# EDGAR Filing Document

**Accession Number:** 0001715611
**File Stem:** 0001640334-25-001639
**Filing Date:** 2025-9
**Character Count:** 300031
**Document Hash:** 3c9d1621d914cd0446808f446eddcb18
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001640334-25-001639.hdr.sgml**: 20250905

**ACCESSION NUMBER**: 0001640334-25-001639

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 22

**CONFORMED PERIOD OF REPORT**: 20250822

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

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

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250905

**DATE AS OF CHANGE**: 20250905

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BODY & MIND INC.
- **CENTRAL INDEX KEY:** 0001715611
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 981319227
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0731

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55940
- **FILM NUMBER:** 251296945

**BUSINESS ADDRESS:**
- **STREET 1:** 750 - 1095 WEST PENDER STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6E 2M6
- **BUSINESS PHONE:** 604-376-3567

**MAIL ADDRESS:**
- **STREET 1:** 750 - 1095 WEST PENDER STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6E 2M6

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DEPLOY TECHNOLOGIES INC
- **DATE OF NAME CHANGE:** 20170825

?xml version='1.0' encoding='ASCII'? bmmj_8k.htm

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT** 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

**<u>August 22, 2025</u>**

Date of Report (Date of earliest event reported)

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| |
|:---|
| **BODY AND MIND INC.** |
| (Exact name of registrant as specified in its charter) |

---

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| | | |
|:---|:---|:---|
| **Nevada** | **000-55940** | **98-1319227** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

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| | |
|:---|:---|
| **750 – 1095 West Pender Street**<br>**Vancouver, British Columbia, Canada** | **V6E 2M6** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(800) 361-6312</u>**

Registrant's telephone number, including area code

**<u>Not applicable.</u>**

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

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

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

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

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

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

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

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

---

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).

Emerging growth company ☐

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

**SECTION 1 – REGISTRANT'S BUSINESS AND OPERATIONS**

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

*<u>Stock Purchase Agreement</u>*

On August 22, 2025, Body and Mind, Inc.'s (the "**Company**") wholly owned subsidiary, DEP Nevada, Inc. ("**DEP**"), holding 95,000 shares of common stock (the "**DEP Shares**") of BAM Body and Mind Dispensary NJ, Inc., a New Jersey corporation ("**BAM NJ**"), entered into a stock purchase agreement (the "**Drozdowski SPA**") with Paul Drozdowski, whereby DEP purchased 5,000 shares of common stock of BAM NJ held by Mr. Drozdowski (the "**Drozdowski Shares**") for a purchase price of $1.00. The DEP Shares and Drozdowski Shares (the "**BAM NJ Shares**") represent all of the issued and outstanding shares of BAM NJ.

As part of the closing requirement of the Drozdowski SPA, on August 22, 2025, DEP, BAM NJ and Mr. Drozdowski entered into a consulting termination agreement (the "**Drozdowski Termination Agreement**"), which is attached as Exhibit A to the Drozdowski SPA, and which terminated the consulting agreement entered into by DEP, BAM NJ and Mr. Drozdowski on September 22, 2023 (the "**Drozdowski Consulting Agreement**"). The Drozdowski Termination Agreement triggered a compensation provision in the Drozdowski Consulting Agreement, requiring DEP to pay Mr. Drozdowksi a sum of $50,000 to effectuate the termination of his consulting relationship.

Following the closing of the Drozdowski SPA on August 22, 2025, DEP became the sole holder of all the issued and outstanding shares of common stock of BAM NJ.

The foregoing description of the Drozdowski SPA does not purport to be complete and is subject to, and qualified in its entirety by the Drozdowski SPA, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

*<u>Purchase Agreement</u>*

On August 22, 2025, immediately following the closing of the Drozdowski SPA, DEP and BAM NJ entered into a purchase agreement (the "**Purchase Agreement**") with Ascend New Jersey, LLC, a New Jersey limited liability company ("**Ascend**") wherein DEP agreed to sell the BAM NJ Shares to Ascend in consideration for:

(a) $1,000,000 less any Indebtedness (as defined in the Purchase Agreement) and less any fees and expenses incurred by DEP in connection with the preparation, negotiation and execution of the Purchase Agreement (the "**Initial Consideration**") to be paid at or before the Closing Date of the Agreement;

(b) $1,000,000 (the "**Contingent Consideration**") to be released from escrow within three (3) business days following receipt by BAM NJ of written, final, and unconditional approval from the New Jersey Cannabis Regulatory Commission ("**CRC**") of an annual class 5 cannabis retailer license (the "**Retailer License**"), along with all other licenses and permits necessary to operate the class 5 cannabis retail store located at 3191 U.S. Route 1, Lawrenceville, New Jersey 08648 (the "**Property**").

Pursuant to the Purchase Agreement, Ascend had DEP transfer 65,000 of the BAM NJ Shares to a social equity partner of Ascend and transfer the remaining 35,000 of the BAM NJ Shares to Ascend.

As a condition to closing of the Purchase Agreement, the parties agreed that DEP will cause BAM NJ to withdraw its current license/application for a Retailer License from the CRC to allow Ascend (and its designee) to apply for its own Retailer License. Once the CRC approves Ascend's application for a Retailer License, the Contingent Consideration will be released from escrow and delivered to DEP.

The Purchase Agreement closed on August 22, 2025.

The foregoing description of the Purchase Agreement does not purport to be complete and is subject to, and qualified in its entirety by the Purchase Agreement, which is filed as Exhibit 10.2 hereto and is incorporated herein by reference.

*<u>Limited Termination and Release of Security Agreement</u>*

As previously disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2024, the Company and the Bengal Catalyst Fund, LP, a Delaware limited partnership (the "**Collateral Agent**") entered into a security agreement dated October 24, 2024 (the "**Security Agreement**"), pursuant to which Company granted to the Collateral Agent for the ratable benefit of the Collateral Agent, among others, a security interest in and on all of the Company's right, title and interest in and to all present and after acquired personal property of the Company, wherever located, together with all books, records, writings, databases, information and other property relating to, used or useful in connection with, or evidencing, embodying, incorporating or referring to any of the foregoing, and all proceeds, products, offspring, rents, issues, profits and returns of and from any of the foregoing (collectively, the "**Collateral**"). The Collateral secured the performance of the Company's obligations under a non-revolving credit facility agreement between the Company and the Collateral Agent dated October 24, 2024, certain securities purchase agreements dated December 19, 2022 between the Company and each of BAM I, A Series of Bengal Catalyst Fund SPV, LP, a Delaware limited partnership ("**Bengal SPV**"), Mindset Value Fund LP, a Delaware limited partnership, and Mindset Value Wellness Fund LP, a Delaware limited partnership, and the Security Agreement.

On August 22, 2025, the Company entered into a limited termination and release of security agreement (the "**Security Release Agreement**") with the Collateral Agent and Bengal SPV (the "**Secured Parties**"), pursuant to which the Secured Parties consented to the Purchase Agreement and the transfer of the BAM NJ Shares contemplated thereunder, and agreed to terminate and release the BAM NJ Shares, BAM NJ and any Collateral held, owned, leased, or used by the BAM NJ from the Security Agreement, among other loan documents.

The foregoing description of the Security Release Agreement does not purport to be complete and is subject to, and qualified in its entirety by the Security Release Agreement, which is filed as Exhibit 10.3 hereto and is incorporated herein by reference.

*<u>Lease Assignment</u>*

On August 22, 2025, BAM NJ, Ascend, and Lawrence Investment Group, LLC (the "**Landlord**") entered into an assignment and assumption of lease and second amendment to lease (the "**Lease Assignment**") dated August 22, 2025, whereby BAM NJ assigned a lease agreement with the Landlord in relation to the Property (the "**Lease**") to Ascend. Contemporaneously, Ascend (as sublandlord) subleased the Property to BAM NJ (as subtenant) pursuant to a sublease agreement dated August 22, 2025.

In connection with the Lease Assignment, the Landlord agreed to terminate the guaranty of lease made by the Company dated February 14, 2023.

The foregoing description of the Lease Assignment does not purport to be complete and is subject to, and qualified in its entirety by the Lease Assignment, which is filed as Exhibit 10.4 hereto and is incorporated herein by reference.

**SECTION 2 – FINANCIAL INFORMATION**

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

The information set forth under Item 1.01 of this Current Report on Form 8-K with respect to the Drozdowski SPA, the Purchase Agreement and the Lease Assignment is responsive to and incorporated by reference into this Item 2.01.

**SECTION 8 – OTHER EVENTS**

**Item 8.01 Other Events**

On August 25, 2025, the Company issued a news release to announce the agreement to divest the BAM NJ Shares.

A copy of the news release is attached as Exhibit 99.1 hereto.

On August 27, 2025, the Company issued a correcting news release with respect to the agreement to divest the BAM NJ Shares to provide that Ascend will hold 35% of the BAM NJ Shares and Ascend's social equity partner will hold 65% of the BAM NJ Shares.

A copy of the news release is attached as Exhibit 99.2 hereto.

**SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS**

**Item 9.01 Financial Statements and Exhibits**

**(d) Exhibits**

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| [10.1](bmmj_ex101.htm) | [Stock Purchase Agreement by and between DEP Nevada, Inc. and Paul Drozdowski, dated August 22, 2025](bmmj_ex101.htm) |
| [10.2](bmmj_ex102.htm) | [Purchase Agreement between DEP Nevada, Inc., BAM Body and Mind Dispensary NJ, Inc., and Ascend New Jersey, LLC, dated August 22, 2025](bmmj_ex102.htm) |
| [10.3](bmmj_ex103.htm) | [Limited Termination and Release of Security Agreement by and between Body and Mind Inc., Bengal Catalyst Fund, LP, and BAM I, A Series of Bengal Catalyst Fund SPV, LP, dated August 22, 2025](bmmj_ex103.htm) |
| [10.4](bmmj_ex104.htm) | [Assignment and Assumption of Lease and Second Amendment to Lease by and between BAM Body and Mind Dispensary NJ, Inc., Ascend New Jersey, LLC and Lawrence Investment Group, LLC, dated August 22, 2025](bmmj_ex104.htm) |
| [99.1](bmmj_ex991.htm) | [News release dated August 25, 2025](bmmj_ex991.htm) |
| [99.2](bmmj_ex992.htm) | [News release dated August 27, 2025](bmmj_ex992.htm) |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |

---

**SIGNATURES**

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

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| | | |
|:---|:---|:---|
|  | **BODY AND MIND INC.** | **BODY AND MIND INC.** |
| **DATE:** September 5, 2025 | By: | */s/ Michael Mills* |
|  |  | **Michael Mills** |
|  |  | **President, CEO and Director** |

---

## Exhibit 10.1

**EXHIBIT 10.1**

**STOCK PURCHASE AGREEMENT**

This stock purchase agreement (this "**Agreement**"), dated as of August 22, 2025 (the "**Effective Date**") is made and entered into by and between Paul Drozdowski, an individual (the "**Seller**"), and DEP Nevada, Inc., a Nevada corporation (the "**Buyer**"). Capitalized terms used in this Agreement have the meanings given to such terms herein.

**RECITALS**

WHEREAS, the Parties are the only shareholders of BaM Body and Mind Dispensary NJ, Inc., a New Jersey corporation (the "**Company**");

WHEREAS, as of the Effective Date, Seller holds five thousand (5,000) shares of common stock of the Company (the "**Shares**");

WHEREAS, on or about September 22, 2023, the Parties entered into that certain option agreement (the "**Option Agreement**") wherein the Seller irrevocably granted to Buyer the option to purchase the Shares from the Seller (the "**Option Right**") on the terms set forth therein;

WHEREAS, on or about September 22, 2023, the Parties entered into a consulting agreement (the "**Consulting Agreement**") with the Company, wherein Buyer and Seller, as the key man, would provide certain services to the Company in exchange for certain compensation (being the "**Key Man Compensation**");

WHEREAS, the Seller desires to exercise its Option Right and purchase the Shares from the Buyer, and Buyer agrees to sell all of the Shares to Buyer pursuant to the Option, subject to the terms and conditions set forth below;

WHEREAS, contemporaneously with this Agreement, the Buyer, Seller, and Company are entering into that certain termination agreement of the Consulting Agreement (being the "**Termination Agreement**") which is attached as <u>Exhibit A</u>; and

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 Option Notice.** The Parties agree and acknowledge that this Agreement satisfies <u>Section 1(d)</u> of the Option Agreement and the Exercise Notice (as defined therein) is considered properly delivered to the Seller and/or hereby waived by the Parties.

**Section 1.02 Purchase and Sale.** Subject to the terms and conditions set forth herein, at the Closing, the Seller shall sell to Buyer, and Buyer shall purchase from the Seller all of the Seller's right, title, and interest in and to the Shares.

**Section 1.03 Purchase Price.** As set forth in the Option Agreement, the purchase price for the Shares shall be One Dollar ($1.00) (the "**Purchase Price**"). At the Closing (as defined below), the Buyer shall deliver the Purchase Price to the Seller in lawful money of the United States of America, by wire transfer in immediately available funds (or other form of payment as mutually agreed upon).

**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 hereof (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 6:00 pm PST time on the Closing Date.

**Section 2.02 Seller's Deliverables.** At the Closing, the Seller shall deliver to Buyer the following:

(a) A copy of this Agreement duly signed by Seller.

(b) A copy of the Termination Agreement duly signed by Seller.

(c) Such other documents or deliverables as may be reasonably requested by the Buyer necessary to effectuate the purpose of this Agreement.

**Section 2.03 Buyer's Deliveries.** At the Closing, Buyer shall deliver the following to the Seller:

(a) A copy of this Agreement duly signed by Buyer.

(b) A copy of the Termination Agreement duly signed by Buyer.

(c) Buyer shall deliver, or cause Company to deliver, the unpaid balance of the aggregate Key Man Compensation (as determined in the Termination Agreement) to Seller.

(d) The Purchase Price.

(e) Such other documents or deliverables as may be reasonably requested by the Seller, as necessary to effectuate the purpose of this Agreement.

**Section 2.04 Existing Stock Power**. The Parties acknowledge that the pursuant to the Option Agreement, the Seller delivered an executed stock power in blank to the Buyer (the "Stock Power"). Subject to <u>Section 2.06</u>, the Buyer shall complete and date the Stock Power on the Closing Date.

**Section 2.05 Company Deliveries.** Within ten (10) days following the Closing, the Company shall update books and records to reflect the sale and purchase of the Shares.

**Section 2.06 Existence of Limited Power of Attorney.** The Parties acknowledge and agree that on September 28, 2023, the Seller appointed Stephen 'Trip' Hoffman ("**Mr. Hoffman**") as his agent and attorney-in-fact with respect to the Shares, including the right for Mr. Hoffman to effectuate the sale and assignment of the Shares on behalf of the Seller. The Seller further acknowledges that he has already delivered the Stock Power to the Buyer as part of the Option Agreement. Notwithstanding anything to the contrary, should Seller refuse to enter into this Agreement, fail to deliver his closing deliverables, or otherwise delay the Closing (all as determined in Buyer's sole discretion), the Buyer shall have the right to direct Mr. Hoffman to enter into the Agreement as the Seller's attorney-in-fact and agent and to date and complete the Stock Power effectuating the transfer of the Shares.

**ARTICLE III <br>REPRESENTATIONS AND WARRANTIES OF THE SELLER**

The Seller represents and warrants to the Buyer that the statements contained in this <u>Article III</u> are true and correct as of the Closing Date:

**Section 3.01 Organization and Authority of Seller.** The Seller is an individual. The Seller has all necessary authority to enter into this Agreement, to carry out his obligations and to consummate the transactions contemplated hereby. The execution and delivery by the Seller of this Agreement, the performance by the Seller of his obligations hereunder, and the consummation by the Seller of the transactions contemplated hereby have been duly authorized by all requisite action on the part of the Seller. This Agreement constitutes a legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity)..

**Section 3.02 No Conflicts.** The execution, delivery and performance by the Seller of this Agreement, and the consummation of the transactions contemplated hereby, do not and will not violate or conflict with any provision of any Law or Governmental Order applicable to the Seller. For purposes of this Agreement: (i) "**Law**" means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law or other requirement or rule of law of any Governmental Authority; (ii) "**Governmental Order**" means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority; (iii) "**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 arbitrator, court or tribunal of competent jurisdiction; (iv) "**Person**" means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

**Section 3.03 Title to Shares.** The Shares have been duly authorized, are validly issued, fully paid and non-assessable, and are owned of record and beneficially by the Seller, and except for and as described in the Option Agreement, are free and clear of all liens, pledges, security interests, charges, claims, encumbrances, agreements, or options ("**Encumbrances**"). Upon consummation of the transactions contemplated by this Agreement, Buyer shall own all right, title, and interest in and to, and will have good, valid and marketable title to, the Shares, free and clear of all Encumbrances (except for and as described in the Option Agreement). The Seller is <u>only</u> a party to the Option Agreement and not a party to any other option, warrant, purchase right, or other contract, agreement or arrangement that could require a party to sell, transfer, or otherwise dispose of all or any portion of the Shares (other than pursuant to this Agreement and the Option Agreement).

**Section 3.04 Legal Proceedings.** To the Seller's knowledge, there are no claims, lawsuits, legal proceedings, or actions pending or threatened against or by the Seller that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement.

**Section 3.05 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.

**ARTICLE IV <br>REPRESENTATIONS AND WARRANTIES OF BUYER**

Buyer represents and warrants to the Seller that the statements contained in this <u>Article IV</u> are true and correct as of the Closing Date.

**Section 4.01 Organization and Authority of Buyer**. Buyer is a corporation. Buyer is duly organized, validly existing, and in good standing under the laws of Nevada. Buyer has all necessary corporate power, as applicable, and authority to enter into this Agreement, to carry out its obligations and to consummate the transactions contemplated hereby. The execution and delivery by the Buyer of this Agreement, the performance by the Buyer of its obligations hereunder, and the consummation by the Buyer of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of the Buyer. This Agreement constitutes a legal, valid and binding obligation of the Buyer enforceable against the Buyer in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

**Section 4.02 No Conflicts; Consents.** The execution, delivery, and performance by Buyer of this Agreement, and the consummation of the transactions contemplated hereby, do not and will not violate or conflict with any provision of any Law or Governmental Order applicable to Buyer.

**Section 4.03 Investment Purpose**. Buyer is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof or any other security related thereto within the meaning of the Securities Act of 1933, as amended (the "**Securities Act**"). Buyer acknowledges that the Seller and Company have not registered the offer and sale of the Shares under the Securities Act or any state securities laws, and that the Shares may not be pledged, transferred, sold, offered for sale, hypothecated or otherwise disposed of except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable. Buyer is able to bear the economic risk of holding the Shares for an indefinite period (including total loss of its investment), and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risk of its investment.

**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.

**Section 4.05 Legal Proceedings.** To Buyer's knowledge, there are no claims, lawsuits, legal proceedings, or actions pending or threatened against or by Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

**ARTICLE V <br>COVENANTS** 

**Section 5.01 Further Assurances.** Following the Closing, each of the parties hereto shall, and shall cause their respective affiliates to, execute and deliver such additional documents and instruments 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.

**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 shall be borne by the Buyer. Each party shall, at its own expense, timely file any tax return or other document with respect to such taxes or fees (and the other party shall cooperate with respect thereto as necessary).

**Section 5.03 Government Approvals & Consents.**

(a) Upon the terms and subject to the conditions of this Agreement, each Party hereto shall use its reasonable best efforts to consummate the transactions contemplated by this Agreement as promptly as practicable. In furtherance of the foregoing, each Party hereto shall, as promptly as possible, (i) make, or cause or be made, all filings and submissions (including those required to obtain the state and local approvals) required under any Law applicable to such party or any of its affiliates; and (ii) use reasonable best efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary for its execution and delivery of this Agreement and the performance of its obligations pursuant to this Agreement. Each Party shall cooperate fully with the other party and its affiliates in promptly seeking to obtain all such consents, authorizations, orders, and approvals. The parties hereto shall not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of any required consents, authorizations, orders and approvals.

(b) Without limiting the generality of the parties' undertakings pursuant to <u>Section 5.03(a)</u> above, each of the parties hereto shall use all reasonable best efforts to: (i) respond to any inquiries by any Governmental Authority regarding the state or local approval and the transactions contemplated by this Agreement; and (ii) avoid the imposition of any order or the taking of any action that would restrain, alter or enjoin the transactions contemplated by this Agreement.

**ARTICLE VI**

**SURVIVAL; INDEMNIFICATION**

**Section 6.01 Survival.** Subject to the limitations and other provisions of this Agreement, the representations and warranties, covenants, and agreements contained herein shall survive the Closing and shall remain in full force and effect until the date that is three (3) years from the Closing Date. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of such survival period and such claims shall survive until finally resolved.

**Section 6.02 Indemnification.**

(a) Buyer agrees to defend, indemnify and hold harmless Seller and its assigns, kin, spouse, and representatives against all losses arising out of or resulting from any claim related to or arising out of: (i) the breach of this Agreement (including the foregoing representations and warranties) by Buyer; (ii) the non-compliance of Buyer with applicable law; and (iii) Buyer's or its Representative's gross negligence, misrepresentation, omission, or intentional misconduct related to Buyer's performance hereunder.

(b) Seller agrees to indemnify, hold harmless and defend Buyer, and its directors, officers, attorneys, agents, representatives, and affiliates (collectively, the "**Representatives**") against all losses arising out of or resulting from any third party claim related to or arising out of : (i) the breach of this Agreement (including any representation and warranties set forth herein) by Seller; (ii) the non-compliance of Seller with applicable law; and (ii) Seller's gross negligence, misrepresentation, omission, or intentional misconduct related to Seller's performance hereunder.

(c) The indemnified Party shall promptly notify the indemnifying Party in writing of any claim and cooperate with the indemnifying party at the indemnifying Party's sole cost and expense. The indemnifying Party shall immediately take control of the defense and investigation of such claim and shall employ counsel of its choice to handle and defend the same, at the indemnifying Party's sole cost and expense. The indemnifying Party shall not settle any claim in a manner that adversely affects the rights of the indemnified Party without the indemnified Party's prior written consent, which shall not be unreasonably withheld or delayed. The indemnified Party's failure to perform any obligations under this paragraph shall not relieve the indemnifying Party of its obligations hereunder except to the extent that the indemnifying Party can demonstrate that it has been materially prejudiced as a result of such failure. The indemnified Party may participate in and observe the proceedings at its own cost and expense.

**ARTICLE VII <br>MISCELLANEOUS** 

**Section 7.01 Governing Law.** The terms of this Agreement shall be construed in accordance with the laws of the State of Nevada, as applied to contracts entered into by Nevada residents within the State of Nevada, and to be performed entirely within the State of Nevada.

**Section 7.02 Notice.** Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid; to the addresses set forth below the parties' respective signatures. Any notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) on the next business day if transmitted by email, and (iv) three (3) days after mailing, if sent by registered or certified mail.

**Section 7.03 Attorney's Fees**. In the event that any party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the prevailing party shall be reimbursed by the losing party for all costs, including reasonable outside attorneys' fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

**Section 7.04 Confidentiality**. Each party agrees that, unless and until the transactions contemplated by this Agreement have been consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except (i) to the extent such data or information is published, is a matter of public knowledge, or is required by Law to be published; or (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In the event of the termination of this Agreement, each party shall return to the applicable other party all documents and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials relating thereto, and each party will continue to comply with the confidentiality provisions set forth herein.

**Section 7.05 Third Party Beneficiaries**. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their respective successors and permitted assigns. Nothing herein, express or implied, is intended to or shall confer upon any other Person, any legal or equitable right, benefit or remedy of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.

**Section 7.06 Expenses**. Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

**Section 7.07 Entire Agreement**. This Agreement (and any exhibits attached) represents the entire agreement between the Parties relating to the subject matter thereof and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.

**Section 7.08 Amendment; Waiver**. This Agreement may only be amended, modified, or supplemented by a written instrument executed by both Buyer and Seller. 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 failure to exercise or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof. No single or partial exercise of any right or remedy hereunder shall preclude any other or further exercise thereof or the exercise of any other right or remedy.

**Section 7.09 Arm's Length; No Presumption Against Drafter**. This Agreement has been negotiated at arm's-length by parties of equal bargaining strength, each represented by counsel or having had but declined the opportunity to be represented by counsel and having participated in the drafting of this Agreement. This Agreement creates no fiduciary or other special relationship between the parties hereto, and no such relationship otherwise exists. No presumption in favor of or against any party in the construction or interpretation of this Agreement or any provision hereof shall be made based upon which Person might have drafted this Agreement or such provision.

**Section 7.10 Headings**. The headings contained in this Agreement are intended solely for convenience and shall not affect the rights of the parties hereto.

