Document:

Document

EXHIBIT 10.8

MERCURY SYSTEMS, INC.

Compensation Policy for Non-Employee Directors

Objective

It is the objective of Mercury to compensate non-employee directors in a manner which will enable recruitment and retention of highly qualified directors and fairly compensate them for their services as a director.

Philosophy

Board of Director compensation includes cash and equity.  It is annually reviewed by the Compensation Committee with recommendations to the Board.  This review includes:  

•a market survey of Board compensation to peer companies at the 50th and 75th percentiles;

•a review of Board and Committee meeting frequency;

•Board member personal preparation time for Board and Committee meetings; and

•Board member responsibilities.

The Board targets its annual cash and equity compensation to the 75th percentile of the market.

Cash Compensation

Annual retainer for non-employee directors:            $60,000 per annum, paid quarterly

Additional annual retainers:

Independent Chairman:              $45,000 per annum, paid quarterly

Chairman of the Audit Committee:            $25,000 per annum, paid quarterly

Chairman of the Compensation Committee:           $20,000 per annum, paid quarterly

Chairman of the N&G Committee:             $12,000 per annum, paid quarterly

Chairman of the M&A and Finance Committee:           $12,000 per annum, paid quarterly

Chairman of the Government Relations Committee:     $12,000 per annum, paid quarterly

Directors are entitled to be reimbursed for their reasonable expenses incurred in connection with attendance at Board and committee meetings.

1.1 1

Quarterly retainer payments shall be paid in arrears within 30 days following the end of each quarter.  The full quarterly retainer shall be paid to each director who served on the Board during all or a portion of a quarter.  

Equity Compensation

New non-employee directors will be granted equity awards in connection with their first election to the Board.  These awards will be granted by the Board of Directors and will consist of shares of restricted stock for the number of shares of common stock equal to $225,000 divided by the average closing price of the Company’s common stock during the 30 calendar days prior to the date of grant.  These awards will vest as to 50% of the covered shares on each of the first two anniversaries of the date of grant. 

Non-employee directors may also receive annual restricted stock awards for the number of shares of common stock equal to $150,000 divided by the average closing price of the Company’s common stock during the 30 calendar days prior to the date of grant.  These awards will vest on the first anniversary of the date of grant.

Non-employee directors will not be eligible to receive an annual restricted stock award for the fiscal year in which they are first elected.

Approved by the Board of Directors, as amended, on January 21, 2020 (effective as of July 4, 2020).
1.1 2Exhibit 10.1(i)

 

DEBT PURCHASE AND ASSIGNMENT AGREEMENT

 

 

This
DEBT PURCHASE AND ASSIGNMENT AGREEMENT (“Agreement”) is effective as of June 15, 2020 by and between
Target Group Inc., a Delaware corporation (“Target”), Visava Inc., (“Visava”),
CanaryRx Inc., (“Canary”), CannaKorp Inc,, a Delaware corporation (“CannaKorp”)
and CL Investors Inc. (“CLI”). Visava, Canary and CLI, respectively, are corporations
organized under the laws of the Province of Ontario, Canada. Target, Visava, Canary, CannaKorp and CLI are sometimes referred to
herein collectively as the “Parties” and individually as a “Party”.

 

Background
to the Agreement

 

Visava
is a wholly-owned subsidiary of Target. Canary is the wholly-owned subsidiary of Visava and the second-tier subsidiary of Target.
CannaKorp is a wholly-owned subsidiary of Target. Previously, Target has advanced the aggregate sum of CDN$10,600,000 to Canary
for the construction of Canary’s cannabis cultivation facility in Simcoe, Ontario, Canada. The sums advanced constitute an
unsecured general obligation of Canary to Target, which obligation is hereinafter referred to as the “Canary Debt”.

 

Effective
May 14, 2020, Canary entered into two agreements with 9258159 Canada Inc., a corporation organized under the laws of the Province
of Ontario, Canada, hereinafter referred to as “Thrive”, and with 2755757 Ontario Inc., a corporation
organized under the laws of the Province of Ontario, Canada, hereinafter referred to as “JVCo”
consisting of (i) a Joint Venture Operations Agreement (“JV Agreement”) and (ii) an Unanimous
Shareholder Agreement (“Shareholder Agreement”), collectively referred to herein as the (“Thrive
Agreements”), pursuant to which Canary and Thrive, as equal shareholders, organized and capitalized JVCo for
the cultivation, processing and sale of cannabis from Canary’s Licensed Site, as such term is defined in the Thrive Agreement.

