Document:

Document

Exhibit 10.3
Execution Version

SECURITY ISSUANCE AGREEMENT
This SECURITY ISSUANCE AGREEMENT (this “Agreement”) is entered into this 21st day of December, 2022 (the “Effective Date”), by and among Grove Collaborative Holdings, Inc., a Delaware public benefit corporation (the “Company”), and those investors listed on Schedule I hereto (including each such investors’ successors and permitted assigns, “Investors,” and each, an “Investor”). 
WHEREAS, concurrently with and as a condition to the willingness of the Company to enter into this Agreement, the Company, Grove Collaborative, Inc., a Delaware public benefit corporation (“Grove”), certain of the Investors and the other parties named therein, are entering into that certain Loan and Security Agreement, dated as of the Effective Date (as amended, modified, supplemented or waived from time to time in accordance with its terms, the “Loan Agreement”), pursuant to which, among other things, the Company and Grove will borrow money from time to time from Investors and other lenders under a growth credit facility (such transactions, together with the other transactions contemplated by the Loan Agreement, the “Loan Transactions”); 
WHEREAS, in connection with the Loan Transactions, on the terms and subject to the conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder, (i) on the Closing Date (as defined below) the Company desires to issue to Investors (representing those Investors party to the Loan Agreement and certain affiliated entities thereof as designees for receipt of the Shares hereunder, as applicable), and Investors desire to acquire from the Company, the Closing Issuance Shares (as defined below) as set forth herein and (ii) on the Subsequent Issuance Closing Date (as defined below), if applicable, the Company desires to issue to Investors, and Investors desire to acquire from the Company, the Subsequent Issuance Shares (as defined below) as set forth herein, each as more fully described in this Agreement; and
WHEREAS, concurrently with the execution and delivery of this Agreement, the Company is entering into the Structural Agreement with certain other parties to the Loan Agreement on substantially similar terms as those set forth herein; provided, that the investors party to the Structural Agreement shall be entitled to acquire from the Company only those Closing Issuance Shares and Subsequent Issuance Shares (each, as defined in the Structural Agreement) as set forth therein, subject to the terms of and as more fully described in the Structural Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants, and subject to the conditions, herein contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:
1.Definitions.  For purposes hereof, the following terms when used herein shall have the respective meanings set forth below:
1.1.“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly ten percent (10%) or more of the outstanding stock of such Person, any Person that controls or is controlled by or is under common control with such Person or any Affiliate of such Person or each of such Person’s senior executive officers, directors, members or partners.
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1.2.“Aggregate Subsequent Issuance Shares” means the Subsequent Issuance Shares as defined herein plus the “Subsequent Issuance Shares” issued pursuant to the Structural Agreement.
1.3.“Business Day” means any day that, in New York, New York, is neither a Sunday, Saturday, legal holiday nor a day on which banking institutions are generally authorized or required by law or regulation to close. 
1.4.“Capital Stock” means (a) any shares, interests, participations or other equivalents (however designated) of capital stock of a corporation; (b) any ownership interests in a Person other than a corporation, including membership interests, partnership interests, joint venture interests and beneficial interests; and (c) any warrants, options, convertible or exchangeable securities, subscriptions, rights (including any preemptive or similar rights), calls or other rights to purchase or acquire any of the foregoing.
1.5.“Common Stock” means (a) the Class A Common Stock (as defined below), (b) the Company’s Class B common stock, par value $0.0001 per share (“Class B Common Stock”), and (c) any Capital Stock into which such Common Stock shall have been changed or any Capital Stock resulting from a reclassification of such Common Stock.
1.6.“Fair Market Value” means (a) if the Class A Common Stock is listed for trading on the New York Stock Exchange (the “NYSE”) or other securities exchange as of the Subsequent Issuance Closing Date, the volume weighted average price of the Class A Common Stock for the sixty (60) consecutive Trading Day period ending the Trading Day before the Subsequent Issuance Closing Date; or (b) if the Class A Common Stock is not listed on a securities exchange as of the Subsequent Issuance Closing Date but, as of the Subsequent Issuance Closing Date, the Class A Common Stock is quoted on the OTC Bulletin Board and there is current public information available (as contemplated by Rule 144 (as hereinafter defined)) for the Company, (i) the volume weighted average price of the Class A Common Stock as quoted on the OTC Bulletin Board for the sixty (60) consecutive Trading Days ending the Trading Day before the Subsequent Issuance Closing Date; or (ii) if there have been no sales of the Class A Common Stock on the OTC Bulletin Board, the average of the highest bid and lowest asked prices for the Class A Common Stock quoted on the OTC Bulletin Board at the end of a given day, averaged over sixty (60) consecutive Trading Days ending the Trading Day before the Subsequent Issuance Closing Date; or (c) if, as of the Subsequent Issuance Closing Date, neither clause (a) nor (b) is applicable, the “Fair Market Value” of the Class A Common Stock shall be the fair market value per share as determined by an independent appraiser selected by agreement of the Company and Investors, the expenses of which shall be paid solely by the Company.
1.7.“Person” 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.
1.8.“Structural Agreement” means that certain Security Issuance Agreement, of even date herewith, between the Company and Structural Capital Investments III, LP and certain of its affiliates (“Structural”).
1.9.“Trading Day” means any Business Days on which the relevant securities exchange is open for trading.
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2.Issuances of the Shares.
1.1.Closing Issuance.  At the Closing (as defined below), in consideration for the advances to be made to the Company under the Loan Agreement and for other good and valuable consideration, the Company hereby agrees to issue to Investors, and Investors hereby agree to acquire from the Company, an aggregate of 1,512,500 shares (the “Closing Issuance Shares”) of Class A common stock, par value $0.0001 per share, of the Company (the “Class A Common Stock”) (such issuance, the “Closing Issuance”), in the respective amounts set forth on Schedule I.  
1.2.Subsequent Issuance.  
1.1.1.Subject to Section 2.2.2(a) and the other terms and conditions hereof, at the Subsequent Issuance Closing (as defined below), if applicable, the Company hereby agrees to issue to Investors, and Investors hereby agree to acquire from the Company, the aggregate number of shares of Class A Common Stock equal to (a) $3,025,000 (the “Subsequent Issuance Purchase Price”), divided by the lower of (b) (i) $2.00 or (ii) the Fair Market Value of the Company’s Class A Common Stock (the “Subsequent Issuance Shares” and, together with the Closing Issuance Shares, the “Shares”) (such issuance, the “Subsequent Issuance” and, together with the Closing Issuance, the “Issuances”), in the respective proportions provided by the Investors to the Company at least three (3) Business Days prior to the Subsequent Issuance Closing Date; provided, that the number and type of Subsequent Issuance Shares actually issued shall be subject to those conditions, limitations and adjustments set forth in Section 2.2.2.  
1.1.2.Conditions, Limitations and Other Adjustments to the Subsequent Issuance.
(a)Conditions to the Subsequent Issuance.  The parties hereto hereby agree that the Company’s obligations to effect the Subsequent Issuance Closing are subject to, and conditioned upon, there being any Obligations outstanding under the Loan Agreement on the Subsequent Issuance Closing Date. If no such Obligations are outstanding on the Subsequent Issuance Closing Date, the parties hereto will have no further obligations to effect the Subsequent Issuance Closing.
(b)Limitations to the Subsequent Issuance.  
(i)Notwithstanding anything to the contrary contained herein, and provided the Company’s Class A Common Stock is listed for trading on the NYSE (or other securities exchange with similar listing standards and rules), the Company shall only effect the issuance of such portion of the Aggregate Subsequent Issuance Shares, if and as applicable, and Investors and Structural shall only have the right to acquire such portion of the Aggregate Subsequent Issuance Shares on a pro rata basis in accordance with Schedule I hereto and Schedule I to the Structural Agreement, to the extent that after giving effect to such issuances, Investors and Structural would not have received pursuant to this Agreement and the Structural Agreement, in the aggregate, an amount in excess of 19.99% (the “Maximum Percentage”) of either (A) the shares of Common Stock or (B) the voting power of the shares of Common Stock, each to the extent that such shares of Common Stock are issued and outstanding immediately before giving effect to the Subsequent Issuance (without having given effect to the Closing Issuance). In the event that the 
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limitation set forth in this Section 2.2.2(b)(i) is applicable, the issuance of any shares above the Maximum Percentage shall be null and void and treated as if never made.
(ii)Additionally, no Person shall be entitled to receive a number of Aggregate Subsequent Issuance Shares in excess of that number of Subsequent Issuance Shares which, upon giving effect to such issuance, would result in any required filing and waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (the “HSR Act”) or any filing and/or clearance under any other laws that are designed to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade (together, “Antitrust Laws”) unless and until such a filing has been made, all required waiting periods have been observed and/or any required pre-approval has been obtained. If a filing, observance of a waiting period and/or clearance under any Antitrust Laws will be required in connection with the issuance of the Aggregate Subsequent Issuance Shares, such Person and the Company shall make such filings in accordance with Section 11 and shall only proceed with the issuance of the Aggregate Subsequent Issuance Shares after applicable waiting periods have expired and approvals are obtained. 
(iii)If the Subsequent Issuance Closing is at a time when the issuance of the Aggregate Subsequent Issuance Shares would not comply with applicable law, including the rules and regulations of the NYSE (or, if not the NYSE, the primary securities exchange on which the Class A Common Stock is listed) (“Applicable Law”), the Company shall (A) notify Investors in writing of the number of shares of Class A Common Stock issued or issuable in connection with any other transaction by the Company that may be aggregated with the issuance of the Aggregate Subsequent Issuance Shares under the rules and regulations of the NYSE (or, if not the NYSE, the primary securities exchange on which the Class A Common Stock is then listed), and (B) to the extent that the Subsequent Issuance would otherwise cause any Person’s ownership, as determined pursuant to this Section 2.2.2(b), to exceed the Maximum Percentage or to not comply with Applicable Law, such Person must notify the Company of a reduced number of Subsequent Issuance Shares to be acquired.
(iv)For purposes of clarity, the shares of Class A Common Stock issuable pursuant to the terms of this Agreement and the Structural Agreement in excess of the Maximum Percentage or the issuance of which would not comply with Applicable Law shall not be deemed to be beneficially owned by any Person for any purpose including for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or Rule 16a-1(a)(1) under the Exchange Act.
(v)To the extent that any Subsequent Issuance Shares are not issuable at a particular point in time due to any limitation set forth herein, the Company shall use commercially reasonable efforts to enable the Company to issue such Shares and such Shares shall be issued to the appropriate Person promptly after, and to the extent that, the limitations set forth herein no longer prohibit such issuance. The operation of any 
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limitation hereunder shall not be deemed to result in a forfeiture of any Subsequent Issuance Shares.
(c)Reclassification.  If, while this Agreement remains effective and prior to the Subsequent Issuance Closing, the Company effects any reclassification, conversion, substitution, share exchange or otherwise of the Class A Common Stock pursuant to which the Class A Common Stock is effectively converted into or exchanged for other securities (in any such case, a “Conversion”), and the Subsequent Issuance Shares become issuable on the Subsequent Issuance Closing Date pursuant to the terms and subject to the conditions of this Agreement, then Investors shall have the right to receive, upon the Subsequent Issuance Closing, securities of the class into which the Class A Common Stock converted in such Conversion, in an amount calculated as set forth in Section 2.2.1, as adjusted as appropriate.
(d)No Fractional Shares.  No fractional Subsequent Issuance Shares will be issued in connection with the Subsequent Issuance. In lieu of any fractional shares that would otherwise be issuable, the number of Subsequent Issuance Shares to be issued shall be rounded down to the next whole number and the Subsequent Issuance Purchase Price shall be adjusted down accordingly with respect to any such fractional share.
3.Closing of the Issuances.    
1.1.Closing.  Except as otherwise provided herein, upon the terms and subject to the conditions of this Agreement, the consummation of the Closing Issuance (the “Closing”) shall be held remotely via the exchange of documents and signatures on the date hereof (the “Closing Date”). On the Closing Date, the Company shall issue to Investors or to a custodian designated by any such Person, as applicable, the appropriate number of Closing Issuance Shares, free and clear of any liens or other restrictions whatsoever (other than those arising under state or federal securities laws), which Closing Issuance Shares, unless otherwise determined by the Company, shall be uncertificated, with record ownership reflected only in the register of shareholders of the Company. At the Closing, the parties hereto will exchange (or cause to be exchanged) the agreements, instruments, certificates and other documents, and will do, or cause to be done, all of the things, respectively required at the Closing by each party hereto under the terms of this Agreement.  
1.2.Subsequent Issuance Closing.  Except as otherwise provided herein, upon the terms and subject to the conditions of this Agreement, the consummation of the Subsequent Issuance, if applicable (the “Subsequent Issuance Closing”), shall be held remotely via the exchange of documents and signatures on the thirty-month anniversary of the Effective Date (the “Subsequent Issuance Closing Date”). On the Subsequent Issuance Closing Date, the Company shall issue to Investors or to a custodian designated by any such Person, as applicable, the appropriate number of Subsequent Issuance Shares, free and clear of any liens or other restrictions whatsoever (other than those arising under state or federal securities laws), which Subsequent Issuance Shares, unless otherwise determined by the Company, shall be uncertificated, with record ownership reflected only in the register of shareholders of the Company. At the Subsequent Issuance Closing, the parties hereto will exchange (or cause to be exchanged) the agreements, instruments, certificates and other documents, and will do, or cause to be done, all of the things, respectively required at the Subsequent Issuance Closing by each party hereto under the terms of this Agreement.  
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4.Representations, Warranties and Agreements.
1.1.Investors’ Representations, Warranties and Agreements. To induce the Company to issue the Shares, as applicable, each Investor, severally and not jointly, hereby represents and warrants to the Company and acknowledges and agrees with the Company, as of the date hereof, as follows:
1.1.1.Such Investor has been duly formed or incorporated and is validly existing in good standing under the laws of its jurisdiction of incorporation or formation, with all requisite power and authority to enter into, deliver and perform its obligations under this Agreement. 
1.1.2.This Agreement has been duly authorized, validly executed and delivered by such Investor. Assuming that this Agreement constitutes the valid and binding agreement of the Company and each other Investor, this Agreement is the valid and binding obligation of such Investor, and is enforceable against such Investor in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.
1.1.3.The execution, delivery and performance by such Investor of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) result in any violation of the provisions of the organizational documents of such Investor or any of its subsidiaries or (ii) result in any violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over such Investor that would reasonably be expected to have a material adverse effect on the legal authority and ability of such Investor to enter into and timely perform its obligations under this Agreement.
1.1.4.such Investor (i) is (a) a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an “accredited investor” within the meaning of Rule 501(a) under the Securities Act, (b) an Institutional Account as defined in FINRA Rule 4512(c) and (c) a sophisticated institutional investor, experienced in investing in transactions of the type contemplated by this Agreement and capable of evaluating investment risks independently, in each case, satisfying the applicable requirements set forth on Schedule II, (ii) is acquiring the Shares only for its own account and not for the account of others, or if such Investor is acquiring the Shares as a fiduciary or agent for one or more investor accounts, each owner of such account is a qualified institutional buyer or accredited investor, and such Investor has full investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations, warranties and agreements herein on behalf of each owner of each such account, and not with a view to any distribution of the Shares in any manner that would violate the securities laws of the United States or any other applicable jurisdiction and (iii) is not acquiring the Shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act (and shall provide the requested information on Schedule II following the signature page hereto for itself). Such Investor is not an entity formed for the specific purpose of acquiring the Shares.
1.1.5.Such Investor understands that the Shares are being offered in a transaction not involving any public offering within the meaning of the Securities Act and that the Shares have not been registered under the Securities Act as of the Effective Date. Such Investor understands that, in addition to any other restrictions on transfer as set forth herein, the Shares may not be resold, transferred, pledged or otherwise disposed of by 
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such Investor absent an effective registration statement under the Securities Act, except (i) to the Company or a subsidiary thereof, (ii) to non-U.S. Persons pursuant to offers and sales that occur solely outside the United States within the meaning of Regulation S under the Securities Act, (iii) pursuant to another applicable exemption from the registration requirements of the Securities Act or (iv) pursuant to an effective registration statement under the Securities Act, and in each of cases (ii) and (iii), in accordance with any applicable securities laws of the states and other jurisdictions of the United States, and that the Shares shall be subject to a legend to such effect (provided that such legends will be eligible for removal upon compliance with the relevant resale provisions of Rule 144 promulgated under the Securities Act (“Rule 144”)). Such Investor acknowledges that the Shares will not be eligible for resale pursuant to Rule 144A promulgated under the Securities Act. Such Investor understands that it has been advised to consult independent legal counsel prior to making any offer, resale, pledge or transfer of any of the Shares. Such Investor has determined based on its own independent review and such professional advice as it deems appropriate that the Shares are a suitable investment for such Investor, notwithstanding the substantial risks inherent in investing in or holding the Shares, and that such Investor is able at this time and in the foreseeable future to bear the economic risk of a total loss of such Investor’s investment in the Company. 
1.1.6.Such Investor understands and agrees that such Investor is acquiring the Shares directly from the Company. Such Investor further acknowledges that there have been no representations, warranties, covenants or agreements made to such Investor by the Company, or any of its officers or directors, expressly or by implication, other than those representations, warranties, covenants and agreements expressly set forth in this Agreement.
1.1.7.If such Investor is an employee benefit plan that is subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), such Investor represents and warrants that its acquisition and holding of the Shares will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), or any applicable other federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, “Similar Laws”).
1.1.8.In making its decision to acquire the Shares, such Investor represents that it has relied solely upon independent investigation made by such Investor and the representations, warranties and covenants of the Company contained in this Agreement. Without limiting the generality of the foregoing, such Investor has not relied on any statements or other information provided by anyone other than the Company and its representatives concerning the Company or the Shares or the offer and sale of the Shares. Such Investor acknowledges and agrees that such Investor has received access to and has had an adequate opportunity to review such information as such Investor deems necessary in order to make an investment decision with respect to the Shares, including with respect to the Company and the transactions contemplated hereby. Such Investor represents and agrees that such Investor and such Investor’s professional advisor(s), if any, have had the full opportunity to ask such questions, receive such answers and obtain such information as such Investor and such Investor’s professional advisor(s), if any, have deemed necessary to make an investment decision with respect to the Shares. Such Investor represents and warrants it is relying exclusively on its own sources of information, investment analysis and due diligence (including professional advice such Investor deems appropriate) with respect to the transactions contemplated hereby, the Shares and the business, condition (financial and otherwise), management, operations, properties and prospects of the Company including but not limited to all business, legal, regulatory, accounting, credit and tax matters. 
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1.1.9.Such Investor became aware of this offering of the Shares solely by means of direct contact between such Investor and the Company or one of their respective representatives. Such Investor did not become aware of this offering of the Shares, nor were the Shares offered to such Investor, by any general solicitation. Such Investor acknowledges that the Company represents and warrants that the Shares were not offered by any form of general solicitation or general advertising, including methods described in section 502(c) of Regulation D under the Securities Act.
1.1.10.Such Investor understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Shares or made any findings or determination as to the fairness of an investment in the Shares.
1.1.11.Such Investor represents and warrants that such Investor is not (i) a Person named on the List of Specially Designated Nationals and Blocked Persons administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) or in any Executive Order issued by the President of the United States and administered by OFAC (“OFAC List”), or a Person prohibited by any OFAC sanctions program, (ii) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515 or (iii) a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank. Such Investor agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law, provided that such Investor is permitted to do so under applicable law. If such Investor is a financial institution subject to the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.), as amended by the USA PATRIOT Act of 2001, and its implementing regulations (collectively, the “BSA/PATRIOT Act”), such Investor represents that it maintains policies and procedures reasonably designed to comply with applicable obligations under the BSA/PATRIOT Act. Such Investor also represents that, to the extent required, it maintains policies and procedures reasonably designed for the screening of its investors against the OFAC sanctions programs, including the OFAC List. Such Investor further represents and warrants that, to the extent required, it maintains policies and procedures reasonably designed to ensure that the funds held by such Investor and used to acquire the Shares were legally derived.
1.1.12.If such Investor is an employee benefit plan that is subject to Title I of ERISA, a plan, an individual retirement account or other arrangement that is subject to section 4975 of the Code or an employee benefit plan that is a governmental plan (as defined in section 3(32) of ERISA), a church plan (as defined in section 3(33) of ERISA), a non-U.S. plan (as described in section 4(b)(4) of ERISA) or other plan that is not subject to the foregoing but may be subject to provisions under any other Similar Laws or an entity whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement (each, a “Plan”), such Investor represents and warrants that neither the Company nor any of its Affiliates (the “Transaction Parties”) has acted as the Plan’s fiduciary, or has been relied on for advice, with respect to its decision to acquire and hold the Shares, and none of the Transaction Parties shall at any time be relied upon as the Plan’s fiduciary with respect to any decision to acquire, continue to hold or transfer the Shares. 
1.1.13.Such Investor is not a foreign person (as defined in 31 C.F.R. Part 800.224) in which the national or subnational governments of a single foreign state have a substantial interest (as defined in 31 C.F.R. Part 800.244) and that will acquire a substantial interest in the Company as a result of the acquisition of Closing Issuance Shares and, if applicable, the Subsequent Issuance Shares hereunder such that a declaration to the Committee on Foreign Investment in the United States would be mandatory under 31 C.F.R. Part 800.401, and no foreign person will have control (as 