**Section 7.11 Assignment**. This Agreement may not be assigned by a party hereto by operation of Law or otherwise without the express written consent of the other parties hereto (which consent may be granted or withheld in the sole discretion of such other party.

**Section 7.12 Further Assurances**. Each party shall execute and deliver such documents and take such action, as may reasonably be considered within the scope of such party's obligations hereunder, necessary to effectuate the transactions contemplated by this Agreement.

**Section 7.13 Counterparts**. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument. The execution and delivery of a facsimile or other electronic transmission or via electronic signature (e.g., AdobeSign) of a signature to this Agreement shall constitute delivery of an executed original and shall be binding upon the person whose signature appears on the transmitted copy.

**Section 7.14 Severability**. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

**Section 7.15 Tax & Legal Counsel.** The Parties expressly agree and acknowledge that each has been given the opportunity to consult with legal counsel or any other advisor (including tax counsel and/or a certified public accountant or other such tax specialist) of each its choosing regarding this Agreement and that it has consulted with legal counsel or has opted to forego legal counsel. Each Party has carefully considered all tax, and financial consequences associated with the sale and purchase of the Shares and has consulted with competent professional tax and financial advisers and investigated fully the suitability of the sale and purchase the Shares, taking into account such Party's particular tax and financial situation, and each Party takes sole responsibility for any tax consequences it experiences arising under this Agreement. Each Party hereby acknowledges that it has been given the opportunity to participate in the negotiation of the terms of this Agreement and that it has read this Agreement and fully understands its terms and contents and fully understands any implications this Agreement may have. Each Party expressly warrants it is entering into this Agreement voluntarily. Each Party further expressly agrees and acknowledges that neither the Company, the other Party, nor any other person (including any officers, directors, shareholders, representatives, or attorneys of the Company) have made any express or implied warranties or representations with respect to this Agreement.

**IN WITNESS WHEREOF**, the Parties hereto have caused this Agreement to be executed as of the date first written above in their individual capacity.

---

| | |
|:---|:---|
| DEP Nevada, Inc. | DEP Nevada, Inc. |
| (the "**Buyer**") | (the "**Buyer**") |
| By: | */s/ Stephen 'Trip' Hoffman* |
| Name: | Stephen 'Trip' Hoffman |
| Its: | President |
| Address: | 6420 Sunset Corp. Dr.<br> Las Vegas NV 89120<br> <u>triphoffman@bodyandmind.com</u> |
| Email: <u>triphoffman@bodyandmind.com</u> | Email: <u>triphoffman@bodyandmind.com</u> |
| Paul Drozdowski | Paul Drozdowski |
| (the "**Seller**") | (the "**Seller**") |
|  | */s/ Paul Drozdowski* |
| Address: | 2 Tahoe Court<br> Toms River, NJ<br> 08757 |
| Email: <u>ikonnik7@gmail.com</u> | Email: <u>ikonnik7@gmail.com</u> |

---

**<u>EXHIBIT A</u>**

TERMINATION AGREEMENT

[*insert on subsequent page*]

**TERMINATION AGREEMENT**

This termination agreement (the "**Agreement**") is made and entered into as of August 22, 2025 (the "**Effective Date**"), by and among DEP Nevada, Inc., a Nevada corporation ("**DEP**"), Paul Drozdowski, an individual ("**Mr. Drozdowski**" together with DEP, being the "Consultant"), and BaM Body and Mind Dispensary NJ, Inc., a New Jersey corporation (the "**Company**"). DEP, Mr. Drozdowski, and the Company are each referred to herein as a "**Party**" and are collectively referred to herein as the "**Parties**."

WHEREAS, on September 22, 2023, the Parties entered into that certain consulting agreement (the "**Consulting Agreement**") whereby the Consultant agreed to provide certain services to the Company in exchange for pre-defined fees.

WHEREAS, contemporaneously with this Agreement, DEP and Mr. Drozdowski are entering into that certain stock purchase agreement (the "**SPA**"), to which this Agreement is attached as Exhibit A, wherein Mr. Drozdowski is selling all of his shares of common stock of the Company to DEP;

WHEREAS, the execution and fulfillment of the terms of this Agreement are a closing condition to the SPA;

WHEREAS, as of the Effective Date, the Parties mutually desire to terminate the Consulting Agreement, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the promises and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each intending to be legally bound hereby, do promise and agree as follows:

1. <u>Termination of Consulting Agreement</u>. Subject to <u>Section 2</u> below, as of the Effective Date, the Consulting Agreement is hereby terminated, cancelled, nullified, and voided. Except as otherwise set forth herein, any and all rights and obligations granted or conferred in connection with the Consulting Agreement are hereby terminated. By signing below, the Parties expressly waive the timing requirement in <u>Section 8(c)</u> of the Consulting Agreement. DEP acknowledges and agrees, upon such termination, that no consideration is owed or due to it under the Consulting Agreement.

2. <u>Key Man Compensation</u>. No later than three (3) business days following the Effective Date, the Company shall deliver to Mr. Drozdowski the balance of the Key Man Compensation (as defined in the Consulting Agreement) which the Parties expressly agree is fifty thousand dollars ($50,000) (the "**Payment**"). The Payment may be made by either the Company or DEP and shall have the same force and effect and satisfaction of the terms of the Consulting Agreement. Mr. Drozdowski expressly agrees and acknowledges that upon receipt of the Payment, that he is owed no further compensation or consideration under the Consulting Agreement (and following the Closing of the SPA, is owed no further compensation or consideration from either DEP or the Company). The Payment shall be delivered to Mr. Drozdowski in lawful money of the United States of America, by wire transfer in immediately available funds (or other form of payment as mutually agreed upon).

3. <u>Release</u>. Each Party and its heirs, spouses, kin, successors, representatives, assigns, members, shareholders, owners agents, employees, managers, directors, officers and attorneys ("**Representatives**") and, each of them, hereby releases and forever discharges the other Parties and their respective Representatives, and each of them, of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action ("**Claims**") of every nature, character and description, known and unknown, which they or any person claiming or purporting to claim through him now owns or holds, or has at any time heretofore owned or held, or may at any time own or hold, by reason of any matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done that specifically relate to the Consulting Agreement. Notwithstanding the foregoing, each Party expressly retains any Claims that such Party may have that relates to this Agreement (the "**Retained Claims**").

4. <u>Full and Final Accord</u>. The Parties hereto intend this Agreement to be effective as a full and final accord and satisfaction and release of each and every Claim except the Retained Claims. The parties hereby acknowledge that they are familiar with Section 1542 of the Civil Code of the State of California which provides as follows:

"A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release which, if known by him or her, must have materially affected his or her settlement with the debtor."

Each party to this Agreement waives and relinquishes any right and benefit which they have or may have under Section 1542 to the full extent that they may lawfully waive all such rights and benefits pertaining to any Claims except the Retained Claims.

5. <u>Indemnification</u>. Each Party agrees to indemnify and hold harmless the other Parties, and any of their respective Representatives, against any Claim (including the payment of attorneys' fees and costs incurred, whether or not litigation to be commenced) by any person or entity that is not a party to this Agreement, which is inconsistent with this Agreement.

6. <u>No Litigation</u>. Each Party agrees to forever refrain and forebear from commencing, instituting, or prosecuting any lawsuits, actions or other proceedings based on, arising out of or in connection with any Claim being released hereunder; and to cause to be dismissed, with prejudice, any lawsuits, actions or other proceedings that are subject to release and discharge by virtue of this Agreement. Notwithstanding the foregoing, in the event of a dispute between the Parties relating to any Retained Claims, such dispute shall be governed in accordance with the subsequent paragraph.

7. <u>Choice of Law</u>. The terms of this Agreement shall be construed in accordance with the laws of the State of Nevada, as applied to contracts entered into by Nevada residents within the State of Nevada, and to be performed entirely within the State of Nevada.

8. <u>Authority</u>. By signing below, each Party expressly agrees that its signatory has full power and authority to execute, deliver, and perform this Agreement and it shall constitute a valid and binding obligation of such Party, enforceable against such party in accordance with its terms.

9. <u>Miscellaneous</u>. This Agreement expressly incorporates by reference <u>Article VII</u> of the SPA as if the same was set forth herein.

[*signature page follows*]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| DEP Nevada, Inc. | DEP Nevada, Inc. | BaM Body and Mind Dispensary NJ, Inc. | BaM Body and Mind Dispensary NJ, Inc. |
| ("**DEP**") | ("**DEP**") | (the "**Company**") | (the "**Company**") |
| By: | */s/ Stephen 'Trip' Hoffman* | By: | */s/ Stephen 'Trip' Hoffman* |
| Name: | Stephen 'Trip' Hoffman | Name: | Stephen 'Trip' Hoffman |
| Its: | President | Its: | Authorized Signatory |
| Paul Drozdowski | Paul Drozdowski |  |  |
| ("**Mr. Drozkowski**") | ("**Mr. Drozkowski**") |  |  |
|  | */s/ Paul Drozdowski* |  |  |

---

## Exhibit 10.2

**EXHIBIT 10.2**

**PURCHASE AGREEMENT**

between

**BAM BODY AND MIND DISPENSARY NJ, INC. (the "Company"), DEP NEVADA, INC. (the "Seller"),**

and

**ASCEND NEW JERSEY, LLC (the "Buyer")**

dated as of

August 22, 2025

**THIS AGREEMENT IS SUBJECT TO STRICT REQUIREMENTS FOR ONGOING REGULATORY COMPLIANCE BY THE PARTIES HERETO, INCLUDING THE REGULATIONS, POLICIES, GUIDANCE OR INSTRUCTION OF THE NEW JERSEY CANNABIS REGULATORY COMMISSION TOGETHER WITH ANY SUCCESSORS, INCLUDING THE CANNABIS REGULATORY, ENFORCEMENT ASSISTANCE, AND MARKETPLACE MODERNIZATION (CREAMM) ACT.** 

**PURCHASE AGREEMENT**

This Purchase Agreement (this **"Agreement"**), dated as of August 22, 2025 (the "**Effective Date**") is entered into between DEP Nevada, Inc. (the "**Seller**"); and

BaM Body and Mind Dispensary NJ, Inc., a New Jersey corporation (the "**Company**"); and

Ascend New Jersey, LLC ("**Ascend**"), and/or its designee(s) (collectively, the "**Buyer**" and together with the Seller and the Company, each a "**Party**" and collectively, the "**Parties**").

**RECITALS**

**WHEREAS,** on January 22, 2024, the Company received an Annual Class 5 Cannabis Retailer license ("**Retailer License**") from the New Jersey Cannabis Regulatory Commission (the "**CRC**");

**WHEREAS,** the Company has obtained local land use and licensing approvals from the Township of Lawrence ("**Township**") for operation of a Class 5 Cannabis Retail Store located at 3191 U.S. Route 1, Lawrenceville, New Jersey 08648 ("**Property**");

**WHEREAS**, the Company leases the Property from Lawrence Investment Group, LLC (the "**Landlord**") under a lease agreement dated August 18, 2022, as amended by a First Amendment to Lease Agreement dated February 14, 2023 (the "**Lease**");

**WHEREAS,** the Seller owns 100% of the equity interests in the Company, (being 100,000 shares of common stock) (the "**Company Shares**");

**WHEREAS,** subject to satisfaction of the conditions to Closing set forth herein, the Buyer wishes to purchase from the Seller and the Seller agrees to transfer the Company Shares to the Buyer;

**WHEREAS,** on the Closing Date the Company shall assign the Lease to Ascend in accordance with Section 19.01 of the Lease and pursuant to an Assignment and Assumption of Lease in a form reasonably acceptable to Buyer (the "**Lease Assignment**") and at or following the Closing, Ascend will sub-lease the Property to the Company;

**WHEREAS,** as a condition to Closing, the Company and Seller agree to withdraw their current application for a Retailer License with the CRC in order to permit a new Retailer License application (the "**New CRC Application**") to be submitted reflecting the new ownership of the Company; and

**WHEREAS,** subject to the receipt of satisfaction to the conditions to Closing set forth herein, Buyer wishes to purchase the Company Shares from the Seller; and

**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.**

**DEFINITIONS**

The following terms have the meanings specified or referred to in this <u>ARTICLE I</u>:

"**Acquisition Proposal**" has the meaning set forth in <u>Section 5.03(a)</u>.

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

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

"**Agreement**" has the meaning set forth in the preamble.

"**Ancillary Agreements**" shall include the Lease Assignment, an assignment of Company Shares, and all agreements, documents, assignments, instruments, notes and certificates contemplated hereby or otherwise entered into in connection with the transactions contemplated by this Agreement.

"**Benefit Plan**" means each pension, benefit, retirement, compensation, employment, consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity, interests or interests-based, change in control, retention, severance, vacation, paid time off (PTO), medical, vision, dental, disability, welfare, cafeteria, fringe benefit and other similar agreement, plan, policy, program or arrangement (and any amendments thereto), in each case whether or not reduced to writing and whether funded or unfunded, including each "employee benefit plan," which is or has been maintained, sponsored, contributed to, or required to be contributed to by a Person for the benefit of any current or former employee, officer, director, retiree, independent contractor or consultant of such Person or any spouse or dependent of such individual, or under which such Person or any of its Affiliates has or may have any Liability, or with respect to which an acquiror of such Person or any of its Affiliates would reasonably be expected to have any Liability, contingent or otherwise.

"**Business Day**" means any day except Saturday, Sunday or any other day on which commercial banks located in New York, New York are authorized or required by Law to be closed for business.

"**Buyer**" has the meaning set forth in the preamble.

"**Buyer Designees**" means any entity(ies), person(s), or combination of entity(ies) or person(s) designated by Buyer, in its sole discretion, to purchase all or a portion of the Company Shares at the time of Closing.

"**Buyer Indemnitees**" has the meaning set forth in <u>Section 8.02</u>.

"**Closing**" has the meaning set forth in <u>Section 2.04</u>.

"**Closing Date**" means the date of Closing.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time.

"**Company**" has the meaning set forth in the recitals.

"**Construction Lien**" means that certain Encumbrance placed on the Property by the Contractor for past due amounts related to certain demolition and construction work at the Property.

"**Contract**" means any contract, lease, deed, mortgage, license, instrument, note, commitment, undertaking, indenture, joint venture and all other legally binding arrangement, whether written or oral.

"**Contractor**" means Englewood Construction, Inc.

"**Covered Taxes**" means (a) any Taxes of the Company attributable to any Pre-Closing Tax Period, (b) any Taxes of Seller for any period (including any withholding Taxes arising from the consummation of this Agreement, whether payable by Buyer or otherwise), (c) any Taxes of any Person imposed on the Company under Treasury Regulations Section 1.1502-6 (or under any similar provision of state, local or non-U.S. Law) as a result of the Company being or having been a member of any affiliated, consolidated, combined, unitary or similar group for Tax purposes prior to the Closing Date, (d) any Taxes of a Person imposed on the Company arising under the principles of transferee or successor liability or by reason of being a party to any Contract, under applicable Law or otherwise, in each case, with respect to a Pre-Closing Tax Period, (e) any Taxes as a result of any breach by the Company or Seller of any covenant or agreement contained herein, (f) all Taxes of the Company arising as a result of Section 965 of the Code, (g) all Transfer Taxes incurred in connection with the transactions contemplated by this Agreement or any other Ancillary Agreement, (h) Seller's or the Company's share of any Taxes attributable to the transactions contemplated by this Agreement or any other Ancillary Agreement, (i) any Taxes of the Company resulting from a breach by the Company of any representation, covenant or agreement contained in this Agreement or any other Ancillary Agreement, (j) any liabilities for Taxes arising under any bulk sale, bulk transfer or similar Laws of any jurisdiction with respect to the transactions contemplated by this Agreement or any other Ancillary Agreements, and (k) any employment, payroll or similar Taxes of or withholdable by the Company attributable to any Pre-Closing Tax Period. Notwithstanding the foregoing, Covered Taxes shall not include any Taxes taken into account in Transaction Expenses.

"**CRC**" has the meaning set forth in the recitals.

"**CRC Approval**" means written final and unconditional approval from the CRC and, if necessary, the local municipality, of (i) the New CRC Application (as may be subsequently modified, amended, and updated as necessary), and (ii) all other necessary licenses to operate a Class 5 Retail Cannabis Store at the Property.

**"CSA**" means the United States Federal Controlled Substances Act (Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970) and all U.S. federal Governmental Orders related thereto.

"**Direct Claim**" has the meaning set forth in <u>Section 8.04(c)</u>.

"**Disclosure Schedules**" means the Disclosure Schedules delivered by the applicable parties concurrently with the execution and delivery of this Agreement.

"**Dollars**" or "**$**" means the lawful currency of the United States.

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

"**Escrow Account**" has the meaning set forth in <u>Section 2.02(b)</u>.

"**Escrow Agent**" means Secured Trust Escrow, Inc.

"**Escrow Agreement**" means the Escrow Agreement, dated as of the Closing Date, by and among Escrow Agent, Buyer and Seller, in the form attached hereto as <u>Exhibit A</u>.

"**Escrow Fund**" means the funds subject to the Escrow Agreement, as of any date of determination.

"**GAAP**" means generally accepted accounting principles and practices set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, applied on a basis consistent with prior periods.

"**Governmental Authority**" means any federal, state, local or foreign government or political subdivision thereof, or any agency, including the CRC, the New Jersey Department of the Treasury – Division of Taxation, 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.

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

"**Indebtedness**" means, without duplication and with respect to the applicable Person, at the time of any determination: all obligations, contingent or otherwise, of such Person, including the outstanding principal amount of, all accrued and unpaid interest on and other payment obligations (including any premiums, termination fees, expenses, breakage costs or penalties due upon prepayment of or payable in connection with this Agreement or the consummation of the transactions contemplated hereby) in respect of (a) indebtedness for borrowed money; (b) obligations for the deferred purchase price of property or services except accounts payable and trade accounts payable arising in the ordinary course of business, (c) long or short-term obligations evidenced by notes, bonds, debentures or other similar instruments; (d) obligations under any interest rate, currency swap or other hedging agreement or arrangement; (e) capital lease obligations under GAAP if such Person is the leasee; (f) reimbursement obligations under any letter of credit, banker's acceptance or similar credit transactions; (g) the guaranty, endorsement (other than for collection or deposit in the ordinary course of business), co-making or sale with recourse by such Person of the obligation of another Person; (h) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person; (i) except for the Construction Lien, all obligations, whether or not assumed, secured by any Encumbrance or payable out of the proceeds or product from any property or assets now or hereafter owned by a Person; (j) Covered Taxes; (k) all unpaid and past due amounts under that certain General Contractor Agreement between the Company and the Contractor, dated November 1, 2023; and (l) guarantees made by a Person on behalf of another Person in respect of obligations of the kind referred to in the foregoing clauses (a) through or (k) or any obligation described in clauses (a) through (k) which is secured by any property or assets of such Person, or for which such Person is responsible or liable, directly or indirectly, jointly or severally, as obligor, guarantor or otherwise of another Person.

"**Indemnified Party**" has the meaning set forth in <u>Section 8.04</u>.

"**Indemnifying Party**" has the meaning set forth in <u>Section 8.04</u>.

"**Intended Tax Treatment**" has the meaning set forth in <u>Section 6.01(c)</u>.

"**Intellectual Property**" means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: (a) issued patents and patent applications (whether provisional or non-provisional), including divisionals, continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing, and other Governmental Authority-issued indicia of invention ownership (including certificates of invention, petty patents, and patent utility models); (b) trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of, any of the foregoing; (c) copyrights and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and renewals of any of the foregoing; (d) internet domain names, whether or not any item described in subclause (b) of this definition, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and data thereon or relating thereto, whether or not any of the items described in subclause (c) of this definition; (g) trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology, business and technicalinformation, databases, data compilations and collections, tools, methods, processes, techniques, and other confidential and proprietary information and all rights therein; (h) computer programs, operating systems, applications, firmware, and other code, including all source code, object code, application programming interfaces, data files, databases, protocols, specifications, and other documentation thereof ("**Software**"); and (j) all other intellectual or industrial property and proprietary rights.

"**Knowledge**" or any other similar knowledge qualification, means (i) with respect to the Seller or the Company, the actual knowledge of Stephen 'Trip' Hoffman, after a reasonable inquiry.

"**Law**" means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, of any Governmental Authority; provided that "Law" shall exclude any U.S. federal Law, civil, criminal or otherwise, that is directly or indirectly related to the cultivation, harvesting, production, marketing, distribution, sale and possession of cannabis, marijuana or related substances or products containing cannabis, marijuana or related substances, including the prohibition on drug trafficking under the CSA, the conspiracy statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the bar against misprision of a felony (concealing another's felonious conduct) under 18 U.S.C. § 4, the bar against being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, federal money laundering statutes under 18 U.S.C. §§ 1956, 1957 and 1960 and the declaration of "marijuana" as a Schedule 1 drug under 21 U.S.C. § 811, the prohibition on drug trafficking under 21 U.S.C. § 841(a), et seq.

"**Lease**" has the meaning set forth in the recitals.

"**Liabilities**" has the meaning set forth in <u>Section 3.06</u>.

"**Losses**" means losses, damages, Liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind, including the reasonable fees of attorneys, accounts and other professionals and the cost of enforcing any right to indemnification hereunder and the cost of pursing any insurance providers; *provided, however,* that "**Losses**" shall not include punitive, incidental, consequential, special, or indirect damages (including loss of revenue, diminution in value, and any damages based on any type of multiple), except to the extent actually awarded to a Governmental Authority or other third party.

"**Material Adverse Effect**" means with respect to any Person, any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or assets of such Person or (b) the ability of a party hereto to consummate the transactions contemplated hereby on a timely basis; *provided, however,* that "Material Adverse Effect" shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions generally affecting the industries in which the Company operates; (iii) any changes in financial or securities markets in general; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof; (v) fires, epidemics, quarantines restrictions, strikes, freight embargoes, earthquakes, hurricanes, floods or other acts of God or natural disasters, (vi) the negotiation, announcement, pendency execution or delivery of this Agreement, or (vii) any action required or permitted by this Agreement, (viii) any changes in applicable Laws or accounting rules; *provided further, however,* that any event, occurrence, fact, condition or change referred to in clauses (i) through (v) or clause (viii) immediately above shall be taken into account in determining whether a Material Adverse Effect has occurred to the extent that such event, occurrence, fact, condition or change has a disproportionate effect on such Person compared to other participants in the industries in which such Person conducts its businesses (in which case, only the incremental disproportionate adverse effect may be taken into account in determining whether a Material Adverse Effect has occurred).

"**Partnership Tax Audit Rules**" means Sections 6221 through 6241 of the Code, as amended by the Bipartisan Budget Act of 2015 (P.L. 114-74), together with any Treasury Regulations and guidance issued thereunder, any similar provision of state or local Tax Law, and any successor provisions to any of the foregoing.

"**Permits**" means all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities.

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

"**Post-Closing Tax Period**" means any taxable period beginning after the Closing Date and, with respect to a Straddle Period, the portion of any Straddle Period beginning after the Closing Date.

"**Pre-Closing Tax Period**" means any taxable period ending on or before and including the Closing Date and, with respect to a Straddle Period, the portion of any Straddle Period ending on and including the Closing Date.

"**Pre-Closing Tax Contest**" has the meaning set forth in <u>Section 6.01(g)(i)</u>.

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

"**Representative**" means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.

"**Seller**" has the meaning set forth in the preamble.

"**Seller Indemnitees**" has the meaning set forth in <u>Section 8.03</u>.

"**Seller-Prepared Tax Return**" has the meaning set forth in <u>Section 6.01(f)(i)</u>.

"**Senior Lender**" means Bengal Catalyst Fund, LP, a Delaware limited partnership.

"**Senior Secured Loan**" means that certain non-revolving credit facility agreement, dated September 9, 2024, as amended, entered into between the Senior Lender and Body and Mind, Inc., a Nevada corporation, as borrower, and the accompanying security agreement, dated September 9, 2024 (the "**Senior Security Agreement**").

"**Software**" has the meaning set forth in the definition of Intellectual Property.

"**Straddle Period**" means any Tax period that begins on or prior to the Closing Date and ends after the Closing Date.

"**Straddle Period Tax Contest**" has the meaning set forth in <u>Section 6.01(g)(ii)</u>.

"**Taxes**" means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties.

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

"**Taxing Authority**" means any Governmental Authority responsible or with jurisdiction for the imposition, determination or collection of any Tax or the administration of the Laws relating to any Tax.

"**Third-Party Claim**" has the meaning set forth in <u>Section 8.04(a)</u>.

