <u>Section 7.7,</u> Buyer shall offer employment to the Business Employees who are employed by the Sellers or their Affiliates as of the Closing; <u>provided</u> that such Business Employee may not commence employment with Buyer until the Employee Transfer Date. On the Employee Transfer Date, Buyer shall hire all of the Business Employees who accept such offers made by Buyer and that meet Buyer's requirements with respect to employee screening, background checks and other conditions to employment (such individuals, the "<u>Transferred Employees</u>"). The Sellers shall use reasonable efforts to assist Buyer in securing the employment of the Business Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Sellers hereby covenant and agree with Buyer that effective as of the Closing all non-competition, confidentiality, non-solicitation and other restrictive covenants in favor of the Sellers or their Affiliates granted by any Transferred Employee shall be fully waived with respect to their employment with Buyer or its Affiliate, and with respect to all services provided or to be provided by such Transferred Employees to Buyer and its Affiliates from and after the Closing, and the Sellers hereby agree not to sue or otherwise seek recourse against any Transferred Employee or Buyer or its Affiliates for a breach of any such restrictive covenant granted by any Transferred Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Employee Transfer Date, the Sellers shall terminate the employment of all Transferred Employees in full compliance with applicable Law. The Sellers will give all notices and other information required to be given to such Transferred Employees, any collective bargaining unit representing any group of employees of the Sellers, and any applicable governmental body, whether under the WARN Act, the National Labor Relations Act, as amended, the Code, COBRA, and otherwise under any other applicable Law in connection with the Transaction. The Sellers will be responsible at the Sellers' own cost and expense, to take whatever steps are necessary to pay all obligations and Liabilities, in full compliance with applicable Law, arising from or relating to the employment and termination of employment of all Transferred Employees (including under any of the Employee Plans or under any employment Contract), including, but not limited to, any and all salary, wage, benefit, bonus, the amount of any bonus earned in respect of revenues related to any pre-Closing period, severance, retention payment, change of control award, vacation, sick leave, paid time off, or similar Liability of the Sellers allocable to services performed on or prior to the Employee Transfer Date (and all employment and other Taxes relating thereto) (collectively, the "<u>Pre-Closing Compensation and Benefits Liabilities</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Sellers shall retain and be responsible for (i) all Pre-Closing Compensation and Benefits Liabilities, (ii) all Liabilities relating to the Transferred Employees that are not Assumed Liabilities, (iii) any lawsuit, administrative charge, arbitration, proceeding, or written demand or notice pertaining to any such Liabilities or pertaining to any Transferred Employees and arising out of such Transferred Employees' employment with the Sellers prior to the Employee Transfer Date, to the extent not constituting Assumed Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person, including any current or former employee, officer, director, independent contractor or consultant (or any spouse or dependent of such individual) of the Sellers or any Transferred Employees, any 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;(f) As soon as practicable following the Closing, but in no event later than 14 days after the Closing, the Sellers shall provide Buyer with the name, mailing address and date of termination for each COBRA "M&A qualified beneficiary" (as such term is defined under COBRA or applicable regulations or proposed regulations) of the Sellers who is currently receiving COBRA continuation coverage, currently has a right to elect COBRA continuation coverage or may become entitled to continuation of health coverage benefits under COBRA following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Post-Closing Access</u>. Buyer shall continue to cooperate with the Sellers, or any successor and assigns of the Sellers, following the Closing Date with respect to the matters that are the subject of this Agreement, including providing reasonable access, upon notice and request and upon consent of the Buyer (which consent shall not be unreasonably withheld), to any Transferred Books and Records, including, for the avoidance of doubt, any electronically stored information. Following the Closing Date, Buyer shall designate and appoint a person to serve as a designated point of contact for Sellers or Seller's successors and assigns, and shall provide written notice (which notice may be by email) to the Sellers of such person's name and contact information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The terms of the that certain Mutual Confidentiality Agreement, dated as of March 16, 2023 between Louis Amoroso and Parent (as amended, supplemented or restated from time to time, the "<u>Confidentiality Agreement</u>") shall terminate as of the Closing Date. If this Agreement is, for any reason, terminated prior to the Closing, the Confidentiality Agreement shall nonetheless continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sellers recognize that, upon the Closing, certain information and material related to the Business and Transferred Assets that were confidential and proprietary to Sellers prior to the Closing will become Business Confidential Information transferred to and owned by Buyer. Accordingly, the Sellers will not at any time, except in performance of its obligations to Buyer, or as permitted by and in accordance with <u>Section 7.13,</u> the Transition Services Agreement or the License Agreement, directly or indirectly, use, disclose or publish, or permit other Persons to use, disclose or publish, any Business Confidential Information, unless a Seller is advised in writing by counsel that disclosure is required by Law or the order of any Governmental Entity of competent jurisdiction; provided that prior to disclosing any such information, the Seller shall, to the extent permitted by applicable Law, give prior written notice thereof to Buyer and provide Buyer with the opportunity to contest such disclosure and shall cooperate with efforts to prevent such disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller's continued use of any Business Confidential Information, including pursuant to the Transition Services Agreement and License Agreement, is subject to: (i) the Sellers using reasonable efforts to protect the confidentiality of the Business Confidential Information and treating such Business Confidential Information with the same degree of care as it treats its own like confidential information; and (ii) the Sellers not disclosing any Business Confidential Information, except as necessary to the operation of Sellers' and its Affiliates' respective businesses (other than the Business) after the Closing and provided that such disclosure is part of the disclosure of Sellers' or its Affiliates' own like confidential information pursuant to confidentiality terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer will not at any time, except as permitted by and in accordance with the License Agreement and Transition Services Agreement, directly or indirectly, use, disclose or publish, or permit other Persons (including Affiliates of Buyer) to use, disclose or publish, any Shared Business Confidential Information, unless Buyer is advised in writing by counsel that disclosure is required by Law or the order of any Governmental Entity of competent jurisdiction; provided that prior to disclosing any such information, Buyer shall, to the extent legally permissible, give prior written notice thereof to Sellers and provide Sellers with the opportunity to contest such disclosure and shall cooperate with efforts to prevent such disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Buyer's continued use of any Shared Business Confidential Information, including pursuant to the License Agreement, is subject to: (i) Buyer using reasonable efforts to protect the confidentiality of the Shared Business Confidential Information and treating such Shared Business Confidential Information with the same degree of care as it treats its own like confidential information; and (ii) Buyer not disclosing any Shared Business Confidential Information except as necessary to the operation of Buyer's and its Affiliates' respective businesses after the Closing and provided that such disclosure is part of the disclosure of Buyer's or its Affiliates' own like confidential information on industry standard confidentiality terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing in this Agreement prohibits, or is intended in any manner to prohibit, a report of a possible violation of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General, or making other disclosures that are protected under whistleblower provisions of applicable Law. No authorization of any other party is needed to make such disclosure; provided that the party making such disclosure provides the other party with notice thereof, to the extent legally permissible, and assists the other party in limiting the scope of such disclosure or obtaining a protective order or other confidential treatment for any confidential information disclosed in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Sellers will, promptly after copies of the Transferred Customer Data and Transferred User Data have been transferred to Buyer (with Buyer acknowledging its receipt thereof in writing), destroy all copies of the Transferred Customer Data and Transferred User Data held by them or their Affiliates. Notwithstanding the foregoing, Sellers shall (i) be permitted to retain a copy of the Transferred Customer Data and Transferred User Data to the extent required to (A) comply with applicable Law or Governmental Entity or written and established internal document retention policies and (B) perform their obligations under the Transition Services Agreement and (ii) not be required to destroy, delete, or modify any Transferred Customer Data and Transferred User Data pursuant to automated archival processes in the ordinary course of business, provided in each case (i) and (ii) herein, any such Transferred Customer Data and Transferred User Data retained shall remain subject to the confidentiality obligations of this Agreement for so long as such Business Confidential Information is retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <u>Communications and Activities with Customers and Suppliers</u>. The Parties hereto shall reasonably cooperate with each other in coordinating their communications with any customer, supplier or other contractual counterparty of the Business in relation to this Agreement and the Transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <u>Further Transfers; Wrongfully Transferred or Retained Assets and Liabilities</u>. Each of the Parties shall execute and deliver such further instruments of conveyance and transfer and take such additional actions as may be required or reasonably requested by the other Party to consummate the transactions contemplated hereby, at the requesting Party's cost and expense. In the event that any of the Parties discovers after the Closing that it, or its Affiliates, is the owner of, receives or otherwise comes to possess any asset or is liable for any Liability that is allocated to any other Party in accordance with this Agreement, such Party shall, or shall cause its Affiliates to, use commercially reasonable efforts to convey such asset or Liability to the Party so entitled or obligated thereto in accordance with this Agreement (and the Party so entitled or obligated will accept such asset or assume such Liability). From and after the Closing Date, without any further consideration, Sellers shall use their commercially reasonable efforts to cause BWSC to sell, transfer, convey, assign and deliver any Transferred Assets held by BWSC to Buyer (or its designee) to the extent not transferred at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <u>No Solicitation of Competing Transactions</u>. Until the earlier of the termination of this Agreement pursuant to <u>Article XI</u> and the Closing Date, Sellers and Parent shall not, and shall cause each of their respective officers, directors and Affiliates not to, and shall cause each of their respective Representatives not to, directly or indirectly through any other Person or otherwise, solicit, continue, initiate or conduct any discussions or other communications with, or provide any non-public information to or otherwise cooperate in any other way with, or facilitate or encourage any effort to attempt to, or enter into or agree to accept or approve any Contract, letter of intent, memorandum of understanding or other arrangement or understanding (whether binding or non-binding) with, any Person or group of Persons regarding any Competing Transaction. Seller shall promptly (and in any event within two (2) Business Days) notify Buyer of the receipt by Seller or any of its Representatives of any inquiries, or proposals or requests for information concerning a Competing Transaction, including the material terms thereof the identity of the Person making such proposal and copies of all written materials relating to such inquiries, proposals or requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <u>Certain Use of the Transferred Trademarks</u>. Except as provided in this <u>Section 7.13</u> or to perform their obligations under the Transition Services Agreement, after the Closing Date the Sellers and their Affiliates shall cease using the Transferred Trademarks, the Transferred Customer Data and the Transferred User Data. Prior to January 1, 2024, the Sellers may continue to label products with the specific Transferred Trademarks set forth on <u>Schedule 7.13</u> (such labeled product inventory, the "<u>Newly Labeled Inventory</u>"). No Sellers will be obligated to remove or modify labels from any product inventory in existence as of the Closing Date that bear or otherwise display the specific Transferred Trademarks set forth on <u>Schedule 7.13</u> (collectively, the "<u>Seller Retained Inventory</u>"). The Sellers and their Affiliates shall have the right (through multiple tiers of distributors) to sell all Seller Retained Inventory and Newly Labeled Inventory and to use related packaging, labeling, containers, advertising materials, product data sheets and any similar materials bearing the Transferred Trademarks set forth on <u>Schedule 7.13</u> until the depletion of all such Seller Retained Inventory and Newly Labeled Inventory (the "<u>Inventory Depletion Period</u>"). The Sellers shall use such Transferred Trademarks set forth on <u>Schedule 7.13</u> only in a form and manner consistent with past practice since the BR Purchase, and only in connection with goods of a level of quality equal to or greater than the quality of goods offered in connection with the Seller's use of such Transferred Trademarks immediately prior to the Closing Date. Any and all goodwill arising from the Sellers' use of the Transferred Trademarks set forth on <u>Schedule 7.13</u> after the Closing Date shall inure solely to Buyer's benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 <u>License to Sellers</u>. Effective as of the Closing, Buyer hereby grants to the Sellers and their Affiliates, and the Sellers and their Affiliates hereby reserve and retain, a worldwide, non-exclusive, fully paid-up, royalty-free, right and license: (i) for a period of the first 120 days after Closing, to use, copy, modify, create derivative works of, display, transmit, distribute and otherwise exploit, the Transferred Technology or Owned Marketing Materials (other than the Transferred Trademarks, the Transferred Customer Data and the Transferred User Data) that is necessary to continue to operate the Retained Business in the ordinary course, and (ii) during the Inventory Depletion Period, to use the Transferred Trademarks set forth on <u>Schedule 7.13</u> and the related packaging, labeling, containers, advertising materials, product data sheets and similar materials bearing the Transferred Trademarks set forth on <u>Schedule 7.13</u> as described in <u>Section 7.13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15 <u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the first sixty (60) months from and after the Closing Date, the Sellers (sometimes referred to in this <u>Section 7.15</u> as the "<u>Restricted Sellers</u>") shall not, and shall not permit any of their Affiliates or Representatives to, directly or indirectly: (i) hire, employ, engage (including as an independent contractor or consultant) any Business Employee; or (ii) recruit or solicit any Business Employee for or on behalf of any Person; or (iii) assist, encourage, facilitate or induce any Business Employee to leave their employment or engagement with a Buyer or its Affiliate; <u>provided,</u> that it shall not be a breach of this <u>Section 7.15(a)</u> to (A) continue to employ a Business Employee between the Closing Date and the Employee Transfer Date; or (B) make a general solicitation which is not directed specifically to any Business Employee (but the foregoing shall not permit the subsequent hiring, employment or engagement of a Business Employee who responds to such general solicitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the first sixty (60) months from and after the Closing Date, the Restricted Sellers shall not, and shall not permit any of their Affiliates or Representatives to, use (or permit, assist or facilitate any other Person to use) any Transferred Customer Data or Transferred User Data for any purpose whatsoever, including to (i) solicit, market, advertise to or entice, or attempt to solicit, market, advertise to or entice, any clients or customers, or potential clients or customers, to do business or purchase goods or services from any Restricted Seller, any of their Affiliates or any other Person, or (ii) seek or attempt to seek to interfere with or adversely affect the ongoing relationships between the Buyers or the Business or any portion or segment thereof, on the one hand, and any of their current and prospective clients and customers on the other hand. For the avoidance of doubt, (A) nothing herein shall be deemed a consent given to any Person (or any grant of any license or right to any Person) to use any of the Transferred Customer Data or Transferred User Data for any purpose whatsoever at any time after the above restricted period, and (B) nothing in this <u>Section 7.15(b)</u> shall be deemed to restrict Sellers' right to use the Shared Customer Data in a manner that complies with the provisions of <u>Section 7.15(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the first eighteen (18) months from and after the Closing Date, the Restricted Sellers shall not, and shall not permit any of their Affiliates or Representatives to, advertise or market their Summer Water-brand wine or any website selling such wine (including <u>summerwater.com)</u> to consumers or potential consumers in any way that includes any transactional call-to-action, in each case in any marketing channel, whether online or offline. As used herein, a "<u>transactional call-to-action</u>" means and includes any words or phrases that a reasonable person could reasonably view as being intended to directly generate sales to consumers, including to do so through a subscription or club program (for example, words or phrases such as "order now," "shop," "buy direct," "purchase," "get started," "subscribe and save," "join," "visit and save," "check out the savings" "sale or promotion ends soon," "limited time offer" "exclusive offer," "limited quantities remain" and similar words or phrases). For the avoidance of doubt, it shall not be a breach of this <u>Section 7.15(c)</u> to merely advertise or market their Summer Waterbrand or <u>summerwater.com</u> in a manner that a reasonable person would reasonably view as merely brand building, encouraging consumers to visit physical retail stores, increasing general awareness or encouraging consumers to visit <u>summerwater. com</u> to learn about their Summer Water-brand wine without a transactional call-to-action (for example, using words or phrases such as "learn more," "visit <u>summerwater.com,</u>" "find Summer Water at a store near you," "available at leading retail stores," and "the official Rose of Summer" and without using any transactional call-to-action).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Restricted Sellers acknowledge that a breach or threatened breach of this <u>Section 7.15</u> would give rise to irreparable harm to Buyer, for which monetary damages would not be an adequate remedy, and hereby agree that in the event of a breach or a threatened breach by a Restricted Seller of any such obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Restricted Sellers acknowledge that restrictions contained in this <u>Section 7.15</u> (each a "<u>Covenant</u>" and collectively the "<u>Covenants</u>") are reasonable and necessary to protect the legitimate interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated hereby. In the event that any Covenant should ever be adjudicated to exceed the time, geographic, product or service, or other limitations permitted by applicable Law in any jurisdiction, then any court is expressly empowered to reform such Covenant, and such Covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by applicable Law. The Covenants and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant 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;(f) The Parties agree that each Covenant is separate, distinct and severable not only from any other such Covenant but also from the other and remaining provisions of this Agreement. If any of the provisions of or Covenants are hereafter construed to be invalid or unenforceable in any jurisdiction, the same shall not affect the remainder of the provisions or the enforceability thereof in any other jurisdiction, which shall be given full effect, without regard to the invalid portions or the unenforceability in such other jurisdiction. If any of the provisions of or Covenants are held to be unenforceable in any jurisdiction because of the duration and/or scope (whether geographic or otherwise) thereof, the Parties agree that such provision shall be deemed to be reduced to the maximum duration and/or scope permitted in said jurisdiction, provided, however, that such reduction shall not affect the enforceability of this Agreement in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Restricted Seller hereby acknowledges and agrees that: (i) it and its counsel reviewed and negotiated the terms and provisions of this <u>Section 7.15</u> and have contributed to its preparation; (b) any rule of construction to the effect that ambiguities be resolved against the drafting Party shall not be employed in the interpretation of this <u>Section 7.15</u>; and (c) the terms and provisions of this <u>Section 7.15</u> shall be construed fairly as to all Parties hereto and not in favor of or against any Party, regardless of which Party was generally responsible for the preparation of this <u>Section 7.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16 <u>Privacy Policy</u>. Buyer shall, within 30 days after the Closing Date, update the website privacy policy (currently located at https://www.winc.com/privacy) to reflect Buyer's change in ownership of the Transferred Platform.

**ARTICLE VIII**

**INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Survival of Representations and Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations of the Sellers</u>. The representations and warranties of the Sellers set forth in this Agreement, or in any certificate or other instrument delivered by a Seller at or prior to the Closing, and all indemnification rights in respect thereof, shall survive the Closing and shall remain in full force and effect until 11:59 p.m. (Illinois time) on the date that is fifteen (15) months following the Closing Date (such time on such date, the "<u>Survival Time</u>"); provided, however, that notwithstanding the foregoing or anything to the contrary set forth in this Agreement: (i) each Fundamental Representation, and all indemnification rights in respect thereof, shall survive the Closing and shall remain in full force until sixty (60) days after the expiration of the applicable statute of limitations (the survival period for a particular representation or warranty of the Sellers described above, such representation or warranty's "<u>Survival Period</u>"); and (ii) no indemnification right in respect of a breach of any representation or warranty of Sellers that is asserted in an Indemnification Claim delivered prior to the expiration of such representation or warranty's Survival Period shall be limited, restricted, impaired or otherwise affected by the expiration of such Survival Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Representations of the Buyer</u>. The representations and warranties of the Buyer set forth in this Agreement shall survive the Closing and shall remain in full force and effect until the Survival Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Covenants</u>. All covenants and agreements of the Parties contained herein shall survive the Closing until fully performed in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Indemnification of Seller Indemnified Parties</u>. Subject to the limitations set forth in <u>Section 8.4</u> below, from and after the Closing, Buyer, together with its successors and assigns (collectively, the "<u>Buyer Indemnifying Parties</u>"), shall, jointly and severally, indemnify, hold harmless and reimburse the Sellers and their respective Affiliates, directors, managers, officers, employees, members, stockholders, agents and other Representatives (collectively, the "<u>Seller Indemnified Parties</u>") from, against and in respect of any and all Damages paid, sustained or incurred by the Seller Indemnified Parties (or any one or more of them), regardless of whether such Damages relate to any Third Party Claims, and resulting from, attributable to, or arising out of, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of, or failure to be true and correct of, any representation or warranty made by Buyer in this Agreement as of the date hereof or as of the Closing Date (except in the case of representations and warranties which by their terms speak only as of a specific date or dates, in which case as of such specified date or dates) without giving effect to any update of or modification to the Disclosure Schedule made or purported to have been made on or after the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant or other agreement made or to be performed by Buyer in this Agreement or any other Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Assumed Liabilities under <u>Section 1.1(c);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Liabilities arising following the Closing from or relating to the operation or conduct of the Business by Buyer or the Transferred Assets, or the ownership, use or operation of the Transferred Assets, in each case, only to the extent that such Liabilities (i) are required to be performed after the Closing Date or arose out of facts, conditions, circumstances, events, actions or omissions occurring on or after the Closing, (ii) do not relate to any failure to perform, improper performance, warranty, or other breach, default, or violation by Sellers prior to the Closing, (iii) are not duplicative of amounts required to be paid by Buyer under the Transition Services Agreement or the License Agreement, and (iv) do not relate to any matter for which any Buyer Indemnified Party is entitled to be indemnified from under <u>Section 8.3</u> below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Liabilities with respect to the employment or termination of the Transferred Employees by Buyer or an Affiliate of Buyer after the Employee Transfer Date (as defined below), but in each case only to the extent arising from any event or events that occur solely after the later of the Closing or the date such Transferred Employee becomes employed by Buyer (the "<u>Employee Transfer Date</u>"), including, but not limited to, (i) salary, commissions, paid time off, sick leave, and incentive compensation incurred at any time after the later of the Closing or the Employee Transfer Date, (ii) all change of control payments, retention payments, and advance notice of termination, garden leave, termination or severance payments to the Transferred Employees incurred at any time after the later of the Closing or the Employee Transfer Date (but not to the extent related to the consummation of the transactions contemplated by this Agreement or the termination of their employment by Sellers), (iii) all Liabilities arising under any employee benefit and health and welfare plans of Buyer or its Affiliate incurred at any time after the later of the Closing or the Employee Transfer Date, (iv) all Liabilities for any Claims of or related to any Transferred Employees incurred as a result of any Legal Proceeding arising at any time after the later of the Closing or the Employee Transfer Date and which relates to periods after such later date along with, in each such case, all Taxes related thereto (the "<u>Transferred Employee Assumed Liabilities</u>") (other than, for the avoidance of doubt, (A) the Transferred Employee Excluded Liabilities, (B) amounts that are duplicative of amounts required to be paid by Buyer under the Transition Services Agreement, and (C) amounts that relate to any matter for which any Buyer Indemnified Party is entitled to be indemnified from under <u>Section 8.3</u> below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Liabilities for Taxes that relate to the Business or the Transferred Assets for any taxable period (or portion thereof) beginning after the Closing Date, but excluding (i) any Excluded Taxes, (ii) amounts that are duplicative of amounts required to be paid by Buyer under the Transition Services Agreement or the License Agreement, (iii) amounts that relate to any matter for which any Buyer Indemnified Party is entitled to be indemnified from under Section 8.3 below, and (iv) any Taxes of any Seller or its Affiliates or beneficial owners attributable to, related to or arising from (A) the consummation of the transactions contemplated by this Agreement and/or the Transaction Documents (except that Buyer shall be responsible for 50% of the Transfer Taxes as provided in Section 7.6(a)), and/or (B) any Seller Indemnified Party or its Affiliate (1) being a member of Holdco or its Affiliate at any time, or (2) directly or indirectly owning units or other equity interests, or instruments exercisable for or convertible into units or other equity interests, of Holder or its Affiliate at any time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all escheatment Liabilities of any Seller arising from Third Party Claims by any Governmental Entity and arising on or prior to the BR Purchase and that by Law should have been satisfied or paid prior to the closing of such BR Purchase, including those related to any Gift Cards or Subscriptions Obligations of any Seller under any federal or state Law or otherwise to the extent that such Liabilities were not cleansed pursuant to the order issued by the Bankruptcy Court in connection with the BR Purchase (even though all Parties hereto believe that all such Liabilities were, in fact, cleansed pursuant to the order issued by the Bankruptcy Court in connection with the BR Purchase).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Indemnification of Buyer Indemnified Parties</u>. Subject to the limitations set forth in <u>Section 8.4</u> below, from and after the Closing, Sellers, together with their successors and assigns (collectively, the "<u>Seller Indemnifying Parties</u>" and together with the Buyer Indemnifying Parties, the "<u>Indemnifying Parties</u>"), shall, jointly and severally, indemnify, hold harmless and reimburse the Buyer, each of Buyer's Subsidiaries and other Affiliates along with their respective directors, managers, officers, employees, members, stockholders, agents and other Representatives (collectively, the "<u>Buyer Indemnified Parties</u>" and together with the Seller Indemnified Parties, the "<u>Indemnified Parties</u>") from, against and in respect of any and all Damages paid, sustained or incurred by the Buyer Indemnified Parties (or any one or more of them), regardless of whether such Damages relate to any Third Party Claims, and resulting from, attributable to, or arising out of, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of, or failure to be true and correct of, any representation or warranty made by Sellers in this Agreement as of the date hereof or as of the Closing Date (except in the case of representations and warranties which by their terms speak only as of a specific date or dates, in which case as of such specified date or dates) without giving effect to any update of or modification to the Disclosure Schedule made or purported to have been made on or after the date of this Agreement (but in each case only to the extent such inaccuracy, breach or failure to be true and correct (i) arises from or relates to the status, operation or conduct of the Business or the ownership, use or operation of the Transferred Assets by Sellers on or after the BR Purchase, or (ii) arises from or relates to any matter of which any Seller has Knowledge).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant or other agreement made or to be performed by a Seller in this Agreement or any other Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Fraud committed by or on behalf of any Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Excluded Assets or Excluded Liabilities, including any Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Pre-Closing Earnings Amount, Inventory Shortfall, Gift Card Excess or Subscription Excess in each case, to the extent not included in the Estimated Amounts or the final Post-Closing Adjustment Amount, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) regardless of any disclosure of any matter set forth in the Disclosure Schedule, the reasonable and documented costs and expenses of the defense, evaluation and investigation of any Third Party Claim that, if adversely determined, would give rise to an indemnification right of any Buyer Indemnifying Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Limitations on Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Caps on Liability</u>. The Seller Indemnifying Parties shall not be required to pay or be liable for, Damages (i) in excess of the Purchase Price for Damages arising pursuant to <u>Section 8.3(a)</u> relating to any Fundamental Representation, (ii) in excess of fifteen percent (15%) of the Purchase Price for Damages otherwise arising pursuant to <u>Section 8.3(a),</u> and (iii) in excess of the Purchase Price for Damages arising pursuant to <u>Sections 8.3(b)</u> through <u>8.3(f)</u>, inclusive. The Buyer Indemnifying Parties shall not be required to pay or be liable for, Damages (i) in excess of the Purchase Price for Damages arising pursuant to <u>Section 8.2(a)</u> relating to any of the representations and warranties in <u>Sections 5.1, 5.2, 5.3, 5.5</u>, <u>5.6</u> and <u>5.7</u>, (ii) in excess of fifteen percent (15%) of the Purchase Price for Damages otherwise arising pursuant to <u>Section 8.2(a)</u>, and (iii) in excess of the Purchase Price for Damages arising pursuant to <u>Sections 8.2(b)</u> through <u>8.2(f),</u> inclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Damage Threshold</u>. The Buyer Indemnified Parties shall not be entitled to recover any Damages pursuant to <u>Section 8.3(a)</u> from the Seller Indemnifying Parties unless and until all Damages paid, sustained or incurred by the Buyer Indemnified Parties (or any of them) exceeds $50,000 (the "<u>Damage Threshold</u>") in the aggregate, and if the aggregate of all Damages paid, sustained or incurred by the Buyer Indemnified Parties (or any of them) exceeds the Damage Threshold, then the Buyer Indemnified Parties shall be entitled to recover all such Damages (including the amount of the Damage Threshold); <u>provided, however,</u> that notwithstanding the foregoing, the preceding restriction set forth in this <u>Section 8.4(b)</u> shall not apply to or in any way limit or otherwise restrict any right in respect of: (i) any inaccuracy in or breach of any Fundamental Representation; or (ii) any Indemnification Claims made pursuant to one or more of <u>Sections 8.3(b)</u> through <u>8.3(f),</u> inclusive. The Seller Indemnified Parties shall not be entitled to recover any Damages pursuant to <u>Section 8.2(a)</u> from the Buyer Indemnifying Parties unless and until all Damages paid, sustained or incurred by the Seller Indemnified Parties (or any of them) exceeds the Damage Threshold in the aggregate, and if the aggregate of all Damages paid, sustained or incurred by the Seller Indemnified Parties (or any of them) exceeds the Damage Threshold, then the Seller Indemnified Parties shall be entitled to recover all such Damages (including the amount of the Damage Threshold); <u>provided</u>, <u>however,</u> that notwithstanding the foregoing, the preceding restriction set forth in this <u>Section 8.4(b)</u> shall not apply to or in any way limit or otherwise restrict any right in respect of: (i) any inaccuracy in or breach of any of the representations and warranties in <u>Sections 5.1, 5.2, 5.3, 5.5, 5.6</u> and <u>5.7</u>; or (ii) any Indemnification Claims made pursuant to one or more of <u>Sections 8.2(b)</u> through <u>8.2(f),</u> inclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Insurance and Third Party Recoveries</u>. The amount of Damages suffered by an Indemnified Party pursuant to <u>Section 8.2</u> or <u>Section 8.3,</u> as applicable, in this Agreement shall be reduced by the amount of any insurance proceeds or third party recoveries actually received by the Indemnified Party as compensation for such Damages (net of any and all costs and expenses incurred in connection with such collection, including any deductibles, premium adjustments, reimbursement obligations or other costs). Except as required by applicable Law, no Indemnified Party shall have any obligation to affirmatively obtain insurance coverage or pursue the collection of any insurance proceeds, regardless of whether such Indemnified Party has suffered or incurred any Damages for which such Indemnified Party has insurance coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything herein to the contrary, for purposes of <u>Section 8.2(a)</u> and <u>Section 8.3(a)</u>, all materiality qualifications (such as "<u>material</u>" and "<u>Material Adverse Effect</u>") included in the representations and warranties in this Agreement shall be disregarded for purposes of calculating the amount of any Damages incurred (but not for purposes of determining whether there has been any failure of a representation or warranty to be true and correct).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Applicability of Limitations</u>. Notwithstanding anything to the contrary set forth in this Agreement, the limitations set forth in this <u>Section 8.4</u> shall not apply to, and nothing set forth in this <u>Article VIII</u> or elsewhere in this Agreement shall limit the Liability of the Indemnifying Parties for any Claims under this Agreement or applicable Law arising out of Fraud committed by any Indemnifying Party or of which any Indemnifying Party had actual knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Indemnification Claim Procedure</u>. Any Claim for indemnification or reimbursement pursuant to this <u>Article VIII</u> (each, an "<u>Indemnification Claim</u>") shall be brought and resolved exclusively as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of Claim</u>. If any Indemnified Party has or claims in good faith to have incurred, paid or suffered, or believes that it may incur, pay or suffer, Damages for which it is or may be entitled to be held harmless, indemnified or reimbursed under this <u>Article VIII</u> (including with respect to a Third Party Claim), such Indemnified Party may deliver a notice of claim (a "<u>Notice of Claim</u>") to the Indemnifying Party. Each Notice of Claim shall: (i) state that such Indemnified Party believes it is or may be entitled to indemnification, compensation or reimbursement under this <u>Article VIII;</u> (ii) contain a brief description of the circumstances supporting such Indemnified Party's belief that it is or may be so entitled to indemnification or reimbursement or is or may otherwise be entitled to a monetary remedy; and (iii) if practicable, contain a non-binding, preliminary estimate of the aggregate dollar amount of actual and potential Damages that have arisen and may arise as a result of such circumstances (the aggregate amount of such estimate, as it may be modified by such Indemnified Party in good faith from time to time, being referred to as the "<u>Claimed Amount</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dispute Procedure</u>. During the 30-day period commencing upon delivery by an Indemnified Party to an Indemnifying Party of a Notice of Claim (the "<u>Dispute Period</u>"), such Indemnifying Party may deliver to the Indemnified Party who delivered the Notice of Claim a written response (the "<u>Response Notice</u>") in which the Indemnifying Party: (i) agrees that the full Claimed Amount is owed to the Indemnified Party; (ii) agrees that part, but not all, of the Claimed Amount (the "<u>Agreed Amount</u>") is owed to the Indemnified Party; or (iii) indicates that no part of the Claimed Amount is owed to the Indemnified Party. If the Response Notice is delivered in accordance with clause "(ii)" or "<u>(iii)</u>" of the preceding sentence, the Response Notice shall also contain a brief description of the facts and circumstances supporting the Indemnifying Party's claim that only a portion or no part of the Claimed Amount is owed to the Indemnified Party, as the case may be. Any part of the Claimed Amount that is not agreed to be owed to the Indemnified Party pursuant to the Response Notice (or the entire Claimed Amount, if the Indemnifying Party asserts in the Response Notice that no part of the Claimed Amount is owed to the Indemnified Party) is referred to as the "<u>Contested Amount</u>" (it being understood that the Contested Amount shall be modified from time to time to reflect any good faith modifications by the Indemnified Party to the Claimed Amount). If a Response Notice is not received by the Indemnified Party prior to the expiration of the Dispute Period, then the Indemnifying Parties shall be conclusively deemed to have agreed that the full Claimed Amount is owed to the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Claimed Amounts</u>. If: (i) the Indemnifying Party delivers a Response Notice to the Indemnified Party agreeing that the full Claimed Amount is owed to the Indemnified Party; or (ii) the Indemnifying Party does not deliver a Response Notice during the Dispute Period, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the case of the Seller Indemnifying Parties, any Unpaid Note Amount payable by the Buyer shall be reduced (A) by the full Claimed Amount or (B) to $0, if the Claimed Amount exceeds the Unpaid Note Amount (and the Seller Indemnifying Parties' obligations with respect to such Claimed Amount shall be deemed to be satisfied upon and to the extent of such reduction); and if the Unpaid Note Amount is insufficient or otherwise unavailable to satisfy the full Claimed Amount, then the Seller Indemnifying Parties shall, within ten (10) days following written demand by the Buyer Indemnified Party, pay the unsatisfied portion of the Claimed Amount to the Buyer Indemnified Party; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of the Buyer Indemnifying Parties, the Buyer Indemnifying Parties shall, within ten (10) days following written demand by the Seller Indemnified Party, pay the Claimed Amount to the Seller Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment of Agreed Amount</u>. If the Indemnifying Party delivers a Response Notice to the Indemnified Party during the Dispute Period agreeing that less than the full Claimed Amount is owed to the Indemnified Party, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the case of the Seller Indemnifying Parties, any Unpaid Note Amount payable by the Buyer shall be reduced (A) by the Agreed Amount or (B) to $0, if the Agreed Amount exceeds the Unpaid Note Amount (and the Seller Indemnifying Parties' obligations with respect to the Agreed Amount shall be deemed to be satisfied upon and to the extent of such reduction); and if the Unpaid Note Amount is insufficient or otherwise unavailable to satisfy the Agreed Amount, then the Seller Indemnifying Parties shall, within ten (10) days following written demand by the Buyer Indemnified Party, pay the unsatisfied portion of the Agreed Amount to the Buyer Indemnified Party; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of the Buyer Indemnifying Parties, the Buyer Indemnifying Parties shall, within ten (10) days following written demand by the Seller Indemnified Party, pay the unsatisfied portion of the Agreed Amount to the Seller Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Resolution Between the Parties</u>. If the Indemnifying Party delivers a Response Notice to the Indemnified Party during the Dispute Period indicating that there is a Contested Amount, the Indemnifying Party and the Indemnified Party shall attempt in good faith to resolve the dispute related to the Contested Amount. If the Indemnifying Party and Indemnified Party resolve such dispute, then their resolution of such dispute shall be binding on the Indemnifying Parties and such Indemnified Party and a settlement agreement stipulating the amount owed to the Indemnified Party (the "<u>Stipulated Amount</u>") shall be signed by the Indemnifying Party and Indemnified Party. The Stipulated Amount shall 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of the Seller Indemnifying Parties, any Unpaid Note Amount payable by the Buyer shall be reduced (A) by the Stipulated Amount or (B) to $0, if the Stipulated Amount exceeds the Unpaid Note Amount (and the Seller Indemnifying Parties' obligations with respect to the Stipulated Amount shall be deemed to be satisfied upon and to the extent of such reduction); and if the Unpaid Note Amount is insufficient or otherwise unavailable to satisfy the Stipulated Amount, then the Seller Indemnifying Parties shall, within ten (10) days following written demand by the Buyer Indemnified Party, pay the unsatisfied portion of the Stipulated Amount to the Buyer Indemnified Party; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of the Buyer Indemnifying Parties, the Buyer Indemnifying Parties shall, within ten (10) days following written demand by the Seller Indemnified Party, pay the unsatisfied portion of the Stipulated Amount to the Seller Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Dispute Resolution</u>. If the Indemnifying Party and the Indemnified Party are unable to resolve the dispute relating to any Contested Amount during the 20-day period commencing upon the delivery of the Response Notice to the Indemnified Party, then the Indemnified Party may commence a Legal Proceeding to resolve such dispute and enforce its rights with respect thereto in any court available therefor (such Legal Proceeding, a "<u>Litigated Dispute</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Payment of Final Amount</u>. Upon the resolution of a Litigated Dispute:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the case of the Seller Indemnifying Parties, any Unpaid Note Amount payable by the Buyer shall be reduced (A) by the amount awarded to the Buyer Indemnified Party (the "<u>Award Amount</u>") or (B) to $0, if the Award Amount exceeds the Unpaid Note Amount (and the Seller Indemnifying Parties' obligations with respect to the Award Amount shall be deemed to be satisfied upon and to the extent of such reduction); and if the Unpaid Note Amount is insufficient or otherwise unavailable to satisfy the Award Amount, then the Seller Indemnifying Parties shall, within ten (10) days following written demand by the Buyer Indemnified Party, pay the unsatisfied portion of the Award Amount to the Buyer Indemnified Party; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of the Buyer Indemnifying Parties, the Buyer Indemnifying Parties shall, within ten (10) days following written demand by the Seller Indemnified Party, pay the unsatisfied portion of the Award Amount to the Seller Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Priority of Offset</u>. In the case of any offset against and reduction of any Unpaid Note Amount above, such offsets shall: (i) first, be made against the principal and other amounts of the Senior Note (which shall reduce or eliminate, as applicable, the various payments then remaining under the Senior Note in the order in which such payments become due, such that the earliest remaining payment is reduced first, then the second-earliest remaining payment, and so on until the offset amount is fully-applied or the amount of the Senior Note is reduced to zero, as applicable), and then (ii) second, be made against the principal and other amounts of the Sub Note (which shall reduce or eliminate, as applicable, the various payments then remaining under the Sub Note in the order in which such payments become due, such that the earliest remaining payment is reduced first, then the second-earliest remaining payment, and so on until the offset amount is fully-applied or the amount of the Sub Note amount is reduced to zero, as applicable). If the amount of the Senior Note or Sub Note is so reduced, the Parties agree to evidence such reduction in such instrument(s) in a manner reasonably agreed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>No Contribution</u>. Each of the Indemnifying Parties waives, and acknowledges and agrees that he or it shall not have and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against any Indemnifying Party in connection with any indemnification obligation or any other Liability to which he or it may become subject under or in connection with this Agreement or any other agreement, document or instrument delivered to the Buyer in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Third Party Actions</u>. In the event any Legal Proceeding is instituted against an Indemnified Party that involves or appears reasonably likely to involve an Indemnification Claim hereunder (a "<u>Third Party Claim</u>"), the Indemnified Party will, promptly after receipt of notice of any such Legal Proceeding, notify the Indemnifying Party of the commencement thereof in accordance with <u>Section 8.5(a)</u>. The failure to so notify the Indemnifying Party of the commencement of any such Legal Proceeding will relieve the Indemnifying Parties from liability for indemnification pursuant to this Agreement in connection therewith only if and to the extent it is proven that such failure materially and adversely affects the defense of such Legal Proceeding. The Indemnified Party shall have the right, in its sole discretion, to control the defense or settlement of such Legal Proceeding; provided, however, that the Indemnifying Party and its counsel (at the sole expense of the Indemnifying Parties) may participate in (but not control the conduct of) the defense of such Legal Proceeding; and provided, further, that, except with the consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed), no settlement of any such Legal Proceeding with third party claimants shall be determinative of the amount or existence of Damages relating to such matter. In the event that the Indemnifying Party has consented to any such settlement, the Indemnifying Parties shall have no power or authority to object under any provision of this <u>Article VIII</u> to the amount of any such Indemnification Claim. If any Governmental Entity is entitled to take any collection action pending the outcome of such Third Party Claim, the Indemnifying Parties will pay such amounts to the relevant Governmental Entity as required pursuant to the applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Treatment of Indemnification Payments</u>. The Indemnifying Parties and the Indemnified Parties agree to treat (and cause their Affiliates to treat) any payments received by any Indemnified Party pursuant to <u>Section 8.2</u> and <u>Section 8.3</u> (including, in the case of the Seller Indemnifying Parties, by reduction of the Unpaid Note Amount) as adjustments to the Purchase Price for all Tax purposes, to the extent permitted by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <u>Damages Exclusions</u>. Notwithstanding anything to the contrary contained in this Agreement, except in the case of Fraud, under no circumstances will any Indemnifying Party be liable to any Indemnified Party for any exemplary or punitive damages, or for any consequential damages that are not reasonably foreseeable, in each case except to the extent such damages are awarded to a third party pursuant to a Third Party Claim or Legal Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <u>Exercise of Remedies Other Than By Parties</u>. No Indemnified Party (other than, in the case of the Buyer Indemnified Parties, the Buyer or any successor thereto or assign thereof, or in the case of the Seller Indemnified Parties, the Sellers or any successor thereto or assign thereof) shall be permitted to assert any Indemnification Claim or exercise any other remedy under this Agreement unless the Buyer (in the case of the Buyer Indemnified Parties) or the Sellers (in the case of the Seller Indemnified Parties) or any successor thereto or assign thereof shall have consented to the assertion of such Indemnification Claim or the exercise of such other remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 <u>Exclusive Remedy</u>. Except: (a) for equitable remedies, including the right to specific performance and injunctive relief as provided in <u>Section 12.14</u> and (b) for Claims against the Indemnifying Parties under applicable Law arising out of Fraud committed by any Indemnifying Party or of which any Indemnifying Party had actual knowledge; the Indemnified Parties' sole and exclusive remedy in the event of a breach of this Agreement or a claim regarding the Transactions shall be pursuant to this <u>Article VIII</u>.

**ARTICLE IX**

**CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE**

The obligation of Buyer under this Agreement with respect to the purchase and sale of the Transferred Assets shall be subject to the fulfillment on or prior to the Closing of each of the following conditions, any of which may be waived in writing by Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Accuracy of Representations and Warranties.</u> (a) Each of the representations and warranties of the Sellers set forth in this Agreement except for the Fundamental Representations shall be true and correct in all material respects (without giving effect to any limitation as to "<u>materiality</u>" or "<u>Material Adverse Effect</u>" set forth therein) on and as of the Closing Date as if made on and as of such date (except to the extent any such representation or warranty is expressly made as of an earlier date or time, in which case as of such earlier date or time), and (b) each of the Fundamental Representations shall be true and correct in all respects on and as of the Closing Date as if made on and as of such time (except to the extent any such representation is expressly made as of an earlier date or time, in which case as of such earlier date or time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Performance of this Agreement</u>. The Sellers shall have complied with or performed in all material respects all of the Sellers' covenants and agreements required by this Agreement and each other Transaction Document to be performed or complied with by them on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>No Material Adverse Effect</u>. Since the date of this Agreement, there shall have been no Material Adverse Effect or any event, change, or effect that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Officer's Certificate</u>. The Sellers shall have delivered to Buyer a certificate, duly executed by an executive officer of the Sellers on behalf of the Sellers, certifying that the conditions set forth in <u>Section 9.1, Section 9.2</u> and <u>Section 9.3</u> have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>No Injunctions, Orders or Restraints; Illegality</u>. No preliminary or permanent injunction or other order, decree or ruling issued, entered, enacted or enforced by a court or other Governmental Entity of competent jurisdiction nor any statute, rule, regulation or executive order promulgated or enacted by any Governmental Entity of competent jurisdiction shall be in effect which would have the effect of (a) making the consummation of the Transactions illegal or (b) otherwise prohibiting the consummation of the Transactions (each, a "<u>Governmental Prohibition</u>"). No Legal Proceeding shall be pending or threatened that seeks to prevent, make illegal, materially delay or alter the Closing or the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>IRS Forms</u>. Parent shall have delivered to Buyer a completed, valid and duly executed IRS Form W-9 for Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Certain Agreements</u>. The Parties shall have negotiated and agreed upon (a) a transition services agreement in form and substance mutually acceptable to the Parties (the "<u>Transition Services Agreement</u>"), and (b) a license agreement in form and substance mutually acceptable to the Parties (the "<u>License Agreement</u>"), and the applicable Sellers shall have delivered to Buyer a duly executed counterpart to the Transition Services Agreement and the License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Braintree Arrangements</u>. Braintree shall have approved, delivered and taken all necessary documents and actions in order to authorize and arrange for Buyer's bank account to receive all credit card and other electronic transfer payments with respect to the Business, such that as of Closing such payments will cease being paid to Sellers and will instead be paid to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Deliveries to Buyer</u>. At the Closing, Sellers shall deliver, or cause to be delivered, to Buyer each the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) the Transferred Assets, free and clear of any Liens other than Permitted Liens, and (ii) the Bill of Sale, Trademark Assignment Agreement and Assignment and Assumption Agreement required to be delivered pursuant to <u>Article III,</u> duly executed by Sellers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a certificate, dated as of the Closing Date and executed by the secretary or an assistant secretary (or similar officer) of each Seller, certifying as to and attaching (i) the resolutions approved by its Board of Directors or sole member, as applicable, authorizing the execution, delivery, and performance of this Agreement and its Transaction Documents and the consummation of the transactions contemplated by this Agreement and its Transaction Documents, and (ii) the names and signatures of the officers of each Seller authorized to execute this Agreement, its Transaction Documents, and the other documents to be delivered by it under this Agreement and its Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each Transaction Document to which Seller is contemplated to be a party, duly executed by such Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) documentation evidencing that all Liens applicable to the Transferred Assets other than Permitted Liens have been, or immediately upon the occurrence of the Closing shall be, released and terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a digital copy of the Data Room evidencing the documents that were made available, which shall indicate, for each document, the date that such document was first uploaded to the Data Room; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) evidence from the Secretary of State of the State of Delaware and the Secretary of State of the State of California, as applicable, dated no earlier than twenty (20) Business Days prior to the date of this Agreement, as to the legal existence and good standing of each Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>Frustration of Closing Conditions</u>. Buyer may not assert that a condition set forth in this <u>Article IX</u> is not satisfied if the failure of such condition to be satisfied was caused by Buyer's failure to use the standard of efforts required from Buyer to consummate the Transactions.

**ARTICLE X**

**CONDITIONS PRECEDENT TO SELLERS' OBLIGATION TO CLOSE**

The obligation of the Sellers under this Agreement with respect to the purchase and sale of the Transferred Assets shall be subject to the fulfillment on or prior to the Closing of each of the following conditions, any of which may be waived in writing by the Sellers (or by Parent on their behalf):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Accuracy of Representations and Warranties; Performance of this Agreement</u>. Each of the representations and warranties of Buyer set forth in this Agreement shall be true and correct in all material respects (without giving effect to any limitation as to "<u>materiality</u>" or "<u>Material Adverse Effect</u>" set forth therein) on and as of the Closing Date as if made on and as of such date (except to the extent any such representation or warranty is expressly made as of an earlier date or time, in which case as of such earlier date or time), except where the failure of any such representation or warranty to be true and correct in all material respects would not reasonably be expected to, individually or in the aggregate, prevent or materially delay or impair the consummation of the Transactions or the ability of Buyer to fully perform its covenants and obligations pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Performance of this Agreement</u>. Buyer shall have complied with or performed in all material respects all of Buyer's covenants and agreements required by this Agreement and each other Transaction Document to be performed or complied with by it on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Officer's Certificate</u>. Buyer shall have delivered to Parent a certificate, duly executed by an executive officer of Buyer, certifying that the conditions set forth in <u>Section 10.1</u> and <u>Section 10.2</u> have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>No Injunctions, Orders or Restraints; Illegality</u>. No preliminary or permanent injunction or other order, decree or ruling issued, entered, enacted or enforced by a court or other Governmental Entity of competent jurisdiction nor any statute, rule, regulation or executive order promulgated or enacted by any Governmental Entity of competent jurisdiction shall be in effect which would have the effect of a Governmental Prohibition. No Legal Proceeding shall be pending or threatened that seeks to prevent, make illegal, materially delay or alter the Closing or the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Certain Agreements</u>. The Parties shall have negotiated and agreed upon (a) the Transition Services Agreement, and (b) the License Agreement, and Buyer shall have delivered to Parent a duly executed counterpart to the Transition Services Agreement and the License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Deliveries to Parent</u>. At the Closing, Buyer shall deliver, or cause to be delivered, to Parent each the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Bill of Sale, Trademark Assignment Agreement and Assignment and Assumption Agreement required to be delivered pursuant to <u>Article III,</u> duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a certificate, dated as of the Closing Date and executed by the secretary or an assistant secretary (or similar officer) of each of Buyer and Holdco, certifying as to and attaching (i) the resolutions approved by its respective Board of Managers authorizing the execution, delivery, and performance of this Agreement and the Transaction Documents and the consummation of the transactions contemplated by this Agreement and the Transaction Documents, and (ii) the names and signatures of the officers of Buyer or Holdco, as applicable, authorized to execute this Agreement, the Transaction Documents, and the other documents to be delivered by Buyer and Holdco under this Agreement and the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each Transaction Document to which Buyer is contemplated to be a party, duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) evidence from the Secretary of State of the State of Delaware, dated no earlier than twenty (20) Business Days prior to the date of this Agreement, as to the legal existence and good standing of Buyer and Holdco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Frustration of Closing Conditions</u>. No Seller may assert that a condition set forth in this <u>Article X</u> is not satisfied if the failure of such condition to be satisfied was caused by a Seller's failure to use the standard of efforts required from them to consummate the Transactions.

**ARTICLE XI**

**TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Termination</u>. This Agreement may be terminated and the transactions contemplated herein may be abandoned at any time prior to the Closing:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by Buyer, if the Sellers are in breach of any representation, warranty, covenant or agreement on the part of the Sellers set forth in this Agreement such that the conditions set forth in <u>Article IX</u> would not be satisfied, and such breach is not cured at the sole cost, expense and Liability of Sellers, or is incapable of being cured, by the thirtieth (30th) Business Day after receipt of written notice by Buyer to Parent of such breach; provided, that Buyer is not then in material breach of this Agreement so as to cause any of the conditions set forth in <u>Article X</u> not to be satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by Parent, if Buyer is in breach of any representation, warranty, covenant or agreement on the part of Buyer set forth in this Agreement such that the conditions set forth in <u>Article X</u> would not be satisfied, and such breach is not cured at the sole cost, expense and Liability of Buyer, or is incapable of being cured, by the thirtieth (30th) Business Day after receipt of written notice by Parent to Buyer of such breach; provided, that the Sellers are not then in material breach of this Agreement so as to cause any of the conditions set forth in <u>Article IX</u> not to be satisfied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by Parent or Buyer if the Closing shall not have occurred on or before July 10, 2023 (the "<u>Outside Date</u>"); provided, however, that the right to terminate this Agreement pursuant to this <u>Section 11.1(d)</u> shall not be available to any Party whose action or failure to fulfill any obligation under this Agreement has been a principal cause of, or resulted in, the failure of the Parties to consummate the Closing by the Outside Date (or in the case of termination by Parent, where the action or failure of a Seller to fulfill any obligation under this Agreement has been a principal cause of, or resulted in, the failure of the Parties to consummate the Closing by the Outside Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Effect of Termination</u>. In the event of termination of this Agreement as provided in <u>Section 11.1,</u> this Agreement shall forthwith become void and there shall be no liability on the part of any Party except that (a) this <u>Section 11.2</u> and <u>Section 12.2</u> shall survive any such termination, and (b) nothing herein shall relieve any Party from liability for any Willful and material breach of this Agreement occurring prior to such termination that is uncured at the time of such termination. For the purposes of this <u>Section 11.2,</u> "<u>Willful</u>" means that the breaching Party took an action or failed to take an action and knew, or reasonably should have known, that the undertaking of such action or the failure to take an action would, or would reasonably be expected, to cause a breach of this Agreement by such breaching Party.

**ARTICLE XII**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>Notices</u>. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly delivered and received hereunder (a) one Business Day after being sent for next business day delivery, fees prepaid, via a reputable international overnight courier service, (b) upon delivery in the case of delivery by hand, or (c) if sent by email transmission, upon transmission (provided that no "bounce back" or similar message of non-delivery is received with respect thereto); provided that in each case the notice or other communication is sent to the physical address or email address set forth beneath the name of such Party below (or to such other physical address or email address as such Party shall have specified in a written notice given to the other Parties):

If to a Seller:

c/o AMASS Brands Inc.

927 Santa Fe Avenue

Los Angeles, CA 90021

Attn: Mark T. Lynn, Chief Executive Officer

Email: <u>mark@amass.com</u>

with a copy to (which shall not constitute notice):

Cooley LLP

110 N. Wacker Drive, Suite 4200

Chicago, IL 60606-1511

Attention: Erin Kirchner

Email: ekirchner@cooley.com

If to Buyer:

c/o Louis Amoroso

[\*\*\*]

Email: louis@drinks.com

with a copy to (which shall not constitute

notice):

Barnes & Thornburg LLP

One North Wacker Drive, Suite 4400

Chicago, IL 60606

Attention: Mark Kindelin

Email: Mark.Kindelin@btlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>Expenses</u>. Except for the Transfer Taxes, if applicable, each Party shall bear its own expenses and costs, including the fees and expenses of any attorney retained by it, incurred in connection with the preparation of this Agreement and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <u>Governing Law; Forum Selection</u>. This Agreement and all disputes arising out of or relating hereto shall be governed by and construed in accordance with the Laws of the State of Delaware applicable to contracts made and performed entirely with the State of Delaware, without giving effect to any Laws or principles of conflicts of laws that would cause the Laws of any other jurisdiction to apply. Each Party hereby (a) submits to the exclusive jurisdiction of any state or federal court sitting in the State of Delaware (the "<u>Chosen Courts</u>") in any Legal Proceeding arising out of or relating to this Agreement, (b) agrees that all Claims in respect of such Legal Proceeding may be heard and determined only in any such Chosen Court, (c) waives any Claim of inconvenient forum or other challenge to venue in such Chosen Court, and (d) agrees not to bring or maintain any Legal Proceeding arising out of or relating to this Agreement before any Governmental Entity other than the Chosen Courts. The Sellers and Buyer each irrevocably consents to service of process out of the aforementioned courts and waives any objection which it may now or hereafter have to the laying of venue of any action or proceeding arising out of or in connection with this Agreement brought in the aforementioned courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY PROCEEDING IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF, WHETHER PURPORTING TO BE AT LAW OR IN EQUITY, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 <u>Assignment</u>. This Agreement binds and benefits the Parties and their respective successors and assignees. No Party hereto shall have the right to freely assign any of its rights or delegate performance of any of its obligations under this Agreement, without the prior written consent of the other Parties, except that Buyer may assign any of its rights, delegate the right to receive any Transferred Assets, and delegate performance of any of its obligations under this Agreement (i) to any Affiliate of Buyer, or (ii) in connection with a business combination transaction, provided that no such assignment or delegation will relieve Buyer from any of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 <u>Successors and Assigns</u>. Subject to <u>Section 12.5,</u> all agreements made and entered into in connection with this Transaction shall be binding upon and inure to the benefit of the Parties hereto, their successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7 <u>Amendments; Waivers</u>. No alteration, modification or change of this Agreement shall be valid except by an agreement in writing executed by the Parties hereto. Except as otherwise expressly set forth herein, no failure or delay by any Party hereto in exercising any right, power or privilege hereunder (and no course of dealing between or among any of the Parties) shall operate as a waiver of any such right, power or privilege. No waiver of any default on any one occasion shall constitute a waiver of any subsequent or other default. No single or partial exercise of any such right, power or privilege shall preclude the further or full exercise thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8 <u>Entire Agreement</u>. This Agreement (including the Exhibits and Disclosure Schedules which are hereby incorporated by reference into and made a part of this Agreement for all purposes) merges all previous negotiations and agreements between the Parties hereto, either verbal or written, and constitutes the entire agreement and understanding between the Parties with respect to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which when so executed shall be an original, but all of which together shall constitute one agreement. Facsimile or PDF signatures shall be deemed original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10 <u>Severability</u>. If any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law, but only as long as the continued validity, legality and enforceability of such provision or application does not materially (a) alter the terms of this Agreement, (b) diminish the benefits of this Agreement or (c) increase the burdens of this Agreement, for any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11 <u>Section Headings</u>. The section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12 <u>Interpretation</u>. As each Party has participated in the drafting of this Agreement, any ambiguity shall not be construed against any Party as the drafter. Unless the context of this Agreement clearly requires otherwise, (a) "or" has the inclusive meaning frequently identified with the phrase "<u>and/or,</u>" (b) "<u>including</u>" has the inclusive meaning frequently identified with the phrase <u>"including, but not limited</u> to", and (c) references to "<u>hereof,</u>" "<u>hereunder</u>" or "<u>herein</u>" or words of similar import relate to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13 <u>Third Parties</u>. Nothing herein, expressed or implied, is intended to or shall confer on any Person other than the Parties hereto any rights, remedies, obligations or Liabilities under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14 <u>Specific Performance</u>. Buyer and the Sellers agree that irreparable damage would occur and that the Parties hereto would not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement without proof of actual damages or otherwise (and, to the fullest extent permitted by Law, each Party hereby waives any requirement for the securing or posting of any bond in connection with such remedy), this being in addition to any other remedy to which they are entitled at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15 <u>Definitions</u>. For purposes of this Agreement, the term:

"<u>Affiliate</u>" means, as to any Person, any other Person that, directly or indirectly, controls, or is controlled by, or is under common control with, such Person. As used in this definition, "<u>control</u>" (including, with its correlative meanings, "<u>controlled by</u>" and "<u>under common control with</u>") means the possession, directly or indirectly, of the powers to direct or cause the direction of management or policies of a Person, through the ownership of securities or partnership or other ownership interests, by contract or otherwise.

"<u>Alcohol Laws</u>" means all Laws and regulations, both foreign and domestic, as applicable related to the taxation, manufacture, import, purchase, distribution, bottling, packaging, labeling, marketing and sale of alcohol or alcoholic beverages, including by the Alcohol and Tobacco Tax and Trade Bureau, United States Department of Treasury and individual country, state, county, city and other jurisdictional alcohol regulatory bodies and taxing authorities.

"<u>Braintree</u>" means Braintree, a division of PayPal, Inc.

"<u>Business Confidential Information</u>" shall mean any materials and information that is confidential (whether or not specifically labeled or identified as "confidential"), or a trade secret, in any form or medium, that is included in the Transferred Assets,; provided, however, that Business Confidential Information shall not include any information that (i) Buyer at such time actually knows is also confidential information of, or a trade secret of, the Sellers' Retained Business as it exists as of the Closing (in which case that information shall be deemed Shared Business Confidential Information); (ii) is in the public domain or becomes generally known in the public domain through no wrongful act on the part of the Sellers or their respective Affiliates, (iii) is Shared Customer Data or Licensed Marketing Materials, (iv) is made available to the Sellers by a third party on a non-confidential basis provided that such third party is not bound by a confidentiality agreement, or other obligation of secrecy to, with respect to such information, or (v) which is independently developed by Sellers or their Affiliates after the Closing without the use of the Business Confidential Information or the Shared Business Confidential Information and not in violation of this Agreement.

"<u>Business Day</u>" means any day on which banks are not required or authorized to close in the City of San Francisco, California.

"<u>Business Employees</u>" means the individuals set forth on <u>Schedule 7.7</u>.

"<u>BWSC</u>" means BWSC, LLC, a Delaware limited liability company.

"<u>Claim</u>" means and includes all past, present and future disputes, claims, controversies, demands, rights, obligations, Liabilities, credits, rights of set off, actions and causes of action of every kind and nature, including without limitation: (i) any unknown, inchoate, unsuspected or undisclosed claim; and (ii) any claim, right or cause of action based upon any breach of any express, implied, oral or written Contract.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Competing Transaction</u>" means any of the following (other than the transactions contemplated by this Agreement or otherwise with Buyer or any of its Affiliates): (i) any merger, consolidation, share exchange, business combination, recapitalization or other similar transaction, directly or indirectly, involving the Business or any portion thereof, or (ii) any sale, lease, exchange, dividend, mortgage, pledge, license, transfer or other disposition, directly or indirectly, of (A) the Business or (B) any of the Transferred Assets (in a single transaction or a series of related transactions).

"<u>Contract</u>" means any binding agreement, contract, note, mortgage, bond, indenture, lease, benefit plan or other instrument whether written or oral.

"<u>Customer Data</u>" means, other than Transferred User Data, (i) any Personal Data or other data or information regarding any current, historical or prospective customers or clients, in each case to the extent that it was generated or acquired by or for the Business at any time (including prior to purchase by the Sellers) or that reflects or includes all or any portion of the current, historical or prospective customers or clients of the Business, and (ii) all copies, lists, databases and compilations of such information, or any portion thereof (in each case in any form, electronic or otherwise) in the possession or control of the Sellers or their Affiliates.

"<u>Damages</u>" means the amount of: (i) any damage (including diminution in value), loss, Liability, Claim, deficiency, Tax, judgment, fine, penalty, cost or other expense (including reasonable attorneys', consultants' and experts' fees and expenses) directly or indirectly paid, sustained or incurred by the Buyer Indemnified Parties (or any of them); (b) any and all reasonable fees and costs of enforcing the Buyer Indemnified Parties' rights under this Agreement; and (c) any and all reasonable fees and costs of defending any Third Party Claims with respect to which Seller has an obligation to indemnify, compensate or reimburse any Buyer Indemnified Parties pursuant to <u>Article VIII</u>.

"<u>Data Room</u>" means the online data room hosted on behalf of the Sellers by Intralinks in connection with the Transactions.

"<u>EBITDA</u>" means, for any applicable period, the sum of the Business's (i) net income or loss for such period (excluding any extraordinary gains and losses), <u>plus</u> (ii) all interest expense for such period, <u>plus</u> (iii) all income tax expenses deducted in arriving at such net income or loss calculation, <u>plus</u> (iv) all non-cash charges or expenses, plus depreciation expenses for such period, <u>plus</u> (v) amortization expenses for such period.

"<u>Employee Plan</u>" means (i) any employee benefit plan (within the meaning of <u>Section 3(3)</u> of ERISA), (ii) any retirement, welfare benefit, bonus, incentive, supplemental retirement, deferred compensation, retiree welfare, life insurance, performance award, severance, Code Section 125 flexible benefit or vacation or other paid time-off plan, program or agreement and (iii) any individual employment, retention, termination, change of control, stock option, stock purchase, restricted stock, restricted stock unit, phantom stock, stock appreciation right, severance or other similar Contract or agreement, in each case, pursuant to which the Sellers or their Affiliates are a party or with respect to the Sellers or their Affiliates have any obligation or Liability or which are maintained, contributed to or sponsored by any Seller or any Affiliate with respect to, or for the benefit of any employee or beneficiary thereof.

"<u>ERISA</u>" means the federal Employee Retirement Income Security Act of 1977, as amended.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended.

"<u>Excluded Taxes</u>" means any (i) Taxes of the Sellers (or any member, stockholder or Affiliate of the Sellers), or for which the Sellers (or any member, stockholder or Affiliate of the Sellers) may be liable, for any taxable period; (ii) to the extent not included in the preceding clause (i), Taxes related to any Excluded Asset or any Liability that is not an Assumed Liability, in each case, for any taxable period; (iii) Taxes relating to the Business, the Transferred Employees, the Transferred Assets or the Assumed Liabilities for any Pre-Closing Tax Period (for the avoidance of doubt, excluding any Taxes of Holdco or Buyer associated with the assumption of the Assumed Liabilities); (iv) Tax of another Person that the Sellers are liable for (including under Treasury Regulation <u>Section 1.1502-6</u> or any similar provision of state, local or non-U.S. Law) as a result of being a member of an affiliated, consolidated, combined or unitary group on or before the Closing Date (including under <u>Section 1.1502-6</u> of the Treasury Regulations or any similar provision of state, local, or non-U.S. Law) or as a transferee or successor, by Contract or by operation of Law, and (v) Taxes imposed on Buyer as a result of the application of or any failure to comply with any bulk sales Laws and other similar Laws in any applicable jurisdiction in respect of the Transaction, but excluding the portion of Transfer Taxes payable by Buyer under <u>Section 7.6(a)</u> above.

"<u>Finished Goods Inventory</u>" means the portion of the Inventory consisting of finished case goods of wine.

"<u>Fraud</u>" means actual common law fraud under the Laws of the State of Delaware solely in connection with the making of the representations and warranties set forth in this Agreement.

"<u>Fundamental Representations</u>" means the representations and warranties in <u>Section 6.1</u>, <u>Section 6.2, Section 6.3(a), Section 6.3(b), Section 6.12(d), Section 6.17</u> and <u>Section 6.21</u> of this Agreement.

"<u>Gift Card Excess</u>" means the amount, but in no event less than $0, by which the aggregate amount of Gift Card Obligations included in the Assumed Liabilities exceeds $3,873,978.

"<u>Gift Card Obligations</u>" means, as of any date, the aggregate amount Gift Cards outstanding as of such date that remain redeemable from and/or in connection with the Business on such date; <u>provided</u>, that, for the avoidance of doubt, such "Gift Card Obligations" shall not include any amounts that are required to have been paid to a Governmental Entity as of the Closing Date under escheatment or similar Laws pertaining to abandoned property.

"<u>Gift Cards</u>" means any and all certificates (including gift, credit, and discount certificates), cards (including pre-paid cards and gift cards), coupons, vouchers, credits (including restaurant, store, and merchant credits) representing or entitling (or purporting to entitle) the holder or recipient thereof to any discount or value (whether cash or credit or otherwise), including any discount, credit, or the like for goods or services (including food or beverages), in any form whatsoever, including paper, card, or other physical form, log-entry, electronic or virtual, or otherwise, and including any similar or related card, credit, certificate, coupon, voucher, or other value, right, or benefit.

"<u>Governmental Entity</u>" means any supranational, national, state, provincial, municipal, local or foreign government or any instrumentality, subdivision, court, administrative agency or commission or other authority thereof.

"<u>Hazardous Substance</u>" means (i) any petroleum or petroleum product, flammable explosive, radioactive material, medical waste, radon, asbestos or asbestos-containing material or polychlorinated biphenyls (PCBs); and (ii) any element, compound, substance, waste or other material that is regulated under any Environmental Law or is defined as, or included in the definition of, or deemed by or pursuant to any Environmental Law or by any Governmental Entity to be "<u>hazardous,</u>" "<u>toxic,</u>" a "<u>contaminant,</u>" "<u>waste,</u>" a "<u>pollutant,</u>" "<u>hazardous substance,</u>" "<u>hazardous waste,</u>" "<u>restricted hazardous waste,</u>" "<u>hazardous material,</u>" "<u>extremely hazardous waste,</u>" a "<u>toxic substance,</u>" a "<u>toxic pollutant</u>" or words with similar meaning, including any element, compound, substance, waste or other material that is regulated under the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, and other similar federal, state or local environmental conservation and protection Laws, each as amended.

"<u>Indebtedness</u>" means, with respect to a Person, all Liabilities and other obligations of such Person (i) for borrowed money, loans or advances; (ii) to repay any amounts owed as evidenced by notes, debentures, bonds or other similar instruments reflecting indebtedness; (iii) under any conditional sale, title retention or similar arrangement, or with respect to any deferred purchase price of any of the Transferred Assets or services (but excluding trade accounts payable); (iv) to reimburse any obligor on any letter of credit or similar credit transaction securing obligations of any Person; (v) under any leases that have been or should be, in accordance with GAAP, recorded as capital leases, (vi) constituting a guarantee of any Liabilities or obligations of any other Persons, including any residual value guarantees or other customer guarantees (including trade-in options); and (vii) any unpaid principal, premium, accrued and unpaid interest, related expenses, prepayment penalties, commitments and other fees, indemnities and all other amounts payable in connection with any of the forgoing; in each case, without duplication.

"<u>Intellectual Property Rights</u>" means all intellectual property and industrial property rights, and all rights, interests and protections that are associated with, similar to, or required for the exercise of, any of the foregoing, however arising, pursuant to the Laws of any jurisdiction throughout the world, whether domestic and foreign, federal, state or provincial, and whether registered or unregistered, including any and all rights in and to: (i) patents and patent applications, and all patents issuing thereon, including without limitation utility, model, industrial design and design patents and certificates of invention, together with all reissue patents, patents of addition, divisionals, provisional applications, renewals, continuations, continuations-in-part, substitutions, additions, extensions, confirmations, re-examinations, and all foreign counterparts of the forgoing, as well as any applications claiming priority to any of the foregoing, and all inventions and improvements disclosed therein (collectively, "<u>Patents</u>"); (ii) trademarks, service marks, trade dress, trade names, brand names, designs, logos, commercial symbols, corporate names, design rights and other similar designations of source, sponsorship, association or origin, and all registrations, applications, and goodwill associated therewith (collectively, "<u>Trademarks</u>"); (iii) copyrights and all works of authorship or expression, whether or not registered or copyrightable, including copyrights, author, performer, moral and neighboring rights, and all applications, registrations, and renewals in connection therewith (collectively, "<u>Copyrights</u>"); (iv) domain names and registrations for any of the foregoing; (v) rights in trade secrets; (vii) all other intellectual property and proprietary rights in any form or medium known or later devised, including other proprietary rights in Technology; (viii) all rights of priority and protection of interests therein, and rights to sue for, collect and recover damages, profits, restitution and any other remedy in connection with any past, present and future infringement, misappropriation, dilution, misuse, breach, default or other violation associated with any of the foregoing, and (ix) the right to register, prosecute, maintain or record any of the foregoing.

"<u>Inventory Shortfall</u>" means the amount, but in no event less than $0, by which the Inventory Value is less than $5,000,000.

"<u>Inventory Value</u>" means the aggregate value of: (i) the Inventory included in the Transferred Assets as of the Closing; <u>plus</u> (ii) the Inventory sold by the Business through the Transferred Platform in the Ordinary Course of Business during the period from 12:01 am local time on June 1, 2023 through the Closing, but only to the extent the sale proceeds from such sold Inventory are included as revenue in the calculation of the Pre-Closing Earnings. For such valuation purposes, each item of Inventory shall be valued at the lower of cost or market value after accounting for inventory reserve, in each case as determined in accordance with GAAP (and based on specific identification of the cost by item (as opposed to FIFO, LIFO or weighted average methodology)).

"<u>IP Licenses</u>" means all Contracts pursuant to which the Sellers have (i) acquired or received a license or other rights in (including usage rights) or to any Intellectual Property Rights of a third-party that is used in the Business as of the Closing; or (ii) licensed, granted or transferred the right to use any Transferred IPR to any Person.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>Knowledge</u>" means, with respect to the Sellers, the actual knowledge of Erin Green, Andrew Kim, Krishna Shivdasani and Mark Lynn (the "<u>Knowledge Persons</u>") or the knowledge that any Knowledge Person reasonably should know or reasonably could be expected to have discovered after making reasonable inquiry of their reports with operational responsibility for the particular matter in question.

"<u>Law</u>" means any federal, state, provincial, territorial, local, municipal, foreign or other law, statute, legislation, constitution, principle of common law, resolution, edict, decree, proclamation, treaty, convention, ordinance, rule, regulation, ruling, directive, pronouncement, requirement, specification, determination, decision, opinion or interpretation issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the authority of any Governmental Entity (including those laws relating to record keeping, customs, export and sanctions compliance, foreign assets control, foreign corrupt practices, possession and handling of classified information, data privacy and security, or zoning).

"<u>Lease</u>" means all leases of real property or personal property.

"<u>Legal Proceeding</u>" means any private or governmental action, arbitration, audit, Claim, charge, cause of action, complaint, controversy, demand, hearing, investigation, litigation, suit or other proceeding (whether civil, criminal, administrative, investigative or informal, and whether at law or in equity) commenced, brought, conducted or heard by or before, or otherwise involving, any court, tribunal or other Governmental Entity or arbitrator.

"<u>Liability</u>" means any liability, debt, responsibility, guarantee, claim, demand, expense, commitment, duty or obligation (whether known or unknown, direct or indirect, absolute or contingent or conditional, accrued or unaccrued, matured or unmatured, liquidated or unliquidated, asserted or unasserted, or due or to become due, and including those that are implied, vicarious, inchoate, derivative, joint, several or secondary) of every kind and description, including all costs and expenses related thereto, in each case regardless of whether such matter would be required to be disclosed on a balance sheet prepared in accordance with GAAP and regardless of whether such matter is immediately due and payable.

"<u>Lien</u>" means any mortgage, lien, claim, pledge, charge, security interest or encumbrance of any kind.

"<u>LLC Agreement</u>" means that certain Amended and Restated Limited Liability Company Agreement of Holdco dated as of the Closing Date.

"<u>Material Adverse Effect</u>" means any event, circumstance, change in or effect on the Business that is, or would reasonably be expected to have a material adverse effect on the Transferred Assets or the Business, in each case taken as a whole; provided, however, that none of the following events, effects, occurrences, developments, state of circumstances, changes, facts or conditions shall be deemed, either alone or in combination, to constitute a Material Adverse Effect, or to be taken into account in determining whether there has or will be a Material Adverse Effect: (a) changes or effects in business, economic, social, political, Tax, regulatory or legal conditions or financial markets generally or within the United States; (b) changes in GAAP, (c) changes or effects that arise out of or are attributable to the commencement, occurrence, continuation or intensification or reduction or cessation of any war (whether or not declared), sabotage, armed hostilities or acts of terrorism, (d) earthquakes, hurricanes or other natural disasters, (e) any epidemics, pandemics, disease outbreaks, or other public health emergencies, including the COVID-19 pandemic, (f) changes or effects that relate to any failure by the Sellers to meet internal projections or forecasts for any period (including with respect to the Transferred Assets or the Business), (g) changes or effects that arise out of or are attributable to the negotiation, execution, public announcement or performance of this Agreement, (h) changes in applicable Laws after the date hereof, or (i) any actions taken by the Sellers as expressly required by this Agreement or with Buyer's consent; provided, that with respect to clauses (a) and (b), such changes may be taken into account only to the extent they have a disproportionate impact on the Business and the Sellers relative to other companies operating in the same industry; provided, further, that with respect to clause (f), the underlying cause for any such failure or change may be taken into account in determining whether there has or will be Material Adverse Effect to the extent not otherwise excluded by another clause of the first proviso of this section.

"<u>Open Source Software</u>" means any software that is distributed as "<u>free software</u>" or "<u>open source software</u>" (as such terms are commonly understood in the software industry), including software code or other materials that are licensed under any of the following open source licenses or licenses similar to the following: (i) GNU's General Public License (GPL), Lesser/Library GPL (LGPL), Affero General Public License (AGPL); (ii) the Artistic License (e.g., PERL); (iii) the Mozilla Public License; (iv) the Netscape Public License; (v) the Sun Community Source License (SCSL); (vi) the Sun Industry Standards License (SISL); (vii) the BSD License; (viii) the Apache License; (ix) Creative Commons License; (ix) the Python License, Common Development and Distribution License, Microsoft Public License, Common Public License, ISC License, Ruby License, MIT License, PostgreSQL License or Eclipse License; or (x) any other licenses identified by the Open Source Initiative as <u>"open source licenses</u>" (such licenses or agreements are collectively, "<u>Open Source Licenses</u>").

"<u>Ordinary Course of Business</u>" means the ordinary and usual course of normal day-to-day operations of the Sellers' Business, as conducted by the Sellers consistent with past custom and practice (including with respect to quantity and frequency) after the BR Purchase and prior to the date hereof; provided, that in no event shall "<u>Ordinary Course of Business</u>" include any breach of Law or Contract, or violation of any Permit.

"<u>Other IP</u>" means Intellectual Property Rights other than Patents and Trademarks.

"<u>Permit</u>" means any license, permit, franchise, approval, authorization, registration, certification, accreditation and consent of any Governmental Entity.

"<u>Permitted Liens</u>" means: (i) statutory Liens for Taxes and other governmental charges and assessments which are not yet delinquent and for which adequate reserves have been established in Seller's financial statements; (ii) rights reserved to any Governmental Entity to regulate the affected asset, none of which, individually or in the aggregate, adversely detract from the value of any of the Transferred Assets or interfere with the right or ability to own, use, dispose of or operate any of the Transferred Assets; (iii) mechanics, materialmen's and similar Liens arising or incurred in the Ordinary Course of Business with respect to any amounts that are not yet due and payable and which are not individually or in the aggregate material to the Business or the Transferred Assets, (iv) to the extent terminated at or prior to the Closing, Liens securing payment, or any other obligations, of the Business with respect to Indebtedness, (v) Liens arising under works' compensation, unemployment insurance, social security, retirement or similar Laws, and (vi) Liens described in <u>Schedule 1.1(a)</u>.

"<u>Person</u>" means an individual, a corporation, a partnership, a limited liability company, an association, a trust or any other entity or organization, including a Governmental Entity.

"<u>Personal Data</u>" means any information Processed by or on behalf of a Seller or its Affiliate in connection with the Business (a) defined as "<u>personal data,</u>" "<u>personally identifiable information,</u>" "<u>personal information,</u>" "PII" or similar term or concept in any applicable Law.

"<u>Pre-Closing Earnings Amount</u>" means the greater of $0 or the amount of the Pre-Closing Earnings.

"<u>Pre-Closing Earnings</u>" means, for the period from 12:01 am local time on June 1, 2023 through the Closing, (i) the EBITDA of the Business (as operated by the Sellers and their Affiliates), <u>plus</u> (ii) any expenses and costs, including the fees and expenses of any attorney, incurred by the Business in connection with (A) the preparation of this Agreement and the consummation of the transactions contemplated hereby, or (B) the BR Purchase and the preparation of the related documentation and the consummation of the transactions contemplated by the BR Purchase. For the avoidance of doubt, such EBITDA shall be calculated solely based on the operations of the Business being sold to Buyer, and shall not include any inputs related to the Retained Business (including any expenses, costs. losses or amounts that are Excluded Liabilities, or that would be so if they existed at Closing). Finally, when calculating such EBITDA, the cost of any Inventory sold shall be deemed to be $0. Notwithstanding anything to the contrary in this Agreement, the calculations of Pre-Closing Earnings and EBITDA of the Business are qualified by the fact that the Business has not operated as a separate "stand alone" entity within the Sellers; in certain operational areas, the Business is dependent upon centralized functional activities of the Sellers, the costs of which have not been historically allocated to the Business. As a result, the Business has been allocated certain internal charges and credits (including overhead expenses and cost of goods sold for the Seller Products) for purposes of the preparation of the calculations of Pre-Closing Earnings and EBITDA of the Business. Such allocations of charges and credits (including overhead expenses and cost of goods sold for the Seller Products) have been made in good faith with the intent of accurately presenting to the extent practicable the calculations of Pre-Closing Earnings and EBITDA of the Business, but may not necessarily reflect the amounts that would have resulted from arms-length transactions or the actual costs that would be incurred if the Business were operated as an independent enterprise.

"<u>Pre-Closing Tax Period</u>" means any taxable period that ends on or before the Closing Date, and the portion of any Straddle Period that ends on the Closing Date.

"<u>Processed</u>" or "<u>Processing</u>" means, with respect to Personal Data, any operation or set of operations performed on such Personal Data, whether or not by automated means, such as the use, collection, processing, storage, recording, organization, adaption, alteration, transfer, retrieval, consultation, disclosure, dissemination, deletion, erasure, destruction or combination of such Personal Data.

"<u>Release</u>" and "<u>Removal</u>" as used herein shall have the same meaning and definition as set forth in paragraphs (22) and (23), respectively, of Title 42 U.S.C. Section 9601 and any applicable Environmental Law.

"<u>Representatives</u>" means any director, officer, employee, manager, agent, accountant, consultant, legal counsel, advisor or other representative of a Party.

"<u>Retained Business</u>" means any business now, previously or hereafter conducted by the Sellers or their respective Affiliates other than the Business.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended.

"<u>Shared Business Confidential Information</u>" means all material and information that is confidential (whether or not specifically labeled or identified as "confidential"), or a trade secret, in any form or medium, to the extent licensed under the License Agreement or disclosed to Buyer by Sellers in connection with the transactions contemplated hereunder, including the Shared Customer Data, but excluding the Business Confidential Information. Notwithstanding the foregoing, "Shared Business Confidential Information" does not include information that (i) was or has become generally available to the public other than as a result of disclosure by Buyer after the date hereof in breach of this Agreement, (ii) is made available to the Sellers by a third party on a non-confidential basis provided that such third party is not bound by a confidentiality agreement, or other obligation of secrecy to, with respect to such information, (iii) is independently developed by Buyer after the Closing without the use of the Shared Business Confidential Information and not in violation of this Agreement, or (iv) is Transferred Customer Data or Transferred User Data.

"<u>Shared Customer Data</u>" means the list of email addresses included in <u>Schedule 1.1(a)(xii)</u>.

"<u>Straddle Period</u>" means any taxable period that begins on or before and ends after the Closing Date.

"<u>Subscription Excess</u>" means the amount, but in no event less than $0, by which the aggregate amount of Subscription Obligations included in the Assumed Liabilities exceeds $20,207,609.

"<u>Subscription Obligations</u>" means obligations in respect of customer credits redeemable for products of the Business arising out of monthly fees paid by participants in the Business' direct to consumer programs.

"<u>Subsidiary</u>" of any Person means any corporation or other form of legal entity an amount of the outstanding voting securities of which sufficient to elect at least a majority of its board of directors or other governing body (or, if there are not such voting securities, 50% or more of the equity interests of which) is owned or controlled, directly or indirectly, by such Person.

"<u>Tax</u>" means (i) all federal, state, local, foreign or other taxes of any kind whatsoever and any similar fees, assessments or charges (together with any and all interest, penalties and additions to tax imposed with respect thereto) imposed by any tax authority, including taxes or other charges on or with respect to income, franchises, windfall or other profits, gross receipts, severance, excise, withholding, ad valorem, value added, property, sales, use, capital stock, payroll, employment, social security, workers' compensation, unemployment compensation, unclaimed property, escheatment or net worth, and taxes or other charges in the nature of a tax; and (ii) any Liability for the payment of amounts described in clause (i) as a result of being a successor, a transferee or a member of an affiliated, consolidated, combined or unitary group, or as a result of any obligation under any Tax sharing, indemnity or similar agreement or other Contract or arrangement.

"<u>Tax Return</u>" means any return, declaration, report, estimate, claim for refund, or information return or statement or other document relating to, or required to be filed in connection with, any Taxes, including any schedule, form, attachment thereto or amendment thereof.

"<u>Technology</u>" means algorithms, application programming interfaces, apparatus, devices, diagrams, inventions (whether or not patentable), methods, network configurations and architectures, processes, proprietary information, protocols, schematics, specifications, computer software, including without limitation, computer programs, operating systems, applications, product development software, code, work product, firmware, tools, graphics, schematics, interfaces, architecture, file formats, routines, algorithms, and any and all specifications and documentation (including training and user manuals) related thereto, subroutines, techniques, user interfaces, web sites, social media pages or accounts, mobile applications, confidential and proprietary information, know-how, formulae, ideas, concepts, discoveries, innovations, improvements, results, reports, documentation, research, laboratory and programmer notebooks, procedures, proprietary technology, operating and maintenance manuals, engineering and other drawings and sketches, business and marketing plans, business manufacturing and production, processes, techniques, designs, specifications and other forms of technology (whether or not embodied in any tangible form and including all tangible embodiments of the foregoing, such as instruction manuals, notebooks, prototypes, samples, studies and summaries), but excluding data.

"<u>Third-Party Technology</u>" means Open Source Software and the Technology provided under the vendor Contracts listed on <u>Schedule 1.1(a)(viii)</u>.

"<u>Transaction Documents</u>" means this Agreement and all other agreements, documents and instruments executed in connection herewith or required to be executed or delivered by Buyer or the Sellers in accordance with the provisions of this Agreement.

"<u>Transferred Customer Data</u>" means all Customer Data, other than Shared Customer Data.

"<u>Transferred IPR</u>" means (i) the Transferred Trademarks and Transferred Other IP, (ii) the right to register, prosecute, maintain or record any of the foregoing; and (iii) rights to damages and payments for past, present and future infringements and misappropriations thereof.

"<u>Transferred Personal Data</u>" means Personal Data that is part of the Transferred User Data, Transferred Customer Data, and Shared Customer Data.

"<u>Transferred Platform</u>" means the online platform used by the Sellers to operate a direct to consumer retail wine operation, subscription box and wine club, located at the domain names listed on <u>Schedule 1.1(a)(vi)</u>.

"<u>Transferred Technology</u>" means the items of Technology listed or described on <u>Schedule 1.1(a)(ii)</u>.

"<u>Transferred User Data</u>" means (i) any Personal Data or other data or information collected by or on behalf of the Sellers or the Business from or about users of the Transferred Platform or any social media accounts of the Business (or any of the foregoing platform's or accounts' predecessors), or from or about such user's devices, other than Shared Customer Data, and (ii) all copies, lists, databases and compilations of such information, or any portion thereof (in each case in any form, electronic or otherwise) in the possession or control of the Sellers or their Affiliates, other than Shared Customer Data.

"<u>Units</u>" shall have the same meaning and definition as set forth in the LLC Agreement.

"<u>Unpaid Note Amount</u>" means, at any time of determination, any amount of outstanding principal, accrued interest, or other amounts then owing under the Senior Note and/or the Sub Note (regardless of whether such amount is then due).

"<u>WARN Act</u>" means the federal Worker Adjustment and Retraining Notification Act of 1988, and similar state, local, and foreign Law relating to plant closings, relocations, mass layoffs, and employment losses.

[*The next page is the signature page.]*

**IN WITNESS WHEREOF,** the Parties hereto have caused their respective authorized officers to duly execute this Asset Purchase Agreement as of the day and year first written above.

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| | |
|:---|:---|
| **PROJECT CRUSH ACQUISITION CORP LLC** | **PROJECT CRUSH ACQUISITION CORP LLC** |
| By: | AMASS Brands Inc., its sole member |
| By: | /s/ Mark T. Lynn |
| Name: | Mark T. Lynn |
| Title: | Chief Executive Officer |
| **PROJECT CRUSH DTC SUB, LLC** | **PROJECT CRUSH DTC SUB, LLC** |
| By: | AMASS Brands Inc., its sole member |
| By: | /s/ Mark T. Lynn |
| Name: | Mark T. Lynn |
| Title: | Chief Executive Officer |
| **AMASS BRANDS INC.** | **AMASS BRANDS INC.** |
| By: | /s/ Mark T. Lynn |
| Name: | Mark T. Lynn |
| Title: | Chief Executive Officer |

---

 

*[Signature Page to Asset Purchase Agreement]*

 

 

**IN WITNESS WHEREOF,** the Parties hereto have caused their respective authorized officers to duly execute this Asset Purchase Agreement as of the day and year first written above.

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| | |
|:---|:---|
| **FULL GLASS - WINE, LLC** | **FULL GLASS - WINE, LLC** |
| By: | /s/ Louis Amoroso |
| Name: | Louis Amoroso |
| Title: | Chairman |
| **FULL GLASS WINE CO., LLC** | **FULL GLASS WINE CO., LLC** |
| By: | /s/ Louis Amoroso |
| Name: | Louis Amoroso |
| Title: | Chairman |

---

*[Signature Page to Asset Purchase Agreement]*

**Exhibit** **A**

**Form of Senior Note**

 

*[Attached.]*

SECURED PROMISSORY NOTE

---

| | |
|:---|:---|
| $5250000 | June <u>[ ]</u>, 2023 |

---

FOR VALUE RECEIVED, Full Glass - Winc, LLC, a Delaware limited liability company (the "<u>Borrower</u>"), HEREBY PROMISES TO PAY to the order of AMASS Brands Inc (the "<u>Lender</u>") (i) the principal sum of Five Million Two Hundred Fifty Thousand Dollars ($5,250,000) less the amount of adjustments deducted from the principal amount of this Note pursuant to Section 2.1 of the WINC DTC APA ("<u>Principal Amount</u>"), in accordance with the terms set forth in this Note (this "<u>Note</u>"), and (ii) interest on any and all principal amounts remaining unpaid hereunder from time to time outstanding, from the date hereof until such principal amounts become due, at the rate, and in accordance with the terms, indicated below. Louis Amoroso agrees that he shall be a party to this Note as a limited guarantor in the limited capacity and subject to the terms set forth in Section X (the "<u>Limited Guarantor</u>"). Holdings shall be a party to this Note solely for purposes of the covenant set forth in Section VI(w) below.

