Document:

Exhibit 10.12

 

CERTAIN CONFIDENTIAL INFORMATION (MARKED
BY BRACKETS AS “[***]”) HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD
BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

THIRD AMENDED AND RESTATED

 

MEMBERSHIP INTEREST AND STOCK PURCHASE
AGREEMENT

 

THIS THIRD AMENDED
AND RESTATED MEMBERSHIP INTEREST AND STOCK PURCHASE AGREEMENT (“Agreement”) is made and entered into as of the
26th day of February, 2019 (the "Effective Date"), by and between VIREO HEALTH OF ARIZONA, LLC, a Delaware
limited liability company (as successor in interest to VIREO HEALTH, INC., a Delaware corporation) (collectively “Buyer”);
and MARK WRIGHT, a married man, SHANE HOWELL, a married man, GORDON HAMILTON, a married man, and ROBERT KIVLIGHN, an unmarried
man, all of whom are the sole record and beneficial owners and members of one hundred percent (100%) of the issued and outstanding
equity interests, of ELEPHANT HEAD FARM, LLC ("EHF") and RETAIL MANAGEMENT ASSOCIATES, LLC ("RMA"),
each an Arizona limited liability company (collectively, the "EHF Members" and the "RMA Members");
and ROBERT KIVLIGHN and GORDON HAMILTON, both of whom are the sole record and beneficial shareholders of one hundred percent (100%)
of the issued and outstanding shares and interests, and are actively engaged in the operation of, LIVE FIRE, INC. ("LFI")
and SACRED PLANT, INC. ("SPI"), each an Arizona corporation (collectively, the "LFI Owners"
and the "SPI Owners"), respectively (collectively, the EHF Members, RMA Members, LFI Owners, and SPI Owners are
referred to herein as "Sellers") (each with Buyer a “Party” and together the “Parties”).
EHF, RMA, LFI, SPI and ANR, defined below, are collectively referred to herein as the "Companies". Each of the
Sellers hereby appoints ROBERT KIVLIGHN and GORDON HAMILTON (collectively, the "Sellers' Representatives") as
his attorney in fact, authorized hereby to act in his stead in performing the Sellers' obligations hereunder except in the event
this Agreement or any document deliverable hereunder requires the signature of a Seller.

 

I.             WHEREAS,
the parties entered into that certain Membership Interest and Stock Purchase Agreement dated November 1, 2018 (the “Original
Purchase Agreement”) and subsequently, entered into that certain (i) Amended and Restated Membership Interest and Stock
Purchase Agreement dated November 14, 2018, (the “First Amended Purchase Agreement”); and (ii) Second Amended
and Restated Membership Interest and Stock Purchase Agreement dated February 26, 2019 (the “Second Amended Purchase
Agreement”, and collectively with the Original Purchase Agreement and First Amended Purchase Agreement, the “Amended
Purchase Agreement”); and

 

II.            WHEREAS,
the parties now desire to further amend and restate the Amended Purchase Agreement in its entirety as set forth herein for the
purposes of, and on the terms and conditions set forth in, this Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual obligations set forth in this Agreement, the Parties hereto agree that the
foregoing Recitals are true and are incorporated herein, and the Parties further agree as follows:

 

    1

     

    

 

RECITALS

 

A.            WHEREAS,
pursuant to and in compliance with Title 9; Chapter 17 Department of Health Services Medical Marijuana Program (the “AZDHS
Rules”) and A.R.S. § 36-2801 et seq., the Arizona Medical Marijuana Act, as amended from time to time (the
 “Act”) (the AZDHS Rules and the Act are collectively referred to herein as the “AMMA”),
the Arizona Department of Health Services (“AZDHS”) awarded Arizona Natural Remedies, Inc., an Arizona
nonprofit corporation (“ANR”), a medical marijuana dispensary registration certificate (the "Certificate");

 

B.            WHEREAS,
ANR operates the Arizona Natural Remedies medical marijuana dispensary located at 22041 N. 23rd Avenue, Phoenix, Arizona 85027
(the “Dispensary”), pursuant to Certificate ID No. 00000028DCGV00174888, pursuant to a certain Approval
to Operate issued by AZDHS (the "ATO") and a special use permit issued by the City of Phoenix, Arizona (the "SUP")
(the Certificate, ATO and SUP shall be collectively referred to as the "Certificate"), and leases the real property
thereof from MC Development LLC, an Arizona limited liability company, by written lease, a copy of which (and all amendments, exhibits
and addenda thereto) has been delivered to Buyer by Sellers (the "Dispensary Lease");

 

C.            WHEREAS,
all of the persons on the board of directors of ANR (the "ANR Board"), LFI (the "LFI Board")
and SPI (the "SPI Board") and all of the officers of ANR (the "ANR Officers"), LFI (the "LFI
Officers") and SPI (the "SPI Officers") are the Sellers;

 

D.            WHEREAS,
ANR, as the holder of the Certificate, is in the business of cultivating, dispensing, producing, processing, extracting, distributing
and selling at retail and wholesale medical marijuana (collectively, “Marijuana”) and other lawful business
(collectively, the "Business") from the Dispensary and an offsite cultivation facility (the "Offsite Facility")
located at 2731 E. Frontage Road, Amado, Arizona 85645 pursuant to an ATO and SUP from the County of Santa Cruz for cultivation,
extraction and infusion and the AMMA, and leases the real property thereof from Oswald Cattle Company, an Arizona corporation,
by written lease, a copy of which (and all amendments, exhibits and addenda thereto) has been delivered to Buyer by Sellers (the
 "Cultivation Lease"), (the Dispensary Lease and the Cultivation Lease are collectively referred to herein as "Leases");

 

E.            WHEREAS,
pursuant to that certain Management Services Agreement between ANR, as principal, and RMA, as contractor, dated December 15,
2015, a copy of which (and all amendments, exhibits and addenda thereto) will be delivered to Buyer by Sellers, RMA is providing
certain management services to ANR with respect to the operation of the Dispensary and the appointment of the ANR Board and the
ANR Officers, and pursuant to that certain Cultivation Management Services Agreement between OPEN AIR MANAGEMENT, LLC, an Arizona
limited liability company ("OAM"), a contractor to ANR, as principal, and EHF and/or SANTA CRUZ CONSULTING GROUP,
LLC, an Arizona limited liability company ("SCCG"), as contractor, dated May 13, 2016, whereby EHF is providing
certain management services to ANR with respect to the operation of the Offsite Facility, a true, correct and complete copy of
which (and all amendments, exhibits and addenda thereto) has been delivered to Buyer by Sellers;

 

    2

     

    

 

F.            WHEREAS,
notwithstanding the illegality of possessing or using Marijuana under the Controlled Substance Act, 21 U.S.C. Section 812(b) (the
 “CSA”), Buyer desires to purchase all of the membership interests and shares of Sellers in each of EHF, RMA,
LFI and SPI as more particularly described in Exhibit 1 attached hereto and incorporated herein, and Sellers desire
to sell their membership interests and shares in the foregoing entities upon the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

1.            Purchase
and Assignment.

 

a.            Membership
Interests; Shares. Subject only to the other terms and provisions contained in this Agreement, and in exchange for the Purchase
Price, defined in Section 2 below, and other consideration described herein the sufficiency of which is mutually acknowledged,
(i) each of the Sellers hereby sells, assigns, and transfers to Buyer, and Buyer hereby purchases and acquires from the Sellers,
one hundred percent (100%) of the issued and outstanding equity interests in RMA and EHF, including all rights to participate in
voting and receipt of distributions, free and clear of all Liens, defined below (collectively, the "Membership Interests"),
(ii) each of ROBERT KIVLIGHN and GORDON HAMILTON, hereby sells, assigns, and transfers to Buyer, and Buyer hereby purchases
and acquires from such Sellers, one hundred percent (100%) of the issued and outstanding equity interests in LFI and SPI including
all rights to participate in voting and receipt of dividends, free and clear of all Liens (collectively, the "Shares")
(collectively, the Membership Interests and the Shares are referred to herein as the "Ownership Interests"). The
Ownership Interests transferred hereunder are described in additional detail in Exhibit 1 attached hereto.

