Document:

ex_419562.htm

 

Exhibit 10.36

PLACEMENT AGENCY AGREEMENT

 

__________, 2022

 

Roth Capital Partners, LLC

888 San Clemente Drive

Newport Beach, CA 92660

 

Ladies and Gentlemen:

 

Introduction. Subject to the terms and conditions herein (this “Agreement”), Panbela Therapeutics, Inc., a Delaware corporation (the “Company”), hereby agrees to sell up to an aggregate of $__________ of registered securities of the Company, consisting of __________ shares (the “Shares”) of the Company’s common stock, $0.001 par value per share (the "Common Stock”), pre-funded Common Stock purchase warrants to purchase up to an aggregate of __________ shares of Common Stock (the “Pre-Funded Warrants”, and the Shares issuable upon exercise thereof, the “Pre-Funded Warrant Shares”), and common stock purchase warrants to purchase up to an aggregate of __________ shares of Common Stock (the “Warrants”, and the Shares issuable upon exercise thereof, the “Warrant Shares”, and, together with the Shares, the Pre-Funded Warrants and the Pre-Funded Warrant Shares, the “Securities”) directly to various investors (each, an “Investor” and, collectively, the “Investors”) through Roth Capital Partners, LLC, as placement agent (the “Placement Agent”). The documents executed and delivered by the Company and the Investors in connection with the Offering (as defined below), including, without limitation, a securities purchase agreement (the “Purchase Agreement”), shall be collectively referred to herein as the “Transaction Documents.” The purchase price to the Investors for each Share is $____ and for each Pre-Funded Warrant is $____, the exercise price to the Investors for each share of Common Stock issuable upon exercise of the Pre-Funded Warrants is $0.001, and the exercise price to the Investors for each share of Common Stock issuable upon exercise of the Warrants is $____. The Placement Agent may retain other brokers or dealers to act as sub-agents or selected-dealers on its behalf in connection with the Offering.

 

The Company hereby confirms its agreement with the Placement Agent as follows:

 

Section 1. Agreement to Act as Placement Agent.

 

(a) On the basis of the representations, warranties and agreements of the Company herein contained, and subject to all the terms and conditions of this Agreement, the Placement Agent shall be the exclusive placement agent in connection with the offering and sale by the Company of the Securities pursuant to the Company's registration statement on Form S-1 (File No. 333- 267000) (and including any registration statement prepared and filed by the Company in accordance with Rule 462(b) pursuant to the Securities Act) (the “Registration Statement”), with the terms of such offering (the “Offering”) to be subject to market conditions and negotiations between the Company, the Placement Agent and the prospective Investors. The Placement Agent will act on a reasonable best efforts basis and the Company agrees and acknowledges that there is no guarantee of the successful placement of the Securities, or any portion thereof, in the prospective Offering. Under no circumstances will the Placement Agent or any of its “Affiliates” (as defined below) be obligated to underwrite or purchase any of the Securities for its own account or otherwise provide any financing. The Placement Agent shall act solely as the Company’s agent and not as principal. The Placement Agent shall have no authority to bind the Company with respect to any prospective offer to purchase the Securities and the Company shall have the sole right to accept offers to purchase the Securities and may reject any such offer, in whole or in part. Subject to the terms and conditions hereof, payment of the purchase price for, and delivery of, the Securities shall be made at one or more closings (each a “Closing” and the date on which each Closing occurs, a “Closing Date”). The Closing shall occur via “Delivery Versus Payment”, i.e., on the Closing Date, the Company shall issue the Shares directly to the account designated by the Placement Agent and, upon receipt of such Shares, the Placement Agent shall electronically deliver such Shares to the applicable Investor and payment shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company. As compensation for services rendered, on each Closing Date, the Company shall pay to the Placement Agent the fees and expenses set forth below:

 

(i) A cash fee equal to 7.0% of the gross proceeds received by the Company from the sale of the Securities at the closing of the Offering (the “Closing”).

 

 

 

 

(ii) The Company also agrees to reimburse Placement Agent’s expenses (with supporting invoices/receipts) up to $125,000.

 

(b) The term of the Placement Agent's exclusive engagement will be as set forth in Section 1 of the Engagement Agreement (as defined below). Notwithstanding anything to the contrary contained herein, the provisions concerning confidentiality, indemnification and contribution contained herein and the Company’s obligations contained in the indemnification provisions will survive any expiration or termination of this Agreement, and the Company’s obligation to pay fees actually earned and payable and to reimburse expenses actually incurred and reimbursable pursuant to Section 1 hereof and which are permitted to be reimbursed under FINRA Rule 5110(f)(2)(D)(i), will survive any expiration or termination of this Agreement. Nothing in this Agreement shall be construed to limit the ability of the Placement Agent or its Affiliates to pursue, investigate, analyze, invest in, or engage in investment banking, financial advisory or any other business relationship with Persons (as defined below) other than the Company. As used herein (i) “Persons” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind and (ii) “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”).

 

Section 2. Representations, Warranties and Covenants of the Company. The Company hereby represents, warrants and covenants to the Placement Agent as of the date hereof, and as of each Closing Date, unless such representation, warranty or agreement specifies a different date or time, as follows:

 

(a) Securities Law Filings. The Company has filed with the Securities and Exchange Commission (the “Commission”) the Registration Statement under the Securities Act, which was filed on August 19, 2022 and declared effective on _______, 2022 for the registration of the Securities under the Securities Act. Following the determination of pricing among the Company and the prospective Investors introduced to the Company by Placement Agent, the Company will file with the Commission pursuant to Rules 430A and 424(b) under the Securities Act, and the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a final prospectus relating to the placement of the Securities, their respective pricings and the plan of distribution thereof and will advise the Placement Agent of all further information (financial and other) with respect to the Company required to be set forth therein. Such registration statement, at any given time, including the exhibits thereto filed at such time, as amended at such time, is hereinafter called the “Registration Statement”; such prospectus in the form in which it appears in the Registration Statement at the time of effectiveness, is hereinafter called the “Preliminary Prospectus”; and the final prospectus, in the form in which it will be filed with the Commission pursuant to Rules 430A and/or 424(b) (including the Preliminary Prospectus as it may be amended or supplemented) is hereinafter called the “Final Prospectus.” The Registration Statement at the time it originally became effective is hereinafter called the “Original Registration Statement.” Any reference in this Agreement to the Registration Statement, the Original Registration Statement, the Preliminary Prospectus or the Final Prospectus shall be deemed to refer to and include the documents incorporated by reference therein (the “Incorporated Documents”), if any, which were or are filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), at any given time, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, the Original Registration Statement, the Preliminary Prospectus or the Final Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Preliminary Prospectus or the Final Prospectus, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement to financial statements and schedules and other information which is “contained,” “included,” “described,” “referenced,” “set forth” or “stated” in the Registration Statement, the Preliminary Prospectus or the Final Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Preliminary Prospectus or the Final Prospectus, as the case may be. As used in this paragraph and elsewhere in this Agreement, “Time of Sale Disclosure Package” means the preliminary prospectus, any subscription agreement between the Company and the Investors, the final terms of the Offering provided to the Investors (orally or in writing), and any issuer free writing prospectus as defined in Rule 433 of the Act (each, an “Issuer Free Writing Prospectus”), if any, that the parties hereto shall hereafter expressly agree in writing to treat as part of the Time of Sale Disclosure Package. The term “any Prospectus” shall mean, as the context requires, the Preliminary Prospectus, the Final Prospectus and any supplement to either thereof. The Company has not received any notice that the Commission has issued or intends to issue a stop order suspending the effectiveness of the Registration Statement or the use of the Preliminary Prospectus or any Prospectus Supplement or intends to commence a proceeding for any such purpose.

 

 

 

 

(b) Assurances. The Original Registration Statement, as amended, (and any further documents to be filed with the Commission) contains all exhibits and schedules as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in all material respects with the Securities Act and the applicable Rules and Regulations and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Final Prospectus, as of its date, complied or will comply in all material respects with the Securities Act and the applicable Rules and Regulations. The Final Prospectus, as amended or supplemented, did not and will not contain as of the date thereof any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Incorporated Documents, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations promulgated thereunder, and none of such documents, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated by reference in the Final Prospectus), in light of the circumstances under which they were made not misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission. Except for this Agreement and the Transaction Documents, there are no documents required to be filed with the Commission in connection with the transaction contemplated hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time period. Except for this Agreement and the Transaction Documents, there are no contracts or other documents required to be described in Final Prospectus, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as required. The foregoing shall not apply to statements in, or omissions from, any such document made in reliance upon, and in conformity with, information furnished to the Company by the Placement Agent specifically for use in the preparation thereof.

 

(c) Offering Materials. Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior to each Closing Date, any offering material in connection with the offering and sale of the Securities other than the Time of Sale Disclosure Package.

 

(d) Authorization; Enforcement. The Company has full legal right, power and authority to enter into this Agreement and perform the transactions contemplated hereby. This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(e) No Conflicts. The execution, delivery and performance by the Company of this Agreement, the Transaction Documents and the transactions contemplated pursuant to the Time of Sale Disclosure Package, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(f) Reliance. The Company has not relied upon the Placement Agent or legal counsel for the Placement Agent for any legal, tax or accounting advice in connection with the offering and sale of the Placement Shares. 

 

 

 

 

(g) Forward-Looking Statements. No forward-looking statements (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in the Time of Sale Disclosure Package has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. The Forward Looking Statements incorporated by reference in the Registration Statement and the Prospectus from the Company’s Annual Report on Form 10-K for the fiscal year most recently ended (i) are within the coverage of the safe harbor for forward looking statements set forth in Section 27A of the Securities Act, Rule 175(b) under the Securities Act or Rule 3b-6 under the Exchange Act, as applicable, (ii) were made by the Company with a reasonable basis and in good faith and reflect the Company’s good faith commercially reasonable best estimate of the matters described therein, and (iii) have been prepared in accordance with Item 10 of Regulation S-K under the Securities Act.

 

(h) Representations and Warranties Incorporated by Reference. Each of the representations and warranties (together with any related disclosure schedules thereto) made to the Investors in the Purchase Agreement is hereby incorporated herein by reference (as though fully restated herein) and is hereby made to, and in favor of, the Placement Agent.

 

Section 3. Delivery and Payment. Each Closing shall occur at the offices of Pryor Cashman LLP, 7 Times Square, New York, New York 10036 (“Placement Agent Counsel”) (or at such other place as shall be agreed upon by the Placement Agent and the Company). Subject to the terms and conditions hereof, at each Closing payment of the purchase price for the Securities sold on such Closing Date shall be made by Federal Funds wire transfer, against delivery of such Securities, and such Securities shall be registered in such name or names and shall be in such denominations, as the Placement Agent may request at least one business day before the Closing Date.

 

Deliveries of the documents with respect to the purchase of the Securities, if any, shall be made at the offices of Placement Agent Counsel. All actions taken at a Closing shall be deemed to have occurred simultaneously.