 

Target
is in need of working capital to advance additional funds to Canary for the purpose of fulfilling Canary’s obligations under
the Thrive Agreements. In order to obtain such additional working capital, Target desires to sell the Canary Debt and all rights
thereunder to CLI and CLI desires to purchase the Canary Debt from Target, subject to the terms and conditions of this Agreement.

 

NOW,
THEREFORE, the parties agree as follows:

 

1. Sale
of Canary Debt. Subject to the terms and conditions of this Agreement, at closing (“Closing”),
Target hereby irrevocably sells, assigns, conveys, and transfers all right, title and interest in and to the Canary Debt to CLI,
and CLI agrees to purchase the Canary Debt from Target, and all of Target’s right, title and interest thereto, free and clear
of all liens, claims, pledges, mortgages, restrictions, obligations, security interests and encumbrances of any kind, nature and
description. All references to payments to be made pursuant to the transactions described in this Agreement shall mean Canadian
dollars.

 

2. Purchase
Price. The purchase price (“Purchase Price”) for the Canary Debt shall be CLI’s
payment to Target at Closing of $3,000,000.00, which shall, at the sole and absolute discretion of CLI, be tendered to either Target
by wire transfer pursuant to instructions provided by Target or directly to Canary’s solicitors by wire transfer pursuant
to instructions provided by Target and Canary in connection with the Canary Loan referred to in Section 11 herein provided that
in the event of the foregoing, Canary shall not make any payment to any third party from the said $3,000,000.00 without the prior
written consent of CLE, which consent may not be unreasonably withheld.

 

     

     

    

 

3.
 Issuance of Preferred Stock and Warrants. In addition to the sale, assignment, conveyance and transfer of the
Canary Debt, not later than ten (10) business days following the Closing, as referred to in Section 10 herein, Target will cause
to be issued and delivered to CLI (i) 1,000,000 shares of Target’s Series B Convertible Preferred Stock (“Series
B Stock”) having the same rights, preferences and privileges as Target’s currently outstanding Series A
Preferred Stock; and (ii) a Common Stock Purchase Warrant for 10,000,000 shares of Target common stock in the form set forth in
the attached Appendix A.

 

4. Amendment
of Canary Debt. Contemporaneously with the sale and purchase of the Canary Debt as set forth in Section 1 herein, and as
a condition to the consummation of the transactions contemplated by this Agreement, the terms and conditions of the Canary Debt
will be amended (“Amended Canary Debt”) such that it will be subject to the terms and conditions
set out in the Promissory Note in the form set forth in the attached Appendix B.

 

5. General
Security Agreement. The Amended Canary Debt shall be secured by a security interest (“Security Interest”)
in all of the assets of Target, Visava, Canary and CannaKorp, including without limitation all intellectual property, wherever
situated (“Secured Assets”), pursuant to a general security agreement (“Security
Agreement”) in the form attached hereto as Appendix C.

 

6. Guarantee
by Target, Visava, and CannaKorp. Target, Visava and CannaKorp shall jointly, severally and unconditionally guarantee the
payment of all amounts payable to CLI under the Amended Canary Debt pursuant to a Guarantee in the form attached hereto as Appendix
D.

 

7. Stock Pledges
by Target and by Visava. Target shall execute in favor of CLI a pledge of all of shares of Visava and of CannaKorp Inc.,
respectively, registered in Target’s name and Visava shall execute in favor of CLI a pledge of all shares of Canary registered
in the name of Visava. Such pledges shall be security for the repayment of amounts payable to CLI under the Amended Canary Debt.
The pledges referred to in this Section 7 shall be in the forms attached hereto as Appendix E and Appendix F, respectively.

 

8. Stock
Pledge by Canary. Canary shall execute a pledge in favor of CLI of all of the shares JVCo (“JVCo Shares”)
held by Canary under the Thrive Agreements, which pledge shall be in the form attached hereto as Appendix G.