 

b.            Resignations.
Except as otherwise provided by Section 1(e) below, and as additional consideration for the transactions of this Agreement,
each Seller shall, upon the request of Buyer and effective with Closing, resign from any and all positions held with the Companies,
including but not limited to the following (collectively, the "Resignations"):

 

i.              Board
Positions. From the ANR Board, the LFI Board and the SPI Board;

 

ii.             Officers.
From his engagement as an ANR Officer, LFI Officer and SPI Officer; and

 

iii.            Employment.
From any and all formal, written, informal or verbal employment agreements, contracts and subcontracts of or with EHF, RMA, LFI,
SPI and ANR;

 

Each of the Sellers shall submit his respective
Resignations in writing in form and substance satisfactory to Buyer.

 

c.            Filings.
Prior to but effective with the Closing each of the Sellers shall execute and deliver to Buyer, all such documents and instruments
required by Buyer to effectuate the Resignations including, without limitation, forms relating to the following (collectively,
the "Filings"):

 

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i.              Appointments
to the ANR Board, the LFI Board and the SPI Board (collectively, the "Boards") of all such persons designated
in a writing from Buyer to Sellers as replacements to the Boards (collectively the "Replacement Boards"), after
each of the Boards shall have met in a special or annual meeting duly constituted and noticed to elect the Replacement Boards by
resolution without condition or restriction;

 

ii.             Written
notice of the appointment of the Replacement Boards for filing with the Arizona Corporation Commission (the "ACC")
and the appointment of a replacement statutory agent of Buyer's choosing for each of the Companies;

 

iii.            Written
designation to AZDHS that each of Sellers' Dispensary agent cards and status as a principal of ANR have been terminated effective
as of Closing, except with respect to any of the Sellers designated by Buyer to be employed by Buyer after Closing pursuant to
the Employment Agreements (defined below);

 

iv.            Written
notice of the purchase of the Membership Interests in EHF and RMA and the Resignations for filing with the ACC by Buyer; and

 

v.             Written
designations to AZDHS of the appointment by ANR of such persons designated in writing from Buyer to Sellers to be replacements
as of Closing of the pre-Closing principals of ANR (the "Replacement Principals") and online applications to AZDHS
of the appointment of such Replacement Principals.

 

d.            Consents;
Estoppel Certificates. Any and all approvals, consents or other authorizations (collectively, the "Consents")
of third parties reasonably determined by Buyer to be necessary to Sellers transfer of the Ownership Interests to Buyer free and
clear of all Liens. Without limiting the foregoing, Sellers shall collect and deliver to Buyer in accordance with Section 3
below, an estoppel certificate (collectively, the "Estoppel Certificates"), together with and any and all Consents
required under: (i) that certain Letter Agreement dated May 24, 2017 between ANR and TruMed Dispensaries, the tradename
of AZ Compassionate Care Inc., an Arizona non-profit corporation and an Arizona licensed dispensary (collectively, "TruMed"),
regarding cultivation of Marijuana for TruMed Dispensaries (the “TruMed Agreement”); and (ii) each of the
Leases.

 

e.            Cooperation.

 

(i)            In
the event that prior to or after Closing personal and real property assets owned, leased, licensed, occupied or used by the Companies
are not titled in the name of the relevant Company, Sellers agree to convey to Buyer (or the Company designated by Buyer) all such
assets pursuant to terms and in the forms required by Buyer to effectuate clear title and such shall be included in the term "Assets".

 

(ii)           Sellers
further agree to fully cooperate with Buyer and the Companies in connection with the transfer to Buyer's designee, renewal and
maintenance of all licensing and administrative permits, consents, applications, and transition issues relating to the sale of
the Ownership Interests and associated transfer of control of the Assets including, without limitation, the Filings with AZDHS
and the ACC, the maintenance of all SUPs and ATOs, including without limitation the timely renewal of the Certificate and SUPs
with governmental authorities, the Consents and otherwise. Without limiting the foregoing, Sellers shall not resign (or certain
of them as agreed to by Buyer and Sellers), nor fail to follow any administrative procedure for maintaining the Certificate, and
shall make certain that the Certificate is current and in full force and effect through the Closing, such that at Closing the Certificate,
ATOs and SUPs will not expire prior to December 31, 2018.

 

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f.             Corporate
Documents. Sellers shall deliver to Buyer: (i) a certificate of status of each of the Companies issued on or within five
(5) days prior to the expiration of the Contingency Period by the ACC; and (ii) a certificate of the secretary, dated
as of the Closing Date as to (A) the Articles of Organization and Articles of Incorporation, where applicable, of each of
the Companies; (B) the Bylaws of ANR, LFI and SPI and the Operating Agreements of EHF and RMA, (C) joint resolutions
of the Boards of ANR, LFI and SPI and Sellers' resolutions of EHF and RMA authorizing the execution, delivery and performance of
this Agreement and consummation of the transaction contemplated hereby, and (D) incumbency certificates and signatures of
the Officers or other authorized signatories of each of the Companies.

 

g.            Employment
Agreements. Each of Gordon Hamilton and Robert Kivlighn (collectively, the “Employees”) shall, on the Closing
Date, enter into a written employment agreement with Buyer or one (1) or more of the Companies, in form and substance reasonably
agreeable to Employees and Buyer (the “Employment Agreements”). Such Employment Agreements are a material inducement
to Buyer acquiring the Ownership Interests from Sellers hereunder.

 

h.            Leasehold
Title Policy. Sellers acknowledge that in connection with Closing, Buyer intends to acquire a leasehold policy of title insurance
with regard to each of the Dispensary, the Offsite Facility and each of the Leases applicable thereto. Accordingly, Sellers agree
to: (i) cooperate with Buyer in obtaining any and all abstracts or certificates of title, prior title policies, surveys and
other title evidence (collectively, the "Title Evidence") required by Buyer's chosen title company (the "Title
Company"), to the extent such Title Evidence is in the possession of Sellers or the Companies; and (ii) execute and
deliver to Buyer at Closing, any and all documents reasonably required by the Title Company as a condition to issuance of a valid
leasehold policy of title insurance for each of the Dispensary, Offsite Facility and each of the Leases applicable thereto (collectively,
the "Title Documents").

 

2.             Purchase
Price and Payment.

 

a.            Purchase
Price. The purchase price for the Ownership Interests shall be TEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($10,500,000) in cash
and FIVE MILLION ($5,000,000) in Parent Shares (defined below) (collectively, the “Purchase Price”) payable
as follows:

 

(i)            Deposit.

 

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A.            Buyer
has deposited with Sellers the amount of ONE HUNDRED FIFTY THOUSAND AND 00/100 U.S. DOLLARS ($150,000.00) (the “Initial
Deposit”), which is non-refundable to Buyer for any reason other than the default of one (1) or more of the Sellers
of this Agreement for soliciting, entertaining offers from, negotiating with or in any manner encouraging, discussing, or accepting
any proposal of any person relating to the transactions provided in this Agreement, in whole or in part, whether directly or indirectly,
through a purchase, merger, consolidation, or otherwise, other than sales of inventory in the ordinary course, or for failing to
cause the Companies from doing any of the above acts (the "Refundable Event"). Notwithstanding the preceding,
receipt by a Seller of an unsolicited offer, by itself, shall not be deemed a Refundable Event. In the event the Parties close
the transactions contemplated by this Agreement, the Deposit shall be credited to the portion of the Purchase Price allocable to
EHF at Closing, defined in Section 2(a)(ii)(A)(I) below.

