Document:

Exhibit 10.1

 

CERTAIN INFORMATION IDENTIFIED BY “[REDACTED]” HAS BEEN
EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

 

SECURITIES PURCHASE AGREEMENT

 

SECURITIES PURCHASE AGREEMENT
(this “Agreement”), dated as of December 3, 2021 by and between Medicine Man Technologies, Inc., d/b/a Schwazze, a
Nevada corporation (the “Company”), Double Brow, LLC, a Colorado limited liability company (“Double Brow”),
Mission Holding, LLC, a Colorado limited liability company (“Mission”), SCG Holding, LLC, a Colorado limited liability
company (“SCG”), Schwazze Colorado LLC, a Colorado limited liability company (“Schwazze Colorado”),
Schwazze Biosciences, LLC, a Colorado limited liability company (“Schwazze Bio”), SBUD LLC, a Colorado limited liability
company (“SBUD”), Medicine Man Consulting, Inc., a Colorado corporation (“Consulting”), Two J’s
LLC d/b/a The Big Tomato, a Colorado limited liability company (“Two J’s”), Mesa Organics Ltd. d/b/a Star Buds/Purplebee’s,
a Colorado limited liability company (“Mesa I”), Mesa Organics II Ltd, a Colorado limited liability company (“Mesa
II”), Mesa Organics III Ltd, a Colorado limited liability company (“Mesa III”), Mesa Organics IV Ltd, a Colorado
limited liability company (“Mesa IV”), Schwazze IP Holdco LLC, a Colorado limited liability company (“Schwazze
IP”), MIH Manager LLC, a Colorado limited liability company (“MIH”), Emerald Fields Merger Sub, LLC, a Colorado
limited liability company (“Emerald Fields”), PBS Holdco LLC, d/b/a Star Buds/Purplebee’s, a Colorado limited
liability company (“PBS Holdco”), Nuevo Holding, LLC, a New Mexico limited liability company (“Nuevo Holding”),
Nuevo Elemental Holding, LLC, a New Mexico limited liability company (“Nuevo Elemental”), and Schwazze New Mexico,
LLC, a New Mexico limited liability company (“Schwazze New Mexico” and, collectively with Double Brow, Mission, SCG,
Schwazze Colorado, Schwazze Bio, SBUD, Consulting, Two J’s, Mesa I, Mesa II, Mesa III, Mesa IV, Schwazze IP, MIH, Emerald Fields,
PBS Holdco, Nuevo Holding, and Nuevo Elemental, the “Guarantors”) and each of the investors listed on the signature
pages hereto (each individually a “Buyer” or “Holder” and collectively, the “Buyers”
or the “Holders”).

 

WHEREAS:

 

A.       The
Company and the Buyers, severally and not jointly, are executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, or any similar federal statute, and the rules
and regulations promulgated by the SEC (as defined below) thereunder (the “1933 Act” or the “Securities Act”),
and Rule 506(b) of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission
(the “SEC”) under the 1933 Act.

 

B.       The
Company has authorized a new series of 13% Senior Secured Convertible Notes due five years after issuance in 2026 (the “Notes”)
pursuant to the Indenture, in the form attached hereto as Exhibit A, to be dated as of the Closing (as defined below) (the “Indenture”)
by and among the Company, the Guarantors, Ankura Trust Company, LLC, as trustee (the “Trustee”), and Chicago Atlantic
Admin, LLC, as collateral agent (the “Collateral Agent”), which Notes will be convertible into shares of the Company’s
common stock, par value $0.001 per share (together with any capital stock into which such common stock shall have been changed or any
share capital resulting from a reclassification of such common stock, the “Common Stock”) (such underlying shares of
Common Stock issuable pursuant to the terms of the Notes, including upon conversion, redemption, payment of interest or otherwise, collectively,
the “Underlying Shares,” and such Underlying Shares together with the Notes, collectively, the “Securities”).

 

C.       The
Buyers, severally and not jointly, desire to purchase and the Company desires to issue and sell, upon the terms and conditions set forth
in this Agreement, Notes in the aggregate principal amount of $95,000,000.00 (“Principal Amount”), for a purchase price
reflecting a 2% original issue discount.

 

D.       At
the Closing (as defined below), the Company and the Guarantors will execute and deliver (i) a Security Agreement among the Company, the
Guarantors and the Collateral Agent, in the form attached hereto as Exhibit B (the “Security Agreement”), pursuant
to which the Company and each Guarantor will agree to grant a security interest to the Holders in the assets identified therein, and (ii)
an Intercreditor Agreement among the Company, the Guarantors, the Collateral Agent, GGG Partners LLC (as collateral agent for the Credit
Agreement Secured Parties (as defined therein)), Colorado Health Consultants, LLC, StarBuds Aurora, LLC, SB Arapahoe, LLC, StarBuds Commerce
City, LLC, StarBuds Pueblo, LLC, StarBuds Alameda, LLC, Citi-MED, LLC, StarBuds Louisville, LLC, KEW LLC, Lucky Ticket, LLC, StarBuds
Niwot, LLC, LM MJC LLC, Mountain View 44th LLC and Naser Joudeh, as collateral agent for the Star Buds Seller Secured Parties (as defined
therein).

 

 

 

    	 	1	 

     

    

 

NOW, THEREFORE, the
Company and the Buyers hereby agree as follows:

 

1.              
PURCHASE AND SALE OF SHARES.

 

(a)            
Purchase of Notes. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6
below at the Closing, the Company shall issue and sell to each Buyer severally, but not jointly, and each Buyer, severally and not jointly,
agrees to purchase from the Company on the Closing, a Note in the original principal amount as is set forth under “Original Principal
Amount of Notes” on such Buyer’s signature page hereto as executed by such Buyer on the terms set forth herein.

 

(b)            
Closing. The date of the closing shall be on such date and time as is mutually agreed to by the Company and the Buyers after
notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 5 and 6 below (the
“Closing”), and the Closing shall be undertaken remotely by electronic transfer of Closing documentation.

 

(c)            
Purchase Price. The purchase price for the Notes to be purchased by each Buyer (the “Purchase Price”)
shall be 98% of the amount set forth under “Original Principal Amount of Notes” on such Buyer’s signature page hereto.

 

(d)            
Form of Payment. On or before the Closing, (i) each Buyer shall pay its aggregate Purchase Price to the Company for the
Note to be issued and sold to such Buyer at the Closing by wire transfer of immediately available funds in accordance with the Company’s
written wire instructions; and (ii) the Company shall deliver or cause to be delivered to each Buyer such Buyer’s Note duly executed
on behalf of the Company.

 

2.              
BUYERS’ REPRESENTATIONS AND WARRANTIES. Each Buyer, for itself and for no other Buyer, represents and warrants to
the Company that, as of the date hereof and as of the Closing (unless as of a specific date therein, in which case they shall be accurate
as of such date):

 

(a)            
No Public Sale or Distribution. The Buyer is (i) acquiring the Note, and (ii) when issued in accordance with the terms
of the Note, will acquire the Underlying Shares, in the ordinary course of its business for its own account and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933
Act; provided, however, that by making the representations herein, except as otherwise set forth herein or the other Transaction Documents
(as defined in Section 3(b)), the Buyer does not agree to hold any of the Securities for any minimum or other specific term
and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption
under the 1933 Act. The Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute
any of the Securities. As used herein, “Person” means an individual, a limited liability company, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department
or agency thereof.

 

(b)            
Buyer Status and Experience. The Buyer is, and on each date on which the Buyer acquires any Underlying Shares, it will be,
an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (“Accredited Investor”).
The Buyer, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial
matters so as to be capable of evaluating the merits and risks of the investment in the Securities, and has so evaluated the merits and
risks of such investment. The Buyer is able to bear the economic risk of an investment in the Securities and, at the present time, is
able to afford a complete loss of such investment.

 

(c)            
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance on specific
exemptions from the registration requirements of the United States federal and state securities laws and that the Company is relying in
part upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the
Buyer to acquire the Securities.

 

 

 

    	 	2	 

     

    

 

(d)            
Information. The Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances
and operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such
Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company and receive answers from the Company
concerning the terms and conditions of the offering of the Securities, the merits and risks of investing in the Securities and the business,
finances and operation of the Company. Neither such inquiries nor any other due diligence investigations conducted by such Buyer or its
advisors, if any, or its representatives shall modify, amend or affect such Buyer's right to rely on the Company's representations and
warranties contained herein. Such Buyer understands that its investment in the Securities involves a high degree of risk, including the
risks outlined in the Company’s filings with the SEC. Such Buyer has sought such accounting, legal and tax advice as it has considered
necessary to make an informed investment decision with respect to its acquisition of the Securities. The Buyer acknowledges and agrees
that neither the Company, any Guarantor nor any other Person has made or makes any other express or implied representation or warranty,
either written or oral, on behalf of the Company or its Subsidiaries except for the representations and warranties contained in Section
3 of this Agreement and in Article IV of the Security Agreement.

 

(e)            
No Governmental Review. The Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the
investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)             
Transfer or Resale. The Buyer understands that: (i) the Securities have not been and are not being registered under the
1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) the Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel, in a form reasonably
acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration, or (C) the Buyer provides the Company with reasonable assurance that such Securities
can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act, as amended (or a successor
rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made
only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances
in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933
Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii)
except as otherwise provided herein, neither the Company nor any other Person is under any obligation to register the Securities under
the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. Notwithstanding the
foregoing, the Securities may be pledged in connection with a bona fide margin account with a FINRA registered broker/dealer or other
loan or financing arrangement with an Accredited Investor secured by the Securities and such pledge of Securities shall not be deemed
to be a transfer, sale or assignment of the Securities hereunder, and if the Buyer effects such a pledge of Securities it shall not be
required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any
other Transaction Document, including this Section 2(f).

 

(g)            
Legends. The Buyer understands that the Securities are “restricted securities” under applicable federal and
state securities laws and that certificates or other instruments representing Securities, except as set forth in the Indenture, shall
bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such certificates
or other instruments):

 

[NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN] [THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY
ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE
144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A FINRA REGISTERED BROKER/DEALER OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

 

    	 	3	 

     

    

 

[THE SECURITIES INTO WHICH THESE SECURITIES
ARE CONVERTIBLE] [THE SECURITIES REPRESENTED BY THIS CERTIFICATE] ARE SUBJECT TO THE TERMS AND PROVISIONS OF (A) THE ARTICLES OF INCORPORATION
OF THE CORPORATION, AS AMENDED FROM TIME TO TIME, INCLUDING, WITHOUT LIMITATION, THE CERTIFICATES OF DESIGNATION RELATING TO ALL SERIES
OF PREFERRED STOCK, AND THE RELATIVE RIGHTS, PREFERENCES, RESTRICTIONS, DESIGNATIONS, QUALIFICATIONS AND PRIVILEGES SET FORTH THEREIN
AND IMPOSED THEREON AND UPON THE HOLDERS THEREOF, AND (B) THE BYLAWS OF THE CORPORATION, AS AMENDED FROM TIME TO TIME, TO ALL OF WHICH
TERMS AND PROVISIONS THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE HEREOF, ASSENTS.]

 

COPIES OF SUCH DOCUMENTS ARE ON FILE AT THE
PRINCIPAL OFFICE OF THE COMPANY AND ARE MADE A PART HEREOF AS THOUGH FULLY SET FORTH ON THIS CERTIFICATE.

 

(h)            
Validity; Enforcement. The Buyer is either an individual or an entity duly incorporated or formed, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited
liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. This Agreement and each other Transaction Document to which the Buyer
is a party have been duly and validly authorized, executed and delivered on behalf of the Buyer and constitutes the legal, valid and binding
obligations of the Buyer enforceable against the Buyer in accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(i)             
No Conflicts. The execution, delivery and performance by the Buyer of this Agreement and each other Transaction Document
to which the Buyer is a party and the consummation by the Buyer of the transactions contemplated hereby and thereby will not (i) result
in a violation of the organizational documents of the Buyer or (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the Buyer is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws) applicable to the Buyer, except in the case of clauses (ii) and
(iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of the Buyer to perform its obligations hereunder.

 

(j)             
Residency. The Buyer is a resident of the jurisdiction specified on such Buyer’s signature page hereto.

 

(k)            
No Conflicts with Sanctions Laws. Neither the Buyer nor any director, officer, employee, agent, affiliate or other
person associated with or acting on behalf of the Buyer is, or is directly or indirectly owned or controlled by, a Person that is currently
the subject or the target of any sanctions administered or enforced by the U.S. government (including the Office of Foreign Assets Control
of the U.S. Department of the Treasury or the U.S. Departments of State or Commerce, and including the designation as a “Specially
Designated National” or on the “Sectoral Sanctions Identifications List” (collectively “Blocked Persons”))
or the United Nations Security Council, the European Union, Her Majesty’s Treasury or any other relevant sanctions authority (collectively,
“Sanctions Laws”); neither the Buyer, nor any director, officer, employee, agent, affiliate or other person associated
with or acting on behalf of the Buyer is located, organized or resident in a country or territory that is the subject or target of a comprehensive
embargo or Sanctions Laws prohibiting trade with the country or territory, including Crimea, Cuba, Iran, North Korea, Sudan and Syria
(each, a “Sanctioned Country”); neither the Buyer nor any director, officer, employee, agent, affiliate or other person
associated with or acting on behalf of the Buyer, acting in any capacity in connection with the operations of the Buyer, conducts any
business with or for the benefit of any Blocked Person or engages in making or receiving any contribution of funds, goods or services
to, from or for the benefit of any Blocked Person, or deals in, or otherwise engages in any transaction relating to, any property or interests
in property blocked or subject to blocking pursuant to any applicable Sanctions Laws. No action of the Buyer in connection with the
execution, delivery and performance of this Agreement and the other Transaction Documents or the consummation of any other transaction
contemplated hereby or by the other Transaction Documents or the fulfillment of the terms hereof or thereof will result in a violation
by any Person of Sanctions Laws. For the past five years, the Buyer has not knowingly engaged in and is not now knowingly engaged in any
dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions
Laws or with any Sanctioned Country.

 

(l)             
IRS Tax Documents. The Buyer is delivering, contemporaneously with the execution of this Agreement either an IRS Form W-9
or the applicable IRS Form W-8.

 

 

 

    	 	4	 

     

    

 

(m)          
No Disqualification Events. The Buyer is not, and if the Buyer is an entity, none of its directors, executive officers,
general partners, managers, managing members or beneficial owners of 20% of the Buyer’s outstanding voting equity securities, calculated
on the basis of voting power, is, and on each date on which the Buyer acquires any Underlying Shares, none of them will be, subject to
any “bad actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification
Event”), except for a Disqualification Event (i) contemplated by Rule 506(d)(2) under the Securities Act, and (ii) a description
of which has been furnished in writing to the Company before the date hereof.

 

(n)            
No Marijuana Bad Actors. The Buyer is not, and on each date on which the Buyer acquires any Underlying Shares, the Buyer
will not be “Bad Actor” as defined in Code of Colorado Regulations, 1 CCR 212-3.

 

3.              
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company and the Guarantors,
jointly and severally, represent and warrant to each of the Buyers that, as of the date hereof and as of the Closing:

 

(a)             Organization
and Qualification. The Company and each of its “Subsidiaries” (which for purposes of this Agreement means any
entity in which the Company, directly or indirectly, owns a majority of the voting securities or similar interests), are entities
duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the
requisite power and authorization to own their properties and to carry on their business as now being conducted and as presently
proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and
is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes
such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably
be expected to have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any
fact, occurrence, circumstance, event or change that, individually or in the aggregate, has had, or would reasonably be expected to
have, a material adverse effect on the business, properties, assets, liabilities, operations, results of operations, or condition
(financial or otherwise) of the Company and its Subsidiaries taken as a whole, or on the transactions contemplated hereby or by the
other Transaction Documents or by the agreements and instruments to be entered into in connection herewith or therewith, or on the
authority or ability of the Company to perform any of its obligations under any of the Transaction Documents. The Company has no
Subsidiaries except as set forth in Schedule 3(a). The outstanding shares of capital stock of each of the Subsidiaries have
been duly authorized and validly issued, are fully paid and non-assessable and, except as set forth in Schedule 3(a), are
owned by the Company or another Subsidiary, if any, free and clear of all liens, preemptive or similar rights, mortgages, defects,
claims, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively,
“Liens”) and equities and claims; and no options, warrants or other rights to purchase, agreements or other
obligations to issue or other rights to convert any obligations into shares of capital stock or ownership interests in the
Subsidiaries are outstanding.

 

(b)            
Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement, the Indenture, the Security Agreement, the Intercreditor Agreement(s), and each of the other agreements
entered into by the parties hereto and the Guarantors in connection with the transactions contemplated by this Agreement (collectively,
the “Transaction Documents”) and to issue the Securities in accordance with the terms hereof and thereof. Each Guarantor
has the requisite power and authority to enter into and perform its obligations under the Transaction Documents to which it is a party.
The execution and delivery of this Agreement and the other Transaction Documents by the Company and each Guarantor, and the consummation
by the Company and the Guarantors of the transactions contemplated hereby and thereby have been duly authorized by the Board of Directors
of the Company and each Guarantor, and other than (i) as set forth in Schedule 3(b), (ii) a Form D with the SEC and any other filings
as may be required by any state securities agencies, and (iii) the 8-K Filing (as defined below) (collectively, the “Required
Filings and Approvals”), no filing, consent or authorization is required by the Company, any of the Guarantors, their respective
Board of Directors or their respective stockholders for the execution and delivery of this Agreement and the other Transaction Documents
and consummation by the Company and the Guarantors of the transactions contemplated hereby and thereby. This Agreement and the other Transaction
Documents have been duly executed and delivered by the Company and the Guarantors, and, when duly authenticated by the Trustee in accordance
with the terms of the Indenture, will constitute the legal, valid and binding obligations of the Company and the Guarantors, enforceable
against the Company and each of the Guarantors in accordance with their respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. Except as set forth in Schedule 3(b)
there are no stockholder agreements, voting agreements, or other similar arrangements with respect to the Company’s capital stock
to which the Company is a party or, to the actual knowledge after reasonable inquiry of the Company’s chief executive officer, chief
financial officer and general counsel, but without any obligation to conduct investigation of anyone outside of the Company or its Subsidiaries
(collectively, the “Company’s Knowledge”), between or among any of the Company’s stockholders.

 

 

 

    	 	5	 

     

    

 

(c)            
Issuance of Securities. The issuance of the Securities is duly authorized and, upon issuance in accordance with the terms
of the Transaction Documents, the Securities shall be validly issued and free from all preemptive or similar rights (except for those
which have been validly waived prior to the date hereof), taxes, liens and charges and other encumbrances with respect to the issue thereof.
As of the Closing, the Company shall have reserved from its duly authorized capital stock not less than 100% of the sum of the maximum
number of Underlying Shares issuable upon conversion of the Notes (assuming for purposes hereof that (x) the Notes are convertible at
the Conversion Price (as defined in the Notes) as of the Closing and (y) any such conversion shall not take into account any limitations
on the conversion of the Notes set forth in the Notes). Upon issuance in accordance with the Notes and after the making and receipt of
the Required Filings and Approvals, the Underlying Shares, respectively, when issued, will be validly issued, fully paid and nonassessable
and free from all preemptive or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights
accorded to a holder of Common Stock. Assuming the accuracy of each of the representations and warranties set forth in Section 2,
the offer and issuance by the Company of the Securities is exempt from registration under the 1933 Act.

 

(d)            
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the Guarantors
and the consummation by the Company and the Guarantors of the transactions contemplated hereby and thereby (including the issuance of
the Notes and the reservation for issuance and issuance of Underlying Shares) will not (i) result in a violation of the Articles of Incorporation
(as defined below) or Bylaws (as defined below) or other organizational documents of the Company or any of its Subsidiaries, any capital
stock of the Company or any of its Subsidiaries or bylaws of the Company or any of its Subsidiaries or (ii) except as set forth in Schedule
3(d), conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any
respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which the Company or any of its Subsidiaries is a party, other than conflicts or defaults that would not reasonably be expected to
have a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign,
federal and state securities laws and regulations and the rules and regulations of the OTCQX market (the “Principal Market”)
and including all applicable foreign, federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries
or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, assuming, with respect to subsections
(ii) and (iii), the making and receipt of the Required Filings and Approvals.

 

(e)            
Consents. Other than the Required Filings and Approvals, neither the Company nor any Guarantor is required to obtain any
consent from, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or
self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated
by the Transaction Documents, in each case, in accordance with the terms hereof or thereof. Other than the Required Filings and Approvals,
all consents, authorizations, orders, filings and registrations which the Company or any of the Guarantors is required to obtain pursuant
to the preceding sentence have been obtained or effected on or prior to the Closing (or in the case of filings detailed above, will be
made timely after the Closing), and the Company and the Guarantors are unaware of any facts or circumstances which might prevent the Company
or any of the Guarantors from obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents.
The Company is not in violation of the listing requirements of the Principal Market and has no knowledge of any facts or circumstances
which would reasonably lead to the suspension of quotation of the Common Stock on the Principal Market in the foreseeable future. The
issuance by the Company of the Securities shall not have the effect of suspending of quotation of the Common Stock on the Principal Market.

 

(f)             
Acknowledgment Regarding Buyers’ Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that, except as set forth in Schedule 3(f), each Buyer is not (i) an officer or director of the Company
or any of its Subsidiaries, (ii) an “affiliate” of the Company or any of its Subsidiaries (as defined in Rule 144), if any,
or (iii) to the Company’s Knowledge, a “beneficial owner” of more than 10% of the Common Stock (as defined for purposes
of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)). The Company further acknowledges
that, except as set forth in Schedule 3(f), each Buyer is not acting as a financial advisor or fiduciary of the Company or any
of its Subsidiaries (or in any similar capacity), if any, with respect to the Transaction Documents and the transactions contemplated
hereby and thereby, and any advice given by the Buyers or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to the Buyers’ purchase of the Securities. The Company
further represents to the Buyers that the Company’s decision to enter into the Transaction Documents has been based solely on the
independent evaluation by the Company and its representatives.

 

 

 

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(g)            
No General Solicitation; Placement Agent Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor
any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment of any placement
agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by any Buyer or its investment
advisor) relating to or arising out of the transactions contemplated hereby, including placement agent fees payable to the Benchmark Company
LLC, as placement agent (the “Placement Agent”), in connection with the sale of the Securities. The fees and expenses
of the Placement Agent to be paid by the Company or any of its Subsidiaries are as set forth in Schedule 3(g). The Company shall
pay, and hold each Buyer harmless against, any liability, loss or expense (including attorney's fees and out-of-pocket expenses) arising
in connection with any such claim. The Company acknowledges that it has engaged the Placement Agent in connection with the sale of the
Securities. Other than the Placement Agent, neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent
in connection with the offer or sale of the Securities.

 

(h)            
No Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on
their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would require registration of the issuance of any of the Securities under the 1933 Act, whether through integration
with prior offerings or otherwise, or caused this offering of the Securities to require approval of stockholders of the Company for purposes
of the 1933 Act or under any applicable stockholder approval provisions, including under the rules and regulations of any exchange or
automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company,
its Subsidiaries, any of their affiliates nor any Person acting on their behalf will take any action or steps that would require registration
of the issuance of any of the Securities under the 1933 Act.

 

(i)             
Application of Takeover Protections; Rights Agreement. The Company and its Board of Directors have taken all necessary action,
if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including
any distribution under a rights agreement) or other similar anti-takeover provision under the Articles of Incorporation, Bylaws or other
organizational documents or the laws of the jurisdiction of its formation which is or could become applicable to the Buyers as a result
of the transactions contemplated by this Agreement, including the Company’s issuance of the Securities and the Buyers’ ownership
of the Securities. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any
stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock or a change
in control of the Company or any of its Subsidiaries.

 

(j)             
SEC Documents; Financial Statements. Except as disclosed in Schedule 3(j), during the two years prior to the
date hereof, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof or prior to the Closing,
and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein
being hereinafter referred to as the “SEC Documents”). The Company has delivered to each Buyer or its representatives,
upon request, true, correct and complete copies of the SEC Documents not available on the EDGAR system. As of their respective filing
dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act applicable to the Company and the rules
and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were
filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As
of their respective filing dates, the financial statements of the Company included in the SEC Documents (the “Financial Statements”)
complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”),
consistently applied during the periods involved (except in the case of unaudited interim statements, to the extent they may exclude footnotes
or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company and its Subsidiaries,
as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments which will not be material, either individually or in the aggregate). The Company is
not currently contemplating to amend or restate any of the Financial Statements, nor is the Company currently aware of facts or circumstances
which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financial Statements
to be in material compliance with GAAP and the rules and regulations of the SEC. The Company has not been informed by its independent
accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company
to amend or restate any of the Financial Statements.

 

 

 

    	 	7	 

     

    

 

(k)            
Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in
a Form 10-K, there has been no Material Adverse Effect. Except as disclosed in Schedule 3(k), since the date of the Company’s most
recent audited financial statements contained in a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared or paid
any dividends, (ii) sold any assets, individually or in the aggregate, in excess of $100,000 outside of the ordinary course of business
or (iii) had capital expenditures, individually or in the aggregate, in excess of $100,000. Neither the Company nor any of its Subsidiaries
has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership,
liquidation or winding up, nor to the Company’s Knowledge does the Company or any Subsidiary believe that any of their respective
creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor
to do so. The Company and its Subsidiaries as a whole are not, as of the date hereof, and after giving effect to the transactions contemplated
hereby to occur at the Closing, will not be Insolvent (as defined below). For purposes of this Section 3(k), “Insolvent”
means, with respect to any Person, (w) the present fair saleable value of such Person’s assets is less than the amount required
to pay such Person’s total Indebtedness (as defined in Section 3(q)), (x) such Person is unable to pay its debts and
liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (y) such Person intends
to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (z) such Person has unreasonably
small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.

 

(l)             
No Undisclosed Events, Liabilities, Developments or Circumstances. Since the date of the Company’s most recent audited
financial statements contained in a Form 10-K, no event, liability, development or circumstance has occurred or exists, or is contemplated
to occur with respect to the Company, its Subsidiaries, or their respective business, properties, prospects, operations or financial condition,
that would constitute a Material Adverse Effect.

 

(m)          
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of
or in default under its Articles of Incorporation, any certificate of designation, preferences or rights of any other outstanding series
of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation or certificate
of incorporation or bylaws, respectively. The Company and each of its Subsidiaries have been in material compliance with all Applicable
Laws (as defined below) since the incorporation of the Company and will continue to operate in compliance with all Applicable Laws. “Applicable
Law” means applicable provisions of federal, state or local law (including common law), statute, rule, regulation, order, permit,
judgment, injunction, decree or other decision of any court or other tribunal or governmental authority legally binding on the Company,
its properties, its Subsidiaries, or their properties, including applicable state or local laws with respect to cannabis, all as may be
amended, but excluding the Controlled Substances Act (21 U.S.C. §801, et. seq.) federal law that prohibits the cultivation,
processing, transportation, sale or possession of Cannabis or parts of Cannabis including particular cannabinoids, the sale or possession
of cannabis paraphernalia, or advertising the sale of Cannabis, products containing Cannabis, or Cannabis paraphernalia. “Cannabis”
means a plant in the genus Cannabis including Cannabis sativa, Cannabis indica, Cannabis ruderalis, and all subspecies,
hybrids, or yet to be discovered subspecies and hybrids, and including the federal law definitions of Marijuana. “Marijuana”
means any material, compound, derivative, mixture, product or preparation that contains any quantity of the substances listed on Schedule
1 of the Controlled Substances Act or in its implementing regulations, including 21 C.F.R. § 1308.11, 21 U.S.C. § 802(6) as
“Marijuana” or “Tetrahydrocannabinols,” except Hemp, as defined in 7 U.S.C. § 1639o and except Cannabis Plant
Materials defined in 21 C.F.R. 1308.35 or which contains any of their salts, isomers and salts of isomers, or any derivative or mixture
thereof or any synthetic equivalent or which would be a “controlled substance analogue” manufactured, formulated, sold, distributed,
or marketed with the intent to avoid the provisions of existing drug laws as defined under 21 U.S.C. § 813. The Company and each
of its Subsidiaries possess all material certificates, authorizations and permits issued by the appropriate foreign, federal or state
regulatory authorities necessary to conduct their respective businesses. All such certificates, authorizations and permits are valid and
in full force and effect. During the period since the Company’s Common Stock was designated for quotation on the Principal Market,
(i) the Common Stock has been designated for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended
by the SEC or the Principal Market and (iii) the Company has received no communication, written or oral, from the SEC or the Principal
Market regarding the suspension of quotation of the Common Stock on the Principal Market.

 

(n)            
Sarbanes-Oxley Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002,
as amended, that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder
that are effective as of the date hereof.

 

 

 

    	 	8	 

     

    

 

(o)            
Transactions With Affiliates. Except as set forth in Schedule 3(o), none of the current officers, directors or employees
(including any family member or affiliate thereof) of the Company or any of its Subsidiaries is presently a party to (or has previously
been a party to) any transaction with the Company or any of its Subsidiaries (other than for ordinary course services as employees, officers
or directors), including any contract, agreement or other arrangement providing for the furnishing of goods or services to or by, providing
for rental of real or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee
or, to the Company’s Knowledge, any corporation, partnership, trust or other Person in which any such officer, director, or employee
(or family member or affiliate thereof) has a substantial interest or is an employee, officer, director, trustee or partner.

 

(p)            
Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 250,000,000 shares
of Common Stock, of which as of the date hereof, 44,400,852 are issued and outstanding, 18,500,000 shares are reserved for issuance pursuant
to the Company’s stock option and purchase plans and 94,253,270 shares are reserved for issuance pursuant to securities (other than
the aforementioned options and the Notes) exercisable or exchangeable for, or convertible into, Common Stock and (ii) 10,000,000 shares
of preferred stock, par value $0.001 per share, 110,000 of which are designated and 82,838 or which are issued and outstanding. 517,044
shares of Common Stock are held in treasury. All of such outstanding shares are duly authorized, validly issued and are fully paid and
nonassessable. 9,664,080 shares of the Company’s issued and outstanding Common Stock on the date hereof are as of the date hereof
owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act) of the Company or any of its Subsidiaries.
(i) Except as disclosed in Schedule 3(p), none of the Company’s or any Subsidiary’s capital stock is subject to
preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company or any Subsidiary; (ii)
except as disclosed in Schedule 3(p), there are no outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any
capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries, is or may become bound to issue additional capital stock of the Company or any of its Subsidiaries, or options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries; (iii) except as disclosed in Schedule
3(p), there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or
instruments evidencing Indebtedness of the Company or any of its Subsidiaries, or by which the Company or any of its Subsidiaries, is
or may become bound; (iv) except as disclosed in Schedule 3(p), there are no financing statements securing obligations in
any amounts filed in connection with the Company or any of its Subsidiaries; (v) except as disclosed in Schedule 3(p), there are
no agreements or arrangements (other than as set forth herein) under which the Company or any of its Subsidiaries, is obligated to
register the sale of any of their securities under the 1933 Act; (vi) except as disclosed in Schedule 3(p), there are no outstanding
securities or instruments of the Company or any of its Subsidiaries, which contain any redemption or similar provisions, and there are
no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Underlying Shares; (viii) except as disclosed in Schedule 3(p),
neither the Company nor any Subsidiary, if any, has any stock appreciation rights or “phantom stock” plans or agreements or
any similar plan or agreement; and (ix) neither the Company nor any of its Subsidiaries have any material non-public information, including
any material liabilities or obligations, that are required to be disclosed in the SEC Documents which are not so disclosed in the SEC
Documents. True, correct and complete copies of the Company’s articles of incorporation, as amended and as in effect on the date
hereof (the “Articles of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof
(the “Bylaws”), and the terms of all securities convertible into, or exercisable or exchangeable for, Common Stock
and the material rights of the holders thereof in respect thereto have heretofore been filed as part of the SEC Documents. Except as set
forth in Schedule 3(p), each outstanding stock option granted by the Company was granted (x) in accordance with the terms of the
applicable stock option plan of the Company and (y) with an exercise price at least equal to the fair market value of the Common Stock
on the date such stock option would be considered granted under GAAP and Applicable Law. To the Company’s Knowledge, no stock option
granted under the Company’s stock option plan has been backdated. To the Company’s Knowledge, the Company has not granted,
and there is no and has been no policy or practice of the Company to grant, stock options prior to, or otherwise coordinate the grant
of stock options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their
financial results or prospects.