 

Section 4. Covenants and Agreements of the Company. The Company further covenants and agrees with the Placement Agent as follows:

 

(a) Registration Statement Matters. The Company will advise the Placement Agent promptly after it receives notice thereof of the time when any amendment to the Registration Statement has been filed or becomes effective or any supplement to the Final Prospectus has been filed and will furnish the Placement Agent with copies thereof. The Company will file promptly all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 14 or 15(d) of the Exchange Act subsequent to the date of any Prospectus and for so long as the delivery of a prospectus is required in connection with the Offering. The Company will advise the Placement Agent, promptly after it receives notice thereof (i) of any request by the Commission to amend the Registration Statement or to amend or supplement any Prospectus or for additional information, and (ii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto or any order directed at any Incorporated Document, if any, or any amendment or supplement thereto or any order preventing or suspending the use of the Preliminary Prospectus or the Final Prospectus or any prospectus supplement or any amendment or supplement thereto or any post-effective amendment to the Registration Statement, of the suspension of the qualification of the Securities for offering or sale in any jurisdiction, of the institution or threatened institution of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement or a Prospectus or for additional information. The Company shall use its best efforts to prevent the issuance of any such stop order or prevention or suspension of such use. If the Commission shall enter any such stop order or order or notice of prevention or suspension at any time, the Company will use its best efforts to obtain the lifting of such order at the earliest possible moment, or will file a new registration statement and use its best efforts to have such new registration statement declared effective as soon as practicable. Additionally, the Company agrees that it shall comply with the provisions of Rules 424(b), 430A, 430B and 430C, as applicable, under the Securities Act, including with respect to the timely filing of documents thereunder, and will use its reasonable efforts to confirm that any filings made by the Company under such Rule 424(b) are received in a timely manner by the Commission.

 

 

 

 

(b) Blue Sky Compliance. The Company will cooperate with the Placement Agent and the Investors in endeavoring to qualify the Securities for sale under the securities laws of such jurisdictions (United States and foreign) as the Placement Agent and the Investors may reasonably request and will make such applications, file such documents, and furnish such information as may be reasonably required for that purpose, provided the Company shall not be required to qualify as a foreign corporation or to file a general consent to service of process in any jurisdiction where it is not now so qualified or required to file such a consent, and provided further that the Company shall not be required to produce any new disclosure document. The Company will, from time to time, prepare and file such statements, reports and other documents as are or may be required to continue such qualifications in effect for so long a period as the Placement Agent may reasonably request for distribution of the Securities. The Company will advise the Placement Agent promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its best efforts to obtain the withdrawal thereof at the earliest possible moment.

 

(c) Amendments and Supplements to a Prospectus and Other Matters. The Company will comply with the Securities Act and the Exchange Act, and the rules and regulations of the Commission thereunder, so as to permit the completion of the distribution of the Securities as contemplated in this Agreement, the Incorporated Documents and any Prospectus. If during the period in which a prospectus is required by law to be delivered in connection with the distribution of Securities contemplated by the Incorporated Documents or any Prospectus (the “Prospectus Delivery Period”), any event shall occur as a result of which, in the judgment of the Company or in the opinion of the Placement Agent or counsel for the Placement Agent, it becomes necessary to amend or supplement the Incorporated Documents or any Prospectus in order to make the statements therein, in light of the circumstances under which they were made, as the case may be, not misleading, or if it is necessary at any time to amend or supplement the Incorporated Documents or any Prospectus or to file under the Exchange Act any Incorporated Document to comply with any law, the Company will promptly prepare and file with the Commission, and furnish at its own expense to the Placement Agent and to dealers, an appropriate amendment to the Registration Statement or supplement to the Registration Statement, the Incorporated Documents or any Prospectus that is necessary in order to make the statements in the Incorporated Documents and any Prospectus as so amended or supplemented, in light of the circumstances under which they were made, as the case may be, not misleading, or so that the Registration Statement, the Incorporated Documents or any Prospectus, as so amended or supplemented, will comply with law. Before amending the Registration Statement or supplementing the Incorporated Documents or any Prospectus in connection with the Offering, the Company will furnish the Placement Agent with a copy of such proposed amendment or supplement and will not file any such amendment or supplement to which the Placement Agent reasonably objects.

 

 

 

 

(d) Copies of any Amendments and Supplements to a Prospectus. The Company will furnish the Placement Agent, without charge, during the period beginning on the date hereof and ending on the later of the last Closing Date of the Offering, as many copies of any Prospectus or prospectus supplement and any amendments and supplements thereto, as the Placement Agent may reasonably request.

 

(e) Free Writing Prospectus. The Company covenants that it will not, unless it obtains the prior written consent of the Placement Agent, make any offer relating to the Securities that would constitute an Company Free Writing Prospectus or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405 of the Securities Act) required to be filed by the Company with the Commission or retained by the Company under Rule 433 of the Securities Act. In the event that the Placement Agent expressly consents in writing to any such free writing prospectus (a “Permitted Free Writing Prospectus”), the Company covenants that it shall (i) treat each Permitted Free Writing Prospectus as an Company Free Writing Prospectus, and (ii) comply with the requirements of Rule 164 and 433 of the Securities Act applicable to such Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping.

 

(f) Transfer Agent. The Company will maintain, at its expense, a registrar and transfer agent for the Common Stock.

 

(g) Earnings Statement. As soon as practicable and in accordance with applicable requirements under the Securities Act, but in any event not later than 18 months after the last Closing Date, the Company will make generally available to its security holders and to the Placement Agent an earnings statement, covering a period of at least 12 consecutive months beginning after the last Closing Date, that satisfies the provisions of Section 11(a) and Rule 158 under the Securities Act.

 

(h) Periodic Reporting Obligations. During the Prospectus Delivery Period, the Company will duly file, on a timely basis, with the Commission and the Trading Market all reports and documents required to be filed under the Exchange Act within the time periods and in the manner required by the Exchange Act.

 

(i) Additional Documents. The Company will enter into any subscription, purchase or other customary agreements as the Placement Agent or the Investors deem necessary or appropriate to consummate the Offering, all of which will be in form and substance reasonably acceptable to the Placement Agent and the Investors. The Company agrees that the Placement Agent may rely upon, and each is a third party beneficiary of, the representations and warranties, and applicable covenants, set forth in any such purchase, subscription or other agreement with Investors in the Offering.

 

(j) No Manipulation of Price. The Company will not take, directly or indirectly, any action designed to cause or result in, or that has constituted or might reasonably be expected to constitute, the stabilization or manipulation of the price of any securities of the Company.

 

(k) Acknowledgment. The Company acknowledges that any advice given by the Placement Agent to the Company is solely for the benefit and use of the Board of Directors of the Company and may not be used, reproduced, disseminated, quoted or referred to, without the Placement Agent's prior written consent.

 

 

 

 

(l) Announcement of Offering. The Company acknowledges and agrees that the Placement Agent may, subsequent to the Closing, make public its involvement with the Offering.

 

(m) Reliance on Others. The Company confirms that it will rely on its own counsel and accountants for legal and accounting advice.

 

(n) Research Matters. By entering into this Agreement, the Placement Agent does not provide any promise, either explicitly or implicitly, of favorable or continued research coverage of the Company and the Company hereby acknowledges and agrees that the Placement Agent’s selection as a placement agent for the Offering was in no way conditioned, explicitly or implicitly, on the Placement Agent providing favorable or any research coverage of the Company. In accordance with FINRA Rule 2711(e), the parties acknowledge and agree that the Placement Agent has not directly or indirectly offered favorable research, a specific rating or a specific price target, or threatened to change research, a rating or a price target, to the Company or inducement for the receipt of business or compensation.

 

Section 5. Conditions of the Obligations of the Placement Agent. The obligations of the Placement Agent hereunder shall be subject to the accuracy of the representations and warranties on the part of the Company set forth in Section 2 hereof, in each case as of the date hereof and as of each Closing Date as though then made, to the timely performance by each of the Company of its covenants and other obligations hereunder on and as of such dates, and to each of the following additional conditions:

 

(a) Accountants’ Comfort Letter. The Placement Agent shall have received, and the Company shall have caused to be delivered to the Placement Agent, a letter from Cherry Bekaert LLP (the independent registered public accounting firm of the Company), addressed to the Placement Agent, dated as of the Closing Date, in form and substance satisfactory to the Placement Agent. The letter shall not disclose any change in the condition (financial or other), earnings, operations, business or prospects of the Company from that set forth in the Incorporated Documents or the applicable Prospectus or prospectus supplement, which, in the Placement Agent’s sole judgment, is material and adverse and that makes it, in the Placement Agent’s sole judgment, impracticable or inadvisable to proceed with the Offering of the Securities as contemplated by such Prospectus.

 

(b) Compliance with Registration Requirements; No Stop Order; No Objection from the FINRA. Each Prospectus (in accordance with Rule 424(b)) and “free writing prospectus” (as defined in Rule 405 of the Securities Act), if any, shall have been duly filed with the Commission, as appropriate; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission; no order preventing or suspending the use of any Prospectus shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission; no order having the effect of ceasing or suspending the distribution of the Securities or any other securities of the Company shall have been issued by any securities commission, securities regulatory authority or stock exchange and no proceedings for that purpose shall have been instituted or shall be pending or, to the knowledge of the Company, contemplated by any securities commission, securities regulatory authority or stock exchange; all requests for additional information on the part of the Commission shall have been complied with; and the FINRA shall have raised no objection to the fairness and reasonableness of the placement terms and arrangements.

 

 

 

 

(c) Corporate Proceedings. All corporate proceedings and other legal matters in connection with this Agreement, the Registration Statement and each Prospectus, and the registration, sale and delivery of the Securities, shall have been completed or resolved in a manner reasonably satisfactory to the Placement Agent's counsel, and such counsel shall have been furnished with such papers and information as it may reasonably have requested to enable such counsel to pass upon the matters referred to in this Section 5.

 

(d) No Material Adverse Change. Subsequent to the execution and delivery of this Agreement and prior to each Closing Date, in the Placement Agent's sole judgment after consultation with the Company, there shall not have occurred any Material Adverse Effect or any material adverse change or development involving a prospective material adverse change in the condition or the business activities, financial or otherwise, of the Company from the latest dates as of which such condition is set forth in the Registration Statement and Prospectus (“Material Adverse Change”).

 

(e) Opinion of Counsel for the Company. The Placement Agent shall have received on each Closing Date the favorable opinion of US legal counsel to the Company, dated as of such Closing Date, including, without limitation, a negative assurance letter addressed to the Placement Agent and in form and substance satisfactory to the Placement Agent.

 

(f) Officers’ Certificate. The Placement Agent shall have received on each Closing Date a certificate of the Company, dated as of such Closing Date, signed by the Chief Executive Officer and Chief Financial Officer of the Company, to the effect that, and the Placement Agent shall be satisfied that, the signers of such certificate have reviewed the Registration Statement, the Incorporated Documents, the Final Prospectus, and this Agreement and to the further effect that:

 

(i) The representations and warranties of the Company in this Agreement are true and correct, as if made on and as of such Closing Date, and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to such Closing Date;

 

(ii) No stop order suspending the effectiveness of the Registration Statement or the use of the Final Prospectus has been issued and no proceedings for that purpose have been instituted or are pending or, to the Company’s knowledge, threatened under the Securities Act; no order having the effect of ceasing or suspending the distribution of the Securities or any other securities of the Company has been issued by any securities commission, securities regulatory authority or stock exchange in the United States and no proceedings for that purpose have been instituted or are pending or, to the knowledge of the Company, contemplated by any securities commission, securities regulatory authority or stock exchange in the United States;

 

(iii) When the Registration Statement became effective, at the time of sale, and at all times subsequent thereto up to the delivery of such certificate, the Registration Statement and the Incorporated Documents, if any, when such documents became effective or were filed with the Commission, and any Prospectus, contained all material information required to be included therein by the Securities Act and the Exchange Act and the applicable rules and regulations of the Commission thereunder, as the case may be, and in all material respects conformed to the requirements of the Securities Act and the Exchange Act and the applicable rules and regulations of the Commission thereunder, as the case may be, and the Registration Statement and the Incorporated Documents, if any, and any Prospectus, did not and do not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (provided, however, that the preceding representations and warranties contained in this paragraph (iii) shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by the Placement Agent expressly for use therein) and, since the effective date of the Registration Statement, there has occurred no event required by the Securities Act and the rules and regulations of the Commission thereunder to be set forth in the Incorporated Documents which has not been so set forth; and

 

 

 

 

(iv) Subsequent to the respective dates as of which information is given in the Registration Statement, the Incorporated Documents and the Final Prospectus, there has not been: (a) any Material Adverse Change; (b) any transaction that is material to the Company and the Subsidiaries taken as a whole, except transactions entered into in the ordinary course of business; (c) any obligation, direct or contingent, that is material to the Company and the Subsidiaries taken as a whole, incurred by the Company or any Subsidiary, except obligations incurred in the ordinary course of business; (d) any material change in the capital stock (except changes thereto resulting from the exercise of outstanding stock options or warrants) or outstanding indebtedness of the Company or any Subsidiary; (e) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company; or (f) any loss or damage (whether or not insured) to the property of the Company or any Subsidiary which has been sustained or will have been sustained which has a Material Adverse Effect.