 

9. Option
to CLI. In lieu of the payment of $3,000,000.00 of the principal balance of the Canary Amended Debt, CLI shall be granted
the option (“Option”) to demand, in its sole and absolute discretion, that (a) Target assign,
transfer and convey to CLI, free and clear of all liens and encumbrances, 75% of the shares of Visava registered in the name of
Target (“Visava Shares”); and/or that (b) Visava assign, transfer and convey to CLI, free and
clear of all liens and encumbrances 75% of the shares of Canary registered in the name of Visava (“Canary Shares”)
pursuant to the terms and provisions of the Option Agreement having the form attached as Appendix H.

 

10. Closing.
 The Closing of the transactions contemplated by this Agreement shall take occur not later than June 22, 2020 (the “Closing
Date”). At Closing, the Parties shall sign and deliver this Agreement and the various Appendices hereto and CLI
shall provide Target with proof of payment of the Purchase Price. The Parties agree that they shall perform all acts and execute
and deliver all other documents and instruments which the Parties and their respective legal counsel deem reasonably necessary
to carry out the terms and conditions of this Agreement. The Closing shall be subject to satisfaction of certain conditions, including
but not limited to the following:

 

     

     

    

 

(i) That the respective
representations and warranties of the Parties contained herein shall then be true in all respects;

 

(ii) That Jerry Zarcone
(“Zarcone”) shall have executed and delivered the Priority Agreement in the form attached as Appendix
I (the “Priority Agreement”) (it being understood and agreed that the terms and provisions of
which Priority Agreement are agreeable to CLI and the other Parties to this Agreement and the Priority Agreement shall also be
executed and delivered by CLI and the other Parties to this Agreement on the Closing);

 

(iii) That Zarcone,
Visava, and CannaKorp shall have released any and all right, title, and interest in and to the Canary Debt and the Amended Canary
Debt pursuant to the terms and conditions of the release having a form reasonably satisfactory to the Parties; and

 

(iv) That Target
shall have executed a transfer, conveyance, and assignment of the Canary Debt to CLI having a form and containing content reasonable
satisfactory to the parties, one of which terms and provisions shall be a release of such Canary Debt upon such transfer, conveyance,
and assignment taking effect.

 

11. Target
Loan to Canary. Immediately following the, Closing, Target shall loan to Canary $3,000,000.00 (“Canary Loan”).
The Canary Loan shall be an unsecured general obligation evidenced by a non-negotiable, non-interest bearing Promissory Note in
the form attached hereto as Appendix J. The use by Canary of the proceeds of the Canary Loan shall be subject to the prior written
approval and consent of CLI, which approval and consent shall not be unreasonably withheld. The Canary Loan shall provide, among
other things, that (a) Target postpone the Canary Loan in favour of the Amended Canary Loan and shall not seek repayment of the
Canary Note so long as any amounts owing on the Amended Canary Debt remains unpaid to CLI pursuant to the terms and provisions
of a postponement having a form and containing terms and provisions reasonably satisfactory to CLI, and (b) in the event CLI shall
exercise its Option described in Section 8 hereof or stock pledge over the shares of Visava or Canary described in Section 7 hereof,
the Canary Loan shall be deemed cancelled, forgiven and of no further force and effect.

 

12. Representations
and Warranties of Target. Target hereby represents and warrants as of the date of the Agreement and as of the Closing as
follows

 

12.1 Organization;
Corporate Matters.

 

(a) It
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. It has the corporate
power and authority to carry on its business as presently conducted and is licensed or qualified to do business in all jurisdictions
in which the character of its properties or nature of its business requires it to be so licensed or qualified.

 

(b) It
has good and marketable title to its properties and other assets, including the shares of Visava and of CannaKorp, free and clear
of all mortgages, pledges, restrictions, liens, charges, encumbrances security interests, obligations (save and except to and in
favour of Zarcone) other than property or an asset as to which it is a lessee, in which case it has a valid leasehold interest.

 

(c) It has good
and marketable title to Canary Debt free and clear of all mortgages, pledges, restrictions, liens, charges, encumbrances, security
interests, obligations (save and except to and in favour of Zarcone which interest shall be released on the Closing) and any prior
right, option or other claim in favor of any other party to purchase either the Canary Debt.