 

B.             Contemporaneously
with the execution of the Amended Purchase Agreement, Buyer deposited with Sellers the amount of FIVE HUNDRED THOUSAND AND 00/100
U.S. DOLLARS ($500,000.00) (the "Additional Deposit").

 

C.             Contemporaneously
with the execution of this Agreement, Buyer has deposited with Sellers the amount of FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($500,000.00)
(the “Second Additional Deposit” and together with the Additional Deposit and the Initial Deposit, the “Deposit”),
which Deposit is non-refundable to Buyer for any reason other thatn a Refundable Event.

 

(ii)           Payments
at Closing. At Closing Buyer shall pay the balance of the Purchase Price as follows:

 

A.            (I) FOUR
MILLION ONE HUNDRED THOUSAND AND 00/100 U.S. DOLLARS ($4,100,000.00) by wire transfer of immediately available funds, which upon
Closing shall be paid to Sellers in proportion to their respective Ownership Interests in EHF; and (II) FIVE MILLION TWO HUNDRED
FIFTY THOUSAND AND 00/100 U.S. DOLLARS ($5,250,000.00) by wire transfer of immediately available funds, which upon Closing shall
be paid to Sellers in proportion to their respective Ownership Interests in RMA (collectively, the “Down Payment”);

 

B.             EIGHT
THOUSAND FOUR HUNDRED AND THREE Multiple Voting Shares (as defined on page 77 (section 10.1) of the Listing Statement - -
Form 2A, dated March 19, 2019 for Vireo Health International, Inc.) of stock in Vireo Health International, Inc.,
issuable to ROBERT KIVLIGHN and GORDON HAMILTON, in equal parts, in consideration of ROBERT KIVLIGHN and GORDON HAMILTON's transfer
of their respective Shares in and to LFI (the "LFI Shares").

 

C.             EIGHT
THOUSAND FOUR HUNDRED AND THREE Multiple Voting Shares (as defined on page 77 (section 10.1) of the Listing Statement - -
Form 2A, dated March 19, 2019 for Vireo Health International, Inc.) of stock in Vireo Health International, Inc.,
issuable to ROBERT KIVLIGHN and GORDON HAMILTON, in equal parts, in consideration of ROBERT KIVLIGHN and GORDON HAMILTON's transfer
of their respective Shares in and to SPI (the "SPI Shares"). The LFI Shares and the SPI Shares shall be collectively
referred to herein as the "Parent Shares".

 

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b.            Opening;
Closing; Closing Costs. The closing of the transactions contemplated by this Agreement shall take place on March 31, 2019
or at such earlier date as mutually agreed upon in writing by Buyer and Sellers (the “Closing” (or “Closing Date”
or similar words)).

 

c.            Assumed
Liabilities. On Closing and subject to the terms and conditions of this Agreement, Buyer agrees that each of the Companies'
obligations and liabilities as of the Closing shall be and remain the obligations and liabilities of the Companies but only to
the extent such obligations and liabilities: (i) were incurred in the ordinary course of the Company's business; and (ii) do
not relate to any failure to perform, improper performance, warranty, indemnification or other breach, default or violation by
any Seller or the Company on or prior to Closing (collectively, the “Assumed Liabilities”).

 

d.            Excluded
Liabilities. Each of Sellers shall remain liable for, and shall defend, indemnify and hold Buyer harmless from and against,
all Excluded Liabilities, defined below, and neither Buyer nor the Companies shall assume or have any responsibility for any Excluded
Liabilities. The term “Excluded Liabilities” collectively means any and all obligations and liabilities, other
than the Assumed Liabilities, of one (1) or more of the Sellers and/or one (1) or more of the Companies, including the
Indebtedness (defined below), whether accrued or contingent, liquidated or unliquidated, asserted or unasserted, known or unknown,
due or not due, civil or criminal in nature. For the avoidance of doubt, the term Excluded Liabilities also includes any liability
relating to or arising out of any liability or obligation of any Company and/or any Seller for any: (i) tax (including any
penalties, fines and interest thereon) of any kind (collectively, “Taxes”) including any Taxes that arise out
of the consummation of the transactions contemplated by this Agreement; (ii) Indebtedness; and (ii) legal, accounting
and other professional fees incurred by any Seller or Company prior to or in connection with this Agreement and/or Closing; (iv) any
act or omission by any of the Companies occurring prior to Closing, or any of the Sellers occurring at any time, constituting,
or alleged to constitute, negligence or any other tort; and (v) any act or omission by any of the Companies occurring prior
to Closing, or any of the Sellers occurring at any time, constituting a violation of State, county, or local criminal law. At Closing
each Seller agrees to assume all Excluded Liabilities regardless of whether the name of the obligor be an individual Seller or
one (1) or more of the Companies, and, in accordance with Section 13 below, agrees to indemnify, defend and hold harmless
Buyer Indemnitees from and against all Adverse Consequences arising from or related to the Excluded Liabilities.

 

e.            Payment
of Tax. Each of the Companies and each of the Sellers shall be liable for and shall pay all applicable Federal, State and local
taxes (other than income taxes of Buyer), duties and other like charges properly payable until, upon and in connection with the
Closing.

 

f.             "Affiliate"
shall mean a specified entity or person that is directly or indirectly through one or more intermediaries controlled by a Party,
in each case where the term "control" means: (A) possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of an entity or person, whether through ownership of voting interests, by contract
interest or otherwise, (B) in the case of a corporation, direct or indirect ownership of more than fifty percent (50%) of
the interest entitled to a vote for a majority of the board of directors or equivalent body, and (C) in the case of a partnership,
limited liability company or other entity, direct or indirect ownership of the right to receive more than fifty percent (50%) of
the profits thereof. As used in this Agreement, an Affiliate of a Party shall mean a parent, subsidiary, brother or sister entity
or other entity that controls the Party or that the Party controls or that is under common control with the Party.

 

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3.            Transaction
Documents.

 

a.            Assignments.
At Closing, each of the Sellers shall deliver to Buyer an original counterpart of Assignment of Membership Interests to Buyer duly
executed by such Seller (collectively the “Seller Assignments”), in the forms and substance acceptable to Buyer.

 

b.            Resignations.
At Closing, each of Sellers shall deliver to Buyer an originally executed Resignation in accordance with Section 1(b) above.

 

c.            Share
Issuance. Not more than fifteen (15) days following Closing, Buyer shall deliver to ROBERT KIVLIGHN and GORDON HAMILTON, evidence
of issuance of the Parent Shares in accordance with Sections 2(a)(ii)(B)-(C) above.

 

d.            Consents
and Estoppel Certificates. Sellers shall deliver to Buyereach of the Consents and Estoppel Certificates, duly executed by Sellers,
on behalf of the Companies, as applicable, and each third party thereto.

 

e.            Filings.
Sellers shall deliver to Buyer evidence of each of the Filings executed by Sellers.

 

f.             Evidence
of Ownership Interests. Each of Sellers shall deliver to Buyer all of the original shares, stock, certificates of ownership
and all other evidence of ownership in the Companies ("Ownership Evidence").

 

g.            Originals.
Sellers shall deliver to Buyer the originals of the Leases and all other Contracts of the Companies; provided, however, that in
the event Sellers do not have the originals in their possession, copies of any fully executed Lease or Contract shall be acceptable
to Buyer.

 

h.            Title
Documents. Sellers shall deliver the originals of the Title Documents to Buyer.

 

i.             Satisfaction
of Indebtedness. Sellers shall deliver evidence that all Indebtedness of each Company, together with all Liens associated therewith,
have been or contemporaneously with Closing will be, satisfied and released in their entirety.