 

(g) Bring-down Comfort Letter. On each Closing Date, the Placement Agent shall have received from Cherry Bekaert LLP, or such other independent registered public accounting firm of the Company, a letter dated as of such Closing Date, in form and substance satisfactory to the Placement Agent, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (a) of this Section 5, except that the specified date referred to therein for the carrying out of procedures shall be no more than two business days prior to such Closing Date.

 

(h) Stock Exchange Listing. The Common Stock shall be registered under the Exchange Act and shall be listed on the Trading Market, and the Company shall not have taken any action designed to terminate, or likely to have the effect of terminating, the registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the Trading Market, nor shall the Company have received any information suggesting that the Commission or the Trading Market is contemplating terminating such registration or listing except as disclosed in any Prospectus.

 

(i) Lock-Up Agreements. On the Closing Date, the Placement Agent shall have received the executed lock-up agreement, in the form attached hereto as Exhibit A, from each of the directors and officers of the Company.

 

(j) Warrant Agency Agreement. On the Closing Date, the duly executed warrant agency agreement executed by and between the Company and the transfer agent.

 

Additional Documents. On or before each Closing Date, the Placement Agent and counsel for the Placement Agent shall have received such information and documents as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Securities as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained.

 

 

 

 

If any condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Placement Agent by notice to the Company at any time on or prior to a Closing Date, which termination shall be without liability on the part of any party to any other party, except that Section 6 (Payment of Expenses), Section 7 (Indemnification and Contribution) and Section 8 (Representations and Indemnities to Survive Delivery) shall at all times be effective and shall survive such termination.

 

Section 6. Payment of Expenses. The Company agrees to pay all costs, fees and expenses incurred by the Company in connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby, including, without limitation: (i) all expenses incident to the issuance, delivery and qualification of the Securities (including all printing and engraving costs); (ii) all fees and expenses of the registrar and transfer agent of the Common Stock; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Securities; (iv) all fees and expenses of the Company’s counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts), the Preliminary Prospectus, the Final Prospectus and each Prospectus Supplement, if any, and all amendments and supplements thereto, and this Agreement; (vi) all filing fees, reasonable attorneys’ fees and expenses incurred by the Company or the Placement Agent in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Securities for offer and sale under the state securities or blue sky laws or the securities laws of any other country, and, if requested by the Placement Agent, preparing and printing a “Blue Sky Survey,” an “International Blue Sky Survey” or other memorandum, and any supplements thereto, advising the Placement Agent of such qualifications, registrations and exemptions; (vii) if applicable, the filing fees incident to the review and approval by the FINRA of the Placement Agent's participation in the offering and distribution of the Securities; (viii) the fees and expenses associated with including the Shares, the Warrant Shares and the Pre-Funded Warrant Shares on the Trading Market; (ix) all costs and expenses incident to the travel and accommodation of the Company’s and the Placement Agent's employees on the “roadshow,” if any; and (x) all other fees, costs and expenses referred to in Part II of the Registration Statement.

 

Section 7. Indemnification and Contribution.

 

(a) The Company agrees to indemnify and hold harmless the Placement Agent, its affiliates and each person controlling the Placement Agent (within the meaning of Section 15 of the Securities Act), and the directors, officers, agents and employees of the Placement Agent, its affiliates and each such controlling person (the Placement Agent, and each such entity or person. an “Indemnified Person”) from and against any losses, claims, damages, judgments, assessments, costs and other liabilities (collectively, the “Liabilities”), and shall reimburse each Indemnified Person for all fees and expenses (including the reasonable fees and expenses of one counsel for all Indemnified Persons, except as otherwise expressly provided herein) (collectively, the “Expenses”) as they are incurred by an Indemnified Person in investigating, preparing, pursuing or defending any Actions, whether or not any Indemnified Person is a party thereto, (i) caused by, or arising out of or in connection with, any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Incorporated Document, or any Prospectus or by any omission or alleged omission to state therein a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (other than untrue statements or alleged untrue statements in, or omissions or alleged omissions from, information relating to an Indemnified Person furnished in writing by or on behalf of such Indemnified Person expressly for use in the Incorporated Documents) or (ii) otherwise arising out of or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to this Agreement, the transactions contemplated thereby or any Indemnified Person's actions or inactions in connection with any such advice, services or transactions; provided, however, that, in the case of clause (ii) only, the Company shall not be responsible for any Liabilities or Expenses of any Indemnified Person that are finally judicially determined to have resulted solely from such Indemnified Person's (x) gross negligence or willful misconduct in connection with any of the advice, actions, inactions or services referred to above or (y) use of any offering materials or information concerning the Company in connection with the offer or sale of the Securities in the Offering which were not authorized for such use by the Company and which use constitutes gross negligence or willful misconduct. The Company also agrees to reimburse each Indemnified Person for all Expenses as they are incurred in connection with enforcing such Indemnified Person's rights under this Agreement.

 

 

 

 

(b) Upon receipt by an Indemnified Person of actual notice of an Action against such Indemnified Person with respect to which indemnity may be sought under this Agreement, such Indemnified Person shall promptly notify the Company in writing; provided that failure by any Indemnified Person so to notify the Company shall not relieve the Company from any liability which the Company may have on account of this indemnity or otherwise to such Indemnified Person, except to the extent the Company shall have been prejudiced by such failure. The Company shall, if requested by the Placement Agent, assume the defense of any such Action including the employment of counsel reasonably satisfactory to the Placement Agent, which counsel may also be counsel to the Company. Any Indemnified Person shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company has failed promptly to assume the defense and employ counsel or (ii) the named parties to any such Action (including any impeded parties) include such Indemnified Person and the Company, and such Indemnified Person shall have been advised in the reasonable opinion of counsel that there is an actual conflict of interest that prevents the counsel selected by the Company from representing both the Company (or another client of such counsel) and any Indemnified Person; provided that the Company shall not in such event be responsible hereunder for the fees and expenses of more than one firm of separate counsel for all Indemnified Persons in connection with any Action or related Actions, in addition to any local counsel. The Company shall not be liable for any settlement of any Action effected without its written consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent of the Placement Agent (which shall not be unreasonably withheld), settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened Action in respect of which indemnification or contribution may be sought hereunder (whether or not such Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination includes an unconditional release of each Indemnified Person from all Liabilities arising out of such Action for which indemnification or contribution may be sought hereunder. The indemnification required hereby shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable.

 

(c) In the event that the foregoing indemnity is unavailable to an Indemnified Person other than in accordance with this Agreement, the Company shall contribute to the Liabilities and Expenses paid or payable by such Indemnified Person in such proportion as is appropriate to reflect (i) the relative benefits to the Company, on the one hand, and to the Placement Agent and any other Indemnified Person, on the other hand, of the matters contemplated by this Agreement or (ii) if the allocation provided by the immediately preceding clause is not permitted by applicable law, not only such relative benefits but also the relative fault of the Company, on the one hand, and the Placement Agent and any other Indemnified Person, on the other hand, in connection with the matters as to which such Liabilities or Expenses relate, as well as any other relevant equitable considerations; provided that in no event shall the Company contribute less than the amount necessary to ensure that all Indemnified Persons, in the aggregate, are not liable for any Liabilities and Expenses in excess of the amount of fees actually received by the Placement Agent pursuant to this Agreement. For purposes of this paragraph, the relative benefits to the Company, on the one hand, and to the Placement Agent on the other hand, of the matters contemplated by this Agreement shall be deemed to be in the same proportion as (a) the total value paid or contemplated to be paid to or received or contemplated to be received by the Company in the transaction or transactions that are within the scope of this Agreement, whether or not any such transaction is consummated, bears to (b) the fees paid to the Placement Agent under this Agreement. Notwithstanding the above, no person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act, as amended, shall be entitled to contribution from a party who was not guilty of fraudulent misrepresentation.

 

 

 

 

(d) The Company also agrees that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to this Agreement, the transactions contemplated thereby or any Indemnified Person's actions or inactions in connection with any such advice, services or transactions except for Liabilities (and related Expenses) of the Company that are finally judicially determined to have resulted solely from such Indemnified Person's gross negligence or willful misconduct in connection with any such advice, actions, inactions or services.

 

(e) The reimbursement, indemnity and contribution obligations of the Company set forth herein shall apply to any modification of this Agreement and shall remain in full force and effect regardless of any termination of, or the completion of any Indemnified Person's services under or in connection with, this Agreement.

 

Section 8. Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company or any person controlling the Company, of its officers, and of the Placement Agent set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of the Placement Agent, the Company, or any of its or their partners, officers or directors or any controlling person, as the case may be, and will survive delivery of and payment for the Securities sold hereunder and any termination of this Agreement. A successor to a Placement Agent, or to the Company, its directors or officers or any person controlling the Company, shall be entitled to the benefits of the indemnity, contribution and reimbursement agreements contained in this Agreement.

 

Section 9. Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered, e-mailed or telecopied and confirmed to the parties hereto as follows:

 

If to the Placement Agent to the address set forth above, attention: Head of Equity Capital Markets, e-mail: rothecm@roth.com

 

With a copy to: 

 

Pryor Cashman LLP

7 Times Square

New York, New York 10036

E-mail: ali.panjwani@pryorcashman.com

Attention: M. Ali Panjwani, Esq.

 

 

 

 

If to the Company:

 

Panbela Therapeutics, Inc.

712 Vista Blvd., Suite 305

Waconia, Minnesota 55387

E-Mail: jsimpson@panbela.com

Attention: Jennifer K. Simpson,

Chief Executive Officer

 

With a copy to: 

 

Faegre Drinker Biddle & Reath LLP

90 South Seventh Street

2200 Wells Fargo Center

Minneapolis, Minnesota 55402-3901

Attention: Joshua L. Colburn and W. Jason Deppen

Email: joshua.colburn@faegredrinker.com; jason.deppen@faegredrinker.com

 

Any party hereto may change the address for receipt of communications by giving written notice to the others.

 

Section 10. Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers and directors and controlling persons referred to in Section 7 hereof, and to their respective successors, and personal representative, and no other person will have any right or obligation hereunder.