"**Transaction Expenses**" means all fees and expenses incurred by the applicable party at or prior to the Closing in connection with the preparation, negotiation and execution of this Agreement, and the performance and consummation of the transactions contemplated hereby (including, any severance, bonus or any other payment obligations on such party triggered by or arising from the consummation of the transactions contemplated hereby).

"**Transfer Taxes**" means any direct or indirect transfer, documentary, sales, use, stamp, registration, real property, business and occupation, value added or other similar Taxes incurred in connection with the transactions contemplated by this Agreement or the other Ancillary Agreements.

"**U.S. Federal Cannabis Laws**" means any U.S. federal Laws, statutes, rules, codes, regulations, restrictions, ordinances, orders, rulings, directives, guidance, guidelines, approvals, consent agreements, constitution, treaty or awards of, or issued by, any U.S. federal Governmental Authority, civil, criminal or otherwise, including common law, that prohibit, restrict, or penalize the advertising, cultivation, harvesting, production, distribution, sale and possession of cannabis and/or related substances or products containing or relating to the same, and related activities, including but not limited to the prohibition on drug trafficking under the Controlled Substances Act (21 U.S.C. § 801, et seq.), the conspiracy statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the bar against misprision of a felony (concealing another's felonious conduct) under 18 U.S.C. § 4, the bar against being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, and U.S. federal money laundering statutes under 18 U.S.C. §§ 1956, 1957 and 1960.

**ARTICLE II.**

**PURCHASE AND SALE**

**Section 2.01 Purchase and Sale.** Subject to the terms and conditions set forth herein, at the Closing, the Seller shall sell, transfer, assign, convey and deliver to the Buyer or the Buyer Designees and the Buyer or the Buyer Designees shall acquire and accept from the Seller, the Company Shares, in accordance with the percentages set forth on <u>Exhibit B</u> attached hereto, free and clear of all Encumbrances (other than those imposed by applicable state and federal securities Laws and the Company's organizational documents), and in exchange therefore, the Seller shall receive the consideration specified in <u>Section 2.02</u>.

**Section 2.02 Purchase 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;**(a) Closing Date Consideration**. In exchange for the Company Shares, the Buyer shall pay Seller an aggregate amount equal to One million dollars ($1,000,000.00), *less* any Indebtedness as of the Closing Date, and *less* any Seller Transaction Expenses, at the Closing, pursuant to the wire instructions of the Seller delivered to Buyer no less than three (3) Business Days prior to Closing (the "**Closing Date Consideration**").

&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) Contingent Consideration**. If the Company receives the CRC Approval, the Buyer shall pay Seller an additional aggregate One million dollars ($1,000,000.00) (the "**Contingent Consideration**" and collectively with the Closing Date Consideration, the "**Purchase Price**"). At the Closing, Buyer, Seller and the Escrow Agent shall enter into the Escrow Agreement, providing for the establishment with the Escrow Agent of a non-interest bearing escrow account in an amount equal to the Contingent Consideration (the "**Escrow Account**"). Within three (3) Business Days following receipt of the CRC Approval, the Buyer and the Seller will jointly instruct the Escrow Agent to release the Contingent Consideration from the Escrow Account to the Seller.

**Section 2.03 Transactions to be Effected at or 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;**(a)** Subject to the satisfaction or waiver of the conditions described herein, at or prior to the Closing:

i. the Buyer shall deliver the following:

(A) pay to Seller the Closing Date Consideration;

(B) pay any Indebtedness as of the Closing Date on behalf of the Company;

(C) pay any Seller Transaction Expenses on behalf of the Company;

(D) the Lease Assignment, duly executed by the Buyer;

(E) the Escrow Agreement, duly executed by the Buyer; and

(F) all other agreements, documents, instruments or certificates required to be delivered by Buyer at or prior to the Closing pursuant to <u>Section 7.03</u> of this Agreement.

ii. the Seller shall deliver to Buyer (or the Buyer Designees):

(A) The Company Shares, free and clear of all Encumbrances, other than those imposed by applicable Law and the Company's organizational documents;

(B) the Lease Assignment, duly executed by the Company and the Landlord;

(C) the Escrow Agreement, duly executed by the Seller and the Escrow Agent; and

(D) all other agreements, documents, instruments or certificates required to be delivered by Seller or the Company at or prior to the Closing pursuant to <u>Section 7.02</u> of this Agreement.

**Section 2.04 Closing.** Subject to the terms and conditions of this Agreement, the closing of the purchase and sale of the Company Shares and the other transactions contemplated hereby (the "**Closing**") shall take place and be completed on the date which is three (3) Business Days after the satsifaction of all conditions to Closing set forth in <u>Article VII</u> of this Agreement, including but not limited to, the receipt by Buyer of confirmation of the Seller's withdrawal of the Company's current application for a Retailer License from the CRC. The Closing shall be held virtually and remotely by electronic exchange of documents and signatures. The transactions contemplated by this Agreement shall be effective for all purposes (including, without limitation, for purposes of Taxes and GAAP) as of 11:59 p.m. Eastern Time on the Closing Date.

**Section 2.05 Bulk Sales.** The parties waive any and all filings pursuant to all bulk sales or transferee liability Laws.

**Section 2.06 Regulatory Approvals.**

&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) Township.** Seller covenants that (i) further approvals from the Township for a local license and site plan have been received and further local approvals are not necessary for operation of a Class 5 Cannabis Retail dispensary at the Property, and (ii) that the Company will retain all neecssary municipal approvals to operate a Class 5 Cannabis Retail dispensary at the Property 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;**(b) New Jersey**. The Parties acknowledge and understand that following the Closing the Company shall be submitting a new application to the CRC for a license to operate a Class 5 Cannabis Retail dispensary at the Property and in accordance therewith, Seller agrees to provide any and all reasonable assistance and access to information necessary for such an application submission.

&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) Withdrawal of Application for Retailer License**. Seller covenants that within one (1) Business Day following the Effective Date, Seller shall cause the Company to withdraw its current application for a Retailer License from the CRC. Promptly upon receiving confirmation of the withdrawal of its current application Retailer License from the CRC, Seller shall provide evidence of such confirmation to Buyer in accordance with <u>Section 7.02(g)</u>.

**ARTICLE III.**

**REPRESENTATIONS AND WARRANTIES OF SELLER**

Except as set forth in the Disclosure Schedules, the Seller represents and warrants to Buyer that the statements contained in this <u>Article III</u> are true and correct as of the date hereof. The applicable Disclosure Schedules delivered by the Seller shall be arranged in sections and subsections corresponding to the numbered and lettered sections and subsections contained in this <u>Article III</u>. The disclosures in any section or subsection of the Disclosure Schedules corresponding to any section or subsection of this <u>Article III</u> shall qualify other sections and subsections in this <u>Article III</u> only to the extent reasonably apparent that such disclosure applies to such other section or subsection.

**Section 3.01 Organization and Authority of Seller.** The Company is a corporation, duly organized, validly existing and in good standing under the Laws of the State of New Jersey. The Seller has full power and authority to enter into this Agreement and the other Ancillary Agreements which the Seller or the Company are a party to and to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and any other Ancillary Agreements which the Seller is a party to and the performance by each Seller of its obligations hereunder, and the consummation by each Seller of the transactions contemplated hereby have been or with respect to any such Ancillary Agreement will be duly authorized by all requisite limited liability action on the part of the Seller. This Agreement and any other Ancillary Agreement which the Seller is party to have been or will be when executed and delivered by the Seller duly executed and delivered by the Seller, and (assuming due authorization, execution and delivery by the Buyer and each other Person party thereto) will constitute a legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, subject to the effect of any applicable bankruptcy, moratorium, insolvency, fraudulent conveyance, reorganization, or other similar law affecting the enforceability of creditors' rights generally and to the effect of general principles of equity which may limit the availability of remedies (whether in a proceeding at law or in equity) (collectively, the "**Enforceability Exceptions**").

**Section 3.02 Organization, Authority and Qualification of the Company.** The Company is a corporation duly organized, validly existing and in good standing under the Laws of the State of New Jersey and has the power and authority to own, operate or lease the properties and assets now owned, operated or leased by it. <u>Schedule 3.02</u> of the Disclosure Schedules sets forth each jurisdiction in which the Company is licensed or qualified to do business as a foreign entity with a copy of such license, and the Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business as currently conducted makes such licensing or qualification necessary except where the failure to be so qualified would not have a Material Adverse Effect on the Company. The execution and delivery by the Company of this Agreement and each other Ancillary Agreement which is the Company is party to and the performance by the Company of its obligations hereunder and thereunder, and the consummation by the Company of the transactions contemplated hereby and thereby have been or with respect to any such Ancillary Agreement will be duly authorized by all requisite limited liability action on the part of the Company. This Agreement and each other Ancillary Agreement to which the Company is party has been or will be duly executed and delivered by the Company and (assuming due authorization, execution and delivery by Buyer and any other Persons party thereto) will constitute a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to the Enforceability Exceptions.

**Section 3.03 Interests Ownership.**

&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 outstanding equity securities of the Company consists of 100,000 shares owned 100% by the Seller (constituting the Company Shares). All of the outstanding equity securities of the Company have been duly authorized, are validly issued and fully paid, and on the Closing Date will be free and clear of all Encumbrances other than those imposed by applicable Laws or the Company's organizational documents. Upon consummation of the transactions contemplated by this Agreement, Buyer and/or Buyer Designees shall collectively own all of the Company Shares, free and clear of all Encumbrances other than those imposed by applicable Laws and the Company's organizational 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)** All of the equity securities of the Company were issued in compliance with applicable Laws. None of the outstanding equity securities of the Company were issued in violation of any Contract to which the Company is a party or is subject to or in violation of any preemptive rights of any Person either under applicable Law or by 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;**(c)** Except as same may be set forth in the Company's organizational documents, there are no outstanding or authorized options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the Company Shares or obligating Seller or the Company to issue or sell any equity securities of the Company. The Company has no outstanding or authorized any profit interest appreciation, phantom equity security, profit participation or similar rights. There are no voting trusts, operating agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the Company Shares other than the Company's organizational documents and/or as set forth on <u>Schedule 3.03</u>.

**Section 3.04 No Subsidiaries.** The Company does not own, or have any equity, ownership or profit sharing interests in any other Person, or the right or obligation to acquire any equity, ownership or profit sharing interests in any other Person.

**Section 3.05 No Conflicts; Consents.** The execution, delivery and performance by Seller or the Company of this Agreement or any Ancillary Agreement, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the certificate of formation, operating agreement or other organizational documents of Seller or the Company; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Seller or the Company; (c) conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which Seller or the Company is a party or by which Seller or the Company is bound or to which any of the Company's properties and assets are subject or any Permit affecting the properties, assets or business of the Company; or (d) result in the creation or imposition of any Encumbrance other than Company Permitted Encumbrances on any properties or assets of the Company. Except as set forth on <u>Schedule 3.05</u> of the Disclosure Schedules, no consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority or any other third party is required by or with respect to Seller or the Company in connection with the execution and delivery of this Agreement, the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby.

**Section 3.06 No Other Assets, Liabilities or Obligations.** Other than entry into the Company Contracts, the Company has not engaged in any operations, acquired any Indebtedness, liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise ("**Liabilities**") (other than those set forth in the Company Contracts), or acquired any assets. Without limiting the generality of the foregoing, except as set forth on <u>Schedule 3.06</u> of the Disclosure Schedules, all of the assets of the Company are owned free and clear of any and all Encumbrances.

**Section 3.07 Contracts**; **No 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)** <u>Schedule 3.07(a)</u> of the Disclosure Schedules sets forth a true, correct and complete list of all Contracts to which the Company is a party or by which the Company is bound, together with all amendments, waivers, modifications and supplements thereto (each, a "**Company Contract,**" and collectively, the "**Company 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;**(b)** All of the Company Contracts are in full force and effect against the Company and to the Company's knowledge, the other Person(s) party thereto, and constitute legal, valid, binding and enforceable obligations against the Company and, to the knowledge of the Company, any other parties thereto. The Company is not in material default under nor has it materially breached any of the Company Contracts in any material respect and no act or omission has occurred which, with notice or lapse of time or both, would constitute such a material breach or material default under any term or provision of any such Company Contract. To the knowledge of the Company (i) no other party is in breach or default in any material respect under any Company Contract, and (ii) no act or omission has occurred by any other party thereto which, with notice or lapse of time or both, would constitute such a breach or default under any term or provision 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)** No customer, vendor, supplier or service provider has given the Company written notice that it intends to terminate or adversely and materially alter its business relationship with the Company (whether as a result of the consummation of the transactions contemplated hereby 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;**(d)** The Company is not a sublessor or grantor under any sublease or other instrument granting to any other Person any right to the possession, lease, occupancy or enjoyment of any real property leased by the Company. To the Seller's Knowledge, there are no Actions pending threatened against or affecting any real property leased by the Company or any portion thereof or interest therein in the nature or in lieu of condemnation or eminent domain proceedings.

**Section 3.08 Title to Assets; 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;**(a)** The Company does not own any real property. The Company has good and valid title to, or a valid leasehold interest in, all personal property and other assets owned by it which are free and clear of Encumbrances (except for the Senior Lender Lien which shall be released at or prior to Closing and the Construction Lien which shall be released following repayment of the applicable Indebtedness pursuant to the terms of that certain payoff letter contempalted by <u>Section 7.02(j)</u>) and except for the following (collectively referred to as "**Company Permitted Encumbrances**"):

i. Encumbrances for Taxes not yet due and payable;

ii. Statutory, mechanics, carriers', workmen's, repairmen's or other like liens arising or incurred in the ordinary course of business that are not delinquent;

iii. easements, rights of way, zoning ordinances and other similar encumbrances affecting real property which are not, individually or in the aggregate, material to the business of the Company; or

iv. deposits or pledges made in connection with, or to secure payment of, utilities or similar services, workers' compensation, unemployment insurance, old age pensions or other social security obligations,

v. rights of (a) the lessors or licensors on property leased or licensed to or by the Company under the terms of the underlying lease or license or (b) the owners of the domain names or social media accounts used by the Company under the terms of underlying Contracts or the terms and conditions imposed by such owners; or

vi. purchase money security interests securing only the property 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;**(b)** <u>Section 3.08(b)</u> of the Disclosure Schedules sets forth a true, correct and complete list of all real Property leased or licensed in connection with the business of the Company (the "**Leased Real Property**"). The Company has made available to Buyer a true and complete copy of each lease associated with the Leased Real Property, including the Lease (the "**Real Property Leases**"). The Company has a good and valid leasehold interest with respect to the Leased Real Property, free and clear of all Encumbrances (except for the Construction Lien), and the Company has the exclusive right to occupy and use such real property, subject to and in accordance with the Real Property Leases. To the Knowledge of the Company, the Company's use of the premises demised under the Real Property Leases has at all times been in compliance in all material respects with local use, occupancy and other applicable Laws. The Company has not received any citation, subpoena, summons or other written notice from any Governmental Authority that is still pending alleging any such non-compliance. Except for the landlord under each Real Property Lease, including the Landlord, no third-party consent is required to consummate the transactions contemplated hereby. The Company has not been notified in writing of any pending or threatened condemnation, eminent domain or similar proceeding with respect to the properties subject to the Real Property Leases.

&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>Schedule 3.08(b)</u> of the Disclosure Schedules, the furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property of the Company are in satisfactory operating condition and repair (ordinary wear and tear excepted), and are adequate for the uses to which they are being put, and to the Company's Knowledge, none of such furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property is in need of material maintenance or material repairs except for ordinary, routine maintenance and repairs.

**Section 3.09 Intellectual Property**. Except as disclosed in <u>Schedule 3.09</u> of the Disclosure Schedules, the Company does not own or license any Intellectual Property, other than its name.

**Section 3.10 Legal Proceedings; Governmental 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;**(a)** There are no Actions pending or, to Company's Knowledge, threatened (a) against or by the Company or affecting any of its properties or assets; or (b) against or by the Seller, the Company or any Affiliate of the Company or Seller that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** There are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting the Company or any of its properties or assets.

**Section 3.11 Compliance With Laws; 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;**(a)** The Company has complied, and is now complying, in all material respects with all Laws applicable to it. The Company has not received any written notice from a Governmental Authority that alleges that it is not in compliance with any applicable Laws, and to the Company's knowledge, the Company is not and has not been subject to any adverse finding, penalty assessment, or other 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;**(b)** All material Permits of the Company are in good standing, valid and in full force and effect. All fees and charges with respect to such material Permits as of the date hereof have been paid in full. <u>Schedule 3.11(b)</u> of the Disclosure Schedules lists all current material Permits issued to the Company, including the names of the Permits and their respective dates of issuance and expiration. The Company has complied and is now complying in all material respects with the terms of all Permits listed on <u>Schedule 3.11(b)</u> of the Disclosure Schedules and there are no Actions of any kind in progress pending or, to the Company's Knowledge, threatened, which relate to any of Permits set forth on <u>Schedule 3.11(b)</u> of the Disclosure Schedules. The Company has not received any written notice from any Governmental Authority of any deficiencies or violations of, or any remedial or corrective actions required in connection with, any material Permits of the Company or their renewal.

**Section 3.12 Employees; Employee Benefits**. The Company currently does not have, nor has ever had, any employees. The Company has not made any commitments or representations to any Person regarding (a) potential employment by the Company or any other Affiliate of the Company following the Closing Date, or (b) any terms and conditions of such potential employment by the Company or any Affiliate thereof following the Closing Date. The Company currently does not have, nor has it ever had, any Benefit Plans.

**Section 3.13 Taxes**. Except as set forth on <u>Schedule 3.13</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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The Company has timely filed all Tax Returns that were required to be filed by it, taking into account any valid extensions of time to file such Tax Returns. All such Tax Returns were true, correct, and complete in all material respects and have been prepared in compliance with all applicable Laws. All Taxes owed by the Company (whether or not shown on any Tax Return) have been timely paid. No penalty, interest, or other charge is or will become due with respect to the late filing of any such Tax Return or late payment of any such Tax.

&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 does not have any liability for the Taxes of any Person (other than the Company) under Treasury Regulation Section 1.1502-6 (or any similar provision of any state, local or non-U.S. law), as a transferee or successor by Contract (other than customary Tax indemnification provisions in commercial Contracts not primarily relating to Taxes), 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;**(c)** The Company (i) has withheld from all employees, customers, independent contractors, creditors, owners, members and any other applicable payees proper and accurate amounts for all taxable periods in compliance with all Tax withholding provisions of applicable federal, state, local and foreign laws, (ii) has remitted, or will remit on a timely basis, such amounts to the appropriate taxing authority, and (iii) has timely collected all sales, use and value added Taxes and any other equivalent or similar Taxes (e.g. cannabis-related excise or similar Taxes withheld at the source) required to be collected by it, and the Company has timely remitted all such Taxes to the appropriate taxing authorities.

&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)** (i) There are no audits, investigations by any Governmental Authority or other proceedings pending or, to the knowledge of the Company, threatened with regard to any amount of Taxes owed or Tax Returns filed or to be filed by the Company; (ii) no deficiency for any amount of Taxes of the Company has been claimed, proposed or assessed, in each case, in writing by any Governmental Authority, which deficiency has not yet been settled except for such deficiencies which are being contested in good faith by appropriate proceedings; (iii) the Company has not waived any statute of limitations with respect to the assessment of Taxes or agreed to any extension of time with respect to any Tax assessment or deficiency for any open tax year; (iv) the Company is not currently the beneficiary of any extension of time within which to file any Tax Return, other than automatic extensions; and (v) the Company has not entered into any "closing agreement" as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign income Tax Law).

&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)** To the knowledge of the Company, no claim has ever been made by a taxing authority in a jurisdiction where the Company does not file Tax Returns that the Company is or may be subject to taxation by that 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;**(f)** There are no liens for Taxes upon the assets of the Company, other than liens for Taxes not yet due and payable.

&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 Company has not made or changed or revoked any material Tax election; filed any material amended Tax Return; changed (or made any request to a Governmental Authority to change) any Tax accounting period; settled or compromised any material Tax claim; surrendered or forfeited any right to claim a material refund of Taxes that was reflected as an asset in the Company's financial statements for the year ended December 31, 2024; or consented to any extension or waiver of the limitation period (by operation of law or otherwise) applicable to any Tax Return or any claim or assessment in respect of Taxes (other than pursuant to an extension of time to file a Tax Return obtained in the ordinary course).

&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)** There are no outstanding powers of attorney executed on behalf of the Company in respect to 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;**(i)** The Company has not received any written ruling of a Governmental Authority relating to Taxes or entered into a written and legally binding agreement with any Governmental Authority relating to Taxes, in each case that would have a continuing effect after 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;**(j)** Other than the organizational documents of the Company, the Company is not a party to any Tax allocation, indemnity or sharing agreements or similar arrangements (other than customary Tax indemnification provisions in commercial Contracts not primarily relating to Taxes) with respect to or involving the Company, and after the Closing Date the Company shall not be bound by any such Tax allocation, indemnity or sharing agreements or similar arrangements or have any liability thereunder for amounts due in respect of periods prior to the Closing Date. For purposes of Federal Taxes, the Company is part of a consolidated group for Tax purposes; for purposes of state and local Taxes, the Company is not paryt of a consoldiated group for 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;**(k)** The Company has not constituted either a "distributing corporation" or a "controlled corporation" (within the meaning of Section 355(a)(1)(A) of the Code) in a distribution of stock qualifying for tax-free treatment under Section 355 of the Code in the two (2) years prior 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;**(l)** The Company has not participated in any (A) "listed transaction" within the meaning of Treasury Regulation Section 1.6011-4(b)(2) or (B) "reportable transaction" within the meaning of Treasury Regulation Section 1.6011-4(b) (or any similar provisions under any state or local 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;**(m)** The Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the date hereof as a result of any (i) change in (or improper use of) any method of accounting for a taxable period ending on or prior to the date hereof under Section 481(a) of the Code (or any corresponding or similar provision of state, local or non-U.S. Legal Requirement); (ii) "closing agreement" as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or non-U.S. Legal Requirement) entered into prior to the Closing; (iii) installment sale or "open transaction" disposition made prior to the Closing; or (iv) deferred revenue or prepaid amount received prior to the Closing (other than in connection with sales 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;**(n)** The representations and warranties set forth in this <u>Section 3.13</u> are the Seller's and Company's sole and exclusive representations and warranties regarding Tax matters.

**Section 3.14 Tax Election**. Since its date of formation on June 29, 2022, the Company has continously and without disruption been treated as a C corporation for U.S. federal income tax purposes.

**Section 3.15 Books and Records.** The books and records of the Company, all of which have been made available to Buyer are complete and correct in all material respects.

**Section 3.16 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 or based upon arrangements made by or on behalf of Seller or the Company,

**Section 3.17 Local Approvals**. The Company has received all necessary approvals from the Township to operate a Class 5 Cannabis Retail store at the Property, including a local license and land use approvals and is not aware of any conditions, facts, or other requirements imposed by Township that would cause such local approvals to be rescinded or altered as a result of this transaction.

**Section 3.18 Disclaimer**. Except as otherwise expressly set forth in this <u>ARTICLE III</u> the Seller and the Company expressly disclaims any representations or warranties of any kind or nature, express or implied regarding the Company, the Seller, or the transactions contemplated by this Agreement or any other agreement entered into connection herewith. It is understood that any cost estimates, projections or other predictions, any data, any financial information or any memoranda or similar materials made available by the Seller, the Company, its Representatives or any advisor of the Company, are not and shall not be deemed to be or be included as representations or warranties of the Company, and are not and shall not be deemed to be relied upon by Buyer in executing, delivering and performing this Agreement and/or the transactions contemplated by this Agreement or any other agreement entered into connection herewith.

**ARTICLE IV.**

**REPRESENTATIONS AND WARRANTIES OF BUYER**

Except as set forth in the correspondingly numbered Schedule of the Disclosure Schedules, Buyer represents and warrants to Seller that the statements contained in this <u>Article IV</u> are true and correct as of the date hereof. The applicable Disclosure Schedules delivered by the Buyer shall be arranged in sections and subsections corresponding to the numbered and lettered sections and subsections contained in this <u>Article IV</u>. The disclosures in any section or subsection of the Disclosure Schedules corresponding to any section or subsection of this <u>Article IV</u> shall qualify other sections and subsections in this <u>Article IV</u> only to the extent reasonably apparent that such disclosure applies to such other section or subsection.

**Section 4.01 Organization and Authority of Buyer.** Buyer is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of New Jersey. Buyer has full limited liability company power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery by Buyer of this Agreement and each other Ancillary Agreement to which Buyer is a party and the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the transactions contemplated hereby and thereby have been or with respect to any such Ancillary Agreement will be duly authorized by all requisite limited liability company action on the part of Buyer. This Agreement and other Ancillary Agreement which the Buyer is party to have been or will be duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by Seller and the other Persons party thereto) will constitute a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms subject to the Enforceability Exceptions.