 

j.             Others.
Sellers and Buyer will execute such additional documents or instruments as may otherwise be reasonably required or requested to
evidence or give effect to this Agreement.

 

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In addition to the foregoing, each Seller
shall use commercially reasonable efforts to obtain the written consent of each Sellers' spouse (if any) to the transactions contemplated
by this Agreement and all documents to be delivered hereunder. A form of "Consent of Spouse" is attached hereto.

 

4.             Operation
of the Business prior to Closing; Inspections; Change of Ownership.

 

a.            Operation.
Prior to Closing, the Sellers shall maintain the Assets and the Business of the Companies in substantially the same state of condition
and repair as of the Effective Date, and shall continue to operate the Business in the same manner as it is being operated as of
the Effective Date. Sellers warrant that, at Closing the Assets will be in reasonable working order ordinary wear and tear excepted
and the Business will pass all inspections reasonably necessary to conduct the Business including, without limitation, inspections
of the Business conducted by Buyer employing the most recent AZDHS inspection/audit checklist and the policies and procedures adopted
by Sellers during the 2018 calendar year required by AZDHS Rules and the Act.

 

b.            Inspections.
Between the Effective Date and the expiration of the Contingency Period, and thereafter prior to Closing Buyer and its representatives
may inspect, examine or survey the Assets of the Companies at dates and times scheduled in advance with Sellers, such inspections
not unreasonably withheld, delayed or conditioned by Sellers. Notwithstanding the foregoing, it is specifically understood that
Buyer will not have access at any time to the Dispensary or Cultivation Facility except (X) at the convenience of Sellers
and (Y) with a representative of ANR present provided, however, that the Sellers shall permit Buyer's inspections on receipt
of prior written notice of not less than forty-eight (48) hours.

 

i.              Buyer
will repair damage caused by any inspection and agrees to indemnify and hold Sellers harmless for, from and against any loss, cost,
claim, damage or expense incurred, directly or indirectly, by Sellers as a result of Buyer's inspections, examinations and surveys
of the Assets, either prior to, on, or after the date hereof.

 

ii.             Sellers
acknowledge and agree that Buyer intends to conduct one (1) or more inspections of the Business being operated in the Dispensary
and the Cultivation Facility by contractors and subcontractors engaged by Buyer and Buyer agrees to deliver copies of the results
of such inspections to Sellers (collectively, "Inspection Results"). Sellers shall, or shall cause the Companies
to, respond in writing to the Inspection Results not later than three (3) calendar days after receipt thereof, and the response
shall include a detailed reply addressing the Inspection Results, including, without limitation (but as applicable to the Inspection
Results), improvements required to comply with the AMMA and other applicable law.

 

iii.            Buyer
may inspect the Dispensary and Cultivation Facility and review the Companies' compliance with the AMMA and with all other laws.
Inspections shall include, without limitation, the following: (A) flower, harvest dates, yield and inventory records, by strain,
(B)     extraction dates, yield of oil from extraction process
and inventory records by strain and by product, (C) inventory records of finished goods, (D) the completeness and/or
compliance of all AZDHS checklist items, using the most recent published version of the checklist, and (E) the status of each
employee's and volunteer's agent card.

 

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c.            Post-Closing.
Following Closing, Buyer shall promptly take all actions necessary to report the change of ownership in the Companies, the removal
of Sellers as members, shareholders, officers, directors and/or managers of the Companies, and the removal of Sellers from any
State licenses held by the Companies, to the appropriate Arizona State agencies and departments. Sellers shall cooperate with Buyer
and execute and deliver such additional instruments as may be necessary to formally remove Sellers' names from the Companies' books
and records and State licenses.

 

5.             Representations,
Warranties and Covenants of the Parties. On a Party's execution of this Agreement and as of Closing each Party hereby represents
and warrants to the other Parties as follows, except as specifically and comprehensively disclosed on the schedule attached hereto
as Exhibit 4 (the “Disclosure Schedule”):

 

a.            Authority
and Consent. Each Party has the right, power, legal capacity, and authority to enter into and perform its respective obligations
under this Agreement, and no approvals or consent of any governmental or regulatory authority or other persons is necessary in
connection herewith.

 

b.            Information.
Each of the Parties has received all the information it considers necessary or appropriate for deciding whether to enter into this
Agreement and perform the obligations set forth herein. Each of the Parties has had an opportunity to consult with its own legal,
tax and financial advisors regarding the terms and conditions of this Agreement and the transactions contemplated hereby, and each
of the Parties is relying only on the advice of its own such advisers in making a decision to execute this Agreement and complete
the transactions contemplated hereby.

 

6.             Representations,
Warranties and Covenants of the Companies and Sellers. On the execution of this Agreement by a Seller and as of Closing each
Seller hereby represents and warrants to Buyer as follows, except as specifically and comprehensively disclosed on the Disclosure
Schedule:

 

a.            Authorization.
The Companies and each of the Sellers have all requisite power and authority to enter into this Agreement and all documents and
instruments entered into by the Sellers pursuant to this Agreement, to consummate the contemplated transactions, and to perform
its respective obligations thereunder. All acts and proceedings required for the authorization, execution, delivery and performance
of this Agreement have been taken. This Agreement and all documents and instruments delivered hereunder are legal, valid and binding
on the Sellers and enforceable by Buyer post-Closing in accordance with their respective terms.

 

b.            Organization
and Ownership. Each of ANR, LFI and SPI: (a) is a corporation duly organized, validly existing and registered under the
laws of the State of Arizona; (b) has all necessary power and authority to carry on its business where and as presently conducted;
(c) has no other business ventures or any ownership or debt of any other entity or person other than receivables in the ordinary
course of business; (d) does not conduct business with any entity or person owned, in whole or in part, by any of the Companies,
except as designated in the Disclosure Schedule; and (e) is duly qualified, authorized to conduct business, and in good standing
under the laws of all required jurisdictions. All of the issued and outstanding equity, ownership and beneficial interests of ANR,
LFI and SPI are described in Exhibit 1.

 

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c.            Organization
and Ownership. Each of EHF and RMA: (a) is a limited liability company duly organized, validly existing and registered
under the laws of the State of Arizona; (b) has all necessary power and authority to carry on its business where and as presently
conducted; (c) has no other business ventures or any ownership or debt of any other entity or person other than receivables
in the ordinary course of business; (d) does not conduct business with any entity or person owned, in whole or in part, by
any of the Companies, except as designated in the Disclosure Schedule; and (e) is duly qualified, authorized to conduct business,
and in good standing under the laws of all required jurisdictions. All of the issued and outstanding equity, ownership and beneficial
interests of EHF and RMA are described in Exhibit 1.

 

d.            Financial
Information; Undisclosed Liabilities; Absence of Changes.

 

i.              Each
of the Companies has previously furnished to Buyer copies of the annual financial statements for 2015, 2016 and 2017 (collectively,
the “Financials”). The Financials: (i) have been prepared in accordance with the books and records of each
Company; (ii) present fairly and accurately the financial condition of each Company as of the dates set forth therein and
the results of their operations for the periods covered; and (iii) have been prepared in accordance with accepted accounting
principles used by each Company, consistently applied. Since the December 31, 2017, there has not been any Material Adverse
Change, defined below, in the Business, Financials, revenues and earnings of each Company or of any Seller, or the condition (financial
or otherwise), properties or prospects of any of the foregoing. None of the Companies has any liabilities except for (i) liabilities
set forth on the face of the most recent Financials, excluding any notes to such Financials; and (ii) liabilities that have
arisen after the most recent Financials in the ordinary course of each Company's business, all of which are identified on the Disclosure
Schedule hereto (individually, a "Liability" and collectively "Liabilities"). None of the Companies
is in default under any Liability. All Liabilities will remain the respective Company's Liabilities after the Closing Date unless
otherwise expressly provided in this Agreement with respect to Excluded Liabilities.