 

Section 11. Partial Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

Section 12. Governing Law Provisions. This Agreement shall be deemed to have been made and delivered in New York City and both this engagement letter and the transactions contemplated hereby shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal laws of the State of New York, without regard to the conflict of laws principles thereof. Each of the Placement Agent and the Company: (i) agrees that any legal suit, action or proceeding arising out of or relating to this engagement letter and/or the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Placement Agent and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York and agrees that service of process upon the Company mailed by certified mail to the Company’s address shall be deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding, and service of process upon the Placement Agent mailed by certified mail to the Placement Agent’s address shall be deemed in every respect effective service process upon the Placement Agent, in any such suit, action or proceeding. Notwithstanding any provision of this engagement letter to the contrary, the Company agrees that neither the Placement Agent nor its affiliates, and the respective officers, directors, employees, agents and representatives of the Placement Agent, its affiliates and each other person, if any, controlling the Placement Agent or any of its affiliates, shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement and transaction described herein except for any such liability for losses, claims, damages or liabilities incurred by us that are finally judicially determined to have resulted from the willful misconduct or gross negligence of such individuals or entities. If either party shall commence an action or proceeding to enforce any provision of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

 

 

 

Section 13. General Provisions.

 

(a) This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. Notwithstanding anything herein to the contrary, the Engagement Agreement, dated August 9, 2022 (the “Engagement Agreement”), between the Company and Roth Capital Partners, LLC shall continue to be effective and the terms therein shall continue to survive and be enforceable by the Placement Agent in accordance with its terms, provided that, in the event of a conflict between the terms of the Engagement Agreement and this Agreement, the terms of this Agreement shall prevail. This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement.

 

(b) The Company acknowledges that in connection with the offering of the Securities: (i) the Placement Agent has acted at arm’s length, are not agents of, and owe no fiduciary duties to the Company or any other person, (ii) the Placement Agent owes the Company only those duties and obligations set forth in this Agreement and (iii) the Placement Agent may have interests that differ from those of the Company. The Company waives to the full extent permitted by applicable law any claims it may have against the Placement Agent arising from an alleged breach of fiduciary duty in connection with the offering of the Securities

 

[The remainder of this page has been intentionally left blank.]

 

 

 

 

 

If the foregoing is in accordance with your understanding of our agreement, please sign below whereupon this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms.

 

	 	
			Very truly yours,

			
	 	 	 
	 	
			PANBELA THERAPEUTICS, INC., a Delaware corporation

			
	 	
			By:

				 
	 	 	
			Name: Jennifer K. Simpson

			
	 	 	
			Title: President and Chief Executive Officer

			

 

The foregoing Placement Agency Agreement is hereby confirmed and accepted as of the date first above written.

 

	
			ROTH CAPITAL PARTNERS, LLC

			
	
			By:

				 	 
	 	
			Name:

				 
	 	
			Title:edbl_ex101.htm

EXHIBIT 10.1
  
 ASSET PURCHASE AGREEMENT WITH REAL ESTATE
  
 This Asset Purchase Agreement with Real Estate (“Agreement”) is made as of the 30th day of August, 2022 (“Effective Date”), by and between Greenleaf Growers, Inc. a Michigan corporation, of 2960 Madison Avenue SE, Grand Rapids, MI 49548 (“Company”); NJD Investments, LLC, a Michigan limited liability, of 2960 Madison Avenue SE, Grand Rapids, MI 49548 and Soleri, LLC, a Michigan limited liability, of 2960 Madison Avenue SE, Grand Rapids, MI 49548 (collectively, “Real Estate Owners”); Nicholas DeHaan, of 2421 Wrenwood Street SW, Wyoming, MI 49519 ("Owner"; Company, Real Estate Owners and Owner are, collectively, “Seller”), and 2900 Madison Ave Holdings, LLC, a Michigan limited liability company, of 55 Campau Ave. NW, Suite 300, Grand Rapids, Michigan 49503 (“Buyer”).
  
 BACKGROUND
  
 Nicholas is the sole shareholder of the Company. The Company operates an agriculture, bedding plants and hanging baskets business (the “Business”) from a facility located at 2900 Madison Ave. SE, Grand Rapids, Michigan, which is included in the real property described herein (see Schedule 1.2, the "Real Property"). This Agreement contemplates a transaction in which Buyer will purchase the Real Property and substantially all of the assets used or held for use by the Company relating to the Business.
  
 AGREEMENT
  
 The parties, intending to be legally bound, agree as follows.
  
 ARTICLE I
 PURCHASE AND SALE OF ASSETS AND REAL PROPERTY
  
 1.1 Purchase and Sale of Assets. Buyer agrees to purchase from the Company and the Company agrees to sell, transfer, assign, convey to Buyer all of the Company’s right, title and interest in and to all of the assets owned or used by the Company in the conduct of the Business (collectively, the “Purchased Assets”), free and clear of any security interest, pledge, mortgage, lien, charge, restriction, or other encumbrance, including without limitation any lien for taxes due but unpaid (collectively “Lien”). Without limiting the generality of the foregoing, the Purchased Assets shall include all of the Company’s right, title and interest in and to the following:
  
 (a) all vehicles, fixtures, fixed assets, and equipment used in connection with the Business, including without limitation those items listed on the attached Schedule 1.1(a);
  
 (b) all of the following, including all goodwill associated therewith, in any jurisdiction throughout the world used in connection with the Business: (i) all trademarks, service marks, trade dress, logos, slogans, trade names, including without limitation the name “Greenleaf Growers” and all derivations thereof, and all applications, registrations, and renewals in connection therewith, (ii) all copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith, (iii) all trade secrets and confidential business information; (iv) all websites, domain names, online blog ownership, telephone numbers, Post Office Box address, social media content and domains, user names and passwords for all customer accounts and systems, and online written content; and (v) accounting software and data contained therein (collectively, “Intellectual Property Assets”);
  
  
 	 
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 (c) all software, electronic systems and databases and all information contained therein relating to the Company;
  
 (d) all raw material inventory, finished goods inventory, spare parts, supplies, and other inventory of Company (“Inventory”);
  
 (e) all documents that are used in, held for use in or intended to be used in, or that arise primarily out of, the Business, including documents relating to products, services, marketing, advertising, promotional materials, Intellectual Property Assets, and all files, customer files and documents (including credit information), customer lists, supplier lists, pricing information, records, literature and correspondence;
  
 (f) all licenses, permits and registrations used by the Company in the Business, all of which are listed on the attached Schedule 1.1(f);
  
 (g) all rights of the Company under or pursuant to all warranties, representations and guarantees made by suppliers and contractors to the extent relating to products sold, or services provided, to the Company or to the extent affecting any Purchased Assets and/or the Business;
  
 (h) the Company’s rights in and to any and all Contracts identified on the attached Schedule 1.1(h) (“Assumed Contracts”); and
  
 (i) all goodwill and other intangible assets associated with the Business, including intangibles and the goodwill associated with the Purchased Assets.
  
 1.2 Purchase and Sale of Real Property. Buyer agrees to purchase from Real Estate Owners and Real Estate Owners agree to sell to Buyer on the terms and subject to the conditions set forth in this Agreement, the Real Property, which is more particularly described on Schedule 1.2 attached hereto, and which includes Real Estate Owner's interest in all improvements, fixtures, easements, hereditaments, and appurtenances associated with the Real Property.
  
 1.3 Excluded Assets. Notwithstanding the foregoing, the Purchased Assets shall not include Seller’s cash or cash equivalents, accounts receivable, or those items listed in Schedule 1.3.
  
 1.4 No Assumption of Liabilities. Other than the obligations arising after the Closing under the Assumed Contracts (the “Assumed Liabilities”), Buyer shall not assume, and in no event shall be deemed to have assumed, any debt, claim, contract, obligation or other liability of Seller, whether asserted or not, including without limitation any product liability or product warranty claims, tax liabilities of Seller relating to the Purchased Assets or the Real Property or otherwise incurred by Seller prior to the Closing Date, or any obligations or liabilities of Seller owing to its shareholders, members or affiliates.
  
 1.5 Purchase Price. The purchase price for the Real Property and the Purchased Assets shall be Two Million Eight Hundred Eighty-Six Thousand and 00/100 Dollars ($2,886,000.00) (the “Purchase Price”). The Purchase Price shall be paid by Buyer as follows:
  
  
 	 
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 (a) One Million Seven Hundred Fifty Thousand and 00/100 Dollars ($1,750,000.00) to Seller in cash at Closing, by wire transfer or other immediately available funds (the “Cash Payment”).
  
 (b) One Million One Hundred Thirty-Six Thousand and 00/100 Dollars ($1,136,000) in the form of one or more promissory notes in the form attached hereto as Exhibit A (the “Promissory Notes”). The Promissory Notes will be secured by a mortgage on the Real Property and a lien on the assets of the Buyer. The Promissory Notes will be guaranteed pursuant to the Guaranty referenced in Section 2.3(j).
  
 1.6 Allocation of the Purchase Price. The allocation of the Purchase Price among the Purchased Assets and Real Property for all purposes, including financial accounting and tax purposes, as well as the allocation of the Cash Payment and Promissory Note portion of the Purchase Price, shall be as set forth on the attached Schedule 1.6. The parties agree to prepare all tax reporting, including IRS Form 8594, consistent with this allocation.
  
 ARTICLE II 
 CLOSING AND CLOSING DATE
  
 2.1 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place in escrow at the offices of the Title Company or such other location mutually agreed upon by the parties, or remotely by the exchange of electronic signatures, on a date to be mutually determined by Buyer and Seller (the “Closing Date”) that is on or before August 31, 2022; provided, however, Buyer may elect to extend the Closing Date for a period of fifteen (15) days thereafter by written notice to Seller.
  
 2.2 Closing Deliveries by Seller. At the Closing, Seller shall deliver to Buyer the following, executed by the proper parties:
  
 (a) a Covenant Deed for the Real Property, in the form attached hereto as Exhibit B;
  
 (b) a fully executed Assignment and Bill of Sale, the form of which is attached hereto as Exhibit C;
  
 (c) a fully executed Assignment and Assumption Agreement, the form of which is attached hereto as Exhibit D;
  
 (d) a fully executed Non-Compete Agreement, the form of which is attached hereto as Exhibit E;
  
 (e) a fully executed Consulting Agreement, the form of which is attached hereto as Exhibit F;
  
 (f) a fully executed Escrow Agreement (if applicable);
  
 (g) certificates of title, free and clear of any and all liens and security interests, and duly endorsed to Buyer, for all titled vehicles included in the Purchased Assets;
  
  
 	 
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 (h) a closing statement setting forth the Purchase Price and closing adjustments (“Closing Statement”);
  
 (i) a certificate of non-foreign status in the form prescribed by the Title Company;
  
 (j) a certificate of the secretaries of the Company and Real Estate Owners, respectively, in form and substance reasonably satisfactory to Buyer, certifying as to (i) the articles of incorporation of Company and articles of organization of Real Estate Owners, (ii) the Bylaws of the Company and Operating Agreements of Real Estate Owners, (iii) the resolutions of the shareholders and directors of the Company approving and authorizing this Agreement and the transactions contemplated by this Agreement and the resolutions of the members and managers authorizing and approving this Agreement for Real Estate Owners, and (iv) a good standing certificate of the Company and Real Estate Owners issued by the State of Michigan; and
  
 (k) any other documents and instruments required by this Agreement or reasonably requested by Buyer or the Title Company to effect or evidence the transactions contemplated by this Agreement.
  