**Section 4.02 No Conflicts; Consents.** The execution, delivery and performance by Buyer of this Agreement and each Ancillary Agreement and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the certificate of formation, operating agreement or other organizational documents of Buyer; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Buyer; (c) conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which Buyer is a party or by which Buyer is bound or to which any of the Buyer's properties and assets are subject or any Permit affecting the properties, assets or business of the Buyer; or (d) result in the creation or imposition of any Encumbrance. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority or any other third party is required by or with respect to Buyer in connection with the execution and delivery of this Agreement, the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby.

**Section 4.03 Investment Purpose.** Buyer and each Buyer Designee is acquiring the Company Shares solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof. Buyer acknowledges that the Company Shares are not registered under the Securities Act of 1933, as amended, or any state securities laws, and that the Company Shares may not be transferred or sold except pursuant to the registration provisions of the Securities Act of 1933, as amended or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable. Buyer is able to bear the economic risk of holding the Company Shares for an indefinite period (including total loss of its investment), and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risk of its investment.

**Section 4.04 Sufficient Resources.** At the Closing, Buyer will have immediately available funds in an aggregate amount sufficient to consummate the transactions contemplated by this Agreement and the other Ancillary Agreements, including the payment of the Closing Date Consideration, and all other fees, costs, and expenses payable by Buyer in connection with the transactions contemplated by this Agreement.

**Section 4.05 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 or based upon arrangements made by or on behalf of Buyer.

**Section 4.06 Legal Proceedings.** There are no actions, suits, claims, investigations or other legal proceedings pending or, to the Buyer's knowledge, threatened against or by Buyer or any Affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

**Section 4.07 Independent Investigation**. Buyer has conducted its own independent investigation, review and analysis of the Company, results of operations, prospects, condition (financial or otherwise), and assets of the Company, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premise, books and records, and other documents and data of the Company for such purpose. Buyer acknowledges and agrees that: (a) in making it's decision to enter into this Agreement and the Ancillary Agreements and to consummate the transactions contemplated hereby and thereby, Buyer has relied solely upon its own investigation and the express representations and warranties of the Seller and Company set forth in <u>Article III</u> of this Agreement (including the related portions of the Disclosure Schedules); and (b) none of the Company, Seller, nor any other Person has made any representation or warranty as to the Company, Seller, or this Agreement, except as expressly set forth in <u>Article III</u> of this Agreement (including the related portions of the Disclosure Schedules).

**ARTICLE V.**

**COVENANTS**

**Section 5.01 Company Conduct of Business 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;**(a)** From the date hereof until the earlier of the date this Agreement is terminated or the Closing (the "**Interim Period**"), except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld, conditioned, or delayed), Seller shall and shall cause the Company to:

i. conduct the business of the Company in the ordinary course of business;

ii. use reasonable best efforts to maintain and preserve intact the current organization, business, assets and Permits of the Company and to preserve the rights, goodwill and relationships of its customers, lenders, suppliers, regulators and others having business relationships 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;**(b)** Without limiting the foregoing, during the Interim Period, except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld, conditioned, or delayed) the Seller shall not, and shall cause the Company not to:

i. sell or issue any Company Shares or other capital securities of the Company or any other securities convertible into or exercisable for capital securities of the Company or transfer (whether voluntary or involuntary) or any debt securities, or permit any such transfer of any Company Shares;

ii. incur any Liability other than any expenses incurred in connection with the consummation of the transactions contemplated by this Agreement;

iii. make any loans or advances, or assume, guarantee or endorse or otherwise become responsible for the Liability of any other Person;

iv. apply for or obtain any Permits;

v. subject any of its properties or assets to any Encumbrance (other than a Company Permitted Encumbrance);

vi. enter into, modify, amend or terminate any Contract (including the Company Contracts), or waive any right of the Company under any Company Contract

vii. hire any employee, officer, manager, agent, independent contractor, or consultant;

viii. make any distribution, dividend, redemption, repurchase, recapitalization, reclassification, grant, issuance, repricing, split, combination, or any other transaction involving the equity of the Company (other than tax distributions in accordance with the Company's organizational documents);

ix. make any capital expenditure commitments;

x. maintain or deposit any cash or other funds, including any accounts receivable resulting from the operation of the business of the Company in any bank account other than the applicable bank accounts of the Company;

xi. transfer any cash or other funds from the bank accounts of the Company other than in connection with any payments;

xii. take any action that would cause any of the changes, events or conditions described in this <u>Section 5.01(b)</u> to occur or commit to do any of the foregoing referred to in this <u>Section 5.01(b).</u> 

**Section 5.02 Seller Option to Reacquire Company Shares**. Buyer acknowledges and agrees that (a) within thirty (30) days following the Closing Date, Buyer shall submit the New CRC Application to the CRC, and (b) in the event that the CRC issues a final non-appealable denial of New CRC Application (the "**CRC Denial**"), the Seller shall have the option to reacquire the Company Shares from Buyer and/or the Buyer Designees in exchange for One million dollars ($1,000,000.00) (the "**Seller Option**"). The Seller Option may be exercised at any time within ninety (90) days of its receipt of notice of the CRC Denial by delivering to Buyer an Option Exercise notice in the form attached hereto as <u>Exhibit D</u>, provided that if the Seller fails to exercise the Seller Option within such ninety (90) day period, the Seller shall forfeit its ability to exercise the Seller Option. Promptly following (but in no event more than five (5) days) the exercise of the Seller Option, (i) Seller shall pay to Buyer and/or the Buyer Designees One million dollars ($1,000,000.00), and (ii) Buyer and/or the Buyer Designees shall deliver to Seller stock powers, in the form attached hereto as <u>Exhibit E</u>, whereby Buyer and/or the Buyer Designees will transfer the Company Shares held by such Person, free and clear of all Encumbrances except as set forth on <u>Schedule 5.02</u> hereto, back to the Seller (the "**Seller Reacquisition**") and Buyer covenants that on the date of the Seller Reacquistion, except as set forth on <u>Schedule 5.02</u> hereto, the Company shall be free and clear of all Indebtedness, Encumbrances, and/or Liabilities. In addition, Buyer acknowledges and agrees that promptly following the Seller Reacquisition, Buyer shall take all necessary steps and acts to re-assign the Lease back to the Company from Buyer, pursuant to an assignment and assumption of lease in a form substantially similar to the Lease Assignment. Buyer and Seller acknowledge and agree that within three (3) days following a CRC Denial, the Buyer and the Seller will jointly instruct the Escrow Agent to release the Contingent Consideration from the Escrow Account to the Buyer. The Parties acknowledge and agree that following receipt by Buyer of the CRC Approval, this <u>Section 5.02</u> shall be void and of no further force and effect.

**Section 5.03 Access to Information.** During the Interim Period, Seller shall, and shall cause the Company to, (a) afford Buyer and its Representatives access upon reasonable advance notice during normal business hours to and the right to inspect all of the properties, assets, premises, books and records, Contracts and other documents and data with respect to the Company; (b) furnish upon reasonable advance notice from Buyer and its Representatives with such financial, operating and other data and information of the Company as Buyer may reasonably request; and (c) instruct the Representatives of Seller and the Company to cooperate with Buyer in its investigation of the Company. Any investigation pursuant to this <u>Section 5.02(a)</u> shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the Company. No investigation by Buyer or other information received by Buyer shall operate as a waiver or otherwise affect any representation, warranty or agreement given or made by Seller in this Agreement. Notwithstanding the foregoing, no access or information shall be required pursuant to this <u>Section 5.03</u> to the extent that in the reasonable good faith judgment of the Company, (i) applicable Law requires the Company to restrict or prohibit access to any such properties or information or (ii) disclosure of any such information or document would jeopardize attorney-client privilege or the attorney-client work product doctrine; *provided*, *however*, that the Company shall use commercially reasonable efforts to negotiate in good faith agreements or arrangements that permit the provision of such information to the Buyer and its Representatives without having any such effects.

**Section 5.04 No Solicitation of Other Bids.**

&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)** During the Interim Period, Seller shall not, and shall not authorize or permit any of its Affiliates (including the Company) or any of its or their Representatives to, directly or indirectly, (i) respond to, solicit or initiate inquiries regarding an Acquisition Proposal; (ii) enter into discussions or negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal; or (iii) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal. Seller shall immediately cease and cause to be terminated, and shall cause its Affiliates (including the Company) and all of its and their Representatives to immediately cease and cause to be terminated, all existing discussions or negotiations with any Persons conducted heretofore with respect to, or that could lead to, an Acquisition Proposal. For purposes hereof, "**Acquisition Proposal**" shall mean any inquiry, proposal or offer from any Person (other than the parties hereto with respect to the transactions described herein) concerning (i) a merger, consolidation, liquidation, recapitalization, share exchange or other business combination transaction; (ii) the transfer, issuance or acquisition of equity securities; or (iii) the sale, lease, exchange or other disposition of any of the applicable Person's properties or assets (other than sales of inventory in accordance with such Person's ordinary course of business consistent with past practice). In addition to the other obligations under this <u>Section 5.04(a)</u>, Seller shall promptly (and in any event within three Business Days after receipt thereof by Seller, its Affiliates or their respective Representatives) advise Buyer orally and in writing of any Acquisition Proposal or any request for information with respect to any Acquisition Proposal during the Interim 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)** Each of the Parties agrees that the rights and remedies for noncompliance with <u>Section 5.04</u> shall include having such provision specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to the non-breaching party(ies) and that money damages would not provide an adequate remedy to the non-breaching party(ies).

**Section 5.05 Notice of Certain 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;**(a)** During the Interim Period, Seller shall promptly notify Buyer in writing of:

i. any fact, circumstance, event or action the existence, occurrence or taking of which (A) has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on the Company, (B) has resulted in, or could reasonably be expected to result in, any representation or warranty made by Seller hereunder not being true and correct in any material respect or (C) has resulted in, or could reasonably be expected to result in, the failure of any of the conditions set forth in <u>Section 7.02</u> to be satisfied;

ii. any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; and

iii. any Actions commenced or, to Seller's Knowledge, threatened that relates to the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** No party's receipt of information pursuant to this <u>Section 5.05</u> shall operate as a waiver or otherwise affect any representation, warranty or agreement given or made by any other party in this Agreement (including <u>Section 8.02</u>) and shall not be deemed to amend or supplement the Disclosure Schedules.

**Section 5.06 Confidentiality.**

&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)** Prior to the Closing, each of the parties shall abide by the terms of the Confidential Letter of Intent dated as of March 31, 2025, by and among the parties (the "**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;**(b)** From and after the Closing, Seller shall, and shall cause its Affiliates to, hold, and shall use its reasonable best efforts to cause its or their respective Representatives to hold, in confidence any and all confidential or proprietary information, whether written or oral, concerning the Company or Buyer, except to the extent that Seller can show that such information (a) is generally available to and known by the public through no fault of Seller, any of its Affiliates or their respective Representatives; or (b) is lawfully acquired by Seller, any of its Affiliates or their respective Representatives from and after the Closing from sources which are not prohibited from disclosing such information by a legal, contractual or fiduciary obligation known to the Seller. If Seller or any of its Affiliates or their respective Representatives are compelled to disclose any information by judicial or administrative process or by other requirements of Law, Seller shall (unless such notification is prohibited by requirement of Law, court order or stock exchange rule) promptly notify Buyer in writing and shall disclose only that portion of such information which Seller is advised by its counsel in writing is legally required to be disclosed, *provided that* that any such notification shall be made promptly to allow Buyer time to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded to such 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)** From and after the Closing, Buyer shall, and shall cause its Affiliates to, hold, and shall use its reasonable best efforts to cause its or their respective Representatives to hold, in confidence any and all confidential or proprietary information, whether written or oral, concerning the Seller, except to the extent that Buyer can show that such information (a) is generally available to and known by the public through no fault of Buyer, any of its Affiliates or their respective Representatives; or (b) is lawfully acquired by Buyer, any of its Affiliates or their respective Representatives from and after the Closing from sources which are not prohibited from disclosing such information by a legal, contractual or fiduciary obligation known to Buyer. If Buyer or any of its Affiliates or their respective Representatives are compelled to disclose any information by judicial or administrative process or by other requirements of Law, Buyer shall (unless such notification is prohibited by requirement of Law, court order or stock exchange rule) promptly notify Seller in writing and shall disclose only that portion of such information which Buyer is advised by its counsel in writing is legally required to be disclosed, provided that that any such notification shall be made promptly to allow Seller time to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded to such 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;**(d)** Notwithstanding the foregoing, nothing shall prevent Buyer or Seller or any of their Affiliates from disclosing this Agreement or any Ancillary Agreements to any regulatory authority for the purposes of obtaining consent to the transfers contemplated in this Agreement or for purposes of pursuing the New CRC Application.

**Section 5.07 Approvals and Consents.**

&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 Party hereto shall, as promptly as possible, (i) make, or cause or be made, all filings and submissions required under any Law applicable to such Party or any of its Affiliates; and (ii) use reasonable best efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that are necessary for its execution and delivery of this Agreement and the performance of its obligations pursuant to this Agreement. Each Party shall cooperate fully with the other Parties and their Affiliates in promptly seeking to obtain all such consents, authorizations, orders and approvals. The parties hereto shall not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of any required consents, authorizations, orders and approvals. Should any Governmental Authority notify the parties in writing that modification to this Agreement or any Ancillary Agreement is required to ensure compliance with any Law, the Parties shall work together in good faith to make such modifications and to take any other actions as requested to ensure compliance with such Law, provided that no Party shall be obligated to agree to a modification that would be materially adverse to 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;**(b)** Seller and the Company shall use reasonable best efforts to give all notices to, and obtain all consents from, all third parties that are described in <u>Schedule 3.05</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;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Without limiting the generality of the Parties' undertakings pursuant to subsections (a) and (b) above, each of the parties hereto shall use all reasonable best efforts to:

i. promptly respond to any inquiries by any Governmental Authority regarding the transactions contemplated by this Agreement;

ii. avoid the imposition of any Governmental Order or the taking of any action that would restrain, alter or enjoin the transactions contemplated by this Agreement or

iii. in the event any Governmental Order adversely affecting the ability of the Parties to consummate the transactions contemplated by this Agreement has been issued, to have such Governmental Order vacated or lifted.

&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 foregoing, nothing in this <u>Section 5.06</u> will require, or be construed to require, Buyer, Seller or any of their Affiliates to agree to (i) sell, hold, divest, discontinue or limit, before or after the Closing Date, any assets, businesses or interests of Buyer, Seller or any of their respective current or potential Affiliates; (ii) any conditions relating to, or changes or restrictions in, the operations of any such assets, businesses or interests which, in either case, could reasonably be expected to result in a Material Adverse Effect or materially and adversely impact the economic or business benefits to Buyer or Seller of the transactions contemplated by this Agreement and any ancillary documents; or (iii) any material modification or waiver of the terms and conditions of this Agreement.

**Section 5.08 Books and Records.**

&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 order to facilitate the resolution of any claims made against or incurred by Seller prior to the Closing, or for any other reasonable purpose, for a period of three years after the Closing Date or such other longer period as required by applicable Law, Buyer shall:

i. retain the books and records (including personnel files) of the Company relating to periods prior to the Closing; and

ii. upon reasonable notice, afford the Representatives of Seller reasonable access (including the right to make, at Seller's expense, photocopies), during normal business hours, to such books and records;

*provided, however*, that any books and records related to Tax matters shall be retained pursuant to the periods set forth in <u>Article VI</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)** Notwithstanding the foregoing, during such period described in <u>Section 5.08(a)</u>, the Seller or the Buyer (as applicable) may dispose of any such books and records after having offered such books and records to the other.

**Section 5.09 Closing Conditions.** During the Interim Period, each Party hereto shall use reasonable best efforts to take such actions as are necessary to expeditiously satisfy the applicable Closing conditions of such party set forth in <u>Article VII</u> hereof.

**Section 5.10 Public Announcements.** Unless otherwise required by applicable Law, no Party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the Buyer and the Seller (which consent shall not be unreasonably withheld, conditioned or delayed), and the parties shall cooperate as to the timing and contents of any such announcement. Notwithstanding the foregoing, nothing in this <u>Section 5.10</u> will prevent any Party or its Representatives from making any press release or other disclosure required by Law or the rules of any stock exchange, in which case the Party required to make such press release or other disclosure shall use commercially reasonable efforts to allow the other Party reasonable time to review and comment on such release or disclosure in advance of its issuance.

**Section 5.11 Further Assurances.** Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

**Section 5.12 Corporate Agent Indemnification**. From and after the Closing for a period of six (6) years, the Buyer shall not, and shall not permit the Company to amend, repeal or modify any provision of its certificate of incorporation or the Company's organizational documents relating to the exculpation or indemnification of any current or former corporate agent in a manner that would have any adverse effect on the exculpation or indemnification of any such person set forth in therein (unless required by applicable Laws). If the Company (i) consolidates with, or merges into, any other entity, or (ii) transfers all or substantially all of its properties and assets to any entity then the Buyer shall cause proper provision to be made so that any such successor or assign of the Company shall expressly assume all of the obligations set forth in this <u>Section 5.12</u>. This <u>Section 5.12(a)</u> is intended for the benefit of, and is enforceable by, each current and former corporate agent of the Company, and his or her heirs, executors, legal representatives, successors and assigns, as applicable, and is in addition to, and not in substitution for, any other rights to indemnification or contribution that any such person may have had by contract, under applicable law, or otherwise. It is hereby acknowledged and agreed that each current or former corporate agent described herein is an intended third party beneficiary of this <u>Section 5.12(a)</u>, may enforce the provisions of this <u>Section 5.12(a)</u> and this <u>Section 5.12(a)</u> may not be amended without the prior written consent of each such Person.

**Section 5.13 RELEASE.** EFFECTIVE AS OF THE CLOSING, THE SELLER DOES FOR ITSELF AND EACH OF ITS AFFILIATES, HEIRS, BENEFICIARIES, SUCCESSORS AND ASSIGNS, IF ANY, RELEASE AND ABSOLUTELY FOREVER DISCHARGE THE COMPANY, THE BUYER, AND ITS PAST, PRESENT AND FUTURE EQUITY HOLDERS, REPRESENTATIVES, AFFILIATES, PREDECESSORS, SUCCESSORS AND ASSIGNS (EACH, A "**COMPANY RELEASED PARTY**") FROM AND AGAINST ALL RELEASED MATTERS. FOR PURPOSES HEREOF, "**RELEASED MATTERS**" REFERS TO ANY AND ALL CLAIMS, DEMANDS, DAMAGES, DEBTS, LIABILITIES, OBLIGATIONS, COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION, ATTORNEYS' AND ACCOUNTANTS' FEES AND EXPENSES), ACTIONS AND CAUSES OF ACTION OF ANY NATURE WHATSOEVER, WHETHER NOW KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, THAT THE BUYER NOW HAS, OR AT ANY TIME PREVIOUSLY HAD, OR SHALL OR MAY HAVE IN THE FUTURE, ARISING BY VIRTUE OF OR IN ANY MATTER RELATED TO ANY ACTIONS OR INACTIONS WITH RESPECT TO ANY RELEASED PARTY ON OR BEFORE THE CLOSING DATE; PROVIDED THAT, RELEASED MATTERS SHALL NOT INCLUDE ANY RIGHT PURSUANT TO THIS AGREEMENT OR ANY ANCILLARY AGREEMENT. IT IS THE INTENTION OF THE SELLER BY EXECUTING THIS RELEASE, AND BY GIVING AND RECEIVING THE CONSIDERATION CALLED FOR HEREIN, THAT THE RELEASE CONTAINED IN THIS <u>SECTION 5.13</u> SHALL BE EFFECTIVE AS A FULL AND FINAL ACCORD AND SATISFACTION AND GENERAL RELEASE OF AND FROM ALL RELEASED MATTERS AND THE FINAL RESOLUTION BY THE SELLER AND THE COMPANY RELEASED PARTIES OF ALL RELEASED MATTERS. THE SELLER HEREBY REPRESENTS THAT IT HAS NOT VOLUNTARILY OR INVOLUNTARILY ASSIGNED OR TRANSFERRED OR PURPORTED TO ASSIGN OR TRANSFER TO ANY PERSON ANY RELEASED MATTERS AND THAT NO PERSON OTHER THAN THE SELLER HAS ANY INTEREST IN ANY RELEASED MATTER BY LAW OR CONTRACT BY VIRTUE OF ANY ACTION OR INACTION BY THE SELLER. THE SELLER HEREBY IRREVOCABLY COVENANTS TO REFRAIN FROM, DIRECTLY OR INDIRECTLY, ASSERTING ANY RELEASED CLAIM OR AIDING, ASSISTING, COMMENCING, INSTITUTING OR CAUSING TO BE COMMENCED ANY ACTION OF ANY KIND AGAINST ANY OF THE RELEASED PARTIES BASED UPON ANY MATTER PURPORTED TO BE RELEASED HEREBY. THE INVALIDITY OR UNENFORCEABILITY OF ANY PART OF THIS <u>SECTION 5.13</u> SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF THE REMAINDER OF THIS <u>SECTION 5.13</u>, WHICH SHALL REMAIN IN FULL FORCE AND EFFECT.