 

As used in this Agreement, "Material
Adverse Change" shall mean any event, change, circumstance, effect or other matter that has, or could reasonably be expected
to have, either individually or in the aggregate with all other events, changes, circumstances, effects or other matters, with
or without notice, lapse of time or both, a material adverse effect, as determined by either Sellers or Buyer, in its reasonable
discretion, on (a) the Business, Assets, Liabilities, properties, condition (financial or otherwise), operating results, operations
or prospects of Sellers or the Companies, taken as a whole, or (b) the ability of the Companies or the Sellers to perform
their respective obligations under this Agreement or to consummate timely the transactions contemplated by this Agreement including,
without limitation: (i) a change or revocation of State or local law which shall have the effect of prohibiting the legal
operation of the Dispensary or Offsite Facility; (ii) AZDHS’ refusal to approve ANR’s application to renew the
Certificate; (iii) ANR’s failure to maintain the ATOs, SUPs and Certificate in good standing resulting in AZDHS’
or local authority's revocation of the ATO, SUP and/or Certificate; (iv) the value of the Material Adverse Change, as determined
by Buyer in its reasonable discretion, is equal to or greater than FIVE HUNDRED THOUSAND DOLLARS ($500,000); (v) there shall
be a Federal or State charge, investigation, arrest, seizure or prosecution action associated with the Business or Sellers; and
(vi) the Certificate has lapsed and not renewed, is or will be revoked, or is a forgery or was procured by fraud or intentional
misconduct. In determining whether any individual event would result in a Material Adverse Change, notwithstanding that such event
does not of itself have such effect, a Material Adverse Change shall be deemed to have occurred if the cumulative effect of such
event and all other then-occurring events and existing conditions would result in a Material Adverse Change.

 

    11

     

    

 

(ii)           The
Disclosure Schedule sets forth a true, correct and complete listing of all loans and other indebtedness owed by each of the Companies
to any third party (including any Seller) (collectively, the "Indebtedness"). With regard to each item of Indebtedness,
the Disclosure Schedule sets forth the (A) lender; (B) borrower; (C) date of issuance; (D) original principal
balance of such Indebtedness; (E) current principal balance of such Indebtedness; and (F) identification of any and all
instruments evidencing such Indebtedness.

 

e.            Title,
Adequacy and Condition of Ownership Interests, Assets; Inventory.

 

(i)            Each
Company has good and marketable title to all of its Assets, free and clear of any and all liens, mortgages pledges, security interests,
agreements, charges or encumbrances of any kind (collectively, "Liens"). The Assets described in or relative to
the Financials constitute all of the assets, property and rights necessary for the conduct of the Business in the manner in which
such business is presently conducted and include, without limitation, the Leases (collectively, the "Assets").

 

(ii)           All
equipment and other tangible personal property of every kind and description used or owned by each Company is in good working order,
reasonable wear and tear excepted.

 

(iii)          All
inventory in each Company's possession or under a Company's control is owned by the Company. All inventory is merchantable and
fit for the purpose for which it was procured, grown or manufactured.

 

(iv)         The
Ownership Interests of each of the Sellers is in good and marketable title, free and clear of any Liens. The Ownership Interests
constitute all of the ownership, membership, shareholder and other record and beneficial interests in the Companies. No Seller
has sold, assigned, mortgaged, pledged or otherwise transferred by operation of law or otherwise, in whole or in part, his Ownership
Interests. No other person or entity has or will have direct or indirect beneficial or record interest in the Ownership Interests
at Closing.

 

f.             Casualty;
Condemnation. All risk of loss with respect to damage to the Assets shall be borne by Sellers until the Closing Date, and thereafter
all risk of loss shall be borne by Buyer. In the event that the Assets are materially damaged or destroyed by fire or other casualty
or hazard prior to the Closing, Sellers shall have the option to either (i) restore the Assets to their pre-casualty condition,
(ii) assign all insurance proceeds to Buyer and proceed under the terms of this Agreement, or (iii) cancel this Agreement
and return the Deposit to Buyer as a complete and final settlement to Buyer of all of Sellers obligations hereunder. Should Seller
desire to restore the Assets to their pre-casualty condition, Sellers shall so notify Buyer and thereafter have 120 days to complete
such restoration, with the Closing Date to be postponed accordingly. In the event that any portion of the leased premises of the
Dispensary or the Cultivation Facility is condemned or is the subject of a condemnation proceeding by governmental authority under
its power of eminent domain, Buyer shall (X) proceed to close the transactions hereunder with no adjustment to the Purchase
Price, in which event the Sellers shall cause the Companies to assign to Buyer all of the Companies' rights, title and interests
in and to any condemnation award, or (Y) terminate this Agreement.

 

    12

     

    

 

g.            Compliance;
Required Consents.

 

(i)            Each
Company is and has been in substantial compliance with all laws, orders and licenses applicable to the Companies including, without
limitation, the AMMA and all county and local requirements of the jurisdiction in which the Dispensary and Cultivation Facility
sites are located, and each Company's Assets including, without limitation, the Dispensary Lease, the Cultivation Lease and the
Business. No investigation, audit or review by any governmental entity with respect to the Companies or the Business is pending
or threatened, nor has any governmental entity notified any Company or any of its Affiliates, defined below, in writing of its
intention to conduct the same. No Company nor its Affiliates: (X) has been charged with and none of the foregoing is now under
investigation with respect to any actual or alleged violation of any applicable law including, without limitation, the AMMA, or
other requirement of a governmental entity, (Y) has been a party to or bound by any order relating to the foregoing, or (Z) has
failed to file any material report required to be filed with any governmental entity.

 

(ii)           The
execution, delivery and performance by the Sellers or the Companies of this Agreement will not require any consent or approval
from any third person or require any government authorization or consent, except as otherwise provided herein with respect to the
Filings and Consents. The execution, delivery and performance by Sellers and the Companies of this Agreement shall not: (X) cause
Sellers to violate or contravene any regulation of any agency or government, (Y) violate or be in conflict with, result in
a breach of or constitute a default under any contract or agreement, or (Z) result in the creation or imposition of any Lien
on any of the Assets.

 

(iii)          There
are no pending or threatened warranty or product liability claims against the Companies. The Companies have maintained completed
operations insurance coverage which provides coverage for liabilities arising from completed operations, and there has been no
claim(s) filed with respect thereto. Sellers will cause the Companies to maintain such coverage up to and including the Closing
Date.

 

h.            Employees
and Volunteers. All persons providing services to the Companies in which the means and manner of providing such services are
controlled by a Company (including volunteers) have been properly classified either as employees or independent contractors, as
the case may be, for the purpose of payroll withholding taxes. Except as expressly set forth in this Agreement, to Sellers' or
Companies' actual knowledge, no executive, key employee, or significant group of employees plans to terminate employment with the
Company(ies) during the twelve (12) months immediately following the Closing Date. The Companies are not a party to or bound by
any collective bargaining agreement, nor have the Companies experienced any strike or grievance, claim of unfair labor practices,
or other collective bargaining dispute within the past five (5) years. The Companies have not committed any unfair labor practice.
No Seller has any knowledge of any organizational effort presently being made or threatened by or on behalf of any labor union
with respect to employees of the Companies. With respect to this transaction, any notice required under any law or collective bargaining
agreement has been given, and all bargaining obligations with any employee representative have been, or prior to the Closing Date
will be, satisfied. Within the past five (5) years, no Company has implemented any closing or layoff of employees that could
implicate the Worker Adjustment and Retraining Notification Act of 1988, as amended, or any similar foreign, Federal, State, or
local law, regulation, or ordinance (collectively, the “WARN Act”), and no such action will be implemented without
advance notification to Buyer.