 

     

     

    

 

(d) The Canary
Debt and Amended Canary Debt are validly existing and enforceable obligations according to their terms and conditions.

 

12.2 Authority.
It has full power and authority to enter into this Agreement and all agreements, instruments and other documents to be
executed and delivered in connection with the transactions contemplated by this Agreement (collectively, the “Transaction
Documents” ) to which it is a Party and to perform its obligations hereunder and thereunder. The execution and
delivery by it of this Agreement and each of the Transaction Documents and the consummation by it of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary corporate or other action on its part, and no other corporate or
other proceedings on its part   is necessary to authorize this Agreement or the Transaction Documents or to consummate
the transactions contemplated hereby and thereby. This Agreement constitutes its valid and legally binding obligation and is enforceable
in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency
and other similar laws affecting the enforcement of creditors’ rights generally.

 

12.3 Consents
and Approvals; No Conflict. No filing with, and no permit, authorization, consent or approval of, any third party, public
body or authority is necessary for the consummation by it of the transactions contemplated by this Agreement. Neither the execution
and delivery of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any
of the provisions hereof, will (a) conflict with or result in any breach of any provisions of its Articles of Incorporation, as
amended, or its Bylaws, (b) result in a violation or breach of, or constitute, with or without due notice or lapse of time or both,
a default or give rise to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, license, contract, agreement or other instrument or obligation to which it is a party or
by which any of its properties or assets may be bound or (c) violate any order, writ, injunction, decree, statute, rule or regulation
to which it is subject, or any of its properties or assets, (d) conflict with, result in a breach of, constitute a default under
or accelerate the performance required by or result in the suspension, cancellation, material alteration or creation of an encumbrance
upon any material agreement, license, permit or authority to which it is a party or by which it is bound or to which any of its
assets or property is subject, or (e) violate any provision of law or regulation or any judicial or administrative order, award,
judgment or decree applicable to it, except in the case of clauses (b) (c), (d) and (e) for violations, breaches or defaults by
it which are not in the aggregate material.

 

13. Representations
and Warranties of Visava. Visava hereby represents and warrants as of the date of the Agreement and as of the Closing as
follows:

 

13.1 Organization;
Corporate Matters.

 

(a) It
is a corporation duly organized, validly existing and in good standing under the laws of the Province of Ontario, Canada. It has
the corporate power and authority to carry on its business as presently conducted and is licensed or qualified to do business in
all jurisdictions in which the character of its properties or nature of its business requires it to be so licensed or qualified.

 

(b) It has
good and marketable title to its properties and other assets, including the shares of Canary, free and clear of all mortgages,
pledges, restrictions, liens, charges, encumbrances security interests, obligations (save and except to and in favour of Zarcone)
other than property or an asset as to which it is a lessee, in which case it has a valid leasehold interest.

 

13.2 Authority.
It has full power and authority to enter into this Agreement and all agreements, instruments and other documents to be
executed and delivered in connection with the transactions contemplated by this Agreement (collectively, the “Transaction
Documents” ) to which it is a party and to perform its obligations hereunder and thereunder. The execution and
delivery by it of this Agreement and each of the Transaction Documents and the consummation by it of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary corporate or other action on its part, and no other corporate or
other proceedings on its part   is necessary to authorize this Agreement or the Transaction Documents or to consummate
the transactions contemplated hereby and thereby. This Agreement constitutes its valid and legally binding obligation and is enforceable
in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency
and other similar laws affecting the enforcement of creditors’ rights generally.

 

     

     

    

 

13.3 Consents
and Approvals; No Conflict. No filing with, and no permit, authorization, consent or approval of, any third party, public
body or authority is necessary for the consummation by it of the transactions contemplated by this Agreement. Neither the execution
and delivery of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any
of the provisions hereof, will (a) conflict with or result in any breach of any provisions of its Articles of Incorporation, as
amended, or its Bylaws, (b) result in a violation or breach of, or constitute, with or without due notice or lapse of time or both,
a default or give rise to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, license, contract, agreement or other instrument or obligation to which it is a party or
by which any of its properties or assets may be bound or (c) violate any order, writ, injunction, decree, statute, rule or regulation
to which it is subject, or any of its properties or assets, (d) conflict with, result in a breach of, constitute a default under
or accelerate the performance required by or result in the suspension, cancellation, material alteration or creation of an encumbrance
upon any material agreement, license, permit or authority to which it is a party or by which it is bound or to which any of its
assets or property is subject, or (e) violate any provision of law or regulation or any judicial or administrative order, award,
judgment or decree applicable to it, except in the case of clauses (b) (c), (d) and (e) for violations, breaches or defaults by
it which are not in the aggregate material.