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defined in 31 C.F.R. Part 800.208) over the Company from and after the Closing or the Subsequent Issuance Closing as a result of the acquisition of the Shares hereunder.
1.1.14.No broker, finder or other financial consultant has acted on behalf of such Investor in connection with this Agreement or the transactions contemplated hereby in such a way as to create any liability on the Company.
1.2.The Company’s Representations, Warranties and Agreements. To induce Investors to acquire the Shares, as applicable, the Company hereby represents and warrants to each Investor and agrees with each Investor, as of the date hereof, as follows:
1.1.1.The Company has been duly incorporated and is validly existing and in good standing under the laws of its jurisdiction of incorporation, with all requisite power and authority to enter into, deliver and perform its obligations under this Agreement. 
1.1.2.The Shares are duly authorized and when issued and delivered to each Investor, as applicable, (i) will be free and clear of any liens or other restrictions (other than arising under applicable securities laws), (ii) will be validly issued, fully paid and non-assessable and (iii) will not have been issued in violation of or subject to any preemptive or similar rights under the Company’s constitutive agreements or applicable law.
1.1.3.This Agreement has been duly authorized, validly executed and delivered by the Company and, assuming that this Agreement constitutes the valid and binding obligation of each Investor, is the valid and binding obligation of the Company, and is enforceable against the Company in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally and (ii) principles of equity, whether considered at law or equity.
1.1.4.The execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Shares and the consummation of the other transactions contemplated herein, will not (i) result in any violation of the provisions of the organizational documents of the Company or any of its subsidiaries or (ii) result in any violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of its subsidiaries or any of its properties that would reasonably be expected to have Material Adverse Effect (as defined in the Loan Agreement).
1.1.5.Neither the Company, nor any Person acting on its behalf has, directly or indirectly, made any offers or sales of any security of the Company nor solicited any offers to buy any security under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) of the Securities Act for the exemption from registration for the transactions contemplated herein or would require registration of the issuance of the Shares under the Securities Act.
1.1.6.Neither the Company, nor any Person acting on its behalf has conducted any general solicitation or general advertising, including methods described in section 502(c) of Regulation D under the Securities Act, in connection with the offer or sale of any of the Shares and neither the Company, nor any Person acting on its behalf has offered any of the Shares in a manner involving a public offering under, or in a distribution in violation of, the Securities Act or any state securities laws.
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1.1.7.As of the Effective Date, the Company’s organizational documents authorize the issuance of 900,000,000 shares, consisting of (i) 800,000,000 shares of Common Stock, of which (a) 600,000,000 shares are designated Class A Common Stock and (b) 200,000,000 shares are designated Class B Common Stock, and (ii) 100,000,000 shares of preferred stock, par value $0.0001 per share. All issued and outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid, non-assessable and are not subject to preemptive or similar rights. There are no shareholder agreements, voting trusts or other agreements or understandings to which the Company is a party or by which it is bound relating to the voting of any securities of the Company. There are no securities or instruments issued by or to which the Company is a party containing anti-dilution or similar provisions that will be triggered by the issuance of the Shares that have not been or will not be validly waived on or prior to the Closing or the Subsequent Issuance Closing, as applicable.
1.1.8.Assuming the accuracy of each Investor’s representations and warranties set forth in Section 4.1 of this Agreement, (i) no registration under the Securities Act is required for the offer and sale of the Closing Issuance Shares by the Company to Investors and (ii) no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the Closing Issuance, except for filings with the United States Securities and Exchange Commission (the “Commission”), including pursuant to Regulation D of the Securities Act, filings required by applicable state securities laws, filings required in accordance with Section 11, those required by the NYSE, and filings, the failure of which to obtain would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
1.1.9.The Company made available to each Investor (including via the Commission’s EDGAR system) a true, correct and complete copy of each form, report, statement, schedule, prospectus, proxy, registration statement and other documents filed by the Company with the Commission prior to the Effective Date (the “SEC Documents”), which SEC Documents, as of their respective filing dates or any amendments thereof, complied in all material respects with the requirements of the Exchange Act applicable to the SEC Documents and the rules and regulations of the Commission promulgated thereunder and applicable to the SEC Documents. As of their respective dates or the dates any such amendments, all SEC Documents required to be filed by the Company with the Commission prior to the date hereof complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder. None of the SEC Documents filed under the Exchange Act, contained, when filed or, if amended prior to the Effective Date, as of the date of such amendment with respect to those disclosures that are amended, any untrue statement of a material fact or omitted 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. The Company has timely filed each report, statement, schedule, prospectus, and registration statement that the Company was required to file with the Commission since its inception and through the date hereof. As of the date hereof, there are no material outstanding or unresolved comments in comment letters from the Commission staff with respect to any of the SEC Documents.
1.1.10.No broker, finder or other financial consultant has acted on behalf of the Company in connection with this Agreement or the transactions contemplated hereby in such a way as to create any liability on any Investor.
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1.1.11.The Company is not, and immediately after issuance of the Shares will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
1.1.12.The Company shall, throughout the term of this Agreement, use commercially reasonable efforts to maintain the listing of its Class A Common Stock (as may be adjusted or converted pursuant to Section 2.2.2(c)) on the NYSE or another national stock exchange. If, notwithstanding the previous sentence, the Company fails to maintain the listing of the Class A Common Stock (as may be adjusted or converted pursuant to Section 2.2.2(c)) on the NYSE or another national stock exchange, the Company shall use commercially reasonable efforts to ensure that such Class A Common Stock (as may be adjusted or converted pursuant to Section 2.2.2(c)) is quoted on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association as promptly as possible. 
5.Registration Statement.
1.1.Filing and Effectiveness.
1.1.1.Subject to the terms hereof, the Company agrees that, within forty-five (45) calendar days following June 23, 2023, the Company will file with the Commission (at the Company’s sole cost and expense) a registration statement on Form S-3 (the “Initial Registration Statement” and, the date on which the Initial Registration Statement is filed, the “Filing Date”) registering the resale of the Registrable Securities (as defined below), to the extent issued and outstanding on the Filing Date, on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, and the Company shall use its commercially reasonable efforts to have the Initial Registration Statement declared effective as soon as practicable after the filing thereof, but no later than the earlier of (a) the sixtieth (60th) calendar day (or ninetieth (90th) calendar day if the Commission notifies the Company that it will “review” the Initial Registration Statement) following the Filing Date and (b) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that the Initial Registration Statement will not be “reviewed” or will not be subject to further review (such earlier date, the “Effectiveness Deadline”). In the event the Company is not eligible to file a Form S-3 Registration Statement as of June 23, 2023, the Company shall file with the Commission, in lieu thereof and within forty-five (45) calendar days following such date, a Registration Statement on Form S-1 registering the resale of the Registrable Securities (as defined below), to the extent issued and outstanding on the date such Registration Statement is filed with the Commission (such filing date then being deemed the “Filing Date” and such Registration Statement then being deemed the “Initial Registration Statement” for the purposes hereof), subject to the effectiveness conditions set forth in the preceding sentence. “Registrable Securities” means (i) the Closing Issuance Shares, (ii) the Subsequent Issuance Shares, to the extent issued pursuant to this Agreement, (iii) any shares of capital stock issued or issuable as a dividend on or in exchange for or otherwise with respect to any of the foregoing and (iv) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to any of the foregoing. For purposes of clarification, any failure by the Company to file the Initial Registration Statement by the Filing Date or to effect such Initial Registration Statement by the Effectiveness Deadline shall not otherwise relieve the Company of its obligations to file or effect the Initial Registration Statement as set forth above in this Section 5. For purposes of this Section 5, “Investors” shall include any Person to which the rights under this Section 5 shall have been duly assigned. The Company will provide a draft of the Initial Registration Statement to Investors for review at least five (5) Business Days in advance of filing the 
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Initial Registration Statement. Subject to any comments from the Commission, the Initial Registration Statement shall contain a “plan of distribution” reasonably acceptable to Investors. 
1.1.2.Registration of Subsequent Issuance Shares. Subject to and conditioned on the occurrence of the Subsequent Issuance Closing, if applicable, the Company agrees to prepare and, as soon as practicable but in no event later than seven (7) Business Days following the Subsequent Issuance Closing, file with the Commission an additional registration statement on Form S-3 (or, if Form S-3 is not then available, on Form S-1) (such registration statement, the “Subsequent Issuance Registration Statement” and, together with the Initial Registration Statement, the “Registration Statements”) covering the resale of the Subsequent Issuance Shares (the “Subsequent Issuance Registrable Securities”). The Company shall use its commercially reasonable efforts to have the Subsequent Issuance Registration Statement declared effective as soon as practicable after the filing thereof, but no later than the earlier of (a) the sixtieth (60th) calendar day (or ninetieth (90th) calendar day if the Commission notifies the Company that it will “review” the Subsequent Issuance Registration Statement) following the date the Subsequent Issuance Registration Statement is filed (or, if earlier, required to be filed) with the Commission and (b) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that the Subsequent Issuance Registration Statement will not be “reviewed” or will not be subject to further review. The Company will provide a draft of the Subsequent Issuance Registration Statement to Investors for review at least five (5) Business Days in advance of filing the Subsequent Issuance Registration Statement. Subject to any comments from the Commission, the Subsequent Issuance Registration Statement shall contain a “plan of distribution” reasonably acceptable to Investors.
1.2.The Company’s obligations to include the Registrable Securities in the Registration Statements, as applicable, are contingent upon Investor furnishing a completed and executed selling shareholders questionnaire in customary form to the Company that contains the information required by Commission rules for a Registration Statement regarding Investor, the securities of the Company held by Investor and the intended method of disposition of the Registrable Securities to effect the registration of the Registrable Securities, and Investor shall execute such documents in connection with such registration as the Company may reasonably request that are customary of a selling stockholder in similar situations, including providing that the Company shall be entitled to postpone and suspend the effectiveness or use of the Registration Statement, if applicable, as permitted hereunder.
1.3.In the case of each registration effected by the Company pursuant to this Agreement, the Company shall, upon reasonable request, inform Investors as to the status of such registration and shall use its commercially reasonable efforts to take all steps necessary to effect the registration of the Shares contemplated hereby. At its expense, the Company shall:
1.1.1.except for such times as the Company is permitted hereunder to suspend the use of the prospectus forming part of a Registration Statement, use its commercially reasonable efforts to keep such registration, and any qualification, exemption or compliance under state securities laws which the Company determines to obtain, continuously effective and available for the resale of all of the Registrable Securities, and to keep the applicable Registration Statement or any subsequent shelf registration statement free of any material misstatements or omissions, until the earlier of the following: (i) each Investor ceases to hold any Registrable Securities and (ii) the date all Registrable Securities held by all Investors may be sold without restriction under Rule 144, including without limitation, any volume and manner of sale restrictions which may be applicable to affiliates under Rule 144 and without the requirement for the Company 
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to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable); provided, that for as long as the Company is required to keep a Registration Statement effective pursuant to this Section 5.3.1, the Company will use its commercially reasonable efforts to file all reports, and provide all customary and reasonable cooperation, necessary to enable Investors to resell the Shares pursuant to the Registration Statement;
1.1.2.advise Investors, as promptly as practicable but in any event within five (5) Business Days:
(a)when a Registration Statement or any post-effective amendment thereto has become effective;
(b)of any request by the Commission for amendments or supplements to any Registration Statement or the prospectus included therein or for additional information;
(c)of the issuance by the Commission of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for such purpose;
(d)of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities included therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and
(e)subject to the provisions in this Agreement, of the occurrence of any event that requires the making of any changes in any Registration Statement or prospectus so that, as of such date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading.
    Notwithstanding anything to the contrary set forth herein, the Company shall not, when so advising Investors of such events, provide Investors with any material, nonpublic information regarding the Company or subject the Investors to any duty of confidentiality;
1.1.3.use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement as soon as reasonably practicable; and
1.1.4.upon the occurrence of any event contemplated in Section 5.3.2(e), except for such times as the Company is permitted hereunder to suspend, and has suspended, the use of a prospectus forming part of a Registration Statement, the Company shall use its reasonable best efforts to as soon as reasonably practicable prepare a post-effective amendment to such Registration Statement or a supplement to the related prospectus, or file any other required document so that, as thereafter delivered to purchasers of the Registrable Securities included therein, such prospectus will not include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
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The Company hereby consents to the use of any prospectus included in a Registration Statement by Investors in connection with the offering and sale of the Shares covered by such Registration Statement and any amendment or supplement thereto, except in the event of a suspension of such Registration Statement as set forth in Section 5.4; provided, that such use shall be in accordance with the terms of this Agreement, such Registration Statement and applicable law.
1.4.Notwithstanding anything to the contrary in this Agreement, the Company shall be entitled to delay or postpone the effectiveness of the Registration Statement, and from time to time to require Investors not to sell under the Registration Statement or to suspend the effectiveness thereof, if the filing, effectiveness or continued use of any Registration Statement would require the Company to make any public disclosure of material non-public information, which disclosure, in the good faith determination of the Company’s Board of Directors (the “Board of Directors”), after consultation with counsel to the Company, (a) would be required to be made in any Registration Statement in order for the applicable Registration Statement not to contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading, (b) would not be required to be made at such time if the Registration Statement were not being filed, and (c) the Company has a bona fide business purpose for not making such information public (each such circumstance, a “Suspension Event”); provided, however, that the Company may not delay or suspend the Registration Statement on more than two occasions, for more than sixty (60) consecutive calendar days, or more than ninety (90) total calendar days, in each case, during any twelve-month period or less than sixty (60) days following the expiration of any prior suspension pursuant to this Section 5.4. Upon receipt of any written notice from the Company (which notice shall not contain any material non-public information regarding the Company and which notice shall not be subject to any duty of confidentiality) of the happening of any Suspension Event during the period that the Registration Statement is effective or if as a result of a Suspension Event the Registration Statement or related prospectus contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made (in the case of the prospectus) not misleading, each Investor agrees that it will promptly discontinue offers and sales of the Shares under the Registration Statement (excluding, for the avoidance of doubt, sales conducted pursuant to Rule 144 or any other exemption from registration under the Securities Act and the consummation of any sale pursuant to a contract entered into, or order placed, by any holder prior to the delivery of such notice) until such Investor receives copies of a supplemental or amended prospectus (which the Company agrees to promptly prepare) that corrects the misstatement(s) or omission(s) referred to above and receives notice that any post-effective amendment has become effective or unless otherwise notified by the Company that it may resume such offers and sales (which notice shall not contain any material non-public information regarding the Company and which notice shall not be subject to any duty of confidentiality).
1.5.Any Investor may deliver written notice (including via email) in accordance with Section 5.4 (an “Opt-Out Notice”) to the Company requesting that such Investor not receive notices from the Company otherwise required by Section 5.3; provided, however, that such Investor may later revoke any such Opt-Out Notice in writing. Following receipt of an Opt-Out Notice from an Investor (unless subsequently revoked), (a) the Company shall not deliver any such notices to such Investor and such Investor shall no longer be entitled to the rights associated with any such notice and (b) each time prior to such Investor’s intended use of an effective Registration Statement, such Investor will notify the Company in writing at least two (2) Business Days in advance of such intended use, and if a notice of a Suspension Event was previously delivered (or would have been delivered but for the provisions of this Section 5.4) and the related suspension period remains in effect, the Company will so notify such Investor, within one (1) Business Day of such Investor’s notification to the Company, by delivering to Investor a copy of such previous notice of a Suspension Event, and thereafter will provide such Investor with the related notice of the conclusion of such Suspension Event 
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immediately upon its availability (which notices shall not contain any material non-public information regarding the Company and which notice shall not be subject to any duty of confidentiality).
1.6.The parties hereto agree that:
1.1.1.The Company shall, notwithstanding the termination of this Agreement, indemnify and hold harmless, to the extent permitted by law, each Investor (to the extent a seller under the Registration Statement), the officers, directors, agents, partners, members, managers, shareholders, affiliates, employees and investment advisers of such Investor, each Person who controls such Investor (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), and the officers, directors, partners, members, managers, shareholders, agents, affiliates, employees and investment advisers of each such controlling from and against any and all losses, claims, damages, liabilities, costs and expenses (including, without limitation, any reasonable attorneys’ fees and expenses incurred in connection with defending or investigating any such action or claim) (collectively, “Losses”), as incurred, that arise out of or are based upon (a) any untrue or alleged untrue statement of material fact contained in any Registration Statement (or incorporated by reference therein), prospectus included in any Registration Statement or preliminary prospectus or any amendment thereof or supplement thereto or arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (b) any violation or alleged violation by the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its obligations under this Section 5, except insofar as the same are caused by or contained in any information furnished in writing to the Company by or on behalf of such Investor expressly for use therein or such Investor has omitted a material fact from such information; provided, however, that the indemnification contained in this Section 5.5.1 shall not apply to amounts paid in settlement of any Losses if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld, conditioned or delayed), nor shall the Company be liable for any Losses to the extent they arise out of or are based upon a violation which occurs (i) in reliance upon and in conformity with written information furnished by such Investor expressly for use in such Registration Statement or preliminary prospectus or any amendment thereof or supplement thereto, (ii) in connection with any failure of such Person to deliver or cause to be delivered a prospectus made available by the Company in a timely manner, (iii) as a result of offers or sales effected by or on behalf of any Person by means of a “free writing prospectus” (as defined in Rule 405 under the Securities Act) that was not authorized in writing by the Company, or (iv) in connection with any offers or sales effected by or on behalf of such Investor in violation of Section 5.3. The Company shall notify the appropriate Investor promptly of the institution, threat or assertion of any proceeding arising from or in connection with the transactions contemplated by this Section 5 of which the Company is aware.
1.1.2.Each Investor agrees, severally and not jointly, to indemnify and hold harmless, to the extent permitted by law, the Company, its directors, officers, employees and agents and each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) against any and all Losses, as incurred, that arise out of or are based upon any untrue or alleged untrue statement of material fact contained in any Registration Statement, prospectus included in any Registration Statement or preliminary prospectus or any amendment thereof or supplement thereto or arising out of or relating to any omission of a material fact required 
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to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such Investor expressly for use therein; provided, however, that the indemnification contained in this Section 5.5.2 shall not apply to amounts paid in settlement of any Losses if such settlement is effected without the consent of such Investor (which consent shall not be unreasonably withheld, conditioned or delayed). Notwithstanding anything to the contrary herein, in no event shall the liability of such Investor be greater in amount than the dollar amount of the net proceeds received by such Investor upon the sale of the Shares giving rise to such indemnification obligation.
1.1.3.Any Person entitled to indemnification herein shall (a) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (b) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent. An indemnifying party who elects not to assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of legal counsel to any indemnified party a conflict of interest exists between such indemnified party and any other of such indemnified parties with respect to such claim. No indemnifying party shall, without the consent of the indemnified party (which consent shall not be unreasonably withheld, conditioned or delayed), consent to the entry of any judgment or enter into any settlement which cannot be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such settlement) or which settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.
1.1.4.The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party and shall survive the transfer of the Shares acquired pursuant to this Agreement.
1.1.5.If the indemnification provided under this Section 5.5 from the indemnifying party is unavailable or insufficient to hold harmless an indemnified party in respect of any Losses referred to herein, then the indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, was made by, or relates to information supplied by, such indemnifying party or indemnified party, and the indemnifying party’s and indemnified party’s relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses shall be deemed to include, subject to the 