This Note (i) is issued pursuant to WINC DTC APA, and is the "<u>Senior Note</u>" referred to in the WINC DTC APA; and (ii) in addition to the terms hereof, is subject to and governed by the terms of the WINC DTC APA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **The Loan.** Subject to the terms and conditions hereof, the Lender shall make an advance available to the Borrower on the Effective Date, in the Principal Amount as provided in the WINC DTC APA (the "<u>Loan</u>"). The entire outstanding principal amount of the Loan, together with all accrued and unpaid interest thereon, shall be immediately due and payable in full in immediately available funds on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **Terms of the Note.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Interest.** This Note shall bear interest on the principal amount hereof from time to time outstanding, from the date hereof until the Loan is repaid in full, at the Applicable Federal Rate; provided that, notwithstanding the foregoing, interest on the principal amount of the Loan shall bear interest at the subsequent rates instead of the Applicable Federal Rate as follows: (i) twelve and one half of one percent (12.50%) per annum commencing on July 9, 2023 and ending on September 15, 2023, (ii) fifteen percent (15.00%) per annum commencing on September 16, 2023 and ending on December 14, 2023, and (iii) twenty-five percent (25.00%) per annum commencing on and after December 15, 2023. Interest on this Note shall be paid quarterly in arrears, on the last Business Day of each fiscal quarter of Borrower (commencing with the fiscal quarter ending June 30, 2023) and on the date any principal of this Note is prepaid (or required to be prepaid)). To the extent permitted by law, if any Event of Default occurs, this Note shall bear interest from the date such Event of Default occurs until such Event of Default is waived in writing, at a rate per annum equal to the interest rate in effect plus five percent (5.00)% per annum (the "<u>Default Rate</u>"). Interest at the Default Rate shall be payable on demand. All interest shall be computed on the basis of a year of 360 days for the actual number of days elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Evidence of Loan.** This Note evidences the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Payments on Business Day.** If any amount payable hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Lender's Office.** Principal, interest and all other amounts due hereunder are payable in lawful money of the United States of America and in immediately available funds at the offices of the Lender located at its address as set forth on its signature page hereto, or at such other place as the Lender shall designate in writing to the Borrower from time to time. All payments under this Note will be made without setoff, counterclaim or other defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Optional Prepayments.** The Borrower may, at its option and upon not less than three (3) Business Days' prior written notice to the Lender (or such shorter time as Lender may agree), prepay the Loan, in whole at any time or in part from time to time, without penalty, subject to the payment of all accrued interest to the date of such prepayment on the amount prepaid, <u>provided</u> that each partial voluntary prepayment shall be in a principal amount equal to $100,000 or an integral multiple thereof, or the entire remaining balance. Each notice of prepayment shall be irrevocable and shall specify the date and the amount of the prepayment of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Mandatory Prepayments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Excess Cash Flow</u>. Subject to clause (4) below, within fifteen (15) days of the end of each calendar month (commencing with the calendar month ending May 31, 2023, Borrower shall pay Lender, an amount equal to the greater of (x) $200,000, and the (y) Excess Cash Flow Recapture Amount as of the last day of such calendar month, which, in each case, shall be applied and used to pay down the outstanding principal amount of the Loan. Each such prepayment shall be supported with a written calculation in reasonable detail of such Excess Cash Flow and accompanied by a certificate in form and substance reasonably satisfactory to Lender executed by a Responsible Officer of Borrower certifying the manner in which Excess Cash Flow and the resulting prepayment were calculated. To the extent such prepayment for any month beginning with July, 2023 is less than $200,000, Lender may assess a five percent (5.00%) and the amount of the shortfall and if assessed, shall be paid as soon as practicable by Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Loan Clean Downs</u>. The Borrower shall make the following prepayments on each applicable Clean Down Date which shall, in each case, be applied and used to pay down the outstanding principal amount of the Loan in accordance with the following terms: (i) on or before the First Clean Down Date, Borrower shall have paid to Lender (including any optional prepayments permitted pursuant to Section II(e) above and any mandatory prepayments made pursuant to this Section II(f)) an amount equal to $2,000,000 or more (the "<u>First Mandatory Clean Down Prepayment</u>"), (ii) on or before the Second Clean Down Date, Borrower shall pay to Lender an amount that results in the aggregate amount of all payments and prepayments (including any optional prepayments permitted pursuant to Section II(e) above and any mandatory prepayments made pursuant to this Section II(f)) made as of such date equal to at least $2,500,000, and (iii) on or before the Third Clean Down Date, Borrower shall pay to Lender an amount that results in the aggregate amount of all payments and prepayments (including any optional prepayments permitted pursuant to Section II(e) above and any mandatory prepayments made pursuant to this Section II(f)) made as of such date equal to at least $4,250,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Lender Obligations</u>. Lender acknowledges and consents to the Inventory Transaction and to the payments to Borrower from Hemispheres for sales of wine inventory held by Hemispheres, and to advances to Borrower from Hemispheres which shall be used to fund the First Mandatory Clean Down Payment and other payments described in paragraph (2) above and agrees that Lender's Lien on the collateral securing any such advance shall only be subject to the Lien in favor of Hemispheres. Lender further acknowledges that Borrower's ability to obtain Replacement Debt from a financing source other than Hemispheres may require Borrower to grant to such financing source priority in payment and a senior Lien on the portion of the Collateral being used to secure the Replacement Debt; in that case, and at the request of Borrower, Lender agrees to negotiate reasonably and in good faith with Borrower and the financing source of the Replacement Debt in order to permit such Replacement Debt to be obtained in a timely manner by Borrower on each Clean Down 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;(4) <u>Transition Services Agreement</u>. Concurrent with the Required Cashflow Payments required to be paid pursuant to Schedule C of the Transition Services Agreement, Borrower shall pay to Lender the TSA Cashflow Payment as of such date, which shall be applied and used to pay down the outstanding principal amount of the Loan it being understood that the allocation of Required Cashflow Payments between payment for Services (as defined in the Transition Services Agreement) provided under the Transition Service Agreement and principal payments and prepayments under this Note shall be made as provided in the Transition Services Agreement and the amount allocated to TSA Cashflow Payments will be made at the time the allocation is agreed upon; pending such allocation, payment of the Required Cashflow Payment satisfies Borrower's obligation under clause (f)(1) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Use of Proceeds.** The Loan is a portion of the WINC DTC Acquisition purchase price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Offset and Indemnification.** If at any time prior to payment in full of this Note by Borrower, Lender or any Seller incurs any obligations to Borrower, or any of its Affiliates or Representatives pursuant to Article VIII of the WINC DTC APA, Borrower has the right to offset and reduce the Unpaid Note Amount (as defined in the WINC DTC APA) in accordance with Section 8.5 of the WINC DTC APA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Definitions; Rules of Construction.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms used herein shall have the meaning as set forth in Exhibit A hereto or, if not so defined, in the WINC DTC APA. Capitalized terms used herein and not defined in Exhibit A or the WINC DTC APA shall have the meaning as defined in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rules of construction set forth in Exhibit A shall apply to any interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **Collateral.** As collateral security for all Obligations of the Borrower now or hereafter evidenced by this Note, and to secure the due and punctual payment and performance of such Obligations to the Lender, the Borrower hereby grants, pledges and collaterally assigns to the Lender a lien on and security interest in all Collateral (as defined in Exhibit A hereto). The Borrower hereby agrees to the terms set forth in Exhibit B, including, without limitation, the Lender's rights with respect to the Collateral following an Event of Default as set forth in Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **Representations.** The Borrower represents and warrants to Lender as of the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower has the legal capacity and right to execute, deliver and perform this Note and each other Note Document and the Borrower is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of their respective business or its ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower's business or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the execution, delivery and performance by the Borrower of this Note and each other Note Document does not contravene any law or any contractual restriction binding on or affecting the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Governmental Approval or other authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Borrower of any Note Document, except for the filing of the financing statement under the Uniform Commercial Code in the jurisdiction of organization of Borrower and the filing of the IP Security Agreements with the USPTO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Note constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there is no pending or threatened action or proceeding affecting the Borrower before any Governmental Authority or arbitrator that (i) if adversely determined could reasonably be expected to have a Material Adverse Effect or (ii) relates to this Note or any of the other Note Documents or any transaction contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower is not liable with respect to any indebtedness for borrowed money other than the Subordinated Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Collateral</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;(1) the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral other than the Liens permitted pursuant to Section VI(b) 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;(2) Each of Borrower's Collateral Accounts is set forth on Schedule V(g)(2) attached hereto and Borrower has taken such actions as are necessary to give Lender a perfected security interest therein, pursuant to the terms of Section VI(m). The Accounts are bona fide, existing obligations of the Account Debtors; 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;(3) The Collateral is and shall be maintained at locations provided in Schedule V(g)(3) attached hereto or as permitted pursuant to Section VI(t).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Covenants.** So long as any Obligations shall remain outstanding, the Borrower, and for purposes of clause (w) below Holdings, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not create, incur, assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to any indebtedness for borrowed money other than (i) indebtedness in favor of the Lender, (ii) Replacement Debt, (iii) the Subordinated Debt, and (iv) other indebtedness not otherwise permitted hereunder in an aggregate amount not to exceed $100,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not incur, create, assume or suffer to exist any Lien on any of the Collateral (including any Lien on any owned real property or upon the Borrower's leasehold interests in any leased real property) or the proceeds thereof, other than (i) Liens with respect to the Collateral created hereby, (ii) Liens securing the indebtedness described in Section VI(a)(ii) above; (iii) in connection with the Inventory Transaction, and (iv) other Liens not otherwise permitted hereunder securing indebtedness in an aggregate amount not to exceed $100,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not sell, convey, transfer, lease or dispose of (whether in one transaction or in a series of transactions) any of the Collateral other than (i) sales of inventory in the ordinary course of business consistent with the past practices of Sellers, (ii) payments permitted under paragraph (d) below, and (iii) other transfers or dispositions in an amount not to exceed $100,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not (i) make payments on accounts payable if Lender has objected to such payment as not being in the ordinary course within 24 hours after notice from Borrower of its intent to pay the payable, accompanied by a summary in reasonable detail of the payments to be made, it being understood that (A) payments of the type and amount consistent with the past practices of the Sellers are ordinary course obligations, (B) Borrower may pay professional fees (lawyers, accountants and the like) in connection with the evaluation and negotiation of potential acquisitions by Borrower or Holdings in an amount not to exceed $100,000, and (C) notwithstanding the foregoing, Borrower shall be permitted to make payments on accounts payable in an aggregate amount not to exceed $100,000 in the aggregate, or (ii) pay any dividends or make any distribution, other than distributions not exceeding $100,000 in the aggregate for all such distributions and Tax Distributions. Borrower will give Lender reasonable advance written notice prior to incurring any new obligation not of the type and amount consistent with those incurred by Sellers in their operation of the Winc business prior to the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not make any investments, other than Permitted Investments, unless approved in advance in writing by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) at the Borrower's expense, defend the Lender's right, title and security interest in and to the Collateral against the claims of any other Person other than for deficiencies caused by Sellers or that exist as of immediately prior to the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at the Borrower's expense (with the exception of clause (iii) below), at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Lender may reasonably request in order to (i) perfect and protect, or maintain the perfection of, the security interest and lien purported to be created hereby, (ii) enable the Lender to exercise and enforce its rights and remedies hereunder in respect of the Collateral or (iii) better secure the Obligations through accepted and customary means;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) not take or fail to take any action which would in any manner reasonably be expected to impair the value or enforceability of the Lender's security interest in and lien on any Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain its legal existence and good standing in its jurisdiction of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower's business or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) comply in all material respects with all laws, ordinances and regulations to which it is subject, obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under this Note and the other Note Documents, including any grant of a security interest to Lender, and promptly provide copies of any such obtained Governmental Approvals to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Reporting</u>. Deliver to Lender the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations for such month in a form reasonably acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower that could reasonably be expected to result in damages or costs to Borrower of, individually or in the aggregate, $25,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If Borrower shall acquire a commercial tort claim, with a value in excess of $25,000, Borrower shall promptly notify Lender in a writing signed by Borrower of the general details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Note, with such writing to be in form and substance reasonably satisfactory to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Prompt written notice of the occurrence of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Note Documents as reasonably requested by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Prompt written notice of any applications or registrations of Intellectual Property not already disclosed on Schedule V(g)(5) attached hereto, including the date of such filings and the applicable application or registration numbers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) permit, at reasonable times, on one (1) Business Day's notice (provided no notice is required if an Event of Default has occurred and is continuing), Lender, or its agents, to inspect the Collateral and the right to audit and copy Borrower's Books; provided that, such inspections and audits shall be conducted no more often than once every twelve (12) months, unless an Event of Default has occurred and is continuing, in which case such inspections and audits shall occur as often as Lender shall determine is necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance</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;(1) Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower's industry and location and as Lender may reasonably request. Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are reasonably satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All property policies shall have a lender's loss payable endorsement showing Lender as lender loss payee. All liability policies shall show, or have endorsements showing, Lender as an additional insured. Lender shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Ensure that proceeds payable under any property policy are, at Lender's option, payable to Lender on account of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) At Lender's request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments. Each provider of any such insurance required under this Section V(l)(4) shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Lender, that it will give Lender twenty (20) days (ten (10) days for any cancellation due to non-payment of any premium) days prior written notice before any such policy or policies shall be canceled. If Borrower fails to obtain insurance as required under this Section V(l)(4) or to pay any amount or furnish any required proof of payment to third persons and Lender, Lender may make all or part of such payment or obtain such insurance policies required in this Section V(l)(4), and take any action under the policies Lender deems prudent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Borrower shall provide Lender five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Lender or Lender's Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Lender's Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Protection of Intellectual Property Rights</u>. Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (i) Protect, defend and maintain the validity and enforceability of Borrower's Intellectual Property, except to the extent that such failure to do so would not reasonably be expected to have a material adverse effect on Borrower's business or operations; (ii) promptly advise Lender in writing of infringements or any other event that could reasonably be expected to materially and adversely affect the value of Borrower's Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower's business to be abandoned, forfeited or dedicated to the public without Lender's 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;(2) Provide written notice to Lender within ten (10) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public) not acquired from Lender under the WINC DTC APA other than with Lender and its affiliates or pursuant to the Bill of Sale and Intellectual Property Licensing Agreement, Borrower shall take such steps as Lender requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any such Restricted License to be deemed "Collateral" and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Lender to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Lender's rights and remedies under this Note and the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) at the time that Borrower forms any Subsidiary or acquires any Subsidiary after the Effective Date, Borrower shall (a) cause such new Subsidiary to provide to Lender a joinder to this Note and the Note Documents to become a co-borrower hereunder (as determined by Lender in its sole discretion), together with documentation, all in form and substance satisfactory to Lender (including being sufficient to grant Lender a first priority Lien in and to the assets of such newly formed or acquired Subsidiary), (b) provide to Lender appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Lender; and (c) provide to Lender all other documentation in form and substance satisfactory to Lender, including one or more opinions of counsel satisfactory to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section shall be a Note Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) subject to the Inventory Transaction, keep all Inventory in good and marketable condition, free from material defects subject to any defects or lack of good condition or title existing immediately prior to the Effective Date. Returns and allowances between Borrower and its Account Debtors shall follow Borrower's customary practices as they exist at the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) not directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a nonaffiliated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) not merge or consolidate with any other Person, or acquire all or substantially all of the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person unless (i) the Borrower has received Lender's prior written consent to consummate such merger or consolidation on terms that are in form and substance reasonably satisfactory to Lender, and (ii) no Event of Default has occurred and is continuing. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) not (i) become an "investment company" or a company controlled by an "investment company", under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of the Loan for that purpose; (ii)(A) fail to meet the minimum funding requirements of ERISA, (B) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, (C) fail to comply with the Federal Fair Labor Standards Act or (D) violate any other law or regulation, if the foregoing subclauses (A) through (D), individually or in the aggregate, could reasonably be expected to have a material adverse effect on Borrower's business or operations; or (iii) withdraw or permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) not (i) engage in any business other than the businesses currently engaged in by Borrower or a business reasonably related thereto; (ii) permit, allow or suffer to occur any Change in Control; or (iii) without at least 30 days prior written notice to Lender, (1) add any new offices or business locations, including warehouses or deliver any portion of the Collateral to a bailee at a location other than to a bailee and at a location already disclosed in Schedule V(g)(3) attached hereto, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to add any new offices or business locations, including warehouses, then Borrower shall cause the landlord of any such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance reasonably satisfactory to Lender. If Borrower intends to deliver any portion of the Collateral to a bailee, and Lender and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower shall cause such bailee to execute and deliver a bailee agreement in form and substance reasonably satisfactory to Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) not, except as expressly permitted under the terms of the subordination, intercreditor, or other similar agreement to which any Subordinated Debt is subject, (a) make or permit any payment on such Subordinated Debt; or (b) amend any provision in any document relating to such Subordinated Debt which would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Holdings shall not engage in any material business activity or have any operations other than (i) the ownership of Borrower, and (ii) activities incidental to the maintenance of its existence and compliance with applicable laws and legal, tax and accounting matters related thereto. Notwithstanding the foregoing, Holdings shall be permitted to acquire all or substantially all of the assets, stock, partnership, membership or other ownership interest of another Person so long as (i) Holdings has received Lender's prior written consent, and (ii) no Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Post-Closing Covenant</u>. As soon as reasonably practicable, but in any event within thirty (30) days after the Effective Date, Borrower shall deliver, or cause to be delivered, executed Control Agreements for the Borrower's applicable Deposit Accounts, Securities Accounts, or Commodity Accounts in favor of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **Conditions Precedent to the Loan.** Lender's obligation to make the Loan is subject to the condition precedent that Lender shall have received, in form and substance satisfactory to Lender, such documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A duly executed copy of this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) duly executed copies of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Governing Documents of Borrower and good standing certificates of Borrower certified by the Secretary of State of the State of Delaware and the Secretary of State (or equivalent agency) of each other jurisdiction in which Borrower is qualified to conduct business where the failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect, in each case as of a date no earlier than 30 days prior to the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a certificate duly executed by a authorized officer or secretary of Borrower with respect to Borrower's (1) Governing Documents and (2) resolutions authorizing Borrower to enter into this Note, the other Note Documents, and the transactions contemplated herein and therein executed by Borrower's governing authority in accordance with its Governing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) certified copies, dated as of a recent date, of searches for financing statement filed in the central filing office of the State of Delaware, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements are either permitted by the terms of this Note or have been or, in connection with the Loan, will be terminated or released;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [Operating Agreement and equity]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) that certain Warrant, dated as of the date hereof, between Borrower and Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. **Events of Default.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Major Event of Default shall occur then the Lender may by written notice to the Borrower (i) terminate any commitments to make any further Loans (if any) and declare the outstanding principal amount of this Note and all other amounts due hereunder to be immediately due and payable, whereupon the outstanding principal amount of this Note and all such other amounts, shall become and shall be forthwith due and payable, without diligence, presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, and (ii) exercise any and all of its other rights under applicable law, hereunder and under the other Note Documents; <u>provided</u>, <u>however</u>, that upon the occurrence of any Event of Default described in clause (e) of the definition of "Event of Default", without any notice to the Borrower or any other Person or any act by the Lender, all commitments to make any further Loans (if any) shall automatically terminate, all Loans then outstanding, together with all accrued and unpaid interest thereon, all fees and all other amounts due under this Note and the other Note Documents, shall be accelerated and become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by the Borrower. In addition to the other rights and remedies provided for herein or otherwise available to it, upon any Event of Default, the Lender may exercise all of the rights and remedies of a secured party on default under the UCC, including, without limitation, such rights as are set forth in Exhibit B hereto. All proceeds received following any Event of Default hereunder shall be applied to this Note or any indebtedness arising hereunder or the other Obligations or in conjunction with this Note as the Lender shall determine in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of an Event of Default that is not a Major Event of Default, regardless of any rights that might be available at law or in equity, Lender's sole remedy is to apply the Default Rate to the outstanding unpaid principal balance of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **Successors and Assigns.** This Note shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns, except that the Borrower may not assign any rights or obligations hereunder or any interest herein without the prior written consent of the Lender (any such assignment being null and void). The Lender may assign to one or more other entities all or a portion of its rights under this Note with the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned); <u>provided</u>, that (i) no such consent shall be required (x) during the continuance of an Event of Default or (y) for any assignments to any Affiliates or related funds of the Lender, and (ii) such consent shall have been deemed to have been given without the need for further action if the Borrower does not respond in writing to a request by the Lender for any such consent within five (5) days after receipt of such request from the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **Limited Guaranty.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Limited Guarantor commits a Nefarious Act, and as a direct result of the Nefarious Act, Borrower fails to make a payment due under the Note, Limited Guarantor irrevocably, absolutely, and unconditionally agrees to pay to Lender the amount of the Note not paid by Borrower as a direct result of the Nefarious Act "<u>Nefarious Acts</u>" means (i) actual intentional common law fraud by Limited Guarantor in incurring the Loan or entering into the Note Documents, (ii) embezzlement or misappropriation by Limited Guarantor of any of the material funds due to Lender as Obligations under this Note to the personal benefit of Limited Guarantor or his family, or (iii) conviction of a felony in connection with the business of Borrower (such amount not paid on this Note, the "<u>Guaranteed Obligation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This limited guaranty is a continuing obligation and shall remain in full force and effect and shall only be discharged if and when the Loan has been paid in full and all obligations thereunder have been fully performed. Notwithstanding the foregoing, this guaranty shall be reinstated if at any time any payment of any of the Guaranteed Obligations is rescinded or must be returned by Lender to Borrower, Limited Guarantor, or to any guarantor, trustee, receiver, or other representative of any of them. This limited guaranty shall continue after such Limited Guarantor's death, in which event this guaranty shall be binding upon Limited Guarantor's heirs, estate, and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Limited Guarantor hereby acknowledges that it is liable for the Guaranteed Obligation as a primary obligor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Limited Guarantor hereby guarantees that the Guaranteed Obligation will be paid regardless of any law, order, or regulation now or hereafter in effect in any jurisdiction affecting any terms contained in this Note or the rights of Lender with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XI. **Miscellaneous.** (a) All notices or other communications provided for hereunder shall be in writing (including telecommunications) and shall be mailed, telecopied, e-mailed or delivered to the Borrower at the address set forth next to the Borrower's signature, or at such other address as may hereafter be specified by the Borrower to the Lender (at its address set forth herein) in writing. All notices and communications shall be effective (i) if mailed, when received at the address specified above, (ii) if telecopied, when transmitted, (iii) if e-mailed, upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment) and (iv) if delivered, upon delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure on the part of the Lender to exercise, and no delay in exercising, any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof by the Lender preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy of the Lender. No amendment or waiver of any provision of this Note, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such 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;(d) The Borrower hereby agrees to pay promptly after invoicing thereof all costs and expenses (including, without limitation, all reasonable fees, expenses and other client charges of counsel to the Lender) incurred by the Lender in connection with the enforcement of the Lender's rights, and the collection of all amounts due, hereunder. The obligations of the Borrower under this clause (d) shall survive the payment in full of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary set forth in this Note, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the "<u>Maximum Lawful Rate</u>"), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Borrower shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Lender is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Effective Date as otherwise provided in this Note. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in Section II, unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by the Lender pursuant to the terms hereof exceed the amount that the Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section XI(e), a court of competent jurisdiction shall finally determine that the Lender has received interest hereunder in excess of the Maximum Lawful Rate, the Lender shall, to the extent permitted by applicable law, promptly apply such excess to the payment of other outstanding Obligations and thereafter shall refund any excess to the Borrower or as a court of competent jurisdiction may otherwise order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Note and the other Note Documents as collateral security to secure obligations of the Lender, Affiliates of the Lender or funds or accounts managed by the Lender or an Affiliate of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower and Lender hereby (i) irrevocably submits to the nonexclusive jurisdiction of any Delaware State or Federal court sitting in Delaware in any action or proceeding arising out of or relating to this Note, (ii) waives any defense based on doctrines of venue or <u>forum non conveniens</u>, or similar rules or doctrines, and (iii) irrevocably agrees that all claims in respect of such an action or proceeding may be heard and determined in such Delaware State or Federal court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) THE BORROWER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY ANY MEANS PERMITTED BY APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT THE BORROWER'S ADDRESS FOR NOTICES AS SET FORTH ON THE SIGNATURE PAGE HERETO, SUCH SERVICE TO BECOME EFFECTIVE 5 DAYS AFTER SUCH MAILING.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) THE BORROWER AND THE LENDER (BY ITS ACCEPTANCE HEREOF) MUTUALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.**

**[SIGNATURE PAGE FOLLOWS]**

---

| |
|:---|
| BORROWER: |
| **FULL GLASS - WINC, LLC** |
| By: |
| Name: Louis A. Amoroso |
| Title: Chief Executive Officer |
| Address: |
| [\*\*\*] |
| Attn: Louis A. Amoroso |
| Email:Louis@drinks.com |
| LIMITED GUARANTOR: |
| Louis A. Amoroso |
| HOLDINGS (Solely for the purposes of Section VI(w) and in no other capacity): |
| **FULL GLASS WINE CO., LLC** |
| By: |
| Name: |
| Title: |

---

Signature Page to Promissory Note

Accepted and agreed:

**AMASS BRANDS INC**

  <br> Name: Mark T. Lynn <br> Title: Chief Executive Officer

Address:

AMASS Brands Inc

927 South Santa Fe Avenue

Los Angeles, California 90021

mark@amass.com

Signature Page to Promissory Note

SCHEDULE V(g)(2)

Collateral Accounts

---

| | | |
|:---|:---|:---|
| Institution Name and Address | Account Number | Name of Account Owner |
| Wintrust | [<u> </u>] | Full Glass - Winc, LLC |

---

SCHEDULE V(g)(3)

Location of Collateral

**For the period under the TSA**

**AMASS (WINC)**

WEST COAST DISTRIBUTION CENTER

850 E Stowell Rd.

Santa Maria, CA 93454

EAST COAST DISTRIBUTION CENTER

1515 Garnet Mine Rd.

Garnet Valley, PA 19060

**Following TSA Term**

**Wine** **SHIPPING**

NY

Vingo/ DRINKS

140 Aker Dr

Cobleskill, NY. 12043

MO

Vingo/ DRINKS

13600 Shoreline Drive, Suite 900

Earth City, MO 63045

CA

Vingo/DRINKS - 24-7 Enterprises

700 Crocker Drive

Vacaville, CA 95688

SCHEDULE V(g)(5)

Intellectual Property

Trademarks

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg.<br> No.**  | **Class / Goods** |
| United States of America | Full Glass - Winc, LLC | #TBT | Registered | 4785880 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ALMA LIBRE | Registered | 4828877 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ATAVIST | Registered | 4828858 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | AU-DELÀ | Registered | 4985275 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | BIG BEAT | Registered | 4796870 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | BOKETTO | Pending | 88722219 | 33 Sake |
| United States of America | Full Glass - Winc, LLC | Brethren of the Road | Registered | 4689816 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | CASA DE LILA | Pending | 90897917 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | CHOMMIE | Registered | 4988821 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | DÉCLASSÉ | Registered | 5073314 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | DIVINER | Registered | 5347935 | 33 wine |
| United States of America | Full Glass - Winc, LLC | ENDGAME | Registered | 4864507 | 33 Wine |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg.**<br> **No.** | **Class / Goods** |
| United States of America | Full Glass - Winc, LLC | FINKE'S WIDOW | Registered | 5197280 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | FOG LAND | Registered | 4814764 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | FORMA DE VIDA | Pending | 97461706 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | FUNK ZONE | Registered | 4733318 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | GOLDEN CHILD | Registered | 6640189 | 33 wine |
| United States of America | Full Glass - Winc, LLC | HONEY BEAST | Registered | 5142393 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | HOUSE OF LUCK | Registered | 6599173 | 33 Sake |
| United States of America | Full Glass - Winc, LLC | IDEE FIXE | Registered | 4842289 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | IF A TREE FALLS | Registered | 5004566 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | KIN + COUNTRY | Registered | 4765964 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LA MULETA | Registered | 4864499 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | L'ATELIER DU SUD | Registered | 4753309 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LAUGHING OWL | Registered | 4864511 | 33 Wine |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg.**<br> **No.** | **Class / Goods** |
| United States of America | Full Glass - Winc, LLC | LE FERMIER | Pending | 97329797 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LIGHT & SPACE | Registered | 6009175 | 33 wine |
| United States of America | Full Glass - Winc, LLC | LIKELIHOOD OF CONFUSION | Registered | 4988823 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LOVES ME NOT | Registered | 5293657 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | MATCHLOCK | Registered | 5417171 | 33 wine |
| United States of America | Full Glass - Winc, LLC | OBJET D'ART | Registered | 5166174 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ONE FROM THE QUIVER | Pending | 90870209 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | PRETTY YOUNG THING | Registered | 4762003 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | PRISMUS | Registered | 4761999 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | QTY | Registered | 5197235 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | RESTLESS EARTH | Registered | 5197040 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ROME OF THE NORTH | Registered | 6840849 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | RUZA | Registered | 4814797 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | SALIENT | Registered | 4746631 | 33 Wine |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg.**<br> **No.** | **Class / Goods** |
| United <br> States of <br> America | Full Glass - Winc, LLC | SO THIS <br> HAPPENED... | Registered | 4733319 | 33 Wine |
| United <br> States of <br> America | Full Glass - Winc, LLC | SUPERCLUSTER | Registered | 4762004 | 33 Wine |
| United <br> States of <br> America | Full Glass - Winc, LLC | THE BLUFFER | Registered | 4924159 | 33 Wine |
| United <br> States of <br> America | Full Glass - Winc, LLC | THE <br> INDEPENDENT | Registered | 4825091 | 33 Wine |
| United <br> States of <br> America | Full Glass - Winc, LLC | VILLE BASSE | Registered | 4711882 | 33 Wine |
| United <br> States of <br> America | Full Glass - Winc, LLC | Winc | Registered | 5143508 | 45 Preparation of customized gift sets |
| United <br> States of <br> America | Full Glass - Winc, LLC | Winc | Registered | 5086799 | 35 Online store and retail store services featuring wine; administering a wine club by means of providing select wines for members to purchase and arranging periodic shipments of wines to club members |
| United <br> States of <br> America | Full Glass - Winc, LLC | ZWICKER | Registered | 4878574 | 33 Wine |
| United <br> States of <br> America | Full Glass - Winc, LLC | CLUB W | Registered | 4176945 | 35 On-line retail store services featuring wine 39 wine club services featuring periodic shipments of wine to members 43 Providing a web site where users can post ratings, reviews and recommendations on wines for wine appreciation purposes |

---

Patents

[None]

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title** | **App. No.** | **Application** <br> **Date** | **Publication**<br> **Date/Issue Date** | **Publication**<br> **Number/Patent** <br> **Number** | **Company** |

---

Copyrights

[None]

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **App. No.** | **Application** <br> **Date** | **Reg. No.** | **Reg. Date** | **Company** |

---

**EXHIBIT A**

**DEFINITIONS**

"<u>Account</u>" is, as to any Person, any "account" of such Person as "account" is defined in the UCC with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to such Person.

"<u>Account Debtor</u>" is any "account debtor" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Affiliate</u>" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of equity interests, by contract, or otherwise.

"<u>AFR</u>" shall mean the short-term applicable federal rate for quarterly compounding, as described under Section 1274(d) of the Internal Revenue Code of 1986, as amended.

"<u>Applicable Federal Rate</u>" shall mean, at any date, with respect to the Loan, the AFR in effect on the first day of the current calendar quarter; for May 2023, 4.23%.

"<u>Borrower's Books</u>" are all Borrower's books and records including ledgers, federal and state tax returns, records regarding Borrower's assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close.

"<u>Change in Control</u>" means (a) at any time, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of 25.0% or more of the ordinary voting power for the election of directors, partners, managers and members, as applicable, of Borrower (determined on a fully diluted basis), (b) during any period of 12 consecutive months, a majority of the members of the board of directors or similar governing authority of Borrower cease to be composed of individuals (1) who were members of that board or equivalent governing body on the first day of such period, (2) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (1) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (3) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (1) and (2) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; of Borrower; or (c) at any time Borrower shall cease to own and control, of record and beneficially, directly or indirectly, 100.0% of each class of outstanding stock, partnership, membership, or other ownership interest or other equity securities of each Subsidiary of Borrower free and clear of all Liens.

"<u>Clean Down Date</u>" means each of the following dates: (i) August 8, 2023 (the "<u>First Clean Down Date</u>"), (ii) October 16, 2023 (the "<u>Second Clean Down Date</u>"), and (iii) December 15, 2023 (the "<u>Third Clean Down Date</u>").

"<u>Collateral</u>" shall mean, with respect to any Person, all personal property and Fixtures of such Person, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Chattel Paper (whether Electronic Chattel Paper or Tangible Chattel Paper);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Commercial Tort Claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise
credited thereto and the monies and property in the possession or under the control of any Lender or any of their respective affiliates,
representatives, agents, participants or correspondents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all General Intangibles (including, without limitation, all Payment Intangibles, intellectual property
(including, without limitation, all intellectual property described in the IP Security Agreements) and licenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Goods, including, without limitation, all Equipment, Fixtures and Inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all Instruments (including, without limitation, Promissory Notes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Investment Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Supporting Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all fee interests in any owned real property and all leasehold interests in real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all other tangible and intangible personal property and Fixtures of such Person (whether or not subject
to the UCC), including, without limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products,
offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of such Person described
in the preceding clauses (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties
now or hereafter held by such Person in respect of any of the items listed above), and all books, correspondence, files and other Records,
including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of
such Person or any other Person from time to time acting for such Person that at any time evidence or contain information relating to
any of the property described in the preceding clauses of this definition or are otherwise necessary or helpful in the collection or realization
thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing
Collateral;

in each case howsoever such Person's interest therein may arise or appear (whether by ownership, security interest, claim or otherwise). For the avoidance of doubt, as used in this definition the following terms shall have the respective meanings provided for in the Code: "Accounts", "Cash Proceeds", "Chattel Paper", "Commercial Tort Claim", "Commodity Account", "Commodity Contracts", "Deposit Account", "Documents", "Electronic Chattel Paper", "Equipment", "Fixtures", "General Intangibles", "Goods", "Instruments", "Inventory", "Investment Property", "Letter-of-Credit Rights", "Noncash Proceeds", "Payment Intangibles", "Proceeds", "Promissory Notes", "Record", "Security Account", "Software", "Supporting Obligations" and "Tangible Chattel Paper".

"<u>Collateral Account</u>" is any Deposit Account, Securities Account, or Commodity Account.

"<u>Commodity Account</u>" is any "commodity account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Control Agreement</u>" is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Lender pursuant to which Lender obtains control (within the meaning of the UCC) over such Deposit Account, Securities Account, or Commodity Account.

"<u>Copyrights</u>" are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

"<u>Default</u>" means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

"<u>Deposit Account</u>" is any "<u>deposit account</u>" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Dollar</u>," "<u>Dollars</u>" and the symbol "$" each means lawful money of the United States of America.

"<u>EBITDA</u>" means, for any applicable period, the sum of Borrower's (i) net income or loss for such period (excluding any extraordinary gains and losses), <u>plus</u> (ii) all interest expense for such period, <u>plus</u> (iii) all income tax expenses deducted in arriving at such net income or loss calculation, <u>plus</u> (iv) all non-cash charges or expenses, <u>plus</u> depreciation expenses for such period, <u>plus</u> (v) amortization expenses for such period.

"<u>Effective Date</u>" shall mean June [ ], 2023.

"<u>ERISA</u>" is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

"<u>Event of Default</u>" shall mean the occurrence and/or continuance of any one of the following:

&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>Payment Default</u>. Borrower fails to (i) make any payment of principal or interest on the Loan on
its due date provided that in the case of payment due under Section II(f)(1), until the Second Clean Down Date, the Excess Cash Flow for
the month in question exceeds $200,000, or (ii) pay any other Obligations within three (3) Business Days after such Obligations are due
and payable (which three (3) Business Day cure period shall not apply to payments due on the Maturity Date). During the cure period, the
failure to make or pay any payment specified under clause (ii) hereunder is not an Event of Default (but no advances will be made during
the cure period);

&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>Covenant Default</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;a. Borrower fails or neglects to perform any obligation in Section VI; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant
or agreement contained in this Note or any of Note Document, and as to any default (other than those specified in this definition of "Event
of Default") under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default
within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten
(10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to
be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed 30 days) to attempt
to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but
no advances shall be made during such cure period);

&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>Material Adverse Effect</u>. A Material Adverse Effect occurs;

&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>Attachment; Levy; Restraint on Business</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;a. (i) the service of process seeking to attach, by trustee or similar process, any funds of Borrower in
excess of $25,000, or (ii) a notice of lien or levy is filed against any of Borrower's assets by any Governmental Authority, and
the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether
through the posting of a bond or otherwise); provided, however, no advances shall be made during any ten (10) day cure period; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. (i) any material portion of Borrower's assets is attached, seized, levied on, or comes into possession
of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of
its 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;(e) <u>Insolvency.</u> (i) Borrower is unable to pay its debts (including trade debts) as they become due
other than (A) past-due debts owed by Borrower that remain payable without penalty which are being contested in good faith by appropriate
proceedings which proceedings have the effect of satisfying the amount owed to the applicable creditor or payee, and (B) payables not
approved by Lender because Lender has determined that such payables are not in the ordinary course of Borrower's business under
Section VI(d), or otherwise becomes insolvent; (ii) Borrower begins an Insolvency Proceeding; or (iii) an Insolvency Proceeding is begun
against Borrower and is not dismissed or stayed within 45 days (but no advances shall be made while any of the conditions described in
clause (i) exist or until any Insolvency Proceeding is dismissed);

&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>Other Agreements</u>. There is, under
 any agreement to which Borrower is a party with a third party or parties, (i) any default
 resulting in a right by such third party or parties, whether or not exercised, to accelerate
 the maturity of any indebtedness in an amount individually or in the aggregate in excess
 of $25,000; (ii)(A) a material breach or default under the W inc DTC APA by Borrower, or (B) any payment default or failure by Borrower to pay Service
 Provider (as defined in the Transition Services Agreement) when due pursuant to the terms
 of the Transition Services Agreement; or (iii) any breach or default by Borrower, the result
 of which could have a material adverse effect on Borrower's business or operations;

&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>Judgments; Penalties</u>. One or more fines, penalties or final judgments, orders or decrees for the
payment of money in an amount, individually or in the aggregate, of at least $25,000 (not covered by independent third-party insurance
as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower by any Governmental Authority, and
the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or after execution thereof, or stayed
pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no advances will be made
prior to the discharge, or stay of such fine, penalty, judgment, order or decree);

&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>Misrepresentations</u>. Borrower or any Person acting for Borrower makes any representation, warranty,
or other statement in this Note or any Note Document that is incorrect in any material respect when 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;(i) <u>Lien Priority</u>. There is a material impairment in the perfection or priority of Lender's security
interest in the Collateral caused by Borrower; 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;(j) <u>Governmental Approvals</u>. Any Governmental Approval shall have been (a) revoked, rescinded, suspended,
modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority
that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the
Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension,
modification or non-renewal (i) causes, or could reasonably be expected to cause, a Material Adverse Effect, or (ii) materially adversely
affects the legal qualifications of Borrower to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission,
suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower to hold
any Governmental Approval in any other jurisdiction.

"<u>Excess Cash Flow</u>" means, for any applicable period, Borrower's EBITDA <u>minus</u> any voluntary prepayments made on the Loan <u>minus</u> cash payments made in such period with respect to Investments permitted hereunder, <u>minus</u> until the Payment Threshold Date, the Required Cashflow Payments, <u>plus</u> any payments made by Borrower for costs, fees and expenses related to this Note, the Note Documents, and the Winc DTC APA that are not financed by Limited Guarantor directly.

"<u>Excess Cash Flow Recapture Amount</u>" means an amount equal to one hundred percent (100%) of Borrower's Excess Cash Flow on any applicable date.

"<u>Exchange Act</u>" is the Securities Exchange Act of 1934, as amended.

"<u>First Clean Down Date</u>" has the meaning set forth in the definition of "Clean Down Date".

"<u>First Mandatory Clean Down Prepayment</u>" has the meaning set forth in Section II(f)(3).

"<u>Governing Documents</u>" means, with respect to any Person, the certificate or articles of incorporation or formation, by-laws, operating agreement, partnership agreement or other organizational documents of such Person.

"<u>Governmental Approvals</u>" means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

"<u>Governmental Authority</u>" means any nation or government, any Federal, state, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Guaranteed Obligations</u>" has the meaning set forth in Section X.

"<u>Hemispheres</u>" means Hemispheres, LLC.

"<u>Holdings</u>" means FULL GLASS Wine CO., LLC, a Delaware limited liability company.

"<u>Insolvency Proceeding</u>" means any proceeding commenced by or against any Person under any provision of Title 11 of the United States Code, as amended from time to time, or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States or other applicable jurisdiction from time to time in effect.

"<u>Intellectual Property</u>" means, with respect to any Person, all of such Person's right, title, and interest in and to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) its Copyrights, Trademarks and Patents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented
inventions, know-how and operating manuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any and all source code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any and all design rights which may be available to such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all claims for damages by way of past, present and future infringement of any of the foregoing,
with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property
rights identified above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

"<u>Inventory Transaction</u>" means the transfer of Borrower's rights to and interest in the inventory acquired under the Winc DTC APA from BWSC to Hemispheres with Borrower's interest reflected in part by a receivable from Hemispheres payable to Borrower.

"<u>IP Security Agreement</u>" means that certain Trademark Security Agreement dated as of the date hereof, by Borrower in favor of Lender.

"<u>Lien</u>" means any mortgage, deed of trust, pledge, lien (statutory or otherwise), security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, any capitalized lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.

"<u>Major Event of Default</u>" means (i) on or prior to October 15, 2023, an Event of Default described in paragraph (a) of the definition of Event of Default occurs and the total amount past due under that paragraph at the time exceeds $400,000 plus interest, (ii) an Event of Default described in paragraph (e) or (j) of such definition occurs; (iii) an Event of Default occurs between October 16, 2023 and December 14, 2023, and the Borrower has failed as of such date to pay to Lender an amount that results in the aggregate amount of all payments and prepayments made under this Note equal to at least $2,500,000; (iv) an Event of Default occurs on or after December 15, 2023, and the Borrower has failed as of such date to pay to Lender an amount that results in the aggregate amount of all payments and prepayments made under this Note equal to at least $4,250,000; (v) the Loan is not paid in full by December 31, 2023, or (vi) Borrower fails or neglects to perform any obligation set forth in Section VI(a), (b), (c), (d), (e), (m), (n), (s), (u), or (x) or an Event of Default described in paragraph (f)(ii)(B) of the definition of Event of Default occurs.

"<u>Material Adverse Effect</u>" means a material adverse effect on any of (a) the assets, liabilities, or condition (financial or otherwise) of the Borrower, (b) the ability of the Borrower to perform any of its obligations under this Note or any other Note Document, (c) the legality, validity or enforceability of this Note or any other Note Document, (d) the rights and remedies of the Lender under this Note or any other Note Document, or (e) the validity, perfection or priority of a Lien in favor of the Lender on the Collateral.

"<u>Maturity Date</u>" means the earlier to occur of (a) December 31, 2023, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

"<u>Note Document</u>" means this Note, the IP Security Agreement, any Control Agreement, and any other agreement, instrument, certificate, report and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing the Loan or any other Obligation.

"<u>Obligations</u>" means all present and future indebtedness, obligations, and liabilities of the Borrower to the Lender as such arising under or in connection with this Note or any other Note Document, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any Insolvency Proceeding. Without limiting the generality of the foregoing, the Obligations of the Borrower under the Note Documents include (a) the obligation (irrespective of whether a claim therefor is allowed in an Insolvency Proceeding) to pay principal, interest, charges, expenses, premiums, fees, attorneys' fees and disbursements, indemnities and other amounts payable by such Person under the Note Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that the Lender (in its sole discretion) may elect to pay or advance on behalf of such Person as permitted under this Note.

"<u>Patents</u>" means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

"<u>Payment Threshold Date</u>" has the meaning set forth in the Transition Services Agreement.

"<u>Permitted Investments</u>" means any investment in software, hardware, technology infrastructure, communications or security (a) required as a result of a breach by Lender of the Winc DTC APA, (b) as necessary for Borrower to comply with any contractual obligation relating to the business of Borrower, (c) in an amount not to exceed $100,000 and (d) with the approval of Lender (approval not to be unreasonably withheld, delayed or conditioned).

"<u>Person</u>" means an individual, corporation, limited liability company, partnership, association, joint- stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.

"<u>Replacement Debt</u>" is debt that is incurred or guaranteed by Borrower the proceeds of which are used to make the First Mandatory Clean Down Payment or other amounts required to make the payments described in Section II(f)(2) including from Hemispheres.

"<u>Required Cashflow Payments</u>" has the meaning set forth in the Transition Services Agreement.

"<u>Responsible Officer</u>" means the chief executive officer, president, vice president, chief financial officer, treasurer, controller or comptroller of the Borrower, but in any event, with respect to financial matters, the chief financial officer, treasurer, controller or comptroller of the Borrower.

"<u>Restricted License</u>" is any material license or other material agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower's interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with Lender's right to sell any Collateral.

"<u>Second Clean Down Date</u>" has the meaning set forth in the definition of "Clean Down Date".

"<u>Securities Account</u>" is any "securities account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Subordinated Debt</u>" is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all of Borrower's or any of its Subsidiaries' now or hereafter indebtedness to Lender (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lender entered into between Lender and the other creditor), on terms acceptable to Lender and includes the Sub Note.

"<u>Sub Note</u>" has the meaning given to such term in the Winc DTC APA.

"<u>Subsidiary</u>" is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower.

"<u>Tax Distributions</u>" has the meaning set forth in the Amended and Restated Operating Agreement of Borrower as executed by Lender as of or in connection with the Effective Date.<sup>1</sup>

"<u>Third Clean Down Date</u>" has the meaning set forth in the definition of "Clean Down Date".

"<u>Trademarks</u>" means, with respect to any Person, any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of such Person connected with and symbolized by such trademarks.

"<u>Transition Services Agreement</u>" has the meaning set forth in the Winc DTC APA.

"<u>TSA Cash Flow Payment</u>" means the amount of Required Cashflow Payments less the applicable amount necessary to satisfy the Services Fees (as defined in the Transition Services Agreement) at any given date.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the laws of any other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code as in effect from time to time in such state.

"<u>WINC DTC Acquisition</u>" means the acquisition by Borrower, as buyer, of the Transferred Assets (as defined in the Winc DTC APA) of Lender, as a seller, in accordance with the terms and conditions set forth in the WINC DTC APA.

"<u>WINC DTC APA</u>" means that certain Asset Purchase Agreement, dated as of [_ ], by and among, Borrower, as buyer, Lender, as a seller, and certain other parties thereto in connection with the WINC DTC Acquisition.

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (iv) all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Note and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any right or interest in or to assets and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

<sup>1</sup> Subject to AMASS/Cooley review

**EXHIBIT B**

**CERTAIN COLLATERAL RIGHTS**

Upon the occurrence and during the continuance of a Major Event of Default, the Borrower agrees that the Lender may cause all or any of the Collateral to be transferred into its name or into the name of its custodians or nominees.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender may, but without obligation to do so, demand, sue for and/or collect any money or property at any time due, payable or receivable, to which it may be entitled hereunder, on account of, or in exchange for, any of the Collateral and shall have the right, for and in the name, place and stead of the Borrower, to execute endorsements, assignments or other instruments of conveyance or transfer with respect to all or any of the Collateral.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender shall have the right at any time thereafter to sell, resell, assign and deliver all or any of the Collateral in one or more parcels at any exchange or broker's board or at a public or private sale. Any such sale shall be conducted in good faith and in a "commercially reasonable" manner within the meaning of any applicable uniform commercial code. The Borrower agrees that, to the extent notice of sale shall be required by law, at least ten (10) days' prior written notice to the Borrower of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.

The Borrower hereby authorizes the Lender to file at any time and from time to time to file one or more financing or continuation statements and amendments thereto, relating to the Collateral (including, without limitation, any such financing statements that (i) describe or identify the Collateral by type or in any other manner as the Lender may determine, and (ii) contain any other information required by Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment).

The Borrower shall, from time to time, (i) immediately take all actions as may be requested by the Lender to perfect the security interest of the Lender in the Collateral, including, without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106 and 9-106 of the UCC, and (ii) immediately take all actions as may be reasonably requested from time to time by the Lender so that control of such Collateral is obtained and at all times held by the Lender. All of the foregoing shall be at the sole cost and expense of the Borrower.

The Borrower agrees that at any time and from time to time, at the expense of the Borrower, the Borrower will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary, or that the Lender may reasonably request, in order to perfect and protect any security interest granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

If the Borrower fails to perform any obligation contained in this Note, the Lender may itself perform, or cause performance of, such obligation, and the expenses of the Lender incurred in connection therewith shall be payable by the Borrower; provided that the Lender shall not be required to perform or discharge any obligation of the Borrower. The Borrower hereby appoints the Lender as each Borrower's attorney-in-fact, with full authority in the place and stead of the Borrower and in the name of the Borrower or otherwise, from time to time during the continuance of an Event of Default in the Lender's discretion to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Note (but the Lender shall not be obligated to and shall have no liability to the Borrower or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

The Lender shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable care. The Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Lender accords its own property, it being understood that the Lender shall not have any responsibility for (i) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Lender has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Collateral. Nothing set forth in this Note, nor the exercise by the Lender of any of the rights and remedies hereunder, shall relieve the Borrower from the performance of any obligation on the Borrower's part to be performed or observed in respect of any of the Collateral.

The Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Lender to or for the credit or the account of the Borrower against any and all of the Obligations, irrespective of whether or not the Lender shall have made any demand for payment and although such Obligations may be unmatured. The rights of the Lender under the immediately preceding sentence are in addition to other rights and remedies (including, without limitation, other rights of set-off) that the Lender may have.

**Exhibit** **B**

**Form of Sub Note**

 

*[Attached.]*

PAYMENT AND THE EXERCISE OF REMEDIES WITH RESPECT TO THIS NOTE ARE RESTRICTED AND SUBORDINATE IN RIGHT OF PAYMENT AS SET IN SECTION X BELOW.

PAYMENT WITH RESPECT TO THIS NOTE IS SUBJECT TO SETOFF, ADJUSTMENT AND OTHER TERMS AND RESTRICTIONS AS SET FORTH IN SECTION X BELOW AND IN THE WINC DTC APA (AS DEFINED BELOW). ALL PROVISIONS OF THE WINC DTC APA ARE HEREBY INCORPORATED HEREIN BY REFERENCE.

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>ACT</u>"), OR ANY COMPARABLE STATE SECURITIES LAW, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER. IN ADDITION, NOTE IS SUBJECT TO CERTAIN TRANSFER RESTRICTIONS CONTAINED HEREIN AND IN THE WINC DTC APA.

SECURED SUBORDINATED PROMISSORY NOTE

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| | |
|:---|:---|
| $4000000 | June <u>[ ]</u>, 2023 |

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FOR VALUE RECEIVED, Full Glass - Winc, LLC, a Delaware limited liability company (the "<u>Borrower</u>"), HEREBY PROMISES TO PAY to the order of AMASS Brands Inc (the "<u>Lender</u>") (i) the principal sum of Four Million Dollars ($4,000,000) less the amount of adjustments deducted from the principal amount of this Note pursuant to Section 2.1 of the WINC DTC APA ("<u>Principal Amount</u>"), in accordance with the terms set forth in this Note (this "<u>Note</u>"), and (ii) interest on any and all principal amounts remaining unpaid hereunder from time to time outstanding, from the date hereof until such principal amounts become due, at the rate, and in accordance with the terms, indicated below. Holdings shall be a party to this Note solely for purposes of the covenant set forth in Section VI(v) below.

This Note (i) is issued pursuant to WINC DTC APA, and is the "<u>Sub Note</u>" referred to in the WINC DTC APA; and (ii) in addition to the terms hereof, is subject to and governed by the terms of the WINC DTC APA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **The Loan.** Subject to the terms and conditions hereof, the Lender shall make an advance available to the Borrower on the Effective Date, in the Principal Amount as provided in the WINC DTC APA (the "<u>Loan</u>"). The entire outstanding principal amount of the Loan, together with all accrued and unpaid interest thereon, shall be immediately due and payable in full in immediately available funds on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **Terms of the Note.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Interest.** This Note shall bear interest on the principal amount hereof from time to time outstanding, from the date hereof until the Loan is repaid in full, the rate of eight percent (8.00%) per annum. Interest on this Note shall, on the last Business Day of each fiscal quarter of Borrower (commencing with the fiscal quarter ending September 30, 2023) be capitalized and added to the principal balance of the Loan and shall, as principal, thereafter bear interest pursuant to this Article II and shall be due and payable in full in immediately available funds on the Maturity Date. To the extent permitted by law, if any Event of Default occurs, this Note shall bear interest from the date such Event of Default occurs until such Event of Default is waived in writing, at a rate per annum equal to the interest rate in effect plus five percent (5.00)% per annum (the "<u>Default Rate</u>"). Interest at the Default Rate shall be payable on demand. All interest shall be computed on the basis of a year of 360 days for the actual number of days elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Evidence of Loan.** This Note evidences the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Payments on Business Day.** If any amount payable hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Lender's Office.** Principal, interest and all other amounts due hereunder are payable in lawful money of the United States of America and in immediately available funds at the offices of the Lender located at its address as set forth on its signature page hereto, or at such other place as the Lender shall designate in writing to the Borrower from time to time. All payments under this Note will be made without setoff, counterclaim or other defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Optional Prepayments.** The Borrower may, at its option and upon not less than three (3) Business Days' prior written notice to the Lender (or such shorter time as Lender may agree), prepay the Loan, in whole at any time or in part from time to time, without penalty, subject to the payment of all accrued interest to the date of such prepayment on the amount prepaid, <u>provided</u> that each partial voluntary prepayment shall be in a principal amount equal to $100,000 or an integral multiple thereof, or the entire remaining balance. Each notice of prepayment shall be irrevocable and shall specify the date and the amount of the prepayment of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Use of Proceeds.** The Loan is a portion of the WINC DTC Acquisition purchase price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Offset and Indemnification.** If at any time prior to payment in full of this Note by Borrower, Lender or any Seller incurs any obligations to Borrower, or any of its Affiliates or Representatives pursuant to Article VIII of the WINC DTC APA, Borrower has the right to offset and reduce the Unpaid Note Amount (as defined in the WINC DTC APA) in accordance with Section 8.5 of the WINC DTC APA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Definitions; Rules of Construction.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms used herein shall have the meaning as set forth in Exhibit A hereto or, if not so defined, in the WINC DTC APA. Capitalized terms used herein and not defined in Exhibit A or the WINC DTC APA shall have the meaning as defined in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rules of construction set forth in Exhibit A shall apply to any interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **Collateral.** As collateral security for all Obligations of the Borrower now or hereafter evidenced by this Note, and to secure the due and punctual payment and performance of such Obligations to the Lender, the Borrower hereby grants, pledges and collaterally assigns to the Lender a lien on and security interest in all Collateral (as defined in Exhibit A hereto). The Borrower hereby agrees to the terms set forth in Exhibit B, including, without limitation, the Lender's rights with respect to the Collateral following an Event of Default as set forth in Exhibit B subject to Section X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **Representations.** The Borrower represents and warrants to Lender as of the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower has the legal capacity and right to execute, deliver and perform this Note and each other Note Document and the Borrower is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of their respective business or its ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower's business or operations.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the execution, delivery and performance by the Borrower of this Note and each other Note Document does not contravene any law or any contractual restriction binding on or affecting the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Governmental Approval or other authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Borrower of any Note Document, except for the filing of the financing statement under the Uniform Commercial Code in the jurisdiction of organization of Borrower and the filing of the IP Security Agreements with the USPTO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Note constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there is no pending or threatened action or proceeding affecting the Borrower before any Governmental Authority or arbitrator that (i) if adversely determined could reasonably be expected to have a Material Adverse Effect or (ii) relates to this Note or any of the other Note Documents or any transaction contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower is not liable with respect to any indebtedness for borrowed money other than indebtedness pursuant to this Note and the Senior Note; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Collateral</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;(1) the security interest granted herein is and shall at all times continue to be a perfected security interest in the Collateral subject to the Senior Liens as set forth in Section X 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;(2) Each of Borrower's Collateral Accounts is set forth on Schedule V(g)(2) attached hereto and Borrower has taken such actions as are necessary to give Lender a perfected security interest therein, pursuant to the terms of Section VI(m). The Accounts are bona fide, existing obligations of the Account Debtors; 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;(3) The Collateral is maintained at locations provided in Schedule V(g)(3) attached hereto or as permitted pursuant to Section VI(t).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Covenants.** So long as any Obligations shall remain outstanding, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not create, incur, assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to any indebtedness for borrowed money other than (i) Senior Indebtedness, (ii) indebtedness in favor of the Lender, (iii) in connection with the Inventory Transaction, (iv) indebtedness for operating and capital leases, (v) other unsecured indebtedness not senior to the Loan so long as Lender has provided its prior written consent to the incurrence of such indebtedness (which consent shall not be unreasonably withheld, conditioned or delayed), and (vi) other indebtedness not otherwise permitted in an aggregate amount not to exceed $500,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not incur, create, assume or suffer to exist any Lien on any of the Collateral (including any Lien on any owned real property or upon the Borrower's leasehold interests in any leased real property) or the proceeds thereof, other than (i) Liens with respect to the Collateral created hereby, (ii) liens securing the Senior Indebtedness, and (iii) other Liens not otherwise permitted hereunder securing indebtedness in an aggregate amount not to exceed $500,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not sell, convey, transfer, lease or dispose of (whether in one transaction or in a series of transactions) any of the Collateral other than (i) sales of inventory and used assets in the ordinary course of business consistent with the past practices of Sellers, (ii) disposition of obsolete or spoiled inventory, obsolete equipment and (iii) other transfers or dispositions in an amount not to exceed $500,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp;(e) reserved

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) at the Borrower's expense, defend the Lender's right, title and security interest in and to the Collateral against the claims of any other Person other than for deficiencies caused by Sellers or that exist as of immediately prior to the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) subject to the provisions set forth in Section X below, at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Lender may reasonably request in order to perfect and protect, or maintain the perfection of, the security interest and lien purported to be created hereby, or (ii) enable the Lender to exercise and enforce its rights and remedies hereunder in respect of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) not take any action which would in any manner reasonably be expected to impair the value or enforceability of the Lender's security interest in and lien on any Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain its legal existence (subject to Section VI(s) and good standing in its jurisdiction of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower's business or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) comply in all material respects with all laws, ordinances and regulations to which it is subject, obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under this Note and the other Note Documents, including any grant of a security interest to Lender, except where the failure to comply or have Governmental Approvals would not have a material adverse effect on Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Reporting</u>. Deliver to Lender the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As soon as available, but no later than forty-five days after the last day of each quarter, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations for such quarter in a form reasonably acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) reserved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) As soon as available, and in any event within 120 days following the end of Borrower's fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Lender; provided, however, if the Borrower's board of directors or similar governing authority does not require Borrower to prepare audited financial statements, Borrower shall instead deliver to Lender within 90 days following the end of Borrower's fiscal year, a company prepared balance sheet and income statement covering Borrower's consolidated operations for such fiscal year in a form reasonably acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower that could reasonably be expected to result in damages or costs to Borrower of, individually or in the aggregate, $25,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) If Borrower shall acquire a commercial tort claim, with a value in excess of $25,000, Borrower shall promptly notify Lender in a writing signed by Borrower of the general details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Note, with such writing to be in form and substance reasonably satisfactory to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Prompt written notice of the occurrence of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Note Documents as reasonably requested by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Prompt written notice of any applications or registrations of Intellectual Property not already disclosed on Schedule V(g)(5) attached hereto, including the date of such filings and the applicable application or registration numbers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) permit, at reasonable times following and during the continuance of an Event of Default, Lender, or its agents, to inspect the Collateral and the right to audit and copy Borrower's Books subject to Borrower's reasonable security and confidentiality requirements;;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance</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;(1) Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower's industry and location and as Lender may reasonably request. Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are reasonably satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All property policies shall have a lender's loss payable endorsement showing Lender as lender loss payee. All liability policies shall show, or have endorsements showing, Lender as an additional insured. Lender shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Ensure that proceeds payable under any property policy are, at Lender's option, payable to Lender on account of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) At Lender's request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments. Each provider of any such insurance required under this Section V(l)(4) shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Lender, that it will give Lender twenty (20) days (ten (10) days for any cancellation due to non-payment of any premium) days prior written notice before any such policy or policies shall be canceled. If Borrower fails to obtain insurance as required under this Section V(l)(4) or to pay any amount or furnish any required proof of payment to third persons and Lender, Lender may make all or part of such payment or obtain such insurance policies required in this Section V(l)(4), and take any action under the policies Lender deems prudent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Borrower shall provide Lender five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Lender or Lender's Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution at or with which any Collateral Account is maintained to within 45 days of account opening to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Lender's Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Protection of Intellectual Property Rights</u>. Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (i) Protect, defend and maintain the validity and enforceability of Borrower's Intellectual Property, except to the extent that such failure to do so would not reasonably be expected to have a material adverse effect on Borrower's business or operations; (ii) promptly advise Lender in writing of infringements or any other event that could reasonably be expected to materially and adversely affect the value of Borrower's Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower's business to be abandoned, forfeited or dedicated to the public without Lender's 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;(2) Provide written notice to Lender within ten (10) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public) not acquired from Lender under the WINC DTC APA other than with Lender and its affiliates or pursuant to the Bill of Sale and Intellectual Property Licensing Agreement, Borrower shall take such steps as Lender requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any such Restricted License to be deemed "Collateral" and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Lender to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Lender's rights and remedies under this Note and the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) at the time that Borrower forms any Subsidiary or acquires any Subsidiary after the Effective Date, Borrower shall (a) cause such new Subsidiary to provide to Lender a joinder to this Note and the Note Documents to become a co-borrower hereunder (as determined by Lender in its sole discretion), together with documentation, all in form and substance satisfactory to Lender (including being sufficient to grant Lender a first priority Lien in and to the assets of such newly formed or acquired Subsidiary), (b) provide to Lender appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Lender; and (c) provide to Lender all other documentation in form and substance satisfactory to Lender, including one or more opinions of counsel satisfactory to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section shall be a Note Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) subject to the Inventory Transaction, keep all Inventory in good and marketable condition, free from material defects subject to any defects or lack of good condition or title existing immediately prior to the Effective Date. Returns and allowances between Borrower and its Account Debtors shall follow Borrower's customary practices as they exist at the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) not directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for (i) transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a nonaffiliated Person and (ii) the acquisition of the Wine Insiders business from Drinks Inc., an Affiliate of Borrower (the "<u>Drinks Acquisition</u>"), so long as either (A) the Lender has provided its prior written consent approving the Drinks Acquisition, or (B) all Obligations (as defined in the Senior Note) under the Senior Note have been paid in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) not merge or consolidate with any other Person, or acquire all or substantially all of the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person unless (i) the Borrower has received Lender's prior written consent to consummate such merger or consolidation r, and (ii) no Event of Default has occurred and is continuing. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) not (i) become an "investment company" or a company controlled by an "investment company", under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of the Loan for that purpose; (ii)(A) fail to meet the minimum funding requirements of ERISA, (B) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, (C) fail to comply with the Federal Fair Labor Standards Act or (D) violate any other law or regulation, if the foregoing subclauses (A) through (D), individually or in the aggregate, could reasonably be expected to have a material adverse effect on Borrower's business or operations; or (iii) withdraw or permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) not (i) engage in any business other than the businesses currently engaged in by Borrower or as disclosed to Lender or a business reasonably related thereto; (ii) permit, allow or suffer to occur any Change in Control; or (iii) without at least 30 days prior written notice to Lender, (1) add any new offices or business locations, including warehouses or deliver any portion of the Collateral to a bailee at a location other than to a bailee and at a location already disclosed in Schedule V(g)(3) attached hereto, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to add any new offices or business locations, including warehouses, then Borrower shall cause the landlord of any such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance reasonably satisfactory to Lender. If Borrower intends to deliver any portion of the Collateral to a bailee, and Lender and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower shall cause such bailee to execute and deliver a bailee agreement in form and substance reasonably satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Holdings shall not engage in any material business activity or have any operations other than (i) the ownership of Borrower, (ii) activities incidental to the maintenance of its existence and compliance with applicable laws and legal, tax and accounting matters related thereto, and (iii)(A) activities incidental to the Drinks Acquisition (subject to the requirements and conditions set forth in Section VI(r)(ii) above), and (B) similar acquisition activities, and activities related to seeking debt or equity financing. Notwithstanding the foregoing, Holdings shall be permitted to acquire all or substantially all of the assets, stock, partnership, membership or other ownership interest of another Person so long as in the case of the Drink's Acquisition or another similar transaction that is first consummated, Holdings has received Lender's prior written consent, which consent shall not be unreasonably withheld conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Post-Closing Covenant</u>. As soon as reasonably practicable, but in any event within thirty (30) days after the Effective Date, Borrower shall deliver, or cause to be delivered, executed Control Agreements for the Borrower's applicable Deposit Accounts, Securities Accounts, or Commodity Accounts in favor of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **Conditions Precedent to the Loan.** Lender's obligation to make the Loan is subject to the condition precedent that Lender shall have received, in form and substance satisfactory to Lender, such documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A duly executed copy of this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) duly executed copies of the Note Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Governing Documents of Borrower and good standing certificates of Borrower certified by the Secretary of State of the State of Delaware and the Secretary of State (or equivalent agency) of each other jurisdiction in which Borrower is qualified to conduct business where the failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect, in each case as of a date no earlier than 30 days prior to the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a certificate duly executed by a authorized officer or secretary of Borrower with respect to Borrower's (1) Governing Documents and (2) resolutions authorizing Borrower to enter into this Note, the other Note Documents, and the transactions contemplated herein and therein executed by Borrower's governing authority in accordance with its Governing Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) certified copies, dated as of a recent date, of searches for financing statement filed in the central filing office of the State of Delaware, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements are either permitted by the terms of this Note or have been or, in connection with the Loan, will be terminated or released.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. **Events of Default.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Major Event of Default shall occur then the Lender may by written notice to the Borrower (i) terminate any commitments to make any further Loans (if any) and declare the outstanding principal amount of this Note and all other amounts due hereunder to be immediately due and payable, whereupon the outstanding principal amount of this Note and all such other amounts, shall become and shall be forthwith due and payable, without diligence, presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, and (ii) exercise any and all of its other rights under applicable law, hereunder and under the other Note Documents; <u>provided</u>, <u>however</u>, that upon the occurrence of any Event of Default described in clause (e) of the definition of "Event of Default", without any notice to the Borrower or any other Person or any act by the Lender, all commitments to make any further Loans (if any) shall automatically terminate, all Loans then outstanding, together with all accrued and unpaid interest thereon, all fees and all other amounts due under this Note and the other Note Documents, shall be accelerated and become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by the Borrower. In addition to the other rights and remedies provided for herein or otherwise available to it, upon any Event of Default, the Lender may exercise all of the rights and remedies of a secured party on default under the UCC, including, without limitation, such rights as are set forth in Exhibit B hereto. All proceeds received following any Event of Default hereunder shall be applied to this Note or any indebtedness arising hereunder or the other Obligations or in conjunction with this Note as the Lender shall determine in its sole and absolute discretion. All of Lenders rights are subject to Section X of this Note

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of an Event of Default that is not a Major Event of Default, regardless of any rights that might be available at law or in equity, Lender's sole remedy is to apply the Default Rate to the outstanding unpaid principal balance of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **Successors and Assigns.** This Note shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns, except that the Borrower may not assign any rights or obligations hereunder or any interest herein without the prior written consent of the Lender (any such assignment being null and void). The Lender may assign to one or more other entities all or a portion of its rights under this Note with the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned); <u>provided</u>, that no such consent shall be required (x) during the continuance of an Event of Default or (y) for any assignments to any Affiliates or related funds of the Lender,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X. Subordination.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All amounts owed by Borrower to Lender, whether currently existing or hereafter arising, including all indebtedness arising under this Note (the "<u>Subordinated Debt</u>"), are hereby subordinated and junior in right of payment to any and all obligations of Borrower to any Senior Creditor (as defined below) in respect of Senior Indebtedness (as defined below) now existing or hereafter arising, together with all costs of collecting such obligations (including attorneys' fees), including, all interest accruing after the commencement by or against Borrower of any bankruptcy, reorganization or similar proceeding. "<u>Senior Indebtedness</u>" shall include all claims by holders of the following (each, a "<u>Senior Creditor</u>") against Borrower whether now outstanding or subsequently created, assumed, guaranteed or incurred, including principal of (and premium, if any), fees and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, Borrower for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to, any and all obligations to banks, lenders, financing sources and other general creditors and secured creditors; (ii) any capital lease obligations of Borrower; (iii) all obligations of Borrower in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (iv) the Senior Note and (v) all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; *except* "Senior Indebtedness" does not include (A) this Note, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, this Note or (C) any indebtedness between Borrower and any of its subsidiaries or Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any security interest or lien securing any or all of the Subordinated Debt (the "<u>Subordinated Liens</u>") is hereby junior and subordinated to any security interest or lien securing any or all of the Senior Indebtedness, whether now existing or hereafter arising (the "<u>Senior Liens</u>"), and notwithstanding the respective dates of attachment or perfection of the Subordinated Liens or the Senior Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Until the indefeasible repayment in full of the Senior Indebtedness and the termination of any Senior Creditor's commitment to extend Senior Indebtedness to the Borrower, (A) Lender shall not be entitled to receive or retain any payment, distribution or compensation of any kind, including by setoff or otherwise, in respect of the Subordinated Debt, any collateral securing such Subordinated Debt or on account of the Subordinated Liens, and (B) Lender shall take no action at law or equity, to enforce or otherwise compel payment by the Borrower on account of the Subordinated Indebtedness or to enforce or foreclose upon or take any action in furtherance of the Subordinated Liens, including, without limitation, accelerating the Subordinated Indebtedness, or filing any claim, action or proceeding in respect of the Subordinated Indebtedness or the Subordinated Liens. Any payments received by Lender of any form or kind in violation of the subordination provisions of this Note shall be held in trust and immediately turned over to Senior Creditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Lender hereby acknowledges and agrees that (i) Lender shall not contest, challenge or dispute the validity, attachment, perfection, priority or enforceability of Senior Creditor's security interest in the Collateral, or the validity, priority or enforceability of the Senior Indebtedness, and (ii) the provisions of this Note will apply fully and unconditionally even in the event that Senior Creditor's security interest in the Collateral (or any portion thereof) are unperfected or if perfection lapses or ceases for any reason. Senior Creditor hereby acknowledges and agrees that Senior Creditor shall not contest, challenge or dispute the validity, attachment, perfection, or enforceability of Lender' security interests in the Collateral, or the validity or enforceability of the Subordinated Debt (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any liquidation of Borrower or any assets or property of the Borrower, holders of Senior Indebtedness of Borrower shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Note. Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to Borrower, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on this Note. In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, Lender together with the holders of any obligations of Borrower ranking on a parity with this Note, shall be entitled to be paid from the remaining assets of Borrower the unpaid principal thereof, and the accrued but unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms is expressly junior to in the right of payment to this Note, (ii) with respect to any indebtedness between Borrower and any of its subsidiaries or Affiliates or (iii) on account of any capital stock of Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing herein shall act to prohibit, limit or impede Borrower from issuing additional debt of Borrower having the same rank as this Note or which may be junior or senior in rank to this Note. The Lender, by its acceptance hereof, agrees to and shall be bound by the provisions of this <u>Section X</u>. The Lender, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of this Note, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Lender agrees to execute and deliver to any holder of Senior Indebtedness any subordination agreement or similar agreement or document requested by a Senior Creditor provided it is consistent with terms of this Section X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XI. **Miscellaneous.** (a) All notices or other communications provided for hereunder shall be in writing (including telecommunications) and shall be mailed, telecopied, e-mailed or delivered to the Borrower at the address set forth next to the Borrower's signature, or at such other address as may hereafter be specified by the Borrower to the Lender (at its address set forth herein) in writing. All notices and communications shall be effective (i) if mailed, when received at the address specified above, (ii) if telecopied, when transmitted, (iii) if e-mailed, upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment) and (iv) if delivered, upon delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure on the part of the Lender to exercise, and no delay in exercising, any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof by the Lender preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy of the Lender. No amendment or waiver of any provision of this Note, nor consent to any departure by the Borrower or Lender therefrom, shall in any event be effective unless the same shall be in writing and signed by the other party, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such 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;(d) The Borrower hereby agrees to pay promptly after invoicing thereof all costs and expenses (including, without limitation, all reasonable fees, expenses and other client charges of counsel to the Lender) incurred by the Lender in connection with the enforcement of the Lender's rights, and the collection of all amounts due, hereunder. The obligations of the Borrower under this clause (d) shall survive the payment in full of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary set forth in this Note, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the "<u>Maximum Lawful Rate</u>"), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Borrower shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Lender is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Effective Date as otherwise provided in this Note. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in Section II, unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by the Lender pursuant to the terms hereof exceed the amount that the Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section XI(e), a court of competent jurisdiction shall finally determine that the Lender has received interest hereunder in excess of the Maximum Lawful Rate, the Lender shall, to the extent permitted by applicable law, promptly apply such excess to the payment of other outstanding Obligations and thereafter shall refund any excess to the Borrower or as a court of competent jurisdiction may otherwise order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Note and the other Note Documents as collateral security to secure obligations of the Lender, Affiliates of the Lender or funds or accounts managed by the Lender or an Affiliate of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower and Lender hereby (i) irrevocably submits to the nonexclusive jurisdiction of any Delaware State or Federal court sitting in Delaware in any action or proceeding arising out of or relating to this Note, (ii) waives any defense based on doctrines of venue or <u>forum non conveniens</u>, or similar rules or doctrines, and (iii) irrevocably agrees that all claims in respect of such an action or proceeding may be heard and determined in such Delaware State or Federal court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) THE BORROWER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY ANY MEANS PERMITTED BY APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT THE BORROWER'S ADDRESS FOR NOTICES AS SET FORTH ON THE SIGNATURE PAGE HERETO, SUCH SERVICE TO BECOME EFFECTIVE 5 DAYS AFTER SUCH MAILING.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) THE BORROWER AND THE LENDER (BY ITS ACCEPTANCE HEREOF) MUTUALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.**

**[SIGNATURE PAGE FOLLOWS]**

---

| |
|:---|
| BORROWER: |
| **FULL GLASS - WINC, LLC** |
| By: |
| Name: Louis A. Amoroso |
| Title: Chief Executive Officer |

---

HOLDINGS (Solely for the purposes of Section VI(v) and in no other capacity):

**FULL GLASS WINE CO., LLC**

By:   <br> Name: <br> Title:

Address:

[\*\*\*]

Attn: Louis A. Amoroso

Email: Louis@drinks.com

Signature Page to Secured Subordinated Promissory Note

Accepted and agreed:

**AMASS BRANDS INC**

  <br> Name: Mark T. Lynn <br> Title: Chief Executive Officer

Address:

AMASS Brands Inc

927 South Santa Fe Avenue

Los Angeles, California 90021

mark@amass.com

Signature Page to Secured Subordinated Promissory Note

SCHEDULE V(g)(2)

Collateral Accounts

---

| | | |
|:---|:---|:---|
| Institution Name and Address | Account Number | Name of Account Owner |
| Wintrust | [<u> </u>] | Full Glass - Winc, LLC |

---

SCHEDULE V(g)(3)

Location of Collateral

**For the period under the TSA**

**AMASS (WINC)**

WEST COAST DISTRIBUTION CENTER

850 E Stowell Rd.

Santa Maria, CA 93454

EAST COAST DISTRIBUTION CENTER

1515 Garnet Mine Rd.

Garnet Valley, PA 19060

**Following TSA Term**

**Wine** **SHIPPING**

NY

Vingo/ DRINKS 140 Aker Dr

Cobleskill, NY. 12043

MO

Vingo/ DRINKS

13600 Shoreline Drive, Suite 900

Earth City, MO 63045

CA

Vingo/DRINKS - 24-7 Enterprises

700 Crocker Drive

Vacaville, CA 95688

SCHEDULE V(g)(5)

Intellectual Property

Trademarks

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App.**<br> **No./Reg.**<br> **No.** | **Class / Goods** |
| **United States of America** | **Full Glass - Winc, LLC** | **#TBT** | **Registered** | **4785880** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **ALMA LIBRE** | **Registered** | **4828877** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **ATAVIST** | **Registered** | **4828858** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **AU-DELÀ** | **Registered** | **4985275** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **BIG BEAT** | **Registered** | **4796870** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **BOKETTO** | **Pending** | **88722219** | **33 Sake** |
| **United States of America** | **Full Glass - Winc, LLC** | **Brethren of the Road** | **Registered** | **4689816** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **CASA DE LILA** | **Pending** | **90897917** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **CHOMMI E** | **Registered** | **4988821** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **DÉCLASS E** | **Registered** | **5073314** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **DIVINER** | **Registered** | **5347935** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **ENDGAM E** | **Registered** | **4864507** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **FINKE'S WIDOW** | **Registered** | **5197280** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **FOG LAND** | **Registered** | **4814764** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **FORMA DE VIDA** | **Pending** | **97461706** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **FUNK ZONE** | **Registered** | **4733318** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **GOLDEN CHILD** | **Registered** | **6640189** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **HONEY BEAST** | **Registered** | **5142393** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **HOUSE OF LUCK** | **Registered** | **6599173** | **33 Sake** |
| **United States of America** | **Full Glass - Winc, LLC** | **IDEE FIXE** | **Registered** | **4842289** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **IF A TREE FALLS** | **Registered** | **5004566** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **KIN + COUNTRY** | **Registered** | **4765964** | **33 Wine** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App.**<br> **No./Reg.**<br> **No.** | **Class / Goods** |
| **United States of America** | **Full Glass - Winc, LLC** | **LA MULETA** | **Registered** | **4864499** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **L'ATELIE R DU SUD** | **Registered** | **4753309** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **LAUGHIN G OWL** | **Registered** | **4864511** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **LE FERMIER** | **Pending** | **97329797** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **LIGHT & SPACE** | **Registered** | **6009175** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **LIKELIHO OD OF CONFUSI ON** | **Registered** | **4988823** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **LOVES ME NOT** | **Registered** | **5293657** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **MATCHL OCK** | **Registered** | **5417171** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **OBJET D'ART** | **Registered** | **5166174** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **ONE FROM THE QUIVER** | **Pending** | **90870209** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **PRETTY YOUNG THING** | **Registered** | **4762003** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **PRISMUS** | **Registered** | **4761999** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **QTY** | **Registered** | **5197235** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **RESTLESS EARTH** | **Registered** | **5197040** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **ROME OF THE NORTH** | **Registered** | **6840849** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **RUZA** | **Registered** | **4814797** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **SALIENT** | **Registered** | **4746631** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **SO THIS HAPPENE D...** | **Registered** | **4733319** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **SUPERCL USTER** | **Registered** | **4762004** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **THE BLUFFER** | **Registered** | **4924159** | **33 Wine** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App.**<br> **No./Reg.**<br> **No.** | **Class / Goods** |
| **United States of America** | **Full Glass - Winc, LLC** | **THE INDEPENDENT** | **Registered** | **4825091** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **VILLE BASSE** | **Registered** | **4711882** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **WINC** | **Registered** | **5143508** | **45 Preparation of customized gift sets** |
| **United States of America** | **Full Glass - Winc, LLC** | **WINC** | **Registered** | **5086799** | **35 Online store and retail store services featuring wine; administering a wine club by means of**<br> **providing select wines for members to purchase and arranging periodic shipments of wines to club members** |
| **United States of America** | **Full Glass - Winc, LLC** | **ZWICKER** | **Registered** | **4878574** | **33 Wine** |
| **United States of America** | **Full Glass - Winc, LLC** | **CLUB W** | **Registered** | **4176945** | **35 On-line retail store services featuring wine 39 wine club services featuring periodic shipments of wine to members 43 Providing a web site where users can post ratings, reviews and recommendations on wines for wine**<br> **appreciation purposes** |

---

Patents

None

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title** | **App. No.** | **Applicat ion Date** | **Publication**<br> **Date/Issue Date** | **Publication**<br> **Number/Pat** <br> **ent Number** | **Company** |

---

Copyrights

None

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **App. No.** | **Applicat** <br> **ion Date** | **Reg. No.** | **Reg. Date** | **Company** |

---

**EXHIBIT A**

**DEFINITIONS**

"<u>Account</u>" is, as to any Person, any "account" of such Person as "account" is defined in the UCC with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to such Person.

"<u>Account Debtor</u>" is any "account debtor" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Affiliate</u>" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of equity interests, by contract, or otherwise.

"<u>Borrower's Books</u>" are all Borrower's books and records including ledgers, federal and state tax returns, records regarding Borrower's assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close.

"<u>Change in Control</u>" means (a) at any time, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of 25.0% or more of the ordinary voting power for the election of directors, partners, managers and members, as applicable, of Borrower (determined on a fully diluted basis), (b) during any period of 12 consecutive months, a majority of the members of the board of directors or similar governing authority of Borrower cease to be composed of individuals (1) who were members of that board or equivalent governing body on the first day of such period, (2) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (1) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (3) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (1) and (2) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; of Borrower; or (c) at any time Borrower shall cease to own and control, of record and beneficially, directly or indirectly, 100.0% of each class of outstanding stock, partnership, membership, or other ownership interest or other equity securities of each Subsidiary of Borrower free and clear of all Liens.

"<u>Collateral</u>" shall mean, with respect to any Person, all personal property and Fixtures of such Person, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Chattel Paper (whether Electronic Chattel Paper or Tangible
Chattel Paper);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Commercial Tort Claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise
credited thereto and the monies and property in the possession or under the control of any Lender or any of their respective affiliates,
representatives, agents, participants or correspondents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all General Intangibles (including, without limitation, all Payment Intangibles, intellectual property
(including, without limitation, all intellectual property described in the IP Security Agreements) and licenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Goods, including, without limitation, all Equipment, Fixtures
and Inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all Instruments (including, without limitation, Promissory Notes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Investment Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Supporting Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all fee interests in any owned real property and all leasehold
interests in real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all other tangible and intangible personal property and Fixtures of such Person (whether or not subject
to the UCC), including, without limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products,
offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of such Person described
in the preceding clauses (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties
now or hereafter held by such Person in respect of any of the items listed above), and all books, correspondence, files and other Records,
including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of
such Person or any other Person from time to time acting for such Person that at any time evidence or contain information relating to
any of the property described in the preceding clauses of this definition or are otherwise necessary or helpful in the collection or realization
thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing
Collateral;

in each case howsoever such Person's interest therein may arise or appear (whether by ownership, security interest, claim or otherwise). For the avoidance of doubt, as used in this definition the following terms shall have the respective meanings provided for in the Code: "Accounts", "Cash Proceeds", "Chattel Paper", "Commercial Tort Claim", "Commodity Account", "Commodity Contracts", "Deposit Account", "Documents", "Electronic Chattel Paper", "Equipment", "Fixtures", "General Intangibles", "Goods", "Instruments", "Inventory", "Investment Property", "Letter-of-Credit Rights", "Noncash Proceeds", "Payment Intangibles", "Proceeds", "Promissory Notes", "Record", "Security Account", "Software", "Supporting Obligations" and "Tangible Chattel Paper".

"<u>Collateral Account</u>" is any Deposit Account, Securities Account, or Commodity Account.

"<u>Commodity Account</u>" is any "commodity account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Control Agreement</u>" is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Lender pursuant to which Lender obtains control (within the meaning of the UCC) over such Deposit Account, Securities Account, or Commodity Account.

"<u>Copyrights</u>" are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

"<u>Default</u>" means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

"<u>Deposit Account</u>" is any "<u>deposit account</u>" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Dollar</u>," "<u>Dollars</u>" and the symbol "$" each means lawful money of the United States of America.

"<u>Effective Date</u>" shall mean June [ ], 2023.

"<u>ERISA</u>" is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

"<u>Event of Default</u>" shall mean the occurrence and/or continuance of any one of the following:

&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>Payment Default</u>. Borrower fails to (i) make any payment of principal or interest on the Loan on
its due date, or (ii) pay any other Obligations within ten (10) Business Days after such Obligations are due and payable (which ten(10)
Business Day cure period shall not apply to payments due on the Maturity Date). During the cure period, the failure to make or pay any
payment specified under clause (ii) hereunder is not an Event of Default (but no advances will be made during the cure period);

&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>Covenant Default</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;a. Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant
or agreement contained in this Note or any of Note Document, and as to any default (other than those specified in this definition of "Event
of Default") under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default
within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten
(10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to
be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed 30 days) to attempt
to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but
no advances shall be made during such cure period);;

&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>Material Adverse Effect</u>. A Material Adverse Effect occurs;

&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>Attachment; Levy; Restraint on Business</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;a. (i) the service of process seeking to attach, by trustee or similar process, any funds of Borrower in
excess of $100,000, or (ii) a notice of lien or levy is filed against any of Borrower's assets by any Governmental Authority, and
the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether
through the posting of a bond or otherwise); provided, however, no advances shall be made during any ten (10) day cure period; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. (i) any material portion of Borrower's assets is attached, seized, levied on, or comes into possession
of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of
its 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;(e) <u>Insolvency</u>. (i) Borrower is unable to pay its debts (including trade debts) as they become due
other, or otherwise becomes insolvent under Delaware law; (ii) Borrower begins an Insolvency Proceeding; or (iii) an Insolvency Proceeding
is begun against Borrower and is not dismissed or stayed within 45 days (but no advances shall be made while any of the conditions described
in clause (i) exist or until any Insolvency Proceeding is dismissed);

&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>Other Agreements</u>. There is, under any agreement to which Borrower is a party with a third party
or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity
of any indebtedness in an amount individually or in the aggregate in excess of $250,000; or (b) any breach or default by Borrower, the
result of which could have a material adverse effect on Borrower's business or operations;

&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>Judgments; Penalties</u>. One or more fines, penalties or final judgments, orders or decrees for the
payment of money in an amount, individually or in the aggregate, of at least $100,000 (not covered by independent third-party insurance
as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower by any Governmental Authority, and
the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or after execution thereof, or stayed
pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no advances will be made
prior to the discharge, or stay of such fine, penalty, judgment, order or decree);

&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>Misrepresentations</u>. Borrower makes any representation, warranty, or other statement now or later
in this Note or any Note Document that is incorrect in any material respect when made except where the failure to be correct would not
have a material adverse effect on the Collateral or Borrower's ability to pay the Note;

&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>Lien Priority</u>. There is a material impairment in the perfection or priority of Lender's security
interest in the Collateral caused by Borrower; 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;(j) <u>Governmental Approvals</u>. Any Governmental Approval shall have been (a) revoked, rescinded, suspended,
modified in an adverse manner or not renewed in the ordinary course or (b) subject to any decision by a Governmental Authority that (i)
causes, or would reasonably be expected to cause, a Material Adverse Effect, or (ii) materially adversely affects the legal qualifications
of Borrower to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification
or non- renewal could reasonably be expected to affect the status of or legal qualifications of Borrower to hold any Governmental Approval
in any other jurisdiction.

"<u>Exchange Act</u>" is the Securities Exchange Act of 1934, as amended.

"<u>Governing Documents</u>" means, with respect to any Person, the certificate or articles of incorporation or formation, by-laws, operating agreement, partnership agreement or other organizational documents of such Person.

"<u>Governmental Approvals</u>" means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

"<u>Governmental Authority</u>" means any nation or government, any Federal, state, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Hemispheres</u>" means Hemispheres, LLC.

"<u>Holdings</u>" means FULL GLASS WINE CO., LLC, a Delaware limited liability company.

"<u>Insolvency Proceeding</u>" means any proceeding commenced by or against any Person under any provision of Title 11 of the United States Code, as amended from time to time, or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States or other applicable jurisdiction from time to time in effect.

"<u>Intellectual Property</u>" means, with respect to any Person, all of such Person's right, title, and interest in and to the following:

&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) its Copyrights, Trademarks and Patents;

&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) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented
inventions, know-how and operating manuals;

&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) any and all source code;

&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) any and all design rights which may be available to such Person;

&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) any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not
the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above;
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;(f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

"<u>Inventory Transaction</u>" means the transfer of Borrower's rights to and interest in the inventory acquired under the WINC DTC APA from BWSC to Hemispheres with Borrower's interest reflected in part by a receivable from Hemispheres payable to Borrower.

"<u>IP Security Agreements</u>" means that certain Trademark Security Agreement dated as of the date hereof, by Borrower in favor of Lender.

"<u>Lien</u>" means any mortgage, deed of trust, pledge, lien (statutory or otherwise), security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, any capitalized lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.

"<u>Major Event of Default</u>" means (i) an Event of Default described in paragraph (a) of the definition of Event of Default occurs, (ii) an Event of Default described in paragraph (e) or (j) of such definition occurs;

"<u>Material Adverse Effect</u>" means a material adverse effect on any of (a) the assets, liabilities, or condition (financial or otherwise) of the Borrower, (b) the ability of the Borrower to perform any of its obligations under this Note or any other Note Document, (c) the legality, validity or enforceability of this Note or any other Note Document, (d) the rights and remedies of the Lender under this Note or any other Note Document, or (e) the validity, perfection or priority of a Lien in favor of the Lender on the Collateral.

"<u>Maturity Date</u>" means the earlier to occur of (a) three (3) years from the Effective Date, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

"<u>Note Document</u>" means this Note, the IP Security Agreement, any Control Agreement, and any other agreement, instrument, certificate, report and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing the Loan or any other Obligation.

"<u>Obligations</u>" means all present and future indebtedness, obligations, and liabilities of the Borrower to the Lender as such arising under or in connection with this Note or any other Note Document, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any Insolvency Proceeding. Without limiting the generality of the foregoing, the Obligations of the Borrower under the Note Documents include (a) the obligation (irrespective of whether a claim therefor is allowed in an Insolvency Proceeding) to pay principal, interest, charges, expenses, premiums, fees, attorneys' fees and disbursements, indemnities and other amounts payable by such Person under the Note Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that the Lender (in its sole discretion) may elect to pay or advance on behalf of such Person as permitted under this Note.

"<u>Patents</u>" means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

"<u>Person</u>" means an individual, corporation, limited liability company, partnership, association, joint- stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.

"<u>Restricted License</u>" is any material license or other material agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower's interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with Lender's right to sell any Collateral.

"<u>Securities Account</u>" is any "securities account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Senior Creditor</u>" has the meaning set forth in Section X.

"<u>Senior Indebtedness</u>" has the meaning set forth in Section X.

"<u>Senior Liens</u>" has the meaning set forth in Section X.

"<u>Subordinated Debt</u>" has the meaning set forth in Section X.

"<u>Subordinated Liens</u>" has the meaning set forth in Section X.

"<u>Subsidiary</u>" is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower.

"<u>Tax Distributions</u>" has the meaning set forth in the Amended and Restated Operating Agreement of Borrower as executed by Lender as of or in connection with the Effective Date.

"<u>Trademarks</u>" means, with respect to any Person, any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of such Person connected with and symbolized by such trademarks.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the laws of any other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code as in effect from time to time in such state.

"<u>WINC DTC Acquisition</u>" means the acquisition by Borrower, as buyer, of the Transferred Assets (as defined in the WINC DTC APA) of Lender, as a seller, in accordance with the terms and conditions set forth in the WINC DTC APA.

"<u>WINC DTC APA</u>" means that certain Asset Purchase Agreement, dated as of [<u> </u>], by and among, Borrower, as buyer, Lender, as a seller, and certain other parties thereto in connection with the WINC DTC Acquisition.

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (iv) all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Note and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any right or interest in or to assets and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

**EXHIBIT B**

**CERTAIN COLLATERAL RIGHTS**

Upon the occurrence and during the continuance of a Major Event of Default, the Borrower agrees that the Lender may cause all or any of the Collateral to be transferred into its name or into the name of its custodians or nominees.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender may, but without obligation to do so, demand, sue for and/or collect any money or property at any time due, payable or receivable, to which it may be entitled hereunder, on account of, or in exchange for, any of the Collateral and shall have the right, for and in the name, place and stead of the Borrower, to execute endorsements, assignments or other instruments of conveyance or transfer with respect to all or any of the Collateral.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender shall have the right at any time thereafter to sell, resell, assign and deliver all or any of the Collateral in one or more parcels at any exchange or broker's board or at a public or private sale. Any such sale shall be conducted in good faith and in a "commercially reasonable" manner within the meaning of any applicable uniform commercial code. The Borrower agrees that, to the extent notice of sale shall be required by law, at least ten (10) days' prior written notice to the Borrower of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.

The Borrower hereby authorizes the Lender to file at any time and from time to time to file one or more financing or continuation statements and amendments thereto, relating to the Collateral (including, without limitation, any such financing statements that (i) describe or identify the Collateral by type or in any other manner as the Lender may determine, and (ii) contain any other information required by Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment).

The Borrower shall, from time to time, (i) immediately take all actions as may be requested by the Lender to perfect the security interest of the Lender in the Collateral, including, without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106 and 9-106 of the UCC, and (ii) immediately take all actions as may be reasonably requested from time to time by the Lender so that control of such Collateral is obtained and at all times held by the Lender. All of the foregoing shall be at the sole cost and expense of the Borrower.

The Borrower agrees that at any time and from time to time, at the expense of the Borrower, the Borrower will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary, or that the Lender may reasonably request, in order to perfect and protect any security interest granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

If the Borrower fails to perform any obligation contained in this Note, the Lender may itself perform, or cause performance of, such obligation, and the expenses of the Lender incurred in connection therewith shall be payable by the Borrower; provided that the Lender shall not be required to perform or discharge any obligation of the Borrower. The Borrower hereby appoints the Lender as each Borrower's attorney-in-fact, with full authority in the place and stead of the Borrower and in the name of the Borrower or otherwise, from time to time during the continuance of an Event of Default in the Lender's discretion to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Note (but the Lender shall not be obligated to and shall have no liability to the Borrower or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

The Lender shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable care. The Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Lender accords its own property, it being understood that the Lender shall not have any responsibility for (i) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Lender has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Collateral. Nothing set forth in this Note, nor the exercise by the Lender of any of the rights and remedies hereunder, shall relieve the Borrower from the performance of any obligation on the Borrower's part to be performed or observed in respect of any of the Collateral.

The Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Lender to or for the credit or the account of the Borrower against any and all of the Obligations, irrespective of whether or not the Lender shall have made any demand for payment and although such Obligations may be unmatured. The rights of the Lender under the immediately preceding sentence are in addition to other rights and remedies (including, without limitation, other rights of set-off) that the Lender may have.

**Exhibit** **C**

**Form of Warrant**

 

*[Attached.]*

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (I) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, OR AN OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, AND (II) COMPLIANCE WITH SECTIONS 8 AND 9 BELOW.

**WARRANT TO PURCHASE COMMON UNITS**

No. 1 Date of Issuance: June<u> </u> 2023

This WARRANT (the ***"Warrant")*** is issued to AMASS Brands, Inc., a Delaware corporation (together with any subsequent holder(s) hereof, the ***"Holder(s)"),*** by Full Glass Wine Co, LLC, a Delaware limited liability company (together with its successors and assigns, the ***"Company").*** Reference is hereby made to that certain Amended and Restated Limited Liability Company Agreement of the Company, dated as of even date herewith, as the same may be amended from time to time (the ***"LLC Agreement").*** Capitalized terms not defined herein shall have the meanings set forth in the LLC Agreement. This Warrant is being issued pursuant to the terms of that certain Asset Purchase Agreement among the Company, the Holder and certain other parties dated as of even date herewith (the ***"Purchase Agreement").***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Certain Defined Terms.** As used in this Warrant, unless the context otherwise requires, the following terms shall have the meanings indicated:

 ****

***"Change of Control"*** means (i) any consolidation or merger of the Company with or into any other entity or person, or any other reorganization, other than any such consolidation, merger or reorganization in which the members of the Company immediately prior to such consolidation, merger or reorganization, continue to hold at least a majority of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization, (ii) any transaction or series of related transactions to which the Company is a party in which the members of the Company transfer units in excess of 50% of the Company's then-outstanding combined voting power, *provided* that a Change of Control shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof, or (iii) a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.

 ****

***"Common Unit"*** means a "Unit" of the Company, as defined from time to time in the LLC Agreement (and having the rights and obligations as so set forth therein).

 ****

***"Date of Issuance"*** means the date this Warrant is issued, as reflected above.

 ****

***"IPO"*** means an initial public offering of securities of the Company registered under the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Purchase of Units.**

&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) **Number of Units.** Subject to the terms and conditions set forth herein, the Holder is entitled to purchase from the Company up to 40,000 Common Units, which is equal to 4.00% of the Company's outstanding Units on a fully diluted basis as of the Date of Issuance immediately prior to the issuance of this Warrant (as adjusted pursuant to this <u>Section 2(a)</u> and <u>Section 6,</u> the ***"Units").*** Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if, upon the first occurrence of a Qualifying Acquisition (as defined in the Purchase Agreement) prior to December 31, 2024 (if any), this Warrant remains outstanding on the date that such Qualifying Acquisition is consummated, then the amount of Units shall be automatically increased as of such date, such that the total Units (including for such calculation any Units already acquired upon exercise of this Warrant, if any) represent 4.00% of the Company's outstanding equity on a fully diluted basis as of such date (excluding from such fully diluted total the Units issued or issuable hereunder); 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;(ii) if no Qualifying Acquisition occurs prior to December 31, 2024, and this

Warrant remains outstanding on such date, then the amount of Units (including for such calculation any Units already acquired upon exercise of this Warrant, if any) shall be automatically increased as of such date such that the total Units represent 8.00% of the Company's outstanding equity on a fully diluted basis as of such date (excluding from such fully diluted total the Units issued or issuable hereunder).

&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) **Exercise Price.** The exercise price for the Units shall be $0.01 per Unit (the ***"Exercise Price").*** The number of Units and the Exercise Price shall be subject to adjustment pursuant to <u>Section 6</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Exercise Period.** This Warrant shall be exercisable, in whole or in part, during the term commencing on the Date of Issuance and ending upon the earliest to occur of (i) June __, 2028, or (ii) immediately prior to the consummation of a Change of Control, or (iii) immediately prior to the consummation of an IPO. In the event of an IPO or a Change of Control, the Company shall provide to the Holder at least 10 days advance written notice of such IPO or Change of Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Method of Exercise.**

&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) This Warrant shall only be exercisable in accordance with the method of exercise set forth in this <u>Section 4</u>. While this Warrant remains outstanding and exercisable in accordance with <u>Section 3</u> above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby with respect to any Units 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the surrender of the Warrant, together with a duly executed copy of the Notice of Exercise attached hereto and a duly executed counterpart signature page to the LLC Agreement as in effect on such date (available from the Company upon request), to the Company at its principal office (or at such other place as the Company shall notify the Holder in writing); 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;(ii) the (i) payment to the Company of an amount equal to the aggregate Exercise Price for the number of Units being purchased (A) in cash or by check or wire transfer, or (B) by cancellation of indebtedness pursuant to <u>Section 4(e),</u> or (ii) net exercise of this Warrant pursuant to <u>Section 4(b),</u> as elected in the Notice of Exercise.

&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) If the fair market value of one Unit is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant with payment of cash, check or wire transfer or by cancellation of indebtedness as provided in <u>Section 4(e)</u>, the Holder may elect in the Notice of Exercise to instead net exercise this Warrant and receive the number of Units computed using the following formula:

X = <u>Y (A-B)</u>

A

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| | |
|:---|:---|
| Where X = | the number of Units to be issued to the Holder |
| Y = | the number of Units purchasable under this Warrant if the Exercise Price were paid in cash or, if only a portion of this Warrant is being exercised, that portion of this Warrant being exercised (at the date of such calculation) |
| A = | the fair market value of one Unit (at the date of such calculation) |
| B = | Exercise Price (as adjusted to the date of such calculation) |

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For purposes of the above calculation, the fair market value of one Unit shall be determined in good faith by the Company based on the Company's latest unexpired 409A valuation at such time, if any; *provided, however,* that if this Warrant is exercised pursuant to this <u>Section 4(b)</u> in connection with (i) an IPO, the fair market value per Unit shall be the per Unit offering price to the public in the IPO, or (ii) a Change of Control, the fair market value per Unit shall be the value ascribed to the consideration to be paid in respect of one Unit in the definitive agreement(s) relating to such Change of Control, or if no such value is set forth in the definitive agreements(s) relating to such Change of Control, as determined in good faith by the Company. If no unexpired 409A valuation exists, and the foregoing proviso does not apply, then such fair market value of one Unit shall be determined in good faith by the Company.

&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 exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant is surrendered to the Company as provided in <u>Section 4(a)</u> above. At such time, the Holder shall be deemed to have become the holder of record of the Units so purchased.

&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) As soon as practicable after the exercise of this Warrant in whole or in part, the Company will cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct: (i) evidence that the Units so purchased under this Warrant have been issued to the Holder, by delivery of a copy of an updated <u>Appendix I</u> to the LLC Agreement; and (ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Units equal to the number of such Units described in this Warrant minus the number of such Units purchased by the Holder upon all exercises made in accordance with <u>Section 4(a)</u> above.

&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) At Holder's sole option at the time of exercise, any amount of cash Exercise Price may be satisfied by cancellation of an equal amount of indebtedness owed by the Company to the Holder *(provided,* that unless otherwise agreed by the Company no such cancellation may be made with respect to any indebtedness, or portion thereof, that is at such time disputed by the Company). Any such cancellation shall be applied first to the indebtedness remaining under the Senior Note (as defined in the Purchase Agreement), if any, then to the indebtedness remaining under the Sub Note (as defined in the Purchase Agreement), if any, before being applied to any other indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Adjustment of Exercise Price and Number of Units.** The number and kind of securities issuable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time 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;(a) **Reclassification.** In case of any reclassification or capital reorganization involving the Common Units (other than a change as a result of a subdivision or combination provided for in <u>Section 6(b)</u> below) that occurs after the Date of Issuance, then the Company shall duly execute and deliver to the Holder a new Warrant or a supplement hereto, so that the Holder shall have the right to receive, at a total purchase price not to exceed that payable upon the exercise of the unexercised portion of this Warrant, and in lieu of the Common Units theretofore issuable upon exercise of this Warrant, the kind and amount of Units, other securities, money and property receivable upon such reclassification or capital reorganization, by a Holder of the number of Common Units then purchasable under this Warrant. The provisions of this subsection (a) shall similarly apply to successive reclassifications and capital reorganizations thereafter.

&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) **Subdivision or Combination of Units.** If the Company at any time while this Warrant remains outstanding and unexpired shall subdivide or combine its Common Units, (i) in the case of a subdivision, the Exercise Price shall be proportionately decreased and the number of Common Units purchasable hereunder shall be proportionately increased, and (ii) in the case of a combination, the Exercise Price shall be proportionately increased and the number of Common Units purchasable hereunder shall be proportionately decreased.

&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) **Notice of Adjustment.** When any adjustment is required to be made in the number or kind of securities issuable upon exercise of this Warrant, or in the Exercise Price, the Company shall as soon as practicable thereafter notify the Holder of such event and of the number of Common Units or other securities or property thereafter issuable upon exercise of this Warrant and the Exercise Price therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. No Fractional Units.** No fractional Common Units will be issued in connection with any exercise hereunder. All Common Units (including fractions) to be issued upon exercise of this Warrant shall be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional Common Unit. If, after aggregation, the exercise would result in the issuance of a fractional Common Unit, the Company shall, in lieu of issuance of any fractional Common Unit, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current fair market value of one Common Unit by such fraction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Compliance with Securities Act.** The Holder, by acceptance hereof, agrees that this Warrant and the Units to be issued upon exercise hereof are being acquired for investment and that such Holder will not offer, sell or otherwise dispose of this Warrant or any Units to be issued upon exercise hereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended (the ***"Act").*** This Warrant and all certificates evidencing Units, if any, issued upon exercise of this Warrant (unless registered under the Act) shall be stamped or imprinted with a legend in substantially the following form:

"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT

OF 1933, AS AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, AN OPINION OF COUNSEL FOR THE HOLDER REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Disposition of Warrant or Units.** Notwithstanding anything to the contrary in this Warrant, (a) this Warrant may not be offered, sold or otherwise transferred, in whole or in part, without the prior written consent of the Company, and (b) all Units issued upon exercise of this Warrant shall be subject to all restrictions and conditions on offer, sale and transfer set forth from time to time in the LLC Agreement (and may only be offered, sold or otherwise transferred as permitted under the LLC Agreement, after compliance with all applicable terms thereof). Without limiting the foregoing, Units shall only be issued to the Holder hereunder, and Holder shall not be permitted to request that such Units be issued to or in the name of any other Person; *provided,* that the Holder may request that the Units issued to Holder under this Warrant be transferred to another Person as long as such transfer complies with all restrictions and conditions on offer, sale and transfer set forth at such time in the LLC Agreement (and only after compliance with all applicable terms of such LLC Agreement). Each certificate representing this Warrant or the Units, if any, may bear legends as to such applicable restrictions on transferability. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. No Rights as Member.** Prior to the exercise of this Warrant, the Holder shall not be entitled to any rights of a member of the Company with respect to the Units, including (without limitation) the right to vote such Units, receive distributions thereon, exercise preemptive rights or be notified of a member meeting, and, except as expressly provided in this Warrant, such Holder shall not be entitled to any member notice or other communication concerning the business or affairs of the Company. As a condition to the Holder's exercise of any portion of this Warrant, the Holder hereby acknowledges that the Units issuable upon exercise of this Warrant shall be subject to the terms and conditions set forth in the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Modification and Waiver.** This Warrant and any provision of it may only be amended, and the observance of any term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively), only upon the written consent of the Company and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Notices.** All notices, requests, demands, claims, consents, and other communications hereunder shall be in writing and shall be made, and shall be deemed delivered, as and when provided in the Purchase Agreement; provided that all communications shall be sent to each of the Company and the Holder at the address listed on their respective signature pages hereto or at such other address as the Company or Holder may designate by giving the other party notice in the manner herein set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. Headings.** All article and section titles and captions contained herein are for convenient reference only and shall not be deemed a part of the context of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. Severability.** If any provision of this Warrant, or the application of such provision to any person or circumstance, shall be held illegal, invalid or unenforceable or in conflict with any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Warrant which are valid, enforceable and legal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. Governing Law; Jurisdiction and Venue.** This Warrant shall be governed and construed under the internal laws of the State of Delaware (without regard to conflict of laws principles), all rights and remedies being governed by such laws. The Company and the Holder agree that any dispute among or between them concerning this Warrant or the LLC Agreement shall be litigated exclusively in the United States District Court for the Northern District of Illinois or in the Circuit Court of Cook County, Illinois, and they hereby consent to the exercise of personal jurisdiction by any such court with respect to any such proceeding. IN ANY SUCH PROCEEDING, THE COMPANY AND HOLDER SHALL BE DEEMED TO HAVE WAIVED ITS RIGHT TO A TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. Counterparts.** This Warrant may be executed in one or more counterparts, and with counterpart signature pages, each of which shall be an original, but all of which together shall constitute one in the same Warrant, binding on all parties notwithstanding that all parties have not signed the same counterpart. Counterpart signature pages to this Warrant transmitted by facsimile transmission, by electronic mail in "portable document format" (".pdf') form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

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***[The remainder of this page is intentionally left blank]***

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Warrant as of the Date of Issuance.

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| | |
|:---|:---|
|  | **COMPANY:** |
|  | **Full Glass Wine Co, LLC** |
|  | By: |
|  | Name: |
|  | Title: |
| Notice Address: | [<u> </u>] |
|  | [<u> </u>] |
|  | Attention: E-Mail: |
|  | **HOLDER:** |
|  | **AMASS Brands, Inc.** |
|  | By: |
|  | Name: |
|  | Title: |
| Notice Address: | [<u> </u>] |
|  | [<u> </u>] |
|  | Attention: |
|  | E-Mail: |

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SIGNATURE PAGE TO WARRANT

**EXHIBIT A**

**NOTICE OF EXERCISE**

To: Full Glass Wine Co, LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The undersigned hereby elects to purchase, pursuant to the provisions of the Warrant, as follows:

**[Note: please check the applicable box and complete any applicable blanks]**

◻ ________ Common Units pursuant to the terms of the attached Warrant, and tenders herewith payment in cash of the Exercise Price of such Units in full [in cash] [by cancellation of the following indebtedness as permitted by <u>Section 4(e)</u> of the attached Warrant : _______________________].

◻ Common Units representing net exercise of [the entire Warrant] [______% of the Warrant] pursuant to the terms of the net exercise provisions set forth in <u>Section 4(b)</u> of the attached Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Please issue said Units in the name of the Holder and deliver evidence thereof to the address specified below:

[___________________________________]

[___________________________________]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The undersigned acknowledges that the undersigned has reviewed the representations and warranties contained in <u>Annex 1</u> hereto and by the undersigned's signature below hereby makes such representations and warranties to the Company.

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| |
|:---|
| AMASS Brands, Inc. |
| (Signature) |
| (Date) |

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WARRANT - EXHIBIT A

**<u>Annex 1</u>**

Holder hereby represents and warrants to the Company as follows (with all capitalized terms used in this <u>Annex 1</u> and not otherwise defined herein having the respective meanings ascribed thereto in the Warrant):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Holder Bears Economic Risk.** Holder has substantial experience in financial and business matters and in evaluating and investing in private placement transactions of securities in companies similar to the Company so that Holder is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect Holder's own interests. Holder must bear the economic risk of this investment indefinitely unless the Units are registered pursuant to the Act, or an exemption from registration is available. Holder understands that the Company has no present intention of registering the Units. Holder also understands that there is no assurance that any exemption from registration under the Act will be available and that, even if available, such exemption may not allow Holder to transfer all or any portion of the Units in the amounts or at the times Holder might propose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Acquisition for Own Account.** Holder is acquiring the Units for Holder's own account for investment only, and not with a view towards their distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Accredited Investor.** Holder represents that Holder is an "accredited investor" within the meaning of Regulation D promulgated under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Rule 144.** Holder acknowledges and agrees that the Units are "restricted securities" as defined in Rule 144 promulgated under the Act as in effect from time to time and must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. Holder has been advised or is aware of the provisions of Rule 144, which permits limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Residence.** If Holder is an individual, then Holder resides in the state or province identified in the address of Holder set forth in the Warrant; if Holder is a partnership, corporation, limited liability company or other entity, then the office or offices of Holder in which its investment decision was made is located at the address or addresses of Holder set forth in the Warrant, in each case as updated from time to time in accordance with <u>Section 12</u> of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Discussions with Management and Other Information.** Holder has had an opportunity to discuss the Company's business, management, and financial affairs with the Company's management and to review the Company's financial information. Holder acknowledges that it has received all information it has requested from the Company and it considers necessary or appropriate for deciding whether to acquire the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) LLC Agreement.** Holder acknowledges and agrees that the Units acquired hereunder are and will be subject to all of the applicable terms, obligations and conditions set forth in the LLC Agreement from time to time. The Holder has been provided a copy of the LLC Agreement, and has read and understands the LLC Agreement and its terms (and has had an opportunity to review and discuss such matters with its own legal counsel and tax and financial advisers). Holder has not been given, and is not relying, on any representations or advice from the Company or any of its affiliates or representatives with respect to any legal, tax or financial matter of any sort.

WARRANT - Annex 1

## Exhibit 10.13

**Exhibit 10.13**

AMENDMENT TO AGREEMENT

This Amendment <u>("Amendment")</u> is dated June 21, 2023 and amends the ASSET PURCHASE AGREEMENT (the <u>"Agreement"</u>) dated as of June <u>11,</u> 2023 by and among Full Glass Wine Co., LLC, a Delaware limited liability company <u>("Holdco"),</u> Full Glass - Wine, LLC, a Delaware limited liability company (<u>"Buyer"</u>), Project Crush Acquisition Corp LLC, a Delaware limited liability company <u>("PCA")</u> and Project Crush DTC Sub LLC, a California limited liability company <u>("DTC",</u> and together with Parent and PCA, each a <u>"Seller"</u> and, collectively, "Sellers") and AMASS Brands Inc., a Delaware corporation <u>("Parent").</u> Each of Buyer, DTC, PCA and Parent are sometimes referred to herein as a <u>"Party"</u> or collectively, the <u>"Parties."</u>

&nbsp;&nbsp;&nbsp;&nbsp;1. Capitalized terms used in this Amendment have the meaning given to them in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. Sellers and Parent have requested that Buyer provide $150,000 in anticipation of the Closing to be credited
against Closing Cash required of Buyer if the Transaction closes. Buyer has agreed to wire $150,000 to PCA to an account designated by
PCA.

&nbsp;&nbsp;&nbsp;&nbsp;3. Subject to receipt of the $150,000 the Parties acknowledge that the funds are a credit to the Closing
Cash if the Transaction closes and shall be subject to Section 11 of the Letter of Intent dated May 15, 2023 <u>("LOI")</u> among the Parties as an Extension Deposit (as defined in the LOI) if the Agreement is terminated as provided in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4. The Parties affirm the Agreement and agree that it remains in full force and effect without change (except
as provided in this Amendment), and is ratified and confirmed. The Parties further agree that Section 11 of the LOI remains in effect
regarding the disposition of the Deposit.

*[Signature Page Immediately Follows]*

**IN WITNESS WHEREOF,** the Parties hereto have caused their respective authorized officers to duly execute this Asset Purchase Agreement as of the day and year first written above.