 

    13

     

    

 

i.             Commission.
Buyer has contracted with Copia LLC, and with no other broker, finder or commissioned agent in connection with the contemplated
transactions. Sellers represent to Buyer that they have contracted with JTice CPA PC for M&A Advisory Services, and have not
dealt with any broker, finder, or commissioned agent in connection with the contemplated transactions and that neither Sellers
nor the Companies will owe any other party a commission, finder’s fee, or similar in connection with the execution of the
Purchase Agreement or the closing of the contemplated transactions.

 

j.             Bank
Accounts. The Disclosure Schedule lists all bank, trust, checking, savings, custody and other accounts (including any trading
or other accounts maintained with any brokerage, investment banking or commodity trading firms) and lock boxes or safe deposit
boxes of the Companies in which there are or may be deposited monies or other Assets of the Companies, an indication of the purposes
of each of such accounts and lock boxes or safe deposit boxes, a true, accurate and complete list of the amounts on deposit in
each of such accounts as of the Effective Date, any and all persons authorized to make withdrawals or other transfers from such
accounts or lock boxes or safe deposit boxes, each bank at which the Companies have borrowing authority, and a true, accurate and
complete list of any and all persons authorized to exercise such authority. All of such accounts have a positive funds balance.
The Disclosure Schedule also lists the location, amount and ownership of all cash of the Companies not in the above-referenced
accounts.

 

k.            Employee
Benefits. Except as disclosed on the Disclosure Schedule there is no employee benefit plan (including any employee pension
benefit plan or any employee welfare benefit plan) that the Companies maintain or has ever previously maintained or to which the
Companies contribute, have ever previously contributed or have ever had any obligation to contribute. The Companies have neither
contributed to, nor have any obligation to contribute to, or have any liability (including withdrawal liability as defined in ERISA
 §4201) under or with respect to any Multiemployer Plan. Except as disclosed on Disclosure Schedule, the Companies does not
maintain, contribute to or have an obligation to contribute to, or have any liability or potential liability with respect to, any
employee welfare benefit plan providing health or life insurance or other welfare-type benefits for current or future retired or
terminated employees (or any spouse or other dependent thereof) of the Companies.

 

    14

     

    

 

l.             Business
Continuity. None of the computer software, computer hardware (whether general or special purpose), telecommunications capabilities
(including all voice, data and video networks) and other similar or related items of automated, computerized, and/or software systems
and any other networks, servers or systems and related services that are used by or relied on by the Companies in the conduct of
the Business (collectively, the “Systems”) have experienced any bugs, failures, breakdowns, or continued substandard
performance in the past twelve (12) months that have caused any substantial disruption or interruption in or to the use of any
such Systems by the Companies.

 

m.           Customers,
Patients and Vendors. The Disclosure Schedule lists the three (3) largest Dispensary wholesale customers and vendors of
ANR for each of the two (2) most recent fiscal years and sets forth opposite the name of each such customer the percentage
of consolidated net revenues attributable to such customer. Since the date of the most recent Financials, no vendor of the Companies
has expressly indicated, in writing, that it shall stop, or decrease the rate of, supplying materials, products or services to
the Companies and no customer listed on the Disclosure Schedule has expressly indicated, in writing, that it shall stop, or decrease
the rate of, buying materials, products or services from ANR.

 

n.            Employment
Taxes. With respect to all persons who could properly be deemed to be employees of the Companies, Sellers have caused the Companies
to withhold and pay over to the appropriate governmental authority such payroll taxes when due as required by law including without
limitation, the Federal Insurance Contributions Act, the Federal Unemployment Tax Act and such similar requirements under applicable
State and local law, and make contributions for workers’ compensation premiums.

 

o.            Contracts.
All of the Companies’ and Sellers' rights and obligations arising under: (i) real property leases including, without
limitation, the Dispensary Lease and the Cultivation Lease, (ii) rights and options relating to the Business, and (iii) any
agreements or contracts relating to the Business, whether oral or written as identified in the Financials (collectively “Contracts”)
are in full force and effect in accordance with their respective terms and, to the best of Sellers’ or the Companies' actual
knowledge, there exists no default by any Company (nor by any other Party, person or entity) under any such Contracts. There have
been no acts or omissions by the Companies or Sellers (or any other Party, person or entity thereto) which, with the giving of
notice or the passage of time or both, would constitute such a default. Other than the TruMed Agreement, Dispensary Lease and the
Cultivation Lease, each Contract is terminable by the Company party pursuant to the terms thereof without penalty, cost or liability
on notice not exceeding ninety (90) days. The execution and delivery of this Agreement and the consummation of the contemplated
transactions will not affect the continuation, validity or effectiveness of any Contract or any of the terms thereof.

 

p.            Tax
Returns. All required Federal, State and local tax filings and returns and employee benefit plan filings and returns of each
Company have been: (a) accurately prepared in the manner prescribed by law; (b) duly and timely filed; and (c) all
related tax payments have been paid. No Company has been delinquent in the payment of any tax, assessment or other governmental
charge. There are no examinations, audits or disputes with taxing authorities of a Company that are pending or that were resolved
during the three (3) year period prior to the date of this Agreement. All taxes and other assessments and levies that a Company
was required by law to withhold or to collect have been duly withheld and collected, and have been paid over to the proper governmental
entity or are being held by the Company in separate bank accounts for such payment, and will be paid on or prior to the date such
payment is due.

 

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q.            Licenses.
Each Company possesses all licenses, whether State, Federal, local or foreign, that are necessary for the Company to engage in
the Business as currently conducted in each jurisdiction in which Company operates, each of which is identified in the Disclosure
Schedule. No investigation, audit or review by any governmental entity with respect to the Company, any of its Affiliates or their
respective businesses is pending or threatened, nor has any governmental entity notified any Company in writing of its intention
to conduct the same. Neither the Company nor any Seller (i) has been charged with, and none of them is now, to their actual
knowledge, under investigation with respect to, any actual or alleged violation of any applicable law or other requirement of a
governmental entity; (ii) has been a party to or bound by any order; or (iii) has failed to file any report required
to be filed with any governmental entity. No governmental entity regulating any services performed by the Company or any of its
Affiliates has requested that any such services be modified in any way.

 

r.             Litigation.

 

i.             There
are no claims, demands, actions, suits, arbitrations or other legal, administrative or governmental investigations or proceedings
(whether Federal, State, local or foreign) pending or threatened, against any Company, the Business or the Assets. There are no
judgments, injunctions, rules or orders of any court, governmental department, commission, agency, or arbitrator outstanding
against any Company.

 

ii.            There
are no claims, demands, actions, suits, arbitrations or other legal, administrative or governmental investigations or proceedings
(whether Federal, State, local or foreign) pending or, to Sellers' knowledge threatened, against any Seller. There are no judgments,
injunctions, rules or orders of any court, governmental department, commission, agency, or arbitrator outstanding against
any Seller in excess of $10,000.

 

s.            Environmental
Matters.

 

i.             To
the best of the Companies’ or Sellers’ actual knowledge, each of the Companies is currently and has been in compliance
with all Environmental Laws, defined below, and have not received from any person or entity: (i) any notice or claim alleging
any violation or other failure to comply with Environmental Laws; or (ii) written request for information pursuant to Environmental
Law.