 

 

    	 	9	 

     

    

 

(q)            
Indebtedness and Other Contracts. Neither the Company nor any of its Subsidiaries, (i) except as disclosed in Schedule
3(q), has any outstanding Indebtedness (as defined below), (ii) except as disclosed in the SEC Documents and in Schedule 3(q),
is a party to any material definitive agreement (as defined in Item 1.01(b) of the Current Report on Form 8-K), or (iii) neither the Company
nor any Subsidiary, nor any other party to a material definitive agreement (as defined in Item 1.01(b) of the Current Report on Form 8-K)
is in material violation of any term of, or in default under, such material definitive agreement, including any material definitive agreement
relating to any Indebtedness. For purposes of this Agreement: (x) “Indebtedness” of any Person means, without
duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price
of property or services (including “capital leases” in accordance with GAAP, consistently applied during the periods involved)
(other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment
obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets
or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing,
in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies
of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all
monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered
thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which
the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, claim, lien, tax, right
of first refusal, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract
rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment
of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to
in clauses (A) through (G) above; and (y) “Contingent Obligation” means, as to any Person, any direct or indirect liability,
contingent or otherwise, of that Person with respect to any indebtedness, capital lease, dividend or other obligation of another Person
if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the
obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with,
or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(r)             
Absence of Litigation. Except as set forth in the SEC Documents, there is no material action, suit, proceeding, inquiry
or investigation before or by the Principal Market or any court, public board, arbitrator, panel, government agency, self-regulatory organization
or body pending, or, to the Company’s Knowledge, threatened, against or affecting the Company or any of its Subsidiaries, or, to
the Company’s Knowledge, any of the Company’s or its Subsidiaries’ officers or directors, whether of a civil or criminal
nature or otherwise, in their capacities as such. To the Company’s Knowledge, no director, officer or employee of the Company or
any of its Subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation.
Without limitation of the foregoing, there has not been, and to the Company’s Knowledge, there is not pending, contemplated or anticipated,
any inquiry or investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of
the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company under the 1933 Act or the 1934 Act. Neither the Company nor any of its Subsidiaries is subject to any order,
writ, judgment, injunction, decree, determination or award of any governmental entity.

 

(s)            
Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all material foreign, federal and state
income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all
taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports
and declarations, except those being contested in good faith and (iii) has set aside on its books adequate reserves for the payment of
all unpaid taxes. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, except
for those being contested in good faith, and the officers of the Company and its Subsidiaries know of no basis for any such claim.

 

(t)             
Internal Accounting and Disclosure Controls. The Company and each of its Subsidiaries, maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with
GAAP, consistently applied during the periods involved, and Applicable Law, and to maintain asset and liability accountability, (iii)
access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization
and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals
and appropriate action is taken with respect to any difference. The Company maintains disclosure controls and procedures (as such term
is defined in Rule 13a-15 under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company
in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified
in the rules and forms of the SEC, including controls and procedures designed to ensure that information required to be disclosed by the
Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management,
including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely
decisions regarding required disclosure. During the twelve months prior to the date hereof neither the Company nor any of its Subsidiaries,
has received any written notice or correspondence from any accountant relating to any material weakness in any part of the system of internal
accounting controls of the Company or any of its Subsidiaries.

 

 

    	 	10	 

     

    

 

(u)            
Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or
any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its
1934 Act filings and is not so disclosed or that otherwise has had or would be reasonably likely to have a Material Adverse Effect.

 

(v)            
Investment Company Status. Neither the Company nor any of its Subsidiaries, is, and upon consummation of the sale of the
Securities, and for so long as the Buyers hold any Securities, will not be, an “investment company,” an affiliate of an “investment
company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company Act
of 1940, as amended.

 

(w)          
Acknowledgement Regarding Buyers’ Trading Activity. The Company acknowledges and agrees that, except as otherwise
set forth herein or in any other Transaction Document, (i) the Buyers have not been asked to agree, nor have the Buyers agreed, to desist
from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued
by the Company or to hold the Securities for any specified term; (ii) the Buyers, and counter-parties in “derivative”
transactions to which any Buyer is a party, directly or indirectly, presently may have a “short” position in the Common Stock;
(iii) the Buyers shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction; and (iv) each Buyer may rely on the Company’s obligation to timely deliver shares of Common Stock as and when required
pursuant to the Transaction Documents for purposes of effecting trading in the Common Stock of the Company. The Company further understands
and acknowledges that (a) the Buyers may engage in hedging and/or trading activities at various times during the period that the Securities
are outstanding, and (b) such hedging and/or trading activities, if any, can reduce the value of the existing stockholders’ equity
interest in the Company both at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges
that such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement or any of the documents executed
in connection herewith.

 

(x)            
Manipulation of Price. The Company has not, and, to the Company’s Knowledge, no one acting on its behalf has,
(i) taken, directly or indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result,
in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities,
(ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities (other than to placement agents),
(iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company, or
(iv) paid or agreed to pay any Person for research services with respect to any securities of the Company or any of its Subsidiaries.

 

(y)            
Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i)(1) of
the 1933 Act.

 

(z)            
Compliance with Anti-Money Laundering Laws. Other than as a result of non-compliance with the Controlled Substances Act
(21 U.S.C. §801, et. seq.) that prohibits the cultivation, processing, transportation, sale or possession of Cannabis or parts
of Cannabis including particular cannabinoids, the sale or possession of Cannabis paraphernalia, or advertising the sale of Cannabis,
products containing Cannabis, or Cannabis paraphernalia, the operations of the Company and its Subsidiaries are and have been conducted
at all times in compliance with applicable financial recordkeeping and reporting requirements and all other applicable U.S. and non-U.S.
Anti-Money Laundering Laws, and no action, suit or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the Company’s
Knowledge, threatened.

 

 

 

    	 	11	 

     

    

 

(aa)         
Sanctions. Neither the Company nor any of its Subsidiaries, nor any director, officer, employee, agent, affiliate or other
person associated with or acting on behalf of the Company or any of its Subsidiaries or affiliates is, or is directly or indirectly owned
or controlled by, a Blocked Person or a Person that is currently the subject or the target of any sanctions under Sanctions Laws; neither
the Company, any of its Subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or acting
on behalf of the Company or any of its Subsidiaries or affiliates, is located, organized or resident in a Sanctioned Country; the Company
maintains in effect and enforces policies and procedures designed to ensure compliance by the Company and its Subsidiaries with applicable
Sanctions Laws; neither the Company, any of its Subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated
with or acting on behalf of the Company or any of its Subsidiaries or affiliates, acting in any capacity in connection with the operations
of the Company, conducts any business with or for the benefit of any Blocked Person or engages in making or receiving any contribution
of funds, goods or services to, from or for the benefit of any Blocked Person, or deals in, or otherwise engages in any transaction relating
to, any property or interests in property blocked or subject to blocking pursuant to any applicable Sanctions Laws; no action of the Company
or any of its Subsidiaries in connection with (i) the execution, delivery and performance of this Agreement and the other Transaction
Documents, (ii) the issuance and sale of the Securities, or (iii) the direct or indirect use of proceeds from the Securities or the consummation
of any other transaction contemplated hereby or by the other Transaction Documents or the fulfillment of the terms hereof or thereof,
will result in the proceeds of the transactions contemplated hereby and by the other Transaction Documents being used, or loaned, contributed
or otherwise made available, directly or indirectly, to any Subsidiary, joint venture partner or other person or entity, for the purpose
of (i) unlawfully funding or facilitating any activities of or business with any person that, at the time of such funding or facilitation,
is the subject or target of Sanctions Laws, (ii) unlawfully funding or facilitating any activities of or business in any Sanctioned Country
or (iii) in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether
as underwriter, advisor, investor or otherwise) of Sanctions Laws. For the past five years, the Company and its Subsidiaries have not
knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing
or transaction is or was the subject or the target of Sanctions Laws or with any Sanctioned Country.

 

(bb)        
Anti-Bribery. Neither the Company nor any of the Subsidiaries has made any contribution or other payment to any official
of, or candidate for, any federal, state or foreign office in violation of any law. Neither the Company, nor any of its Subsidiaries or
affiliates, nor any director, officer, agent, employee or other person associated with or acting on behalf of the Company, or any of its
Subsidiaries or affiliates, has (i) used any funds for any unlawful contribution, gift, entertainment or other unlawful expense relating
to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee, to
any employee or agent of a private entity with which the Company does or seeks to do business or to foreign or domestic political parties
or campaigns, (iii) violated or is in violation of any provision of any Applicable Law implementing the OECD Convention on Combating Bribery
of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S. Foreign Corrupt Practices Act
of 1977, as amended, the U.K. Bribery Act 2010, or any other similar law of any other jurisdiction in which the Company operates its business,
including, in each case, the rules and regulations thereunder (the “Anti-Bribery Laws”), (iv) taken, is currently taking
or will take any action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person while
knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action,
to obtain or retain business or otherwise to secure any improper advantage or (v) otherwise made any offer, bribe, rebate, payoff, influence
payment, unlawful kickback or other unlawful payment; the Company and each of its respective Subsidiaries has instituted and has maintained,
and will continue to maintain, policies and procedures reasonably designed to promote and achieve compliance with the laws referred to
in (iii) above and with this representation and warranty; none of the Company, nor any of its Subsidiaries or affiliates will directly
or indirectly use the proceeds of the Securities or lend, contribute or otherwise make available such proceeds to any Subsidiary, affiliate,
joint venture partner or other person or entity for the purpose of financing or facilitating any activity that would violate the laws
and regulations referred to in (iii) above; there are, and have been, no allegations, investigations or inquiries with regard to a potential
violation of any Anti-Bribery Laws by the Company, its Subsidiaries or affiliates, or any of their respective current or former directors,
officers, employees, stockholders, representatives or agents, or other persons acting or purporting to act on their behalf.

 

(cc)         
No Additional Agreements. The Company does not have any agreement or understanding with any Buyer with respect to the transactions
contemplated by the Transaction Documents.

 

 

 

    	 	12	 

     

    

 

(dd)        
Disclosure. All disclosure provided to the Buyers regarding the Company and its Subsidiaries, their businesses and the transactions
contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries, is
true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements made therein, in the light of the circumstances under which they were made, not misleading. All of the written information
furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries, to the Buyers pursuant to or in connection
with this Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material respects as of the
date on which such information is so provided and will not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they are made, not misleading.
Each press release issued by the Company or any of its Subsidiaries, during the twelve months preceding the date of this Agreement did
not at the time of release contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. No event
or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries, or its or their business, properties,
liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under Applicable Law, requires
public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. The Company
understands and confirms that each of the Buyers will rely on the foregoing representations in effecting the transactions of securities
of the Company. The Company acknowledges and agrees that the Buyers do not make and have not made any representations or warranties with
respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

(ee)         
No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b)
under the 1933 Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act)
connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer
Covered Persons”) is subject to any Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or
(d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.
The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers
a copy of any disclosures provided thereunder.

 

(ff)          
Other Covered Persons. Except as set forth on Schedule 3(ff), the Company is not aware of any Person that has been
or will be paid (directly or indirectly) remuneration for solicitation of Buyers or potential purchasers in connection with the sale of
the Securities.

 

(gg)        
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications
and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now
conducted. To the Company’s Knowledge, there is not any infringement by the Company or its Subsidiaries of Intellectual Property
Rights of others. There is no claim, action or proceeding being made or brought, or to the Company’s Knowledge, being threatened,
against the Company or any of its Subsidiaries regarding its Intellectual Property Rights, except where such claim, action or proceeding
is not reasonably likely to result in a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any written
notice alleging any such infringement or claim, action or proceeding.

 

(hh)        
Title. Each of the Company and its Subsidiaries holds good title to, or a valid leasehold interests in, all real property,
leases in real property, facilities or other interests in real property owned or held by the Company or any of its Subsidiaries that is
material to the business of the Company (the “Real Property”). Except as set forth on Schedule 3(hh), the Real Property
is free and clear of all Liens and is not subject to any rights of way, building use restrictions, exceptions, variances, reservations,
or limitations of any nature except for (a) Liens for current taxes not yet due and payable, (b) zoning laws and other land use restrictions
that do not impair the present or anticipated use of the property subject thereto and (c) those that are not likely to result in a Material
Adverse Effect. Any Real Property held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting
and enforceable leases with such exceptions as are not material and do not interfere in any material respect with the use made and proposed
to be made of such property and buildings by the Company or any of its Subsidiaries.

 

 

 

    	 	13	 

     

    

 

(ii)           
Fixtures and Equipment. Each of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold
interest in, all material tangible personal property, equipment, improvements, fixtures, and other personal property and appurtenances
that are used by the Company or its Subsidiary in connection with the conduct of its business (the “Fixtures and Equipment”).
Each of the Company’s and its Subsidiary’s Fixtures and Equipment are structurally sound, are in good operating condition
and repair, are adequate for the uses to which they are being put, are not in need of maintenance or repairs except for ordinary, routine
maintenance and repairs and are sufficient for the conduct of the Company’s and/or its Subsidiaries’ businesses (as applicable)
in the manner as conducted prior to the Closing. Except as set forth on Schedule 3(ii), each of the Company and its Subsidiaries owns
all of its Fixtures and Equipment free and clear of all Liens except for (i) Liens for current taxes not yet due and payable, and (ii)
Liens that do not impair the present or anticipated use of the property subject thereto.

 

(jj)           
Environmental Laws.

 

(i)             
The Company and its Subsidiaries (A) are in compliance with any and all Environmental Laws (as defined below), other than those
that are not likely to result in a Material Adverse Effect, (B) have received all permits, licenses or other approvals required of them
under applicable Environmental Laws to conduct their respective businesses and (C) are in compliance with all terms and conditions of
any such permit, license or approval where, except in each of the foregoing clauses (A), (B) and (C), where the failure to so comply or
having such permits, licenses or other approval would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution
or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata),
including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to
the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as
all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits,
plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii)           
No Hazardous Materials:

 

(1)            
to the Company’s Knowledge, have been disposed of or otherwise released by the Company or any of its Subsidiaries from any
Real Property of the Company or any of its Subsidiaries in violation of any Environmental Laws; or

 

(2)            
to the Company’s Knowledge, are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities
that would constitute a violation of any Environmental Laws. To the Company’s Knowledge, no prior use by the Company or any of its
Subsidiaries of any Real Property has occurred that violates any Environmental Laws, which violation would have a Material Adverse Effect.

 

(iii)         
To the Company’s Knowledge, neither the Company nor any of its Subsidiaries knows of any other person who or entity which
has stored, treated, recycled, disposed of or otherwise located on any Real Property any Hazardous Materials, including such substances
as asbestos and polychlorinated biphenyls.

 

(iv)          
To the Company’s Knowledge, none of the Real Property is on any federal or state “Superfund” list or Liability
Information System (“CERCLIS”) list or any state environmental agency list of sites under consideration for CERCLIS,
nor subject to any environmental related Liens.

 

(kk)        
Management. During the past five year period, to the Company’s Knowledge, no current named executive officer (as defined
in Item 402 of Regulation S-K) or director has been the subject of:

 

(i)             
a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal
agent or similar officer for such Person, or any partnership in which such person was a general partner, or any corporation or business
association of which such person was an executive officer;

 

 

 

    	 	14	 

     

    

 

(ii)           
a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do
not relate to driving while intoxicated or driving under the influence);

 

(iii)         
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining any such person from, or otherwise limiting, the following activities:

 

(1)            
Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,
leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person
of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director
or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct
or practice in connection with such activity;

 

(2)            
Engaging in any particular type of business practice; or

 

(3)            
Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation
of securities laws or commodities laws;

 

(iv)          
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise
limiting for more than 60 days the right of any such person to engage in any activity described in the preceding sub paragraph, or to
be associated with persons engaged in any such activity;

 

(v)            
a finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities
law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently
reversed, suspended or vacated; or

 

(vi)          
a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated
any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated.

 

(ll)           
Cybersecurity. The Company and its Subsidiaries’ information technology assets and equipment, computers, systems,
networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate for,
and operate and perform in all material respects as required in connection with the operation of the business of the Company and its Subsidiaries
as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants.
The Company and its Subsidiaries have implemented and maintained commercially reasonable physical, technical and administrative controls,
policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation,
redundancy and security of all IT Systems and data, including “Personal Data,” used in connection with their businesses. “Personal
Data” means (i) a natural person’s name, street address, telephone number, e-mail address, photograph, social security
number or tax identification number, driver’s license number, passport number, credit card number, bank information, or customer
or account number; and (ii) any other piece of information that allows the identification of such natural person, or his or her family,
or permits the collection or analysis of any data related to an identified person’s health or sexual orientation. To the Company’s
Knowledge, there have been no material breaches, violations, outages or unauthorized uses of or accesses to same, except for those that
have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review
or investigations relating to the same. The Company and its Subsidiaries are presently in material compliance with all applicable laws
or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal
policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such
IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

 

 

 

    	 	15	 

     

    

 

(mm)    
Compliance with Data Privacy Laws. The Company and its Subsidiaries are, and at all prior times were, in material compliance
with all applicable state and federal data privacy and security laws and regulations (collectively, the “Privacy Laws”).
To ensure compliance with the Privacy Laws, the Company and its Subsidiaries have in place, comply with, and take appropriate steps reasonably
designed to ensure compliance in all material respects with their policies and procedures relating to data privacy and security and the
collection, storage, use, disclosure, handling, and analysis of Personal Data (the “Policies”). The Company and its
Subsidiaries have at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements,
and none of such disclosures made or contained in any Policy have, to the Company’s Knowledge, been inaccurate or in violation of
any applicable laws and regulatory rules or requirements in any material respect. To the Company’s Knowledge, neither the Company
nor any Subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential violation
of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice;
(ii) is currently conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to
any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

 

(nn)        
Transfer Taxes. All transfer, stamp, registration, court or documentary, recording, filing or other similar taxes (other
than taxes imposed on or measured by net income (however denominated)) which are required to be paid by the Company in connection with
the issuance and sale of the Notes to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the Company,
and all laws imposing such taxes will be or will have been complied with in all material respects.

 

(oo)        
Insurance. The Company and each of its Subsidiaries, if any, are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries, if any, are engaged. Neither the Company nor any such Subsidiary, if any, has been refused
any insurance coverage sought or applied for and, to the Company’s Knowledge, neither the Company nor any such Subsidiary, if any,
has any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

(pp)        
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or
employs any member of a union. The Company and its Subsidiaries believe that their relations with their employees are good. No executive
officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has
notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate
such officer’s employment with the Company or any such Subsidiary. To the Company’s Knowledge, no executive officer or other
key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement, non- competition agreement, or any other contract or agreement
or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does
not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its
Subsidiaries are in material compliance with all applicable federal, state, local and foreign laws and regulations respecting labor, employment
and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance
would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

(qq)        
U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries, if any, is, or has ever been, a
U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company
and each Subsidiary shall so certify upon a Buyer’s request.

 

(rr)          
No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company
and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

 

 

 

    	 	16	 

     

    

 

(ss)          
Ranking of Notes(tt). Except as set forth in Schedule 3(ss), no Indebtedness of the Company, at the Closing, will
be senior to, or pari passu with, the Notes in right of payment, whether with respect to payment or redemptions, interest, damages,
upon liquidation or dissolution or otherwise.

 

4.              
COVENANTS.

 

(a)            
Commercially Reasonable Efforts. Each party hereto shall use commercially reasonable efforts to timely satisfy each of the
conditions to be satisfied by it as provided in Sections 5 and 6. The Company shall use commercially reasonable efforts
to timely satisfy each of the covenants hereunder and conditions to be satisfied by it.

 

(b)            
Form D and Blue Sky. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and
to provide a copy thereof to the Buyers promptly after such filing. The Company shall, on or before the Closing, take such action as the
Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities for sale to the Buyers
at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States
(or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyers on or prior
to the Closing. The Company shall make all filings and reports relating to the offer and sale of the Securities required under applicable
securities or “Blue Sky” laws of the states of the United States following the Closing.

 

(c)            
Reporting Status. Until the date on which no Buyer holds any Securities (the “Reporting Period”), the
Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act (reports filed in compliance with the
time period specified in Rule 12b-25 promulgated under the 1934 Act or SEC or SEC staff issued relief shall be considered timely for this
purpose), and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act
or the rules and regulations thereunder would no longer require or otherwise permit such termination, and the Company shall take
all actions necessary to maintain its eligibility to register the Underlying Shares for resale by the Buyers on Form S-1.

 

(d)            
Use of Proceeds. Subject to the term of the Indenture, the Company will use the proceeds from the sale of the Securities
(less reasonable fees and expenses of counsel to the Company, the fees and expenses set forth in Section 4(g), and the reasonable
fees and expenses of the Placement Agent) for the Company’s M&A pipeline, the Company’s growth initiatives, and the Company’s
general corporate purposes.

 

(e)            
Financial Information. The Company agrees to send the following to the Buyers that hold Securities during the Reporting
Period (i) unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within
one Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, any Quarterly Reports on Form 10-Q,
any Current Reports on Form 8-K (or any analogous reports under the 1934 Act) and any registration statements (other than on Form S-8)
or amendments filed pursuant to the 1933 Act, and (ii) copies of any notices and other information made available or given to the stockholders
of the Company generally, contemporaneously with the making available or giving thereof to the stockholders. As used herein, “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(f)             
Listing. The Company shall promptly secure the listing of all of the Underlying Shares upon each national securities exchange
and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of issuance) and shall
maintain such listing of all Underlying Shares from time to time issuable under the terms of the Notes. For so long as any Buyer owns
any Securities, (i) the Company shall maintain the authorization for quotation of the Common Stock on the Principal Market or The New
York Stock Exchange, the NYSE American, the Nasdaq Global Market, the Nasdaq Global Select Market, the OTC Bulletin Board, or the OTCQB
(or any successors to any of the foregoing) (“Trading Market”), and (ii) neither the Company nor any of its Subsidiaries
shall take any action which would be reasonably expected to result in the suspension of quotation of the Common Stock on the Principal
Market other than in connection with, as a result of or after listing of the Common Stock on another Trading Market. The Company shall
use commercially reasonable efforts to list the Common Stock on the NEO Exchange within nine months after the issuance of the Notes. The
Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(f).

 

 

 

    	 	17	 

     

    

 

(g)            
Fees. The Company shall reimburse Kramer Levin Naftalis & Frankel LP, outside counsel to some of the Buyers (“Outside
Counsel”), for all reasonable legal fees, in connection with Outside Counsel’s structuring, documentation, negotiation
and closing of the transactions contemplated by the Transaction Documents and due diligence and regulatory filings in connection therewith
(the “Transaction Expenses”). The Company shall be responsible for the payment of any placement agent fees, financial
advisory fees, or broker’s commissions (other than those for Persons engaged by any Buyer) relating to or arising out of the transactions
contemplated hereby, including any fees or commissions payable to placement agents, including any reasonable legal fees and expenses of
such placement agents. The Company shall pay, and hold the Buyers harmless against, any liability, loss or expense (including reasonable
attorney’s fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise
set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities
to the Buyers.

 

(h)            
Disclosure of Transactions and Other Material Information. On or before 9:00 AM New York City time four Business Days after
the date hereof, the Company shall (A) issue a press release disclosing all material terms of the transactions contemplated hereby and
(B) file a Current Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required
by the 1934 Act and attaching the material Transaction Documents to the extent required by law (the “8-K Filing”).
Subject to the foregoing, neither the Company nor its Subsidiaries nor the Buyers shall issue any press releases or any other public statements
with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval
of the Buyers, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with
the 8-K Filing and contemporaneously therewith and (ii) as is required by Applicable Law. Except for any registration statement filed
in accordance with this Agreement, the 8-K Filing and as required by Applicable Law and Trading Market regulations, without the prior
written consent of a Buyer, neither the Company nor any of its Subsidiaries or affiliates shall disclose the name of such Buyer in any
filing, announcement, release or otherwise.

 

(i)             
Notice of Disqualification Events. The Company will notify the Buyers in writing prior to the Closing of (i) any Disqualification
Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating
to any Issuer Covered Person.

 

(j)             
Compliance with Cannabis Law. The Company shall take all action to comply with state cannabis laws and regulations, including
making all requisite filings under such laws and regulations as and when required.

 

(k)            
Registration Rights.

 

(i)             
Shelf Registration.

 

(1)            
Registration Requirement. The Company shall prepare and file a resale registration statement on Form S-3 under the Securities
Act, or any similar federal statute, and the rules and regulations promulgated by the SEC thereunder (it being agreed that such registration
statement shall be a registration statement filed for an offering to be made on a delayed or continuous basis pursuant to Rule 415 (or
any successor rule)), including any post-effective amendment thereto, if then available to the Company, and if such Form S-3 is not then
available to the Company, such resale registration statement shall be on Form S-1 or any similar or successor to such form under the Securities
Act (the registration statement filed pursuant to this Section 4(k)(i)(1) being referred to as a “Shelf Registration Statement”))
for the resale of all or part of the Registrable Securities no later than January 7, 2022. As used in this Agreement, “Registrable
Securities” means the Underlying Shares; provided, however, that Registrable Securities shall not include Underlying Shares
(a) when a registration statement with respect to the sale of such Underlying Shares has become effective under the Securities Act and
such Underlying Shares have been disposed of in accordance with such registration statement; (b) that have been sold pursuant to Rule
144 or other exemption from registration under the Securities Act; (c) that have been otherwise transferred, new certificates for them
not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent public distribution of them
shall not require registration or qualification of them under the Securities Act or any similar state law then in force; (d) that are
eligible for sale pursuant to Rule 144 without volume or manner-of-sale restrictions and without the requirement for the Company to be
in compliance with the current public information requirement under Rule 144(c)(1); (e) that are otherwise sold or transferred by a Holder
in a transaction where its rights under this Agreement are not assigned; or (f) that have ceased to be outstanding.

 

 

 

    	 	18	 

     

    

 

(2)            
Effectiveness of the Registration Statement. The Company shall use reasonable efforts to cause the Shelf Registration Statement
to be declared effective by the SEC staff as soon as practical, but in no event later than 90 days after the Closing (or, if subject to
a review by the SEC staff, 120 days after the Closing). Thereafter, the Company shall use its best efforts to keep such Shelf Registration
Statement continuously effective, including by filing any necessary post-effective amendments to such Shelf Registration Statement or
a new Shelf Registration Statement, until the earlier of (x) the date on which all Registrable Securities have been sold pursuant to such
Shelf Registration Statement or another Shelf Registration Statement filed under the Securities Act and (y) such time as the Registrable
Securities no longer constitute Registrable Securities. A Holder shall provide notice to the Company prior to any use of the Shelf Registration
Statement by such Holder, and shall provide the information required by, and comply with the obligations under Section 4(k)(iv) following
the receipt of a Suspension Notice. Further, each Holder agrees to complete and execute all questionnaires and other documents reasonably
required by the Company in order to prepare and file any Shelf Registration Statement.

 

(3)            
Priority and Cutback.

 

(a)            
The Buyers acknowledge that the Company has granted demand and piggyback registration rights to certain Persons other than the
Buyers before the date hereof as set forth in Schedule 4(k)(i)(3) (each, a “Priority Right Holder”). If a Person other
than a holder of Registrable Securities requests that the Company include shares of Common Stock held by such Person in a Shelf Registration
Statement, then, to the extent required by the agreements set forth in Schedule 4(k)(i)(3) and each Priority Right Holder’s request
thereunder, the Company will include in such Shelf Registration Statement (unless otherwise agreed by such Person): (i) first, the shares
of Common Stock requested to be included therein by Priority Right Holders allocated pro rata among all such Priority Right Holders on
the basis of the number of shares of Common Stock held by them, or in such manner as they may otherwise agree, (ii) second, the shares
of Common Stock requested to be included therein by holders of Registrable Securities allocated pro rata among all such holders on the
basis of the number of Registrable Securities held by them, or in such manner as they may otherwise agree; and (iii) third, the shares
of Common Stock requested to be included therein by other holders of Common Stock, allocated pro rata among all such holders on the basis
of the number of Registrable Securities held by them, or in such manner as they may otherwise agree.

 

(b)            
Notwithstanding anything to the contrary contained in this Section 4(k), if the Company receives written comments from the SEC’s
staff, and following discussions with and responses to the SEC staff in which the Company uses commercially reasonable efforts to cause
as many Registrable Securities for as many Holders as possible to be included in a Shelf Registration Statement filed pursuant to Section
4(k)(i) on the form used for the Shelf Registration Statement and without characterizing any Holder as an underwriter, the Company is
unable to cause the inclusion of all Registrable Securities, then the Company may, (i) remove from the Shelf Registration Statement such
Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations on the registration
and resale of the Registrable Securities, in each case as the SEC staff may require in order for the SEC staff to allow such Shelf Registration
Statement to become effective; provided, however, that in no event may the Company name any Holder as an underwriter without such Holder’s
prior written consent. Unless the SEC restrictions described in the foregoing sentence otherwise require, any cutback imposed pursuant
to this 4(k)(i)(3)(b) will be allocated among the Registrable Securities of the Holders on a pro rata basis, or in such manner as they
may otherwise agree, and consistent with the order of priority set forth in Section 4(k)(i)(3)(a) (unless otherwise agreed by the Priority
Right Holders).

 

(4)            
Sufficient Number of Shares Registered. Subject to Section 4(k)(i)(3), in the event that the number of shares available
under a registration statement filed pursuant to this Agreement is insufficient to cover the maximum number of Registrable Securities
to provide for the full conversion of the Notes (the “Required Registration Amount”) required to be covered by such
registration statement, the Company shall amend the applicable registration statement, or file a new registration statement (on the short
form available therefor, if applicable), or both, so as to cover at least the Required Registration Amount, in each case, as soon as practicable,
but in any event not later than 15 days after the necessity therefor arises. The Company shall use its commercially reasonable efforts
to cause such amendment and/or new registration statement to become effective as soon as practicable following the filing thereof. For
purposes of the foregoing provision, the number of shares available under a registration statement shall be deemed “insufficient
to cover all of the Registrable Securities” if at any time the number of shares of Common Stock available for resale under the registration
statement is less than the Required Registration Amount.