 2.3 Closing Deliveries by Buyer. At the Closing, Buyer shall deliver to the appropriate Seller the following, executed by the proper parties:
  
 (a) the Purchase Price, Promissory Notes, mortgage, security agreement and guaranty;
  
 (b) the fully executed Assignment and Bill of Sale;
  
 (c) the fully executed Assignment and Assumption Agreement;
  
 (d) the Non-Compete Agreement;
  
 (e) the fully executed Consulting Agreement;
  
 (f) a fully executed Escrow Agreement (if applicable);
  
 (g) a Closing Statement;
  
 (h) a Residential Real Estate Lease between Buyer, as landlord, and the current residents of the dwelling, as tenant, in the form of Exhibit G1, with respect to the real property commonly known as 2976 Madison Ave. SE, Grand Rapids, Michigan, Being Tax Parcel No. 41-18-18-201-026. Such Residential Real Estate Lease shall include a rent-free period from the Closing Date through August 31, 2023 (the “Parcel 43 Lease”);
  
 (i) a Residential Real Estate Lease between Buyer, as landlord, and the current residents of the dwelling, as tenant, in the form of Exhibit G2, with respect to the real property commonly known as 2896 Madison Ave. SE, Grand Rapids, Michigan, being Tax Parcel No. 41-18-18-201-043 (which lease includes the adjacent storage building). Such Residential Real Estate Lease shall include a rent-free period for three (3) years following the Closing Date (the “Parcel 26 Lease”);
  
  
 	 
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 (j) Buyer shall cause Edible Garden AG Incorporated, a Delaware corporation, to deliver the Guaranty to Seller in the form of Exhibit H; and
  
 (k) any other documents and instruments required by this Agreement or reasonably requested by Seller or Title Company to effect or evidence the transactions contemplated by this Agreement.
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF SELLER
  
 For the purposes of this Agreement, the phrase “to the Seller’s knowledge” means such knowledge as the Company, Real Estate Owners, and their officers, directors, shareholders, members, and managers, including without limitation the Owners, actually have. The Company, Real Estate Owners, and Owners jointly and severally represent and warrant to Buyer, both as of the Effective Date and as of the Closing Date, as follows:
  
 3.1 Organization of Seller. The Company is a Michigan corporation, duly organized, validly existing, and in good standing under the laws of the State of Michigan and has full power to carry on its business as now being conducted. Each Real Estate Owner is a Michigan limited liability company, duly organized, validly existing, and in good standing under the laws of the State of Michigan and has full power to carry on its business as now being conducted.
  
 3.2 Authorization. Seller has full power and authority to execute and deliver this Agreement and all other agreements and documents to be executed and delivered by Seller in connection with the consummation of the transactions contemplated hereby and to perform its obligations under it. The execution, delivery, and performance by Seller of this Agreement, and the documents to be delivered hereunder, and the consummation of the transactions contemplated hereby, have been duly authorized by all requisite actions on the part of Seller. This Agreement and the documents to be delivered hereunder constitute legal, valid, and binding obligations of Seller, enforceable against Seller in accordance with their respective terms.
  
 3.3 Non-contravention. To Sellers' knowledge, neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Seller is subject or any provision of the articles of incorporation, articles of organization, bylaws, or operating agreement of Seller or (ii) except as disclosed in Schedule 3.3, conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Seller is a party or by which Seller is bound or to which any of a Seller’s assets are subject. Except as disclosed in Schedule 3.3, Seller does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency, or any other third party, in order to consummate the transactions contemplated by this Agreement.
   
  
 	 
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 3.4 Tax Matters.
  
 (a) “Taxes” shall mean all taxes, charges, fees, levies, or other assessments (whether U.S. federal, state, local, or foreign) based upon or measured by income and any other tax whatsoever, including, without limitation, single business, gross receipts, profits, premium, sales, use, occupation, value added, ad valorem, transfer, franchise, withholding, payroll, employment, unemployment, excise, windfall profits, license, occupation, or real or personal property taxes, together with any interest, penalties, or additions to tax resulting from, attributable to, or incurred in connection with any such taxes or any contest or dispute thereof. 
  
 (b) The Seller has (i) filed all federal, state, county, and local income, business, excise, withholding, property, sales, use, franchise, unemployment compensation, and other tax returns and related information which are required to be filed by it as of the date hereof and as of the Closing Date, (ii) prepared and filed all such tax returns in accordance with applicable law, and (iii) paid in full all taxes, interest, penalties, assessments, or deficiencies thereon which have become due pursuant to such returns or pursuant to any assessment which has become due or payable. Such returns are true, correct, accurate, and complete. None of the Purchased Assets or Real Property are or at the Closing Date will be encumbered by any Liens arising out of any unpaid Taxes (except for Taxes that are not yet due and payable) and, to Seller’s knowledge, there are no grounds for the assertion or assessment of any Liens against any of the Purchased Assets or Real Property in respect of any Taxes (other than Liens for Taxes, if payment thereof is not yet due).
  
 (c) The Company will have sufficient cash and other assets available for payment of all Taxes of Seller in connection with the Business.
  
 (d) All Taxes that Company has been required to collect or withhold for in connection with the Business, including, but not limited to, any employee, independent contractor, creditor, stockholder, or other party, have been duly withheld or collected and, to the extent required, have been paid to the proper taxing authority. Seller has not received any reports or other written assertions by agents of any taxing authority of any deficiencies or other Liabilities for Taxes in connection with the Business with respect to taxable periods for which the limitations period has not run. Seller has not waived any statute of limitations in respect of Taxes in connection with the Business or agreed to any extension of time with respect to a Tax assessment or deficiency in connection with the Business.
  
 3.5 Inventory. To Sellers' knowledge, and except as otherwise disclosed to Buyer, all of the Inventory of the Business consists of a quality and quantity usable and, with respect to finished goods, saleable, in the ordinary course of business. The quantities of each item of Inventory are consistent with the past practices of the Company, except for soil inventory (see Schedule 1.3). The Company has not sold inventory to customers, distributors, sales agents, resellers, or similar Persons in excess of such Person’s reasonable anticipated needs in the ordinary course of business, including through volume discounts, rebates or similar incentives, or credit terms not reasonably consistent with prior practices with respect to such customer, distributor, sales agent, reseller, or similar Person.
  
 3.6 Litigation. No Seller has been served with any claim, action, suit, proceeding, or governmental investigation (“Action”) of any nature pending or, to Seller’s knowledge, threatened against or by Seller (a) relating to or affecting the Seller, the Business, the Purchased Assets, the Real Property, or the Assumed Liabilities; or (b) that challenges or seeks to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement. To Seller’s knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.
  
  
 	 
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 3.7 Broker’s Fees. Seller has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for which Buyer could become liable or obligated.
  
 3.8 Title to and Condition and Sufficiency of the Purchased Assets and Real Property. Seller has, and at the Closing, Buyer will receive good and marketable title to, all of the tangible Purchased Assets and Real Property free and clear of all Liens, except as disclosed to Buyer by Seller, in the Buyer's survey, or in the title commitment for the Real Property, and except for encumbrances set forth in Schedule 3.8 which encumbrances will be removed at Closing. As to the Intangible Assets, Seller warrants that to its knowledge it has the sole and exclusive right, title and interest in and to all of its names, common law trademarks and servicemarks, copyrights, customer lists, supplier lists, and other intangible property. Seller has not been charged with any claim of, or been served with a legal action or proceeding alleging its infringement of any proprietary rights, names or marks of any other person or entity and Seller has no knowledge, or any reasonable grounds to know, of any such infringement. To Seller’s knowledge, it holds valid licenses for the computer programs used by the Business, but does not warrant the transferability of said licenses.
  
 To Seller's knowledge, and except as set forth in Schedule 3.8A, the Purchased Assets and the improvements and fixtures located on the Real Property are in good condition and working order and free from material defects, and no material repairs to or replacements of the Purchased Assets, improvements, or fixtures are needed. The Purchased Assets constitute all the personal property and assets, tangible and intangible (including, without limitation, contract rights), that are used or are necessary for the conduct of, the Business in accordance with present practices (except the Excluded Assets).
  
 3.9 Permits and Licenses. To Seller's knowledge, Seller has all necessary permits, certificates, licenses, approvals, consents, and other authorizations required to carry on and conduct the Business and to own, lease, use, and operate the Purchased Assets and Real Property at the places in the manner in which the Business is conducted, all of which to the extent transferable shall be transferred or assigned to Buyer at the Closing, provided that transfer fees, renewal fees and related licensing fees shall be at the Buyer's expense.
  
 3.10 Customers and Supplier. Schedule 3.10(a) lists the ten (10) largest customers of the Business for each of the three (3) most recent fiscal years and sets forth opposite the name of each such customer the dollar amount and percentage of net sales of the Business attributable to such customer. Schedule 3.10(b) lists the ten (10) largest suppliers to the Business (based upon dollar amount of purchases by Seller) and sets forth opposite the name of each such supplier the dollar amount of purchases attributable to such supplier. No customer or supplier of the Seller (i) has canceled, or threatened in writing to cancel, or otherwise modify its relationship with Seller or, after Closing, with Buyer, (ii) to Seller’s knowledge, intends to cancel or otherwise modify its relationship with Seller or, after Closing, with Buyer. All sales to customers and purchases from suppliers have been made on an arm’s length basis.
  
  
 	 
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 3.11 Contracts. Schedule 3.11 includes an accurate and complete list of all material contracts to which Seller is a party (“Contracts”), whether written or oral, and identifies each Contract by the parties thereto and the date, subject matter and term thereof. Each Contract is valid and binding on Seller in accordance with its terms and is in full force and effect. To Seller's knowledge, neither Seller or any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received any notice of any intention to terminate, any Contract. To Seller's knowledge, no event or circumstance has occurred that, with or without notice or lapse of time or both, would constitute an event of default under any Contract, or result in a termination thereof, or would cause or permit the acceleration or other changes of any right or obligation, or the loss of benefit thereunder. Complete and correct copies of each contract to which the Seller is a party, including Contracts, have been made available to Buyer. To Seller's knowledge, there are no disputes pending or threatened under any Contract. Except as set forth on Schedule 3.11, all Contracts are assignable to Buyer without the consent of any other Person.
  
 3.12 Intellectual Property. To the Seller's knowledge the Company is the sole and exclusive owner of, or appropriate licensee of, all right, title, and interest in and to all of the Intellectual Property Assets, free and clear of all Liens. Seller has not been charged with any claim of, or been served with a legal action or proceeding alleging its infringement of any Intellectual Property Assets of any other person or entity and Seller has no knowledge, or any reasonable grounds to know, of any such infringement. To Seller’s knowledge, the Company holds valid licenses for the computer programs used by the Business, but does not warrant the transferability of said licenses.
  
 3.13 Financial Statements. Attached as Schedule 3.13 are true and complete copies of the following financial statements (collectively, the “Financial Statements”): (a) the balance sheets and related statements of income and cash flows of the Company for the fiscal years ended December 31, 2020, and December 31, 2021, and (b) the internally prepared balance sheet and related statements for each full calendar month in 2022 through June. All Financial Statements are in accordance with the books and records of the Company, and such books and records of the Company are materially true, complete, and accurate in all respects. Each of the balance sheets included in the Financial Statements fairly presents, in all material respects, the financial position of the Company as of its date, and each of the related statements of income and cash flows included within the Financial Statements fairly presents, in all material respects, the results of operations and cash flows of the Company as of its date.
  
 3.14 No Undisclosed Liabilities. To Seller's knowledge, and except as otherwise disclosed in the Financial Statements or pending orders and payables incurred in the ordinary course of the Business, the Company does not have any debts, liabilities, or obligations of any kind or character whatsoever, whether accrued, absolute, contingent, matured, not matured, known, unknown, or otherwise, and whether or not of a character as would be required to be reflected in the Financial Statements.
  