---

| | |
|:---|:---|
| **PROJECT CRUSH ACQUISITION CORP LLC** | **PROJECT CRUSH ACQUISITION CORP LLC** |
| By: AMASS Brands Inc., its sole member | By: AMASS Brands Inc., its sole member |
| By: | /s/ Mark Thomas Lynn |
| Name: | Mark Thomas Lynn |
| Title: | CEO |

---

---

| | |
|:---|:---|
| **PROJECT CRUSH DTC SUB LLC** | **PROJECT CRUSH DTC SUB LLC** |
| By: AMASS Brands Inc., its sole member | By: AMASS Brands Inc., its sole member |
| By: | /s/ Mark Thomas Lynn |
| Name: | Mark Thomas Lynn |
| Title: | CEO |

---

---

| | |
|:---|:---|
| **AMASS BRANDS INC.** | **AMASS BRANDS INC.** |
| By: | /s/ Mark Thomas Lynn |
| Name: | Mark Thomas Lynn |
| Title: | CEO |

---

---

| | |
|:---|:---|
| **FULL GLASS - WINC, LLC** | **FULL GLASS - WINC, LLC** |
| By: | /s/ Louis Amoroso |
| Name: | Louis Amoroso |
| Title: | CEO |

---

---

| | |
|:---|:---|
| **FULL GLASS WINE CO., LLC** | **FULL GLASS WINE CO., LLC** |
| By: | /s/ Louis Amoroso |
| Name: | Louis Amoroso |
| Title: | CEO |

---

## Exhibit 10.16

**Exhibit 10.16**

AMENDED AND RESTATED

SECURED PROMISSORY NOTE

---

| | |
|:---|:---|
| $1884023.62 | February 29, 2024 |

---

FOR VALUE RECEIVED, Full Glass - Winc, LLC, a Delaware limited liability company (the "<u>Borrower</u>"), HEREBY PROMISES TO PAY to the order of AMASS Brands Inc. (the "<u>Lender</u>") (i) the principal sum of One Million Eight Hundred Eighty Four Thousand Twenty Three and 62/100 Dollars ($1,884,023.62) ("<u>Principal Amount</u>"), in accordance with the terms set forth in this Note (this "<u>Note</u>"), and (ii) interest on any and all principal amounts remaining unpaid hereunder from time to time outstanding, from the date hereof until such principal amounts become due, at the rate at the rate of eight percent (8.0%) per annum, and in accordance with the terms, indicated below.

This Note: was originally issued pursuant to WINC DTC APA, and is the "<u>Senior Note</u>" referred to in the WINC DTC APA ("<u>Original Note</u>"); and amends and restates in its entirety the Original Note effective as of the date of this Note. In addition to the terms hereof, this Note is subject to and governed by the terms of the WINC DTC APA.

Concurrent with the execution of this Note, Lender and Borrower have entered into the Restatement Agreement pursuant to which, among other matters, the Purchase Price under the WINC DTC APA was renegotiated and reduced by $1,600,000 and accordingly, the Principal Amount of the Original Note has been renegotiated and reduced as reflected in this Note ("<u>Principal Reduction</u>"), the Subordinated Note has been cancelled, Borrower has made and been credited with payments on the Original Note, the limited guaranty given by Louis Amoroso is being terminated and Borrower and Lender agreed to amend and restate the Original Note as provided in this Note effective as of the Effective Date. Further, Lender waives any and all defaults and Events of Default, and any associated rights (including to default interest) existing on or prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **The Loan**. Subject to the terms and conditions hereof, the Lender made an advance available to the Borrower on the Original Effective Date, as provided in the WINC DTC APA (the "<u>Loan</u>"). The entire outstanding principal amount of the Loan, together with all accrued and unpaid interest thereon, as modified in this Note, shall be immediately due and payable in full in immediately available funds on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **Terms of the Note**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Interest.** Interest at the rate stated above shall be due and payable in arrears, on the date any principal of this Note is prepaid (or required to be prepaid)). To the extent permitted by law, if any Event of Default occurs, this Note shall bear interest from the date such Event of Default occurs until such Event of Default is waived in writing, at a rate per annum equal to the interest rate in effect plus five percent (5.00)% per annum (the "<u>Default Rate</u>"). Interest at the Default Rate shall be payable on demand. All interest shall be computed on the basis of a year of 360 days for the actual number of days elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Evidence of Loan**. This Note evidences the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Payments on Business Day**. If any amount payable hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Lender's Office**. Principal, interest and all other amounts due hereunder are payable in lawful money of the United States of America and in immediately available funds at the offices of the Lender located at its address as set forth on its signature page hereto, or at such other place as the Lender shall designate in writing to the Borrower from time to time. All payments under this Note will be made without setoff, counterclaim or other defense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Payments**. Borrower shall pay Lender, on the first Business Day of each month commencing on March 1, 2024 and through the Maturity Date $150,000 or if less the balance due, and continuing each on the first business day of each month thereafter until the Principal Amount is paid in full such payments, in each case, shall be applied and used to pay accrued and unpaid interest due on the Loan and then to the outstanding principal amount of the Loan. The entire unpaid principal amount and all accrued and unpaid interest shall be due on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Optional Prepayments**. The Borrower may, at its option and upon not less than three (3) Business Days' prior written notice to the Lender (or such shorter time as Lender may agree), prepay the Loan, in whole at any time or in part from time to time, without penalty, subject to the payment of all accrued interest to the date of such prepayment on the amount prepaid, <u>provided</u> that each partial voluntary prepayment shall be in a principal amount equal to $100,000 or an integral multiple thereof, or the entire remaining balance. Each notice of prepayment shall be irrevocable and shall specify the date and the amount of the prepayment of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Use of Proceeds**. The Loan is a portion of the WINC DTC Acquisition purchase price as amended in the Restatement Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Offset and Indemnification**. If at any time prior to payment in full of this Note by Borrower, Lender or any Seller incurs any obligations to Borrower, or any of its Affiliates or Representatives pursuant to Article VIII of the WINC DTC APA, Borrower has the right to offset and reduce the Unpaid Note Amount (as defined in the WINC DTC APA) in accordance with Section 8.5 of the WINC DTC APA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Definitions; Rules of Construction**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms used herein shall have the meaning as set forth in Exhibit A hereto or, if not so defined, in the WINC DTC APA. Capitalized terms used herein and not defined in Exhibit A or the WINC DTC APA shall have the meaning as defined in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rules of construction set forth in Exhibit A shall apply to any interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **Collateral**. As collateral security for all Obligations of the Borrower now or hereafter evidenced by this Note, and to secure the due and punctual payment and performance of such Obligations to the Lender, the Borrower hereby grants, pledges and collaterally assigns to the Lender a lien on and security interest in all Collateral (as defined in Exhibit A hereto). The Borrower hereby agrees to the terms set forth in Exhibit B, including, without limitation, the Lender's rights with respect to the Collateral following an Event of Default as set forth in Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **Representations**. The Borrower represents and warrants to Lender as of the Effective Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower has the legal capacity and right to execute, deliver and perform this Note and each other Note Document and the Borrower is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of their respective business or its ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower's business or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the execution, delivery and performance by the Borrower of this Note and each other Note Document does not contravene any law or any contractual restriction binding on or affecting the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Governmental Approval or other authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Borrower of any Note Document, except for the filing of the financing statement under the Uniform Commercial Code in the jurisdiction of organization of Borrower and the filing of the IP Security Agreements with the USPTO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Note constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there is no pending or threatened action or proceeding affecting the Borrower before any Governmental Authority or arbitrator that (i) if adversely determined could reasonably be expected to have a Material Adverse Effect on Borrower, or (ii) relates to this Note or any of the other Note Documents or any transaction contemplated hereby or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower is not liable with respect to any indebtedness for borrowed money other than the Subordinated Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Collateral</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;(1) the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral other than the Liens permitted pursuant to Section VI(b) below; 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;(2) The Collateral is and shall be maintained at locations provided in Schedule V(g)(3) attached hereto or as permitted pursuant to Section VI(t).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Covenants**. So long as any Obligations shall remain outstanding, the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not create, incur, assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to any indebtedness for borrowed money other than (i) indebtedness in favor of the Lender, (ii) the Subordinated Debt, (iii) the Shopify Capital credit and (iv) other indebtedness not otherwise permitted hereunder in an aggregate amount not to exceed $250,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not incur, create, assume or suffer to exist any Lien on any of the Collateral (including any Lien on any owned real property or upon the Borrower's leasehold interests in any leased real property) or the proceeds thereof, other than (i) Liens with respect to the Collateral created hereby, (ii) Liens securing the indebtedness described in Section VI(a)(ii) above; and (iii) other Liens not otherwise permitted hereunder securing indebtedness in an aggregate amount not to exceed $100,000 at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not sell, convey, transfer, lease or dispose of (whether in one transaction or in a series of transactions) any of the Collateral other than (i) sales of inventory in the ordinary course of business consistent with the past practices of Sellers, (ii) payments permitted under paragraph (d) below, and (iii) other transfers or dispositions in an amount not to exceed $100,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) not pay any dividends or make any distribution, other than distributions not exceeding $100,000 in the aggregate for all such distributions and Tax Distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not make any investments, other than Permitted Investments, unless approved in advance in writing by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) at the Borrower's expense, defend the Lender's right, title and security interest in and to the Collateral against the claims of any other Person other than for deficiencies caused by Sellers or that exist as of immediately prior to the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at the Borrower's expense (with the exception of clause (iii) below), at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Lender may reasonably request in order to (i) perfect and protect, or maintain the perfection of, the security interest and lien purported to be created hereby, (ii) enable the Lender to exercise and enforce its rights and remedies hereunder in respect of the Collateral or (iii) better secure the Obligations through accepted and customary means;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) not take or fail to take any action which would in any manner reasonably be expected to impair the value or enforceability of the Lender's security interest in and lien on any Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain its legal existence and good standing in its jurisdiction of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower's business or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) comply in all material respects with all laws, ordinances and regulations to which it is subject, obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under this Note and the other Note Documents, including any grant of a security interest to Lender, and promptly provide copies of any such obtained Governmental Approvals to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Reporting</u>. Deliver to Lender the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations for such month in a form reasonably acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower that could reasonably be expected to result in damages or costs to Borrower of, individually or in the aggregate, $25,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If Borrower shall acquire a commercial tort claim, with a value in excess of $25,000, Borrower shall promptly notify Lender in writing signed by Borrower of the general details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Note, which such writing to be in form and substance reasonably satisfactory to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Prompt written notice of the occurrence of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Note Documents as reasonably requested by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Prompt written notice of any applications or registrations of Intellectual Property not already disclosed on Schedule V(g)(5) attached hereto, including the date of such filings and the applicable application or registration numbers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) permit, at reasonable times, on one (1) Business Day's notice (provided no notice is required if an Event of Default has occurred and is continuing), Lender, or its agents, to inspect the Collateral and the right to audit and copy Borrower's Books; provided that, such inspections and audits shall be conducted no more often than once every twelve (12) months, unless an Event of Default has occurred and is continuing, in which case such inspections and audits shall occur as often as Lender shall determine is necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Insurance</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;(1) Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower's industry and location and as Lender may reasonably request. Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are reasonably satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All property policies shall have a lender's loss payable endorsement showing Lender as lender loss payee. All liability policies shall show, or have endorsements showing, Lender as an additional insured. Lender shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Ensure that proceeds payable under any property policy are, at Lender's option, payable to Lender on account of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) At Lender's request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments. Each provider of any such insurance required under this Section V(l)(4) shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Lender, that it will give Lender twenty (20) days (ten (10) days for any cancellation due to non-payment of any premium) days prior written notice before any such policy or policies shall be canceled. If Borrower fails to obtain insurance as required under this Section V(l)(4) or to pay any amount or furnish any required proof of payment to third persons and Lender, Lender may make all or part of such payment or obtain such insurance policies required in this Section V(l)(4), and take any action under the policies Lender deems prudent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Intentionally deleted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Protection of Intellectual Property Rights</u>. Borrower shall:

&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) Protect, defend and maintain the validity and enforceability of Borrower's Intellectual Property, except to the extent that such failure to do so would not reasonably be expected to have a material adverse effect on Borrower's business or operations; (ii) promptly advise Lender in writing of infringements or any other event that could reasonably be expected to materially and adversely affect the value of Borrower's Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower's business to be abandoned, forfeited or dedicated to the public without Lender's written consent.

Provide written notice to Lender within ten (10) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public) not acquired from Lender under the WINC DTC APA other than with Lender and its affiliates or pursuant to the Bill of Sale and Intellectual Property Licensing Agreement, Borrower shall take such steps as Lender requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any such Restricted License to be deemed "Collateral" and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Lender to have the ability in the event of liquidation of any Collateral to dispose of such Collateral in accordance with Lender's rights and remedies under this Note and the other Note Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) at the time that Borrower forms any Subsidiary or acquires any Subsidiary after the Effective Date, Borrower shall (a) cause such new Subsidiary to provide to Lender a joinder to this Note and the Note Documents to become a co-borrower hereunder (as determined by Lender in its sole discretion), together with documentation, all in form and substance satisfactory to Lender (including being sufficient to grant Lender a first priority Lien in and to the assets of such newly formed or acquired Subsidiary), (b) provide to Lender appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Lender; and (c) provide to Lender all other documentation in form and substance satisfactory to Lender, including one or more opinions of counsel satisfactory to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section shall be a Note Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) keep all Inventory in good and marketable condition, free from material defects subject to any defects or lack of good condition or title existing immediately prior to the Effective Date. Returns and allowances between Borrower and its Account Debtors shall follow Borrower's customary practices as they exist at the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) not directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a nonaffiliated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) not merge or consolidate with any other Person, or acquire all or substantially all of the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person unless (i) the Borrower has received Lender's prior written consent to consummate such merger or consolidation on terms that are in form and substance reasonably satisfactory to Lender, and (ii) no Event of Default has occurred and is continuing. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) not (i) become an "investment company" or a company controlled by an "investment company", under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of the Loan for that purpose; (ii)(A) fail to meet the minimum funding requirements of ERISA, (B) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, (C) fail to comply with the Federal Fair Labor Standards Act or (D) violate any other law or regulation, if the foregoing subclauses (A) through (D), individually or in the aggregate, could reasonably be expected to have a material adverse effect on Borrower's business or operations; or (iii) withdraw or permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) not (i) engage in any business other than the businesses currently engaged in by Borrower or a business reasonably related thereto; (ii) permit, allow or suffer to occur any Change in Control; or (iii) without at least 30 days prior written notice to Lender, (1) add any new offices or business locations, including warehouses or deliver any portion of the Collateral to a bailee at a location other than to a bailee and at a location already disclosed in Schedule V(g)(3) attached hereto, (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to add any new offices or business locations, including warehouses, then Borrower shall cause the landlord of any such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance reasonably satisfactory to Lender. If Borrower intends to deliver any portion of the Collateral to a bailee, and Lender and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower shall cause such bailee to execute and deliver a bailee agreement in form and substance reasonably satisfactory to Lender; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) not, except as expressly permitted under the terms of the subordination, intercreditor, or other similar agreement to which any Subordinated Debt is subject, (a) make or permit any payment on such Subordinated Debt; or (b) amend any provision in any document relating to such Subordinated Debt which would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **Conditions Precedent to the Loan**. Intentionally Deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. **Events of Default**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Major Event of Default shall occur then the Lender may by written notice to the Borrower (i) terminate any commitments to make any further Loans (if any) and declare the then outstanding principal amount of this Note, and all other amounts due hereunder to be immediately due and payable, whereupon the outstanding principal amount of this Note and all such other amounts, shall become and shall be forthwith due and payable, without diligence, presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, (ii) require that the Reduction Amount be reinstated and added to the then Principal Amount of the Note, and (iii) exercise any and all of its other rights under applicable law, hereunder and under the other Note Documents; <u>provided</u>, <u>however</u>, that upon the occurrence of any Event of Default described in clause (e) of the definition of "Event of Default", without any notice to the Borrower or any other Person or any act by the Lender, all commitments to make any further Loans (if any) shall automatically terminate, all Loans then outstanding, together with all accrued and unpaid interest thereon, all fees and all other amounts due under this Note and the other Note Documents, shall be accelerated and become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by the Borrower. In addition to the other rights and remedies provided for herein or otherwise available to it, upon any Event of Default, the Lender may exercise all of the rights and remedies of a secured party on default under the UCC, including, without limitation, such rights as are set forth in Exhibit B hereto. All proceeds received following any Event of Default hereunder shall be applied to this Note or any indebtedness arising hereunder or the other Obligations or in conjunction with this Note as the Lender shall determine in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of an Event of Default that is not a Major Event of Default, regardless of any rights that might be available at law or in equity, Lender's sole remedy is to apply the Default Rate to the outstanding unpaid principal balance of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **Successors and Assigns**. This Note shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns, except that the Borrower may not assign any rights or obligations hereunder or any interest herein without the prior written consent of the Lender (any such assignment being null and void). The Lender may assign to one or more other entities all or a portion of its rights under this Note with the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned); <u>provided</u>, that (i) no such consent shall be required (x) during the continuance of an Event of Default or (y) for any assignments to any Affiliates or related funds of the Lender, and (ii) such consent shall have been deemed to have been given without the need for further action if the Borrower does not respond in writing to a request by the Lender for any such consent within five (5) days after receipt of such request from the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **Intentionally Deleted**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XI. **Miscellaneous**. (a) All notices or other communications provided for hereunder shall be in writing (including telecommunications) and shall be mailed, e-mailed or delivered to the Borrower at the address set forth next to the Borrower's signature, or at such other address as may hereafter be specified by the Borrower to the Lender (at its address set forth herein) in writing. All notices and communications shall be effective (i) if mailed, when received at the address specified above, (ii) if e-mailed, upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment) and (iii) if delivered, upon delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure on the part of the Lender to exercise, and no delay in exercising, any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof by the Lender preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy of the Lender. No amendment or waiver of any provision of this Note, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such 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;(d) The Borrower hereby agrees to pay promptly after invoicing thereof all costs and expenses (including, without limitation, all reasonable fees, expenses and other client charges of counsel to the Lender) incurred by the Lender in connection with the enforcement of the Lender's rights, and the collection of all amounts due, hereunder. The obligations of the Borrower under this clause (d) shall survive the payment in full of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary set forth in this Note, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the "<u>Maximum Lawful Rate</u>"), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Borrower shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Lender is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Effective Date as otherwise provided in this Note. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in Section II, unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by the Lender pursuant to the terms hereof exceed the amount that the Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section XI(e), a court of competent jurisdiction shall finally determine that the Lender has received interest hereunder in excess of the Maximum Lawful Rate, the Lender shall, to the extent permitted by applicable law, promptly apply such excess to the payment of other outstanding Obligations and thereafter shall refund any excess to the Borrower or as a court of competent jurisdiction may otherwise order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Note and the other Note Documents as collateral security to secure obligations of the Lender, Affiliates of the Lender or funds or accounts managed by the Lender or an Affiliate of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower and Lender hereby (i) irrevocably submits to the nonexclusive jurisdiction of any Delaware State or Federal court sitting in Delaware in any action or proceeding arising out of or relating to this Note, (ii) waives any defense based on doctrines of venue or <u>forum non conveniens</u>, or similar rules or doctrines, and (iii) irrevocably agrees that all claims in respect of such an action or proceeding may be heard and determined in such Delaware State or Federal court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) THE BORROWER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY ANY MEANS PERMITTED BY APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT THE BORROWER'S ADDRESS FOR NOTICES AS SET FORTH ON THE SIGNATURE PAGE HERETO, SUCH SERVICE TO BECOME EFFECTIVE 5 DAYS AFTER SUCH MAILING.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) THE BORROWER AND THE LENDER (BY ITS ACCEPTANCE HEREOF) MUTUALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.**

**[SIGNATURE PAGE FOLLOWS]**

BORROWER:

**FULL GLASS - WINC, LLC**

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| | |
|:---|:---|
| By: | /s/ Louis A. Amoroso |
| Name: Louis A. Amoroso | Name: Louis A. Amoroso |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

Address:

[\*\*\*]

Email: <u>Louis@fullglass.wine</u>

Signature Page to Promissory Note

Accepted and agreed:

**AMASS BRANDS INC**

---

| |
|:---|
| /s/ Mark T. Lynn |
| Name: Mark T. Lynn |
| Title: Chief Executive Officer |

---

Address:

AMASS Brands Inc

927 South Santa Fe Avenue

Los Angeles, California 90021

mark@amass.com

Signature Page to Promissory Note

SCHEDULE V(g)(2)

Reserved

SCHEDULE V(g)(3)

Location of Collateral

**WINESHIPPING**

NY

Vingo/ DRINKS

140 Aker Dr

Cobleskill, NY. 12043

MO

Vingo/ DRINKS

13600 Shoreline Drive, Suite 900

Earth City, MO 63045

CA

Vingo/DRINKS - 24-7 Enterprises

700 Crocker Drive

Vacaville, CA 95688

SCHEDULE V(g)(5)

Intellectual Property

Trademarks

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg. No.** | **Class / Goods** |
| United States of America | Full Glass - Winc, LLC | #TBT | Registered | 4785880 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ALMA LIBRE | Registered | 4828877 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ATAVIST | Registered | 4828858 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | AU-DELA | Registered | 4985275 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | BIG BEAT | Registered | 4796870 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | BOKETTO | Pending | 88722219 | 33 Sake |
| United States of America | Full Glass - Winc, LLC | Brethren of the Road | Registered | 4689816 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | CASA DE LILA | Pending | 90897917 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | CHOMMIE | Registered | 4988821 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | DÉCLASSÉ | Registered | 5073314 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | DIVINER | Registered | 5347935 | 33 wine |
| United States of America | Full Glass - Winc, LLC | ENDGAME | Registered | 4864507 | 33 Wine |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg. No.** | **Class / Goods** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| United States of America | Full Glass - Winc, LLC | FINKE'S WIDOW | Registered | 5197280 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | FOG LAND | Registered | 4814764 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | FORMA DE VIDA | Pending | 97461706 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | FUNK ZONE | Registered | 4733318 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | GOLDEN CHILD | Registered | 6640189 | 33 wine |
| United States of America | Full Glass - Winc, LLC | HONEY BEAST | Registered | 5142393 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | HOUSE OF LUCK | Registered | 6599173 | 33 Sake |
| United States of America | Full Glass - Winc, LLC | IDEE FIXE | Registered | 4842289 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | IF A TREE FALLS | Registered | 5004566 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | KIN + COUNTRY | Registered | 4765964 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LA MULETA | Registered | 4864499 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | L'ATELIER DU SUD | Registered | 4753309 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LAUGHING OWL | Registered | 4864511 | 33 Wine |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg. No.** | **Class / Goods** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| United States of America | Full Glass - Winc, LLC | LE FERMIER | Pending | 97329797 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LIGHT & SPACE | Registered | 6009175 | 33 wine |
| United States of America | Full Glass - Winc, LLC | LIKELIHOOD OF CONFUSION | Registered | 4988823 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | LOVES ME NOT | Registered | 5293657 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | MATCHLOCK | Registered | 5417171 | 33 wine |
| United States of America | Full Glass - Winc, LLC | OBJET D'ART | Registered | 5166174 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ONE FROM THE QUIVER | Pending | 90870209 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | PRETTY YOUNG THING | Registered | 4762003 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | PRISMUS | Registered | 4761999 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | QTY | Registered | 5197235 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | RESTLESS EARTH | Registered | 5197040 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | ROME OF THE NORTH | Registered | 6840849 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | RUZA | Registered | 4814797 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | SALIENT | Registered | 4746631 | 33 Wine |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country** | **Debtor** | **Trademark** | **Status** | **App. No./Reg. No.** | **Class / Goods** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| United States of America | Full Glass - Winc, LLC | SO THIS HAPPENED... | Registered | 4733319 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | SUPERCLUSTER | Registered | 4762004 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | THE BLUFFER | Registered | 4924159 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | THE INDEPENDENT | Registered | 4825091 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | VILLE BASSE | Registered | 4711882 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | WINC | Registered | 5143508 | 45 Preparation of customized gift sets |
| United States of America | Full Glass - Winc, LLC | WINC | Registered | 5086799 | 35 Online store and retail store services featuring wine; administering a wine club by means of providing select wines for members to purchase and arranging periodic shipments of wines to club members |
| United States of America | Full Glass - Winc, LLC | ZWICKER | Registered | 4878574 | 33 Wine |
| United States of America | Full Glass - Winc, LLC | CLUB W | Registered | 4176945 | 35 On-line retail store services featuring wine 39 Wine club services featuring periodic shipments of wine to members 43 Providing a web site where users can post ratings, reviews and recommendations on wines for wine appreciation purposes |
| United States of America | Winc, Inc. | ![](amass003_ex10-16img01.jpg) | Pending\* | 97029528 | 32 Non-alcoholic beverages containing fruit juices |
| United States of America | Winc, Inc. | ![](amass003_ex10-16img01.jpg) | Registered | 6754306 | 33 Wine, sake 35 Online retail store services featuring wine; retail store services featuring wine; administering a wine club by means of providing select wines for members to purchase and arranging periodic shipments of wines to club members |

---

\* Marks labeled with an asterisk are not currently in use and may be revived by filing a petition to revive and required extension of time.

Patents

None

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title** | **App. No.** | **Application**<br> **Date** | **Publication**<br> **Date/Issue Date** | **Publication**<br> **Number/Patent**<br> **Number** | **Company** |

---

Copyrights

None

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **App. No.** | **Application**<br> **Date** | **Reg. No.** | **Reg. Date** | **Company** |

---

**EXHIBIT A**

**DEFINITIONS**

"<u>Account</u>" is, as to any Person, any "account" of such Person as "account" is defined in the UCC with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to such Person.

"<u>Account Debtor</u>" is any "account debtor" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Affiliate</u>" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of equity interests, by contract, or otherwise.

"<u>Borrower's Books</u>" are all Borrower's books and records including ledgers, federal and state tax returns, records regarding Borrower's assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close.

"<u>Change in Control</u>" means (a) at any time, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of 25.0% or more of the ordinary voting power for the election of directors, partners, managers and members, as applicable, of Borrower (determined on a fully diluted basis), or (b) at any time the Borrower shall cease to own and control, of record and beneficially, directly or indirectly, 100.0% of each class of outstanding stock, partnership, membership, or other ownership interest or other equity securities of each Subsidiary of Borrower free and clear of all Liens.

"<u>Collateral</u>" shall mean, with respect to any Person, all personal property and Fixtures of such Person, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Chattel Paper (whether Electronic Chattel Paper or Tangible Chattel Paper);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Commercial Tort Claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise
credited thereto and the monies and property in the possession or under the control of any Lender or any of their respective affiliates,
representatives, agents, participants or correspondents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all General Intangibles (including, without limitation, all Payment Intangibles, intellectual property
(including, without limitation, all intellectual property described in the IP Security Agreements) and licenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Goods, including, without limitation, all Equipment, Fixtures and Inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all Instruments (including, without limitation, Promissory Notes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Investment Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Supporting Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all fee interests in any owned real property and all leasehold interests in real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all other tangible and intangible personal property and Fixtures of such Person (whether or not subject
to the UCC), including, without limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products,
offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of such Person described
in the preceding clauses (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties
now or hereafter held by such Person in respect of any of the items listed above), and all books, correspondence, files and other Records,
including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of
such Person or any other Person from time to time acting for such Person that at any time evidence or contain information relating to
any of the property described in the preceding clauses of this definition or are otherwise necessary or helpful in the collection or realization
thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing
Collateral;

in each case howsoever such Person's interest therein may arise or appear (whether by ownership, security interest, claim or otherwise). For the avoidance of doubt, as used in this definition the following terms shall have the respective meanings provided for in the Code: "Accounts", "Cash Proceeds", "Chattel Paper", "Commercial Tort Claim", "Commodity Account", "Commodity Contracts", "Deposit Account", "Documents", "Electronic Chattel Paper", "Equipment", "Fixtures", "General Intangibles", "Goods", "Instruments", "Inventory", "Investment Property", "Letter-of-Credit Rights", "Noncash Proceeds", "Payment Intangibles", "Proceeds", "Promissory Notes", "Record", "Security Account", "Software", "Supporting Obligations" and "Tangible Chattel Paper".

"<u>Collateral Account</u>" is any Deposit Account, Securities Account, or Commodity Account.

"<u>Commodity Account</u>" is any "commodity account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Copyrights</u>" are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

"<u>Default</u>" means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

"<u>Deposit Account</u>" is any "<u>deposit account</u>" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Dollar</u>," "<u>Dollars</u>" and the symbol "$" each means lawful money of the United States of America.

"<u>Effective Date</u>" shall mean February 29, 2024.

"<u>ERISA</u>" is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

"<u>Event of Default</u>" shall mean the occurrence and/or continuance of any one of the following:

&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>Payment Default</u>. Borrower fails to make any payment of principal or interest on the Loan, within
ten (10) Business Days after such Obligations are due and payable (which ten (10) Business Day cure period shall not apply to payments
due on the Maturity Date). During the cure period, the failure to make or pay any payment hereunder is not an Event of Default;

&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>Covenant Default</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;a. Borrower fails or neglects to perform any obligation in Section VI; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant
or agreement contained in this Note or any of Note Document, and as to any default (other than those specified in this definition of "Event
of Default") under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default
within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten
(10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to
be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed 30 days) to attempt
to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but
no advances shall be made during such cure period);

&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>Enforceability</u>. The Note or the Lien of Lender on the Collateral is no longer legally enforceable.

&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>Attachment; Levy; Restraint on Business</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;a. (i) the service of process seeking to attach, by trustee or similar process, any funds of Borrower in
excess of $25,000, or (ii) a notice of lien or levy is filed against any of Borrower's assets by any Governmental Authority, and
the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether
through the posting of a bond or otherwise); provided, however, no advances shall be made during any ten (10) day cure period; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. (i) any material portion of Borrower's assets is attached, seized, levied on, or comes into possession
of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of
its 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;(e) <u>Insolvency</u>. (i) Borrower begins an Insolvency Proceeding; or (ii) an Insolvency Proceeding is begun
against Borrower and is not dismissed or stayed within 45 days;

&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>Other Agreements</u>. There is, under any agreement to which Borrower is a party with a third party
or parties, (i) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity
of any indebtedness in an amount individually or in the aggregate in excess of $25,000; or (ii) a material breach or default under the
WINC DTC APA by Borrower,

&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>Judgments; Penalties</u>. One or more fines, penalties or final judgments, orders or decrees for the
payment of money in an amount, individually or in the aggregate, of at least $25,000 (not covered by independent third-party insurance
as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower by any Governmental Authority, and
the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or after execution thereof, or stayed
pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no advances will be made
prior to the discharge, or stay of such fine, penalty, judgment, order or decree);

&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>Misrepresentations</u>. Borrower or any Person acting for Borrower makes any representation, warranty,
or other statement in this Note or any Note Document that is incorrect in any material respect when 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;(i) <u>Lien Priority</u>. There is a material impairment in the perfection or priority of Lender's security
interest in the Collateral caused by Borrower; 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;(j) <u>Governmental Approvals</u>. Any Governmental Approval shall have been (a) revoked, rescinded, suspended,
modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority
that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the
Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension,
modification or non-renewal (i) causes, or could reasonably be expected to cause, a Material Adverse Effect, or (ii) materially adversely
affects the legal qualifications of Borrower to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission,
suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower to hold
any Governmental Approval in any other jurisdiction.

"<u>Exchange Act</u>" is the Securities Exchange Act of 1934, as amended.

"<u>Governing Documents</u>" means, with respect to any Person, the certificate or articles of incorporation or formation, by-laws, operating agreement, partnership agreement or other organizational documents of such Person.

"<u>Governmental Approvals</u>" means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

"<u>Governmental Authority</u>" means any nation or government, any Federal, state, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Insolvency Proceeding</u>" means any proceeding commenced by or against any Person under any provision of Title 11 of the United States Code, as amended from time to time, or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States or other applicable jurisdiction from time to time in effect.

"<u>Intellectual Property</u>" means, with respect to any Person, all of such Person's right, title, and interest in and to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) its Copyrights, Trademarks and Patents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented
inventions, know-how and operating manuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any and all source code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any and all design rights which may be available to such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all claims for damages by way of past, present and future infringement of any of the foregoing,
with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property
rights identified above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

"<u>IP Security Agreement</u>" means that certain Trademark Security Agreement dated as of the Original Effective Date, by Borrower in favor of Lender.

"<u>Lien</u>" means any mortgage, deed of trust, pledge, lien (statutory or otherwise), security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, any capitalized lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.

"<u>Major Event of Default</u>" means (i) an Event of Default described in paragraph (a) of the definition of Event of Default occurs and the total amount past due under that paragraph at the time exceeds $300,000 plus interest, (ii) an Event of Default described in paragraph (b) of such definition occurs as a result of Borrower violating Section VI(c), (iii) an Event of Default described in paragraph (e), (i), or (j) of such definition occurs, or (iv) the Loan is not paid in full by April 30, 2025.

"<u>Material Adverse Effect</u>" means a material adverse effect on any of (a) the assets, liabilities, or condition (financial or otherwise) of the Borrower, (b) the ability of the Borrower to perform any of its obligations under this Note or any other Note Document, (c) the legality, validity or enforceability of this Note or any other Note Document, (d) the rights and remedies of the Lender under this Note or any other Note Document, or (e) the validity, perfection or priority of a Lien in favor of the Lender on the Collateral.

"<u>Maturity Date</u>" means the earlier to occur of (a) April 30, 2025, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

"<u>Note Document</u>" means this Note, the IP Security Agreement, and any other agreement, instrument, certificate, report and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing the Loan or any other Obligation.

"<u>Obligations</u>" means all present and future indebtedness, obligations, and liabilities of the Borrower to the Lender as such arising under or in connection with this Note or any other Note Document, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any Insolvency Proceeding. Without limiting the generality of the foregoing, the Obligations of the Borrower under the Note Documents include (a) the obligation (irrespective of whether a claim therefor is allowed in an Insolvency Proceeding) to pay principal, interest, charges, expenses, premiums, fees, attorneys' fees and disbursements, indemnities and other amounts payable by such Person under the Note Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that the Lender (in its sole discretion) may elect to pay or advance on behalf of such Person as permitted under this Note.

"<u>Original Effective Date</u>" shall mean June 30, 2023

"<u>Patents</u>" means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

"<u>Permitted Investments</u>" means any investment in software, hardware, technology infrastructure, communications or security (a) required as a result of a breach by Lender of the WINC DTC APA, (b) as necessary for Borrower to comply with any contractual obligation relating to the business of Borrower, (c) in an amount not to exceed $100,000 and (d) with the approval of Lender (approval not to be unreasonably withheld, delayed or conditioned).

"<u>Person</u>" means an individual, corporation, limited liability company, partnership, association, jointstock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.

"<u>Responsible Officer</u>" means the chief executive officer, president, vice president, chief financial officer, treasurer, controller or comptroller of the Borrower, but in any event, with respect to financial matters, the chief financial officer, treasurer, controller or comptroller of the Borrower.

"<u>Restricted License</u>" is any material license or other material agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower's interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with Lender's right to sell any Collateral.

"<u>Securities Account</u>" is any "securities account" as defined in the UCC with such additions to such term as may hereafter be made.

"<u>Subordinated Debt</u>" is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all of Borrower's or any of its Subsidiaries' now or hereafter indebtedness to Lender (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lender entered into between Lender and the other creditor).

"<u>Subsidiary</u>" is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower.

"<u>Tax Distributions</u>" has the meaning set forth in the Amended and Restated Operating Agreement of Borrower as executed by Lender as of or in connection with the Effective Date.

"<u>Trademarks</u>" means, with respect to any Person, any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of such Person connected with and symbolized by such trademarks.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the laws of any other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code as in effect from time to time in such state.

"<u>WINC DTC Acquisition</u>" means the acquisition by Borrower, as buyer, of the Transferred Assets (as defined in the WINC DTC APA) of Lender, as a seller, in accordance with the terms and conditions set forth in the WINC DTC APA.

"<u>WINC DTC APA</u>" means that certain Asset Purchase Agreement, dated as of June 11, 2023, by and among, Borrower, as buyer, Lender, as a seller, and certain other parties thereto in connection with the WINC DTC Acquisition, as amended including by the Restatement Agreement.

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (iv) all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Note and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any right or interest in or to assets and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

**EXHIBIT B**

**CERTAIN COLLATERAL RIGHTS**

Upon the occurrence and during the continuance of a Major Event of Default, the Borrower agrees that the Lender may cause all or any of the Collateral to be transferred into its name or into the name of its custodians or nominees.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender may, but without obligation to do so, demand, sue for and/or collect any money or property at any time due, payable or receivable, to which it may be entitled hereunder, on account of, or in exchange for, any of the Collateral and shall have the right, for and in the name, place and stead of the Borrower, to execute endorsements, assignments or other instruments of conveyance or transfer with respect to all or any of the Collateral.

Upon the occurrence and during the continuance of a Major Event of Default, the Lender shall have the right at any time thereafter to sell, resell, assign and deliver all or any of the Collateral in one or more parcels at any exchange or broker's board or at a public or private sale. Any such sale shall be conducted in good faith and in a "commercially reasonable" manner within the meaning of any applicable uniform commercial code. The Borrower agrees that, to the extent notice of sale shall be required by law, at least ten (10) days' prior written notice to the Borrower of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.

The Borrower hereby authorizes the Lender to file at any time and from time to time to file one or more financing or continuation statements and amendments thereto, relating to the Collateral (including, without limitation, any such financing statements that (i) describe or identify the Collateral by type or in any other manner as the Lender may determine, and (ii) contain any other information required by Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment).

The Borrower shall, from time to time, (i) immediately take all actions as may be requested by the Lender to perfect the security interest of the Lender in the Collateral, including, without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106 and 9-106 of the UCC, and (ii) after a Major Event of Default, immediately take all actions as may be reasonably requested from time to time by the Lender so that control of such Collateral is obtained and at all times held by the Lender. All of the foregoing shall be at the sole cost and expense of the Borrower.

The Borrower agrees that at any time and from time to time, at the expense of the Borrower, the Borrower will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary, or that the Lender may reasonably request, in order to perfect and protect any security interest granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

If the Borrower fails to perform any obligation contained in this Note, the Lender may itself perform, or cause performance of, such obligation, and the expenses of the Lender incurred in connection therewith shall be payable by the Borrower; provided that the Lender shall not be required to perform or discharge any obligation of the Borrower. The Borrower hereby appoints the Lender as each Borrower 's attorney-in-fact, with full authority in the place and stead of the Borrower and in the name of the Borrower or otherwise, from time to time during the continuance of an Event of Default in the Lender's discretion to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Note (but the Lender shall not be obligated to and shall have no liability to the Borrower or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

The Lender shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable care. The Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Lender accords its own property, it being understood that the Lender shall not have any responsibility for (i) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Lender has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Collateral. Nothing set forth in this Note, nor the exercise by the Lender of any of the rights and remedies hereunder, shall relieve the Borrower from the performance of any obligation on the Borrower's part to be performed or observed in respect of any of the Collateral.

Following a Major Event of Default, the Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Lender to or for the credit or the account of the Borrower against any and all of the Obligations, irrespective of whether or not the Lender shall have made any demand for payment and although such Obligations may be unmatured. The rights of the Lender under the immediately preceding sentence are in addition to other rights and remedies (including, without limitation, other rights of set-off) that the Lender may have.

## Exhibit 10.19

**Exhibit 10.19**

**SECOND AMENDED AND RESTATED**

**PROMISSORY NOTE**

---

| | |
|:---|:---|
| $717714.38 | October 23, 2024 |

---

FOR VALUE RECEIVED, Full Glass - Winc, LLC, a Delaware limited liability company (the "Borrower"), HEREBY PROMISES TO PAY to the order of AMASS Brands Inc. (the "<u>Lender</u>") (i) the principal sum of Seven Hundred Seventeen Thousand Seven hundred Fourteen and 38/100 Dollars ($717,714.38) ("<u>Principal Amount</u>"), in accordance with the terms set forth in this Note (this "<u>Note</u>"), and (ii) interest on any and all principal amounts remaining unpaid hereunder from time to time outstanding, from the date hereof until such principal amounts become due, at the rate at the rate of eight percent (8.0%) per annum, and in accordance with the terms, indicated below.

This Note was originally issued pursuant to WINC DTC APA, and is the "<u>Senior Note</u>" referred to in the WINC DTC APA ("<u>Original Note</u>").

The Original Note was amended and restated by that certain Amended and Restated Secured Promissory Note, dated as of February 29, 2024 (the "ARPN").

This Note amends and restates in its entirety the ARPN effective as of the date of this Note. In addition to the terms hereof, this Note is subject to and governed by the terms of the WINC DTC APA.

Concurrent with the execution of this Note, Lender hereby waives any and all defaults and Events of Default, and any associated rights (including to default interest) existing on or prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **The Loan.** Subject to the terms and conditions hereof, the Lender made an advance available to the Borrower on the Original Effective Date, as provided in the WINC DTC APA (the "<u>Loan</u>"). The entire outstanding principal amount of the Loan, together with all accrued and unpaid interest thereon, as modified in this Note, shall be immediately due and payable in full in immediately available funds on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **Terms of the Note.**

&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) **Interest.** Interest at the rate stated above shall be due and payable in arrears, on the date any principal of this Note is prepaid (or required to be prepaid). To the extent permitted by law, if any Event of Default occurs, this Note shall bear interest from the date such Event of Default occurs until such Event of Default is waived in writing, at a rate per annum equal to the interest rate in effect plus five percent (5.00)% per annum (the "<u>Default Rate</u>"). Interest at the Default Rate shall be payable on demand. All interest shall be computed on the basis of a year of 360 days for the actual number of days elapsed.

&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) **Evidence of Loan.** This Note evidences the Loan.

&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) **Payments on Business Day.** If any amount payable hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest.

&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) **Lender's Office.** Principal, interest and all other amounts due hereunder are payable in lawful money of the United States of America and in immediately available funds at the offices of the Lender located at its address as set forth on its signature page hereto, or at such other place as the Lender shall designate in writing to the Borrower from time to time. All payments under this Note will be made without setoff, counterclaim or other defense.

&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) **Payments.** Borrower shall pay Lender, on the first Business Day of each month commencing on November 1, 2024 and through the Maturity Date $150,000 or if less the balance due, and continuing each on the first business day of each month thereafter until the Principal Amount is paid in full such payments, in each case, shall be applied and used to pay accrued and unpaid interest due on the Loan and then to the outstanding principal amount of the Loan. In addition to the payments set forth above, Borrower will make one payment of principal in the amount of $215,000.00 within one Business Day of the first funding of advances under the Bank Loan Facility following receipt by Western Alliance Bank of the Gordon Brothers appraisal or addendum to the existing appraisal in respect of the inventory purchased from Vintage Wine Estates, Inc. bankruptcy case No. 24-1157. The entire unpaid principal amount and all accrued and unpaid interest shall be due on the Maturity 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;(f) **Optional Prepayments.** The Borrower may, at its option and upon not less than three (3) Business Days' prior written notice to the Lender (or such shorter time as Lender may agree), prepay the Loan, in whole at any time or in part from time to time, without penalty, subject to the payment of all accrued interest to the date of such prepayment on the amount prepaid, <u>provided</u> that each partial voluntary prepayment shall be in a principal amount equal to $100,000 or an integral multiple thereof, or the entire remaining balance. Each notice of prepayment shall be irrevocable and shall specify the date and the amount of the prepayment of the Loan.

&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) **Use of Proceeds.** The Loan is a portion of the WINC DTC Acquisition purchase price as amended in that certain Restatement Agreement, dated as of February 29, 2024, by and between Lender and Borrower (the "<u>Restatement Agreement</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; (h) **Offset and Indemnification.** If at any time prior to payment in full of this Note by Borrower, Lender or any Seller incurs any obligations to Borrower, or any of its Affiliates or Representatives pursuant to Article VIII of the WINC DTC APA, Borrower has the right to offset and reduce the Unpaid Note Amount (as defined in the WINC DTC APA) in accordance with Section 8.5 of the WINC DTC APA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Definitions; Rules of Construction.**

&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) Capitalized terms used herein shall have the meaning as set forth in Exhibit A hereto or, if not so defined, in the WINC DTC APA. Capitalized terms used herein and not defined in Exhibit A or the WINC DTC APA shall have the meaning as defined in the UCC.

&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) The rules of construction set forth in Exhibit A shall apply to any interpretation of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **[Reserved].**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **Representations.** The Borrower represents and warrants to Lender as of the Effective Date 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;(a) the Borrower has the legal capacity and right to execute, deliver and perform this Note and each other Note Document and the Borrower is duly existing and in good standing in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of their respective business or its ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower's business or operations;

&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) the execution, delivery and performance by the Borrower of this Note and each other Note Document does not contravene any law or any contractual restriction binding on or affecting the Borrower;

&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) no Governmental Approval or other authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for the due execution, delivery and performance by the Borrower of any Note Document;

&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) this Note constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and by general principles of equity;

&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) there is no pending or threatened action or proceeding affecting the Borrower before any Governmental Authority or arbitrator that (i) if adversely determined could reasonably be expected to have a Material Adverse Effect on Borrower, or (ii) relates to this Note or any of the other Note Documents or any transaction contemplated hereby or thereby; 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;(f) the Borrower is not liable with respect to any indebtedness for borrowed money other than the Subordinated Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Covenants.** So long as any Obligations shall remain outstanding, the Borrower shall:

&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) not create, incur, assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to any indebtedness for borrowed money other than (i) indebtedness in favor of the Lender, (ii) the Subordinated Debt, (iii) the Shopify Capital credit, (iv) other indebtedness not otherwise permitted hereunder in an aggregate amount not to exceed $250,000 at any time outstanding, (v) the Bank Facility, and (vi) any indebtedness constituting "Permitted Indebtedness" under the Bank Facility Loan 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) [Reserved];

&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) [Reserved];

&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) not pay any dividends or make any distribution, other than distributions not exceeding $100,000 in the aggregate for all such distributions and Tax Distributions.

&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) not make any investments, other than Permitted Investments, unless approved in advance in writing by the Lender.

&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) [Reserved];

&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) [Reserved];

&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) [Reserved];

&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) maintain its legal existence and good standing in its jurisdiction of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower's business or operations;

&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) comply in all material respects with all laws, ordinances and regulations to which it is subject, obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under this Note and the other Note Documents, including any grant of a security interest to Lender, and promptly provide copies of any such obtained Governmental Approvals to Lender;

&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>Reporting</u>. Deliver to Lender the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations for such month in a form reasonably acceptable to Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower that could reasonably be expected to result in damages or costs to Borrower of, individually or in the aggregate, $25,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Prompt written notice of the occurrence of a Default or Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Note Documents as reasonably requested by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) permit, at reasonable times, on one (1) Business Day's notice (provided no notice is required if an Event of Default has occurred and is continuing), Lender, or its agents, the right to audit and copy Borrower's Books; provided that, such audits shall be conducted no more often than once every twelve (12) months, unless an Event of Default has occurred and is continuing, in which case such inspections and audits shall occur as often as Lender shall determine is necessary;

&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) <u>[Reserved]</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;(n) [Reserved].

&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) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) at the time that Borrower forms any Subsidiary or acquires any Subsidiary after the Effective Date, Borrower shall (a) cause such new Subsidiary to provide to Lender a joinder to this Note and the Note Documents to become a co-borrower hereunder (as determined by Lender in its sole discretion), together with documentation, all in form and substance satisfactory to Lender, (b) provide to Lender appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Lender; and (c) provide to Lender all other documentation in form and substance satisfactory to Lender, including one or more opinions of counsel satisfactory to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section shall be a Note Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) not directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a non- affiliated Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) not merge or consolidate with any other Person, or acquire all or substantially all of the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person unless (i) the Borrower has received Lender's prior written consent to consummate such merger or consolidation on terms that are in form and substance reasonably satisfactory to Lender, and (ii) no Event of Default has occurred and is continuing. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) not (i) become an "investment company" or a company controlled by an "investment company", under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of the Loan for that purpose; (ii)(A) fail to meet the minimum funding requirements of ERISA, (B) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, (C) fail to comply with the Federal Fair Labor Standards Act or (D) violate any other law or regulation, if the foregoing subclauses (A) through (D), individually or in the aggregate, could reasonably be expected to have a material adverse effect on Borrower's business or operations; or (iii) withdraw or permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) not (i) engage in any business other than the businesses currently engaged in by Borrower or a business reasonably related thereto; (ii) permit, allow or suffer to occur any Change in Control; or (iii) without at least 30 days prior written notice to Lender, (1) [reserved], (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization; 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) not, except as expressly permitted under the terms of the subordination, intercreditor, or other similar agreement to which any Subordinated Debt is subject, (a) make or permit any payment on such Subordinated Debt; or (b) amend any provision in any document relating to such Subordinated Debt which would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **[Reserved].**

VIII**. Events of Default.**

&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) If a Major Event of Default shall occur then the Lender may by written notice to the Borrower (i) terminate any commitments to make any further Loans (if any) and declare the then outstanding principal amount of this Note, and all other amounts due hereunder to be immediately due and payable, whereupon the outstanding principal amount of this Note and all such other amounts, shall become and shall be forthwith due and payable, without diligence, presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, (ii) require that the Reduction Amount be reinstated and added to the then Principal Amount of the Note, and (iii) exercise any and all of its other rights under applicable law, hereunder and under the other Note Documents; <u>provided</u>, <u>however</u>, that upon the occurrence of any Event of Default described in clause (e) of the definition of "Event of Default", without any notice to the Borrower or any other Person or any act by the Lender, all commitments to make any further Loans (if any) shall automatically terminate, all Loans then outstanding, together with all accrued and unpaid interest thereon, all fees and all other amounts due under this Note and the other Note Documents, shall be accelerated and become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by the Borrower. All proceeds received following any Event of Default hereunder shall be applied to this Note or any indebtedness arising hereunder or the other Obligations or in conjunction with this Note as the Lender shall determine in its sole and absolute discretion.

&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 case of an Event of Default that is not a Major Event of Default, regardless of any rights that might be available at law or in equity, Lender's sole remedy is to apply the Default Rate to the outstanding unpaid principal balance of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **Successors and Assigns.** This Note shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns, except that the Borrower may not assign any rights or obligations hereunder or any interest herein without the prior written consent of the Lender (any such assignment being null and void). The Lender may assign to one or more other entities all or a portion of its rights under this Note with the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned); <u>provided,</u> that (i) no such consent shall be required (x) during the continuance of an Event of Default or (y) for any assignments to any Affiliates or related funds of the Lender, and (ii) such consent shall have been deemed to have been given without the need for further action if the Borrower does not respond in writing to a request by the Lender for any such consent within five (5) days after receipt of such request from the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. **[Reserved].**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XI. **Miscellaneous.**

&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) All notices or other communications provided for hereunder shall be in writing (including telecommunications) and shall be mailed, e-mailed or delivered to the Borrower at the address set forth next to the Borrower's signature, or at such other address as may hereafter be specified by the Borrower to the Lender (at its address set forth herein) in writing. All notices and communications shall be effective (i) if mailed, when received at the address specified above, (ii) if e-mailed, upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment) and (iii) if delivered, upon delivery.

&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) No failure on the part of the Lender to exercise, and no delay in exercising, any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof by the Lender preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy of the Lender. No amendment or waiver of any provision of this Note, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

&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) Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such 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;(d) The Borrower hereby agrees to pay promptly after invoicing thereof all costs and expenses (including, without limitation, all reasonable fees, expenses and other client charges of counsel to the Lender) incurred by the Lender in connection with the enforcement of the Lender's rights, and the collection of all amounts due, hereunder. The obligations of the Borrower under this clause (d) shall survive the payment in full of this Note.

&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) Notwithstanding anything to the contrary set forth in this Note, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the "<u>Maximum Lawful Rate</u>"), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter the rate of interest payable hereunder is less than the Maximum Lawful Rate, the Borrower shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Lender is equal to the total interest that would have been received had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Effective Date as otherwise provided in this Note. Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the manner provided in Section II, unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall again apply. In no event shall the total interest received by the Lender pursuant to the terms hereof exceed the amount that the Lender could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days in the year in which such calculation is made. If, notwithstanding the provisions of this Section XI(e), a court of competent jurisdiction shall finally determine that the Lender has received interest hereunder in excess of the Maximum Lawful Rate, the Lender shall, to the extent permitted by applicable law, promptly apply such excess to the payment of other outstanding Obligations and thereafter shall refund any excess to the Borrower or as a court of competent jurisdiction may otherwise order.

&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) The Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Note and the other Note Documents as collateral security to secure obligations of the Lender, Affiliates of the Lender or funds or accounts managed by the Lender or an Affiliate of the Lender.

&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) The Borrower and Lender hereby (i) irrevocably submits to the nonexclusive jurisdiction of any Delaware State or Federal court sitting in Delaware in any action or proceeding arising out of or relating to this Note, (ii) waives any defense based on doctrines of venue or <u>forum non conveniens,</u> or similar rules or doctrines, and (iii) irrevocably agrees that all claims in respect of such an action or proceeding may be heard and determined in such Delaware State or Federal court.

&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) THE BORROWER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY ANY MEANS PERMITTED BY APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT THE BORROWER'S ADDRESS FOR NOTICES AS SET FORTH ON THE SIGNATURE PAGE HERETO, SUCH SERVICE TO BECOME EFFECTIVE 5 DAYS AFTER SUCH MAILING.**

&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) THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.**

&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) THE BORROWER AND THE LENDER (BY ITS ACCEPTANCE HEREOF) MUTUALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS NOTE.**

&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) The Lender covenants and agrees that upon receipt of $550,000 repayment in respect of the ARPN: (i) this Note shall become effective, (ii) this Note will amend, restate, and supersede in its entirety the ARPN, (iii) the IP Security Agreement and any security interest that Lender may have had in any of Borrower's property and assets shall automatically and without any further action of Borrower or Lender, terminate and be of no force and effect, (iv) the Borrower or its designee is hereby authorized to file UCC termination statements, and terminations of any trademark security interest filings with the U.S. Patent and Trademark Office in order to evidence the termination of all liens and security interests, and (v) Lender will, at the Borrower's expense, execute and deliver such other documents as the Borrower, or its designee, may reasonably request in order to evidence the termination of the liens and security interests in the Borrower's property or assets.

**[SIGNATURE PAGE FOLLOWS]**

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| | |
|:---|:---|
| BORROWER: | BORROWER: |
| **FULL GLASS - WINC, LLC** | **FULL GLASS - WINC, LLC** |
| By: | /s/ Louis A. Amoroso |
| Name: | Louis A. Amoroso |
| Title: Chief Executive Officer | Title: Chief Executive Officer |
| Address: | Address: |
| [\*\*\*] | [\*\*\*] |
| Attn: Louis A. Amoroso | Attn: Louis A. Amoroso |
| Email: | <u>Louis@fullglass.wine</u> |

---

Signature Page to Promissory Note

---

| |
|:---|
| Accepted and agreed: |
| **AMASS BRANDS INC** |
| /s/ Mark T. Lynn |
| Name: Mark T. Lynn |
| Title: Chief Executive Officer |

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| |
|:---|
| Address: |
| AMASS Brands Inc |
| 927 South Santa Fe Avenue |
| Los Angeles, California 90021 |
| mark@amass.com |

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Signature Page to Promissory Note

**EXHIBIT A**

**DEFINITIONS**

"<u>Account</u>" is, as to any Person, any "account" of such Person as "account" is defined in the UCC with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to such Person.

"<u>Affiliate</u>" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of equity interests, by contract, or otherwise.

"<u>Bank Facility</u>" means the credit accommodation made to Borrower pursuant to the terms of the Bank Facility Loan Agreement and any other credit accommodation arising as the result of a refinancing.

"<u>Bank Facility Loan Agreement</u>" means that certain Loan and Security Agreement, dated as the date of this Note, by and among Western Alliance Bank, as lender and Full Glass Wine Co., LLC, Full Glass - Licensing LLC, Full Glass - Winc, LLC, Full Glass - Wine Insiders, LLC, Full Glass Bright Cellars, Inc., Full Glass - Splash, LLC as the same may be amended, amended and restated or otherwise modified and any credit agreement, loan agreement, loan and security agreement or similar financing agreement resulting from the refinancing of the Bank Facility.

"<u>Borrower's Books</u>" are all Borrower's books and records including ledgers, federal and state tax returns, records regarding Borrower's assets or liabilities, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close.

"<u>Change in Control</u>" means (a) at any time, any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of 25.0% or more of the ordinary voting power for the election of directors, partners, managers and members, as applicable, of Borrower (determined on a fully diluted basis), or (b) at any time the Borrower shall cease to own and control, of record and beneficially, directly or indirectly, 100.0% of each class of outstanding stock, partnership, membership, or other ownership interest or other equity securities of each Subsidiary of Borrower.

"<u>Default</u>" means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

"<u>Dollar</u>," "<u>Dollars</u>" and the symbol "$" each means lawful money of the United States of America.

"<u>Effective Date</u>" shall mean October 23, 2024.

"<u>ERISA</u>" is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

"<u>Event of Default</u>" shall mean the occurrence and/or continuance of any one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment Default</u>. Borrower fails to make any payment of principal or interest on the Loan, within ten (10) Business Days after such Obligations are due and payable (which ten (10) Business Day cure period shall not apply to payments due on the Maturity Date). During the cure period, the failure to make or pay any payment hereunder is not an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Covenant Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Borrower fails or neglects to perform any obligation in Section VI; 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;b. Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Note or any of Note Document, and as to any default (other than those specified in this definition of "Event of Default") under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed 30 days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no advances shall be made during such cure period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Enforceability</u>. The Note is no longer legally enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Attachment; Levy; Restraint on Business</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. (i) the service of process seeking to attach, by trustee or similar process, any funds of Borrower in excess of $25,000, or (ii) a notice of lien or levy is filed against any of Borrower's assets by any Governmental Authority, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no advances shall be made during any ten (10) day cure period; 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;b. (i) any material portion of Borrower's assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Insolvency.</u> (i) Borrower begins an Insolvency Proceeding; or (ii) an Insolvency Proceeding is begun against Borrower and is not dismissed or stayed within 45 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Other Agreements</u>. There is, under any agreement to which Borrower is a party with a third party or parties, (i) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any indebtedness in an amount individually or in the aggregate in excess of $25,000; or (ii) a material breach or default under the WINC DTC APA by Borrower,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Judgments; Penalties</u>. One or more fines, penalties or final judgments, orders or decrees for the payment of money in an amount, individually or in the aggregate, of at least $25,000 (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower by any Governmental Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or after execution thereof, or stayed pending appeal, or such judgments are not discharged prior to the expiration of any such stay (provided that no advances will be made prior to the discharge, or stay of such fine, penalty, judgment, order or decree);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Misrepresentations</u>. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement in this Note or any Note Document that is incorrect in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>[Reserved]</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Governmental Approvals</u>. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) causes, or could reasonably be expected to cause, a Material Adverse Effect, or (ii) materially adversely affects the legal qualifications of Borrower to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower to hold any Governmental Approval in any other jurisdiction.

"<u>Exchange Act</u>" is the Securities Exchange Act of 1934, as amended.

"<u>Governing Documents</u>" means, with respect to any Person, the certificate or articles of incorporation or formation, by-laws, operating agreement, partnership agreement or other organizational documents of such Person.

"<u>Governmental Approvals</u>" means any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

"<u>Governmental Authority</u>" means any nation or government, any Federal, state, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

"<u>Insolvency Proceeding</u>" means any proceeding commenced by or against any Person under any provision of Title 11 of the United States Code, as amended from time to time, or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States or other applicable jurisdiction from time to time in effect.

"<u>IP Security Agreement</u>" means that certain Trademark Security Agreement dated as of the Original Effective Date, by Borrower in favor of Lender.

"<u>Major Event of Default</u>" means (i) an Event of Default described in paragraph (a) of the definition of Event of Default occurs and the total amount past due under that paragraph at the time exceeds $300,000 plus interest, (ii) an Event of Default described in paragraph (b) of such definition occurs as a result of Borrower violating Section VI(c), (iii) an Event of Default described in paragraph (e), (i), or (j) of such definition occurs, or (iv) the Loan is not paid in full by April 30, 2025.

"<u>Material Adverse Effect</u>" means a material adverse effect on any of (a) the assets, liabilities, or condition (financial or otherwise) of the Borrower, (b) the ability of the Borrower to perform any of its obligations under this Note or any other Note Document, (c) the legality, validity or enforceability of this Note or any other Note Document, or (d) the rights and remedies of the Lender under this Note or any other Note Document.

"<u>Maturity Date</u>" means the earlier to occur of (a) April 30, 2025, and (b) the date on which the Obligations are accelerated and become due and owing pursuant to the terms of Section VIII of this Note.

"<u>Note Document</u>" means this Note and any other agreement, instrument, certificate, report and other document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing the Loan or any other Obligation.

"<u>Obligations</u>" means all present and future indebtedness, obligations, and liabilities of the Borrower to the Lender as such arising under or in connection with this Note or any other Note Document, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any Insolvency Proceeding. Without limiting the generality of the foregoing, the Obligations of the Borrower under the Note Documents include (a) the obligation (irrespective of whether a claim therefor is allowed in an Insolvency Proceeding) to pay principal, interest, charges, expenses, premiums, fees, attorneys' fees and disbursements, indemnities and other amounts payable by such Person under the Note Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that the Lender (in its sole discretion) may elect to pay or advance on behalf of such Person as permitted under this Note.

"<u>Original Effective Date</u>" shall mean June 30, 2023

"<u>Permitted Investments</u>" means "Permitted Investments" as defined in Bank Facility Loan Agreement.

"<u>Person</u>" means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.

"<u>Responsible Officer</u>" means the chief executive officer, president, vice president, chief financial officer, treasurer, controller or comptroller of the Borrower, but in any event, with respect to financial matters, the chief financial officer, treasurer, controller or comptroller of the Borrower.

"<u>Subordinated Debt</u>" is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all of Borrower's or any of its Subsidiaries' now or hereafter indebtedness to Lender (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lender entered into between Lender and the other creditor).

"<u>Subsidiary</u>" is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower.

"<u>Tax Distributions</u>" has the meaning set forth in the Amended and Restated Operating Agreement of Borrower as executed by Lender as of or in connection with the Effective Date.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York.

"<u>WINC DTC Acquisition</u>" means the acquisition by Borrower, as buyer, of the Transferred Assets (as defined in the WINC DTC APA) of Lender, as a seller, in accordance with the terms and conditions set forth in the WINC DTC APA.

"<u>WINC DTC APA</u>" means that certain Asset Purchase Agreement, dated as of June 11, 2023, by and among, Borrower, as buyer, Lender, as a seller, and certain other parties thereto in connection with the WINC DTC Acquisition, as amended including by the Restatement Agreement.

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof' and "hereunder", and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (iv) all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Note and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any right or interest in or to assets and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

## Exhibit 10.20

**Exhibit 10.20**

***Execution Version***

**UNIT PURCHASE AGREEMENT**

THIS UNIT PURCHASE AGREEMENT (this **"Agreement")** is made as of September 19, 2024 (the **"Effective Date"),** by and among AMASS Brands Inc (the **"Purchaser"),** on the one hand, and 222 Spirits Holdco, LLC, a Delaware limited liability company (the **"Company")** and The Adhati Trust and JAJC Investments LLC (together, the **"Sellers"),** on the other hand.

**RECITALS**

**WHEREAS,** the existing members of the Company (the **"Members")** have each determined that it is advisable and in the best interest of the Company to enter into this Agreement, upon the terms set forth herein;

**WHEREAS,** simultaneously with the transactions contemplated by this Agreement, the Purchaser is conducting an equity financing, wherein the Purchaser is selling Series B-2 Preferred Stock of Purchaser and Series B-3 Preferred Stock of Purchaser **("Series B-3 Stock")** for the purposes of raising up to $12,000,000 (including the Purchase Price (as hereinafter defined)), which amount may be increased or decreased in Purchaser's discretion, pursuant to the terms of that certain Series B-2 and Series B-3 Preferred Stock Purchase Agreement in the form attached hereto as <u>Exhibit A</u> (the **"Series B-2/B-3 Purchase Agreement");** and

**WHEREAS,** the Purchaser desires to purchase, and each of the Sellers desires to sell to the Purchaser, the number of Class A Common Units (collectively, the **"Sold Units")** set forth opposite such Seller's name on <u>Schedule A</u> hereto, subject to the terms and conditions set forth herein, in exchange for the number of Series B-3 Stock of Purchaser set forth opposite each such Seller's name on <u>Schedule A</u> hereto (the **"Sellers' Series B-3 Stock"),** which aggregate value of the Sellers' Series B-3 Stock shall equal $5,000,000 (the **"Purchase Price")** (collectively, the **"Transactions").**

**AGREEMENT**

**NOW, THEREFORE,** in consideration of the foregoing and the representations, warranties, covenants and promises set forth herein, the Purchaser, the Sellers and the Company hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase and Sale of Sold Units</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;1.1 <u>Sale of Sold Units</u>. Subject to the terms and conditions of this Agreement, the Purchaser agrees to purchase at the Closing (as defined below), and each of the Sellers agree to sell to the Purchaser at the Closing, the Sold Units, in exchange for the Sellers' Series B-3 Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Closing; Delivery</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) The purchase and sale of the Sold Units shall take place remotely via the electronic exchange of documents and signatures on the Effective Date, or at such other time and place as the Purchaser, the Sellers and the Company mutually agree upon in writing (which time and place are designated as the **"Closing").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) At the Closing, (i) the Company shall update its books and records to reflect the ownership of the Sold Units purchased by the Purchaser in exchange for the Sellers' Series B-3 Stock and (ii) each Seller shall execute the Series B-2/B-3 Purchase Agreement and any other transaction documents related thereto as reasonably requested by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Defined Terms Used in this Agreement</u>. In addition to the terms defined above or elsewhere in this Agreement, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Action"** means any claim, action, suit, arbitration, charge or proceeding by or before any Governmental Authority or any other third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Affiliate"** means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person or any investment fund or vehicle now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and the terms "controlled" and "controlling" have meanings correlative thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"AMASS Charter"** means that certain Fifth Amended and Restated Certificate of Incorporation of the Purchaser, dated as of June 18, 2024, attached hereto as <u>Exhibit G</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;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"AMASS IRA"** means that certain Amended and Restated Investors' Rights Agreement, dated as of June 24, 2024, by and among the Purchaser, the Sellers and each of the other investors listed on Schedule A thereto, in the form attached hereto as <u>Exhibit H</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;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"AMASS ROFRA"** means that certain Amended and Restated Right of First Refusal and Co-Sale Agreement, dated as of June 24, 2024, by and among the Purchaser, the Sellers and each of the other investors listed on Schedule A thereto, in the form attached hereto as <u>Exhibit I</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;&nbsp;&nbsp;&nbsp;&nbsp;(f) **"AMASS Voting Agreement"** means that certain Amended and Restated Voting Agreement, dated as of June 24, 2024, by and among the Purchaser, the Sellers and each other investor listed on Schedule A thereto, in the form attached hereto as <u>Exhibit J</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;&nbsp;&nbsp;&nbsp;&nbsp;(g) **"Amended LLC Agreement"** means that certain Third Amended and Restated Limited Liability Company Agreement of the Company, dated as of the Effective Date, in the form of <u>Exhibit B</u> attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;(h) **"Board of Managers"** means the Board of Managers of the Company in effect immediately following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Code"** means the United States Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated by the Internal Revenue Service thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Company Covered Person"** means, with respect to the Company as an "issuer" for purposes of Rule 506 promulgated under the Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Company-Controlled Intellectual Property"** means (i) Intellectual Property owned or purported to be owned by the Company and (ii) Intellectual Property exclusively in-licensed to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Company Intellectual Property"** means Intellectual Property that is used in, held for use in or necessary to the conduct of the Company's business as now conducted and as presently proposed to be conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Founders"** means Adam Levine, Behati Prinsloo Levine and Jeffrey Azoff.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Governmental Authority"** means any United States federal, state or local governmental, regulatory or administrative authority, agency, division or commission or any judicial or arbitral body of competent 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Indemnification Agreement"** means the agreement between the Company and Mark T. Lynn, Geoff McFarlane, Richard Feldstein and Richard Statter, each serving on the Board of Managers, dated as of the Effective Date, in the form of <u>Exhibit C</u> attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"Intellectual Property"** means all patents, patent applications, registered and unregistered trademarks, trademark applications, registered and unregistered service marks, service mark applications, tradenames, copyrights, trade secrets, domain names, mask works, software, information and proprietary rights and processes, similar or other intellectual property rights, subject matter of any of the foregoing, tangible embodiments of any of the foregoing, and licenses in, to and under any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **"Key Employee"** means David Gimpelson, and any executive-level employee (including division director and vice president-level positions) and any employee who either alone or in concert with others develops, invents, programs or designs any Company 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;&nbsp;&nbsp;&nbsp;&nbsp;(r) **"Knowledge"** including the phrase **"to the Company's knowledge"** shall mean the actual knowledge after reasonable investigation of the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **"LLC Agreement"** means the Second Amended and Restated Operating Agreement of the Company, dated as of September 8, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **"Losses"** means losses, damages, awards, fines, interest, penalties, expenses, fees, costs and other out-of-pocket amounts paid in settlement (including reasonable fees and reasonable expenses of counsel) incurred or suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **"Made Available"** means provided by the Company, The Azoff Company LLC or their respective Affiliates or representatives to the Purchaser or its legal counsel via the Virtual Data Room no less than two (2) business days before the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **"Management Holdco"** means 222 Spirits Management Holdco, LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **"Master Services Agreement"** means the master services agreement between the Company and the Purchaser, dated as of the Effective Date, in the form of <u>Exhibit D</u> attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;(x) **"Material Adverse Effect"** means any event, change, occurrence or effect that would have a material adverse effect on the business, financial condition or results of operations of the Company; <u>provided, however,</u> that no event, change, occurrence or effect directly or indirectly arising out of, attributable to or resulting from any of the following, alone or in combination, shall be deemed to constitute, or be taken into account in determining whether there has been or would or could be, a Material Adverse Effect: (1) any changes in general economic or business conditions or in the financial, debt, banking, capital, credit or securities markets, or in interest or exchange rates, in each case, in the United States or elsewhere in the world where the Company's products are sold, (2) any changes or developments generally affecting any of the industries in which the Company operates, (3) any actions required under this Agreement to obtain any approval or authorization under applicable laws for the consummation of the transactions contemplated hereby, (4) any adoption, implementation, modification, repeal or other changes in applicable laws, decrees, orders or other directives of any Governmental Authority or any changes in applicable accounting regulations or principles, or in interpretations of any of the foregoing, (5) political, geopolitical, social or regulatory conditions, including any outbreak, continuation or escalation of any military conflict, declared or undeclared war, armed hostilities, civil unrest, public demonstrations, acts of sabotage, acts of foreign or domestic terrorism, malicious cyberenabled activities (including hacking, data loss, ransomware and other unauthorized cyber intrusions that seek to compromise the confidentiality, integrity or availability of computer or communication systems or information therein), or governmental shutdown, (6) any natural or manmade disasters or calamities, weather conditions including hurricanes, floods, tornados, tsunamis, earthquakes and wild fires, cyber outages, or other force majeure events, (7) any epidemic, pandemic or outbreak of disease (including, for the avoidance of doubt, COVID-19), and (8) any other regional, national or international calamity, crisis or emergency, whether or not caused by any Person; <u>provided,</u> in any case, to the extent the impact of such event, change, occurrence or effect is not disproportionately adverse to the Company, as compared to other companies operating in the geographic markets in which the Company conducts 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **"NIL Agreement"** means the name, image and likeness agreement entered into by the Company and DG, LLC f/s/o Behati Prinsloo Levine and Adam Levine, dated as of the Effective Date, in the form of <u>Exhibit E</u> attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;(z) **"Person"** means any individual, corporation, partnership, trust, limited liability company, association or other entity, including any Governmental Authority and including any successor, by merger or otherwise, of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **"Protected Communication"** means any and all communications in whatever form, whether written, oral, video, electronic or otherwise, that, upon or prior to the Closing, has occurred between or among any Seller, or any of their respective Affiliates or representatives, on the one hand, and Gibson, Dunn & Crutcher LLP, on the other hand, to the extent (a) relating to the potential sale of the Company to the Purchaser, the Transaction Agreements, or the negotiation or analysis thereof or any of the other transactions contemplated thereby and (b) which was an attorney-client privileged communication between such Person, on the one hand, and Gibson, Dunn & Crutcher LLP, on the other hand, or attorney work product of Gibson, Dunn & Crutcher LLP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **"Restrictive Covenant Agreements"** means the restrictive covenant agreements entered into by the Company and each Founder, dated as of the Effective Date, in the forms of <u>Exhibit F-1</u> and <u>Exhibit F-2</u> attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **"Securities Act"** means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **"Series B-2/B-3 Side Letter"** means that certain letter agreement dated as of September 19, 2024, by and between the Purchaser and the Sellers, in the form attached hereto as <u>Exhibit K</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;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **"Transaction Agreements"** means this Agreement, the Series B- 2/B-3 Purchase Agreement, the Amended LLC Agreement, each Indemnification Agreement, the Master Services Agreement, the NIL Agreement, each Restrictive Covenant Agreement, the AMASS Charter, the AMASS IRA, the AMASS ROFRA, the AMASS Voting Agreement, and the Series B-2/B-3 Side Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **"Units"** means Class A Common Units, Class B Common Units and Incentive Units (each as hereinafter defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **"Virtual Data Room"** means the electronic data room operated by the Sellers, the Company and Gibson, Dunn & Crutcher LLP located at https://extranet.gibsondunn.com/c/95610/00001/ on behalf of the Seller's and the Company, for purposes of, among other things, to facilities the Purchaser's evaluation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Representations and Warranties of the Company</u>. Each of the Sellers and the Company, jointly and severally, hereby represent and warrant to the Purchaser that the following representations are true and complete as of the date of this Agreement, except as otherwise indicated.

For purposes of these representations and warranties (other than those in <u>Sections 2.2</u>, <u>2.3</u>, <u>2.4</u> and <u>2.5)</u>, the term the **"Company"** shall include any and all subsidiaries of the Company, unless otherwise noted 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;2.1 <u>Organization, Good Standing, Corporate Power and Qualification</u>. The Company 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 corporate power and authority to carry on its business as presently conducted and to execute, deliver and perform its obligations under the Transaction Agreements to which it is, or will be, a party. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Capitalization</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) The authorized capital of the Company consists, immediately prior to the Closing, of: 8,700 authorized Class A Common Units (the **"Class A Common Units"),** all of which are issued and outstanding immediately prior to the Closing; 500 authorized Class B Common Units (the **"Class B Common Units"),** 0 of which are issued and outstanding immediately prior to the Closing; and 800 authorized Incentive Units (the **"Incentive Units"),** 316.5225 of which are issued and outstanding immediately prior to the Closing. All of the outstanding Units have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Schedule 10 to the Amended LLC Agreement sets forth the capitalization of the Company immediately following the Closing, including the following: (i) issued and outstanding Class A Common Units; (ii) issued and outstanding Class B Common Units; (iii) issued and outstanding Incentive Units, including vesting schedule and distribution threshold; (iv) amount of Incentive Units reserved for future award grants; and (v) warrants or unit purchase rights, if any. Except for (A) the rights provided in the LLC Agreement and Amended LLC Agreement, (B) the securities and rights described in <u>Section 2.2(b)</u> of this Agreement, (C) the Award Agreement by and between the Company and Management Holdco, dated as of July 26, 2022 (the "<u>OpCo-Holdco Agreement</u>") and (D) each Notice of Equity Incentive Award, issued by Management Holdco to David Gimpelson on July 26, 2022 and July 19, 2023 (collectively, the "<u>Gimpelson Awards</u>"), there are no outstanding options, warrants, profits interests, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any Units or any securities convertible into or exchangeable for Units. All outstanding Units underlying outstanding options are subject to (i) a right of first refusal in favor of the Company upon any proposed transfer (other than transfers for estate planning purposes); and (ii) a lock-up or market standoff agreement of not less than one hundred eighty (180) days following the Company's initial public offering pursuant to a registration statement filed with the Securities and Exchange Commission under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except for the OpCo-Holdco Agreement and the Gimpelson Awards, none of the Company's unit purchase agreements, award agreements, or other incentive unit documents that remain outstanding contain a provision for acceleration of vesting (or lapse of a repurchase right) or other changes in the vesting provisions or other terms of such agreement or understanding upon the occurrence of any event or combination of events contemplated by this Agreement. The Company has never adjusted or amended the distribution threshold, exercise hurdle or exercise price of any incentive unit or unit options previously awarded and issued and outstanding as of the date of this Agreement, whether through amendment, cancellation, replacement grant, repricing, or any other means. The Company has no obligation (contingent or otherwise) to purchase or redeem any of its Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>409A</u>. The Company believes in good faith that any "nonqualified deferred compensation plan" (as such term is defined under Section 409A(d)(1) of the Code and the guidance thereunder) under which the Company makes payments complies, in both form and operation, with the requirements of Section 409A of the Code and the guidance thereunder, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Subsidiaries</u>. Except for Management Holdco and 222 Spirits Company LLC, a California limited liability company, the Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other business entity. The Company is not a participant in any joint venture, partnership or similar arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Authorization</u>. All company action required to be taken by the Members necessary to authorize the Company to enter into the Transaction Agreements to which it is, or will be, a party, and to sell the Sold Units at the Closing, has been taken or will be taken prior to the Closing. All action on the part of the officers of the Company necessary for the execution and delivery of the Transaction Agreements to which it is, or will be, a party, the performance of all obligations of the Company under such Transaction Agreements to be performed as of the Closing, and the purchase, sale and delivery of the Sold Units has been taken as of the Closing. Assuming the due authorization, execution and delivery of this Agreement by the Purchaser and the Sellers and the other Transaction Agreements to which it is, or will be, a party, this Agreement and such other Transaction Agreements shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Valid Sale of Sold Units</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;&nbsp;&nbsp;&nbsp;&nbsp;(b) No "bad actor" disqualifying event described in Rule 506(d)(1)(i)- (viii) of the Securities Act (a **"Disqualification Event")** is applicable to the Company or any Company Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3), is applicable, and has been disclosed to the Purchaser prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Governmental Consents and Filings</u>. Assuming the accuracy of the representations made by the Purchaser in <u>Section 4</u> of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local Governmental Authority is required on the part of the Company in connection with the Company's valid execution, delivery and performance of this Agreement and consummation of the transactions contemplated by this Agreement, except where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or prevent, materially delay or materially impede the performance by the Company of its obligations under this Agreement and each of the Transaction Agreements to which it is, or will be, a party or the consummation of the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Litigation</u>. There is no Action pending or, to the Company's knowledge, threatened in writing (i) against any Key Employee, (ii) against the Company or any consultant, officer or director of the Company arising out of their consulting, employment or other relationship with the Company or (iii) that questions the validity of the Transaction Agreements to which the Company is, or will be, a party or the right of the Company to enter into them, or to consummate the transactions contemplated such Transaction Agreements in each case of <u>clauses (i)</u> through <u>(iii)</u> that would, if determined adversely to the foregoing Persons, would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. Neither the Company nor any of its consultants, officers, directors or Key Employees is a party or is named as subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality (in the case of consultants, officers, directors or Key Employees, such as would affect the Company) that is reasonably expected to have a Material Adverse Effect. There is no Action by the Company pending or which the Company intends to initiate that is reasonably be expected to have a Material Adverse Effect. The foregoing includes, without limitation, Actions pending or threatened (or any basis therefor known to the Company) involving the prior employment or service relationship of any of the Company's employees, service providers, consultants, officers or directors for their services provided in connection with the Company's business, any information or techniques allegedly proprietary to any of their former employers or their obligations under any agreements with prior employers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Intellectual Property</u>. The representations and warranties contained in this <u>Section 2.8</u> are the only representations and warranties being made with respect to Intellectual Property owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Company owns, possesses, has developed, or has acquired or licensed on commercially reasonable terms, legal rights to all Company Intellectual Property sufficient to carry out its business as now conducted in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No claim has been asserted or threatened against the Company that the use or exploitation by the Company of any Company Intellectual Property infringes the Intellectual Property of any third party, which infringement would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To the Company's knowledge, no third Person is presently infringing any Company-Controlled Intellectual Property in a way that is expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company has taken commercially reasonable measures to maintain and protect all confidential information and trade secrets of the Company that the Company intended to maintain as confidential or a trade secret. To the Company's knowledge, there has been no unlawful, accidental or unauthorized disclosure of any confidential information and trade secrets of the Company that the Company intended to maintain as confidential or a trade secret that is expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company has Made Available to the Purchaser a true and complete list of all material (i) patents and patent applications, (ii) registered trademarks or service marks and applications to register any trademarks or service marks, (iii) registered domain names and (iv) registered copyrights and applications for registration of copyrights, in each case owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Compliance with Other Instruments and Law</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is not in violation or default (a) of any provisions of its LLC Agreement or other governing documents, (b) of any instrument, judgment, order, writ or decree, (c) under any note, indenture or mortgage, (d) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound, or (e) of any provision of federal or state statute, rule or regulation applicable to the Company, including, but not limited to, the Federal Alcohol Administration Act, Federal Trade Commission Act, Federal Food, Drug and Cosmetic Act, the Good Manufacturing Practices and other manufacturing standards of the Food and Drug Administration, the Federal Torts Claim Act, state unfair competition and deceptive trade practices statutes, Food Allergen Labeling and Consumer Protection Act of 2004, the Organic Foods Production Act, and the Sustainable Food Trade Association, in each case that individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) There exist no civil, criminal or administrative actions, proceedings, suits, demands or claims filed by or before any Governmental Authority, and, to the knowledge of the Company, there are no such aforementioned legal proceedings threatened against the Company for injury to any Person or property suffered as a result of any product designed, manufactured or sold by the Company, that individually or in the aggregate would reasonably be expected to have a Material Adverse Effect. The Company has not received any written notice regarding any violation of applicable law, contractual commitment or liability for personal injury with respect to any product designed, manufactured, or sold by the Company, that individually or in the aggregate would reasonably be expected to have a Material Adverse Effect. No product designed, manufactured or sold by the Company has been the subject of any recall or other similar action and, to the knowledge of the Company, no event has occurred or circumstance exists that would (with or without notice or lapse of time), that individually or in the aggregate would reasonably be expected to have a Material Adverse Effect, give rise to or serve as a basis for any such recall or other similar action relating to any such product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except as would not, individually or in the aggregate, reasonably be expected to be material to the Company, all of the Company's products (the **"Company Products"):** (i) have been properly handled and stored, and are properly packaged and labeled and are fit for human consumption, and (ii) are and have been produced, formulated, manufactured, labeled, stored, tested, and packed, by or on behalf of the Company in compliance in all material respects with all applicable laws. The Company has not received any written notice that any Company Product is, or at any time in the past three (3) years has been, the subject of any investigation, warning letter, notice of violation, seizure, injunction, regulatory enforcement Action, or criminal Action issued, initiated or threatened by the United States Food and Drug Administration or the United States Federal Alcohol and Tobacco Tax and Trade Bureau **("TTB")** or any comparable state or foreign Governmental Authority. There is no, nor has there ever been in the past three (3) years, any, Action by the United States Food and Drug Administration, the TTB or any other Governmental Authority or any other Person pending or threatened, in writing, against the Company or, to the Company's Knowledge, any other Person for the recall (including any voluntary recalls), suspension, seizure or market-withdrawal of or other similar corrective action with respect to any of the Company Products, and the Company has not conducted any such corrective action with respect to any Company Product. To the Knowledge of the Company, there is no reasonable basis now existing for any such recall, market withdrawal, stock recovery or product correction, except as would not, individually or in the aggregate, reasonably be expected to be material to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The execution, delivery and performance by Company of this Agreement and the other Transaction Agreements to which it is, or will be, a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not result in a violation of, or give any third party the right to modify, terminate or accelerate any obligation under any contract to which the Company is a party except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Agreements; Actions</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as have been Made Available to the Purchaser, there are no written or oral contracts and agreements to which the Company is a party or by which it is bound that involve any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) agreements or arrangement for the provision of services by any officer, employee or other representative of the Company on any basis that (A) provides annual total compensation in excess of $200,000, (B) provides for any form of non-cash compensation (other than Company equity that has been forfeited or repurchased prior to or as of the Effective Date) or (C) restricts the ability of the Company to terminate the services of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) payments to the Company in excess of $300,000 per year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) obligations (contingent or otherwise) of the Company, or anticipated payments to be made by the Company to third parties, in excess of $300,000 per year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Company, other than (A) in the ordinary course, (B) the nonexclusive license of the Company's software and products in object code form in the ordinary course of business pursuant to standard end-user agreements or (C) the nonexclusive license to the Company of standard, commercially available "off-the shelf" third-party products that are not and will not be part of any product, service or intellectual property offering of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other Person that limit the Company's exclusive right to develop, manufacture, assemble, distribute, market or sell its products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) indemnification by the Company with respect to infringements of proprietary 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;&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) agreement or arrangement that contains any provision pursuant to which the Company is obligated to indemnify or make any indemnification payments to any Person, other than with respect to agreements entered into in the ordinary course of business and indemnity obligations that are customary for companies similarly situated to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) contract or agreement providing for capital expenditures by the Company with an outstanding amount of unpaid obligations and commitments in excess of $300,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) agreement or arrangement that is a settlement, conciliation, or similar agreement in excess of $300,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) agreement under which it has advanced or loaned monies in excess of $300,000 to any other Person or otherwise agreed to advance, loan or invest any funds (excluding extensions of trade credit in the ordinary course of business consistent with past practice) in excess of $300,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) lease or agreement under which the Company or any of its subsidiaries is lessee of or holds or operates any real or personal property under which the aggregate annual rental payments exceed $300,000; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) contract or agreement with respect to the acquisition or disposition of any business, securities, or any equity (or equity-linked) or debt investment in, or any loan to, any Person, or anything related to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company has not declared or paid any dividends, or authorized or made any distribution upon or with respect to any Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company is not a guarantor or indemnitor of any indebtedness of any other Person in excess of $300,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Certain Transactions</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than (i) the Transaction Agreements to which the Company is, or will be, a party, (ii) standard employee benefits generally made available to all employees, standard employee offer letters or employment agreements, as applicable, and Confidential Information Agreements (as defined below), and (iii) as Made Available to the Purchaser, there are no agreements, understandings or proposed transactions between the Company and any of its officers, directors, consultants or Key Employees, members of the immediate families of the foregoing, or any Affiliate thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company is not indebted, directly or indirectly, to any of its directors, officers, consultants or employees or to members of their immediate families, their respective spouses or children or to any Affiliate of any of the foregoing, other than in connection with expenses or advances of expenses incurred in the ordinary course of business or employee relocation expenses and for other customary employee benefits made generally available to all employees. Other than the Company's agreements and arrangements with The Azoff Company LLC and its Affiliates, none of the Company's directors, officers, consultants or employees, or any members of their immediate families, or any Affiliate of the foregoing are, directly or indirectly, indebted to the Company or have any (i) material commercial, industrial, banking, consulting, legal, accounting, charitable or familial relationship with any of the Company's customers, suppliers, service providers, joint venture partners, licensees and competitors, (ii) direct or indirect ownership interest in any Person with which the Company is affiliated or with which the Company has a business relationship, or any Person which competes with the Company except that directors, officers or employees or Members may own stock in (but not exceeding two percent (2%) of the outstanding capital stock of) publicly traded companies that may compete with the Company or (iii) financial interest in any contract with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Voting Rights</u>. Except as contemplated in the LLC Agreement, no Member has entered into any agreements with respect to the voting of the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>Property</u>. The tangible and real property and assets that the Company owns are free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for statutory liens for the payment of current taxes that are not yet past due or delinquent (or which may be paid without interest or penalties) or the validity or amount of which is being contested in good faith by appropriate proceedings and encumbrances and liens that arise in the ordinary course of business and do not materially impair the Company's ownership or use of such tangible and real property or assets. With respect to the tangible and real property and assets it leases, the Company is in compliance in all material respects with such leases and holds a valid leasehold interest free of any liens, claims or encumbrances other than those of the lessors of such tangible and real property or assets. The Company does not own any real 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;2.14 <u>Financial Statements</u>. The Company has delivered to the Purchaser its unaudited financial statements (consisting of its balance sheet, income statement and statement of cash flows) as of December 31, 2023 and for the fiscal year then ended, and its unaudited financial statements as of May 31, 2024 (the **"Balance Sheet Date")** and for the five-month period then ended (collectively, the **"Financial Statements").** The Financial Statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis in all material respects throughout the periods indicated, except as otherwise noted therein and subject, in the case of the Financial Statements, to normal and recurring year-end adjustments and the absence of footnote disclosures. The Financial Statements fairly present the financial condition and operating results of the Company as of the dates, and for the periods, indicated therein, subject to normal year-end adjustments. Except as set forth in the Financial Statements, the Company has no material liabilities or obligations, contingent or otherwise, other than liabilities incurred in the ordinary course of business subsequent to the Balance Sheet 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;2.15 <u>Changes</u>. Since the Balance Sheet Date there has not been any change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the Financial Statements, except changes in the ordinary course of business that have not caused, in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <u>Employee Matters</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Effective Date, the Company employs three (3) full-time employees, and the Company has Made Available to the Purchaser and its counsel any employment agreements with such full-time employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Company has Made Available to the Purchaser each employee benefit plan, including each employee benefit plan which is subject to the Employee Retirement Income Security Act of 1974, as amended **("ERISA"),** which is or has been maintained, established, sponsored, or contributed to by the Company, or any trade or business, whether or not incorporated, that together with the Company would be deemed a "single employer" within the meaning of Section 4001 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 <u>Tax Returns and Payments</u>. There are no federal, state, county, local or foreign taxes due and payable by the Company which have not been timely paid, except for any such failure that would not, individually or in the aggregate, reasonably be material to the Company. There are no accrued and unpaid federal, state, county, local or foreign taxes of the Company which are due, whether or not assessed or disputed, except for any such failure that would not, individually or in the aggregate, reasonably be material to the Company. The Company has duly and timely filed all federal, state, county, local and foreign tax returns required to have been filed by it, except for any such failure that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 <u>Key Agreements</u>. Each current and former Key Employee has executed and delivered to the Company an agreement or agreements containing invention assignment provisions and confidential and proprietary information provisions substantially in the form or forms Made Available to the Purchaser (the **"Confidential Information Agreements").** Each current and former Key Employee has executed a non-solicitation agreement substantially in the form or forms Made Available to the Purchaser. To the knowledge of the Company no current or former Key Employee is in violation of any agreement covered by this <u>Section 2.18</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;2.19 <u>Insurance</u>. The Company has in full force and effect insurance policies concerning causalities as would be customary for companies like the Company, with coverage customary for companies similarly situated to the Company, the lack of which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 <u>Permits</u>. The Company has all franchises, permits, licenses and other similar authority necessary for the conduct of its business, the lack of which could reasonably be expected to have a Material Adverse Effect. The Company 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 <u>Corporate Documents</u>. The LLC Agreement and any other governing documents are in the form provided to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 <u>Environmental and Safety Laws</u>. Except as could not reasonably be expected to have a Material Adverse Effect (a) the Company is and has been in compliance with all Environmental Laws; (b) there has been no release or, to the Company's knowledge, threatened release of any pollutant, contaminant or toxic or hazardous material, substance or waste or petroleum or any fraction thereof (each a **"Hazardous Substance"),** on, upon, into or from any site currently or heretofore owned, leased or otherwise used by the Company; (c) there have been no Hazardous Substances generated by the Company that have been disposed of or come to rest at any site that has been included in any published U.S. federal, state or local "superfund" site list or any other similar list of hazardous or toxic waste sites published by any Governmental Authority in the United States; and (d) there are no underground storage tanks located on, no polychlorinated biphenyls **("PCBs")** or PCB-containing equipment used or stored on, and no hazardous waste as defined by the Resource Conservation and Recovery Act, as amended, stored on, any site owned or operated by the Company, except for the storage of hazardous waste in compliance with Environmental Laws.