**ARTICLE VI.** 

**TAX MATTERS**

**Section 6.01 Tax Covenants of the Company.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** <u>Transfer Taxes</u>. All Transfer Taxes (including any penalties and interest) incurred in connection with this Agreement (including any real property transfer Tax and any other similar Tax) shall be borne by Seller. Seller shall timely file any Tax Return with respect to Transfer Taxes, and Buyer shall cooperate with respect thereto as necessary. All reasonable out-of-pocket costs for the preparation and filing of such Tax Returns shall be borne by Seller. If required by applicable Law, Buyer will, and will cause its Affiliates to, join in the execution of any such Tax Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>Responsibility and Obligation for Taxes (General)</u>. All Tax liabilities of the Company that are attributable to a Pre-Closing Tax Period shall be the economic and legal responsibility and obligation of Seller. All Tax liabilities of the Company that are attributable to a Post-Closing Tax Period shall be the economic and legal responsibility and obligation of Buyer, except as otherwise provided under <u>Section 6.01(a)</u>. If any Party pays any Taxes which are the economic responsibility or obligation of another Party under this <u>Section 6.01</u>, such other Party shall promptly reimburse the payor Party for the Taxes paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** <u>Intended Tax Treatment</u>. Seller and Buyer have entered into this Agreement so that Seller shall sell to Buyer all of Seller's right, title, and interest in and to Company Shares, free and clear of all Encumbrances, for the consideration specified herein on the Closing Date (the "**Intended Tax Treatment**"). Seller and Buyer have no intention to share profits and/or losses, conduct business in their joint names, or otherwise create a partnership or similar arrangement for Tax purposes. Seller and Buyer shall use their best efforts to prevent any characterization of the transactions contemplated by this Agreement as resulting in the creation of a partnership or similar arrangement. In the event that any Governmental Authority seeks to characterize any of the transactions contemplated by this Agreement other than in accordance with the Intended Tax Treatment (a "**Recharacterization**"), any Taxes, Tax Returns or Transaction Expenses resulting from such Recharacterization shall be the responsibility and obligation of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** <u>Cooperation</u>. Seller and Buyer shall provide each other with such cooperation and information as either of them reasonably may request of the other in filing any Tax Return pursuant to this <u>Section 6.01</u> or in connection with any proceeding in respect of Taxes of the Company, including providing copies of relevant Tax Returns and accompanying documents. Seller shall retain all Tax Returns and other documents in its possession relating to Tax matters of the Company for any Pre-Closing Tax Period (collectively, "**Tax Records**") until the expiration of the statute of limitations of the taxable period(s) to which such Tax Records relate plus sixty (60) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** <u>Straddle Period Allocations</u>. For purposes of this Agreement, (i) in the case of any Taxes other than (x) gross receipts, sales or use Taxes, (y) Taxes based upon or related to income and (z) Transfer Taxes, the amount of any Taxes allocable to the Pre-Closing Tax Period portion of any Straddle Period shall be deemed to include the amount of such Taxes for the entire Straddle Period multiplied by a fraction the numerator of which is the number of days in the Straddle Period ending on and including the Closing Date and the denominator of which is the number of days in the entire Straddle Period, and (ii) in the case of any gross receipts, sales or use Tax and any Taxes based upon or related to income, the amount of any Taxes allocable to the Pre-Closing Tax Period portion of any Straddle Period shall be deemed to include the amount that would be payable if the relevant taxable period ended on and included the Closing Date; provided that (1) the taxable year of any subsidiary or former subsidiary of the Company that is a "controlled foreign corporation" (as defined in the Code) shall be deemed to have closed on the Closing Date, including for purposes of computing any inclusion under Sections 951, 951A and 956 of the Code, (2) the taxable period of any partnership or other pass-through entity in which the Company holds an interest shall be deemed to end on the Closing Date, (3) exemptions, allowances or deductions that are calculated on an annual basis (including depreciation and amortization) shall be allocated between the period ending on the Closing Date and the period beginning after the Closing Date in proportion to the number of days in each period, and (4) for the avoidance of doubt, any Taxes arising from the transactions contemplated by this Agreement or the other Ancillary Agreements shall be allocated to a Pre-Closing Tax Period. The allocation of Transfer Taxes is governed by <u>Section 6.01(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** <u>Tax Returns</u>. Seller shall prepare, or cause to be prepared, any Tax Returns of the Company for any taxable period ending on or before the Closing Date that are required to be filed after the Closing Date (each, a "**Seller-Prepared Tax Return**"). All Seller-Prepared Tax Returns shall be prepared in accordance with applicable Law. To the extent Seller plans to take a "reasonable basis" reporting position in any Seller-Prepared Tax Return that Section 280E of the Code does not apply to the Company, the Company shall obtain a comprehensive third-party opinion from outside Tax counsel regarding such "reasonable basis" position and shall disclose such position on IRS Form 8275 in each such Seller-Prepared Tax Return. Seller shall provide to Buyer draft copies of such Seller-Prepared Tax Returns, as well as provide reasonable access to the books, records and work papers used to produce and support such Seller-Prepared Tax Returns, at least thirty (30) days prior to the filing date for any income tax returns, and fifteen (15) days prior to the filing deadline for any other Tax Returns, and permit Buyer to review and comment on each such Seller-Prepared Tax Return prior to filing. Seller shall incorporate such revisions to such Seller-Prepared Tax Returns as are reasonably requested by Buyer that are in accordance with the most recent tax practices of the Company and in accordance with applicable Law, and shall thereafter file such Tax Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** <u>Tax Contests</u>.

i. In the event that Buyer receives any written notice of a threatened or pending audit, examination or other administrative or judicial proceeding, contest, assessment, notice of deficiency, or other adjustment or proposed adjustment relating to any and all Taxes or Tax Returns of the Company for any Pre-Closing Tax Period (other than Taxes or Tax Returns governed by <u>Section 6.01(g)(ii)</u>) (each, a "**Pre-Closing Tax Contest** "), Buyer will promptly notify Seller in writing thereof. Seller shall be entitled (but shall not have the duty) to control the defense (at Seller's own cost and expense) of any Pre-Closing Tax Contest; provided, however, that (i) Buyer shall have the exclusive right to require the Company to make a "push out" election under Section 6226 of the Code (or any similar state or local law) with respect to any such Pre-Closing Tax Contest, to the extent the Partnership Tax Audit Rules apply, (ii) Buyer shall have the right to participate in any Pre-Closing Tax Contest and to employ counsel of their choice for such purpose and (iii) Seller shall not settle, compromise or concede any such Pre-Closing Tax Contest without the prior written consent of Buyer, which consent shall not be unreasonably conditioned, withheld or delayed. In the case of any Pre-Closing Tax Contest that Seller has the right to control but does not elect to control pursuant to this <u>Section 6.01(g)(i)</u>, Buyer shall control the defense of any such Pre-Closing Tax Contest (at Seller's sole cost and expense); provided, however, that (i) Seller shall have the right to participate in any such Pre-Closing Tax Contest and to employ counsel of its choice for such purpose and (ii) Buyer shall not settle, compromise or concede any such Pre-Closing Tax Contest that affects Seller without the prior written consent of Seller, which consent shall not be unreasonably conditioned, withheld or delayed.

ii. In the event that Buyer receives any written notice of a threatened or pending audit, examination or other administrative or judicial proceeding, contest, assessment, notice of deficiency, or other adjustment or proposed adjustment relating to any and all Taxes or Tax Returns of the Company for any Straddle Period (each, a "**Straddle Period Tax Contest** "), Buyer will promptly notify Seller in writing thereof. Buyer shall have the right to control any such Straddle Period Tax Contest (at its own cost and expense). Seller shall be entitled (at its own cost and expense), but shall not have the duty, to participate in any such Straddle Period Tax Contest and to employ counsel of its choice for such purpose, and Buyer shall consider Seller's comments with respect to such Straddle Period Tax Contest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** <u>Tax Refunds</u>. All refunds of Taxes that are realized and received by the Company for any Pre-Closing Tax Period that were not included in any adjustment to consideration hereunder, shall be for the benefit of Seller. To the extent that the Company or Buyer receives any such refund, Buyer shall pay to Seller, the amount of such refund (without interest, other than interest received from the relevant Taxing Authority), net of any reasonable out-of-pocket expenses and any Taxes that Buyer or the Company incur with respect to such refund. The net amount due to Seller shall be payable within ten (10) days after receipt of the refund by Buyer or the Company, as applicable, from the relevant Taxing Authority. If, after issuing such a refund, the relevant Taxing Authority demands repayment of all or a portion of such amount from the Company, Buyer shall promptly notify Seller in writing thereof, and Seller shall pay such amount (including any penalties and interest thereon, as calculated and assessed by the relevant Taxing Authority) to Buyer or the Company within ten (10) days after receipt of such notification from Buyer; provided, that if Seller does not pay such amount to Buyer or the Company, as applicable, within ten (10) days after receipt of such notification from Buyer, Buyer may offset such amount against any other amount then or thereafter payable by Buyer or the Company to Seller hereunder, and any portion of such amount not so offset or paid shall accrue interest, payable by Seller to Buyer or the Company, as applicable, at the applicable short-term federal rate for the relevant period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** <u>Cancellation of Tax-Sharing Agreements</u>. Prior to the Closing Date, Seller shall have caused the Company to cancel, or otherwise terminate its participation in, any Tax-sharing, allocation or indemnification agreement or any similar arrangement to which it previously had been a party or bound.

**Section 6.02 Tax Indemnification**. After the Closing, Seller's indemnification obligations in respect of Taxes shall be as set forth in <u>Article VIII</u>.

**Section 6.03 Cooperation and Exchange of Information**. Seller and Buyer shall provide each other with such cooperation and information as either of them reasonably may request of the other in filing any Tax Return pursuant to this <u>Article VI</u> or in connection with any audit or other proceeding in respect of Taxes of the Company. Such cooperation and information shall include providing copies of relevant Tax Returns or portions thereof, together with accompanying schedules, related work papers and documents relating to rulings or other determinations by tax authorities. Each of Seller and Buyer shall retain all Tax Returns, schedules and work papers, records and other documents in its possession relating to Tax matters of the Company for any taxable period beginning before the Closing Date until the expiration of the statute of limitations of the taxable periods to which such Tax Returns and other documents relate, without regard to extensions except to the extent notified by the other party in writing of such extensions for the respective Tax periods. Prior to transferring, destroying or discarding any Tax Returns, schedules and work papers, records and other documents in its possession relating to Tax matters of the Company for any taxable period beginning before the Closing Date, Seller or Buyer (as the case may be) shall provide the other party with reasonable written notice and offer the other party the opportunity to take custody of such materials.

**Section 6.04 Survival**. Notwithstanding anything in this Agreement to the contrary, the provisions of this <u>Article VI</u> shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus 60 days.

**ARTICLE VII.**

**CONDITIONS TO CLOSING**

**Section 7.01 Conditions to Obligations of All Parties.** The obligations of each party to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing, of each of the following 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;**(a)** Full and complete execution of all Ancillary 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;**(b)** No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Governmental Order which is in effect and has the effect of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation of such transactions or causing any of the transactions contemplated hereunder to be rescinded following completion 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)** No Action shall have been commenced against any party, which would prevent the Closing. No injunction or restraining order shall have been issued by any Governmental Authority, and be in effect, which restrains or prohibits any transaction contemplated hereby.

**Section 7.02 Conditions to Obligations of Buyer.** The obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Buyer's waiver, at or prior to the Closing, of each of the following 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;**(a)** The Company and the Seller shall have duly performed and complied in all material respects with all agreements, covenants, and conditions required by this Agreement to be performed or complied with by each such Party prior to or on 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;**(b)** All approvals, consents and waivers that are listed on <u>Schedule 3.05</u> of the Disclosure Schedules, shall have been received, and executed counterparts thereof shall have been delivered to Buyer at or prior to the Closing; *provided* that it is acknowledged and agreed the receipt of the acknowledgment described in <u>Section 2.06(a)</u> from the Township shall satisfy this condition with respect to any consent required by the Township.

&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 shall deliver to Buyer written resignations, effective as of the Closing Date, of all directors and officers 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;**(d)** Buyer shall have received a certificate, dated as of the Closing Date and signed by a duly authorized officer of Seller, that each of the conditions set forth in <u>Section 7.02(a)</u>, <u>Section 7.02(b)</u> and <u>Section 7.02(k)</u> have been satisfied.

&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)** Buyer shall have received a certificate of the President of the Company certifying that attached thereto are true and complete copies of all resolutions adopted by the board of directors of the Company authorizing the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with 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;**(f)** Seller shall have delivered to Buyer a stock power, whereby the Seller will transfer the Company Shares to Buyer or Buyer Designees, substantially in the form attached hereto as <u>Exhibit 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;**(g)** evidence, in a form reasonably acceptable to Buyer, of confirmation from the CRC of the withdrawal by the Company of its current application for a Retailer License from the CRC.

&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)** evidence, in a form reasonably acceptable to Buyer, of the termination of any and all Encumbrances (other than Company Permitted Encumbrances) on the assets or equity of the Company or the 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;**(i)** a Limited Termination and Release Agreement, in a form reasonably acceptable to Buyer, duly executed by each of the Senior Lender and the Seller, pursuant to which the Senior Lender agrees to terminate and release the Senior Lender Lien;

&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)** a payoff letter, in a form reasonably acceptable to Buyer, duly executed by each of the Company and the Contractor, which shall (i) set forth the aggregate amount of all Indebtedness owed to the Contractor by the Company, (ii) provide the wire instructions of the Contractor for payment of such Indebtedness, and (iii) evidence the release of the Construction Lien upon payment of such 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;**(k)** as applicable, with respect to each Person to whom any portion of the Seller Transaction Expenses is owed, true and complete copies of invoices evidencing the amount of such Seller Transaction Expenses owed to such Person and the wire instructions of each such Person to whom Seller Transaction Expenses are owed;

&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)** a good standing certificate of the Company from the State of New Jersey dated within ten (10) days 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;**(m)** an IRS Form W-9 of the Company and the Seller.

&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 Company shall not have any Indebtedness or unpaid Transaction Expenses and the Company shall not have suffered 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;**(o)** The Seller shall have executed a waiver of all transfer restrictions on the Company 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;**(p)** 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 the transactions contemplated hereby.

**Section 7.03 Conditions to Obligations of Seller.** The obligations of Seller and the Company to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Seller's waiver, at or prior to the Closing, of each of the following 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;**(a)** The Buyer shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement to be performed or complied with by it prior to or on the Closing Date.

&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)** Seller shall have received a certificate, dated as of the Closing Date and signed by an authorized officer of Buyer, certifying that (i) each of the conditions set forth in <u>Section 7.03(a)</u>, have been satisfied, and (ii) attached thereto are true and complete copies of all resolutions adopted by the manager and sole member of Buyer authorizing the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with 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;**(c)** Such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to Seller, as may be required to give effect to this Agreement and the transactions contemplated hereby.

**ARTICLE VIII.**

**INDEMNIFICATION**

**Section 8.01 Survival.** The representations and warranties contained herein (other than any representations or warranties contained in <u>Section 3.13</u>, which is subject to <u>Article VI</u>) shall survive the Closing and shall remain in full force and effect until the date that is fifteen (15) months from the Closing Date; *provided, that* (i) the representations and warranties contained in <u>Section 3.13</u> and <u>Section 3.14</u> shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus 60 days and (ii) the representations and warranties in <u>Section 3.01</u>, <u>Section 3.02</u>, <u>Section 3.03</u>, <u>Section 3.04</u>, <u>Section 4.01</u>, <u>Section 4.02</u>, and <u>Section 4.04</u> shall survive and remain in full force and effect until the sixth (6th) anniversary of the Closing Date. All covenants and agreements of the parties contained herein shall survive the Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such representations, warranties or covenants implicated in such claims shall survive until finally resolved. Notwithstanding any other provision of this Agreement, it is the intention of the Parties that the foregoing survival periods and termination dates supersede any statute of limitations applicable to such matter.

**Section 8.02 Indemnification By Seller.** Subject to the other terms and conditions of this <u>Article VIII</u>, from and after Closing, Seller shall indemnify and defend Buyer, Buyer Designees, and their Affiliates (including the Company after the Closing) and their respective Representatives (collectively, the "**Buyer Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, with respect to or by reason of:

&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;

&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;

&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) all Taxes of the Company or relating to the business of the Company for all Pre-Closing Tax Periods; (ii) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which the Company (or any predecessor of the Company) is or was a member on or prior to the Closing Date; and (iii) any and all Taxes of any person imposed on the Company arising under the principles of transferee or successor liability or by Contract, relating to an event or transaction occurring before 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;**(d)** any claim asserted by any current, former or alleged holder of equity in the Company related to such Person's role as an equityholder, including, but not limtied to, any claims with respect to the rights of such Persons to any portion of the Purchase Price; 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;**(e)** Any Seller Transaction Expenses or Indebtedness to the extent not included in the calculation of the Closing Date Consideration or otherwise paid at or prior to the Closing.

**Section 8.03 Indemnification By Buyer.** Subject to the other terms and conditions of this <u>Article VIII</u>, from and after Closing, Buyer shall indemnify and defend each of Seller and its respective Affiliates and each of their respective Representatives (collectively, the "**Seller Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason 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;**(a)** any inaccuracy in or breach of any of the representations or warranties of Buyer contained 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;**(b)** any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant 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;**(c)** all Taxes related to a Post-Closing Tax Period.

**Section 8.04 Indemnification Procedures.** The party making a claim under this <u>Article VIII</u> is referred to as the "**Indemnified Party**", and the party against whom such claims are asserted under this <u>Article VIII</u> is referred to as the "**Indemnifying 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;**(a)** <u>Third-Party Claims</u>. If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing (a "**Third-Party Claim**") against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third-Party Claim at the Indemnifying Party's expense and by counsel selected by the Indemnifying Party (who shall be reasonably satisfactory to the Indemnified Party) *provided*, that prior to the Indemnifying Party assuming control of such defense it shall first verify to the Indemnified Party in writing that such Indemnifying Party shall provide indemnification for all Losses relating to such claim for indemnification subject only to the applicable monetary limitations set forth in this <u>Article VIII</u>; *provided, that* such Indemnifying Party shall not have the right to defend or direct the defense of any such Third-Party Claim that (i) is asserted directly by or on behalf of a Person that is a supplier or customer of the Indemnified Party or its Affiliates; (ii) relates to or arises in connection with any criminal or quasi criminal proceeding, action, indictment, allegation or investigation or is with respect to Taxes; (iii) the Indemnified Party reasonably believes an adverse determination with respect to the action, lawsuit, investigation, proceeding or other claim giving rise to such claim for indemnification would be detrimental to or injure the Indemnified Party's reputation or future business prospects; (iv) the Indemnified Party has been advised by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified Party; (v) the Indemnified Party reasonably believes that the Losses relating to such claim could exceed the maximum amount that the Indemnified Party would then be entitled to recover under the applicable provisions of this <u>Article VIII</u> or (vi) seeks an injunction or other equitable relief against the Indemnified Party. In the event that the Indemnifying Party assumes the defense of any Third-Party Claim, subject to <u>Section 8.04(b)</u>, it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third-Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defense of any Third-Party Claim with counsel selected by it subject to the Indemnifying Party's right to control the defense thereof. The fees and disbursements of such counsel of the Indemnified Party shall be at the expense of the Indemnified Party, *provided, that* (i) the Indemnified Party controls the defense of a Third-Party Claim, (ii) the Indemnifying Party failing to diligently vigorously prosecute or defend such Third-Party Claim, claim; (iii) there are legal defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party; then in each such case, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party. If the Indemnifying Party elects not to compromise or defend such Third-Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, is not permitted hereunder to control the defense of such Third-Party Claims or fails to diligently prosecute the defense of such Third-Party Claim, the Indemnified Party may, subject to <u>Section 8.04(b)</u>, pay, compromise, defend such Third-Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third-Party Claim. The parties shall cooperate with each other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available records relating to such Third-Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the Party controlling such defense, employees of the Party not controlling the defense as may be reasonably necessary for the preparation of the defense of such Third-Party 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;**(b)** <u>Settlement of Third-Party Claims</u>. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third-Party Claim without the prior written consent of the Indemnified Party, except as provided in this <u>Section 8.04(b)</u>. If a firm offer is made to settle a Third-Party Claim without leading to Liability or the creation of a financial or other Liability and/or Loss on the part of the Indemnified Party and provides, in customary form, for the unconditional release of the Indemnified Party from all Liabilities, Losses and obligations in connection with such Third-Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within 10 days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third-Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third-Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third-Party Claim, the Indemnifying Party may settle such Third-Party Claim upon the terms set forth in such firm offer to settle such Third-Party Claim. If the Indemnified Party has assumed the defense pursuant to <u>Section 8.04(a)</u>, it shall not agree to any settlement without the written consent of the Indemnifying Party (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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** <u>Direct Claims</u>. Any Action by an Indemnified Party on account of a Loss which does not result from a Third-Party Claim (a "**Direct Claim**") shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its Representatives to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party's investigation by giving such information and assistance (including access to the its premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its Representatives may reasonably request. If the Indemnifying Party notifies the Indemnified Party that it does not dispute the Direct Claim described in such notice or fails to notify the Indemnified Party within thirty (30) days after delivery of such notice by the Indemnified Party whether the Indemnifying Party disputes the Direct Claim described in such notice, the Loss in the amount specified in the Indemnified Party's notice shall be conclusively deemed a Liability of the Indemnifying Party, and the Indemnifying Party shall pay the amount of such Loss to the Indemnified Party on demand in accordance with the terms hereof. If the Indemnifying Party gives notice that it disputes such Direct Claim within such 30-day period, the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

&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 Claims</u>. Notwithstanding any other provision of this Agreement, the control of any claim, assertion, event or proceeding in respect of Taxes of the Company shall be governed exclusively by <u>Article VI</u> hereof.

**Section 8.05 Payments**. Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this <u>Article VIII</u>, the Indemnifying Party shall satisfy its obligations within 10 days of such agreement or final adjudication by wire transfer of immediately available funds. The parties hereto agree that should an Indemnifying Party not make full payment of any such obligations within such 10 day period, any amount payable shall accrue interest from and including the date of agreement of the Indemnifying Party or final adjudication to the date such payment has been made at a rate per annum equal to 15%. Such interest shall be calculated daily on the basis of a 365/366-day year and the actual number of days elapsed.

**Section 8.06 Tax Treatment of Indemnification Payments.** All indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the consideration paid and received hereunder for Tax purposes, unless otherwise required by Law.

**Section 8.07 Effect of Investigation.** The representations, warranties and covenants of the Indemnifying Party, and the Indemnified Party's right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of the Indemnified Party (including by any of its Representatives) or by reason of the fact that the Indemnified Party or any of its Representatives knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason of the Indemnified Party's waiver of any condition set forth in <u>Section 7.02</u> or <u>Section 7.03</u>, as the case may be.

**Section 8.08 Exclusive Remedies.** Subject to <u>Section 10.11</u>, the parties acknowledge and agree that from and after Closing their sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud on the part of a party hereto in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in <u>Article VI</u> and this <u>Article VIII</u>. In furtherance of the foregoing, except with respect to <u>Section 10.12</u>, each party hereby waives, from and after Closing, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein it may have against the other parties hereto, except pursuant to the indemnification provisions set forth in <u>Article VI</u> and this <u>Article VIII</u>. Nothing in this <u>Section 8.08</u> shall limit any Person's right to seek and obtain any equitable relief to which any Person shall be entitled or to seek any remedy on account of any party's fraud or willful misconduct.

**ARTICLE IX.**

**TERMINATION**

**Section 9.01 Termination**. This Agreement may be terminated 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;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** by the mutual written consent of the Seller and the 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)** by the Buyer, by written notice to the Seller, if the Buyer is not then in breach of any provision of this Agreement or any Ancillary Agreements and there has been a material breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by the Seller or the Company pursuant to this Agreement that would give rise to the failure of any of the closing conditions specified in <u>Section 7.02(a)</u> or <u>Section 7.02(b)</u>, and such material breach, inaccuracy or failure to perform has not been cured by the Seller and/or the Company within thirty (30) days after the Seller's receipt of such written notice of such breach, inaccuracy or failure from 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;**(c)** by Buyer, if there is an occurrence of a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** by the Seller, by written notice to the Buyer, if the Seller is not then in breach of any provision of this Agreement, and there has been material breach of, material inaccuracy in or failure to perform of any representation, warranty, covenant or agreement made by the Buyer under this Agreement that would give rise to the failure of any of the conditions specified in <u>Section 7.03(a)</u> or <u>Section 7.03(b)</u> and such material breach, inaccuracy or failure has not been cured by the Buyer within thirty (30) days after Buyer's receipt of written notice of such breach, inaccuracy or failure to perform from the Seller.

**Section 9.02 Effect of Termination**. In the event of the termination of this Agreement prior to Closing, in accordance with this <u>Article IX</u>, this Agreement shall forthwith become void, and there shall be no further liability on the part of any Party except as set forth in this <u>Section 9.02</u> and nothing herein shall relieve any Party from liability for fraud or any willful or intentional breach of any provision hereof. The provisions of the Confidentiality Agreement shall survive any termination of this Agreement.

**ARTICLE X.**

**MISCELLANEOUS**

**Section 10.01 Expenses.** All costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred. To the extent any Seller Transaction Expenses remain unpaid at or following the Closing, the Seller shall pay all such Seller Transaction Expenses; Buyer shall be solely responsible for its Transaction Expenses.

**Section 10.02 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 <u>Section 10.02</u>):

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| | |
|:---|:---|
| If to Seller: | DEP Nevada, Inc.<br> 6420 Sunset Corporate Drive<br> Las Vegas, NV 89120<br> Attn: Stephen 'Trip' Hoffman<br> Email: triphoffman@bodyandmind.com |
| With a copy to: | Rimon Law<br> 2029 Century Park East, Suite 400N<br> Los Angeles, CA 90067<br> Attn: Lukian Kobzeff<br> Email: lukian.kobzeff@rimonlaw.com |
| If to Buyer: | Ascend New Jersey, LLC<br> 1411 Broadway, 16<sup>th</sup> Floor<br> New York, New York 10018<br> E-mail: fperullo@awholdings.com<br> Attention: Frank Perullo |
| With a copy to: | Foley Hoag LLP<br> 155 Seaport Boulevard<br> Boston, MA 02210<br> Attention: Erica Rice<br> E-mail: erice@foleyhoag.com |

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**Section 10.03 Interpretation.** For purposes of this Agreement, (a) the words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation"; (b) the word "or" is not exclusive; and (c) the words "herein," "hereof," "hereby," "hereto" and "hereunder" refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement.

**Section 10.04 Headings.** The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 10.05 Severability.** If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto 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.

**Section 10.06 Entire Agreement.** This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

**Section 10.07 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. No party may assign its rights or obligations hereunder without the prior written consent of Buyer and the Seller (in each of their sole discretion). No assignment shall relieve the assigning party of any of its obligations hereunder.

**Section 10.08 No Third-Party Beneficiaries.** Except as provided in <u>Section 5.11</u>, <u>5.12</u>, <u>5.13</u>, and <u>Article VIII</u>, 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 10.09 Amendment and Modification; Waiver.** This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. 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 10.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.**

&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 Agreement shall be 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.

&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 ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE COURTS OF THE COUNTY OF ESSEX, NEW JERSEY, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY'S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** EACH PARTY 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, THE OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <u>SECTION 10.10(c)</u>.