 

14. Representations
and Warranties of Canary. Canary hereby represents and warrants as of the date of the Agreement and as of the Closing as
follows:

 

14.1 Organization;
Corporate Matters.

 

(a) It
is a corporation duly organized, validly existing and in good standing under the laws of the Province of Ontario, Canada. It has
the corporate power and authority to carry on its business as presently conducted and is licensed or qualified to do business in
all jurisdictions in which the character of its properties or nature of its business requires it to be so licensed or qualified.

 

(b) It has
good and marketable title to its properties and other assets, including the shares of JVCo, free and clear of all mortgages, pledges,
restrictions, liens, charges, encumbrances security interests, obligations (save and except to and in favour of Zarcone) other
than property or an asset as to which it is a lessee, in which case it has a valid leasehold interest.

 

(c) The Canary
Debt and Amended Canary Debt are validly existing and enforceable obligations according to their terms and conditions.

 

14.3 Authority.
It has full power and authority to enter into this Agreement and all agreements, instruments and other documents to be
executed and delivered in connection with the transactions contemplated by this Agreement (collectively, the “Transaction
Documents” ) to which it is a party and to perform its obligations hereunder and thereunder. The execution and
delivery by it of this Agreement and each of the Transaction Documents and the consummation by it of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary corporate or other action on its part, and no other corporate or
other proceedings on its part   is necessary to authorize this Agreement or the Transaction Documents or to consummate
the transactions contemplated hereby and thereby. This Agreement constitutes its valid and legally binding obligation and is enforceable
in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency
and other similar laws affecting the enforcement of creditors’ rights generally.

 

14.3 Consents
and Approvals; No Conflict. No filing with, and no permit, authorization, consent or approval of, any third party, public
body or authority is necessary for the consummation by it of the transactions contemplated by this Agreement. Neither the execution
and delivery of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any
of the provisions hereof, will (a) conflict with or result in any breach of any provisions of its Articles of Incorporation, as
amended, or its Bylaws, (b) result in a violation or breach of, or constitute, with or without due notice or lapse of time or both,
a default or give rise to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, license, contract, agreement or other instrument or obligation to which it is a party or
by which any of its properties or assets may be bound or (c) violate any order, writ, injunction, decree, statute, rule or regulation
to which it is subject, or any of its properties or assets, (d) conflict with, result in a breach of, constitute a default under
or accelerate the performance required by or result in the suspension, cancellation, material alteration or creation of an encumbrance
upon any material agreement, license, permit or authority to which it is a party or by which it is bound or to which any of its
assets or property is subject, or (e) violate any provision of law or regulation or any judicial or administrative order, award,
judgment or decree applicable to it, except in the case of clauses (b) (c), (d) and (e) for violations, breaches or defaults by
it which are not in the aggregate material.

 

     

     

    

 

15. Representations
and Warranties of CannaKorp. CannaKorp hereby represents and warrants as of the date of the Agreement and as of the Closing
as follows:

 

15.1 Organization;
Corporate Matters.

 

(a) It
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware USA . It has the
corporate power and authority to carry on its business as presently conducted and is licensed or qualified to do business in all
jurisdictions in which the character of its properties or nature of its business requires it to be so licensed or qualified.

 

(b) It has
good and marketable title to its properties and other assets free and clear of all mortgages, pledges, restrictions, liens, charges,
encumbrances security interests, obligations (save and except to and in favour of Zarcone) other than property or an asset as
to which it is a lessee, in which case it has a valid leasehold interest.