For purposes of this <u>Section 2.22,</u> **"Environmental Laws"** means any law, regulation, or other applicable requirement in effect as of the date of this Agreement relating to (a) releases or threatened release of Hazardous Substance; (b) pollution or protection of employee health or safety, public health or the environment; or (c) the manufacture, handling, transport, use, treatment, storage, or disposal of Hazardous Substances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 <u>83(b) Elections</u>. To the Company's knowledge, all elections and notices under Section 83(b) of the Code have been or will be timely filed by all individuals who have Incentive Units that are subject to vesting conditions and remain issued and outstanding as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 <u>Brokers or Finders</u>. The Company has not incurred, and will not incur, directly or indirectly, as a result of any action taken by the Company, any liability for brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement or any of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 <u>Data Privacy</u>. In connection with its collection, storage, transfer (including without limitation, any transfer across national borders) and/or use of any personally identifiable information from any individuals, including, without limitation, any customers, prospective customers, employees and/or other third parties (collectively, **"Personal Information"),** the Company is and has been in compliance with all applicable laws in all relevant jurisdictions, the Company's privacy policies, and the requirements of any contract or codes of conduct to which the Company is a party, except for any such failure that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has commercially reasonable physical, technical, organizational and administrative security measures and policies in place to protect all Personal Information collected by it or on its behalf from and against unauthorized access, use and/or disclosure, except for any such failure that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company is and has been in compliance with all laws relating to data loss, theft and breach of security notification obligations, except for any such failure that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 <u>Foreign Corrupt Practices Act</u>. Neither the Company nor, to the Knowledge of the Company, any of its directors, officers, employees or agents have, directly or indirectly, made, offered, promised or authorized any payment or gift of any money or anything of value to or for the benefit of any "foreign official" (as such term is defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended), foreign political party or official thereof or candidate for foreign political office for the purpose of (i) influencing any official act or decision of such official, party or candidate, (ii) inducing such official, party or candidate to use his, her or its influence to affect any act or decision of a foreign Governmental Authority, or (iii) securing any improper advantage, in the case of <u>clauses (i)</u>, <u>(ii)</u> and <u>(iii)</u> above in order to assist the Company or any of its Affiliates in obtaining or retaining business for or with, or directing business to, any person, except for any such action that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither the Company nor, to the Knowledge of the Company, any of its directors, officers, employees or agents have made or authorized any bribe, rebate, payoff, influence payment, kickback or other unlawful payment of funds or received or retained any funds in violation of any law, rule or regulation, except for any such action that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 <u>Export Control Laws</u>. The Company has conducted all export transactions in accordance with applicable provisions of United States export control laws and regulations, including the Export Administration Regulations, the International Traffic in Arms Regulations, the regulations administered by the Office of Foreign Assets Control of the U.S. Treasury Department, and the export control laws and regulations of any other applicable jurisdiction, except for any such failure that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 <u>Exclusivity of Representations</u>. Except as expressly set forth in this <u>Article</u> 2 and the Transaction Agreements to which the Company is, or will be, a party, none of the Company, the Sellers, any of their respective Affiliates or any of their respective representatives has made or makes any representation or warranty, expressed or implied, with respect to the Company or any of its Affiliates, or otherwise, including any representation or warranty as to the accuracy or completeness of any information provided to or Made Available to the Purchaser in connection with the transactions contemplated by this Agreement and the Transaction Agreements to which the Company is, or will be, a party, and the Company and the Sellers disclaim any such express or implied representations or warranties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 <u>Disclosure</u>. The Sellers have caused the Company to have Made Available all the information reasonably available to the Company and the Sellers that the Purchaser has requested prior to the Closing for deciding whether to purchase the Sold Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 <u>Data Room</u>. The Virtual Data Room is full, complete and accurate and represents the totality of the Company's documents, communications, agreements, reports, certifications, lists and any other materials and responses that has been disclosed or should have been disclosed and Made Available to the Purchaser pursuant to this <u>Section 2</u>. In the event any responsive document, communication, agreement, report, certification, list and any other material or responsive disclosure is not included in the Virtual Data Room as contemplated by this Agreement, such item will not be deemed as Made Available to the Purchaser at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties of the Sellers</u>. Each of the Sellers hereby severally, and not jointly, represents and warrants to the Purchaser, in regard to itself and its respective Sold Units only, as of the date of this Agreement, except as otherwise indicated, 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;3.1 <u>Seller Organization, Existence and Power</u>. Such Seller is duly incorporated or organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or 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;3.2 <u>Seller Authorization</u>. Such Seller has all requisite power and authority to enter into this Agreement and each other agreement, document, instrument or certificate contemplated by this Agreement (including the other Transaction Agreements) to which it is or will be a party, and the consummation of the transactions contemplated hereby and thereby, are within the powers of such Seller and, if applicable, have been or will be, upon execution thereof, as applicable, duly and validly authorized by all necessary corporate or similar action on the part of such Seller. Assuming the due authorization, execution and delivery of this Agreement by the Purchaser and the Company and the other Transaction Agreements to which it is, or will be, a party, this Agreement and such other Transaction Agreements constitutes, or will constitute, valid and binding agreements of such Seller enforceable against such Seller in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Governmental Authorization</u>. The execution, delivery and performance by such Seller of this Agreement and the other Transaction Agreements to which it is a party, and the consummation of the transactions contemplated hereby and thereby, require no action by or in respect of, or filing with, any Governmental Authority, on the part of such Seller, except where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Noncontravention</u>. The execution, delivery and performance by such Seller of this Agreement and the other Transaction Agreements to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not (a) if applicable, violate the certificate of incorporation, bylaws or other organizational documents of such Seller, (b) violate any applicable law or order with respect to such Seller or any of its properties or assets or (c) result in a violation of, or give any third party the right to modify, terminate or accelerate any obligation under any contract to which such Seller or the Company is a party, except, in the case of <u>clauses (b)</u> or <u>(c)</u>, for any such conflicts, violations, breaches, defaults, consents or other occurrences that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or that arise as a result of any facts or circumstances relating to the participation of the Purchaser or any of its Affiliates (as opposed to any third party) in the transactions contemplated by this Agreement and other Transaction 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;3.5 <u>Title to Sold Units.</u> As of immediately prior to the Closing, such Seller holds beneficially and of record, and has good and valid title to, the Sold Units specified next to its name as set forth on <u>Schedule A</u>, free and clear of all mortgages, deeds of trust, liens, loans and encumbrances (other than restrictions on transfer that may arise under (a) the LLC Agreement or (b) applicable securities laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>No Pending Litigation</u>. There is no Action against, or to the knowledge of such Seller, threatened against, such Seller that would, if determined adversely to such Seller, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no action, suit, proceeding or investigation by such Seller pending or which such Seller intends to initiate with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Brokers or Finders</u>. Such Seller has not incurred, and will not incur, directly or indirectly, as a result of any action taken by such Seller, any liability for brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement or any of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Exclusivity of Representations</u>. Except as expressly set forth in this <u>Article</u> 3 and the Transaction Agreements, none of the Sellers, any of their Affiliates or any of their respective representatives has made or makes any representation or warranty, express or implied, in respect of the Seller or any of its Affiliates and the Sold Units, including any representation or warranty as to the accuracy or completeness of any information provided to or Made Available to the Purchaser in connection with the transactions contemplated by this Agreement and the Transaction Agreements, and the Seller disclaims any such express or implied representations or warranties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties of the Purchaser</u>. The Purchaser hereby represents and warrants to each of the Sellers and the Company that the following representations are true and complete as of the date of this Agreement, except as otherwise indicated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Organization, Good Standing, Corporate Power and Qualification</u>. The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted and to execute, deliver and perform its obligations under the Transaction Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Authorization</u>. This Agreement is made with the Purchaser in reliance upon the Purchaser's representations to the Company and the Sellers, and the Purchaser has full power and authority to enter into this Agreement and the other Transaction Agreements. The Transaction Agreements to which the Purchaser is a party, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors' rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Purchase Entirely for Own Account</u>. The Purchaser hereby confirms that the Sold Units to be acquired by the Purchaser will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents to the Company and the Sellers that the Purchaser does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Sold Units. The Purchaser has not been formed for the specific purpose of acquiring the Sold Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Restricted Securities</u>. The Purchaser understands that the Sold Units have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser's representations as expressed herein. The Purchaser understands that the Sold Units are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Sold Units indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>No Public Market</u>. The Purchaser understands that no public market now exists for the Sold Units and that neither the Sellers nor the Company has made any assurances that a public market will ever exist for the Sold Units, and no such market is expected to develop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Accredited Investor</u>. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>No General Solicitation</u>. Neither the Purchaser, nor any of its officers, directors, employees, agents, equityholders or partners has either directly or indirectly, including, through a broker or finder (a) engaged in any general solicitation or (b) published any advertisement in connection with the offer and sale of the Sold Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Brokers or Finders</u>. The Purchaser has not incurred, and will not incur, directly or indirectly, as a result of any action taken by the Purchaser, any liability for brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement or any of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Certain Tax Matters</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no federal, state, county, local or foreign taxes due and payable by the Purchaser and its subsidiaries which have not been timely paid. There are no accrued and unpaid federal, state, country, local or foreign taxes of the Purchaser and its subsidiaries which are due, whether or not assessed or disputed. There have been no examinations or audits of any tax returns or reports by any applicable federal, state, local or foreign governmental agency. The Purchaser and its subsidiaries have duly and timely filed all federal, state, county, local and foreign tax returns required to have been filed by them and there are in effect no waivers of applicable statutes of limitations with respect to taxes for any year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) As of and immediately following the Closing: (i) the Purchaser will be an eligible corporation as defined in Section 1202(e)(4) of the Code, (ii) the Purchaser will not have made purchases of its own stock described in Code Section 1202(c)(3)(B) during the one (1) year period preceding the Closing, except for purchases that are disregarded for such purposes under Treasury Regulation Section 1.1202-2, and (iii) the Purchaser's aggregate gross assets, as defined by Code Section 1202(d)(2), at no time between its incorporation and through the Closing have exceeded $50 million, taking into account the assets of any corporations required to be aggregated with the Purchaser in accordance with Code Section 1202(d)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Non-Reliance</u>. The Purchaser acknowledges and agrees that the Purchaser has independently, voluntarily, and without inducement by the Company, the Seller, their respective Affiliates, or any of such Persons' directors, managers, officers, employees, equity holders, advisors, representatives or agents, determined to enter into this Agreement and the Transaction Agreements to which it is a party and to purchase the Sold Units as set forth in this Agreement. The Purchaser has been afforded the opportunity (i) to ask such questions as the Purchaser deemed necessary of, and to receive answers from, the Company and the Sellers concerning the business, management and financial affairs of the Company and (ii) to review with the Purchaser's own financial, tax and legal advisors the financial, tax and legal consequences of the purchaser of the Sold Units contemplated by this Agreement, and the Purchaser has read, understands and agrees to all of the terms of this Agreement. The Purchaser acknowledges that, except as expressly set forth in this Agreement or the other Transaction Agreements, the Purchaser has not relied upon any statements, representations or warranties made by the Company, the Sellers, their respective Affiliates, or any of such Persons' directors, managers, officers, employees, equity holders, advisors, representatives or agents in making the Purchaser's decision to purchase the Sold Units pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Conditions to the Purchaser's Obligations at Closing</u>. The obligations of the Purchaser to purchase the Sold Units at the Closing are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived in writing by the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Qualifications</u>. All authorizations, approvals or permits, if any, of any Governmental Authority of the United States or of any state that are required in connection with the lawful purchase and sale of the Sold Units pursuant to this Agreement shall be obtained and effective as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Board of Managers</u>. As of the Closing, the authorized size of the Board of Managers shall be four, and the Board of Managers shall be comprised of Mark T. Lynn, Geoff McFarlane, Richard Feldstein and Richard Statter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Amended LLC Agreement</u>. The Company and the Members named as parties thereto shall have executed and delivered the Amended LLC 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;5.4 <u>Indemnification Agreements</u>. The Company shall have executed and delivered the Indemnification Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Master Services Agreement</u>. The Company shall have executed and delivered the Master 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;5.6 <u>NIL Agreement</u>. The Company and the counterparties thereto shall have executed and delivered the NIL 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;5.7 <u>Restrictive Covenant Agreements</u>. The Company and the counterparties thereto shall have executed and delivered the Restrictive Covenant Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Company Certificate</u>. An authorized Person of the Company shall have delivered to the Purchaser at the Closing a certificate certifying as to the truth and correctness of (i) the Certificate of Formation of the Company and (ii) the resolutions of the Members approving the Transaction Agreements to which the Company is, or will be, a party and the transactions contemplated under such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Conditions of the Company and the Sellers' Obligations at Closing</u>. The obligations of the Company set forth in this Agreement and of the Seller's set forth in this Agreement, including, without limitation, to sell the Sold Units to the Purchaser at the Closing, are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived in writing by the Sellers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Qualifications</u>. All authorizations, approvals or permits, if any, of any Governmental Authority of the United States or of any state that are required in connection with the lawful purchase and sale of the Sold Units pursuant to this Agreement shall be obtained and effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Amended LLC Agreement</u>. The Purchaser shall have executed and delivered the Amended LLC 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;6.3 <u>Master Services Agreement</u>. The Purchaser shall have executed and delivered the Master 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;6.4 <u>Amended LLC Agreement</u>. The Purchaser shall have executed and delivered the Amended LLC 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;6.5 <u>Officer's Certificate</u>. An authorized officer of the Purchaser shall have delivered to the Company at the Closing a certificate certifying as to the truth and correctness of (i) the Certificate of Incorporation of the Purchaser and (ii) the resolutions of the Board of Directors of the Purchaser approving the Transaction Agreements and the transactions contemplated under the Transaction Agreements (including the issuance of the Sellers' Series B-3 Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Indemnification</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;7.1 <u>Survival of Warranties</u>. The representations and warranties contained in this Agreement and the covenants and agreements contained in this Agreement that are to be performed in whole or in part at or following the Closing (the **"Post-Closing Covenants")** shall survive the Closing as follows: (a) all representations and warranties shall survive for a period of twenty-four (24) months from the date of the Closing; <u>provided,</u> that, (x) the representations and warranties set forth in <u>Section 2.1</u> (*Organization, Good Standing, Corporate Power and Qualification),* <u>Section 2.2</u> *(Capitalization),* <u>Section 2.3</u> *(Subsidiaries),* <u>Section 2.4</u> *(Authorization),* <u>Section 2.5</u> *(Valid Sale of Sold Units),* <u>Section 2.9</u>, *(Compliance with Other Instruments and Law),* <u>Section 2.17</u> *(Tax Returns and Payments),* <u>Section 2.24</u> *(Brokers),* <u>Section 3.1</u> *(Seller Organization, Existence and Power),* <u>Section 3.2</u> *(Seller Authorization),* <u>Section 3.4</u> *(Noncontravention),* <u>Section 3.5</u> *(Title to Sold Units),* <u>Section 3.7</u> *(Brokers or Finders)* (collectively, the **"Fundamental Representations")** and (y) the representations and warranties set forth in <u>Section 4.1</u> *(Organization, Good Standing, Corporate Power and Qualification),* <u>Section 4.2</u> *(Authorization),* <u>Section 4.3</u> *(Purchase Entirely for Own Account),* <u>Section 4.4</u> *(Restricted Securities),* <u>Section 4.5</u> *(No Public Markets),* <u>Section 4.6</u> *(Accredited Investor),* <u>Section 4.7</u> *(No General Solicitation),* <u>Section 4.8</u> *(Brokers and Finders),* <u>Section 4.9</u> *(Tax Matters)* and Section 4.10 *(Non-Reliance)* (collectively, the **"Purchaser Fundamental Representations")** shall, in each case, survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus 30 days; and (b) all Post-Closing Covenants shall survive for a period of twenty four (24) months. No covenants or agreements that were to be performed in their entirety prior to the Closing shall survive the Closing. No claim may be made or suit instituted seeking indemnification for breaches of representations, warranties, covenants or agreements contained in this Agreement pursuant to this <u>Article 7</u> after the expiration of the applicable survival period described above unless a written notice describing the matter subject to indemnification in reasonable detail (including the basis of such claim and a reasonable and good faith estimate of the amount of Losses incurred or suffered with respect thereto) is provided to the applicable Indemnifying Party (as hereinafter defined) prior to the expiration of the applicable survival period described above. No claim may be made or suit instituted seeking indemnification for breaches of representations, warranties, covenants or agreements contained in this Agreement pursuant to this <u>Article 7</u> after the expiration of the applicable survival period described above unless a written notice describing the matter subject to indemnification in reasonable detail (including the basis of such claim and, to the extent reasonably determinable, a reasonable and good faith estimate of the amount of Losses incurred or suffered with respect thereto) is provided to the applicable Indemnifying Party prior to the expiration of the applicable survival period described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Indemnity by Seller</u> From and after the Closing, subject to the provisions of this <u>Article 7,</u> the applicable Seller or Sellers pursuant to <u>Section 7.2(a)</u> or <u>Section 7.2(b)</u>, as applicable, shall indemnify the Purchaser, as well as the Purchaser's Affiliates, and each of their respective Representatives, successors and assigns (collectively, the **"Purchaser Indemnitees")** and hold them harmless from and against any and all Losses suffered or incurred by a Purchaser Indemnitee to the extent arising out of, relating to, or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any breach or inaccuracy of any representation or warranty set forth in <u>Article 2</u> or <u>Article 3</u> or in any certificate delivered by the applicable Seller in connection herewith (except for Section 2.14 and Section 2.15, disregarding any "materiality" (including the word "material") or "Material Adverse Effect" qualifications set forth therein); provided, that: (i) any breach of any representation or warranty set forth in Article 2 shall be indemnifiable jointly and severally by the Sellers, and (ii) any breach by only one Seller of any representation or warranty set forth in <u>Article 3</u> shall be indemnifiable severally, and not jointly, solely by such breaching Seller; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach by the Sellers of any Post-Closing Covenant required of such Seller; <u>provided,</u> that: (i) any breach by only one Seller of any covenant in this Agreement shall be indemnifiable solely by such breaching Seller, and (ii) any breach by both Sellers shall be indemnifiable jointly and severally by the Sellers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Limitations on Indemnification</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 7.2,</u> the Sellers shall not be liable for any Losses in respect of any claim for indemnification under <u>Section 7.2</u> unless and until the aggregate amount of all Losses as to which the Purchaser Indemnitees may be entitled to indemnification hereunder exceeds $250,000 (the **"Deductible Amount"),** at which point the applicable Seller or Sellers, as applicable, will be liable in accordance with <u>Section 7.2</u> only for the amount by which such Losses exceed the Deductible Amount, in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to <u>Section 7.3(c)</u>, in the event that the Purchaser Indemnitees incur Losses for which the Sellers or a Seller are or is obligated to the Purchaser Indemnitees, each of the parties hereto acknowledges and agrees that the Purchaser's sole and exclusive source of recovery against such Losses shall be the following (or any combination thereof) to occur (each, a **"Purchaser Recovery Option"),** at the Purchaser's election in each instance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Company may issue to the Purchaser additional shares of Class A Common Units in the amount necessary to satisfy such claim and/or Losses, calculated on a dollar-for-dollar basis and based on a price per Class A Common Unit of $1,149.4229; and/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;&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) the applicable Seller's or Sellers', as applicable, Series B-3 Stock shall be forfeited by such Seller or Sellers, and such Seller's or Sellers' holdings in the Purchaser shall be immediately and automatically reduced, in the amount necessary to satisfy such claim and/or Losses, calculated on a dollar-for-dollar basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The aggregate liability of the Sellers in respect of (i) claims relating to the breach of any representation or warranty, other than Fundamental Representations, shall in no event exceed $2,000,000 in the aggregate, and (ii) claims relating to breach of any representation or warranty, including breaches of Fundamental Representations, shall in no event exceed $5,000,000 in the aggregate; <u>provided</u>, <u>however</u>, that the individual liability of each Seller in respect of claims relating to the breach of any representation or warranty, including breach of the Fundamental Representations, shall not exceed $2,500,000 in the aggregate.

Each Seller agrees that, upon reasonable prior written notice from the Purchaser, such Seller will promptly execute and deliver all further instruments, certificates and documents and take all further action that may be reasonably necessary or desirable or that the Purchaser may reasonably request in order to perfect its Purchaser Recovery Option and to enforce its rights and remedies hereunder with respect to such Purchaser Recovery Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In all cases (including in the case of Fraud), the Purchaser Indemnitees' sole and exclusive source of recovery for Losses shall be limited to the Purchaser Recovery Options; <u>provided, however</u>, that solely in the event there is a final, binding, and non- appealable determination in accordance with <u>Section 8.16</u> that a Seller has committed Fraud, the Purchaser Indemnitees may recover reasonable and documented attorney's fees and court costs directly from the applicable Seller if such amounts exceed the Purchaser Recovery Options. For the purposes hereof, **"Fraud"** means fraud under the laws of the State of Delaware by (i) the Company or a Seller with respect to the making by the Company or such Seller to the Purchaser of an express representation or warranty contained in <u>Article 2</u> or <u>Article 3</u> or (ii) the Purchaser with respect to the making by the Purchaser to a Seller or the Company of an express representation or warranty contained in <u>Article 4</u>, as applicable, made with the intent of inducing the Purchaser, a Seller or the Company, as applicable, to enter into this Agreement or in any certificate delivered pursuant to this Agreement, which resulted in the other party acting in reasonable reliance on such representation or warranty or suffering a Loss as a result of such reliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Indemnity by the Purchaser</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Closing, subject to the provisions of this <u>Article 7</u>, the Purchaser shall indemnify each Seller, each Seller's Affiliates and Representatives, and each Seller's successors and assigns (collectively, the **"Seller Indemnitees")** and hold them harmless from and against any and all Losses suffered or incurred by a Seller Indemnitee to the extent arising out of, relating to, or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 breach or inaccuracy of any representation or warranty set forth in <u>Article 4</u> or any certificate or instrument delivered by the Purchaser in connection herewith (disregarding any "materiality" (including the word "material")); 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;&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 breach of any Post-Closing Covenant of the Purchaser or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything to the contrary set forth herein, the Purchaser shall not be liable for any Losses in respect of any claim for indemnification under Section 7.4 unless and until the aggregate amount of all Losses as to which the Seller Indemnitees may be entitled to indemnification hereunder exceeds $250,000 (the **"Purchaser Deductible Amount"),** at which point the Purchaser will be liable in accordance with <u>Section 7.4</u> only for the amount by which such Losses exceed the Purchaser Deductible Amount, in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to <u>Section 7.4(d)</u>, in the event that the Seller Indemnitees incur Losses for which the Purchaser is obligated to the Seller Indemnitees, each of the parties hereto acknowledges and agrees that the Seller Indemnitees' sole and exclusive source of recovery against such Losses shall be the following (or any combination thereof) to occur (each, a **"Seller Recovery Option"),** at the Purchaser's election in each instance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Purchaser may issue to the Seller Indemnitees additional shares of Series B-3 Stock in the amount necessary to satisfy such claim and/or Losses, calculated on a dollar-for-dollar basis and based on a price per Series B-3 Stock of $2.2521;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Purchaser's Class A Common Units shall be forfeited by the Purchaser, and the Purchaser's holdings in the Company shall be immediately and automatically reduced, in the amount necessary to satisfy such claim and/or Losses, calculated on a dollar-for- dollar basis; and/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;&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) Purchaser may distribute cash compensation to the Seller Indemnitees in an amount necessary to satisfy such claim and/or Losses on a dollar-for-dollar basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The aggregate liability of the Purchaser in respect of (i) claims relating to the breach of any representation or warranty, other than Purchaser Fundamental Representations, shall in no event exceed $2,000,000 in the aggregate, and (ii) claims relating to Purchaser Fundamental Representations shall in no event exceed $5,000,000 in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except in the case of Fraud, the Seller Indemnitees' sole source of recovery for Losses shall be limited to the Seller Recovery Options. In the case of Fraud, the Seller Indemnitees' sources of recovery for Losses shall be subject to the Seller Recovery Options and/or cash compensation, as determined by the Purchaser in its sole discretion. There shall be no limitations on the recovery against the Purchaser any such Losses resulting from Fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Procedures</u>. The following procedures shall apply to all claims for indemnification and reimbursement pursuant to this <u>Article 7</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to any indemnification sought by a Purchaser Indemnitee or Seller Indemnitee (each, an **"Indemnified Party")** from the Purchaser or Sellers, as applicable, that, the Indemnified Party shall promptly provide written notice to the Purchaser or Sellers, as applicable, of any claim with respect to which the Indemnified Party believes it is or may be entitled to indemnification pursuant to <u>Section 7.2</u> or <u>Section 7.4</u>, as applicable (an **"Indemnity Notice").** The Indemnity Notice shall describe in reasonable detail the nature of the claim, the Indemnified Party's estimate of the amount of Losses attributable to such claim to the extent known and the basis of the Indemnified Party's request for indemnification under this <u>Article 7</u>. No delay on the part of the Indemnified Party in providing the Indemnity Notice to the Purchaser or Sellers, as applicable, will relieve the Indemnifying Party from any indemnification obligation hereunder unless the Indemnifying Party is actually and materially prejudiced thereby. In the event that the Indemnifying Party delivers written notice to the Purchaser or Sellers, as applicable, within thirty (30) days following such Indemnifying Party's receipt of such Indemnity Notice, disputing in whole or in part such claim or the amount or nature of Losses claimed in such Indemnity Notice (a **"Dispute Notice"),** such Indemnifying Party and the Purchaser or Sellers, as applicable, shall use their commercially reasonable efforts to negotiate in good faith to attempt to resolve such dispute, within thirty (30) days following the receipt by the Indemnified Party of such Dispute Notice, or such longer period as may be agreed in writing by the Indemnified Party and Purchaser or Sellers, as applicable. If, notwithstanding such good faith negotiation, such dispute is not resolved within such 30-day period (or longer period, if mutually agreed in writing), such dispute shall be resolved in accordance with <u>Section 8.16</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;7.6 <u>Mitigation of Losses</u>. Indemnification for each Loss for which any Indemnified Party is entitled to indemnification, but for this <u>Section 7.6,</u> shall be reduced by the amount of any insurance proceeds, and any indemnity, contribution or other similar payment, actually received by such Indemnified Party from any third party with respect to such Loss, in each case, net of any reasonable out-of-pocket expenses incurred in collecting such proceeds or payments, including the aggregate out-of-pocket cost of pursuing any related insurance claims and any related increases in insurance premiums or other chargebacks (it being agreed that the parties hereto shall take commercially reasonable efforts to recover any insurance proceeds in connection with making a claim under this <u>Article 7</u> and that, after the realization of any insurance proceeds, indemnity, contribution or other similar payment, the Indemnified Party shall reimburse the Seller or Purchaser, as applicable, for such reduction in Losses for which the Indemnified Party was indemnified prior to the realization of reduction of such Losses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Effect of Investigation</u>. In the event that an Indemnifying Party can establish that disclosure of a breach of a representation, warranty, covenant or agreement of the Indemnifying Party was Made Available to the Indemnified Party in such a way as a reasonable person would have known of such breach from such disclosure on its face, and such breach is the sole basis for indemnification by the Indemnified Party, then the Indemnifying Party shall have no liability for any Losses resulting from or arising out of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <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;8.1 <u>Successors and Assigns</u>. 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Allocation of Purchase Price</u>. Each Seller expressly (a) agrees that the number of Sellers' Series B-3 Stock specified next to such Seller's name as set forth on <u>Schedule A</u> accurately reflects the number of Series B-3 Stock such Seller shall receive in exchange for its respective Sold Units, and (b) waives and releases any claim under the LLC Agreement and any other governing document of the Company, any contract (other than this Agreement) or otherwise related to its allocation of the Purchase Price calculated in accordance with 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;8.3 <u>Intellectual Property</u>. The Purchaser and the Sellers shall not include, use or refer to any name, trade name, trademarks, and/or other identifying marks, material or other intellectual property of the Purchaser or the Sellers, as applicable, or any of their respective Affiliates, in any marketing materials, press releases or other public or commercial disclosures or communications without the other party's prior written consent, which consent shall be at the sole and absolute discretion of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Publicity</u>. The Company and the Sellers, on the one hand, and the Purchaser, on the other hand, agree to (a) consult with one another before issuing any press release or otherwise making any public statement with respect to the transactions contemplated by this Agreement, (b) provide to one another for review a copy of any such press release or public statement proposed to be made by either such party and (c) not issue any such press release or make any such public statement prior to such consultation and review and the receipt of the prior written consent of either such party, unless required by applicable law and then only to the extent so required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Governing Law</u>. This Agreement shall be governed by the internal law of the State of Delaware, without regard to its conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.,* www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting 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;8.8 <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the signature page, or to such e-mail address or address as subsequently modified by written notice given in accordance with this <u>Section 8.8</u>. If notice is given to the Purchaser, a copy (which copy shall not constitute notice) shall also be given to Giannuzzi Lewendon, LLP, 411 West 14<sup>th</sup> Street, 4<sup>th</sup> Floor, New York, NY 10014, Attn: Ryan Lewendon, Esq., email: ryan@gllaw.us. If notice is given to the Company or a Seller, a copy (which copy shall not constitute notice) shall also be given to Gibson, Dunn & Crutcher LLP, 333 South Grand Avenue, Los Angeles, California, Attn: Benyamin S. Ross, email: BRoss@gibsondunn.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <u>Consent to Electronic Notice</u>. The Purchaser consents to the delivery of any equityholder notice pursuant to the Delaware Limited Liability Company Act (the **"Act"),** as amended or superseded from time to time, by electronic mail pursuant to Section 18-404(d) of the Act (or any successor thereto) at the e-mail address set forth below the Purchaser's name on the signature page, as updated from time to time by notice to the Company. To the extent that any notice given by means of electronic mail is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected e-mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each party agrees to promptly notify the other parties of any change in its e-mail address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <u>Fees and Expenses</u>. Each party shall pay all costs and expenses it incurs with respect to the negotiation, execution, delivery and performance of this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 <u>Costs of Enforcement</u>. If any action at law or in equity (including, arbitration) is necessary to enforce or interpret the terms of any of the Transaction Agreements, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 <u>Amendments and Waivers</u>. Any term of this Agreement may be amended, terminated or waived only with the written consent of the Company, the Purchaser and each Seller. Any amendment or waiver effected in accordance with this <u>Section 8.12</u> shall be binding upon the Purchaser and each Seller, each future holder of all such securities and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or nondefaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15 <u>Entire Agreement</u>. This Agreement (including the Exhibits and Schedules hereto) and the other Transaction Agreements constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16 <u>Dispute Resolution.</u> The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the Delaware Court of Chancery in New Castle County for the purpose of any Action arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the Delaware Court of Chancery in New Castle County, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such Action that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the Action is brought in an inconvenient forum, that the venue of the Action is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

<u>Waiver of Jury Trial</u>: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION AGREEMENTS, THE SOLD UNITS OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.17 <u>Non-Recourse</u>. Except to the extent expressly otherwise set forth in this Agreement, all claims, obligations, liabilities, or causes of action (whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected with, or relate in any manner to this Agreement, or the negotiation, execution, or performance of this Agreement (including any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against (and such representations and warranties are those solely of) the Purchaser, the Company or a Seller (collectively, the **"Contracting Parties").** No Person who is not a Contracting Party, including any past, present or future Affiliate, attorney, financial advisor, representative or assignee of any Contracting Party, or any past, present or future Affiliate, attorney, financial advisor, representative or assignee of any of the foregoing, shall have any liability (whether in contract or in tort, in law, common law, or in equity, or granted by statute) for any claims, causes of action, obligations, or liabilities arising under, out of, in connection with, or related in any manner to this Agreement or based on, in respect of, or by reason of this Agreement or its negotiation, execution, performance, or breach (including any theories pertaining to "piercing the corporate veil," "alter- ego," unjust enrichment, or any other similar theories).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.18 <u>Privilege; Counsel.</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;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties agree that, effective as of immediately prior to (but conditioned upon the consummation of) the Closing, without the need for any further action, (i) all right, title and interest of the Company in and to all Protected Communications shall thereupon transfer to and be vested solely in the Sellers, solely for the benefit of the Sellers, and (ii) any and all protections from disclosure, including attorney-client privileges and work product protections, associated with or arising from any Protected Communications that would, but for this Section <u>8.18,</u> have been exercisable by the Company shall thereupon be vested exclusively in the Sellers, solely for the benefit of the Sellers, and shall be exercised or waived solely as directed by the Sellers; <u>provided</u>, however, that neither the Purchaser, any of its Affiliates (including the Company) or any Person acting on their behalf shall waive any applicable privileges or protections that can or may be asserted to prevent disclosure of any Protected Communications to any third party without the prior written consent of the Sellers. Notwithstanding the foregoing, in the event that a dispute arises between the Purchaser or the Company, on the one hand, and a Person other than the Sellers or one of their Affiliates, on the other hand, after the Closing, the Purchaser and the Company, as applicable, may assert the attorney-client privilege to prevent disclosure of Protected Communications to such third party. In the event that any Protected Communications remain accessible to the Purchaser or of the Company, the Purchaser agrees that neither it nor any of its Affiliates or Representatives will knowingly attempt to gain access to or view any Protected Communications for any purpose, except and to the extent required by law. Purchaser agrees, on behalf of itself and, after the Closing, the Company, to the extent that it or, after the Closing, the Company receives or takes physical possession of any Protected Communications, such physical possession or receipt shall not, in any way, be deemed a waiver by any of the Sellers or any other Person, of the privileges or protections described in this Section 8.18. The Sellers acknowledge and agree that, except as otherwise set forth above relating to the Protected Communications, the Purchaser shall have full rights with respect to all other confidential and privileged information relating to the Company following the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Purchaser acknowledges that Gibson, Dunn & Crutcher LLP **("Counsel")** has acted as counsel for the Sellers and the Company in connection with the negotiation, documentation and consummation of the Transaction Agreements and the transactions contemplated hereby and thereby (the **"Pre-Closing Engagement").** If Sellers so desire, without the need for any consent or waiver by the Purchaser or the Company, Counsel shall be permitted to represent any one or more Sellers after the Closing in connection with any matter, including anything related to the Transaction Agreements or the transactions contemplated hereby or thereby, or any disagreement or dispute in connection therewith. The Purchaser, on behalf of itself and its Affiliates (including, following the Closing, the Company) hereby consents to any such representation and waives any actual or potential conflict of interest arising from such representation and the Pre-Closing Engagement.

*Remainder of page intentionally left blank.*

IN WITNESS WHEREOF, the parties have executed this Unit Purchase Agreement as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| 222 SPIRITS HOLDCO, LLC | 222 SPIRITS HOLDCO, LLC |
| By: | /s/ Richard Feldstein |
| Name: | Richard Feldstein |
| Title: | Authorized Signatory |
| Address: | 1100 Glendon Avenue |
|  | Suite 1000 |
|  | Los Angeles, CA 90024 |
| Email: | beth.collins@azoffcompany.com |
| **SELLERS:** |  |
| THE ADHATI TRUST | THE ADHATI TRUST |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Email: |  |
| JAJC INVESTMENTS LLC | JAJC INVESTMENTS LLC |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Email: |  |

---

SIGNATURE PAGE TO UNIT PURCHASE AGREEMENT

IN WITNESS WHEREOF, the parties have executed this Unit Purchase Agreement as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| 222 SPIRITS HOLDCO, LLC | 222 SPIRITS HOLDCO, LLC |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Email: |  |
| **SELLERS:** | **SELLERS:** |
| THE ADHATI TRUST | THE ADHATI TRUST |
| By: | /s/ Richard Feldstein |
| Name: | Richard Feldstein |
| Title: | Trustee |
| Address: | 10960 Wilshire Blvd. |
|  | 5th Floor |
|  | Los Angeles, CA 90024 |
| Email: | rfeldstein@nksfb.com |
| JAJC INVESTMENTS LLC | JAJC INVESTMENTS LLC |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Email: |  |

---

SIGNATURE PAGE TO UNIT PURCHASE AGREEMENT

IN WITNESS WHEREOF, the parties have executed this Unit Purchase Agreement as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| 222 SPIRITS HOLDCO, LLC | 222 SPIRITS HOLDCO, LLC |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Email: |  |
| **SELLERS:** | **SELLERS:** |
| THE ADHATI TRUST | THE ADHATI TRUST |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Email: |  |
| JAJC INVESTMENTS LLC | JAJC INVESTMENTS LLC |
| By: | /s/ Richard Statter |
| Name: | Richard Statter |
| Title: | Trustee |
| Address: | 10960 Wilshire Blvd. |
|  | 5th Floor |
|  | Los Angeles, CA 90024 |
| Email: | rstatter@gmail.com |

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SIGNATURE PAGE TO UNIT PURCHASE AGREEMENT

IN WITNESS WHEREOF, the parties have executed this Unit Purchase Agreement as of the date first written above.

---

| | |
|:---|:---|
| PURCHASER: | PURCHASER: |
| **AMASS BRANDS INC** | **AMASS BRANDS INC** |
| By: | /s/ Mark T. Lynn |
| Name: | Mark T. Lynn |
| Title: | Chief Executive Officer |
| Address: | 927 S. Santa Fe Ave |
|  | Los Angeles, CA 90021 |
| Email: | mark@amass.com |

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SIGNATURE PAGE TO UNIT PURCHASE AGREEMENT

**SCHEDULE A**

---

| | | |
|:---|:---|:---|
| **Member** | **Class A Common Units <br>Being Sold** | **Sellers' Series B-3 Stock** |
| THE ADHATI TRUST | 2175.00435 | 1110075 |
| JAJC INVESTMENTS LLC | 2175.00435 | 1110075 |
| **Total:** | 4350.0087 | 2220150 |

---

**EXHIBIT A**

SERIES B-2/B-3 PURCHASE AGREEMENT

(attached)

**SERIES B-2 AND SERIES B-3 PREFERRED STOCK PURCHASE AGREEMENT**

**THIS SERIES B-2 AND SERIES B-3 PREFERRED STOCK PURCHASE AGREEMENT** (this **"Agreement"),** is made as of June 24, 2024, by and among **AMASS Brands Inc,** a Delaware corporation (the **"Company")** and the investors listed on **Exhibit A** attached to this Agreement (each a **"Purchaser"** and together the **"Purchasers").**

The parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Purchase and Sale of Preferred Stock.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Sale and Issuance of Preferred Stock.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Company shall have adopted and filed with the Secretary of State of the State of Delaware on or before the Initial Closing (as defined below) the Fifth Amended and Restated Certificate of Incorporation in the form of **Exhibit B** attached to this Agreement (the **"Restated Certificate").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** The Company is entering into this Agreement for the purpose of raising up to $12,000,000.00 (the **"Offering Amount")** in exchange for the issuance of Series B-2 Preferred Stock and/or Series B-3 Preferred Stock (each as hereinafter defined). Subject to the terms and conditions of this Agreement, each Purchaser agrees to purchase at the applicable Closing (as defined below) and the Company agrees to sell and issue to each Purchaser at the applicable Closing (i) that number of shares of Series B-2 Preferred Stock, $0.00001 par value per share (the **"Series B-2 Preferred Stock")** if such Purchaser's investment at the applicable Closing is less than $100,000.00 or (ii) Series B-3 Preferred Stock, $0.00001 par value per share (the **"Series B-3 Preferred Stock")** if such Purchaser's investment at the applicable Closing is equal to or greater than $100,000, in either case, set forth opposite each Purchaser's name on **Exhibit A,** at a purchase price (as applicable, the **"Purchase Price")** of (i) $2.8150 per share of Series B-2 Preferred Stock or (ii) $2.2521 per share of Series B-3 Preferred Stock. The shares of Series B-2 Preferred Stock and Series B-3 Preferred Stock issued to the Purchasers pursuant to this Agreement shall be referred to in this Agreement as the **"Shares."** Notwithstanding anything in this Agreement to the contrary, in no event shall the aggregate Purchase Price paid to the Company by all Purchasers in exchange for the total aggregate amount of Series B-2 Preferred Stock and Series B-3 Preferred Stock sold exceed $12,000,000.00. For the avoidance of doubt, up to $5,000,000.00 of the Series B-3 Preferred Stock may be issued in connection with and as consideration for the purchase of a majority stake of an alcohol brand which is currently being negotiated by and between the Company and such brand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Closing; Delivery.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 initial purchase and sale of the Shares shall take place remotely via the exchange of documents and signatures on the date of this Agreement (the **"Initial Closing").** In the event there is more than one closing, the term **"Closing"** shall apply to each such closing unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** At each Closing, the Company shall deliver to each Purchaser a certificate (electronic or physical) representing the Shares being purchased by such Purchaser at such Closing against payment of the Purchase Price therefor by check payable to the Company, by wire transfer to a bank account designated by the Company, by cancellation or conversion of indebtedness or other convertible securities of the Company to Purchaser or by any combination of such methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 Sale of Additional Shares of Series B-2 Preferred Stock and Series B-3 Preferred Stock.** After the Initial Closing, the Company may sell, pursuant to this Agreement, any remaining authorized but unissued shares of Series B-2 Preferred Stock and/or Series B-3 Preferred Stock (the **"Additional Shares"),** to one or more purchasers (the **"Additional Purchasers"),** *provided* that (i) such subsequent sale is consummated prior to the date that is 270 days after the Initial Closing and (ii) each Additional Purchaser becomes a party to the Transaction Agreements (as defined below), by executing and delivering a counterpart signature page to each of the Transaction Agreements. **Exhibit A** to this Agreement shall be updated to reflect the number of Additional Shares purchased at each such Closing and the parties purchasing such Additional 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;**1.4 Use of Proceeds.** In accordance with the directions of the Board of Directors of the Company (the **"Board"),** as it shall be constituted in accordance with the Voting Agreement, the Company will use the proceeds from the sale of the Shares for the consummation of the transactions contemplated by this Agreement, working capital and other general corporate purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5 Defined Terms Used in this Agreement.** In addition to the terms defined above, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) "Affiliate"** means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Code"** means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Company Intellectual Property"** means all patents, patent applications, registered and unregistered trademarks, trademark applications, registered and unregistered service marks, service mark applications, tradenames, copyrights, trade secrets, domain names, information and proprietary rights and processes, similar or other intellectual property rights, subject matter of any of the foregoing, tangible embodiments of any of the foregoing, licenses in, to and under any of the foregoing, and in any and all such cases that are owned, purported to be owned by, or in-licensed to the Company, or used by the Company in the conduct of the Company's business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Investors' Rights Agreement"** means the agreement among the Company and the Purchasers and certain other stockholders of the Company dated as of the date of the Initial Closing, in substantially the form of **Exhibit C** attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;**(e) "Key Employee"** means Mark T. Lynn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Knowledge"** including the phrase **"to the Company's knowledge"** means the actual knowledge of the Key Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Material Adverse Effect"** means a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property or results of operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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, corporation, partnership, trust, limited liability company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Right of First Refusal and Co-Sale Agreement"** means the agreement among the Company, the Purchasers, and certain other stockholders of the Company, dated as of the date of the Initial Closing, in substantially the form of **Exhibit D** attached to 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;&nbsp;&nbsp;&nbsp;&nbsp;**(j) "Securities Act"** means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Transaction Agreements"** means this Agreement, the Restated Certificate, the Investors' Rights Agreement, the Right of First Refusal and Co-Sale Agreement and the Voting 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;&nbsp;&nbsp;&nbsp;&nbsp;**(l) "Voting Agreement"** means the agreement among the Company, the Purchasers and certain other stockholders of the Company, dated as of the date of the Initial Closing, in substantially the form of **Exhibit E** attached to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Representations and Warranties of the Company.** The Company hereby represents and warrants to each Purchaser that the following representations are true and complete as of the date of the Initial Closing, except as otherwise indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Organization, Good Standing, Corporate Power and Qualification.** The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted and as presently proposed to be conducted. The Company is duly qualified to transact business and is 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Capitalization.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 authorized capital of the Company consists, immediately prior to the Initial Closing, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** 63,500,000 shares of common stock, $0.00001 par value per share (the **"Common Stock"),** 8,697,983 shares of which are issued and outstanding and 2,150,429 of which are subject to warrants to purchase Common Stock, in either case, immediately prior to the Initial Closing. All of the outstanding shares of Common Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** 41,192,462 shares of Preferred Stock (the **"Preferred Stock"):** (A) 1,362,530 of which have been designated Series Seed Preferred Stock, all of which are issued and outstanding, (B) 2,412,297 of which have been designated Series Seed-1 Preferred Stock, all of which are issued and outstanding, (C) 4,323,248 of which have been designated Series Seed-2 Preferred Stock, all of which are issued and outstanding, (D) 1,579,994 of which have been designated Series Seed-3 Preferred Stock, all of which are issued and outstanding, (E) 2,346,635 of which have been designated Series Seed-4 Preferred Stock, all of which are issued and outstanding, (F) 504,316 of which have been designated Series Seed-5 Preferred Stock, all of which are issued and outstanding, (G) 873,734 of which have been designated Series A Preferred Stock, all of which are issued and outstanding, and (H) 18,198,578 of which have been designated Series B-1 Preferred Stock, 5,237,632 of which are issued and outstanding and 1,328,185 of which are subject to warrants to purchase Series B-1 Preferred Stock, (I) 4,262,724 of which have been designated Series B-2 Preferred Stock, none of which are issued and outstanding, and (J) 5,328,406 of which have been designated Series B-3 Preferred Stock, none of which are issued and outstanding, in each case, as of immediately prior to the Initial Closing. The rights, privileges and preferences of the Preferred Stock are as stated in the Restated Certificate and as provided by the Delaware General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** The Company has reserved 5,178,390 shares of Common Stock for issuance to officers, directors, employees and consultants of the Company pursuant to its 2016 Stock Plan duly adopted by the Board and approved by the Company stockholders (as amended and/or restated to date). As of immediately prior to the Initial Closing, of such reserved shares of Common Stock, 3,462,486 shares have been issued pursuant to restricted stock purchase agreements or stock option agreements, and 1,243,238 shares of Common Stock remain available for issuance to officers, directors, employees and consultants pursuant to the Stock Plan. The Company has furnished to the Purchasers complete and accurate copies of the Stock Plan and forms of agreements used thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Except for (i) the conversion privileges of the Shares to be issued under this Agreement, (ii) the rights provided in Section 4 of the Investors' Rights Agreement, and (iii) the securities and rights described in Sections 2.2(a)(ii) and 2.2(b) of this Agreement, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any shares of Common Stock or Preferred Stock, or any securities convertible into or exchangeable for shares of Common Stock or Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Subsidiaries.** As of immediately prior to the Initial Closing, the Company currently owns or controls, directly or indirectly, the following corporations, partnerships, trusts, joint ventures, limited liability companies, associations, or other business entities: De Soi Inc., Maison Thomas LLC, Project Crush DTC Sub LLC, Project Crush Acquisition Corp LLC, Arts and Plants, Summer Water Inc, WKND Inc. and Storytellers Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Authorization.** All corporate action required to be taken by the Board and stockholders in order to authorize the Company to enter into the Transaction Agreements, and to issue the Shares at the applicable Closing and the Common Stock issuable upon conversion of the Shares, has been taken or will be taken prior to the applicable Closing. All action on the part of the officers of the Company necessary for the execution and delivery of the Transaction Agreements, the performance of all obligations of the Company under the Transaction Agreements to be performed as of the applicable Closing, and the issuance and delivery of the Shares has been taken or will be taken prior to the applicable Closing. The Transaction Agreements, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, or (iii) to the extent the indemnification provisions contained in the Investors' Rights Agreement and the Indemnification Agreement may be limited by applicable federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 Valid Issuance of 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;**2.6 Governmental Consents and Filings.** Assuming the accuracy of the representations made by the Purchasers in Section 3 of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for (i) the filing of the Restated Certificate, which will have been filed as of the Initial Closing, and (ii) filings pursuant to applicable securities laws, which may be filed after the Initial Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7 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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The Company owns or possesses or believes it can acquire on commercially reasonable terms sufficient legal rights to all Company Intellectual Property necessary to conduct the business as currently contemplated without any known conflict with, or infringement of, the rights of others, including prior employees or consultants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** To the Company's knowledge, no product or service marketed or sold (or proposed to be marketed or sold) by the Company violates or will violate any license or infringes or will infringe any intellectual property rights of any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Other than with respect to commercially available software products under standard end-user object code license agreements, there are no outstanding options, licenses, agreements, claims, encumbrances or shared ownership interests of any kind relating to the Company Intellectual Property, nor is the Company bound by or a party to any options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, proprietary rights and processes of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** The Company has obtained and possesses valid licenses to use all of the software programs present on the computers and other software-enabled electronic devices that it owns or leases or that it has otherwise provided to its employees for their use in connection with the Company's 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;**2.8 Rights of Registration and Voting Rights.** Except as provided in the Investors' Rights Agreement, the Company is not under any obligation to register under the Securities Act any of its currently outstanding securities or any securities issuable upon exercise or conversion of its currently outstanding securities. To the Company's knowledge, except as contemplated in the Voting Agreement, no stockholder of the Company has entered into any agreements with respect to the voting of capital shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9 Compliance with Other Instruments.** The Company is not in violation or default (a) of any provisions of its Restated Certificate or Bylaws, (b) of any instrument, judgment, order, writ or decree, or (c) under any note, indenture or mortgage. The execution, delivery and performance of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction Agreements will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement; or (ii) an event which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10 Financial Statements.** The Company has provided to the Purchasers all reasonable, readily available financial statements, whether audited or unaudited, upon request by the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11 Corporate Documents.** The Certificate of Incorporation and Bylaws of the Company as of the date of this Agreement are available to the Purchasers or their respective counsel upon 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;**2.12 Changes.** To the Company's knowledge, since the most recent balance sheet made available to Purchasers upon request, there have been no events or circumstances of any kind that have had or could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13 Employee Matters.** To the Company's knowledge, none of its employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with such employee's ability to promote the interest of the Company or that would conflict with the Company's business. Neither the execution or delivery of the Transaction Agreements, nor the carrying on of the Company's business by the employees of the Company, nor the conduct of the Company's business as now conducted and as presently proposed to be conducted, will, to the Company's knowledge, conflict with or result in a breach of the terms, conditions, or provisions of, or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Representations and Warranties of the Purchasers.** Each Purchaser hereby represents and warrants to the Company, severally and not jointly, 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;**3.1 Authorization.** The Purchaser has full power and authority to enter into the Transaction Agreements. The Transaction Agreements to which the Purchaser is a party, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the Purchaser, enforceable against such Purchaser in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors' rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, or (b) to the extent the indemnification provisions contained in the Investors' Rights Agreement may be limited by applicable federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Purchase Entirely for Own Account.** This Agreement is made with the Purchaser in reliance upon the Purchaser's representation to the Company, which by the Purchaser's execution of this Agreement, the Purchaser hereby confirms, that the Shares to be acquired by the Purchaser will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Shares. The Purchaser has not been formed for the specific purpose of acquiring the 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;**3.3 Disclosure of Information.** The Purchaser has had an opportunity to discuss the Company's business, management, financial affairs and the terms and conditions of the offering of the Shares with the Company's management and has had an opportunity to review the Company's facilities. The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 2 of this Agreement or the right of the Purchasers to rely thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Restricted Securities.** The Purchaser understands that the Shares have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser's representations as expressed herein. The Purchaser understands that the Shares are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Shares indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Purchaser acknowledges that the Company has no obligation to register or qualify the Shares, or the Common Stock into which it may be converted, for resale except as set forth in the Investors' Rights Agreement. The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Shares, and on requirements relating to the Company which are outside of the Purchaser's control, and which the Company is under no obligation and may not be able to satisfy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 No Public Market.** The Purchaser understands that no public market now exists for the Shares, and that the Company has made no assurances that a public market will ever exist for the 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;**3.6 Legends.** The Purchaser understands that the Shares and any securities issued in respect of or exchange for the Shares, may be notated with one or all of the following legends:

"THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Any legend set forth in, or required by, the other Transaction Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Any legend required by the securities laws of any state to the extent such laws are applicable to the Shares represented by the certificate, instrument, or book entry so legended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7 Accredited Investor.** The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8 Foreign Investors.** If the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Code), the Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Purchaser's subscription and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the Purchaser's 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;**3.9 CFIUS Foreign Person Status.** The Purchaser is not a "foreign person" or a "foreign entity," as defined in Section 721 of the Defense Production Act of 1950, as amended, including all implementing regulations thereof (the **"DPA").** The Purchaser is not controlled by a "foreign person," as defined in the DPA. The Purchaser does not permit any foreign person affiliated with the Purchaser, whether affiliated as a limited partner or otherwise, to obtain through the Purchaser any of the following with respect to the Company: (i) access to any "material nonpublic technical information" (as defined in the DPA) in the possession of the Company; (ii) membership or observer rights on the Board of Directors or equivalent governing body of the Company or the right to nominate an individual to a position on the Board of Directors or equivalent governing body of the Company; (iii) any involvement, other than through the voting of shares, in the substantive decision-making of the Company regarding (x) the use, development, acquisition, or release of any "critical technology" (as defined in the DPA), (y) the use, development, acquisition, safekeeping, or release of "sensitive personal data" (as defined in the DPA) of U.S. citizens maintained or collected by the Company, or (z) the management, operation, manufacture, or supply of "covered investment critical infrastructure" (as defined in the DPA); or (iv) "control" of the Company (as defined in the DPA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.10 No General Solicitation.** Neither the Purchaser, nor any of its officers, directors, employees, agents, stockholders or partners has either directly or indirectly, including, through a broker or finder (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and sale of the 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;**3.11 Exculpation Among Purchasers.** The Purchaser acknowledges that it is not relying upon any Person, other than the Company and its officers and directors, in making its investment or decision to invest in the Company. The Purchaser agrees that neither any Purchaser nor the respective controlling Persons, officers, directors, partners, agents, or employees of any Purchaser shall be liable to any other Purchaser for any action heretofore taken or omitted to be taken by any of them in connection with the purchase of the 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;**3.12 Residence.** If the Purchaser is an individual, then the Purchaser resides in the state or province identified in the address of the Purchaser set forth on **Exhibit A;** if the Purchaser is a partnership, corporation, limited liability company or other entity, then the office or offices of the Purchaser in which its principal place of business is identified in the address or addresses of the Purchaser set forth on **Exhibit 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;**3.13 "Bad Actor" Matters.** Purchaser hereby represents that no Disqualification Event is applicable to Purchaser or any of its Rule 506(d) Related Parties (as defined below), except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. Purchaser hereby agrees that it shall notify the Company promptly in writing in the event a Disqualification Event becomes applicable to Purchaser or any of its Rule 506(d) Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. For purposes of this Section 3.13, **"Rule 506(d) Related Party"** shall mean a person or entity that is a beneficial owner of Purchaser's securities for purposes of Rule 506(d) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Conditions to the Purchasers' Obligations at Closing.** The obligations of each Purchaser to purchase Shares at the Initial Closing or any subsequent Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Representations and Warranties.** The representations and warranties of the Company contained in Section 2 shall be true and correct in all material respects as of the Initial Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Performance.** The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Company on or before such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Compliance Certificate.** The Chief Executive Officer of the Company shall deliver to the Purchasers at the Initial Closing a certificate certifying that the conditions specified in Sections 4.1 and 4.2 have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 Qualifications.** All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be obtained and effective as of such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Board of Directors.** As of the Initial Closing, the authorized size of the Board shall be one(1) director, and the Board shall be composed of Mark T. Lynn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 Investors' Rights Agreement.** The Company and each Purchaser (other than the Purchaser relying upon this condition to excuse such Purchaser's performance hereunder) and the other stockholders of the Company named as parties thereto shall have executed and delivered the Investors' Rights 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;**4.7 Right of First Refusal and Co-Sale Agreement.** The Company, each Purchaser (other than the Purchaser relying upon this condition to excuse such Purchaser's performance hereunder), and the other stockholders of the Company named as parties thereto shall have executed and delivered the Right of First Refusal and Co-Sale 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;**4.8 Voting Agreement.** The Company, each Purchaser (other than the Purchaser relying upon this condition to excuse such Purchaser's performance hereunder), and the other stockholders of the Company named as parties thereto shall have executed and delivered the Voting 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;**4.9 Restated Certificate.** The Company shall have filed the Restated Certificate with the Secretary of State of Delaware on or prior to the Initial Closing, which shall continue to be in full force and effect as of such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10 Secretary's Certificate.** The Secretary of the Company shall have delivered to the Purchasers at the Initial Closing a certificate certifying (i) the Certificate of Incorporation and Bylaws of the Company in effect at the Initial Closing, (ii) resolutions of the Board approving the Transaction Agreements and the transactions contemplated under the Transaction Agreements, and (iii) resolutions of the stockholders of the Company approving the Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.11 Proceedings and Documents.** All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents incidental thereto shall be reasonably satisfactory in form and substance to each Purchaser, and each Purchaser (or its respective counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested. Such documents may include good standing certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Conditions of the Company's Obligations at Closing.** The obligations of the Company to sell Shares to the Purchasers at the Initial Closing or any subsequent Closing are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Representations and Warranties.** The representations and warranties of each Purchaser purchasing Shares in such Closing contained in Section 3 shall be true and correct in all respects as of such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Performance.** The Purchasers purchasing Shares in such Closing shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by them on or before such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Qualifications.** All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be obtained and effective as of such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 Investors' Rights Agreement.** Each Purchaser shall have executed and delivered the Investors' Rights 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;**5.5 Right of First Refusal and Co-Sale Agreement.** Each Purchaser and the other stockholders of the Company named as parties thereto shall have executed and delivered the Right of First Refusal and Co-Sale 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;**5.6 Voting Agreement.** Each Purchaser and the other stockholders of the Company named as parties thereto shall have executed and delivered the Voting Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Survival of Warranties; Limitations on Liability.** Unless otherwise set forth in this Agreement, the representations and warranties of the Company and the Purchasers contained in or made pursuant to this Agreement shall survive for a period of eighteen (18) months from the Initial Closing. The Company shall indemnify the Purchasers from any direct losses, damages, liabilities, deficiencies, costs or expenses, including reasonable attorneys' fees, that are incurred by the Purchasers due to a material breach by the Company of any of the representations and warranties contained in or made pursuant to this Agreement during the aforementioned eighteen (18) month period; provided, however, that (i) such indemnity obligation shall be the Purchasers sole recourse with respect to such breach(es) and (ii) the Company's liability in connection with such indemnity shall be limited to the aggregate Purchase Price paid by all Purchasers pursuant to 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;**6.2 Successors and Assigns.** 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 Governing Law.** This Agreement shall be governed by the internal law of the State of Delaware without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4 Counterparts.** This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, the Uniform Electronic Transactions Act or other applicable law) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5 Titles and Subtitles.** The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting 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;**6.6 Notices.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>General</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing (including electronic mail as permitted in this Agreement) and shall be deemed effectively given upon the earlier of actual receipt, or (i) personal delivery to the party to be notified, (ii) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the signature page or **Exhibit A,** or to such e-mail address or address as subsequently modified by written notice given in accordance with this Section 6.6. If notice is given to the Company, it shall be sent to 927 S. Santa Fe Avenue, Los Angeles, California 90021, *Attention:* Mark T. Lynn, mark@amass.com; and a copy (which copy shall not constitute notice) shall also be sent to Giannuzzi Lewendon LLP, 411 W 14<sup>th</sup> Street, Fourth Floor, New York, New York 10014, *Attention:* Ryan Lewendon, Esq., @ryan@gllaw.us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Consent to Electronic Notice</u>. Each Purchaser consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the **"DGCL"),** as amended or superseded from time to time, by electronic transmission pursuant to Section 232 of the DGCL (or any successor thereto) at the e-mail address set forth below such Purchaser's name on the signature page or **Exhibit A,** as updated from time to time by notice to the Company. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected e-mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each Purchaser agrees to promptly notify the Company of any change in its e-mail address, and that failure to do so shall not affect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7 No Finder's Fees.** Each party represents that it neither is nor will be obligated for any finder's fee or commission in connection with this transaction. Each Purchaser agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which each Purchaser or any of its officers, employees or representatives is responsible. The Company agrees to indemnify and hold harmless each Purchaser from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8 Fees and Expenses.** Each party hereto shall bear its own legal fees and costs in connection with the purchase of the Shares and any disputes arising 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;**6.9 Amendments and Waivers.** Except as set forth in Section 1.3 of this Agreement, any term of this Agreement may be amended, terminated or waived only with the written consent of the Company and the holders of a majority of the then-outstanding shares of Series B-2 Preferred Stock and Series B-3 Preferred Stock, together. Any amendment or waiver effected in accordance with this Section 6.9 shall be binding upon the Purchasers and each transferee of the Shares (or the Common Stock issuable upon conversion thereof), each future holder of all such securities, and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10 Severability.** The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11 Delays or Omissions.** No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.12 Entire Agreement.** This Agreement (including the Exhibits hereto), the Restated Certificate and the other Transaction Agreements constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.13 Corporate Securities Law.** THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.14 Dispute Resolution.** The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of the State of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Delaware or any court of the State of Delaware having subject matter jurisdiction. Each party will bear its own costs in respect of any disputes arising under this Agreement.

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL- ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.15 Waiver of Conflicts.** Each party to this Agreement acknowledges that Giannuzzi Lewendon LLP **("GL")** has acted as counsel solely to the Company with respect to this Agreement and the transactions contemplated hereby (together, the **"Financing"),** and has negotiated the terms of the Financing solely on behalf of the Company. GL may have, in the past, represented and/or may, now or in the future, represent one or more other parties to this Agreement and/or their Affiliates in other matters, including matters that are similar, but not substantially related, to the Financing. The applicable rules of professional conduct require that GL inform its clients of these representations and obtain their waivers of the conflicts that may arise from such representations. The Company and each other party to this Agreement hereby (a) acknowledges that such party has been advised about such circumstances and has had an opportunity to ask for additional information, (b) acknowledges that, with respect to the Financing, GL has represented solely the Company and no other party, and (c) gives its informed consent to GL's representation of the Company in the Financing and GL's representation of other parties to this Agreement and/or their Affiliates in other matters.

**[Signature Pages Follow]**

IN WITNESS WHEREOF, the parties have executed this Series B-2 and Series B-3 Preferred Stock Purchase Agreement as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **AMASS BRANDS INC** | **AMASS BRANDS INC** |
| By: | /s/ Mark T. Lynn |
|  | Name: Mark T. Lynn |
|  | Title: Chief Executive Officer |

---

**EXHIBIT B<br> FORM OF FIFTH AMENDED AND RESTATED<br> CERTIFICATE OF INCORPORATION**

**EXHIBIT C**

**FORM OF INVESTORS' RIGHTS AGREEMENT**

**EXHIBIT D**

**FORM OF RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT**

**EXHIBIT E<br> FORM OF VOTING AGREEMENT**

**EXHIBIT B**

FORM OF AMENDED LLC AGREEMENT

(attached)

***Execution Version***

**THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY<br> AGREEMENT**

**of**

**222 SPIRITS HOLDCO, LLC**

**Effective as of September 19, 2024**

NOTICE

NEITHER 222 SPIRITS HOLDCO, LLC NOR THE MEMBERSHIP INTERESTS THEREIN HAVE BEEN OR WILL BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED, THE SECURITIES LAWS OF ANY OF THE STATES OF THE UNITED STATES OR THE SECURITIES LAWS OF ANY FOREIGN JURISDICTION.

THE DELIVERY OF THIS THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY OFFER, SOLICITATION OR SALE OF MEMBERSHIP INTERESTS IN 222 SPIRITS HOLDCO, LLC IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE IS NOT AUTHORIZED OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER, SOLICITATION OR SALE.

THE MEMBERSHIP INTERESTS IN 222 SPIRITS HOLDCO, LLC ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE OR FOREIGN SECURITIES LAWS PURSUANT TO REGISTRATION THEREUNDER OR EXEMPTION THEREFROM AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS SET FORTH IN THIS THIRD AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT.

**TABLE OF CONTENTS**

1. Definitions 2

2. Name 2

3. Filing of Certificates 2

4. Purposes 2

5. Powers 2

6. Principal Business Office 2

7. Registered Office 2

8. Registered Agent 2

9. Units 3

10. Members 4

11. Preemptive Rights 5

12. Limited Liability 7

13. Capital Contributions 7

14. Maintenance of Separate Existence 7

15. Distributions 8

16. Management 10

17. Officers 14

18. Waiver of Fiduciary Duties 15

19. Noncompete; Other Business Opportunities 15

20. Exculpation and Indemnification 16

21. Restrictions on Transfer 17

22. Call Option 24

23. Sale Process 25

24. Resignation 27

25. Admission of Additional Members 27

26. Books and Records 27

27. Confidential Information 27

28. Dissolution 29

29. Benefits of Agreement; No Third-Party Rights 30

30. Severability of Provisions 30

31. Interpretation 30

32. Entire Agreement 30

33. Governing Law 30

34. Dispute Resolution; Arbitration 31

35. Submission to Jurisdiction 32

36. Waivers; Amendments 33

i

**INDEX OF DEFINED TERMS**

The following terms have the meanings set forth on the pages referenced below:

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| | |
|:---|:---|
| Accepting ROFR Recipient | 18 |
| Acquiror | 24 |
| Act | 1 |
| Adhati Manager | 11 |
| Agreement | 1 |
| AMASS Managers | 11 |
| AMASS Notice | 18 |
| AMASS Notice Due Date | 18 |
| AMASS Secondary Offer | 18 |
| Annual Budget | 14 |
| Assumed Tax Liability | 9 |
| Available Offered Units | 18 |
| Award Agreement | 3 |
| Bankruptcy Case | 15 |
| Board | 10 |
| Bound Party | 15 |
| CA LLC | 2 |
| Call | 24 |
| Call Exercise Date | 24 |
| Call Exercise Notice | 24 |
| Call Member | 24 |
| Call Option | 24 |
| Call Period | 24 |
| Call Purchase Price | 24 |
| Call Purchase Price Determination Period | 24 |
| Call Units | 24 |
| Capital Contribution | 7 |
| Certificate | 2 |
| Class A Common Units | 3 |
| Company | 1 |
| Company Notice Due Date | 18 |
| Company Transfer Notice | 18 |
| Competitive Business | 15 |
| Confidential Information | 27 |
| Co-Sale Option Period | 20 |
| Co-Sale Participants | 20 |
| Co-Sale Right | 20 |
| Co-Sale Transaction | 20 |
| Co-Sale Transferor | 19 |
| Co-Sale Trigger Date | 19 |
| Covered Persons | 16 |
| Deal Counsel | 24 |
| Dispute Date | 31 |

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ii

---

| | |
|:---|:---|
| Drag Request | 21 |
| Drag Transaction | 21 |
| Dragged Member | 21 |
| Dragging Members | 21 |
| Effective Date | 1 |
| External Sale Notice | 17 |
| Financial Advisor | 24 |
| Founders | 12 |
| Grantor | 8 |
| Incentive Units | 3 |
| Initial Call Date | 24 |
| Issuance Notice | 5 |
| JAJC Manager | 11 |
| JAMS | 31 |
| License Agreement | 1 |
| Line of Credit Agreement | 1 |
| Litigable Action | 32 |
| Management Services Agreement | 1 |
| Manager | 11 |
| Maximum Co-Sale Units | 20 |
| Member Notice Due Date | 18 |
| Member Offer | 18 |
| Member Representative | 22 |
| Non-ROFR Member | 19 |
| Non-Selling Members | 17 |
| Offer Price | 17 |
| Offered Units | 17 |
| Officers | 14 |
| Permitted AMASS Affiliate Transactions | 12 |
| Permitted Transfer | 17 |
| Preemptive Maximum Share | 6 |
| Preemptive Member | 5 |
| Preemptive Participant | 6 |
| Preemptive Portion | 5 |
| Preemptive Purchase Right | 5 |
| Preemptive Purchase Units | 5 |
| Prior Agreement | 1 |
| Proposed Price | 20 |
| Purchase Agreement | 1 |
| Purchase and Sale Agreement | 20 |
| RCAs | 1 |
| Representatives | 27 |
| Responsible Party | 14 |
| Restricted Period | 15 |
| ROFO Acceptance Notice | 25 |
| ROFO Interest Price | 25 |

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iii

---

| | |
|:---|:---|
| ROFO Notice | 25 |
| ROFO Offer | 25 |
| ROFO Offered Units | 25 |
| ROFR Closing Deadline | 19 |
| ROFR Portion | 18 |
| Sale Process | 25 |
| Tax Distribution | 9 |
| Tax Distribution Shortfall Amount | 10 |
| Threshold Amount | 3 |
| Transfer Notice | 20 |
| Transferring Member | 17 |
| Units | 3 |

---

iv

**THIRD AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**222 SPIRITS HOLDCO, LLC**

This Third Amended and Restated Limited Liability Company Agreement (this "<u>Agreement</u>") of 222 Spirits Holdco, LLC (the "<u>Company</u>"), a Delaware limited liability company organized pursuant to the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, et seq. (as amended from time to time, the "<u>Act</u>"), is entered into and shall be effective as of September 19, 2024 (the "<u>Effective Date</u>") by and among the Company and the Members listed on <u>Schedule 10</u> attached hereto and such other Persons as may hereafter be admitted from time to time as Members in accordance with the provisions hereof.

**<u>RECITALS</u>**

WHEREAS, certain Members were party to that certain Second Amended and Restated Operating Agreement of the Company effective as of September 8, 2022 (the "<u>Prior Agreement</u>");

WHEREAS, on the Effective Date, the Adhati Member, the JAJC Member and the AMASS Member entered into that certain Unit Purchase Agreement (the "<u>Purchase Agreement</u>"), pursuant to which, among other things, the AMASS Member purchased Class A Common Units from each of the Adhati Member and the JAJC Member, and following such acquisition, the AMASS Member holds 50.0001% of the issued and outstanding Membership Interests of the Company as of the Effective Date;

WHEREAS, simultaneously with the execution of this Agreement, the Company is entering into (i) that certain Management Services Agreement, by and between the Company and the AMASS Member (the "<u>Management Services Agreement</u>"), (ii) those certain Restrictive Covenants Agreements by and between the Company, on the one hand, and each of the Founders, on the other hand, (the "<u>RCAs</u>"), (iii) that certain Name and Likeness Agreement, by and between the Company and DG, LLC f/s/o Behati Prinsloo Levine and Adam Levine (the "<u>License Agreement</u>"), and (iv) that certain Revolving Line of Credit Agreement, by and between the Company and the AMASS Member (the "<u>Line of Credit Agreement</u>");

WHEREAS, the Company and the Members now desire to amend and restate the Prior Agreement in its entirety and for this Agreement to supersede the Prior Agreement in its entirety; and

WHEREAS, in connection with the foregoing, this Agreement shall completely amend, restate and replace in their entirety, any and all previous limited liability company agreements or governing documents of the Company, including, without limitation, the Prior Agreement.

**<u>AGREEMENT</u>**

NOW, THEREFORE, the Members, by execution of this Agreement, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used but not defined herein shall have the meanings ascribed to them in <u>Annex I</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Name</u>. The name of the limited liability company is "222 Spirits Holdco, LLC;" and all business of the Company shall be conducted under that name or the "d/b/a" "Calirosa Tequila;" <u>provided</u>, <u>however</u>, that the Company may obtain additional "d/b/a"s for the Company, as determined from time to time by the Managers and shall operate under such name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Filing of Certificates</u>. 222 Spirits Holdco, LLC was formed as a California limited liability company on November 19, 2020 (the "<u>CA LLC</u>"). The CA LLC was converted into the Company by the filing of a Certificate of Conversion and Certificate of Formation with the Secretary of State of Delaware on September 10, 2021 (as amended or restated from time to time, the "<u>Certificate</u>"). Any Officer is hereby designated as an authorized person within the meaning of the Act, to execute, deliver and file, or to cause the execution delivery and filing of, any amendments or restatements of the Certificate and any other certificates, notices, statements or other instruments (and any amendments or restatements thereof) necessary or advisable for the qualification of the Company or the operation of the Company in all jurisdictions where the Company may elect to do business, but no such amendment, restatement or other instrument may be executed, delivered or filed unless adopted in a manner authorized by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Purposes</u>. The Company was formed for the object and purpose of, and the nature of the business to be conducted and promoted by the Company is, engaging in any lawful act or activity for which limited liability companies may be formed under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Powers</u>. In furtherance of its purposes, but subject to all of the provisions of this Agreement, the Company shall have and may exercise all the powers now or hereafter conferred by Delaware law on limited liability companies formed under the Act and all powers necessary, convenient or incidental to accomplish its purposes as set forth in <u>Section 4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Principal Business Office</u>. The principal business office of the Company shall be located at 927 S. Santa Fe Avenue, Los Angeles, California 90021, or at such other location as may hereafter be determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Registered Office</u>. The address of the registered office of the Company in the State of Delaware is c/o National Registered Agents, Inc., 1209 Orange Street, City of Wilmington, County of New Castle, Delaware 19801.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Registered Agent</u>. The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware is National Registered Agents, Inc., 1209 Orange Street, City of Wilmington, County of New Castle, Delaware 19801.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Units</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>Authorized Units</u>. Membership Interests in the Company shall be denominated as Units ("<u>Units</u>"). The Company shall be authorized to issue two (2) classes of Units, designated as (i) "Class A Common Units" and (ii) "Incentive Units".

&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>Class A Common Units</u>. The total number of Class A Common Units that the Company is authorized to issue is 8,700, (i) 4,350.0087 of which are held by the AMASS Member and are fully vested as of the Effective Date, (ii) 2,174.99565 of which are held by the Adhati Member, and are fully vested as of the Effective Date, and (iii) 2,174.99565 of which are held by the JAJC Member, and are fully vested as of the Effective 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;(c) <u>Incentive Units</u>. Subject to the terms of this <u>Section 9,</u> the total number of Incentive Units the Company is authorized to issue is 800, 132.50 of which are held by Management Holdco. Each Incentive Unit issued under this Agreement shall be assigned a vintage year and lot number, as determined by the Company. Notwithstanding anything contained herein or in the Act to the contrary, the Incentive Units shall have no voting, approval, information (including to review this Agreement) or consent rights 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Award Agreements</u>. Incentive Units may be awarded to service providers (Management Holdco or another aggregator entity) from time to time and may be evidenced by a written agreement in the form approved by the Board (each agreement, an "<u>Award Agreement</u>") that sets forth the terms, conditions and limitations for the Incentive Units granted thereby, including, without limitation, the term of an Award Agreement, the provisions applicable in the event of termination of the grantee's employment or service relationship with the Company, and the Company's authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Threshold Amounts</u>. Any Incentive Unit shall have set forth in its applicable Award Agreement a threshold amount (a "<u>Threshold Amount</u>"), which shall be no less than the amount of distributable proceeds that would be distributed to the Members under <u>Section 15(b)</u> if, immediately after the issuance of such Incentive Unit, all the assets of the Company were sold for their respective fair market values, the liabilities of the Company were paid in full, and the remaining proceeds were distributed in accordance with <u>Section 15(b)</u>. Subject to the preceding sentence, the Threshold Amount for each Incentive Unit will be established by the Board at the time such Incentive Unit is granted and documented in the related Award Agreement. The Threshold Amount with respect to any Incentive Unit shall be equitably adjusted by the Company to reflect distributions, contributions, splits, reverse splits, recapitalizations, redemptions, or other similar events as determined by the Company; <u>provided, however,</u> that no equitable adjustment described in this sentence shall increase or decrease the economic entitlement of an Incentive Unit holder when compared to that Incentive Unit holder's economic entitlement immediately before the event that necessitated such equitable adjustment.

&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>Intended Tax Treatment of Incentive Units</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Treatment as Profits Interests</u>. The Incentive Units are intended to be treated for tax purposes as "profits interests" within the meaning of Rev. Proc. 93-27, 1993-2 C.B. 343, and Rev. Proc. 2001-43, 2001-2 C.B. 191. The receipt of the Incentive Units is intended to be treated as a non-taxable event for the Company and the Incentive Unit Holder. In consideration of the receipt of the Incentive Units, the Incentive Unit Holder shall agree not to take any position inconsistent with the foregoing. The Company and the Members shall treat each Incentive Unit Holder as a Member of the Company as of the grant date of such Incentive Unit Holder's Incentive Units for all purposes. The Incentive Units shall be non-voting Units and such Incentive Units Holders shall have no voting rights with respect to such Incentive Units Holder's Incentive Units for all matters under this Agreement unless specifically required by the Act. Each Incentive Unit Holder shall take into account the distributive share of the Company's income, gain, loss, deduction, and credit associated with such Incentive Unit Holder's Incentive Units in computing such Incentive Unit Holder's income tax liability for the entire period during which such Incentive Unit Holder holds the Incentive Units. Upon the grant of the Incentive Units or at the time the Incentive Units become fully vested, neither the Company nor any of the Members shall deduct any amount (as wages, compensation, or otherwise) for the Fair Market Value of the Incentive Units. Notwithstanding anything to the contrary in this Agreement, each Incentive Unit Holder shall not dispose of any portion of his or her Incentive Units without the prior written consent of the Board, in each instance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Election Under Code Section 83(b)</u>. Absent a contrary determination by the Company each Person who is issued an Incentive Unit shall use best efforts to file a valid and timely election pursuant to Code section 83(b) with respect to such Incentive Unit and provide a copy of the election to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Members</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>Schedule of Members</u>. The name and number of Units held by each Member shall be listed on <u>Schedule 10</u>. An authorized Officer of the Company shall update <u>Schedule 10</u> from time to time, as necessary to reflect accurately the information therein as known by the Members, but no such update shall modify <u>Schedule 10</u> in any manner inconsistent with <u>Section 25</u> or any other Section of this Agreement or the Act. Any amendment or revision to <u>Schedule 10</u> made in accordance with this Agreement shall not be deemed an amendment to this Agreement for purposes of this Agreement, including <u>Section 36</u>. Any reference in this Agreement to <u>Schedule 10</u> shall be deemed to be a reference to such Schedule as amended and in effect from time to time.

&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>General Voting Rights</u>. The sole voting rights of the Members shall be such voting rights as are required by the Act or other applicable Law, and as expressly provided in this Agreement. On any matter requiring or permitting a vote of the Members pursuant to the Act, other applicable Law or this Agreement, each Class A Common Member shall have one (1) vote for each Class A Common Unit held by such Member. For the avoidance of doubt, none of the Incentive Units shall have any voting, approval or consent rights whatsoever. No Member, acting solely in the capacity of a Member, is an agent of the Company nor can any Member in such capacity bind or execute any instrument on behalf of the Company.

&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>Action by Written Consent; Telephonic or Video Conference</u>. Any action required or permitted to be taken by the Members, or by any group of them, either at a meeting or otherwise, may be taken without a meeting if such Members, by the vote required for the relevant action in accordance with this Agreement, approve such action in writing (including by electronic transmission) and the writing or writings are maintained with the books and records of the Company. Such consent shall have the same force and effect as a vote at a meeting, and the execution of such consent shall constitute attendance or presence in person at a meeting of the Members. Subject to the requirements of this Agreement for notice of meetings, the Members may participate in and hold a meeting by means of a telephonic or video conference or similar communications equipment by means of which all Persons participating in the meeting can hear each other, and participation in such meeting shall constitute attendance and presence in person at such meeting, except where a Person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. Any action approved by the Members at a telephonic or video conference meeting of the Members shall be effective on the written consent of no less than the minimum number of Members which would be necessary to authorize such action at a meeting of the Members. Any telephonic or video conference meeting of the Members may be recorded by any electronic device with the consent of all Members present at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Preemptive Rights</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) If the Company or a Subsidiary proposes to sell or issue New Securities, the Class A Common Members (each, a "<u>Preemptive Member</u>") shall have the right (the "<u>Preemptive Purchase Right</u>") to purchase a number of such New Securities equal to the product of (i) such Preemptive Member's Percentage Interest (calculated solely with respect to Class A Common Units) immediately prior to the issuance of the New Securities multiplied by (ii) the total number of New Securities to be issued by the Company or the Subsidiary on the applicable issuance date (such Preemptive Member's allocation, the "<u>Preemptive Portion</u>"). The aggregate number of New Securities that the Preemptive Members may purchase pursuant to this <u>Section 11(a)</u> shall be referred to as the "<u>Preemptive Purchase Units</u>." The Preemptive Purchase Right provided in this <u>Section 11(a)</u> shall apply at the time of issuance of any right, warrant or option or convertible or exchangeable security, and not to the conversion or exchange pursuant to its terms or exercise thereof. Notwithstanding anything to the contrary in this Agreement, the applicability of some or all of the provisions of this <u>Section 11(a)</u> may be waived in accordance with <u>Section 36</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;(b) The Company or Subsidiary, as applicable, shall give written notice (the "<u>Issuance Notice</u>") of a proposed issuance or sale of New Securities described in <u>Section 11(a)</u> to the Preemptive Members at least ten (10) days prior to the proposed issuance or sale of New Securities. The Issuance Notice shall set forth the material terms and conditions of such proposed issuance or sale, including (i) the number or amount and description of the New Securities proposed to be issued, (ii) the proposed issuance date and (iii) the proposed purchase price per New Security, it being understood that New Securities shall be sold only for cash consideration and with no restrictions on such New Securities other than the restrictions set forth in this Agreement and applicable Law. Each such Preemptive Member shall be entitled to purchase the Preemptive Purchase Units at the same price and other terms (other than immaterial differences) on which such New Securities are proposed to be issued or sold by the Company or a Subsidiary, as applicable; provided, that, if the proposed purchaser(s) of any such New Securities is required to also purchase other securities of the Company or the Subsidiary, as applicable, the Members exercising their rights pursuant to <u>Section 11(a)</u> shall also be required to purchase such other securities of the same type (at the same price and on the same terms and in the same relative amounts) that such other Persons are required to purchase. Notwithstanding anything to the contrary herein, but subject to the immediately preceding sentence, exercise of the Preemptive Purchase Right cannot be conditioned on anything other than purchasing the New Security for cash within the time frames described 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;(c) At any time during the ten (10)-day period following the receipt of an Issuance Notice, the Preemptive Members shall have the right to elect irrevocably to purchase their respective Preemptive Portions of the Preemptive Purchase Units at the purchase price set forth in the Issuance Notice, and upon the other terms and conditions specified in the Issuance Notice, by delivering a written notice to the Company or the Subsidiary, as applicable (any Preemptive Member who makes such an election, a "<u>Preemptive Participant</u>"), indicating the number of Preemptive Purchase Units such Preemptive Participant desires to purchase, plus, only if such Preemptive Participant has elected to purchase such Preemptive Member's full Preemptive Portion of the Preemptive Purchase Units, the maximum number of Preemptive Purchase Units such Preemptive Participant would desire to purchase in the event that one or more Preemptive Members decline or elect to purchase a lesser number of Preemptive Purchase Units than such Preemptive Member is entitled to purchase pursuant to its Preemptive Purchase Right (such aggregate number of Preemptive Purchase Units elected to be purchased, with respect to each Preemptive Participant, its "<u>Preemptive Maximum Share</u>"). If a Preemptive Member fails to give notice to the Company or the Subsidiary, as applicable, pursuant to the foregoing sentence of this <u>Section 11(c)</u> on or before the date that is ten (10) days following the receipt of an Issuance Notice, such Preemptive Member shall be deemed to have irrevocably elected not to purchase any of the Preemptive Purchase Units and to have delivered notice of such decision to the Company or the Subsidiary, as applicable. Except as provided in the following sentence, such purchase shall be consummated concurrently with the consummation of the issuance or sale described in the Issuance Notice. The closing of any purchase by any Preemptive Participant may be extended beyond the closing of the transaction described in the Issuance Notice to the extent necessary to (1) obtain required governmental approvals and other required approvals, and the Company or the Subsidiary, as applicable, on the one hand, and the Preemptive Participants, on the other hand, shall use their respective commercially reasonable efforts to obtain such approvals, and (2) permit the Preemptive Participants to complete their internal capital call processes, if applicable; <u>provided</u>, that the extension pursuant to this <u>clause (2)</u> shall not exceed thirty (30) days.

&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) If, with respect to the Preemptive Purchase Units, the sum of the Preemptive Maximum Shares of all Preemptive Participants exceeds the number of Preemptive Purchase Units, then the Preemptive Purchase Units shall be allocated to the Preemptive Participants in accordance with their respective Preemptive Portions, up to the Preemptive Maximum Share each such Preemptive Participant has indicated in such Preemptive Participant's notice delivered pursuant to <u>Section 11(c)</u>. Within five (5) days after end of the ten (10)-day period following the receipt of an Issuance Notice, the Company or the Subsidiary, as applicable, shall send a written notice to each of the Preemptive Participants who delivered a notice exercising its Preemptive Purchase Rights pursuant to <u>Section 11(c)</u>, specifying the number of Preemptive Purchase Units to be purchased by such Preemptive Participant pursuant to <u>Section 11(c)</u> and this <u>Section 11(d)</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;(e) Any portion of the Preemptive Purchase Units that are not purchased by the Preemptive Members pursuant to <u>Section 11(c)</u> and <u>Section 11(d)</u>, may be sold by the Company or the Subsidiary, as applicable, at the purchase price described in the Issuance Notice or at a higher price and otherwise on the same terms (other than immaterial differences) set forth in the Issuance Notice (except that the amount of securities to be issued or sold by the Company or the Subsidiary, as applicable, may be reduced), <u>provided</u> that such issuance is consummated within ninety (90) days after the expiration of the five (5)-day period described in <u>Section 11(d)</u>. Such periods within which such issuance or sale must be closed shall be extended to the extent necessary to obtain required governmental approvals and other required approvals and the Company or the Subsidiary, as applicable, shall use its commercially reasonable efforts to obtain such approvals. In the event that the Company or the Subsidiary, as applicable, has not sold such New Securities within said ninety (90)-day period, the Company or the Subsidiary, as applicable, shall not thereafter issue or sell any New Securities, without first again offering such securities to the Preemptive Participants in the manner provided in this Section 11.

&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) Notwithstanding the foregoing, if the Board determines in good faith that it would be in the best interests of the Company or the Subsidiary, as applicable, to do so, the Company or the Subsidiary, as applicable, may issue New Securities that would otherwise be required to be first offered to the Preemptive Members pursuant to <u>Section 11(a)</u> without first complying with the other provisions of this <u>Section 11</u>; <u>provided</u>, that, within ninety (90) days after the termination of such offering of such New Securities, the Company or the Subsidiary, as applicable, offers each Preemptive Member the opportunity to purchase the amount of New Securities that such Preemptive Member would be entitled to purchase under <u>Section 11(c)</u> with respect to the total amount of New Securities issued in such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Limited Liability</u>. Except as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Capital Contributions</u>. The Members are not required to make any capital contributions to the Company. However, the Members may voluntarily make a capital contribution ("<u>Capital Contribution</u>") to the Company at any time with unanimous approval of the Managers then serving on the Board. Any Capital Contributions made by any Member (including Capital Contributions made prior to the Effective Date) shall be set forth in the books and records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Maintenance of Separate Existence</u>. The Company shall do all things necessary to maintain its limited liability company existence separate and apart from the Members and any Affiliates of the Members, including maintaining its books and records on a current basis separate from that of any Affiliate of the Company or any other person or entity, and shall not commingle the Company's assets with those of any Affiliate of the Company or any other person or entity. In furtherance, and not in limitation, of the foregoing, the Company shall not:

&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) fail to (i) maintain or cause to be maintained by an agent under the Company's control physical possession of the records required to be kept under the Act, (ii) account for and manage all of its liabilities separately from those of any other person or entity, including payment by the Company of administrative expenses and taxes, other than income taxes, from its own assets or (iii) identify or cause to be identified separately all of its assets from those of any other person or entity;

&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) commingle, or permit the commingling of, its funds with the funds of any Member or any Affiliate of any Member or use its funds for uses other than the Company's uses; 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;(c) maintain, or permit the maintenance of, joint bank accounts or other depository accounts to which any Member would have independent access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Distributions</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>Ordinary Distributions</u>. Available Cash shall be distributed one hundred percent (100%) pro rata to the Class A Common Members, in proportion to their Class A Common Units as and when approved by the Board from time to time in its sole and absolute discretion.

&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>Liquidation Distributions</u>. Upon a Liquidity Event, all proceeds shall be distributed in the following order and priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>First</u>, to creditors of the Company (including holders of Units that are creditors to the extent otherwise permitted by Law), in satisfaction of the liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof), other than liabilities for distributions to holders of Units; 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Second</u>, subject to <u>Section 15(c)</u>, the remainder pro rata to the Members in proportion to their Percentage Interests.

&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>Distribution Adjustments</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Incentive Unit Adjustment</u>. For the purposes of any distributions made 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) no Incentive Unit shall be considered outstanding (other than for U.S. federal income tax purposes) until both (1) (x) the aggregate distributions made pursuant to <u>Sections 15(a)</u> and <u>15(b)</u> to the holders of Class A Common Units after the date on which such Incentive Unit was issued with respect to Class A Common Units outstanding on the date such Incentive Unit was issued (or other Units issued thereafter with respect to such outstanding Units in connection with a split, dividend or similar transaction) equals (y) the Threshold Amount for such Incentive Unit and (2) there has been a Capital Transaction or a Change in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any amount that is not distributed in respect of an Incentive Unit by reason of <u>Section 15(c)(i)(A)</u> shall be distributed pursuant to <u>Section 15(b)</u> as if such Incentive Unit were not outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) once an Incentive Catch-Up Unit's applicable Threshold Amount is satisfied, each Incentive Catch-Up Unit shall be entitled to all distributions in priority to all other distributions pursuant to <u>Section 15(b)(ii)</u>, until such Incentive Catch-Up Unit's applicable Incentive Catch-Up Amount is reduced to zero. If multiple Incentive Catch-Up Units have the same Threshold Amount, then such Incentive Catch-Up Units shall share pro rata in such distributions in proportion to the amounts they are entitled to pursuant to this <u>Section 15(c)(i)(C)</u>; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) notwithstanding the preceding provisions of this <u>Section 15(c)(i)(C)</u> with respect to any Incentive Unit, the Company may make distributions without regard to this <u>Section 15(c)(i)</u> to the extent the Board determines (1) to make such distribution and (2) that making such distribution will not cause any Incentive Units to be treated other than as "profits interests" for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Unvested Incentive Units</u>. Notwithstanding the foregoing, other than to the extent set forth in an applicable Award Agreement, for the purposes of making any distributions under <u>Section 15(b)</u>, no Incentive Unit shall be considered outstanding (other than for U.S. federal income tax purposes) while it is unvested pursuant to the terms of its applicable Award Agreement and no distribution shall be made or accrued with respect to unvested Incentive Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Additional Limitation on Distributions to Incentive Units</u>. Amounts distributable in respect of an Incentive Unit under <u>Section 15(b)(ii)</u> shall not exceed the amount of Intangible Asset Gain realized from and after the date of the issuance of such Incentive Unit that is, as determined by the Board, properly attributable to such Incentive Unit. It is the intention of the Members that Incentive Unit Holders receive only distributions attributable to, and are allocated only, Intangible Asset Gain, and this Agreement shall be interpreted consistently with that intention.

&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>Tax Distributions</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Generally</u>. The Company shall distribute Available Cash pro rata to the Class A Common Members in proportion to their Class A Common Units until each such Member receives distributions of cash in respect of the Fiscal Year in an amount equal to the Member's Assumed Tax Liability (that distribution, a "<u>Tax Distribution</u>"). Any Tax Distribution paid to a Member under this <u>Section 15(d)</u> shall for all purposes of this Agreement be treated as having been made and reduce future amounts due to such Member under <u>Section 15(a)</u> and <u>Section 15(b)(ii)</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Assumed Tax Liability</u>. For purposes of calculating the amount of each Member's Tax Distribution under <u>Section 15(d)(i),</u> a Member's "<u>Assumed Tax Liability</u>" means an amount equal to the product of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 sum of (i) the net taxable income and net losses, income, gain, loss, deduction, expense and credit allocated to that Member in the Fiscal Year and (ii) to the extent attributable to the Company and determined by the Board, the amount the Member is required to include in income by reason of Code sections 707(c) (but not including guaranteed payments for services within the meaning of Code section 707(c)), 951(a), and 951A(a); <u>multiplied</u> 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;&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) the percentage that is, with respect to the type of net taxable income and net losses, income, gain, loss, deduction, expense and credit allocated to the Member (or other amount included in income by the Member), the highest combined effective U.S. federal, state, and local marginal rate of tax for an individual resident in Los Angeles, California or New York, New York, whichever is higher (unless otherwise determined by the Board) for the Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Other Assumptions</u>. The calculation required by this <u>Section 15(d)</u> shall be made (A) taking into account (1) any limitations on, or the availability of, deductions or losses and (2) the effect of the allocations required under Code section 704(c)(1)(A) and the principles thereof and (B) disregarding the effect of any special basis adjustments under Code section 743(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Timing of Distributions</u>. The Company shall make distributions of the estimated Tax Distributions for a Fiscal Year of the Company on a quarterly basis to facilitate the payment of quarterly estimated income taxes, taking into account amounts previously distributed under this <u>Section 15(d)(iv)</u>. Not later than seventy-five (75) days after the end of the Fiscal Year, the Company shall make a final Tax Distribution in an amount sufficient to fulfill the Company's obligations under <u>Section 15(d)(i)</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;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Impact of Insufficient Available Cash</u>. If the amount of Tax Distributions to be made exceeds the amount of Available Cash, the Tax Distribution to which each Member is entitled shall be reduced in proportion to the amount the Members would have received had there been no reduction (each Member's share of that reduction, the "<u>Tax Distribution Shortfall Amount</u>"). Any Tax Distribution Shortfall Amounts will be carried forward to subsequent Fiscal Years and will be distributed when and to the extent that the Company has sufficient Available Cash, and distribution of any Tax Distribution Shortfall Amounts shall for all purposes of this Agreement be treated as having been made and reduce future amounts due to such Member under <u>Section 15(a)</u> and <u>Section 15(b)(ii)</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;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Tax Distributions on Liquidation</u>. No Tax Distributions shall be made in connection with the liquidation of the Company or a complete liquidation of a Member's interest in the Company.

&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>Applicable Law</u>. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to a Member on account of its interest in the Company if such distribution would violate the Act or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Management</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>Management of the Company</u>. The business and affairs of the Company shall be solely and exclusively managed by or under the direction of the board of managers (the "<u>Board</u>"). Subject to the terms of this Agreement, the Board shall have the power to do any and all acts necessary, convenient or incidental to or for the furtherance of the purposes of the Company described herein, including all powers, statutory or otherwise, possessed by managers of a limited liability company under the Laws of the State of Delaware. Each Manager is hereby designated a "manager" of the Company within the meaning of the Act. The Board may delegate, if it chooses, any or all of its powers to committees of the Board, Officers and agents elected or appointed by the Board or a duly constituted committee thereof as the Board may deem appropriate from time to time. Except as otherwise required by Law or as provided in this Agreement, approval of any action by the Board in accordance with this Agreement shall constitute approval of such action by the Company. Except as otherwise provided in this Agreement, no Member shall have the authority to bind the Company.

&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>Number of Managers; Appointment of the Board</u>. Subject to <u>Section 16(d)</u> below, the number of individuals on the Board (each, a "<u>Manager</u>") shall be four (4); <u>provided</u>, <u>however</u>, that in connection with a bona fide Third Party equity financing transaction, the Board may be expanded to five (5) Managers to include an additional Manager. The Managers shall be appointed 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adhati Manager</u>. The Adhati Member shall be entitled to appoint one (1) Manager (the "<u>Adhati Manager</u>"), who initially shall be Richard Feldstein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>AMASS Managers</u>. The AMASS Member shall be entitled to appoint two (2) Managers (the "<u>AMASS Managers</u>"), who initially shall be Mark T. Lynn and Geoff McFarlane.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>JAJC Manager</u>. The JAJC Member shall be entitled to appoint one Manager (1) (the "<u>JAJC Manager</u>"), who initially shall be Richard Statter.

&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>Meetings</u>. Meetings of the Board, both regular and special, may be held within or outside of the State of Delaware and at such time and place as determined by the Board, including by telephone or similar means of communication in accordance with <u>Section 16(h)</u>. Such meetings shall be called at the direction of one (1) or more Managers, and for reasonable cause (which is understood to include any meeting called by a Manager to review any determination made by the Company pursuant to this Agreement), upon two (2) days' notice by electronic transmission given by such Manager to each of the Managers.

&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>Quorum; Voting</u>. Subject to <u>Section 16(f)(ii),</u> the presence of a majority of the Managers, including one (1) AMASS Manager and one (1) Founder Manager, shall constitute a quorum. A quorum must exist at all times of a meeting, including the reconvening of any meeting that has been adjourned, for any action taken at such meeting to be valid. Each Manager shall have one (1) vote on each matter to be considered or determined, and each action to be taken, by the Board. In the event that there is an equality of votes of the Board, then the Board may appoint a mutually agreed upon third-party independent manager to have the deciding vote with respect to such deadlocked 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;(e) <u>Removal of Managers; Vacancies</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Only the Adhati Member may remove the Adhati Manager, only the AMASS Member may remove an AMASS Manager, and only the JAJC Member may remove the JAJC Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the event a vacancy occurs on the Board as a result of the retirement, removal, resignation or death of a Manager, such vacancy shall be filled as follows: (x) if such Manager is the Adhati Manager, the vacancy shall be filled by the Adhati Member, (y) if such Manager is an AMASS Manager, the vacancy shall be filled by the AMASS Member and (z) if such Manager is the JAJC Manager, the vacancy shall be filled by the applicable JAJC Member.

&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>Authority of the Board</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>General</u>. Subject to any other provision of this Agreement which requires a separate action, vote or consent of the Members or any group thereof (including <u>Section 16(f)(ii))</u>, the Board shall have ultimate authority with respect to all aspects of the business and operations of the Company, and all decisions of the Board shall be taken at a meeting at which a quorum exists by votes of a majority of the Managers participating in such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Founder Approvals</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Without limiting the generality of <u>Section 16(f)(i)</u>, the Company shall not, and shall direct its Subsidiaries not to, take (and any Subsidiary's failure to follow the Company's directions to comply with the terms of this <u>Section 16(f)(ii)</u> shall be deemed a breach of this <u>Section 16(f)(ii))</u>, and the Board shall not permit the Company to take, any of the following actions without first obtaining the approval of the Founder Managers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. use the names and likenesses of Adam Levine, Behati Prinsloo
and Jeffrey Azoff (collectively, the " <u>Founders</u> ") or any of the Founders' Immediate Family or Affiliates, other
than uses reasonably approved by the Founders consistent with past practice of the Company and the License Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. engage any celebrity, talent or other key influencer to endorse
the products developed, marketed or sold by the Company or be "face of" such products <u>(provided</u>, <u>however</u>, that
the Founder Managers' consent shall not be required if the Company engages any talent to endorse such products if the aggregate
consideration paid by the Company for such endorsement is less than $5,000; <u>provided</u>, <u>further</u>, the consent of the Founder
Managers with respect this <u>clause (2)</u>, shall not be unreasonably withheld, conditioned or delayed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. form a Subsidiary, other than a wholly-owned Subsidiary of the
Company; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. engage in, enter into, amend, terminate or waive any rights
under, any AMASS Affiliate Transaction other than (x) entering into any transaction, agreement or arrangement that is in the ordinary
course of business and on arm's-length terms and conditions, and (y) pursuant to the terms of any of the following: the Management
Services Agreement or the Line of Credit Agreement ((x) and (y), the " <u>Permitted AMASS Affiliate Transactions</u> "); <u>provided</u>,
however, that the AMASS Member shall provide prompt notice to the Founder Managers of any material Permitted AMASS Affiliate
Transaction, and the terms and conditions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything in this Agreement to the contrary, the Founder Managers (without any action of the Board) shall have the right, without the approval of any other Manager or Member, to direct and control any (i) amendments to, consents of or waivers by the Company and (ii) actions on behalf of the Company in the event of breach, or threatened breach, by AMASS thereunder arising under any AMASS Affiliate Transaction (including any Permitted AMASS Affiliate Transaction).

&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>AMASS Approvals</u>. Notwithstanding anything in this Agreement to the contrary, the AMASS Managers (without any action of the Board) shall have the right, without the approval of any other Manager or Member, to direct and control any (i) amendments to, consents of or waivers by the Company and (ii) actions on behalf of the Company in the event of any breach, or threatened breach, by the applicable Founder thereunder arising under any Founder Affiliate Transaction.

&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>Authorization to Control Bank Accounts</u>. For so long as the Management Services Agreement remains in effect in accordance with its terms, the AMASS Managers exclusively retain decision making authority with respect to the Company's bank accounts, which includes making deposits and withdrawals, initiating and approving transactions, signing checks and other instruments and communicating with the bank on behalf of the Company. The Founder Managers shall be granted read only access to the Company's bank accounts, which includes accessing account information and bank statements.

&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>Action by Written Consent</u>. Any action required or permitted to be taken by the Board, either at a meeting or otherwise, may be taken in writing (including by electronic transmission), without a meeting, if the Managers approve by affirmative majority vote, which shall include the affirmative vote of at least one (1) AMASS Manager and one (1) Founder Manager, such action in writing; <u>provided</u>, that a copy of any such executed writing or writings shall be maintained in the books and records of the Company. Such consent shall have the same force and effect as a vote at a meeting, and the execution of such consent shall constitute attendance or presence in person at a meeting of the Board.

&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>Telephonic or Video Meetings</u>. Managers may participate in a meeting of the Board by means of a conference telephone, video or similar communications equipment through which all Persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting, except where a Person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. Any action approved by the Managers at a telephonic or video meeting of the Board shall be effective on the written consent of no less than the minimum number of Managers which would be necessary to authorize such action at a meeting of the Board. Any telephonic or video meeting of the Board may be recorded by any electronic device with the consent of all Managers present at such meeting.

&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>No Compensation</u>. The Managers shall not receive compensation for their service as Managers.

&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>Waiver of Notice</u>. Attendance by a Manager at a meeting of the Board shall constitute a waiver of notice of that meeting, except (i) when the Manager objects, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened and (ii) that attendance at a meeting is not a waiver of any right to object to the consideration of matters not included in the notice of the meeting if that objection is expressly made at the meeting.

&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) <u>Budget</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Approved Budgets</u>. Within 60 Business Days from the Effective Date, the AMASS Member shall prepare and submit to the Board a proposed initial budget for the Board's consideration, amendment, and approval. Beginning with the Fiscal Year ending December 31, 2025, and for each subsequent Fiscal Year, not later than November 1st (or later if mutually agreed) prior to the beginning of such Fiscal Year, the AMASS Member shall prepare and submit to the Board a proposed operating budget for such Fiscal Year for the Board's consideration, amendment, and approval. Any budget approved by the Board for a Fiscal Year shall be the "<u>Annual Budget</u>". The Company shall be operated in accordance with the Annual Budget, as may be amended by the Board as needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Funding</u>. The Members agree that the Company shall use best efforts to fund its ongoing operations, business expansion and acquisitions from cash from operations and borrowings, external financing/fundraising or credit, and no Member shall be required to make a loan, or otherwise advance any funds, to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Officers</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>Appointment</u>. Subject to <u>Section 16,</u> the Board may, from time to time as it deems advisable, select natural persons who are employees or agents of the Company and designate them as officers of the Company (the "<u>Officers</u>") and assign titles (including Chief Executive Officer, President, Vice President, Secretary, and Treasurer) to any such person. Unless the Board decides otherwise, if the title is one commonly used for officers of a business corporation formed under the Delaware General Corporation Law, the assignment of such title shall constitute the delegation to such person of the authorities and duties that are normally associated with that office. Any delegation pursuant to this Section may be revoked at any time by the Board. An Officer may be removed with or without cause by the Board. Nothing contained herein shall preclude any Officer from serving the Company, any Member or any Affiliate thereof in any other capacity and receiving proper compensation therefor.

&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>Officers as Agents</u>. The Officers, to the extent of their powers set forth in this Agreement or otherwise vested in them by the Board, not inconsistent with this Agreement, are agents of the Company for the purpose of the Company Business, and the actions of the Officers taken in accordance with such powers shall bind the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Waiver of Fiduciary Duties</u>. This Agreement is not intended to, and does not, create or impose any implied duty (including any fiduciary duty and, for purposes of clarity, any prohibition on usurping opportunities of the Company) otherwise existing at law or in equity on the Members, or any Affiliate, officer, director, employee or agent of any of the foregoing (each of the foregoing, a "<u>Responsible Party</u>"). To the fullest extent permitted by applicable law, and notwithstanding any duty otherwise existing at law or in equity, the Company, the Members and any other person or entity that is a party to or is otherwise bound by this Agreement (including (a) the Company in its capacity as a debtor or debtor in possession in a bankruptcy case commenced under 11 U.S.C. (a "<u>Bankruptcy Case</u>"), (b) any successor to the Company in a Bankruptcy Case or otherwise, including a trustee, a litigation trust or estate representative, including a representative under 11 U.S.C. section 1123(a)(5), and (c) any creditor or committee of creditors or equity holders seeking or obtaining standing to assert claims of the estate in a Bankruptcy Case) (each of the foregoing, a "<u>Bound Party</u>") hereby expressly waives any and all duties (including all fiduciary duties and, for purposes of clarity, any prohibition on usurping opportunities of the Company), that absent such waiver, may be implied at law or in equity or otherwise owed to a Bound Party, and in doing so, recognizes, acknowledges and agrees that the duties and obligations of the Responsible Parties are only as expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Noncompete; Other Business Opportunities</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) Each Member acknowledges and recognizes the highly competitive nature of the business of the Company. Each Member agrees that (i) the covenants contained in this <u>Section 19</u> are reasonable under the circumstances and are necessary to protect the goodwill of the Company, (ii) each Member, on the one hand, and the Company, on the other hand, intend for the covenants contained herein to constitute a valid and enforceable agreement under Law and (iii) each Member will not contest the validity or enforceability of this <u>Section 19</u>. The term of the Restricted Period was determined by the Company and each Member to be reasonable based on the nature of the current and prospective businesses of the Company. Each Member acknowledges that (x) it has consulted with legal counsel of its choosing, and (y) based upon such counsel's advice, the covenants contained herein constitute a valid and enforceable agreement under Section 16602.5 of the California Business and Professional Code. In light of the foregoing, and subject to the other terms of this <u>Section 19</u>, each Member, accordingly agrees that at any time from the Effective Date through the first anniversary after such Member and its Permitted Transferees no longer hold any direct or indirect Membership Interest (such period, the "<u>Restricted Period</u>", such Member and its Permitted Transferees will not, directly or indirectly (including through any Affiliate of such Member or its Permitted Transferees), whether in any of the counties of the State of California, or in any state or county in the United States or any other foreign country or jurisdiction in which the Company and its Subsidiaries do business, do, or directly or indirectly aid any Person to do, any of the following, without the prior written consent of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) engage in the production, distribution, sale or marketing of a Competitive Business (as hereinafter defined); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have any interest or involvement in (whether as agent, employee, consultant, advisor, creditor, lender, proprietor, partner, stockholder, officer, director, member, manager or other type of principal), participate, assist or render any services or give advice to, whether for compensation or not, any Person, other than the Company and its Subsidiaries, which is engaged in or as a result will become engaged in a Competitive Business.

For the purposes of this <u>Section 19(a)</u>, "Competitive Business" shall mean, for so long as any Founder Member holds any Units, premium tequila.

&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) If, at the time of enforcement of any provision of this <u>Section 19</u>, an arbitrator or court of competent jurisdiction holds that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by Law.

&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) Except as set forth in <u>Section 19(a)</u>: (i) any Responsible Party may engage in or possess an interest in other business opportunities or ventures (unconnected with the Company) of every kind and description, independently or with others, including businesses that may compete with the Company or any Bound Party; (ii) no Responsible Party shall be required to present any such business opportunity or venture to the Company, even if the opportunity is of the character that, if presented to the Company, could be taken by it; and (iii) none of the Company or any person or entity affiliated with the Company shall have any rights in or to such business opportunities or ventures or the income or profits derived therefrom by virtue of this Agreement, notwithstanding any duty otherwise existing at law or in equity. The provisions of this <u>Section 19(c)</u> shall apply to the Responsible Parties solely in their capacity as Member of the Company or Affiliate, officer, director, employee or agent of the Members and shall not be deemed to modify any contract or arrangement, including <u>Section 19(a)</u> and any other non-compete provisions, otherwise agreed to by the Company and such Responsible Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Exculpation and Indemnification</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) None of the Managers, Members, any Affiliate, stockholder, officer, director, employee or agent of a Member, Tax Representative, or Designated Individual (collectively, the "<u>Covered Persons</u>") shall be liable to the Company, a Member, or any other person or entity who is a party to or is otherwise bound by this Agreement or any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person's intentional fraud or intentional malfeasance.

&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) To the fullest extent permitted by applicable Law, a Covered Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Covered Person by reason of such Covered Person's gross negligence or willful misconduct with respect to such acts or omissions; <u>provided</u>, <u>however</u>, that any indemnity under this <u>Section 20</u> shall be provided out of and to the extent of Company assets only, and each Member shall have no personal liability on account thereof.

&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) To the fullest extent permitted by applicable Law, expenses (including reasonable legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in this <u>Section 20</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;(d) A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by the person or entity as to matters the Covered Person reasonably believes are within such other person or entity's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities or any other facts pertinent to the existence and amount of assets from which distributions to the Members might properly be paid.

&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) The provisions of this Agreement, to the extent that they restrict or eliminate the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the Members to replace such other duties and liabilities of such Covered Person.