 

 

 

    	 	19	 

     

    

 

(ii)           
Registration Procedures. In connection with the registration of Registrable Securities under this Section 4(k) and subject
to the other terms of this Section 4(k), the Company will as expeditiously as possible:

 

(1)            
furnish to each seller of Registrable Securities such number of copies of a Shelf Registration Statement, each amendment and supplement
thereto, the prospectus included in such Shelf Registration Statement (including each preliminary prospectus), any prospectus supplement,
any documents incorporated by reference therein and such other documents as such seller may reasonably request for purposes of permitting
such seller’s review in order to facilitate the disposition of the Registrable Securities owned by such seller;

 

(2)            
use its reasonable best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws
of such jurisdictions in the United States as the holders of a majority of such Registrable Securities may reasonably request; use its
reasonable best efforts to keep each such registration or qualification (or exemption therefrom) effective during the period in which
such registration statement is required to be kept effective and to take any other action that may be reasonably necessary or advisable
to enable each seller to consummate the disposition of the Registrable Securities owned by such seller in such jurisdictions (provided,
however, that the Company will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify but for this subparagraph, (B) subject itself to taxation in any jurisdiction wherein it is not so subject or (C)
take any action that would subject it to general service of process in any jurisdiction where it is not then so subject);

 

(3)            
promptly notify each seller of Registrable Securities and (if requested by any such Person) confirm such notice in writing (A)
when a prospectus or any prospectus supplement or post-effective amendment has been filed and, with respect to a Shelf Registration Statement
or any posteffective amendment, when the same has become effective, (B) of the issuance by any state securities or other regulatory authority
of any order suspending the qualification or exemption from qualification of any of the Registrable Securities under state securities
or “blue sky” laws or the initiation of any proceedings for that purpose, and (C) of the happening of any event which makes
any material statement made in a Shelf Registration Statement or related prospectus or documents untrue or which requires the making of
any material changes in such Shelf Registration Statement, prospectus or documents so that they will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading,
and, as promptly as practicable thereafter, prepare and file with the SEC and furnish a supplement or amendment to such prospectus so
that, as thereafter deliverable to the purchasers of such Registrable Securities, such prospectus will not contain any untrue statement
of a material fact or omit a material fact necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading;

 

(4)            
permit any seller of Registrable Securities included in a Shelf Registration Statement, which in such seller’s judgment,
based on the advice of counsel, might reasonably be deemed to be a controlling person of the Company, to participate in the preparation
of such Shelf Registration Statement, to the extent necessary, and to require the insertion therein of material, furnished to the Company
in writing, which in the reasonable judgment of such seller and its counsel should be included; provided, however, that the Company shall
not have any obligation to include such information if the Company reasonably believes in good faith that so doing would cause (i) the
Shelf Registration Statement to contain an untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading or (ii) a prospectus to contain an untrue statement of a material fact
or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were
made, not misleading;

 

(5)            
otherwise use its reasonable best efforts to comply with the Securities Act and all other applicable rules and regulations of the
SEC, in connection with any Shelf Registration Statement, and make generally available to the Company’s securityholders an earnings
statement satisfying the provisions of Section 11(a) of the Securities Act no later than 45 days after the end of the 12-month period
beginning with the first day of the Company’s first fiscal quarter commencing after the effective date of a Shelf Registration Statement,
which earnings statement shall cover said 12-month period, and which requirement will be deemed to be satisfied if the Company timely
files complete and accurate information on Forms 10-Q, 10-K and 8-K under the Exchange Act and otherwise complies with Rule 158 under
the Securities Act;

 

 

 

    	 	20	 

     

    

 

(6)            
cooperate with the seller of Registrable Securities included in a Shelf Registration Statement to facilitate the timely preparation
and delivery of certificates (which shall not bear any restrictive legends unless required under applicable law) representing securities
sold under any Shelf Registration Statement, and enable such securities to be in such denominations and registered in such names as the
managing underwriter or such seller may request as promptly as reasonably practicable prior to any sale of Registrable Securities and
keep available and make available to the Company’s transfer agent prior to the effectiveness of such Shelf Registration Statement
a supply of such certificates;

 

(7)            
use its reasonable best efforts to cause the Registrable Securities covered by any Shelf Registration Statement to be listed on
a Trading Market on which the Common Stock is then listed;

 

(8)            
provide a transfer agent and registrar for all Registrable Securities;

 

(9)            
reasonably cooperate with each seller of Registrable Securities included in a Shelf Registration Statement participating in the
disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the Financial
Industry Regulatory Authority, Inc. (“FINRA”);

 

(10)        
during the period when the prospectus included in any Shelf Registration Statement is required to be delivered under the Securities
Act, promptly file all documents required to be filed with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act;

 

(11)        
notify each seller of Registrable Securities included in a Shelf Registration Statement promptly of any request by the SEC for
the amending or supplementing of such Shelf Registration Statement or the prospectus included in such Shelf Registration relating to such
seller’s Registrable Securities; and

 

(12)        
advise each seller of Registrable Securities included in a Shelf Registration Statement, promptly after the Company shall receive
notice or obtain knowledge thereof, of the issuance of any stop order by the SEC suspending the effectiveness of a Shelf Registration
Statement relating to such seller’s Registrable Securities or the initiation or threatening of any proceeding for such purpose and
promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal as soon as practicable
if such stop order should be issued.

 

(iii)         
Information about Sellers. The Company may, from time to time, require any seller of Registrable Securities as to which
any registration is being effected under this Section 4(k) to furnish to the Company in writing such information as the Company reasonably
determines, based on the advice of counsel, is required or advised to be included in connection with such registration regarding such
seller and the distribution of such Registrable Securities, and the Company may exclude from such registration the Registrable Securities
of such seller if such seller fails to furnish such information within 15 days of receiving such request.

 

(iv)          
Suspension of Dispositions. Each Holder agrees by acquisition of any Registrable Securities that, upon receipt of any notice
(a “Suspension Notice”) from the Company (1) of the happening of any event of the kind described in Section 4(k)(ii)(3)(B)
or (C), or (2) that the Company is engaged in an activity or transaction or preparations or negotiations for any activity or transaction
that the Company desires to keep confidential for business reasons, and the Company’s Board of Directors has determined in its reasonable
good faith judgement that the public disclosure requirements imposed on the Company under the Securities Act in connection with the Shelf
Registration Statement would require at that time disclosure of such activity, transaction, preparations or negotiations and such disclosure
could result in material harm to the Company or its business transactions or activities, such Holder will forthwith discontinue disposition
of Registrable Securities until such Holder’s receipt of the copies of the supplemented or amended prospectus, or until it is advised
in writing (the “Advice”) by the Company that the use of the prospectus may be resumed, and has received copies of
any additional or supplemental filings which are incorporated by reference in the prospectus, and, if so directed by the Company, such
Holder will deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such notice; provided, however, that the Company will not be required
to provide any material non-public information to a Holder in connection with such notice unless such Holder agrees to maintain the disclosed
information in confidence. The Company shall use commercially reasonable efforts to render the Advice as promptly as reasonably practicable.
In any event, the Company shall not be entitled to deliver more than two Suspension Notices in any one year.

 

 

 

    	 	21	 

     

    

 

(v)            
Indemnification.

 

(1)            
The Company agrees to indemnify, hold harmless and reimburse, to the fullest extent permitted by law, each Holder who is a seller
of Registrable Securities included in a Shelf Registration Statement, and each of its employees, advisors, agents, representatives, partners,
officers, and directors and each Person who controls such seller (within the meaning of the Securities Act) and any agent or investment
advisor thereof (collectively, the “Seller Affiliates”) against any and all losses, claims, damages, liabilities, and
expenses, joint or several (including reasonable attorneys' fees and disbursements (collectively, “Losses”) based upon,
arising out of, related to or resulting from any untrue or alleged untrue statement of a material fact contained in any Shelf Registration
Statement or any prospectus or preliminary prospectus included in such Shelf Registration Statement or any amendment thereof or supplement
thereto, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of a prospectus or preliminary prospectus, in light of the circumstances under which they were made) not misleading (including
without limitation amounts reasonably paid in settlement of any related litigation, investigation, or proceeding (provided, however that
such settlement is effected with the consent of the Company, which shall not be unreasonably withheld, conditioned, or delayed) and amounts
reasonably incurred in investigating, preparing, or defending against any such litigation, investigation, or proceeding); provided, however,
that the Company will have no obligation to provide any indemnification, hold harmless or provide any reimbursement under this Section
4(k)(v) to the extent that any such Losses (or actions or proceedings in respect thereof) arise out of or are based upon (x) an untrue
statement or alleged untrue statement or omission or alleged omission made in such Shelf Registration Statement, prospectus or preliminary
prospectus or any amendment thereof or supplement thereto, in reliance upon and in substantial conformity with information furnished in
writing to the Company by such seller or any of such seller’s Affiliates (or on such seller's or its Affiliate's behalf) for use
therein, or (y) the use by such seller or any of such seller’s Affiliates of any outdated or defective prospectus after the Company
has notified such seller in writing that the prospectus is outdated or defective.

 

(2)            
In connection with any Shelf Registration Statement covering Registrable Securities of a seller, each such seller will furnish
to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such Shelf
Registration Statement or any related prospectus, preliminary prospectus, amendment or supplement and, to the fullest extent permitted
by law, each such seller will indemnify, hold harmless and reimburse, to the fullest extent permitted by law, the Company and each of
its employees, advisors, agents, representatives, partners, officers and directors and each Person who controls the Company (within the
meaning of the Securities Act or the Exchange Act) and any agent or investment advisor thereof (“Company Indemnified Persons”)
against any and all Losses based upon, arising out of, related to or resulting from any untrue or alleged untrue statement of a material
fact contained in any Shelf Registration Statement or any prospectus or preliminary prospectus included in such Shelf Registration Statement
or any amendment thereof or supplement thereto, or any omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, but only to the extent that (A) such untrue statement or alleged untrue statement
or omission or alleged omission is contained in any information or affidavit so furnished in writing to the Company by such seller or
such seller’s Affiliates (or on such seller’s or such seller’s Affiliate’s behalf) specifically for inclusion
in such Shelf Registration Statement, prospectus, preliminary prospectus, amendment or supplement, or (B) the use by such seller or any
of such seller’s Affiliates of any outdated or defective prospectus after the Company has notified such seller in writing that the
prospectus is outdated or defective, and each such Seller agree to reimburse the Company Indemnified Persons for any legal or other expenses
reasonably incurred by it in connection with investigating or defending any such action or claim as such expenses are incurred; provided,
however, that the obligation to indemnify will be several, not joint and several, among such sellers of Registrable Securities, and the
liability of each such seller of Registrable Securities will be in proportion and limited to the net amount received by such seller from
the sale of Registrable Securities pursuant to such Shelf Registration Statement; provided, however, that such seller of Registrable Securities
shall not be liable in any such case to the extent that prior to the filing of any such Shelf Registration Statement, prospectus, preliminary
prospectus, amendment or supplement, such seller has furnished in writing to the Company information expressly for use in such Shelf Registration
Statement, prospectus, preliminary prospectus, amendment or supplement which corrected or made not misleading information previously furnished
to the Company.

 

 

 

    	 	22	 

     

    

 

(3)            
Any Person entitled to indemnification under this Section 4(k)(v) will (A) give prompt written notice to the indemnifying party
of any claim with respect to which it seeks indemnification (provided, however, that the failure of any indemnified Person to notify an
indemnifying party of any such claim shall not relieve the indemnifying party from any liability in respect of such claim that it may
have to such indemnified Person under Section 4(k)(v) unless such failure shall have a material adverse effect on the indemnifying party),
and (B) unless in such indemnified Person’s reasonable judgment a conflict of interest between such indemnified Person and the indemnifying
party 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 Person; provided, however, that any Person entitled to indemnification Section 4(k)(v) shall have the
right to employ separate counsel and to participate in the defense of such claim, but the reasonable and documented fees and expenses
of such counsel shall be at the expense of such indemnified Person unless (x) the indemnifying party has agreed to pay such fees or expenses
or (y) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such
indemnified Person. If such defense is not assumed by the indemnifying party as permitted hereunder, the indemnifying party will not be
subject to any liability for any settlement made by the indemnified Person without the indemnifying party’s consent (but such consent
will not be unreasonably withheld, conditioned or delayed). If such defense is assumed by the indemnifying party pursuant to this Section
4(k)(v), such indemnifying party shall not settle or otherwise compromise the applicable claim unless (1) such settlement or compromise
contains a full and unconditional release of the indemnified Person or (2) the indemnified Person otherwise consents in writing. An indemnifying
party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more
than one counsel for all Persons indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment
of any indemnified Person, a conflict of interest may exist between such indemnified Person and any other of such indemnified Persons
with respect to such claim, in which event the indemnifying party shall be obligated to pay the reasonable fees and disbursements of such
additional counsel or counsels.

 

(4)            
Each party hereto agrees that, if for any reason the indemnification provisions contemplated by Section 4(k)(i)(1) or Section 4(k)(v)(2)
are unavailable to or insufficient to hold harmless an indemnified Person in respect of any Losses (or actions in respect thereof) referred
to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified Person as a result of such
Losses (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and
the indemnified Person in connection with the actions which resulted in the Losses as well as any other relevant equitable considerations.
The relative fault of such indemnifying party and indemnified Person shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information
supplied by such indemnifying party or indemnified Person, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 4(k)(v)(4) were determined by pro rata allocation (even if the Holders or any underwriters or all of them were
treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations
referred to in this Section 4(k)(v)(4). The amount paid or payable by an indemnified party as a result of Losses (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4(k)(v)(4), no
Holder shall be required to contribute an amount greater than the dollar amount by which the net proceeds received by such Holder with
respect to the sale of any Registrable Securities exceeds the amount of damages which such Holder has otherwise been required to pay by
reason of any and all untrue or alleged untrue statements of material fact or omissions or alleged omissions of material fact made in
any Shelf Registration Statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto related to such
sale of Registrable Securities. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. As among Holders required
to contribute under this Section 4(k)(v)(4), the Holders’ obligations in this Section 4(k)(v)(4) to contribute shall be several
in proportion to the amount of Registrable Securities registered by them and not joint. If indemnification is available under this Section
4(k)(v), the indemnifying party shall indemnify each indemnified Person to the full extent provided in Section 4(k)(v)(1) and 4(k)(v)(2)
without regard to the relative fault of said indemnifying party or indemnified Person or any other equitable consideration provided for
in this Section 4(k)(v)(4) subject, in the case of any Holder, to the limited dollar amounts set forth in Section 4(k)(v)(2).

 

 

 

    	 	23	 

     

    

 

(5)            
The indemnification and contribution provided for under this Section 4(k)(v) will not be available to an indemnified Person with
respect to any Losses arising out of matters within the knowledge of such indemnified Person.

 

(6)            
The indemnification and contribution provided by Section 8(k) are not available and will not apply to the Losses described in Section
4(k)(v)(1).

 

(vi)          
Transfer of Registration Rights. The rights of each Holder under this Section 4(k) may be assigned or transferred to (i)
any Affiliate transferee of such Holder’s Registrable Securities, (ii) third-party transferees of such Holder’s Registrable
Securities that are not Affiliates of one another and that each acquire, or agree to acquire, an amount of Registrable Securities, and,
in the case of both (i) and (ii), such Affiliate of the Holder or transferee enters into a Joinder Agreement, substantially in the form
of Exhibit E hereto, or (iii) any assignee of a Buyer of its rights or obligations under this Agreement pursuant to Section 8(g)
(collectively, a “Permitted Transferee”).

 

(vii)        
Registration Expenses. All fees and expenses incident to the performance of or compliance with this Section 4(k) by the
Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Shelf Registration Statement. The
fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to
filings made with the SEC, (B) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed
for trading, and (C) in compliance with applicable state securities or blue sky laws reasonably agreed to by the Company in writing (including,
without limitation, fees and disbursements of counsel for the Company in connection with blue sky qualifications or exemptions of the
Registrable Securities) and (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, and (v) fees and expenses of
all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Section 4(k). In
addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions
contemplated by this Section 4(k) (including, without limitation, all salaries and expenses of its officers and employees performing legal
or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

 

(viii)      
Additional Interest. If during the time period set forth in the Indenture there shall not be continuously effective a registration
statement under the Securities Act (and other registration or qualification under the securities or blue sky laws of such jurisdictions
in the United States as the holders or prospective holders of a majority of the Common Stock issued or issuable upon conversion of the
Notes may reasonably request) covering the resale of the number of Registrable Securities required to be covered under this Section 4(k),
then the Company shall pay Additional Interest (as defined in the Indenture) on all or a portion of the principal amount of the Notes
pursuant to the terms and conditions of the Indenture.

 

(l)             
Closing Documents. The Company agrees to deliver, or cause to be delivered, in electronic form, a complete closing set of
the executed Transaction Documents and any other documents required to be delivered to any party hereto pursuant to Section 6
hereof, (i) to the Outside Counsel within 14 calendar days after the Closing, and (ii) to a Buyer within 14 calendar days after request.

 

(m)          
Regulation M. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the
distribution of the Securities contemplated hereby.

 

(n)            
Integration. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting
on behalf of the Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in the 1933 Act) which will be integrated with the sale of the Securities in a manner which would require the registration
of the Securities under the 1933 Act or require stockholder approval under the rules and regulations of the Principal Market and the Company
will take all action that is appropriate or necessary to assure that its offerings of other securities will not be integrated for purposes
of the 1933 Act or the rules and regulations of the Principal Market, with the issuance of Securities contemplated hereby.

 

 

 

    	 	24	 

     

    

 

(o)            
Post-Closing Obligations. As soon as practicable after the Closing, and in any event no later than December 15, 2021 (or
such later date as agreed to by the Collateral Agent in writing, including by e-mail):

 

(i)             
the Company will deliver to the Collateral Agent the original copy of a stock certificate representing the Company’s ownership
of 100% of the issued and outstanding equity interests in Consulting together with an instrument of transfer covering such certificate
duly executed in blank in form and substance reasonably satisfactory to the Collateral Agent;

 

(ii)           
the Company will deliver a collateral assignment of insurance to the Collateral Agent in form and substance satisfactory to the
Collateral Agent;

 

(iii)         
the Company or the applicable Guarantor, will deliver to the Collateral Agent customary deposit account control agreements for
each of the deposit accounts set forth in Schedule 4(o)(iii), in form and substance reasonably satisfactory to the Collateral Agent; provided,
however, that the failure to deliver any such deposit account control agreement shall not constitute an Event of Default (as defined in
the Indenture) provided that reasonable endeavors are used to obtain such deposit account control agreements;

 

(iv)          
the Company and Emerald Fields, Nuevo Elemental, Nuevo Holding and Schwazze New Mexico will deliver to each Buyer the results of
a recent lien, bankruptcy, United States Patent and Trademark Office (the “PTO”), tax and judgment search in each relevant
jurisdiction with respect to Emerald Fields, Nuevo Elemental, Nuevo Holding and Schwazze New Mexico that shall reveal no Liens on any
of the Collateral (as such term is defined in the Security Agreement) or other assets of Emerald Fields, Nuevo Elemental, Nuevo Holding
and Schwazze New Mexico except, in the case of assets other than Collateral, for Permitted Liens (as such term is defined in the Security
Agreement) and except for Liens discharged on or prior to the Closing; and

 

(v)            
the Company will enter into a customary intellectual property security agreement with respect to the trademarks listed on Schedule
6 to the Security Agreement.

 

5.              
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

(a)            
The obligation of the Company hereunder to issue and sell the Notes to the each Buyer at the Closing is subject to the satisfaction,
at or before the Closing, of each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion by providing the Buyers with prior written notice thereof:

 

(i)             
Each Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)           
Each Buyer shall have delivered to the Company such Buyer’s aggregate Purchase Price for the Notes being purchased by such
Buyer at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iii)         
The representations and warranties of each Buyer shall be true and correct as of the date when made and as of the Closing as though
made at that time (except for representations and warranties that speak as of a specific date which shall be true and correct as of such
specified date), and each Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Closing.

 

(iv)          
The Trustee shall have duly executed the Indenture and delivered the same to the Company.

 

(v)            
Each party hereto shall have executed the Security Agreement.

 

(vi)          
Each party hereto and necessary third-party lienholders shall have executed Intercreditor Agreements.

 

 

 

    	 	25	 

     

    

 

6.              
CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

(a)            
The obligation of each Buyer hereunder to purchase the Notes that such Buyer is purchasing at the Closing is subject to the satisfaction,
at or before the Closing, of each of the following conditions, provided that these conditions are for such Buyer’s sole benefit
and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)             
The Company shall have duly executed and delivered to such Buyer (A) each of the executed Transaction Documents, including the
Security Agreement, and all necessary Intercreditor Agreements, and (B) a Note in such original principal amount as is set forth under
“Original Principal Amount of Notes” on such Buyer’s signature page hereto.

 

(ii)           
Each Guarantor shall have duly executed and delivered to such Buyer each of the Transaction Documents to which such Guarantor is
a party.

 

(iii)         
The Trustee shall have duly executed the Indenture and delivered the same to the Company.

 

(iv)          
The Company shall have delivered to such Buyer a certificate, executed by the Secretary of the Company and dated as of the Closing,
as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s Board of Directors in a form reasonably
acceptable to such Buyer, (ii) the Articles of Incorporation and (iii) the Bylaws, each as in effect at the Closing, in the form attached
hereto as Exhibit C.

 

(v)            
The Common Stock (I) shall be designated for quotation on the Principal Market and (II) shall not have been suspended, as of such
Closing, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market
have been threatened, as of such Closing, either (A) in writing by the SEC or the Principal Market or (B) by falling below the minimum
listing maintenance requirements of the Principal Market.

 

(vi)          
The representations and warranties of the Company shall be true and correct as of the date when made and as of the Closing as though
made at that time (except for representations and warranties that speak as of a specific date which shall be true and correct as of such
specified date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing.
Such Buyer shall have received a certificate, executed by the Chief Executive Officer of the Company, dated as of the Closing, to the
foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form attached hereto as Exhibit D.

 

(vii)        
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Notes and the consummation of the transactions contemplated hereby.

 

(viii)      
The Company and each Guarantor other than Emerald Fields, Nuevo Elemental, Nuevo Holding and Schwazze New Mexico shall have delivered
to such Buyer the results of a recent lien, bankruptcy, PTO, tax and judgment search in each relevant jurisdiction with respect to the
Company and each of the Guarantors other than Emerald Fields, Nuevo Elemental, Nuevo Holding and Schwazze New Mexico, that shall reveal
no Liens on any of the Collateral (as such term is defined in the Security Agreement) or other assets of the Company and the Guarantors
other than Emerald Fields, Nuevo Elemental, Nuevo Holding and Schwazze New Mexico except, in the case of assets other than Collateral,
for Permitted Liens (as such term is defined in the Security Agreement) and except for Liens to be discharged on or prior to the Closing
pursuant to documentation reasonably satisfactory to the Buyer.

 

(ix)          
The Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company,
setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company.

 

 

 

    	 	26	 

     

    

 

(x)            
The Buyer shall have received satisfactory evidence that each document (including any Uniform Commercial Code financing statements
and appropriate filings with the PTO) required by the Transaction Documents or any legal requirement or reasonably requested by a Buyer
or the Collateral Agent to be filed, registered, or recorded in order to create in favor of the Collateral Agent a perfected first priority
lien on the Collateral described therein prior to and superior to the right of any other Person (other than with respect to liens expressly
permitted under the Indenture and the Security Agreement) shall be in proper form for filing, registration, and recording and provided
to the Collateral Agent for filing in each jurisdiction.

 

(xi)          
The Buyer shall have received a legal opinion from counsel with respect to the transactions contemplated under this Agreement and
the Transaction Documents, including the Indenture, the Security Agreement and the necessary Intercreditor Agreements.

 

(xii)        
The Buyer shall have received evidence of insurance coverage in the form, scope, and substance satisfactory to the Buyer.

 

(xiii)      
Each other Buyer shall have delivered to the Company such Buyer’s aggregate Purchase Price for the Notes being purchased
by such Buyer at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(xiv)      
The Company shall have delivered to such Buyer such other documents relating to the transactions contemplated by this Agreement
as such Buyer or its counsel may reasonably request.

 

(xv)        
After the date of this Agreement, there shall not have occurred any reverse or forward stock split, stock dividend, stock combination
or and similar transaction involving the Common Stock of the Company.

 

(xvi)      
The proceeds of the Notes shall be deposited into a deposit account for which the Collateral Agent for the Notes shall be the secured
party under a deposit account control agreement.

 

7.              
TERMINATION. If the Closing shall not have occurred with respect to a Buyer on or before seven days after the date hereof
(the “Outside Date”), then such Buyer and the Company shall have the right to terminate their respective obligations
under this Agreement with respect to such Buyer at any time on or after the close of business on the Outside Date without liability of
such Buyer or the Company to any other party; provided, however, that (a) the right to terminate this Agreement under this Section
7 shall not be available to such a party if the failure to consummate the transactions contemplated by this Agreement with respect to
such Buyer by the Outside Date is the result of such party’s breach of this Agreement and (b) the abandonment of the sale and purchase
of the Notes shall be applicable only to such Buyer. If the Closing shall not have occurred with respect to a Buyer due to such Buyers’
breach of this Agreement and another Person shall not have fulfilled such Buyers’ obligation to purchase Notes hereunder within
five days after such breach, then each other party hereto shall have the right to terminate its obligations under this Agreement with
respect to itself at any time on or after the expiration of such five day period without liability to any other party by written notice
to the other parties hereto; provided, however, that the right to terminate under this sentence will not be available to a Buyer unless
the aggregate amount of the unpurchased principal amount of Notes under this Agreement exceed 2.5% of the aggregate principal amount of
the Notes set forth under “Original Principal Amount of Notes” on the signature pages hereto of all Buyers. Nothing contained
in this Section 7 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of
this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party
of its obligations under this Agreement or the other Transaction Documents.

 

 

 

    	 	27	 

     

    

 

8.              
MISCELLANEOUS.

 

(a)            
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF
ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)            
Counterparts. This Agreement may be executed in two or more counterparts, all of which 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 party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed
signature page, such signature page 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. A party’s electronic signature (complying
with the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), as amended from time to time, or other
applicable law) of this agreement shall likewise 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

 

(c)            
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include
the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in
which they are found.

 

(d)            
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended
to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall
not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or
the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith
negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as
close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

 

 

    	 	28	 

     

    

 

(e)            
Entire Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written
agreements between the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed
herein, and this Agreement, the other Transaction Documents and the instruments referenced herein and therein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor the Buyers makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be amended or waived other than by an instrument in writing signed by the Company and the Buyers holding a majority
of the then-outstanding principal amount of the Notes, and any amendment or waiver to this Agreement made in conformity with the provisions
of this Section 8(e) shall be binding on all holders of Securities and the Company; provided, however, that no amendment shall
be effective against any Buyer that is disproportionately affected by such amendment as compared to any other Buyer without such Buyer’s
written consent; provided, further, that no amendment requiring any Buyer to purchase additional Securities shall be effective against
a Buyer without such Buyer’s written consent; provided, further, that no waiver of the provisions of Section 6(a) shall be effective
against a Buyer without such Buyer’s written consent. No such amendment shall be effective to the extent that it applies to
less than all of the holders of the applicable Securities then outstanding. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration (other
than the reimbursement of legal fees) also is offered to all of the parties to the Transaction Documents; provided, however, that for
clarity, any Person’s participation in a subsequent securities offering of the Company shall not be consideration for this purpose.
The Company has not, directly or indirectly, made any agreements with the Buyers relating to the terms or conditions of the transactions
contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company
confirms that, except as set forth in this Agreement, the Buyers has not made any commitment or promise or has any other obligation to
provide any financing to the Company or otherwise. Whenever this Agreement requires the consent or approval of the holders of the Notes,
unless otherwise expressly and specifically set forth in this Agreement, such consent or approval shall require the approval of the holders
of the Notes holding a majority of the then-outstanding principal amount of the Notes.

 

(f)             
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon delivery,
when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or by electronic mail; (iii) upon delivery, when sent by electronic mail (provided that the sending party does not receive an automated
rejection notice); or (iv) upon receipt, when sent by overnight courier service, in each case properly addressed to the party to receive
the same. The addresses, facsimile numbers and e-mail addresses for such communications shall be:

 

If to the Company:

 

Medicine Man Technologies, Inc.

4880 Havana Street, Suite 201

Denver, CO 80239

Telephone:       (303)
371-0387

Facsimile:       (303)
371-0598

Attention:       General
Counsel

E-mail:       dan@schwazze.com

 

If to a Buyer, to such Buyer’s address,
facsimile and e-mail address set forth on such Buyer’s signature page hereto, with copies to such Buyer’s representatives
as set forth on its signature page hereto. Any notice address, facsimile number or email address for a party may be changed by delivering
such other address, facsimile number and/or e-mail address and/or to the attention of such other Person as the specified by written notice
given to the Company or the Buyers, as applicable, five calendar days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number and an image of the
first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt
by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(g)            
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
permitted successors and permitted assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without
the prior written consent of the Buyers holding a majority of the then-outstanding principal amount of the Notes. Except as set forth
in Section 4(k)(vi), a Buyer shall not assign this Agreement or any rights or obligations hereunder without the prior written consent
of the Company.

 

 

 

    	 	29	 

     

    

 

(h)            
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i)             
Survival. Unless this Agreement is terminated under Section 7, the covenants and agreements of the Company and the
Buyer shall survive the Closing. Each Buyer shall be responsible only for its own representations, warranties, agreements and covenants
hereunder. The representations and warranties of the Company shall survive the Closing until the one year anniversary thereof.

 

(j)             
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)            
Indemnification.

 

(i)             
Other than with respect to the Losses described in Section 4(k)(v)(1) which are subject to the indemnification and contribution
provided by Section 4(k)(v) in lieu of this Section 8(k), in consideration of each Buyer’s execution and delivery of the Transaction
Documents and acquiring the Notes thereunder and in addition to all of the Company’s and each Guarantor’s other obligations
under the Transaction Documents, the Company and each Guarantor shall, jointly and severally, defend, protect, indemnify and hold harmless
each Buyer and all of its stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of
the foregoing Persons’ agents or other representatives (including those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and
disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating
to (A) any misrepresentation or breach of any representation or warranty made by the Company or any of the Guarantors in any of the Transaction
Documents, (B) any breach of any covenant, agreement or obligation of the Company or any of the Guarantors contained in any of the Transaction
Documents or (C) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party (including for
these purposes a derivative action brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that
arises out of or results from (1) the execution, delivery, performance or enforcement of any of the Transaction Documents, or (2) the
status of such Buyer or holder of the Securities either as an investor in the Company or any Guarantor pursuant to the transactions contemplated
by the Transaction Documents or as a party to this Agreement (including as a party in interest or otherwise in any action or proceeding
for injunctive or other equitable relief); provided, however, that the foregoing indemnity will not, as to any Indemnitee, be available
to the extent that such Indemnified Liabilities are determined by a court of competent jurisdiction by final and nonappealable judgment
to have resulted from (x) the bad faith, gross negligence or willful misconduct of such Indemnitee, the inaccuracy of any representation
or warranty made by such Indemnitee, or the material breach of any Transaction Document or any agreements or understandings such Indemnitee
may have with anyone other than the Company or a Subsidiary, or (y) any violations by such Indemnitee of state or federal laws. To the
extent that the foregoing undertaking by the Company and the Guarantors may be unenforceable for any reason, the Company and the Guarantors,
jointly and severally, shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which
is permissible under applicable law.

 

 

 

    	 	30	 

     

    

 

(ii)           
Promptly after receipt by an Indemnitee under this Section 8(k) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to
be made against any indemnifying party under this Section 8(k), deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with
the fees and expenses of such counsel to be paid by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay
such fees and expenses; (ii) the indemnifying party shall have failed promptly to assume the defense of such Indemnified Liability
and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (iii) the named parties to
any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the indemnifying party, and such Indemnitee
shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnitee
and the indemnifying party (in which case, if such Indemnitee notifies the indemnifying party in writing that it elects to employ separate
counsel at the expense of the indemnifying party, then the indemnifying party shall not have the right to assume the defense thereof and
such counsel shall be at the expense of the indemnifying party); provided, further, that in the case of clause (iii) above the indemnifying
party shall not be responsible for the reasonable fees and expenses of more than one separate legal counsel for such Indemnitee. The Indemnitee
shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnitee which relates to
such Indemnified Liability. The indemnifying party shall keep the Indemnitee reasonably apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its prior written consent; provided, however, the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnitee, consent to entry of
any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability, and such settlement
shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter
for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnitee under this Section 8(k),
except to the extent that the indemnifying party is materially and adversely prejudiced in its ability to defend such action. The indemnification
required by this Section 8(k) shall be made by periodic payments of the amount thereof during the course of the investigation or defense,
as and when bills are received or Indemnified Liabilities are incurred. The indemnity and contribution agreements contained herein shall
be in addition to (i) any cause of action or similar right of the Indemnitees against the indemnifying party or others, and (ii) any liabilities
the indemnifying party may be subject to pursuant to the law; provided, however, that the Losses described in Section 4(k)(v)(1) are subject
to the indemnification and contribution provided by Section 4(k)(v) in lieu of this Section 8(k).

 

(l)             
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rules of strict construction will be applied against any party hereto. Each party hereto agrees that
such party and/or its legal counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal
rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments thereto.

 

(m)          
Remedies. The Buyers and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents
and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it fails to perform,
observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief
to the Buyers. The Company therefore agrees that the Buyers shall be entitled to seek temporary and permanent injunctive relief in any
such case without the necessity of proving actual damages and without posting a bond or other security. The remedies provided in this
Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies available under this Agreement
and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief).

 

 

 

    	 	31	 

     

    

 

(n)            
Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
this Agreement, whenever any Buyer exercises a right, election, demand or option under this Agreement and the Company or any Subsidiary
does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand or
election in whole or in part without prejudice to its future actions and rights.

 

(o)            
Payment Set Aside. To the extent that the Company makes a payment or payments to a Buyer hereunder or pursuant to any of
the other Transaction Documents or a Buyer enforces or exercises its rights hereunder or thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver
or any other Person under any law (including any bankruptcy law, foreign, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

(p)            
Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under any Transaction Document
are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance or
non-performance of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction
Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Buyers are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Documents. Each Buyer shall be entitled to independently
protect and enforce its rights, including the rights arising out of this Agreement or out of the other Transaction Documents, and it shall
not be necessary for any other Buyer to be joined as an additional party in any proceedings for such purpose. Each Buyer has been, or
has had the opportunity to be, represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.
The Company has elected to provide all Buyers with the same terms and Transaction Documents for the convenience of the Company and not
because it was required or requested to do so by any of the Buyers. It is expressly understood and agreed that each provision contained
in this Agreement and in each other Transaction Document is between the Company and the Buyer, solely, and not between the Company and
the Buyers collectively and not between and among the Buyers.