**Section 10.11 Equitable Relief**

&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 hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached, and that money damages or legal remedies would not be an adequate remedy for any such damages. Therefore, it is accordingly agreed that, subject to <u>Section 10.11(b)</u>, each party shall be entitled to enforce specifically the terms and provisions of this Agreement in the court described in <u>Section 10.10(b)</u>, *provided*, that if jurisdiction is not then available in such court, then in any state court located in the State of New Jersey, or to enforce compliance with, the covenants and obligations of any other party, in any court of competent jurisdiction, and appropriate injunctive relief shall be granted in connection therewith. Any party seeking an injunction, a decree or order of specific performance shall not be required to provide any bond or other security in connection therewith. To the extent any party hereto brings an Action to enforce specifically the performance of the terms and provisions of this Agreement (other than an Action to enforce specifically any provision that by its terms requires performance after the Closing or expressly survives termination of this Agreement), the date of the termination of this Agreement shall automatically be extended to (i) the twentieth (20th) Business Day following the resolution of such Action or (ii) such other time period established by the court presiding over such 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;**(b)** The remedies available to the Company and Seller pursuant to this <u>Section 10.11</u> will be in addition to any other remedy to which they are entitled at law or in equity. It is acknowledged and agreed that Seller shall be entitled to seek specific performance of the obligation of the Buyer to cause the consummation of the transactions contemplated hereby. For the avoidance of doubt, in no event shall Seller be entitled to receive both a grant of specific performance and any monetary damages hereunder.

**Section 10.12 Counterparts.** This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

**Section 10.13 Prevailing Party.** In the event of any dispute with regard to this Agreement, the prevailing party shall be entitled to receive from the non-prevailing party and the non-prevailing party shall pay upon demand all reasonable fees and expenses of counsel for the prevailing party.

**Section 10.14 Federal Cannabis Laws**. The Parties hereby acknowledge that the production, sale, manufacture, possession, and use of cannabis is illegal under U.S. Federal Cannabis Laws, including the aiding and abetting of a person engaging in such activities, making a loan to a company engaging in such activities and entering into a transaction with a company engaging in such activities. The Parties hereby further acknowledge that some or all of the transactions contemplated herein may violate or be in violation of U.S. Federal Cannabis Laws. Notwithstanding anything in this Agreement to the contrary, the Parties agree and acknowledge that no party makes, will make, or will be deemed to make or have made any representation or warranty of any kind regarding the compliance of this Agreement with any U.S. Federal Cannabis Laws. No party will have any right of rescission or amendment arising out of or relating to any non-compliance with U.S. Federal Cannabis Laws unless such non-compliance also constitutes a violation of applicable state law as determined in accordance with the cannabis Laws of the State of New Jersey or by the guidance or instruction of the CRC. The Parties hereby expressly waive any defense to the enforcement of the terms and conditions of this Agreement based upon non-conformance with or violation of applicable laws relating to cannabis and the cannabis industry and acknowledge that no such cannabis-related violations of any U.S. Federal Cannabis Laws shall render this Agreement, the other Ancillary Agreements, or any of the terms and conditions there of null, void, or otherwise unenforceable, to the extent permitted by New Jersey Law.

**Section 10.15 Disclosure Schedules**. All section headings in the Disclosure Schedules correspond to the sections of this Agreement, but information provided in any section of the Disclosure Schedules shall constitute disclosure for purposes of each section of this Agreement where such information is relevant. Unless the context otherwise requires, all capitalized terms used in the Disclosure Schedules shall have the respective meanings assigned to such terms in this Agreement. Certain information set forth in the Disclosure Schedules is included solely for informational purposes, and may not be required to be disclosed pursuant to this Agreement. No disclosure in the Disclosure Schedules relating to any possible breach or violation of any agreement or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred. The inclusion of any information in the Disclosure Schedules shall not be deemed to be an admission or acknowledgment by Seller that in and of itself, such information is material to or outside the ordinary course of the business or is required to be disclosed on the Disclosure Schedules. No disclosure in the Disclosure Schedules shall be deemed to create any rights in any third party.

**Section 10.16 Non Recourse**. This Agreement may only be enforced against, and any claim, Action, suit, or other legal proceeding based upon, arising out of, or related to this Agreement or any Ancillary Agreement, or the negotiation, execution, or performance of this Agreement or any Ancillary Agreement, may only be brought against the Parties hereto (including any party to whom the rights or obligations hereunder are assigned or any successor to a Party hereto) and then only with respect to the specific obligations set forth herein with respect to such Party. No past, present, or future director, officer, employee, incorporator, manager, member, partner, stockholder, Affiliate, agent, attorney, or other Representative of the Parties or of any Affiliate of the Parties, or any of their successors or permitted assigns (collectively, the "**Non-Party Affiliates**"), shall have any Liability for any obligations or Liabilities of any Party hereto under this Agreement or for any claim, Action, suit, or other legal proceeding based on, in respect of or by reason of the transactions contemplated hereby. This <u>Section 10.16</u> is intended for the benefit of, and shall be enforceable by, each of the Non-Party Affiliates.

**[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/representatives.

**BAM BODY AND MIND DISPENSARY NJ, INC.** 

By: *<u>/s/ Stephen 'Trip' Hoffman</u>*

Name: Stephen 'Trip' Hoffman

Title: President

**DEP NEVADA, INC.** 

By: *<u>/s/ Stephen 'Trip' Hoffman</u>*

Name: Stephen 'Trip' Hoffman

Title: President

**ASCEND NEW JERSEY, LLC**

By: *<u>/s/ Frank Perullo</u>*_______

Name: Frank Perullo

Title: Secretary

**<u>EXHIBIT A</u>**

**ESCROW AGREEMENT**

**<u>EXHIBIT B</u>**

**BUYER SHARE PERCENTAGE**

---

| | | |
|:---|:---|:---|
| <br> **<u>Buyer</u>**<br>| <br> **<u># of Company Shares Acquired</u>**<br>| <br> **<u>% of Company Shares Acquired</u>**<br>|
| <br> Ascend New Jersey, LLC<br>| <br> 35000<br>| <br> 35%<br>|
| <br> Buyer Designee<br>| <br> 65000<br>| <br> 65%<br>|

---

**<u>EXHIBIT C</u>**

**ASSIGNMENT OF SELLER'S INTERESTS**

**STOCK POWER**

**BAM BODY AND MIND DISPENSARY NJ, INC.**

**FOR VALUE RECEIVED**, pursuant to the terms of that certain Stock Purchase Agreement, dated the ____, 2025, by and between DEP Nevada, Inc. ("**Assignor**") and [__] ("**Assignee**") and the other parties thereto, Assignor hereby sells, assigns, transfers and conveys all right, title and interest in and to [__] of the outstanding common shares ("**Shares**") in BaM Body and Mind Dispensary NJ, Inc. (the "**Company**") to Assignee, which for the avoidance of doubt, represents [__]<sup>1</sup>% of the total outstanding shares of the Company. Assignor hereby irrevocably constitutes and appoints Assignee as Assignor's attorney-in-fact with full power of substitution in the premises to transfer the same on the books of the Company.

**IN WITNESS WHEREOF**, the undersigned have executed this Stock Power the ____ day of [__], 2025.

***<u>ASSIGNOR</u>***<br>DEP Nevada, Inc.<br>By: _______________________________<br> Name: _____________________________<br> Title: ______________________________<br>

_____________________

<sup>1</sup>**Note to Draft**: To be updated for each Buyer.

**<u>ACCEPTANCE</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;The undersigned hereby accept the foregoing transfer of the Shares.

***<u>ASSIGNEE</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;_______________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:

**<u>EXHIBIT D</u>**

**SELLER OPTION EXERCISE NOTICE**

**NOTICE OF SELLER OPTION EXERCISE**

(To be signed only upon exercise of Seller Option)

To: Ascend New Jersey, LLC 1411 Broadway, 16<sup>th</sup> Floor New York, New York 10018 E-mail: fperullo@awholdings.com Attention: Frank Perullo [__]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEP Nevada, Inc. (the "**Seller**"), hereby irrevocably elects to exercise the purchase right represented by such Seller Option, in accordance with Section 5.02 of that certain Stock Purchase Agreement, by and between BaM Body and Mind Dispensary NJ, Inc. (the "**Company**"), the Seller, and Ascend New Jersey, LLC, dated as of [__], 2025, for, and to purchase thereunder, 100% of the outstanding equity interests of the Company as of the date hereof (the "**Seller Option Interests**"), and herewith makes payment of $1 therefor, and requests that the Seller Option Interests be issued in the name of, and delivered to, the Seller.

**DEP NEVADA, INC.** <br>By:____________________________<br>Name: _________________________<br>Title: __________________________<br>

**<u>EXHIBIT E</u>**

**ASSIGNMENT OF BUYER'S INTERESTS**

**STOCK POWER**

**BAM BODY AND MIND DISPENSARY NJ, INC.**

**FOR VALUE RECEIVED**, pursuant to the terms of that certain Stock Purchase Agreement, dated the ____, 2025, by and between [__] ("**Assignor**") and DEP Nevada, Inc. ("**Assignee**") and the other parties thereto, Assignor hereby sells, assigns, transfers and conveys all right, title and interest in and to [__] of the outstanding common shares ("**Shares**") in BaM Body and Mind Dispensary NJ, Inc. (the "**Company**") to Assignee, which for the avoidance of doubt, represents [__]<sup>2</sup>% of the total outstanding shares of the Company. Assignor hereby irrevocably constitutes and appoints Assignee as Assignor's attorney-in-fact with full power of substitution in the premises to transfer the same on the books of the Company.

**IN WITNESS WHEREOF**, the undersigned have executed this Stock Power the ____ day of [__].

***<u>ASSIGNOR</u>***<br>[__] <br>By: _______________________________<br> Name: _____________________________<br> Title: ______________________________<br>

_____________________

<sup>2</sup>**Note to Draft**: To be updated for each Buyer.

**<u>ACCEPTANCE</u>**

The undersigned hereby accepts the foregoing transfer of the Shares.

***<u>ASSIGNEE</u>***

**DEP NEVADA, INC.**

_______________________________

Name:

Title:

## Exhibit 10.3

**EXHIBIT 10.3**

**LIMITED TERMINATION & RELEASE OF SECURITY AGREEMENT**

This limited termination and release of the security agreement (the "**Termination**") is made and entered into on August 22, 2025 (the "**Execution Date**"), by and between Body and Mind Inc., a Nevada corporation (the "**Grantor**"), Bengal Catalyst Fund, LP, a Delaware limited partnership, and BAM I, A Series of Bengal Catalyst Fund SPV, LP (collectively, the "**Secured Party**"). Grantor and Secured Party are hereinafter sometimes referred to together as the "**Parties**" and individually as a "**Party**." Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Security Agreement.

WHEREAS, Grantor and Secured Party entered into that certain security agreement, dated October 24, 2024 (the "**Security Agreement**") wherein the Grantor granted and pledged all its right, title, and interest in the Collateral to the Secured Party to secure the Obligations arising under that certain non-revolving credit facility agreement, dated October 24, 2024, as amended by that first amendment dated April 7, 2025 (the "**Loan Agreement**") between the Secured Party (as lender) and Company (as borrower);

WHEREAS, the Grantor's wholly owned subsidiary, DEP Nevada, Inc., a Nevada corporation ("**DEP**") is entering into that certain purchase agreement (the "**Purchase Agreement**") with Ascend New Jersey, LLC, (the "**Purchaser**") wherein DEP is selling 100% of the equity interests (the "**Subject Equity**") of BaM Body and Mind Dispensary NJ, Inc., a New Jersey corporation (the "**Company**"), to the Purchaser;

WHEREAS, a closing condition of the Purchase Agreement is that the Subject Equity is sold, transferred, and conveyed to Purchaser free and clear of all liens and security interests;

WHEREAS, the Secured Party consents to the Purchase Agreement and the transfer of the Subject Equity contemplated thereby, and agrees to terminate and release the Subject Equity, the Company and any Collateral held, owned, leased, or used by the Company (collectively, the "**Released Collateral**") from the Security Agreement and the other Loan Documents;

WHEREAS, Grantor and Secured Party desire to terminate the Security Agreement with respect to the Released Collateral and to fully release and relinquish any and all security interests in and obligations of the Released Collateral under the Security Agreement;

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

1. <u>Consent</u>. By executing this Termination, as of the Execution Date, the Secured Party hereby grants its express consent to the Purchase Agreement and the transaction contemplated therein.

2. <u>Effective Date; Irrevocable</u>. This Termination shall become effective on the Closing Date (as defined in the Purchase Agreement) of the Purchase Agreement (such date being the "**Effective Date**" of this Termination). This Termination shall automatically become effective on the Effective Date without any further act or signature required by any Party. This Termination shall be irrevocable until the earlier of the (i) termination of the Purchase Agreement, or (ii) July 31, 2027.

3. <u>Termination.</u> As of the Effective Date, the Released Collateral is hereby fully released from the Security Agreement and any other interest of the Secured Party. The Grantor is hereby released from any and all covenants and obligations under the Security Agreement and other Loan Documents with respect to the Released Collateral. On the Closing Date of the Purchase Agreement, the Subject Equity shall be transferred and conveyed to Purchaser free and clear of the Security Agreement and the other Loan Documents and all other Released Collateral shall be free and clear of the Security Agreement and the other Loan Documents.

4. <u>Release of Released Collateral</u>. To the extent the Secured Party filed UCC-1 Financing Statements in connection with the Released Collateral, the Secured Party shall properly file and record the UCC Financing Statement Amendment (Form UCC-3) in each applicable jurisdiction, terminating all security interests in and to the Released Collateral and provide a file stamped copy to Grantor. The Secured Party further agrees that each of Grantor and Purchaser, or an agent of either party, is authorized to file such UCC-3 Financing Statements Amendment. Additionally, the Secured Party agrees to provide any other documents requested by Grantor or Purchaser to effectuate the release contemplated hereby, provided that they are consistent with the foregoing. The Secured Party agrees and acknowledges that it shall no longer have any grant of security interest in and to the Released Collateral, and any other continuing security interest in the Subject Equity is hereby terminated.

5. <u>Choice of Law</u>. The terms of this Termination agreement shall be construed in accordance with the laws of the State of Nevada, as applied to agreements entered into by Nevada residents within the State of Nevada, and to be performed entirely within the State of Nevada.

6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This Termination Agreement is intended by the Parties as the final expression of their agreement and understanding with respect to the subject matter hereof, and as a complete and exclusive statement of the provisions thereof. This Termination Agreement supersedes any and all prior or contemporaneous agreements and understandings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Parties hereto shall execute any further documents reasonably necessary to effectuate the terms of this Termination Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. This Termination Agreement is binding upon and inures to the benefit of the parties and their heirs, executors, administrators, successors, and legal representatives. This Termination Agreement may only be modified, amended, restated, or otherwise supplemented only by agreement in writing signed by the Grantor and Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. This Termination Agreement may be executed in two or more counterparts, any one of which need not contain the signatures of all parties, but all of which counterparts when taken together will constitute one and the same agreement.

[*signature page follows*]

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have each caused affixed hereto its or his/her hand and seal the day indicated.

---

| | |
|:---|:---|
| **SECURED PARTY**: | **SECURED PARTY**: |
| Bengal Catalyst Fund, LP | Bengal Catalyst Fund, LP |
| By: | */s/ Joshua N. Rosen* |
| Name: | Joshua N Rosen |
| Title: | Manager |
| BAM I, A Series of Bengal Catalyst Fund SPV, LP | BAM I, A Series of Bengal Catalyst Fund SPV, LP |
| By: | */s/ Joshua N Rosen* |
| Name: | Joshua N Rosen |
| Title: | Manager |
| **GRANTOR:** | **GRANTOR:** |
| Body and Mind Inc. | Body and Mind Inc. |
| By: | */s/ Michael Mills* |
| Name: | Michael Mills |
| Title: | CEO |

---

## Exhibit 10.4

**EXHIBIT 10.4**

ASSIGNMENT AND ASSUMPTION

OF LEASE

<u>AND SECOND AMENDMENT TO LEASE</u> 

This Assignment and Assumption of Lease and Second Amendment to Lease ("**Assignment Agreement**"), made as of the 22<sup>nd</sup> day of August, 2025 (the "**Effective Date**"), by and between BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp., Attention: Chief Operating Officer, with an address at 2625 N Green Valley Parkway, Henderson, NV 89014 ("**Assignor**"), and Ascend New Jersey, LLC, a New Jersey limited liability company, with an address at 44 Whippany Road, Suite 101, Morristown, New Jersey 07960 ("**Assignee**" and sometimes referred to as "**Tenant**"), and Lawrence Investment Group, LLC, with a post office address at 100 Federal City Road, Suite C101, Lawrenceville, New Jersey 08648 ("**Landlord**").

<u>W I T N E S S E T H</u>:

WHEREAS, Landlord and Assignor entered into that certain Lease dated the 18th day of August 2022 (the "**Original Lease**") which was amended by First Amendment to Lease Agreement dated February 14, 2023 (the "**First Amendment**") (the Original Lease as amended by the First Amendment, is collectively referred to as the "**Lease**"; a copy of the Lease is attached hereto as <u>Exhibit "A"</u>) for premises currently occupied by Assignor, commonly known as 3191 U.S. Route 1, Lawrenceville, New Jersey 08648 designated and known as Block 5201.10, Lot 3 of the tax maps of Lawrence Township (the "**Premises**");

WHEREAS, the Lease is guaranteed by that certain Guaranty of Lease ("**Original Guaranty**") dated as of February 14, 2023, made by Body and Mind, Inc., a Nevada corporation ("**Original Guarantor**"), in favor of Landlord.

WHEREAS, Assignor hereby desires to assign the Lease and Assignee hereby desires to assume the Lease, pursuant to the terms and conditions of this Assignment Agreement;

WHEREAS, simultaneously with the execution of this Assignment Agreement, Assignee desires to enter into a Sublease whereby Assignee, as sublandlord will sublease to Assignor, as subtenant of the Premises, pursuant to the terms of that certain Sublease Agreement ("**Sublease**") in the form attached hereto as <u>Exhibit "B"</u>, and Landlord hereby consents to such Sublease.

NOW THEREFORE, in consideration of the foregoing promises, Ten and 00/100 ($10.00) Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby incorporate in this Assignment Agreement the preceding Recital paragraphs as binding on the parties hereto, and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Assignment; Termination of Original Guaranty.

&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, Assignor, for itself and its respective successors and assigns, hereby assigns, conveys, transfers, and sets over to Assignee, all of Assignor's right title and interest in and to the Lease along with all of Assignor's rights, duties and obligations, under the Lease.

&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. Landlord irrevocably agrees that subject to the execution of the Termination of Lease Memorandum by CraftedPlants NJ Corp, in such form as attached hereto as Exhibit E and the execution of a substitute Guaranty by the substitute Guarantor, Ascend Wellness Holdings, Inc., a Delaware Corporation, in such form as attached hereto as Exhibit F as of the Effective Date, the Original Guaranty is hereby terminated as of the Effective Date hereof, that Original Guarantor shall have no further obligations, duties or liabilities thereunder, and the Landlord hereby releases, waives and forever discharges Original Guarantor from all obligations, duties or liabilities of whatever nature arising under or in connection with the Original Guaranty; provided, however, in the event of a Subsequent Assignment pursuant to Section 3 below, this termination shall be null and void and the Original Guaranty with Original Guarantor shall be reinstated in full force and effect as of the Effective Date hereof. Further, under such circumstances that the Original Guaranty is reinstated, the Original Guarantor shall then execute a Guaranty in such form as attached hereto as Exhibit E with only dates and name changes thereto prior to effectiveness of Subsequent Assignment and termination of substitute Guaranty, acknowledging, accepting and consenting to the following: (i) the Assignment Agreement – Asssignment and Assumption of Lease and Second Amendment to Lease – between BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp., Assignor, and Ascend New Jersey, LLC, a New Jersey limited liability company, Assignee; (ii) Sublease Agreement between the Tenant/Sublandlord, Ascend New Jersey, LLC, a New Jersey limited liability company, subsidiary of Guarantor, and Subtenant, BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp.; and, (iii) Subsequent Assignment – Assignment and Assumption of Lease - Sublease Agreement - between the Assignor, Ascend New Jersey, LLC, a New Jersey limited liability company, subsidiary of Guarantor, and Assignee, BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp.

&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 the foregoing, in the event the Original Guaranty is reinstated pursuant to the previous sentence, Assignee shall indemnify, defend and hold harmless Original Guarantor from, any obligations, duties and/or liability arising under the Original Guaranty from the Effective Date through the date of the Subsequent Assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Assumption. Assignee, for itself and its respective successors, heirs and assigns, hereby accepts the foregoing assignment and assumes all of the obligations of Assignor as Tenant under the Lease accruing from and after the Effective Date, and agrees, for the benefit of Assignor, its successors and assigns, and for the benefit of Landlord, its successors and assigns, to pay, perform, discharge when due, and otherwise satisfy in due course all of such obligations and liabilities of the Tenant under and in accordance with the provisions of the Lease from and after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Subsequent Assignment. Simultaneously with the execution of this Assignment Agreement, Assignee has entered that certain Purchase Agreement ("**PA**") with Assignor, and DEP Nevada, Inc. ("**DEP**"), a signed copy of which shall be provided to the Landlord prior to the Landlord's consent to this Assignment Agreement, whereby Assignee, as buyer, purports to purchase from DEP, as seller, one hundred percent (100%) of the stock of Assignor. Subject to and in accordance with the terms of Section 5.02 of the PA, in the event that both (i) the New Jersey Cannabis Regulatory Commission issues a final non-appealable denial ("**CRC Denial**") of New CRC Application (as such term is defined in the PA) of Class 5 Cannabis Retail License following diligent and best efforts to obtain same and (ii) the Company Shares (as such term is defined in the PA) of Assignor are timely re-acquired pursuant to the Seller Option and terms therein (collectively, the "**Subsequent Assignment Conditions**"), then Assignor shall re-assume the Lease, pursuant to an assignment and assumption agreement, in the form attached hereto as <u>Exhibit "C"</u> (the "**Subsequent Assignment**"), which Subsequent Assignment shall be executed and delivered simultaneously with the re-acquisition of the Company Shares and dated to be effective as of the satisfaction of the Subsequent Assignment Conditions. If DEP, as seller, fails to exercise the Seller Option of Section 5.02 of the PA then the Subsequent Assignment shall not be affective and Assignee shall remain as Tenant without release of the substitute Guarantor. To comply with Section 19.01 of the Lease, Landlord hereby consents to and approves such Subsequent Assignment between Assignee (as assignor) and Assignor (as assignee) as contemplated herein. Notwithstanding, Landlord's aforesaid consent as well as the Subsequent Assignment shall not be effective if either Assignor or Assignee is in default of the Lease or this Assignment Agreement or the substitute Guarantor is in default of the substitute Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. No Default; Construction Lien. Assignor hereby represents and warrants to Assignee that there exists no breach or default or state of facts which, if left unattended, would in time produce a breach or default by Assignor of the terms, covenants and conditions of the Lease, except as set forth and described in Section 6(c) of this Assignment Agreement. The referenced Construction Lien Claim shall be satisfied and removed by Assignee within forty-five (45) days of the date of this Assignment Agreement and, if not, will thereafter be deemed a default subject to the provisions of Section 12.03 of the Lease. The forty-five (45) day-time period shall not be an amendment to the Lease except for this specific Construction Lien Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Security Deposit. Landlord, Assignor and Assignee hereby agree and acknowledge that, as of the date hereof, Landlord holds the sum of Seventy-Five Thousand Four Hundred Thirty-Seven and 49/100 ($75,437.49) Dollars as security (the "**Security Deposit**") for the faithful performance of the Assignor under the Lease, and further acknowledge the assignment of the rights therein by Assignor to Assignee. The foregoing Security Deposit shall remain on file and deposit with Landlord following the date of this Assignment Agreement and shall be held pursuant to the terms and conditions of the Lease for the benefit of the Landlord and Assignor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Estoppel</u>.

Each of Assignor and Landlord hereby certifies to Assignee 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) the Lease is in full force and effect and the Lease has not been assigned, modified, supplemented or amended in any way, except as set forth in this Assignment 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) the Lease hereby represents the entire agreement between the Assignor and the Landlord as to such leasing;

&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 Premises is subject to that certain Construction Lien Claim filed on May 31, 2024, by one William J. DiSanto of Englewood Construction, Inc., 80 Main Street, Lemont, Illinois 60439, in the amount of $150,000.00 (herein the "**Construction Lien 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;(d) to Assignor's and Landlord's knowledge (as applicable), and except as set forth in Section 6(c) above, Assignor is not in material default under the Lease and Assignor has not received any notice of material default under the lease which have not been cured;

&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) on this date there are no existing claims which the Landlord has, pursuant to the terms and conditions of the Lease, by Landlord against the Assignor, except for 6(c) 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) the right of first refusal pursuant to Section 31.21 of the Lease remains in effect; 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;(g) the current monthly base Rent is Twenty-Five Thousand One Hundred and Forty-Five and 83/100 ($25,145.83) Dollars and the current Additional Rent of Five Thousand Ninety-One and 67/100 ($5,091.67) Dollars, all of which has been paid current, with no amounts due from Assignor to Landlord for leasing commissions, tenant improvement work or any other charges under the Lease

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Representations and Warranties of Assignee/Tenant</u>.