&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) The foregoing provisions of this <u>Section 20</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Restrictions on Transfer</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>General</u>. Except as otherwise set forth in this Agreement, the Units shall not be Transferred, and the Company shall not recognize any such Transfer, directly or indirectly (including through the transfer of capital stock (or equivalent ownership interests) of any Person that holds, or controls any Person that holds, any Units), (i) other than any Transfer of all or a portion of a Member's Units to a Permitted Transferee (such transfer, a "<u>Permitted Transfer</u>") or (ii) unless otherwise approved by the unanimous vote of the Board 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;(b) <u>Right of First Refusal</u>. If, at any time any Member desires to effect a Transfer of all or any portion of its Units pursuant to <u>Section 2l(a)(ii)</u>, such Transfer of a Member's Units (other than a Permitted Transfer) shall be subject to a right of first refusal in favor of (x) the Company first, (y) the AMASS Member second, and (z) simultaneously each of the other Class A Common Members, third (the "<u>Non-Selling Members</u>"). Unless waived by the Board, including the affirmative vote of one (1) AMASS Manager and one (1) Founder Manager, in its sole discretion for and on behalf of the Company, the following procedures shall apply to such requested Transfer (with all decisions of the Company described below being made by the Board):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Notice</u>. Such transferring Member (the "<u>Transferring Member</u>") shall send a written notice to the attention of the Board (at the Company's notice address), the AMASS Member and each Non-Selling Member indicating the number of Units held by the Transferring Member that it desires to Transfer (the "<u>Offered Units</u>"), the price at which the Transferring Member proposes to make such Transfer (the "<u>Offer Price</u>"), the other material terms of the Transfer, the identity, if known, of the proposed Transferee or Transferees, and if a transfer agreement has been prepared, a copy of such document (the "<u>External Sale Notice</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Company, AMASS Member and Non-Selling Member Purchase Right</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Upon receipt of the External Sale Notice, the Company will have an irrevocable nontransferable option to purchase any or all of the Offered Units at the Offer Price. The Company, acting at the direction of the Board, shall, within fifteen (15) days from receipt of the External Sale Notice ("<u>Company Notice Due Date</u>"), indicate whether or not it has accepted by sending irrevocable notice of any such acceptance to the Transferring Member, the AMASS Member and the Non-Selling Members indicating the number of Offered Units it intends to purchase (such notice, a "<u>Company Transfer Notice</u>"). If the Company fails to give notice to the Transferring Member, the AMASS Member and the Non-Selling Members pursuant to this <u>Section 21(b)</u> on or before the Company Notice Due Date, the Company shall be deemed to have elected not to purchase any of the Offered Units and to have delivered notice of such decision to the Transferring Member, the AMASS Member and the Non-Selling Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The AMASS Member will have an irrevocable nontransferable option to purchase a number of the Offered Units that the Company has elected not to purchase (the "<u>AMASS Secondary Offer</u>"). The AMASS Member shall, within ten (10) days following delivery of the Company Transfer Notice or, if no Company Transfer Notice is delivered, the Company Notice Due Date (the "<u>AMASS Notice Due Date</u>"), indicate whether or not it has accepted the AMASS Secondary Offer by sending irrevocable notice of any such acceptance to the Transferring Member and the Company indicating the number of Offered Units the AMASS member desires to purchase (such notice, the "<u>AMASS Notice</u>"). If the AMASS Member fails to give notice to the Transferring Member pursuant to this <u>Section 21(b)(ii)(B)</u> on or before the AMASS Notice Due Date, the AMASS Member shall be deemed to have elected not to purchase any of the Offered Units and to have delivered notice of such decision to the Transferring Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Non-Selling Member will have an irrevocable nontransferable option to purchase a number of the Offered Units that the Company and the AMASS Member have elected not to purchase (the "<u>Available Offered Units</u>") equal to such Non-Selling Member's Percentage Interest *multiplied by* the number of Offered Units not purchased by the Company or the AMASS Member (such Member's, "<u>ROFR Portion</u>") at the Offer Price and otherwise on the terms and conditions described in the External Sale Notice (the "<u>Member Offer</u>"). Each Non-Selling Member shall, within ten (10) days following delivery of the AMASS Notice or, if no AMASS Notice is delivered, the AMASS Notice Due Date (the "<u>Member Notice Due Date</u>"), indicate whether or not they have accepted the Member Offer by sending irrevocable notice of any such acceptance to the Transferring Member and the Company indicating the number of Available Offered Units such Non-Selling Member desires to purchase (any such Member that delivers such a notice, an "<u>Accepting ROFR Recipient</u>") plus, only if such Non-Selling Member has elected to purchase such Member's full ROFR Portion, the maximum number of Available Offered Units such Non-Selling Member would desire to purchase in the event that one (1) or more Non-Selling Members declines or elects to purchase a lesser number of Available Offered Units than such Member is entitled to purchase hereunder. The Accepting ROFR Recipients shall then, to the extent that each of them has accepted the Member Offer, be obligated to purchase such number of Offered Units on the terms and conditions set forth in the External Sale Notice as soon as reasonably practicable, and in no event later than ten (10) days following the Member Notice Due Date or, if applicable, the date of delivery of the Company's notice to such Accepting ROFR Recipient pursuant to <u>Section 21(b)(ii)(A)</u> (with such period being automatically extended as necessary to obtain all required approvals from any Governmental Authority under any applicable Law) (the "<u>ROFR Closing Deadline</u>"). If a Non-Selling Member fails to (x) give notice to the Transferring Member and the Company pursuant to this <u>Section 21(b)(ii)(C)</u> on or before the Member Notice Due Date, or (y) consummate the purchase of the applicable number of Offered Units prior to the ROFR Closing Deadline, such Non-Selling Member shall be deemed to have elected not to purchase any of the Offered Units and to have delivered notice of such decision to the Transferring Member and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Overallotment</u>. Each Accepting ROFR Recipients shall have a right of overallotment such that if any other Non-Selling Member fails or declines to exercise its right hereunder to purchase its ROFR Portion of Available Offered Units (a "<u>Non- ROFR Member</u>"), such Accepting ROFR Recipients may purchase all or any part of such Units by giving irrevocable written notice to the Transferring Member and the Company within five days after the date that the Company provides written notice of the amount of Available Offered Units as to which such Non-ROFR Members have failed to exercise their rights hereunder; <u>provided</u>, <u>however</u>, that in the event there are two (2) or more such Accepting ROFR Recipient that choose to exercise the last-mentioned option for a total number of Available Offered Units in excess of the number available, the remaining Units available for purchase under this <u>Section 21 (b)(ii)(C)(D)</u> shall be allocated between or among such Accepting ROFR Recipients pro rata based on the number of Available Offered Units such Accepting ROFR Recipients elected to purchase pursuant to this <u>Section 21</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) <u>Transfer Right</u>. The time and date of the closing of the purchase and sale of the Offered Units to be purchased by the Company, the AMASS Member (if applicable) and the Accepting ROFR Recipients, as applicable, pursuant to this <u>Section 21</u> shall be fixed by the Company, <u>provided</u> that such closing date shall be within one hundred (100) days after the date of the External Sale Notice. If all of the Offered Units are not purchased by the Company, the AMASS Member and the Non-Selling Members within one hundred (100) days after the date of the External Sale Notice or the Company, the AMASS Member and Non-Selling Members waive their rights to purchase the Offered Units (the date on which the Company's and the Non-Selling Members' purchase rights expire or are waived, the "<u>Co-Sale Trigger Date</u>"), then during the ninety (90) days following the Co-Sale Trigger Date, the Transferring Member may agree to sell all of the Offered Units, subject to <u>Section 21(d)</u> to the extent applicable, on terms that are economically no more favorable to such purchaser than were stated in such Member's External Sale Notice. If the applicable Transferring Member does not consummate a sale to a Transferee during the ninety (90) days following the Co-Sale Trigger Date (subject to reasonable extension by up to sixty (60) additional days in the event the delay is caused by the need to obtain regulatory approval of the sale), then the provisions of this <u>Section 21</u> shall again apply, and such Transferring Member shall not Transfer or offer to Transfer such Units without again complying with this <u>Section 21</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;(c) <u>Right of Co-Sale and Transfer by a Member</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Co-Sale</u>. If any Member (the "<u>Co-Sale Transferor</u>") proposes to Transfer Units equal to or exceeding five percent (5%) of the then-issued and outstanding securities of the Company to a Transferee or Transferees (other than a Permitted Transferee), in a single transaction or series of related transactions pursuant to <u>Section 21(a)(ii)</u>, in accordance with <u>Section 21(b),</u> the Co-Sale Transferor must deliver to the Company notice of such proposed Transfer (the "<u>Transfer Notice</u>") within thirty (30) days after the Co-Sale Trigger Date and at least twenty (20) days prior to any such Transfer, in which case, each Member other than the Co-Sale Transferor and Incentive Unit Holders (the "<u>Co-Sale Participants</u>") shall have the right to participate in the proposed Transfer in the manner set forth in this <u>Section 21(c)</u> ("<u>Co-Sale Right</u>"). Within five (5) days after receipt of the Transfer Notice, the Company shall forward to the Co-Sale Participants the Transfer Notice. The Transfer Notice must state (i) the name of the proposed Transferee, (ii) the number of Offered Units, (iii) the proposed purchase price therefor, including a description of any non-cash consideration sufficiently detailed to permit the determination of the Fair Market Value thereof (the "<u>Proposed Price</u>"), and (iv) the other material terms and conditions of the proposed Transfer, including the proposed Transfer date. In the event any portion of the purchase price per Unit is to be paid by the proposed Transferee in non-cash consideration, the value of any such non-cash consideration per Unit shall be the Fair Market Value thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Notice</u>. Each Co-Sale Participant that desires to exercise its Co-Sale Right must deliver to the Company and the Co-Sale Transferor notice within the twenty (20)-day period after the delivery of the Transfer Notice (the "<u>Co-Sale Option Period</u>"), which notice shall state that such Co-Sale Participant elects to exercise its Co-Sale Right under this <u>Section 21(c)</u> and shall state the maximum number of Units sought to be Transferred by such Co-Sale Participant as permitted by <u>Section 21(c)(iii)</u>, which shall be no more than one hundred percent (100%) of such Co-Sale Participant's Maximum Co-Sale Units. Failure by a Co-Sale Participant to deliver to the Company the aforementioned Co-Sale Transferor notice prior to the expiration of the Co-Sale Option Period shall be deemed an election of such Co-Sale Participant not to exercise its Co-Sale Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Units Included</u>. Each Co-Sale Participant shall be entitled to Transfer to the proposed Transferee identified in the Transfer Notice up to the number of such Co-Sale Participant's Units equal to: (i) the number of Offered Units <u>multiplied by</u> (ii) a fraction equal to (A) the aggregate number of Class A Common Units held by such Co-Sale Participant <u>divided by</u> (B) the aggregate number of issued and outstanding Class A Common Units (with respect to each Co-Sale Participant, its "<u>Maximum Co-Sale Units</u>"); <u>provided, however</u>, that the proposed Transferee shall not be required to pay more than the Proposed Price for the Offered Units of the Co-Sale Transferor and each Co-Sale Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Co-Sale Closing Deliverables</u>. Each Co-Sale Participant, in exercising its Co-Sale Right, shall participate in the Transfer (the "<u>Co-Sale Transaction</u>") and agrees that the terms and conditions of any Co-Sale Transaction will be memorialized in, and governed by, a written purchase and sale agreement with the prospective Transferee (the "<u>Purchase and Sale Agreement</u>") with customary terms and provisions for such a transaction, and the Co-Sale Participants further covenant and agree to enter into such Purchase and Sale Agreement as a condition precedent to any sale or other transfer in accordance with this <u>Section 21(c)</u>; <u>provided</u>, <u>however</u>, that a Member will not be required to enter into such Purchase and Sale Agreement as a condition precedent to any sale or other transfer in accordance with this <u>Section 21(c)</u> unless such transaction complies with the Transaction Conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Deliveries</u>. Each Unit will be recorded by the Company as Transferred to the prospective Transferee against payment therefor in consummation of the Co-Sale Transaction pursuant to the terms and conditions specified in the Transfer Notice, and the prospective Transferee shall concurrently therewith remit or direct payment to each such Co-Sale Participant the portion of the aggregate consideration to which each such Co-Sale Participant is entitled by reason of its participation in such sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Additional Compliance</u>. If any proposed Co-Sale Transaction is not consummated within ninety (90) days after receipt of the applicable Transfer Notice by the Company, the Co-Sale Transferor may not Transfer any Units pursuant to this <u>Section 21(c)</u> unless it first complies in full with each provision of <u>Section 21(b)</u> and this <u>Section 21(c)</u>. The exercise, or election not to exercise, any right by any Member hereunder shall not adversely affect its right to participate in any other Transfer of Units subject to this <u>Section 21(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;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Restrictions Cumulative</u>. The restrictions on Transfer imposed by this <u>Section 21(c)</u> on any Member shall be in addition to, and not in lieu of, the restrictions on Transfer imposed by the other sections of this <u>Section 21</u> to the extent the same are otherwise applicable to such Member.

&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>Drag Sale</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Trigger</u>. If at any time both (A) the Board, including the affirmative vote of one (1) AMASS Manager and one (1) Founder Manager, and (B) a Member or Members collectively holding at least a fifty percent (50%) of the issued and outstanding equity interests of the Company (the "<u>Dragging Members</u>") propose to sell or otherwise dispose of all, but not less than all, of such Member's or Members' equity securities of the Company to a Third Party (such sale, a "<u>Drag Transaction</u>"), then if requested in writing by the Dragging Members (the "<u>Drag Request</u>") each other Member (together with its Permitted Transferees, a "<u>Dragged Member</u>") shall be required to sell all, but not less than all, of such Member's Units in such Drag Transaction in accordance with this <u>Section 21(d)</u>. The Drag Request shall set forth the proposed material terms and conditions of the Drag Transaction, including the proposed purchase price per Unit. For the avoidance of doubt, the Board and Member consent as described in <u>Section 21(d)(i)(A)</u> and <u>(B)</u> shall not be required to initiate a Sale Process as described in <u>Section 23</u>, and in connection with such Sale Process, the Founder Members shall be deemed to be the Dragging Members and such Capital Transaction shall be deemed to be a Drag Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Actions to be Taken</u>. With respect to a Drag Transaction described in <u>Section 21(d)</u>, each Member and the Company hereby agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if the Drag Transaction requires Member approval, with respect to all Units that such Dragged Member owns or over which such Dragged Member otherwise exercises voting power, each Dragged Member shall vote (in person, by proxy or by action by written consent, as applicable) all Units in favor of, and adopt, such Drag Transaction (together with any related amendment to this Agreement required in order to implement such Drag Transaction) and shall vote in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Drag Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to the terms of <u>Section 21(d)(i)</u>, each Member shall sell, at the same price and on the same terms and conditions in a sale subject to this <u>Section 21</u>, the same proportion of the total number of Units being sold as (i) the number of Units then owned by such Members to (ii) the total number of Units then-owned by all Members (in each case, on a fully-diluted basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Dragged Member shall execute and deliver all related documentation and take such other action in support of the Drag Transaction as shall reasonably be requested by the Company in order to carry out the terms and provisions of this <u>Section 21(d)</u>, including executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, a limited power-of-attorney authorizing the Company to take all actions necessary to Transfer the Units in the Drag Transaction, and any similar or related documents, certificates or instruments; <u>provided</u>, <u>however</u>, that in the event a Dragged Member fails to deliver such documents, the Company shall cause the books and records of the Company to show that such Units are bound by the provisions of this <u>Section 21(d)</u> and that the Transfer of such Units to the purchaser in such Drag Transaction may be effected without such Dragged Member's 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;&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) no Member shall deposit, and each Member shall cause its Affiliates not to deposit, except as provided in this Agreement, any Units owned by such Member or Affiliate in a voting trust or subject any Units to any arrangement or agreement with respect to the voting of such Units, unless specifically requested to do so by the acquirer in connection with the Capital Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) each Dragged Member agrees to refrain from exercising and affirmatively waive any dissenters' rights or rights of appraisal under applicable Law at any time with respect to such Drag Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the consideration to be paid in exchange for the Units pursuant to this <u>Section 21(d)</u> in a Drag Transaction includes any securities and due receipt thereof by any Dragged Member would require under applicable Law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities or (y) the provision to any Member of any information other than such information as a prudent issuer would generally furnish in an offering made solely to "accredited investors" as defined in Regulation D under the Securities Act, the Company may cause to be paid to any such Member in lieu thereof, against surrender of the Units that would have otherwise been sold by such Member, an amount in cash equal to the Fair Market Value of the securities that such Dragged Member would otherwise receive as of the date of the issuance of such securities in exchange for the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the event that the Company (in the discretion of the Board, including the affirmative vote of one (1) AMASS Manager and one (1) Founder Manager), in connection with a Drag Transaction, appoints a Member representative (the "<u>Member Representative</u>") with respect to matters affecting the Dragged Members under the applicable definitive transaction agreements following consummation of such Drag Transaction, each Member agrees (1) to consent to (x) the appointment of such Member Representative, (y) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations with respect to such Member Representative, and (z) the payment of such Dragged Member's pro rata portion (from the applicable escrow, expense or similar fund or otherwise based on the portion of the aggregate consideration received by such Member) of any and all reasonable fees and expenses to such Member Representative in connection with such Member Representative's services and duties in connection with such Capital Transaction and its related service as the representative of the Dragged Members, and (2) not to assert any claim or commence any suit against the Member Representative or any other Member with respect to any action or inaction taken or failed to be taken by the Member Representative in connection with its service as the Member Representative, absent fraud or willful misconduct; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) each Member hereby grants to the Company an irrevocable proxy coupled with an interest to vote (including in any action by written consent) such Member's Units in accordance with such Member's agreements in this <u>Section 21(d)</u>, subject to <u>Section 21(d)(iii)</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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Exceptions</u>. Notwithstanding the foregoing, a Member will not be required to comply with <u>Section 21(d)(ii)</u> in connection with a proposed Drag Transaction unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) such Drag Transaction complies with the Transaction Conditions; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) subject to <u>Section 21(d)(ii)(F)</u>, upon the consummation of a Drag Transaction each Dragged Member will receive the same form of consideration for its Units as is received by other Dragged Members in respect of Units of like class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Power of Attorney</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) By signing this Agreement, and subject to <u>Section 21(c)(iii)</u>, each Member hereby makes, constitutes and appoints the Board, and any Officer so authorized by the Board, with full power of substitution and resubstitution, his, her or its true and lawful agent or agents and attorney or attorneys-in-fact for him, her or it and in his, hers or its name, place and stead, to sign, execute, certify, acknowledge, file and record, solely in connection with any Drag Transaction, (A) the Certificate, (B) all instruments amending, restating or canceling the Certificate, as the same may hereafter be amended or restated, that may be appropriate, and (C) such other agreements, instruments, elections or documents (including any written consents of Members) as may be necessary or advisable to Transfer the Units held by any Member or that may otherwise be required of the Company or of the Members by the Laws of Delaware or 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;&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) The power of attorney granted pursuant to this <u>Section 21(d)(iv)</u>, is a special power of attorney coupled with an interest and is irrevocable, may be exercised by such attorney-in-fact by listing all of the Members executing any agreement, certificate, instrument or document with the single signature of such attorney-in-fact acting as attorney-in-fact for all of them, and shall survive the assignment by a Member of its Membership Interest, except that where the assignee thereof is admitted as a Member, the power of attorney shall survive such assignment as to the assignor Member for the sole purpose of enabling such attorney-in-fact to execute, acknowledge and file any such agreement, certificate, instrument or document as is necessary to effect such admission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Call Option</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>Call Generally</u>. Notwithstanding anything to the contrary in <u>Section 21(a)</u>, for a period of ninety (90) days following (i) September 19, 2029 (the "<u>Initial Call Date</u>"), and (ii) each anniversary of the Initial Call Date (such 90-day period, the "<u>Call Period</u>"), the AMASS Member shall have the right, but not the obligation, to require each other Member (each, a "<u>Call Member</u>") to sell all, but not less than all, of each Call Member's Class A Common Units and vested Incentive Units, as applicable, to the AMASS Member (the "<u>Call</u>" and such Units subject to the Call, "<u>Call Units</u>") and if such Call is exercised, the AMASS Member shall purchase from the Call Members all, but not less than all, of the Units then held by the Call Members in accordance with the terms of this <u>Section 22</u> (the "<u>Call Option</u>"). For the avoidance of doubt, the AMASS Member's right to exercise the Call shall not be subject to the Transfer restrictions set forth in <u>Section 21(a)</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;(b) <u>Exercise</u>. To exercise the Call the AMASS Member must give written notice to the Company (the "<u>Call Exercise Notice</u>") within the Call Period. The date on which the Call Exercise Notice is given is herein referred to as the "<u>Call Exercise Date</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;(c) <u>Determination of Call Option Value</u>. As promptly as practicable after the Call Exercise Date, the Founder Members, on the one hand, and the AMASS Member, on the other hand, shall (x) negotiate in good faith, for a period of not less than fifteen (15) Business Days (the "<u>Call Purchase Price Determination Period</u>"), with the objective of reaching mutual agreement on the purchase price for the Call Units based on a mutually agreed upon multiple of brand net margin (the "<u>Call Purchase Price</u>"). If the Founder Members and the AMASS Member cannot mutually agree on Call Purchase Price within the Call Purchase Price Determination Period, the Founder Members and the AMASS Member shall mutually agree upon and engage an Appraisal Firm to determine the Call Purchase Price, and such determination shall be final and binding on the AMASS Member and the Call Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Sale Process</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>Expiration of Call Period</u>. If the AMASS Member (x) delivers notice to the Founder Members of its decision not to exercise the Call Option, or (y) fails to give notice to the Founder Members of its election to exercise the Call Option pursuant to <u>Section 22</u> prior to the expiration of the first Call Period following the Initial Call Date, the AMASS Member shall be deemed to have elected not to exercise the Call Option and to have delivered notice of such decision to the Founder Members, and the Founder Members shall have the right, but not the obligation, to initiate a Capital Transaction with a Third Party ("<u>Acquiror</u>"). Notwithstanding anything in this Agreement to the contrary, the Founder Members' right to initiate a Capital Transaction pursuant to this <u>Section 23</u> shall not be subject to the Transfer restrictions set forth in <u>Section 21(a)</u>. At any time thereafter, the Founder Members may notify the Board and the other Members in writing of such desire to effect a Capital Transaction, in which event the Founder Members shall constitute Dragging Members pursuant to <u>Section 21(d)</u>, and any Capital Transaction resulting from such Sale Process shall constitute a Drag Transaction to which <u>Section 21(d)</u> applies. Promptly following receipt of such notice, and subject to <u>Section 23(b),</u> the Founder Members shall cause the Company to engage an investment bank (the "<u>Financial Advisor</u>") and a law firm (the "<u>Deal Counsel</u>") reasonably satisfactory to the AMASS Member (which may be the Company's existing investment bank and law firm) to assist with Capital Transaction. The Board, at the reasonable direction of the Founder Member, shall cause the Company, on the advice of the Deal Counsel and the Financial Advisor, to take such action as may be reasonably necessary in connection with such Sale Process and any proposed Capital Transaction resulting therefrom, to effect such Capital Transaction. If so requested by the Founder Members in connection with effecting such Capital Transaction, the Board shall, at the reasonable direction of the Founder Members, cause the Company to conduct a commercially reasonable sale process (a "<u>Sale Process</u>") which Sale Process may include, if approved by the Founder Members in such Founder Members' sole discretion, an auction to sell the business of the Company (whether through a sale of Units or all or substantially all of the assets of the Company). The Company shall cause its management, together with the Financial Advisor and Deal Counsel, to deliver regular updates to the Board regarding material developments in the Sale Process and summarizing the status of the negotiation of the terms and conditions of the Capital Transaction. The Company, the Board and each Member shall, and each Member shall cause each of its Affiliates and Representatives to, use its or his commercially reasonable efforts to conduct such Sale Process and complete such Capital Transaction as promptly as reasonably practicable, including, to the extent applicable, the identification of potential bidders, the preparation of an information memorandum regarding the Company (including financial statements and financial projections relating thereto), the preparation of bid procedures and a bid procedures letter to be distributed to potential bidders, the assembly of a data room, the making of management presentations, and the drafting, negotiation and execution of transaction documents (including the schedules, exhibits, appendices, annexes and ancillary documents thereto) and the approval of such Capital Transaction by the Board and, if applicable, the Members. The Founder Members with oversight from the Board, shall have the right to direct and control such Sale Process, including the selection of the ultimate buyer and negotiations of the definitive transaction agreements for such Capital Transaction. In connection with any such Capital Transaction, the Management Services Agreement may be terminated for convenience by such Acquiror, and the AMASS Member and its Affiliates, as reasonably requested by the Acquiror, shall be obligated to provide the Company and Acquiror with reasonable and customary termination transition 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;(b) <u>Post-Call Period and Right of First Offer</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, at any time following the expiration of the Call Period, the Company desires to initiate a Capital Transaction of the Company, the Company shall first deliver to the AMASS Member notice (the "<u>ROFO Notice</u>") stating the Company's desire to effect such Capital Transaction, the price per Unit for each class of Unit the Company proposes to be paid in connection with such Capital Transaction and the other material terms and conditions of the proposed Capital Transaction. Within ninety (90) days following receipt of the ROFO Notice, the AMASS Member shall have the right, but not the obligation, to provide the Company with a written offer (without any financing or other similar contingencies) ("<u>ROFO Offer</u>") to purchase one hundred percent (100%) of the other issued and outstanding Units of the Company that are not held by the AMASS Member (the "<u>ROFO Offered Units</u>"). The ROFO Offer shall include the material terms and conditions, including the aggregate cash purchase price (the "<u>ROFO Interest Price</u>"), upon which the AMASS Member is willing to acquire all of the other issued and outstanding Units of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the AMASS Member delivers a ROFO Offer to the Company within such sixty (60) day period, the Company shall then have a period of thirty (30) days following receipt of the ROFO Offer to deliver written notice (the "<u>ROFO Acceptance Notice</u>") to the AMASS Member accepting the ROFO Offer and the sale of the ROFO Offered Units pursuant to the terms set forth in the ROFO Offer. Within a period of sixty (60) days following the delivery of the ROFO Acceptance Notice, the AMASS Member shall purchase from the other Members, and the other Members shall sell to the AMASS Member, the ROFO Offered Units for the ROFO Interest Price pursuant to a customary purchase agreement for transactions of such type. Such sixty (60) day period may be extended by up to thirty (30) additional days if the Members are working in good faith to facilitate the purchase such ROFO Offered Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the AMASS Member does not deliver a ROFO Offer within such sixty (60) day period or the Company does not accept the proposed ROFO Offer, then the Company, shall have the right, for the subsequent ninety (90) day period to cause the Company to conduct a Sale Process at a price and pursuant to other terms determined by the Founder Members in their sole and absolute discretion, <u>provided</u>, however, that such price and terms are no less favorable than those set forth in the ROFO Offer <u>(provided</u>, <u>however</u>, that such ninety (90) day period may be extended as necessary to obtain any required approvals). Following the expiration of such ninety (90) day period (as and if extended pursuant to the immediately preceding proviso), the Company may not initiate a Sale Process without again first offering such Units to the AMASS Member in the manner provided pursuant to this <u>Section 23(b)</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;(c) <u>Sale Process</u>. For the avoidance of doubt, any Drag Transaction or Sale Process (including, a sale to the AMASS Member, a Third Party or otherwise) shall be negotiated and controlled on behalf of the Company by the Founder Managers in their sole and absolute discretion; <u>provided, however</u>, that if the Capital Transaction involves an Affiliate of any Manager, the terms of such Capital Transaction shall be at least as favorable as the Company and each Member would receive on an arms' length basis from an unaffiliated Third Party.

&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>Sale Duties</u>. Notwithstanding anything to the contrary in this Agreement, including <u>Section 18</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to any (A) Drag Transaction in which a Founder Members is a Dragging Member or (B) Capital Transaction or Sale Process controlled by the Founder Member(s) in accordance with this <u>Section 23</u>, such Founder Member(s) shall use good faith efforts to maximize the proceeds payable per Unit to all Members, and shall not (A) enter into any side letter, management rights letter, services agreement or other similar arrangement whereby any Founder Member receives additional proceeds in connection with such Drag Transaction, (B) take any action with the primary intent of treating any Member materially differently vis-a-vis any other Members or (C) otherwise engage in any action that results in gain or benefit to one Member at the expense of any other Member(s); 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to any Drag Transaction in which the AMASS Member is a Dragging Member, the AMASS Member shall use good faith efforts to maximize the proceeds payable per Unit, and shall not (A) enter into any side letter, management rights letter, services agreement or other similar arrangement whereby the AMASS Member receives additional proceeds in connection with such Drag Transaction, or (B) take any action with the primary intent of treating any Member materially differently vis-a-vis any other Members or (C) otherwise engage in any action that results in gain or benefit to one Member at the expense of any other Member(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Resignation</u>. Other than in connection with a Transfer of Units to a Permitted Transferee, a Member may not resign or withdraw from the Company without the prior written consent of the non-resigning or non-withdrawing Class A Common Members. If all of the Members resign or withdraw pursuant to this Section, an additional member shall be admitted to the Company, subject to <u>Section 25,</u> upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement. Such admission shall be deemed effective immediately prior to the resignation or withdrawal of the last resigning or withdrawing Member, and, immediately following such admission, such resigning or withdrawing Member shall cease to be a member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Admission of Additional Members</u>. One (1) or more additional members of the Company may be admitted to the Company with the approval of the Board and upon such terms (including with respect to participation in the management, profits, losses and distributions of the Company) as may be determined by the Board and the additional persons or entities to be admitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Books and Records</u>. At all times during the continuance of the Company, the Company shall prepare and maintain separate books of account for the Company that shall show a true and accurate record of all costs and expenses incurred, all charges made, all credits made and received and all income derived in connection with the operation of the Company Business. Any Class A Common Member shall have the right to review or audit the Company's books and records at reasonable times and after reasonable advance notice to the Company; provided; however, the Company may withhold access to books and records requested by, or to be provided to, any Member pursuant to this <u>Section 26</u>, at law or otherwise, if the Board determines in its reasonable, but sole, discretion that such Member (i) lacks a proper purpose for receiving such access or (ii) is a competitor of the Company. For the purposes of this <u>Section 26,</u> "proper purpose" shall mean a purpose reasonably related to such Person's interest as a Member. The Company shall furnish or cause to be furnished to each Member such information regarding the condition or operations, financial or otherwise, of the Company, as any Member may from time to time reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Confidential Information</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) Except as otherwise provided in this <u>Section 27</u>, each Member (i) shall, and shall cause its directors, officers, managers, employees, agents, auditors, and financial and other advisors (collectively, "<u>Representatives</u>") to, maintain in strictest confidence the terms of this Agreement and any and all information relating to the Company or the other Members that is proprietary to the Company or such other Member, as applicable, or otherwise not available to the general public, irrespective of the form of the information, including information concerning the properties, employees, finances, businesses and operations of the Company or of the other Members and all notes, analyses, compilations, studies, forecasts, interpretations or other documents prepared by a receiving Member or its Representatives that contain, reflect or are based upon, in whole or in part, the information furnished to or acquired by such Member ("<u>Confidential Information</u>"), (ii) shall not disclose, and shall cause its Representatives not to disclose, Confidential Information to any Person other than to the other Members and the Company, and (iii) shall not use, and shall cause its Representatives not to use, Confidential Information other than in connection with the business of the Company.

&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) Notwithstanding <u>Section 27(a)</u>, any Member may disclose 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent consented to by the Member(s) to whom such Confidential Information relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) for bona fide business purposes on a strict "need to know" basis to its Affiliates, its board of directors (or equivalent governing body), its Representatives and its lenders; <u>provided,</u> that in each such case, each such Person agrees to be bound by the terms of this <u>Section 27</u> or executes a confidentiality agreement to the effect set forth in this <u>Section 27</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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to a Person (A) holding or considering acquiring (whether directly or indirectly) an equity or profits interest in, or equity security of, or all or substantially all of the assets of, or merging with, such Member (or any Affiliate thereof) or (B) considering a possible purchase of such Member's Units, so long as prior to any such disclosure such other Person agrees to be bound by the terms of this <u>Section 27</u> or executes a confidentiality agreement to the effect set forth in this <u>Section 27</u>. Such disclosure may include reasonable due diligence investigation of the Company upon the request of any Member for such purpose, <u>provided,</u> that (1) such disclosure, to the extent it requires an inspection of the books of account or other business records of the Company, occurs during normal business hours of the Company and does not unreasonably interfere with the normal operations of the Company and (2) the requesting Member shall reimburse the Company for all reasonable out-of-pocket expenses incurred by the Company in connection with such investigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to the extent necessary to assert any right or defend any claim arising 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent such disclosure is required by Law or legal process (including pursuant to any listing agreement with, or the rules or regulations of, any national securities exchange or national quotation system on which any securities of such Member are listed or traded); 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;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to the extent legally compelled to do so under the terms of a subpoena, order, civil investigative demand or similar process issued by a Governmental Authority; <u>provided, however</u>, that prior to any such disclosure, such Member shall, to the extent legally permissible: (A) promptly notify the Class A Common Members of the existence, terms and circumstances surrounding such request; (B) consult with the Class A Common Members regarding the advisability of taking legally available steps to resist or narrow such disclosure; (C) furnish only that portion of the Confidential Information that, in the opinion of independent counsel for such Member, such Member is legally compelled to disclose; and (D) cooperate with the Class A Common Members (or any other Person having an interest in the Confidential Information) to obtain a protective order or other reliable assurance that confidential treatment will be accorded the 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) Any Member providing Confidential Information to any other Person in accordance with <u>Section 27</u> shall be liable to the Company and the other Members for, and shall indemnify and hold harmless the Company and the other Members from and against, any and all losses sustained or incurred by the Company and such other Members arising out of or otherwise resulting from the disclosure of such Confidential Information to such other Person or the disclosure by such other Person of Confidential Information in violation of the applicable confidentiality 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;(d) Notwithstanding <u>Section 27(b)</u>, neither the Company nor any Member shall disclose or provide any Confidential Information to any Person if, to the knowledge of the Company or such Member, such disclosure or provision is prohibited by any agreement between the Company and any Person (including any Member or Affiliate thereof and other than 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;(e) The provisions of <u>Section 27(a)</u> shall not apply to, and Confidential Information shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 information that is or has become generally available to the public other than as a result of disclosure by a Member (or any Affiliate or Representative thereof) in breach of any of the provisions of this <u>Section 27(a)</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any information that has been independently developed by a Member (or any Affiliate or Representative thereof); <u>provided</u>, that it is developed entirely from sources other than Confidential Information and otherwise without violating any of the provisions of this Agreement or any other similar agreement to which such Member (or any Affiliate or Representative thereof) is bound; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any information made available to a Member (or any Affiliate or Representative thereof) on a non-confidential basis by any Third Party who is not prohibited from disclosing such information by a legal, contractual or fiduciary obligation to the Company, another Member (or any Affiliate or Representative thereof) or any other Person.

&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) The obligations of each Member under this <u>Section 27</u> shall survive for so long as such Member remains a Member, and after such Member ceases to be a Member, notwithstanding the termination of the Company, such Member's Transfer of its Units, the withdrawal by such Member from the Company or any Person ceasing to be an Affiliate of such Member.

&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) Each Member hereby acknowledges and agrees that the breach by such Member of its covenants and obligations under this <u>Section 27</u> is likely to cause irreparable harm and significant injury to the Company which could be difficult to limit or quantify. Accordingly, such Member agrees that the Company shall have the right to seek an immediate injunction, specific performance or other equitable relief due to any such breach, without posting any bond therefor, in addition to any other remedies that may be available to the Company or the other Members at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>Dissolution</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) The Company shall dissolve and its affairs shall be wound up upon the first to occur of: (i) the unanimous approval of the Managers then serving on the Board, (ii) any time there are no Members, unless the Company is continued in accordance with the Act, or (iii) the entry of a decree of judicial dissolution of the Company under Section 18-802 of the Act.

&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 of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets of the Company in an orderly manner), and the assets or proceeds from the sale of the assets of the Company shall be applied in the order set forth in <u>Section 15(b)</u> unless otherwise required by mandatory provisions of applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>Benefits of Agreement; No Third-Party Rights</u>. The provisions of this Agreement are intended solely to benefit the Members, the Responsible Parties and Covered Persons and, to the fullest extent permitted by applicable law, shall not be construed as conferring any benefit upon any creditor of the Company (other than Covered Persons) (and no such creditor shall be a third- party beneficiary of this Agreement), and each Responsible Party shall have no duty or obligation to any creditor of the Company to make any contributions or payments to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. <u>Severability of Provisions</u>. Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future Law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. <u>Interpretation</u>. When a reference is made in this Agreement to a Section, Article, Annex or Schedule such reference shall be to a Section, Article, Annex or Schedule of this Agreement unless otherwise indicated. The headings contained in this Agreement or in any Annex or Schedule are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances require. Any capitalized terms used in any Annex or Schedule but not otherwise defined therein shall have the meaning as defined in this Agreement. All Annexes and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth herein. The word "including" and words of similar import when used in this Agreement will mean "including, without limitation," unless otherwise specified. The words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to the Agreement as a whole and not to any particular provision in this Agreement. The term "or" is not exclusive. The word "will" shall be construed to have the same meaning and effect as the word "shall." References to days mean calendar days unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement of the Members with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. <u>Governing Law</u>. This Agreement shall be governed by, and construed under, the Laws of the State of Delaware (without regard to conflict of laws principles), all rights and remedies being governed by said Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. <u>Dispute Resolution; Arbitration</u>. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof (including the determination of the scope or applicability of this agreement to arbitrate; any claims concerning the validity, interpretation, effect or violation of this Agreement; violation of any federal, state, or local Law; any tort; and any other aspect relating to this Agreement) shall be resolved as provided in this <u>Section 34</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>Informal Dispute Resolution</u>. The disputing parties initially shall attempt to resolve their dispute informally, in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the written request by a party (the date of which shall be the "<u>Dispute Date</u>"), each party shall appoint a designated representative whose task it will be to meet for the purpose of endeavoring to resolve such dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The designated representatives shall meet as often as the parties reasonably deem necessary in order to gather and furnish to the other all information with respect to the matter at issue which the parties believe to be appropriate and germane in connection with its resolution. The representatives shall discuss the problem and attempt to resolve the dispute. The specific format for the discussions shall be left to the discretion of the designated representatives. The parties will cooperate with the designated representatives in order to attempt to resolve any such dispute.

&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>Arbitration</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof (including the determination of the scope or applicability of this agreement to arbitrate), that is not resolved within 30 days after the Dispute Date shall be determined by arbitration in Los Angeles, California, or any other mutually agreeable location, before one arbitrator selected by the parties within 30 days after the commencement of the arbitration. The arbitration shall be administered by Judicial Arbitration and Mediation Services ("<u>JAMS</u>") pursuant to its Comprehensive Arbitration Rules and Procedures. In the event the parties are unable to agree upon an arbitrator, the parties agree to permit JAMS to select an arbitrator from a list of no more than six arbitrators submitted jointly by the parties. The Federal Arbitration Act shall govern the interpretation and enforcement of any arbitration proceeding. The arbitrator shall apply the Law of the State of Delaware, pursuant to <u>Section 33</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The parties agree that arbitration as provided in this <u>Section 34(b)</u> shall be the exclusive and binding remedy for any such dispute and will be used instead of any court action, which is hereby expressly waived, including for any request by a party hereto for temporary or preliminary injunctive relief (including with respect to breaches of <u>Section 27)</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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The parties agree that they will attempt, and they intend that they and the arbitrator should use all reasonable efforts in that attempt, to conclude the arbitration proceeding and issue a final, reasoned decision from the arbitrator within one hundred fifty (150) days from the date of selection of the arbitrator; <u>provided</u>, <u>however</u>, that the arbitrator shall be entitled to extend such one hundred fifty (150)-day period to the extent the arbitrator deems it necessary to adjudicate the claim. The arbitrator shall promptly deliver a reasoned decision with respect to the dispute to each of the parties, who shall promptly act in accordance therewith. Each party to such arbitration agrees that any decision of the arbitrator may only be appealed to a panel of three neutral arbitrators pursuant to the JAMS Optional Arbitration Appeal Procedure, and the decision rendered by such arbitration panel shall be final, conclusive and binding. It is specifically understood and agreed that any party may enforce any award rendered pursuant to the arbitration provisions of this <u>Section 34(b)</u> in any court of competent jurisdiction. The parties agree that the arbitrator (and the arbitration panel, if applicable) shall have authority to grant injunctive or other forms of equitable relief to any party that prevails in any such arbitration, including with respect to breaches of <u>Section 25</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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company will be responsible for paying any filing fees and costs of the arbitration proceeding itself (for example, arbitrators' fees, conference room, transcripts), but each party shall be initially responsible for its own attorneys' fees; <u>provided</u>, <u>however</u>, that the arbitrator shall have the discretion to award reasonable attorneys' fees to the prevailing party, which fees may be set by the arbitrator of such action or may be enforced in a separate action brought before an arbitrator for that purpose, and which fees shall be in addition to any other relief that may be awarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each party to this Agreement shall maintain strict confidentiality with respect to all aspects of any arbitration commenced pursuant to this Agreement and shall not disclose the fact, conduct or outcome of the arbitration to any non-parties or non-participants, except to the extent required by applicable Law or to the extent necessary to recognize, confirm or enforce the final arbitral award or decision, without the prior written consent of all parties to the arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. <u>Submission to Jurisdiction</u>. Each of the parties irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement brought by any other party or its successors or assigns that may not be arbitrated pursuant to applicable state or federal Law (a "<u>Litigable Action</u>"), shall be brought and determined in the Court of Chancery of the State of Delaware, the courts of the United States of America for the District of Delaware, and appellate courts thereof, and each of the parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such Litigable Action. Each of the parties agrees not to commence any action, suit or proceeding relating thereto except in the courts described above in Delaware, other than actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such court in Delaware as described herein. Each of the parties further agrees that notice as provided herein shall constitute sufficient service of process and the parties further waive any argument that such service is insufficient. Each of the parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, (a) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (c) that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. <u>Waivers; Amendments</u>. The terms and provisions of this Agreement may not be waived, amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except (a) with the approval of the Board, which must include the affirmative vote of at least one (1) Founder Manager, and (b) with the approval of the Members collectively holding at least fifty-one percent (51%) of the issued and outstanding Class A Common Units, pursuant an instrument in writing specifically designated as an amendment hereto; <u>provided</u>, <u>however</u>, that the prior written consent of each Member shall be required for the Company or any of its Subsidiaries to amend, modify or supplement the terms and provisions of this Agreement in any manner that would have an adverse and disproportionate impact on such Member vis-a-vis the other Members.

*The remainder of this page is intentionally left blank.*

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date first written above.

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| | |
|:---|:---|
| **THE ADHATI TRUST** | **THE ADHATI TRUST** |
| By: |  |
|  | Name: Richard Feldstein |
|  | Title: Trustee |
| **JAJC INVESTMENTS LLC** | **JAJC INVESTMENTS LLC** |
| By: |  |
|  | Name: Richard Statter |
|  | Title: Trustee |
| **222 SPIRITS MANAGEMENT HOLDCO, LLC** | **222 SPIRITS MANAGEMENT HOLDCO, LLC** |
|  | By: 222 Spirits Holdco, LLC, its Manager |
| By: |  |
|  | Name: Richard Feldstein |
|  | Title: Authorized Signatory |

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Signature Page to Third Amended and Restated

Limited Liability Company Agreement

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date first written above.

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| | |
|:---|:---|
| **AMASS BRANDS INC** | **AMASS BRANDS INC** |
| By: |  |
|  | Name: Mark T. Lynn |
|  | Title: Chief Executive Officer |

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Signature Page to Third Amended and Restated

Limited Liability Company Agreement

**SCHEDULE 10<br> <u>Members and Units</u>**

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| | |
|:---|:---|
| **Name** | **Units** |
| The Adhati Trust | 2,174.99565 Class A Common Units |
| AMASS Brands Inc | 4,350.0087 Class A Common Units |
| JAJC Investments LLC | 2,174.99565 Class A Common Units |
| 222 Spirits Management Holdco, LLC | 132.50 Incentive Units |

---

SCHEDULE 10

**ANNEX I**

**<u>Definitions</u>**

"<u>222 Spirits</u>" means 222 Spirits Company, LLC, a California limited liability company.

"<u>Adhati Member</u>" means (i) The Adhati Trust, for so long as it holds any Class A Common Units, or (ii) upon a Transfer of such Member's Units to a Permitted Transferee, such Permitted Transferee.

"<u>Affiliate</u>" means, with respect to a specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person; <u>provided, however</u>, that (i) none of the Members or their parent companies or Affiliates shall be deemed to be an Affiliate of any other Member or its parent company or Affiliates, and (ii) none of the Members or their parent companies or Affiliates shall be deemed to be an Affiliate of the Company or any of its Affiliates.

"<u>AMASS Affiliate Transaction</u>" means any transaction, agreement or arrangement by and between the Company, on the one hand, and the AMASS Member or any of its Affiliates, on the other hand, including the Management Services Agreement and the Line of Credit Agreement.

"<u>AMASS Member</u>" means (i) AMASS Brands Inc, a Delaware corporation for so long as it holds any Class A Common Units, or (b) upon a Transfer of such Member's Units to a Permitted Transferee, such Permitted Transferee.

"<u>Appraisal Firm</u>" means an independent, nationally recognized and reputable appraisal firm with experience in valuing businesses similar to the Company, including at least five (5) years of experience in the liquor industry.

"<u>Asset Value</u>" means, with respect to any asset of the Company, the adjusted basis of such asset for federal income tax purposes; <u>provided</u>, <u>however</u>, that: (i) the initial Asset Value of any asset (other than cash) contributed or deemed contributed by a Member to the Company shall be the gross Fair Market Value of such asset as determined by the Board; (ii) the Asset Values of all assets shall be adjusted to equal their respective gross Fair Market Values as determined by the Board as of the following times: (A) the acquisition of an additional interest in the Company by any new or existing Member, in exchange for more than a *de minimis* Capital Contribution; (B) the distribution by the Company to a Member of more than a *de minimis* amount of property as consideration for an interest in the Company; (C) the liquidation of the Company within the meaning of Treas. Reg. § 1.704-1(b)(2)(ii)(g); (D) the grant of an interest in the Company (other than a *de minimis* interest) as consideration for the provision of services to the benefit of the Company by an existing Member acting in a Member capacity or by a new Member acting in a Member capacity or in anticipation of becoming a Member; or (E) any other instance in which such adjustment is permitted under Treas. Reg. § 1.704-1(b)(2)(iv); <u>provided</u>, <u>however</u>, that any adjustment pursuant to <u>clauses (A), (B)</u>, <u>(D)</u>, or <u>(E)</u> above shall be made only if the Board determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; (iii) the Asset Value of any asset distributed to any Member shall be the gross Fair Market Value of such asset on the date of distribution, as determined by the Board; and (iv) the Asset Values of all assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code section 734(b) or Code section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m); <u>provided</u>, <u>however</u>, that Asset Values shall not be adjusted pursuant to this <u>clause (iv)</u> to the extent that the Board determines that an adjustment pursuant to <u>clause (ii)</u> of this definition of Asset Value is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this <u>clause (iv)</u>.

ANNEX I

If the Asset Value of an asset has been determined or adjusted pursuant to paragraph (i), (ii), or (iv) of this definition of Asset Value, then such Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Net Profits and Net Losses.

"<u>Available Cash</u>" means, after taking into account amounts determined by the Board to be reasonably necessary or advisable to be retained by the Company to meet actual expenses or liabilities of the Company, or to create reasonable reserves for any of the foregoing, cash of the Company that the Board determines is available for distribution to the Members; for the avoidance of doubt, Available Cash shall include (i) retained earnings, from or attributable to Available Cash, whether held in cash or otherwise, (ii) distributions from 222 Spirits, and (iii) proceeds received upon the disposition of equity interests in 222 Spirits.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day on which banks are required or authorized by Law to be closed in Los Angeles, California or New York, New York.

"<u>Capital Account</u>" means, with respect to each Member, the account maintained for such Member in accordance with the provisions of <u>Section 1.03</u> of <u>Annex II</u>.

"<u>Capital Transaction</u>" means (i) any sale, exchange, transfer, assignment, lease, exclusive license or other disposition in a single transaction or series of related transactions of all or substantially all of the Company's assets prior to or upon dissolution and liquidation of the Company or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, exchange, transfer, assignment, lease, exclusive license or other disposition is to a wholly owned subsidiary of the Company (but not including occasional sales in the ordinary course of business of inventory, operating equipment, furniture, fixtures or equipment); (ii) the acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of greater than 50% of the equity interests of the Company (except a merger or consolidation in which the beneficial owner(s) of equity interests in the Company (or such beneficial owner(s)' Affiliates) immediately prior to such merger or consolidation beneficially own at least 50% of the voting power of the equity interests of the Company or the respective surviving or acquiring entity); (iii) the consummation of a merger, consolidation, reorganization, exchange or other transaction involving the Company or an acquisition of the Company by another entity pursuant to which the equity interests of the Company are converted or exchanged into cash or securities or other property of the acquiring entity or any of its subsidiaries or parent entities, in each case, which results in the Members and their Permitted Transferees beneficially owning, directly or indirectly, no interest in the surviving entity resulting from such transaction; or (iv) a liquidation, dissolution or winding up of the Company.

ANNEX I

"<u>Change in Control</u>" means the acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial ownership of greater than 50% of the Membership Interests of the Company (except a merger or consolidation in which the beneficial owner(s) of equity interests in the Company (or such beneficial owner(s)' Affiliates) immediately prior to such merger or consolidation beneficially own at least 50% of the voting power of the equity interests of the Company or the respective surviving or acquiring entity).

"<u>Class A Common Members</u>" means Members holding Class A Common Units.

"<u>Class A Common Units</u>" has the meaning given to the term in <u>Section 9(a)</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended. All references in this Agreement to sections of the Code shall include any corresponding provision or provisions of succeeding Law.

"<u>Company Business</u>" means holding equity in 222 Spirits, and incurring only such liabilities as are incidental to holding such equity.

"<u>Company Minimum Gain</u>" has the meaning given to the term "partnership minimum gain" in Treas. Reg. §§ 1.704-2(b)(2) and 1.704-2(d).

"<u>control</u>," including the terms "<u>controlled by</u>" and "<u>under common control with</u>," means with respect to any Person, 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, as trustee or executor, as general partner or managing member, by contract or otherwise, including the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such Person.

"<u>Depreciation</u>" means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for such Fiscal Year or other period; <u>provided</u>, <u>however</u>, that if the Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year or other period, Depreciation shall be determined in accordance with Treas. Reg. § 1.704-1(b)(2)(iv)(g)(3) or Treas. Reg. § 1.704-3(d)(2), as appropriate.

"<u>Exempted Securities</u>" means Units, rights, options, warrants or other securities or equity- linked rights of or with respect to the Company or a Subsidiary, as applicable, described in the following, (a) designated by the Board as Exempted Securities, or (b) issued: (i) to banks or other financial institutions in connection with the arrangement of credit facilities or other financings by the Company or a Subsidiary, provided any such arrangement and issuance is approved by the Board; (ii) in consideration for the acquisition of a business or assets of a business approved by the Board; (iii) pursuant to an acquisition of another entity by the Company by merger, consolidation or similar business combination, or acquisition of all or substantially all of the equity or assets of such entity, which is approved by the Board; (iv) to equipment lessors, banks, or similar institutional credit financing sources pursuant to bona fide plans or arrangements; (v) to 222 Spirits Management Holdco, LLC, a Delaware limited liability company ("<u>Management Holdco</u>") on behalf of any of its members, or otherwise pursuant to the Award Agreement, by and between the Company and Management Holdco, dated as of July 26, 2022; (vi) by reason of a dividend, unit split, split-up or other distribution on or subdivision of Membership Interests; or (vii) to wholly- owned Subsidiaries that remain, directly or indirectly, wholly-owned by the Company.

ANNEX I

"<u>Fair Market Value</u>" of Units or other property, as the case may be, means the cash price that a Third Party would pay to acquire all of such Units (computed on a fully diluted basis after giving effect to the exercise of any and all outstanding conversion rights, exchange rights, warrants and options) or other property in an arm's-length transaction, assuming with respect to the Fair Market Value of Units, that the Company was being sold in a manner reasonably designed to solicit all possible participants and permit all interested Persons an opportunity to participate and to achieve the best value reasonably available to the Members at the time, taking into account all existing circumstances, including the terms and conditions of all agreements (including this Agreement) to which the Company is then a party or by which it is otherwise benefited or affected, determined, unless otherwise specified, by the Board.

"<u>Fiscal Year</u>" means, subject to Code section 706, the calendar year or any other period selected by the Company.

"<u>Founder Affiliate Transaction</u>" means any transaction, agreement or arrangement by and between the Company, on the one hand, and a Founder Member or any of its Affiliates, on the other hand, including the RCAs.

"<u>Founder Managers</u>" means the Adhati Manager and the JAJC Manager.

"<u>Founder Members</u>" means the Adhati Member and the JAJC Member.

"<u>Governmental Authority</u>" means any United States or non-United States federal, national, supranational, state, provincial, local or similar government, governmental, regulatory or administrative authority, branch, agency or commission or any court, tribunal, or arbitral or judicial body.

"<u>Immediate Family</u>" means, with respect to any natural person, such person's spouse, parents, lineal descendants of all generations, and siblings, including adoptive relationships, <u>provided</u> that the adopted individual is legally adopted prior to attaining the age of majority.

"<u>Incentive Catch-Up Amount</u>" for any Incentive Catch-Up Unit means the amount (in no event less than zero) equal to the Incentive Catch-Up Target minus the aggregate amount of all distributions in respect of such Incentive Catch-Up Unit pursuant to <u>Section 15(b)(iii)</u> (including by application of <u>Section 15(d))</u> as of such time.

"<u>Incentive Catch-Up Target</u>" for any Incentive Catch-Up Unit means the "catch-up" amount, if any, approved by the Board and set forth in the Award Agreement relating to such Incentive Catch-Up Unit or, if no such "catch-up" amount is so designated for an Incentive Catch-Up Unit, the amount that would have been received by such Incentive Catch-Up Unit pursuant to <u>Section 15(b)(iii)</u> (including by application of <u>Section 15(d))</u> if such Incentive Catch-Up Unit's Threshold Amount had been zero.

ANNEX I

"<u>Incentive Catch-Up Unit</u>" means an Incentive Unit specifically designated as an Incentive "catch-up" Unit in the Award Agreement relating to such Incentive Unit.

"<u>Incentive Unit Holder</u>" means a Person holding one or more Incentive Units.

"<u>Intangible Asset Gain</u>" means the gains realized by the Company with respect to the assets of the Company that are (i) described in Code section 197(d) and (ii) interests in entities classified as corporations for U.S. federal income tax purposes, in connection with the actual or hypothetical sale of such assets, including, as appropriate, gains realized for purposes of maintaining Capital Accounts in connection with an adjustment to the Asset Value of the Company assets.

"<u>JAJC Member</u>" means (i) JAJC Investments LLC, a Delaware limited liability company, for so long as it holds any Class A Common Units, or (ii) upon a Transfer of such Member's Units to a Permitted Transferee, such Permitted Transferee.

"<u>Law</u>" means any statute, law, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or order of any Governmental Authority.

"<u>Liquidity Event</u>" means the occurrence of any of the following in one transaction or a series of related transactions: (i) a liquidation, dissolution or winding up of the Company pursuant to <u>Section 28</u>; (ii) the sale, exchange or other disposition for economic value of all or substantially all of the assets of the Company or 222 Spirits; (iii) a merger, reorganization, or consolidation for economic value in which the Company is not the surviving entity or in which any Person other than any Members or their Permitted Transferees acquires Units constituting greater than 50% of the Units in the Company except any such merger, reorganization or consolidation involving the Company in which the ownership interests of the Company outstanding immediately prior to such merger, reorganization or consolidation continue to represent, or are converted into or exchanged for ownership interests that represent, immediately following such merger, reorganization or consolidation, at least a majority of the ownership interests of (A) the surviving or resulting entity, or (B) if the surviving or resulting entity is a wholly owned subsidiary of another entity immediately following such merger, reorganization or consolidation, the parent entity of such surviving or resulting entity; or (iv) the issuance, sale or other Transfer for economic value to any non-Member(s) (other than a Permitted Transferee) of Units constituting greater than 50% of the Units in the Company.

"<u>Member</u>" means any Person named as a member in <u>Schedule 10</u> (as amended from time to time) and any Person admitted as an additional member of the Company or a substitute member of the Company pursuant to the provisions of this Agreement, in each case, in such Person's capacity as a member of the Company, until such time as such Person has transferred or disposed of all of such Person's Units in accordance with the provisions of this Agreement.

"<u>Member Nonrecourse Debt</u>" has the meaning given to the term "partner nonrecourse debt" in Treas. Reg. § 1.704-2(b)(4).

ANNEX I

"<u>Member Nonrecourse Debt Minimum Gain</u>" means, with respect to each Member Nonrecourse Debt, an amount equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a nonrecourse liability, determined in accordance with Treas. Reg. § 1.704-2(i)(3).

"<u>Member Nonrecourse Deduction</u>" has the meaning given to the term "partner nonrecourse deduction" in Treas. Reg. §§ 1.704-2(i)(l) and 1.704-2(i)(2).

"<u>Membership Interest</u>" means, with respect to any Member, such Member's entire undivided economic interest in the Company, including, except as may otherwise be provided in <u>Section 15</u> of the Agreement or Article III of <u>Annex II</u>, each item of income, gain, loss, credit and distributions of the Company, including any right of such Member to the return of Capital Contributions and any interest thereon.

"<u>Net Profits</u>" and "<u>Net Losses</u>" mean, for each Fiscal Year or other period, an amount equal to the Company's taxable income or loss for such Fiscal Year or other period, determined in accordance with Code section 703(a) (but including in taxable income or loss, for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code section 703(a)(1)), with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 income of the Company exempt from federal income tax and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this definition shall be added to such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 expenditures of the Company described in Code section 705(a)(2)(B) (or treated as expenditures described in Code section 705(a)(2)(B) pursuant to Treas. Reg. § 1.704 1(b)(2)(iv)(i)) and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this definition shall be subtracted from such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the event the Asset Value of any asset of the Company is adjusted in accordance with paragraph (ii) or paragraph (iii) of the definition of "Asset Value," the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net Profits or Net Losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) gain or loss resulting from any disposition of any asset of the Company with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Asset Value of the asset disposed of, notwithstanding that the adjusted tax basis of such asset differs from its Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year computed in accordance with the definition of "Depreciation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to the extent an adjustment to the adjusted tax basis of any asset of the Company pursuant to Code section 734(b) is required pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Member's interest in the Company, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Net Profits and Net Losses;

ANNEX I

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) notwithstanding any other provision of this definition of Net Profits and Net Losses, any items that are specially allocated pursuant to <u>Section 3.02</u> and <u>Section 3.03</u> of <u>Annex II</u> shall not be taken into account in computing Net Profits or Net Losses, but shall be determined by applying rules analogous to those set forth in paragraphs (i) through (vi) above; 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;&nbsp;&nbsp;&nbsp;&nbsp;(viii) where appropriate, references to Net Profits or Net Losses shall refer to specific items of income, gain, loss, deduction, and credit comprising or otherwise comprising Net Profits or Net Losses.

"<u>New Securities</u>" means any and all shares of equity securities, equity interests, equity linked rights and debt securities issued or sold by the Company or a Subsidiary, in each case, whether or not currently authorized, other than Exempted Securities, including any membership interests, units, bonds, debentures, notes, or other evidences of indebtedness, options, warrants, or rights convertible into or exchangeable for New Securities.

"<u>Nonrecourse Deductions</u>" has the meaning set forth in Treas. Reg. § 1.704-2(b)(1).

"<u>Percentage Interest</u>" means, with respect to a Member as of any date, a percentage representing the aggregate number of Units beneficially owned by such Member as of such date, divided by the aggregate number of Units then outstanding.

"<u>Permitted Entity</u>" means, with respect to any transferor, any general partnership, limited partnership, limited liability company, corporation, or other entity controlled by (i) such transferor or (ii) if such transferor is an individual, one or more members of the Immediate Family of such transferor.

"<u>Permitted Transferee</u>" means: (i) with respect to any transferor who is an individual, without regard to whether the Transfer occurs during such individual's lifetime or upon such individual's death, (A) any member of the Immediate Family of such individual, (B) any Permitted Trust, (C) any Permitted Entity, or other similar estate planning vehicle, (D) such individual's agent, acting in his, her or its fiduciary capacity, serving under a validly executed and effective durable power of attorney for asset management in the event of the incapacity of such individual, (E) the duly appointed and serving conservator or guardian of such individual's estate, acting in his, her or its fiduciary capacity, in the event of the incapacity of such individual, (F) the duly appointed and serving personal representative of the estate of such individual, acting in his, her or its fiduciary capacity, upon the death of such individual or (G) a Transferee who receives (directly or indirectly) such Units by will or the Laws of descent and distribution; (ii) with respect to any transferor that is a trust, any beneficiary of such trust that is (A) a member of the Immediate Family of the applicable Grantor, (B) any Permitted Trust or (C) any Permitted Entity <u>(provided</u>, that with respect to any transferor that is a trust, no Transfer will be deemed to have occurred upon a change in the trustee of such trust, without regard to whether such change occurs as a result of the death, resignation, incapacity or removal of a trustee); and (iii) with respect to any other transferor, any Affiliate of such transferor. For purposes of clarity, a Member's "Permitted Transferee" includes each of the foregoing persons, whether or not a Transfer is actually made to such Person.

ANNEX I

"<u>Permitted Trust</u>" means a trust being administered for the primary benefit of: (i) a Member, or any of their respective ultimate controlling beneficial owners, in each case who is an individual and who primarily funded such trust (a "<u>Grantor</u>") or (ii) one or more members of the Immediate Family of the Grantor who directly or indirectly made a permitted Transfer of Units to such trust.

"<u>Person</u>" means an individual, corporation, partnership, limited liability company, limited liability partnership, joint venture, syndicate, person, trust, association, organization or other entity, including any Governmental Authority, and including any successor, by merger or otherwise, of any of the foregoing.

"<u>Push Out Election</u>" means the election under Code section 6226 (or any similar provision of state or local law) to "push out" an adjustment to the Members or former Members, including filing IRS Form 8988 (Election for Alternative to Payment of the Imputed Underpayment), or any successor or similar form, and taking any other action necessary to give effect to such election.

"<u>Regulations</u>" means the income tax regulations, including temporary regulations and, to the extent taxpayers are permitted to rely on them, proposed regulations, promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). References to "Treas. Reg. §" are to the sections of the Regulations.

"<u>Standard Representations</u>" means, with respect to a Member in connection with a transaction, customary representations and warranties by such Member related to such Member's authority to sell its Units, ownership of its Units, enforceability of the transaction agreements against such Member and no brokers, including representations and warranties that, subject to customary materiality and other qualifiers where applicable: (a) the Member holds all right, title and interest in and to the Units such Member purports to hold, free and clear of all liens and encumbrances, (b) the obligations of the Member in connection with the transaction have been duly authorized, if applicable, and (c) the agreements to be entered into by the Member in connection with such transaction have been duly executed by the Member and delivered to the acquirer and are enforceable against the Member in accordance with their respective terms and (d) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of the Member's obligations thereunder, will cause a breach or violation of the terms of any agreement that such Member is a party to, or any Law.

"<u>Subsidiary</u>" means, with respect to any Person, an entity in which such Person holds equity interests, directly or indirectly, such that either such Person holds at least a majority, by voting power to elect the board of directors, board of managers or similar governing body, of the equity interests of such entity. All references in this Agreement to a Subsidiary shall mean a Subsidiary of the Company, unless indicated otherwise.

"<u>Tax Action</u>" means any tax-related action, decision, or determination (or failure to take an available tax-related action, decision, or determination) by or with respect to the Company, the Company or any subsidiary of the Company, including, for the avoidance of doubt, (i) pursuant to discretion granted to the Company or the Company under the terms of this Agreement (or any agreement related to the Company), (ii) by a Tax Representative or "Designated Individual" (as described in Treas. Reg. § 301.6223-1(b)(3)(ii)), (iii) with respect to any tax-related audit or proceeding, (iv) with respect to preparation and filing of any tax return of the Company or any subsidiary of the Company, (v) any modification to the allocations pursuant to Section 3.02 or Section 3.03 of Annex II, (vi) relating to tax distributions or withholding, or (vii) any determination made by the Board or the Company pursuant to (or other action taken in accordance with) Article II of <u>Annex II</u>.

ANNEX I

"<u>Tax Item</u>" means each Company item of income, gain, loss, deduction, and credit.

"<u>Tax Representative</u>" means, as applicable, and including the Designated Individual as the context requires, (i) the Member or other Person (including the Company) designated as the "partnership representative" of the Company under Code section 6223, (ii) the Member designated as the "tax matters partner" for the Company under Code section 6231(a)(7) (as in effect before 2018 and before amendment by Title XI of the Bipartisan Budget Act of 2015, H.R. 1314, Public Law No. 114-74), or (iii) the Member or other Person serving in a similar capacity under any similar provisions of state, local or non-U.S. Laws, in each case, acting solely at the direction of the Company to the maximum extent permitted under applicable Law. If any jurisdiction requires any person other than the Company to be the Tax Representative, the Company will appoint the Tax Representative to serve in such jurisdiction. That additional Tax Representative will have authority solely with respect to the jurisdiction in which it serves and in all cases will act, to the maximum extent allowable by applicable Law, solely at the direction of the Company, subject to approval of the Board.

"<u>Third Party</u>" means any Person other than a Member, a Manager, an Officer, a Permitted Transferee or a Representative of any of the foregoing.

"<u>Transaction Conditions</u>" means, with respect to any Member in connection with any Co-Sale Transaction or Drag Transaction, as applicable:

&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) any representations, warranties and covenants to be made by such Member in connection with such transaction are limited to the Standard Representations; <u>provided</u>, <u>further</u>, that in no event shall any Member or any Affiliate of a Member be obligated to enter into (i) any non-competition covenant, (ii) non-solicitation covenant, (iii) other covenant that restricts the activities of such Member or one or more of its Affiliates in any way, or (iv) any other covenant other than, in the case of this clause (iv): (A) covenants relating to delivery of such Member's equity securities that are customary in form, scope and substance (including any such covenants regarding further assurances associated with such delivery) and (B) covenants regarding confidentiality and public announcements that are consistent in form, scope and substance with such Member's obligations regarding confidentiality and public announcements pursuant to this Agreement;

ANNEX I

&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) such Member shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with such transaction (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any identical representations, warranties and covenants provided by all Members); 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;(c) (i) the liability for indemnification, if any, of such Member in such transaction for the breach of any representations, warranties or covenants made by the Company in connection with such transaction, is several and not joint with any other Person and pro rata in proportion to the consideration paid or otherwise payable to such Member in connection with such transaction and (ii) the liability for indemnification, if any, of such Member in such transaction does not exceed the amount of consideration paid or otherwise payable to such Member in connection with such transaction except for claims related to fraud by such Member.

"<u>Transfer</u>" means, in respect of any Units, property or other assets, any direct or indirect, sale, assignment, hypothecation, lien, encumbrance, transfer, distribution or other disposition thereof or of a participation therein, or other conveyance of legal or beneficial interest therein, including rights to vote and to receive dividends or other income with respect thereto, or any short position in a security or any other action or position otherwise reducing risk related to ownership through hedging or other derivative instruments, whether voluntarily or by operation of Law, or any agreement or commitment to do any of the foregoing.

"<u>Transferee</u>" means any Person that is a transferee of all or a portion of a Member's Units.

ANNEX I

**ANNEX II<br> TAX ANNEX**

**ARTICLE I.**

**TAX ANNEX; INTERPRETATION; CAPITAL ACCOUNTS**

**Section 1.01** <u>Partnership Agreement</u>. This annex to the Agreement (the "<u>Tax Annex</u>") shall be considered part of the Agreement for all purposes, and, for U.S. federal income tax purposes, shall be treated as part of the Agreement as described in Code section 761(c) and Treas. Reg. §§ 1.704-1(b)(2)(ii)(h) and 1.761-1(c).

**Section 1.02** <u>Interpretation</u>. Except as otherwise specified or required by context, references to "Sections" in this Tax Annex are to the applicable section of this Tax Annex. Terms that are capitalized but not defined in this Tax Annex have the meaning given in the Agreement. Except as otherwise specified or required by context, if a capitalized term is defined in both the Agreement and this Tax Annex, the definition in this Tax Annex shall control.

**Section 1.03** <u>Capital Accounts</u>. A separate Capital Account shall be established and maintained for each Member in accordance with Treas. Reg. § 1.704-1(b)(2)(iv). The Company may maintain Capital Account sub-accounts for different classes of Units, and any provisions of this Agreement pertaining to Capital Account maintenance shall apply, *mutatis mutandis,* to those sub-accounts.

**ARTICLE II.**

**TAX RELATED GOVERNANCE MATTERS**

**Section 2.01** <u>Tax Actions</u>. All Tax Actions shall be determined, taken, or made by the Board; <u>provided</u>, that the Board shall not determine, take, or make any Tax Action that would have a disproportionate and material adverse impact on a Founder Member vis-a-vis another Member without the prior written consent of the Founder Manager appointed by such Founder Member.

**Section 2.02** <u>Company Tax Returns</u>. The Company shall cause to be prepared and timely filed (taking into account available extensions) all federal, state, and local, and non-U.S. tax returns of the Company for each year for which such returns are required to be filed and shall determine the appropriate treatment of each Tax Item of the Company and all other determinations with respect to such tax returns. The provisions of this Agreement with respect to U.S. federal income tax shall apply, *mutatis mutandis,* with respect to any similar provisions of state, local, or non-U.S. tax law as determined by the Board.

**Section 2.03** <u>Tax Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Appointment and Replacement of Tax Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Tax Representative</u>. The Company shall act as the Tax
Representative, but the Company may designate another Person to act as the Tax Representative and may remove, replace, or revoke the
designation of that Person, or require that Person to resign.

ANNEX II

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Designated Individual</u>. If the Tax Representative is
not an individual, the Company shall appoint a "designated individual" for each taxable year (as described in Treas. Reg.
§ 301.6223-1(b)(3)(ii)) (a " <u>Designated Individual</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Approval by Members</u>. Each Member agrees to execute,
certify, acknowledge, deliver, swear to, file, and record at the appropriate public offices such documents as may be deemed necessary
or appropriate to evidence the appointments described in <u>Section 2.03(a)(i)</u> and <u>Section 2.03(a)(ii)</u>, including statements
required to be filed with the tax returns of the Company in order to effect the designation of the Tax Representative or Designated Individual
(and any successor).

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority of the Tax Representative; Delegation of Authority</u>.
The Tax Representative shall have all of the rights, duties, powers, and obligations provided for under the Code, Regulations, or other
applicable guidance; <u>provided</u>, that, if a Person other than the Company is the Tax Representative, the Tax Representative shall
in all cases act solely at the direction of the Board. The Tax Representative may delegate its authority under this <u>Section 2.03(b)</u> to a Designated Individual who shall in all cases act solely at the direction of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Costs and Indemnification of Tax Representative and Designated Individual</u>. The Company shall pay, or to the extent the Tax Representative or Designated Individual pays, indemnify and reimburse,
to the fullest extent permitted by applicable law, the Tax Representative or Designated Individual for all costs and expenses, including
legal and accounting fees (as such fees are incurred) and any claims incurred in connection with any tax audit or judicial review proceeding
with respect to the tax liability of the Company.

**Section 2.04** <u>Tax Audits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Determinations with Respect to Audits and Other Tax Controversies</u>.
Except to the extent otherwise required by applicable tax law (including Code section 6241(11)), the Company (acting directly or through
the Tax Representative) shall have the sole authority to make all decisions and determinations with respect to, and shall have sole authority
with respect to the conduct of, tax audits or other tax controversies with respect to the Company, and any action taken by the Company
(acting directly or through the Tax Representative) in connection with any such audits or controversies shall be binding upon the Company
and the Members and former Members. No Member shall take any action or make any filing inconsistent with the actions of the Tax Representative.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Determinations with Respect to Certain Audit-Related Elections</u>.
The Company (acting directly or through the Tax Representative) shall have the sole authority to determine whether to cause the Company
to make a Push Out Election with respect to any adjustment that could result in an imputed underpayment (within the meaning of Code section
6225) (an " <u>Imputed Underpayment</u> "). The Company may make the election "out" under Code section 6221(b)
if such an election is available.

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&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Responsibility for Payment of Tax; Former Members</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Imputed Underpayment Share</u>. To the extent the Company
is liable for any Imputed Underpayment, the Board shall determine the liability of the Members for a share of such Imputed Underpayment,
taking into account the relevant facts and circumstances and the actions and status of the Members (including those described in Code
section 6225(c)) (such share, an " <u>Imputed Underpayment Share</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payment of Imputed Underpayment Share</u>. The Company
may (1) require a Member who is liable for an Imputed Underpayment Share to pay the amount of its Imputed Underpayment Share to the Company
within ten (10) days after the date on which the Company notifies the Member (and in the manner required by the notice) or (2) reduce
future distributions to the Member, such that the amount determined under <u>clause (1)</u> and <u>(2)</u> equals the Member's
Imputed Underpayment Share. If a Member fails to pay any amount that it is required to pay the Company in respect of an Imputed Underpayment
Share, that amount shall be treated as a loan to the Member, bearing interest at ten percent (10%) annually (which interest shall increase
the Member's Imputed Underpayment Share). Such loan shall be repayable on demand by the Company. If the Member fails to repay the
loan upon demand, the full balance of the loan shall be immediately due (including accrued but unpaid interest) and the Company shall
have the right to collect the balance in any manner it determines, including by reducing future distributions to that Member.

**Section 2.05** <u>No Independent Actions or Inconsistent Positions</u>. Except as required by applicable law or previously authorized in writing by the Company no Member shall (i) independently act with respect to tax matters affecting or arising from the Company, including with respect to the procedures described in Code section 6225(c), or (ii) treat any Company item inconsistently on such Member's income tax return with the treatment of the item on the Company's tax return or the Schedule K-1 (or other written information statement) provided to such Member.

**Section 2.06** <u>United States Person</u>. Each Member represents and covenants that, for U.S. federal income tax purposes, it is and will at all times remain a "United States person," within the meaning of Code section 7701, or is a disregarded entity the assets of which are treated as owned by a United States person under Treas. Reg. §§ 301.7701-1, 301.7701-2, and 301.7701-3.

**ARTICLE III.**

**ALLOCATIONS**

**Section 3.01** <u>Allocations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Allocations</u>. Each Fiscal Year, after adjusting
each Member's Capital Account for all contributions and distributions with respect to such Fiscal Year and after giving effect
to the allocations under <u>Section 3.02</u> for the Fiscal Year, Net Profits and Net Losses shall be allocated among the Members in
a manner such that, after such allocations have been made, each Member's Capital Account balance (which may be a positive, negative,
or zero balance) will equal (proportionately) (a) the amount that would be distributed to each such Member, determined as if the Company
were to (i) sell all of its assets for their Asset Values, (ii) satisfy all of its liabilities in accordance with their terms with the
proceeds from such sale (limited, with respect to nonrecourse liabilities, to the Asset Values of the assets securing such liabilities),
and (iii) distribute the remaining proceeds pursuant to the applicable provision of this Agreement, minus (b) the sum of (x) such Member's
share of the Company Minimum Gain and Member Nonrecourse Debt Minimum Gain and (y) the amount, if any (without duplication of any amount
included under clause (x)), that such Member is obligated (or is deemed for U.S. tax purposes to be obligated) to contribute, in its
capacity as a Member, to the capital of the Company as of the last day of such Fiscal Year.

ANNEX II

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Allocations in Respect of Incentive Units</u>. For purposes
of allocating Net Profits and Net Losses pursuant to this <u>Section 3.01</u>, all outstanding unvested Incentive Units shall be treated
as if they were vested. No allocation shall be made in respect of an Incentive Unit out of any income or gain that is not Intangible
Asset Gain, as determined in accordance with <u>Section 15(c)(iii)</u> of the Agreement.

**Section 3.02** <u>Priority Allocations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Minimum Gain Chargeback, Qualified Income Offset, and Stop Loss Provisions</u>. Each of (i) the "minimum gain chargeback" provision of Treas. Reg. § 1.704-2(f), (ii) the
"chargeback of partner nonrecourse debt minimum gain" provision of Treas. Reg. § 1.704-2(i)(4), (iii) the "qualified
income offset" provision in Treas. Reg. § 1.704-1(b)(2)(ii)(d), and (iv) the requirement in Treas. Reg. § 1.704-1(b)(2)(ii)(d)(3)
that an allocation "not cause or increase a deficit balance" in a Member's Capital Account is hereby incorporated by
reference as a part of this Agreement. The Company shall make such allocations as are necessary to comply with those provisions and shall
make any determinations with respect to such allocations (to the extent consistent with <u>clauses (i)</u> -(iv) of the preceding sentence).

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nonrecourse Deductions</u>. Nonrecourse Deductions for
any Fiscal Year shall be allocated to the Members as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Member Nonrecourse Deductions</u>. Any Member Nonrecourse
Deductions for any Fiscal Year shall be specially allocated to the Member who bears the economic risk of loss (within the meaning of
Treas. Reg. § 1.752-2) with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable
in accordance with Treas. Reg. § 1.704-2(i)(l).

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Special Basis Adjustments</u>. To the extent an adjustment
to the adjusted tax basis of any Company asset, pursuant to Code section 734(b) or Code section 743(b) is required, pursuant to Treas.
Reg. §§ 1.704-1(b)(2)(iv)(m)(2) or 1.704-1 (b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the
result of a distribution to a Member in complete liquidation of such Member's interest in the Company, the amount of such adjustment
to Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) and such gain or loss shall be specially allocated to the Members in accordance with their interests in the Company
in the event Treas. Reg. § 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom such distribution was made in the event Treas.
Reg. § 1.704-1(b)(2)(iv)(m)(4) applies.

ANNEX II

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Ameliorative Allocations</u>. Any allocations made (as
well as anticipated reversing or offsetting regulatory allocations to be made) pursuant to <u>Section 3.02(a)</u> - <u>(d)</u> shall be
taken into account in computing subsequent allocations pursuant to this Agreement, so that the net amount for any item so allocated and
all other items allocated to each Member pursuant to this Agreement shall be equal, to the extent possible, to the net amount that would
have been allocated to each Member pursuant to the provisions of this Agreement if those allocations had not occurred.

**Section 3.03** <u>Other Allocation Rules</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In General</u>. Except as otherwise provided in this <u>Section 3.03</u>, for income tax purposes under the Code and the Regulations, each Company item of income, gain, loss, deduction, and credit
(collectively, " <u>Tax Items</u> ") shall be allocated among the Members in the same manner as its correlative item of income,
gain, loss, deduction, and credit (as calculated for purposes of allocating Net Profits or Net Losses, including items allocated under <u>Section 3.02)</u> is allocated pursuant to <u>Section 3.01</u> and <u>Section 3.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Code Section 704(c) Allocations</u>. Notwithstanding any
provision of <u>Section 3.03(a)</u> to the contrary, in accordance with Code section 704(c)(1)(A) (and the principles of those provisions)
and Treas. Reg. § 1.704-3, Tax Items with respect to any property contributed to the capital of the Company, or after Company has
been revalued under Treas. Reg. § 1.704-1(b)(2)(iv)(f) or (s), shall, solely for U.S. federal, state and local tax purposes, be
allocated among the Members so as to take into account any variation between the adjusted basis of such Company property to the Company
for U.S. federal income tax purposes and its value as so determined at the time of the contribution or revaluation of Company property.
The Company shall be permitted to use any method permitted under Treas. Reg. § 1.704-3. Allocations pursuant to <u>Section 3.03(a)</u> and this <u>Section 3.03(b)</u> are solely for U.S. federal, state, and local tax purposes and shall not affect, or in any way be
taken into account in computing, any Member's Capital Account or share of profit, loss, or other items, pursuant to any provision
of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Modification of Allocations</u>. The allocations set forth
in <u>Section 3.01</u> and <u>Section 3.02</u> are intended to comply with certain requirements of the Regulations. The Board shall be
authorized to make appropriate amendments to the allocations of Net Profits and Net Losses pursuant to this Agreement in order to comply
with Code section 704 or applicable Regulations. Notwithstanding any provision of this Agreement to the contrary, if the Board determines
an allocation other than the allocations that would otherwise be made pursuant to this Tax Annex would more appropriately reflect the
Members' interests in the Company, the Board may make appropriate adjustments to such allocations.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Allocations in Respect of Varying Interest</u>. If any
Member's interest in the Company varies (within the meaning of Code section 706(d)) within a Fiscal Year, whether by reason of
a Transfer of a Unit, redemption of a Unit by the Company, or otherwise, Net Profits and Net Losses for that Fiscal Year will be allocated
so as to take into account such varying interests in accordance with Code section 706(d) using the daily pro ration method or such other
permissible method, methods, or conventions selected by the Company.

ANNEX II

**ARTICLE IV.**

**TAX INFORMATION**

**Section 4.01** <u>Schedule K-1</u>. No later than thirty (30) days after the filing by the Company of the Company's federal tax return (Federal Form 1065), the Company shall provide to each Member a copy of Schedule K-1 of Federal Form 1065 reporting that Member's allocable share of Net Profits, Net Losses and other items of income, gain, loss, deduction, or credit for such Fiscal Year, and, from time to time, such additional information as such Member may reasonably request for tax purposes, as determined by the Company. The Member hereby consents to receive each Schedule K-1 in respect of the Member's Units in the Company through electronic delivery. This consent applies to each Schedule K-1 required to be furnished to the Member by the Company after this consent is given.

**Section 4.02** <u>Provision of Other Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Information to Be Provided by Company to Members</u>.
The Company shall, within 15 days after receiving a written request from a Member, forward to that Member a photocopy of any material
correspondence relating to the Company received from the IRS and, within 15 days, advise that Member in writing of the substance of any
material conversation affecting the Company held with any representative of the IRS. Notwithstanding the foregoing, the Company may withhold
information from the Members to the extent the Company determines that doing so could result in the waiver of any privilege or otherwise
be harmful to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information to Be Provided by Members to Company</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notice of Audit or Tax Examination</u>. Each Member shall
notify the Company within five days after receipt of any notice regarding an audit or tax examination of the Company and upon any request
for material information related to the Company by U.S. federal, state, local, or other tax authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Other Relevant Tax Information</u>. Each Member shall
provide to the Company upon request tax basis information about assets contributed by it to the Company and such other tax information
as reasonably requested by the Company and necessary for it to prepare its financial reports or any tax returns and such other information
as the Company requests.

**Section 4.03** <u>No Right to Member Tax Returns</u>. Notwithstanding anything to the contrary in this Agreement or any right to information under the Act, with respect to the financial statements or tax returns of a Member or its Affiliates, none of the Company, the other Member, such other Member's Affiliates or any of their respective representatives, will be entitled to review such financial statements or tax returns for any purpose, including in connection with any proceeding or other dispute (whether involving the Company, between the Members, or involving any other Persons).

ANNEX II

**Section 4.04** <u>Former Members; Survival; Amendment</u>. For purposes of Article IV, the term "Member" shall include a former Member to the extent determined by the Company. The obligations of each Member and former Member under this Article IV shall survive the Transfer by such Member of its Units (or withdrawal by a Member or redemption of a Member's Units) and the dissolution of the Company until ninety (90) days after the applicable statute of limitations.

**ARTICLE V.**

**TRANSFERS.**

**Section 5.01** <u>Limitation of Transfers to Ensure Partnership Classification</u>. No Transfer of Units under <u>Section 21</u> of the Agreement shall be effective if the Board determines that such Transfer could cause the Company to be classified as an association taxable as a corporation for U.S. federal income tax purposes.

**Section 5.02** <u>Withholding With Respect to a Transfer of Units</u>. A Member making a Transfer permitted by this Agreement shall, unless otherwise determined by the Company, (i) have delivered to the Company an affidavit of non-foreign status with respect to such transferor that satisfies the requirements of Code section 1446(f)(2) or other documentation establishing a valid exemption from withholding pursuant to Code section 1446(f) or (ii) ensure that, contemporaneously with the Transfer, the Transferee of such interest properly withholds and remits to the IRS the amount of tax required to be withheld upon the Transfer by Code section 1446(f) (and promptly provide evidence to the Company of such withholding and remittance). In connection with any such Transfer, the transferor and Transferee of such interest shall agree to jointly and severally indemnify and hold harmless the Company against any loss (including taxes, interest, penalties, and any related expenses) arising out of any failure to comply with the provisions of this <u>Section 5.02</u>.

ANNEX II

**EXHIBIT C**

FORM OF INDEMNIFICATION AGREEMENT

(attached)

***Execution Version***

**INDEMNIFICATION AGREEMENT**

THIS INDEMNIFICATION AGREEMENT (the **"Agreement")** is made and entered into as of September 19, 2024 (the **"Effective Date"),** by and between 222 Spirits Holdco, LLC, a Delaware limited liability company (the **"Company")** and [ **] ("Indemnitee").**

**WITNESSETH THAT:**

**WHEREAS,** highly competent persons have become more reluctant to serve limited liability companies as managers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the Company;

**WHEREAS,** the Board of Managers of the Company (the **"Board")** has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Third Amended and Restated Limited Liability Company Agreement of the Company, dated as of September 19, 2024 (the **"Operating Agreement")** requires indemnification of managers of the Company. The Operating Agreement and the Delaware Limited Liability Company Act (the **"Act")** expressly provide that the indemnification provisions set forth in the Operating Agreement are non-exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification;

**WHEREAS,** the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

**WHEREAS,** the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's members and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

**WHEREAS,** it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

**WHEREAS,** this Agreement is a supplement to and in furtherance of the Operating Agreement and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

**WHEREAS,** Indemnitee does not regard the protection available under the Operating Agreement and insurance as adequate in the present circumstances, and may not be willing to serve as a manager or officer without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified; and

**WHEREAS,** Indemnitee may be, or has been, affiliated with one or more entities that is a member of the Company and Indemnitee may have certain rights to indemnification and/or insurance provided by such entity and/or certain of its affiliates (collectively, the **"Appointing Member")** which Indemnitee and the Appointing Member intend to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with the Company's acknowledgement and agreement to the foregoing being a material condition to Indemnitee's willingness to serve on the Board.

**NOW, THEREFORE,** in consideration of Indemnitee's agreement to serve as a manager from and after the date hereof, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Indemnity of Indemnitee</u>. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof:

&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>Proceedings Other Than Proceedings by or in the Right of the Company</u>. Indemnitee shall be entitled to the rights of indemnification provided in this <u>Section l(a)</u> if, by reason of Indemnitee's Corporate Status (as hereinafter defined), Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company. Pursuant to this <u>Section l(a)</u>, Indemnitee shall be indemnified against all Expenses (as hereinafter defined), losses, damages, liabilities, deficiencies, claims, interests, awards, judgments, penalties, fines and amounts paid in settlement (collectively, **"Losses")** actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful.

&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>Proceedings by or in the Right of the Company</u>. Indemnitee shall be entitled to the rights of indemnification provided in this <u>Section l(b)</u> if, by reason of Indemnitee's Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company. Pursuant to this <u>Section 1(b)</u>, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; <u>provided</u>, <u>however</u>, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware shall determine that such indemnification may be 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;(c) <u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful</u>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a party to (or participant in) and is successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or 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;(d) <u>Indemnification of Appointing Member</u>. If (i) the Appointing Member is, or is threatened to be made, a party to or a participant in any Proceeding, and (ii) the Appointing Member's involvement in the Proceeding results from any claim based on Indemnitee's service to the Company as a manager, the Appointing Member will be entitled to all rights and remedies, including with respect to indemnification and advancement provided to Indemnitee under this Agreement as if the Appointing Member were Indemnitee.

The rights provided to the Appointing Member under this <u>Section 1(d)</u> shall (i) be suspended during any period during which the Appointing Member does not have a representative on the Board, and (ii) terminate on an initial public offering of the equity securities of the Company or its successor; <u>provided</u>, <u>however</u>, that in the event of any such suspension or termination, the Appointing Member's rights to indemnification and advancement of expenses will not be suspended or terminated with respect to any Proceeding based in whole or in part on facts and circumstances occurring at any time prior to such suspension or termination regardless of whether the Proceeding arises before or after such suspension or termination. The Company and Indemnitee agree that the Appointing Member is an express third-party beneficiary of the terms of this <u>Section 1(d)</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;(e) <u>Partial Indemnification</u>. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Additional Indemnity</u>. Except as set forth in <u>Section 9</u> hereof, in addition to, and without regard to any limitations on, the indemnification provided for in <u>Section 1</u> of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses and Losses actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, if, by reason of Indemnitee's Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee. Without limiting <u>Section 9</u> hereof, the only limitation that shall exist upon the Company's obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in <u>Sections 6</u> and 7 hereof) to be unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Contribution</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) Whether or not the indemnification provided in <u>Sections</u> 1 and 2 hereof is available, in respect of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such Proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee. Notwithstanding any other provision of this Agreement, the Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company's written consent, or for any judicial or other award, if the Company was not given an opportunity to participate in the defense of such Proceeding. The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on or disclosure obligation with respect to Indemnitee, or that would directly or indirectly constitute or impose any admission or acknowledgment of fault or culpability with respect to Indemnitee, without Indemnitee's written consent. Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement.

&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) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee elects or is required to pay all or any portion of any judgment or settlement in any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, managers or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such Proceeding arose; <u>provided</u>, <u>however</u>, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, managers or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that resulted in such Expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable law may require to be considered. The relative fault of the Company and all officers, managers or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

&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) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, managers, or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

&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) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding and/or (ii) the relative fault of the Company (and its managers, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Indemnification for Expenses of a Witness</u>. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee's Corporate Status, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee's behalf, in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Advancement of Expenses</u>. Notwithstanding any other provision of this Agreement, including, without limitation, the provisions of <u>Section 6(b)</u>, the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee's Corporate Status within thirty (30) days after the receipt by the Company of a written statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee for which Indemnitee seeks advancement and shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it is ultimately determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this <u>Section 5</u> shall be unsecured and interest free and not conditioned on Indemnitee's ability to repay such advances. This <u>Section 5</u> shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to <u>Section 8(b)</u> or <u>Section 8(c)</u> (other than a Proceeding initiated by Indemnitee pursuant to <u>Sections 8(c)(i)-(iii))</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Procedures and Presumptions for Determination of Entitlement to Indemnification</u>. It is the intent of the parties to this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the Act and public policy of the State of Delaware. Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification 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;(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. An authorized officer of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification. Notwithstanding the foregoing, any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, such failure actually and materially prejudices the interests of the Company. The Company will be entitled to participate in the Proceeding at its own expense.

&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) Upon written request by Indemnitee for indemnification pursuant to the first sentence of <u>Section 6(a)</u> hereof, a determination with respect to Indemnitee's entitlement thereto shall be made in the specific case by one of the following four methods, which shall be at the election of the Board (i) by a majority vote of the Disinterested Managers (as defined herein), even though less than a quorum, (ii) by a committee of Disinterested Managers designated by a majority vote of the Disinterested Managers, even though less than a quorum, (iii) if there are no Disinterested Managers or if the Disinterested Managers so direct, by independent legal counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (iv) if so directed by the Board, by the members of the Company.

&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) If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to <u>Section 6(b)</u> hereof, the Independent Counsel shall be selected as provided in this <u>Section 6(c)</u>. The Independent Counsel shall be selected by the Board. Indemnitee may, within ten (10) days after such written notice of selection has been given, deliver to the Company a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of **"Independent Counsel"** as defined in <u>Section 13</u> of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to <u>Section 6(a)</u> hereof, no Independent Counsel or other reviewing party set forth in <u>Section 6(b)</u> shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other court of competent jurisdiction for resolution of any objection which shall have been made by Indemnitee to the Company's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under <u>Section 6(b)</u> hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to <u>Section 6(b)</u> hereof, and the Company shall pay all reasonable fees and expenses incurred by the Company and Indemnitee incident to the procedures of this <u>Section 6(c)</u>, regardless of the manner in which such Independent Counsel was selected or appointed.

&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) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company (including by its managers, Disinterested Managers, or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its managers or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&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) Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Enterprise (as hereinafter defined), including financial statements, or on information supplied to Indemnitee by other managers or the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. The provisions of this <u>Section 6(e)</u> shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. In addition, the knowledge and/or actions, or failure to act, of any manager, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this <u>Section 6(e)</u> are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

&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 the person, persons or entity empowered or selected under <u>Section 6</u> to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; <u>provided</u>, <u>however</u>, that such sixty (60) day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and <u>provided further</u>, that the foregoing provisions of this <u>Section 6(f)</u> shall not apply if the determination of entitlement to indemnification is to be made by the members of the Company pursuant to <u>Section 6(b)</u> of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination, the Board or, if appropriate, the Disinterested Managers, resolve to submit such determination to the members of the Company for their consideration at an annual meeting of the members of the Company to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of members is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.

&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) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent Counsel, member of the Board or member of the Company shall act reasonably and in good faith in making a determination regarding Indemnitee's entitlement to indemnification under this Agreement. Any costs or expenses (including attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless 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;(h) In the event that any Proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such Proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such Proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Remedies of Indemnitee</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) In the event that (i) a determination is made pursuant to <u>Section 6</u> of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to <u>Section 5</u> of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to <u>Section 6(b)</u> of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to <u>Sections 1(c)</u>, <u>1(e),</u> 4 or the last sentence of <u>Section 6(g)</u> of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made pursuant to <u>Sections 1(a)</u>, <u>1(b)</u> and 2 of this Agreement within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to <u>Section</u> 6 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent jurisdiction, of Indemnitee's entitlement to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within one hundred eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this <u>Section (a)</u>. The Company shall not oppose Indemnitee's right to seek any such adjudication.

&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 that a determination shall have been made pursuant to <u>Section 6(b)</u> of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this <u>Section 7</u> shall be conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under <u>Section 6(b)</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;(c) If a determination is made pursuant to <u>Section 6(b)</u> of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this <u>Section 7</u>, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law.

&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) In the event that Indemnitee, pursuant to this <u>Section 7</u>, seeks a judicial adjudication of Indemnitee's rights under, or to recover damages for breach of, this Agreement, or to recover under any directors' and officers' liability insurance policies or similar policies maintained by the Company, the Company shall pay on Indemnitee's behalf, in advance, any and all expenses (of the types described in the definition of Expenses in <u>Section 13</u> of this Agreement) actually and reasonably incurred by Indemnitee in such judicial adjudication, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance recovery.

&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) The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this <u>Section 7</u> that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement. It is the intent of the Company that, to the fullest extent permitted by law, Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company, if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.

&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) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification; Subrogation</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) The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Operating Agreement, any agreement, a vote of members or managers of the Company, a resolution of members or managers of the Company, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the Act or other applicable Delaware law, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Operating Agreement and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

&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) To the extent that the Company maintains an insurance policy or policies providing liability insurance for managers, directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any manager, director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has directors' and officers' liability insurance or similar insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

&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) The Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided by the Appointing Member. The Company hereby agrees (i) that it is the indemnitor of first resort *(i.e.,* its obligations to Indemnitee are primary and any obligation of the Appointing Member to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the Operating Agreement (or any other agreement between the Company and Indemnitee or any the Appointing Member), without regard to any rights Indemnitee may have against the Appointing Member, and (iii) that it irrevocably waives, relinquishes and releases the Appointing Member from any and all claims against the Appointing Member for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Appointing Member on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Appointing Member shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company. The Company and Indemnitee agree that the Appointing Member is an express third-party beneficiary of the terms of this <u>Section 8(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;(d) Except as provided in <u>Section 8(c)</u> above, in the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee (other than against the Appointing Member), who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such 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;(e) Except as provided in <u>Section 8(c)</u> above, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement 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;(f) Except as provided in <u>Section 8(c)</u> above, the Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a manager, director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Exception to Right of Indemnification</u>. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

&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) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision, <u>provided</u>, that the foregoing shall not affect the rights of Indemnitee or the Appointing Member set forth in <u>Section 8(c)</u> above; 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;(b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended (the **"Exchange Act"),** or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002, as amended (the **"Sarbanes-Oxley Act"),** or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; 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;(c) except as provided in <u>Section 7(e)</u> of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its managers, directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, (ii) such payment arises in connection with any mandatory counterclaim or cross claim brought or raised by Indemnitee in any Proceeding (or any part of any Proceeding) or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Duration of Agreement</u>. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer or manager of the Company (or is or was serving at the request of the Company as a manager, director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any proceeding commenced under <u>Section 9</u> hereof) by reason of Indemnitee's Corporate Status, whether or not Indemnitee is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Security</u>. To the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security to Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>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) The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce Indemnitee to serve as a manager or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a manager or officer of the Company.

&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) This Agreement and the Operating Agreement constitute the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

&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) The Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting Indemnitee's rights to receive advancement of Expenses under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Definitions</u>. For purposes 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;(a) **"Corporate Status"** describes the status of a person who is or was a manager, officer, employee, agent or fiduciary of the Company or its subsidiaries, or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the request of the Company.

&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) **"Disinterested Manager"** means a manager of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&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) **"Enterprise"** shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the request of the Company as a manager, director, officer, employee, agent or fiduciary.

&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) **"Expenses"** shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, (ii) Expenses incurred in connection with recovery under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee is ultimately determined to be entitled to such indemnification, advancement or Expenses or insurance recovery, as the case may be, and (iii) for purposes of <u>Section 7(e)</u> only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, the Operating Agreement or under any directors' and officers' liability insurance policies maintained by the Company, by litigation or otherwise. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&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) **"Independent Counsel"** means a law firm, or a member of a law firm, that is experienced in matters of corporation and limited liability company law and neither at present is, nor in the past five (5) years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

&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) **"Proceeding"** includes any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of Indemnitee's Corporate Status, by reason of any action taken by Indemnitee, or of any inaction on Indemnitee's part while acting in Indemnitee's Corporate Status; in each case whether or not Indemnitee is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to <u>Section 7</u> of this Agreement to enforce Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. Further, the invalidity or unenforceability of any provision hereof as to either Indemnitee or Appointing Member shall in no way affect the validity or enforceability of any provision hereof as to the other. Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee and Appointing Member indemnification rights to the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict, and all other provisions hereof shall remain in full force and effect in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Modification and Waiver</u>. No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Notice By Indemnitee</u>. Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder. The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Notices</u>. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To Indemnitee at the address set forth below Indemnitee's
signature hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the Company at:

222 Spirits Holdco, LLC

927 S. Santa Fe Ave

Los Angeles, CA 90021

Attention: Mark Thomas Lynn

Email: mark@amass.com

With a copy (which shall not constitute notice) to

Giannuzzi Lewendon, LLP

411 West 14<sup>th</sup> Street, 4<sup>th</sup> Floor

10014, New York, New York

Attention: Ryan Lewendon

Email: ryan@gllaw.us

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.,* www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Headings</u>. The headings of the paragraphs and sections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Governing Law and Consent to Jurisdiction</u>. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the **"Delaware Court"),** and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

***SIGNATURE PAGE TO FOLLOW***

IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the Effective Date.

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| |
|:---|
| **COMPANY** |
| **222 SPIRITS HOLDCO, LLC** |
| By: |
| Name: |
| Title: |

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*Signature page to Indemnification Agreement*

IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the Effective Date.

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| |
|:---|
| **INDEMNITEE** |
| By: |
| Name: |
| Address: |
| Email: |

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*Signature page to Indemnification Agreement*

**EXHIBIT D**

FORM OF MASTER SERVICES AGREEMENT

(attached)

***Execution Version***

**<u>AMASS BRANDS INC</u>**

**<u>EXCLUSIVE MASTER SERVICES AGREEMENT</u>**

This **EXCLUSIVE MASTER SERVICES AGREEMENT** (this **"Agreement")** is made and entered into effective as of this 19th day of September, 2024 (the **"Effective Date"),** by and between 222 SPIRITS HOLDCO, LLC, a Delaware limited liability company (the **"Company")** and AMASS BRANDS INC, a Delaware corporation **("Service Provider").**

**<u>RECITALS</u>**

**WHEREAS,** the Service Provider is engaged in the business of creating, commercializing, incubating, selling and building alcohol beverage products;

**WHEREAS,** the Company is engaged in the marketing and selling of alcoholic beverages under the "Calirosa" trade name (the **"Brand");**

**WHEREAS,** contemporaneous with the execution of this Agreement, the parties entered into (i) a Unit Purchase Agreement whereby Service Provider purchased a majority ownership stake in the Company (the **"Purchase Transaction"),** and (ii) a Third Amended and Restated Limited Liability Agreement of the Company (the **"Operating Agreement"),** which, among other things, sets forth the rights and privileges of the parties; and

**WHEREAS,** as a condition to consummating the Purchase Transaction, the parties have agreed to enter into this Agreement pursuant to which Service Provider will, among other things, manage all day-to- day responsibilities and operations of the Company's business, including compliance, accounting, fundraising, sourcing, production, marketing, consulting and other services and/or functions.

**NOW, THEREFORE,** based upon the foregoing recitals, and in consideration of the mutual promises, covenants and agreements set forth below, the Company and Service Provider hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. GENERAL 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;**1.1 <u>General Scope & Activities</u>.** Service Provider will serve as the day-to-day operations manager for the Company by acting as the sole and exclusive worldwide (the **"Territory")** provider of the Services (as defined below) to the Company related to all the production, distribution and sale of the Company's alcoholic beverage products under the Brand as of the Effective Date (the **"Products").** In the event that the Company launches and/or introduces new alcoholic beverage products and/or SKUs under the Brand in the Territory during the Term, such new products and/or SKUs shall automatically be deemed "Products". Subject to obtaining the Company's prior written consent in each instance, the Service Provider may engage other persons or firms to perform services or work related to the Services provided hereunder (each, a **"Subcontractor"),** unless (a) such engagement does not conflict with this Agreement, (b) Service Provider exercises the same diligence and care in the selection and engagement of Subcontractors as it uses in the selection and engagement of subcontractors for its own business and (c) Service Provider will remain solely responsible to the Company for the performance of its obligations pursuant to and in accordance with the terms and conditions of this Agreement, and acts or omissions of the Subcontractors in the performance of Service Provider's obligations hereunder shall be deemed to be acts or omissions of Service Provider. Service Provider shall ensure that the work product and/or services that Subcontractors provide seamlessly integrate with the Services provided by Service Provider.

107651260.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 <u>Services</u>.** Subject to <u>Section 8.8,</u> Service Provider will manage all day-to-day responsibilities and operations of the Company's business, which shall include the following (collectively, the **"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;**(a)** **Accounting, FP&A 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;**i.** Provide ongoing management of accounts receivable and payables;

&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.** Provide bookkeeping and recording of financial transactions,
such as sales, purchases, income, and payments, in an organized manner such that financial data is accurately recorded and classified;

&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.** Prepare the Company's financial statements for monthly
close and review;

&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.** Develop annual budgets (subject to approval of the Board
of Managers of the Company in accordance with the terms of the Operating Agreement) and long-term financial forecasts based on historical
data, market trends, and cash planning and strategic goals;

&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.** Ensure that the Company complies with applicable tax laws
by preparing and filing tax returns, calculating tax liabilities, and advising on tax planning strategies, to minimize tax expenses;
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;**vi.** Identify fundraising needs and objectives of the Company
and develop fundraising strategies which may include specific goals, target investors, fundraising methods, timelines, and resource allocation.