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limitations set forth above, any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this Section 5.5 from any Person who was not guilty of such fraudulent misrepresentation. Each indemnifying party’s obligation to make a contribution pursuant to this Section 5.5 shall be individual, not joint and several, and in no event shall the liability of any Investor be greater in amount than the dollar amount of the net proceeds received by such Investor upon the sale of the Shares giving rise to such contribution obligation.
6.Information Rights.
1.1.Subject to Section 6.3, the Company shall, concurrently with delivery to the Board of Directors, give one (1) representative of Investors, in the aggregate (as designated by the Investors from time-to-time), copies of all substantive materials that the Company provides to its directors in connection with its regularly scheduled, quarterly meetings of the full Board of Directors, except that the representative of Investors may be excluded from access to any material or portion thereof if the Board of Directors determines in good faith that such exclusion is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information or trade secrets, or for other similar reasons.
1.2.Each Investor agrees that it will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor or deliver required reports on its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 6.2 by any Investor), (b) is or has been independently developed or conceived by such Investor without use of the Company’s confidential information, or (c) is or has been made known or disclosed to such Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any of the Shares from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Section 6.2; (iii) to any Affiliate, partner, member, director, officer, stockholder, or wholly owned subsidiary of such Investor or of any Affiliate of such Investor in the ordinary course of business (excluding such Investor’s other portfolio companies or other companies participating in such Investor’s growth credit facilities or other of such Investor’s credit investing strategies, if applicable), provided that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, provided that such Investor, to the extent permitted by law, promptly notifies the Company of such requirement and, at the Company’s request and expense, takes reasonable steps to minimize the extent of any such required disclosure.
1.3.The information rights described in this Section 6 shall terminate and be of no further force or effect upon the earlier of (a) such time as less than thirty-five percent (35%) of the Shares originally issued to Investors, in the aggregate, are then held by Investors or their respective Affiliates, in the aggregate, and (b) such time as there are no Obligations outstanding under the Loan Agreement. The confidentiality obligations referenced herein will survive any such termination.
7.Transfer Restrictions; Legend.  
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1.1.Transfer Restrictions.  In addition to any restrictions on the transfer or sale of the Shares under Applicable Law or other provisions of this Agreement, no Investor shall sell, pledge, or otherwise transfer any of the Shares, and the Company shall not recognize and shall issue stop transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, until such time as (a) the obligations of Investors under the Loan Agreement are terminated and are no longer outstanding and (b) the Investor (or any person affecting the trading of the Shares on behalf of such Investor) is not then in possession of material nonpublic information regarding the Company; provided, that an Investor may (X) establish and maintain a contract, instruction or plan (a “10b-5 Plan”) that satisfies all of the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act, the rules and regulations of the Commission pertaining thereto and any “seasoning” requirements generally applicable to insiders of the Company and (Y) sell or transfer the Shares pursuant to such a 10b-5 Plan including sales pursuant to Rule 144 or pursuant to the Initial Registration Statement or the Subsequent Registration Statement; provided further, that subsequent to the termination of the obligations of the Investors under the Loan Agreement, an Investor may sell Shares outside of a 10b-5 Plan. Provided the Investor is in compliance with the proviso provisions of the first sentence of this Section 7.1, the Company shall terminate any stop transfer instructions to its transfer agent with respect to the Shares.
1.2.Legend. Except as otherwise provided in this Section 7.2, each Share issued pursuant to this Agreement shall bear a legend in substantially the following form:
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE 1933 ACT, OR AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE ISSUER HEREOF, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT AS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT IS AVAILABLE.
8.Piggyback Registration Rights. Until the date that is the earlier of (a) the date that no Investor holds any of the Shares or (b) all remaining Shares held by Investors or any of their Affiliates, as applicable, are eligible for sale under Rule 144 within a ninety (90) day period without volume or manner-of-sale restrictions, each Investor will have piggyback registration rights with respect to any such outstanding equity securities on the terms set forth in Section 2.2 (and related provisions) of that certain Amended and Restated Registration Rights Agreement, dated as of June 16, 2022 (the “Registration Rights Agreement”), by and among the Company and the stockholders of the Company party thereto, mutatis mutandis. For purposes of this provision, each Investor shall be treated as a “Holder” and the Shares held by such Investor shall be treated as “Registrable Securities,” as both such terms are defined in the Registration Rights Agreement. 
9.No Stock Rights.  Except as otherwise specifically provided herein, no Investor, solely in its capacity as the potential future holder of the Subsequent Issuance Shares, shall be entitled to vote or receive dividends or be deemed the holder of the Subsequent Issuance Shares prior to the Subsequent Issuance Closing Date, if applicable, for any purpose, nor shall anything contained in this Agreement be construed to confer upon any Investor, solely in its capacity as the potential future holder of the Subsequent Issuance Shares, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, 
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prior to the issuance to such Investor of the Subsequent Issuance Shares, if applicable, which such Investor is then entitled to receive upon the Subsequent Issuance Closing. 
10.Required Reserve Amount. So long as the Agreement remains effective, the Company shall at all times keep reserved for issuance, free from preemptive or any other contingent purchase rights (other than those of Investors under this Agreement), a number of shares of Class A Common Stock that the Company reasonably believes should be sufficient to satisfy the Company’s obligation to issue the Subsequent Issuance Shares under this Agreement (without regard to any limitations on issuance contained herein) (the “Required Reserve Amount”). The Company shall, on a quarterly basis, evaluate its compliance with this Section 10. The Company shall take all reasonable actions necessary to reserve and seek any required approval for the issuance of all shares of Class A Common Stock (as may be adjusted or converted pursuant to Section 2.2.2(c)) that are issuable on the Subsequent Issuance Closing Date.
11.Antitrust.
1.1.At least forty-five (45) calendar days prior to the potential issuance to Investors of the Subsequent Issuance Shares (such date, the “Filing Determination Date”), Investors and the Company shall work in good faith to determine if any such issuances will require a filing or application under any Antitrust Laws.
1.2.If Investors and the Company determine that a filing or application is required pursuant to Section 11.1, then each such party agrees to promptly (but, in any event, no later than ten (10) calendar days after the Filing Determination Date) make, or cause to be made, any required filing or application under Antitrust Laws, as applicable, including a Notification and Report Form with the Antitrust Division of the U.S. Department of Justice and the U.S. Federal Trade Commission, as required by the HSR Act. The parties hereto, as applicable, agree to supply as promptly as reasonably practicable any additional information and documentary material that may reasonably be requested pursuant to Antitrust Laws and to use reasonable best efforts to take all other actions necessary, proper or advisable to cause the expiration or termination of the applicable waiting periods or obtain required approvals, as applicable under Antitrust Laws as soon as practicable, including by requesting early termination of the waiting period provided for under the HSR Act.  
1.3.No party hereto shall take any action that would reasonably be expected to adversely affect or materially delay the approval of any governmental authority, or the expiration or termination of any waiting period of any required filings or applications under Antitrust Laws, including by agreeing to merge with or acquire any other person or acquire a substantial portion of the assets of or equity in any other person. The parties hereto further covenant and agree, with respect to a threatened or pending preliminary or permanent injunction or other order, decree or ruling or statute, rule, regulation or executive order that would adversely affect the ability of the parties hereto to consummate the Subsequent Issuance, to use reasonable best efforts to prevent or lift the entry, enactment or promulgation thereof, as the case may be.
12.Termination.  This Agreement shall terminate and be void and of no further force and effect, and all rights and obligations of the parties hereunder shall terminate without any further liability on the part of any party hereto in respect thereof, upon the earliest to occur of (a) the termination of the Loan Agreement pursuant to the terms thereof or (b) upon the mutual written agreement of each of the parties hereto to terminate this Agreement; provided that nothing herein will relieve any party from liability for any willful breach hereof prior to the time of termination, and each party will be entitled to any remedies at law or in equity to recover losses, liabilities or damages arising from such breach. The obligations of the Company under 
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Sections 5 and 8 of this Agreement shall survive the termination of this Agreement in accordance with their terms, respectively. 
13.Miscellaneous.
1.1.Further Assurances. At each of the Closings, as applicable, the parties hereto shall execute and deliver such additional documents and take such additional actions as the parties hereto reasonably may deem to be practical and necessary in order to consummate the Issuances, as applicable, as contemplated by this Agreement.
1.1.1.Each Investor acknowledges that the Company will rely on the acknowledgments, understandings, agreements, representations and warranties made by such Investor contained in this Agreement. Within 30 days prior to the Subsequent Issuance Closing, if any Obligations remain outstanding under the Loan Agreement, each Investor agrees to notify the Company if any of the acknowledgments, understandings, agreements, representations and warranties made by such Investor set forth herein are no longer accurate in all material respects (other than those acknowledgments, understandings, agreements, representations and warranties qualified by materiality, in which case such Investor shall notify the Company if they are no longer accurate in any respect). The Company acknowledges that Investors will rely on the acknowledgments, understandings, agreements, representations and warranties made by the Company contained in this Agreement. Within 30 days prior to the Subsequent Issuance Closing, if any Obligations remain outstanding under the Loan Agreement, the Company agrees to notify Investors if any of the acknowledgments, understandings, agreements, representations and warranties made by the Company set forth herein are no longer accurate in all material respects (other than those acknowledgments, understandings, agreements, representations and warranties qualified by materiality, in which case the Company shall notify Investors if they are no longer accurate in any respect).
1.1.2.Each of the Company and each Investor is entitled to rely upon this Agreement and is irrevocably authorized to produce this Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.
1.1.3.The Company may request from any Investor such additional information as the Company may reasonably deem necessary to evaluate the eligibility of such Investor to acquire the Subsequent Issuance Shares, and such Investor shall provide such information as may be reasonably requested, to the extent within such Investor’s possession and control or otherwise readily available to such Investor, provided that the Company agrees to keep confidential any such information provided by such Investor.
1.1.4.Each Investor and the Company shall pay all of its own respective expenses in connection with this Agreement and the transactions contemplated herein (it being agreed that all expenses related to the Registration Statement are for the account of the Company, and the Company shall be responsible for the fees of its transfer agent and all of DTC’s fees associated with the issuance of the Shares; provided, that the Company and Investors shall each pay one half of all expenses incurred in connection with filings or applications under any Antitrust Laws in connection with this Agreement.
1.1.5.Each Investor and the Company shall take, or cause to be taken, all actions and do, or cause to be done, all things necessary, proper or advisable to consummate the transactions contemplated by this Agreement on the terms and conditions described herein no later than immediately prior to the consummation of such transactions.
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1.2.Investor hereby acknowledges and agrees that it will not, nor will any person acting at Investor’s direction or pursuant to any understanding with Investor (including Investor’s controlled Affiliates), directly or indirectly, engage in hedging activities or execute any “short sales” (as defined in Rule 200 of Regulation SHO under the Exchange Act) with respect to, any of the Shares or any other securities of the Company or any instrument exchangeable for or convertible into any of the Shares or any other securities of the Company until such time as the obligations under the Loan Agreement are terminated and no longer outstanding and Investor (or any person affecting the trading of the Shares on behalf of the Investor) is no longer in possession of material nonpublic information (or such earlier termination of this Agreement in accordance with its terms).
1.3.Notices. Any notice or communication required or permitted hereunder shall be in writing and either delivered personally, emailed or sent by overnight mail via a reputable overnight carrier, or sent by certified or registered mail, postage prepaid, and shall be deemed to be given and received (i) when so delivered personally, (ii) when sent, with no mail undeliverable or other rejection notice, if sent by email, or (iii) three (3) Business Days after the date of mailing to the address below or to such other address or addresses as such Person may hereafter designate by notice given hereunder:
(i) if to Investors or any Investor:
Avenue Sustainable Solutions Fund, L.P.
c/o Avenue Capital Group
11 West 42nd Street, 9th Floor
New York, NY 10036
Attention:    Sean Coleman
Email:        [s**********]
with a copy (which copy shall not constitute notice) to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019-6064
Attention:    Sung Pak
Email:        [s**********]
(ii) if to the Company, to:
Grove Collaborative Holdings, Inc.
        1301 Sansome St.
        San Francisco, California 94111
        Attention:     General Counsel
        Email:         [l**********]
with a copy (which copy shall not constitute notice) to:
Sidley Austin LLP
        1001 Page Mill Road
        Building 1
        Palo Alto, California 94304
        Attention:     Martin A. Wellington
        Email:         [m**********]
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Sidley Austin LLP  
        2021 McKinney Avenue
Suite 2000
        Dallas, Texas 75201
        Attention:     Angela Fontana
        Email:         [a**********]
1.4.Entire Agreement. This Agreement constitutes the entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof, including any commitment letter entered into relating to the subject matter hereof.
1.5.Modifications and Amendments. This Agreement may not be amended, modified, supplemented or waived except by an instrument in writing, signed by the party against whom enforcement of such amendment, modification, supplement or waiver is sought.
1.6.Assignment. Except as otherwise contemplated herein, neither this Agreement nor any rights, interests or obligations that may accrue to a party hereunder (including Investors’ rights to acquire the Closing Issuance Shares and Investors’ rights to acquire the Subsequent Issuance Shares) may be transferred or assigned without the prior written consent of each other party; provided that any Investor’s rights and obligations hereunder (including such Investor’s rights to acquire the Subsequent Issuance) may be assigned to one or more of its Affiliates, or any managed fund or other transferee or fund that is acceptable to the Company in its reasonable discretion, provided that such assignee(s) agrees in writing to be bound by the terms hereof, and upon such assignment by such Investor, the assignee(s) shall become an Investor hereunder and have the rights and obligations and be deemed to make the representations and warranties of an Investor provided for herein to the extent of such assignment; provided further that, no assignment shall relieve the assigning party of any of its obligations hereunder.
1.7.Benefit. Except as otherwise provided herein, this Agreement shall be binding upon, and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives, and permitted assigns, and the agreements, representations, warranties, covenants and acknowledgments contained herein shall be deemed to be made by, and be binding upon, such heirs, executors, administrators, successors, legal representatives and permitted assigns. This Agreement shall not confer rights or remedies upon any Person other than the parties hereto and their respective successors and assigns.
1.8.Governing Law. This Agreement, and any claim or cause of action hereunder based upon, arising out of or related to this Agreement (whether based on law, in equity, in contract, in tort or any other theory) or the negotiation, execution, performance or enforcement of this Agreement, shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof.
1.9.Consent to Jurisdiction; Waiver of Jury Trial. Each of the parties irrevocably consents to the exclusive jurisdiction and venue of the Court of Chancery of the State of Delaware, provided that if subject matter jurisdiction over the matter that is the subject of the legal proceeding is vested exclusively in the U.S. federal courts, such legal proceeding shall be heard in the U.S. District Court for the District of Delaware (together with the Court of Chancery of the State of Delaware, “Chosen Courts”), in connection with any matter based upon or arising out of this Agreement. Each party hereby waives, and shall not assert as a defense in any legal dispute, that (i) such Person is not personally subject to the jurisdiction of the Chosen Courts for any reason, (ii) such legal proceeding may not be brought or is not maintainable in the Chosen Courts, (iii) such Person’s property is exempt or immune from execution, (iv) such legal 
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proceeding is brought in an inconvenient forum or (v) the venue of such legal proceeding is improper. Each party hereby consents to service of process in any such proceeding in any manner permitted by Delaware law, further consents to service of process by nationally recognized overnight courier service guaranteeing overnight delivery, or by registered or certified mail, return receipt requested, at its address specified pursuant to Section 13.3 and waives and covenants not to assert or plead any objection which they might otherwise have to such manner of service of process. Notwithstanding the foregoing in this Section 13.9, a party may commence any action, claim, cause of action or suit in a court other than the Chosen Courts solely for the purpose of enforcing an order or judgment issued by the Chosen Courts. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO TRIAL BY JURY ON ANY CLAIMS OR COUNTERCLAIMS ASSERTED IN ANY LEGAL DISPUTE RELATING TO THIS AGREEMENT WHETHER NOW EXISTING OR HEREAFTER ARISING. IF THE SUBJECT MATTER OF ANY SUCH LEGAL DISPUTE IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED, NO PARTY HERETO SHALL ASSERT IN SUCH LEGAL DISPUTE A NONCOMPULSORY COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. FURTHERMORE, NO PARTY HERETO SHALL SEEK TO CONSOLIDATE ANY SUCH LEGAL DISPUTE WITH A SEPARATE ACTION OR OTHER LEGAL PROCEEDING IN WHICH A JURY TRIAL CANNOT BE WAIVED.
1.10.Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby and shall continue in full force and effect.
1.11.No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand.
1.12.Remedies.
1.1.1.The parties agree that irreparable damage would occur if this Agreement is not performed or the Subsequent Issuance Closing is not consummated, if applicable, in accordance with its specific terms or is otherwise breached and that money damages or other legal remedies would not be an adequate remedy for any such damage. It is accordingly agreed that the parties hereto shall be entitled to equitable relief, including in the form of an injunction or injunctions, to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in an appropriate court of competent jurisdiction as set forth in Section 13.9, this being in addition to any other remedy to which any party is entitled at law or in equity, including money damages. The right to specific enforcement shall include the right of the parties hereto to cause the other parties hereto to cause the transactions contemplated hereby to be consummated on the terms and subject to the conditions and limitations set forth in this Agreement. The parties hereto further agree (i) to waive any requirement for the security or posting of any bond in connection with any such equitable 
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remedy, (ii) not to assert that a remedy of specific enforcement pursuant to this Section 13.12 is unenforceable, invalid, contrary to applicable law or inequitable for any reason and (iii) to waive any defenses in any action for specific performance, including the defense that a remedy at law would be adequate.
1.1.2.The parties acknowledge and agree that this Section 13.12 is an integral part of the transactions contemplated hereby and without that right, the parties hereto would not have entered into this Agreement.
1.13.Survival of Representations and Warranties and Covenants. All representations and warranties made by the parties hereto, and all covenants and other agreements of the parties hereto, in this Agreement shall survive the Closing and the Subsequent Issuance Closing, if applicable. 
1.14.Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.
1.15.Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other parties, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
1.16.Construction. The words “include,” “includes,” and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or covenant. All references in this Agreement to numbers of shares, per share amounts and purchase prices shall be appropriately adjusted to reflect any stock split, stock dividend, stock combination, recapitalization or the like occurring after the date hereof. When calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, (a) the date that is referenced in beginning the calculation of such period will be excluded (for example, if an action is to be taken within two (2) days after a triggering event and such event occurs on a Tuesday, then the action must be taken by Thursday); and (b) if the last day of such period is a non-Business Day or non-Trading Day, as applicable, the period in question will end on the next succeeding Business Day or Trading Day, as applicable.
1.17.Mutual Drafting. This Agreement is the joint product of the parties hereto and each provision hereof has been subject to the mutual consultation, negotiation and agreement of the parties and shall not be construed for or against any party hereto.
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14.Non-Reliance. Each Investor acknowledges that it is not relying upon, and has not relied upon, any statement, representation or warranty made by any Person, firm or corporation, other than the representations and warranties of the Company expressly set forth in this Agreement, in making its investment or decision to invest in the Company. 
15.Rule 144. From and after such time as the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the Commission that may allow Investors to sell securities of the Company to the public without registration are available to holders of the Company’s shares of Common Stock and for so long as any Investor holds any Shares, the Company agrees to:
1.1.make and keep public information available, as those terms are understood and defined in Rule 144; 
1.2.file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and
1.3.take such further action as the Company customarily takes to facilitate sales without registration under the Securities Act pursuant to Rule 144.
The Company shall, if requested by any Investor (i) cause the removal of any restrictive legend related to compliance with the federal securities laws set forth on the Shares, (ii) cause its legal counsel to deliver an opinion, if necessary, to the transfer agent in connection with the instruction under subclause (i) to the effect that removal of such legends in such circumstances may be effected in compliance under the Securities Act, and (iii) issue the applicable Shares without any such legend in certificated or book-entry form or by electronic delivery through The Depository Trust Company, at such Investor’s option, within two (2) Business Days of such request, if (A) such Shares may be sold by such Investor without restriction under Rule 144, including without limitation, any volume and manner of sale restrictions or (B) such Investor has sold or transferred any Shares pursuant to a related Registration Statement or in compliance with Rule 144. The Company’s obligation to remove legends under this paragraph may be conditioned upon such Investor providing such representations and documentation (including broker representation letters and/or stockholder representation letters) as are reasonably necessary and customarily required in connection with the removal of restrictive legends related to compliance with the federal securities laws. 