 

15.2 Authority. It
has full power and authority to enter into this Agreement and all agreements, instruments and other documents to be executed
and delivered in connection with the transactions contemplated by this Agreement (collectively, the “Transaction
Documents” ) to which it is a party and to perform its obligations hereunder and thereunder. The execution and
delivery by it of this Agreement and each of the Transaction Documents and the consummation by it of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary corporate or other action on its part, and no other corporate or
other proceedings on its part   is necessary to authorize this Agreement or the Transaction Documents or to consummate
the transactions contemplated hereby and thereby. This Agreement constitutes its valid and legally binding obligation and is enforceable
in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency
and other similar laws affecting the enforcement of creditors’ rights generally.

 

     

     

    

 

15.3 Consents and Approvals;
No Conflict. No filing with, and no permit, authorization, consent or approval of, any third party, public body or authority
is necessary for the consummation by it of the transactions contemplated by this Agreement. Neither the execution and delivery
of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any of the provisions
hereof, will (a) conflict with or result in any breach of any provisions of its Articles of Incorporation, as amended, or its Bylaws,
(b) result in a violation or breach of, or constitute, with or without due notice or lapse of time or both, a default or give rise
to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions of any note, bond,
mortgage, indenture, license, contract, agreement or other instrument or obligation to which it is a party or by which any of its
properties or assets may be bound or (c) violate any order, writ, injunction, decree, statute, rule or regulation to which it is
subject, or any of its properties or assets, (d) conflict with, result in a breach of, constitute a default under or accelerate
the performance required by or result in the suspension, cancellation, material alteration or creation of an encumbrance upon any
material agreement, license, permit or authority to which it is a party or by which it is bound or to which any of its assets or
property is subject, or (e) violate any provision of law or regulation or any judicial or administrative order, award, judgment
or decree applicable to it, except in the case of clauses (b) (c), (d) and (e) for violations, breaches or defaults by it which
are not in the aggregate material.

 

16. Representations
and Warranties of CLI. CLI hereby represents and warrants as of the date of the Agreement and as of the Closing as follows:

 

16.1 Organization;
Corporate Matters.  It is a corporation duly organized, validly existing and in good standing under the laws of the
Province of Ontario, Canada. It has the corporate power and authority to carry on its business as presently conducted and is licensed
or qualified to do business in all jurisdictions in which the character of its properties or nature of its business requires it
to be so licensed or qualified.

 

16.2 Authority.
It has full power and authority to enter into this Agreement and all agreements, instruments and other documents to be
executed and delivered in connection with the transactions contemplated by this Agreement (collectively, the “Transaction
Documents” ) to which it is a party and to perform its obligations hereunder and thereunder. The execution and
delivery by it of this Agreement and each of the Transaction Documents and the consummation by it of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary corporate or other action on its part, and no other corporate or
other proceedings on its part   is necessary to authorize this Agreement or the Transaction Documents or to consummate
the transactions contemplated hereby and thereby. This Agreement constitutes its valid and legally binding obligation and is enforceable
in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency
and other similar laws affecting the enforcement of creditors’ rights generally.

 

16.3 Investment Sophistication. CLI
hereby represents and acknowledges that by and through its officers and directors has sufficient knowledge and experience of financial
and business matters, is able to evaluate the merits and risks of the purchase of the Canary Debt, has the ability to bear the
economic risks of the purchase of the Canary Debt and can afford a complete loss of such investment. It has adequate information
concerning the business and financial condition of the other Parties to make an informed decision regarding the purchase of the
Canary Debt, and has independently and without reliance upon the other Parties made its own analysis and decision to enter into
this Agreement and purchase the Canary Debt. It has been afforded the opportunity to obtain such information necessary to make
an informed decision regarding the entry into this Agreement and for it to evaluate the merits and risks of the purchase of the
Canary Debt. It is not relying on any representation, warranty, covenant or statement made by the other Parties in connection with
the purchase of the Canary Debt, except as contained herein.

 

17. Conditions
to Closing. The obligation of the Parties under this Agreement shall be subject to the each of the following conditions:

 

     

     

    

 

17.1 The
representations and warranties of each of the Parties contained in this Agreement shall be true in all material respects at the
Closing with the same effect as though made at such time. Each of the Parties shall have performed in all material respects all
of their respective obligations and complied in all material respects with all covenants and conditions required by this Agreement
to be performed or complied with by it at or prior to the Closing.