 

ii.             Each
of the Companies has obtained and is in material compliance with all Environmental Permits (each of which is disclosed in the Disclosure
Schedule) necessary for the ownership, lease, operation or use of the Business or Assets of the Companies and all such Environmental
Permits are in full force and effect and shall be maintained in full force and effect by the Companies through the Closing Date
in accordance with all Environmental Laws, and to the best of the Companies’ actual knowledge, there is no condition, event
or circumstance that might prevent or impede, after the Closing Date, the ownership, lease, operation or use of the Business or
Assets of the Companies as currently carried out. With respect to any such Environmental Permits, Sellers have undertaken, or will
cooperate with Buyer’s efforts to undertake prior to the Closing Date, all measures necessary to facilitate transferability
of the same, and no Seller is aware of any condition, event or circumstance that might prevent or impede the transferability of
the same, nor has any Seller received any Environmental Notice or written communication regarding any Material Adverse Change in
the status or terms and conditions of the same.

 

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iii.            To
Sellers’ or Companies' actual knowledge, there has been no release of Hazardous Materials in contravention of any Environmental
Law with respect to the Business or Assets of the Company or on any real property currently utilized by the Business, and no Sellers
have received a notice that any real property currently utilized in connection with the Business has been contaminated with any
Hazardous Material that could reasonably be expect to result in a violation of Environmental Law or term of any Environmental Permit
by Sellers or the Companies.

 

iv.           The
Disclosure Schedule contains a complete and accurate list of all off-site Hazardous Materials treatment, storage, or disposal facilities
or locations used by the Companies and none of the Sellers have received any notice regarding potential liabilities with respect
to such off-site Hazardous Materials treatment, storage, or disposal facilities or locations used by the Companies.

 

v.            Sellers,
to the extent in Sellers’ actual possession, have provided or otherwise made available to Buyer: (X) any and all environmental
reports, studies, audits, records, sampling data, site assessments, risk assessments, economic models and other similar documents
with respect to the Business or Assets of the Companies related to compliance with Environmental Laws, and (Y) any and all
material documents concerning planned or anticipated capital expenditures required to reduce, offset, limit or otherwise control
pollution and/or emissions, manage waste or otherwise ensure compliance with current or future Environmental Laws.

 

vi.            The
capitalized terms in this Subsection are defined as follows:

 

(A)          “Environmental
Law” means any applicable law, ordinance, regulation or order: (a) relating to pollution (or the cleanup thereof)
or the protection of natural resources, endangered or threatened species, human health or safety, or the environment, or (b) concerning
the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment,
generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials.

 

(B)           “Environmental
Permit” means any permit, licenses, letter, approval, authorization, registration, clearance, consent, waiver, closure,
exemption, decision or other action required under or issued, granted, given, authorized by or made pursuant to an Environmental
Law.

 

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(C)           “Hazardous
Materials” mean: (X) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid,
mineral or gas, in each case, that pursuant to Environmental Law is hazardous, acutely hazardous, and (Y) any petroleum or
petroleum-derived products, radon, radioactive materials or wastes, asbestos in any form, lead or lead-containing materials, urea
formaldehyde foam insulation, and polychlorinated biphenyls.

 

t.             Intellectual
Property. The Disclosure Schedule sets forth a true and complete list of all trade names, trademarks, service marks, assumed
names, and other intellectual property that each Company and each Seller (but only to the extent such Intangible Asset relates
or pertains directly or indirectly to the Business or Assets of the Companies) owns, licenses, or otherwise has an interest in
or uses, including, without limitation, computer software (collectively, the “Intangible Assets”, collectively
with all other Assets, the "Assets"). The Company and each Seller has all right, title and interest to (or, in
the case of Intangible Assets that are licensed, the right to use) the Intangible Assets, and in conducting the Business neither
the Company, nor the Sellers, is alleged to be infringing upon or otherwise conflicting with the rights of others. There is no
actual or alleged infringement of or conflict by others with the Intangible Assets. The Company (or each Seller, as applicable)
has taken all actions reasonably necessary to protect the Intangible Assets and their interests therein in accordance with customary
business practices.

 

u.            Books
and Records. The files, books of account and other records of the Companies are true, complete and accurate and have been maintained
in accordance with good business practices, and the matters contained therein are accurately reflected on the Financials. Buyer
and its representatives have been given full access to all books, records and files relating to the Assets, the Companies and the
Business.

 

w.           Disclosure.
All documents delivered or to be delivered by or on behalf of the Sellers and the Companies in connection with this Agreement and
the transactions contemplated hereby are true, complete and correct. Neither this Agreement, nor any of the other documents delivered
in connection with this Agreement, contains any untrue statement of a material fact or omits a material fact necessary to make
the statements by the Companies and Sellers herein or therein, as applicable, in light of the circumstances in which made, not
misleading. There is no fact which materially and adversely affects the prospects or financial conditions of any Company, or their
respective properties, Assets or the Business which has not been set forth in this Agreement, its Exhibits and Disclosure Schedule.
In the event that any document or information delivered by a Party to the other(s) has changed or become outdated by time,
action or otherwise, and in the event written or verbal notice from a governmental authority concerning the Assets or the Business
has been received, the receiving Party shall immediately transmit the changes and a copy of the notice (or convey the content of
the verbal notice) to the other Parties.

 

x.            Ownership
Interests. Following Closing, the Buyer will own one hundred percent (100%) of the Membership Interests in EHF and RMA and
one hundred percent (100%) of the Shares of LFI and SPI.

 

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y.            Insurance.
All insurance policies insuring the Companies' Assets are in full force and effect and will be so until Closing. Sellers have not
received any notice of violations pertaining thereto or notice of any requirement that repairs be performed to the Assets that
have not been performed.

 

z.            Affiliate
Activities. The following affiliates of one or more of the Companies have either been dissolved in accordance with the laws
of the jurisdiction of their formation, or are and shall remain dormant and non-operative, with no assets or liabilities or obligations
of any kind (collectively, the "Dormant Entities"): (i) SCCG; (ii) OAM; (iii) Arizona Natural Produce
LLC, a limited liability company originally formed under the laws of the State of Arizona; and (iv) Natural Investments LLC,
a limited liability company originally formed under the laws of the State of Arizona. None of the Sellers nor the Companies: (A) does
business with any of the Dormant Entities; (B) has in its/his possession or under his/its control any assets of the Dormant
Entities; (C) is aware of the existence or location of any such assets of any of the Dormant Entities; or (D) is aware
of the existence of any such liabilities or obligations of any of the Dormant Entities.

 

aa.          AS
IS Condition. By proceeding with the Closing, Buyer acknowledges that Buyer has had an opportunity to make its own examination,
inspection and investigation of the Assets of the Companies, including without limitation, all matters pertaining to environmental
matters related to the operations of the Business, as Buyer deems necessary or appropriate. Except for the representations, warranties,
and covenants expressly stated in this Agreement, the Exhibits and Schedule(s), and in the documents and other information provided
to Buyer by Sellers and their agents and representatives (collectively, the “Express Representations”),
neither Seller nor the Companies shall be responsible or liable to Buyer for any conditions or other matters affecting the Business
or the Assets, as Buyer is purchasing the membership interests and shares of Sellers in each of EHF, RMA, LFI and SPI, except for
the Express Representations, AS-IS, WHERE- IS and WITH ALL FAULTS, and not in reliance on any representations or warranties except
for the Express Representations. Other than with respect to claims arising from the Express Representations, Buyer hereby fully
releases Sellers from any and all claims that Buyer may now have or hereafter acquires against any Seller, for any cost, loss,
liability, damage, expense, demand, action or cause of action arising from or related to any conditions affecting the Assets or
the Business of the Companies, including but not limited to, those relating to unknown and unsuspected claims, damages and causes
of action. This waiver and release of claims shall survive the Closing.