 [Signature Page Follows]
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IN WITNESS WHEREOF, each of the Company and Investors have executed or caused this Agreement to be executed by its duly authorized representative as of the date set forth below.

						
	GROVE COLLABORATIVE HOLDINGS, INC.,
a Delaware public benefit corporation

	By:	/s/ Stuart Landesberg
	Name:    Stuart Landesberg
	Title:    Chief Executive Officer and President

 [Signature Page to Security Issuance Agreement]

						
	AVENUE SUSTAINABLE SOLUTIONS FUND, L.P.,
a Delaware limited partnership

By:    Avenue Sustainable Solutions Partners, LLC,
    its General Partner

By:    GL Sustainable Solutions Partners, LLC,
    its Managing Member

	By:	/s/ Sonia Gardner
	Name:    Sonia Gardner
	Title:    Member

 [Signature Page to Security Issuance Agreement]Exhibit 10.1

 

PURCHASE AND SALE AGREEMENT AND 

JOINT ESCROW INSTRUCTIONS (MULTI-STATE)

 

THIS PURCHASE AND SALE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS (MULTI-STATE) (this “Agreement”) is made and entered into as of December 20,
2022 (“Effective Date”), by and between PONTUS NET LEASE ADVISORS, LLC, a Delaware limited liability company,
its successors and/or assigns (“Purchaser”), and EP Properties, LLC,
a Minnesota limited liability company (“EPP”) and VVI Fulfillment Center, Inc.,
a Minnesota corporation (“VVIF” and together with EPP, individually a “Seller”). Except as otherwise
expressly defined herein, capitalized terms will have the meanings set forth on Schedule A attached hereto and incorporated
herein by this reference.

 

RECITALS

 

A.            EPP
owns that certain parcel of real property in Minnesota legally described on Exhibit A attached hereto (the “Shady
Oak Property”).

 

B.            Pursuant
to Section 1.06 below, Seller intends to legally subdivide the Shady Oak Property into the two parcels depicted on the attached
Exhibit A-1 as the “Minnesota Property” and the “Seller Retained Parcel”, and convey
the Minnesota Property to Purchaser pursuant to the terms of this Agreement (with Seller retaining ownership of the Seller Retained Parcel).

 

C.            VVIF
(i) owns those certain parcels of real property in Kentucky legally described on Exhibit A attached hereto (the “Kentucky
Owned Property”), and (ii) is the lessee of certain parcels of real property legally described on Exhibit A
attached hereto (the “Kentucky Bond Property”, and together with the Kentucky Owned Property, the “Kentucky
Property”), pursuant to that certain Agreement of Lease between VVIF and United States of America Commonwealth of Kentucky
County of Warren, Kentucky dated December 1, 2014 (the “Bond Lease”). The Minnesota Property and Kentucky Property
are referred to herein as the “Real Property”.

 

D.            Unless
Purchaser provides written approval of the Bond Lease during the Inspection Period, VVIF agrees to exercise its option under the Bond
Lease to purchase the Kentucky Bond Property prior to Closing.

 

E.            EPP
agrees to sell, transfer and convey its interest in the Minnesota Property to Purchaser, and VVIF agrees to sell, transfer and convey
its interest in the Kentucky Property to Purchaser, and Purchaser agrees to purchase the Minnesota Property from EPP and the Kentucky
Property from VVIF, all on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual promises, covenants, representations, conditions and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Seller hereby agrees to sell to Purchaser, and Purchaser hereby agrees
to purchase from Seller, the Property, on the following terms and conditions:

 

     

     

    

 

ARTICLE I

PURCHASE OF PROPERTY

 

Section 1.01          Agreement
to Purchase. Purchaser agrees to purchase, and Seller agrees to sell in accordance with the
terms, conditions and stipulations set forth in this Agreement (the “Transaction”), all of Seller’s right, title
and interest in and to (a) Seller’s interest in the Real Property as described in the Recitals; (b) all improvements
located on or about the Real Property and any fixtures, permanent equipment and other unencumbered equipment or fixtures, excluding Seller’s
Retained Property; (c) personal property Owned by Seller, excluding Seller’s Retained Property; (d) all licenses, contracts
and permits associated with the ownership and operation of the Real Property (excluding those related to the business conducted thereon
by Seller), if any, to the extent transferable and assignable pursuant to applicable law, but only to extent relating solely to the Real
Property; and (e) all rights and appurtenances pertaining to the land, including any and all mineral and water rights Owned by Seller,
and all right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way, if any, all of which will be included
in the Lease as equipment that is leased to tenant (collectively, the “Property”), provided, however, the Property
shall not include: (i) any of Seller’s personal property used by Seller in connection with the operation of its business on
the Real Property, (ii) any trade fixtures and used by Seller in connection with the operation of its business on the Real Property,
if any, that are identified in an exhibit to the Lease as items owned by tenant, and (iii) any of Seller’s or Tenant’s
intellectual property, trademarks, trade names, brand marks, brand names, trade dress or logos relating thereto, provided that anything
affixed to the improvements shall be identified in an exhibit of the Lease as items owned by tenant (collectively, “Seller’s
Retained Property”). Notwithstanding the foregoing or anything to the contrary contained herein, a specific list of Seller’s
Retained Property will be finalized and agreed upon by the parties during the Inspection Period and included as an exhibit to the Lease
Agreement (defined below).

 

Section 1.02          Purchase
Price. The purchase price to be paid by Purchaser to Seller for the purchase of the Property
is Forty-Eight Million Dollars ($48,000,000.00) (the “Purchase Price”), which shall be allocated between the Real
Property by Seller prior to Closing, which allocation shall be subject to Purchaser’s approval, which approval shall not be unreasonably
withheld, conditioned or delayed; provided that the foregoing approval rights only apply if Purchaser’s allocation is materially
unreasonable. The Purchase Price shall be payable as follows:

 

(a)            Independent
Consideration. Simultaneously with the execution of this Agreement, Purchaser shall deliver to Title Company the sum of One Hundred
and No/100 Dollars ($100) as “contract consideration” which Seller acknowledges is adequate consideration for Seller entering
into this Agreement with Purchaser.

 

(b)            Deposit.
Within three (3) business days following Purchaser’s delivery of its Notice to Close, Purchaser shall deliver by wire transfer
of funds to the account of Title Company designated in writing by the Title Company a sum in the amount of Four Hundred Thousand and
00/100 Dollars ($400,000.00) (which earnest money deposit, together with any interest and dividends earned thereon, is herein referred
to as the “Deposit”) with the Title Company. The Deposit shall be non-refundable, except as otherwise expressly provided
in this Agreement.

 

(c)            Balance.
The balance of the Purchase Price plus or minus other adjustments required under this Agreement, shall be paid by Purchaser at Closing
by wire transfer of immediately available funds in such amount in accordance with the written instructions delivered by the Title Company
to the Purchaser.

 

    2

     

    

 

Section 1.03          Lease
of Property. Prior to the termination of the Inspection Period, (i) Tenant and Purchaser
shall engage in good faith negotiations to draft and agree upon a triple-net master lease agreement in form and substance reasonably
satisfactory to Tenant and Purchaser (the “Lease Agreement”). The Lease Agreement shall contain the essential terms
and conditions provided in the Letter of Intent (the “Minimum Lease Terms”) and any additional terms contemplated
in this Agreement; it being understood if Tenant deviates from or attempts to renegotiate the Minimum Lease Terms, then Purchaser shall
have the option of terminating this Agreement at any time prior to the end of the Inspection Period, in which event the Deposit, if previously
paid, shall be returned to Purchaser, and Seller shall pay to Purchaser such amount to satisfy all of Purchaser’s costs and expenses
incurred in reliance on this Agreement (including, without limitation, its due diligence costs (to the extent not directly paid by Seller)
and attorneys’ fees and costs, and neither party shall have any further obligation or liability, except for the obligations set
forth herein which are expressly stated to survive termination of this Agreement. Purchaser acknowledges that (i) the Minimum Lease
Terms do not include all the terms of a lease agreement and, in some cases, do not expressly and clearly described in full the matters
reflected, and Tenant shall not be limited in its negotiation of any of the remaining terms that are not expressly and clearly described
in full in the Minimum Lease Terms, and (ii) while the parties shall negotiate in good faith, each of Purchaser and Tenant, as the
case may be, may use their sole and absolute discretion in negotiating the final terms of the Lease Agreement. If Purchaser and Tenant
have not agreed in writing on the final form of the Lease Agreement before the end of the Inspection Period, either Purchaser or Seller
may terminate this Agreement by delivering written notice of such election to the other at any time until Purchaser and Tenant have agreed
in writing on the final form of the Lease Agreement and, upon such termination, the Deposit shall be returned to Purchaser. If the parties
have agreed on the final form of the Lease Agreement as provided herein, on the Closing Date, Tenant and Purchaser shall execute and
deliver the Lease Agreement, pursuant to which Purchaser shall lease the Property to Tenant, at the rent and pursuant to the terms and
conditions contained therein.

 

Section 1.04          Prorations.
In view of the subsequent lease of the Property to Tenant pursuant to the Lease Agreement and
Tenant’s obligations thereunder, there shall be no proration of insurance, taxes, special assessments, utilities or any other costs
related to the Property between Seller and Purchaser at Closing. All real and personal property and other applicable taxes and assessments,
utilities and other charges relating to the Property which are due and payable on or prior to the Closing Date shall be paid by Seller,
in the ordinary course of its business, at or prior to Closing, and all other taxes and assessments, utilities and any such other charges
shall be paid by Tenant in accordance with the terms of the Lease Agreement.