 3.15 No Adverse Changes. Since September 30, 2021, and except for the death of John DeHaan, there has not been any occurrence, condition, or development uniquely applicable to the Seller (as opposed to the industry or economy in general) that has adversely affected, or is likely to adversely affect, the Company, or its prospects, condition (financial or otherwise), operations, assets, or the Business.
  
  
 	 
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 3.16 Employees. Schedule 3.16 contains a complete and accurate list of all Company employees, together with each such employee’s date of hire, title or position, accrued vacation and/or paid time off, current salary or wages, the date and amount of last pay change, accrued but unpaid bonuses that the Company owes any employee, current benefits, and a description of any restrictive covenants to which such employee is bound. Real Estate Owners do not have, and have never had, any employees. There is not now, nor has there been at any time during the past five (5) years, any strike, lockout, grievance, other labor dispute, or trouble of any nature pending or threatened against the Company or that in any manner affects the Company. To Seller's knowledge, the Company is and has been in compliance with all rules regulating employee wages and hours. On the Closing Date, the Company shall have paid all its accrued obligations relating to employees (whether arising by operation of law, by contract, or by past service) or payments to trusts or other funds, to any governmental agency, or to any individual employee (or his or her legal representatives) with respect to unemployment compensation benefits, or Social Security benefits. To Seller's knowledge, the Company has complied with all requirements of the U.S. Immigration and Nationality Act, as amended, including without limitation all employment verification and antidiscrimination provisions applicable to current and former employees of the Company. All of the Company’s employees are employees-at-will, may, subject to applicable law, be terminated at any time in accordance with the written policies of the Company for any lawful reason or for no reason.
  
 3.17 Employee Benefit Plans. 
  
 (a) Schedule 3.17 lists all compensation and benefit plans, contracts, and arrangements maintained, sponsored, or participated in by the Company in connection with the Business, and in effect as of the date hereof including, without limitation, all pension (including all such employee pension benefit plans as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), profit-sharing, savings and thrift, fringe benefit, bonus, incentive or deferred compensation, severance pay, medical and life insurance plans, and employee welfare benefit plans as defined in Section 3(1) of ERISA that are sponsored by the Company and in which any employees of the Company in connection with the Business participate (collectively, “Employee Benefit Plans”).
  
 (b) Company has no Employee Benefit Plans sponsored by the Company that are “employee pension benefit plans” as defined in Section 3(2) of ERISA
  
 (c) Neither the Company nor any of its Affiliates is or has ever been required to contribute to any “multiemployer plan,” as such term is defined in Section 4001(a)(3) of ERISA, in which employees of the Company in connection with the Business participate.
  
 (d) No Employee Benefit Plan provides, and neither the Company nor Owners have promised to provide, medical, surgical, hospitalization, death, or similar benefits (whether or not insured) for employees for periods extending beyond their termination of service (including retirement), including without limitation any payment of an employee or former employee’s portion of COBRA continuation coverage premiums, other than (i) coverage mandated by applicable law, or (ii) death benefits under any Employee Benefit Plan.
  
  
 	 
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 3.18 Compliance with Laws. To Seller's knowledge, the Seller at all times has been, and are and at Closing will be, in full compliance with all federal, state, and local laws, rules, regulations, codes, and ordinances applicable to the conduct or operation of the Business, the Purchased Assets, and/or the Real Property, and Seller has not received, and to Seller's knowledge there is no basis for, any notice or other communication from any governmental authority or any other person regarding any actual, alleged, possible or potential violation of, or failure to comply with, any applicable law, rule, regulation, code, or ordinance.
  
 3.19 Insurance. Schedule 3.19 contains a summary of Seller’s loss-run reports for the last three (3) years, together with a list of each insurance policy (including any “key man” policies, insuring the life of a person other than the Owner, and any policies providing property, casualty, liability, and workers’ compensation coverage and bond and surety arrangements) to which Seller is a party, a named insured, or otherwise the beneficiary of coverage in connection with the Business or any Purchased Assets, and for each such policy, lists the amount of such coverage and whether the policy is a claims made or occurrence policy. Except as set forth on Schedule 3.19, there are no outstanding claims by Seller under any such insurance policies, there have been no claims by Seller under any such insurance policies in the last three (3) years, and there have been no historical gaps in coverage. Seller has not, with respect to the Business or the Purchased Assets, been refused any insurance nor has Seller’s coverage been canceled or limited by any insurance carrier to which it has applied for any insurance or with which it has carried insurance during the last three (3) years. Seller has, with respect to the Business and the Purchased Assets, complied with any and all requirements of each insurer of each insurance policy, timely and duly given all notices required to have been given to any insurance company, and no insurance company has asserted in writing that any claim by Seller is not covered by the applicable policy relating to such claim.
  
 3.20 Product Liability and Warranty. To Seller's knowledge, Seller does not have any liability (and to Seller’s knowledge, there is no basis for any Action against Seller giving rise to any liability) arising out of any injury to individuals or damage to property as a result of the ownership, possession, or use of any product sold, leased, assembled, repaired, restored, manufactured, or delivered by Company in connection with the Business. No service offered, or product manufactured, assembled, repaired, restored, sold, leased, or delivered by Company in connection with the Business is subject to any guaranty, warranty, or other indemnity of the Company
  
 3.21 Real Property.
  
 (a) Real Property Owners have good and marketable fee simple title to the Real Property, free and clear of all encumbrances except as set forth in the Title Commitment, encroachments by one parcel of Real Property on another parcel of Real Property, the Permitted Exceptions (see Section 6.2(a)) or otherwise disclosed to Buyer;
  
  
 	 
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 (b) To Seller's knowledge, there are no claims, litigation, proceedings, inquiries, investigations, or disputes pending or threatened against or relating to the Real Property or Real Property Owners, and Real Property Owners do not know or have reason to know of any ground for any such litigation or proceeding;
  
 (c) Except for the Leases listed on the attached Schedule 3.21(c) (“Leases”), which Leases shall be terminated by Seller on or before Closing, there are no leases or other occupancy agreements affecting any portion of the Real Property, and at Closing there will be no parties in possession of any portion of the Real Property or parties with any rights of possession to any portion of the Real Property except as referenced in Section 2.3;
  
 (d) There are no maintenance or other contracts affecting the Real Property that cannot be terminated by the Real Property Owners at or before Closing;
  
 (e) To Seller's knowledge, the Real Property is in full compliance with all federal, state, and local laws, statutes, ordinances, rules, regulations, and codes, including without limitation applicable zoning ordinances, and with all restrictions, covenants, easements, agreements, and other documents listed as exceptions in the Title Commitment, except encroachments by one parcel of Real Property on another parcel of Real Property, or otherwise disclosed to Buyer;
  
 (f) There are no undisclosed obligations or agreements of Real Property Owners affecting the Real Property and to Seller's knowledge there are no actions, suits or proceedings pending or threatened against or relating to Real Property Owners or all or any portion of the Real Property in any court or before any federal, state, county or municipal department, commission, board, agency or other governmental instrumentality which, if successful, would prevent Real Property Owners from completing the sale of the Real Property or prevent Buyer from using the Real Property for operating the Business consistent with past practices. Real Property Owners have not received notice of non-compliance with any applicable laws, ordinances, regulations, statutes, rules, covenants and restrictions pertaining to the Real Property.
  
 3.22 Environmental Matters.
  
 (a) The following terms used in this Section 3.23 have the meanings set forth below:
  
 (i) “Environmental Law(s)” shall mean any federal, state, county, municipal and local, foreign and other statutes, laws, rules, regulations, and ordinances or rule of common law that relate to or deal with protection of human health, safety, or the environment (including the Occupational Safety and Health Act, 29 USC 651 et seq.), or that govern (A) the existence, cleanup and/or remediation of Hazardous Substances on property; (B) the release, emission, or discharge of Hazardous Substances into the environment; (C) the control of hazardous waste; or (D) the use, generation, transport, treatment, storage, disposal, removal, or recovery of Hazardous Substances, including building materials, all as may be from time to time amended or enacted or promulgated.
  
  
 	 
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 (ii) “Hazardous Substance(s)” shall mean (A) any oil, flammable substances, explosives, radioactive materials, hazardous substances or wastes, toxic substances or wastes, pollutants, contaminants, or any related materials or substances identified in or regulated by any Environmental Law (including any hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act (42 USC 9601 et seq.)); and (B) asbestos, polychlorinated biphenyls, urea formaldehyde, nuclear fuel or material, chemical waste, explosives, carcinogens, petroleum products and by-products (including any fraction thereof), and radon.
  
 (b) To Seller's knowledge, Seller is now and has at all times been in full compliance with all Environmental Laws, and (i) Seller has no known liabilities (whether accrued, absolute, contingent, matured, not matured, or otherwise) under or by virtue of any Environmental Laws; (ii) to Seller's knowledge, neither Seller nor its directors, officers, employees, or agents have generated, treated, stored, transported, or arranged for the transportation of or disposal of any Hazardous Substances at any time that have been transported to or disposed of in any landfill or other facility where the transportation or disposal could create liability to Seller or Buyer or any unit of government or any third party.
  
 (c) To Seller's knowledge (i) There are no known substances or conditions in or on the Real Property, or at any geologically or hydrogeologically adjoining property that may support a claim or cause of action against Seller or Buyer under any Environmental Laws; and (ii) there are not, and never have been, any known underground storage tanks located in or under the Real Property, except as otherwise disclosed to Buyer's professional environmental company.
  
 (d) To Seller's knowledge, no activity has been undertaken on the Real Property while the Real Property was under the ownership of Seller or, to the Sellers’ knowledge, prior thereto, or at any geologically or hydrogeologically adjoining property that would cause or contribute to (i) the Real Property becoming a treatment, storage, or disposal facility within the meaning of any Environmental Laws; (ii) a release or threatened release of any Hazardous Substances; or (iii) the discharge of pollutants or effluents into any water source or system, any navigable waters, into the air, or the dredging or filling of any navigable waters, or where the action would require a permit under any Environmental Laws. To Seller's knowledge, Seller has obtained all permits required by all applicable Environmental Laws, and all of those permits are in full force and effect.
  
 (e) Seller has disclosed and delivered to Buyer all environmental reports and investigations, including but not limited to, copies and results of any studies, analyses, tests, or monitoring that it has in its possession or that Seller has ever obtained or ordered with respect to the Real Property.
  
 3.23 Full Disclosure. No representation or warranty of Seller made in this Agreement, nor any written statement or certificate furnished to the Buyer pursuant hereto, or in connection with the transactions contemplated hereby, contains any untrue statement of material fact, or omits to state a material fact necessary to make the statement or facts contained herein or therein not misleading.
   
  
 	 
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 ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF BUYER
  
 4.1 Organization of Buyer. Buyer is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Michigan and has full power to carry on its business as now being conducted.
  
 4.2 Authorization. Buyer has full power and authority to execute and deliver this Agreement and all other agreements and documents to be executed and delivered by Buyer in connection with the consummation of the transactions contemplated hereby and to perform its obligations under it. This Agreement constitutes the valid and legally binding obligation of Buyer. Buyer has taken all necessary action to approve the execution, delivery and performance of this Agreement and all other agreements and documents related hereto.
  
 4.3 Non-Contravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which Buyer is subject or any provision of the articles of incorporation, articles of organization, bylaws, or operating agreement of Buyer or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Buyer is a party or by which Buyer is bound. Buyer does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency, or any other third party, in order to consummate the transactions contemplated by this Agreement.
  
 4.4 Broker’s Fees. Buyer has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for which Seller could become liable or obligated.
  