 

17.2 No injunction or restraining order shall be in effect, and no action or proceeding shall have been instituted and, at what would
otherwise have been the Closing, remain pending before a court to restrain or prohibit the transactions contemplated by this Agreement.

 

17.3 All
statutory requirements for the valid consummation by the Company of the transactions contemplated by this Agreement shall have
been fulfilled. All authorizations, consents and approvals of, filings with and notices to any governmental body, court, agency,
official or authority and other persons required to be obtained in order to permit consummation by the Company of the transactions
contemplated by this Agreement shall have been obtained.

 

17.4 There shall not be or exist any change, effect, event, circumstance, occurrence or state of facts that has had, has or which reasonably
could be expected to have a material adverse effect on any of the Parties.

 

18. Survival of Representations,
Warranties and Agreements.  The representations, warranties and agreements contained in this Agreement or in any instrument
delivered pursuant to this Agreement shall survive the consummation of the transactions contemplated hereby and shall remain in
full force and effect after the Closing.

 

19. Miscellaneous.

 

19.1 Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally,
sent by overnight courier, mailed by registered or certified mail (postage prepaid and return receipt requested), to delivered
by electronic transmission with evidence of receipt to the party to whom the same is so delivered, sent or mailed at addresses
set forth below:

 

	 	If to Target:	Anthony Zarcone
	 	 	Chief Executive Officer
	 	 	Target Group Inc.
	 	 	55 Administration Road, Unit #13
	 	 	Vaughan Ontario, Canada  L4K 4G9 
	 	 	Email: tony@targetgroupinc.ca

 

 

	 	with a copy to:	Robert C. Laskowski
	 	 	Robert C. Laskowski  Law Office
	 	 	520 SW Yamhill, Suite 600
	 	 	Portland, OR 97204-1329
	 	 	Email: rcl@roblaw.us

  

     

     

    

 

	 	If to CannaKorp:	Saul Niddam
	 	 	President and Chief Executive Officer
	 	 	55 Administration Road, Unit 13
	 	 	Vaughan, Ontario, Canada L4K 4G9
	 	 	Email: Saul@targetgroupinc.com

 

	 	with a copy to:	Robert C. Laskowski
	 	 	Robert C. Laskowski  Law Office
	 	 	520 SW Yamhill, Suite 600
	 	 	Portland, OR 97204-1329
	 	 	Email: rcl@roblaw.us

 

	 	If to Visava:	Anthony Zarcone
	 	 	President
	 	 	Visava Inc.
	 	 	385 Second Avenue West
	 	 	Simcoe, ON  N3Y 0G1
	 	 	Email: tony@targetgroupinc.ca

 

	 	with a copy to:	John Vitulli Jr.
	 	 	Vitulli Law Group
	 	 	69 Hughson Street North
	 	 	Hamilton, ON  L8R 1G5

 

	 	If to Canary:	Anthony Zarcone
	 	 	Chief Executive Officer
	 	 	CanaryRx Inc.
	 	 	385 Second Avenue West
	 	 	Simcoe, ON  N3Y 0G1
	 	 	Email:tony@targetgroupinc.ca

 

	 	with a copy to:	John Vitulli Jr.
	 	 	Vitulli Law Group
	 	 	69 Hughson Street North
	 	 	Hamilton, ON  L8R 1G5

 

	 	If to CLI:	Jerry Zarcone
	 	 	20 Hempstead Drive
	 	 	Hamilton, ON L8W 2E7

 

	 	with a copy to,	Serena R. Lee
	 	which copy shall	SimpsonWigle Law LLP
	 	not constitute	1006 Skyview Drive, Suite 103
	 	notice:	Burlington, ON, L7P 0V1
	 	 	Email: lees@simpsonwigle.com

  

     

     

    

  

19.2 Parties
in Interest; No Third Party Beneficiaries. Except as otherwise expressly provided herein, all the terms and provisions
of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the respective heirs, beneficiaries,
personal and legal representatives, successors and assigns of the Parties hereto. This Agreement shall not be deemed to confer
upon any person not a Party hereto any rights or remedies hereunder.