 

Section 1.05          Transaction
Costs. Seller shall be responsible for the payment of the Due Diligence Expenses incurred by
Purchaser (or by Seller directly on behalf of Purchaser) in connection with the Transaction. “Due Diligence Expenses” means
any and all reasonable out-of-pocket costs and expenses incurred by Purchaser (or by Seller directly on behalf of Purchaser), including,
without limitation, those costs and expenses set forth in Section 2.03, the costs of any new or updated Reports (as defined below),
the Survey (as defined below), the Title Commitment (as defined below), and the Title Policy (as defined below) including all endorsements,
escrow fees, applicable State and local transfer taxes, document recording fees related to any closing and escrow fees charged by the
Title Company (including costs charged by any Title Company branch office). Each party shall be responsible for the payment of the fees
and expenses of its respective legal counsel, accountants and other professional advisers. Purchaser shall be solely responsible for
any fees or costs related to financing the Property, including any lender’s title insurance policy, mortgage fees or costs or mortgage
recording taxes.

 

    3

     

    

 

Section 1.06          Shady
Oak Property Subdivision. As described in the Recitals, Seller shall, at its sole cost and expense,
use commercially reasonable efforts to legally subdivide the Shady Oak Property into the two parcels depicted on the attached Exhibit A-1
as Lot 2 (the “Minnesota Property”) and Lot 1 (the “Seller Retained Parcel”), and convey the
Minnesota Property to Purchaser pursuant to the terms of this Agreement. Purchaser acknowledges that the boundary lines depicting the
lot split of the Shady Oak Property are not final and is subject to modification as reasonably determined by Seller. Prior to submission
of the subdivision application to the applicable governmental authority for approval, but in all events not later than ten (10) days
prior to the end of the Inspection Period, Seller shall deliver a final copy of the subdivision map to Purchaser for its approval. If
Purchaser disapproves of the subdivision map, it shall deliver written notice specifying such objections in writing within five (5) days
after its receipt of such approval request. If Purchaser disapproves the subdivision map, Purchaser and Seller shall negotiate in good
faith for a period of five (5) additional days to agree on the final location of the subdivision boundaries. If Purchaser and Seller
cannot agree on the final subdivision map to be submitted within such five (5) day discussion period, either party may terminate
this Agreement by delivering written notice of such election to the other at any time within five (5) business days thereafter.
Once the final subdivision boundaries are approved by Purchaser and Seller, this Agreement shall be amended to replace the current depiction
of the Minnesota Property and Seller Retained Parcel attached as Exhibit A-1 with an updated depiction reflecting the final
approved boundaries of each parcel. At Seller’s expense, each of Purchaser and Seller shall reasonably cooperate to complete the
subdivision. If the subdivision cannot be completed until after Closing Date specified in Section 3.01, Seller, at Seller’s
option, may elect either to (i) extend the Closing Date to a date determined by Seller to accomplish the subdivision, provided that
(x) Seller exercises its right to extend the Closing Date prior to expiration of the Inspection Period, and (y) any extended
Closing Date is subject to the approval of Purchaser, which approval shall not be unreasonably withheld; or (ii) convey the entirety
of the Shady Oak Property to Purchaser at Closing without any change in the Purchase Price, lease it back pursuant to the Lease Agreement,
and include in the Lease Agreement. Following such subdivision, Seller may repurchase the Seller Retained Parcel from Purchaser for $100,
free and clear of any liens or mortgages created by or through Purchaser, and record the REA (as defined below). If the subdivision is
not accomplished or the Seller Retained Parcel is not conveyed back to Seller during the term of the Lease Agreement for any reason,
then Seller’s purchase option as set forth in this Agreement shall be null and void and of no further force and effect. The term
 “Minnesota Property” as it is referred to herein shall automatically be amended to mean the Shady Oak Property, and the Lease
shall (i) permit Tenant’s sublease of the Seller Retained Parcel during the term of the Lease, and (ii) Tenant shall
have a right of first offer to repurchase the entire Minnesota Property, subject to and upon the terms and conditions to be specified
in the Lease.

 

Section 1.07          REA.
In the event Seller completes the subdivision of the Shady Oak Property as contemplated in Section 1.06, concurrently with the recording
of the subdivision map in the County records, Seller intends to record a reciprocal easement and operating agreement encumbering each
of the Minnesota Property and the Seller Retained Parcel that contains certain reciprocal easements and agreements pertaining to the
use and operation of the Shady Oak Property, including shared access drives, parking, stormwater and utility easements, signage and maintenance
(the “REA”). Promptly following the final determination of the boundary lines for the subdivision pursuant to Section 1.06,
Seller shall prepare a preliminary draft of the REA and deliver it to Purchaser for its approval, in its reasonable discretion. If Purchaser
disapproves of the proposed REA, it shall deliver written notice specifying such objections in writing within ten (10) days after
its receipt of such approval request. If Purchaser disapproves the proposed REA, Purchaser and Seller shall negotiate in good faith for
a period of ten (10) additional days to agree on the final REA. If Purchaser and Seller cannot agree on the final REA within such
ten (10) day discussion period, either party may terminate this Agreement by delivering written notice of such election to the other
at any time before the earlier to occur of the end of the Inspection Period or ten (10) days after the end of such ten (10) day
discussion period.

 

    4

     

    

 

ARTICLE II

DUE DILIGENCE

 

Section 2.01          Title
Insurance.

 

(a)            Survey,
Title Commitment and Title Policy. Seller has delivered to Purchaser, a title insurance commitment (the “Title Commitment”)
with respect to each Real Property issued by the Title Company, as well as copies of all documents referred to as exceptions to title
in the Title Commitment. The Title Commitment has been issued by the St. Louis branch of the Title Company. Seller shall coordinate with
Title Company so the Closing shall occur using the New York branch of Title Company. Seller shall deliver to Purchaser an existing survey
of each Real Property and cause a licensed surveyor or civil engineer to update such survey or provide a new survey, in sufficient detail
to provide ALTA owner’s coverage to Purchaser in connection with the Title Policy (the “Survey”). It shall be
a condition to Purchaser’s obligation to consummate the Transaction that the Title Company shall issue to Purchaser at Closing
an ALTA Owner’s Title Insurance Policy, together with any endorsements to the ALTA Owner’s Title Insurance Policy that Purchaser
may reasonably require (collectively, the “Title Policy”). The Title Commitment, the Title Policy (including all endorsements)
and updates to the existing survey or a new survey shall be paid by Seller to the extent not otherwise reimbursed by Seller to Purchaser
as Due Diligence Expenses.

 

(b)            Title
Company. The Title Company is hereby engaged by the parties to act as Title Company in connection with this Transaction. This
Agreement shall be used as instructions to the Title Company, which may provide its standard conditions of acceptance of escrow; provided,
however, that in the event of any inconsistency between such standard conditions of acceptance and the terms of this Agreement, the terms
of this Agreement shall prevail. The Title Company’s receipt of this Agreement and the opening of an escrow pursuant to this Agreement
shall be deemed to constitute conclusive evidence of the Title Company’s agreement to be bound by the terms and conditions of this
Agreement pertaining to the Title Company.

 

(c)            Title
Company Actions. The Title Company shall not cause the Transaction to close unless and until it has received written instructions
from Purchaser and Seller to do so.

 

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(d)            Title
Objections.

 

(i)            No
later than ten (10) days prior to expiration of the Inspection Period, Purchaser shall notify Seller in writing of Purchaser’s
objection to any exceptions or other title matters shown on the Title Commitment or survey matters shown on the Survey of any parcel
of the Real Property (each, a “Title Objection”). Seller shall notify Purchaser in writing (the “Title Response”),
within five (5) Business Days of Seller’s receipt of the Title Objections, whether it will attempt to remove or resolve such
Title Objection prior to the Closing Date, not being under any obligation to do so. Any matters Seller agrees to attempt to remove or
resolve prior to Closing will become a condition to Closing. Failure to respond to any such Title Objection shall be deemed an election
by Seller not to cure such Title Objection. If Seller elects not to remove or resolve any Title Objection, then Purchaser shall have
the option, as its sole remedy, upon written notice to Seller within five (5) Business Days after Purchaser’s receipt of the
Title Response (or Seller’s deemed election upon expiration of such response period), to waive such Title Objection or to terminate
this Agreement, whereupon the Deposit shall be returned to Purchaser and neither Purchaser nor Seller shall have any further duties or
obligations under this Agreement, except as otherwise provided herein. Any Title Objections that are waived hereunder shall be Permitted
Encumbrances.

 

(ii)           If
any supplement to a Title Commitment or the survey discloses any additional title defects not shown on the original Title Commitment
which were not created by or with the consent of Purchaser, Purchaser shall notify Seller in writing of its objection thereto (each,
an “Additional Title Objection”) within five (5) Business Days following receipt of such supplement or revision,
but in no event later than the Closing Date. If any Additional Title Objection is not removed or resolved by Seller to Purchaser’s
reasonable satisfaction prior to the Closing Date, then Purchaser shall have the option, as its sole remedy, either to waive such Additional
Title Objection and proceed to Closing or to terminate this Agreement upon written notice to Seller on or before the Closing Date, and
if terminated, the Deposit shall be returned to Purchaser and neither Purchaser nor Seller shall have any further duties or obligations
under this Agreement, except as otherwise provided herein. Any Title Objections that are waived hereunder shall be Permitted Encumbrances.

 

(iii)          Purchaser’s
failure to timely deliver a Title Objection or an Additional Title Objection within the applicable time period shall be deemed Purchaser’s
acceptance of the matters disclosed by the Title Commitment and Survey. If Purchaser does not terminate this Agreement by reason of any
Title Objection or Additional Title Objection as provided in this Section, then such Title Objection or Additional Title Objection shall
be deemed waived and approved by Purchaser and shall thereafter be deemed Permitted Encumbrances. Notwithstanding the above, Seller shall
cause the removal of any and all monetary liens, mechanics liens, judgments, delinquent property taxes and any other monetary encumbrances
created by Seller that can be cured by the payment of money.

 

Section 2.02          Seller
Documents. Purchaser acknowledges that Seller has provided Buyer due diligence documents set
forth on the attached Exhibit C (“Due Diligence Documents”). To the extent not included in the Due Diligence
Documents or otherwise delivered to Purchaser, but in no event later than five (5) Business Days following the Effective Date, Seller
shall deliver or make available to Purchaser the following items to the extent they are in Seller’s possession or under its reasonable
control (collectively, the “Seller Documents”), receipt of which shall be promptly acknowledged by Purchaser: (a) existing
title reports or title policies and surveys related to the Real Property; (b) existing title commitments related to the Real Property;
(c) existing environmental reports related to the Real Property (including without limitation, Phase I and Phase II environmental
investigation reports); (d) guaranties and warranties in effect with respect to the Property; (e) to the extent not publicly
accessible, Tenant’s consolidated year-to-date financial statements prepared in accordance with Tenant’s ordinary accounting
practices (collectively, the “Financial Statements”); (f) profit and loss statements (or equivalent) for the
individual Bowling Green facilities; (g) existing property condition and zoning reports related to the Property;
(h) any material contracts and agreements relating to the operation of the Real Property; (i) the Bond Lease and other documents
related thereto, and (j) such other existing third party customary real estate diligence documents related to the ownership, lease
and operation of the Property (as opposed to the business conducted thereon) reasonably requested by Purchaser. Seller shall also use
commercially reasonable efforts to provide to Purchaser any other information requested by Purchaser after the Effective Date with respect
to the Real Property.

 

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Section 2.03          Inspections.
Subject to the terms, provisions and limitations set forth in this Agreement, and provided that
such inspections are conducted in a manner so as not to unreasonably interfere with the normal operations of the business, following
not less than two (2) Business Days’ advance written notice in each instance and provided that Purchaser will coordinate with
Seller regarding the timing of any Inspection and shall endeavor to have Inspections performed during normal business hours on Business
Days or as otherwise agreed upon by the parties, (a) Purchaser may perform reasonable investigations, tests and inspections (collectively,
the “Inspections”) with respect to the Property that Purchaser deems reasonably appropriate; and (b) Seller shall,
upon written request from Purchaser, (i) provide Purchaser with reasonable access to the Property and the Seller Documents, and
(ii) except as otherwise limited in this Agreement, allow Purchaser to make such reasonable inspections, tests, copies, and verifications
as Purchaser reasonably considers necessary. Without limiting the foregoing, “Inspections” shall include, among other things,
Purchaser’s (W) inspection of any permanent equipment installed on, or special purpose/customization of the Property, (X) review
of the operating expenses of the Property for the last three (3) years, (Y) meetings with representatives of the Property’s
management team, and (Z) confirmation of the final sources and uses of sale-leaseback proceeds in accordance with the terms of this
Agreement.

 

Seller has ordered a phase
I environmental report, property condition report, and zoning report for the Property (collectively, the “Reports”),
from a duly licensed vendor in their respective fields. The cost of each of the Reports shall be paid by Seller. If the Transaction fails
to close for any reason, Purchaser shall return any Seller-provided diligence or property materials (including the Seller Documents,
the Reports and any existing, new or updated third-party diligence) to Seller at Seller’s written request. Seller shall be entitled
to receive and use any and all Reports prepared by or at the expense of Seller, including using them with future prospective purchasers;
provided, however, that Purchaser makes no representations or warranties of any kind whatsoever to Seller as to the accuracy or completeness
of the content of any documents or other information delivered to Seller pursuant to Section 2.02 or this Section 2.03.

 

Purchaser shall use best
efforts to cause all Inspections performed at the Property pursuant to this Section 2.03 to be performed in a manner that does not
unreasonably disturb or disrupt the business operations at the Property. Purchaser’s agents, employees, representatives and contractors
entering onto the Property shall carry not less than Two Million and No/100 Dollars ($2,000,000.00) commercial liability insurance coverage
by a company licensed to do business in the State where each Property is located insuring all activity and conduct of Purchaser and such
representatives and insuring Purchaser’s indemnity obligations arising under this Agreement. In the event that, as a direct result
of Purchaser’s Inspections, any damage occurs to the Property, then Purchaser shall promptly repair such damage at Purchaser’s
sole cost and expense. Purchaser hereby indemnifies, protects, defends and holds Seller harmless from and against any and all actual
losses, damages, claims, causes of action, judgments, damages, costs and expenses (including reasonable fees of attorneys) that Seller
suffers or incurs as a result of (i) a breach of Purchaser’s agreements set forth in this Section 2.03 in connection
with the Inspections or (ii) physical damage to the Property or bodily injury caused by any act or omission of Purchaser or its
agents, employees or contractors in connection with the right of inspection granted under this Section 2.03. The indemnity provision
of this Section 2.03 shall survive the termination of this Agreement or Closing.

 

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Section 2.04          Purchaser’s
Right to Terminate. Notwithstanding any provision contained herein, in addition to its right
to terminate this Agreement as set forth in Section 2.01, if Purchaser determines, in its sole discretion, for any reason or no
reason, that it elects not to purchase the Property, and Purchaser provides written notice thereof to Seller on or before the expiration
of the Inspection Period, Purchaser shall have the option to terminate this Agreement on or prior to the expiration of the Inspection
Period, and if terminated, neither Seller nor Purchaser shall have any further duties or obligations under this Agreement except as otherwise
provided herein. If Purchaser does not provide the Notice to Close prior to the expiration of the Inspection Period, then upon the expiration
of the Inspection Period, Purchaser shall have been deemed to terminate this Agreement in accordance with this Section 2.04.

 

Section 2.05          Purchaser’s
Right to Modify Agreement. Notwithstanding anything contained in this Agreement to the contrary,
if prior to the expiration of the Inspection Period, Purchaser determines that (i) any Report or Seller Document reflects environmental
issues or concerns with any parcel of the Property, including recognized environmental conditions, (ii) the value of any parcel
of the Property is impaired based on Purchaser’s review of any Seller Document or Report, (iii) any characteristic of any
parcel of the Property adversely impacts the value of such parcel of the Property, and/or (iv) the financial projections of any
parcel of the Property materially differ from those of the remaining parcel(s) of the Property as determined by Purchaser in its
reasonable discretion, then Purchaser shall have the option, in lieu of terminating this Agreement, to remove such parcel(s) of
the Property from this Agreement and proceed to Closing with the remaining parcel(s) of Property (“Real Property Removal”).
Purchaser shall provide written notice to Seller at any time prior to the expiration of the Inspection Period of its desire for a Real
Property Removal. In the event of a Real Property Removal, the Purchase Price and Rent due under the Lease Agreement shall be reduced
and adjusted by a value that is equivalent to the allocations set forth on Schedule B attached hereto and incorporated hereby
with respect to the Location being the subject of the Real Property Removal.

 

ARTICLE III

CLOSING

 

Section 3.01          Closing
Date. Subject to the provisions of Article V of this Agreement and satisfaction of any
applicable closing conditions in Section 4.03 and Section 4.04, the closing date of the Transaction contemplated by this Agreement
(the “Closing”) shall occur on that date which is fifteen (15) business days following the expiration of the Inspection
Period (the “Closing Date”). The parties shall deposit with the Title Company all documents (including without limitation,
the executed Transaction Documents) as necessary to comply with the parties’ respective obligations hereunder on or before the
Closing Date or as otherwise mutually agreed upon by the parties. The parties shall deposit all funds required hereunder with the Title
Company on or before the Closing Date.

 

Section 3.02          Kentucky
Bond Property. Notwithstanding anything to the contrary in Section 3.01, if Seller does
not believe in its commercially reasonable discretion that it will receive by the Closing Date fee title to the Kentucky Bond Property
in the condition required pursuant to the terms of the Bond Lease from Warren County, Kentucky, then Seller, at Seller’s option,
may elect to extend the Closing for up to thirty (30) days (the “Bond Property Condition”) to satisfy the Bond Property
Condition, provided that Seller exercises its right to extend the Closing Date prior to expiration of the Inspection Period. If the Bond
Property Condition remains unsatisfied by the Closing Date, and Purchaser does not elect to provide such additional time to Seller to
satisfy the Bond Property Condition as Purchaser may determine, then a Seller Default shall have deemed to have occurred, and Purchaser
shall have all rights and remedies set forth in Section 6.02 below.