Assignee hereby represents and warrants to Assignor and Landlord 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) Assignee has the requisite power and authority to enter into and perform the terms and conditions of this Assignment Agreement and the Lease;

&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) Assignee is not subject to any law, order, decree, restriction or agreement which prohibits or would be violated by this Assignment Agreement or the Lease; 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) the execution and delivery of this Assignment Agreement and the consummation of the transaction contemplated hereby has been duly authorized by all requisite company action on behalf of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Landlord Consent</u>.

(a) Consent to Assignment. Landlord hereby approves and consents to the Assignment of the Lease to Assignee pursuant to the terms of this Assignment Agreement.

(b) Consent to Sublease. Landlord hereby further approves and grants consent to the Sublease, pursuant to Section 19.01 of the Lease, and the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Lease Amendment(s)</u>. The Lease is hereby amended ("**Second Amendment**") as follows:

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| | |
|:---|:---|
| (a)  | The Lease Term set forth in that certain Acknowledgement and Confirmation of Lease Terms as signed on May 25, 2023 is hereby amended to reflect the first year of the initial ten (10) year Lease Term shall commence on the first (1st) day of the calendar month following the date of this Assignment Agreement, also the revised Rent Commencement Date, and shall expire ten (10) years thereafter (the "**New Initial Term**"). For avoidance of doubt, initial monthly Base Rent during the New Initial Term shall be as shown on Exhibit 5 of the Lease (i.e., Twenty-Five Thousand One Hundred and Forty-Five and 83/100 ($25,145.83) Dollars per month). |
|  | Tenant may not open at another location within Lawrence Township, New Jersey for the same business Use agreed upon in the Lease until the New Initial Term and all Renewal Option Terms have expired, whether or not Tenant is in occupancy of the Premises. |
| (b) | Section 4.03. Tenant shall pay to Landlord or to third parties on behalf of Landlord, should Tenant self-perform, the Additional Rent owed by Tenant to Landlord as set forth in Article IX and as otherwise set forth in the Lease and items listed on Exhibit 6 thereto and updated/revised as <u>Exhibit "D"</u> hereto. Tenant may elect, following ninety (90) days' written Notice to Landlord, to self-perform <u>all</u> general/routine site maintenance, including without limitation, snow removal, landscaping and the like per Section 9.02 and list on Exhibit 6 to the Lease without payment of Management Fee to Landlord. Tenant shall within ten (10) days of timely and direct payment of Additional Rent to third parties provide Landlord with copies of evidence of any and all payments. For avoidance of doubt, Landlord shall pay pursuant to Article X of Lease real estate taxes and sewer directly to the Township of Lawrence, the taxing authority, as well as pursuant to Section 16.09 of Lease Landlord insurance, with reimbursement from Tenant as Additional Rent, pursuant to the terms of the Lease. Should Tenant fail to timely perform all general/routine maintenance and direct pay such Additional Rent per Section 9.02 and list on Exhibit 6 to the Lease, notwithstanding other language and provisions in the Lease, Landlord may perform such services and/or make such payments on behalf of Tenant following fifteen (15) days' notice to Tenant. Thereafter, Tenant shall be liable to Landlord in the amount of any such payments plus ten (10%) thereof as Additional Rent. A Revised/Updated Exhibit 6 is attached hereto as <u>Exhibit "D"</u>. |

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(c) Section 4.04. Pursuant to Section 4.04 of Lease, Tenant shall pay estimates of Percentage Rent on a quarterly basis within forty-five (45) days of the first day of each calendar quarter (or as soon as thereafter as is commercially reasonable following Tenant's internal quarterly audit) and not monthly. Landlord shall notify Tenant of Percentage Rent obligation on quarterly basis with invoice for then monthly Base Rent.

(d) Section 6.01. Twelve (12) months written notice shall be amended to reflect nine (9) months written notice by Tenant to Landlord to exercise the option for each additional renewal Term.

(e) **"Time Being of the Essence", Tenant** shall use best efforts to commence construction as soon as possible (if necessary, shall include using best efforts to make application(s) for construction permits and demolition permits as soon as possible, with the intent of doing so within forty five (45) days of the date of this Assignment Agreement), provide Landlord with construction schedule and place contractors and workers at the Premises to perform work described in construction documents). Tenant shall proceed as closely as possible to the Generic Tenant Project Schedule Outline attached hereto as Exhibit G without waiting for the issuance of a Class 5 conditional license. Further, Tenant shall request a CRC onsite assessment of the Premises as soon as possible. Assignee/Tenant shall open for business for the agreed upon Use as soon as possible following the date of this Assignment Agreement. For avoidance of doubt, the preceding shall be subject to any delays through no fault of Tenant, such as "force majeure", that makes performance impractical. Otherwise, failure to continually use best efforts to commence construction or open for business shall be a material default of the Lease. Tenant acknowledges that the Lease is not and shall not become a "Dark" Lease and, further, Tenant intends to occupy the Premises immediately following the execution of this Agreement and thereafter become operational.

(f) Exhibit 4, Paragraph C. In connection with the Memorandum of Lease, Assignor and Assignee shall deliver to Landlord a Termination of the Lease Memorandum (or declaration) to be signed by Assignor and Assignee in the form attached to the Lease as Exhibit 10 and hereto as <u>Exhibit "E</u> " ()"**Termination of Lease Memorandum** "), which may be recorded by Landlord at Landlord's expense, but not before the expiration or earlier termination of the Lease. Tenant/Assignor shall execute the Termination of Lease Memorandum and deliver original thereof within thirty (30) days of the date of this Assignment Agreement to be held in escrow by Landlord, without recordation thereof until after the Lease expires or is otherwise terminated in accordance with the terms of the Lease.

(g) Assignment. Landlord entered into a parking lot Lease Agreement with Enterprise Leasing Company of Philadelphia ()"**Enterprise**") dated November 1, 2018 for the parking lot at the Premises, which may be terminated upon thirty (30) days written notice by Landlord or, in this case, Tenant, per ¶8 of the parking lot Lease Agreement, copy of said parking lot Lease Agreement having been previously delivered to Tenant. The parking lot Lease Agreement, by way of this Assignment Agreement, is hereby assigned to the Assignor and Assignee effective August 1, 2025, with Landlord collecting rent and notifying Tenant upon receipt thereof and allowing Tenant to reduce its Base Monthly Rent due to Landlord. Base Monthly Rent due Landlord only to be reduced upon receipt of rent from Enterprise. Further, Landlord is under no obligation to enforce the terms and conditions of the Enterprise parking lot Lease Agreement.

(h) Guarantee. Ascend Wellness Holdings, Inc., a Delaware corporation ()"**Ascend** "), shall sign a Guarantee in the form and substance attached to the Lease as " <u>Exhibit "F</u> ", as such relates to the terms and conditions of the Lease and this Assignment Agreement.

(i) Hazardous Materials. Following the Commencement Date, Hazardous Materials between Landlord and Tenant shall be controlled under the terms and conditions of the initial Lease Agreement, more particularly Sections 9.02(viii) and 28.01 thereof.

(j) §21.01 H. It shall be a Default of the Lease if, (i) Tenant loses the right to operate the proposed Use at the Premises in accordance with Lawrence Township Resolution No.101-22 dated February 15, 2022 issued under Lawrence Township Ordinance 2415-22, and (ii) Tenant fails to diligently prosecute a new application for a Class 5 Cannabis Retail application with the New Jersey Cannabis Regulatory Commission ("CRC"), which the parties recognize have certain preconditions, including, but not limited to, first applying to the Department of Treasury, Division of Revenue and Enterprise Services for certification as a woman and/or minority business enterprise.

(k) <u>Use (Pursuant to Summary of Basic Lease Provisions, Article VII of Lease, and Exhibit 4 of Lease).Use of the Premises (or Property) shall be expanded to include Class 5 cannabis retail sale for personal use.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Notices. Any notices required or permitted to be given under the Lease, and as to any terms and conditions of this Assignment Agreement, shall be given in writing and shall be delivered by (a) hand delivery, (b) commercial overnight courier that guarantees next day delivery and provides a receipt, or (c) legible facsimile or e-mail (followed by hard copy sent concurrently with such facsimile or e-mail), in accordance with preceding subsections (a) or (b)), and such notices shall be addressed as follows:

<u>If to Landlord</u>:

Lawrence Investment Group, LLC

Attention: John Simone, Jr., Managing Member

100 Federal City Road

Suite C101

Lawrenceville, New Jersey 08648

Telephone: (609) 882-1105

Fax: (609)

E-mail: <u>jsimone@simonerealty.com</u>

With a required copy to:

Bernstein & Manahan, LLC

Attorneys At Law

Edward M. Bernstein, Esquire

3131 Princeton Pike, Suite 209B

Lawrenceville, New Jersey 08648

Telephone: (609) 895-9001

Fax: (609) 895-9002

E-mail: <u>emb4law@aol.com</u>

<u>If to Assignee</u>:

Ascend New Jersey, LLC,

Attention: Legal Department

44 Whippany Road, Suite 101

Morristown, New Jersey 07960

E-mail: ddipietro@awholdings.com

<u>If to Assignor</u>:

BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp.

Attention: Chief Operating Officer,

2625 N Green Valley Parkway

Henderson, NV 89014

E-mail:

or to such other addresses as either party may from time to time specify in writing to the other party. Any notice shall be effective only upon receipt (or refusal by the intended recipient to accept delivery). Notice given by facsimile shall be effective upon receipt of such facsimile (subject to the requirement that hard copy be sent concurrently in accordance with this Section). Any notice which is received on a Saturday, Sunday or legal holiday or after 5:00 P.M. prevailing local time at the place of receipt, shall be deemed be received on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Assignment Agreement constitutes the entire agreement, inclusive of the Lease, between the parties hereto and supersedes all prior dealings between them with respect to the subject matter hereof. There are no verbal or collateral understandings, agreements, representations or warranties not otherwise expressly set forth in the Lease. No subsequent alteration, amendment, change or addition of the Lease shall be binding upon the parties hereto unless reduced to writing and signed by the party or parties to be charged therewith. Except as expressly modified hereby, all of the terms, covenants and conditions of the Lease remain in full force and effect. In the event of a conflict between the Lease and this Assignment Agreement, this Assignment Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Assignee shall reimburse Landlord for Landlord's attorneys' fees and costs of $2,500.00 by means of a bank check, cashier's check or certified check, as additional consideration for the Landlord entering into this Assignment Agreement, the receipt of which is hereby acknowledged by Landlord. If the Subsequent Assignment of Lease is entered into between the Assignor and Assignee in compliance with this Assignment Agreement, the Assignor shall pay to the Landlord the sum of $2,500.00 as additional consideration and reimbursement for attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Assignee acknowledges that Assignee has received notice this day that the Lease as well as all or a material portion of the Lease Premises are subject to one or more underlying mortgages now or hereinafter existing, in particular, a mortgage dated May 12, 2023, in favor Wilmington Savings Fund Society, FSB, in the initial amount of $1,450,000.00. Landlord shall cause Lender to enter into a commercially reasonable Subordination, Non-Disturbance and Attornment Agreement with Tenant promptly after the execution of this Assignment Agreement, it being agreed that Assignee's rights under the Lease shall not be disturbed absent a default by Assignee, in its capacity as tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The terms as used and defined in the Lease and in the Assignment Agreement shall have the meaning indicated in the Lease. References in this Assignment Agreement to Sections and Articles are to those contained in the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Survival. The terms and conditions of this Assignment Agreement, in particular, the Lease Amendments, shall survive the Subsequent Assignment, if applicable, excepting therefrom such terms and conditions that may conflict therewith.

[SIGNATURE LINES ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement as of the day and year first above written.

WITNESS/ATTEST:

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| | |
|:---|:---|
|  | ASSIGNOR: |
|  | BaM Body and Mind Dispensary<br> NJ, Inc. a/k/a CraftedPlants<br> NJ Corp. |
| By:  | */s/ Stephen 'Trip' Hoffman* |
|  | Dated: August 22, 2025 |
|  | ASSIGNEE:<br> Ascend New Jersey, LLC, a New <br> Jersey limited liability <br> company |
| By:  | */s/ Frank Perullo* |
|  | Dated: August 22, 2025 |
|  | LANDLORD:<br> Lawrence Investment Group, <br> LLC, a NJ limited liability <br> company |
| By:  | */s/ John Simone Jr.* |
|  | John Simone, Jr., Managing Member<br> Dated: August 22, 2025 |

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<u>LIST OF EXHIBITS</u>

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| | |
|:---|:---|
| EXHIBIT A | Original Lease and First Amendment |
| EXHIBIT B | Sublease Agreement |
| EXHIBIT C | Subsequent Assignment |
| EXHIBIT D | Estimated Operating Budget(Revised/updated Exhibit 6 to Lease) |
| EXHIBIT E | Memorandum of Lease Termination |
| EXHIBIT F | Guaranty |
| Exhibit G | Generic Tenant Project Schedule Outline |

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<u>EXHIBIT "A"</u>

3191 U.S. Route 1, Lawrenceville, New Jersey 08648 designated and known as Block 5201.10, Lot 3 of the tax maps of Lawrence Township

Lease

First Amendment of Lease

<u>EXHIBIT "B"</u>

SUBLEASE

**SUBLEASE AGREEMENT**

This Sublease Agreement ("**Sublease**"), dated as of August 22, 2025 (the "**Effective Date**"), is entered into between Ascend New Jersey, LLC, a New Jersey limited liability company having an address at 44 Whippany Road, Suite 101, Morristown, New Jersey 07960 ("**Sublandlord**") and BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp., having an address at 2625 N Green Valley Parkway, Henderson, NV 89014 ("**Subtenant**" and, together with Sublandlord, collectively referred herein as the "**Parties**" or individually as a "**Party**").

**RECITALS**

**WHEREAS**, Sublandlord is the current tenant and successor in interest to the original tenant under that certain lease agreement dated August 18, 2022, (as amended, and as attached hereto as <u>Exhibit A)</u>, the "**Primary Lease**") with Lawrence Investment Group, LLC ("**Prime Landlord**"), by virtue of that certain Assignment and Assumption of Lease and Second Amendment to Lease dated on or about the date hereof (the "**Assignment**"); and

**WHEREAS**, pursuant to the Primary Lease, Sublandlord leased those certain premises ("**Demised Premises**") more particularly described in the Primary Lease and located at 3191 U.S. Route 1, Lawrenceville, New Jersey 08648 designated and known as Block 5201.10, Lot 3 of the tax maps of Lawrence Township; and

**WHEREAS**, Sublandlord desires to sublease all of its premises leased under the Primary Lease to Subtenant, and Subtenant desires to sublease all of Sublandlord's premises from Sublandlord, in accordance with the terms and conditions of this Sublease.

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

1) <u>Demise</u>. Sublandlord hereby leases to Subtenant, and Subtenant hereby leases from Sublandlord, the premises ("**Subleased Premises**") described in the Primary Lease and comprising of the entire Demised Premises.

2) <u>Term.</u>

a) The term of this Sublease ()"**Term**") will commence on the Effective Date and shall expire one (1) day prior to the expiration of the term of the Primary Lease ()"**Sublease Expiration Date** "), unless sooner terminated or cancelled in accordance with the terms and conditions of this Sublease. Notwithstanding the foregoing, in the event that Subtenant assumes the Lease following the satisfaction of the Subsequent Assignment Conditions pursuant to Section 3 of the Assignment), then this Sublease shall automatically terminate.

b) Subtenant may not exercise any options to extend or renew the term of the Primary Lease. These options are expressly retained by Sublandlord and may be exercised or waived by Sublandlord in its sole and absolute discretion.

c) If for any reason the term of the Primary Lease is terminated prior to the Sublease Expiration Date, this Sublease shall terminate on the date of such termination and Sublandlord shall not be liable to Subtenant for such termination.

3) <u>Permitted Use</u>. Subtenant may use and occupy the Subleased Premises solely in accordance with, and as permitted under, the terms of the Primary Lease and for no other purpose.

4) <u>Payment of Base Rent</u>. Throughout the Term of this Sublease, Subtenant shall pay to Sublandlord fixed base rent ("**Base Rent**") at the rate of: Ten and 00/100 Dollars ($10.00) *per annum* from the Sublease Commencement Date to the Sublease Expiration Date, payable in one lump sum. Subtenant shall pay to Sublandlord the Base Rent at the time of execution and delivery of this Sublease by Subtenant to Sublandlord.

5) <u>Incorporation of Primary Lease by Reference</u>.

a) The terms, covenants, and conditions of the Primary Lease, in the form attached hereto as <u>Exhibit A</u>, are incorporated herein by reference, except to the extent they are expressly deleted or modified by the provisions of this Sublease. Every term, covenant, and condition of the Primary Lease binding on or inuring to the benefit of Prime Landlord is, in respect of this Sublease, binding on or inures to the benefit of Sublandlord (other than those which, by their nature, are to be performed only by the fee simple owner of the Demised Premises), and every term, covenant, and condition of the Primary Lease binding on or inuring to the benefit of Sublandlord is, in respect of this Sublease, binding on and inures to the benefit of Subtenant. Whenever the term "**Lessor**" or "**Landlord**" appears in the Primary Lease, the word "Sublandlord" is substituted therefor; whenever the term "**Lessee**" or "**Tenant**" appears in the Primary Lease, the word "Subtenant" is substituted therefor; and whenever the word "**Premises**" appears in the Primary Lease, the word "**Subleased Premises**" is substituted therefor.

b) Notwithstanding the foregoing or anything to the contrary in this Sublease: (i) the following numbered paragraphs of the Primary Lease will not apply to this Sublease: Last 3 sentences of 2.03, 3.01, 3.02, 3.03(B)-(C), 4.01, 4.03, 4.04, 4.05, 5.01, 6.01, 6.02, 8.01, 9.01, 9.02, 9.03, 9.04, Article X, 11.01(B)-(C), Article XII, Article XVI, Article XVII, Article XVIII, Article XXVII, 31.18; (ii) the time limits contained in the Primary Lease for Sublandlord, as tenant, to give notices, make demands, or perform any act, covenant, or condition or to exercise any right, remedy, or option, are modified herein by shortening the same in each instance by one (1) day; and (iii) without Sublandlord's prior written consent, Subtenant shall not make any alterations or modifications to the Demises Premises, remove or alter any personal property at the Demised Premises, or conduct any business operations at the Demises Premises. If any of the express provisions of this Sublease conflict with any of the provisions of the Primary Lease, the provisions of the Primary Lease govern.

6) <u>Subordination to Primary Lease.</u> This Sublease is subject and subordinate to the Primary Lease. <br>7) <u>Representations of Sublandlord.</u> Sublandlord represents and warrants the following is true and correct as of the date hereof:

a) Sublandlord is the tenant under the Primary Lease and has the capacity to enter into this Sublease with Subtenant

b) The Primary Lease attached hereto as <u>Exhibit A</u> is a true, correct, and complete copy of the Primary Lease, is in full force and effect, and has not been further modified, amended, or supplemented except as expressly set out herein.

c) Except as may have been previously disclosed in writing to Subtenant, Sublandlord has not received any notice, and has no actual knowledge, of any default by Sublandlord under the Primary Lease.

8) <u>AS-IS Condition.</u> Subtenant accepts the Subleased Premises in their current, "as-is" condition. Sublandlord has no obligation to furnish or supply any work, services, furniture, fixtures, equipment, or decorations, except Sublandlord shall deliver the Subleased Premises in broom clean condition.

9) <u>No Privity of Estate; No Privity of Contract.</u> Nothing in this Sublease should be construed to create privity of estate or privity of contract between Subtenant and Prime Landlord. Notwithstanding, Subtenant hereby assumes the performance of all of the obligations imposed upon the Sublandlord under the Prime Lease and all amendments thereof, which accrue from and after the date hereof. Further, the Sublease shall be collaterally assigned to the Prime Landlord as security for the Lease and all amendments thereto upon rejection of the Prime Lease in a bankruptcy proceeding.

10) <u>No Breach of Primary Lease</u>. Subtenant shall not do or permit to be done any act or thing, or omit to do anything, that may constitute a breach or violation of any term, covenant, or condition of the Primary Lease, even if such act, thing, or omission is permitted under the terms of this Sublease.

11) <u>Consents</u>. Whenever the consent or approval of Sublandlord is required, Subtenant must also obtain the written consent or approval of Prime Landlord, if required under the terms of the Primary Lease. Sublandlord must promptly make such consent request on behalf of Subtenant, and Subtenant must promptly provide any information or documentation that Prime Landlord may request. Subtenant must reimburse Sublandlord, not later than ten (10) days after written demand by Sublandlord, for any fees and disbursements of attorneys, architects, engineers, or others charged by Prime Landlord in connection with any consent or approval. Sublandlord has no liability of any kind to Subtenant for Prime Landlord's failure to give its consent or approval.

12) <u>Effect on Prime Landlord</u>. Nothing in this Sublease shall be deemed (a) to operate as a representation or warranty by the Prime Landlord and the Prime Landlord shall not be bound or estopped in any way by the provisions of this Sublease, or (b) modify, waive, or affect (i) any of the terms, covenants or conditions in the Prime Lease, (ii) any of the Prime Landlord's rights against anyone liable for performance under the Prime Lease, (iii) any of the Sublandlord's obligations, as Tenant, under the Prime Lease, (iv) any rights or remedies of the Prime Landlord under the Prime Lease, (v) enlarge or increase the Prime Landlord's obligations or the Sublandlord's rights under the Prime Lease, (vi) waive any present or future defaults on the part of the Sublandlord under the Prime Lease, or (vii) construe the Prime Landlord as a party to the Sublease.

13) <u>Assignment or Subletting</u>. Subtenant may not sublet all or any portion of the Subleased Premises or assign, encumber, mortgage, pledge, or otherwise transfer this Sublease (by operation of law or otherwise) or any interest therein, without the prior written consent of: (a) Sublandlord, which consent may be unreasonably withheld or may be withheld in its sole and absolute discretion; and (b) Prime Landlord.

14) <u>Insurance; Indemnity.</u> Sublandlord shall maintain all insurance as required by the Primary Lease, and add Subtenant as an additional insured, at Sublandlord's sole cost and expense. Sublandlord and Subtenant, as applicable, shall indemnify, hold harmless, and defend the other indemnified party and its officers, directors, 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 reasonable attorneys' fees, that are incurred by Indemnified Party (collectively, "Losses"), arising out of or related to any third-party claim alleging:

a) breach or non-fulfillment of any provision of this Sublease, or, to the extent such Indemnifying Party is bound by the Primary Lease under this Sublease, the Primary Lease, by Indemnifying Party;

b) any negligent or more culpable act or omission of Indemnifying Party (including any reckless or willful misconduct) in connection with the performance of its obligations under this Sublease;

c) any bodily injury, death of any person, or damage to real or tangible personal property caused by the negligent or more culpable acts or omissions of Indemnifying Party (including any reckless or willful misconduct); or

d) any failure by Indemnifying Party to comply with any applicable federal, state or local laws, regulations, or codes in the performance of its obligations under this Sublease, or, to the extent required under this Sublease, the Primary Lease.

This Section 14 survives the expiration or earlier termination of this Sublease.

15) <u>Notices</u>. All notices and other communications required or permitted under this Sublease must be given in the same manner as in the Primary Lease. Notices shall be addressed to the addresses set out below:

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| | |
|:---|:---|
| To Subtenant at: | BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp.<br> Attention: Chief Operating Officer, <br> 2625 N Green Valley Parkway<br> Henderson, NV 89014 <br> E-mail: |
| To Sublandlord at: | Ascend New Jersey, LLC, <br> Attention: Legal Department<br> 44 Whippany Road, Suite 101<br> Morristown, New Jersey 07960<br> E-mail: ddipietro@awholdings.com |

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16) <u>Brokers.</u> Sublandlord and Subtenant each represent to the other that it has not dealt with any broker. Sublandlord and Subtenant each indemnify and hold harmless the other from and against all claims, liabilities, damages, costs, and expenses (including without limitation reasonable attorneys' fees and other charges) arising out of any claim, demand, or proceeding for commissions, fees, reimbursement for expenses, or other compensation by any person or entity who claims to have dealt with the indemnifying party in connection with the Sublease. This Section 16 survives the expiration or earlier termination of this Sublease.

17) <u>Entire Agreement.</u> This Sublease contains the entire agreement between the parties regarding the subject matter contained herein, and all prior negotiations and agreements are merged herein. If any provisions of this Sublease are held to be invalid or unenforceable in any respect, the validity, legality, or enforceability of the remaining provisions of this Sublease will remain unaffected.