 

(q)            
Enforcement Fees. The prevailing party in any dispute under or relating to this Agreement shall have the right to collect
from the other all costs and expenses incurred by such prevailing party as a result of enforcement of this Agreement and the collection
of any amounts owed to such prevailing party hereunder (whether in cash, equity or otherwise), including reasonable attorneys’ fees
and expenses.

 

(r)             
Performance Date. If the date by which any obligation under any of the Transaction Documents must be performed occurs on
a day other than a Business Day, then the date by which such performance is required shall be the next Business Day following such date.

 

[Signature Page(s) Follows]

 

 

 

    	 	32	 

     

    

 

IN WITNESS WHEREOF,
the Buyers, the Company and the Guarantors have caused their respective signature page to this Securities Purchase Agreement to be duly
executed as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	MEDICINE MAN TECHNOLOGIES, INC.
	 	
     

     
	 
	 	By:	/s/ Justin Dye
	 	 	Name: Justin Dye
	 	 	Title:   Chief Executive Officer

 

 

	 	GUARANTORS:

 

	 	DOUBLE BROW, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	 
	 	 
	 	MISSION HOLDING, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

 

[Signature Page to Securities Purchase Agreement]

 

 

    	 	33	 

     

    

 

	 	SCG HOLDING, LLC
	 	By: Medicine Man Technologies, Inc., its Sole Member
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	SCHWAZZE COLORADO LLC
	 	By: Medicine
Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	SCHWAZZE BIOSCIENCES, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	SBUD LLC
	 	By: Schwazze Colorado LLC, its Manager 
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

[Signature Page to Securities Purchase Agreement]

 

    	 	34	 

     

    

 

	 	MEDICINE MAN CONSULTING, INC.
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   President

 

	 	TWO J’S LLC
	 	 By: Medicine Man Technologies, Inc., its Sole Member
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	MESA ORGANICS LTD.
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	MESA ORGANICS II LTD
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

 

[Signature Page to Securities Purchase Agreement]

    	 	35	 

     

    

 

	 	MESA ORGANICS III LTD
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	MESA ORGANICS IV LTD
	 	By: Medicine Man Technologies, Inc., it Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	PBS HOLDCO LLC
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	SCHWAZZE IP HOLDCO LLC
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

[Signature Page to Securities Purchase Agreement]

 

    	 	36	 

     

    

 

	 	MIH MANAGER LLC
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	EMERALD FIELDS MERGER SUB, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

	 	NUEVO HOLDING, LLC
	 	By: Schwazze New Mexico, LLC, its Manager
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name:  Justin Dye
	 	Title:  Chief Executive Officer

 

 

	 	NUEVO ELEMENTAL HOLDING, LLC
	 	By: Schwazze New Mexico, LLC, its Manager
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name:  Justin Dye
	 	Title:  Chief Executive Officer

 

 

[Signature Page to Securities Purchase Agreement]

    	 	37	 

     

    

 

 

	 	SCHWAZZE NEW MEXICO, LLC
	 	         By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:   /s/ Justin Dye
	 	Name:  Justin Dye
	 	Title:  Chief Executive Officer

 

 

 

 

 

 

 

 

 

[Signature Page to Securities
Purchase Agreement]

 

    	 	38	 

     

    

 

IN WITNESS WHEREOF,
the Buyers, the Company and the Guarantors have caused their respective signature page to this Securities Purchase Agreement to be duly
executed as of the date first written above.

 

	 	BUYERS:
	 	 	 
	 Original Principal Amount	_______________________________________
	 of Notes:	 	 
	 $ _______________	 	 
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

	 	 
	 	Copies of notices to:
	 	 
	 	 
	 	 
	 	Attention: [__________]
	 	Email: [__________]

 

 

 

 

 

 

 

 

 

[Signature Page to Securities
Purchase Agreement]

 

    	 	39	 

     

    

 

SCHEDULES

 

December 3, 2021

 

These Schedules are made and given pursuant to
the Securities Purchase Agreement (“Agreement”), dated as of the date hereof by and between Medicine Man Technologies,
Inc., d/b/a Schwazze, a Nevada corporation (the “Company”), Double Brow, LLC, a Colorado limited liability company
(“Double Brow”), Mission Holding, LLC, a Colorado limited liability company (“Mission”), SCG Holding,
LLC, a Colorado limited liability company (“SCG”), Schwazze Colorado LLC, a Colorado limited liability company (“Schwazze
Colorado”), Schwazze Biosciences, LLC, a Colorado limited liability company (“Schwazze Bio”), SBUD LLC, a
Colorado limited liability company (“SBUD”), Medicine Man Consulting, Inc., a Colorado corporation (“Consulting”),
Two J’s LLC d/b/a The Big Tomato, a Colorado limited liability company (“Two J’s”), Mesa Organics Ltd.
d/b/a Star Buds/Purplebee’s, a Colorado limited liability company (“Mesa I”), Mesa Organics II Ltd, a Colorado
limited liability company (“Mesa II”), Mesa Organics III Ltd, a Colorado limited liability company (“Mesa
III”), Mesa Organics IV Ltd, a Colorado limited liability company (“Mesa IV”), Schwazze IP Holdco LLC, a
Colorado limited liability company (“Schwazze IP”), MIH Manager LLC, a Colorado limited liability company (“MIH”),
Emerald Fields Merger Sub, LLC, a Colorado limited liability company (“Emerald Fields”), PBS Holdco LLC, d/b/a Star
Buds/Purplebee’s, a Colorado limited liability company (“PBS Holdco”), Nuevo Holding, LLC, a New Mexico limited
liability company (“Nuevo Holding”), Nuevo Elemental Holding, LLC, a New Mexico limited liability company (“Nuevo
Elemental”), and Schwazze New Mexico, LLC, a New Mexico limited liability company (“Schwazze NM,” and, collectively
with Double Brow, Mission, SCG, Schwazze Colorado, Schwazze Bio, SBUD, Consulting, Two J’s, Mesa I, Mesa II, Mesa III, Mesa IV,
Schwazze IP, MIH, Emerald Fields, PBS Holdco, Nuevo Holding and Nuevo Elemental, the “Guarantors”) and each of the
investors listed on the Schedule of Buyers attached thereto (each individually a “Buyer” or “Holder”
and collectively, the “Buyers” or the “Holders”).

 

Capitalized terms used but not otherwise defined
herein shall have the meanings given to them in the Agreement. The section numbers below correspond to the section numbers of the representations
and warranties in the Agreement; provided, however, that any information disclosed herein under any section number shall be deemed
to be disclosed and incorporated into any other section number under the Agreement where such disclosure would be appropriate and such
appropriateness is reasonably apparent from the face of such disclosure. Nothing in these Schedules is intended to broaden the scope of
any representation or warranty contained in the Agreement or to create any covenant. Unless otherwise set forth in the Agreement, inclusion
of any item in these Schedules (a) does not represent a determination that such item is material or establish a standard of materiality,
(b) does not represent a determination that such item did not arise in the ordinary course of business, (c) does not represent a determination
that the transactions contemplated by the Agreement require the consent of or application or filing with third parties, and (d) shall
not constitute, or be deemed to be, an admission to any third party concerning such item.

 

 

 

 

 

 

 

 

 

    	 	40	 

     

    

 

Schedule 3(a)

Organization and Qualification

 

	Subsidiary	Jurisdiction of Formation
	SBUD LLC	Colorado
	PBS HoldCo LLC	Colorado
	Schwazze Colorado LLC	Colorado
	Mesa Organics Ltd.	Colorado
	Mesa Organics II Ltd	Colorado
	Mesa Organics III Ltd	Colorado
	Mesa Organics IV Ltd	Colorado
	Medicine Man Consulting, Inc.	Colorado
	Two Js LLC	Colorado
	Double Brow, LLC	Colorado
	Mission Holding, LLC	Colorado
	SCG Holding, LLC	Colorado
	Schwazze Biosciences, LLC	Colorado 
	MIH Manager LLC 	Colorado 
	Schwazze IP Holdco LLC	Colorado
	Emerald Fields Merger Sub, LLC	Colorado
	Schwazze New Mexico, LLC	New Mexico
	Nuevo Holding, LLC	New Mexico
	Nuevo Elemental Holding, LLC	New Mexico

 

Pursuant to (i) the Loan Agreement, dated February 26, 2021 (as amended,
the “Altmore Loan Agreement”), by and among Mesa Organics Ltd., Mesa Organics II Ltd, Mesa Organics III Ltd, Mesa Organics
IV Ltd, SCG Holding, LLC, PBS Holdco LLC, SHWZ Altmore, LLC, as lender, and GGG Partners, LLC, as collateral agent, and (ii) the Security
Agreement, dated February 26, 2021 (the “Altmore Security Agreement”), by and among Mesa Organics Ltd., Mesa Organics
II Ltd, Mesa Organics III Ltd, Mesa Organics IV Ltd, SCG Holding, LLC and PBS Holdco LLC as grantors, pledgors, assignors and debtors
in favor of GGG Partners, LLC, as collateral agent under the Loan Agreement, each of the Subsidiaries party thereto have granted a security
interest in substantially all its assets and the following financing statements have been filed against the Subsidiaries party thereto:

 

		1.	Financing Statement No. 20212018984, filed on February 26, 2021, in favor of GGG Partners, LLC as collateral agent, against Mesa Organics
Ltd., as amended by Financing Statement, No. 20212101952, filed on October 18, 2021 (collectively, “Mesa Organics Ltd. Financing
Statement”).
		2.	Financing Statement No. 20212018980, filed on February 26, 2021, in favor of GGG Partners, LLC as collateral agent, against Mesa Organics
II Ltd, as amended by Financing Statement, No. 20212101955, filed on October 18, 2021 (collectively, “Mesa Organics II Ltd Financing
Statement”).
		3.	Financing Statement No. 20212018972, filed on February 26, 2021, in favor of GGG Partners, LLC as collateral agent, against Mesa Organics
III Ltd, as amended by Financing Statement, No. 20212018972, filed on October 18, 2021 (collectively, “Mesa Organics III Ltd
Financing Statement”).
		4.	Financing Statement No. 20212018974, filed on February 26, 2021, in favor of GGG Partners, LLC as collateral agent, against Mesa Organics
IV Ltd, as amended by Financing Statement, No. 20212018974, filed on October 18, 2021 (collectively, “Mesa Organics IV Ltd Financing
Statement”).
		5.	Financing Statement No. 20212018960, filed on February 26, 2021, in favor of GGG Partners, LLC as collateral agent, against SCG Holding,
LLC, as amended by Financing Statement, No. 20212018960, filed on October 18, 2021 (collectively, “SCG Holding Financing Statement”).
		6.	Financing Statement No. 20212018986, filed on February 26, 2021, in favor of GGG Partners, LLC as collateral agent, against PBS Holdco
LLC, as amended by Financing Statement, No. 20212018986, filed on October 18, 2021 (collectively, “PBS Holdco Financing Statement”).

 

 

 

 

    	 	41	 

     

    

 

Pursuant to the thirteen Asset Purchase Agreements, each dated as of
June 5, 2020, among, on the one hand, SBUD LLC and Medicine Man Technologies, Inc., and, on the other hand, one or more of Colorado Health
Consultants LLC, Starbuds Aurora LLC, SB Arapahoe LLC, Starbuds Commerce City LLC, Starbuds Pueblo LLC, Starbuds Alameda LLC, Citi-Med
LLC, Starbuds Louisville LLC, KEW LLC, Starbuds Louisville LLC, Lucky Ticket LLC, Starbuds Niwot LLC, LM MJC LLC, Mountain View 44th
LLC, and each equityholder party thereto, as amended by Omnibus Amendment No. 1, dated as of September 15, 2020, as further amended by
Omnibus Amendment No. 2 , dated as of December 17, 2020 (collectively, the “Star Buds Group Asset Purchase Agreements”),
and the Security Agreements listed below, each of Medicine Man Technologies, Inc. and SBUD LLC, have granted a security interest in substantially
all of its assets (collectively, the “Star Buds Group Security Agreements”):

 

		1.	Security Agreement, dated February 4, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and Colorado Health Consultants,
LLC, as the secured party.
		2.	Security Agreement, dated March 2, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and Starbuds Aurora LLC, as the secured
party.
		3.	Security Agreement, dated March 2, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and SB Arapahoe LLC, as the secured
party.
		4.	Security Agreement, dated December 18, 2020, by and among SBUD LLC, Medicine Man Technologies, Inc., and Starbuds Commerce City, as
the secured party.
		5.	Security Agreement, dated December 17, 2020, by and among SBUD LLC, Medicine Man Technologies, Inc., and Starbuds Pueblo LLC, as the
secured party.
		6.	Security Agreement, dated December 17, 2020, by and among SBUD LLC, Medicine Man Technologies, Inc., and Starbuds Alameda LLC, as
the secured party.
		7.	Security Agreement, dated March 2, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and Citi-Med LLC, as the secured
party.
		8.	Security Agreement, dated March 2, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and Starbuds Louisville LLC, as the
secured party.
		9.	Security Agreement, dated March 2, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and KEW LLC, as the secured party.

		10.	Security Agreement, dated December 18, 2020, by and among SBUD LLC, Medicine Man Technologies, Inc., and Lucky Ticket LLC, as the
secured party.
		11.	Security Agreement, dated December 18, 2020, by and among SBUD LLC, Medicine Man Technologies, Inc., and Starbuds Niwot LLC, as the
secured party
		12.	Security Agreement, dated December 18, 2020, by and among SBUD LLC, Medicine Man Technologies, Inc., and LM MJC LLC, as the secured
party.
		13.	Security Agreement, dated February 4, 2021, by and among SBUD LLC, Medicine Man Technologies, Inc., and Mountain View 44th
LLC, as the secured party

 

 

 

 

 

    	 	42	 

     

    

 

Schedule 3(b)

Authorization Enforcement; Validity

 

The following are stockholder agreements, voting agreements, or other
similar arrangements with respect to the Medicine Man Technologies, Inc.’s capital stock:

 

		1.	Dye Capital Cann Holdings, LLC (“Dye Capital Cann I”)

		a.	Securities Purchase Agreement, dated June 5, 2019, as amended by Amendment to Securities Purchase Agreement,
dated July 15, 2019, Amendment to Securities Purchase Agreement, dated May 20, 2020, and the Cann I Waiver (as defined below) (the “Dye
Cann I SPA”)

		b.	Consent, Waiver and Amendment dated December 16, 2020 (the “Cann I Waiver”)

		2.	Dye Capital Cann Holdings II, LLC

		a.	Securities Purchase Agreement, dated November 16, 2020, by and between Medicine
Man Technologies, Inc. and Dye Capital Cann Holdings II, LLC, as amended by the Amendment to Securities Purchase Agreement, dated December
16, 2020, as further amended by the Second Amendment to Securities Purchase Agreement, dated February 3, 2021, as amended by the Third
Amendment to Securities Purchase Agreement, dated March 30, 2021 (the “Dye Cann II SPA”)

		b.	Letter Agreement dated December 16, 2020 (the “Dye Cann II Side Letter”)

		3.	Star Buds Group

		a.	Star Buds Group Asset Purchase Agreements

		b.	Lock-Up Agreements with former direct or indirect owners of the Star Buds Group

		4.	CRW Cann Holdings, LLC (“CRW”)

		a.	Securities Purchase Agreement, dated February 26, 2021, by and between Medicine Man Technologies, Inc. and CRW

		b.	Letter Agreement, dated February 26, 2021, by and between Medicine Man Technologies, Inc. and CRW (the “CRW Letter Agreement”)

		5.	The Bylaws

		6.	Lock-Up Agreements and similar covenants with direct or indirect owners of assets and companies acquired or to be acquired by the
Company

 

The following are filings, consents or authorizations required by the
Company, any of the Guarantors, their respective Board of Directors or their respective stockholders for the execution and delivery of
the Agreement and the other Transaction Documents and consummation by the Company and the Guarantors of the transactions contemplated
thereby:

 

		1.	A waiver of certain covenants in the Dye Cann I SPA (the “Cann I SPA Waiver”), all of which have been obtained
before or as of the date of the Agreement

		2.	A waiver of certain covenants in the CRW Letter Agreement (the “CRW Letter Waiver”), all of which have been obtained
before or as of the date of the Agreement

		3.	Consents required under the Altmore Loan Agreement, the Altmore Security Agreement, the Star Buds Group Asset Purchase Agreements
and the Star Buds Group Security Agreements, which will be provided in the Intercreditor Agreement to be entered into at the Closing

		4.	Notices regarding piggyback registration rights to Priority Right Holders (notice only; no consent required)

		5.	Filings and authorizations required in connection with satisfying the registration rights under Section 4(k) of the Agreement

		6.	Filings and authorizations required in connection with satisfaction of the covenant in Section 4(f) of the Agreement

		7.	Filings related to perfecting the Buyers’ security interest in the Collateral

 

 

 

 

    	 	43	 

     

    

 

Schedule 3(d)

No Conflicts

 

The Company has obtained the following consents before or as of the
date of the Agreement:

 

		1.	The Cann I SPA Waiver

		2.	The CRW Letter Waiver

 

Consents required under the Altmore Loan Agreement, the Altmore Security
Agreement, the Star Buds Group Asset Purchase Agreements and the Star Buds Group Security Agreements will be provided in the Intercreditor
Agreement to be entered into at the Closing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	44	 

     

    

 

Schedule 3(f)

Acknowledgment Regarding Buyers’ Purchase
of Securities

 

		1.	Jeffrey Cozad, Jeffrey Garwood and Pratap Mukharji are directors of the Company and Buyers under the Agreement.

		2.	Marc Rubin is a Buyer under the Agreement and affiliated with CRW, an entity that is a significant holder
of the Company’s Series A Cumulative Convertible Preferred Stock and also a significant beneficial owner of the Common Stock. CRW
Capital, LLC is the manager of CRW and has voting and investment control over the shares beneficially owned by CRW. Jeffrey Cozad and
Marc Rubin are the managers of CRW Capital, LLC and share voting and investment control over the shares beneficially owned by CRW.

		3.	The Benchmark Company, LLC (“Benchmark”) is serving as the Company’s placement
agent in connection with the Agreement and the offer and sale of the Notes. Richard Messina, the owner of Benchmark, and David Lachtman,
a managing director in Benchmark’s investment banking department providing services to the Company in connection with the Agreement
and the offer and sale of the Notes, are Buyers under the Agreement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	45	 

     

    

 

Schedule 3(g)

No General Solicitation; Placement Agent Fees

 

The Company will pay the Placement Agent a cash fee equal to 1% of
the amount of debt proceeds actually received by the Company under the Agreement, payable upon the Closing, and reimburse the Placement
Agent for all documented reasonable and necessary travel and other out-of-pocket expenses of third parties incurred directly in connection
with the Placement Agent’s engagement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	46	 

     

    

 

Schedule 3(j)

SEC Documents; Financial Statements

 

		1.	Current Report on Form 8-K filed on December 23, 2020, reporting, among other things, an event that occurred on December 16, 2021.

 

		2.	Current Report on Form 8-K filed on February 1, 2021, reporting, among other things, an event that occurred on December 15, 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	47	 

     

    

 

Schedule 3(k)

Absence of Certain Changes

 

(i)

		1.	None.

 

(ii)

		1.	The Company sold an Apeks 5000 CO2 supercritical CO2 extraction system to a third party for $315,000 under a Purchase and Sale Agreement
dated January 13, 2021

 

(iii)

		1.	Aurora Delivery Vehicle $34,470.75

		2.	Bioscience - Biotage Selekt Chomatography $28,213.35

		3.	Ethanol Extraction Expansion $132,431.53

		4.	Retail Store Improvements $992,472.95

		5.	SCG - Bobcat 3600 $13,995.00

		6.	SCG - Building $1,926,966.00

		7.	SCG - Kubata RTV Sidekick $16,217.51

		8.	SCG - Kubota Sidekick $14,949.50

		9.	SCG - Kubota Tractor $23,750.00

		10.	SCG - SCG Truck $25,000.00

		11.	SCG Water Rights $166,666.66

		12.	Schwazze Van $153,285.00

		13.	X3 Implementation $674,968.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	48	 

     

    

 

Schedule 3(o)

Transaction with Affiliates

 

		1.	The Company has participated in several transaction with entities controlled by or affiliated with Justin
Dye, as disclosed below and under the heading “Certain Relationships and Related Transactions – Transactions with Entities
Affiliated with Justin Dye” in the Company’s proxy statement on Schedule 14A filed on November 4, 2021, and under the heading
“Transactions with Entities Affiliated with Justin Dye” in Item 1, Note 7 in the Company’s Quarterly Report on Form
10-Q, for the quarterly period ended September 30, 2021, filed on November 15, 2021, which disclosures are incorporated herein by reference.

 

		a.	Dye Cann I SPA, pursuant to which Dye Cann I purchased shares of Common Stock and warrants to purchase
shares of Common Stock
		b.	Cann I Waiver
		c.	Cann I SPA Waiver
		d.	Dye Cann II SPA, pursuant to which Cann II purchased shares of the Company’s Series A Cumulative
Convertible Preferred Stock
		e.	Dye Cann II Side Letter
		f.	Secured Convertible Note Purchase Agreement, dated December 16, 2020, with Dye Capital pursuant to which
the Company issued and sold to Dye Capital a Convertible Note and Security Agreement, and Conversion Notice and Agreement, dated February
26, 2021. pursuant to which the Company issued shares of Series A Cumulative Convertible Preferred Stock to Dye Capital upon conversion
of the Convertible Note and Security Agreement
		g.	Marketing services contract with Dekode Holdings, LLC d/b/a Tella. Justin Dye serves as the chairman of
and has an indirect ownership interest in Dekode Holdings, LLC d/b/a Tella

 

		2.	The Company has participated in a transaction with entities controlled by Jeffrey Cozad, as disclosed
below and under the heading “Certain Relationships and Related Transactions – Transactions with CRW and Affiliated Entities”
in the Company’s proxy statement on Schedule 14A filed on November 4, 2021, and under the heading “Transactions with CRW and
Affiliated Entities” in Item 1, Note 7 in the Company’s Quarterly Report on Form 10-Q, for the quarterly period ended September
30, 2021, filed on November 15, 2021which disclosures are incorporated herein by reference.

 

		a.	Securities Purchase Agreement, dated February 26, 2021, pursuant to which CRW purchased shares of the
Company’s Series A Cumulative Convertible Preferred Stock
		b.	CRW Letter Agreement
		c.	CRW Letter Waiver

 

		3.	Marketing services contract with Dekode Holdings, LLC d/b/a Tella. Nirup Krishnamurthy serves as the president
of and has an indirect ownership interest in Dekode Holdings, LLC d/b/a Tella

 

		4.	The Company has participated in several transactions with entities owned or affiliated with Brian Ruden
as disclosed below and under the heading “Certain Relationships and Related Transactions – Transactions with Entities Affiliated
with Brian Ruden” in the Company’s proxy statement on Schedule 14A filed on November 4, 2021 and under the heading “Transactions
with Entities Affiliated with Brian Ruden” in Item 1, Note 7 in the Company’s Quarterly Report on Form 10-Q, for the quarterly
period ended September 30, 2021, filed on November 15, 2021, which disclosures are incorporated herein by reference.

 

		a.	Star Buds Group Asset Purchase Agreements
		b.	Star Buds Group Security Agreements
		c.	Trademark License Agreement, dated December 17, 2020, with Star Brands LLC under which Star Brands LLC
licenses certain trademarks to SBUD LLC
		d.	Leases for dispensary locations between SBUD LLC and the following entities:

		i.	428 S. McCulloch LLC
		ii.	Colorado Real Estate Holdings LLC
		iii.	5844 Ventures LLC
		iv.	5238 W 44th LLC
		v.	14655 Arapahoe LLC
		vi.	Montview Real Estate LLC

 

 

 

    	 	49	 

     

    

 

Schedule 3(p)

Equity Capitalization

 

(i)

 

		1.	The right to participate in future issuances of securities and other rights under the Dye Cann I SPA and the CRW Letter Agreement.
		2.	Liens pursuant to the Altmore Loan Agreement, the Altmore Security Agreement, the Star Buds Group Asset Purchase Agreements and the
Star Buds Group Security Agreements

 

(ii)

 

		1.	Options to purchase 10,493,250 shares of Common Stock issued under the Company’s 2017 Equity Incentive Plan
		2.	Options to purchase 2,000,000 shares of Common Stock issued outside of the Company’s 2017 Equity Incentive Plan at $1.49 per
share
		3.	The right to receive 500,000 shares of Common Stock, which will vest at such time that the Company’s stock price appreciates
to $8.00 per share with defined minimum average daily trading volume thresholds
		4.	Warrants to purchase 17,018,750 shares of Common Stock
		5.	82,838 shares of Series A Cumulative Convertible Preferred Stock
		6.	Up to 4,428 shares of Series A Cumulative Convertible Preferred Stock held in escrow and issuable pursuant to the Star Buds Group
Asset Purchase Agreements
		7.	Asset Purchase Agreement, dated May 27, 2021, among (i) Medicine Man Technologies, Inc., (ii) SCG Holding, LLC, (iii) SCG Services,
LLC, and (iv) the members of SCG Services, LLC pursuant to which SCG Holding, LLC purchased certain assets for consideration constating
of approximately $1,200,000 in cash and 1,992,593 shares of Common Stock. The Company held back 10% of each of the cash portion and the
Common Stock portion of the purchase price as collateral for potential indemnification claims. Any portion of the held-back consideration
not used to satisfy indemnification claims will be released to the members of SCG Services, LLC on May 27, 2022.
		8.	Asset Purchase Agreement, dated June 25, 2021, among (i) Medicine Man Technologies, Inc., (ii) Double Brow, LLC, (ii) BG3 Investments,
LLC, (iii) Black Box Licensing, LLC, and (iv) Brian Searchinger, pursuant to which Double Brow, LLC will purchase certain assets for approximately
$3,500,000 payable in cash and shares of Common Stock. The Company will hold back $350,000 of the consideration as collateral for potential
indemnification claims. Any portion of the held-back consideration not used to satisfy indemnification claims will be released to the
sellers in installments on January 1, 2022, June 30, 20222 and December 31, 2022.
		9.	Asset Purchase Agreement, dated November 15, 2021, among (i) Double Brow, LLC, (ii) Medicine Man Technologies, Inc., (iii) Smoking
Gun, LLC (“Smoking Gun Seller”); (iv) Smoking Gun Land Company, LLC (“SG Land”) and (v) the members of Smoking
Gun Seller and SG Land pursuant to which Smoking Gun Seller and SG Land have agreed to sell their assets to Double Brow, LLC for consideration
consisting of $4,000,000 in cash, subject to adjustment and an earn out, and 100,000 shares of Common Stock.
		10.	Agreement and Plan of Merger, dated November 15, 2021, among (i) Medicine Man Technologies, Inc., (ii)
Emerald Fields Merger Sub, LLC, (iii) MCG, LLC and other parties pursuant to which Emerald Fields Merger Sub, LLC will merge with and
into MCG, LLC, with Emerald Fields Merger Sub, LLC continuing as the surviving entity for consideration of approximately
$29 million, payable 60% in cash and 40% in shares of Common Stock, subject to adjustments. The Company will escrow 8% of the merger consideration,
comprised of 60% cash and 40% Company common stock, as collateral for potential indemnification claims. Any portion of the escrowed merger
consideration not used to satisfy indemnification claims will be released to MCG, LLC’s owners 50% on the first anniversary of the
closing and any remaining amount on the 18-month anniversary of the closing.

 

 

 

 

    	 	50	 

     

    

 

(iii)

 

		1.	Altmore Loan Agreement
		2.	Altmore Security Agreement
		3.	Parent Guaranty, dated February 26, 2021, by and between Medicine Man Technologies, Inc. and GGG Partners, LLC
		4.	Intercompany Subordination Agreement, dated February 26, 2021, by and among by and
among Mesa Organics Ltd., Mesa Organics II Ltd, Mesa Organics III Ltd, Mesa Organics IV Ltd, SCG Holding, LLC, PBS Holdco LLC and GGG Partners, LLC
		5.	Intellectual Property Security Agreement, dated February 26, 2021, by and among
by and among Mesa Organics Ltd., Mesa Organics I Ltd, Mesa Organics II Ltd, Mesa Organics III Ltd, Mesa Organics IV Ltd, SCG Holding,
LLC, PBS Holdco LLC, and GGG Partners
		6.	Promissory Note, dated February 26, 2021, by and among by and among Mesa Organics
Ltd., Mesa Organics II Ltd, Mesa Organics III Ltd, Mesa Organics IV Ltd, SCG Holding, LLC, PBS Holdco LLC and SHWZ Altmore, LLC
		7.	Star Buds Group Asset Purchase Agreements
		8.	Star Buds Group Security Agreements.
		9.	Purchase Agreement, dated November 29, 2021, among (i) Medicine Man Technologies, Inc., (ii) Nuevo Holding, LLC, (iii) Nuevo Elemental
Holding, LLC, (iv) Reynold Greenleaf & Associates, LLC, (v) William N. Ford in his individual capacity and as Representative (as defined
therein), (vi) Elemental Kitchen and Labs, LLC, and (vii) the equityholders named therein pursuant to which Nuevo Holding, LLC and Nuevo
Elemental Holding, LLC have agreed to purchase certain assets of Reynold Greenleaf & Associates, LLC and the equity interest in Elemental
Kitchen and Labs, LLC for aggregate consideration of $42,000,000, subject to adjustment and an earn out, payable $25,000,000 in cash and
$17,000,000 in the form of a promissory note issued by Nuevo Holding, LLC and Nuevo Elemental Holding, LLC to Reynold Greenleaf &
Associates, LLC (the “Nuevo Purchase Agreement”).

 

(iv)

 

		1.	Mesa Organics Ltd. Financing Statement.
		2.	Mesa Organics II Ltd Financing Statement.
		3.	Mesa Organics III Ltd Financing Statement.
		4.	Mesa Organics IV Ltd Financing Statement.
		5.	SCG Holding Financing Statement.
		6.	PBS Holdco Financing Statement.
		7.	Financing Statement, No. 2020113904, filed on July 6, 2020, in favor of Eplus Technology, Inc., against Medicine Man Technologies,
Inc.