 

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Section 3.03          Possession.
Possession of the Property, free and clear of all liens, encumbrances and parties in possession,
except for the Permitted Encumbrances, shall be delivered to Purchaser on the Closing Date.

 

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS; CLOSING CONDITIONS

 

Section 4.01          Seller.
Each Seller with respect to its respective Property represents and warrants to, and covenants
with, Purchaser as follows:

 

(a)            Organization
and Authority. Seller is duly organized or formed, validly existing and in good standing under the laws of its state of organization,
and qualified as a foreign limited liability company to do business in any jurisdiction where such qualification is required. Seller
has all requisite limited liability company power and authority to own and operate the Property, to execute, deliver and perform its
obligations under this Agreement and all of the other Transaction Documents, and to carry out the Transaction. The Person who has executed
this Agreement and the other documents contemplated by this Agreement on behalf of Seller has been duly authorized to do so.

 

(b)            Enforceability
of Documents. To Seller’s knowledge, upon execution by Seller and Tenant, this Agreement and the other Transaction Documents
shall constitute the legal, valid and binding obligations of Seller and Tenant, enforceable against Seller and Tenant in accordance with
their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, arrangement, moratorium,
or other similar laws relating to or affecting the rights of creditors generally, or by general equitable principles or any other laws
of the states where the Real Property is located pertaining to the sale or leasing of real property.

 

(c)            No
Other Agreements and Options. Except as disclosed to Purchaser in writing or in the Title Commitment, none of Seller or Tenant,
or, to the best of Seller’s knowledge, the Property is subject to any commitment, obligation, or agreement, including, without
limitation, any right of first refusal, option to purchase or lease granted to a third party, which would prevent Seller from completing
or impair Seller’s ability to complete the consummate the Transaction as provided in this Agreement, the subsequent lease of each
Property by Purchaser pursuant to the Lease Agreement, or which would bind Purchaser subsequent to consummation of the Transaction.

 

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(d)            No
Violations. The authorization, execution, delivery and performance of this Agreement and the other Transaction Documents will
not (i) violate any provisions of the certificate of formation or other charter documents of Seller and Tenant, (ii) result
in a violation of or a conflict with, or constitute a default (or an event which, with or without due notice or lapse of time, or both,
would constitute a default) under any other document, instrument or agreement to which Seller or Tenant is a party or by which Seller,
Tenant, any of the property of Seller or Tenant or, to the best of Seller’s knowledge, the Property is subject or bound, which
in any way materially and adversely affects the Property, the ability of Seller or Tenant to perform under this Agreement, or any other
Transaction Documents, (iii) except for the Lease Agreement or any charges or costs arising from the conveyance of the Property,
result in the creation or imposition of any Lien, restriction, charge or limitation of any kind, upon each Seller, Tenant or the Property,
or (iv) in and of itself, violate any applicable law, statute, regulation, rule, ordinance, code, rule or order of any court
or Governmental Authority which in any way materially and adversely affects the Property, the ability of Seller and Tenant to perform
under this Agreement, the Lease Agreement or any other Transaction Documents.

 

(e)            Compliance.
Seller has not received any written notification that the Property is in violation of any Legal Requirements which in any way
materially and adversely affects the Property, the ability of Seller and Tenant to perform under this Agreement, or any other Transaction
Documents.

 

(f)            Compliance
with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws. Seller and Tenant are not currently identified on the
OFAC List, and are not a Person with whom a citizen of the United States is prohibited from engaging in transactions by any trade embargo,
economic sanction, or other prohibition of United States law, regulation, or executive order of the President of the United States.

 

(g)            Litigation.
There is no legal, administrative, arbitration or other proceeding, claim or action of any nature or investigation pending or
involving or, to the best of Seller’s knowledge, threatened against, Seller, Tenant or the Property before any Governmental Authority
which in any way materially and adversely affects the ability of Seller and Tenant to perform under this Agreement or any other Transaction
Documents to which it is a party; and to the best of Seller’s knowledge, there is no valid basis for any such legal, administrative,
arbitration or other proceeding, claim or action of any nature or investigation.

 

(h)            Condition
of Property. The Property and all of the material equipment located thereon are of good workmanship and materials, fully equipped
and operational, in reasonably good condition and repair. Seller shall maintain the Property in good working condition and in compliance
with all applicable laws.

 

(i)            Condemnation.
No condemnation or eminent domain proceedings affecting the Property has been commenced or, to the best of Seller’s knowledge,
are contemplated except as disclosed to Purchaser in writing.

 

(j)            Environmental.
Except as provided in the Environmental Reports and Seller Documents, to Seller’s actual knowledge:

 

(i)            No
Hazardous Materials, except in material compliance with Hazardous Materials Laws, exist on, under or about the Property or have been
transported to or from the Property or used, generated, manufactured, stored or disposed of on, under or about the Property. The Property
is not in material violation of any Hazardous Materials Laws on, under or about the Property, including, without limitation, air, soil
and groundwater conditions.

 

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(ii)            Seller
has not received any written notice or other written communication from any Person (including but not limited to a Governmental Authority)
alleging a violation of Hazardous Materials Laws on the Property, or that require remediation thereof pursuant to applicable Hazardous
Materials Laws, or that Seller has any liability pursuant to Hazardous Materials Law with respect to environmental conditions in connection
with the Property, or any actual or, to Seller’s knowledge, threatened administrative or judicial proceedings in connection with
any of the foregoing.

 

(k)            Solvency.
There is no contemplated, pending or threatened Insolvency Event or similar proceedings, whether voluntary or involuntary, affecting
Seller or Tenant, or to Seller’s knowledge, any of their shareholders or Affiliates.

 

(l)            Use
of Net Proceeds. All Net Proceeds from the Transaction shall be used by Seller to purchase Seller notes and pay down of Seller’s
corporate debts unless otherwise agreed upon by the parties prior to expiration of the Inspection Period.

 

(m)            Seller
Documents. To Seller’s knowledge, the Seller Documents are all of the material documents within Seller’s possession
or control that have a material effect on the use, occupancy or value of the Property.

 

All representations and warranties
of Seller made in this Agreement shall be true in all material respects as of the date of this Agreement, shall be deemed to have been
made again at and as of the Closing Date in all material respects to the extent circumstances have not changed and such changes have
been disclosed to Purchaser in writing, and shall survive Closing for a period of twelve (12) months from the Closing Date. For purposes
of this Agreement, Seller’s “actual knowledge” with respect to the Minnesota Property shall mean the actual, present
consciousness of Joe Anderson and with respect to the Kentucky Property Rick Ward, each without any duty of inquiry or investigation.
Purchaser acknowledges that Purchaser has conducted its own due diligence on the Real Property. Except as expressly set forth above,
Seller makes no representations or warranties of any kind or nature regarding the condition of the Real Property and Seller disclaims
any and all warranties and representations relating to the Real Property.

 

Section 4.02          Purchaser.
Purchaser represents and warrants to, and covenants with, Seller as follows:

 

(a)            Organization
and Authority. Purchaser is duly organized, validly existing and in good standing under the laws of its state of formation. Purchaser
has all requisite power and authority to execute, deliver and perform its obligations under this Agreement and all of the other Transaction
Documents to which it is a party and to carry out the Transaction. The Person who has executed this Agreement on behalf of Purchaser
has been duly authorized to do so.

 

(b)            Enforceability
of Documents. To Purchaser’s knowledge, upon execution by Purchaser, this Agreement and the other Transaction Documents
to which it is a party, shall constitute the legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance
with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, arrangement, moratorium,
or other similar laws relating to or affecting the rights of creditors generally, or by general equitable principles.

 

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(c)            No
Violations. The authorization, execution, delivery and performance of this Agreement and the other Transaction Documents will
not (i) violate any provisions of the articles of incorporation or other charter documents of Purchaser, (ii) result in a violation
of or a conflict with, or constitute a default (or an event which, with or without due notice or lapse of time, or both, would constitute
a default) under any other document, instrument or agreement to which Purchaser is a party or by which Purchaser is subject or bound,
(iii) result in the creation or imposition of any Lien, restriction, charge or limitation of any kind, upon Purchaser, or (iv) violate
any applicable law, statute, regulation, rule, ordinance, code, rule or order of any court or Governmental Authority.

 

(d)            Compliance
with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws. Purchaser is not currently identified on the OFAC List,
and is not a Person with whom a citizen of the United States is prohibited from engaging in transactions by any trade embargo, economic
sanction, or other prohibition of United States law, regulation, or executive order of the President of the United States.

 

(e)            Litigation.
There are no actions or proceedings pending against or involving Purchaser before any Governmental Authority which in any way
materially and adversely affects Purchaser’s ability to perform under this Agreement or any other Transaction Documents to which
it is a party.

 

(f)            Satisfaction
of Conditions Precedent. From the Effective Date through the Closing Date, Purchaser agrees to use its best efforts to satisfy
all conditions set forth in this Agreement on or prior to the Closing Date.

 

All representations and warranties
of Purchaser made in this Agreement shall be true in all material respects as of the date of this Agreement, shall be deemed to have
been made again at and as of the Closing Date in all material respects to the extent circumstances have not changed and such changes
have been disclosed to Seller in writing, and shall survive Closing for a period of twelve (12) months from the Closing Date.

 

Section 4.03          Conditions
to Purchaser’s Obligation to Purchase. Purchaser’s obligation to close the Transaction
and purchase the Property is expressly conditioned upon each of the following conditions being satisfied prior to or at the Closing:

 

(a)            Performance
by Seller. Timely performance of each obligation, covenant, and delivery required of Seller.

 

(b)            Accuracy
of Representations. All of Seller’s representations and warranties contained in or made pursuant to this Agreement shall
be true and correct in all material respects as of the Closing Date to the extent circumstances have not changed and such changes have
been disclosed to Purchaser, and Seller shall have complied in all material respects with all of Seller’s covenants and agreements
contained in or made pursuant to this Agreement to be complied with by Seller prior to Closing, except for failures to be so true and
correct or to comply as would not in the aggregate be reasonably likely to have a material adverse effect on and as of the Closing Date,
and Seller shall have delivered all of the documents required to be delivered by Seller into escrow with the Title Company as required
hereunder.

 

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(c)            Change
in Conditions. If any of the conditions in this Section 4.03 change in a material respect after having been satisfied or
waived by Purchaser before the Closing of this Transaction occurs, then such condition(s) shall be reinstated as if having never
been satisfied or waived by Purchaser, subject to the terms and conditions of this Agreement.

 

(d)            Title
Policy. The Title Company must be irrevocably committed to issuing the Title Policy
at Closing in an amount up to the Purchase Price, subject to Permitted Encumbrances, and otherwise in the form reasonably agreed upon
by Purchaser pursuant to Section 2.01(a), above.

 

(e)            Tenant
Financial Condition. There shall have been no material adverse changes in the Tenant’s financials or operations (which
would reasonably be expected to materially impair Tenant’s ability to perform its material obligations under the Lease Agreement.

 

(f)            No
Litigation. There is no order, stay, injunction or restraining order, or any pending or threatened litigation which, if decided
against Seller or Tenant, (i) would be likely to have a material adverse effect on the business, condition (financial or otherwise),
operations, performance, properties or prospects of the Seller or Tenant, or (ii) would be likely to have a material adverse effect
on (X) the ability of Seller or Tenant to consummate the Transaction, (Y) the ability of Tenant to perform its obligations
under the Lease Agreement, or (Z) Purchaser’s rights and remedies as lessor under the Lease Agreement.

 

(g)            Satisfaction
of Conditions Precedent. Seller shall have used commercially reasonable efforts to satisfy in all material respects the conditions
set forth in this Agreement to be satisfied by Seller on or prior to the Closing Date.

 

(h)            Kentucky
Bond Property. Seller shall have received fee title to the Kentucky Bond Property in the condition required pursuant to the terms
of the Bond Lease from Warren County, Kentucky.

 

The foregoing conditions
contained in this Section 4.03 are solely for the benefit of Purchaser. If any of the foregoing conditions are not satisfied or
approved by Purchaser on or before the Closing Date, Purchaser may, in its sole election, as its sole remedy, either (i) waive the
condition in question and proceed with the purchase of the Property pursuant to all of the other terms of this Agreement and close and
acquire the Property without reduction of the Purchase Price as a result of such failed condition, or (ii) terminate this Agreement,
at which time the Deposit shall be returned to Purchaser and this Agreement will have no further force or effect, and the parties will
have no further obligations to each other except as expressly provided herein.

 

Section 4.04          Conditions
to Seller’s Obligation to Sell. Seller’s obligation to close the Transaction and
sell the Property is expressly conditioned upon each of the following conditions being satisfied prior to or at the Closing

 

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(a)            Performance
by Purchaser. Timely performance of each obligation, covenant, and delivery required of Purchaser.

 

(b)            Accuracy
of Representations. All of Purchaser’s representations and warranties contained in or made pursuant to this Agreement shall
have been true and correct in all material respects at the Closing Date to the extent circumstances have not changed and such changes
have been disclosed to Seller, and Purchaser shall have complied in all material respects with all of Purchaser’s covenants and
agreements contained in or made pursuant to this Agreement to be complied with by Purchaser prior to Closing, except for failures to
be so true and correct or to comply as would not in the aggregate be reasonably likely to have a material adverse effect on and as of
the Closing Date, and Purchaser shall have delivered all of the documents required to be delivered by Purchaser into escrow with the
Title Company as required hereunder.

 

(c)            Payment
of Purchase Price. Payment of the Purchase Price (less the Due Diligence Expenses to be reimbursed to Purchaser as provided in
this Agreement) at the Closing in the manner provided in this Agreement.

 

(d)            Satisfaction
of Conditions Precedent. Purchaser shall have used commercially reasonable efforts to satisfy in all material respects the conditions
set forth in this Agreement to be satisfied by Purchaser on or prior to the Closing Date.

 

The conditions set forth
in this Section 4.04 are solely for the benefit of Seller and may be waived by Seller only, in writing, in Seller’s sole discretion.
If one or more of the conditions in this Section 4.04 are not satisfied as of the Closing, then Seller may elect to terminate this
Agreement and the Deposit, the Seller Documents, the Survey, the Title Commitment and the Reports promptly shall be delivered to Seller,
at which time this Agreement will have no further force or effect, and the parties will have no further obligations to each other except
as expressly provided herein.

 

ARTICLE V

CLOSING DELIVERIES

 

Section 5.01          Seller’s
Closing Deliveries. On or before Closing, Seller or Tenant or their affiliates, as appropriate,
shall deliver to the Title Company the following items:

 

(i)            The
Deeds, pursuant to which all of Seller’s right, title and interest in and to the Real Property is conveyed to Purchaser, free and
clear of all liens (including Environmental Liens), restrictions, encroachments and easements, except the Permitted Encumbrances, in
the forms attached as Exhibit D-1 and Exhibit D-2 hereto (the “Deed”);

 

(ii)           Such
documents evidencing the authority of Seller or Tenant to execute the applicable Transaction Documents, legal status and good standing
of Sellers and Tenant that may be reasonably required by the Title Company for issuance of the Title Policy, including, without limitation,
certificates of good standing;

 

(iii)          Fully
executed originals of (A) the Lease Agreement, together with fully executed originals of a memoranda thereof (the “Memoranda
of Lease”), and (B) all of the other Transaction Documents;

 

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(iv)          Certificates
evidencing the insurance coverage, limits and policies to be carried by Tenant under and pursuant to the terms of the Lease Agreement,
on the forms and containing the information required under the Lease Agreement (“Lease Proof of Insurance”);

 

(v)           A
duly executed affidavit from Seller stating that Seller is not a “foreign person” as defined in the Federal Foreign Investment
in Real Property Tax Act of 1980 and 1984 Tax Reform Act, in the form attached hereto as Exhibit E (“Non-Foreign
Seller Certificate”);

 

(vi)          The
SNDA (as defined below);

 

(vii)         Closing
settlement statement to reflect the credits, prorations, and adjustments contemplated by or specifically provided for in this Agreement;

 

(viii)        All
documents required to be delivered by Seller under this Agreement and the other Transaction Documents; and

 

(ix)           Such
further documents as reasonably may be required by Seller or the Title Company in order to fully and legally close this Transaction.

 

Section 5.02          Purchaser’s
Closing Deliveries.  On or before Closing, Purchaser shall have delivered to the Title Company:

 

(i)            The
Purchase Price, less the Due Diligence Expenses that have not already been paid by Seller;

 

(ii)           Fully
executed originals of all Transaction Documents, including without limitation, the Lease Agreement and the Memoranda of Lease;

 

(iii)          If
Purchaser will obtain a loan and place a mortgage on the Property at Closing, a subordination, non-disturbance and attornment agreement
in form set forth in the Lease (the “SNDA”);

 

(iv)          Closing
settlement statement to reflect the credits, prorations, and adjustments contemplated by or specifically provided for in this Agreement;
and

 

(v)           Such
further documents as may reasonably be required by Purchaser in order to fully and legally close this Transaction.