18) <u>Amendments and Modifications.</u> This Sublease may not be modified or amended in any manner other than by a written agreement signed by the party to be charged.

19) <u>Successors and Assigns.</u> The covenants and agreements contained in this Sublease bind and inure to the benefit of Sublandlord and Subtenant and their respective permitted successors and assigns.

20) <u>Counterparts.</u> This Sublease may be executed in any number of counterparts, each of which when so executed and delivered is deemed an original for all purposes, and all such counterparts will together constitute but one and the same instrument. A signed copy of this Sublease delivered by either facsimile or email is deemed to have the same legal effect as delivery of an original signed copy of this Sublease.

21) <u>Defined Terms.</u> All capitalized terms not otherwise defined in this Sublease have the definitions contained in the Primary Lease.

22) <u>Choice of Law.</u> This Sublease is governed by, and construed in accordance with, the laws of the State of New Jersey, without regard to conflict of law rules.

*[SIGNATURE PAGE FOLLOWS]*

IN WITNESS WHEREOF, the parties have caused this Sublease to be executed as of the Effective Date.

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| | |
|:---|:---|
| **SUBLANDLORD**:<br> Ascend New Jersey, LLC, a New Jersey limited<br> liability company | **SUBLANDLORD**:<br> Ascend New Jersey, LLC, a New Jersey limited<br> liability company |
| By: | */s/ Frank Perullo* |
| Name: | Frank Perullo |
| Title: | Secretary |
| **SUBTENANT**:<br> BaM Body and Mind Dispensary NJ, Inc. f/k/a<br> CraftedPlants NJ Corp. | **SUBTENANT**:<br> BaM Body and Mind Dispensary NJ, Inc. f/k/a<br> CraftedPlants NJ Corp. |
| By: | */s/ Stephen 'Trip' Hoffman* |
| Name: | Stephen 'Trip' Hoffman |
| Title: | President |

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**EXHIBIT A**

**[PRIMARY LEASE AND AMENDMENTS]**

Exhibit "C"

SUBSEQUENT ASSIGNMENT

**ASSIGNMENT AND ASSUMPTION OF LEASE**

THIS ASSIGNMENT AND ASSUMPTION OF LEASE (this "***Assignment***") is made and dated as of ___________ ____, _____, by and between Ascend New Jersey, LLC ("***Assignor***") and BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp ("***Assignee***").

<u>RECITALS:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Assignment</u>. Assignor, hereby irrevocably assigns, transfers, and sets over to Assignee, all of Assignor's right, title, and interest, as lessor, in and to that certain Lease dated as of August 18, 2022, entered into by and between Lawrence Investment Group, LLC, as landlord, and BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp., as tenant, as amended by that First Amendment to Lease dated February 14, 2023, and further amended by that Assignment and Assumption of Lease and Second Amendment to Lease dated ______, 2025 (the "Prior Assignment of Agreement") (collectively, the "Lease").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Assumption</u>. Assignee hereby expressly accepts such assignment and assumes the performance of all of the obligations imposed upon the Assignor under the Lease and all amendments thereof, which accrue from and after the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <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;a. Assignor hereby agrees to indemnify and to hold Assignee harmless from and against any and all loss, cost, liability, damage, or expense, including reasonable attorneys' fees originating or relating to the period prior to the date hereof (but not prior to the date of the Prior Assignment Agreement) and arising out of or with respect to the failure of Assignor to have performed any of the obligations of the lessor under the Lease that accrued prior to the date hereof (but not prior to the date of the Prior Assignment 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. Assignee hereby agrees to indemnify and to hold Assignor harmless from and against any and all loss, cost, liability, damage, or expense, including, without limitation, reasonable attorneys' fees, originating or relating to the period on and following the date hereof and arising out of or with respect to the failure of Assignee to perform any of the obligations of the lessor under the Lease accruing on or after the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>General</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>Successors and Assigns</u>. This Assignment and Assumption of Lease and the obligations of the parties hereunder shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors, and 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;b. <u>Governing Law</u>. This Assignment and Assumption of Lease is governed by and shall be construed in accordance with the laws of the State of New Jersey, without regard to conflict of law rules.

&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>Counterparts</u>. This Assignment and Assumption of Lease may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original for all purposes, and all such counterparts shall together constitute but one and the same instrument.

*[signature page follows]*

IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Assumption of Lease as of the date first written above.

---

| |
|:---|
| **ASSIGNOR:**<br>Ascend New Jersey, LLC, a New Jersey limited<br> liability company |
| By: |
| Name: |
| Title: |
| **ASSIGNEE:**<br>BaM Body and Mind Dispensary NJ, Inc. f/k/a<br> CraftedPlants NJ Corp. |
| By: |
| Name: |
| Title: |

---

<u>EXHIBIT D</u>

(Revised/updated Exhibit 6 to Lease)

EXHIBIT 6

Common Area Maintenance And Operating Costs

2025 Budget

3191 Route 1

Lawrenceville, NJ 08648

---

| | |
|:---|:---|
| **Category** | **2025**<br> **Budget** |
| Lawn Care | $3500.00 |
| Grounds Maintenance | 5000.00 |
| Snow Removal\* | 7500.00 |
| Property Insurance | 25000.00 |
| HVAC | 1500.00 |
| General Maintenance | 2500.00 |
| Property Tax | 36000.00 |
| Water | 1000.00 |
| Management Fee | 15087.50 |
| Sewer | 500.00 |
| Trash Removal | 7500.00 |
| Total | $105087.50 |

---

Amounts for the services listed above are estimates based on budgets for prior years and are subject to adjustments pursuant to the terms of the Lease Agreement.

☐ Enterprise (for parking lot lease) handles its own snow removal.

<u>EXHIBIT E</u>

**EXHIBIT 10 to Lease**

**<u>Termination of Lease Memorandum</u>**

<u>Prepared By:</u>

TERMINATION OF LEASE MEMORANDUM

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Termination of Lease Memorandum, dated ___________________________, made and given by CRAFTEDPLANTS NJ, CORP., an Arizona corporation.

<u>W I T N E S S E T H:</u>

WHEREAS, CraftedPlants NJ, Corp., as "Tenant", entered into a Lease Agreement dated August 18, 2022 ("<u>Lease</u>"), whereby Tenant leased certain premises situated at 3191 U.S. Route 1 (Brunswick Avenue), Lawrence Township, New Jersey 08648 (the "<u>Leased Premises</u>"). The legal description of the land comprising the Leased Premises is attached hereto as <u>Exhibit "A"</u> and is incorporated herein by this reference;

WHEREAS, in connection with the Lease, Tenant recorded a Memorandum of Lease in the official land records of the Mercer County Cler as Instrument Number 20230001237, at Book 6511, Page 1883 on January 12, 2023 to provide record notice of the Lease, a copy of which is attached hereto as <u>Exhibit "B"</u>; and

WHEREAS, the Lease has expired or otherwise been terminated in accordance with the terms thereof and Tenant now desires to record this Termination of Lease Memorandum thereby clearing title to the said Leased Premises of any encumbrance of the Lease.

WHEREFORE, Tenant has recorded, as of the date above first written, this Termination Lease Memorandum confirming that the Lease has expired or otherwise been terminated in accordance with the terms thereof and is no further force or effect.

[Signature page follows]

IN WITNESS WHEREOF, this Termination of Lease Memorandum has been duly executed by CraftedPlants NJ, Corp.

---

| |
|:---|
| CRAFTEDPLANTS NJ, CORP., an Arizona<br> corporation |
| By: __________________________ |
| Name: _______________________ |
| Title: ________________________ |

---

STATE OF ARIZONA)) SS;

COUNTY OF ____________)

The undersigned, a Notary Public, in and for the County and State aforesaid, does hereby certify, that ______________, _____________________________________ of CraftedPlants NJ, Corp., an Arizona corporation, and personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged under oath that as such _____________________________________, he signed and delivered the said instrument pursuant to authority duly given to him by said corporation.

Given under my hand and seal this _____ day of ____________________, 202__.

Notary Public

My Commission expires: _________________________

Exhibit "F"

GUARANTEE (Exhibit 8 to Lease)

**GUARANTY OF LEASE**

THIS GUARANTY OF LEASE ("<u>Guaranty</u>"), is made as of the ____ day of __________ 2025 by Ascend Wellness Holdings, Inc., a Delaware Corporation, with an address at 44 Whippany Road, Suite 101, Morristown, New Jersey 07960, whether one or more, collectively, jointly and severally referred to as "<u>Guarantor</u>"), in favor of Lawrence Investment Group, LLC, its successors and assigns ("<u>Beneficiary</u>").

<u>WITNESSETH</u>:

WHEREAS, Ascend New Jersey, LLC, a New Jersey limited liability company, with an address at 44 Whippany Road, Suite 101, Morristown, New Jersey 07960 ("<u>Tenant</u>") has entered into that certain Lease as Assignee, of even or approximate date herewith (as it may hereafter be amended from time to time, the "<u>Lease</u>"), with Beneficiary for the Property known as 3191 U.S. Route 1, Lawrenceville, New Jersey.

WHEREAS, Guarantor is the parent company of and, directly or indirectly, wholly owns Tenant and will receive material benefit from the Lease.

WHEREAS, it is a material inducement and condition precedent to Beneficiary's entering into the Lease that Guarantor guarantee Tenant's obligations under the Lease.

NOW, THEREFORE, in consideration of the foregoing, One Dollar ($1.00), the terms hereinafter set forth, and other good and valuable consideration, Guarantor agrees 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;2. Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Beneficiary the full and prompt payment and performance and observance of all the monetary and nonmonetary covenants, obligations, conditions and agreements in and pursuant to the Lease provided to be performed and observed by Tenant, its successors and assigns, together with the full and prompt payment of all damages that may arise or be incurred by Beneficiary in consequence of Tenant's failure to perform such covenants and agreements (all such obligations herein collectively referred to as, the "<u>Guaranteed Obligations</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. Guarantor expressly agrees that the validity of this Guaranty and the Guaranteed Obligations shall not be terminated, or in any way affected or impaired, (a) by reason of the assertion by Beneficiary against Tenant of any of the rights or remedies reserved to Beneficiary pursuant to the provisions of the Lease (whether in full or in part); (b) by reason of the waiver by Beneficiary, or the failure of Beneficiary, to enforce any of the terms, covenants, or conditions of the Lease, or the granting of any indulgence or extension to Tenant, or the release of any other guarantor (or surety) or any other security or collateral granted for the performance of the obligations hereby guaranteed, all of which may be given or done without notice to Guarantor; or (c) by reason of the bankruptcy or insolvency of Tenant and whether or not the term of the Lease shall terminate by reason of said bankruptcy or insolvency.

&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. Guarantor hereby waives (a) notice of nonpayment of Rent (as defined in the Lease) or any other amounts to be paid by Tenant under the Lease, (b) notice of default or non-performance of any of Tenant's other covenants, conditions and agreements contained in the Lease, (c) notice of acceptance of this Guaranty, (d) notice of the existence, creation, amount, modification, amendment, alteration or extension of the Lease or all or any of the Guaranteed Obligations, whether or not such notice is required to be given to Tenant under the terms of the Lease, (e) presentment, demand, notice of dishonor, protest, and all other notices whatsoever, (f) any benefit of valuation, appraisement, homestead or other exemption law, now or hereafter in effect in any jurisdiction in which enforcement of this Guaranty is sought, and (g) all diligence in collection, perfection or protection of or realization upon the Guaranteed Obligations or any part thereof, any obligation hereunder, or any security for 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;5. Guarantor further agrees that its liability under this Guaranty for the Guaranteed Obligations shall be primary and direct, and not just a guaranty of collection, and that in any right of action which shall accrue to Beneficiary under the Lease, Beneficiary may, at its option, proceed against Guarantor after providing thirty (30) day's written notice to Tenant, commenced any action, or having obtained any judgment, against Tenant, or having proceeded against Tenant or any collateral posted as security under the Lease.

&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. Beneficiary may, in its sole discretion and with or without consideration, release any collateral securing the obligations of Tenant or release any party liable therefor. The defenses of impairment of collateral and impairment of recourse and any requirement of diligence on Landlord's part in perfecting or enforcing any lien granted in the Lease or in collecting the obligations under the Lease are hereby 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;7. Guarantor's liability under this Guaranty shall not be reduced on account of any limitations imposed by bankruptcy law or other applicable laws on Beneficiary's ability to collect its full damages under the Lease against Tenant. In the event of the death, incompetency, dissolution, bankruptcy or insolvency of Tenant, or the inability of Tenant to pay debts as they mature, or an assignment by Tenant for the benefit of creditors or the institution of any bankruptcy or other proceedings by or against Tenant alleging that Tenant is insolvent or unable to pay debts as they mature, or Tenant's default under the Lease, and if such event shall occur at a time when any of the Guaranteed Obligations may not then be due and payable, Guarantor agrees to pay to Beneficiary upon demand, the full amount which would be payable hereunder by Guarantor if all Guaranteed Obligations were then due and payable.

&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. Guarantor represents and warrants 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;a. Guarantor has the right, power and authority (without the consent of any other person, entity or governmental authority) to enter into, and to perform its obligations under, this Guaranty (and that, if Guarantor is a partnership, limited liability company, corporation or other entity, Guarantor has taken all requisite action to approve the execution, delivery and performance of this Guaranty, that the person signing on behalf of Guarantor is authorized and empowered to do so, and that the execution and delivery of this Guaranty are not in contravention of its charter, bylaws or other governing documents, and have been authorized by its partners, members and/or its 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;b. this Guaranty constitutes a valid and binding obligation of Guarantor, enforceable 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;c. the statements set forth in the "Whereas" clauses of this Guaranty are true and correct and are incorporated into the text of this Guaranty by this reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Guarantor is not in default under any agreement to which it is a party or by which it is bound, or bound by any decree, ruling, judgment, order or injunction which (together or singly) would reasonably be expected to materially and adversely affect its ability to perform under this Guaranty, and there is no action, proceeding or investigation pending or threatened against Guarantor which (together or singly) could reasonably be expected to materially and adversely affect its ability to perform under this Guaranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. neither the execution and delivery of this Guaranty nor its performance hereunder shall result in a breach of or default under any agreement, decree, ruling, judgment, order or injunction to which Guarantor is a party or by which it may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Guarantor is not insolvent nor will it, as a result of this Guaranty, be rendered insolvent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Unless and to the extent Guarantor is publicly traded (with publicly available financial information), Guarantor represents that all financial data, including (without limitation) the balance sheets, statements of income and expense, and statements of cash flow, if any, regarding Guarantor delivered to Beneficiary are (i) true, correct and complete in all material respects, (ii) are the most current financial data in Guarantor's possession or control, (iii) accurately represent the financial condition of Guarantor as of the date of such reports, and (iv) except as may be stated therein, have been prepared in accordance with generally accepted accounting principles or international financials reporting standards. Since the date of said financial data, there has been no material adverse change in the financial condition (including, without limitation, current liquid assets, amount of debt, results from operations, or ownership structure) of Guarantor which (together or singly) could be reasonably expected to materially and adversely affect its ability to perform under this Guaranty.

&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. No assignment, transfer, sublet, renewal, extension or amendment of the Lease, whether with or without notice to or the consent of Guarantor, shall operate to extinguish or diminish the liability of Guarantor under this Guaranty.

&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. If Beneficiary calls upon Guarantor to honor, pay or perform all or part of any obligation of Tenant, and Guarantor fails to honor such demand within five (5) days after written notice from Beneficiary to Guarantor, the debt or obligation owed Beneficiary pursuant to this Guaranty shall bear interest at the lesser of eighteen percent (18%) per annum or the highest rate permitted under applicable law. Guarantor further agrees to be responsible to Beneficiary for any and all expenses, including reasonable attorneys' fees and legal expenses, paid or incurred by Beneficiary in endeavoring to collect or enforcing the Guaranteed Obligations or any part thereof and in enforcing this Guaranty.

&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. Guarantor hereby acknowledges, accepts and consents to the following: (i) the Assignment Agreement – Asssignment and Assumption of Lease and Second Amendment to Lease – between BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp., Assignor, and Ascend New Jersey, LLC, a New Jersey limited liability company, Assignee; (ii) Sublease Agreement between the Tenant/Sublandlord, Ascend New Jersey, LLC, a New Jersey limited liability company, subsidiary of Guarantor, and Subtenant, BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp.; and, (iii) Subsequent Assignment – Assignment and Assumption of Lease - Sublease Agreement - between the Assignor, Ascend New Jersey, LLC, a New Jersey limited liability company, subsidiary of Guarantor, and Assignee, BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ Corp.

&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. All notices and communications under this Guaranty shall be made in writing and may be delivered by hand (including overnight courier), by telecopier, or by first-class certified or registered mail (return receipt requested) to the following addresses:

---

| | |
|:---|:---|
| If to Beneficiary: | Lawrence Investment Group, LLC |
|  | Attention: John Simone, Jr. |
|  | 100 Federal City Road, Suite C-101 |
|  | Lawrenceville, New Jersey 08648 |
| If to Guarantor: | Ascend Wellness Holdings, Inc.<br> 44 Whippany Road, Suite 101<br> Morristown, New Jersey 07960 |

---

Either party may change its address (or its addressee) by notice to the other. All notices and communications shall be effective upon receipt (or refusal to accept 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;13. This Guaranty is a continuing Guaranty and shall (a) (i) remain in full force and effect during the entire Term of the Lease, and any renewal or extension thereof, for so long as any Guaranteed Obligations remain due and payable or outstanding even though the demised Term or any renewal or extension thereof shall have expired, until all of Tenant's obligations under the Lease and all of the Guaranteed Obligations shall have been paid, performed or discharged in full and (b) be binding upon Guarantor and Guarantor's heirs, successors and assigns, and (c) inure to the benefit of and be enforceable by Beneficiary and its heirs, successors and assigns. Guarantor waives any right of indemnification, subrogation or reimbursement that it may have against Tenant and Guarantor agrees that it is not made a creditor of Tenant by virtue of this Guaranty. This Guaranty shall survive the expiration or termination of the Lease to the extent the obligations of Tenant thereunder likewise survive. If the Lease is terminated in accordance with the rights granted to the Tenant in the Lease, the Guarantor shall be released of all obligations under this Guaranty.

&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. If Guarantor consist of more than one person and/or entity, their obligations shall be joint and several and each agreement, representation or warranty shall be deemed to have also been made separately on its own behalf by each person or entity comprising Guarantor. Beneficiary may release any one or more Guarantors at any time without notice to or consent by the remaining Guarantors and without affecting the continuing liability of the remaining Guarantors. Beneficiary shall not be required to pursue any remedy against any other person or party that shall have executed any agreement of guaranty with Beneficiary. Beneficiary may elect, in its sole and absolute discretion, to seek to recover from any one or more of such persons or parties and no such election shall constitute any defense or any other bar or limitation to the enforcement of Guarantor's obligations 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;15. The plural shall include the singular (and vice versa) and the use of any gender shall include all other genders whenever used in this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. This Guaranty shall be governed by, and construed in accordance with, the laws of the State of New Jersey without regard to conflicts of laws. GUARANTOR WAIVES TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING RELATING TO OR ARISING UNDER THIS GUARANTY. At the election of Beneficiary, this Guaranty may be enforced only in the State of New Jersey, Mercer County, New Jersey State Courts – Superior and/or Special Civil Part, and Guarantor hereby consents to jurisdiction and venue in those courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. All remedies afforded to Beneficiary hereunder or under the Lease are separate and cumulative remedies and not exclusive. Beneficiary shall also have all remedies afforded 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;18. If any provision of this Guaranty or the application of any provision shall to any extent be void, unenforceable or invalid, then such provision shall be reinterpreted to the greatest extent possible to make it enforceable and valid and the rest of this Guaranty shall be unaffected thereby and 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;&nbsp;&nbsp;&nbsp;&nbsp;19. No waiver or modification of any provision of this Guaranty shall be effective unless in writing and signed by Beneficiary and no waiver by Beneficiary shall be applicable except in the specific instance for which it is given. This Guaranty is the full and complete agreement of the parties and Beneficiary has made no promises or representations to Guarantor except as 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;20. Notwithstanding anything herein to the contrary, in the event that Tenant shall have assigned the Lease to a party which is not an affiliate, subsidiary or parent of Tenant, then no modifications or amendments of the Lease made subsequent to the effective date of such assignment without the consent of Guarantor shall operate to increase the obligations of Guarantor under this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Guarantor and any replacement guarantor shall comply with the provisions of Section 31.18 of the Lease. The Guarantor hereby acknowledges to having received a copy of the Lease and to having read the Lease. Notwithstanding anything herein to the contrary, in the event a replacement guarantor, with creditworthiness equal to or greater than Guarantor, agrees to assume Guarantor's obligations under this Guaranty, then Guarantor's obligations under this Guaranty and the Lease shall terminate as of the date such agreement is approved and executed by Landlord and the replacement guarantor. **Tenant shall provide prior to the execution of such agreement acceptable documentation, in the reasonable opinion of the Landlord, of the creditworthiness of the replacement guarantor for the purpose of obtaining the approval of the Landlord of the replacement guarantor, which approval shall not be unreasonably withheld, conditioned or delayed.**

[Signature page follows]

---

| |
|:---|
| GUARANTOR: |
| Ascend Wellness Holdings, Inc. |
| By: |
| Name: |
| Title: |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](bmmj_ex991img2.jpg)

**NEWS RELEASE – For Immediate Dissemination**

**Body and Mind Inc. Announces Agreement to Divest from New Jersey**

**LAS VEGAS, NV and VANCOUVER, B.C., CANADA – August 25, 2025** – Body and Mind Inc. (CSE: BAMM, Expert Market: BMMJ) (the "**Company**" or "**BaM**") is pleased to announce the Company's wholly owned subsidiary, DEP Nevada, Inc. ("**DEP**") has entered into a Purchase Agreement with Ascend New Jersey, LLC (the "**Purchaser**"), whereby DEP, which owns 100% of BaM Body and Mind Dispensary NJ, Inc. ("**BAM NJ**") agrees to sell all of the equity interests (the "**Interests**") in BAM NJ to the Purchaser.

The total consideration to be paid by the Purchaser to DEP for the acquisition of the Interests is US$2.0 million in cash with (i) US$1 million less any indebtedness as of the closing date and less any DEP transaction expenses at closing, and (ii) US$1million placed in escrow pending satisfaction of closing conditions. Additional details on the transaction can be found in the Company's current report on Form 8-K, anticipated to be filed on EDGAR in the very near future.

Please visit <u>www.bodyandmind.com</u> for more information.

Twitter: @bodyandmindBaM

**For further information, please contact:**

**Company Contact:**

Michael Mills

President and CEO

Tel: 800-361-6312

ir@bodyandmind.com

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

***Safe Harbor Statement***

*Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of activities, variations in the underlying assumptions associated with the estimation of activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.*

*Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy our securities.*

## Exhibit 99.2

**EXHIBIT 99.2**

![](bmmj_ex992img2.jpg)

**NEWS RELEASE – For Immediate Dissemination**

**Correction - Body and Mind Inc. Announces Agreement to Divest from New Jersey**

**LAS VEGAS, NV and VANCOUVER, B.C., CANADA – August 27, 2025** – Body and Mind Inc. (CSE: BAMM, Expert Market: BMMJ) (the "**Company**" or "**BaM**") is pleased to announce the Company's wholly owned subsidiary, DEP Nevada, Inc. ("**DEP**") has entered into a Purchase Agreement with Ascend New Jersey, LLC (the "**Purchaser**"), whereby DEP, which owns 100% of BaM Body and Mind Dispensary NJ, Inc. ("**BAM NJ**") agrees to sell all of the equity interests (the "**Interests**") in BAM NJ to the Purchaser and a social equity partner (**"Social Equity Partner"**), which will result in Purchaser owning 35% of BAM NJ and Purchaser's Social Equity Partner owning 65% of BAM NJ.

The total consideration to be paid by the Purchaser to DEP for the acquisition of the Interests is US$2.0 million in cash with (i) US$1 million less any indebtedness as of the closing date and less any DEP transaction expenses at closing, and (ii) US$1million placed in escrow pending satisfaction of closing conditions. Additional details on the transaction can be found in the Company's current report on Form 8-K, anticipated to be filed on EDGAR in the very near future.

Please visit <u>www.bodyandmind.com</u> for more information.

Twitter: @bodyandmindBaM

**For further information, please contact:**

**Company Contact:**

Michael Mills

President and CEO

Tel: 800-361-6312

ir@bodyandmind.com

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

***Safe Harbor Statement***

*Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of activities, variations in the underlying assumptions associated with the estimation of activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.*

*Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy our securities.*