 

(v)

 

		1.	Registration rights set forth in the Dye Cann I SPA
		2.	Registration rights set forth in the Dye Cann II SPA
		3.	Registration rights set forth in the Securities Purchase Agreement, dated February 26, 2021, by and between Medicine Man Technologies,
Inc. and CRW Cann Holdings (“CRW SPA”)

 

(vi)

 

		1.	The Company’s Series A Cumulative Convertible Preferred Stock
		2.	The Bylaws

 

(viii)

 

		1.	The Company’s 2017 Equity Incentive Plan

 

Stock Options Granted Outside the Company’s 2017 Equity Incentive
Plan

 

		1.	Options to purchase 2,000,000 shares of Common Stock at $1.49 per share

 

 

 

    	 	51	 

     

    

 

Schedule 3(q)

Indebtedness and Other Contracts

 

(i)

 

		1.	Approximately $44,250,000 in deferred cash consideration, which earns interest, owed under the Star Buds Group Asset Purchase Agreements
(the “Star Buds Group Debt”)
		2.	Approximately $15,000,000 owed under the Altmore Loan Agreement (the “Altmore Debt”)
		3.	The disclosures set forth on Schedule 3(p)(ii), (iii) and (iv) are incorporated herein by reference
		4.	Asset Purchase Agreement, dated June 25, 2021, among (i) Double Brow, LLC, (ii) Brow 2, LLC and (iii) Brian Welsh pursuant to which
Double Brow, LLC will purchase certain assets for approximately $6,700,000 payable in cash. The Company will hold back $500,000 of the
consideration as collateral for potential indemnification claims. Any portion of the held-back consideration not used to satisfy indemnification
claims will be released to the seller on the first anniversary of the closing.
		5.	Parent Guaranty, dated February 26, 2021, by and between Medicine Man Technologies, Inc. and GGG Partners, LLC
		6.	Real property leases for the following locations:

 

	Location	Total Capital Lease Obligation as of 11/30/2021
	Big Tomato	$124,262 
	CitiMedd	$135,468 
	Purplebee's (Baxter Rd)	$1,591,493 
	Pueblo East (Hwy 50 East)	$198,937 
	Ordway	$309,457 
	Rocky Ford	$309,457 
	Las Animas	$309,457 
	Louisville	$212,753 
	Pueblo	$110,196 
	Pecos-NW Denver/Lucky Ticket	$230,720 
	CitioMed	$75,580 
	Brighton	$165,265 
	Niwot	$144,009 
	Aurora	$147,248 
	Pueblo West/Alameda	$106,217 
	Arapahoe/SE Aurora	$291,362 
	Longmont	$84,936 
	Federal Heights/KEW	$437,160 
	Commerce City	$106,217 
	Lakeside	$113,976 
	West 2nd Avenue Distribution Center	$2,179,995 

 

(ii)

 

		1.	The Nuevo Purchase Agreement

 

 

 

 

    	 	52	 

     

    

 

Schedule 3(ff)

Other Covered Person

 

		1.	The Placement Agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	53	 

     

    

 

Schedule 3(hh)

Title

 

		1.	The Altmore Loan Agreement, the Altmore Security Agreement, the Star Buds Group Asset Purchase Agreements and the Star Buds Group
Security Agreements
		2.	Liens on the Real Property granted by Persons other than the Company and its Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	54	 

     

    

 

Schedule 3(ii)

Fixtures and Equipment

 

Liens arising under or related to the Altmore Loan Agreement, the Altmore
Security Agreement, the Star Buds Group Asset Purchase Agreements and the Star Buds Group Security Agreements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	55	 

     

    

 

Schedule 3(ss)

Ranking Notes

 

		1.	Star Buds Group Debt

		2.	Altmore Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	56	 

     

    

 

Schedule 4(k)(i)(3)

Priority Right Holder

 

		1.	Registration rights set forth in the Dye Cann I SPA

		2.	Registration rights set forth in the Dye Cann II SPA

		3.	Registration rights set forth in CRW SPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	57	 

     

    

 

Schedule 4(o)(iii)

Deposit Accounts

 

 

	Company	Bank	Address	Account Number	Account Type
	
     

    Medicine Man Technologies Inc.
	[Redacted] 	
     

    [Redacted]
	[Redacted]	Investment Account
	
     

    Two J’s LLC

     
	
     

    [Redacted]
	
     

    [Redacted]
	[Redacted]	Checking Account 
	
     

    Double Brow, LLC
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    Checking Account

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	58	 

     

    

 

EXHIBIT A

 

FORM OF INDENTURE

 

(See attached.)

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT B

 

FORM
OF Security Agreement

 

(See attached.)

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT C

 

FORM OF SECRETARY’S CERTIFICATE

 

(See attached.)

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

SECRETARY’S CERTIFICATE

MEDICINE MAN TECHNOLOGIES, INC.

 

December [_], 2021

 

This Secretary’s Certificate
is delivered pursuant to Section 6(a)(iv) of the Securities Purchase Agreement (the “Agreement”), dated as of
December 3, 2021, by and among Medicine Man Technologies, Inc., a Nevada corporation (the “Company”), Double Brow,
LLC, a Colorado limited liability company (“Double Brow”), Mission Holding, LLC, a Colorado limited liability company
(“Mission”), SCG Holding, LLC, a Colorado limited liability company (“SCG”), Schwazze Colorado LLC,
a Colorado limited liability company (“Schwazze Colorado”), Schwazze Biosciences, LLC, a Colorado limited liability
company (“Schwazze Bio”), SBUD LLC, a Colorado limited liability company (“SBUD”), Medicine Man
Consulting, Inc., a Colorado corporation (“Consulting”), Two J’s LLC d/b/a The Big Tomato, a Colorado limited
liability company (“Two J’s”), Mesa Organics Ltd. d/b/a Star Buds/Purplebee’s, a Colorado limited liability
company (“Mesa I”), Mesa Organics II Ltd, a Colorado limited liability company (“Mesa II”), Mesa
Organics III Ltd, a Colorado limited liability company (“Mesa III”), Mesa Organics IV Ltd, a Colorado limited liability
company (“Mesa IV”), Schwazze IP Holdco LLC, a Colorado limited liability company (“Schwazze IP”),
MIH Manager LLC, a Colorado limited liability company (“MIH”), Emerald Fields Merger Sub, LLC, a Colorado limited liability
company (“Emerald Fields”), PBS Holdco LLC, d/b/a Star Buds/Purplebee’s, a Colorado limited liability company
(“PBS Holdco”), Nuevo Holding, LLC, a New Mexico limited liability company (“Nuevo Holding”), Nuevo
Elemental Holding, LLC, a New Mexico limited liability company (“Nuevo Elemental”), and Schwazze New Mexico, LLC, a
New Mexico limited liability company (“Schwazze NM” and, collectively with Double Brow, Mission, SCG, Schwazze Colorado,
Schwazze Bio, SBUD, Consulting, Two J’s, Mesa I, Mesa II, Mesa III, Mesa IV, Schwazze IP, MIH Emerald Fields, PBS Holdco, Nuevo
Holding and Nuevo Elemental, the “Guarantors”) and each of the investors listed on the Schedule of Buyers attached
thereto.

 

The undersigned, does hereby
certify in his capacity as Secretary of Company, that he has been duly elected and qualified as, and at this date, is, the Secretary of
the Company and that:

 

1.                  
Attached hereto as Exhibit A is a complete and accurate copy of the Company’s Articles of Incorporation as filed with
the Secretary of State of the State of Nevada, as amended (the “Articles”), and the Articles have not been further
amended, modified or rescinded and remain in full force and effect on the date hereof.

 

2.                  
Attached hereto as Exhibit B is a complete and accurate copy of the Company’s Amended and Restated Bylaws (the “Bylaws”),
and the Bylaws have not been amended, modified or rescinded and remain in full force and effect on the date hereof.

 

3.                  
Attached hereto as Exhibit C is a complete and accurate copy of the resolutions of the board of directors of the Company
and each Guarantor approving the execution and delivery of the Agreement and the other Transaction Documents to which each is a party
and the consummation by the Company and the Guarantors of the transactions contemplated thereby, and such resolutions have not been amended,
modified or rescinded since their adoption and remain in full force and effect on the date hereof.

 

[Signature Page to Follow]

 

 

 

 

 

 

 

    	 	C-1	 

     

    

 

IN WITNESS WHEREOF, the undersigned
has executed this Secretary’s Certificate on the date first written above.

 

 

By:_____________________________________

Dan Pabon, Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to the Secretary’s Certificate]

    	 	C-2	 

     

    

 

Exhibit A

 

Articles of Incorporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	C-3	 

     

    

 

Exhibit B

 

Bylaws

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	C-4	 

     

    

 

Exhibit C

 

Resolutions of the Board of Directors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	C-5	 

     

    

 

EXHIBIT D

 

FORM OF OFFICER’S CERTIFICATE

 

(See attached.)

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

MEDICINE MAN TECHNOLOGIES, INC.

 

OFFICER’S CERTIFICATE

 

Dated: December [_],
2021

 

This Officer’s Certificate
is made and delivered by Medicine Man Technologies, Inc., a Nevada corporation (the “Company”), pursuant to Section
6(a)(vi) of the Securities Purchase Agreement (the “Agreement”), dated as of December 3, 2021, by and among the
Company, Double Brow, LLC, a Colorado limited liability company (“Double Brow”), Mission Holding, LLC, a Colorado limited
liability company (“Mission”), SCG Holding, LLC, a Colorado limited liability company (“SCG”), Schwazze
Colorado LLC, a Colorado limited liability company (“Schwazze Colorado”), Schwazze Biosciences, LLC, a Colorado limited
liability company (“Schwazze Bio”), SBUD LLC, a Colorado limited liability company (“SBUD”), Medicine
Man Consulting, Inc., a Colorado corporation (“Consulting”), Two J’s LLC d/b/a The Big Tomato, a Colorado limited
liability company (“Two J’s”), Mesa Organics Ltd. d/b/a Star Buds/Purplebee’s, a Colorado limited liability
company (“Mesa I”), Mesa Organics II Ltd, a Colorado limited liability company (“Mesa II”), Mesa
Organics III Ltd, a Colorado limited liability company (“Mesa III”), Mesa Organics IV Ltd, a Colorado limited liability
company (“Mesa IV”), Schwazze IP Holdco LLC, a Colorado limited liability company (“Schwazze IP”),
MIH Manager LLC, a Colorado limited liability company (“MIH”), Emerald Fields Merger Sub, LLC, a Colorado limited liability
company (“Emerald Fields”), PBS Holdco LLC, d/b/a Star Buds/Purplebee’s, a Colorado limited liability company
(“PBS Holdco”), Nuevo Holding, LLC, a New Mexico limited liability company (“Nuevo Holding”), Nuevo
Elemental Holding, LLC, a New Mexico limited liability company (“Nuevo Elemental”), and Schwazze New Mexico, LLC, a
New Mexico limited liability company (“Schwazze NM,” and, collectively with Double Brow, Mission, SCG, Schwazze Colorado,
Schwazze Bio, SBUD, Consulting, Two J’s, Mesa I, Mesa II, Mesa III, Mesa IV, Schwazze IP, MIH, Emerald Fields, PBS Holdco, Nuevo
Holding, and Nuevo Elemental, the “Guarantors”) and each of the investors listed on the Schedule of Buyers attached
thereto. Any capitalized terms used but not otherwise defined herein shall have the meaning ascribed thereto in the Agreement.

 

The undersigned, Justin Dye,
Chief Executive Officer of the Company does hereby certify on behalf of Company in such capacity as follows:

 

1.                 
All representations and warranties of Company set forth in the Agreement are true and correct as of the date when made and as of
the Closing as though made at that time (except for representations and warranties that speak as of a specific date which shall be true
and correct as of such specified date).

 

2.                 
The Company has performed, satisfied and complied in all material respects with the covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing.

 

 

[Signature Page Follows]

 

 

 

 

 

 

 

    	 	D-1	 

     

    

 

IN WITNESS WHEREOF, the
undersigned has executed this Officer’s Certificate as of the date first written above.

 

MEDICINE MAN TECHNOLOGIES, INC.

 

By:______________________

Name: Justin Dye

Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Officer’s Certificate]

    	 	D-2	 

     

    

 

EXHIBIT E

 

FORM OF JOINDER AGREEMENT

 

Reference is made to the Securities Purchase Agreement, dated as of
December 3, 2021 (as may be amended from time to time, the “Securities Purchase Agreement”), by and among Medicine Man Technologies,
Inc., d/b/a/ Schwazze, a Colorado corporation, and the other parties thereto, if any. The undersigned agrees, by execution hereof, to
become a party to, and to be subject to the rights and obligations under the Securities Purchase Agreement.

 

[NAME]

 

By: __________________________________

Name:

Title:

 

Date:

 

Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	E-1Exhibit 10.2

 

 

CERTAIN INFORMATION IDENTIFIED BY “[REDACTED]” HAS BEEN
EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT, dated
as of December 7, 2021 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the
provisions hereof, this “Agreement”) made by and among Medicine Man Technologies, Inc., d/b/a Schwazze (the
“Issuer”), a Nevada corporation, Double Brow, LLC, a Colorado limited liability company, Mission Holding, LLC,
a Colorado limited liability company, SCG Holding, LLC, a Colorado limited liability company, Schwazze Colorado LLC, a Colorado limited
liability company, Schwazze Biosciences, LLC, a Colorado limited liability company, SBUD LLC, a Colorado limited liability company, Medicine
Man Consulting, Inc., a Colorado corporation, Two J’s LLC d/b/a The Big Tomato, a Colorado limited liability company, Mesa Organics
Ltd. d/b/a StarBuds/Purplebee’s, a Colorado limited liability company, Mesa Organics II Ltd, a Colorado limited liability company,
Mesa Organics III Ltd, a Colorado limited liability company, Mesa Organics IV Ltd, a Colorado limited liability company, Schwazze IP Holdco
LLC, a Colorado limited liability company, MIH Manager LLC, a Colorado limited liability company, PBS Holdco LLC, d/b/a StarBuds/Purplebee’s,
a Colorado limited liability company, Emerald Fields Merger Sub, LLC, a Colorado limited liability company, Schwazze New Mexico, LLC,
a New Mexico limited liability company, Nuevo Holding, LLC, a New Mexico limited liability company, and Nuevo Elemental Holding, LLC,
a New Mexico limited liability company, as grantors, pledgors, assignors, debtors and guarantors (together with any successors in such
capacities, and together with the Issuer, the “Grantors”, and each, a “Grantor”),
in favor of Chicago Atlantic Admin LLC, in its capacity as collateral agent pursuant to the Indenture (as hereinafter defined), as pledgee,
assignee and secured party (in such capacities and together with any successors in such capacities, the “Collateral Agent”).

 

RECITALS

 

A.       The
Issuer has authorized a new series of Senior Secured Convertible Notes (the “Notes”) pursuant to the Indenture
(hereinafter defined). The parties have, in connection with the execution and delivery of this Agreement, entered into the (i) Securities
Purchase Agreement (the “Purchase Agreement”), dated as of the same date herewith, by and among the Grantors
and the “Buyers” (as defined in the Purchase Agreement) and (ii) Indenture, dated as of the date hereof (as
amended, amended and restated, supplemented or otherwise modified from time to time, the “Indenture”) among
the Grantors, Chicago Atlantic Admin, LLC, as Agent and Ankura Trust Company, LLC, as Trustee; capitalized terms used but not otherwise
defined herein shall have the meanings assigned to such terms in the Indenture.

 

B.       Each
Grantor will receive substantial direct and indirect benefits from the execution, delivery and performance of the obligations under the
Indenture and the other Note Documents and each is, therefore, willing to enter into this Agreement.

 

C.       This
Agreement is given by each Grantor in favor of the Collateral Agent for the ratable benefit of the Secured Parties to secure the payment
and performance of all of the Secured Obligations.

 

D.       It
is a condition to the obligations of the Buyers to purchase the Notes under the Purchase Agreement, that each Grantor execute and deliver
the applicable Note Documents, including this Agreement.

 

NOW THEREFORE, in consideration
of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each
Grantor and the Collateral Agent hereby agree as follows:

 

 

 

 

    	 	1	 

     

    

 

Article
I

DEFINITIONS AND INTERPRETATION

 

Section 1.01      
Definitions. Unless otherwise defined herein or in the Indenture, capitalized terms used herein
that are defined in the UCC shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC
differently than in another Article of the UCC, the term has the meaning specified in Article 9. The following terms shall have the following
meanings:

 

“Agreement”
has the meaning set forth in the Preamble hereof.

 

“Claims”
means any and all property and other taxes, assessments and special assessments, levies, fees and all governmental charges imposed upon
or assessed against, and landlords’, carriers’, mechanics’, workmen’s, repairmen’s, laborers’, materialmen’s,
suppliers’ and warehousemen’s Liens and other claims arising by operation of law against, all or any portion of the Collateral.

 

“Collateral”
has the meaning set forth in Section 2.01.

 

“Collateral Agent”
has the meaning set forth in the Preamble hereof.

 

“Collateral Support”
means all Property assigned, hypothecated or otherwise securing any Collateral and shall include any security agreement or other agreement
granting a Lien or security interest in such Property.

 

“Contested Liens”
means, collectively, any Liens incurred in respect of any Claims to the extent that the amounts owing in respect thereof are not yet delinquent
or are being contested in good faith and with proper reserves established with respect thereto in accordance with GAAP and otherwise comply
with the provisions of Section 4.13; provided, however, that such Liens shall in all respects be subject and subordinate in priority to
the Lien and security interest created by this Agreement, except if and to the extent that the law or regulation creating, permitting
or authorizing such Lien provides that such Lien must be superior to the Lien and security interest created and evidenced hereby.

 

“Contracts”
means, collectively, with respect to each Grantor, the Intellectual Property Licenses, all sale, service, performance, equipment or property
lease contracts, agreements and grants and all other contracts, agreements or grants (in each case, whether written or oral, or third
party or intercompany), between such Grantor and any third party, and all assignments, amendments, restatements, supplements, extensions,
renewals, replacements or modifications thereof.

 

“Control”
means (i) with respect to any Deposit Account, “control,” within the meaning of Section 9-104 of the UCC, (ii)
with respect to any Securities Account or Security Entitlement, control within the meaning of Section 9-106 of the UCC, (iii) with respect
to any Uncertificated Security, control within the meaning of Section 8-106(c) of the UCC, (iv) with respect to any Certificated Security,
control within the meaning of Section 8-106(a) or (b) of the UCC, (v) with respect to any Electronic Chattel Paper, control within the
meaning of Section 9-105 of the UCC, (vi) with respect to Letter-of-Credit Rights, control within the meaning of Section 9-107 of the
UCC, and (vii) with respect to any “transferable record” (as that term is defined in Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in
any relevant jurisdiction), control within the meaning of Section 201 of the Federal Electronic Signatures in Global and National Commerce
Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in the jurisdiction relevant to such transferable record.

 

 

 

 

    	 	2	 

     

    

 

“Copyrights”
means, collectively, with respect to each Grantor, all copyrights (whether statutory or common law, whether established or registered
in the United States or any other country or any political subdivision thereof, whether registered or unregistered and whether published
or unpublished) including those listed in Schedule 6 hereof, all tangible embodiments of the foregoing and all copyright registrations
and applications made by such Grantor, in each case, whether now owned or hereafter created or acquired by or assigned to such Grantor,
together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect
to such Grantor’s use of such copyrights, (ii) reissues, renewals, continuations and extensions thereof and amendments thereto,
(iii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto, including damages
and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights
to sue for past, present or future infringements thereof.

 

“Deposit Account
Control Agreement” means an agreement in such form and substance as is reasonably satisfactory to the Collateral Agent establishing
the Collateral Agent’s Control with respect to any Deposit Account.

 

“Deposit Accounts”
means, collectively, with respect to each Grantor, all “deposit accounts” as such term is defined in the UCC,
now or hereafter held in the name of such Grantor.

 

“Distributions”
means, collectively, with respect to each Grantor, all dividends, cash, options, warrants, rights, instruments, distributions, returns
of capital or principal, income, interest, profits and other property, interests (debt or equity) or proceeds, including as a result of
a split, revision, reclassification or other like change of the Pledged Securities, from time to time received, receivable or otherwise
distributed or distributable to such Grantor in respect of or in exchange for any or all of the Pledged Securities or Pledged Debt.

 

“Excluded Accounts”
means (i) Deposit Accounts used solely as trust, fiduciary, escrow or tax payment (including, without limitation, sales tax payment) accounts
solely for the benefit of the Grantors, (ii) Deposit Accounts used solely for payroll, payroll taxes and other employee wage or employee
benefit payments to or for the benefit of any Grantors’ employees, and (iii) Deposit Accounts which individually, at any time, have
a balance of less than $10,000, and together, at any time, have an aggregate balance of less than $50,000.

 

“Excluded Property”
means, collectively:

 

(i)               
[reserved]

 

(ii)             
any United States intent-to-use Trademark applications to the extent that, and solely during the period in which, the grant, attachment
or enforcement of a security interest therein would, under applicable federal law, impair the registrability of such applications or the
validity or enforceability of registrations issuing from such applications;

 

(iii)           
motor vehicles and other assets subject to certificates of title (other than to the extent a Lien thereon can be perfected by the
filing of a financing statement under the UCC);

 

(iv)           
those assets as to which the Collateral Agent shall reasonably determine, in writing, that the cost of obtaining a Lien thereon
or perfection thereof are excessive in relation to the benefit to the Secured Parties of the security to be afforded thereby;

 

(v)            
any asset or property to the extent that the grant of a security interest is prohibited by applicable law, rule or regulation or
requires a consent not obtained of any Governmental Authority pursuant to such applicable law, rule or regulation, in each case after
giving effect to the applicable anti-assignment provisions of the UCC and other applicable law and other than Proceeds and receivables
thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition;

 

 

 

 

    	 	3	 

     

    

 

(vi)           
[reserved];

 

(vii)          
any voting equity interests of any Foreign Subsidiary in excess of 66-2⁄3% of such voting equity interests, but only if adverse
tax consequences would result by pledging all of such voting equity interests of such Foreign Subsidiary;

 

(viii)         
Commercial Tort Claims with a value of less than $100,000 in the aggregate;

 

(ix)           
any Excluded Accounts;

 

(x)            
assets or equity interests to which the granting or perfecting of such a security interest would violate any applicable law (including,
without limitation, any state or local cannabis and cannabis related laws and regulations) or contract or rights of a Person to such assets
or equity interests, but only so long as such grant or perfection would violate any such Applicable Law or contract or the rights of a
Person to such assets or equity interests;

 

(xi)           
any marijuana products, including marijuana flower, trim, concentrate or infused product, and any marijuana related assets other
than Cannabis Licenses (“Cannabis Inventory”) to the extent granting or perfecting of such a security interest
would violate any applicable law (including, without limitation, any state or local cannabis and cannabis related laws and regulations);

 

(xii)          
any cannabis, cannabis-related, hemp or hemp-related permits or licenses (collectively, the “Cannabis Licenses”)
issued by any United States of America, Canadian or off-shore governmental or quasi-governmental agency, whether federal, state, local
or otherwise, in each case to the extent such Cannabis License cannot be transferred pursuant to applicable law, provided that: (i) if
the Issuer is permitted at any time to transfer a Cannabis License, such License shall be pledged by a Grantor as Collateral hereunder,
and (ii) if the Issuer is permitted at any time to transfer a Cannabis License a Grantor shall not be permitted to pledge the applicable
License to any other Person;

 

(xiii)         
Letter of Credit Rights (other than those that constitute Supporting Obligations as to other Collateral) with a value of less than
$100,000 in the aggregate;

 

To the extent that such property
constitutes “Excluded Property” due to the failure of a Grantor to obtain consent as described in subsections
(v), such Grantor shall use commercially reasonable efforts to obtain such consent, and, upon obtaining such consent, such property shall
cease to constitute “Excluded Property”.

 

“First Priority”
means, with respect to any Lien purported to be created in any Collateral pursuant to this Agreement, such Lien is the most senior lien
to which such Collateral is subject (subject only to Liens permitted under the Indenture).

 

“Grantor”
has the meaning set forth in the Preamble hereof.

 

“Indenture”
has the meaning set forth in the first Recital hereof.

 

 

 

 

    	 	4	 

     

    

 

“Intellectual
Property Collateral” means, collectively, the Patents, Trademarks (excluding only United States intent-to-use Trademark
applications to the extent that and solely during the period in which the grant of a security interest therein would impair, under applicable
federal law, the registrability of such applications or the validity or enforceability of registrations issuing from such applications),
Copyrights, Trade Secrets, Intellectual Property Licenses and all other industrial, intangible and intellectual property of any type,
including mask works and industrial designs.

 

“Intellectual
Property Licenses” means, collectively, with respect to each Grantor, all license and distribution agreements (excluding
any commercially available “off-the-shelf software licenses) with, and covenants not to sue, any other party with respect to any
Patent, Trademark, Copyright or Trade Secret or any other patent, trademark, copyright or trade secret, whether such Grantor is a licensor
or licensee, distributor or distributee under any such license or distribution agreement, including such agreements listed in Schedule
6 hereof, together with any and all (i) renewals, extensions, supplements and continuations thereof, (ii) income, fees, royalties, damages,
claims and payments now and hereafter due and/or payable thereunder and with respect thereto including damages and payments for past,
present or future infringements or violations thereof, (iii) rights to sue for past, present and future infringements or violations thereof
and (iv) other rights to use, exploit or practice any or all of the Patents, Trademarks, Copyrights or Trade Secrets or any other patent,
trademark, copyright or trade secret.

 

“Intellectual
Property Security Agreement” means an agreement substantially in the form of Exhibit D hereto.

 

“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the date hereof among the Grantors, the Collateral Agent, GGG Partners,
LLC, as Credit Agreement Collateral Agent, the StarBuds Seller Secured Parties party thereto and the StarBuds Seller Secured Parties Collateral
Agent (as amended, restated, supplemented, substituted, replaced or otherwise modified from time to time in accordance with the terms
thereof and under the Indenture).

 

“Joinder Agreement”
means an agreement substantially in the form of Exhibit A hereto.

 

“Material Contract”
means with respect to any Person, any contract or agreement to which party involving aggregate consideration payable by or to such Person
equal to at least $1,000,000 annually or otherwise material to the business, condition (financial or otherwise), operations, performance,
properties, prospects of such Person.

 

“Material Adverse
Effect” means any fact, occurrence, circumstance, event or change that, individually or in the aggregate, has had, or would
reasonably be expected to have, a material adverse effect on the business, properties, assets, liabilities, operations, results of operations,
or condition (financial or otherwise) of the Issuer and its Subsidiaries (as defined in the Indenture) taken as a whole, or on the transactions
contemplated hereby or by the other Note Documents or by the agreements and instruments to be entered into in connection herewith or therewith,
or on the authority or ability of the Issuer to perform any of its obligations under any of the Transaction Documents.

 

“Note Documents”
has the meaning set forth in the Indenture.

 

“Patents”
means, collectively, with respect to each Grantor, all patents issued or assigned to, and all patent applications and registrations made
by, such Grantor including those listed in Schedule 6 hereof (whether issued, established or registered or recorded in the United States
or any other country or any political subdivision thereof) and all tangible embodiments of the foregoing, together with any and all (i)
rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor’s use
of any patents, (ii) inventions and improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals, extensions
and continuations-in-part thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or hereafter
due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements thereof,
(v) rights corresponding thereto throughout the world and (vi) rights to sue for past, present or future infringements thereof.

 

 

 

 

    	 	5	 

     

    

 

“Pledged Debt”
means, with respect to each Grantor, all Debt (including intercompany notes but excluding any Debt permitted under the Indenture or Debt
owed to an Affiliate of a Grantor incurred in the ordinary course of business) from time to time owed to such Grantor by any obligor,
including the Debt described in Schedule 2 hereof and issued by the obligors named therein, and all interest, cash, instruments and other
property, assets or proceeds from time to time received, receivable or otherwise distributed or distributable in respect of or in exchange
for any or all of such Debt and all certificates, instruments or agreements evidencing such Debt, and all assignments, amendments, restatements,
supplements, extensions, renewals, replacements or modifications thereof.

 

“Pledged Securities”
means, collectively, with respect to each Grantor, (i) all issued and outstanding Equity Interests of each issuer that are owned by such
Grantor and all options, warrants, rights, agreements and additional Equity Interests of whatever class of any such issuer acquired by
such Grantor in any manner, together with all claims, rights, privileges, authority and powers of such Grantor relating to such Equity
Interests in each such issuer or under any Organizational Document of each such issuer, and the certificates, instruments and agreements
representing such Equity Interests and any and all interest of such Grantor in the entries on the books of any financial intermediary
pertaining to such Equity Interests, including the Equity Interests listed in Schedule 2 hereof, (ii) all additional Equity
Interests of any issuer from time to time acquired by or issued to such Grantor and all options, warrants, rights, agreements and additional
Equity Interests of whatever class of any such issuer from time to time acquired by such Grantor in any manner, together with all claims,
rights, privileges, authority and powers of such Grantor relating to such Equity Interests or under any Organizational Document of any
such issuer, and the certificates, instruments and agreements representing such Equity Interests and any and all interest of such Grantor
in the entries on the books of any financial intermediary pertaining to such Equity Interests, from time to time acquired by such Grantor
in any manner, and (iii) all Equity Interests issued in respect of the Equity Interests referred to in subsection (i) or (ii) upon any
consolidation or merger of any issuer of such Equity Interests/all Equity Interests of any successor Subsidiary owned by such Grantor
(unless such Grantor is the surviving entity) formed by or resulting from any consolidation or merger in which any Person listed in Schedule
2 hereof is not the surviving entity.

 

“Purchase Agreement”
has the meaning set forth in Preamble A.

 

“Receivables”
means all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv) Instruments, (v) General Intangibles, and (vi) to the extent
not otherwise covered above, all other rights to payment, whether or not earned by performance, for goods or other property sold, leased,
licensed, assigned or otherwise disposed of, or services rendered or to be rendered, regardless of how classified under the UCC together
with all of Grantors’ rights, if any, in any goods or other property giving rise to such right to payment and all Collateral Support
and Supporting Obligations related thereto and all Records relating thereto.

 

“Related Parties”
means, with respect to any Person, such Person’s Affiliates and the directors, officers, employees, partners, agents, trustees,
administrators, managers, advisors and representatives of it and its Affiliates.

 

“Secured Obligations”
means (i) the Obligations of the Grantors from time to time arising under the Indenture, and (ii) to the extent not deemed to be included
in the immediately preceding clause (i), the due and prompt payment of (A) the principal of and premium, if any, and interest (including
interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed
or allowable in such proceeding (“Postpetition Interest”)) on each Note, when and as due, whether at maturity,
by acceleration, upon one or more dates set for prepayment or otherwise and (B) all other monetary obligations, including fees, costs,
attorneys’ fees and disbursements, reimbursement obligations, contract causes of action, expenses and indemnities, whether primary,
secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless
of whether allowed or allowable in such proceeding), of the Grantors and any other parties under or in respect of any Note Document, and
(iii) the due and prompt performance of all other covenants, duties, debts, obligations and liabilities of any kind of the Grantors and
any other parties, individually or collectively, under or in respect of the Indenture, the Purchase Agreement, this Agreement, the other
Note Documents or any other document made, delivered or given in connection with any of the foregoing, in each case whether evidenced
by a note or other writing, whether allowed in any bankruptcy, insolvency, receivership or other similar proceeding, whether arising from
an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether primary,
secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise.

 

 

 

 

    	 	6	 

     

    

 

“Secured Parties”
means, collectively, the Collateral Agent, the Trustee and each holder of Notes.

 

“Securities Collateral”
means, collectively, the Pledged Securities, the Pledged Debt, and the Distributions.

 

“Trade Secrets”
means, collectively, with respect to each Grantor, all know-how, trade secrets, manufacturing and production processes and techniques,
inventions, research and development information, technical, marketing, financial and business data and databases, pricing and cost information,
business and marketing plans, customer and supplier lists and information, all other confidential and proprietary information and all
tangible embodiments of the foregoing, together with any and all (i) rights and privileges arising under applicable law and international
treaties and conventions with respect to such trade secrets, (ii) income, fees, royalties, damages, claims and payments now or hereafter
due and/or payable with respect thereto including damages and payments for past, present or future misappropriations thereof, (iii) rights
corresponding thereto throughout the world and (iv) rights to sue for past, present or future misappropriations thereof.

 

“Trademarks”
means, collectively, with respect to each Grantor, all trademarks (including service marks), slogans, logos, symbols, certification marks,
collective marks, trade dress, uniform resource locators (URL’s), domain names, corporate names and trade names, whether statutory
or common law, whether registered or unregistered and whether established or registered in the United States or any other country or any
political subdivision thereof, including those listed in Schedule 6 hereof, that are owned by or assigned to such Grantor, all registrations
and applications for the foregoing and all tangible embodiments of the foregoing, together with, in each case, the goodwill symbolized
thereby and any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect
to such Grantor’s use of any trademarks, (ii) reissues, continuations, extensions and renewals thereof and amendments thereto, (iii)
income, fees, royalties, damages and payments now and hereafter due and/or payable thereunder and with respect thereto, including damages,
claims and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world, and (v)
rights to sue for past, present and future infringements thereof.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if by reason of mandatory
provisions of law, any or all of the perfection or priority of the Collateral Agent’s security interest in any item or portion of
the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC”
means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating
to such perfection or priority and for purposes of definitions relating to such provisions.

 

Section 1.01      
Interpretation. The rules of interpretation specified in the Indenture shall be applicable to this Agreement. All references
in this Agreement to Sections are references to Sections of this Agreement unless otherwise specified.

 

Section 1.02      
Resolution of Drafting Ambiguities. Each Grantor acknowledges and agrees that it was represented by counsel
in connection with the execution and delivery of this Agreement, that it and its counsel reviewed and participated in the preparation
and negotiation of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting
party (i.e., the Collateral Agent) shall not be employed in the interpretation of this Agreement.

 

Section 1.03      
Schedules. The Collateral Agent and each Grantor agree that the Schedules hereof and all descriptions of Collateral
contained in the Schedules and all amendments and supplements thereto are and shall at all times remain a part of this Agreement.