&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)** **Operations 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;**i.** Develop production plans and schedules based on the Company's
demands/forecasts, manufacturer's production capacity, and resource availability, and create production schedules for the Products;

&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.** Work closely with the Company's suppliers to procure
and source raw materials, packaging supplies, and other components needed for Product production, and monitor supplier performance;

&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.** Provide marketing collateral logistics; 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;**iv.** Manage research and development and new product development.

&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)** **Compliance 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;**i.** Manage, maintain and monitor all licensing and permit requirements,
including manufacturing licenses, distribution licenses, retail licenses, and special permits for specific activities;

&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.** Manage all of the Brand registrations, trademark applications
and other intellectual property 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;**iii.** Manage and file all excise tax filings applicable to the
Products; 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;**iv.** Manage all Alcohol and Tobacco Tax and Trade Bureau requirements
for the Product formula(s) and label approvals, including requirements for alcohol content, health warnings, ingredient statements, and
branding.

&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)** **Marketing and Sales 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;**i.** Manage shared and dedicated marketing resources for the Brand;

&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.** Develop and manage all Brand and trade 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;**iii.** Maintain the Company's website (https://calirosatequila.com/);

&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.** Develop and implement annual marketing plans;

&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.** Manage all events and activations with Customers;

&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.** Manage all influencer, affiliate, Brand ambassador and similar
partner relationships;

&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.** Manage all social media accounts and content calendar and
any obligations in connection with the same from the Company's talent team;

&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.** Manage all paid advertising campaigns, digital and out of
home;

&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.** Manage all in-store demos and on-premise activations;

&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.** Manage public relations;

&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.** Provide distributor management, including setting distributor
goals and incentives, and Product pricing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xii.** Develop and implement complete commercial strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xiii.** Manage the Company's confidential information, including
its lists of suppliers, accounts, customers and distributors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xiv.** Represent the Brand at industry trade shows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xv.** Manage scan-back and rebate programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xvi.** Set and manage all national account programming;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xvii.** Manage POS implementation across retailers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xviii.** Determine trade spend and communicate and monitor trade spend
investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xix.** Determine the price and terms for sale of all Products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xx.** Develop annual sales plan for each calendar year, including
expansion targets, Brand marketing plans, sales forecasts, POS plans, events, sampling plans; 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;**xxi.** Manage award entries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 <u>Staff</u>.** At its expense and subject to <u>Section 1.1,</u> Service Provider will employ and deploy sufficient numbers of individuals (the **"Service Provider Staff")** with appropriate skills and experience to comply with its obligations as set forth in this Agreement. Service Provider will at all times remain liable for all Service Provider Staff performing the Services, and Service Provider will perform all of the responsibilities of an employer under applicable laws and regulations, as applicable. All payroll, benefits, taxes, insurance, workers' compensation, auto allowance, communication costs and any other expenses relating to the Service Provider Staff will be processed and paid directly by Service Provider. If the Company reasonably requests that any Service Provider Staff be removed from the provision of services in support of this Agreement for lawful reasons, then Service Provider will promptly remove such individual and assign a replacement with appropriate skills and experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Approvals</u>.** Service Provider shall not enter into any contract, agreement or arrangement on behalf of or in the name of the Company outside the ordinary course of business or not otherwise contemplated by the Company's annual budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 <u>Signing Authorities</u>.** In order to facilitate Service Provider's performance of the Services and subject to the approval rights of the Company set forth in this Agreement and the Operating Agreement, the Company shall appoint certain personnel of Service Provider as authorized signatories of the Company who may enter into appropriate contractual obligations with respect to the Brand as an agent of the Company in the name and on behalf of the Company (except with respect to contracts the Company has notified Service Provider that the Company will enter into directly). Except as otherwise approved by the Company, all contracts with third parties for services that will be used exclusively for the benefit of the Company will be in the name of the Company. If Service Provider enters into any contracts that will be used exclusively to support the Brand and no other "AMASS" or third party brand or product, Service Provider will use commercially reasonable efforts to negotiate the right to assign such contract to the Company upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>PRODUCTS AND SALES PROCEDURE</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;**2.1 <u>Orders to be Accepted by the Company</u>.** Service Provider shall accept orders for the purchase of the Products from distributors, wholesalers, retailers (direct shipment) and other customers (collectively, **"Customers"** and such orders, **"Orders"),** and Service Provider shall promptly submit the Orders to the Company and the Company shall promptly accept all such Orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 <u>Order to Cash</u>.** The Company, either directly or through its affiliates or subsidiaries, will invoice Customers for purchases of Products. All trade spend reimbursements will be processed and paid by the Company to Customers in accordance with the Company's approval processes. As requested by the Company, Service Provider will support the Company in claims/deduction resolution and aged accounts receivable matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 <u>Sales Contracts</u>.** All Orders and related purchase and sales agreements will be between the Company (or its affiliates or subsidiaries) and the applicable Customers. As requested by the Company, Service Provider will use commercially reasonable efforts to support the Company in the development, structuring, and negotiation of Orders and related purchase and sales agreements, and communications regarding the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 <u>Marketing Materials</u>.** The Company shall, at its own expense, furnish Service Provider with a reasonable supply of literature and samples to be used by Service Provider in connection with its marketing and sales efforts. Service Provider may develop and purchase its own advertising of the Products in accordance with <u>Section 4</u>. The Company will provide all necessary consents or authorizations for the printing of trade names and trademarks for use by Service Provider in the ordinary course of Service Provider's performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>COMPENSATION</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;**3.1 <u>Management Fee</u>.** In exchange for the Services, the Company will pay Service Provider an aggregate monthly management fee in the amount of Fourteen Thousand Five Hundred Dollars ($14,500.00) for the general and administrative expenses to be incurred by Service Provider in the provision of the Services (the **"Management Fee").** The Company shall pay the Management Fee within five (5) business days of the end of each month. Notwithstanding the foregoing, the Management Fee for the month of September 2024 shall be $5,315.70.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 <u>Office Fee</u>.** The Company will pay Service Provider an aggregate monthly office and utility fee equal to Two Thousand Five Hundred Dollars ($2,500.00), which is an allocation of Service Provider's expenses for office space and utilities used in connection with the provision of the Services (the **"Office Fee").** The Company shall pay the Office Fee within five (5) business days of the end of each month. Notwithstanding the foregoing, the Office Fee for the month of September 2024 shall be $916.50.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 <u>Revenue from the Products</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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The Company is and will be the sole and exclusive owner of all revenue with respect to the sale of the Products (the **"Product Revenue").** In consideration of Service Provider's sales Services, and in addition to the Management Fee and Office Fee, the Company shall pay Service Provider a monthly sales commission equal to (i) five percent (5%) of all Net Sales (as hereinafter defined) for all Products sold in a month *plus* (ii) Ninety Dollars ($90.00) per Case (as hereinafter defined) of Product sold by Service Provider to on-premises Customers in such month (the **"Per Case Amount")** (the amounts described in subsections (i) and (ii) together, the **"Commission").** For purposes hereof, (x) **"Case"** means nine (9) liter case or case equivalent, (y) **"Net Sales"** means the total price at which an Order is invoiced to a Customer, excluding sales, use, excise and similar taxes, tariffs, duties and export fees, and less all Required Deductions, and (z) **"Required Deductions"** means (a) price reductions offered by Service Provider to an account that are not approved by the Company, (b) discounts, rebates, and/or advertising allowances, and (c) freight charges. Notwithstanding anything to the contrary in this Section 3.3(a), Cases sold to on-premises Customers for which the Company received the Per Case Amount shall not be included in the calculation of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Within twenty (20) days after the end of each month, Service Provider shall (i) remit to the Company all of the Product Revenue received by Service Provider during such month, together with an accounting of such Product Revenue and Net Sales received during such month and the corresponding Commission amount due and (ii) an invoice for such Commission amount. The Company shall pay such Commission amounts within five (5) days following receipt of the applicable invoice, provided that, the Company may withhold payment of amounts disputed in good faith pending resolution of the dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Service Provider shall keep complete and accurate books and records with respect to the Products and its performance of its obligations under this Agreement, and such books and records shall be kept separate from any books and records not relating solely to the Products or this Agreement. Service Provider shall make such books and records available during normal business hours for inspection and audit by the Company (or its authorized representative), who may take copies of or extracts from the same. If any such inspection or audit shows that any monthly Commission payment (i) exceeded the amount actually due to Service Provider pursuant to <u>Section 3.3(a),</u> Service Provider will pay such excess amount to the Company with ten (10) days following the discovery of the overpayment or (ii) was less than the amount actually due to Service Provider pursuant to <u>Section 3.3(a),</u> the Company will pay such the additional amount due to Service Provider within ten (10) days following the discovery of the underpayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 <u>Expenses</u>.** The Company shall reimburse Service Provider for reasonable expenses incurred by Services Provider in connection with its provision of the Services which may include (i) fees for travel, meals, lodging and any third-party contractors' services for any Company specific projects, and all Company specific sales and marketing presentations or tradeshows and (ii) the actual cost of expenses reasonably incurred by Service Provider in the performance of its obligations under this Agreement (e.g., legal costs associated with enforcing the Company's trademark rights pursuant to <u>Section 4.2)</u> . Service Provider shall invoice the Company for such expenses in arrears at the end of each month. The Company shall pay such expenses within five (5) business days following receipt of the invoice, provided that, the Company may withhold payment of amounts disputed in good faith pending resolution of the dispute. For the avoidance of doubt, the terms of this <u>Section 3.4</u> shall not apply to the Management Fee and the Office Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>TRADEMARKS</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;**4.1 <u>Ownership</u>.** As between Service Provider and the Company, the Company is and shall be the sole and exclusive owner of all right, title and interest in and to all Company Intellectual Property and Deliverables, including all Intellectual Property rights therein. Service Provider agrees, and will cause its personnel to agree, that with respect to any Deliverables that may qualify as "work made for hire" as defined in 17 U.S.C. § 101, such Deliverables are hereby deemed a "work made for hire" for the Company. To the extent that any of the Deliverables do not constitute a "work made for hire," Service Provider hereby irrevocably assigns, and will cause each of its personnel to irrevocably assign to the Company, in each case without additional consideration, all right, title and interest throughout the world in and to the Deliverables, including all Intellectual Property rights therein. Service Provider will cause its personnel to irrevocably waive, to the extent permitted by applicable law, any and all claims Service Provider's personnel may now or hereafter have in any jurisdiction to so-called "moral rights" or rights of droit moral with respect to the Deliverables. Upon the request of the Company, Service Provider will, and will cause its personnel to, promptly take such further actions, including execution and delivery of all appropriate instruments of conveyance, as may be necessary to assist the Company to prosecute, register, perfect or record its rights in or to any Deliverables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Company Intellectual Property"** means all Intellectual Property owned by the Company as of the Effective Date or later developed or acquired by the Company, including the trademarks and trade names in <u>Schedule A</u> and all Intellectual Property in and to the Deliverables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Deliverables"** means all work product developed by or on behalf of Service Provider in the course of performing its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Intellectual Property"** means all past, present and future rights of the following types, which may exist or be created under the laws of any jurisdiction in the world: (i) patents, patent disclosures and inventions (whether patentable or not); (ii) trademarks, service marks, trade dress, trade names, logos, corporate names and domain names, together with all of the goodwill associated therewith; (iii) copyrights and copyrightable works (including computer programs), mask works, and rights in databases; (iv) trade secrets, know-how and similar confidential information, including proprietary recipes, formulas and blends; and (v) all other intellectual property rights, in each case of (i) through (v), whether registered or unregistered, including all applications for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 <u>Trademark Compliance and Enforcement</u>.** During the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** as between Service Provider and the Company, Service Provider shall be responsible for protecting and maintaining the Company Intellectual Property, including deciding whether and how to file and prosecute applications for registration, whether to abandon prosecution of such applications and whether to pay or not pay any maintenance or renewal 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;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Service Provider shall not take any actions inconsistent with the Company's ownership of the Company Intellectual Property and shall not claim adversely to the Company, or assist any third party attempting to claim adversely to the Company, with regards to such ownership. Service Provider will not challenge, in any country or jurisdiction, (i) the Company's title to or ownership of the Company Intellectual Property, (ii) any issuance or application of any Company Intellectual Property, or (iii) the validity of any Company Intellectual Property. Service Provider agrees that all rights, interests and goodwill associated with any Intellectual Property related to the Products will inure to the benefit and be the property of the Company or other trademark owners, as applicable; 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;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Service Provider shall, in its discretion or at the Company's request, and at the Company's cost, enforce and pursue any claims related to the infringement, misappropriation or other violation of the Company Intellectual Property in any jurisdictions. The Company shall, at its own cost, reasonably assist and cooperate with Service Provider in any matter involving such infringement, misappropriation or other violation and shall make available to Service Provider all records and other information pertinent to such actions, as reasonably necessary. The Company shall be entitled to all proceeds from any enforcement action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 <u>Use of Trademarks and Trade Names</u>.** Service Provider is hereby granted a limited, non-exclusive, non-assignable and non-transferable license under the trademarks and trade names in <u>Schedule A</u> in connection with the marketing, sale and distribution of the Products hereunder. However, as between Service Provider and the Company, trademarks and trade names shall remain the sole and exclusive property of the Company. The Company reserves all rights, including the right to license the use of its trade names, designs, brand names, labels, and promotional slogans or trademarks on merchandise, goods, items or services, including the Products sold and distributed in connection with 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;**4.4 <u>Restrictions on Use</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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Service Provider shall not use any of the Company Intellectual Property in any domain name, Uniform Resource Locator (URL), or username, or handle in any social media platform, without the Company'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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Service Provider shall include an IP Legal Notice in the form set forth below, as may be amended from time to time by the Company in its sole discretion: "The trademark [INSERT MARK] are owned by 222 Spirits Holdco, LLC or its affiliate and is used under license" **(IP Legal Notice).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Service Provider agrees to use the Company Intellectual Property solely for the purpose of performing the Services and in accordance with the Company's instructions. Service Provider shall use such Company Intellectual Property in a customary and reasonable manner and shall not exploit the Company Intellectual Property for any purpose other than those explicitly authorized by this Agreement or by the Company in advance and 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;**4.5 <u>Samples and Audits</u>.** Upon the Company's reasonable advanced written request, Service Provider, at the Company's expense, shall deliver to the Company samples of reasonable quantities and selection of Products or marketing materials produced or manufactured by or on behalf of Service Provider hereunder as requested by the Company for quality control purposes and to ensure compliance with the Trademark Usage Standards. Notwithstanding such right of inspection, nothing herein shall relieve Service Provider of any liability to the Company for Service Provider's nonconformance with any applicable laws or standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>INDEMNIFICATION</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;**5.1** Service Provider shall defend the Company and its affiliates, subsidiaries, and their officers, directors, managers, employees, agents and other representatives (each, a **"Company Indemnitee")** against claims, lawsuits and other actions **("Claims"),** and shall indemnify and hold harmless the Company Indemnitees from and against any and all liabilities, damages, judgments, losses and expenses, including reasonable attorneys' fees, court costs, and disbursements (collectively, **"Losses")** incurred by the Company Indemnitees as a result of such Claims, arising from: (i) Service Provider's material breach of this Agreement, (ii) Service Provider's fraudulent actions, gross negligence or willful misconduct or (iii) any unlawful act or omission of Service Provider or any of its affiliates or representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2** The Company shall defend Service Provider and its affiliates, subsidiaries, and their officers, directors, managers, employees, agents and other representatives (each, a **"Service Provider Indemnitee")** against Claims, and shall indemnify and hold harmless the Service Provider Indemnitees from and against any and all Losses incurred by the Service Provider Indemnitees as a result of such Claims, arising from: (i) the Company's material breach of this Agreement, (ii) the Company's fraudulent actions, gross negligence or willful misconduct or (iii) any unlawful act or omission of the Company or any of its affiliates or representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3** Promptly after receipt by any entity entitled to indemnification under this <u>Section</u> 5 of notice of the assertion or the commencement of any action, proceeding or other claim by a third party in respect of which the indemnitee will seek indemnification, the indemnitee will notify the indemnitor of such claim in writing. No failure to so notify an indemnitor will relieve it of its obligations under this Agreement except to the extent that it can demonstrate damages attributable to such failure. Within fifteen (15) days following receipt of notice from the indemnitee relating to any claim, but no later than ten (10) days before the date on which any response to a complaint or summons is due, the indemnitor will notify the indemnitee in writing if the indemnitor acknowledges its indemnification obligation and elects to assume control of the defense and settlement of that claim (a **"Notice of Election").** If the indemnitor delivers a Notice of Election relating to any claim within the required notice period, the indemnitor will be entitled to have sole control over the defense and settlement of such claim, provided that (a) the indemnitee will be entitled to participate in the defense of such claim and to employ counsel at its own expense to assist in the handling of such claim; and (b) the indemnitor will obtain the prior written approval of the indemnitee before entering into any settlement of such claim or ceasing to defend against such claim. If the indemnitor does not deliver a Notice of Election relating to a claim, or otherwise fails to acknowledge its indemnification obligation or to assume the defense of a claim, within the required notice period, the indemnitee will have the right to defend the claim in such manner as it may deem appropriate, at the cost and expense of the indemnitor, including payment of any judgment or award and the costs of settlement or compromise of the claim. The indemnitor will promptly reimburse the indemnitee for all such costs and expenses, including payment of any judgment or award and the costs of settlement or compromise of the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>LIMITATION OF LIABILITY</u>**

EXCEPT FOR LOSSES RESULTING FROM A PARTY'S UNLAWFUL ACTS OR OMISSIONS, FRAUD, WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, THAT ARE THE SUBJECT OF INDEMNIFICATION PURSUANT TO <u>SECTION 5,</u> RESULTING FROM A PARTY'S BREACH OF THE CONFIDENTIALITY OBLIGATIONS IN <u>SECTION 13,</u> OR RESULTING FROM SERVICE PROVIDER'S INFRINGEMENT OF COMPANY INTELLECTUAL PROPERTY, (i) IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES AND (ii) EACH PARTY'S AGGREGATE LIABILITY TO THE OTHER PARTY ARISING FROM THIS AGREEMENT WHETHER BASED UPON WARRANTY, CONTRACT, TORT, OR OTHERWISE, SHALL NOT EXCEED THE AMOUNTS PAID OR PAYABLE TO SERVICE PROVIDER PURSUANT TO THIS AGREEMENT IN THE PRECEDING TWELVE (12) MONTHS FROM THE DATE OF THE EVENT GIVING RISE TO LIABILITY OR, IF AN EVENT GIVING RISE TO LIABILITY OCCURS DURING THE FIRST TWELVE (12) MONTHS OF THE TERM, AN AMOUNT EQUAL TO THE AVERAGE MONTHLY AMOUNTS PAID OR PAYABLE TO SERVICE PROVIDER HEREUNDER SINCE THE EFFECTIVE DATE, MULTIPLIED BY TWELVE (12).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <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;**7.1 <u>Term</u>.** The term of the Agreement will begin on the Effective Date and, subject to <u>Section 7.2,</u> shall terminate automatically upon a Sale of the Company (such time period, the **"Term");** <u>provided, however,</u> if the acquiror of the Company in connection with such Sale of the Company (such acquiror, the **"Acquiror")** reasonably requests, in its sole discretion, that the Service Provider provide Transitional Services upon the termination of this Agreement, the Service Provider shall provide such services for a period of six (6) months following the date of termination of this Agreement. **"Sale"** means (a) the sale, lease, exclusive license or other disposition, in one or a series of related transactions, of all or substantially all of the assets of the Company constituting the Brand or the Company or (b) the consummation of any merger, consolidation, sale of equity or other transaction, or series of related transactions, pursuant to which the direct or indirect owners of the outstanding equity interests of the Company immediately prior to the consummation of such merger, consolidation, sale of equity or other transaction or series of related transactions do not, immediately following such consummation, directly or indirectly own a majority of the outstanding equity interests in the entity resulting from or surviving such merger, consolidation or other transaction or series of related transactions or, in the case of a sale of equity, in the Company. **"Transitional Services"** means all services, systems, functions, and responsibilities provided by the Service Provider to the Company in the ordinary course of business during the twelve (12) month period immediately prior to a Sale of the Company that are reasonably requested by the Acquiror to operate the Company in the manner that the Company had been operated as of the date of the Sale of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 <u>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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** If a party shall at any time commits a material breach of this Agreement and such party fails to remedy such breach within (i) ten (10) business days after notice thereof by the other party with respect to a breach of payment obligations hereunder, and (ii) thirty (30) days after notice thereof by the other party in the event of any other breach hereunder, the non-breaching party may at its option, and in addition to any other remedies that it may be entitled to, terminate this Agreement by written notice; provided that, if, in the event of a non-monetary breach, during the cure period, the breaching party has commenced remedial action, such cure period shall be extended for an additional sixty (60) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 of a Change of Control of a party, the other party may terminate this Agreement upon notice. For the purposes hereof, a **"Change of Control"** means a sale of securities or other ownership interest by a party or by one or more of the equityholders (or holders of other ownership interests) of a party, or a merger, consolidation or similar transaction (or series of related transactions) involving party, the result of which is that those persons who held 100% of the securities or other ownership interest of such party (on a fully diluted basis) immediately prior to such transaction do not hold more than 50% of the securities or other ownership interest of such party or the surviving or resulting entity after giving effect to such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3 <u>Effect of Termination</u>.** Upon expiration or termination, no termination fees or similar payments will be paid by or to either party except as specifically designated in this Agreement. Except as may be specified otherwise in this Agreement, the termination of this Agreement by either party shall not be deemed a waiver of any other rights or remedies available to such party at law or in equity. Upon expiration or termination of this Agreement, all undisputed amounts owed to Service Provider by the Company under this Agreement shall promptly be paid to Service Provider, in any case, in accordance with <u>Section 3</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;**7.4 <u>Disengagement</u>.** If requested by the Company, upon termination of this Agreement, Service Provider shall perform all functions reasonably requested by the Company to assist the Company in effecting a complete, orderly and timely transition of the Services to the Company or its designee (collectively, **"Disengagement Assistance")** for a period of up to six (6) months (the **"Disengagement Period").** For clarity, for so long as Service Provider provides Disengagement Assistance, Service Provider shall be compensated in accordance with <u>Section 3</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;**7.5 <u>Non-Solicit</u>.** During the Term and for a period of one (1) year following the termination hereof, the Company shall not solicit or attempt to solicit, directly or indirectly, any of Service Provider's employees, directors, officers or consultants for any business or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6 <u>Assignment of Contracts</u>.** At the Company's election, upon termination of this Agreement, Service Provider shall promptly assign to the Company any contracts that Service Provider has directly entered into exclusively for the benefit of the Company to the extent permissible under such contracts. For any such contracts that cannot be assigned to the Company, Service Provider will use commercially reasonable efforts, upon the Company's request and at the Company's expense, assist the Company with entering into new contracts to obtain the services or benefits under the non-assignable contracts on substantially the same 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;**7.7 <u>Survival</u>.** <u>Section 3.3(c), Section 4, Section 5, Section 6, Section 7.3,</u> this <u>Section 7.4, Section 7.5, Section 7.6, Section 11, Section 12,</u> and any provision of this Agreement which contemplates performance or observance subsequent to termination or expiration of this Agreement, will survive termination or expiration of this Agreement and continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS OF SERVICE PROVIDER</u>**

Service Provider represents and warrants that, with respect to statements applicable to the time period prior to and concurrent with the Effective Date, such following statements are true as of the Effective Date and Service Provider covenants that, with respect to statements applicable to the time period following the Effective Date, such statements shall remain true for the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** Service Provider has, and will maintain, all necessary approvals, licenses, permits, or other authorizations to operate its business in compliance with applicable laws, rules, health codes, and regulations that affect its business or its performance of the Services (collectively, the **"Regulatory Requirements");**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** Service Provider will comply with all laws and regulations applicable to its performance of the 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;**8.3** Service Provider is not in violation of any laws or regulations which apply to this Agreement or the Services provided hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4** Service Provider will cooperate with the Company in all aspects of the provision of the Services set forth hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5** Service Provider has and will maintain the full right, power, and authority to enter into this Agreement and be bound by the terms of this Agreement without the consent of any other person or entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6** The execution and delivery of this Agreement and the performance by Service Provider of its obligations pursuant to this Agreement do not and will not constitute a breach of or a default under any other agreement or obligation applicable to Service Provider;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7** Upon execution and delivery of this Agreement, this Agreement will constitute the valid and binding obligation of Service Provider;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8** Service Provider will not take any action on behalf of the Company that would reasonably be expected to result in the Company's breach of any other agreements between Service Provider and the Company **("Other Agreements");** 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;**8.9** Service Provider is and will remain a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS OF THE COMPANY</u>**

The Company represents and warrants that, with respect to statements applicable to the time period prior to and concurrent with the Effective Date, such following statements are true as of the Effective Date and the Company covenants that, with respect to statements applicable to the time period following the Effective Date, such statements shall remain true for the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** The Company is, and for the past five (5) years has been, in compliance with all applicable laws, orders or permits applicable to its business, assets, properties and operations and has and maintains in good standing all licenses and permits required to operate its business as currently contemplated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** The Company will in good faith cooperate with respect to Service Provider's efforts to obtain and maintain all Regulatory Requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3** The Company has the full right, power, and authority to enter into this Agreement and be bound by the terms of this Agreement without the consent of any other person or entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4** The Company is a limited liability company duly organized, validly existing, and in good standing under the laws of the state of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5** The execution and delivery of this Agreement and the performance by the Company of its obligations pursuant to this Agreement do not and will not constitute a breach of or a default under any other agreement or obligation applicable to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6** Upon execution and delivery of this Agreement, this Agreement will constitute the valid and binding obligation of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7** The Company is not in violation of any laws or regulations which apply to the Company's obligations 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;**9.8** The Company shall promptly provide to Service Provider any and all notices of deficiency from any governmental authority relating to this Agreement or the Services provided hereunder, and shall provide the Service Provider with any and all communications between it and any governmental authority relating to this Agreement or the Services provided hereunder; 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;**9.9** The Company owns, possesses, has developed, or has acquired on commercially reasonable terms, legal rights to all of the Company's intellectual property, including patents, utility models, trademarks and tradenames (including those set forth on <u>Schedule A)</u>, copyrights, trade secrets, and domain names, sufficient to carry out its business as now conducted. The Company has not received any communications alleging that the Company has violated, or by conducting its business, would violate any of the patents, trademarks, service marks, tradenames, copyrights, trade secrets, mask works or other proprietary rights or processes of any third party. To the Company's knowledge, by conducting the Company's business as currently conducted or as presently proposed, the Company would not infringe or violate any of the intellectual property rights of a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>RECALL</u>**

If any governmental authority issues a recall or takes similar action in connection with the Products, or if Service Provider determines that an event, incident or circumstance has occurred which may require a recall or market withdrawal (collectively, a **"Recall"),** Service Provider shall promptly advise the Company of such circumstances. Service Provider shall have the right to control the arrangement and implementation of any Recall. Service Provider may, without the prior written approval of the Company, make such press releases or other public statements as Service Provider reasonably determines are necessary to protect the public from harm, comply with any requirement of law or comply with the request of any applicable governmental authority. The Company shall fully cooperate with and, at Service Provider's request, fully assist Service Provider in investigating any such Recall.

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

Service Provider will, during the Term and for such additional time periods as are specified below with respect to particular coverages, have and maintain in force, at its sole cost and expense, reasonable insurance coverage, naming the Company as an additional insured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <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;**12.1 <u>Independent Contractor Status</u>.** Service Provider is an independent contractor performing a service to the Company and has exclusive control over the details and means of performing its obligations under this Agreement, and nothing herein is intended to constitute Service Provider as a partner, employee or joint venturer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2 <u>Interpretation</u>.** References to and the use of the word "include" and its derivatives (such as "including" and "includes") means "include without limitation." References to and the use of the word "days" means calendar days unless business days is specified. The section headings used in this Agreement are for reference and convenience only and will not enter into the interpretation 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;**12.3 <u>Non-Exclusive Relationship</u>.** Subject to the restrictions set forth in the Operating Agreement, the parties hereto acknowledge and agree that (a) the Service Provider is providing the Services on a non-exclusive basis and (b) the Service Provider provides services similar to or the same as the Services to other persons, entities and/or brands, some which may be competitive with the Company and its Products, and the same shall not be a violation of any term or condition 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;**12.4 <u>Third-Party Beneficiaries</u>.** This Agreement is entered into solely between, and may be enforced only by, the Company and Service Provider, and, subject to <u>Section 5,</u> this Agreement will not be deemed to create any rights in, or obligations of a party to, third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5 <u>Modification; Waivers</u>.** No provision in this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing duly executed by each of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6 <u>Assignment</u>.** Neither party may assign or transfer this Agreement, or any rights or obligations hereunder, without the prior written consent of the other party. Notwithstanding the foregoing, Service Provider may assign its rights and obligation hereunder to any of its affiliates or subsidiaries without the necessity of obtaining the Company's 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;**12.7 <u>Governing Law</u>.** This Agreement shall be governed by the laws of State of Delaware, without giving effect to principles of conflicts of law or choice of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.8 <u>Dispute Resolution</u>.** All claims, disputes and other matters in controversy (herein called a "dispute") arising directly or indirectly out of or related to this Agreement, or the breach thereof, whether contractual or non-contractual, and whether during the term or after the termination of this Agreement, shall be resolved exclusively according to the procedures set forth in this <u>Section 12.8</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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** In the event of a dispute, the parties shall first work cooperatively and in good faith for ten (10) business days in an effort to negotiate a resolution to the dispute. If the dispute is satisfactorily resolved within such period, the parties shall reduce such resolution to writing and both parties shall execute the same. If such dispute is not resolved pursuant to good faith negotiations, the parties shall submit such dispute to mediation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Either party may deliver a notice (a **"Dispute Notice")** to the other party setting forth the nature of the dispute to be mediated. The parties shall attempt in good faith to resolve the dispute by mediation under the Commercial Mediation Rules of the American Arbitration Association **("AAA")** in effect on the date of the Dispute Notice. If the parties cannot agree on the selection of a mediator within 20 days after delivery of the Dispute Notice, the mediator will be selected by the AAA. If the dispute is resolved pursuant to mediation, the parties shall reduce such resolution to writing and shall execute the same. If the dispute is not resolved by mediation within sixty (60) days after delivery of the Dispute Notice, then the dispute shall be determined by binding arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** Any dispute that is not settled through mediation shall be resolved by arbitration by a single arbitrator in Los Angeles, California under the AAA commercial arbitration rules in effect on the date of the Dispute Notice. Persons eligible to be selected as an arbitrator shall be limited to lawyers with excellent academic and professional credentials (a) who are or have been a partner in a highly respected law firm for at least ten (10) years specializing in either general commercial litigation or general corporate and commercial matters and (b) who have had both training and experience as an arbitrator. The parties shall mutually agree upon a single arbitrator, based on a list of qualified individuals provided by the AAA; however, if the parties are unable to agree upon an arbitrator, the AAA, in its sole discretion, shall select an arbitrator that meets the criteria set forth herein to hear the applicable dispute. The arbitrator shall base the award on applicable law and judicial precedent and, unless both parties agree otherwise, shall include in such award the findings of fact and conclusions of law upon which the award is based. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

Notwithstanding anything to the contrary, in the event that the Company is in breach of its payment obligations under Section 3 hereof, and fails to cure such breach within ten (10) business days after written notice thereof by Service Provider with respect to such breach of payment obligations, the parties hereto agree that irreparable damage would occur and that Service Provider shall be entitled to specific performance of the terms thereof, in addition to any other remedy to which Service Provider is entitled at law or in equity. For the avoidance of doubt, the foregoing shall not waive Service Provider's right to terminate pursuant to <u>Section 7.2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.9 <u>Injunctive Relief</u>.** Each party agrees that a breach of any of the covenants contained in this Agreement, including any obligations of Service Provider in <u>Section 4,</u> may cause irreparable injury to the other party for which the remedy at law may be inadequate and would be difficult to ascertain. Therefore, in the event of the breach or threatened breach of any such covenants, including any obligations of Service Provider in <u>Section 4</u>, the non-breaching party shall be entitled, in addition to any other rights and remedies that it or they may have at law or in equity, to seek an injunction to restrain the breaching party from any threatened or actual activities in violation of any such covenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.10 <u>Severability</u>.** In the event that any of the provisions, or portions thereof, of this Agreement are held to be unenforceable or invalid by arbitration, the validity and enforcement of the remaining provisions, or portions thereof, shall not be effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.11 <u>Notice</u>.** Any notice, request, demand or other communication required or permitted hereunder shall be in writing and sent by registered or certified mail, return receipt requested, by facsimile transmission, by electronic mail, by a nationally recognized overnight delivery service, or by hand delivery to the parties at the following addresses:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company: | 222 Spirits Holdco, LLC |
|  | Attn: Elizabeth Collins |
|  | 1100 Glendon Avenue, Suite 1000 |
|  | Los Angeles, CA 90024 |
|  | Email: beth.collins@azoffcompany.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy (which shall not constitute notice) to: | Gibson, Dunn & Crutcher LLP |
|  | Attn: Benyamin Ross, Esq. |
|  | 333 South Grand Avenue, Floor 50 |
|  | Los Angeles, CA 90071 |
|  | Email: bross@gibsondunn.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Service Provider: | AMASS BRANDS INC |
|  | Attn: Mark T. Lynn |
|  | 927 S. Santa Fe Avenue |
|  | Los Angeles, CA 90021 |
|  | Email: mark@amass.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy (which shall not constitute notice) to: | Giannuzzi Lewendon, LLP |
|  | Attn: Ryan Lewendon, Esq. |
|  | 411 W 14<sup>th</sup> Street, 4<sup>th</sup> Floor |
|  | New York, NY 10014 |
|  | Email: ryan@gllaw.us |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.12 <u>Entire Agreement</u>.** This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter contained in this Agreement and supersedes all prior agreements, understandings and negotiations between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>CONFIDENTIAL INFORMATION</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;**13.1 <u>Confidential Information</u>.** Either Service Provider or the Company (the **"Receiving Party")** acknowledges that it may be furnished with, receive or otherwise have access to information of or concerning the other party (the **"Disclosing Party")** that the Disclosing Party considers to be confidential, a trade secret or otherwise restricted. **"Confidential Information"** means all information, in any form, of the Disclosing Party or its affiliates, and, in the case of the Company, its customers, suppliers and employees, that is marked confidential, restricted, or with a similar designation or which, given the nature of the information or the circumstances of disclosure, should reasonably be understood to be confidential. Confidential Information of the Company includes the Deliverables and all other information developed in the performance 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;**13.2 <u>Obligations</u>.** Each Receiving Party agrees that it will (a) hold Confidential Information in confidence and, except as expressly permitted by <u>Section 13.3,</u> or by the express, prior approval of the Disclosing Party in each instance, which approval may be withheld or granted by the Disclosing Party in its sole discretion, not provide, disseminate, sell, assign, lease, transfer or otherwise dispose of, disclose to or make available any Confidential Information to any third party, and (b) use at least the same degree of care as it employs to avoid unauthorized disclosure of its own information of a similar nature, but in any event no less than commercially reasonable efforts, to prevent disclosing to third parties the Confidential Information. Receiving Party will use Confidential Information only for the purpose of meeting its obligations or exercising its rights 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;**13.3 <u>Permitted Disclosures</u>.** Receiving Party may disclose Confidential Information to its employees, directors, attorneys, auditors and accountants as and to the extent necessary for performance or receipt, as applicable, of the Services, provided that, in each case, (a) the recipient has a need to know the Confidential Information for purposes of performing his or her obligations under or with respect to this Agreement or as otherwise naturally occurs in such person's scope of responsibility; (b) such disclosure is made pursuant to obligations of confidentiality that are no less stringent than those set forth in this <u>Section 13</u>; and (c) such disclosure is not in violation of law. Receiving Party disclose Confidential Information to the extent required to satisfy any legal requirement of a governmental authority, provided that, promptly upon receiving any such request and to the extent it may legally do so, the Receiving Party notifies and cooperates with the Disclosing Party to interpose an objection to such disclosure, limit disclosure or take other protective measures. The Receiving Party assumes full responsibility for the acts or omissions of any person to whom it discloses Confidential Information regarding their use of such 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;**13.4 <u>Breaches of Confidential Information</u>.** In the event of any possession, use, disclosure or loss of, or inability to account for, any Confidential Information other than as permitted by this Agreement, the Receiving Party will promptly (a) notify the Disclosing Party upon becoming aware thereof; (b) provide to the Disclosing Party all known details and take such actions as may be necessary or reasonably requested by the Disclosing Party to pursue its legal rights and remedies and to minimize the possession, use, disclosure or loss; and (c) cooperate in all reasonable respects with the Disclosing Party to minimize the violation and any damage resulting therefrom. In the event of a breach or threatened breach by Receiving Party of the provisions of this <u>Section 13,</u> the Disclosing Party may immediately terminate the Agreement and withhold any future compensation and shall further be entitled to an injunction restraining the Receiving Party from disclosing, in whole or in part, any Confidential Information or from rendering any service to any third party to whom the Confidential Information, in whole or in part, has been disclosed or to whom the Receiving Party is threatening to disclose the same. Nothing herein shall be construed as prohibiting the Disclosing Party from pursuing any other remedies available to the Disclosing Party for such breach or threatened breach, including the recovery of damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.5 <u>Exclusions</u>.** Except with respect to personal information, <u>Section 13.2</u> will not apply to any particular information that Receiving Party can demonstrate: (a) was, at the time of disclosure to it, in the public domain; (b) after disclosure to it, was published or otherwise became part of the public domain through no fault of Receiving Party; (c) was in the possession of Receiving Party at the time of disclosure to it, and Receiving Party was not under any obligation of confidentiality; (d) was received after disclosure to it from a third party who had a lawful right to disclose such information to it without any obligation to restrict its further use or disclosure; or (e) was independently developed by Receiving Party without reference to 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;**13.6 <u>Period of Confidentiality</u>.** The confidentiality obligations pursuant to this <u>Section 13</u> will continue during the Term and for a period of three (3) years following the expiration or termination of this Agreement; <u>provided</u>, <u>however</u>, that Confidential Information that constitutes (a) a trade secret will remain subject to these obligations for so long as such trade secret information remains a trade secret and (b) personal information will continue indefinitely.

[Signatures on Following Page]

**IN WITNESS WHEREOF,** this Master Services Agreement is executed by the Company and Service Provider to be effective as of the Effective Date.

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| | |
|:---|:---|
| **COMPANY:** | **SERVICE PROVIDER:** |
| 222 SPIRITS HOLDCO, LLC | AMASS BRANDS INC |
| By: | By: |
| Name: | Name: |
| Its: | Its: |

---

**<u>SCHEDULE A</u>**

**<u>TRADEMARKS AND TRADE NAMES</u>**

● CALIROSA - United States Trademark Registration No. 6,487,524

● CALIROSA - Japan Trademark Registration No. 6708419

● CALIROSA - Canada Trademark Application No. 2243218

● CALIROSA - South Africa Trademark No. 2023/05857 [Pending]

● CALIROSA - South Africa Trademark No. 2023/05858 [Pending]

● CALIROSA - Namibia Trademark Application No. NA/T/2023/00181

**EXHIBIT E**

FORM OF NIL AGREEMENT<br> (attached)

***Execution Version***

**NAME AND LIKENESS LICENSE AGREEMENT**

THIS NAME AND LIKENESS LICENSE AGREEMENT (this **"Agreement")** is entered into and effective as of this 19th day of September, 2024 (the **"Effective Date"),** by and between **DG,** LLC **("Licensor")** f/s/o Behati Prinsloo Levine and Adam Levine **("The Levines"),** and 222 Spirits Holdco, LLC, a Delaware limited liability company **("Licensee").** Licensor and Licensee are individually referred to herein as a **"Party"** and collectively as the **"Parties."**

**RECITALS**

WHEREAS, The Adhati Trust **("TAT")** is an equity holder of Licensee;

WHEREAS, The Levines personal name, likeness, voice, photograph, image, signature, visual representations, sobriquets, history, biography, backstory, and goodwill appurtenant thereto (the **"Right of Publicity")** has been utilized as part of the Company Business (as defined below);

WHEREAS, Licensor possesses the necessary right, title and interest in and to the Right of Publicity to fulfill its obligations hereunder;

WHEREAS, Licensee desires to obtain, and Licensor agrees to grant, an exclusive license (as contemplated by <u>Section 3</u> hereof) to use the Right of Publicity in connection with the Company Business pursuant to the terms set forth herein;

WHEREAS, pursuant to that certain Unit Purchase Agreement, dated of even date herewith (the **"Purchase Agreement"),** by and among AMASS Brands Inc, a Delaware corporation **("AMASS"),** Licensee, TAT and JAJC Investments LLC **("JAJC,"** together with TAT, the **"Sellers"),** the Sellers have agreed to sell to AMASS Class A Common Units of Licensee representing 50.0001% of the membership interests of Licensee;

WHEREAS, the delivery of this Agreement is a closing delivery pursuant to the terms of the Purchase Agreement; and

WHEREAS, the Parties desire to enter into this Agreement to set forth their respective rights and obligations with respect thereto, all as more particularly set forth herein.

NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth herein and in the Purchase Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree that the foregoing recitals are true and correct and further agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>DEFINED TERMS</u>. The following terms have the meanings specified or referred to in this <u>Section 1</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;1.1. **"Affiliate"** means, with respect to any specified Person, any other Person that, directly or indirectly, controls, is under common control with, or is controlled by such specified Person. The term "control" (including its correlative meanings "under common control with" and "controlled by") as used in the preceding sentence means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through ownership of securities or partnership or other interests, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. **"Agreement"** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. **"Business Day"** means any day that is not a Saturday, Sunday or other day on which banks are required or authorized by law to be closed in Los Angeles, California or New York, New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. **"Company Business"** means the development, production, marketing, distribution and sale of tequila or agave-based spirits and any other products reasonably related to the foregoing (e.g., product and/or line extensions) developed, produced, marketed, distributed or sold by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. **"Governmental Authority"** means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or Orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. **"Intellectual Property"** means any and all intellectual property and industrial property, and all related rights, interests and protections, however arising, pursuant to the Laws of any jurisdiction throughout the world, all registrations, applications for registration, and renewals of such rights, and the goodwill, rights of privacy and publicity, connected with the use of and symbolized by any of the foregoing, and any improvements thereof, including any and all: trademarks, service marks, trade names, and similar indicia of source or origin; websites and domain names, and all related content and data; copyrights, database rights, and works of authorship, whether or not copyrightable; trade secrets, inventions, technology, and other confidential and proprietary information, whether or not patentable; patents (including all reissues, divisionals, continuations, continuations-in-part, and extensions thereof); rights in computer software programs (including source and object code); all actions to and rights to sue at law or in equity for any past or future infringement or other impairment of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. **"Law"** means any statute, law, ordinance, regulation, rule, code, Order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. **"Order"** means any order, judgment, decree, injunction, stipulation, settlement, or consent order of or with any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. **"Person"** means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>GRANT OF LICENSE</u>. Subject to and in accordance with the terms and conditions of this Agreement, Licensor hereby grants to Licensee a perpetual, irrevocable, worldwide, sublicensable (through multiple tiers), and fully paid-up right and license (but not the obligation) to use, publish, copy, publicly display, publicly perform, and create derivative works of the Right of Publicity, solely in connection with (i) communicating the story of Licensee and the Company Business in all media now known or hereafter developed, including, but not limited to (a) in marketing, sales, advertising, publicity, and promotional materials for Licensee's products and services, (b) on point of sale materials; (c) on product packaging, labels, or tags; and (d) in any trademarks, service marks, trade dress, logos or other registrations, and (ii) any other promotional purpose of Licensee and the Company Business only as mutually agreed upon in advance by each of Licensee and Licensor in each instance. Notwithstanding the foregoing, the prior written consent of The Levines must be obtained in connection with any use, publication, copying, publicly displaying, publicly performing, or creating derivative works of the Right of Publicity that deviates in any way from those previously-approved in writing by The Levines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>EXCLUSIVITY</u>. Licensor will not, participate in or promote, or directly or indirectly use, grant the right to use, or permit, or license, or offer, or agree to permit or license any other Person to use the Right of Publicity in connection with any third party tequila or agavebased spirits products, for so long as Licensor holds any membership interest in Licensee; <u>provided</u>, <u>however</u>, that nothing in this Agreement shall limit or restrict the use or license of any musical composition, performance or recording performed, produced or otherwise released by Maroon 5 (including, for the avoidance of doubt, any recordings that includes Adam Levine's voice) for any purpose, including, but not limited to, the marketing, sale, advertisement, publicity or other promotional purpose of any third party tequila or agave-based spirits products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>QUALITY CONTROL</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;4.1. Licensee agrees at all times to maintain quality control standards in respect of the Company Business no less than those maintained by Licensee in respect thereof prior to the Effective Date, and to manufacture, market and sell Licensee's products and services in accordance with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. During the Term hereof, Licensor shall conduct itself with due regard to public conventions and morals and shall not take any action that would diminish, dilute, or damage the value of the Right of Publicity, including committing an act or omission of moral turpitude, embezzlement or fraud which brings Licensee or Licensor into scandal or contempt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>INTELLECTUAL PROPERTY</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;5.2. <u>Further Assurances</u>. At Licensee's reasonable request, Licensor will execute all documents and instruments consistent herewith and perform all reasonable acts which may be necessary or desirable to give effect to Licensee's ownership of Intellectual Property as set forth in <u>Section 5.1</u>, including consent to sublicensees and to register trademarks that include Licensor's name or likeness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Infringements</u>. Licensor will promptly inform Licensee if Licensor learns of any actual, threatened or potential infringement of the Right of Publicity, including any Intellectual Property relating thereto. After receipt of such notice from Licensor, Licensee shall have the sole discretion to take or not take action to stop such infringement. Licensor shall cooperate with Licensee as may be reasonably requested by Licensee and at Licensee's reasonable cost. Any and all recovery resulting from any action taken hereunder by Licensee shall be for the sole benefit of Licensee. Licensee will have full control over any action or position taken by Licensee, including the right to select counsel, to settle on any terms it deems advisable in its sole discretion, to appeal any adverse decision rendered in any court, and otherwise to make any decision in respect thereto as Licensee in its sole discretion deems advisable and will bear all expenses connected with such Licensee's action or position, except that if Licensor desires to retain her own counsel in connection with such Licensee action or position, Licensor will do so at Licensor's own expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>REPRESENTATIONS AND WARRANTIES</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;6.1. <u>Licensor's Representations, Warranties and Covenants</u>. Licensor represents, warrants and covenants to Licensee 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1. <u>Enforceability</u>. This Agreement constitutes the valid and binding obligation of Licensor enforceable against Licensor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2. <u>Rights</u>. Licensor possesses the necessary right, title and interest throughout the world in and to the Right of Publicity and has the right to grant Licensee all of the rights granted to Licensee in this Agreement on the terms provided in this Agreement, including the right to license the Right of Publicity, as provided herein, for commercial purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3. <u>No Infringement</u>. The use of the Right of Publicity as authorized in this Agreement does not infringe any trademark, service mark, trade name, publicity rights, other intellectual property rights or any other rights of any third party, or Licensor has obtained all permissions from such third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4. <u>No Conflict</u>. Neither this Agreement nor Licensor's duties, obligations or performance hereunder conflicts with any agreement or obligation of Licensor. Licensor is not a party to any agreement or subject to any obligation that would prevent or materially restrict Licensor's ability to perform the duties and obligations under this Agreement. Licensor is not involved with any professional endeavors which would materially adversely affect or interfere with the full performance by Licensor of Licensor's duties and obligations under this Agreement or the exercise of Licensor's good faith efforts hereunder. There is no claim, action, suit or proceeding pending or, to Licensor's knowledge, threatened, which if adversely determined would affect the ability of Licensor to enter into this Agreement or to perform Licensor's duties and obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Licensee Representations and Warranties</u>. Licensee represents and warrants to Licensor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1. <u>Organization and Standing</u>. Licensee is duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its organization or formation. Licensee has all requisite power and authority to own and operate its properties and assets and to carry on its business as now being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2. <u>Authorization; Enforceability</u>. Licensee has the power and authority to enter into this Agreement, to perform its obligations under this Agreement, and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action (corporate, limited liability company or otherwise) on the part of Licensee and constitutes the valid and binding obligation of Licensee enforceable against Licensee in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>TERM</u>. The term of this Agreement shall commence upon the Effective Date and remain in full force and effect in perpetuity (the **"Term"),** unless earlier terminated by the mutual agreement of the Parties. Subject to the other terms of this Agreement, on the date of termination of this Agreement and for a period of twelve (12) months following the date of such termination, Licensee may, in its sole discretion, continue the use of the Rights of Publicity in accordance with the terms herein and for the purposes set forth in <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>LIMITATION OF LIABILITY</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT OR PROVIDED FOR UNDER ANY APPLICABLE LAW, NO PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY PUNITIVE DAMAGES OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>EQUITABLE REMEDIES</u>. The Parties agree that a breach of this Agreement could cause immediate and irreparable harm for which money damages may not adequately compensate the non-breaching Party. Therefore, each Party agrees that the other Party may seek specific performance, injunctive relief, or equitable relief in response to its breach without proof of actual damages and without the posting of bond or other security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;10.1. <u>Expenses</u>. Except as otherwise expressly provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the Party incurring such costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <u>Notices</u>. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) on the date sent by email if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient (in either case, subject to confirmation of receipt by recipient by reply email); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) when delivered by hand (with written confirmation of receipt) or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid; <u>provided</u>, that in the case of <u>clauses (b)</u>, <u>(c)</u> and <u>(d)</u>, such notice shall not be effective unless it was (1) first delivered via e-mail and no response was given within twenty-four (24) hours and (2) a subsequent notice via e-mail was sent indicating the delivery via the method described in <u>clause (b), (c)</u>, or <u>(d)</u>, as applicable. Such communications must be sent to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 10.2)</u>:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Licensor, to: | Serling Rooks Hunter McKoy Worob & Averill LLP |
|  | 119 Fifth Avenue, 3rd Floor |
|  | New York, New York 10003 |
|  | Attention: Jeff Worob |
|  | Email: jaw@serlingrooks.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Licensee: | 222 Spirits Holdco, LLC |
|  | 1110 Glendon Avenue, Suite 1000 |
|  | Los Angeles, CA 90024 |
|  | Attention: Elizabeth Collins |
|  | Email: beth.collins@azoffcompany.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy (which shall not constitute notice) to: | AMASS Brands Inc |
|  | 927 S. Santa Fe Avenue |
|  | Los Angeles, California 90021 |
|  | Attention: Mark Thomas Lynn |
|  | Email: mark@amass.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy (which shall not constitute notice) to: | Giannuzzi Lewendon, LLP |
|  | 411 West 14<sup>th</sup> Street, 4<sup>th</sup> Floor |
|  | New York, New York 10014 |
|  | Attention: Adam Marsh |
|  | Email: adam@gllaw.us |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. <u>Interpretation</u>. The use of the masculine, feminine, or neuter gender or the singular or plural form of words in this Agreement shall not limit any provision of this Agreement. The meaning assigned to each term defined in this Agreement shall be equally applicable to both the singular and the plural forms of such term. The use of "including" or "include" will in all cases mean "including, without limitation" or "include, without limitation," respectively. The use of "or" is not intended to be exclusive unless expressly indicated otherwise. Reference to any Person includes such Person's successors and assigns to the extent such successors and assigns are permitted by the terms of any applicable contract, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually. Reference to any contract (including this Agreement), document, or instrument shall mean such contract, document, or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of this Agreement. Reference to any statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. Underlined references to Articles, Sections, clauses, Exhibits or Schedules shall refer to those portions of this Agreement. The use of the terms "hereunder," "hereof," "hereto," and words of similar import shall refer to this Agreement as a whole and not to any particular Article, Section, paragraph, or clause of, or Exhibit or Schedule to, 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;10.4. <u>Headings</u>. The headings preceding the text of Articles and Sections included in this Agreement are for convenience only and shall not be deemed part of this Agreement or be given any effect in interpreting 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;10.5. <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. <u>Entire Agreement</u>. This Agreement constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersede all prior and contemporaneous representations, warranties, 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;10.7. <u>Successors and Assigns</u>. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns, including Licensor's estate and heirs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. <u>Bankruptcy</u>. All rights and licenses granted to Licensee hereunder are, for purposes of section 365(n) of the United States Bankruptcy Code (the **"Bankruptcy Code"),** licenses of intellectual property within the scope of section 101 of the Bankruptcy Code. Licensor acknowledges that Licensee, as a licensee of such rights and licenses hereunder, will retain and may fully exercise all of its rights and elections under the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9. <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 shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10. <u>Amendment and Modification; Waiver</u>. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by the Parties. Any failure of a Party to comply with any obligation, covenant, agreement or condition herein may be waived by the other Parties, only by a written instrument signed by each Party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11. <u>Governing Law</u>. This Agreement, and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement), shall be governed by, and enforced in accordance with, the internal laws of the State of Delaware, without giving effect to any laws, rules or provisions of the State of Delaware that would cause the application of the laws rules or provisions of any jurisdiction other than the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12. <u>Jurisdiction, Service, and Venue</u>. Each of the Parties hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Court of Chancery of the State of Delaware or the courts of the United States of America for the District of Delaware, in any actions arising out of or relating to this Agreement and any transactions contemplated hereby for recognition or enforcement of any judgment relating thereto, and each of the Parties hereby irrevocably and unconditionally (i) agrees not to commence any such action except in such courts, (ii) agrees that any claim in respect of any such action may be heard and determined in such courts, (iii) waives, to the fullest extent it may legally and effectively do so, and agrees not to assert (by way of motion, as a defense or otherwise), any objection which it may now or hereafter have to the laying of venue of any action in such courts, and (iv) waives, to the fullest extent it may legally and effectively do so, and agrees not to assert (by way of motion, as a defense or otherwise), the defense of an inconvenient forum to the maintenance of such action in such courts; <u>provided</u>, <u>however</u>, that such submission to jurisdictions is solely for the purpose referred to in this <u>Section 10.12</u> and shall not be deemed to be a general submission to the jurisdiction of such courts or any other courts other than for such purpose. Each of the Parties agrees that a final judgment in any such action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each Party irrevocably consents to service of process in the manner provided for notices in <u>Section 10.2</u> and the Parties further waive any argument that such service in insufficient. Except with respect to the Licensee as set forth in the previous sentence, nothing in this Agreement will affect the right of any Party to serve process in any other manner permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13. <u>WAIVER OF TRIAL BY JURY</u>. EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY, IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14. <u>Independent Status</u>. This Agreement does not constitute and will not be construed as constituting a partnership or joint venture, or an employee employer relationship or one of principal and agent, it being understood that the Parties are and will remain independent contractors in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15. <u>Assignment</u>. Neither Party shall assign or transfer this Agreement, in whole or in part, or any of its rights or obligations hereunder, whether by operation of law or otherwise, without the prior written consent of the other Party, except that Licensee (without prior written consent of Licensor) may assign its rights and obligations hereunder to any of its Affiliates, AMASS, or any of its Affiliates, or to any successor to all or substantially all of its business that concerns this Agreement. Subject to the foregoing, this Agreement will be binding upon, and will inure to the benefit of, the parties' respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16. <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, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. For the avoidance of doubt, affirmation or signature of this Agreement or an admission agreement by electronic means (an **"Electronic Signature")** shall constitute the execution and delivery of a counterpart of this Agreement or an admission agreement by or on behalf of such person intending to be bound by the terms of this Agreement. The Parties agree that this Agreement, each admission agreement and any additional information incidental thereto may be maintained as electronic records. Any person providing an Electronic Signature further agrees to take any and all additional actions, if any, evidencing their intent to be bound by the terms of this Agreement, as may reasonably be requested by a Party.

*[Signatures on the next page]*

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above.

---

| |
|:---|
| **LICENSOR:** |
| **DG, LLC** |
| By: |
| Name: |
| Title: |
| **LICENSEE:** |
| **222 SPIRITS HOLDCO, LLC** |
| By: |
| Name: |
| Title: |

---

*[Signature page of Name and Likeness License Agreement]*

## Exhibit 10.21

**Exhibit 10.21**

**STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE - GROSS**

**1.** **Basic Provisions ("Basic Provisions").** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Parties.** This Lease (**"Lease"**), dated for reference purposes only <u>May 15, 2019</u>, is made by and between <u>CBC Joint Venture Partners, a California general partnership</u> ("**Lessor**") and <u>BWSC, LLC, a California limited liability company dba WINC</u> ("**Lessee**"), (collectively the "**Parties**", or individually a "**Party"**),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **(a) Premises:** That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, commonly known as (street address, unit/suite, city, state): <u>a portion of the Premises commonly known as 860 E. Stowell Road, Santa Maria, CA</u> ("**Premises**"). The Premises are located in the County of <u>Santa Barbara</u>, and are generally described as (describe briefly the nature of the Premises and the "Project"): <u>approximately 22,000 sf of 135,000+/- warehouse building</u>. In addition to lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non-exclusive rights to any utility raceways of the building containing the Premises ("**Building"**) and to the Common Areas (as defined in Paragraph 2.7 below), but shall not have any rights to the roof, or exterior walls of the Building or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located, along with all another buildings and improvements thereon, are herein collectively referred to as the "**Project.**" (See also Paragraph 2)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **(b) Parking:** <u>5</u> unreserved vehicle parking spaces. (See also Paragraph 2.6)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **Term:** <u>two (2)</u> years and <u>zero (0)</u> months ("**Original Term**") commencing <u>June 1, 2019</u> **("Commencement Date")** and ending <u>May 31, 2021</u> **("Expiration Date").** (See also Paragraph 3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **Early Possession:** If the Premises are available Lessee may have non-exclusive possession of the Premises commencing <u>N/A</u> **("Early Possession Date").** (See also Paragraphs 3.2 and 3.3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 **Base Rent:** <u>$13,640</u> per month (**"Base Rent"**), payable on the <u>1st</u> day of each month commencing <u>June 1, 2019</u>, Commencing June 1, 2020, the Base Rent shall be $14,520 **(See also Paragraph 4)** 

🗹 If this box is checked, there are provisions in this lease for the Base Rent to be adjusted. See Paragraph <u>1.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **Lessee's Share of Common Area Operating Expenses:** <u>zero</u> percent (<u>0 %</u>) ("**Lessee's Share**"). In the event that the size of the Premises and/or the Project are modified during the term of this Lease, Lessor shall recalculate Lessee's Share to reflect such modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 **Base Rent and Other Monies Paid Upon Execution:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Base Rent:** <u>$13,640</u> for the period <u>June, 2019</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Common Area Operating Expenses:** <u>N/A</u> for the period ______________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Security Deposit:** <u>$13,640</u> (**"Security Deposit"**). (See also Paragraph 5)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Other:** <u>N/A</u> for _______________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Total Due Upon Execution of this lease:** <u>$27,280</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 **Agreed Use:** <u>Warehouse for wine case storage and incidental office</u>. **(See also Paragraph 6)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 **Insuring Party**. Lessor is the **"Insuring Party".** (See also Paragraph 8)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 **Guarantor.** The obligations of the Lessee under this Lease are to be guaranteed by <u>N/A</u> (**"Guarantor"**). (See also Paragraph 37)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 **Attachments.** Attached hereto are the following, all of which constitute a part of this Lease:

🗹 an Addendum consisting of Paragraphs <u>50</u> through <u>59</u>;

🗹 a site plan depicting the Premises; Exhibit A

🗹 a site plan depicting the Project; Exhibit B

◻ a current set of the Rules and Regulations for the Project;

◻ a current set of the Rules and Regulations adopted by the owners' association;

◻ a Work Letter;

◻ other (specify): _________________ .

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| INITIALS | INITIALS |

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© 2019 AIR CRE. All Rights Reserved. Last Edited: 5/14/2019 2:34 PM <br> MTG-24.30, Revised 01-01-2019 Page 1 of 18

**2.** **Premises.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **Letting.** Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different. **NOTE: Lessee is advised to verify the actual size prior to executing this Lease.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **Condition.** Lessor shall deliver that portion of the Premises contained within the Building **("Unit")** to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs **("Start Date"),** and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (**"HVAC"**), loading doors, sump pumps, if any, and all other such elements in the Unit, other than those constructed by Lessee, shall be in good operating condition on said date, that the structural elements of the roof, bearing walls and foundation of the Unit shall be free of material defects, and that the Unit does not contain hazardous levels of any mold or fungi defined as toxic under applicable state or federal law. If a non-compliance with such warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor shall, as Lessor's sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, malfunction or failure, rectify same at Lessor's expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and other elements of the Unit. If Lessee does not give Lessor the required notice within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of Lessee at Lessee's sole cost and expense (except for the repairs to the fire sprinkler systems, roof, foundations, and/or bearing walls - see Paragraph 7). Lessor also warrants, that unless otherwise specified in writing, Lessor is unaware of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan secured by the Premises; and (iii) any bankruptcy proceeding affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 **Compliance.** Lessor warrants that to the best of its knowledge the improvements on the Premises and the Common Areas comply with the building codes, applicable laws, covenants or restrictions of record, regulations, and ordinances **("Applicable Requirements")** that were in effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 49), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. **NOTE: Lessee is responsible for determining whether or not the Applicable Requirements, and especially the zoning are appropriate for Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed.** If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor's expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee's sole cost and expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the Unit, Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building **("Capital Expenditure"),** Lessor and Lessee shall allocate the cost of such work as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however, that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the difference between the actual cost thereof and the amount equal to 6 months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Rent is due, an amount equal to l/144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor's termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor's share of such costs have been fully paid. If Lessee is unable to finance Lessor's share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such Capital Expenditure at its own expense. Lessee shall not have any right to terminate this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 **Acknowledgements.** Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises;; (b) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Lessee's intended use; (c) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises; (d) it is not relying on any representation as to the size of the Premises made by Brokers or Lessor; (e) the square footage of the Premises was not material to Lessee's decision to lease the Premises and pay the Rent stated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than asset forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or warranties concerning Lessee's ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor's sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 **Lessee as Prior Owner/Occupant.** The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work.

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| INITIALS | INITIALS |

---

© 2019 AIR CRE. All Rights Reserved. Last Edited: 5/14/2019 2:34 PM <br> MTG-24.30, Revised 01-01-2019 Page 2 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 **Vehicle Parking.** Lessee shall be entitled to use the number of Parking Spaces specified in Paragraph 1.2(b) on those portions of the Common Areas designated from time to time by Lessor for parking. Lessee shall not use more parking spaces than said number. Said parking spaces shall be used for parking by vehicles no larger than full-size passenger automobiles or pick-up trucks, herein called **"Permitted Size Vehicles."** Lessor may regulate the loading and unloading of vehicles by adopting Rules and Regulations as provided in Paragraph 2.9. No vehicles other than Permitted Size Vehicles maybe parked in the Common Area without the prior written permission of Lessor. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall not permit or allow any vehicles that belong to or are controlled by Lessee or Lessee's employees, suppliers, shippers, customers, contractors or invitees to be loaded, unloaded, or parked in areas other than those designated by Lessor for such activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lessee shall not service or store any vehicles in the Common Areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Lessee permits or allows any of the prohibited activities described in this Paragraph 2.6, then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 **Common Areas - Definition.** The term **"Common Areas"** is defined as all areas and facilities outside the Premises and within the exterior boundary line of the Project and interior utility raceways and installations within the Unit that are provided and designated by the Lessor from time to time for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees, including parking areas, loading and unloading areas, trash areas, roofs, roadways, walkways, driveways and landscaped areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 **Common Areas - Lessee's Rights.** Lessor grants to Lessee, for the benefit of Lessee and its employees, suppliers, shippers, contractors, customers and invitees, during the term of this Lease, the non-exclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Lessor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use of the Project. Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or Lessor's designated agent, which consent may be revoked at any time. In the event that any unauthorized storage shall occur, then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 **Common Areas - Rules and Regulations.** Lessor or such other person(s) as Lessor may appoint shall have the exclusive control and management of the Common Areas and shall have the right, from time to time, to establish, modify, amend and enforce reasonable rules and regulations **("Rules and Regulations")** for the management, safety, care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or tenants of the Building and the Project and their invitees. Lessee agrees to abide by and conform to all such Rules and Regulations, and shall use its best efforts to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessor shall not be responsible to Lessee for the non-compliance with said Rules and Regulations by other tenants of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 **Common Areas - Changes.** Lessor shall have the right, in Lessor's sole discretion, from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility raceways;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To designate other land outside the boundaries of the Project to be a part of the Common Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To add additional buildings and improvements to the Common Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project, or any portion thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To do and perform such other acts and make such other changes in, to or with respect to the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate.

**3.** **Term.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **Term.** The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **Early Possession.** Any provision herein granting Lessee Early Possession of the Premises is subject to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Lease (including but not limited to the obligations to pay Lessee's Share of Common Area Operating Expenses, Real Property Taxes and insurance premiums and to maintain the Premises) shall be in effect during such period. Any such Early Possession shall not affect the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 **Delay In Possession.** Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or change the Expiration Date. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 **Lessee Compliance.** Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.

**4.** **Rent.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. **Rent Defined.** All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent **("Rent").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **Common Area Operating Expenses.** Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following costs relating to the ownership and operation of the Project are defined as **"Common Area Operating Expenses":**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Costs relating to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph (e)), of the following:

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| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| INITIALS | INITIALS |

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© 2019 AIR CRE. All Rights Reserved. Last Edited: 5/14/2019 2:34 PM <br> MTG-24.30, Revised 01-01-2019 Page 3 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, exterior walls of the buildings, building systems and roof drainage systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Exterior signs and any tenant directories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) Any fire sprinkler systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The cost of trash disposal, pest control services, property management, security services, owners' association dues and fees, the cost to repaint the exterior of any structures and the cost of any environmental inspections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Reserves set aside for maintenance and repair of Common Areas and Common Area equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any increase above the Base Real Property Taxes (as defined in Paragraph 10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Any "Insurance Cost Increase" (as defined in Paragraph 8).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Any deductible portion of an insured loss concerning the Building or the Common Areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Auditors, accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of l/144th of the cost of such capital improvement in any given month. Lessee shall pay Interest on the unamortized balance but may prepay its obligation at any time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The cost of any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Unit, the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Unit, Building, or other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Lessee's Share of Common Area Operating Expenses is payable monthly on the same day as the Base Rent is due hereunder. The amount of such payments shall be based on Lessor's estimate of the annual Common Area Operating Expenses. Within 60 days after written request (but not more than once each year) Lessor shall deliver to Lessee a reasonably detailed statement showing Lessee's Share of the actual Common Area Operating Expenses for the preceding year. If Lessee's payments during such year exceed Lessee's Share, Lessor shall credit the amount of such over-payment against Lessee's future payments. If Lessee's payments during such year were less than Lessee's Share, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee of the statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Common Area Operating Expenses shall not include the cost of replacing equipment or capital components such as the roof, foundations, exterior walls or Common Area capital improvements, such as the parking lot paving, elevators, fences that have a useful life for accounting purposes of 5 years or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Common Area Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or insurance proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **Payment.** Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest whole dollar. In the event that any statement or invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier's check. Payments will be applied first to accrued late charges and attorney's fees, second to accrued interest, then to Base Rent and Common Area Operating Expenses, and any remaining amount to any other outstanding charges or costs.

**5. Security Deposit.** Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee's faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor's reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor's reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. Lessor shall upon written request provide Lessee with an accounting showing how that portion of the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. THE SECURITY DEPOSIT SHALL NOT BE USED BY LESSEE IN LIEU OF PAYMENT OF THE LAST MONTH'S RENT.

**6. Use.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **Use.** Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the Building or the mechanical or electrical systems therein, and/or is not significantly more burdensome to the Project. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notification of same, which notice shall include an explanation of Lessor's objections to the change in the Agreed Use.

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6.2 **Hazardous Substances.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Reportable Uses Require Consent.** The term **"Hazardous Substance"** as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises; (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee's expense) with all Applicable Requirements. **"Reportable Use"** shall mean (i) the installation or use of any above or below ground storage tank; (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Duty to Inform Lessor.** If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Lessee Remediation.** Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Lessee Indemnification.** Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities judgments, claims, expenses, penalties, and attorneys' and consultants'fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from areas outside of the Project not caused or contributed to by Lessee). Lessee's obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Lessor Indemnification.** Except as otherwise provided in paragraph 8.7, Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which are suffered as a direct result of Hazardous Substances on the Premises prior to Lessee taking possession or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor's obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Investigations and Remediations.** Lessor shall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to the Lessee taking possession, unless such remediation measure is required as a result of Lessee's use (including "Alterations", as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor's investigative and remedial responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Lessor Termination Option.** If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **Lessee's Compliance with Applicable Requirements.** Except as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor's engineers and/or consultants which relate in any manner to the Premises, without regard to whether said Applicable Requirements are now in effect or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor's written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee's compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii) any mustiness or other odors that might indicate the presence of mold in the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **Inspection; Compliance.** Lessor and Lessor's **"Lender"** (as defined in Paragraph 30) and consultants authorized by Lessor shall have the right to enter into Premises at any time in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting and/or testing the condition of the Premises and/or for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see Paragraph 9.1) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets **(MSDS)** to Lessor within 10 days of the receipt of written request therefor. Lessee acknowledges that any failure on its part to allow such inspections or testing will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to allow such inspections and/or testing in a timely fashion the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for the remainder to the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to allow such inspection and/or testing. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to such failure nor prevent the exercise of any of the other rights and remedies granted hereunder.

**7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **Lessee's Obligations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **In General.** Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole expense, keep the Premises, Utility Installations (intended for Lessee's exclusive use, no matter where located), and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights but excluding any items which are the responsibility of Lessor pursuant to Paragraph 7.2. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Service Contracts.** Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler and pressure vessels, and (iii) clarifiers. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Failure to Perform.** If Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee's behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Replacement.** Subject to Lessee's indemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from Lessee's failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (ie. l/144th of the cost per month). Lessee shall pay Interest on the unamortized balance but may prepay its obligation at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **Lessor's Obligations.** Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm and/or smoke detection systems, fire hydrants, parking lots, walkways, parkways, driveways, landscaping, fences, signs and utility systems serving the Common Areas and all parts thereof, as well as providing the services for which there is a Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall not be obligated to paint the exterior or interior surfaces of exterior walls nor shall Lessor be obligated to maintain, repair or replace windows, doors or plate glass of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 **Utility Installations; Trade Fixtures; Alterations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Definitions.** The term **"Utility Installations"** refers to all floor and window coverings, air and/or vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term **"Trade Fixtures"** shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. **"Lessee Owned Alterations and/or Utility Installations"** are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Consent.** Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems, do not trigger the requirement for additional modifications and/or improvements to the Premises resulting from Applicable Requirements, such as compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Liens; Bonds.** Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor's attorneys' fees and costs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **Ownership; Removal; Surrender; and Restoration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Ownership.** Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Removal.** By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Surrender; Restoration.** Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing and the provisions of Paragraph 7.1(a), if the Lessee occupies the Premises for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall also remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises) to the level specified in Applicable Requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below.

**8.** **Insurance; Indemnity.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 **Payment of Premium Increases.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As used herein, the term **"Insurance Cost Increase"** is defined as any increase in the actual cost of the insurance applicable to the Building and/or the Project and required to be carried by Lessor, pursuant to Paragraphs 8.2(b), 8.3(a) and 8.3(b), over and above the Base Premium, as hereinafter defined, calculated on an annual basis. Insurance Cost Increase shall include, but not be limited to, requirements of the holder of a mortgage or deed of trust covering the Premises, Building and/or Project, increased valuation of the Premises, Building and/or Project, and/or a general premium rate increase. The term Insurance Cost Increase shall not, however, include any premium increases resulting from the nature of the occupancy of any other tenant of the Building. The **"Base Premium"** shall be the annual premium applicable to the 12 month period immediately preceding the Start Date. If, however, the Project was not insured for the entirety of such 12 month period, then the Base Premium shall be the lowest annual premium reasonably obtainable for the Required Insurance as of the Start Date, assuming the most nominal use possible of the Building. In no event, however, shall Lessee be responsible for any portion of the premium cost attributable to liability insurance coverage in excess of $2,000,000 procured under Paragraph 8.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lessee shall pay any Insurance Cost Increase to Lessor pursuant to Paragraph 4.2. Premiums for policy periods commencing prior to, or extending beyond, the term of this Lease shall be prorated to coincide with the corresponding Start Date or Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 **Liability Insurance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Carried by Lessee.** Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad as the Insurance Service Organization's "Additional Insured-Managers or Lessors of Premises" Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an **"insured contract"** for the performance of Lessee's indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Carried by Lessor.** Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 **Property Insurance - Building, Improvements and Rental Value.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Building and Improvements.** Lessor shall obtain and keep in force a policy or policies of insurance in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Rental Value.** Lessor shall also obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next 12 month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Adjacent Premises.** Lessee shall pay for any increase in the premiums for the property insurance of the Building and for the Common Areas or other buildings in the Project if said increase is caused by Lessee's acts, omissions, use or occupancy of the Premises.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Lessee's Improvements.** Since Lessor is the Insuring Party, Lessor shall not be required to insure Lessee Owned Alterations and Utility Installations unless the item in question has become the property of Lessor under the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 **Lessee's Property; Business Interruption Insurance; Worker's Compensation Insurance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Property Damage.** Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Business Interruption.** Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Worker's Compensation Insurance.** Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may be required by Applicable Requirements. Such policy shall include a 'Waiver of Subrogation' endorsement. Lessee shall provide Lessor with a copy of such endorsement along with the certificate of insurance or copy of the policy required by paragraph 8.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **No Representation of Adequate Coverage.** Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee's property, business operations or obligations under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 **Insurance Policies.** Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII, asset forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor. Lessee shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or "insurance binders" evidencing renewal thereof, or Lessor may increase his liability insurance coverage and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 **Waiver of Subrogation.** Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 **Indemnity.** Except for Lessor's gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with, a Breach of the Lease by Lessee and/or the use and/or occupancy of the Premises and/or Project by Lessee and/or by Lessee's employees, contractors or invitees. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 **Exemption of Lessor and its Agents from Liability.** Notwithstanding the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places; (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agents to enforce the provisions of any other lease in the Project; or (iii) injury to Lessee's business or for any loss of income or profit therefrom. Instead, it is intended that Lessee's sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain pursuant to the provisions of paragraph 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 **Failure to Provide Insurance.** Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the existence of the required insurance, the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this Lease.

**9.** **Damage or Destruction.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 **Definitions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Premises Partial Damage"** shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date of the damage or destruction, and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Premises Total Destruction"** shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility installations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"Insured Loss"** shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Replacement Cost"** shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"Hazardous Substance Condition"** shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance, in, on, or under the Premises which requires restoration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 **Partial Damage - Insured Loss.** If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 **Partial Damage - Uninsured Loss.** If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor's expense (subject to reimbursement pursuant to Paragraph 4.2), in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 **Total Destruction.** Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 **Damage Near End of Term.** If at anytime during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee's receipt of Lessor's written notice purporting to terminate this Lease, or (ii)the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee's option shall be extinguished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 **Abatement of Rent; Lessee's Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Abatement.** In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Remedies.** If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at anytime prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. "Commence" shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 **Termination; Advance Payments.** Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor.

**10.** **Real Property Taxes.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 **Definitions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Real Property Taxes."** As used herein, the term **"Real Property Taxes"** shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Project, Lessor's right to other income therefrom, and/or Lessor's business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Project address. The term "Real Property Taxes" shall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of the Project; (ii) a change in the improvements thereon; and/or (iii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Base Real Property Taxes."** As used herein, the term **"Base Real Property Taxes"** shall be the amount of Real Property Taxes, which are assessed against the Project, during the entire calendar year in which the Lease is executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 **Payment of Taxes.** Except as otherwise provided in Paragraph 10.3, Lessor shall pay the Real Property Taxes applicable to the Project, and said payments shall be included in the calculation of Common Area Operating Expenses in accordance with the provisions of Paragraph 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 **Additional Improvements.** Common Area Operating Expenses shall not include Real Property Taxes specified in the tax assessor's records and work sheets as being caused by additional improvements placed upon the Project by other tenants or by Lessor for the exclusive enjoyment of such other Tenants. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Common Area Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes if assessed solely by reason of Alterations, Trade Fixtures or Utility Installations placed upon the Premises by Lessee or at Lessee's request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the execution of this Lease by the Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 **Joint Assessment.** If the Building is not separately assessed, Real Property Taxes allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available. Lessor's reasonable determination thereof, in good faith, shall be conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 **Personal Property Taxes**. Lessee shall pay prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor's real property, Lessee shall pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee's property.

**11. Utilities and Services.** Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. In the event that utilities or services are not separately metered or are common, Lessor shall bill to Lessee a proportionate amount of such utility bills or services based on the relative size of Lessee's Premises; provided, however, if at any time in Lessor's sole judgment, Lessor determines that Lessee is using a disproportionate amount of water, electricity or other commonly metered utilities, or that Lessee is generating such a large volume of trash as to require an increase in the size of the trash receptacle and/or an increase in the number of times per month that it is emptied, then Lessor may reasonably adjust Lessee's portion of the statement for such services or utilities. There shall be no abatement of Rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions.

Within fifteen days of Lessor's written request, Lessee agrees to deliver to Lessor such information, documents and/or authorization as Lessor needs in order for Lessor to comply with new or existing Applicable Requirements relating to commercial building energy usage, ratings, and/or the reporting thereof.

**12. Assignment and Subletting.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 **Lessor's Consent Required.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "**assign or assignment**") or sublet all or any part of Lessee's interest in this Lease or in the Premises without Lessor's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shall constitute a change in control for this purpose

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. "**Net Worth of Lessee**" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) An assignment or subletting without consent shall, at Lessor's option, be a Default curable after notice per Paragraph 13.1(d), or a non-curable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignmentor subletting as a non curable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessee's remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or Injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time consent is requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding the foregoing, allowing a de minimis portion of the Premises, ie. 20 square feet or less, to be used by a third party vendor in connection with the installation of a vending machine or pay phone shall not constitute a subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 **Terms and Conditions Applicable to Assignment and Subletting.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Regardless of Lessor's consent, no assignment or subletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee s Default or Breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor's consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor's remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor's determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration for Lessor's considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Lessor's consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 **Additional Terms and Conditions Applicable to Subletting.** The following terms and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee hereby assigns and transfers to Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee's obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee's then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee's obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee.

**13.** **Default; Breach; Remedies.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 **Default; Breach. A** "**Default**" is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A "**Breach**" is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity a second time then, the Lessor may elect to treat such conduct as a non-curable Breach rather than a Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 2.9 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a **"debtor"** as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach of its guaranty obligation on an anticipatory basis, and Lessee's failure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 **Remedies**. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover any damages to which Lessor is otherwise entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor's interests, shall not constitute a termination of the Lessee's right to possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 **Inducement Recapture.** Any agreement for free or abated rent or other charges, the cost of tenant improvements for Lessee paid for or performed by Lessor, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee's entering into this Lease, all of which concessions are hereinafter referred to as **"Inducement Provisions,"** shall be deemed conditioned upon Lessee's full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 **Late Charges.** Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessorwill incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 **Interest.** Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall bear interest from the 31st day after it was due. The interest ("**Interest**") charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 **Breach by Lessor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice of Breach.** Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished to Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation is such that more than 30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance by Lessee on Behalf of Lessor.** In the event that neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee's expense and offset from Rent the actual and reasonable cost to perform such cure, provided however, that such offset shall not exceed an amount equal to the greater of one month's Base Rent or the Security Deposit, reserving Lessee's right to reimbursement from Lessor for any such expense in excess of such offset. Lessee shall document the cost of said cure and supply said documentation to Lessor.

**14. Condemnation.** If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively **"Condemnation"),** this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the floor area of the Unit, or more than 25% of the parking spaces is taken by Condemnation, Lessee may, at Lessee's option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation paid by the condemnor for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation.

**15. Brokerage Fees.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 **Additional Commission.** In addition to the payments owed pursuant to Paragraph 1.10 above, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee or anyone affiliated with Lessee acquires from Lessor any rights to the Premises or other premises owned by Lessor and located within the Project, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by agreement or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the fee schedule of the Brokers in effect at the time the Lease was executed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 **Assumption of Obligations.** Any buyer or transferee of Lessor's interest in this Lease shall be deemed to have assumed Lessor's obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to pay such amounts within 10 days after said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee's Broker shall be deemed to be a third party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor's Broker for the limited purpose of collecting any brokerage fee owed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 **Representations and Indemnities of Broker Relationships.** Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker, agent or finder (other than the Brokers and Agents, if any) in connection with this Lease, and that no one other than said named Brokers and Agents is entitled to any commission or finder's fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' fees reasonably incurred with respect thereto.

**16. Estoppel Certificates.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party (as **"Responding Party")** shall within 10 days after written notice from the other Party (the **"Requesting Party")** execute, acknowledge and deliver to the Requesting Party a statement in writing inform similar to the then most current **"Estoppel Certificate"** form published BY AIR CRE, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party's performance, and (iii) if Lessor is the Requesting Party, not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. In addition, Lessee acknowledges that any failure on its part to provide such an Estoppel Certificate will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to execute and/or deliver a requested Estoppel Certificate in a timely fashion the monthly Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for remainder of the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to provide the Estoppel Certificate. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to provide the Estoppel Certificate nor prevent the exercise of any of the other rights and remedies granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within 10 days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee's financial statements for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth.

**17. Definition of Lessor.** The term **"Lessor"** as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.

**18. Severability.** The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.

**19. Days.** Unless otherwise specifically indicated to the contrary, the word **"days"** as used in this Lease shall mean and refer to calendar days.

**20. Limitation on Liability.** The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members, directors, officers or shareholders, or any of their personal assets for such satisfaction.

**21. Time of Essence.** Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.

**22. No Prior or Other Agreements; Broker Disclaimer.** This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party.

**23. Notices.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1 **Notice Requirements.** All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, or by email, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2 **Date of Notice.** Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices delivered by hand, or transmitted by facsimile transmission or by email shall be deemed delivered upon actual receipt. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3 **Options.** Notwithstanding the foregoing, in order to exercise any Options (see paragraph 39), the Notice must be sent by Certified Mail (return receipt requested), Express Mail (signature required), courier (signature required) or some other methodology that provides a receipt establishing the date the notice was received by the Lessor.

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**24. Waivers.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

**25. Disclosures Regarding The Nature of a Real Estate Agency Relationship.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Lessor's Agent</u>.* A Lessor's agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor's agent or subagent has the following affirmative obligations: *<u>To the Lessor</u>:* A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessor. *<u>To the Lessee and the Lessor:</u>* (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *<u>Lessee's Agent</u>.* An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. *<u>To the Lessee</u>:* A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. *<u>To the Lessee and the Lessor</u>:* (a) Diligent exercise of reasonable skills and care in performance of the agent's duties, (b) A duty of honest and fair dealing and good faith, (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Agent *Representing Both Lessor and Lessee*</u>*.* A real estate agent, either acting directly or through one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor and the Lessee: (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. (b) Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not, without the express permission of the respective Party, disclose to the other Party confidential information, including, but not limited to, facts relating to either Lessee's or Lessor's financial position, motivations, bargaining position, or other personal information that may impact rent, including Lessor's willingness to accept a rent less than the listing rent or Lessee's willingness to pay rent greater than the rent offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Both Lessor and Lessee should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs and attorneys' fees), of any Broker with respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor and Lessee agree to identify to Brokers as "Confidential" any communication or information given Brokers that is considered by such Party to be confidential.

**26. No Right To Holdover.** Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the expiration or termination. Holdover Base Rent shall be calculated on monthly basis. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee.

**27. Cumulative Remedies.** No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

**28. Covenants and Conditions; Construction of Agreement.** All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.

**29. Binding Effect; Choice of Law.** This Lease shall be binding upon the parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located.

**30. Subordination; Attornment; Non-Disturbance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1 **Subordination.** This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively, **"Security Device"),** now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as **"Lender")** shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2 **Attornment.** In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will automatically become a new lease between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor's obligations, except that such new owner shall not: (a) be liable for any actor omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month's rent, or (d) be liable for the return of any security deposit paid to any prior lessor which was not paid or credited to such new owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3 **Non-Disturbance.** With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a **"Non-Disturbance Agreement")** from the Lender which Non-Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, if requested by Lessee, use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee's option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.4 **Self-Executing.** The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.

**31. Attorneys Fees.** If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, **"Prevailing Party"** shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' fees reasonably incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation).

**32. Lessor's Access; Showing Premises; Repairs.** Lessor and Lessor's agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect on Lessee's use of the Premises. All such activities shall be without abatement of rent or liability to Lessee.

**33. Auctions.** Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor's prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction.

**34. Signs.** Lessor may place on the Premises ordinary "For Sale" signs at anytime and ordinary "For Lease" signs during the last 9 months of the term hereof. Except for ordinary "For Sublease" signs which may be placed only on the Premises, Lessee shall not place any sign upon the Project without Lessor's prior written consent. All signs must comply with all Applicable Requirements.

**35. Termination; Merger.** Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessor's failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor's election to have such event constitute the termination of such interest.

**36. Consents.** All requests for consent shall be in writing. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor's consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days following such request.

**37. Guarantor.**

37.1 **Execution.** The Guarantors, if any, shall each execute a guaranty in the form most recently published BY AIR CRE.

37.2 **Default.** It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor's behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect.

**38. Quiet Possession.** Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof.

**39. Options.** If Lessee is granted any option, as defined below, then the following provisions shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.1 **Definition, "Option"** shall mean: (a) the right to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase, the right of first offer to purchase or the right of first refusal to purchase the Premises or other property of Lessor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.2 **Options Personal To Original Lessee.** Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.3 **Multiple Options.** In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised.

39.4 **Effect of Default on Options.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or(iv) in the event that Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise an Option because of the provisions of Paragraph 39.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee commits a Breach of this Lease.

**40. Security Measures.** Lessee here by acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties.

**41. Reservations.** Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, and (iii) to create and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights.

**42. Performance Under Protest.** If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest" and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid "under protest" within 6 months shall be deemed to have waived its right to protest such payment.

**43. Authority; Multiple Parties; Execution.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

**44. Conflict.** Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions.

**45. Offer.** Preparation of this Lease by either party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.

**46. Amendments.** This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee's obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises.

**47. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.**

**48. Arbitration of Disputes.** An Addendum requiring the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease □ is □ is not attached to this Lease.

**49. Accessibility; Americans with Disabilities Act.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Premises:

☑ have not undergone an inspection by a Certified Access Specialist (CASp). Note: A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.

☐ have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises met all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it received a copy of the inspection report at least 48 hours prior to executing this Lease and agrees to keep such report confidential.

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☐ have undergone an inspection by a Certified Access Specialist (CASp)and it was determined that the Premises did not meet all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it received a copy of the inspection report at least 48 hours prior to executing this Lease and agrees to keep such report confidential except as necessary to complete repairs and corrections of violations of construction related accessibility standards.

In the event that the Premises have been issued an inspection report by a CASp the Lessor shall provide a copy of the disability access inspection certificate to Lessee within 7 days of the execution of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since compliance with the Americans with Disabilities Act (ADA) and other state and local accessibility statutes are dependent upon Lessee's specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee's use of the Premises requires modifications or additions to the Premises in order to be in compliance with ADA or other accessibility statutes, Lessee agrees to make any such necessary modifications and/or additions at Lessee's expense.

**LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.**

**ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY AIR CRE OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:**

**1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.**

**2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE.**

**WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED.**

The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures.

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| Executed at: <u>DAN LUIS 0BISPO CA</u> | Executed at: <u>LUS ANGELES,CH</u> |
| On: <u>5.21.2019</u> | On: <u>5.20.2019</u> |
| **By LESSOR:** | **By LESSEE:** |
| <u>CBC Joint Venture Partners, a California</u> | <u>BWSC,LLC, a California limited liability</u> |
| <u>general partnership</u> | <u>Company dba WINC</u> |
| By:______________________________________ | By:_____________________________________ |
| Name Printed: <u>Robin L. Rossi</u> | Name Printed: MATT THELEN |
| Title : <u>Authorized Signatory</u> | Title: <u>GENERAL COUNSEL</u> |
| Phone : (<u>805) -545-7788</u> | Phone:<u>408.348.0337</u> |
| Fax: <u>805-543-4220</u> | Fax: ________________________________ |
| Email: <u>vickey@rossi-ent.com &</u> | Email: <u>MATT.THELEN@WINC.COM</u> |
| <u>rob@rossi-ent.com</u> |  |
| BY:_____________________________________ | BY:_____________________________________ |
| Name Printed:_________________________ | Name Printed:_________________________ |
| Title:________________________________ | Title:________________________________ |
| Phone: ______________________________ | Phone: ______________________________ |
| Fax:________________________________ | Fax:_________________________________ |
| Email:______________________________ | Email:________________________________ |
| Address:_____________________________ | Address:_____________________________ |
| Federal ID No.:_______________________ | Federal ID No.:_______________________ |

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**AIR CRE. 500 North Brand Blvd, Suite 900, Glendale, CA 91203, Tel 213-687-8777, Email contracts@aircre.com**

**NOTICE: NO part of these works may be reproduced in any form without permission in writing.**

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© 2019 AIR CRE. All Rights Reserved. Last Edited: 5/14/2019 2:34 PM <br> MTG-24.30, Revised 01-01-2019 Page 18 of 18

**ADDENDUM TO LEASE**

**between**

**CBC Joint Venture Partners, a California general partnership ("Lessor")<br> and**

**BWSC, LLC, a California limited liability company dba WINC ("Lessee")<br> regarding**

**a portion of 860 Stowell Road, Santa Maria, California**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50. <u>Supersession</u>. The terms of this Addendum shall supersede and control over any contrary terms or provisions in Paragraphs 1 through 51 of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51. <u>Entry Door Keying</u>. Lessee may, at Lessee's cost, re-key the entry doors to their Premises at any time; provided that **the new keys are mastered to Lessor's master system and Lessee provides Lessor with two (2) copies of the new key.** Any additional or replacement keys required by Lessee shall be at Lessee's cost, including re-keying if keys are lost. If Lessee fails to comply with this Paragraph 53 regarding providing copies of current keys to Lessor and Lessor expends any funds to enter the Premises, as allowed hereunder, or needs to re-key the Premises at the termination of the Lease as the keys then held by Lessor are not the then current keys to the Premise, this cost shall be reimbursed by Lessee or deducted from Lessee's Security Deposit in accordance with the terms of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52. <u>Signage</u>. In addition to any other requirements set forth in this Lease regarding Lessee's signage, Lessee's signage shall be consistent with the existing signage in the Project. Lessee shall be responsible for the cost of its signage including the installation costs and removal costs at the termination of occupancy. The repair of any damage to the Premises, Building or Project as a result of the removal of Lessee's signage shall be Lessee's responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53. <u>Specific Restrictions on Use</u>. Notwithstanding any other provision of this Lease, the Premises shall specifically not be used for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Pool rooms other than employee break room

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Off-track betting parlors or any other form of legalized gambling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Adult bookstore, adult entertainment or adult "gentlemen's club"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Drug paraphernalia sales

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Video game room other than employee break room

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Massage parlor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Bowling alley

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Tattoo and/or body piercing shop

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54. <u>Delivery "AS IS"</u>. The Premises is being delivered **"AS-IS"** and **"WITH ALL FAULTS."**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55. <u>Tenant Improvements - Lessee's Work</u>. In addition to any requirements set forth in Paragraph 7 of the Lease, Lessee, at Lessee's sole cost and expense, may construct, erect, or install tenant improvements to the Premises, including but not limited to signage ("Lessee's Work"), in accordance with this Paragraph 55 and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Approval of Plans</u>. PRIOR TO MAKING ANY GOVERNMENTAL APPLICATIONS REGARDING LESSEE'S WORK, INCLUDING BUT NOT LIMITED TO APPLICATIONS REGARDING LESSEE'S SIGNAGE, Lessee shall deliver to Lessor in writing for its approval, which approval shall not be unreasonably withheld, the necessary drawings and specifications (the "Drawings") for the Lessee's Work. If Lessor does not approve the Drawings as delivered by Lessee, Lessor shall, within ten (10) business days of submission thereof, advise Lessee of the changes required in the Drawings so that they will meet the Lessor's approval. In the event Lessor neither approves nor rejects such Drawings within the time provided, and such failure continues for three (3) business days following a notice to Lessor, such Drawings shall be deemed approved. Lessee shall cause the Drawings to be revised and delivered to Lessor for its final review and approval after Lessee's receipt of such advice. Notwithstanding the above, Lessee shall have the right, at its sole cost and expense, to install a fence around its dedicated parking area.

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| Initials | initials |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Contractor's Insurance</u>. Lessee shall not permit Lessee's contractors to commence any work until all required insurance has been obtained by Lessee's contractors and certificates evidencing such coverage have been delivered to Lessor. Lessee's contractors shall secure, pay for and maintain during the continuance of their respective work within the Building, insurance, which shall be endorsed in all policies to include Lessor and its mortgagee and their respective employees and agents as additional insured parties and which shall provide thirty (30) days' prior written notice of any alteration or termination of coverage. Lessor shall have the right, by delivery of a facsimile notice to Lessee, followed by a copy of such notice delivered by overnight delivery, to cause Lessee to cease any activities which would violate the provisions of this paragraph.

Lessee's contractors shall procure, pay for and keep in full force and effect:

&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. Commercial General Liability insurance with respect to the Premises and the operations on or on behalf of the contractors in, on or about the Premises, including but not limited to personal injury, product liability (if applicable), blanket contractual, broad form property damage liability coverage, with a minimum limit of $2,000,000 per occurrence and $4,000,000 in the aggregate.

&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. Automobile Liability Insurance for all owned, non-owned, and hired vehicles with a minimum limit of $1,000,000 per accident.

&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. Workers' Compensation coverage as required by law, together with Employers Liability coverage with a limit of not less than $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56. <u>Property Remaining on Premises following Lease Termination</u>. Lessee shall remove all its personal property on or before the expiration of the Lease Term. All or any part of the Lessee's personal property, equipment, trade fixtures, or inventory remaining at the Premises subsequent to the expiration or sooner termination of the Lease Term shall, at Lessor's option, automatically become Lessor's property at no cost or expense to Lessor, and without any further consideration being paid to Lessee. Alternatively, Lessor may consider any or all of such property as refuse, and remove the same at Lessee's expense without further notice to Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57. <u>Trash/Recyclables, Handling & Disposal</u>. Lessee shall be responsible for its own trash and refuse disposal. Lessee shall be required to adhere to City of Santa Maria requirements for recycling of cardboard and other recyclables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58. <u>Plate Glass</u>. Notwithstanding any other provision of this Lease, Lessee shall be solely responsible for the maintenance, cleaning (interior and exterior), repair and replacement of any plate glass at the Premises during the Lease Term. Lessor is not insuring plate glass.

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| Initials | initials |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59. <u>Premises</u>. The parties acknowledge that Lessee has prior to the Commencement Date, been a sub-tenant of Terravant Wine Company, LLC ("Terravant") and is essentially occupying the same space; provided, however, that Lessee's products may be stored in various spaces in the Terravant Premises and it may take areasonable amount of time not to exceed 30 days for Lessee to consolidate all of its products within the Premises specified herein. It is Lessor's intention to demise Lessee's space with a chain link fence no less than 6 ft in height. Until such time as such demising fence is installed, Lessee shall employ the highest diligence in maintaining its product within the 22,000 sf Premises designated on Exhibit A attached hereto. Notwithstanding any other provision of this Lease, Lessor shall have the right to relocate Lessee into an commercially reasonably equivalent alternate 22,000 sf premises within the Building upon no less than 30 days' written notice.

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| Initials | initials |

---

**EXHIBIT A – PREMISES**

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| Initials | initials |

---

![](amass003_ex10-21img01.jpg)

**EXHIBIT B - PROJECT SITE PLAN AND RESERVED PARKING**

---

| | |
|:---|:---|
| ![](amass003_ex10-21img03.jpg) | |
| ![](amass003_ex10-21img04.jpg) | |
| Initials | initials |

---

![](amass003_ex10-21img02.jpg)

## Exhibit 10.22

**Exhibit 10.22**

**FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMERCIAL MULTI-TENANT LEASE - GROSS**

THIS FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMERCIAL MULTI-TENANT LEASE - GROSS is made and entered into at Santa Maria, California on the 10 day of September, 2020, by and between Columbia Business Center Partners L.P., a California limited partnership ("Lessor"), and BWSC, LLC, a California limited liability company DBA WINC ("Lessee"), with reference to the following facts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. CBC Joint Venture Partners, a California general partnership ("JV"), and Lessee executed that certain Standard Industrial/Commercial Multi-Tenant Lease - Gross, dated May 15, 2019, for reference purposes only, regarding that certain Premises, located at 860 E. Stowell Road, Santa Maria, CA 93454 (the "Lease");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. At the time of execution of the Lease, it was anticipated by Lessor that by the time the Lease Term commenced, the subject Premises would be transferred by Lessor to JV and that JV would be the "Lessor" under the Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The subject Premises was not transferred to JV;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Lessor desires to formally ratify, reaffirm and adopt the Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Lessee has requested additional space and Lessor is willing to Lease Lessee additional space such that the "Premises" shall become that certain Premises consisting of 31,310 SF, as depicted on Exhibit A attached hereto and incorporated herein by this reference.

NOW, THEREFORE, in consideration of the premises, promises and covenants herein contained, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Except as to those capitalized terms specifically defined herein, all capitalized terms shall be as provided in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;2. JV hereby quitclaims and assigns to Lessor any and all remaining interests in the Lease which JV has as of this date, and Lessor hereby
ratifies, affirms and adopts the Lease, as amended by this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The parties agree that Lessor shall for purposes be substituted as "Lessor" under the Lease effective as of the Commencement
Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Lessor shall indemnify, defend and hold JV free and harmless from all loss, cost, damage, liability or expense related to any claim
arising out of the allegation that JV was "Lessor" under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;3. Effective August 31, 2020, the Premises shall consist of the space which is 31,310 SF in size and is as designated on Exhibit A attached
hereto. The parties acknowledge and agree that the formal address of the Premises as assigned by the City of Santa Maria, California is
860 E. Stowell Road, Santa Maria, CA 93454.

&nbsp;&nbsp;&nbsp;&nbsp;4. Effective September 1, 2020, the Base Rent shall be Nineteen Thousand Four Hundred Twelve and 00/100 Dollars ($19,412) per month.
The Base Rent shall be adjusted as provided for in Paragraph 6.

&nbsp;&nbsp;&nbsp;&nbsp;5. The Lease Term shall hereby be extended from May 31, 2021, to December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;6. Effective June 1, 2021, the Base Rent shall be increased by Three Percent (3%), such that the new Base Rent will be Nineteen Thousand
Nine Hundred Ninety-Four and 00/100 Dollars ($19,994) per month.

&nbsp;&nbsp;&nbsp;&nbsp;7. Except as specifically modified hereunder the Lease remains unmodified and in full force and effect.

ENTERED INTO at Santa Maria, California, effective on the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **"LESSOR"** | **"LESSOR"** | **"LESSEE"** | **"LESSEE"** |
| Columbia Business Center Partners L.P., | Columbia Business Center Partners L.P., | BWSC, LLC, a California | BWSC, LLC, a California |
| A California limited partnership | A California limited partnership | limited liability company DBA WINC | limited liability company DBA WINC |
| By: | Columbia Business Center, Inc. | By: | /s/ Matthew Thelen |
|  | A California corporation |  |  |
|  |  | Name: | Matthew Thelen |
| By: | /s/ Robin L. Rossi |  |  |
|  | Robin L. Rossi, President | Title: | General Counsel |

---

---

| | |
|:---|:---|
| **"JV"** | **"JV"** |
| CBC Joint Venture Partners, | CBC Joint Venture Partners, |
| a California general partnership | a California general partnership |
| Columbia Business Center Partners L.P., | Columbia Business Center Partners L.P., |
| A California limited partnership | A California limited partnership |
| By: | Columbia Business Center, Inc. |
|  | A California corporation |
| By: | /s/ Robin L. Rossi |
|  | Robin L. Rossi, President |
| Covelop Holding, LLC | Covelop Holding, LLC |
| A California limited-liability company | A California limited-liability company |
| By: | /s/ Damien Mavis |
|  | Damien Mavis, Manager |

---

![](amass003_ex10-22img01.jpg)

## Exhibit 10.24

**Exhibit 10.24**

**THIRD AMENDMENT TO STANDARD INDUSTRIAL/COMERCIAL MULTI-TENANT LEASE - GROSS**

THIS THIRD AMENDMENT TO STANDARD INDUSTRIAL/COMERCIAL MULTI-TENANT LEASE - GROSS is made and entered into at Santa Maria, California dated the 20<sup>th</sup> day of August, 2021, for reference purposes only, by and between Columbia Business Center Partners L.P., a California limited partnership ("Lessor"), and BWSC, LLC, a California limited liability company DBA WINC ("Lessee"), with reference to the following facts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Lessor (or Lessor's predecessor in interest) and Lessee previously entered into that certain Standard Industrial/Commercial Multi-Tenant Lease - Gross, dated May 15, 2019, for reference purposes only, regarding that certain Premises, located at 860 E. Stowell Road, Santa Maria, CA 93454, as it was amended by that certain First Amendment to Standard Industrial/Commercial Multi-Tenant Lease - Gross, dated September 10, 2020, and that certain Second Amendment to Standard Industrial/Commercial Multi-Tenant Lease - Gross, dated March 20, 2021 (collectively, the "Lease");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Lease Term currently expires on December 31, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Lessee has requested an expansion to the Premises, and Lessor has delivered to Lessee additional space of 11,940 SF (the "Expansion Premises"), effective August 1, 2021;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Lessor has determined that the Second Amendment to Lease incorrectly included 280 SF of common exit corridor space as part of Lessee's premises (for which Lessee has previously received appropriate credit); therefore, the Lessee's premises will be reduced, such that the total "Premises" has become that certain Premises consisting of 72,244 SF assigned to two (2) addresses, 860 and 862 E. Stowell Road, Santa Maria, CA 93454, as depicted on Exhibit A attached hereto and incorporated herein by this reference, all in accordance with the terms and conditions contained in the Lease as amended by this Third Amendment.