 4.5. Knowledge. Buyer has no knowledge of any material inaccuracy in any representation or breach of any warranty of Seller contained in this Agreement, or any failure by Seller to perform or observe in full, or to have performed or observed in full, any covenant, agreement or condition to be performed or observed by Seller under this Agreement.
  
 ARTICLE VI
 COVENANTS
  
 5.1 Further Assurances. Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments, conveyances, and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the documents to be delivered hereunder.
  
 5.2 Post-Closing Consents. Buyer and Seller will use their commercially reasonable efforts from and after the Closing Date to obtain any necessary third-party consents that have not been obtained by Seller prior to the Closing Date in those situations where the parties have agreed to proceed with closing without such consents.
  
  
 	 
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 5.3 Proration and Transfer Taxes. Seller shall pay any and all transfer taxes and revenue stamps resulting from or relating to the sale of the Real Property. Seller shall pay all delinquent real property taxes, and installments of assessments which are due and payable against the Real Property as of the date of closing, but all taxes and installments of assessments first due and payable in the year of closing shall be prorated on a calendar year basis, without regard to the lien date. Seller shall be responsible for that portion of such taxes and installments of assessments from January 1 through, but not including, the date of closing. Buyer shall be responsible for that portion of such taxes and installments of assessments from the date of closing through the end of the year.
  
 5.4 Closing Costs and Transfer Taxes. Buyer shall pay the following expenses incurred in connection with the transactions described herein: (a) one-half of all closing fees charged by the Title Company, (b) the fee for the recording of the covenant deed, (c) all premiums and charges for any endorsements to the Title Policy requested by Buyer, (d) the cost of the Survey obtained by Buyer (if any), and (d) Buyer’s legal fees and expenses. Seller shall pay the following expenses incurred in connection with the transactions described herein: (i) the costs of the Commitment and Title Policy, and the cost of removing all unpermitted exceptions from title, (ii) one-half of all closing fees charged by the Title Company, (iii) Seller’s legal fees and expenses, and (iv) all real property transfer taxes and documentary stamp taxes, and other such taxes and fees (including penalties and interest) incurred in connection with this Agreement. At Closing, Seller agrees to pay Buyer one-half of Buyer’s costs associated with the preparation of its Baseline Environmental Assessment prepared by Grand Environmental, not to exceed $6,000.
  
 5.5 Public Announcements. Unless otherwise required by applicable law, neither Seller nor Buyer shall make announcements (whether public or private) prior to the Closing regarding this Agreement or the transactions contemplated hereby without the prior written consent of the Buyer.
  
 5.6 Employee Matters. Buyer may, but shall have no obligation to, offer employment to the Company’s employees, and the Company shall cooperate with and shall make available to Buyer, to the extent permitted by applicable law, all information and documents as may be necessary, to assist and coordinate the employment by the Buyer of any such employees. Effective as of the close of business on the Closing Date, the Company shall terminate the employment of all of the Company’s employees and the Company shall be responsible for, and Buyer shall not assume any responsibility for, severance, accrued leave, accrued vacation, retirement benefits, health benefits, and other employee benefits or liabilities attributable to the service of Seller’s employees prior to the Closing Date; provided, however, that Buyer may elect at the time of Closing to assume some or all of such obligations in exchange for an equivalent cash payment from the Seller or a reduction in the Purchase Price. Notwithstanding anything to the contrary in the foregoing, Buyer may modify, alter, or terminate the employment of, or any of the terms and conditions of employment of the Company’s employees who become employees of Buyer.
  
  
 	 
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 5.7 Name Change. On the Closing Date, the Company shall file a Certificate of Amendment to its Articles of Incorporation with respect to the name “Greenleaf Growers” and, thereafter, will not use, operate under, or file with respect to any name that is the same as or similar to “Greenleaf Growers.” 
  
 5.8 Tax Clearance. Within 180 days after the Closing Date, the Company shall deliver to Buyer a tax clearance certificate from the State of Michigan’s Department of Treasury in connection with the transactions contemplated by this Agreement and evidence of the payment in full or other satisfaction of any taxes owed by the Company.
  
 5.9 Business Operations. From the Effective Date through the Closing Date (or, if applicable, the termination of this Agreement), the Company shall: (a) conduct the Business in the ordinary course in a manner consistent with past practice; (b) maintain its properties and other assets in good working condition (normal wear and tear excepted); and (c) use its reasonable efforts to maintain the Business, including its employees, customers, assets and operations, as an ongoing concern in accordance with past practice.
  
 5.10 EA Guaranty. Guarantor guarantees the performance of the Buyer under this Agreement.
  
 5.11. Business Transition. The Company and Buyer agree to the Business Transition provisions set out in Schedule 5.11.
  
 ARTICLE VI
 CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE
  
 Buyer’s obligation to close the transactions contemplated in this Agreement shall be conditioned and contingent upon resolution, or waiver by Buyer, of each of the following:
  
 6.1 [Intentionally deleted.] 
  
 6.2 Real Property Due Diligence.
  
 (a) Buyer's obligation to close is contingent upon Real Estate Owners ability to convey good and marketable title to the Real Property to Buyer by a Covenant Deed, subject only to the exceptions that are permitted by this Agreement. As evidence of Real Estate Owners’ title, Buyer shall, within fourteen (14) days of the Effective Date, order at Seller’s expense from First American Title Company (“Title Company”), a commitment (“Title Commitment”) to issue an owner’s title insurance policy insuring Buyer in the amount of that portion of the Purchase Price allocated to the Real Property, which shall be in a form approved by the American Land Title Association (“ALTA”) and acceptable to the Buyer.
  
 If the Title Commitment or a survey obtained by Buyer shows that Real Estate Owners do not have fee simple title to the Real Property, or that the Real Property is subject to liens, easements, exceptions or restrictions which are not acceptable to Buyer (“title exceptions”), then Buyer may, at its sole option, elect to terminate this Agreement, and upon such election neither party shall have any further obligation, recourse, and/or claim to or against the other. Alternatively, Buyer may elect to accept title as disclosed and proceed to close as per the terms of this Agreement.
  
  
 	 
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 The matters disclosed to Buyer in the title commitment, in any recorded document, in Buyer's survey or as would be disclosed by a reasonable survey, or observable on the Real Property, and not objected to by Buyer or accepted by Buyer herein shall be the “Permitted Exceptions”, provided, however, than Seller shall pay all financial liens, taxes and assessments affecting the Real Property at Closing, except as such are expressly assumed or prorated in this Agreement, and such shall not be included in the Permitted Exceptions. At Closing, Real Property Owners shall convey to Buyer by covenant deed title to the Real Property, subject only to the Permitted Exceptions.
  
 (b) Buyer may, at its expense, prior to Closing obtain a survey (“Survey”) of the Real Property.
  
 (c) Buyer and its agents, consultants, and designees (“Buyer’s Agents”) may from time to time inspect the Real Property and may enter the Real Property to perform any and all inspections Buyer desires, so long as in doing so, neither Buyer nor its agents unreasonably interfere with the use and enjoyment of the Real Property by Seller. Within five (5) days of the Effective Date, Seller shall provide to Buyer copies of the following documents to the extent that they are in Seller’s possession or control (collectively, “Seller’s Documents”): (i) all title policies and title abstracts for and surveys of the Real Property; (ii) all documents relating to environmental matters affecting the Real Property (including, without limitation, reports, studies, memoranda, correspondence, test results, maps and borings/well logs); (iii) any notices with respect to the Real Property received from a governmental agency; (iv) all leases, licenses, or occupancy agreements affecting the Real Property; (v) all maintenance and other contracts affecting the Real Property; and (vi) all plans, specifications, designs and drawings of or with respect to any buildings and improvements located on the Real Property.
  
 (d) Without limiting the generality of the foregoing, Buyer and Buyer’s Agents shall have the right to conduct an environmental assessment of the Real Property in one or more phases, including the procurement and analysis of samples of soil, groundwater, indoor air, or any other environmental medium, and any building component or other material located at the Real Property. The cost of the environmental assessment shall be borne by Buyer. Seller shall provide access and information to, and otherwise cooperate with, Buyer and Buyer’s Agents in the environmental assessment. Buyer shall have the right to interview representatives of Seller who have or may have knowledge of conditions and events relevant to the operating history or environmental condition of the Real Property.
  
 (e) The results of all Real Property due diligence shall be satisfactory to Buyer in its sole discretion.
  
 6.3 Business Due Diligence. From the Effective Date through the Closing Date (the “Due Diligence Deadline”), Buyer shall have full access to the Seller’s facilities, records, key employees, customers, suppliers, and advisors for the purpose of conducting the Buyer’s due diligence with respect to all aspects of Seller, the Business, the Purchased Assets and the Assumed Liabilities, the results of which shall be satisfactory to Buyer in its sole discretion. Buyer may contact the Business employees, customers and suppliers only upon written notice and consent of the Company, and, if requested by the Company, with a Company representative present. Such due diligence will include, but not be limited to, a complete review of the financial, legal, tax, intellectual property, labor records, agreements, and any other information deemed relevant by Buyer.
  
  
 	 
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 Company shall have delivered to Buyer a Tax Status Letter from the Michigan Department of Treasury (“Treasury”) and a letter from the Michigan Unemployment Insurance Agency (“UIA”) stating the current amount of unpaid taxes and/or fees owed to the Treasury and the UIA, respectively, by Company. In the event Company owes the Treasury or the UIA any unpaid taxes and/or fees, Buyer may deposit in escrow a portion of the Cash Payment equal to the amount of outstanding taxes as shown in the Tax Status Letter and the communications from the UIA (“Tax Escrow Amount”), to be held pursuant to a mutually acceptable escrow agreement (the “Escrow Agreement”).
  
 6.4 Representations, Warranties, and Covenants of Seller. The representations and warranties of Seller contained in this Agreement and all related documents shall be true and correct on the date of this Agreement and at and as of the Closing Date. Seller shall have in all respects performed and complied with all covenants, agreements, and conditions that this Agreement and all related documents require to be performed or complied with before or at the Closing.
  
 6.5 No Litigation. No proceeding or investigation shall have been instituted before or by any court or governmental body to restrain or prevent the carrying out of the transactions contemplated by this Agreement, or that might affect Buyer’s right to own, operate, and control the Purchased Assets or the Real Property after the Closing Date.
  
 6.6 All Necessary Consents Obtained. Seller shall have obtained, in writing, all third-party consents and/or regulatory approvals necessary or desirable to consummate or to facilitate consummation of this Agreement and any related transactions. The third-party consents and/or regulatory approvals shall be delivered to Buyer before Closing and shall be reasonably acceptable to Buyer in form and substance.
  
 6.7 Board Approval. Buyer shall have obtained approval of the Member of the Buyer, and of the Member’s Board of Directors if applicable, for the consummation of the transactions contemplated by this Agreement.
  
 6.8 Residential Leases. Buyer and the current residents of such dwellings shall agree on the forms of the Parcel 43 Lease and the Parcel 26 Lease. Such forms shall be acceptable to Buyer in its sole discretion.
  
 6.9 No Adverse Changes in Business; Business Operated in Ordinary Course. From and after the Effective Date and through and including the Closing Date, the Business shall have been operated in the ordinary course consistent with past practices, and there shall have been no material adverse change or development in the Business, its properties, results of operations, financial condition, assets, or volume of sales or service orders, and no fact or condition shall exist or be contemplated or threatened that will, or in Buyer’s reasonable judgment will be likely to, cause such a change or development.
  
  
 	 
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 6.10 Real Property Documents. Buyer or the Title Company shall have received Affidavit(s) in the form prescribed by the Title Company for the removal of its standard printed exceptions and an ALTA owner’s title insurance policy which shall insure Buyer’s title as required herein.
  