 

 

 

 

    	 	7	 

     

    

 

Article
II

Grant of security interest

 

Section 2.01      
Grant of Security Interest. As collateral security for the payment and performance in full of all the Secured Obligations,
each Grantor hereby pledges to the Collateral Agent for the ratable benefit of the Secured Parties, and grants to the Collateral Agent
for the ratable benefit of the Secured Parties a Lien on and security interest in and to, all of the right, title and interest of such
Grantor in, to and under the following property, wherever located, and whether now existing or hereafter arising or acquired from time
to time (collectively, the “Collateral”):

 

(a)              
all Accounts;

 

(b)              
all Equipment, Goods, Inventory and Fixtures;

 

(c)              
all Documents, Instruments and Chattel Paper;

 

(d)              
all Letters of Credit and Letter-of-Credit Rights;

 

(e)              
all Securities Collateral;

 

(f)               
all Investment Property;

 

(g)              
all Intellectual Property Collateral;

 

(h)              
all General Intangibles;

 

(i)               
all Money and all Deposit Accounts;

 

(j)               
all Supporting Obligations;

 

(k)              
all transferable Cannabis Licenses;

 

(l)               
all Cannabis Inventory;

 

(m)            
all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records
relating to the Collateral and any General Intangibles at any time evidencing or relating to any of the foregoing; and

 

(n)              
to the extent not covered by subsections (a) through (k) of this sentence, all other assets, personal property and rights of such
Grantor, whether tangible or intangible, all Proceeds and products of each of the foregoing and all accessions to, substitutions and replacements
for, and rents, profits and products of, each of the foregoing, and any and all Proceeds of any insurance, indemnity, warranty or guaranty
payable to such Grantor from time to time with respect to any of the foregoing.

 

 

 

 

    	 	8	 

     

    

 

Notwithstanding anything to
the contrary contained in subsections (a) through (l) above, the security interest created by this Agreement shall not extend to, and
the term “Collateral” shall not include, any Excluded Property, provided that, if any Excluded Property would
have otherwise constituted Collateral, when such property shall cease to be Excluded Property, such property shall be deemed at all times
from and after the date hereof to constitute Collateral. All Collateral that constitutes Regulated Marijuana, as defined in Code of Colorado
Regulations 1 CCR 212-3, is subject to all required suitability and application requirements of Code of Colorado Regulations 1 CCR 212-3.

 

The Grantors shall from time
to time at the reasonable request of the Collateral Agent give written notice to the Collateral Agent identifying in reasonable detail
the Excluded Property (and stating in such notice that such Excluded Property constitutes “Excluded Property”)
and shall provide to the Collateral Agent such other information regarding the Excluded Property as the Collateral Agent may reasonably
request.

 

From and after the Closing
Date, no Grantor shall permit to become effective, in any lease or Material Contract, a provision that would prohibit or require the consent
of any Person to the grant of a Lien on such lease or Material Contract or other agreement in favor of the Collateral Agent.

 

Section 2.02      
Filings.

 

(a)              
Each Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in any relevant jurisdiction
any financing statements (including fixture filings) and amendments thereto that contain the information required by Article 9 of the
UCC of each applicable jurisdiction for the filing of any financing statement or amendment relating to the Collateral, including (i) whether
such Grantor is an organization, the type of organization and any organizational identification number issued to such Grantor, (ii) any
financing or continuation statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting
the security interest granted by such Grantor hereunder, without the signature of such Grantor where permitted by law, including the filing
of a financing statement describing the Collateral as “all assets now owned or hereafter acquired by the Debtor or in which
the Debtor otherwise has rights, together with all proceeds and products thereof, wherever located” or words of similar
meaning and (iii) in the case of a financing statement filed as a fixture filing or covering Collateral constituting minerals or the like
to be extracted or timber to be cut, a sufficient description of the real property to which such Collateral relates. Each Grantor agrees
to provide all information described in the immediately preceding sentence to the Collateral Agent promptly upon request by the Collateral
Agent.

 

(b)              
Each Grantor hereby further authorizes the Collateral Agent to file with the United States Patent and Trademark Office and the
United States Copyright Office (and any successor office and any similar office in any United States state or other country) this Agreement,
Intellectual Property Security Agreement, and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting
the security interest granted by such Grantor hereunder, without the signature of such Grantor where permitted by law, and naming such
Grantor as debtor, and the Collateral Agent as secured party.

 

Article
III

Perfection and further assurances

 

Section 3.01      
Perfection of Certificated Securities Collateral. Subject to the Intercreditor Agreement, each Grantor represents and
warrants that all certificates, agreements or instruments representing or evidencing the Securities Collateral in existence on the date
hereof have been delivered to the Collateral Agent in suitable form for transfer by delivery or accompanied by duly executed undated
instruments of transfer or assignment in blank and that (assuming continuing possession by the Collateral Agent of any such Securities
Collateral) the Collateral Agent has a perfected First Priority security interest therein. Subject to the Intercreditor Agreement, each
Grantor hereby agrees that all certificates, agreements or instruments representing or evidencing the Securities Collateral acquired
by such Grantor after the date hereof, shall promptly upon (and in any event within 10 days following) receipt thereof by such Grantor
be held by or on behalf of and delivered to the Collateral Agent in suitable form for transfer by delivery or accompanied by duly executed
undated instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent.

 

 

 

 

    	 	9	 

     

    

 

Subject to the Intercreditor
Agreement, the Collateral Agent shall have the right, at any time upon the occurrence and during the continuance of any Event of Default,
to endorse, assign or otherwise transfer to or to register in the name of the Collateral Agent or any of its nominees or endorse for negotiation
any or all of the Securities Collateral, without any indication that such Securities Collateral is subject to the security interest hereunder; provided,
that after any such Event of Default has been waived in accordance with the provisions of the Indenture and to the extent the Collateral
Agent has exercised its rights under this sentence, the Collateral Agent shall, promptly after the reasonable request of the applicable
Grantor(s), cause such Securities Collateral to be transferred to, or request that such Securities Collateral is registered in the name
of, the applicable Grantor(s) to the extent it or its nominees holds an interest in such Securities Collateral at such time. In addition,
subject to the Intercreditor Agreement, at any time, the Collateral Agent shall have the right to exchange certificates representing or
evidencing Securities Collateral for certificates of smaller or larger denominations.

 

Section 3.02      
Perfection of Uncertificated Securities Collateral. Each Grantor represents and warrants that, subject to the Intercreditor
Agreement, the Collateral Agent has a perfected First Priority security interest in all uncertificated Pledged Securities pledged by
it hereunder that are in existence on the date hereof. Each Grantor hereby agrees that, subject to the Intercreditor Agreement, if reasonably
requested by the Collateral Agent, request the issuer of such Pledged Securities to cause such Pledged Securities to become certificated
and in the event such Pledged Securities become certificated, to deliver such Pledged Securities to the Collateral Agent in accordance
with the provisions of Section 3.01. Each Grantor hereby agrees, with respect to Pledged Securities that are partnership interests or
limited liability company interests, that after the occurrence and during the continuance of any Event of Default, subject to the Intercreditor
Agreement, upon request by the Collateral Agent, such Grantor will (A) cause the Organizational Documents of each issuer that is a Subsidiary
of a Grantor to be amended to provide that such Pledged Securities shall be treated as “securities” for purposes of
the UCC and (B) cause such Pledged Securities to become certificated and delivered to the Collateral Agent in accordance with the provisions
of Section 3.01.

 

Section 3.03      
Maintenance of Perfected Security Interest. Each Grantor represents and warrants that on the date hereof all financing
statements, agreements (including any Intellectual Property Security Agreement), instruments and other documents necessary to perfect
the security interest granted by it to the Collateral Agent in respect of the Collateral have been delivered to the Collateral Agent
in completed and, to the extent necessary or appropriate, duly executed (if applicable) form for filing in each governmental, municipal
or other office specified in Schedule 3 hereof. Each Grantor agrees that at its sole cost and expense, such Grantor will, subject to
the Intercreditor Agreement, maintain the security interest created by this Agreement in the Collateral as a perfected First Priority
security interest.

 

Section 3.04      
Other Actions for Perfection. In order to further insure the attachment, perfection and priority of, and the ability
of the Collateral Agent to enforce, the Collateral Agent’s security interest in the Collateral, each Grantor represents and warrants
(as to itself) as follows and agrees, in each case at such Grantor’s own expense, to take the following actions with respect to
the following Collateral:

 

(a)              
Instruments and Tangible Chattel Paper. (i) As of the date hereof, no amounts payable in excess of $25,000 to such Grantor
under or in connection with any of the Collateral are evidenced by any Instrument or Tangible Chattel Paper other than Instruments and
Tangible Chattel Paper listed on Schedule 4 hereof and (ii) each Instrument and each item of Tangible Chattel Paper listed on Schedule
4 hereof, has been properly endorsed, subject to the Intercreditor Agreement, assigned and delivered to the Collateral Agent, accompanied
by undated instruments of transfer or assignment duly executed in blank. If any amount then payable under or in connection with any of
the Collateral shall, subject to the Intercreditor Agreement, be evidenced by any Instrument or Tangible Chattel Paper, the Grantor acquiring
such Instrument or Tangible Chattel Paper shall promptly (but in any event within ten Business Days after receipt thereof by such Grantor)
endorse, assign and deliver the same to the Collateral Agent, accompanied by such undated instruments of transfer or assignment duly executed
in blank as the Collateral Agent may from time to time specify.

 

(b)              
Deposit Accounts. (i) As of the date hereof, no Grantor has opened or maintains any Deposit Accounts other than the accounts
listed in Schedule 8 hereof and (ii) subject to the Intercreditor Agreement, the Collateral Agent has a perfected First Priority security
interest in each Deposit Account listed in Schedule 8 hereof which security interest is perfected by Control. No Grantor shall hereafter
establish and maintain any Deposit Account unless (1) the applicable Grantor shall have given the Collateral Agent 15 days prior written
notice of its intention to establish such new Deposit Account with a depository bank, and (2) unless the Collateral Agent agrees in writing
that it is not required, such depository bank and such Grantor shall within 15 days of the opening of such new Deposit Account deliver
to Collateral Agent an executed Deposit Account Control Agreement with respect to such Deposit Account. Subject to the Intercreditor Agreement,
no Grantor shall grant Control of any Deposit Account to any Person other than the Collateral Agent.

 

 

 

 

    	 	10	 

     

    

 

(c)              
Investment Property.

 

(i)                
As of the date hereof, (1) no Grantor has any Securities Accounts or Commodity Accounts, and (2) no Grantor holds, owns or has
any interest in any certificated securities or uncertificated securities other than those constituting Pledged Securities. No Grantor
shall hereafter establish or maintain any Securities Account or Commodity Account with any Securities Intermediary or Commodity Intermediary
unless (A) the applicable Grantor shall have given the Collateral Agent 30 days prior written notice of its intention to establish such
new Securities Account or Commodity Account with such Securities Intermediary or Commodity Intermediary, and (B) unless the Collateral
Agent agrees in writing that it is not required, such Securities Intermediary or Commodity Intermediary, as the case may be, and such
Grantor shall within 15 days of opening such Commodity Account with such Securities Intermediary or Commodity Intermediary deliver to
Collateral Agent a duly executed control agreement in form and substance reasonably acceptable with respect to such Securities Account
or Commodity Account, as the case may be. Each Grantor shall accept any cash and Investment Property in trust for the benefit of the Collateral
Agent and within ten (10) Business Days of actual receipt thereof, deposit any and all cash and Investment Property received by it into
a Deposit Account or Securities Account subject to the Collateral Agent’s Control. No Grantor shall grant Control over any Investment
Property to any Person other than the Collateral Agent.

 

(ii)             
If any Grantor shall at any time hold or acquire any certificated securities constituting Investment Property, such Grantor shall,
subject to the Intercreditor Agreement, promptly (1) endorse, assign and deliver the same to the Collateral Agent, accompanied by such
undated instruments of transfer or assignment duly executed in blank, all in form and substance reasonably satisfactory to the Collateral
Agent or (2) deliver such securities into a Securities Account with respect to which a control agreement in form and substance acceptable
to the Collateral Agent is in effect in favor of the Collateral Agent.

 

(iii)           
If any securities now or hereafter acquired by any Grantor constituting Investment Property are uncertificated and are issued to
such Grantor or its nominee directly by the issuer thereof, such Grantor shall promptly notify the Collateral Agent thereof and, subject
to the Intercreditor Agreement,pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either
(1) cause the issuer to agree to comply with instructions from the Collateral Agent as to such securities, without further consent of
any Grantor or such nominee, (2) cause a Security Entitlement with respect to such uncertificated security to be held in a Securities
Account with respect to which the Collateral Agent has Control or (3) arrange for the Collateral Agent to become the registered owner
of such securities.

 

(d)              
Electronic Chattel Paper and Transferable Records. As of the date hereof, no amount under or in connection with any of the
Collateral is evidenced by any Electronic Chattel Paper or any “transferable record” (as that term is defined
in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions
Act as in effect in any relevant jurisdiction) in excess of $100,000 other than such Electronic Chattel Paper and transferable records
listed on Schedule 4 hereof.

 

Each Grantor will maintain
all (i) Electronic Chattel Paper in excess of $100,000 so that, subject to the Intercreditor Agreement, the Collateral Agent has Control
of the Electronic Chattel Paper and (ii) all transferable records so that, subject to the Intercreditor Agreement, the Collateral Agent
has Control of the transferable records.

 

(e)              
Letter-of-Credit Rights. If any Grantor is at any time a beneficiary under a Letter of Credit now or hereafter issued in
favor of such Grantor, such Grantor shall promptly notify the Collateral Agent thereof and such Grantor shall maintain all Letter-of-Credit
Rights (when the value of such Letter of Credit Rights, when combined with all such other Letter of Credit Rights, exceeds $100,000 in
the aggregate) subject to the Intercreditor Agreement, assigned to the Collateral Agent so that the Collateral Agent has Control of the
Letter-of-Credit Rights.

 

 

 

 

    	 	11	 

     

    

 

(f)               
Commercial Tort Claims. On the date hereof, no Grantor holds any Commercial Tort Claim which might reasonably result in
awarded damages (less any and all legal and other expenses incurred or reasonably expected to be incurred by such Grantor) in excess of
$100,000 that is not listed on Schedule 9. Each Grantor will promptly give notice to the Collateral Agent of any Commercial Tort Claim
(when the value of such Commercial Tort Claim, when combined with all such other Commercial Tort Claims, exceeds $100,000 in the aggregate)
that is commenced in the future and will immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take
all necessary action, to subject such Commercial Tort Claim to, subject to the Intercreditor Agreement, the First Priority security interest
created under this Agreement.

 

(g)              
Landlord’s Access Agreements/Bailee Letters. Each Grantor shall obtain as soon as practicable after the date hereof
with respect to each location where such Grantor maintains Collateral in excess of $100,000, a bailee letter and/or landlord access agreement,
as applicable, and use commercially reasonable efforts to obtain a bailee letter, landlord access agreement and/or landlord’s lien
waiver, as applicable, from all such bailees and landlords, as applicable, who from time to time have possession of Collateral in the
ordinary course of such Grantor’s business and if requested by the Collateral Agent.

 

Section 3.05      
Joinder of Additional Grantors. The Grantors shall cause each Subsidiary of a Grantor which, from time to time, after
the date hereof shall be required to pledge any assets to the Collateral Agent for the ratable benefit of the Secured Parties pursuant
to the provisions of the Indenture, to execute and deliver to the Collateral Agent a Joinder Agreement within 30 days of the date on
which it was acquired or created and, upon such execution and delivery, such Subsidiary shall constitute a “Grantor”
for all purposes hereunder with the same force and effect as if originally named as a Grantor herein. Upon the execution and delivery
by any Subsidiary of a Joinder Agreement, the supplemental schedules attached to such Joinder Agreement shall be incorporated into and
become part of and supplement the Schedules to this Agreement and each reference to such Schedules shall mean and be a reference to such
Schedules as supplemented pursuant to each Joinder Agreement and from time to time. The execution and delivery of such Joinder Agreement
shall not require the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force
and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

 

Section 3.06      
Further Assurances.

 

(a)              
Further Assurances. Each Grantor shall take such further actions, and execute and/or deliver to the Collateral Agent such
additional financing statements, amendments, assignments, agreements, supplements, powers and instruments, as the Collateral Agent may
deem necessary or appropriate in order to create and/or maintain the validity, perfection or priority of and protect any security interest
granted or purported to be granted in the Collateral as provided herein and the rights and interests granted to the Collateral Agent hereunder,
and enable the Collateral Agent to exercise and enforce its rights, powers and remedies hereunder with respect to any Collateral, including
the filing of any financing statements, continuation statements and other documents under the UCC (or other similar laws) in effect in
any jurisdiction with respect to the security interest created hereby, the filing of any Intellectual Property Security Agreement and
any supplemental Intellectual Property Security Agreements with the United States Patent and Trademark Office and the United States Copyright
Office and the execution and delivery of control agreements in favor of the Collateral Agent with respect to Securities Accounts, Commodities
Accounts and Deposit Accounts, all in a form satisfactory to the Collateral Agent and in such offices wherever required by law to perfect,
continue and maintain the validity, enforceability and priority of the security interest in the Collateral as provided herein and to preserve
the other rights and interests granted to the Collateral Agent hereunder, as against third parties, with respect to the Collateral. Without
limiting the generality of the foregoing, but subject to applicable law, each Grantor shall make, execute, endorse, acknowledge, file
or refile and/or deliver to the Collateral Agent from time to time upon request by the Collateral Agent such lists, schedules, descriptions
and designations of the Collateral, statements, copies of warehouse receipts, bills of lading, documents of title, vouchers, invoices,
schedules, confirmatory assignments, supplements, additional security agreements, conveyances, subject to the Intercreditor Agreement,
financing statements, transfer endorsements, powers of attorney, certificates, reports and other assurances or instruments as the Collateral
Agent shall reasonably request. If an Event of Default has occurred and is continuing, subject to the Intercreditor Agreement, the Collateral
Agent may institute and maintain, in its own name or in the name of any Grantor, such suits and proceedings as the Collateral Agent may
deem necessary or expedient to prevent any impairment of the security interest in or the perfection thereof in the Collateral. All of
the foregoing shall be at the sole cost and expense of the Grantors.

 

 

 

    	 	12	 

     

    

 

(b)              
Report. Within 30 days after the request of the Collateral Agent, but no more frequently than once per calendar quarter,
the Grantors shall furnish the Collateral Agent with a report listing for such quarter:

 

(i)              
any Subsidiary formed or acquired by any Grantor;

 

(ii)             
any certificated securities, uncertificated securities, other equity interests or Debt not held in a Securities Account acquired
by any Grantor;

 

(iii)            
any change in name or jurisdiction of organization of any Grantor as permitted by the Note Documents;

 

(iv)             
any new location of Inventory or Equipment of any Grantor;

 

(v)              
all Promissory Notes, Instruments or Chattel Paper in excess of $100,000 received by any Grantor;

 

(vi)            
any Securities Account, Commodities Account or Deposit Account opened by any Grantor;

 

(vii)           
all applications for and registration received by any Grantor in respect of any Intellectual Property;

 

(viii)          
any Letter of Credit Rights in excess of $100,000 acquired by any Grantor; and

 

(ix)            
any Commercial Tort Claims in excess of $100,000 acquired by any Grantor.

 

Article
IV

Representations, warranties and covenants

 

Each Grantor represents, warrants
and covenants as follows:

 

Section 4.01      
[Reserved]

 

Section 4.02      
Ownership of Property and No Other Liens.

 

(a)              
Each Grantor has fee simple title to, or a valid leasehold interest in, all its real property, and good title to, or a valid leasehold
interest in, all its Collateral, and none of such property is subject to any Lien, claim, option or right of others, except for the security
interest granted to the Collateral Agent for the ratable benefit of the Secured Parties and Liens permitted under the Indenture. No Person
other than the Collateral Agent has control or possession of all or any part of the Collateral, except as permitted by the Indenture and
the Intercreditor Agreement.

 

(b)              
None of the Collateral constitutes, or is the Proceeds of, (i) Farm Products, (ii) As-Extracted Collateral, (iii) Manufactured
Homes, (iv) Health-Care-Insurance Receivables, (v) timber to be cut, (vi) aircraft, aircraft engines, satellites, ships or railroad rolling
stock. None of the account debtors or other Persons obligated on any of the Collateral is a Governmental Authority covered by the Federal
Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral.

 

 

 

 

    	 	13	 

     

    

 

Section 4.03      
Perfected First Priority Security Interest. This Agreement is effective to create in favor of the Collateral Agent
for the ratable benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral and the Proceeds thereof.
In the case of the certificated Pledged Securities, subject to the Intercreditor Agreement, when stock certificates representing such
Pledged Securities are delivered to the Collateral Agent and in the case of the other Collateral, when financing statements and other
filings specified on Schedule 3 hereof in appropriate form are filed in the offices specified on Schedule 3 hereof and other actions
described in Schedule 3 hereof are taken, this Agreement shall constitute, and will at all times constitute, a fully perfected Lien on,
and security interest in, all rights, title and interest of the Grantors in such Collateral and the Proceeds thereof, as security for
the Secured Obligations.

 

Section 4.04      
No Transfer of Collateral. No Grantor shall sell, offer to sell, dispose of, convey, assign or otherwise transfer,
or grant any option with respect to, restrict, or grant, create, permit or suffer to exist any Lien on, any of the Collateral pledged
by it hereunder or any interest therein except as permitted by the Indenture.

 

Section 4.05      
Claims Against Collateral. Each Grantor shall, at its own cost and expense, defend title to the Collateral and the
security interest and Lien granted to the Collateral Agent with respect thereto against all claims and demands of all Persons at any
time claiming any interest therein adverse to the Collateral Agent or any other Secured Party other than Liens permitted under the Indenture.
Except as expressly permitted by the Indenture, there is no agreement to which any Grantor is a party, order, judgment or decree, and
no Grantor shall enter into any agreement or take any other action, that could reasonably be expected to restrict the transferability
of any of the Collateral or otherwise impair or conflict with such Grantors’ obligations or the rights of the Collateral Agent
hereunder.

 

Section 4.06      
Other Financing Statements. No financing statement or other instrument similar in effect covering all or any part of
the Collateral or listing such Grantor as debtor is on file in any recording office, except such as have been filed in favor of the Collateral
Agent pursuant to this Agreement or as otherwise permitted under the Indenture. No Grantor shall execute, authorize or permit to be filed
in any recording office any financing statement or other instrument similar in effect covering all or any part of the Collateral or listing
such Grantor as debtor with respect to all or any part of the Collateral, except financing statements and other instruments filed in
respect of Liens permitted under the Indenture.

 

Section 4.07      
Changes in Name, Jurisdiction of Organization, Etc.

 

(a)              
On the date hereof, such Grantor’s type of organization, jurisdiction of organization, legal name, current tradenames, former
tradenames, Federal Taxpayer Identification Number, and chief executive office or principal place of business are indicated next to its
name in Schedule 5 hereof. Schedule 5 also lists all of such Grantor’s jurisdictions and types of organization, legal names and
locations of chief executive office or principal place of business at any time during the four months preceding the date hereof, if different
from those referred to in the preceding sentence.

 

(b)              
Such Grantor shall not, except upon not less than 30 days’ prior written notice, or such lesser notice period agreed to by
the Collateral Agent, to the Collateral Agent, and delivery to the Collateral Agent of all additional financing statements, information
and other documents reasonably requested by the Collateral Agent or the Administrative Agent to maintain the validity, perfection and
priority of the security interests provided for herein:

 

(i)              
change its legal name, identity, type of organization or corporate structure;

 

(ii)             
change the location of its chief executive office or its principal place of business;

 

(iii)            
change its Federal Taxpayer Identification Number; or

 

(iv)             
change its jurisdiction of organization (in each case, including by merging with or into any other entity, reorganizing, organizing,
dissolving, liquidating, reincorporating or incorporating in any other jurisdiction).

 

 

 

 

    	 	14	 

     

    

 

Such Grantor shall, prior
to any change described in Section 4.07(b), take all actions requested by the Collateral Agent to maintain the perfection and priority
of the security interest of the Collateral Agent for the ratable benefit of the Secured Parties in the Collateral intended to be granted
hereunder. Each Grantor agrees to promptly provide the Collateral Agent with certified organizational documents reflecting any of the
changes described in this Section 4.07.

 

Section 4.08      
Location of Inventory and Equipment.

 

(a)              
On the date hereof, the Inventory and the Equipment (other than mobile goods and goods in transit) of such Grantor are kept at
locations listed in Schedule 5 hereof. Schedule 5 also lists the locations of such Grantor’s Inventory and the Equipment (other
than mobile goods and goods in transit) for the four months preceding the date hereof, if different from those referred in the preceding
sentence.

 

(b)              
Such Grantor shall not move any Equipment or Inventory with a value in excess of $100,000 to any location, other any location
that is listed in Schedule 5 hereof except upon not less than 30 days’ prior written notice, or such lesser notice period agreed
to by the Collateral Agent, to the Collateral Agent, of its intention so to do, clearly describing such new location and providing such
other information and documents to the Collateral Agent reasonably requested by the Collateral Agent to maintain the validity, perfection
and priority of the security interests provided for herein.

 

(c)              
Such Grantor shall, prior to any change described in Section 4.08(a), take all actions requested by the Collateral Agent to maintain
the perfection and priority of the security interest of the Collateral Agent for the ratable benefit of the Secured Parties in the Collateral,
if applicable; provided that, in no event shall any Equipment or Inventory of any Grantor be moved to any location outside of the continental
United States.

 

(d)              
Schedule 10 sets forth for each Grantor (a) all real property owned or leased by such Grantor, (b) if such property is leased,
the landlord and the term of the lease, and (c) if such property is held in fee, the holder of any lien on such real property.

 

(e)              
Schedule 11 sets forth for each Grantor all of the motor vehicles owned by such Grantor, identifying (a) the unit and VIN numbers,
(b) the state where such vehicle is titled, (c) any existing lienholders and (d) the make, model and year of such vehicle. Schedule 11
sets forth for each Grantor all aircraft and boats and all other inventory, equipment and other goods of the Grantor which are subject
to any certificate of title or other registration statute of the United States, and state or any other jurisdiction, and provides a description
of such goods and indicates the registration system and jurisdiction of such goods.

 

Section 4.09      
Pledged Securities and Pledged Debt.

 

(a)              
Schedule 2 sets forth a complete and accurate list of all Pledged Securities and Pledged Debt held by such Grantor as of the date
hereof. The Pledged Securities pledged by such Grantor hereunder constitute all of the issued and outstanding Equity Interests of each
issuer owned by such Grantor. Such Equity Interests represent all of the outstanding Equity Interests of each such issuer which is a
Subsidiary except as noted in such Schedule. All of the Pledged Securities existing on the date hereof have been, and to the extent any
Pledged Securities are hereafter issued, such Pledged Securities will be, upon such issuance, duly authorized, validly issued, fully
paid and non-assessable. There is no amount or other obligation owing by any Grantor to any issuer of the Pledged Securities in exchange
for or in connection with the issuance of the Pledged Securities or any Grantor’s status as a partner or a member of any issuer
of the Pledged Securities. No Grantor is in default or violation of any material provisions of any agreement to which such Grantor is
a party relating to the Pledged Securities.

 

(b)              
All of the Pledged Debt described on Schedule 2 has been duly authorized, authenticated or issued, and delivered and is the legal,
valid and binding obligation of the issuers thereof, enforceable in accordance with their respective terms (subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at law)) and is not in default. The Pledged
Debt constitutes all of the issued and outstanding intercompany indebtedness owing to such Grantor and if evidenced by promissory notes,
subject to the Intercreditor Agreement, such notes have been delivered to the Collateral Agent.

 

 

 

 

    	 	15	 

     

    

 

(c)              
No Securities Collateral pledged by such Grantor is subject to any defense, offset or counterclaim, nor have any of the foregoing
been asserted or alleged against such Grantor by any Person with respect thereto, and there are no certificates, instruments, documents
or other writings (other than the organizational documents and certificates representing such Pledged Securities or Pledged Debt, if
any, that, subject to the Intercreditor Agreement, have been delivered to the Collateral Agent) which evidence any Pledged Securities
or Pledged Debt of such Grantor.

 

(d)              
Each Grantor shall, upon obtaining any Pledged Securities or Pledged Debt of any Person, accept the same in trust for the benefit
of the Collateral Agent and, subject to the Intercreditor Agreement, promptly (but in any event within ten Business Days after receipt
thereof) deliver to the Collateral Agent an updated Schedule 2, and the certificates and other documents required under Section 3.01
and Section 3.02 in respect of the additional Pledged Securities or Pledged Debt which are to be pledged pursuant to this Agreement,
and confirming the Lien hereby created on such additional Pledged Securities or Pledged Debt.

 

Section 4.10      
Approvals. In the event that the Collateral Agent desires to exercise any remedies, voting or consensual rights or
attorney-in-fact powers set forth in this Agreement and determines it necessary to obtain any approvals or consents of any Governmental
Authority or any other Person therefor, then, subject to the Intercreditor Agreement, upon the request of the Collateral Agent, such
Grantor agrees to assist the Collateral Agent in obtaining as soon as practicable any necessary approvals or consents for the exercise
of any such remedies, rights and powers.

 

Section 4.11      
Collateral Information. All information sets forth herein, including the schedules annexed hereto, and all information
contained in any documents, schedules and lists heretofore delivered to the Collateral Agent or any Secured Party, in connection with
this Agreement, in each case, relating to the Collateral, is accurate and complete. The Collateral described on the schedules hereof
constitutes all of the property of such type of Collateral owned or held by the Grantors. Schedule 12 sets forth all policies of insurance
for each Grantor.

 

Section 4.12      
Insurance. In the event that the proceeds of any insurance claim are paid to any Grantor after the Collateral Agent
has exercised its right to foreclose on all or any part of the Collateral during the existence of an Event of Default, such Net Cash
Proceeds shall be held in trust for the benefit of the Collateral Agent and, subject to the Intercreditor Agreement, immediately after
receipt thereof shall be paid to the Collateral Agent for application in accordance with the Indenture.

 

Section 4.13      
Compliance With Laws. Schedule 13 set forth all the Cannabis Licenses and certain Cannabis Inventory necessary to each
Grantor’s grow operations, if any. Each Grantor shall pay promptly when due all Claims upon the Collateral or incurred in connection
with the use or operation of the Collateral or incurred in connection with this Agreement. All Claims imposed upon or assessed against
the Collateral have been paid and discharged except to the extent such Claims constitute a Lien not yet due and payable which is a Contested
Lien or a Lien permitted by the Indenture. In the event any Grantor shall fail to make such payment contemplated in the immediately preceding
sentence, the Collateral Agent may (following notice to the Grantor, to the extent practicable) do so for the account of such Grantor
and the Grantors shall promptly reimburse and indemnify the Collateral Agent for all costs and expenses incurred by the Collateral Agent
under this Section 4.13 in accordance with Section 9.08. Each Grantor shall comply with all legal requirements applicable to the Collateral
the failure to comply with which would reasonably be expected to, individually or in the aggregate, materially impact the value of any
substantial portion of the Collateral.

 

Section 4.14      
Intellectual Property.

 

(a)              
Schedule 6 lists all patents and pending applications, registered trademarks and pending applications, registered domain names,
registered copyrights and pending applications and material Intellectual Property Licenses owned by such Grantor;

 

(b)              
all Intellectual Property Collateral is valid, subsisting, unexpired and enforceable and has not been abandoned;

 

(c)              
except as described on Schedule 6 such Grantor is the exclusive owner of all right, title and interest in and to, or has the right
to use, all such Intellectual Property Collateral;

 

 

 

 

    	 	16	 

     

    

 

(d)              
consummation and performance of this Agreement will not result in the invalidity, unenforceability or impairment of any such Intellectual
Property Collateral, or in default or termination of any material Intellectual Property License;

 

(e)              
except as described on Schedule 6, there are no outstanding holdings, decisions, consents, settlements, decrees, orders, injunctions,
rulings or judgments that would limit, cancel or question the validity or enforceability of any such Intellectual Property Collateral
or such Grantor’s rights therein or use thereof;

 

(f)               
to such Grantor’s knowledge, except as described on Schedule 6, the operation of such Grantor’s business and such
Grantor’s use of Intellectual Property Collateral in connection therewith, does not materially infringe or misappropriate the intellectual
property rights of any other Person;

 

(g)              
except as described in Schedule 6, no action or proceeding is pending or, to such Grantor’s actual knowledge after due inquiry,
threatened (i) seeking to limit, cancel or question the validity of any Intellectual Property Collateral or such Grantor’s ownership
interest or rights therein, (ii) which, if adversely determined, could materially impact the value of any such Intellectual Property
Collateral or (iii) alleging that any such Intellectual Property Collateral, or such Grantor’s use thereof in the operation of
its business, infringes or misappropriates the intellectual property rights of any Person; and

 

(h)              
to such Grantor’s actual knowledge after due inquiry, there has been no substantial impact on such Grantor’s rights
in its material Trade Secrets as a result of any unauthorized use, disclosure or appropriation by or to any Person, including such Grantor’s
current and former employees, contractors and agents.