 

ARTICLE VI

DEFAULTS; REMEDIES

 

Section 6.01          Seller’s
Default. Each of the following shall be deemed an event of default by Seller (each, a “Seller
Default”):

 

(a)            If
any representation or warranty of Seller set forth in this Agreement or any other Transaction Document is false in any material respect,
and Seller does not cure such breach within three (3) Business Days of Seller’s receipt of written notice of such failure;
provided, however, if any such failure cannot reasonably be cured within such three (3) Business Day period and Seller is diligently
pursuing a cure of such breach, then Seller shall have a reasonable period to cure such failure beyond such three (3) Business Day
period, which period shall in no event exceed thirty (30) days after receiving notice of such failure from Purchaser; or

 

    15

     

    

 

(b)            If
Seller fails to convey the Property to Purchaser on the Closing Date in breach of its obligations to do so under this Agreement; or

 

(c)            If
Seller fails to keep or perform any of the terms or provisions of this Agreement in any material respect, and does not cure such failure
within three (3) Business Days of Seller’s receipt of written notice of such failure; provided, however, if any such failure
cannot reasonably be cured within such three (3) Business Day period and Seller is diligently pursuing a cure of such failure, then
Seller shall have a reasonable period to cure such failure beyond such three (3) Business Day period, which period shall in no event
exceed thirty (30) days after receiving notice of such failure from Purchaser.

 

Section 6.02          Remedies.
In the event of any Seller Default, Purchaser shall be entitled to exercise, at its option,
one of the following sole and exclusive remedies:

 

(a)            Purchaser
may terminate this Agreement by giving written notice to Seller within the earlier of the Closing Date or ten (10) Business Days
after Purchaser becomes aware of the Seller Default, in which event the Deposit shall be returned to Purchaser and Seller shall pay to
Purchaser such amount to satisfy all of Purchaser’s third-party costs and expenses incurred in reliance on this Agreement, including,
without limitation, its due diligence costs (to the extent not directly paid by Seller) and Purchaser’s reasonable out-of-pocket
attorneys’ fees and costs, not to exceed an aggregate amount of One Hundred Thousand Dollars ($100,000), and neither party shall
have any further obligation or liability, except for the obligations set forth herein which are expressly stated to survive termination
of this Agreement; or

 

(b)            Purchaser
may waive the Seller Default and promptly proceed with the Closing, without any abatement or reduction in the Purchase Price; or

 

(c)            If
available, Purchaser may specifically enforce the performance of this Agreement by filing an action for specific performance of Seller's
express obligations hereunder, without abatement of, credit against, or reduction in the Purchase Price, provided that any action for
specific performance shall be commenced within sixty (60) days of Seller Default. Notwithstanding the foregoing, in the event that the
remedy of specific performance is unavailable to Purchaser due to actions of Seller, then Purchaser shall be entitled to pursue all available
rights and remedies at law or in equity.

 

Section 6.03          Purchaser’s
Default. Each of the following shall be deemed an event of default by Purchaser (each, a “Purchaser
Default”):

 

(a)            If
any representation or warranty of Purchaser set forth in this Agreement or any other Transaction Document is false in any material respect
or if Purchaser renders any false statement;

 

(b)            If
Purchaser fails to consummate the Transaction on the Closing Date in breach of its obligations to do so under this Agreement; or

 

    16

     

    

 

(c)            If
Purchaser fails to keep or perform any of the terms or provisions of this Agreement in any material respect at or prior to the Closing
Date and does not cure such failure within three (3) Business Days of Purchaser’s receipt of written notice of such failure;
provided, however, if any such failure cannot reasonably be cured within such three (3) Business Day period, such failure or default
is not a monetary default (i.e., a failure to pay any sum owed by Purchaser under this Agreement), and Purchaser is diligently pursuing
a cure of such non-monetary failure, then Purchaser shall have a reasonable period to cure such failure beyond such three (3) Business
Day period, which period shall in no event exceed thirty (30) days after receiving notice of such failure from Seller. In no event shall
the three (3) Business Day cure period be extended to cure any monetary default.

 

Section 6.04          Seller
Remedies. In the event of any Purchaser Default, Seller, as its sole and exclusive remedy, may
terminate this Agreement by giving written notice to Purchaser, in which event the Deposit shall be delivered by the Title Company to
Seller, as liquidated damages and in satisfaction of all of Seller’s costs and expenses incurred in reliance on this Agreement.
Notwithstanding anything to the contrary in this Agreement, in no event shall Purchaser be liable to Seller for any consequential, indirect,
speculative or punitive damages under this Agreement.

 

ARTICLE VII

MISCELLANEOUS

 

Section 7.01          Transaction
Characterization. The parties intend the Lease Agreement to be a true lease and not a transaction
creating a financing lease, capital lease, equitable mortgage, mortgage, deed of trust, security interest or other financing arrangement,
and the economic realities of the Lease Agreement are those of a true lease.

 

Section 7.02          Risk
of Loss.

 

(a)            Condemnation.
If, prior to Closing, action is threatened in writing or initiated to take any portion of any Property, by eminent domain proceedings
or by deed in lieu thereof, either Seller or Purchaser may elect at or prior to Closing, to terminate this Agreement, in which event
the Deposit shall be returned to Purchaser and the Seller and Purchaser shall be relieved and discharged of any further liability or
obligation under this Agreement, except as otherwise expressly set forth herein (including without limitation, the payment of Due Diligence
Expenses and the other expenses as set forth in Section 1.05). If neither party elects to terminate this Agreement pursuant to the
previous sentence, the parties shall proceed to close without any modification of the Purchase Price and divide the condemnation proceeds
in a manner acceptable to Seller and Purchaser.

 

(b)            Casualty.
Seller assumes all risks and liability for damage to or injury occurring to the Property by fire, storm, accident, or any other
casualty or cause until the Closing has been consummated. If any portion of any Property suffers any damage prior to the Closing from
fire or other casualty that exceeds twenty percent (20%) of the Purchase Price allocated to the damaged Property, Purchaser may elect
at or prior to Closing, to (i) terminate this Agreement, in which event the Deposit, if previously paid, shall be returned to Purchaser
and the Seller and Purchaser shall be relieved and discharged of any further liability or obligation under this Agreement, except as
otherwise expressly set forth herein, or (ii) consummate the Closing, in which event all of Seller’s right, title and interest
in and to the proceeds of any insurance covering damage to the improvements on the applicable Property shall be assigned to Purchaser
at Closing (to be applied to restoration pursuant to the terms of the Lease Agreement), and Purchaser shall be entitled to a credit in
the amount of Seller’s deductible at Closing.

 

    17

     

    

 

(c)            Maintenance
of Property and Insurance. From the Effective Date until Closing, Seller shall continue to maintain the Real Property in the
same or similar condition as maintained as of the Effective Date, ordinary wear and tear excepted, and shall continue to maintain its
insurance for the Property in the same or greater amounts, with the same or greater coverage, and subject to the same deductibles as
in existence as of the Effective Date.

 

Section 7.03          Notices.
All notices, demands, designations, certificates, requests, offers, consents, approvals, appointments
and other instruments given pursuant to this Agreement (collectively called “Notices”) shall be in writing and given
by (a) hand delivery, (b) express overnight delivery service by a reputable courier, or certified or registered mail, return
receipt requested, or (d) electronic mail with confirmation from recipient of receipt, and shall be deemed to have been delivered
upon (i) receipt, if hand delivered, (ii) the next Business Day, if delivered by a reputable express overnight delivery service,
(iii) the third Business Day following the day of deposit of such notice with the United States Postal Service, if sent by certified
or registered mail, return receipt requested, or (iv) upon confirmation of receipt of an email so long as the email was delivered
before 5:00 pm Pacific Time. Notices shall be provided to the parties and addresses specified below:

 

	If
    to Seller:	c/o iMedia Brands, Inc.

    6740 Shady Oak
    Road

    Eden Prairie,
    MN 55344

    Attn: Tim Peterman

    Telephone: (952)
    943-6158

    Email: tpeterman@imediabrands.com

     

	With a copy to:
	c/o iMedia Brands, Inc.

    6740 Shady Oak
    Road

    Eden Prairie,
    MN 55344

    Attn: Alex Wasserburger

    Telephone: (952)
    943-6517

    Email: awasserburger@imediabrands.com

     

	With
    a copy to:	Faegre Drinker
    Biddle & Reath LLP

    2200 Wells Fargo
    Center

    90 South 7th
    Street

    Minneapolis, MN
    55402

    Attn: Allen Wheeler

    Telephone: (612)
    766-8282

    Email: allen.wheeler@faegredrinker.com

     

	If
    to Purchaser:	PONTUS NET LEASE
    ADVISORS, LLC

    Attn: Scott Stokas

    875 Prospect Street,
    Suite 303

    La Jolla, CA 92037

    Phone: (858) 345-4544

    Email: sstokas@pontuscapital.com

     

    18

     

    

 

	With
    a copy to:	Foley &
    Lardner LLP

    301 E. Pine Street,
    Suite 1200

    Orlando, Florida
    32801

    Attn: Pamela M.
    Brown, Esq.

    Telephone: (407)244-3271

    Email: pbrown@foley.com

     

or to such other address or such other Person
as either party may from time to time hereafter specify to the other party in a notice delivered in the manner provided above. Whenever
in this Agreement the giving of Notice is required, the giving thereof may be waived in writing at any time by the Person or Persons
entitled to receive such Notice.

 

A copy of any Notice delivered
pursuant to this Section shall also contemporaneously be delivered in the manner herein specified to any mortgagee or assignee of
Purchaser’s interest which shall have duly notified Seller in writing of its name and address.

 

Section 7.04          Assignment.
Purchaser may assign its rights under this Agreement to an affiliate in whole or in part at
any time; provided that no such assignment or transfer shall release the transferring Purchaser from its obligations hereunder.

 

Section 7.05          Brokerage
Commission. Each of the parties represents and warrants to the other that neither party
has dealt with, negotiated through or communicated with any broker in connection with this Transaction except for B. Riley Real Estate
(“Broker”), who shall be paid by Seller pursuant to a separate agreement between Seller and Broker. Each party shall
indemnify, defend and hold harmless the other party from and against any and all claims, loss, costs and expenses, including reasonable
attorneys’ fees, resulting from any claims that may be made against the indemnified party by any broker claiming a commission or
fee by, through or under such indemnifying party. The parties’ respective obligations under this Section 7.05 shall survive
Closing or termination of this Agreement.

 

Section 7.06          Reporting
Requirements. The parties agree to comply with any and all reporting requirements applicable
to the Transaction which are set forth in any law, statute, ordinance, rule, regulation, order or determination of any Governmental Authority,
and further agree upon request, to furnish the other party with evidence of such compliance.

 

Section 7.07          Disclosures.
Except as expressly set forth in Section 7.22 and this Section 7.07 and as required
by law or judicial action, prior to Closing neither Seller nor Purchaser will make any public disclosure of this Agreement or the other
Transaction Documents, the Transaction or the provisions of the Transaction Documents without the prior consent of the other party hereto.
The parties further agree that, notwithstanding any provision contained in this Agreement, any party (and each employee, representative
or other agent of any party) may disclose to any and all Persons, without limitation of any kind, any matter required under the Securities
Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. The foregoing shall not limit Seller from disclosing information
regarding the Transaction contemplated herein and in the Transaction Documents on a strictly confidential basis to contractors, directors,
officers, Affiliates, employees, attorneys, accountants, consultants, prospective lenders, and advisors who are directly involved in
the performances required under this Agreement, investors and potential investors, and except as is necessary to comply with applicable
law, required by court or administrative agency order, or is regarding information already in the public domain.

    19

     

    

 

Section 7.08          Time
is of the Essence. The parties hereto expressly agree that time is of the essence with respect
to this Agreement.

 

Section 7.09          Non-Business
Days. If the Closing Date or the date for delivery of a notice or performance of some other
obligation of a party falls on a Saturday, Sunday or legal holiday in the state in which the Property is located, then the Closing Date
or such notice or performance shall be postponed until the next Business Day.

 

Section 7.10          Waiver
and Amendment. No provision of this Agreement shall be deemed waived or amended except by a
written instrument unambiguously setting forth the matter waived or amended and signed by the party against which enforcement of such
waiver or amendment is sought. Waiver of any matter shall not be deemed a waiver of the same or any other matter on any future occasion.

 

Section 7.11          Limited
Liability.

 

(a)            Purchaser’s
Liability. Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed that
(a) there shall be absolutely no personal liability on the part of any director, officer, manager, member, employee or agent of
Purchaser with respect to any of the terms, covenants and conditions of this Agreement, (b) Seller waives all claims, demands and
causes of action against Purchaser’s directors, officers, managers, members, employees and agents in the event of any breach by
Purchaser of any of the terms, covenants and conditions of this Agreement to be performed by Purchaser, and (c) Seller shall be
limited to those remedies set forth in Section 6.04 in the event of any breach by Purchaser of any of the terms, covenants and conditions
of this Agreement to be performed by Purchaser, such exculpation of liability to be absolute and without any exception whatsoever.

 

(b)            Seller’s
Liability. Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed that
(a) there shall be absolutely no personal liability on the part of any director, officer, manager, member, employee or agent of
Seller and its Affiliates or subsidiaries or other entity which, directly or indirectly, controls, or is controlled by, or is also controlled
by the same entity having a controlling interest in Seller with respect to any of the terms, covenants and conditions of this Agreement,
(b) Purchaser waives all claims, demands and causes of action against the directors, officers, managers, members, employees and
agents of Seller and its Affiliates or subsidiaries or other entity which, directly or indirectly, controls, or is controlled by, or
is also controlled by the same entity having a controlling interest in Seller in the event of any breach by Seller of any of the terms,
covenants and conditions of this Agreement to be performed by Seller, and (c) Purchaser shall be limited to those remedies set forth
in Section 6.02 in the event of any breach by Seller of any of the terms, covenants and conditions of this Agreement to be performed
by Seller, such exculpation of liability to be absolute and without any exception whatsoever.

 

Section 7.12          Headings;
Internal References. The headings of the various sections and exhibits of this Agreement have
been inserted for reference only and shall not to any extent have the effect of modifying the express terms and provisions of this Agreement.
Unless stated to the contrary, any references to any section, subsection, exhibit and the like contained herein are to the respective
section, subsection, exhibit and the like of this Agreement.

 

    20

     

    

 

Section 7.13          Construction
Generally. This is an agreement between parties who are experienced in sophisticated and complex
matters similar to the Transaction and the other Transaction Documents, is entered into by both parties in reliance upon the economic
and legal bargains contained herein and therein, and shall be interpreted and construed in a fair and impartial manner without regard
to such factors as the party which prepared the instrument, the relative bargaining powers of the parties or the domicile of any party.
Seller and Purchaser were each represented by legal counsel competent in advising them of their obligations and liabilities hereunder.

 

Section 7.14          Further
Assurances. Each of the parties agrees, whenever and as often as reasonably requested so to
do by the other party, or the Title Company, to execute, acknowledge, and deliver, or cause to be executed, acknowledged, or delivered,
any and all such further conveyances, assignments, confirmations, satisfactions, releases, instruments, or other documents as may be
necessary, expedient or proper, in order to complete any and all conveyances, transfers, sales and assignments herein provided and to
do any and all other acts and to execute, acknowledge and deliver any and all documents as so reasonably requested in order to carry
out the intent and purpose of this Agreement, in each case pursuant to the terms of this Agreement.

 

Section 7.15          Attorneys’
Fees. In the event of any controversy, claim, dispute, or proceeding between the parties concerning
this Agreement, the prevailing party shall be entitled to recover all of its reasonable attorneys’ fees and other costs, in addition
to any other relief to which it may be entitled.

 

Section 7.16          Entire
Agreement. This Agreement, all other Transaction Documents and all other certificates, instruments
or agreements to be delivered hereunder and thereunder constitute the entire agreement between the parties with respect to the subject
matter hereof, and there are no other representations, warranties or agreements, written or oral, between Seller and Purchaser with respect
to the subject matter of this Agreement. Notwithstanding anything in this Agreement to the contrary, upon the execution and delivery
of this Agreement by Seller and Purchaser, (a) this Agreement shall supersede any previous discussions, letters of intent, agreements
and/or term or commitment letters relating to the Transaction, including without limitation, the Letter of Intent, any and all agreements
related to exclusivity, non-competition, non-solicitation of employees, non-solicitation or pursuit of any business opportunity represented
by the Transaction, or any other term or condition which restricts any business activity of Purchaser or its Affiliates, (b) the
terms and conditions of this Agreement shall control notwithstanding that such terms are inconsistent with or vary from those set forth
in any of the foregoing agreements, and (c) this Agreement may only be amended by a written agreement executed by Purchaser and
Seller. The provisions of this Section 7.16 shall survive the Closing.

 

Section 7.17          Forum
Selection; Jurisdiction; Venue. For purposes of any action or proceeding arising out of this
Agreement, the parties hereto expressly submit to the jurisdiction of all federal and state courts located in the State of California,
County of Los Angeles. Each of Seller and Purchaser consent that it may be served with any process or paper by registered mail or by
personal service within or without the State of California, County of Los Angeles in accordance with applicable law. Furthermore, each
of Seller and Purchaser waive and agree not to assert in any such action, suit or proceeding that it is not personally subject to the
jurisdiction of such courts, that the action, suit or proceeding is brought in an inconvenient forum or that venue of the action, suit
or proceeding is improper.

 

    21

     

    

 

Section 7.18          Severability;
Binding Effect; Governing Law. Each provision hereof shall be separate and independent, and
the breach of any provision by Purchaser or Seller shall not discharge or relieve the other from any of its obligations hereunder. Each
provision hereof shall be valid and shall be enforceable to the extent not prohibited by law. If any provision hereof or the application
thereof to any Person or circumstance shall to any extent be invalid or unenforceable, the remaining provisions hereof, or the application
of such provision to Persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby.
Subject to the provisions of Section 7.04, all provisions contained in this Agreement shall be binding upon, inure to the benefit
of and be enforceable by the successors and assigns of each party hereto, including, without limitation, any United States trustee, any
debtor-in-possession or any trustee appointed from a private panel, in each case to the same extent as if each successor and assign were
named as a party hereto. This Agreement shall be governed by, and construed with, the laws of the State of California, without giving
effect to any state’s conflict of laws principles.