NOW, THEREFORE, in consideration of the premises, promises and covenants herein contained, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Capitalized Terms</u>. Except as to those capitalized terms specifically defined herein, all capitalized terms shall be as provided
in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Premises</u>. Commencing August 1, 2021, Lessor previously delivered possession of the Expansion Premises in the Building, which
shall be added to the "Premises," and thereafter, the total Premises shall consist of a space 72,244 SF in size as depicted
on Exhibit A attached hereto. The parties acknowledge and agree that the formal addresses of the Premises as assigned to the Premises
by the City of Santa Maria, California are 860 and 862 E. Stowell Road, Santa Maria, CA 93454. Lessor has demised the Expansion Premises
from the remaining premises in the Building (<u>i.e.</u>, the adjoining Idler's premises at 870 E. Stowell Road) by a chain link fence
and gate.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Base Rent Increase</u>. Effective August 1, 2021, the Base Rent for the Premises shall be increased $7,403 to a total of $44,791
per month ("New Base Rent"). Base Rent shall continue to be adjusted pursuant to Paragraph ____ of the Second Amendment to
Lease.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Supersession</u>. The terms and provisions of this Third Amendment shall prevail over any contrary terms of the existing Lease,
as amended. Except as specifically modified hereunder, the Lease remains unmodified and in full force and effect.

ENTERED INTO at Santa Maria, California, effective on the date first above written.

---

| | |
|:---|:---|
| **"LESSOR"** | **"LESSEE"** |
| Columbia Business Center Partners L.P.,<br> A California limited partnership | BWSC, LLC, a California<br> limited liability company DBA WINC |

---

---

| | | | |
|:---|:---|:---|:---|
| By: | Columbia Business Center, Inc. | By: | **/s/** Matthew Thelen |
|  | A California corporation |  |  |
|  |  | Name: | Matthew Thelen |
| By: | /s/ Robin L. Rossi |  |  |
|  | Robin L. Rossi, President | Title: | general counsel |

---

**EXHIBIT A**

**TO**

**THIRD AMENDMENT TO LEASE**

Premises

![](amass003_ex10-24img01.jpg)

## Exhibit 10.25

**Exhibit 10.25**

**FOURTH AMENDMENT TO STANDARD INDUSTRIAL/COMERCIAL MULTI-TENANT LEASE - GROSS**

THIS FOURTH AMENDMENT TO STANDARD INDUSTRIAL/COMERCIAL MULTI-TENANT LEASE - GROSS is made and entered into at Santa Maria, California dated the 29th day of March, 2024, for reference purposes only, by and between Columbia Business Center Partners L.P., a California limited partnership ("Lessor"), and Amass Brands Inc. DBA Amass Brands Group ("Lessee"), with reference to the following facts:

&nbsp;&nbsp;&nbsp;&nbsp;A. Lessor (or Lessor's predecessor in interest)
 and Lessee's predecessor-in-interest previously entered into that certain Standard Industrial/Commercial
 Multi-Tenant Lease - Gross, dated May 15, 2019, for reference purposes only, regarding that
 certain Premises, located at 860 E. Stowell Road, Santa Maria, CA 93454, as it was amended
 by that certain First Amendment to Standard Industrial/Commercial Multi-Tenant Lease-Gross,
 dated September 10, 2020, that certain Second Amendment to Standard Industrial/Commercial
 Multi-Tenant Lease - Gross, dated March 20, 2021, and that certain Third Amendment to Standard
 Industrial/Commercial Multi-Tenant Lease - Gross, dated August 20, 2021 (collectively, the
 "Lease");

&nbsp;&nbsp;&nbsp;&nbsp;B. Lessee purchased assets of BWSC, LLC,
 a California limited liability company, was the assignee of the leasehold interest in the
 Premises in that transaction and is now the "Lessee" under the Lease for all
 purposes.

&nbsp;&nbsp;&nbsp;&nbsp;C. The Lease Term currently expires on
 December 31, 2024, however, in accordance with the Third Amendment, if neither party notifies
 the other by March 31, 2024 that the Lease is terminating effective December 31, 2024, the
 Term will be extended through December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;D. The size of the Premises is currently
 72,244 sf at the following addresses: 860 and 862 E. Stowell Road, Santa Maria, CA 93454
 and Lessee is currently paying a monthly Base Rent of $48,930.

&nbsp;&nbsp;&nbsp;&nbsp;E. Lessee has requested that Lessor reduce
 the amount of space contained in the Lease Premises and Lessor is agreeable to reducing the
 amount of space contained in the Lease Premises in accordance with the terms and conditions
 of this Fourth Amendment.

NOW, THEREFORE, in consideration of the premises, promises and covenants herein contained, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Capitalized Terms</u>. Except as
 to those capitalized terms specifically defined herein, all capitalized terms shall be as
 provided in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Premises</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Lessor will promptly use commercially
 reasonable efforts to find one or more tenants to rent portions of the Premises in place
 of Lessee, up to a total maximum of approximately 25,000 - 27,000 sf of the Premises. This
 approximately 25,000 - 27,000 sf portion of the Premises is depicted on the Exhibit attached
 hereto and is divided into three (3) sections denoted as "A," "B,"
 and "C." Lessee acknowledges that (i) these depictions are only examples and
 approximations of the portions that Lessor could rent to other tenants, and (ii) the exact
 dimensions of any portion of the Premises rented to other tenants will only be determined
 at the time a lease with a new tenant is executed by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In
 the event Lessor finds a tenant that will rent a portion of the Premises, Lessor will notify
 Lessee in writing at least 15 days prior to the date that the replacement tenant is scheduled
 to take possession and Lessee will cooperate with Lessor to surrender the portion of the
 Premises being rented to a new tenant on or before two days prior to the date that the new
 tenant is scheduled to take possession. With regard to the portion of the Premises re-leased
 to other tenants, Lessee's assigned number of parking spaces shall be reduced effective as
 of the date that the new tenant takes possession of the applicable portion of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Notwithstanding that Lessee has surrendered
 possession of a portion of the Premises in order that a replacement tenant could take possession
 of such portion of the Premises, except as provided in section d. below, Lessee shall be
 required to continue paying Base Rent with regard to such portion of the Premises until the
 earlier of: (i) the date the new tenant commences paying Base Rent on such portion of the
 Premises; or (ii) sixty (60) days after the new tenant takes possession of the such portion
 of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If by December 31, 2024, Lessor has
 not re-leased any of the Premises to other tenants, Lessor agrees to reduce the size of the
 Premises, commencing on January 1, 2025, by approximately 14,000 sf with a proportionate
 reduction in monthly Base Rent (but still subject to Rent Adjustment, as provided in the
 Lease) and a proportionate reduction in parking spaces allocated to the Premises. In such
 event, Lessee shall surrender this approximately 14,000 sf of space broom clean on or before
 the close of business on December 31, 2024. Strictly as an example, if on January 1, 2025,
 the Premises is reduced in size by exactly 14,000 sf in accordance with this section d.,
 then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The size of the Premises would be 58,244
 sf or 80.62% the size of the Premises on December 31, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Assuming that the Base Rent Adjustment
 which is scheduled to occur on January 1, 2025 is 3%, the Base Rent effective January 1,
 2025 will = ($48,930 x 80.62%) = $39,448 x Base Rent Adjustment 103% = $40,631 per month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. If by December 31, 2024, Lessor has
 re-leased a portion of the Premises to other tenants, the required square footage reduction
 of the Premises described in Section d. above shall be reduced by the amount of square footage
 actually re-leased (but not below zero).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Lessor is entitled to reasonably determine
 the configuration of the Premises after any reduction of the Premises, in order to maximize
 Lessor's ability to re-lease the portion of the Premises being eliminated from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. At
 Lessor's option, Lessor shall demise the Premises from any other premises in the Building
 by either a chain link fence or a solid wall. Lessee shall cooperate with Lessor's installation
 of a demising wall, including cooperation with reasonable intrusion into the Premises during
 construction of such a wall. There shall be no abatement of Base Rent for any such intrusion.
 In no event during any such installation shall Lessor materially obstruct Lessee's access
 for ingress and egress to and from the Premises,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. At the time that Lessee relinquishes
 any portion of the area marked "A" on the attached Exhibit, Lessee shall relinquish
 the address at 860 E. Stowell Rd and shall retain only the address of 862 E. Stowell Rd.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Automatic Extension of Lease Term</u>. The expiration of the Lease Term shall hereby be extended until
 December 31, 2025. Notwithstanding the preceding, in the event either party does not notify
 the other in writing ("Termination Notification") on or before March 31, 2025,
 confirming that the Lease shall expire on December 31, 2025, the Lease Term shall automatically
 and immediately be extended through December 31, 2026. Thereafter, in the event one party
 does not give the Termination Notice on or before March 31 of each ensuing calendar year,
 the Lease Term shall automatically and immediately be extended through December 31 of the
 following calendar year. For example, if the Lease Term has been previously extended through
 December 31, 2026 and Lessee does not give the Termination Notice on or before March 31,
 2026, the Lease Term shall automatically and immediately be extended through December 31,
 2027.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Supersession</u>. The terms and provisions
 of this Third Amendment shall prevail over any contrary terms of the existing Lease, as amended.
 Except as specifically modified hereunder, the Lease remains unmodified and in full force
 and effect.

ENTERED INTO at Santa Maria, California, effective on the date first above written.

---

| | |
|:---|:---|
| **"LESSOR"** | **"LESSEE"** |
| Columbia Business Center Partners L.P.,<br> A California limited partnership | AMASS BRANDS INC. |

---

---

| | | | |
|:---|:---|:---|:---|
| By: | Columbia Business Center, Inc. | By: | /s/ ERIN K. GREEN |
|  | A California corporation |  |  |
|  |  | Name: | ERIN K. GREEN |
| By: | /s/ Robin L. Rossi |  |  |
|  | Robin L. Rossi, President | Title: | COO |

---

![](amass003_ex10-25img01.jpg)

## Exhibit 10.28

**Exhibit 10.28**

**Certain identified information has been excluded… because it is both not material and is the type of information the registrant treats as private or confidential. Redactions are indicated by [\*\*\*].**

**<u>WAREHOUSE AND LOGISTICS SERVICES AGREEMENT</u>**

THIS WAREHOUSE AND LOGISTICS SERVICES AGREEMENT (this **"Agreement",** dated as of July 31, 2024, and effective as of August 1, 2024 (the **"Effective Date"),** is entered into between **[\*\*\*],** a New Jersey limited liability company (the **"Warehouse Operator"),** and Maison Thomas **("Customer",** and together with Warehouse Operator, the **"Parties",** and each, a **"Party").** 

WHEREAS, FDL operates temperature-controlled warehouses located in the state of New Jersey for customers in the wine, spirits, and cheese industry, and also provides related logistics services for such customers, including delivery by temperature-controlled trucks to certain locations within New Jersey and New York;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein after set forth 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. <u>Provision of Storage, Delivery and Related Services.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Warehouse Operator shall provide warehousing, storage, handling, delivery and related services described on **Schedule A** to this Agreement (collectively the **"Services")** for cases of wine, spirits, and other products acceptable to Warehouse Operator which are tendered for storage by Customer from time to time under this Agreement (the **"Goods")** on behalf of Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Warehouse Operator provides additional services, including any special handling services not set forth on **Schedule A,** it shall provide them (i) for additional fees to be mutually agreed upon by Warehouse Operator and Customer and (ii) solely as agent for Customer, and no as a bailee or warehouseman.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Customer acknowledges that Warehouse Operator will only issue non-negotiable warehouse receipts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Warehouse Operator shall store the Goods at Warehouse Operator's warehouse location identified in the warehouse receipt issued by Warehouse Operator for such Goods (the **"Warehouse").** Storage shall be in a fully temperature-controlled facility (between fifty-five degrees (55°) and sixty-five degrees (65°) Fahrenheit at all times).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Delivery services shall be performed in temperature-controlled trucks. Delivery services are limited to the geographic areas within the states of New York and New Jersey specified on **Schedule A.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The terms and conditions of this Agreement, together with the quotations, terms and conditions contained in any warehouse receipts issued by Warehouse Operator for the Goods stored under this Agreement, constitute the sole and entire agreement of the parties with respect to the subject matter of this Agreement, and supersede all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Parties acknowledge and agree that if there is any conflict between the terms and conditions of this Agreement and the terms and conditions of any warehouse receipt issued to Customer in connection with the Goods, the terms and conditions of this Agreement shall supersede and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Tender of Goods for Storage</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer represents and warrants that it is the owner or has lawful possession of the Goods and all right and authority to store them with Warehouse Operator and thereafter direct the release and/or delivery of the Goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Warehouse Operator represents and warrants that it is duly licensed and has the experience to perform the Services set forth in the Schedules attached hereto in the various States set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Customer shall (i) tender any Goods for storage only during Warehouse Operator's posted business hours; (ii) tender all Goods to the Warehouse Operator properly marked and packed for storage and handling; (iii) provide Warehouse Operator with information concerning the Goods that is accurate, complete and sufficient to allow Warehouse Operator to comply with all laws and regulations concerning the storage, handling, processing, and transportation of the Goods; and (iv) furnish at or prior to tender of the Goods for storage a manifest in a form approved by Warehouse Operator listing any categories of Goods, brands or sizes to be separately kept and accounted for, and the types of storage and other services requested . Except as otherwise specified by Customer, Goods may be stored in bulk or in assorted lots, at the discretion of Warehouse Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Warehouse Operator may refuse to accept any goods for storage other than cases of wine, spirits or cheese. Before tendering Goods that require specialized handling or which are dangerous or hazardous, Customer shall identify such goods and special handling requirements to Warehouse Operator in writing and Warehouse Operator may decline to store such goods Customer is solely responsible for providing complete and accurate handling and storage instructions for any nonconforming Goods, including any applicable safety procedures. If Warehouse Operator accepts any such nonconforming goods for storage, Customer agrees to rates and charges as may be assigned and invoiced by Warehouse Operator as well as all terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For all Goods shipped to the Warehouse, Customer shall ensure that the bill of lading or other contract of carriage **("Transportation Contract")** as well as all declarations to government regulatory agencies (i) identify Customer as the named consignee, in care of Warehouse Operator, and (ii) do not identify Warehouse Operator as the consignee. If any Goods are shipped to the Warehouse naming Warehouse Operator as named consignee on the Transportation Contract, Customer shall promptly notify the carrier in writing that Warehouse Operator is (i) the "in care of party" only and (ii) does not have any beneficial title or interest in the Goods. Warehouse Operator may refuse to accept any Goods tendered for storage in violation of this provision, and shall not be liable for any loss or damage to, or mis-consignment of, such Goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Release and Delivery of Goods</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer shall provide Warehouse Operator written instructions via fax or electronic transmission (each, a **"Delivery Order")** if it desires to order any Goods released from the Warehouse, including any deliveries to be made by Warehouse Operator to Customer's designee. Delivery Orders are not effective until delivered to and accepted by Warehouse Operator Delivery Orders must be received by 4:30 pm local time for next day pick-up or delivery. Subject to receipt of such Delivery Order, Warehouse Operator shall release or deliver the requested Goods to Customer or its designee. Warehouse Operator reserves the right not to deliver or transfer Goods to or for the account of others except upon receipt of a Delivery Order from any authorized personnel of Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Warehouse Operator shall not be obligated to honor or accept any telephone orders for delivery from Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Warehouse Operator shall have twenty-four (24) hours (business day to business day) to make delivery after Goods are ordered out and, in the case of misplaced Goods, shall have a minimum of ten (10) business days after receipt of a Delivery Order in which to locate any misplaced Goods, and will notify Customer within such ten (10) business day period as to whether the misplaced Goods have been located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Warehouse Operator may without liability rely on any information contained in any Delivery Order or other written communication from Customer. Customer shall be responsible for all shipping, handling and other charges assessed by carriers and/or third parties in connection with the delivery and/or other shipment of the Goods by carriers and/or third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All instructions and requests for delivery of Goods or transfer or title are received subject to satisfaction of all charges, liens and security interests of Warehouse Operator with respect to the Goods to be delivered or transferred, whether for accrued charges or advances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Warehouse Operator may require, as a condition precedent to delivery, a statement from Customer holding Warehouse Operator harmless from claims of others asserting a superior right to that of Customer to possession of the Goods. Nothing herein shall preclude Warehouse Operator from exercising any other remedy available to it under law to resolve conflicting claims to possession of the Goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Transfer of Goods</u>. Warehouse Operator may move, upon notice to Customer, any Goods in storage from the Warehouse to any other warehouse facilities owned or leased by Warehouse Operator. Warehouse Operator may, without notice, move any or all of the Goods from one location within such Warehouse or other warehouse in which the Goods are stored to another location within the same facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Warehouse Lien</u>. Warehouse Operator shall have a lien on the Goods and upon the proceeds from the sale thereof to secure Customer's payment of all fees, charges and expenses hereunder in connection with the storage, transportation, preservation, and handling of the Goods as well as for like charges and expenses in relation to any other goods whenever deposited with Warehouse Operator by Customer. Warehouse Operator may enforce this lien at any time including by selling all or any part of the Goods in accordance with applicable law, except to the extent there is a bona fide dispute regarding any unpaid invoice in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Storage, Handling and Delivery Charges; Minimum Annual Delivery Commitment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer shall pay the storage, handling and delivery charges and service fees at the rates set forth on **Schedule A,** subject to adjustment as set forth below in Sections 6(e), 6(g) and 6(h). Delivery rates are subject to a transportation surcharge (currently 19%) which is subject to increase or decrease from time to time based on market conditions as reasonably determined by the Warehouse Operator (including, without limitation, any changes in fuel prices, tolls and other fees and any "congestion pricing" fees that may become applicable within Manhattan or any other location in which the Warehouse Operator makes deliveries for Customer) and consistent with industry standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Storage charges commence upon the date that Warehouse Operator accepts care, custody and control of the Goods, regardless of unloading date or date a warehouse receipt is issued. All Goods are stored on a month-to-month basis, and the storage month is a calendar month, Storage rates are quoted on a "split month" basis, as follows: (i) a full month's storage charge will apply to all Goods received between the first and the 15th, inclusive, of a calendar month; (ii) one- half month's storage charge will apply to all Goods received between the 16th and next-to-last day, inclusive, of a calendar month; (iii) no initial month storage charge will apply to all Goods received on the last day of a calendar month; and (iv) a full month's storage charge will apply to all Goods in storage on the first day of a calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Handling and delivery charges cover only (i) the ordinary labor and duties incidental to receiving unitized Goods on pallets at the warehouse dock during normal warehouse hours, including loading and unloading, and (ii) the ordinary labor and duties incidental to delivering the Goods, palletized or un-palletized in case pack or other base units of measure, as specified in the instructions of Customer, to Customer's customers. Such handling and delivery charges will be at the rates specified in **Schedule A** attached hereto. Any additional handling work performed by Warehouse Operator will be at the rates specified in **Schedule A** attached hereto. When Goods are ordered out in quantities less than the quantity received, Warehouse Operator may make an additional charge for each order or each item of an order in accordance with the rates specified in **Schedule A** attached hereto. Delivery by Warehouse Operator of less than all units of any lot shall be made without subsequent sorting, except by special arrangement and subject to an additional charge at the rates specified in **Schedule A** attached hereto. Any work to pick and move stored Goods at a Warehouse for loading and dispatch on trucks operated or engaged by Customer as a result of the removal of stored Goods from a Warehouse in connection with any termination of this Agreement shall be subject to charges at normal pick rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Warehouse Operator shall not be liable for any demurrage or detention, any delays in unloading inbound cars, trailers or other containers, or any delays in obtaining and loading cars, trailers, or other containers for outbound shipment unless Warehouse Operator has failed to exercise reasonable care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to Sections 6(g) and 6(h) below, (i) the rates specified on **Schedule A** shall remain fixed through the first anniversary of the Effective Date and (ii) on each anniversary of the Effective Date, such rates will be increased by the Index Change (as hereinafter defined) for the applicable month and remain fixed for the succeeding one year period, and in each case, such revised rates shall be deemed to be incorporated into **Schedule A.** In the event market conditions require revised rates to increase more than the Index Change on any anniversary of the Effective Date, at any time during the term of this Agreement, Warehouse Operator will notify Customer in writing of such rates, and Customer will have a period of one hundred and twenty days (120) days from such notice to assess the market for other options, after which 120 days such revised rates shall become effective and deemed to be incorporated into **Schedule A,** unless Customer exercised its right to terminate this Agreement as set forth at Section 12 hereof. **"Index Change"** shall mean for any month in which an anniversary of the Effective Date occurs, the twelve month change (expressed as a percentage) in the "all items" index portion of the United States Department of Labor Bureau of Labor Statistics Consumer Price Index for All Urban Consumers (CPI-U) for the region New York - Newark - Jersey City (published at bls.gov); provided that if such index is no longer published, there shall be substituted therefor the index of consumer prices in such region most closely comparable to such index, after making such adjustments as may be prescribed by the agency publishing same or as otherwise may be required to compensate for changes subsequent to the date of this Agreement in items included or the method of compilation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All charges are exclusive of all sales, use, and excise taxes, and any other similar taxes, duties, and charges of any kind imposed by any governmental authority on any amounts payable by Customer. Customer shall be responsible for all such charges, costs, and taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The storage, handling and delivery rates set forth on **Schedule A** (subject to increase as set forth in Section 6(e)) are based on the service profile submitted by Customer reflecting Customer's expected mix of delivery locations, mix of FDL delivery (using Warehouse Operator's trucks) and LTL delivery (using third party trucks) and other services. In the event that Customer's actual mix of delivery locations and other services materially deviates from such profile during any calendar year (as reasonably determined by Warehouse Operator), Warehouse Operator may revise its storage, handling and delivery rates during January of the following calendar year, and such revised rates shall be deemed to be incorporated into **Schedule A, Schedule B** and **Schedule C.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In consideration of Warehouse Operator's willingness to fix its storage, handling and delivery rates for the term of this Agreement as set forth on **Schedule A** (subject to increase as set forth in Section 6(e)), Customer hereby commits to using Warehouse Operator to store a minimum number of cases of wine per month during each of the calendar years during the term of this Agreement beginning with the calendar year 2024, which shall be (i) 45,000 cases of wine and spirits per month during each of the calendar years 2024 and 2025 (with 2024 minimum number of cases being prorated to commence upon the date Customer sends Goods to Warehouse Operator for storage, if such date is after January 1, 2024) and (ii) 30,000 cases of wine and spirits per month during each of the calendar years 2025 and subsequent calendar years through the term of this Agreement. In the event that Customer's actual delivery quantities under this Agreement for any such calendar year are less than such minimum amount, Warehouse Operator may revise its storage, handling and delivery rates during January of the following calendar year, and such revised rates shall be deemed to be incorporated into **Schedule A.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Payment Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Storage charges for each storage period shall be invoiced to Customer in advance for (i) the initial month or partial month on the first day of storage and (ii) each succeeding month on the first day of such month. Handling, delivery and other charges and advances will be invoiced on a weekly basis. All charges and advances shall be due and payable within 30 days from the date of the invoice; provided that charges and advances related to an entire lot of Goods shall be due and payable at the time the entire lot of Goods is removed from storage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Customer shall pay interest on all late payments at the rate of 1.5% per month calculated from the date due until paid in full, except to the extent there is a bona fide dispute regarding any unpaid invoice in question. Customer shall reimburse Warehouse Operator for all costs incurred in collecting any late payments, including, without limitation, reasonable attorneys' fees after notice of default sent to Customer and failure to pay within three business days from the date of notice is received, except to the extent there is a bona fide dispute regarding any unpaid invoice in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition to all other remedies available under this Agreement or at law (which Warehouse Operator does not waive by the exercise of any rights hereunder), Warehouse Operator shall be entitled to suspend the release of any Goods or cease performance of any Services if Customer fails to pay any amounts when due hereunder and such failure continues for ten (10) days following written notice thereof unless Customer disputes the charges in good faith based upon a legitimate issue in the Services provided by Warehouse Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Warehouse Operator reasonably determines, based on publicly available information, that Customer's financial condition or creditworthiness is inadequate or unsatisfactory with notice to Customer and opportunity for Customer to provide a response to this claim of inadequate creditworthiness, then in addition to Warehouse Operator's other rights, it may without liability or penalty (i) accelerate all amounts due hereunder and (ii) modify the payment terms, including requiring Customer to make advance payment of all storage charges prior to release or delivery of Goods from storage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Deposit</u>. Warehouse Operator may require Customer to make a deposit at the time of execution of this Agreement to secure payment of any charges, advances or other obligations under this Agreement, which shall be set forth on **Schedule A.** Warehouse Operator may, at its option, apply such deposit against any such unpaid charges, advances or other obligations. Any unapplied portion of such deposit remaining following termination of this Agreement shall bel refunded to Customer within thirty (30) days of termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Limited Warranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Warehouse Operator shall be liable for any loss or damage to the Goods tendered, stored, or handled, however caused, unless such loss or damage resulted from (i) any packing failure of Customer's product or (ii) fire or other casualty for which Customer is required to provide contents insurance coverage as provided in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Warehouse Operator agrees that Warehouse Operator's duty of care extends to providing a sprinkler system at the Warehouse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless specifically agree to in writing, Warehouse Operator shall not be required to store Goods in a humidity-controlled environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Warehouse Operator shall be liable for loss of Goods due to inventory shortage on unexplained or mysterious disappearance of Goods, provided that Warehouse Operator shall be entitled to reimbursement for any credit or payment made to Customer for lost Goods that are subsequently located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Warehouse Operator shall not be liable for any loss or damage to Goods unless Customer gives written notice to Warehouse Operator of any claim within sixty (60) days after (i) release of the Goods by Warehouse Operator or (ii) Customer is notified by Warehouse Operator that loss or damage to part or all of the Goods has occurred. No lawsuit or other action may be maintained by Customer against Warehouse Operator for loss or damage to the Goods unless a timely written claim has been given by Customer as provided in the previous sentence and unless such lawsuit or other action is commenced no later than the earlier of: (x) nine (9) months after the date of delivery of the Goods to Customer or its nominee by Warehouse Operator or (y) nine (9) months after Customer is notified by Warehouse Operator that loss or damage to part or all of the Goods has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) IN NO EVENT SHALL WAREHOUSE OPERATOR'S LIABILITY UNDER THIS SECTION 9 EXCEED THE LANDED COST OF THE LOST OR DAMAGED GOODS. THE REMEDIES SET FORTH IN THIS SECTION 9 SHALL BE CUSTOMER'S SOLE AND EXCLUSIVE REMEDY AND WAREHOUSE OPERATOR'S ENTIRE LIABILITY FOR ANY BREACH OF WAREHOUSE OPERATOR'S OBLIGATIONS SET FORTH IN THIS SECTION 9.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Limitation of Liability</u>. **IN NO EVENT SHALL WAREHOUSE OPERATOR BE RESPONSIBLE OR LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, OR SPECIAL DAMAGES OF ANY TYPE OR NATURE WHATSOEVER AND HOWEVER ARISING, INCLUDING, WITHOUT LIMITATION, EXEMPLARY, OR PUNITIVE DAMAGES, LOST PROFITS OR REVENUES, OR DIMINUTION IN VALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF ANY PROVISION OF THIS AGREEMENT, WHETHER OR NOT THE POSSIBILITY OF SUCH DAMAGES HAS BEEN DISCLOSED IN ADVANCE BY CUSTOMER OR COULD HAVE BEEN REASONABLY FORESEEN BY ANY PERSON OR ENTITY, REGARDLESS OF THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED. IN NO EVENT SHALL WAREHOUSE OPERATOR'S AGGREGATE LIABILITY UNDER THIS AGREEMENT INCLUDING, BUT NOT LIMITED TO, WAREHOUSE OPERATOR S LIABILITY UNDER SECTION 9 OF THIS AGREEMENT, EXCEED THE TOTAL OF THE AMOUNTS PAID TO WAREHOUSE OPERATOR FOR THE SERVICES RENDERED HEREUNDER.** 

In the case of loss or damage to Goods for which Warehouse Operator is not liable, Customer shall be responsible for all charges incurred in removing and disposing of such Goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Warehouse Operator does not represent or warrant that the Warehouse or the contents of the Warehouse cannot be destroyed by fire or any other cause. Warehouse Operator will not be required to maintain a watchman, and Customer acknowledges that Warehouse Operator's failure to do so will not result in liability under Section 9 of this Agreement or constitute negligence under this Agreement or otherwise. Goods are not insured by Warehouse Operator for the benefit of Customer against fire or another casualty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the term of this Agreement, Customer shall, at its own expense, maintain and carry contents insurance in full force and effect against fire or other casualty to the Goods with financially sound and reputable insurers. Upon Warehouse Operator's request, Customer shall provide Warehouse Operator with a certificate of insurance from Customer's insurer evidencing the insurance coverage specified in this Agreement. Customer shall provide Warehouse Operator with fifteen (15) days' advance written notice in the event of a cancellation or material change in Customer's insurance policy. Except where prohibited by law, Customer shall require its insurer to waive all rights of subrogation against Warehouse Operator's insurers and Warehouse Operator

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Indemnity</u>. Customer shall indemnify, defend, and hold harmless Warehouse Operator and its officers, managers, employees, agents, affiliates, successors and permitted assigns (collectively, **"Indemnified Party")** against any and all losses, damages, liabilities, deficiencies claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including undercharges, rail demurrage, truck/intermodal detention or related charges and attorneys' fees, fees and the costs of enforcing any right to indemnification under this Agreement and the cost of pursuing any insurance providers, incurred by Indemnified Party arising out of or resulting from any claim of a third party or Warehouse Operator arising out of of occurring in connection with or from Customer's negligence, willful misconduct or breach of this Agreement (each a **"Warehouse Claim").** Customer shall not enter into any settlement of a Warehouse Claim without Warehouse Operator's or Indemnified Party's prior written consent. The provisions of this Section 12 shall survive the expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The initial term of this Agreement shall commence on the Effective Date and shall continue through the third anniversary of the Effective Date, and shall thereafter automatically renew for additional one year periods ending on the next subsequent anniversary of the Effective Date, in each case unless earlier terminated in accordance with this Section 13. Either Warehouse Operator or Customer may terminate this Agreement as of the third anniversary of the Effective Date, or any subsequent anniversary of the Effective Date during any one year renewal period, by providing written notice to the other Party at least one hundred twenty (120) days prior to such third anniversary date or subsequent anniversary date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to any remedies that may be provided under this Agreement, Warehouse Operator may terminate this Agreement with immediate effect upon written notice to Customer if: (i) Customer fails to pay any amount when due under this Agreement and such failure continues for thirty (30) days after Customer's receipt of written notice of nonpayment; (ii) Customer has not otherwise performed or complied with its obligations under any of the provisions contained in this Agreement, in whole or in part, and such failure continues for thirty (30) days after Customer's receipt of written notice thereof; (iii) Customer becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization or assignment for the benefit of creditors; or (iv) the Goods are a hazard to other property within the Warehouse or to the Warehouse itself or to persons as a result of the quality or condition of the Goods of which Warehouse Operator had no notice at the time of deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition to any remedies that may be provided under this Agreement, Customer may terminate this Agreement with immediate effect upon written notice to Warehouse Operator if: (i) Warehouse Operator fails to provide the Services set forth herein and such failure continues for thirty (30) days after Warehouse Operator's receipt of written notice of such failure; (iii) Warehouse Operator has not otherwise performed or complied with its obligations under any or the provisions contained in this Agreement, in whole or in part, and such failure continues for thirty (30) days after Warehouse Operator's receipt of written notice thereof; or (iii) Warehouse Operator becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization or assignment for the benefit of creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If this Agreement is terminated for any reason, Customer shall promptly arrange the removal of all Goods from the Warehouse, subject to payment of all outstanding fees and charges due hereunder. If Customer does not promptly remove such Goods, Warehouse Operator may, with at least thirty (30) days of advance written notice to Customer, without liability remove the Goods and sell the Goods at public or private sale without advertisement and with or without notification to all persons known to claim an interest in the Goods (to the last known place of business of the person to be notified) in the manner provided by law. If Warehouse Operator, after a reasonable effort, is unable to sell the Goods, it may dispose of them without liability in any lawful manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Waiver</u>. No waiver by Warehouse Operator or Customer of any of the provisions of this Agreement is effective unless explicitly set forth in writing and signed by Warehouse Operator or Customer, as may be the case. No failure by Warehouse Operator or by Customer to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement operates, or may be construed, as a waiver thereof. No single or partial exercise by Warehouse Operator or Customer, as may be the case, of any right, remedy, power or privilege hereunder precludes 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;15. <u>Force Majeure</u>. Warehouse Operator shall not be liable or responsible to Customer nor be deemed to have defaulted or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement when and to the extent such failure or delay is caused by or results from acts or circumstances beyond the reasonable control of Warehouse Operator including, without limitation, acts of God, flood, fire, earthquake, explosion, governmental actions, war, invasion or hostilities (whether war is declared or not), terrorist threats or acts, riot, or other civil unrest, national emergency, revolution, insurrection, pandemic, epidemic, lockouts, strikes or other labor disputes (whether or not relating to either Party's workforce), or restraints or delays affecting carriers or inability or delay in obtaining supplies of adequate or suitable materials, materials or telecommunication breakdown or power outage.

If Warehouse Operator has been unable to remove/deliver the Goods due to any reason specified in this Section 15, such Goods shall be subject to storage charges until such Goods are actually removed/delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>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 shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of these terms. Notwithstanding the foregoing, all limitations upon, and exceptions and defenses to, liability granted to Warehouse Operator shall be automatically extended to all parent, subsidiary and affiliated entities and all subcontractors of Warehouse Operator and the owners, directors, officers, employees and agents of each of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Choice of Law and Forum.</u> All matters arising out of or relating to this Agreement are governed by and construed in accordance with the internal laws of the State of New Jersey without giving effect to any choice or conflict of law provision or rule (whether of the State of New Jersey or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of the State of New Jersey. Any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted in the federal courts of the United States of America located in the State of New Jersey or the courts of the State of New Jersey located in Middlesex County, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Notices</u>. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement must be in writing and addressed to the other Party at its address(es) set forth below (or to such other address(es) that the receiving Party may designate from time to time in accordance with this Section). Unless otherwise agreed herein, all notices must be delivered by personal delivery, nationally recognized overnight courier or certified or registered mail (in each case, return receipt requested, postage prepaid) or email (with a copy sent by one of the foregoing means unless receipt of such email is confirmed or acknowledge by the receiving Party). Except as otherwise provided in this Agreement, a notice is effective only (a) or receipt by the receiving Party, and (b) if the Party giving the Notice has complied with the requirements of this Section.

---

| | |
|:---|:---|
| Notice to Warehouse Operator: | [\*\*\*] |
|  | Maison Thomas |
| Notice to Customer: |  |
|  | Attention: |
|  | email: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal or unenforceable in any specific situation or jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other situation or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendments</u>. No amendment to or modification of this Agreement is effective unless it is in writing and signed by an authorized representative of each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Cumulative Remedies</u>. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either Party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available at law, in equity, by statute, in any other agreement between the Parties, or otherwise. Notwithstanding the previous sentence, the Parties intend that Customer's rights under Section 9 are Customer's exclusive remedies for the events specified therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Assignment</u>. Neither Warehouse Operator nor Customer shall assign, transfer, delegate or subcontract any of its rights or obligations under this Agreement without the prior written consent of Warehouse Operator or Customer, as the case may be; provided, however, that Warehouse Operator may assign its rights and obligations under this Agreement, in whole or in part, to (a) any affiliate of Warehouse Operator provided that such assignment shall not relieve Warehouse Operator of its obligations hereunder, (b) any direct or indirect purchaser of all or substantially all of the assets of Warehouse Operator or (c) any lender to Warehouse Operator as security for borrowings, in each case without the consent of Customer. Any purported assignment or delegation in violation of this Section 22 shall be null and void. No assignment or delegation shall relieve Customer of any of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Successors and Assigns</u>. This Agreement is binding on and inures to the benefit of the Parties to this Agreement and their respective permitted successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement Notwithstanding anything to the contrary in Section 18, a signed copy of this Agreement delivered by facsimile or email or other means of electronic transmission shall be given the same legal effect as delivery of an original signed copy of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Relationship of the Parties</u>. The relationship between the Parties is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, franchise, business trust, joint venture or other form of joint enterprise, employment or fiduciary relationship between the Parties, and no Party shall have authority to contract for or bind the other Parties in any manner whatsoever.

[SIGNATURE PAGE FOLLOWS]

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

---

| | |
|:---|:---|
| **WAREHOUSE OPERATOR:** | **WAREHOUSE OPERATOR:** |
| Name: | [\*\*\*] |
| Title: | VP of Sales & Engagement |
| **CUSTOMER:** | **CUSTOMER:** |
| Maison Thomas | Maison Thomas |
| By: | /s/ ERIN K. GREEN |
| Name: | ERIN K. GREEN |
| Title: | COO |

---

## Exhibit 10.25

E**xhibit 10.29**

**Certain identified information has been excluded… because it is both not material and is the type of information the registrant treats as private or confidential. Redactions are indicated by [\*\*\*].**

[\*\*\*]

**Beverage Alcohol Importers, Distributors, & Services<br> [\*\*\*]**

April 7, 2025

Erin K. Green

COO

Amass Brands Group

8605 Santa Monica Blvd, PMB 424777

West Hollywood, CA 90069-4109

Dear Erin K. Green [Domestic Client]:

I am writing to confirm our agreement whereby [\*\*\*] will act as a national distributor for, and will provide certain importation and/or distribution, regulatory compliance, administrative, and logistical services to, Amass Brands Group ("Client").

1. <u>Appointment as Distributor; Services</u>

a. Client hereby appoints [\*\*\*], and [\*\*\*] hereby accepts such appointment, as the US national distributor for the Client's beverage alcohol brands ("Products"). If established in Appendix A, [\*\*\*] may also serve as wholesaler in the states of New York, California, New Jersey, and Florida. [\*\*\*] possesses the licenses and permits to act as the US national distributor for the Client's Products and, if desired, wholesaler in the markets selected by Client insofar as [\*\*\*] offers these services.

b. [\*\*\*] will obtain, or assist Client in obtaining its own, federal label approvals, register the Products in applicable states under [\*\*\*]'s licenses, assist Client in importing Product into the United States (under Client's federal basic permit), and warehouse the Products at public warehouses in New Jersey or other warehouses recommended by [\*\*\*] and approved by Client ("Third-Party Warehouses") or selected by Client ("Client Designated Warehouses"), if legally permissible and agreed to in writing by [\*\*\*], for an additional fee as outlined in the [\*\*\*] Rate Card. At Client's election, [\*\*\*] will maintain adequate insurance against loss of Client's Product inventory while in storage, subject to the terms, conditions, and exclusions of its insurance policy then in force.

c. While [\*\*\*] may facilitate exposure of Product at trade shows, on its website or social media formats, [\*\*\*]'s role with respect to identification and selection of independent sales agents/ brokers, wholesale distributors and retailers (collectively, "Customers"), Product marketing and promotion will be limited to consultation with Client and/or those of its United States designee(s) identified to [\*\*\*] in writing as authorized.

d. [\*\*\*] will keep Client informed through various reporting systems (including a password protected web site) on the status of [\*\*\*] purchases and payments, sales to Customers, receivables, collections, cash balances, expenses, inventory, etc. associated with your account.

e. If Client believes that [\*\*\*] has failed to perform in any respect as required, Client shall provide [\*\*\*] prompt written notice specifying such alleged nonperformance by [\*\*\*] no later than thirty (30) days following such alleged nonperformance, and while [\*\*\*] will use reasonable commercial efforts to correct any issues with performance regardless of when Client's notice is received, the failure to provide timely notice as provided herein shall be deemed to be a waiver of any Client right to claim a breach of agreement for such alleged [\*\*\*] non-performance.

2. <u>Purchase Orders; Accounts Receivable</u>.

a. [\*\*\*] will issue purchase orders from time to time to acquire product from Client,. Subject to the terms of this Agreement, [\*\*\*] will store Products in a Third-Party Warehouse or Client Designated Warehouse and Client will hold legal title to the Product inventory until Client sales are made to [\*\*\*] in the ordinary course of its business.

b. [\*\*\*] will receive orders from Customers in various states. Customer orders shall be subject to acceptance by [\*\*\*]. Prior to accepting a Customer order, [\*\*\*] will purchase Product from Client on terms defined on the Client Invoice (e.g., payment due within the days set forth on the invoice);thereafter, [\*\*\*] will fill the Customer's order, coordinate pick-up or delivery from the warehouse (or directly from the supplier, in the case of direct delivery), then invoice (at prices suggested by Client, determined by [\*\*\*], and properly filed with state agencies), and collect and deposit the remittances into an [\*\*\*] bank account in which Client activity will be designated (the "Designated Client Account"). [\*\*\*] will file all required beverage reports with the applicable state agencies and remit all relevant beverage excise taxes and sales and use taxes related to beverage alcohol sales or samples, where required.

c. If a Customer fails to pay for an order sold, [\*\*\*] will take reasonable non-legal action to seek payment from the account. [\*\*\*] may, at its own election, institute legal proceedings to collect on accounts receivable and prosecute such action to the fullest extent of the law. Client agrees to cooperate fully with [\*\*\*] in pursuing payment from the Customer. In connection with any such legal action, if required by applicable law and to the extent [\*\*\*] does not have standing, Client shall permit the action in its name, including being joined as a necessary party.

3. <u>Set Up Fees; Advances</u>

a. [\*\*\*] will charge a one-time set up fee of $2,800.00, due upon execution of this Agreement.

b. The parties will establish a satisfactory monetary advance payable by Client, which will be credited to Client's account, prior to any importation or receipt in an [\*\*\*] warehouse account of Product to cover expected [\*\*\*] costs and expenses as noted in Section 4.a below. Client agrees to maintain a reserve in the Client account for fees and expenses expected to be incurred over the following: (i) thirty (30) days in the case of the Service Fees (which shall not be more than the average Service Fee over the last six months) and (ii) ninety (90) days for warehouse and all other expenses (which shall be reasonably determined by [\*\*\*], based on volume of business and/or costs and expenses advanced by [\*\*\*]) (the "Funds Reserve"). If the Funds Reserve falls below one month's service fee and three months of storage expense (amount to be determined), Client agrees to replenish the reserve within 7 days' notice.

4. <u>Reconciliation of Accounts</u>.

a. For purposes of this Agreement, the following terms shall have the meanings indicated:

"Funds Due" is an accounting tool which means the net wholesale (or retail, if applicable) [\*\*\*] selling price plus Client advances received by [\*\*\*], <u>less:</u> (i) all applicable expenses incurred by [\*\*\*] in performance of this Agreement, including, without limitation, warehousing, ocean freight, delivery, federal and state (if applicable) excise and sales and use taxes and, where applicable, import tariffs and duties, brand registration fees, legal fees, administrative fees, insurance fees, sales broker commissions, promotional expenses and credits (e.g., "bill-backs"), Product samples, FDA inspection fees, product recall costs, Client-directed expenses paid, fees and expenses defined in the [\*\*\*] Rate Card, and similar or related costs or expenses, and (ii) the Service Fee (as defined below). Client agrees that [\*\*\*] may charge back the aforementioned expenses against Client invoices in determining Funds Due. All promotional expenses and credits incurred by Client must be properly itemized in the CRD prior to such activity, if deducted against a Customer invoice. Further, any such expenses above $50,000.00, must be pre-approved by [\*\*\*] for commercial and regulatory purposes. Failure to comply with this provision will put Client in breach of this Agreement, and [\*\*\*] may, in its discretion, elect to terminate automatically this Agreement in accordance with Section 6b below.

"Minimum Gross Profit" shall be earned by [\*\*\*] and designated as a "Service Fee." "Service Fee" shall mean the greater of: (i) $3,500.00 per month (the "Monthly Minimum") or (ii) the "Calculated Per Case Fee." The Calculated Per Case Fee will be calculated on case (any size) sales each calendar month and will be the sum of three parts, subject to the volume discounts outlined below (minimums and volume discounts to be calculated across all 3 Amass accounts):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) $3.00 for each case sold to wholesale customers from a Third-Party Warehouse or Client Designated Warehouse
during a given month ("Wholesale");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) $1.65 for each case sold to wholesale customers direct from the place of production
 ("DI"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) $8.40 for each case sold to retailers in NY or CA, as applicable ("Retail").
A separate service fee calculation will be completed for cases sold to retailers in NJ and FL.

---

| | | |
|:---|:---|:---|
| Per Case fee | Warehouse | Direct Import |
| First 50,000 cases | $3.00 | $1.65 |
| next 100,000 cases | $2.75 | $1.38 |
| next 100,000 cases | $2.48 | $1.30 |
| over 250,000 | $2.00 | $1.10 |

---

The Service Fee and fees chargeable by [\*\*\*] per the [\*\*\*] Rate Card shall be [\*\*\*]'s compensation for the services provided hereunder (fees chargeable do not include pass through expenses incurred in the ordinary course of business, which are not compensation for [\*\*\*]). The Service Fee shall begin to accrue on the first day of the first month in which any of the following occur: (i) Product is first imported into the U.S. and placed into an [\*\*\*] warehouse account, (ii) Product is moved into a Third-Party Warehouse, (iii) [\*\*\*] performs any inventory-impacting activity for Products in a Client Designated Warehouse, (iv) Product is purchased by [\*\*\*], or (v) the sixth month after the date of Client's acceptance of this Agreement. Notwithstanding the above, [\*\*\*] may cause samples to be imported for Client without initiating the Service Fee. If the first month of Service Fee is initiated by an event on the sixteenth day of the month or later, fifty percent (50%) of the monthly minimum will be charged in that first month (unless the Calculated Per Case Fee exceeds this amount, in which case the Calculated Per Case Fee will be charged). Once the Service Fee begins to accrue, it shall continue to accrue every month for the Term of this Agreement.

b. The parties will use reasonable commercial efforts to reconcile Client's account with [\*\*\*] on not less than a monthly basis to reflect a Funds Due amount. [\*\*\*] will use reasonable commercial efforts to provide a monthly reconciliation statement ("Activity Statement") by the end of the next month. Client shall use reasonable commercial efforts to review each Activity Statement, whether regarding its accuracy, completeness, or any other matter, and to make such objection(s) known to [\*\*\*] in writing, all within thirty (30) days after the delivery of the Activity Statement. Subject to the foregoing, if the Funds Due is positive and Client provides written request, [\*\*\*] will remit the Funds Due to Client (typically on the day of the request and in no case later than two (2) business days after the request); provided however, that [\*\*\*] may retain from such remittance: (i) an amount to cover the Funds Reserve and (ii) payments to foreign suppliers for the benefit of Client to the extent requested by Client (and subject to [\*\*\*]'s acceptance of such request in its discretion; it being acknowledged that Client is at all times responsible for payments due its suppliers and any payments thereto by [\*\*\*] shall be as a convenience) (subparts (i) and (ii) are herein referred to collectively as, "Remittance Deductions"). If the Funds Due is negative, including after any Remittance Deductions (a "Shortfall"), the amount of the Shortfall shall be invoiced to Client, due and payable fifteen (15) days from the date of the invoice. If the Shortfall is not paid in full within such fifteen (15) day period, [\*\*\*] shall be entitled to exercise any or all of the following remedies: (a) charge interest thereon at the rate of one (1%) percent per month until paid in full, which amount shall be immediately due and payable, (b) , terminate this Agreement and/or exercise a lien (collateral) against any of Client's Product inventory in an [\*\*\*] warehouse account in order to liquidate same at such price(s) as [\*\*\*] shall determine in its discretion (and make such filing with state agencies as necessary to do so). [\*\*\*] shall use the proceeds of such sales to offset the Shortfall, with Client remaining liable for any remaining Shortfall, and with any excess of the Shortfall received being credited to Client, and (c) assert such other remedies as it may have at law or in equity.

c. At any time, [\*\*\*] may terminate this Agreement and/or exercise a lien (collateral) to liquidate (at such price(s) as [\*\*\*] shall determine in its discretion, making such filings with state agencies as necessary to do so) or destroy (at Client's expense) any of Client's Product inventory reasonably identified by [\*\*\*] in an [\*\*\*] warehouse account as abandoned after written notice of fifteen (15) days is sent to Client. Any proceeds from liquidation shall be credited to Client's account for purposes of Funds Due reconciliation, including Remittance Deductions and charging of ongoing Service Fees, as provided in this Agreement.

5. <u>Indemnification for Third Party Claims</u>.

Client hereby indemnifies and holds harmless [\*\*\*], and its shareholders, officers, directors and employees (the "[\*\*\*] Indemnified Parties"), from and against any claims, actions, demands, liabilities, damages, losses, costs and expenses (including reasonable attorneys' fees) arising out of or from [\*\*\*]'s performance of its obligations under this Agreement; for claims or actions brought by third parties, including but not limited to, for product liability, infringement of intellectual property rights, and Client's non-compliance with regulatory requirements (including, but not limited to, Client's (or its US designee's) compliance with federal, state, and local laws, regulations and policies concerning beverage alcohol advertising, sales and marketing activities), Product labeling and content, use of samples, any required solicitor permits, FDA/Bioterrorism Act prior notice and facility registration requirements, use of non-conforming wood packaging material, costs associated with FDA inspection of suppliers facilities, and costs in relation to product recalls, or otherwise. The foregoing indemnification does not cover any third-party claims or actions against Client (or any of its indemnified parties) arising solely from the gross negligence of [\*\*\*], its officers, directors, employees, or agents.

[\*\*\*] hereby indemnifies and holds harmless Client, and its' shareholders, officers, directors, and employees (the "Client's Indemnified Parties"), from and against any valid claims, actions, demands, liabilities, damages, losses (excluding lost profits on sales), costs and expenses (including reasonable attorneys' fees) arising out of or from claims brought by third parties because of the gross negligence of [\*\*\*] in its performance of its obligations under this Agreement. The foregoing indemnification does not cover any third-party claims or actions against [\*\*\*] or Client (or any of its indemnified parties) arising from an act, omission, or negligence of Client its officers, directors, employees, or agents.

6. <u>Term and Termination</u>.

a. This Agreement shall be effective commencing on the date of Client's acceptance hereof and shall continue until the last day of the twelfth month following the month in which Product is first: (i) imported into the U.S. and placed into an [\*\*\*] warehouse account, (ii) product is moved into a Third-Party Warehouse, (iii) Product is purchased by [\*\*\*], or (iv) [\*\*\*] performs any inventory-impacting activity for Products in a Client Designated Warehouse ("Initial Term"). This Agreement shall continue automatically after the Initial Term on a month-to-month basis, unless specifically terminated by either party, with or without cause, as of the end of the Initial Term or thereafter on at least three (3) months' prior written notice to the other party. The provisions of Sections 2.c, 4, 5, 6, and 7 shall survive any expiration or termination of this Agreement. For the avoidance of doubt, and without limiting [\*\*\*]'s other rights under this Agreement, [\*\*\*] shall continue to charge the Service Fee for so long as any Product is warehoused pursuant to this Agreement, whether at a Third-Party Warehouse or at a Client Designated Warehouse, under an [\*\*\*] account, and/or for so long as [\*\*\*] is performing any compliance, logistics, import or distribution, or accounting services (including tracking collections) on behalf of the Client's account.

b. Upon termination or failure to renew this Agreement, (i) Client (or its U.S. designee) must repurchase and/or take possession of all remaining Product inventory owned or held by [\*\*\*] in an [\*\*\*] warehouse account at [\*\*\*]'s laid-in cost, and (ii) a final reconciliation and determination of Funds Due shall be made in accordance with Section 4 and this Section 6.b. Any negative balance in Funds Due, after crediting [\*\*\*]'s account for repurchased Products, shall be paid to [\*\*\*] on or before possession of repurchased Products is taken by Client. In any financial reconciliation and remittance, [\*\*\*] may withhold a reserve from Funds Due and/or may require that Client to advance additional funds to [\*\*\*] to address additional [\*\*\*] wind-down expenses or any other costs or expenses and the [\*\*\*] Service Fee. In addition, [\*\*\*] reserves the right to pursue claims for further payment and credits due under this Agreement, including payments or credits claimed by Third-Party Purchasers, which claims are attributed to Client's actions or agreements with said Third-Party Purchasers, which it becomes aware of after termination and final payment of Funds Due.

c. Notwithstanding the above, upon 15 days' notice to [\*\*\*] or the termination of this Agreement, Client may withdraw its inventory from an [\*\*\*] warehouse account provided it pays all outstanding costs and fees owed [\*\*\*].

7. <u>Miscellaneous</u>.

a. The parties to this Agreement recognize that Client and [\*\*\*] are separate, independent contractors and that neither they nor their representatives shall be considered employees, agents, partners, or co-venturers of the other party. [\*\*\*] makes no representations with respect to legal or tax matters. Please consult your own advisors.

b. During the Term of this Agreement and for 12 months after the termination hereof, for any reason, and/or after the failure to renew this Agreement (hereinafter the "Restricted Period"), the Client shall not, directly, indirectly, on the Client's own behalf, or on behalf of any other person, company, organization, or entity, solicit or attempt to solicit the representative of [\*\*\*] or any employee of [\*\*\*] to leave their employment, business relationship, and/or engagement with [\*\*\*], unless [\*\*\*] explicitly agrees in advance and in writing that the Client will be allowed to employ or engage the [\*\*\*] representative or [\*\*\*] employee after a lump sum payment by the Client to [\*\*\*] of certain compensation, the amount of which shall be determined by [\*\*\*] in its sole discretion, but shall not be less than one and a half (1.5x) times such [\*\*\*] representative or [\*\*\*] employee's annual compensation, prior to the representative's or employee's termination or resignation date with [\*\*\*]. Client understands and acknowledges that this obligation regarding solicitation is necessary and reasonable to protect [\*\*\*]'s legitimate business interests, including trade secrets, confidential information, relationships with prospective and existing companies and the goodwill associated with [\*\*\*]s' business. This covenant is provided by Client as further inducement for [\*\*\*] to enter into this Agreement.

c. This Agreement will be governed by, construed, and enforced in accordance with, and be subject to, the laws of the State of New York, without regard to conflicts of law principles. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, will be settled by arbitration in the City of New York, State of New York, before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (AAA), and judgment upon the award rendered by the Arbitrator may be entered in any court having jurisdiction hereof. The parties shall jointly select the arbitrator. If the parties are unable to agree upon an arbitrator within twenty-one (21) days of demand for arbitration, then the AAA shall select the arbitrator.

d. Notwithstanding anything to the contrary herein, [\*\*\*] shall not be liable to Client for any consequential, incidental, punitive, or indirect damages or for damages for any lost sales, lost profits, or loss of goodwill.

e. Neither party shall, without the written consent of the other party hereto, assign or transfer this Agreement, except that no such consent is needed for any assignment to a wholly owned or majority-owned subsidiary of the party or a successor in interest to such party whether by merger, consolidation, sale of all or substantially all assets or otherwise. Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the parties and their respective successors and assigns.

f. Neither party will incur any liability to the other party on account of any loss or damage resulting from any delay or failure to perform all or any part of this Agreement if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control and without negligence of the party. Such events, occurrences or causes will include, without limitation, acts of God, pandemics, governmental actions, strikes, lockouts, failure of supply from third parties, riots, acts of war, fire, and explosions, but the inability to meet financial obligations is expressly excluded from this provision.

g. If any term, condition, or provision in this Agreement is found by an arbitrator or court of competent jurisdiction to be invalid, unlawful, or unenforceable to any extent, then it is the intent of the parties that such arbitrator or court apply a rule of reasonableness and modify the provision in question so it will remain in effect to the greatest extent permitted by law. In the event an arbitrator or court finds such procedure to be inappropriate, then such invalid term, condition or provision will be severed from the remaining terms, conditions, and provisions, which will continue to be valid and enforceable to the fullest extent permitted by law.

h. This Agreement, including Appendix A and any future addendum to this Agreement, sets forth the entire agreement of the parties with respect to the subject matter of this Agreement and supersedes all previous communications, representations, understandings, and agreements, either oral or written, between the parties with respect to said subject matter. IT IS THE INTENTION AND DESIRE OF THE PARTIES THAT THE EXPRESS PROVISIONS OF THIS AGREEMENT NOT BE SUBJECT TO VARIATION BY IMPLIED COVENANTS OF ANY KIND.

If the foregoing correctly sets forth your understanding of our agreement, please so indicate by signing in the space provided below and enclosing a deposit of $3,800.00 representing the agreed upon set up fee ($2,800.00), and an advance against initial administrative expenses of $1,000.00 and supply a valid credit card to be kept on file. By signing below, Client warrants and represents that it has a TTB Importer's Basic Permit for its principal place of business and, if required by its state, the corresponding State Alcoholic Beverage License to receive funds from the sale of beverage alcohol to [\*\*\*], as well as confirms that a copy of the aforementioned permits and licenses has been provided to [\*\*\*].

Sincerely,

[\*\*\*]

ACCEPTED and AGREED to,

this April 7, 2025

For Client:

x /s/ Erin K. Green

Erin K. Green

COO

Amass Brands Group

Date: <u>29/08/2025</u>

For [\*\*\*]:

x

[\*\*\*]

Chief Executive Officer

Date:

A**ppendix A: [\*\*\*] Appointment as Wholesaler**

Client hereby appoints [\*\*\*] and [\*\*\*] hereby accepts such appointment, as the wholesaler for the Client's beverage alcohol brands ("Products") in the states designated below:

✓ New York

✓ California

✓ New Jersey (see accompanying NJ Addendum)

✓ Florida (see accompanying FL Addendum)

Upon termination of this Agreement in accordance with Section 6b above, [\*\*\*] agrees to release this appointment provided Client pays all outstanding costs and fees owed [\*\*\*]. Further, if Client desires to change an appointment without termination of this Agreement, Client shall provide 60 days' notice in writing to [\*\*\*].

ACCEPTED and AGREED to,

this April 7, 2025

For Client:

x /s/ Erin K. Green

Erin K. Green

COO

Amass Brands Group

Date: <u>29/08/2025</u>

For [\*\*\*]:

x

[\*\*\*]

Chief Executive Officer

Date:

## Exhibit 10.30

**Exhibit 10.30**

**Certain identified information has been excluded… because it is both not material and is the type of information the registrant treats as private or confidential. Redactions are indicated by [\*\*\*].**

[\*\*\*]

<u>Summer Water Bulk Wine Agreement</u>

EFFECTIVE DATE: <u>August 29th, 2024</u>

[\*\*\*] ("Seller") agrees to sell and Summer Water, Inc a subsidiary of Amass Brands Inc. ("Buyer") agrees to purchase the following bulk wine ("Bulk Wine") subject to the terms and conditions of this Agreement:

1. <u>VARIETY</u> AVA <u>Gallons / Tons</u> <br> Grenache Rosé Central Coast 150,000

2. <u>TERM:</u> This Agreement will commence on the Effective Date and will be effective for an initial term of harvest years: 2024 through 2028 (the "Initial Term"). After the Initial Term, this Agreement shall automatically extend for consecutive years unless either party gives written Notice to the other of their intent to terminate. Notice of intent to terminate must be delivered in accordance with the Notice procedures below, and must be received after January 1 and before March 1 of any year, but not earlier than the final year of the Initial Term. If Notice is timely received then the final harvest year of the Term shall be the year in which the Notice was received. By way of example only, Notice of intent to terminate received before March 1, 2028 would terminate this Agreement after the 2028 harvest.

3. <u>PRICING:</u> $13.50/gallon for 2024 - 2028 vintages. Upon entering into the evergreen, pricing will increase by 3% per annum and will cap at $14.00 for the duration of the evergreen. See Exhibit A for scaled pricing.

4. <u>PAYMENT TERMS:</u> Net cash due in four (4) payments as follows:

25% due September 1 of current harvest year

25% due December 1 of current harvest year

25% due March 1 of the year following harvest

25% due June 1 of the year following harvest

5. <u>LATE PAYMENTS:</u> Any invoice for which payment is not received within ten (10) days after the date on the invoice shall incur interest at one and a half percent (1.5%) per month, or any part thereof, from the date due until paid in full. In the event any invoice is more than forty-five (45) days past due, Seller may, in its sole discretion, sell all or any portion of the Bulk Wine to a replacement buyer with no further obligation to Buyer, provided, however, that Buyer shall remain obligated to pay Seller for any decrease in the sale price suffered by Seller when comparing the price in this Agreement to the sale price Seller receives from a replacement buyer.

6. <u>APPLICATION OF PAYMENTS:</u> Seller shall have the right to apply payments received from Buyer pursuant to this Agreement, regardless of Buyer's designation of such payments, to satisfy any obligations of Buyer hereunder, in such order and amounts as Seller, in its sole discretion, may elect.

7. <u>ACCEPTANCE:</u> Buyer shall accept the Bulk Wine produced each year by Dec 1 following harvest. Bulk Wine shall be deemed accepted by Buyer at the time all lots of Bulk Wine are loaded at Seller's designated facility on to the freight carrier arranged and paid for by Buyer. Bulk Wine not paid for and shipped out within thirty (30) days after Dec 1 shall incur storage charges at the rate of $0.14 per gallon per month or any portion thereof. Title to the Bulk Wine and delivery to Buyer shall not occur until Seller has received 100% of the total purchase price, including all accrued interest, storage fees and other sums to which Seller is entitled under this Agreement. Seller shall bear all risk of loss prior to acceptance by Buyer and Buyer shall bear all risk of loss from the time the Bulk Wine is accepted.

8. <u>WINEMAKING AND BLENDING:</u> Wine to be produced with certified Sustainable grapes starting in 2025. Consistent with California ABC and Federal TTB regulations regarding winemaking and responsibility for winery operations, Buyers winemaker(s) will (i) consult with Seller for purposes of particular winemaking procedures and specifications for the Bulk Wine and (ii) Buyers winemaker(s) shall direct the harvest of all grapes and (iii) monitoring of all fermentations and (iv) blending of the Bulk Wine at any time before December 1 of the current harvest year. Both parties acknowledge that Buyer desires certain specific winemaking procedures and specifications for the Bulk Wine. As such Buyer assumes all risk associated with Bulk Wine made and delivered pursuant to such instructions. Therefore Buyer shall provide said winemaking instructions and specifications in writing to Seller prior to the fermentation process. Any such winemaking instructions and specifications shall be delivered to Seller in accordance with the Notice procedures set forth below. Seller agrees to use commercially reasonable efforts to accommodate Buyer's reasonable protocols and requests concerning particular winemaking procedures, specifications and blending of Bulk Wine. Before December 1 of the current harvest year, Seller agrees to send Buyer (or its designees) samples of Bulk Wine in reasonable quantities at no cost to Buyer for testing, evaluation and/or sampling purposes.

9. <u>INDEMNIFICATION:</u> Buyer shall indemnify, and hold harmless Seller, its members, managers, general and limited partners, officers, directors, agents, servants, affiliates, or employees from and against any and all claims, demands, losses, damages, injuries, liabilities, expenses, judgments, liens, encumbrances, orders and awards (all of which are collectively referred to as "Claims"), together with attorneys' fees and litigation expenses, relating to or resulting from, Buyer's use of the Bulk Wine. All indemnification obligations of Buyer under this Agreement shall survive and remain in full force and effect as to Claims occurring after this Agreement is completed or terminated.

10. <u>CONFIDENTIALITY:</u> Neither party shall issue, cause or permit the publication of any advertisement, press release or other public announcement (including, but not limited to the announcement on such person's website) with respect to the existence or any of the terms of this Agreement including, but not limited to, the identity of the other party, without the prior express written consent of the other party.

11. <u>LIMITATIONS OF LIABILITY & DISCLAIMERS</u>: Except as expressly set forth in this Agreement and to the extent permitted by applicable law, each party hereby expressly disclaims all representations or warranties, whether express, implied or statutory, including, without limitation, any implied warranties of merchantability, fitness for a particular purpose or non-infringement, and any warranties that may arise from course of performance, course of dealings, or usage of trade.

12. <u>FORCE MAJEURE:</u> The obligations of each party under this Agreement shall be suspended during the period and to the extent that such party is prevented or hindered from complying with its obligations hereunder, due to causes beyond such party's reasonable control. Such "Force Majeure Events" including, but not limited to: (i) acts of God, (ii) flood, fire or explosion, (iii) war, invasion, terrorism, riot or other civil unrest, (iv) other disaster(s) or catastrophe(s), such as pandemics, epidemics, or quarantines, (v) changes to law on or after the Effective Date, (vi) actions, embargoes or blockades in effect on or after the Effective Date, (vii) court order or any other action, mandate or order from any governmental or regulatory authority, (viii) national or regional emergency, (ix) strikes, labor stoppages, shortages or slowdowns or other industrial disturbances, excluding those of either party, its affiliates, and related parties, (x) shortage of adequate power or transportation facilities, or (xi) drought, frost, pest or disease infestation affecting grape production. The party suffering a Force Majeure Event shall give Notice in accordance with the procedures below of suspension as soon as reasonably practicable to the other party stating the date and extent of such suspension and the cause thereof, and shall use commercially reasonable efforts to resume the performance of its obligations as soon as reasonably practicable. Should a Force Majeure Event prevent a party from performing its obligations hereunder for a period of thirty (30) consecutive days or more, the other party shall have the right, but not the obligation, to terminate this Agreement by providing written notice to the affected party prior to the affected party resuming compliance with its obligations hereunder. In the case Seller terminates this Agreement due to a Force Majeure Event suffered by Buyer, Seller shall be entitled to retain all payments made up to that date.

13. <u>GRANT OF SECURITY INTEREST:</u> To secure faithful and timely performance of Buyer's obligations to pay for the Bulk Wine under this Agreement, Buyer hereby grants to Seller, in addition to any statutory lien, a lien on, and security interest in the Bulk Wine and all products and proceeds thereof. Buyer hereby grants Seller the right to file a UCC-1 Financing Statement for filing with the California Secretary of State or other applicable place of filing and such other documentation requested by Seller to perfect and maintain the security interest provided by Seller hereby. Seller shall have all of the rights of a secured creditor under the California Uniform Commercial Code. The security interest hereby granted shall survive the termination of this Agreement if any of the obligations secured thereby remain unsatisfied after such termination.

14. <u>NOTICE:</u> All notices and communications under this Agreement must be in writing and shall be deemed to have been duly given when (i) sent by email or (iii) text message, provided that a tangible copy is subsequently sent to such party at the appropriate address set forth at the bottom of this Agreement (or to such other addresses as a party may designate by written notice).

15. <u>SUCCESSORS AND ASSIGNS; ASSIGNMENT:</u> This Agreement shall be binding upon, and inure to the benefit of, the parties and their respective successors and permitted assigns. Neither party may assign any of its rights (including, without limitation, by way of merger, acquisition, stock sale, asset sale, exclusive license, consolidation, operation of law or otherwise) or delegate any of its obligations hereunder without the prior written consent of the other party. Any assignment or delegation in violation of this provision shall be null and void.

16. <u>OWNERSHIP TRANSITION:</u> If Buyer ceases to exist by way of merger, acquisition, stock sale, asset sale, consolidation, operation of law or otherwise, Buyer shall (i) give Seller Notice in accordance with the Notice procedures set forth above, of an intent to sell, including the identity of the successor and (ii) require the successor owner of any of Buyer's assets, including but not limited to its wine brand(s), to (a) assume Buyer's obligations under this Agreement or (b) pay Seller for any decrease in the sale price suffered by Seller when comparing the price in this Agreement to the sale price Seller receives from any replacement buyer.

17. GOVERNING LAW AND VENUE: This Agreement shall be governed by, and construed under, the laws of the State of California governing a contract made and wholly performed within the State of California, without reference to conflict of laws principles that would require the application of the law of any other jurisdiction. Each party hereby submits to the exclusive jurisdiction of the state courts of the State of California, located in the County of Santa Barbara, California for the purpose of any action or proceeding (whether in contract or in tort) that may be based upon, arise out of or relate to any dispute between the parties. Each party agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable law. Nothing in this Agreement shall prevent any party from seeking to obtain injunctive relief in court if necessary to prevent irreparable harm.

18. <u>ATTORNEY'S FEES:</u> If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover from the other party the prevailing party's reasonable attorney's fees, costs and necessary disbursements related to such action incurred both before and after judgment in addition to any other relief to which such party may be entitled.

19. <u>TERMINATION:</u> In addition to any remedies that may be provided in this Agreement or by law, Seller may terminate this Agreement with immediate effect upon written notice to Buyer, if Buyer: (i) fails to pay any amount when due under this Agreement; (ii) has not otherwise performed or complied with any of the terms of this Agreement, in whole or in part; or (iii) becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization or assignment for the benefit of creditors.

20. <u>ENTIRE AGREEMENT</u>: This Agreement, along with any Personal Guaranty, contains the entire agreement between the parties with respect to the subject matter hereof, supersedes any and all other agreements related to the subject matter hereof, whether verbal or in writing, between the parties hereto. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party hereto, or anyone acting on behalf of any party hereto, which are not embodied herein, and that no other agreement, statement or promise related to the subject matter thereof not contained in this Agreement shall be valid or binding. Any modification of this Agreement shall be effective only if it is in writing, signed and dated by all parties hereto.

21. <u>COUNTERPARTS:</u> This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

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

---

| | |
|:---|:---|
| **BUYER:** | **SELLER:** |
| **Summer Water, INC** | **[\*\*\*]** |
| Signed by: | Accepted by: |
| /s/ Alex Savona | ![](amass003_ex10-30img01.jpg) |
| Name: Alex Savona | Name: [\*\*\*] |
| Title: CEO Summer Water INC | Title: Owner |
| Address: 927 S Santa Fe Ave | Address: |
| Los Angeles CA, 90021 | [\*\*\*] |
| Email: alexandra@summerwater.com | Email: [\*\*\*] |
| Telephone Number: [\*\*\*] | Telephone Number: [\*\*\*] |

---

## Exhibit 10.31

**Exhibit 10.31**

**Certain identified information has been excluded… because it is both not material and is the type of information the registrant treats as private or confidential. Redactions are indicated by [\*\*\*].**

**[\*\*\*]**

**CUSTOM STORAGE AND BOTTLING AGREEMENT**

This Custom Bottling Agreement (this "Agreement") is entered into effective as of <u>January</u>, <u>24</u>, 2025, between **[\*\*\*]**, a California limited liability company, [\*\*\*] ("Winery"), and **SUMMER WATER, INC**, 927 S. Santa Fe Ave Los Angeles CA 90021 ("Producer"). In consideration of the mutual covenants and considerations hereinafter expressed, the parties agree as follows:

**RECITALS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Producer is or will become the owner of certain Rose juice, or bulk wine from the 2024, 2025, 2026, and 2027 vintages. Producer engages
Winery store and bottle Producer's juice and/or wine pursuant to industry best-practices and otherwise in accordance with 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;(b) For the purposes of this Agreement, "wine" or "wines" shall refer collectively to Producer's bulk Rose juice or
wine and solely to the *Summer Water* brand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Winery has an established partnership agreement with Mercenary Bottling (hereafter referred to as "Bottler") who provides
all bottling services at [\*\*\*]' location at [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Producer believes Winery has the necessary labor, equipment, qualifications, experience, and abilities to provide service to the Producer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Producer's parent company, Maison Thomas LLC, holds and shall maintain an Alternating Proprietor agreement with Winery at [\*\*\*].

NOW, THEREFORE, in consideration of the mutual covenants and considerations hereinafter expressed, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **TERM**: Except as otherwise provided herein, the term of this Agreement shall commence on the Effective
Date and shall expire on December 31, 2028 ("Term"). For the avoidance of doubt, this Agreement only applies to grapes, juice,
and/or wine processed for vintage 2024, 2025, 2026, and 2027. Should Producer elect to use Winery's services for vintage 2028 grapes,
juice, and/or wine, this Agreement shall be amended to contract for those services.

During the term of this Agreement, Producer shall have the right to cancel storage and bottling pertaining to the 2026 and 2027 vintages (only). Should Producer wish to cancel the agreement following bottling of the 2025 vintage, but previous to the 2026 vintage, Producer may do so by notifying Winery no later than June 1, 2026 and paying to Winery a buy-out fee of $221,450 by no later than September 1, 2026. Should Producer wish to cancel the agreement following bottling of the 2026 vintage, but prior to the 2027 vintage, Producer may do so by notifying Winery no later than June 1, 2027 and paying to Winery a buy-out fee of $136,000 no later than September 1, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **STORAGE VOLUMES:** Producer agrees to deliver to Winery at the address set forth above the approximate
gallons of Rose juice and/or wine stated below, for storage, in accordance with the Protocol and the Winery's Outline of Services and
Charges hereto attached and made a part of this Agreement as Schedule A (the "Pricing"):

---

| | |
|:---|:---|
| **Vintage 2024:** | **120,000 gallons** |
| **Vintage 2025:** | **120,000 gallons** |
| **Vintage 2026:** | **120,000 gallons** |
| **Vintage 2027:** | **120,000 gallons** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **BOTTLING VOLUMES:** Producer agrees to bottle wines stored at Winery in the approximate 9L equivalent
case volumes ("cases") stated below, in accordance with the Winery's Outline of Services and Charges hereto attached and made
a part of this Agreement as Schedule A:

---

| | |
|:---|:---|
| **Vintage 2024 bottling 2025:** | **50,000 cases** |
| **Vintage 2025 bottling 2026:** | **50,000 cases** |
| **Vintage 2026 bottling 2027:** | **50,000 cases** |
| **Vintage 2027 bottling 2028:** | **50,000 cases** |

---

In the event that Producer bottles less than the aggregate case commitment set forth in this Section 3, Winery shall have the option of charging Producer for the greater of (a) cases actually bottled, or (b) 80% of Producer's aggregate bottling commitment (for example, and without limitation, if Producer's bottling commitment as set forth in the Protocol is 10,000 cases, and the total bottled is only 6,000 cases, Winery shall have the option of charging Producer for bottling of 8,000 9L case equivalents).

Should Producer wish to store and/or bottle wine in excess of the listed volumes above at any time during the term of this Agreement, Winery shall work with Producer to determine a mutually agreeable schedule that is reasonable given Winery's then- current schedule and available capacities. This current contract will remain in effect on volume increases. If Producer increases volume above 20% of current contract Winery agrees in good faith to negotiate discounted pricing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **TITLE TO WINE:** Title to the wine, and risk of loss or damage, will remain with Producer at all
times, subject to any lien which Winery may have for services rendered hereunder in accordance with the terms of this Agreement and applicable
law. It shall be the responsibility of Producer to pay all federal, state, and local taxes when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **PAYMENT TERMS:** Bottling charges will be due 15 days following each bottling event. All other charges
will be due 30 days after billing and supporting documentation. Past due accounts are subject to a late charge of 1.5% per month (18%
annually).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **INSURANCE:** At all times during the Term, both parties shall, at their sole cost and expense during
the term of this Agreement, maintain in full force and effect the following types of insurance, in at least the amounts and in the forms
specified in this Section 11, which policies shall be primary and non-contributory with respect to any liability arising under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) General liability insurance with coverage limits of not less than $1,000,000 per occurrence and a general
aggregate limit of not less than $2,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Workers compensation insurance in compliance with all applicable statutory workers' compensation laws,
of not less than $1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **SCHEDULING** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Producer agrees to bottle wines from each vintage in
the following calendar year and to do so in a single run of roughly 10,000 cases in February the year following vintage, 10,000 cases
as a single run in March of the year following vintage, and 10,000 cases as a single run in May of the year following vintage. Remaining
bottling dates to be determined in good faith by both Producer and Winery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Completed Bottling Work Orders must be received by Winery
no later than 30 days prior to bottling date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Wine to be bottled shall arrive at Winery no later than
14 days prior to bottling date. This time is required for pre-bottling chemistry and stability checks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All packaging shall arrive at Winery no later than two
business days prior to bottling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Failure of Producer to strictly adhere to this schedule
could result in bottling delays. In the event that bottling must be delayed due to late arrival of bulk wine, packaging or defect of said
packaging, Producer shall pay cancellation fees as specified in Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **WINEMAKING AND STORAGE INSTRUCTIONS:** Producer shall provide Winery with detailed written winemaking
and storage instructions. In the event that any additional service or processing is to be performed on the wine at the request of the
Producer amending Winery's Services and Charges, these instructions will be attached, in writing, to this basic agreement and the Producer
will be billed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **BOTTLING INSTRUCTIONS:** Producer shall provide Winery with instructions in the form of the Bottling
Work Order (Exhibit A). In the event that any additional service or processing is to be performed on the wine or in coordination with
botting, at the request of the Producer amending Winery's Services and Charges, these instructions will be attached, in writing, to this
basic agreement and the Producer will be billed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **WINERY'S RESPONSIBILITIES:** Winery is to store and perform winemaking work on Producer's wine
as instructed according to Winery's Services and Charges attached hereto as Schedule A and to manage the bottling of Producer's wine according
to Bottling Work Order attached hereto as Exhibit A. Any process or procedure requested by Producer which is not consistent with Winery's
Services and Charges must be approved by Winery and may be subject to an added charge. Winery shall upon request provide Producer with
all documentation and QC records related to the bottling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **BOTTLING FILTERS:** Unless specified in writing by the Producer, Winery shall provide a new set of
Bottling Filters (0.65 micron pre-filter and 0.45 micron final filter) for each bottling run and shall bill Producer as specified in Schedule
A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **PRODUCER'S RESPONSIBILITIES:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Pre-Bottling Approval.** Producer is solely responsible
for the approval of wines prior to bottling. In the event that Producer fails to sign and/or submit Winery's Bottling Approval Form Winery
reserves the right to use Winery's own best judgement regarding bottling specifications for Producer's wines if in Winery's opinion a
situation detrimental to Winery's schedule and/or best interest might arise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Packaging Supplies.** Producer shall supply all
packaging materials including, but not limited to; the wine to be bottled, corks, screwcaps, crown caps, labels, bottles, and boxes. Producer
is responsible for the condition and quality of all packaging supplies and agrees to provide supplies in accordance with Winery's specifications
and delivery timelines. At no time should Producer schedule delivery of packaging supplies to Winery without Winery's express consent.
In the event that Producer's packaging supplies deliver to Winery without consent or outside of agreed upon timelines, Winery reserves
the right to charge Producer according to Winery's Services and Charges attached hereto as Schedule A. In the event that bottling must
be delayed due to late arrival of packaging or defect of said packaging, Producer shall pay cancellation fees as specified in Schedule
A. 4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Bottling and Packaging Quality Control Approval.** Producer
is responsible for the approval of the bottling/la belli ng process and the appearance of the finished bottle/package. If at any time
Producer objects to the quality or appearance of the bottling/packaging, including, but not limited to; the closure, foil and/or labels,
Producer shall immediately notify Winery of such concern(s) and shall request Winery temporarily cease bottling/la belli ng operations.
Producer's failure to timely object to the quality of appearance of the bottling/packaging during operations shall waive any subsequent
claims against Winery concerning the quality or appearance of the bottling/labelling services rendered. Winery strongly recommends that
a duly authorized Producer representative be present at the commencement of bottling to ensure wine and packaging specifications are met.
Winery shall not provide heat shrink label application nor bottle into pre-sleeved containers. Producer specifically authorizes Winery
to collect a minimum of two (2) bottle samples of each different wine and as many as two (2) bottle samples of each different wine per
hour of run time from the bottling line as may be deemed necessary during the bottling operations for the purposes of quality assurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Beverage Stability.** Winery shall run a Pre-Bottling
Wine Panel on all wines prior to bottling. Assurance of the microbial and chemical (heat and cold) stability of the wine being bottled
is the sole responsibility of Producer, and Winery expressly rejects any liability for the condition of the wine both before and after
bottling. The Producer is also responsible for providing to Winery with bottling specification to include FSO2 and dissolved oxygen thresholds.
Winery's staff are responsible for checking dissolved oxygen content sufficiently in advance of the commencement of the bottling operations
as well as the day of. Bottler's bottling equipment offers state of the art technology which delivers product to the bottle with the lowest
levels of dissolved oxygen achievable; however, due to many circumstances beyond Winery's control, Winery is not responsible for oxidation
of the wine after the completion of bottling. Winery will monitor the dissolved oxygen level at regular intervals during the bottling
operations and prior to the wine entering the filler bowl.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Label Compliance:** Producer is solely responsible
that wine labels comply with all applicable local, State and Federal wine labelling laws and that the wine being bottled has composition
(varietal, vintage, AVA and alcohol) matching the label. Winery reserves the right to refuse to package any wines it believes to not be
in compliance and/or not match the composition indicated on the label.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Removal of Bottled Wine:** Producer is aware that
bottled wine must be removed from Winery within 5 business days of bottling. In the event that Producer fails to remove bottled wines
within 5 business days of bottling, storage fees shall accrue as specified in Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Reporting and Payment of Tax:** Producer acknowledges
and agrees it shall be responsible for performing all record keeping required in connection with its licensed operation, including, but
not limited to, records and reports regarding production, storage, bottling, shipping, tax determination, and tax reporting. Winery will,
under no condition, ship wine tax paid on behalf of Producer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **DISCLAIMERS:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Packaging Materials and Supplies.** Producer is
responsible to provide to Winery all packaging materials. Producer is expected to provide Winery with packaging materials and supplies
which are in proper form and condition for their intended use, and which have been stored and inventoried in an environment which ensures
their sterility, general cleanliness, quality and form and function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Packaging Materials Losses.** Winery will not be
responsible for any packaging supply breakage, or waste due to bottle size irregularities, label issues, or closures and capsules which
are compromised in form prior to application, label losses due to glass irregularities in shape, form, and coatings which prevent adequate
adherence to the bottle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Closure Materials Adverse Effects on wine.** Winery
is not responsible for degradation, oxidation, discoloration, and/or off odors, damage, or leakage of Producer's wine due to the condition
of, or defects in, any bottles or closure materials provided by Client, or any other conditions outside of the direct control of Winery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **No Guarantee of Closure:** Producer's closures are
subject to industry quality control inspections. While operating, closures may pass quality control inspections but have internal flaws
that may fail after being sealed. Winery holds no liability to absolute quality control or guarantee of the stability of closure based
on standard quality control inspections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Release of Liability for Unfiltered Wine.** In the
event that Producer requests Winery to bottle wine without filtering, Producer hereby releases Winery, and agrees to hold Winery harmless,
from any and all adverse conditions of the wine including but not limited to yeast or bacterial refermentation and/or Brettanomyces infection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Overages and Shortages.** If Producer requires services
in excess of what is detailed in Exhibit A (an "Overage"), Winery will use reasonable efforts to accommodate Overage within
limits (Time, labor, materials, scheduling). Winery shall not be obligated to accommodate any Overage. Client shall pay for all additional
services performed by Winery as a result of Overage as specified in Schedule A.

If Producer's quantity of wine or packaging is less than specified in Exhibit A (a "Shortage") for any reason including, but not limited to; defects, nonconformity or damage to packaging, insufficient quantities or incorrect packaging, Producer shall be responsible to pay Winery minimum charges for days booked as specified in Schedule A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **FORCE MAJEURE:** Neither party to this agreement shall be responsible or liable in any way for any
default in the performance hereof arising directly or indirectly from causes beyond the control of such party, including, but not limited
to fire, flood, earthquake, war, embargo, strike, boycott, lockout, labor dispute, accident, explosion, riot, insurrection, shortage of
fuel, mechanical breakdown, Acts of God, or expropriation of plant by government authority, or for any failure of any kind if the same
shall be caused in any way by federal, state, or other governmental authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **LICENSING:** Producer warrants that it has, or will obtain prior to any bottling, all necessary licenses
and permits to comply with federal and state regulations. Producer shall give copies of these documents to Winery upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **SUCCESSORS AND ASSIGNS:** This Agreement may not be assigned (by operation of law or otherwise) by
either party without prior written consent of the non-assigning party. Notwithstanding the foregoing to the contrary, either party may
on notice only assign its rights under this Agreement to an affiliated party, which for purposes of this Agreement is defined as a party
that controls, is controlled by, or is under common control with the assigning party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **DEFAULT:** Producer shall be in material breach and default under this Agreement upon the occurrence
of any one or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Producer shall fail to pay any amount payable by Producer
to Winery as and when due and such failure continues for a period of thirty (30) days following written notice from Winery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Producer shall breach any other term or provision herein
contained and shall fail to remedy such breach within thirty (30) days after written notice thereof by Winery provided if nature of such
default is such that it cannot be reasonably cured within said thirty (30) day period. Producer shall not be in default if Producer shall
within such period commence such cure and thereafter diligently prosecute the same to completion. Upon the occurrence of any event of
default, Winery shall have all of the rights and remedies afforded to a lienholder under Section 3051 et seq. of the Civil Code of the
State of California, all of the rights and remedies afforded to a secured party under Division 9 of the Uniform Commercial Code of California,
and all other rights, powers and remedies as may be available to Winery by virtue of the Agreement, or at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **ARBITRATION:** All disputes that may arise between parties regarding the interpretation or application
of this Agreement and the legal effect thereof shall, to the exclusion of any court of law, be arbitrated and determined by arbitration
in California pursuant to California Code of Civil Procedure section 1280 et seq. unless the parties can resolve the dispute by mutual
agreement. Either party shall have the right to submit any dispute to arbitration 15 days after the other party has been notified as to
the nature of the dispute. In the event either party incurs attorney's fees as a result of a dispute regarding this Agreement, the prevailing
party shall be entitled to reasonable attorney's fees, as determined by arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **GOVERNING LAW:** This Agreement shall be governed by and construed in accordance with the local law
of the State of California.

 ****

***Signatures on Following Page***

ACCEPTED BY:

---

| | | | |
|:---|:---|:---|:---|
| **SUMMER WATER, INC** | **SUMMER WATER, INC** | **[\*\*\*]** | **[\*\*\*]** |
| By: | /s/ Ryan Zotovich | By: |  |
| Name: | Ryan Zotovich | Name: | Josh Baker |
| Title: | VP of Winemaking | Title: | CEO |
| Date: | 1/24/2025 | Date: | 1/24/2025 |

---

**Schedule A: Pricing**

---

| | | |
|:---|:---|:---|
| **Battling Fees and Charges** | |  |
| Standard package pricing\* | $4.15 | per case |
| \*Rates are based on a standard 12 x 750ml full service package (cork and capsule or screwcap, front and back label), standard case box. |  |  |
| \*Rates are subject to change for any non-standard package. |  |  |
| Per case rate includes: |  |  |
| &nbsp;&nbsp;&nbsp;All packaging receival |  |  |
| &nbsp;&nbsp;&nbsp;5 business days of glass and/or dry goods storage |  |  |
| &nbsp;&nbsp;&nbsp;Current vintage tank storage January through July one year post vintage |  |  |
| &nbsp;&nbsp;&nbsp;Standard Lab QC during storage and bottling |  |  |
| &nbsp;&nbsp;&nbsp;Standard battling Labor |  |  |
| &nbsp;&nbsp;&nbsp;Pallet wrapping |  |  |
| &nbsp;&nbsp;&nbsp;5 business days of finished goods storage |  |  |
| Packaging receival | Included |  |
| Lab QC | Included |  |
| Tray packs | $3.00 | per case |
| Trade name permit additon | $150.00 | per |
| COLA/Compliance/ltem Setup | $150.00 | per wine |
| Finished goods storage (5 business days included) | $25.00 | per pallet per week |
| Glass and/or dry goods storage (5 business days included) | $25.00 | per pallet per week |
| Kegging to client provided kegs (minimum 50 kegs)\* | $12.00 | per 5 gallon keg |
| Repacking | $3.00 | per case |
| Finished Goods Dispatch | $150.00 | per dispatch |
| Bottling Filters- Pre Filter | $290.00 | per filter |
| Battling Filters- Final Filter | $430.00 | per filter |
| 40 x 48 GMA Pallet | $18.00 | per pallet |
| Cancellation/Minimum Daily Fee - If bottling cancelled with less than 30 days notice or bottling was unable to proceed due to packaging delays or defects or if a shortage results in Producer needing less time than estimated. | $2500.00 | per day |
| **Storage and movements** |  |  |
| Move wine/juice to/from barrel (Minimum 10 barrels) | $5.00 | per barrel |
| Then current vintage wine storage (tank) January 1 - July 31 of year following vintage | Included | per gallon/week |
| Then current vintage wine storage (tank) August 1 - December 31 of year following vintage<sup>\*</sup> | $0.33 | per gallon/month |
| Past vintage wine storage (tank) January 1 two years following vintage\* | $0.33 | per gallon/month |
| Bulk wine dispatch or receival | $250.00 | per tanker |
| **Finishing and Misc** |  |  |
| First crossflow filtration (minimum 1000 gallons) | Included | per filtered gallon |
| In excess of one crossflow filtration (minimum 1000 gallons) | $0.25 | per filtered gallon |
| 3rd Party wine treatment (such as VA removal)- not including 3rd Party charges | $500.00 | per occurrence |
| Additional administrative support staff | $85.00 | per hour |
| Additional labor | $55.00 | per hour |
| Materials/Additions not provided by client | cost +25% |  |

---

\* Requires prior approval from Phase 2 Cellars

All pricing subject to 3.0% annual increase

Other work not listed to be discussed and mutually agreed upon by both parties

---

| | | |
|:---|:---|:---|
| Lab (includes sampling) |  |  |
| Acetic Acid | $25.00 | per sample |
| Alcohol | $25.00 | per sample |
| Amino Nitrogen | $27.00 | per sample |
| Ammonia | $23.00 | per sample |
| Barrel Wise FSO2 | $24.00 | per sample |
| **Bottling Panel** (AA, alc, cold stab, density, DCO2, DC. FSO2, GF, heat stab. pH. TA, TSO2, turbidity) | $160.00 | per sample |
| Bentonite trial | $75.00 | per sample |
| Bulk sampling- barrel | $10.00 | per sample |
| Bulk sampling- tank | $3.00 | per sample |
| Cold stability CMC trial | $75.00 | per sample |
| Conductivity/Cold stability check | $35.00 | per sample |
| Density/Specific Gravity | $15.00 | per sample |
| Dissolved CO2 | $15.00 | per sample |
| Dissolved Oxygen | $12.00 | per sample |
| Free SO2 | $15.00 | per sample |
| Grape Maturity (Brix- refract, pH, TA) | $35.00 | per sample |
| Glucose/Fructose | $25.00 | per sample |
| Heat Stability Check | $27.00 | per sample |
| **Juice Panel** (Brix- DMA and refract, pH,TA,YAN- NH3 and PAN. ML) | $90.00 | per sample |
| Malic Acid | $25.00 | per sample |
| **Monthly wine panel** (FSO2 and Acetic Acid) | $32.00 | per sample |
| Potassium | $35.00 | per sample |
| pH | $15.00 | per sample |
| Titratable Acidity | $20.00 | per sample |
| Total SO2 | $20.00 | per sample |
| Turbidity | $15.00 | per sample |
| **Wine Panel** (pH,TA, FSO2. TSO2, GF, ML, AA, Alc) | $130.00 | per sample |

---

![](amass003_ex10-31img01.jpg)

## Exhibit 10.32

**Exhibit 10.32**

**Certain identified information has been excluded… because it is both not material and is the type of information the registrant treats as private or confidential. Redactions are indicated by [\*\*\*].**

[\*\*\*]

**WINE PURCHASE AGREEMENT**

This Wine Purchase Agreement (the "Agreement") is entered into on February 3, 2022 by and between [\*\*\*] ("Seller") and BWSC, LLC ("Buyer").

In consideration of the mutual covenants and considerations expressed in this

Agreement, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase and Sale</u>. Seller will sell to Buyer the Wine identified below (the "Wine"), and Buyer will purchase the Wine from Seller at the agreed volume and pricing.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Crop**<br> **Vintage(s)** | **Appellation** | **Varietal** | **Volume** <br> **(Gallons)** | **Price Per** <br> **Gallon** |
| 2021 | California | Red Wine Blend | 77000 | $9.00 |
| 2022 | California | Red Wine Blend | 77000 | $9.00 |
| 2023 | California | Red Wine Blend | 77000 | $9.00 |

---

All prices are FOB [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment Terms</u>. Buyer agrees to pay Seller 100% of the amount owed net thirty (30) days from the date of shipment or bottling. Storage fees of $0.08 / gallon / month will begin on April 1 following harvest and due each month, upon receipt of an invoice. Wine must be shipped or bottled in full and payment received in full by no later than December 31 one year following harvest. Any delinquent amount will be subject to a late charge of 1.5% per month ("18% annually"). Failure of Buyer to make payment within the date specified above shall not constitute a default under this Agreement until Seller has made a written demand on Buyer for payment and Buyer fails to make such payment within 10 days after receipt of such written demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Title and Risk of Loss</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seller represents and warrants to Buyer that Seller is the sole owner of the Wine and that Seller will deliver the Wine to Buyer free of lien, claim, encumbrance or security interest of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. This Agreement constitutes an identification of the Wine specified herein, and all right, title and interest in and to that wine will pass to Buyer upon shipment, at which time Buyer will bear all risk of loss. Seller will carry adequate insurance on said wine until transfer of title is complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Wine Production</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seller warrants that the Wine complies with the Federal Alcohol Administration Act of 1935, as amended, the Federal Food, Drug and Cosmetic Act of 1938, as amended (the "Act"), the statutes of the State of California, and all applicable provisions of any regulations issued under the foregoing; and will not be adulterated or misbranded within the meaning of the Act or regulations issued thereunder, and that the Wine will not be an article that may not under the provisions of Section 404 or Section 505 of the Act be introduced into interstate commerce. Seller further warrants that no article sold under this Agreement will be produced in violation of Sections 331(d) or 355 of the Federal Food, Drug and Cosmetic Act of June 25, 1938, as amended.

[\*\*\*]

**WINE PURCHASE AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Assignment</u>. Neither party may assign its rights, duties or obligations under this Agreement without the express written consent of the other party, which consent may not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Counterparts</u>. This Agreement may be executed simultaneously in one (1) or more counterparts, each of which shall be deemed an original, but all of which shall constitute one (1) and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Attorneys' Fees</u>. If either party files any action or brings any proceeding against the other arising from this agreement, the prevailing party shall be entitled to recover as an element of its costs of suit, and not as damages, reasonable attorneys' fees to be fixed by the court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Agreement to Perform Necessary Acts</u>. Each party agrees to perform any further acts and execute and deliver any documents which may be reasonably necessary to carry out the provisions in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Time is of the Essence</u>. Time is of the essence and performance of this Agreement in respect to all provisions of this Agreement that specify a time for performance, and failure to comply with this provision shall be a material breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Waiver</u>. No breach of any provision of this Agreement can be waived unless in writing. Waiver of any one breach of a provision hereof shall not be deemed to be a waiver of any other breach of the same or any other provision, including the time for performance of any such provision. The exercise by a party of any remedy provided in this Agreement or at law shall not prevent the exercise by that party of any other remedy provided in this Agreement or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Conditions beyond Control of Parties</u>. Each party will be excused from performance under this Agreement during the period and to the extent that such party is unable to perform by reason of any cause beyond the control of that party, including, but not limited to fire, storm, flood, earthquake, war, insurrection, boycott, embargo, strike, labor dispute, power failure, labor shortage, quarantine, fuel shortage or any law, regulation or order of any federal, state, county or municipal authority.

[\*\*\*]

**WINE PURCHASE AGREEMENT**

---

| | | | |
|:---|:---|:---|:---|
| **SELLER:** | **SELLER:** | **BUYER:** | **BUYER:** |
| By | ![](amass003_ex10-32img01.jpg) | By | /s/ Julie Camberg |
| [\*\*\*] | [\*\*\*] |  | Julie Camberg |
|  |  |  | Signor's Name |
|  |  |  | WINC |
|  |  |  | Company Name |
|  |  |  | 1745 Berkeley Street, |
|  |  |  | Address |
|  |  |  | Santa Monica, CA 90404 |
|  |  |  | City, State, Zip |
|  |  |  | 714-917-5822 |
|  |  |  | Phone Number |

---

## Exhibit 10.33

**Exhibit 10.33**

**Certain identified information has been excluded… because it is both not material and is the type of information the registrant treats as private or confidential. Redactions are indicated by [\*\*\*].**

[\*\*\*]

**WINE PURCHASE AGREEMENT**

This Wine Purchase Agreement (the "Agreement") is entered into on March 12, 2022 by and between [\*\*\*] ("Seller") and BWSC, LLC ("Buyer").

In consideration of the mutual covenants and considerations expressed in this Agreement, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase and Sale</u>. Seller will sell to Buyer the Wine identified below (the "Wine"), and Buyer will purchase the Wine from Seller at the agreed volume and pricing.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Crop**<br> **Vintage(s)** | **Appellation** | **Varietal** | **Volume <br>(Gallons)** | **Price Per <br>Gallon** |
| 2021 | California | Cabernet Sauvignon | 60000 | $9.85 |
| 2022 | California | Cabernet Sauvignon | 60000 | $9.85 |
| 2023 | California | Cabernet Sauvignon | 60000 | $9.85 |

---

All prices are FOB [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment Terms</u>. Buyer agrees to pay Seller 100% of the amount owed net thirty (30) days from the date of shipment or bottling. Storage fees of $0.08 / gallon / month will begin on April 1 following harvest and due each month, upon receipt of an invoice. Wine must be shipped or bottled in full and payment received in full by no later than December 31 one year following harvest. Any delinquent amount will be subject to a late charge of 1.5% per month ("18% annually"). Failure of Buyer to make payment within the date specified above shall not constitute a default under this Agreement until Seller has made a written demand on Buyer for payment and Buyer fails to make such payment within 10 days after receipt of such written demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Title and Risk of Loss</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;a. Seller represents and warrants to Buyer that Seller is the sole owner of the Wine and that Seller will deliver the Wine to Buyer free of lien, claim, encumbrance or security interest of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&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. This Agreement constitutes an identification of the Wine specified herein, and all right, title and interest in and to that wine will pass to Buyer upon shipment, at which time Buyer will bear all risk of loss. Seller will carry adequate insurance on said wine until transfer of title is complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Wine Production</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;a. Seller warrants that the Wine complies with the Federal Alcohol Administration Act of 1935, as amended, the Federal Food, Drug and Cosmetic Act of 1938, as amended (the "Act"), the statutes of the State of California, and all applicable provisions of any regulations issued under the foregoing; and will not be adulterated or misbranded within the meaning of the Act or regulations issued thereunder, and that the Wine will not be an article that may not under the provisions of Section 404 or Section 505 of the Act be introduced into interstate commerce. Seller further warrants that no article sold under this Agreement will be produced in violation of Sections 331(d) or 355 of the Federal Food, Drug and Cosmetic Act of June 25, 1938, as amended.

[\*\*\*]

**WINE PURCHASE AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Assignment</u>. Neither party may assign its rights, duties or obligations under this Agreement without the express written consent of the other party, which consent may not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Counterparts</u>. This Agreement may be executed simultaneously in one (1) or more counterparts, each of which shall be deemed an original, but all of which shall constitute one (1) and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Attorneys' Fees</u>. If either party files any action or brings any proceeding against the other arising from this agreement, the prevailing party shall be entitled to recover as an element of its costs of suit, and not as damages, reasonable attorneys' fees to be fixed by the court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Agreement to Perform Necessary Acts</u>. Each party agrees to perform any further acts and execute and deliver any documents which may be reasonably necessary to carry out the provisions in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Time is of the Essence</u>. Time is of the essence and performance of this Agreement in respect to all provisions of this Agreement that specify a time for performance, and failure to comply with this provision shall be a material breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Waiver</u>. No breach of any provision of this Agreement can be waived unless in writing. Waiver of any one breach of a provision hereof shall not be deemed to be a waiver of any other breach of the same or any other provision, including the time for performance of any such provision. The exercise by a party of any remedy provided in this Agreement or at law shall not prevent the exercise by that party of any other remedy provided in this Agreement or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Conditions beyond Control of Parties</u>. Each party will be excused from performance under this Agreement during the period and to the extent that such party is unable to perform by reason of any cause beyond the control of that party, including, but not limited to fire, storm, flood, earthquake, war, insurrection, boycott, embargo, strike, labor dispute, power failure, labor shortage, quarantine, fuel shortage or any law, regulation or order of any federal, state, county or municipal authority.