 

19.3 Entire
Agreement; Amendments. This Agreement, including the Appendices and other documents and writings referred to herein or
delivered pursuant hereto, which form a part hereof, contains the entire understanding of the Parties with respect to its subject
matter. There are no restrictions, agreements, promises, warranties, covenants or undertakings other than those expressly set forth
herein or therein. This Agreement supersedes all prior agreements and understandings between the Parties with respect to its subject
matter. This Agreement may be amended only by a written instrument duly executed by the Parties or their respective successors
or assigns.

 

19.4 Further Assurances.
Each of the  Parties shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such
further acts, documents and instruments as the other Party may reasonably require from time to time for the purpose of giving effect
to this Agreement and shall use its or their best efforts and take all such steps as may be reasonably within its power to implement
to their full extent the terms of this Agreement. 

 

19.5 Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

 

19.6 Governing
Law; Venue. This Agreement shall be governed by and construed and enforced in accordance with the laws of the Province
of Ontario, Canada, without regard to its conflict of laws doctrines. Any and all actions brought under this Agreement shall be
brought in the appropriate courts of the Province of Ontario, Canada. Each Party hereby waives any right to object to the convenience
of such venue.

 

19.7 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force
and effect and shall in no way be affected, impaired or invalidated and the parties shall negotiate in good faith to modify this
Agreement to preserve each party's anticipated benefits under this Agreement.

 

19.8 Separate
Counsel. Each Party hereby expressly acknowledges that it has been advised to seek its own separate legal counsel for advice
with respect to this Agreement, and that no counsel to any Party hereto has acted or is acting as counsel to any other Party hereto
in connection with this Agreement.

 

19.9 Waiver.
No waiver by any Party of any default or breach by another Party of any representation, warranty, covenant or condition contained
in this Agreement shall be deemed to be a waiver of any subsequent default or breach by such party of the same or any other representation,
warranty, covenant or condition. No act, delay, omission or course of dealing on the part of any Party in exercising any right,
power or remedy under this Agreement or at law or in equity shall operate as a waiver thereof or otherwise prejudice any of such
Party's rights, powers and remedies. All remedies, whether at law or in equity, shall be cumulative and the election of any one
or more shall not constitute a waiver of the right to pursue other available remedies.

 

19.10 Assignability.
This Agreement, together with all other documents and instruments referred to herein, shall not be assigned by operation of law
or otherwise, except as may be mutually agreed upon by the Parties hereto.

 

     

     

    

 

19.11 Publicity.
Except as otherwise required by law or the rules of the United States Securities and Exchange Commission to which Target is subject,
so long as this Agreement is in effect, no Party shall issue or cause the publication of any press release or other public announcement
with respect to the transactions contemplated by this Agreement without the written consent of the other Party, which consent shall
not be unreasonably withheld.

  

19.12 Remedies.  All
representations, warranties, covenants, and obligations in this Agreement shall survive the completion of the transactions contemplated
by this Agreement and, notwithstanding such completion, shall continue in full force and effect from and after the date of this
Agreement for the applicable statute of limitations (“Survival Period”). The right to the
payment of damages or other remedy based on such representations, warranties, covenants, and obligations will not be affected by
any investigation conducted with respect to, or any knowledge acquired, or capable of being acquired at any time, whether before
or after the execution and delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant, or obligation.  The waiver of any condition based on the accuracy of any representation
or warranty, or on the performance of or compliance with any covenant or obligation, will not affect the right to the payment of
damages, or other remedy based on such representations, warranties, covenants, and obligations.

 

IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered by the parties hereto as the date first above written.

 

	TARGET GROUP INC.	 	VISAVA INC.
	 	 	 	 	 
	By:	/s/ Anthony Zacone	 	By:	/s/ Anthony Zacone
	     	Anthony Zarcone, CEO	 	    	Anthony Zarcone, President

 

	CANARY RX INC.	 	CL INVESTORS INC.
	 	 	 	 	 
	By:	/s/ Anthony Zacone	 	By: 	/s/ Jerry Zarcone
	 	Anthony Zarcone, President	      	 	Jerry Zarcone, President

 

	CANNAKORP, INC.	 
	 	 	 
	By: 	/s/ Saul Niddam	 
	     	Saul Niddam, CEO

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