 

Section 7.19          Waiver
of Jury Trial and Certain Damages. THE PARTIES HERETO SHALL AND THEY HEREBY DO KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES
HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT AND/OR ANY CLAIM OR INJURY
OR DAMAGE RELATED THERETO. EACH OF SELLER AND PURCHASER FURTHER WAIVE THE RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL
AND INDIRECT DAMAGES FROM THE OTHER IN ANY ACTION, PROCEEDING OR COUNTERCLAIM WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT AND/OR ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO.

 

Section 7.20          1031
Exchange. Purchaser and Seller agree that any party may elect to structure the conveyance of
the Property as an exchange pursuant to Section 1031 of the Code. If such an exchange is elected by such party (the “Electing
Party”), the Electing Party will assume all costs and expenses, including attorneys’ fees, incurred in connection with
such election to structure the transaction as an exchange in accordance with Section 1031 of the Code. Seller and Purchaser agree
that, at the request of the Electing Party, each will execute such agreements and other documents as may be necessary, in the reasonable
opinion of respective counsel for the parties, to complete and otherwise effectuate any exchange in accordance with Section 1031
of the Code. The Electing Party agrees that it will indemnify and hold the other party(ies) harmless in connection with any actual loss,
cost or damages suffered by such other party concerning or arising out of such exchange or deferred exchange, which indemnification shall
survive the closing hereof. Purchaser and Seller acknowledge and confirm that the terms and provisions of this Section shall apply
to any “reverse exchange” made or undertaken by either party pursuant to I.R.S. Rev. Proc. 2000-37 (or any other term or
provision of the Code or any regulations promulgated thereunder), as well as any other exchange made pursuant to Section 1031 of
the Code.

 

Section 7.21          Exclusivity.
On the Effective Date and through January 7, 2023, Seller shall not initiate, solicit, entertain, negotiate, accept or discuss,
directly or indirectly, any proposal or offer, oral or written, from any prospective sale-leaseback providers or any other person or
party for the purchase, lease, license or occupancy of the Property; provided that this Section 7.21 shall not prohibit Tenant from
securing asset-based financing that will not interfere with the transaction contemplated herein, it being understood that such financing
may include leasehold financing related to Tenant’s interest under the Lease and any of Tenant’s personal property under
the Lease.

 

    22

     

    

 

Section 7.22          Confidentiality.
This Agreement is entered into by the Purchaser and Seller on the condition, and subject to the covenants, that Purchaser shall not disclose
the existence of (i) this Agreement and its terms, (ii) any information contained in the Seller Documents or any other documentation
provided by Seller or Tenant to Purchaser in connection with this Agreement, or (iii) identified by Purchaser as a result of the
Investigations of the Property, to any person, except on a strictly confidential basis to their contractors, directors, officers, Affiliates,
employees, attorneys, accountants, consultants, prospective lenders, and advisors who are directly involved in the performances required
under this Agreement, investors and potential investors, and except as is necessary to comply with applicable law, required by court
or administrative agency order, or is regarding information already in the public domain. The parties shall not make, and shall use their
best efforts to ensure that the foregoing third parties do not make, any public announcement of this Agreement without the prior consent
of Purchaser and Seller, which consent may be withheld by either party in its sole and absolute discretion, unless such public announcement
is necessary to comply with applicable law, required by court or administrative agency order, or is information already in the public
domain.

 

Section 7.23          Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, and all such counterparts shall be deemed to constitute one and the same instrument and may be evidenced by facsimile, PDF
format or similarly-imaged pages.

 

Section 7.24          Exhibits
Incorporated By Reference. All exhibits attached to this Agreement are incorporated herein by
reference.

 

Section 7.25          State
Specific Laws.

 

(a)            Minnesota.
Without limiting the choice of law provision set forth in Section 7.17, the following provisions shall apply to the extent that
the laws of the State of Minnesota govern the interpretation or enforcement of this Agreement with respect to any Property located in
such state, as determined by a court of competent jurisdiction:

 

(i)            Wells.
Seller does not know of any “well” (as defined in Minnesota Statutes § 103I.005, Subd. 21) located about the Minnesota
Property. Seller has delivered to Purchaser the well disclosure statement required pursuant to Minnesota Statutes § 103I.235, Subd.
1(a).

 

(ii)           Individual
Sewer System. There is no “subsurface sewage treatment system” (as defined in Minnesota Statutes § 115.55, Subd. 1(h))
located about the Minnesota Property. Seller has delivered to Purchaser the individual sewage treatment system disclosure statement required
pursuant to Minnesota Statutes § 115.55, Subd. 6.

 

(iii)          Methamphetamine.
To Seller’s knowledge, no methamphetamine production has occurred on the Minnesota Property.

 

    23

     

    

 

(b)            Kentucky.
Without limiting the choice of law provision set forth in Section 7.17, the following provisions shall apply to the extent that
the laws of the Commonwealth of Kentucky govern the interpretation or enforcement of this Agreement with respect to any Property located
in such state, as determined by a court of competent jurisdiction:

 

(i)            None.

 

[Remainder of page intentionally left
blank; signature page(s) to follow]

 

    24

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed and delivered as of the date first set forth above.

 

	 	PURCHASER:
	 	 	 
	 	PONTUS NET LEASE ADVISORS, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Michael
    Press
	 	Name:	Michael Press
	 	Title:	President

  

    S-1

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed and delivered as of the date first set forth above.

 

	 	SELLER:
	 	 	 
	 	EP Properties, LLC, a Minnesota
    limited liability company
	 	 	 
	 	By:	/s/ Tim Peterman
	 	Name:	Tim Peterman
	 	Title:	CEO
	 	 	 
	 	 	 
	 	VVI Fulfillment Center, Inc.,
    a Minnesota corporation
	 	 	 
	 	By:	/s/ Tim Peterman
	 	Name:	Tim Peterman
	 	Title:	CEO

 

    S-2

     

    

 

Schedule A: Defined Terms

Schedule B: Real Property Removal

 

Exhibits:

 

	A:	The Real Property
	A-1:	Depiction of Minnesota Property and Seller Retained
    Parcel
	B:	Intentionally Omitted
	C.	Due Diligence Documents
	D-1.	Form Minnesota Deed
	D-2.	Form of Kentucky Deed
	E:	Non-Foreign Seller Certificate

 

List of Exhibits

    

     

    

 

SCHEDULE A

 

DEFINED TERMS

 

To the extent not expressly
defined in the body of this Agreement, the following terms shall have the following meanings for all purposes of this Agreement:

 

“Additional Title
Objection” has the meaning set forth in Section 2.01(d)(ii).

 

“Affiliate”
or any derivation thereof, means any Person which directly or indirectly controls, is under common control with, or is controlled by
any other Person. For purposes of this definition, “controls”, “under common control with” and “controlled
by” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such Person, whether through ownership of voting securities or otherwise.

 

“Business Day”
means a day on which banks located in Los Angeles, California are not required or authorized to remain closed.

 

“Closing”
shall have the meaning set forth in Section 3.01.

 

“Closing Date”
means the date specified as the closing date in Section 3.01.

 

“Due Diligence Expenses”
has the meaning set forth in Section 1.05.

 

“Effective Date”
has the meaning set forth in the introductory paragraph of this Agreement.

 

“Environmental Liens”
means all Liens (excluding Permitted Encumbrances) imposed on the Property pursuant to any Hazardous Materials Law, except for such deed
restrictions and institutional controls utilized in connection with any required remediation of Hazardous Materials at the Property.

 

“Governmental Authority”
means the United States of America, any state or other political subdivision thereof, any other entity exercising executive, judicial,
regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled (through
stock or capital ownership or otherwise) by any of the foregoing.

 

“Hazardous Materials”
includes: (a) oil, petroleum products, flammable substances, explosives, radioactive materials, hazardous wastes or substances,
toxic wastes or substances or any other materials, contaminants or pollutants defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials”, “toxic substances”, “contaminants”,
 “pollutants”, or words of similar import under any applicable local, state or federal law or under the regulations adopted,
orders issued, or publications promulgated pursuant thereto, including, but not limited to: (i) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; (ii) the Hazardous Materials
Transportation Act, as amended, 49 U.S.C. §1801, et seq.; (iii) the Resource Conservation and Recovery Act, as amended,
42 U.S.C. §6901, et seq.; and (iv) regulations adopted and publications promulgated pursuant to the aforesaid laws;
and (b) asbestos in any form which is or could become friable, urea formaldehyde foam insulation, and polychlorinated biphenyls.

 

SCHEDULE A

    

     

    

 

“Hazardous Materials
Laws” includes any and all federal, state and local laws, rules, regulations, statutes, and requirements pertaining or relating
to the environmental condition of the Property or to Hazardous Materials.

 

“Insolvency Event”
means (a) a Person’s (i) failure to generally pay its debts as such debts become due; (ii) admitting in writing
its inability to pay its debts generally; or (iii) making a general assignment for the benefit of creditors; (b) any proceeding
being instituted by or against any Person (i) seeking to adjudicate it a bankrupt or insolvent; (ii) seeking liquidation, winding
up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency, or reorganization or relief of debtors; or (iii) seeking the entry of an order for relief or the appointment of a receiver,
trustee, or other similar official for it or for any substantial part of its property, and in the case of any such proceeding instituted
against any such Person, either such proceeding shall remain undismissed for a period of 120 days or any of the actions sought in
such proceeding shall occur; or (c) any Person taking any corporate or other formal action to authorize any of the actions set forth
above in this definition.

 

“Inspection Period”
means the time period commencing on the Effective Date and ending at 5:00 Pacific Time on the fortieth (40th) day after the Effective
Date.

 

“Inspections”
has the meaning set forth in Section 2.03.

 

“Lease Agreement”
has the meaning set forth in Section 1.03.

 

“Lease Proof of
Insurance” has the meaning set forth in Section 5.01.

 

“Legal Requirements”
shall mean “all applicable federal, state, county, municipal, local, or other laws, statutes, codes, ordinances, rules, and regulations.”.

 

“Letter of Intent”
means that certain Letter of Intent dated November 8, 2022 between Purchaser and iMedia Brands, Inc., with respect to the
Transaction, and any amendments or supplements thereto.

 

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority
or other security agreement or preferential arrangement of any kind or nature whatsoever (including without limitation, any conditional
sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and
the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction).

 

“Losses”
means any and all claims, lawsuits, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations,
debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, interest, charges, fees, expenses, judgments, decrees,
awards, amounts paid in settlement and damages of whatever kind or nature (including, without limitation, attorneys’ fees, court
costs and costs incurred in the investigation, defense and settlement of claims).

 

“Memoranda of Lease”
has the meaning set forth in Section 5.01(a)(iii).

 

SCHEDULE A

    

     

    

 

“Net Proceeds”
means the Purchase Price less any costs, expenses, prorations, Due Diligence Expenses, and other fees and expenses required to be paid
by Seller in connection with the Transaction.

 

“Non-Foreign Seller
Certificate” has the meaning set forth in Section 5.01(a)(vi).

 

“Notices”
has the meaning set forth in Section 7.03.

 

“Notice to Close”
means Purchaser’s written notice to Seller that the Inspection Period has ended, Purchaser has concluded the Property is suitable,
the Purchaser is paying the Deposit within three (3) business days following its delivery of the Notice to Close and Purchaser is
affirmatively moving to Closing as provided in this Agreement.

 

“OFAC List”
means the list of specially designated nationals and blocked Persons subject to financial sanctions that is maintained by the U.S. Treasury
Department, Office of Foreign Assets Control and any other similar list maintained by the U.S. Treasury Department, Office of Foreign
Assets Control pursuant to any Legal Requirements, including, without limitation, trade embargo, economic sanctions, or other prohibitions
imposed by Executive Order of the President of the United States. The OFAC List currently is accessible through the internet website
www.treas.gov/ofac/t11sdn.pdf.

 

“Permitted Encumbrances”
means (a) the lien of any real estate taxes not yet due and payable; (b) those recorded easements, restrictions, liens and
encumbrances and survey matters that have been determined to be Permitted Encumbrances pursuant to Section 2.01(d); and (c) the
Lease Agreement.

 

“Person”
means any natural person, firm, corporation, partnership, limited liability company, other entity, state, political subdivision of any
state, the United States of America, any agency or instrumentality of the United States of America, any other public body or other organization
or association.

 

“Property”
has the meaning set forth in Section 1.01.

 

“Purchase Price”
means the amount specified in Section 1.02.

 

“Purchaser Default”
has the meaning set forth in Section 6.03.

 

“Regulated Substances”
means “petroleum” and “petroleum-based substances” or any similar terms described or defined in any Hazardous
Materials Laws and any applicable federal, state, county or local laws applicable to or regulating USTs.

 

“Reports”
has the meaning set forth in Section 2.03.

 

“Seller Default”
has the meaning set forth in Section 6.01.

 

“Seller Documents”
has the meaning set forth in Section 2.02.

 

“Seller Entity”
or “Seller Entities” means individually or collectively, as the context may require, Seller, Tenant and any Affiliate
of Seller or Tenant.

 

SCHEDULE A

    

     

    

 

“Seller’s
Retained Property” has the meaning set forth in Section 1.01.

 

“Tenant”
means iMedia Brands, Inc.

 

“Title Commitment”
has the meaning set forth in Section 2.01(a).

 

“Title Company”
shall mean First American Title Insurance Company (New York office) located at 666 Third Avenue, 5th Floor, New York, New York 10017,
Attention: Jed Levine.

 

“Title Objection”
has the meaning set forth in Section 2.01(d)(i).

 

“Title Policy”
has the meaning set forth in Section 2.01(a).

 

“Transaction”
has the meaning set forth in Section 1.01.

 

“Transaction Documents”
means the Lease Agreement, the Memoranda of Lease, the Deed, the Non-Foreign Seller Certificate, any and all documents referenced herein
and therein, and such other documents, payments, instruments and certificates as are reasonably required by the Title Company.

 

“UST Regulations”
means 40 C.F.R. § 298 Subpart H – Financial Responsibility, or any equivalent state law, with respect to petroleum
underground storage tanks (as such term is defined under 40 C.F.R. § 290.12 or any equivalent state law).

 

“USTs”
means any underground storage tank systems that are regulated by UST Regulations.

 

SCHEDULE A

    

     

    

 

EXHIBIT A

 

THE REAL PROPERTY

 

1.            Kentucky
Owned Property

 

BEING LOT 1 OF "SUBDIVISION REVISION OF
LOTS 1 & 2 OF THE LEON TARTER & GARLAND REEVES PROPERTY SUBDIVISION" AS SHOWN OF RECORD IN PLAT BOOK 42, PAGES
27-29, IN THE WARREN COUNTY CLERK'S OFFICE, WARREN COUNTY, KENTUCKY. 

  

BEING A PORTION OF THE SAME PROPERTY CONVEYED TO VVI FULFILLMENT CENTER, INC., A MINNESOTA CORPORATION FROM DSC VENTURE 100, A KENTUCKY
PARTNERSHIP, BY DEED DATED DECEMBER 11, 1996 AND OF RECORD IN DEED BOOK 736, PAGE 262, IN THE WARREN COUNTY CLERK'S OFFICE; AND,
BEING A PORTION OF THE SAME PROPERTY CONVEYED TO VVI FULFILLMENT CENTER, INC., A MINNESOTA CORPORATION FROM LEON TARTER AND GARLAND
REEVES, A KENTUCKY PARTNERSHIP, AND RHEA K REEVES, WIFE OF GARLAND REEVES, BY DEED DATED DECEMBER 11, 1996 AND OF RECORD IN DEED BOOK
736, PAGE 258, IN THE WARREN COUNTY CLERK'S OFFICE.

 

2.            Kentucky
Leased Property

 

BEING LOT 1-1 OF "SUBDIVISION REVISION OF
LOTS 1 & 2 OF THE LEON TARTER & GARLAND REEVES PROPERTY SUBDIVISION" AS SHOWN OF RECORD IN PLAT BOOK 42, PAGES
27-29, IN THE WARREN COUNTY CLERK'S OFFICE, WARREN COUNTY, KENTUCKY. 

  

BEING THE SAME PROPERTY CONVEYED TO WARREN COUNTY, KENTUCKY FROM VVI FULFILLMENT CENTER, INC., A MINNESOTA CORPORATION BY DEED DATED
DECEMBER 1, 2014, AND OF RECORD IN DEED BOOK 1088, PAGE 37, IN THE WARREN COUNTY CLERK’S OFFICE.

 

3.            Minnesota
Property

 

Real property in the City of Eden Prairie, County of Hennepin, State
of Minnesota, described as follows:

 

Lot 1, Block 1, Shady Oak Industrial Park Third
Addition, according to the recorded plat thereof, Hennepin County Minnesota; except that part of Lot 1, Block 1, Shady Oak Industrial
Park Third Addition which lies westerly of Line 1 described below:

 

Line 1. Commencing at the southeast corner of
said Lot 1, Block 1, SHADY OAK INDUSTRIAL PARK THIRD ADDITION; thence westerly along the south line of said Lot 1 on an azimuth of 273
degrees 14 minutes 16 seconds for 254.31 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 345 degrees
06 minutes 52 seconds for 190.55 feet; thence on an azimuth of 349 degrees 49 minutes 38 seconds for 509.12 feet to a point hereinafter
referred to as Point "A"; thence on an azimuth of 350 degrees 37 minutes 54 seconds for 133.00 feet to the northwest line of
said Lot 1 and there terminating.

 

(abstract property)

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