[\*\*\*]

**WINE PURCHASE AGREEMENT**

---

| | | | |
|:---|:---|:---|:---|
| **SELLER:** | **SELLER:** | **BUYER:** | **BUYER:** |
| By | ![](amass003_ex10-33img01.jpg) | By | /s/ Julie Camberg |
| [\*\*\*] | [\*\*\*] |  | Julie Camberg |
|  |  |  | Signor's Name |
|  |  |  | Winc |
|  |  |  | Company Name |
|  |  |  | 1745 Berkeley Street, |
|  |  |  | Address |
|  |  |  | Santa Monica, CA 90404 |
|  |  |  | City, State, Zip |
|  |  |  | 714-917-5822 |
|  |  |  | Phone Number |

---

## Exhibit 10.35

**Exhibit 10.35**

**AMASS BRANDS INC.** 

**2026 OMNIBUS INCENTIVE PLAN**

**Section 1. General.**

The purposes of the AMASS Brands Inc. 2026 Omnibus Incentive Plan (the "<u>Plan</u>") are to: (a) encourage the profitability and growth of the Company through short-term and long-term incentives that are consistent with the Company's objectives; (b) give Participants an incentive for excellence in individual performance; (c) promote teamwork among Participants; and (d) give the Company a significant advantage in attracting and retaining key Employees, Directors and Consultants. To accomplish such purposes, the Plan provides that the Company may grant (i) Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock, (iv) Restricted Stock Units, (v) Performance-Based Awards (including performance-based Restricted Stock and Restricted Stock Units), (vi) Other Share-Based Awards, (vii) Other Cash-Based Awards or (viii) any combination of the foregoing.

**Section 2. Definitions.**

For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Administrator</u>" means the Board, or, if and to the extent the Board does not administer the Plan, the Committee in accordance with Section 3 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Affiliate</u>" means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. An entity shall be deemed an Affiliate for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained. For purposes of this definition, "control" (including with correlative meanings, the terms "controlling," "controlled by," or "under common control with"), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Automatic Exercise Date</u>" means, with respect to an Option or a Stock Appreciation Right, the last business day of the applicable term of the Option pursuant to Section 7(k) or the Stock Appreciation Right pursuant to Section 8(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Award</u>" means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance-Based Award, Other Share-Based Award or Other Cash-Based Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Award Agreement</u>" means a written agreement, contract or other instrument or document evidencing the terms and conditions of an individual Award granted under the Plan. Evidence of an Award may be in written or electronic form, may be limited to notation on the books and records of the Company and, with the approval of the Administrator, need not be signed by a representative of the Company or a Participant. Any Shares that become deliverable to the Participant pursuant to the Plan may be issued in certificate form in the name of the Participant or in book-entry form in the name of the Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Beneficial Owner</u>" (or any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Bylaws</u>" means the bylaws of the Company, as may be amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Cause</u>" shall have the meaning assigned to such term in any Company, Subsidiary or Affiliate unexpired employment, severance, or similar agreement or Award Agreement with a Participant, or if no such agreement exists or if such agreement does not define "Cause" (or a word of like import), Cause means (i) the Participant's breach of fiduciary duty or duty of loyalty to the Company, (ii) the Participant's conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude, (iii) the Participant's failure, refusal or neglect to perform and discharge his or her duties and responsibilities on behalf of the Company or a Subsidiary of the Company (other than by reason of Disability) or to comply with any lawful directive of the Board or its designee, (iv) the Participant's breach of any written policy of the Company or a Subsidiary or Affiliate thereof (including, without limitation, those relating to sexual harassment or the disclosure or misuse of confidential information), (v) the Participant's breach of any agreement with the Company or a Subsidiary or Affiliate thereof (including, without limitation, any confidentiality, non-competition, non-solicitation or assignment of inventions agreement), (vi) the Participant's commission of fraud, dishonesty, theft, embezzlement, self-dealing, misappropriation or other malfeasance against the business of the Company or a Subsidiary or Affiliate thereof, or (vii) the Participant's commission of acts or omissions constituting gross negligence or gross misconduct in the performance of any aspect of his or her lawful duties or responsibilities, which have or may be expected to have an adverse effect on the Company, its Subsidiaries or Affiliates. A Participant's employment shall be deemed to have terminated for "Cause" if, on the date his or her employment terminates, facts and circumstances exist that would have justified a termination for Cause, to the extent that such facts and circumstances are discovered within three (3) months following such termination. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Change in Capitalization</u>" means any (i) merger, consolidation, reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or corporate transaction or event, (ii) extraordinary dividend (whether in the form of cash, Shares or other property), stock split or reverse stock split, (iii) combination or exchange of shares, (iv) other change in corporate structure or (v) payment of any other distribution, which, in any such case, the Administrator determines, in its sole discretion, affects the Common Stock such that an adjustment pursuant to Section 5 of the Plan is appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Change in Control</u>" means the occurrence of any of the following:

&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 Person, other than the Company or a Subsidiary thereof, becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company's then outstanding voting securities (the "<u>Outstanding Company Voting Securities</u>"), excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph (iii) below or any acquisition directly from the Company; 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) the following individuals cease for any reason to constitute a majority of the number of Directors then serving on the Board: individuals who, during any period of two (2) consecutive years, constitute the Board and any new Director (other than a Director whose initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to, a consent solicitation, relating to the election of Directors of the Company) whose appointment or election by the Board or nomination for election by the Company's stockholders was approved or recommended by a vote of at least two-thirds (<sup>2</sup>/<sub>3</sub>) of the Directors then still in office who either were Directors at the beginning of the two (2) year period or whose appointment, election or nomination for election was previously so approved or recommended; 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) the consummation of a merger or consolidation of the Company or any Subsidiary thereof with any other corporation, other than a merger or consolidation (A) that results in the Outstanding Company Voting Securities immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the Outstanding Company Voting Securities (or such surviving entity or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof) outstanding immediately after such merger or consolidation, and (B) immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the Board of the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof; 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;(iv) the consummation of a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets, other than (A) a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which are owned directly or indirectly by stockholders of the Company following the completion of such transaction in substantially the same proportions as their ownership of the Company immediately prior to such sale or (B) a sale or disposition of all or substantially all of the Company's assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof.

For each Award that constitutes deferred compensation under Code Section 409A, a Change in Control (where applicable) shall be deemed to have occurred under the Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company also constitutes a "change in control event" under Code Section 409A.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the holders of Class A Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.

&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) "<u>Change in Control Price</u>" shall have the meaning set forth in Section 12 of the Plan.

&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) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

&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) "<u>Committee</u>" means any committee or subcommittee the Board may appoint to administer the Plan. Subject to the discretion of the Board, if required by Rule 16b-3 under the Exchange Act or the applicable stock exchange on which the Shares are traded following an IPO, the Committee shall be composed entirely of individuals who meet the qualifications of a "non-employee director" within the meaning of Rule 16b-3 under the Exchange Act and any other qualifications required by the applicable stock exchange on which the Shares are traded. If at any time or to any extent the Board shall not administer the Plan, then the functions of the Administrator specified in the Plan shall be exercised by the Committee. Except as otherwise provided in the Company's Articles of Incorporation or Bylaws, any action of the Committee with respect to the administration of the Plan shall be taken by a majority vote at a meeting at which a quorum is duly constituted or unanimous written consent of the Committee's members.

&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) "<u>Common Stock</u>" means the common stock of the Company (and any stock or other securities into which such shares of common stock may be converted or into which they may be exchanged).

&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) "<u>Company</u>" means AMASS Brands Inc., a Delaware corporation (or any successor corporation, except as the term "Company" is used in the definition of "Change in Control" above).

&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) "<u>Consultant</u>" means any current or prospective consultant or independent contractor of the Company or an Affiliate thereof, in each case, who is not an Employee, Executive Officer or Non-Employee Director.

&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) "<u>Director</u>" means any individual who is a member of the Board on or after the Effective 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;(xii) "<u>Disability</u>" means, with respect to any Participant who is an Employee, a permanent and total disability as defined in Code Section 22(e)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) "<u>Effective Date</u>" shall have the meaning set forth in Section 22 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) "<u>Eligible Recipient</u>" means, with respect to an Award denominated in Common Stock issued under the Plan: (i) an Employee; (ii) a Non-Employee Director; or (iii) a Consultant, in each case, who has been selected as an eligible recipient under the Plan by the Administrator; provided, that any Awards granted prior to the date an Eligible Recipient first is employed by or performs services for the Company or an Affiliate thereof will not become vested or exercisable, and no Shares shall be issued or other payment made to such Eligible Recipient with respect to such Awards, prior to the date on which such Eligible Recipient first is employed by or performs services for the Company or an Affiliate thereof. Notwithstanding the foregoing, to the extent required to avoid the imposition of additional taxes under Code Section 409A, "Eligible Recipient" means: an (1) Employee; (2) a Non-Employee Director; or (3) a Consultant, in each case, of the Company or a Subsidiary thereof, who has been selected as an eligible recipient under the Plan by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) "<u>Employee</u>" shall mean any current or prospective employee of the Company or an Affiliate thereof, as described in Treasury Regulation Section 1.421-1(h), including an Executive Officer or Director who is also treated as an employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) "<u>Executive Officer</u>" means each Participant who is an executive officer (within the meaning of Rule 3b-7 under the Exchange Act) of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) "<u>Exercise Price</u>" means, with respect to any Award under which the holder may purchase Shares, the price per share at which a holder of such Award granted hereunder may purchase Shares issuable upon exercise of such Award, as determined by the Administrator in accordance with Code Section 409A, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) "<u>Fair Market Value</u>" as of a particular date shall mean: (i) if the Shares are listed on any established stock exchange or a national market system, including, without limitation, the New York Stock Exchange or the Nasdaq Stock Market, the Fair Market Value shall be the closing price of a Share (or if no sales were reported, the closing price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination; (ii) if the Shares are not then listed on a national securities exchange, the average of the highest reported bid and lowest reported asked prices for a Share as reported by the National Association of Securities Dealers, Inc. Automated Quotations System for the last preceding date on which there was a sale of such stock in such market; or (iii) whether or not the Shares are then listed on a national securities exchange or traded in an over-the-counter market or the value of such Shares is not otherwise determinable, such value as determined by the Administrator in good faith and in a manner not inconsistent with the regulations under Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "<u>Free Standing Rights</u>" shall have the meaning set forth in Section 8(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) "<u>Good Reason</u>" means, with respect to a Participant, a resignation for "Good Reason" (or a term of similar meaning) as defined in the Participant's Award Agreement or other applicable written agreement with the Company or an Affiliate, if any; provided that if no such agreement defines "Good Reason," the term shall not apply for purposes of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) "<u>Incentive Stock Option</u>" means an Option that is designated by the Committee as an incentive stock option within the meaning of Section 422 of the Code and that meets the requirements set out in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) "<u>IPO</u>" means an initial public offering of, or direct or indirect public listing of, the securities of the Company, its successors and assigns, or any of its related corporate entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) "<u>Non-Employee Director</u>" means a Director who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) "<u>Nonqualified Stock Option</u>" means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) "<u>Outstanding Shares</u>" means the then-outstanding shares of Common Stock of the Company, taking into account as outstanding for this purpose such Common Stock issuable upon the exercise of Options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) "<u>Option</u>" means an option to purchase Shares granted pursuant to Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) "<u>Other Cash-Based Award</u>" means a cash Award granted to a Participant under Section 11 of the Plan, including cash awarded as a bonus or upon the attainment of Performance Goals or otherwise as permitted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) "<u>Other Share-Based Award</u>" means a right or other interest granted to a Participant under the Plan that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares, including, but not limited to, unrestricted Shares or dividend equivalents, each of which may be subject to the attainment of Performance Goals or a period of continued employment or other terms or conditions as permitted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) "<u>Participant</u>" means any Eligible Recipient selected by the Administrator, pursuant to the Administrator's authority provided for in Section 3 of the Plan, to receive an Award under the Plan, and, upon his or her death, his or her successors, heirs, executors and administrators, as the case may be, solely with respect to any Awards outstanding at the date of the Eligible Recipient's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxi) "<u>Performance-Based Award</u>" means any Award granted under the Plan that is subject to one or more Performance Goals. Any dividends or dividend equivalents payable or credited to a Participant with respect to any unvested Performance-Based Award shall be subject to the same Performance Goals as the Shares or units underlying the Performance-Based Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxii) "<u>Performance Goals</u>" means performance goals based on performance criteria selected by the Administrator, which may include, but are not limited to, any of the following: (i) earnings before interest and taxes; (ii) earnings before interest, taxes, depreciation and amortization; (iii) net operating profit after tax; (iv) cash flow; (v) revenue; (vi) net revenues; (vii) sales; (viii) days sales outstanding; (ix) income; (x) net income; (xi) operating income; (xii) net operating income; (xiii) operating margin; (xiv) earnings; (xv) earnings per share; (xvi) return on equity; (xvii) return on investment; (xviii) return on capital; (xix) return on assets; (xx) return on net assets; (xxi) total shareholder return; (xxii) economic profit; (xxiii) market share; (xxiv) appreciation in the fair market value, book value or other measure of value of the Shares; (xxv) expense or cost control; (xxvi) working capital; (xxvii) customer satisfaction; (xxviii) employee retention or employee turnover; (xxix) employee satisfaction or engagement; (xxx) environmental, health or other safety goals; (xxxi) individual performance; (xxxii) strategic objective milestones; (xxxiii) any other criteria specified by the Administrator in its sole discretion; and (xxxiv) any combination of, or a specified increase or decrease in, as applicable, any of the foregoing. Where applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company or an Affiliate thereof, or a division or strategic business unit of the Company, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by the Administrator. The Performance Goals may include a threshold level of performance below which no payment shall be made (or no vesting shall occur), levels of performance at which specified payments shall be made (or specified vesting shall occur), and a maximum level of performance above which no additional payment shall be made (or at which full vesting shall occur). At the time such an Award is granted, the Administrator may specify any reasonable definition of the Performance Goals it uses. Such definitions may provide for equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or an Affiliate thereof or the financial statements of the Company or an Affiliate thereof, in response to changes in applicable laws or regulations, or to account for items of gain, loss or expense determined to be unusual in nature, infrequent in occurrence or unusual in nature and infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles. If the Administrator determines that a change in the business, operations, corporate structure or capital structure of the Company or the manner in which the Company or an Affiliate conducts its business, or other events or circumstances render performance goals to be unsuitable, the Administrator may modify such Performance Goals in whole or in part, as the Committee deems appropriate. If a Participant is promoted, demoted or transferred to a different business unit or function during a performance period, the Administrator may determine that the Performance Goals or performance period are no longer appropriate and may (x) adjust, change or eliminate the Performance Goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals and period, or (y) make a cash payment to the Participant in an amount determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxiii) "<u>Person</u>" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, however, a Person shall not include (i) the Company or any of its Subsidiaries; (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries; (iii) an underwriter temporarily holding securities pursuant to an offering of such securities; or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxiv) "<u>Plan</u>" means this AMASS Brands Inc. 2026 Omnibus Incentive Plan, as amended and/or amended and restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxv) "<u>Related Rights</u>" shall have the meaning set forth in Section 8(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxvi) "<u>Restricted Stock</u>" means an Award of Shares granted pursuant to Section 9 of the Plan subject to certain restrictions that lapse at the end of a specified period or periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxvii) "<u>Restricted Stock Unit</u>" means a notional account established pursuant to an Award granted to a Participant, as described in Section 10 of the Plan, that is (i) valued solely by reference to Shares, (ii) subject to restrictions specified in the Award Agreement, and (iii) payable in cash or in Shares (as specified in the Award Agreement). The Restricted Stock Units awarded to the Participant will vest according to the time-based criteria or Performance Goals, and vested Restricted Stock Units will be settled at the time(s), specified in the Award 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;(xxxviii) "<u>Restricted Period</u>" means the period of time determined by the Administrator during which an Award or a portion thereof is subject to restrictions or, as applicable, the period of time within which performance is measured for purposes of determining whether an Award has been earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxix) "<u>Rule 16b-3</u>" shall have the meaning set forth in Section 3(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xl) "<u>Securities Act</u>" means the Securities Act of 1933, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xli) "<u>Share</u>" means a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xlii) "<u>Stock Appreciation Right</u>" means the right pursuant to an Award granted under Section 8 of the Plan to receive an amount equal to the excess, if any, of (i) the aggregate Fair Market Value, as of the date such Award or portion thereof is surrendered, of the Shares covered by such Award or such portion thereof, over (ii) the aggregate Exercise Price of such Award or such portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xliii) "<u>Subsidiary</u>" means, with respect to any Person, as of any date of determination, any other Person as to which such first Person owns or otherwise controls, directly or indirectly, more than fifty percent (50%) of the voting shares or other similar interests or a sole general partner interest or managing member or similar interest of such other Person. An entity shall be deemed a Subsidiary of the Company for purposes of this definition only for such periods as the requisite ownership or control relationship is maintained. Notwithstanding the foregoing, in the case of an Incentive Stock Option or any determination relating to an Incentive Stock Option, "Subsidiary" means a corporation that is a subsidiary of the Company within the meaning of Code Section 424(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xliv) "<u>Substitute Award</u>" shall mean an Award granted under the Plan upon the assumption of, or in substitution for, outstanding equity awards granted by a company or other entity in connection with a corporate transaction, such as a merger, combination, consolidation, or acquisition of property or stock; *provided*, *however*, that in no event shall the term "Substitute Award" be construed to refer to an award made in connection with the cancellation and repricing of an Option or Stock Appreciation Right.

**Section 3. Administration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan shall be administered by the Administrator in accordance with the requirements of Rule 16b-3 under the Exchange Act ("<u>Rule 16b-3</u>"), to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pursuant to the terms of the Plan, the Administrator, subject, in the case of any Committee, to any restrictions on the authority delegated to it by the Board, shall have the power and authority, without limitation:

&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) to select those Eligible Recipients who shall be Participants;

&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 determine whether and to what extent Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Other Share-Based Awards, Other Cash-Based Awards or a combination of any of the foregoing, are to be granted hereunder to Participants;

&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) to determine the number of Shares to be made subject to each Award;

&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) to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Award granted hereunder, including, but not limited to, (A) the restrictions applicable to Awards and the conditions under which restrictions applicable to such Awards shall lapse, (B) the Performance Goals and performance periods applicable to Awards, if any, (C) the Exercise Price of each Award, (D) the vesting schedule applicable to each Award, (E) any confidentiality or restrictive covenant provisions applicable to the Award, and (F) subject to the requirements of Code Section 409A (to the extent applicable), any amendments to the terms and conditions of outstanding Awards, including, but not limited to, extending the exercise period of such Awards and accelerating the vesting schedule of such Awards;

&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) to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all Award Agreements evidencing Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Other Share-Based Awards, Other Cash-Based Awards or any combination of the foregoing granted hereunder;

&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) to determine Fair Market Value;

&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) to determine the duration and purpose of leaves of absence which may be granted to a Participant without constituting termination of the Participant's employment for purposes of Awards granted under the Plan;

&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) to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time to time deem advisable;

&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) to reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan, any Award Agreement or other instrument or agreement relating to the Plan or an Award granted under the Plan; 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;(x) to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement relating thereto), and to otherwise supervise the administration of the Plan and to exercise all powers and authorities either specifically granted under the Plan or necessary and advisable in the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except to the extent prohibited by applicable law or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company may be listed or traded, the Administrator may allocate all or any portion of its responsibilities and powers to any one (1) or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. Without limiting the generality of the foregoing, the Committee may delegate to one (1) or more officers of the Company, the authority to act on behalf of the Committee with respect to any matter, right, obligation, or election which is the responsibility of, or which is allocated to, the Committee herein, and which may be so delegated as a matter of law, except for grants of Awards to Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. No member of the Board or the Committee, or any officer or employee of the Company or any Subsidiary thereof acting on behalf of the Board or the Committee, shall be personally liable for any action, omission, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Committee and each and any officer or employee of the Company and of any Subsidiary thereof acting on their behalf shall, to the maximum extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, omission, determination or interpretation.

**Section 4. Shares Reserved for Issuance Under the Plan and Limitations on Awards.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to this Section 4 and to adjustment in accordance with Section 5 of the Plan, the Administrator is authorized to deliver with respect to Awards granted under the Plan an aggregate of [●] shares of Common Stock; provided, that the total number of shares of Common Stock that will be reserved, and that may be issued, under the Plan will automatically increase on the first trading day of each calendar year, beginning with calendar year 2026, by a number of Common Shares equal to four percent (4%) of the total number of Outstanding Shares on the last day of the prior calendar year. Notwithstanding the foregoing, the Administrator may act prior to January 1 of a given year to provide that there will be no such increase in the share reserve for that year or that the increase in the share reserve for such year will be a lesser number of Common Shares than provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything herein to the contrary, the maximum number of Shares subject to Awards granted during any fiscal year to any Non-Employee Director, taken together with any cash fees paid to such Non-Employee Director during the fiscal year with respect to such Director's service as a Non-Employee Director, shall not exceed $200,000 (calculating the value of any such Awards based on the grant date Fair Market Value of such Awards for financial reporting purposes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares or Shares that shall have been or may be reacquired by the Company in the open market, in private transactions or otherwise. Any shares of Common Stock subject to an Award under the Plan that, after the Effective Date, are forfeited, canceled, settled or otherwise terminated without a distribution of Shares to a Participant will thereafter be deemed to be available for Awards with respect to shares of Common Stock. In applying the immediately preceding sentence, if (i) Shares otherwise issuable or issued in respect of, or as part of, any Award are withheld to cover taxes or any applicable Exercise Price, such Shares shall be treated as having been issued under the Plan and shall not be available for issuance under the Plan, and (ii) any Share-settled Stock Appreciation Rights or Options are exercised, the aggregate number of Shares subject to such Stock Appreciation Rights or Options shall be deemed issued under the Plan and shall not be available for issuance under the Plan. In addition, Shares (x) tendered to exercise outstanding Options or other Awards, (y) withheld to cover applicable taxes on any Awards or (z) repurchased on the open market using Exercise Price proceeds shall not be available for issuance under the Plan. For the avoidance of doubt, (A) Shares underlying Awards that are subject to the achievement of performance goals shall be counted against the Share reserve based on the target value of such Awards unless and until such time as such Awards become vested and settled in Shares, and (B) Awards that, pursuant to their terms, may be settled only in cash shall not count against the Share reserve set forth in Section 4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Substitute Awards shall not reduce the Shares authorized for grant under the Plan. In the event that a company acquired by the Company or any Affiliate or with which the Company or any Affiliate combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; *provided*, that Awards using such available Shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employed by or providing services to the Company or its Affiliates immediately prior to such acquisition or combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that the Company or an Affiliate thereof consummates a transaction described in Code Section 424(a) (e.g., the acquisition of property or stock from an unrelated corporation), persons who become Employees or Directors in account of such transaction may be granted Substitute Awards in substitution for awards granted by their former employer, and any such substitute Options or Stock Appreciation Rights may be granted with an Exercise Price less than the Fair Market Value of a Share on the grant date thereof; provided, however, the grant of such substitute Option or Stock Appreciation Right shall not constitute a "modification" as defined in Code Section 424(h)(3) and the applicable Treasury regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding any other provision of the Plan to the contrary, Awards granted under the Plan shall not vest in full earlier than the first anniversary of the applicable grant date. The foregoing restriction shall not apply to (i) Substitute Awards granted pursuant to Sections 4(d) or 4(e), (ii) Awards that result in the issuance of an aggregate of up to five percent (5%) of the Shares authorized for issuance under the Plan pursuant to Section 4(a), or (iii) the Administrator's discretion to provide for accelerated vesting in connection with a Participant's death, Disability, or a Change in Control. For the avoidance of doubt, nothing in this Section 4(f) shall limit the Administrator's authority to grant Awards with time-based vesting schedules that vest in part prior to the first anniversary of the grant date, so long as such Awards do not vest in full prior to such date and the Shares underlying such Awards are not counted against the five percent (5%) exception set forth in clause (ii).

**Section 5. Equitable Adjustments.**

In the event of any Change in Capitalization, including, without limitation, a Change in Control, an equitable substitution or proportionate adjustment shall be made, in each case, as may be determined by the Administrator, in its sole discretion, in (a) the aggregate number of Shares reserved for issuance under the Plan, (b) the kind, number and Exercise Price subject to outstanding Options and Stock Appreciation Rights granted under the Plan; *provided*, *however*, that any such substitution or adjustment with respect to Options and Stock Appreciation Rights shall occur in accordance with the requirements of Code Section 409A, and (c) the kind, number and purchase price of Shares subject to outstanding Restricted Stock or Other Share-Based Awards granted under the Plan, in each case as may be determined by the Administrator, in its sole discretion; *provided*, *however*, that any fractional Shares resulting from the adjustment shall be eliminated. Such other equitable substitutions or adjustments shall be made as may be determined by the Administrator, in its sole discretion. Without limiting the generality of the foregoing, in connection with a Change in Capitalization, the Administrator may provide, in its sole discretion, for the cancellation of any outstanding Award granted hereunder (i) in exchange for payment in cash or other property having an aggregate Fair Market Value of the Shares covered by such Award, reduced by the aggregate Exercise Price or purchase price thereof, if any, and (ii) with respect to any Awards for which the Exercise Price or purchase price per share of Common Stock is greater than or equal to the then current Fair Market Value per share of Common Stock, for no consideration. Notwithstanding anything contained in the Plan to the contrary, any adjustment with respect to an Incentive Stock Option due to an adjustment or substitution described in this Section 5 shall comply with the rules of Code Section 424(a), and in no event shall any adjustment be made which would render any Incentive Stock Option granted hereunder to be disqualified as an incentive stock option for purposes of Code Section 422. The Administrator's determinations pursuant to this Section 5 shall be final, binding and conclusive.

**Section 6. Eligibility.**

The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from among Eligible Recipients.

**Section 7. Options.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General*. The Administrator may, in its sole discretion, grant Options to Participants. Solely with respect to Participants who are Employees, the Administrator may grant Incentive Stock Options, Nonqualified Stock Options or a combination of both. With respect to all other Participants, the Administrator may grant only Nonqualified Stock Options. Each Participant who is granted an Option shall enter into an Award Agreement with the Company, containing such terms and conditions as the Administrator shall determine, in its sole discretion, which Award Agreement shall specify whether the Option is an Incentive Stock Option or a Nonqualified Stock Option and shall set forth, among other things, the Exercise Price of the Option, the term of the Option and provisions regarding exercisability of the Option granted thereunder. The provisions of each Option need not be the same with respect to each Participant. More than one Option may be granted to the same Participant and be outstanding concurrently hereunder. Options granted under the Plan shall be subject to the terms and conditions set forth in this Section 7 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable and set forth in the applicable Award Agreement. The prospective recipient of an Option shall not have any rights with respect to such Award, unless and until such recipient has received an Award Agreement and, if required by the Administrator in the Award Agreement, executed and delivered a fully executed copy thereof to the Company, within a period of sixty (60) days (or such other period as the Administrator may specify) after the award date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Limits on Incentive Stock Options*. If the Administrator grants Incentive Stock Options, then to the extent that the aggregate fair market value of Shares with respect to which Incentive Stock Options are exercisable for the first time by any individual during any calendar year (under all plans of the Company) exceeds $100,000, such Options will be treated as Nonqualified Stock Options to the extent required by Code Section 422. Subject to Section 5, the maximum number of shares that may be issued pursuant to Options intended to be Incentive Stock Options is [●] Shares and, for the avoidance of doubt, such share limit shall not be subject to the annual adjustment provided in Section 4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Exercise Price*. The Exercise Price of Shares purchasable under an Option shall be determined by the Administrator in its sole discretion at the time of grant; *provided*, *however*, that (i) in no event shall the Exercise Price of an Option be less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant, and (ii) no Incentive Stock Option granted to a ten percent (10%) stockholder of the Company (within the meaning of Code Section 422(b)(6)) shall have an Exercise Price per Share less than one-hundred ten percent (110%) of the Fair Market Value of a Share on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Option Term*. The maximum term of each Option shall be fixed by the Administrator, but in no event shall (i) an Option be exercisable more than ten (10) years after the date such Option is granted, and (ii) an Incentive Stock Option granted to a ten percent (10%) stockholder of the Company (within the meaning of Code Section 422(b)(6)) be exercisable more than five (5) years after the date such Option is granted. Each Option's term is subject to earlier expiration pursuant to the applicable provisions in the Plan and the Award Agreement. Notwithstanding the foregoing, the Administrator shall have the authority to accelerate the exercisability of any outstanding Option at such time and under such circumstances as the Administrator, in its sole discretion, deems appropriate. Notwithstanding any contrary provision in this Plan (including, without limitation, Section 7(h)), if, on the date an outstanding Option would expire, the exercise of the Option, including by a "net exercise" or "cashless" exercise, would violate applicable securities laws or any insider trading policy maintained by the Company from time to time, the expiration date applicable to the Option will be extended, except to the extent such extension would violate Code Section 409A, to a date that is thirty (30) calendar days after the date the exercise of the Option would no longer violate applicable securities laws or any such insider trading policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Exercisability*. Each Option shall be exercisable at such time or times and subject to such terms and conditions, including the attainment of pre-established Performance Goals, as shall be determined by the Administrator in the applicable Award Agreement. The Administrator may also provide that any Option shall be exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine in its sole discretion. Notwithstanding anything to the contrary contained herein, an Option may not be exercised for a fraction of a share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Method of Exercise*. Options may be exercised in whole or in part by giving written notice of exercise to the Company specifying the number of Shares to be purchased, accompanied by payment in full of the aggregate Exercise Price of the Shares so purchased in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, with respect to any Option or category of Options, payment in whole or in part may also be made (i) by means of consideration received under any cashless exercise procedure approved by the Administrator (including the withholding of Shares otherwise issuable upon exercise), (ii) in the form of unrestricted Shares already owned by the Participant which have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option shall be exercised, (iii) any other form of consideration approved by the Administrator and permitted by applicable law, or (iv) any combination of the foregoing. In determining which methods a Participant may utilize to pay the Exercise Price, the Administrator may consider such factors as it determines are appropriate; *provided*, *however*, that with respect to Incentive Stock Options, all such discretionary determinations shall be made by the Administrator at the time of grant and specified in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Rights as Stockholder*. A Participant shall have no rights to dividends or any other rights of a stockholder with respect to the Shares subject to an Option until the Participant has given written notice of the exercise thereof, has paid in full for such Shares and has satisfied the requirements of Section 16 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Termination of Employment or Service*. Unless the applicable Award Agreement provides otherwise, in the event that the employment or service of a Participant with the Company and all Affiliates thereof shall terminate, the following terms and conditions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event of the termination of a Participant's employment or service by the Company without Cause or due to a resignation by the Participant for any reason, (A) Options granted to such Participant, to the extent that they are exercisable at the time of such termination, shall remain exercisable until the date that is ninety (90) days after such termination (with such period being extended to one (1) year after the date of such termination in the event of the Participant's death during such ninety (90) day period), on which date they shall expire, and (B) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

&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) In the event of the termination of a Participant's employment or service as a result of the Participant's Disability or death, (A) Options granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the date that is one (1) year after such termination, on which date they shall expire, and (B) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of its term.

&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) In the event of the termination of a Participant's employment or service for Cause, all outstanding Options granted to such Participant shall expire at the commencement of business on the date of such 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;(iii) For purposes of determining which Options are exercisable upon termination of employment or service for purposes of this Section 7(h), Options that are not exercisable solely due to a blackout period shall be considered exercisable.

&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 herein to the contrary, an Incentive Stock Option may not be exercised more than three (3) months following the date as of which a Participant ceases to be an Employee for any reason other than death or Disability. In the event that an Option is exercisable following the date that is three (3) months following the date as of which a Participant ceases to be an Employee for any reason other than death or Disability, such Option shall be deemed to be a Nonqualified Stock Option.

&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) *Other Change in Employment Status*. An Option may be affected, both with regard to vesting schedule and termination, by leaves of absence, changes from full-time to part-time employment, partial disability or other changes in the employment status or service of a Participant, as evidenced in a Participant's Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Change in Control*. Notwithstanding anything herein to the contrary, upon a Change in Control, all outstanding Options shall be subject to Section 12 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Automatic Exercise*. Unless otherwise provided by the Administrator in an Award Agreement or otherwise, or as otherwise directed by the Participant in writing to the Company, each vested and exercisable Option outstanding on the Automatic Exercise Date with an Exercise Price per Share that is less than the Fair Market Value per Share as of such date shall automatically and without further action by the Participant or the Company be exercised on the Automatic Exercise Date. In the sole discretion of the Administrator, payment of the exercise price of any such Option shall be made pursuant to Section 7(f)(i) or (ii), and the Company or any Affiliate shall deduct or withhold an amount sufficient to satisfy all taxes associated with such exercise in accordance with Section 16. Unless otherwise determined by the Administrator, this Section 7(k) shall not apply to an Option if the Participant's employment or service has terminated on or before the Automatic Exercise Date. For the avoidance of doubt, no Option with an Exercise Price per Share that is equal to or greater the Fair Market Value per Share on the Automatic Exercise Date shall be exercised pursuant to this Section 7(k).

**Section 8. Stock Appreciation Rights.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General*. Stock Appreciation Rights may be granted either alone ("<u>Free Standing Rights</u>") or in conjunction with all or part of any Option granted under the Plan ("<u>Related Rights</u>"). Any Related Right that relates to a Nonqualified Stock Option may be granted at the same time the Option is granted or at any time thereafter, but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive Stock Option must be granted at the same time the Incentive Stock Option is granted. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, grants of Stock Appreciation Rights shall be made, the number of Shares to be awarded, the price per Share, and all other conditions of Stock Appreciation Rights. Notwithstanding the foregoing, no Related Right may be granted for more Shares than are subject to the Option to which it relates and any Stock Appreciation Right must be granted with an Exercise Price not less than the Fair Market Value of a Share on the date of grant. The provisions of Stock Appreciation Rights need not be the same with respect to each Participant. Stock Appreciation Rights granted under the Plan shall be subject to the following terms and conditions set forth in this Section 8 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable, as set forth in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Awards; Rights as Stockholder*. The prospective recipient of a Stock Appreciation Right shall not have any rights with respect to such Award, unless and until such recipient has received an Award Agreement and, if required by the Administrator in the Award Agreement, executed and delivered a fully executed copy thereof to the Company, within a period of sixty (60) days (or such other period as the Administrator may specify) after the award date. Participants who are granted Stock Appreciation Rights shall have no rights as stockholders of the Company with respect to the grant or exercise of such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Exercisability*.

&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) Stock Appreciation Rights that are Free Standing Rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator in the applicable Award 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;(ii) Stock Appreciation Rights that are Related Rights shall be exercisable only at such time or times and to the extent that the Options to which they relate shall be exercisable in accordance with the provisions of Section 7 above and this Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Payment Upon Exercise*.

&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 the exercise of a Free Standing Right, the Participant shall be entitled to receive up to, but not more than, that number of Shares, determined using the Fair Market Value, equal in value to the excess of the Fair Market Value as of the date of exercise over the price per share specified in the Free Standing Right multiplied by the number of Shares in respect of which the Free Standing Right is being exercised.

&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) A Related Right may be exercised by a Participant by surrendering the applicable portion of the related Option. Upon such exercise and surrender, the Participant shall be entitled to receive up to, but not more than, that number of Shares, determined using the Fair Market Value, equal in value to the excess of the Fair Market Value as of the date of exercise over the Exercise Price specified in the related Option multiplied by the number of Shares in respect of which the Related Right is being exercised. Options which have been so surrendered, in whole or in part, shall no longer be exercisable to the extent the Related Rights have been so exercised.

&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 the foregoing, the Administrator may determine to settle the exercise of a Stock Appreciation Right in cash (or in any combination of Shares and cash).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Termination of Employment or Service*.

&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) Subject to Section 8(f), in the event of the termination of employment or service with the Company and all Affiliates thereof of a Participant who has been granted one or more Free Standing Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator in the applicable Award 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;(ii) Subject to Section 8(f), in the event of the termination of employment or service with the Company and all Affiliates thereof of a Participant who has been granted one or more Related Rights, such rights shall be exercisable at such time or times and subject to such terms and conditions as set forth in the related Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Term*.

&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 term of each Free Standing Right shall be fixed by the Administrator, but no Free Standing Right shall be exercisable more than ten (10) years after the date such right is granted.

&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) The term of each Related Right shall be the term of the Option to which it relates, but no Related Right shall be exercisable more than ten (10) years after the date such right is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Change in Control*. Notwithstanding anything herein to the contrary, upon a Change in Control, all outstanding Stock Appreciation Rights shall be subject to Section 12 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Automatic Exercise*. Unless otherwise provided by the Administrator in an Award Agreement or otherwise, or as otherwise directed by the Participant in writing to the Company, each vested and exercisable Stock Appreciation Right outstanding on the Automatic Exercise Date with an Exercise Price per Share that is less than the Fair Market Value per Share as of such date shall automatically and without further action by the Participant or the Company be exercised on the Automatic Exercise Date. The Company or any Affiliate shall deduct or withhold an amount sufficient to satisfy all taxes associated with such exercise in accordance with Section 16. Unless otherwise determined by the Administrator, this Section 8(h) shall not apply to a Stock Appreciation Right if the Participant's employment or service has terminated on or before the Automatic Exercise Date. For the avoidance of doubt, no Stock Appreciation Right with an Exercise Price per Share that is equal to or greater the Fair Market Value per Share on the Automatic Exercise Date shall be exercised pursuant to this Section 8(h).

**Section 9. Restricted Stock.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General*. Each Award of Restricted Stock granted under the Plan shall be evidenced by an Award Agreement. Restricted Stock may be issued either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, grants of Restricted Stock shall be made; the number of Shares to be awarded; the price, if any, to be paid by the Participant for the acquisition of Restricted Stock; the Restricted Period, if any, applicable to Restricted Stock; the Performance Goals (if any) applicable to Restricted Stock; and all other conditions of the Restricted Stock. If the restrictions, Performance Goals and/or conditions established by the Administrator are not attained, a Participant shall forfeit his or her Restricted Stock in accordance with the terms of the grant. The terms and conditions applicable to the Restricted Stock need not be the same with respect to each Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Awards and Certificates*. The prospective recipient of Restricted Stock shall not have any rights with respect to any such Award, unless and until such recipient has received an Award Agreement and, if required by the Administrator in the Award Agreement, executed and delivered a fully executed copy thereof to the Company, within a period of sixty (60) days (or such other period as the Administrator may specify) after the award date. Except as otherwise provided in herein, (i) each Participant who is granted an Award of Restricted Stock may, in the Company's sole discretion, be issued a stock certificate in respect of such Restricted Stock; and (ii) any such certificate so issued shall be registered in the name of the Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such Award. The Company may require that the stock certificates, if any, evidencing Restricted Stock granted hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed, and that, as a condition of any award of Restricted Stock, the Participant shall have delivered a stock power, endorsed in blank, relating to the Shares covered by such Award. Notwithstanding anything in the Plan to the contrary, any Restricted Stock (whether before or after any vesting conditions have been satisfied) may, in the Company's sole discretion, be issued in uncertificated form pursuant to the customary arrangements for issuing shares in such form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Restrictions and Conditions*. The Restricted Stock granted pursuant to this Section 9 shall be subject to the following restrictions and conditions and any additional restrictions or conditions as determined by the Administrator at the time of grant or thereafter:

&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 Restricted Stock shall be subject to the restrictions on transferability set forth in the Award Agreement and in the Plan.

&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) The Administrator may, in its sole discretion, provide for the lapse of restrictions in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain Performance Goals, the Participant's termination of employment or service as Non-Employee Director or Consultant of the Company or an Affiliate thereof, or the Participant's death or Disability.

&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) Subject to this Section 9(c)(iii), the Participant shall generally have the rights of a stockholder of the Company with respect to Restricted Stock during the Restricted Period. In the Administrator's discretion and as provided in the applicable Award Agreement, a Participant may be entitled to dividends or dividend equivalents on an Award of Restricted Stock, which will be payable in accordance with the terms of such grant as determined by the Administrator in accordance with Section 18 of the Plan. Certificates for unrestricted Shares may, in the Company's sole discretion, be delivered to the Participant only after the Restricted Period has expired without forfeiture in respect of such Restricted Stock, except as the Administrator, in its sole discretion, shall otherwise determine.

&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) The rights of Participants granted Restricted Stock upon termination of employment or service as a Non-Employee Director or Consultant of the Company or an Affiliate thereof terminates for any reason during the Restricted Period shall be set forth in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Change in Control*. Notwithstanding anything herein to the contrary, upon a Change in Control, all outstanding Restricted Stock shall be subject to Section 12 of the Plan.

**Section 10. Restricted Stock Units.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General*. Restricted Stock Units may be issued either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, grants of Restricted Stock Units shall be made; the number of Restricted Stock Units to be awarded; the Restricted Period, if any, applicable to Restricted Stock Units; the Performance Goals (if any) applicable to Restricted Stock Units; and all other conditions of the Restricted Stock Units. If the restrictions, Performance Goals and/or conditions established by the Administrator are not attained, a Participant shall forfeit his or her Restricted Stock Units in accordance with the terms of the grant. The provisions of Restricted Stock Units need not be the same with respect to each Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Award Agreement*. The prospective recipient of Restricted Stock Units shall not have any rights with respect to any such Award, unless and until such recipient has received an Award Agreement and, if required by the Administrator in the Award Agreement, executed and delivered a fully executed copy thereof to the Company, within a period of sixty (60) days (or such other period as the Administrator may specify) after the award date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Restrictions and Conditions*. The Restricted Stock Units granted pursuant to this Section 10 shall be subject to the following restrictions and conditions and any additional restrictions or conditions as determined by the Administrator at the time of grant or, subject to Code Section 409A, thereafter:

&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 Administrator may, in its sole discretion, provide for the lapse of restrictions in installments and may accelerate or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain Performance Goals, the Participant's termination of employment or service as a Non-Employee Director or Consultant of the Company or an Affiliate thereof, or the Participant's death or Disability.

&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) Participants holding Restricted Stock Units shall have no voting rights. A Restricted Stock Unit may, at the Administrator's discretion, carry with it a right to dividend equivalents, subject to Section 18 of the Plan. Such right would entitle the holder to be credited with an amount equal to all cash dividends paid on one Share while the Restricted Stock Unit is outstanding. The Administrator, in its discretion, may grant dividend equivalents from the date of grant or only after a Restricted Stock Unit is vested.

&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) The rights of Participants granted Restricted Stock Units upon termination of employment or service as a Non-Employee Director or Consultant of the Company or an Affiliate thereof terminates for any reason during the Restricted Period shall be set forth in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Settlement of Restricted Stock Units*. Settlement of vested Restricted Stock Units shall be made to Participants in the form of Shares, unless the Administrator, in its sole discretion, provides for the payment of the Restricted Stock Units in cash (or partly in cash and partly in Shares) equal to the value of the Shares that would otherwise be distributed to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Change in Control*. Notwithstanding anything herein to the contrary, upon a Change in Control, all outstanding Restricted Stock Units shall be subject to Section 12 of the Plan.

**Section 11. Other Share-Based or Cash-Based Awards.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrator is authorized to grant Awards to Participants in the form of Other Share-Based Awards or Other Cash-Based Awards, as deemed by the Administrator to be consistent with the purposes of the Plan and as evidenced by an Award Agreement. The Administrator shall determine the terms and conditions of such Awards, consistent with the terms of the Plan, at the date of grant or thereafter, including any Performance Goals and performance periods. Shares or other securities or property delivered pursuant to an Award in the nature of a purchase right granted under this Section 11 shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, Shares, other Awards, notes or other property, as the Administrator shall determine, subject to any required corporate action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The prospective recipient of an Other Share-Based Award or Other Cash-Based Award shall not have any rights with respect to such Award, unless and until such recipient has received an Award Agreement and, if required by the Administrator in the Award Agreement, executed and delivered a fully executed copy thereof to the Company, within a period of sixty (60) days (or such other period as the Administrator may specify) after the award date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything herein to the contrary, upon a Change in Control, all outstanding Other Share-Based Awards and Other Cash-Based Awards shall be subject to Section 12 of the Plan.

**Section 12. Change in Control.**

Unless otherwise expressly provided in an Award Agreement, Awards shall not accelerate solely upon the occurrence of a Change in Control. However, if a Participant's employment or service is terminated by the Company without Cause, or the Participant resigns for Good Reason (as defined in the applicable Award Agreement or other applicable agreement), in either case within twelve (12) months following a Change in Control, then such Award shall become fully vested (or, in the case of Performance-Based Awards, shall vest based on target or actual performance, as determined in good faith by the Administrator). If the Company is a party to an agreement that is reasonably likely to result in a Change in Control, such agreement may provide for: (i) the continuation of any Award by the Company, if the Company is the surviving corporation; (ii) the assumption of any Award by the surviving corporation or its parent or subsidiary; (iii) the substitution by the surviving corporation or its parent or subsidiary of equivalent awards for any Award, *provided, however*, that any such substitution with respect to Options and Stock Appreciation Rights shall occur in accordance with the requirements of Code Section 409A; or (iv) settlement of any Award for the Change in Control Price (less, to the extent applicable, the per share exercise or grant price), or, if the per share exercise or grant price equals or exceeds the Change in Control Price or if the Administrator determines that Award cannot reasonably become vested pursuant to its terms, such Award shall terminate and be canceled without consideration. To the extent that Restricted Stock, Restricted Stock Units or other Awards settle in Shares in accordance with their terms upon a Change in Control, such Shares shall be entitled to receive as a result of the Change in Control transaction the same consideration as the Shares held by stockholders of the Company as a result of the Change in Control transaction. For purposes of this Section 12, "<u>Change in Control Price</u>" shall mean (A) the price per Share paid to stockholders of the Company in the Change in Control transaction, or (B) the Fair Market Value of a Share upon a Change in Control, as determined by the Administrator. To the extent that the consideration paid in any such Change in Control transaction consists all or in part of securities or other non-cash consideration, the value of such securities or other non-cash consideration shall be determined in good faith by the Administrator.

**Section 13. Amendment and Termination.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board or the Committee may amend, alter or terminate the Plan, but no amendment, alteration, or termination shall be made that would adversely alter or impair the rights of a Participant under any Award theretofore granted without such Participant's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, (i) approval of the Company's stockholders shall be obtained for any amendment that would require such approval in order to satisfy the requirements of Code Section 422, if applicable, any rules of the stock exchange on which the Shares are traded or other applicable law, and (ii) without stockholder approval to the extent required by the rules of any applicable national securities exchange or inter-dealer quotation system on which the Shares are listed or quoted, except as otherwise permitted under Section 5 of the Plan, (A) no amendment or modification may reduce the Exercise Price of any Option or Stock Appreciation Right, (B) the Administrator may not cancel any outstanding Option or Stock Appreciation Right and replace it with a new Option or Stock Appreciation Right, another Award or cash and (C) the Administrator may not take any other action that is considered a "repricing" for purposes of the stockholder approval rules of the applicable securities exchange or inter-dealer quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the terms and conditions of the Plan and Code Section 409A, the Administrator may modify, extend or renew outstanding Awards under the Plan, or accept the surrender of outstanding Awards (to the extent not already exercised) and grant new Awards in substitution of them (to the extent not already exercised).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, no alteration, modification or termination of an Award will, without the prior written consent of the Participant, adversely alter or impair any rights or obligations under any Award already granted under the Plan.

**Section 14. Unfunded Status of Plan.**

The Plan is intended to constitute an "unfunded" plan for incentive compensation. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan. With respect to any payments not yet made or Shares not yet transferred to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the Company.

**Section 15. Deferrals of Payment.**

To the extent permitted by applicable law, the Administrator, in its sole discretion, may determine that the delivery of Shares or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award, shall be deferred. The Administrator may also, in its sole discretion, establish one or more programs under the Plan to permit selected Participants the opportunity to elect to defer receipt of any such consideration, including any applicable election procedures, the timing of such elections, the mechanisms for payments of amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program. Deferrals by Participants (or deferred settlement or payment required by the Administrator) shall be made in accordance with Code Section 409A, if applicable, and any other applicable law.

**Section 16. Withholding Taxes.**

Each Participant shall, no later than the date as of which the value of an Award first becomes includible in the gross income of such Participant for federal, state and/or local income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any federal, state, or local taxes of any kind, domestic or foreign, required by law or regulation to be withheld with respect to the Award. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant. Whenever cash is to be paid pursuant to an Award granted hereunder, the Company shall have the right to deduct therefrom an amount sufficient to satisfy any federal, state and local withholding tax requirements related thereto. Whenever Shares are to be delivered pursuant to an Award, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy any related federal, state and local taxes, domestic or foreign, to be withheld and applied to the tax obligations. With the approval of the Administrator, a Participant may satisfy the foregoing requirement by electing to have the Company withhold from delivery of Shares or by delivering already owned unrestricted Shares, in each case, having a value equal to the amount required to be withheld or other greater amount not exceeding the maximum statutory rate required to be collected on the transaction under applicable law, as applicable to the Participant, if such other greater amount would not, as determined by the Administrator, result in adverse financial accounting treatment (including in connection with the effectiveness of FASB Accounting Standards Update 2016-09). Such Shares shall be valued at their Fair Market Value on the date of which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such an election may be made with respect to all or any portion of the Shares to be delivered pursuant to an Award. The Company may also use any other method of obtaining the necessary payment or proceeds, as permitted by law, to satisfy its withholding obligation with respect to any Option or other Award.

**Section 17. Certain Forfeitures.**

The Administrator may specify in an Award Agreement that the Participant's rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition to the applicable vesting conditions of an Award. Such events may include, without limitation, breach of any non-competition, non-solicitation, confidentiality, or other restrictive covenants that are contained in an Award Agreement or that are otherwise applicable to the Participant, a termination of the Participant's employment for Cause, or other conduct by the Participant that is detrimental to the business or reputation of the Company and its Subsidiaries and/or its Affiliates.

**Section 18. Dividends; Dividend Equivalents.**

Notwithstanding anything in this Plan to the contrary, to the extent that an Award contains a right to receive dividends or dividend equivalents while such Award remains unvested, such dividends or dividend equivalents will be accumulated and paid once and to the extent that the underlying Award vests.

**Section 19. Non-United States Employees.**

Without amending the Plan, the Administrator may grant Awards to eligible persons residing in non-United States jurisdictions on such terms and conditions different from those specified in the Plan, including the terms of any award agreement or plan, adopted by the Company or any Subsidiary thereof to comply with, or take advantage of favorable tax or other treatment available under, the laws of any non-United States jurisdiction, as may in the judgment of the Administrator be necessary or desirable to foster and promote achievement of the purposes of the Plan and, in furtherance of such purposes the Administrator may make such modifications, amendments, procedures, sub-plans and the like as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company or its Subsidiaries operates or has employees.

**Section 20. Transfer of Awards.**

No purported sale, assignment, mortgage, hypothecation, transfer, charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any Award or any agreement or commitment to do any of the foregoing (each, a "<u>Transfer</u>") by any holder thereof in violation of the provisions of the Plan or an Award Agreement will be valid, except with the prior written consent of the Administrator, which consent may be granted or withheld in the sole discretion of the Administrator, and other than by will or by the laws of descent and distribution. Any purported Transfer of an Award or any economic benefit or interest therein in violation of the Plan or an Award Agreement shall be null and void *ab initio*, and shall not create any obligation or liability of the Company, and any person purportedly acquiring any Award or any economic benefit or interest therein transferred in violation of the Plan or an Award Agreement shall not be entitled to be recognized as a holder of such Shares. Unless otherwise determined by the Administrator in accordance with the provisions of the immediately preceding sentence, an Option may be exercised, during the lifetime of the Participant, only by the Participant or, during any period during which the Participant is under a legal disability, by the Participant's guardian or legal representative. Under no circumstances will a Participant be permitted to transfer an Option or Stock Appreciation Right to a third-party financial institution without prior stockholder approval.

**Section 21. No Right to Continued Employment or Service.**

The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued employment or service with the Company or an Affiliate thereof, as the case may be, nor shall it interfere in any way with the right of the Company or an Affiliate thereof to terminate the employment or service of any of its Eligible Recipients at any time.

**Section 22. Effective Date.**

The Plan was adopted by the Board on [●] and approved by the Company's stockholders on [●] (the "<u>Effective Date</u>"). The Plan shall remain in effect until terminated by the Board; *provided*, *however*, that no Awards may be granted under the Plan after the tenth (10th) anniversary of the earlier of (a) the date the Plan is adopted by the Board or (b) the Effective Date. Notwithstanding the foregoing, Awards granted prior to such date shall remain outstanding in accordance with their terms.

**Section 23. Code Section 409A.**

The intent of the parties is that payments and benefits under the Plan be either exempt from Code Section 409A or comply with Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and be administered consistent with such intent. Any payments described in the Plan that are due within the "short-term deferral period" as defined in Code Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided upon a "separation from service" to a Participant who is a "specified employee" shall be paid on the first business day after the date that is six (6) months following the Participant's separation from service (or upon the Participant's death, if earlier). In addition, for purposes of the Plan, each amount to be paid or benefit to be provided to the Participant pursuant to the Plan, which constitute deferred compensation subject to Code Section 409A, shall be construed as a separate identified payment for purposes of Code Section 409A. Nothing contained in the Plan or an Award Agreement shall be construed as a guarantee of any particular tax effect with respect to an Award. The Company does not guarantee that any Awards provided under the Plan will be exempt from or in compliance with the provisions of Code Section 409A, and in no event will the Company be liable for any or all portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant on account of any Award being subject to, but not in compliance with, Code Section 409A.

**Section 24. Code Section 280G.** 

The benefits that a Participant may be entitled to receive under the Plan and other benefits that a Participant is entitled to receive under other plans, agreements, and arrangements of the Company, may constitute "parachute payments" that are subject to Sections 280G and 4999 of the Code. Such "parachute payments" will be reduced if, and only to the extent that, a reduction will allow a Participant to receive a greater net after-tax amount than such Participant would receive absent a reduction.

**Section 25. Compliance with Laws.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligation of the Company to settle Awards in Shares or other consideration shall be subject to (i) all applicable laws, rules, and regulations, (ii) such approvals as may be required by governmental agencies or the applicable national securities exchange on which the Shares may be admitted, and (iii) policies maintained by the Company from time to time in order to comply with applicable laws, rules, regulations and corporate governance requirements, including, without limitation, with respect to insider trading restrictions. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any Shares pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel (if the Company has requested such an opinion), satisfactory to the Company, that such Shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the Shares to be offered or sold under the Plan. The Administrator shall have the authority to provide that all Shares or other securities of the Company issued under the Plan shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement, the federal securities laws, or the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted and any other applicable federal, state, local or non-U.S. laws, rules, regulations and other requirements, and the Administrator may cause a legend or legends to be put on certificates representing Shares or other securities of the Company issued under the Plan to make appropriate reference to such restrictions or may cause such Shares or other securities of the Company issued under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to add any additional terms or provisions to any Award granted under the Plan that it, in its sole discretion, deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrator may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company's acquisition of Shares from the public markets, the Company's issuance of Shares to the Participant, the Participant's acquisition of Shares from the Company and/or the Participant's sale of Shares to the public markets, illegal, impracticable or inadvisable. If the Administrator determines to cancel all or any portion of an Award in accordance with the foregoing, the Company shall, subject to any limitations or reductions as may be necessary to comply with Code Section 409A, (i) pay to the Participant an amount equal to the excess of (A) the aggregate Fair Market Value of the Shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date that the Shares would have been vested or issued, as applicable), over (B) the aggregate Exercise Price (in the case of an Option or Stock Appreciation Right) or any amount payable as a condition of issuance of Shares (in the case of any other Award), and such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof, or (ii) in the case of Restricted Stock, Restricted Stock Units or Other Share-Based Awards, provide the Participant with a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Restricted Stock, Restricted Stock Units or Other Share-Based Awards, or the underlying Shares in respect thereof.

**Section 26. Erroneously Awarded Compensation.**

The Plan and all Awards issued hereunder shall be subject to any compensation recovery and/or recoupment policy adopted by the Company to comply with applicable law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act or the Exchange Act, or to comport with good corporate governance practices, as such policies may be amended from time to time.

**Section 27. Governing Law.**

The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law of such state.

**Section 28. Plan Document Controls.**

The Plan and each Award Agreement together constitute the entire agreement with respect to the subject matter hereof and thereof; *provided*, that in the event of any inconsistency between the Plan and such Award Agreement, the terms and conditions of the Plan shall control.

## Exhibit 10.38

**Exhibit 10.38**

**<u>EMPLOYEE UNSECURED CREDIT FACILITY</u>**

**Dated: January 1, 2022**

**1. PROMISE TO PAY.** For value received, **Mark Thomas Lynn** (the "<u>Borrower</u>") promises to pay to the order of **Amass Brands, Inc.,** a Delaware C-Corp (the "<u>Lender</u>"), with an address at 927 S Santa Fe Avenue, Los Angeles. CA 90021 or as otherwise specified by the Lender or any transferee of this Note, in lawful money of the United States and immediately available funds, the original sum of $254,626.38. During the duration of the note, the Borrower can request a principal increase up to $3,000,000.00.

**2. INTEREST AND OTHER RIGHTS.**

(a) Interest shall be accrued on all unpaid amounts monthly at an annual rate of 1.6%.

(b) This Note shall remain in effect until terminated by either party upon 30 day written notice period.

**3. REPAYMENT.** The Borrower shall repay the full advanced amount upon the termination of this facility.

**[Signature Page Follows]**

**IN WITNESS WHEREOF,** the Borrower has duly executed this Employee Unsecured Credit Facility as of the date first above written.

---

| | |
|:---|:---|
| **Mark Thomas Lynn** | **Mark Thomas Lynn** |
| By: | /s/ Mark Thomas Lynn |
| Name: | Mark Thomas Lynn |
| Title: | CEO |
| **Amass Brands, Inc.** | **Amass Brands, Inc.** |
| By: | /s/ Mark Thomas Lynn |
| Name: | Mark Thomas Lynn |
| Title: | CEO |

---

## Exhibit 10.47

**Exhibit 10.47**

**Amass Brands Inc**

**2016** **Stock Plan**

**Adopted on September** **22, 2016**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| SECTION 1. | ESTABLISHMENT AND PURPOSE | 1 |
| SECTION 2. | ADMINISTRATION | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Committees of the Board of Directors | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Authority of the Board of Directors | 1 |
| SECTION 3. | ELIGIBILITY | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | General Rule | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Ten-Percent Stockholders | 2 |
| SECTION 4. | STOCK SUBJECT TO PLAN | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Basic Limitation | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Additional Shares | 2 |
| SECTION 5. | TERMS AND CONDITIONS OF AWARDS OR SALES | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Stock Grant or Purchase Agreement | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Duration of Offers and Nontransferability of Rights | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) | Purchase Price | 3 |
| SECTION 6. | TERMS AND CONDITIONS OF OPTIONS | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Stock Option Agreement | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Number of Shares | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) | Exercise Price | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) | Exercisability | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) | Basic Term | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) | Termination of Service (Except by Death) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) | Leaves of Absence | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) | Death of Optionee | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) | Pre-Exercise Restrictions on Transfer of Options or Shares | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) | No Rights as a Stockholder | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) | Modification, Extension and Assumption of Options | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) | Company's Right to Cancel Certain Options | 5 |
| SECTION 7. | PAYMENT FOR SHARES | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | General Rule | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Services Rendered | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) | Promissory Note | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) | Surrender of Stock | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) | Exercise/Sale | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) | Net Exercise | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) | Other Forms of Payment | 7 |

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i

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| | | |
|:---|:---|:---|
| SECTION 8. | ADJUSTMENT OF SHARES | 7.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | General | 7.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Corporate Transactions | 7.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) | Reservation of Rights | 8.0 |
| SECTION 9. | PRE-EXERCISE INFORMATION REQUIREMENT | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Application of Requirement | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Scope of Requirement | 9.0 |
| SECTION 10. | MISCELLANEOUS PROVISIONS | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Securities Law Requirements | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | No Retention Rights | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) | Treatment as Compensation | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) | Governing Law | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) | Conditions and Restrictions on Shares | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) | Tax Matters | 10.0 |
| SECTION 11. | DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) | Term of the Plan | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) | Right to Amend or Terminate the Plan | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) | Effect of Amendment or Termination | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) | Stockholder Approval | 11.0 |
| SECTION 12. | DEFINITIONS | 11.0 |

---

ii

**Amass Brands Inc** **2016 Stock Plan**

**SECTION 1. ESTABLISHMENT AND PURPOSE.**

The purpose of this Plan is to offer persons selected by the Company an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by acquiring Shares of the Company's Stock. The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares. Options granted under the Plan may be ISOs intended to qualify under Code Section 422 or Nonstatutory Options which are not intended to so qualify.

Capitalized terms are defined in Section 12.

**SECTION 2. ADMINISTRATION.**

&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) Committees of the Board of Directors.** The Plan may be administered by one or more Committees. Each Committee shall consist, as required by applicable law, of one or more members of the Board of Directors who have been appointed by the Board of Directors. Each Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it. If no Committee has been appointed, the entire Board of Directors shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function.

&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) Authority of the Board of Directors.** Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. Notwithstanding anything to the contrary in the Plan, with respect to the terms and conditions of awards granted to Participants outside the United States, the Board of Directors may vary from the provisions of the Plan to the extent it determines it necessary and appropriate to do so; provided that it may not vary from those Plan terms requiring stockholder approval pursuant to Section 11(d) below. All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons deriving their rights from a Purchaser or Optionee.

**SECTION 3. ELIGIBILITY.**

&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) General Rule.** Only Employees, Outside Directors and Consultants shall be eligible for the grant of Nonstatutory Options or the direct award or sale of Shares.<sup>1</sup> Only Employees shall be eligible for the grant of ISOs.

<sup>1</sup> Note that special considerations apply if the Company proposes to grant awards to an Employee or Consultant of a Parent company.

&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) Ten-Percent Stockholders.** A person who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible for the grant of an ISO unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the Date of Grant and (ii) such ISO by its terms is not exercisable after the expiration of five years from the Date of Grant. For purposes of this Subsection (b), in determining stock ownership, the attribution rules of Code Section 424(d) shall be applied.

**SECTION 4. STOCK SUBJECT TO PLAN.**

&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) Basic Limitation.** Not more than 4,666,667 Shares may be issued under the Plan, subject to Subsection (b) below and Section 8(a).<sup>2</sup> All of these Shares may be issued upon the exercise of ISOs. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan may not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. Shares offered under the Plan may be authorized but unissued Shares or treasury 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;**(b) Additional Shares.** In the event that Shares previously issued under the Plan are reacquired by the Company, such Shares shall be added to the number of Shares then available for issuance under the Plan. In the event that Shares that otherwise would have been issuable under the Plan are withheld by the Company in payment of the Purchase Price, Exercise Price or withholding taxes, such Shares shall remain available for issuance under the Plan. In the event that an outstanding Option or other right for any reason expires or is canceled, the Shares allocable to the unexercised portion of such Option or other right shall be added to the number of Shares then available for issuance under the Plan.

**SECTION 5. TERMS AND CONDITIONS OF AWARDS OR 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;**(a) Stock Grant or Purchase Agreement.** Each award of Shares under the Plan shall be evidenced by a Stock Grant Agreement between the Grantee and the Company. Each sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Grant Agreement or Stock Purchase Agreement. The provisions of the various Stock Grant Agreements and Stock Purchase Agreements entered into under the Plan need not be identical.

&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) Duration of Offers and Nontransferability of Rights.** Any right to purchase Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within 30 days (or such other period as may be specified in the Award Agreement) after the grant of such right was communicated to the Purchaser by the Company. Such right is not transferable and may be exercised only by the Purchaser to whom such right was granted.

<sup>2</sup> Please refer to Exhibit A for a schedule of the initial share reserve and any subsequent increases in the reserve.

&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) Purchase Price.** The Board of Directors shall determine the Purchase Price of Shares to be offered under the Plan at its sole discretion. The Purchase Price shall be payable in a form described in Section 7.

**SECTION 6. TERMS AND CONDITIONS OF OPTIONS.**

&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) Stock Option Agreement.** Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. The Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Board of Directors deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.

&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) Number of Shares.** Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option.

&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) Exercise Price.** Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an Option shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant, and in the case of an ISO a higher percentage may be required by Section 3(b). Subject to the preceding sentence, the Exercise Price shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form described in Section 7. This Subsection (c) shall not apply to an Option granted pursuant to an assumption of, or substitution for, another option in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO).

&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) Exercisability.** Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. No Option shall be exercisable unless the Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company or (ii) otherwise agrees to be bound by the terms of the Stock Option Agreement. The Board of Directors shall determine the exercisability provisions of the Stock Option Agreement at its sole discretion.

&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) Basic Term.** The Stock Option Agreement shall specify the term of the Option. The term shall not exceed 10 years from the Date of Grant, and in the case of an ISO, a shorter term may be required by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire.

&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) Termination of Service (Except by Death).** If an Optionee's Service terminates for any reason other than the Optionee's death or termination of Optionee's Service by the Company for Cause, then the Optionee's Options shall expire on the earliest of the following dates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 expiration date determined pursuant to Subsection (e) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The date three months after the termination of the Optionee's Service for any reason other than Disability, or such earlier or later date as the Board of Directors may determine (but in no event earlier than 30 days after the termination of the Optionee's Service); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The date six months after the termination of the Optionee's Service by reason of Disability, or such later date as the Board of Directors may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the foregoing, should Optionee's Service be terminated by the Company for Cause, then all outstanding Options, whether vested or unvested, held by the Optionee shall terminate immediately and cease to remain outstanding.

The Optionee may exercise all or part of the Optionee's Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee's Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee's Service terminated (or vested as a result of the termination). The balance of such Options shall lapse when the Optionee's Service terminates. In the event that the Optionee dies after the termination of the Optionee's Service but before the expiration of the Optionee's Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee's estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee's Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee's Service terminated (or vested as a result of the 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;**(g) Leaves of Absence.** For purposes of Subsection (f) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).

&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) Death of Optionee.** If an Optionee dies while the Optionee is in Service, then the Optionee's Options shall expire on the earlier of the following dates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 expiration date determined pursuant to Subsection (e) above; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The date 12 months after the Optionee's death, or such earlier or later date as the Board of Directors may determine (but in no event earlier than six months after the Optionee's death).

All or part of the Optionee's Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionee's estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee's death (or became exercisable as a result of the death) and the underlying Shares had vested before the Optionee's death (or vested as a result of the Optionee's death). The balance of such Options shall lapse when the Optionee dies.

&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) Pre-Exercise Restrictions on Transfer of Options or Shares.** An Option shall be transferable by the Optionee only by (i) a beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as provided in the next sentence. If the applicable Stock Option Agreement so provides, a Nonstatutory Option shall also be transferable by gift or domestic relations order to a Family Member of the Optionee. An ISO may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee's guardian or legal representative. In addition, an Option shall comply with all conditions of Rule 12h-1(f)(1) under the Exchange Act until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act. Such conditions include, without limitation, the transferability restrictions set forth in Rule 12h-l(f)(l)(iv) and (v) under the Exchange Act, which shall apply to an Option and, prior to exercise, to the Shares to be issued upon exercise of such Option during the period commencing on the Date of Grant and ending on the earlier of (i) the date when the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act or (ii) the date when the Company makes a determination that it will cease to rely on the exemption afforded by Rule 12h-1(f)(1) under the Exchange Act. During such period, an Option and, prior to exercise, the Shares to be issued upon exercise of such Option shall be restricted as to any pledge, hypothecation or other transfer by the Optionee, including any short position, any "put equivalent position" (as defined in Rule 16a-1(h) under the Exchange Act) or any "call equivalent position" (as defined in Rule 16a-1(b) under the Exchange Act).

&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) No Rights as a Stockholder.** An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee's Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms of such Option.

&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) Modification, Extension and Assumption of Options.** Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options or a different type of award for the same or a different number of Shares and at the same or a different Exercise Price (if applicable). The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionee's rights or increase the Optionee's obligations under such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Company's Right to Cancel Certain Options.** Any other provision of the Plan or a Stock Option Agreement notwithstanding, the Company shall have the right at any time to cancel an Option that was not granted in compliance with Rule 701 under the Securities Act. Prior to canceling such Option, the Company shall give the Optionee not less than 30 days' notice in writing. If the Company elects to cancel such Option, it shall deliver to the Optionee consideration with an aggregate Fair Market Value equal to the excess of (i) the Fair Market Value of the Shares subject to such Option as of the time of the cancellation over (ii)the Exercise Price of such Option. The consideration may be delivered in the form of cash or cash equivalents, in the form of Shares, or a combination of both. If the consideration would be a negative amount, such Option may be cancelled without the delivery of any consideration.

**SECTION 7. PAYMENT FOR 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;**(a) General Rule.** The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as otherwise provided in this Section 7. In addition, the Board of Directors in its sole discretion may also permit payment through any of the methods described in (b) through (g) 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;**(b) Services Rendered.** Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the award.

&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) Promissory Note.** All or a portion of the Purchase Price or Exercise Price (as the case may be) of Shares issued under the Plan may be paid with a full-recourse promissory note. The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other provisions of such note.

&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) Surrender of Stock.** All or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value as of the date when the Option is exercised.

&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) Exercise/Sale.** If the Stock is publicly traded, all or part of the Exercise Price and any withholding taxes may be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company.

&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 Exercise.** An Option may permit exercise through a "net exercise" arrangement pursuant to which the Company will reduce the number of Shares issued upon exercise by the largest whole number of Shares having an aggregate Fair Market Value (determined by the Board of Directors as of the exercise date) that does not exceed the aggregate Exercise Price or the sum of the aggregate Exercise Price plus all or a portion of the minimum amount required to be withheld under applicable tax law (with the Company accepting from the Optionee payment of cash or cash equivalents to satisfy any remaining balance of the aggregate Exercise Price and, if applicable, any additional withholding obligation not satisfied through such reduction in Shares); *provided* that to the extent Shares subject to an Option are withheld in this manner, the number of Shares subject to the Option following the net exercise will be reduced by the sum of the number of Shares withheld and the number of Shares delivered to the Optionee as a result of the exercise.

&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) Other Forms of Payment.** To the extent that an Award Agreement so provides, the Purchase Price or Exercise Price of Shares issued under the Plan may be paid in any other form permitted by the Delaware General Corporation Law, as amended.

**SECTION 8. ADJUSTMENT OF 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;**(a) General.** In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a reclassification, or any other increase or decrease in the number of issued shares of Stock effected without receipt of consideration by the Company, proportionate adjustments shall automatically be made in each of (i) the number and kind of Shares available for future grants under Section 4, (ii) the number and kind of Shares covered by each outstanding Option and any outstanding and unexercised right to purchase Shares that has not yet expired pursuant to Section 5(b), (iii) the Exercise Price under each outstanding Option and the Purchase Price applicable to any unexercised stock purchase right described in clause (ii) above, and (iv) any repurchase price that applies to Shares granted under the Plan pursuant to the terms of a Company repurchase right under the applicable Award Agreement. In the event of a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a recapitalization, a spin-off, or a similar occurrence, the Board of Directors at its sole discretion may make appropriate adjustments in one or more of the items listed in clauses (i) through (iv) above; provided, however, that the Board of Directors shall in any event make such adjustments as may be required by Section 25102(o) of the California Corporations Code. No fractional Shares shall be issued under the Plan as a result of an adjustment under this Section 8(a), although the Board of Directors in its sole discretion may make a cash payment in lieu of fractional 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;**(b) Corporate Transactions.** In the event that the Company is a party to a merger or consolidation, or in the event of a sale of all or substantially all of the Company's stock or assets, all Shares acquired under the Plan and all Options and other Plan awards outstanding on the effective date of the transaction shall be treated in the manner described in the definitive transaction agreement (or, in the event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by the Board of Directors in its capacity as administrator of the Plan, with such determination having final and binding effect on all parties), which agreement or determination need not treat all Options and awards (or all portions of an Option or an award) in an identical manner. The treatment specified in the transaction agreement may include (without limitation) one or more of the following with respect to each outstanding Option or award:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Continuation of the Option or award by the Company (if the Company is the surviving corporation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Assumption of the Option by the surviving corporation or its parent in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Substitution by the surviving corporation or its parent of a new option for the Option in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Cancellation of the Option and a payment to the Optionee with respect to each Share subject to the portion of the Option that is vested as of the transaction date equal to the excess of (A) the value, as determined by the Board of Directors in its absolute discretion, of the property (including cash) received by the holder of a share of Stock as a result of the transaction, over (B) the per-Share Exercise Price of the Option (such excess, the "Spread"). Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent having a value equal to the Spread. In addition, any escrow, holdback, earn-out or similar provisions in the transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders of Stock. If the Spread applicable to an Option is zero or a negative number, then the Option may be cancelled without making a payment to the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Cancellation of the Option without the payment of any consideration; provided that the Optionee shall be notified of such treatment and given an opportunity to exercise the Option (to the extent the Option is vested or becomes vested as of the effective date of the transaction) during a period of not less than five (5) business days preceding the effective date of the transaction, unless (A) a shorter period is required to permit a timely closing of the transaction and (B) such shorter period still offers the Optionee a reasonable opportunity to exercise the Option. Any exercise of the Option during such period may be contingent upon the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Suspension of the Optionee's right to exercise the Option during a limited period of time preceding the closing of the transaction if such suspension is administratively necessary to permit the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Termination of any right the Optionee has to exercise the Option prior to vesting in the Shares subject to the Option (i.e., "early exercise"), such that following the closing of the transaction the Option may only be exercised to the extent it is vested.

For the avoidance of doubt, the Board of Directors has discretion to accelerate, in whole or part, the vesting and exercisability of an Option or other Plan award in connection with a corporate transaction covered by this Section 8(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) Reservation of Rights.** Except as provided in this Section 8, a Participant shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any class. Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

**SECTION 9. PRE-EXERCISE INFORMATION REQUIREMENT.**

&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) Application of Requirement.** This Section 9 shall apply only during a period that (i) commences when the Company begins to rely on the exemption described in Rule 12h-1(f)(1) under the Exchange Act, as determined by the Company in its sole discretion, and (ii) ends on the earlier of (A) the date when the Company ceases to rely on such exemption, as determined by the Company in its sole discretion, or (B) the date when the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act. In addition, this Section 9 shall in no event apply to an Optionee after he or she has fully exercised all of his or her Options.

&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) Scope of Requirement.** The Company shall provide to each Optionee the information described in Rule 701(e)(3), (4) and (5) under the Securities Act. Such information shall be provided at six-month intervals, and the financial statements included in such information shall not be more than 180 days old. The foregoing notwithstanding, the Company shall not be required to provide such information unless the Optionee has agreed in writing, on a form prescribed by the Company, to keep such information confidential.

**SECTION 10. MISCELLANEOUS PROVISIONS.**

&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) Securities Law Requirements.** Shares shall not be issued under the Plan unless, in the opinion of counsel acceptable to the Board of Directors, the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company's securities may then be traded. The Company shall not be liable for a failure to issue Shares as a result of such requirements.

&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) No Retention Rights.** Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.

&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) Treatment as Compensation.** Any compensation that an individual earns or is deemed to earn under this Plan shall not be considered a part of his or her compensation for purposes of calculating contributions, accruals or benefits under any other plan or program that is maintained or funded by the Company, a Parent or a Subsidiary.

&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) Governing Law.** The Plan and all awards, sales and grants under the Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.

&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) Conditions and Restrictions on Shares.** Shares issued under the Plan shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions as the Board of Directors may determine. Such conditions and restrictions shall be set forth in the applicable Award Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. In addition, Shares issued under the Plan shall be subject to conditions and restrictions imposed either by applicable law or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to maintain any statutory, regulatory or tax advantage.

&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) Tax Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) As a condition to the award, grant, issuance, vesting, purchase, exercise or transfer of any award, or Shares issued pursuant to any award, granted under this Plan, the Participant shall make such arrangements as the Board of Directors may require or permit for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Unless otherwise expressly set forth in an Award Agreement, it is intended that awards granted under the Plan shall be exempt from Code Section 409A, and any ambiguity in the terms of an Award Agreement and the Plan shall be interpreted consistently with this intent. To the extent an award is not exempt from Code Section 409A (any such award, a **"409A Award"),** any ambiguity in the terms of such award and the Plan shall be interpreted in a manner that to the maximum extent permissible supports the award's compliance with the requirements of that statute. Notwithstanding anything to the contrary permitted under the Plan, in no event shall a modification of an Award not already subject to Code Section 409A be given effect if such modification would cause the Award to become subject to Code Section 409A unless the parties explicitly acknowledge and consent to the modification as one having that effect. A 409A Award shall be subject to such additional rules and requirements as specified by the Board of Directors from time to time in order for it to comply with the requirements of Code Section 409A. In this regard, if any amount under a 409A Award is payable upon a "separation from service" to an individual who is considered a "specified employee" (as each term is defined under Code Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant's separation from service or (ii) the Participant's death, but only to the extent such delay is necessary to prevent such payment from being subject to Section 409A(a)(1). In addition, if a transaction subject to Section 8(b) constitutes a payment event with respect to any 409A Award, then the transaction with respect to such award must also constitute a "change in control event" as defined in Treasury Regulation Section 1.409A- 3(i)(5) to the extent required by Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither the Company nor any member of the Board of Directors shall have any liability to a Participant in the event an award held by the Participant fails to achieve its intended characterization under applicable tax law.

**SECTION 11. DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL.**

&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) Term of the Plan.** The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to approval of the Company's stockholders under Subsection (d) below. The Plan shall terminate automatically 10 years after the later of (i) the date when the Board of Directors adopted the Plan or (ii) the date when the Board of Directors approved the most recent increase in the number of Shares reserved under Section 4 that was also approved by the Company's stockholders. The Plan may be terminated on any earlier date pursuant to Subsection (b) 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;**(b) Right to Amend or Terminate the Plan.** Subject to Subsection (d) below, the Board of Directors may amend, suspend or terminate the Plan at any time and 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;**(c) Effect of Amendment or Termination.** No Shares shall be issued or sold and no Option granted under the Plan after the termination thereof, except upon exercise of an Option (or any other right to purchase Shares) granted under the Plan prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan.

&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) Stockholder Approval.** To the extent required by applicable law, the Plan will be subject to approval of the Company's stockholders within 12 months of its adoption date. To the extent required by applicable law, any amendment of the Plan will be subject to the approval of the Company's stockholders within 12 months of the amendment date if it (i) increases the number of Shares available for issuance under the Plan (except as provided in Section 8), or (ii) materially changes the class of persons who are eligible for the grant of ISOs. In addition, an amendment effecting any other material change to the Plan terms will be subject to approval of the Company's stockholder only if required by applicable law. Stockholder approval shall not be required for any other amendment of the Plan.

**SECTION 12. DEFINITIONS.**

&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) **"Award Agreement"** means a Stock Grant Agreement, Stock Option Agreement or Stock Purchase 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) **"Board of Directors"** means the Board of Directors of the Company, as constituted from time to time.

&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) **"Cause"** means with respect to any Participant, (i) the commission of any act of fraud, embezzlement or dishonesty by the Participant, (ii) any unauthorized use or disclosure by such person of confidential information or trade secrets of the Company (or any Parent or Subsidiary), (iii) any other intentional misconduct by such person materially and adversely affecting the business or affairs of the Company (or any Parent or Subsidiary), (iv) any material violation of any written Company policy, or (v) "Cause" as defined in any employment or engagement agreement between the Participant and the Company.

&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) **"Code"** means the Internal Revenue Code of 1986, as amended.

&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) **"Committee"** means a committee of the Board of Directors, as described in Section 2(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;(f) **"Company"** means Amass Brands Inc, a Delaware corporation.

&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) **"Consultant"** means a person, excluding Employees and Outside Directors, who performs bona fide services for the Company, a Parent<sup>3</sup> or a Subsidiary as a consultant or advisor and who qualifies as a consultant or advisor under Rule 701(c)(1) of the Securities Act or under Instruction A.1.(a)(1) of Form S-8 under the Securities Act.

&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) **"Date of Grant"** means the date of grant specified in the applicable Stock Option Agreement, which date shall be the later of (i) the date on which the Board of Directors resolved to grant the Option or (ii) the first day of the Optionee's Service.

&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) **"Disability"** means that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment.

&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) **"Employee"** means any individual who is a common-law employee of the Company, a Parent<sup>4</sup> or a Subsidiary.

&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) **"Exchange Act"** means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **"Exercise Price"** means the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the applicable Stock Option 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;(m) **"Fair Market Value"** means the fair market value of a Share, as determined by the Board of Directors in good faith. Such determination shall be conclusive and binding on all persons.

&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) **"Family Member"** means (i) any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, (ii) any person sharing the Optionee's household (other than a tenant or employee), (iii) a trust in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest, (iv) a foundation in which persons described in Clause (i) or (ii) or the Optionee control the management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or the Optionee own more than 50% of the voting interests.

<sup>3</sup> Note that special considerations apply if the Company proposes to grant awards to consultant or advisor of a Parent company.

<sup>4</sup> Note that special considerations apply if the Company proposes to grant awards to an Employee of a Parent company.

&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) **"Grantee"** means a person to whom the Board of Directors has awarded Shares under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"ISO"** means an Option that qualifies as an incentive stock option as described in Code Section 422(b). Notwithstanding its designation as an ISO, an Option that does not qualify as an ISO under applicable law shall be treated for all purposes as a Nonstatutory Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **"Nonstatutory Option"** means an Option that does not qualify as an incentive stock option as described in Code Section 422(b) or 423(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;(r) **"Option"** means an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase 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;(s) **"Optionee"** means a person who holds an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **"Outside Director"** means a member of the Board of Directors who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **"Parent"** means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such 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;(v) **"Participant"** means a Grantee, Optionee or Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **"Plan"** means this Amass Brands Inc 2016 Stock Plan.

&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) **"Purchase Price"** means the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **"Purchaser"** means a person to whom the Board of Directors has offered the right to purchase Shares under the Plan (other than upon exercise of an Option).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **"Securities Act"** means the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **"Service"** means service as an Employee, Outside Director or Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **"Share"** means one share of Stock, as adjusted in accordance with Section 8 (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **"Stock"** means the Common Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **"Stock Grant Agreement"** means the agreement between the Company and a Grantee who is awarded Shares under the Plan that contains the terms, conditions and restrictions pertaining to the award of such 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;(ee) **"Stock Option Agreement"** means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to the Optionee's Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **"Stock Purchase Agreement"** means the agreement between the Company and a Purchaser who purchases Shares under the Plan that contains the terms, conditions and restrictions pertaining to the purchase of such 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;(gg) **"Subsidiary"** means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

**Exhibit** **A**

**Schedule of Shares Reserved for Issuance under the Plan**

---

| | | | |
|:---|:---|:---|:---|
| **Date of Board**<br>**Approval** | **Date of Stockholder**<br>**Approval** | **Number of**<br>**Shares Added** | **Cumulative Number**<br>**of Shares** |
| September 22, 2016 | September 22, 2016 | Not Applicable | 4666667 |

---

## Exhibit 99.1

**EXHIBIT 99.1**

**amass brands INC.<br> AUDIT COMMITTEE CHARTER**

I. <u>Purpose</u>.

The Audit Committee (the "**Committee**") is appointed by the Board of Directors (the "**Board**") of AMASS Brands Inc. (the "**Company**"). The purpose of the Committee is to assist the Board in fulfilling its oversight responsibility relating to (i) the integrity of the Company's and its subsidiaries' financial statements and financial reporting process and the Company's and its subsidiaries' systems of internal accounting and financial controls, (ii) the performance of the internal and external audit services function, (iii) the annual independent audit of the Company's and subsidiaries' financial statements, the engagement of the independent auditors and the evaluation of the independent auditors' qualifications, independence and performance, (iv) the compliance by the Company with legal and regulatory requirements, including the Company's disclosure of controls and procedures, (v) the evaluation of enterprise risk issues, and (vi) the fulfillment of the other responsibilities set out herein.

The Audit Committee shall prepare the report required by the U.S. Securities and Exchange Commission (the "**SEC**") to be included in the Company's public filing.

II. <u>Membership, Structure and Qualifications.</u>

<u>Membership and Structure</u>. Immediately prior to the effectiveness of the Company's registration statement on Form S-1 relating to the Company's direct listing of its common stock (the "**Effective Time**"), the Committee shall not consist of fewer than three (3) or more than seven (7) directors. At all times prior to the Effective Time, the Committee shall not consist of fewer than one (1) or more than (3) directors. The Committee members shall be elected annually by the Board for terms of one (1) year, or until their successors shall be duly elected and qualified.

<u>Qualifications</u>. All Committee members shall meet all applicable independence requirements of the Nasdaq Stock Market and any successor thereto ("**Nasdaq**") and of Rule 10A-3(b)(1) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), subject to the exemptions provided in Rule 10A-3(c) under the Exchange Act, and other applicable rules and regulations of the SEC. Additionally, no member of the Committee shall have participated in the preparation of the financial statements of the Company or any current subsidiary of the Company at any time during the preceding three (3) years and all members of the Committee must be able to read and understand fundamental financial statements, including a balance sheet, income statement, and cash flow statement.

<u>Chairman</u>. Unless the Chairman of the Committee (the "**Chairman**") is elected by the full Board, the Committee members may designate a Chairman.

<u>Resignation, Removal and Replacement</u>. Any director may resign from the Committee at any time upon notice of such resignation to the Company. An independent director who ceases to be independent under Nasdaq requirements shall promptly resign to the extent required for the Company to comply with applicable laws, rules and regulations. The Board shall have the power at any time to remove a member of the Committee with or without cause, to fill all vacancies, and to designate alternate members, upon the recommendation of the Committee, to replace any absent or disqualified members, so long as the Committee shall at all times have at least three (3) members after the Effective Time and be composed solely of independent board members.

<u>Financial Expert</u>. As a matter of best practices, the Committee will endeavor to have at least one of its members with the requisite qualifications to be designated by the Board as an "audit committee financial expert," as such term is defined by Item 407(d)(5) of Regulation S-K. The Committee shall report to the Board for further action as appropriate, including, but not limited to, a determination by the Board that the Committee membership includes or does not include one or more "audit committee financial experts" and any related disclosure to be made concerning this matter. The designation of a member of the Committee as an "audit committee financial expert" will not increase the duties, obligations or liability of the designee as compared to the duties, obligations and liability imposed on the designee as a member of the Committee and of the Board. If the Committee does not have an "audit committee financial expert," then, in accordance with Nasdaq requirements, at least one member of the Committee must be financially sophisticated, in that he or she has past employment experience in finance or accounting, requisite professional certification in accounting, or any other comparable experience or background which results in the individual's financial sophistication, including but not limited to being or having been a chief executive officer, chief financial officer, other senior officer with financial oversight responsibilities.

III. <u>Meetings and Other Actions.</u>

All meetings of and other actions by the Committee shall be held and taken pursuant to the bylaws of the Company (as may be amended from time to time, the "**Bylaws**"), including provisions governing notice of meetings and waiver thereof, the number of Committee members required to take action at meetings and by written consent, and other related matters. The Committee may invite any director who is not a member of the Committee, management, counsel, representatives of service providers or other persons to attend meetings and provide information as the Committee, in its sole discretion, considers appropriate.

Unless otherwise authorized by the Board, the Committee shall not delegate any of its authority to any subcommittee.

IV. <u>Goals, Responsibilities and Authority.</u>

The function of the Committee is to oversee the Company's management and independent accountants in the production of the Company's financial statements, as well as all controls and procedures relating thereto. The Company's management is primarily responsible for the preparation and presentation of the Company's financial statements and for maintaining appropriate systems for accounting and financial reporting principles and policies and internal controls and procedures that provide for compliance with accounting standards and applicable laws and regulations. The Company's independent accountants are primarily responsible for planning and carrying out a proper audit of the Company's annual financial statements, reviewing the Company's unaudited interim financial statements and auditing management's assessment of effectiveness of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (the "**PCAOB**") and other procedures. The independent accountants are accountable to the Board and the Committee, as representatives of the Company's stockholders. The Board and the Committee have the ultimate authority and responsibility to select, evaluate and, where appropriate, replace the Company's independent accountants. For purposes of this Charter, the term "**management**" means the appropriate officers of each of the Company and its subsidiaries and the phrase "**internal accounting staff**" means the appropriate officers and employees of each of the Company and its subsidiaries.

In fulfilling their responsibilities hereunder, it is recognized that members of the Committee are not full-time employees of the Company or members of management and are not, and do not represent themselves to be, accountants or auditors by profession. As such, it is not the duty or the responsibility of the Committee or its members to conduct "field work" or other types of auditing or accounting reviews or procedures to determine if the financial statements are complete and accurate and whether they have been prepared in accordance with generally accepted accounting principles in effect in the United States ("**GAAP**") or to set auditor independence standards.

Each member of the Committee shall be entitled to rely on (i) the integrity of those persons within and outside the Company and management from which it receives information, (ii) the accuracy of the financial and other information provided to the Committee absent actual knowledge to the contrary (which shall be promptly reported to the Board), and (iii) statements made by the officers and employees of the Company and its subsidiaries or other third parties as to any information technology, internal and external audit and other non-audit services provided by the independent accountants to the Company. In carrying out its responsibilities, the Committee's policies and procedures shall be adapted, as appropriate, to best react to changing markets and regulatory environments.

Nothing in this Charter shall be interpreted as diminishing or derogating the duties, responsibilities or obligations of the Board. Subject to the requirements of the Bylaws, the Committee shall:

Retention of Independent Accountants and Approval of Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Select or retain each year a firm or firms of independent accountants to audit the accounts and records of the Company and its subsidiaries, to approve the terms of compensation of such independent accountants (including negotiating and executing on behalf of the Company engagement letters) and to terminate such independent accountants as it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Pre-approve any independent accountants' engagement to render audit and/or permissible non-audit services (including the fees charged and proposed to be charged by the independent accountants), subject to the *de minimus* exceptions under Section 10A(i)(1)(B) of the Exchange Act, and as otherwise required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Committee may delegate its pre-approval responsibilities to one (1) or more of its members. The member(s) to whom such responsibility is delegated must report, for informational purposes only, any pre-approval decisions to the Committee at its next scheduled meeting.

Oversight of the Independent Accountants

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Obtain and review a report from the independent accountants at least annually regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the independent accountants' internal quality-control procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any material issues raised by the most recent internal quality-control review, peer review, or review
by the PCAOB, of the firm, or by any inquiry or investigation by governmental or professional authorities within the preceding five (5)
years respecting one (1) or more independent audits carried out by the firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any steps taken with regard to the issues identified in (a) or (b) above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all relationships between the independent accountants and the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Obtain from the independent accountants annually a formal written statement of the fees billed in each of the last two (2) fiscal years for each of the following categories of services rendered by the independent accountants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the audit of the Company's annual financial statements and the reviews of the financial statements
included in the Company's quarterly reports or services that are normally provided by the independent accountants in connection
with statutory or regulatory filings or engagements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that are reasonably related to the performance of the audit or review of the Company's financial
statements, in the aggregate and by each service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) tax compliance, tax advice and tax planning services, in the aggregate and by each service; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all other products and services rendered by the independent accountants, in the aggregate and by each
service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Evaluate the qualifications, performance and independence of the independent accountants, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evaluating the performance of the lead (or coordinating) audit partner, and the quality and depth of the
professional staff assigned to the Company and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) considering whether the accountant's quality controls are appropriate and adequate in light of the
standards and requirements established by the PCAOB and under applicable law at such time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) considering whether the provision of permitted non-audit services is compatible with maintaining the accountant's
independence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Consider the opinions of management and the internal accounting staff in connection with the foregoing responsibilities. The Committee shall present its conclusions with respect to the independent accountants to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Monitor the rotation required by Section 10A(j) of the Exchange Act of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Oversee compliance with the following guidelines relating to the Company's hiring of employees or former employees of the independent accountants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no member of the audit team that is auditing the Company can be hired by the Company in a financial reporting
oversight role (as defined in the SEC's Regulation S-X) for a period of one (1) year following association with that audit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company's Chief Financial Officer shall report annually to the Committee the profile of the
preceding year's hires from the independent accountants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Consider the effect on the Company of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any changes in accounting principles or practices proposed by management or the independent accountants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any changes in service providers, such accountants, that could impact the Company's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any changes in schedules (such as fiscal or tax year-end changes) or structures or transactions that require
special accounting activities, services or resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Review any presentations or reports prepared by the independent accountants with respect to any applicable Federal tax matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Annually review a formal written statement from the independent accountants delineating all relationships between the independent accountants and the Company, consistent with applicable requirements and standards of the SEC and the PCAOB, and discuss with the independent accountants their methods and procedures for ensuring independence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Evaluate the efficiency and appropriateness of the services provided by the independent accountants, including any significant difficulties with the audit or any restrictions on the scope of their activities or access to required records, data and information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Interact with the independent accountants, including reviewing and, where necessary, resolving any problems or difficulties the independent accountants may have encountered in connection with the annual audit or otherwise, any management letters provided to the Committee and the Company's responses. Such review shall address any difficulties encountered in the course of the audit work, including any restrictions on the scope of activities or access to required information, any disagreements that have arisen between management and the independent accountants regarding financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Review with the independent accountants the effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on the financial statements of the Company.

Financial Statements and Disclosure Matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Review and discuss with management and the independent accountants the annual audited financial statements, including disclosures made in management's discussion and analysis of financial condition and results of operations, and recommend to the Board whether the audited financial statements should be included in the Company's Annual Report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Review and discuss with management and the independent accountants the Company's quarterly financial statements, including disclosures made in management's discussion and analysis of financial condition and results of operations, prior to the filing of its Quarterly Reports on Form 10-Q, including the results of the independent accountants' reviews of the quarterly financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Review with the Company's Chief Executive Officer, Chief Financial Officer and independent accountants, the adequacy and effectiveness of the Company's and its subsidiaries' internal control over financial reporting and review periodically, but in no event less frequently than quarterly, management's conclusions about the effectiveness of such internal control over financial reporting, including any significant deficiencies and material weaknesses in, or material non-compliance with, such internal control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Review with the Company's Chief Executive Officer, Chief Financial Officer and independent accountants, the adequacy and effectiveness of the Company's and its subsidiaries' disclosure controls and procedures and review periodically, but in no event less frequently than quarterly, management's conclusions about the effectiveness of such disclosure controls and procedures, including any significant deficiencies in, or material non-compliance with, such controls and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Review disclosures made to the Committee by the Company's Chief Executive Officer and Chief Financial Officer, or persons performing similar roles, during their certification process for the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q concerning any significant deficiencies in the design or operation of disclosure controls and procedures and, when applicable, internal control over financial reporting, or material weaknesses in such control, and any fraud involving management or other employees who have a significant role in the Company's disclosure controls and procedures and internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Review and discuss the types of information to be disclosed and the types of presentation to be made in connection with earnings releases by the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Review and discuss the types of financial and non-financial information and earning guidance to be provided to analysts and ratings agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Meet with the Company's independent accountants at least four times during each fiscal year, including private meetings, and review written materials prepared by the independent accountants, as appropriate. At these meetings, the Committee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review the arrangements for and the scope of the annual audit and any special audits or other special
permissible services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review the Company's financial statements and to discuss any matters of concern arising in connection
with audits of such financial statements, including any adjustments to such statements recommended by the independent accountants or any
other results of the audits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consider and review, as appropriate and in consultation with the independent accountants, the appropriateness
and adequacy of the Company's financial and accounting policies, internal control over financial reporting and, as appropriate,
the internal controls of key service providers, and to review management's responses to the independent accountants' comments
relating to those policies, procedures and controls, and to take any necessary action in light of material control deficiencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) review with the independent accountants their opinions as to the fairness of the financial statements;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) review and discuss quarterly reports from the independent accountants relating to: (1) all critical accounting
policies and practices to be used; (2) all alternative treatment of financial information within GAAP that have been discussed with management,
ramifications of the use of such alternative disclosures and treatments and the treatment preferred by the independent accountants; and
(3) other material written communications between the independent accountant and management, such as any management letter or schedule
of unadjusted differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. Prepare the report required by the SEC to be included in the Company's public filing.

Compliance Oversight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Administer the following procedures relating to the receipt, retention and treatment of complaints received by the Company regarding questionable accounting, internal accounting controls over financial reporting or auditing matters, and the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall forward to the Committee any complaints or concerns that it has received regarding questionable
financial statement disclosures, accounting, internal accounting controls or auditing matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company shall establish and publish on its website an e-mail address for receiving anonymous complaints
or concerns related to questionable financial statement disclosures, accounting, internal accounting controls or auditing matters, provided
that the Company may engage the services of a third-party service provider to receive such complaints on behalf of the Company via telephone,
email or other appropriate method;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any employee of the Company may submit, on a confidential, anonymous basis if the employee so desires,
any concerns regarding questionable financial statement disclosures, accounting, internal accounting controls or auditing matters by setting
forth such concerns in writing and forwarding them in a sealed envelope to the Chairman of the Committee, such envelope to be labeled
with a legend such as "To be opened by the Committee only" (employees may deposit such envelope in the Company's internal
mail system or deliver it by hand to a member of the Committee and if an employee would like to discuss any matter with the Committee,
the employee should indicate this in the submission and include a telephone number at which he or she might be contacted if the Committee
deems it appropriate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Committee shall review and consider any such complaints and concerns that it has received and take
any action that it deems appropriate in order to respond thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Committee may request special treatment for any complaint or concern, including the retention of outside
counsel or other advisors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Committee shall retain any such complaints or concerns for a period of no less than five (5) years.

The Committee shall annually reassess the effectiveness of the procedures described immediately above and modify them as necessary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. The Committee will be designated as and serve as the Qualified Legal Compliance Committee for the Company in accordance with the provisions of Section 307 of Sarbanes-Oxley Act of 2002. Upon receipt of a report of evidence of a material legal violation, the Committee will notify the Board of such report, investigate and recommend appropriate measure to the Board. If the Company does not appropriately respond, the Committee may take further appropriate action, including notification to the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. Review with management or any external counsel as the Committee considers appropriate, any legal matters (including the status of pending litigation) that may have a material impact on the Company and any material reports or inquiries from regulatory or governmental agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. Review with management the adequacy and effectiveness of the Company's procedures to ensure compliance with its legal and regulatory responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. Discuss with management, the independent accountants, outside counsel, as appropriate, and, in the judgment of the Committee, such special counsel, separate accounting firm and other consultants and advisors as the Committee deems appropriate, any correspondence with regulators or governmental agencies and any published reports which raise material issues regarding the Company's financial statements, accounting policies or internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. Obtain reports from management, the internal or external auditor or internal or external audit service provider, as the case may be, and the independent auditor regarding compliance with applicable legal and regulatory requirements.

Oversight of Company's Internal And External Audit Function

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. The internal and external auditor or internal and external audit service provider, as the case may be, shall report periodically to the Committee regarding any significant deficiencies in the design or operation of the Company's and its subsidiaries' internal control over financial reporting, material weaknesses in the internal control over financial reporting and any fraud (regardless of materiality) involving persons having a significant role in the internal control over financial reporting, as well as any significant changes in internal control over financial reporting implemented by management during the most recent reporting period of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. Discuss with management, the internal and external auditor or internal and external audit service provider, as the case may be, and the independent accountant the Company's major risk exposures (whether financial, operations or both) and the steps management has taken to monitor and control such exposures, including the Company's risk assessment and risk management policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. With respect to any internal and external audit services that may be outsourced, engage, evaluate and terminate internal and external audit service providers and approve fees to be paid to such internal and external audit service providers.

Financial Oversight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. Review and approve decisions by the Company and its subsidiaries to enter into derivative transactions (including, but limited to, swaps, put and call options or combinations thereof, caps, floors, collars, and forward or spot exchanges) and related matters, as appropriate, as well as non-cleared swaps that are exempt from the clearing and trade execution requirements established under applicable federal law, rules and regulations, including swaps that are entered into in reliance upon the "end-user exceptions" to the mandatory execution and clearing requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations. The Committee may review and approve swap transactions submitted to it by management on (a) an individual transaction basis or (b) a blanket basis, with respect to all non-cleared swaps that are exempt from the federal clearing and trade execution requirements, which approval must be reviewed at least annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. Periodically review, at least on an annual basis, or more often (particularly in the event of a material change in hedging strategy) and approve the Company's policies for the use of swaps that are entered into in reliance upon the end-user exceptions.

Other

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. Prepare the disclosure required by Item 407(d)(3)(i) of Regulation S-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. Report its activities to the Board on a regular basis and to make such recommendations with respect to the matters described above and other matters as the Committee may deem necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. Perform an annual self-evaluation of the Committee's performance and annually review and reassess the adequacy of and, if appropriate, propose to the Board, any desired changes in, this Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. The Committee shall have such further responsibilities as are given to it from time to time by the Board. The Committee shall consult, on an ongoing basis, with management, the independent accountants and counsel as to legal or regulatory developments affecting its responsibilities, as well as relevant tax, accounting and industry developments.

The foregoing list of duties is not exhaustive, and the Committee may, in addition, perform such other functions as may be necessary or appropriate for the performance of its duties.

V. <u>Additional Resources.</u> 

The Committee shall have the right to use reasonable amounts of time of the Company's independent accountants, outside lawyers and other internal staff and also shall have the right to hire independent experts, lawyers and other consultants to assist and advise the Committee in connection with its responsibilities. The Committee shall also be given the resources, as determined by the Committee, for payment of (i) compensation to any registered independent public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company, (ii) compensation to any independent experts, lawyers and other consultants hired to assist and advise the Committee in connection with its responsibilities, and (iii) ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties. The Committee shall keep the Company's Chief Financial Officer advised as to the general range of anticipated expenses for outside consultants, and shall obtain the concurrence of the Board in advance for any expenditures.

VI. <u>Amendments.</u>

Any amendments to this Charter must be approved or ratified by a majority vote of the Company's Board, including a majority of independent directors.

VII. <u>Disclosure of Charter.</u>

This Charter will be made available on the Company's website.

Adopted by the Board of Directors on [•].