 

Section 4.15      
Inspection of Collateral. Each Grantor shall keep the Collateral in good order and repair, ordinary wear and tear excepted,
and will not use the same in violation of applicable Legal Requirements or any policy of insurance thereon. Each Grantor shall permit
the Collateral Agent, or its designee, to inspect the Collateral at any reasonable time, wherever located, but not more frequently than
once per calendar quarter.

 

Article
V

Securities collateral

 

Section 5.01      
Existing Voting Rights and Distributions.

 

(a)              
So long as no Event of Default shall have occurred and be continuing:

 

(i)                
Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Securities Collateral
or any part thereof for any purpose not inconsistent with the terms or purposes hereof, the Indenture or any other Note Document; provided,
however, that no Grantor shall in any event exercise such rights in any manner which would reasonably be expected to have a Material
Adverse Effect.

 

(ii)             
Each Grantor shall, subject to the terms of the Intercreditor Agreement, be entitled to receive and retain, and to utilize free
and clear of the Lien hereof, any and all Distributions, if and to the extent made in accordance with the provisions of the Purchase
Agreement; provided, however, that any and all such Distributions consisting of rights or interests in the form of securities shall be
immediately delivered to the Collateral Agent to hold as Collateral and shall, if received by any Grantor, be received in trust for the
benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor and be promptly (but in any event within
ten Business Days after receipt thereof) delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary
endorsement).

 

 

 

 

    	 	17	 

     

    

 

(b)              
The Collateral Agent shall be, subject to the Intercreditor Agreement, deemed without further action to have granted to each Grantor
all necessary consents relating to voting rights and shall, if necessary, upon written request of any Grantor and at the sole cost and
expense of such Grantor, from time to time execute and deliver (or cause to be executed and delivered) to such Grantor all such instruments
as such Grantor may reasonably request in order to permit such Grantor to exercise the voting and other rights which it is entitled to
exercise pursuant to Section 5.01(a)(i) and to receive the Distributions which it is authorized to receive and retain pursuant to Section
5.01(a)(ii).

 

(c)              
Upon the occurrence and during the continuance of any Event of Default and subject to the Intercreditor Agreement:

 

(i)                
All rights of each Grantor to exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant
to Section 5.01(a)(i) shall immediately cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall
have the sole right to exercise such voting and other consensual rights.

 

(ii)             
All rights of each Grantor to receive Distributions which it would otherwise be authorized to receive and retain pursuant to Section
5.01(a)(ii) shall immediately cease and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole
right to receive and hold such Distributions as Collateral.

 

(d)              
Each Grantor shall, subject to the terms of the Intercreditor Agreement, at its sole cost and expense, from time to time execute
and deliver to the Collateral Agent appropriate instruments as the Collateral Agent may request in order to permit the Collateral Agent
to exercise the voting and other rights which it may be entitled to exercise pursuant to Section 5.01(c)(i) and to receive all Distributions
which it may be entitled to receive under Section 5.01(c)(ii).

 

(e)              
All Distributions which are received by any Grantor contrary to the provisions of Section 5.01(a)(ii) or Section 5.01(c) shall
be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall promptly
(but in any event within ten Business Days after receipt thereof by such Grantor) be paid over to the Collateral Agent as Collateral
in the same form as so received (with any necessary endorsement).

 

Section 5.02      
Certain Agreements of Grantors.

 

(a)              
In the case of each Grantor which is an issuer of Securities Collateral, such Grantor agrees to be bound by the terms of this
Agreement relating to the Securities Collateral issued by it and will comply with such terms insofar as such terms are applicable to
it.

 

(b)              
In the case of each Grantor which is a partner, shareholder or member, as the case may be, in a partnership, limited liability
company or other entity, such Grantor hereby (i) consents to the extent required by the applicable organizational document to the pledge
by each other Grantor, pursuant to the terms hereof, of the Pledged Securities in such partnership, limited liability company or other
entity and, upon the occurrence and during the continuance of an Event of Default, subject to the terms of the Intercreditor Agreement,
to the transfer of such Pledged Securities to the Collateral Agent or its nominee and to the substitution of the Collateral Agent or
its nominee as a substituted partner, shareholder or member in such partnership, limited liability company or other entity with all the
rights, powers and duties of a general partner, limited partner, shareholder or member, as the case may be, and (ii) irrevocably waives
any and all provisions of the applicable organizational documents that conflict with the terms of this Agreement or prohibit, restrict,
condition or otherwise affect the grant hereunder of any Lien on any of the Collateral or any enforcement action which may be taken in
respect of any such Lien.

 

 

 

 

    	 	18	 

     

    

 

Article
VI

Intellectual property collateral

 

Section 6.01      
Intellectual Property License. For the purpose of enabling the Collateral Agent, during the continuance of an Event
of Default, to exercise rights and remedies under ARTICLE VIII hereof at such time as the Collateral Agent shall be lawfully entitled
to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent of
such Grantor’s rights and effective only during the continuance of an Event of Default, an irrevocable, non-exclusive license,
subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk
of invalidation of such Trademarks, to use and sublicense any of the Intellectual Property Collateral then owned by or licensed to such
Grantor. Such license shall include access to all devices, products and media in which any of the Intellectual Property Collateral is
embodied, embedded, recorded or stored and to all computer programs used for the compilation or printout hereof.

 

Section 6.02      
Dealing With Intellectual Property. On a continuing basis, each Grantor shall, at its sole cost and expense:

 

(a)              
promptly following its becoming aware thereof, notify the Collateral Agent of any adverse determination in any proceeding or the
institution of any proceeding in any federal, state or local court or administrative body or in the United States Patent and Trademark
Office or the United States Copyright Office regarding such Grantor’s claim of ownership in or right to use any of the material
Intellectual Property Collateral, such Grantor’s right to register such Intellectual Property Collateral or its right to keep and
maintain such registration in full force and effect;

 

(b)              
maintain and protect the material Intellectual Property Collateral as presently used and operated and as contemplated by the Indenture;

 

(c)              
not permit to lapse or become abandoned any material Intellectual Property Collateral as presently used and operated and as contemplated
by the Indenture, and not settle or compromise any pending or future litigation or administrative proceeding with respect to such Intellectual
Property Collateral, in each case except as shall be consistent with commercially reasonable business judgment;

 

(d)              
upon such Grantor obtaining actual knowledge after due inquiry thereof, promptly notify the Collateral Agent in writing of any
event which may be reasonably expected to materially and adversely affect the value or utility of any of the material Intellectual Property
Collateral or the rights and remedies of the Collateral Agent in relation thereto including a levy or threat of levy or any legal process
against the Intellectual Property Collateral or any portion thereof;

 

(e)              
not license the Intellectual Property Collateral other than licenses entered into by such Grantor in, or incidental to, the ordinary
course of business, or amend or permit the amendment of any of the licenses in a manner that materially and adversely affects the right
to receive payments thereunder, or in any manner that could materially impair the value of the Intellectual Property Collateral or the
Lien on and security interest in the Intellectual Property Collateral created hereby, without the consent of the Collateral Agent;

 

(f)               
diligently keep adequate records respecting its Intellectual Property Collateral; and

 

(g)              
furnish to the Collateral Agent from time to time upon the Collateral Agent’s reasonable request therefor reasonably detailed
statements and amended schedules further identifying and describing the Intellectual Property Collateral and such other materials evidencing
or reports pertaining to the Intellectual Property Collateral as the Collateral Agent may from time to time reasonably request, but no
more frequently than once per calendar quarter.

 

 

 

 

    	 	19	 

     

    

 

Section 6.03      
Additional Intellectual Property.

 

(a)              
If any Grantor shall at any time after the date hereof (i) obtain any rights to any additional Intellectual Property Collateral
or (i) become entitled to the benefit of any additional Intellectual Property Collateral or any registration, renewal or extension thereof,
including any reissue, division, continuation, or continuation-in-part of any Intellectual Property Collateral, or any improvement on
any Intellectual Property Collateral, the provisions hereof shall automatically apply thereto and any such item enumerated in Section
6.03(a)(i) or Section 6.03(a)(ii) with respect to such Grantor shall automatically constitute Intellectual Property Collateral as if
such would have constituted Intellectual Property Collateral at the time of execution hereof and be subject to the Lien and security
interest created by this Agreement without further action by any party.

 

(b)              
Each Grantor shall promptly within 45 days of the end of each fiscal quarter (i) provide to the Collateral Agent written notice
of any of the foregoing and (ii) upon the Collateral Agent’s request, confirm the attachment of the Lien and security interest
created by this Agreement to any rights described Section 6.03(a)(i) or Section 6.03(a)(ii) by execution of an instrument in form reasonably
acceptable to the Collateral Agent and the filing of any instruments or statements as shall be reasonably necessary to create, preserve,
protect or perfect the Collateral Agent’s security interest in such Intellectual Property Collateral, including by execution and
filing of a supplemental Intellectual Property Security Agreement in accordance with Section 3.06. Further, each Grantor authorizes the
Collateral Agent to modify this Agreement by amending Schedule 6 hereof to include any such Intellectual Property Collateral of such
Grantor.

 

Section 6.04      
Intellectual Property Litigation. Unless there shall occur and be continuing any Event of Default, each Grantor shall
have the right to commence and prosecute in its own name, as the party in interest, for its own benefit and at the sole cost and expense
of the Grantors, such applications for protection of the Intellectual Property Collateral and suits, proceedings or other actions to
prevent the infringement, misappropriation, counterfeiting, unfair competition, dilution, diminution in value or other damage as are
necessary to protect the Intellectual Property Collateral. Upon the occurrence and during the continuance of any Event of Default, subject
to the Intercreditor Agreement, the Collateral Agent shall have the right but shall in no way be obligated to file applications for protection
of the Intellectual Property Collateral and/or bring suit in the name of any Grantor, the Collateral Agent or the Secured Parties to
enforce the Intellectual Property Collateral and any license thereunder. In the event of such suit, each Grantor shall, at the reasonable
request of the Collateral Agent, do any and all commercially reasonable acts and execute any and all documents reasonably requested by
the Collateral Agent in aid of such enforcement and the Grantors shall promptly reimburse and indemnify the Collateral Agent for all
reasonable costs and expenses incurred by the Collateral Agent in the exercise of its rights under this Section 6.04 in accordance with
Section 9.08. In the event that the Collateral Agent shall elect not to bring suit to enforce the Intellectual Property Collateral as
permitted by this Section 6.04 and an Event of Default has occurred and is continuing, each Grantor agrees, at the reasonable request
of the Collateral Agent, to take all commercially reasonable actions necessary, whether by suit, proceeding or other action, to prevent
the infringement, misappropriation, counterfeiting, unfair competition, dilution, diminution in value of or other damage to any of the
Intellectual Property Collateral by others and for that purpose agrees to diligently maintain any suit, proceeding or other action against
any Person so infringing necessary to prevent such infringement.

 

Section 6.05      
Foreign Intellectual Property. No Grantor shall be responsible for any costs or expenses, legal or otherwise, incurred
by the Collateral Agent in connection with the perfection of the security interest created hereby in foreign Intellectual Property Collateral
and Intellectual Property Licenses, for registrations and filings in jurisdictions located outside of the United States or covering rights
in such jurisdictions relating to such foreign Intellectual Property Collateral and Intellectual Property Licenses.

 

Article
VII

Receivables

 

Section 7.01      
Dealing With Receivables. Each Grantor shall keep and maintain at its own cost and expense complete records of each
Receivable, including records of all payments received, all credits granted thereon, all merchandise returned and all other documentation
relating thereto. Each Grantor shall, at such Grantor’s sole cost and expense, upon the Collateral Agent’s demand made at
any time after the occurrence and during the continuance of any Event of Default, subject to the Intercreditor Agreement, deliver copies
of all tangible evidence of Receivables, including copies of all documents evidencing Receivables and any books and records relating
thereto to the Collateral Agent or to its representatives. Each Grantor shall legend, at the request of the Collateral Agent and in form
and manner satisfactory to the Collateral Agent, the Receivables and the other books, records and documents of such Grantor evidencing
or pertaining to the Receivables with an appropriate reference to the fact that the Receivables have been assigned to the Collateral
Agent for the ratable benefit of the Secured Parties and that the Collateral Agent has a security interest therein.

 

 

 

    	 	20	 

     

    

 

Section 7.02      
Modification of Receivables. Other than in the ordinary course of business consistent with its past practice or as
permitted under the Indenture, such Grantor will not (a) grant any extension of the time of payment of any Receivable, (b) compromise
or settle any Receivable for less than the full amount thereof, (c) release, wholly or partially, any Person liable for the payment of
any Receivable, (d) allow any credit or discount whatsoever on any Receivable or (e) amend, supplement or modify any Receivable in any
manner that could adversely affect the value thereof.

 

Article
VIII

Remedies

 

Section 8.01      
Remedies.

 

(a)              
If any Event of Default shall have occurred and be continuing, subject to the terms of the Intercreditor Agreement, the Collateral
Agent may exercise, without any other notice to or demand upon any Grantor, in addition to the other rights and remedies provided for
herein or in any other Note Document or otherwise available to it, all the rights and remedies of a secured party upon default under
the UCC (whether or not the UCC applies to the affected Collateral) and also may:

 

(i)                
require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent immediately,
assemble the Collateral (including all cannabis-related assets) or any part thereof, as directed by the Collateral Agent and make it
available to the Collateral Agent at a place and time to be designated by the Collateral Agent;

 

(ii)             
without notice except as specified below, sell, resell, assign and deliver or grant a license to use or otherwise dispose of the
Collateral or any part thereof (including any cannabis-related assets), in one or more parcels at public or private sale, at any of the
Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral
Agent may deem commercially reasonable;

 

(iii)           
subject to the terms of any applicable Collateral Access Agreement, occupy any premises owned or leased by any of the Grantors
where the Collateral (including cannabis-related assets) or any part thereof is assembled or located for a reasonable period in order
to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and

 

(iv)            
exercise any and all rights and remedies of any of the Grantors under or in connection with the Collateral (including cannabis-related
assets), or otherwise in respect of the Collateral, including without limitation, (A) any and all rights of such Grantor to demand or
otherwise require payment of any amount under, or performance of any provision of, the Contracts, the Receivables, and the other Collateral,
(B) withdraw, or cause or direct the withdrawal of, all funds with respect to the Deposit Accounts, (C) exercise all other rights and
remedies with respect to the Receivables, and the other Collateral, including without limitation, those set forth in Section 9-607 of
the UCC and (D) exercise any and all voting, consensual and other rights with respect to any Collateral.

 

(b)              
Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Grantor
of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.
At any sale of the Collateral, if permitted by applicable law, the Collateral Agent may be the purchaser, licensee, assignee or recipient
of the Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement or payment of the purchase
price for all or any portion of the Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations
as a credit on account of the purchase price of the Collateral or any part thereof payable at such sale. To the extent permitted by applicable
law, each Grantor waives all claims, damages and demands it may acquire against the Collateral Agent arising out of the exercise by it
of any rights hereunder. Each Grantor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption
with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any
other security for the Secured Obligations or otherwise. The Collateral Agent shall not be liable for failure to collect or realize upon
any or all of the Collateral or for any delay in so doing nor shall it be under any obligation to take any action with regard thereto.
The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral
Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned. Each Grantor agrees that it would not be commercially
unreasonable for the Collateral Agent to dispose of the Collateral or any portion thereof by utilizing internet sites that routinely
provide for the auction of assets of the type included in the Collateral. The Collateral Agent shall not be obligated to clean-up or
otherwise prepare the Collateral for sale.

 

 

 

    	 	21	 

     

    

 

(c)              
If any Event of Default shall have occurred and be continuing, subject to the terms of the Intercreditor Agreement, all payments
received by any Grantor in respect of the Collateral shall be received in trust for the benefit of the Collateral Agent, shall be segregated
from other funds of such Grantor and shall be forthwith paid over the Collateral Agent in the same form as so received (with any necessary
endorsement).

 

(d)              
If any Event of Default shall have occurred and be continuing, subject to the terms of the Intercreditor Agreement, the Collateral
Agent may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set off and otherwise
apply all or part of the Secured Obligations against any funds deposited with it or held by it.

 

(e)              
If any Event of Default shall have occurred and be continuing, subject to the terms of the Intercreditor Agreement, upon the written
demand of the Collateral Agent, each Grantor shall execute and deliver to the Collateral Agent an assignment or assignments of any or
all of the Intellectual Property Collateral and applicable Cannabis Licenses and such other documents and take such other actions as
are necessary or appropriate to carry out the intent and purposes hereof. Within five Business Days of written notice thereafter from
the Collateral Agent, each Grantor shall make available to the Collateral Agent, to the extent within such Grantor’s power and
authority, such personnel in such Grantor’s employ on the date of the Event of Default as the Collateral Agent may reasonably designate
to permit such Grantor to continue, directly or indirectly, to produce, advertise and sell the products and services sold by such Grantor
under the Intellectual Property Collateral, and such persons shall be available to perform their prior functions on the Collateral Agent’s
behalf.

 

(f)               
If the Collateral Agent shall determine to exercise its right to sell all or any of the Securities Collateral of any Grantor pursuant
to this Section 8.01, each Grantor agrees that, upon request of the Collateral Agent, such Grantor will, at its own expense:

 

(i)               
provide the Collateral Agent with such information and projections as may be necessary or, in the opinion of the Collateral Agent,
advisable to enable the Collateral Agent to effect the sale of such Securities Collateral; and

 

(ii)             
do or cause to be done all such other acts and things as may be necessary to make such sale of such Securities Collateral or any
part thereof valid and binding and in compliance with applicable law.

 

(g)              
Subject to the confidentiality provisions set forth in the Indenture, the Collateral Agent is authorized, in connection with any
sale of the Securities Collateral pursuant to this Section 8.01, to deliver any information provided to it by any Grantor at any time.

 

(h)              
Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Collateral Agent
and the Secured Parties by reason of the failure of such Grantor to perform any of the covenants contained in Section 8.01(f); and consequently,
agrees that, if such Grantor shall fail to perform any of such covenants, it will pay, as liquidated damages and not as a penalty, an
amount equal to the value of the Securities Collateral on the date the Collateral Agent demands compliance with Section 8.01(f).

 

Section 8.02      
No Waiver and Cumulative Remedies. The Collateral Agent shall not by any act (except by a written instrument pursuant
to Section 9.06), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any Default or Event of Default. No failure on the part of the Collateral Agent to exercise, no course of dealing with respect to,
and no delay on the part of the Collateral Agent in exercising, any right, power or remedy hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any such right, power, privilege or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power, privilege or remedy; nor shall the Collateral Agent be required to look first to,
enforce or exhaust any other security, collateral or guaranties. All rights and remedies herein provided are cumulative and are not exclusive
of any rights or remedies provided by law.

 

 

 

 

    	 	22	 

     

    

 

Section 8.03      
Application of Proceeds. Upon the exercise by the Collateral Agent of its remedies hereunder, any proceeds received
by the Collateral Agent in respect of any realization upon any Collateral shall be applied, together with any other sums then held by
the Collateral Agent pursuant to this Agreement, in accordance with the Indenture. Each Grantor shall remain liable for any deficiency
if the proceeds of any sale or other disposition of the Collateral are insufficient to pay the Secured Obligations and the fees and other
charges of any attorneys employed by the Collateral Agent to collect such deficiency.

 

Article
IX

MISCELLANEOUS

 

Section 9.01      
Concerning Collateral Agent.

 

(a)              
Appointment. The Collateral Agent has been appointed as collateral agent in the Indenture and shall act in accordance with
the terms of the Indenture. The Collateral Agent may exercise or refrain from exercising any rights (including making demands and giving
notices) and take or refrain from taking any action (including the release or substitution of the Collateral), in accordance with this
Agreement and the Indenture. The Collateral Agent may employ agents and attorneys-in-fact in connection herewith and shall not be liable
for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. The Collateral Agent may resign,
and a successor Collateral Agent may be appointed in the manner provided in the Indenture. On the acceptance of appointment as the successor
Collateral Agent, that successor Collateral Agent shall thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Collateral Agent under this Agreement, and the retiring Collateral Agent shall thereupon be discharged from
its duties and obligations under this Agreement. After any retiring Collateral Agent’s resignation, the provisions hereof shall
inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement while it was the Collateral Agent.

 

(b)              
Duty of care. The Collateral Agent’s sole duty with respect to the custody, safekeeping and physical preservation
of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the
Collateral Agent deals with its own property consisting of similar instruments or interests. Neither the Collateral Agent nor any of
the Secured Parties shall have responsibility for (i) ascertaining or taking action whatsoever with regard to any Collateral (including
matters relating to the Pledged Securities, whether or not the Collateral Agent or any other Secured Party has or is deemed to have knowledge
of such matters) or (ii) taking any necessary steps to preserve rights against any Person with respect to any Collateral.

 

(c)              
Reliance. The Collateral Agent shall be entitled to rely upon any written notice, statement, certificate, order or other
document or any telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper Person,
and, with respect to all matters pertaining to this Agreement and its duties hereunder.

 

(d)              
Conflict. If any item of Collateral also constitutes collateral granted to the Collateral Agent under any other deed of
trust, mortgage, security agreement, pledge or instrument of any type, in the event of any conflict between the provisions hereof and
the provisions of such other document in respect of such collateral, the provisions of this Agreement shall control unless the other
deed of trust, mortgage, security agreement, pledge or instrument expressly states otherwise.

 

Section 9.02      
Performance By Collateral Agent. Provided that such action does not violate any applicable Legal Requirements, if any
Grantor shall fail to perform any covenants contained in this Agreement (including covenants to pay insurance, taxes and claims arising
by operation of law in respect of the Collateral and to pay or perform any Grantor obligations under any Collateral) or if any representation
or warranty on the part of any Grantor contained herein shall be breached, the Collateral Agent may (but shall not be obligated to) following
notice to such Grantor of such failure to perform and such Grantor’s failure to remedy such failure within a commercially reasonable
time period, do the same or cause it to be done or remedy any such breach, and may make payments for such purpose; provided, however,
that the Collateral Agent shall in no event be bound to inquire into the validity of any tax, Lien, imposition or other obligation which
such Grantor fails to pay or perform as and when required hereby and which such Grantor does not contest in accordance with the provisions
of the Purchase Agreement. Any and all amounts so paid by the Collateral Agent shall be reimbursed by the Grantors in accordance with
the provisions of Section 9.08. Neither the provisions of this Section 9.02 nor any action taken by the Collateral Agent pursuant to
the provisions of this Section 9.02 shall prevent any such failure to observe any covenant contained in this Agreement nor any breach
of representation or warranty from constituting an Event of Default.

 

 

 

    	 	23	 

     

    

 

Section 9.03      
Power of Attorney. Each Grantor hereby appoints the Collateral Agent its attorney-in-fact, with full power and authority
in the place and stead of such Grantor and in the name of such Grantor, or otherwise, from time to time during the existence and continuance
of any Event of Default, subject to the terms of the Intercreditor Agreement, to take any action and to execute any instrument consistent
with the terms of the Indenture and the other Note Documents which the Collateral Agent may deem necessary or advisable to accomplish
the purposes hereof (but the Collateral Agent shall not be obligated to and neither the Collateral Agent nor any Secured Party shall
have any liability to such Grantor or any third party for failure to so do or take action). Except where prior notice is expressly required
by the terms of this Agreement, the Collateral Agent shall use commercially reasonable efforts to provide notice to the Grantor prior
to taking any action taken in the preceding sentence, provided that failure to deliver such notice shall not limit the Collateral Agent’s
right to take such action or the validity of any such action. The foregoing grant of authority is a power of attorney coupled with an
interest and such appointment shall be irrevocable for the term hereof. Each Grantor hereby ratifies all that such attorney shall lawfully
do or cause to be done by virtue hereof.

 

Section 9.04      
Continuing Security Interest and Assignment. This Agreement shall create a continuing security interest in the Collateral
and shall (a) be binding upon the Grantors, their respective successors and assigns and (b) inure, together with the rights and remedies
of the Collateral Agent hereunder, to the benefit of the Collateral Agent and the other Secured Parties and each of their respective
permitted successors, transferees and assigns and their respective officers, directors, employees, affiliates, agents, advisors and controlling
Persons; provided that, no Grantor shall assign or otherwise transfer any of its rights or obligations under this Agreement without the
prior written consent of the Collateral Agent and any attempted assignment or transfer without such consent shall be null and void. Without
limiting the generality of the foregoing subsection (b), any Secured Party may assign or otherwise transfer any indebtedness held by
it secured by this Agreement to any other Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Secured Party, herein or otherwise, subject however, to the provisions of the Indenture.

 

Section 9.05      
Termination and Release.

 

(a)              
At such time as the Loans and the other Secured Obligations shall have been paid in full (other than contingent indemnification
obligations in which no claim has been made or is reasonably foreseeable), the Collateral shall be released from the Liens created hereby,
and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Collateral Agent and each
Grantor hereunder shall terminate, all without delivery of any instrument or any further action by any party, and all rights to the Collateral
shall revert to the Grantors. At the request and sole expense of any Grantor following any such termination, the Collateral Agent shall
deliver to such Grantor any Collateral held by the Collateral Agent hereunder and execute and deliver to such Grantor such documents
as such Grantor shall reasonably request to evidence such termination.

 

(b)              
If any of the Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the
Indenture, then the Lien created pursuant to this Agreement in such Collateral shall be released, and the Collateral Agent, at the request
and sole expense of such Grantor, shall execute and deliver to such Grantor all releases and other documents reasonably necessary or
advisable for the release of the Liens created hereby on such Collateral; provided that the Grantors shall provide to the Collateral
Agent evidence of such transaction’s compliance with the Indenture and the other Note Documents as the Collateral Agent shall reasonably
request. At the request and sole expense of the Grantors, a Grantor shall be released from its obligations hereunder in the event that
all the Equity Interests of such Grantor are sold, transferred or otherwise disposed of in a transaction permitted by the Indenture;
provided that the Grantors shall have delivered to the Collateral Agent, at least five Business Days (or such shorter period reasonably
acceptable to the Collateral Agent) prior to the date of the proposed release, a written request for release identifying the relevant
Grantor and the terms of the sale or other disposition in reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by the Grantors stating that such transaction is in compliance with the Indenture and the other
Note Documents.

 

 

 

    	 	24	 

     

    

 

Section 9.06      
Modification in Writing. None of the terms or provisions of this Agreement may be amended, modified, supplemented,
terminated or waived, and no consent to any departure by any Grantor therefrom shall be effective, except by a written instrument signed
by the Collateral Agent in accordance with the terms of the Indenture. Any amendment, modification or supplement of any provision hereof,
any waiver of any provision hereof and any consent to any departure by any Grantor from the terms of any provision hereof in each case
shall be effective only in the specific instance and for the specific purpose for which made or given. This Agreement shall be construed
as a separate agreement with respect to each Grantor and may be amended, modified, supplemented, terminated or waived with respect to
any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder.

 

Section 9.07      
Notices. Unless otherwise provided herein, any notice or other communication required or permitted to be given under
this Agreement shall be in writing and shall be given in the manner and become effective as set forth in the Indenture, and, as to any
Grantor, addressed to it at the address of such Grantor set forth in Schedule 1 hereof and as to the Collateral Agent, addressed to it
at the address set forth in the Indenture, or in each case at such other address as shall be designated by such party in a written notice
to the other party.

 

Section 9.08      
Indemnity and Expenses.

 

(a)              
Each Grantor shall indemnify and exculpate the Collateral Agent (and any sub-agent thereof), each other Secured Party, and each
Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) in accordance
with Section 7.06 of the Indenture.

 

(b)              
[Reserved]

 

(c)              
Each Grantor agrees to pay or reimburse the Collateral Agent for all its costs and expenses incurred in collecting against such
Grantor its Secured Obligations or otherwise protecting, enforcing or preserving any rights or remedies under this Agreement and the
other Note Documents to which such Grantor is a party, including the fees and other charges of counsel to the Collateral Agent.

 

(d)              
All amounts due under this Section 9.08 shall be payable not later than 5 business days after demand therefor, shall constitute
Secured Obligations and, if such amounts remain unpaid for 15 days, then such unpaid amounts shall bear interest until paid at a rate
per annum equal to the highest rate per annum at which interest would then be payable on any past due Note under the Indenture.

 

(e)              
Without prejudice to the survival of any other agreement of any Grantor under this Agreement or any other Note Documents, the
agreements and obligations of each Grantor contained in this Section 9.08 shall survive termination of the Note Documents and payment
in full of the Obligations and all other amounts payable under this Agreement.

 

Section 9.09      
Governing Law, Consent to Jurisdiction and Waiver of Jury Trial. This Agreement and any claim, controversy, dispute
or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions
contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of New York. The other
provisions of Section 14.06 (Governing Law and Waiver of Jury Trial) of the Indenture are incorporated herein, mutatis mutandis, as if
a part hereof.

 

Section 9.10      
Severability of Provisions. Any provision hereof which is invalid, illegal or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating the remaining
provisions hereof or affecting the validity, legality or enforceability of such provision in any other jurisdiction.

 

 

 

 

    	 	25	 

     

    

 

Section 9.11      
No Release. Nothing set forth in this Agreement or any other Note Document, nor the exercise by the Collateral Agent
of any of the rights or remedies hereunder, shall relieve any Grantor from the performance of any term, covenant, condition or agreement
on such Grantor’s part to be performed or observed in respect of any of the Collateral or from any liability to any Person in respect
of any of the Collateral or shall impose any obligation on the Collateral Agent or any other Secured Party to perform or observe any
such term, covenant, condition or agreement on such Grantor’s part to be so performed or observed or shall impose any liability
on the Collateral Agent or any other Secured Party for any act or omission on the part of such Grantor relating thereto or for any breach
of any representation or warranty on the part of such Grantor contained in this Agreement, the Indenture or the other Note Documents,
or in respect of the Collateral or made in connection herewith or therewith. Anything herein to the contrary notwithstanding, neither
the Collateral Agent nor any other Secured Party shall have any obligation or liability under any contracts, agreements and other documents
included in the Collateral by reason of this Agreement, nor shall the Collateral Agent or any other Secured Party be obligated to perform
any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any such contract, agreement or
other document included in the Collateral. The obligations of each Grantor contained in this Section 9.11 shall survive the termination
hereof and the discharge of such Grantor’s other obligations under this Agreement, the Indenture and the other Note Documents.

 

Section 9.12      
Obligations Absolute. Each Grantor hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice
of loans made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands and notices
of any description. All obligations of each Grantor hereunder shall be absolute and unconditional irrespective of:

 

(a)              
any illegality or lack of validity or enforceability of any Secured Obligation or any Note Document or any related agreement or
instrument;

 

(b)              
any change in the time, place or manner of payment of, or in any other term of, the Secured Obligations or any other obligation
of any Issuer or any other Grantor under any Note Document, or any amendment or other modification of any Note Document or any other
agreement, including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise;

 

(c)              
any taking, exchange, substitution, release, impairment or non-perfection of any Collateral, or any taking, release, impairment,
amendment, waiver or other modification of any guaranty, for the Secured Obligations;

 

(d)              
any manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to all or
part of the Secured Obligations;

 

(e)              
any default, failure or delay, willful or otherwise, in the performance of the Secured Obligations;

 

(f)               
any change, restructuring or termination of the corporate structure, ownership or existence of any Issuer or any other Grantor;

 

(g)              
any failure of any Secured Party to disclose to the Issuer or any other Grantor any information relating to the business, condition
(financial or otherwise), operations, performance, properties or prospects of the Issuer or any other Grantor now or hereafter known
to such Secured Party; each Grantor waiving any duty of the Secured Parties to disclose such information;

 

(h)              
the failure of any other Person to execute or deliver this Agreement, any Joinder Agreement or any other agreement or the release
or reduction of liability of any Grantor or other grantor or surety with respect to the Secured Obligations;

 

(i)                
the failure of any Secured Party to assert any claim or demand or to exercise or enforce any right or remedy under the provisions
of any Loan Document or otherwise;

 

 

 

 

    	 	26	 

     

    

 

(j)                
any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to, or
be asserted by, any Grantor against any Secured Party; or

 

(k)              
any other circumstance (including, without limitation, any statute of limitations) or manner of administering the Loans or any
existence of or reliance on any representation by any Secured Party that might vary the risk of any Grantor or otherwise operate as a
defense available to, or a legal or equitable discharge of, the Issuer or any other Grantor or any other guarantor or surety.