 ARTICLE VIA
 CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO CLOSE
  
 Seller's obligation to close the transactions contemplated in this Agreement shall be conditioned and contingent upon resolution, or waiver by Seller, of each of the following:
  
 6.1A Representations, Warranties, and Covenants of Buyer. The representations and warranties of Buyer contained in this Agreement and all related documents shall be true and correct on the date of this Agreement and at and as of the Closing Date. Buyer shall have in all respects performed and complied with all covenants, agreements, and conditions that this Agreement and all related documents require to be performed or complied with before or at the Closing.
  
 6.2A No Litigation. No proceeding or investigation shall have been instituted before or by any court or governmental body to restrain or prevent the carrying out of the transactions contemplated by this Agreement, or that might affect Buyer’s right to own, operate, and control the Purchased Assets or the Real Property after the Closing Date.
  
 ARTICLE VII
 INDEMNIFICATION
  
 7.1 Survival. All representations and warranties contained in this Agreement shall survive the Closing Date until the date that is 18 months after the Closing Date; provided, however, (i) representations or warranties which are the basis for claims asserted in writing under this Agreement prior to the expiration of such time period shall survive until final resolution of those claims; and (ii) the representations and warranties contained in Sections 3.1 (Organization of Seller), 3.2 (Authorization), 3.3 (Non-contravention), 3.4 (Tax Matters), 3.8 (Title to and Condition and Sufficiency of Purchased Assets and Real Property), 3.14 (No Undisclosed Liabilities), 3.21 (Real Property), and 3.22 (Environmental Matters), and any claim based upon fraud, intentional misrepresentation or willful misconduct, shall survive the Closing Date without limitation as to time.
  
 7.2 Seller’s Indemnification of Buyer. Company and Real Estate Owners shall, jointly and severally, defend, indemnify, and hold harmless Buyer, Buyer’s members, managers, and officers (“Buyer Indemnitees”) from and against any and all claims, judgments, damages, liabilities, settlements, losses, costs and expenses, including actual attorneys’ fees and disbursements (“Losses”), and including any Losses that arise in the absence of a third-party claim, in connection with or resulting from:
  
  
 	 
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 (a) Except for the Assumed Liabilities, all debts, liabilities, and obligations of Seller of any kind or character whatsoever to the extent existing or arising from facts and circumstances in existence at or before or after the Closing, including, without limiting the generality of the foregoing, debts, liabilities, and obligations of Seller arising from negligence, gross negligence, strict liability, tort, toxic tort, environmental liabilities, violations of law, default under any contract, or otherwise attributable to Seller or for which Seller shall be responsible, and whether any such debts, liabilities, and obligations are accrued, absolute, contingent, matured, not matured, known, unknown, or otherwise.
  
 (b) Any inaccuracy in any representation or breach of any warranty of Seller contained in this Agreement (whether made at the date of this Agreement or the Closing Date).
  
 (c) Any failure by Seller to perform or observe in full, or to have performed or observed in full, any covenant, agreement, or condition to be performed or observed by the Seller under this Agreement or any other document signed by Seller at or as part of Closing.
  
 7.3 Buyer’s Indemnification of Seller. Buyer shall defend, indemnify, and hold harmless Company, Real Estate Owners, and Owner from and against any and all Losses, and including any Losses that arise in the absence of a third-party claim, in connection with or resulting from:
  
 (a) Any inaccuracy in any representation or any breach of any warranty of Buyer contained in this Agreement;
  
 (b) Buyer’s failure to perform or observe in full, any covenant, agreement, or condition to be performed or observed by Buyer under this Agreement;
  
 (c) The Assumed Liabilities; or
  
 (d) All debts, liabilities, and obligations of Buyer of any kind or character whatsoever, including any claim, debts, liabilities or obligations relating to the conduct of the Business after the Closing, including, without limiting the generality of the foregoing, debts, liabilities, and obligations of Buyer arising from negligence, gross negligence, strict liability, tort, toxic tort, environmental liabilities, violations of law, default under any contract, or otherwise attributable to Buyer or for which Buyer shall be responsible, and whether any such debts, liabilities, and obligations are accrued, absolute, contingent, matured, not matured, known, unknown, or otherwise.
  
 7.4 Right of Setoff. Upon written notice to Seller, Buyer shall have the option to set off the amount of any Losses incurred by Buyer for which Buyer is entitled to indemnification under this Article VII against payments to be made by Buyer under the Promissory Notes. In the event that Seller objects to the set off, Buyer shall deposit the required payments under the Promissory Notes in a mutually agreed escrow pending resolution of said claims. This right of setoff shall be the sole remedy of the Buyer for indemnification by Seller or breach by Seller of this Agreement, except for fraud or misrepresentation on the part of the Seller.
  
  
 
 	 
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ARTICLE VIII
 MISCELLANEOUS
  
 8.1 Expenses. Except as expressly set forth herein, each of the parties will bear all of its own legal, accounting, investment banking, and other expenses incurred in connection with this Agreement whether or not the transaction contemplated by this Agreement is consummated.
  
 8.2 Termination. This Agreement may be terminated at any time by mutual agreement of the parties. Buyer may terminate this Agreement at any time on or before the Closing Date if any of the conditions precedent specified in Article VI above remain unsatisfied to Buyer’s reasonable satisfaction. Seller may terminate this Agreement at any time on or before the Closing Date if any of the conditions precedent specified in Article VIA above remain unsatisfied to Seller’s reasonable satisfaction, or if this transaction has not closed by the date set forth in Section 2.1.
  
 8.3 [Intentionally Deleted.]
  
 8.4 Governing Law; Jurisdiction; Venue.
  
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan without regard to conflicts-of-law principles that would require the application of any other law.
  
 (b) Seller and Buyer irrevocably submit to the jurisdiction of the Circuit Court of Kent County, Michigan in any action arising out of or relating to this Agreement, and hereby irrevocably agree that all claims in respect of such action may be heard and determined in such state court. Seller and Buyer hereby irrevocably waive, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties further agree, to the fullest extent permitted by law, that a final and unappealable judgment against any of them in any action or proceeding contemplated above shall be conclusive and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a certified copy of which shall be conclusive evidence of the fact and amount of such judgment.
  
 8.5 Entire Agreement. This Agreement (including all Schedules, Exhibits, or other attachments hereto) constitutes the complete and exclusive statement of the terms of the agreement among the parties hereto with respect to the subject matter hereof and thereof and supersedes all prior agreements, understandings, promises, and arrangements, oral or written, between the parties with respect to the subject matter hereof and thereof.
  
 8.6 Notices. All notices, consents, waivers and other communications required or permitted under this Agreement shall be sufficiently given for all purposes hereunder if in writing and (a) hand delivered, (b) sent by certified or registered mail, return receipt requested and proper postage prepaid, (c) sent by a nationally recognized overnight courier service, or (d) sent by facsimile, in each case to the address or facsimile number and to the attention of the person (by name or title) set forth in the opening paragraph hereof (or to such other address and to the attention of such other person as a party may designate by written notice to the other parties. The date of giving of any such notice, consent, waiver or other communication shall be (i) the date of delivery if hand delivered, (ii) the date of receipt for certified or registered mail, (iii) the day after delivery to the overnight courier service if sent thereby, and (iv) the date of telephone facsimile transmission on production of a transmission report by the machine from which the facsimile was sent which indicates that the facsimile was sent in its entirety to the facsimile number of the recipient.
  
 8.7 Headings; Definitions. Captions, titles and headings to articles, sections or paragraphs of this Agreement are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement. All references in this Agreement to “Article”, “Section” or “Paragraph” refer to the corresponding articles, sections or paragraphs of this Agreement unless otherwise stated and, unless the context otherwise specifically requires, refer to all subsections or subparagraphs thereof. All references in this Agreement to a “party” or “parties” refer to the parties signing this Agreement. All defined terms and phrases used in this Agreement are equally applicable to both the singular and plural forms of such terms. Nouns and pronouns will be deemed to refer to the masculine, feminine or neuter, singular and plural, as the identity of the person or persons may in the context require. The term “Person” as used in this Agreement means an individual, firm, corporation, partnership, limited partnership, limited liability company, limited liability partnership, association, estate, trust, pension or profit-sharing plan, or any other entity, including any governmental entity.
  
  
 	 
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 8.8 Amendments. This Agreement may be amended or modified only by an instrument in writing signed by each of the parties.
  
 8.9 Third Parties. Nothing in this Agreement, express or implied, is intended to or shall be construed to confer upon or give any person other than the parties and their respective successors and permitted assigns, any legal or equitable right, remedy or claim under or with respect to this Agreement.
  
 8.10 Waiver. Neither any failure nor any delay by any party in exercising any right, power or privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.
  
 8.11 Severability. In the event that a court of competent jurisdiction holds any provision of this Agreement invalid, illegal or unenforceable, such decision shall not affect the validity or enforceability of any of the other provisions of this Agreement, which other provisions shall remain in full force and effect, and the application of such invalid, illegal or unenforceable provision to persons or circumstances other than those as to which it is held invalid, illegal or unenforceable shall be valid and be enforced to the fullest extent permitted by law. To the extent permitted by applicable law, each party waives any provision of law that renders any provision of this Agreement invalid, illegal or unenforceable in any respect.
  
 8.12 Assignment. This Agreement shall be binding on the parties hereto and their successors and permitted assigns. This Agreement may not be assigned without the prior written consent of all other parties hereto; provided, however, that at or before Closing Buyer may assign any or all of its rights hereunder to any entity or entities that are owned by, that own, or that are under common ownership with, in whole or in part, Buyer, provided, however, that such assignment shall not relieve the Buyer or Guarantor from liability under this Agreement.
  
  
 	 
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 8.13 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by fax or e-mail transmission shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original agreement for all purposes. Signatures of the parties transmitted by fax or e-mail shall be deemed to be their original signatures for all purposes.
  
 [Signature Page Follows]
  
  
 	 
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 IN WITNESS WHEREOF, this Asset Purchase Agreement with Real Property has been signed by or on behalf of each of the parties as of the Effective Date.
  
  
 	 	SELLER:	
	  
	 COMPANY:
	  

	  
	  
	  

	  
	 GREENLEAF GROWERS, INC., a
	  

	  
	 Michigan corporation
	  

 
 
  
 
  
 
 		/s/ Nicholas DeHaan	
	  
	By: Nicholas DeHaan	 
	 	Its: President 	 

 
 
  
 
 
 
  
 	 	REAL ESTATE OWNERS:	
	  
	 NJD INVESTMENTS, LLC, a Michigan  
	  

	  
	 limited liability company
	  

 
 
  
 
  
 		/s/ Lori DeHaan	
	  
	By: Lori DeHaan	 
	 	Its: Manager	 

 
 
  
                                                                        
  
 	  
	 SOLERI, LLC, a Michigan limited liability company
	  

	  
	  
	  

		/s/ Lori DeHaan	
	  
	By: Lori DeHaan	 
	 	Its: Manager	 
	  
	  
	  

 
 
  
 
  
 
 	 
	 23

	

	 

 
 
  
 
 
  
 
 	  
	 OWNER:
	  

	  
	  
	  

		/s/ Nicholas DeHaan	
	  
	Nicholas DeHaan	 
	 		 
	 	BUYER:	 
	  
	  
	  

	  
	 2900 MADISON AVE HOLDINGS, LLC
	  

	  
	  
	  

	  
	 /s/ James E. Kras
	  

	  
	 By: James Kras
	  

	  
	 Its: Manager
	  

 
 
  
 
  
 	 
	 24

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