 

Section 9.13      
Counterparts; Integration; Effectiveness. This Agreement and any amendments, waivers, consents or supplements hereto
may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original,
but all taken together shall constitute a single contract. This Agreement and the other Note Documents, and any separate letter agreements
with respect to fees payable to the Collateral Agent, constitute the entire contract among the parties with respect to the subject matter
hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. This Agreement shall become effective
when it shall have been executed by the Collateral Agent and when the Collateral Agent shall have received counterparts hereof signed
by each of the other parties hereto. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic
PDF format shall be effective as delivery of a manually executed counterpart of this Agreement. The words “execution,”
“signed,” “signature,” and words of similar import in this Agreement shall be deemed
to include electronic or digital signatures or electronic records, each of which shall be of the same effect, validity, and enforceability
as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent and as provided for under applicable
law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 U.S.C. §§ 7001 to 7031), the Uniform
Electronic Transactions Act (UETA), or any state law based on the UETA.

 

[ Signature Page Follows ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	27	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Security Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.

 

	 	ISSUER:
	 	 	 
	 	MEDICINE MAN TECHNOLOGIES, INC.
	 	 
	 	By:	/s/ Justin Dye
	 	 	Name: Justin Dye
	 	 	Title:   Chief Executive Officer

 

 

	 	GRANTORS:

 

	 	DOUBLE BROW, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MISSION HOLDING, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

 

[Signature Page to Securities Purchase Agreement]

 

    	 	28	 

     

    

 

	 	SCG HOLDING, LLC
	 	By: Medicine Man Technologies, Inc., its Sole Member
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	SCHWAZZE COLORADO LLC
	 	By: Medicine
Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	SCHWAZZE BIOSCIENCES, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	SBUD LLC
	 	By: Schwazze Colorado LLC, its Manager 
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MEDICINE MAN CONSULTING, INC.
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   President

 

[Signature Page to Securities Purchase Agreement]

 

    	 	29	 

     

    

 

	 	TWO J’S LLC
	 	By: Medicine Man Technologies, Inc., its Sole Member
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MESA ORGANICS LTD.
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MESA ORGANICS II LTD
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MESA ORGANICS III LTD
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MESA ORGANICS IV LTD
	 	By: Medicine Man Technologies, Inc., it Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

 

[Signature Page to Securities Purchase Agreement]

    	 	30	 

     

    

 

	 	PBS HOLDCO LLC
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	SCHWAZZE IP HOLDCO LLC
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By: /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	MIH MANAGER LLC
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

	 	EMERALD FIELDS MERGER SUB, LLC
	 	By: Schwazze Colorado LLC, its Sole Member
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name: Justin Dye
	 	Title:   Chief Executive Officer

 

 

 

    	 	31	 

     

    

 

	 	NUEVO HOLDING, LLC
	 	By: Schwazze New Mexico, LLC, its Manager
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name:  Justin Dye
	 	Title:  Chief Executive Officer

 

 

	 	NUEVO ELEMENTAL HOLDING, LLC
	 	By: Schwazze New Mexico, LLC, its Manager
	 	By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:  /s/ Justin Dye
	 	Name:  Justin Dye
	 	Title:  Chief Executive Officer

 

 

	 	SCHWAZZE NEW MEXICO, LLC
	 	         By: Medicine Man Technologies, Inc., its Manager
	 	 
	 	By:   /s/ Justin Dye
	 	Name:  Justin Dye
	 	Title:  Chief Executive Officer

 

 

	 	COLLATERAL AGENT:
	 	 
	 	CHICAGO ATLANTIC ADMIN LLC
	 	 
	 	By:   /s/ Peter Sack
	 	Name:  Peter Sack
	 	Title:  Managing Director & Co-President

 

 

 

    	 	32	 

     

    

 

Schedule 1

Notices

c/o Medicine Man Technologies, Inc.

4880 Havana Street, Suite 201

Denver, CO 80239

	Telephone:	(303) 371-0387	 
	Facsimile:	(303) 371-0598	 
	Attention:	General Counsel	 
	E-mail:	 	dan@schwazze.com

 

 

 

 

 

 

 

 

 

 

    	 	33	 

     

    

 

Schedule 2

Pledged Securities and Pledged Debt

Pledged Debt

 

		1.	Purchase and Sale Agreement, dated January 13, 2021, by and between Medicine Man Technologies, Inc. and
Colorado Cannabis Company LLC.

 

Pledged Securities

 

	Grantor	Issuer	Pledged Securities
	
    Medicine Man Technologies, Inc.

     
	PBS HoldCo LLC	100% Equity Interests 
	Schwazze Colorado LLC	100% Equity Interests 
	Mesa Organics Ltd.	100% Equity Interests 
	Medicine Man Consulting, Inc.	1,000 shares of Common Stock, $0.001 par value per share, constituting 100% Equity Interests, evidenced by certificate number 01
	Two Js LLC	100% Equity Interests 
	SCG Holding, LLC	100% Equity Interests 
	Schwazze IP Holdco LLC	100% Equity Interests 
	MIH Manager LLC	100% Equity Interests 
	Schwazze New Mexico, LLC	100% Equity Interests 
	Mesa Organics Ltd.	Mesa Organics II Ltd	100% Equity Interests 
	Mesa Organics III Ltd	100% Equity Interests 
	Mesa Organics IV Ltd	100% Equity Interests 
	Schwazze Colorado LLC	SBUD LLC	100% Equity Interests 
	Schwazze Biosciences, LLC	100% Equity Interests 
	Double Brow, LLC	100% Equity Interests 
	Mission Holding, LLC	100% Equity Interests 
	Emerald Fields Merger Sub, LLC	100% Equity Interests 
	Schwazze New Mexico, LLC	Nuevo Holding, LLC	100% Equity Interests 
	Nuevo Elemental Holding, LLC	100% Equity Interests 
	Canada House Wellness Group Inc.	CHV.CN	5,883,514 shares of Common Stock evidenced by certificate number [Redacted]
	5,883,513 shares of Common Stock evidenced by certificate number [Redacted]
	5,883,513 shares of Common Stock evidenced by certificate number [Redacted]

 

 

    	 	34	 

     

    

 

Schedule 3

Perfection Filings and Filing Offices

 

	Grantor	Filing	Filing Office
	Medicine Man Technologies, Inc. 	UCC-1 Financing Statement	Nevada Secretary of State
	SBUD LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Lien notice on certificate of title to 2018 Subaru Outback, VIN [Redacted]	Colorado Department of Motor Vehicles 
	PBS HoldCo LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Schwazze Colorado LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Mesa Organics Ltd	UCC-1 Financing Statement	Colorado Secretary of State
	Mesa Organics II Ltd	UCC-1 Financing Statement	Colorado Secretary of State
	Mesa Organics III Ltd	UCC-1 Financing Statement	Colorado Secretary of State
	Mesa Organics IV Ltd	UCC-1 Financing Statement	Colorado Secretary of State
	Medicine Man Consulting, Inc.	UCC-1 Financing Statement	Colorado Secretary of State
	Two Js LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Lien notice on certificate of title to 2015 Mercedes Cargo Van, VIN [Redacted]	Colorado Department of Motor Vehicles 
	Lien notice on certificate of title to 2014 Mercedes Cargo Van, VIN [Redacted]	Colorado Department of Motor Vehicles 
	
    Lien notice on certificate of title to 2021 Honda CR-V,
    VIN [Redacted]

     

    Existing Lienholder: American Honda Finance Corporation
	Colorado Department of Motor Vehicles 
	Double Brow, LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Mission Holding, LLC	UCC-1 Financing Statement	Colorado Secretary of State
	SCG Holding, LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Lien notice on certificate of title to 2014 Dodge Ram 1500, VIN [Redacted]	Colorado Department of Motor Vehicles 
	Schwazze Biosciences, LLC	UCC-1 Financing Statement	Colorado Secretary of State
	Schwazze IP Holdco LLC	UCC-1 Financing Statement	Colorado Secretary of State
	MIH Manager LLC	UCC-1 Financing Statement	Colorado Secretary of State 
	Emerald Fields Merger Sub, LLC	UCC-1 Financing Statement	Colorado Secretary of State 
	Nuevo Holding, LLC	UCC-1 Financing Statement	New Mexico Secretary of State 
	Nuevo Elemental Holding, LLC	UCC-1 Financing Statement	New Mexico Secretary of State 
	Schwazze New Mexico, LLC	UCC-1 Financing Statement	New Mexico Secretary of State 

 

 

 

    	 	35	 

     

    

 

Schedule 4

Instruments and Tangible Chattel Paper

 

		1.	Purchase and Sale Agreement, dated January 13, 2021, by and between Medicine Man Technologies, Inc. and
Colorado Cannabis Company LLC.

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	36	 

     

    

 

Schedule 5

Type of Organization; Jurisdiction of Organization;
Legal Name; Current Tradename, Former Tradename, FEIN; 

Chief Executive Office; Principal Place of Business;
Inventory Locations

 

	Legal Name	Current Tradename	Former Tradename	Type of Organization	Jurisdiction of Organization	Federal Tax Identification Number	Chief Executive Office	Principal Place of Business	Inventory, Equipment, Etc. 
	Medicine Man Technologies, Inc.	Schwazze 	Medicine Man Technologies, Inc. 	Corporation	Nevada	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	SBUD LLC	Star Buds	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    14655 E. Arapahoe Rd., Aurora, CO 80016

     

    5844 Dahlia St., Commerce City, CO 80022

     

    1640 E. Evans Ave., Denver, CO 80210

     

    9000 N. Federal Blvd., Westminster, CO 80260

     

    5238 W. 44th Ave., Denver, CO 80212

    Denver County

     

    7521 Ute Hwy. #66 Longmont, CO 80503

     

    1156 W. Dillon Rd., Louisville, CO 80027

     

    10100 E. Montview Blvd. Aurora, CO 80010

     

    6924 N. 79th St., Niwot, CO 80503

     

    4690 Brighton Blvd., Denver, CO 80216

    Denver County

     

    1451 Cortez St., Denver, CO 80221

    Denver County

     

    4305 Thatcher Ave., Pueblo, CO 81005

     

    428 S. McCulloch Blvd., Pueblo, CO 81007

     

    Cultivation Facility:

     

    4228 N. York St., Unit 101 Denver, CO 80210

    Denver County

     

 

 

 

 

 

    	 	37	 

     

    

 

 

	PBS HoldCo LLC	
    Purplebee’s

    Star Buds
	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    Manufacturing Facility:

     

    30899 Hwy 50 E. Pueblo, CO 81006

	Schwazze Colorado LLC	Same as company name	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    Distribution Center:

    2498 West 2nd Ave., Denver, CO 80223

	Mesa Organics Ltd	
    Purplebee’s

    Star Buds
	Mesa Organics – Pueblo	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    Manufacturing Facility:

     

    30899 Hwy 50 E. Pueblo, CO 81006

	Mesa Organics II Ltd	Star Buds	Mesa Organics – Ordway	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	611 E. 6th St., Ordway, CO 81063
	Mesa Organics III Ltd	Star Buds	Mesa Organics – Rocky Ford	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	1315 Elm Ave., Rocky Ford, CO 81067
	Mesa Organics IV Ltd	Star Buds	Mesa Organics – Las Animas	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    420 Bent Ave., Las Animas, CO 81054

     

	Medicine Man Consulting, Inc.	Same as company name.	N/A	Colorado corporation	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	Two Js LLC	The Big Tomato	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    695 Billings St., Aurora, CO 80011

     

    Outside Locations of Collateral:

     

    RV Vault

    2151 S Rome Way

    Aurora, CO 80019

    Arapahoe County

 

 

 

    	 	38	 

     

    

 

 

	Double Brow, LLC	Star Buds	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	Mission Holding, LLC	Same as company name.	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	SCG Holding, LLC	Same as company name.	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    Cultivation Facility:

     

    853 Greenhorn Mountain Cir., Rye, CO 81069

	Schwazze Biosciences, LLC	Same as company name.	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	Schwazze IP Holdco LLC	Same as company name.	N/A	Limited liability company	Colorado	[Redacted]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	MIH Manager LLC	Same as company name.	N/A	Limited liability company	Colorado	Uses Parent FEIN	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	Emerald Fields Merger Sub, LLC	Same as company name.	N/A	Limited liability company	Colorado	[Requested]	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	
    4880 Havana Street, Suite 201, Denver CO. 80239

    Denver County
	N/A
	Nuevo Holding, LLC	Same as company name.	N/A	Limited liability company	New  Mexico	[Requested]	
    4880 Havana Street Ste 201

    Denver, CO 80239
	
    1920 Columbia Drive SE

    Albuquerque, NM 87106 [2]
	N/A
	Nuevo Elemental Holding, LLC	Same as company name.	N/A	Limited liability company	New  Mexico	[Requested]	
    4880 Havana Street Ste 201

    Denver, CO 80239
	
    1920 Columbia Drive SE

    Albuquerque, NM 87106
	N/A
	Schwazze New Mexico, LLC	Same as company name.	N/A	Limited liability company	New  Mexico	[Requested]	
    4880 Havana Street Ste 201

    Denver, CO 80239
	
    1920 Columbia Drive SE

    Albuquerque, NM 87106
	N/A

 

 

 

 

    	 	39	 

     

    

 

Schedule 6

Intellectual Property

 

Patents

None.

 

Trademarks

	
    Registration Number/Application Number

     
	
    Status

     

     
	
    Registration/

    Issue Date

     
	
    Mark

     

     
	
    Owner/

    Assignee

     
	
     

    Jurisdiction

	20141685274	Live	11-08-2014	
    

    (Purplebee’s Logo)
	Mesa Organics Ltd	Colorado
	20141685283	Live	11-08-2014	Purplebee’s	Mesa Organics Ltd	Colorado
	20141763087	Live	12-18-2014	Purplebee’s

(tradename)	Mesa Organics Ltd	Colorado
	20141763167	Live	12-18-2014	
    

    (Mesa Organics Logo)
	Mesa Organics Ltd	Colorado
	20141763084	Live	12-8-2014	Mesa Organics (tradename)	Mesa Organics Ltd	Colorado
	20141765000	Live	12-08-2014	Mesa Organics	Mesa Organics Ltd	Colorado
	20191573121	Live	07-19-2019	Mesa Organics – Las Animas (tradename)	Mesa Organics IV Ltd	Colorado
	20181757069	Live	09-25-2018	Mesa Organics – Ordway 

(tradename)	Mesa Organics II Ltd	Colorado
	20191573127	Live	07-19-2019	
    Mesa Organics – Pueblo

    (tradename)
	Mesa Organics Ltd	Colorado
	20191387357	Live	05-04-2019	Mesa Organics – Rocky Ford (tradename)	Mesa Organics III Ltd	Colorado
	20171537130	Live	07-17-2017/ 	Pure CO2.	Mesa Organics Ltd	Colorado
	20181796049	Live	10-07-2018		Mesa Organics Ltd	Colorado
	20201410613 	Live	05-06-2020	Schwazze	Mesa Organics II Ltd	Colorado
	20201410636 	Live	05-06-2020	Schwazze	Mesa Organics Ltd	Colorado
	20201410655	Live	05-06-2020	Schwazze	Mesa Organics III Ltd	Colorado
	
    20201410663

     
	Live	05-06-2020	Schwazze	Mesa Organics IV Ltd	Colorado
	3810013	Live	06-29-2010	THE BIG TOMATO	Two J’s LLC	USPTO
	5164677	Live	03-21-2017		Medicine Man Technologies,
Inc.	USPTO
	88832667	Pending	03-12-2020 (filing date) 		Medicine Man Technologies, Inc. 	USPTO 
	88879966	Pending	02-09-2021 (filing date) 		Medicine Man Technologies, Inc. 	USPTO 

 

 

    	 	40	 

     

    

 

 

	
    Registration Number/Application Number

     
	
    Status

     

     
	
    Registration/

    Issue Date

     
	
    Mark

     

     
	
    Owner/

    Assignee

     
	
     

    Jurisdiction

	
    20201245809

     
	Live	03-18-2020	Schwazze	Medicine Man Technologies, Inc. 	Colorado
	88832670	Pending 	03-12-2020	SCHWAZZBERRY	Medicine Man Technologies, Inc. 	USPTO
	90835598	Pending	07-19-2021	GROW FORTH	Medicine Man Technologies, Inc. 	USPTO

 

Copyrights

None.

 

Domain Names:

Mesaorganics.com

Purplebees.com

Medicinemantechnologies.com

Schwazze.com

 

Intellectual Property Licenses

		1.	Trademark License Agreement, dated December 17, 2020, by and between Star Brands, LLC and Medicine Man
Technologies, Inc.

		2.	Technology License Agreement, dated May 1, 2014, by and between Medicine Man Production Corporation and
Medicine Man Technologies, Inc.

 

 

 

 

    	 	41	 

     

    

 

Schedule 8

Deposit Accounts

 

	Company	Bank	Address	Account Number	Account Type
	Medicine Man Technologies, Inc. 	[Redacted]	

[Redacted]	[Redacted]*	Checking Account  
	Checking Account
	Investment Account
	
     

    Checking Account

	Investment Account
	
     

    Two J’s LLC

     
	
     

    [Redacted]
	

[Redacted]	[Redacted]*	 Checking Account 
	
     

    SBUD LLC 
	
     

    [Redacted]
	

[Redacted]	
     

    [Redacted] 
	Checking Account 
	Checking Account 
	
     

    SCG Holding, LLC

     
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    Checking Account

	
     

    PBS Holdco LLC

     
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    Checking Account

	
     

    Double Brow, LLC

     
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    [Redacted]
	
     

    Checking Account

* Denotes Deposit Account in which the Collateral
Agent will have a perfected First Priority security interest by Control. For each account where there is no asterisk, an applicable party
to the Intercreditor Agreement will have a perfected First Priority security interest by Control, in accordance with the terms of the
Intercreditor Agreement.

 

Current Deposit Control Agreements:

 

		1.	Deposit Control Agreement, dated October 1, 2021, by and among PBS Holdco LLC, SCG Holding, LLC, GGG
Partners, LLC, and [Redacted].

 

 

 

    	 	42	 

     

    

 

Schedule 9

Commercial Tort Claims

None.

 

 

 

 

 

 

    	 	43	 

     

    

 

Schedule 10

 

Real Property

 

	Company	Location	Leasehold

or Fee	Lessor or Mortgagee	Lease or Mortgage Terms	Other Liens
	Mesa Organics I	30899 Hwy 50 East, Buildings A, B, C and D	Leased property	SRE SCH Pueblo, LLC	September 29, 2031	
    N/A

     

	Mesa Organics II	611 E 6th Street	Leased property	SRE SCH Ordway, LLC	September 29, 2031	
    N/A

     

	Mesa Organics III	1315 Elm Avenue	Leased property	SRE SCH Rocky Ford, LLC	September 29, 2031	
    N/A

     

	Mesa Organics IV	420 Bent Avenue	Leased property	SRE SCH Las Animas, LLC	September 29, 2031	
    N/A

     

	Two J’s  LLC	695 Billings St. Units A-B, C-D, E and F	Leased property	Cornerstone Equity, LLC	June 30, 2023	
    N/A

     

	Medicine Man Technologies, Inc. dba Schwazze Corporate	4880 Havana Street, Suite 200	Leased property	Havana Gold, LLC	
    Three month rolling periods effective March 1,
    2020

     
	
    N/A

     

	SCG Holding, LLC	853 Greenhorn Mountain, Cir., Rye, CO 81067	Fee	N/A	N/A	N/A
	SBUD LLC	14655 E. Arapahoe Rd., Aurora, CO 80016	Leased property	14655 Arapahoe LLC	March 2, 2024	
    N/A

     

	5844 Dahlia St., Commerce City, CO 80022	Leased property	5844 Ventures LLC	November 30, 2023	
    N/A

     

	1640 E. Evans Ave., Denver, CO 80210	Leased property	Evans Associates	March 2, 2024	
    N/A

     

	9000 N. Federal Blvd., Westminster, CO 80260	Leased property	Fadi LLC	June 12, 2027	
    N/A

     

	5238 W. 44th Ave., Denver, CO 80212	Leased property	5238 W 44th LLC	March 2, 2024	
    N/A

     

	7521 Ute Hwy. #66 Longmont, CO 80503	Leased property	Smetana Partnership LLP	November 30, 2022	
    N/A

     

	1156 W. Dillon Rd., Louisville, CO 80027	Leased property	Colony Square II Property Managers, LLC	December 31, 2022	
    N/A

     

	10100 E. Montview Blvd. Aurora, CO 80010	Leased property	Montview Real Estate LLC	March 2, 2024	
    N/A

     

	6924 N. 79th St., Niwot, CO 80503	Leased property	Colorado Real Estate Holdings, LLC	November 30, 2023	
    N/A

     

	4690 Brighton Blvd., Denver, CO 80216	Leased property	Omar Joudeh	March 2, 2024	
    N/A

     

	1451 Cortez St., Denver, CO 80221	Leased property	MiDaPAD Holdings LLC	May 31, 2025	
    N/A

     

	4305 Thatcher Ave., Pueblo, CO 81005	Leased property	John Hernandez	
    

    January 31, 2025

     
	
    N/A

     

	428 S. McCulloch Blvd., Pueblo, CO 81007	Leased property	428 S MCCullough LLC	November 30, 2023	
    N/A

     

	
    4228 N. York St., Unit 101 Denver, CO 80210

     
	Leased property	Omar Joudeh	March 2, 2024	
    N/A

     

	Schwazze Colorado LLC	2498 West 2nd Ave., Denver, CO 80223	Leased property 	SHWZ 2nd Ave.LLC	December 1, 2022	N/A

 

 

 

    	 	44	 

     

    

 

Schedule 11

Motor Vehicles and Other Titled Collateral

 

Motor Vehicles:

 

	Company 	Unit Number 	VIN 	Title State 	Existing Lienholder 	Make/Model/Year 
	SBUD LLC	1	[Redacted]	Colorado	N/A	2018 Subaru Outback
	Two J's LLC	1	[Redacted]	Colorado	N/A	2015 Mercedes Cargo Van
	2	[Redacted]	Colorado	N/A	2014 Mercedes Cargo Van
	3	[Redacted]	Colorado	American Honda Finance Corporation	2021 Honda CR-V
	4	[Redacted]	Colorado	N/A	2022 Honda HR-V
	5	[Redacted]	Colorado	N/A	2022 Honda HR-V
	SCG Holding, LLC	1	[Redacted]	Colorado	N/A	2014 Dodge Ram 1500

 

Other Titled Collateral: None.

 

 

 

    	 	45	 

     

    

 

Schedule 12

Policies of Insurance

 

	Policy Type	Carrier	Policy Number
	Crime	Berkley Insurance Company	[Redacted]
	Cyber Liability	Indian Harbor Insurance Company	[Redacted]
	Directors & Officers - Public	Indian Harbor Insurance Company	[Redacted]
	Directors & Officers Excess - Public	Trisura Specialty Insurance Company	[Redacted]
	General Liability	James River Insurance Company	[Redacted]
	Property - Commercial	Dorchester Insurance Company, Ltd.	[Redacted]
	Travel Accident	Berkley Life and Health Insurance Company	[Redacted]
	Worker's Compensation	Pinnacol Insurance Company	[Redacted]

 

 

 

 

    	 	46	 

     

    

 

Schedule 13

Cannabis Licenses

 

	Grantor	State MED License No.	Local License No.	Jurisdiction
	PBS Holdco LLC	402R-00514	N/A	Pueblo County, CO
	PBS Holdco LLC	404R-00181	N/A	Pueblo County, CO
	Mesa Organics II LTD	402R-00792	N/A	Ordway, CO
	Mesa Organics III LTD	402R-00765	N/A	Rocky Ford, CO
	Mesa Organics IV LTD	402R-00841	N/A	Las Animas, CO
	SCG Holding, LLC	403R-00573	CUP 15-003	Huerfano County, CO
	SBUD LLC	402R-00177	N/A	Pueblo County, CO
	SBUD LLC	402R-00410	N/A	Pueblo County, CO
	SBUD LLC	402R-00214	N/A	Louisville, CO
	SBUD LLC	402R-00691	N/A	Federal Heights, CO
	SBUD LLC	402R-00446	AC-2020-00009	Adams County, CO
	SBUD LLC	402R-00701	RMB-16-0008	Boulder County, CO
	SBUD LLC	402R-00708	RMB-17-0006	Boulder County, CO
	SBUD LLC	402R-00577	N/A	Commerce City, CO
	SBUD LLC	402R-00021	2013-BFN-1068934	City and County of Denver, CO
	SBUD LLC	402R-00316	N/A	Aurora, CO
	SBUD LLC	402R-00276	N/A	Aurora, CO
	SBUD LLC	402R-00022	2013-BFN-1068933	City and County of Denver, CO
	SBUD LLC	402-00170	2010-BFN-145876	City and County of Denver, CO
	SBUD LLC	402R-00818	N/A	Town of Mountain View, CO
	SBUD LLC	402-01310	N/A	Town of Mountain View, CO
	SBUD LLC	403-00256	2012-BFN-1060530	City and County of Denver, CO
	SBUD LLC	403R-00027	2013-BFN-1068936	City and County of Denver, CO
	SBUD LLC – Delivery License	605R-00016	21-000102-MSL and 21-000120-MSL	Aurora, CO
	SBUD LLC – Delivery License	605R-00041	2013-BFN-1068933 and 2013-BFN-1068934	City and County of Denver, CO
	SBUD LLC – Delivery	505-00020	2010-BFN-145876	City and County of Denver, CO

 

 

 

    	 	47	 

     

    

 

EXHIBIT A

 

FORM OF JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT (the
“Joinder Agreement”), dated as of [●] is made by [●], a [●] (the “Joining Grantor”),
and delivered to Chicago Atlantic Admin LLC in its capacity as collateral agent (in such capacity and together with any successors in
such capacity, the “Collateral Agent”) under the Security Agreement (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “Security Agreement”; capitalized terms used but not otherwise
defined herein shall have the meanings assigned to such terms in the Security Agreement), dated as of [●] made by and among Medicine
Man Technologies, Inc., d/b/a Schwazze, a Nevada corporation, Double Brow, LLC, a Colorado limited liability company, Mission Holding,
LLC, a Colorado limited liability company, SCG Holding, LLC, a Colorado limited liability company, Schwazze Colorado LLC, a Colorado limited
liability company, Schwazze Biosciences, LLC, a Colorado limited liability company, SBUD LLC, a Colorado limited liability company, Medicine
Man Consulting, Inc., a Colorado corporation, Two J’s LLC d/b/a The Big Tomato, a Colorado limited liability company, Mesa Organics
Ltd. d/b/a Mesa Organics/Purplebee’s, a Colorado limited corporation, Mesa Organics II Ltd, a Colorado limited corporation, Mesa
Organics III Ltd, a Colorado limited corporation, Mesa Organics IV Ltd, a Colorado limited corporation, Schwazze IP Holdco LLC, a Colorado
limited liability company, MIH Manager LLC, a Colorado limited liability company, and PBS Holdco LLC, d/b/a Mesa Organics/Purplebee’s,
a Colorado limited corporation, Emerald Fields Merger Sub, LLC, a Colorado limited liability company, Schwazze New Mexico, LLC, a New
Mexico limited liability company, Nuevo Holding, LLC, a New Mexico limited liability company, and Nuevo Elemental Holding, LLC, a New
Mexico limited liability company as grantors, pledgors, assignors, debtors and guarantors (together with any successors in such capacities,
the “Grantors”, and each, a “Grantor”), in favor of the Collateral Agent.

 

WHEREAS, the Joining Grantor
is a Subsidiary of Grantor and required by the terms of the Indenture to become a Guarantor (as defined in the Indenture) and be joined
as a party to the Security Agreement as a Grantor;

 

WHEREAS, this Joinder Agreement
supplements the Security Agreement and is delivered by the Joining Grantor pursuant to Section 3.05 of the Security Agreement; and

 

WHEREAS, the Joining Grantor
will materially benefit directly and indirectly from the Loans made available and to be made available to the Grantors by the Lender
under the Indenture;

 

NOW, THEREFORE, the Joining
Grantor hereby agrees as follows with the Collateral Agent, for the ratable benefit of the Secured Parties:

 

1.                 
Joinder. The Joining Grantor hereby irrevocably, absolutely and unconditionally becomes a party to the Security Agreement
as a Grantor and agrees to be bound by all the terms, conditions, covenants, obligations, liabilities and undertakings of each Grantor
or to which each Grantor is subject thereunder, all with the same force and effect as if the Joining Grantor were a signatory to the
Security Agreement. Without limiting the generality of the foregoing, as collateral security for the payment and performance in full
of all the Secured Obligations, the Joining Grantor hereby pledges to the Collateral Agent for the ratable benefit of the Secured Parties,
and grants to the Collateral Agent for the ratable benefit of the Secured Parties a Lien on and security interest in and to, all of its
right, title and interest in, to and under the Collateral owned by it, wherever located, and whether now existing or hereafter arising
or acquired from time to time and expressly assumes all obligations and liabilities of a Grantor thereunder.

 

 

 

 

 

    	 	A-1	 

     

    

 

2.                 
Affirmations. The Joining Grantor hereby makes each of the representations and warranties and agrees to each of the covenants
applicable to the Grantors contained in the Security Agreement. The Joining Grantor also represents and warrants to the Collateral Agent
and the Secured Parties that (i) it has the [●] power and authority, and the legal right, to make, deliver and perform this Joinder
Agreement and has taken all necessary [●] action to authorize the execution, delivery and performance of this Joinder Agreement;
(ii) no consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other
Person that has not been obtained, made or completed is required in connection with the execution, delivery and performance, validity
or enforceability of this Joinder Agreement; (iii) this Joinder Agreement has been duly executed and delivered on behalf of the Joining
Grantor; and (iv) this Joinder Agreement constitutes a legal, valid and binding obligation of the Joining Grantor enforceable against
such Joining Grantor in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

3.                 
Supplemental Schedules. Attached to this Joinder Agreement are duly completed schedules (the “Supplemental
Schedules”) supplementing the respective Schedules to the Security Agreement. The Joining Grantor represents and warrants
that the information contained on each of the Supplemental Schedules with respect to such Joining Grantor and its properties is true,
complete and accurate as of the date hereof. Such Supplemental Schedules shall be deemed to be part of the Security Agreement.

 

4.                 
Severability. The provisions of this Joinder Agreement are independent of and separable from each other. If any provision
hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability
of any other provision hereof, but this Joinder Agreement shall be construed as if such invalid or unenforceable provision had never
been contained herein.

 

5.                 
Counterparts. This Joinder Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page to this Joinder Agreement by facsimile or in electronic PDF format shall be effective as delivery of
a manually executed counterpart of this Joinder Agreement.

 

6.                 
Delivery. The Joining Grantor hereby irrevocably waives notice of acceptance of this Joinder Agreement and acknowledges
that the Secured Obligations are incurred, and credit extensions under the Indenture and the other Note Documents made and maintained,
in reliance on this Joinder Agreement and the Joining Grantor’s joinder as a party to the Security Agreement as herein provided.

 

7.                 
Governing Law; Venue; Waiver of Jury Trial. This Joinder Agreement and any claim, controversy, dispute or cause of action
(whether in contract or tort or otherwise) based upon, arising out of or relating to this Joinder Agreement and the transactions contemplated
hereby and thereby shall be governed by and construed in accordance with the laws of New York. The provisions of Section 9.09 of the
Security Agreement are hereby incorporated by reference as if fully set forth herein.

 

[ Signature Page Follows ]

 

 

 

 

 

 

 

 

    	 	A-2	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Joinder Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.

 

[●]

 

By: _______________________________

Name:

Title:

 

Address for Notices:

 _______________________________

 _______________________________

_______________________________

 

Email:

 

AGREED TO AND ACCEPTED:

 

CHICAGO ATLANTIC ADMIN LLC,

as Collateral Agent

 

By: _______________________________

Name: Peter Sack

Title: Managing Director & Co-President

 

Address for Notices:

Chicago Atlantic Admin, LLC

420 N. Wabash Avenue, Suite 500

Chicago, IL 60611

Email: PSack@chicagoatlantic.com

 

 

 

 

 

 

 

 

 

 

 

    	 	A-3

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