 

7.             Representations
and Warranties of Buyer. On the execution of this Agreement by Buyer and as of Closing Buyer hereby represents and warrants
to Sellers as follows:

 

a.            Speculative
Nature. Buyer is aware of and understands the following:

 

i.             The
Ownership Interests are a speculative investment which involve a substantial degree of risk of loss by Buyer of Buyer's entire
investment in the Companies and that Buyer understands and takes full cognizance of the risk factors related to the purchase of
the Ownership Interests;

 

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ii.             There
are substantial restrictions on the transferability of the Ownership Interests pursuant to the governing documents of the Companies,
the Ownership Interests will not be, and owners, members, and shareholders of the Companies have no rights to require that the
Ownership Interests be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”)
or any State securities laws; there is no public market for the Ownership Interests and none is expected to develop; and, accordingly,
it may not be possible for Buyer to liquidate Buyer's investment in any of the Companies;

 

iii.            Buyer
understands that the Ownership Interests acquired under this Agreement are restricted securities within the meaning of Rule 144,
promulgated under the Securities Act, and that any future sales of such Ownership Interests will be regulated by the Securities
Act. Specifically, Buyer understands that because the securities have not been registered under the Securities Act, Buyer will
continue to bear the economic risk of the investment for an indefinite period of time and cannot sell such Ownership Interests
unless they are subsequently registered under the Securities Act or an exemption from such registration is available;

 

iv.            The
Ownership Interests being purchased herein are being acquired for Buyer's own account for investment and not with a view to, or
for resale in connection with, any distribution of such Ownership Interests;

 

v.             Buyer
agrees to the placement of an appropriate legend reflecting the foregoing representations on any certificate(s) representing
the Ownership Interests acquired, and further understands that the transfer of any of the Ownership Interests out of Buyer's name
will be permitted only if the request for transfer is accompanied by evidence satisfactory to the Company(ies) that such transfer
will not result in a violation of any applicable Federal or State law, rule or regulation;

 

vi.            Buyer
is financially responsible, able to meet the obligations hereunder and acknowledges that this investment will be long-term and
is by its nature speculative;

 

vii.           Buyer
is capable of bearing the high degree of economic risks and burdens of this venture including, but not limited to, the possibility
of complete loss of all contributed capital and lack of a public market which may make it impossible to liquidate the investment
whenever desired; and

 

viii.          Buyer
acknowledges that the Ownership Interests are being or will be acquired solely for Buyer's own account, for investment, and are
not being acquired by Buyer with a view to or for resale distribution, subdivision, or fractionalization thereof; and Buyer agrees
that the Ownership Interests may not be sold by Buyer without registration under the Securities Act or exemption therefrom, and
without full compliance with the terms of the applicable governing documents of the Company(ies). In furtherance thereof, Buyer
represents, warrants and agrees that (A) no other person has or will have direct or indirect beneficial interest in the Ownership
Interests, and Buyer will not sell, hypothecate or otherwise transfer the Ownership Interests except in accordance with the terms
of the applicable governing documents unless the Ownership Interests are registered under the Securities Act and qualify under
applicable State securities laws or unless, in the opinion of counsel for the Company(ies), under an exemption from the registration
requirements of the Securities Act and such law is available; and (B) no Company is under any obligation to register the Ownership
Interests on behalf of Buyer or to assist Buyer in complying with any exemption from registration.

 

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b.            No
Conflict. Buyer’s execution, delivery, and performance of this Agreement and the applicable governing documents of the
Companies do not conflict with (i) any law, rule or court order applicable to an owner of an interest in the Companies;
or (ii) any other agreement or arrangement to which either Buyer is a party or by which such party is bound.

 

c.            Buyer's
Records. All of the documents and records requested by Buyer have been delivered, made available or prior to Closing will be
made available to Buyer and Buyer's investment decision is based upon its own investigation and analysis and not the representations
or inducements of Sellers or any representative of the Companies.

 

8.             Conditions
to Close.

 

a.            Joint
Conditions to Close. Each Party's obligation to consummate the transactions to be performed by it in connection with the Closing
is subject to the satisfaction of the following conditions precedent (collectively, the "Joint Conditions"):

 

i.              No
Action. No action, suit or proceeding shall be pending before any court or administrative agency or arbitrator that could result
in a rescission of any of the contemplated transactions provided for in this Agreement.

 

ii.             No
Occurrences. None of the following shall have occurred through the Closing:

 

A.           Law
Enforcement. No Federal enforcement action against a Party including, without limitation, arrest, seizure or prosecution associated
with the Parties' activities described in this Agreement, has occurred prior to the Closing Date.

 

B.            Law
Change. A change or revocation of Federal, State or local law has occurred that has the effect of prohibiting the operation
of the Dispensary and/or the Cultivation Facility.

 

C.            AZDHS.
AZDHS declines or refuses to approve ANR's application to renew its Certificate or ANR fails to maintain the Certificate in good
standing, resulting in AZDHS' revocation of the Certificate. Prior to and after the Effective Date through Closing, no Party has
taken any act or failed to act where action was appropriate that would or would tend to modify, rescind or terminate any of the
other Parties' relationships, contracts or rights with AZDHS, or any Federal, State, county, or local government except in the
event of a breach of this Agreement.

 

b.            Conditions
to Buyer's Obligation to Close. In addition to the Buyer’s satisfaction of or with the Joint Conditions, Buyer’s
obligation to consummate the transactions to be performed by it in connection with Closing is subject to satisfaction of the following
conditions precedent at or prior to Closing (collectively, "Buyer's Conditions"):

 

    21

     

    

 

i.              No
Material Change. There has been no Material Adverse Change, in the Business;

 

ii.             Representations
True. The representations and warranties of each of the Sellers set forth in this Agreement shall be true and correct at and
as of the Closing Date;

 

iii.            Performance.
Each of the Sellers shall have performed and complied with all of their covenants hereunder in all respects;

 

iv.            Satisfaction
of Buyer. All actions to be taken by each of the Sellers in connection with consummation of the contemplated transactions and
documents required to effect the contemplated transactions shall be satisfactory in form and substance to Buyer;

 

v.             Deliveries.
Each of the Sellers shall execute and deliver the documents and instruments required to close the contemplated transactions;

 

vi.            Licenses.
Buyer shall have obtained (or, within a reasonable period of time following Closing, will obtain) all licenses and permits necessary
for the Companies to continue to own, operate and otherwise conduct the Business;

 

vii.           Due
Diligence. Buyer shall be satisfied with its due diligence investigation of the Companies and Sellers and, without limiting
the foregoing, the Contingency Period shall have expired without the exercise of Buyer's Kick-Out, defined below. Buyer shall be
satisfied with the condition of title to the Assets;

 

viii.          Consents.
Seller shall have, at its sole cost and expense obtained the Consents and estoppels;

 

ix.             Employment
Agreements. The Employment Agreements will have been executed by the Employees;

 

x.              Reasonableness.
The AZDHS Rules require, inter alia, that (X) all compensation paid for personal services to the Dispensary (including
the Cultivation Facility) not be in excess of a reasonable allowance, (Y) no part of the Dispensary's property or equipment
be sold for less than adequate consideration in money or cash equivalent, and (Z) the Dispensary not engage in any other transaction
that results in a substantial diversion of the Dispensary's income or property (collectively, the "Reasonableness Standard").
Buyer shall be satisfied, at its sole discretion, that the Dispensary, Cultivation Facility, Business and Assets have been continuously
operated in compliance with the Reasonableness Standard; and

 

xi.             Cash, 
Inventory, Trade Accounts Payable Levels. Immediately prior to Closing, Buyer shall be satisfied that the Companies' Inventory
Level, Cash Level and Trade Payables Level are consistent with those maintained in the ordinary course of each Company's business.
For the avoidance of doubt: (A) each Company's respective "Inventory Level" shall be determined as of the
Closing Date in relation to the average historic inventory levels maintained by such Company during the nine (9)  months preceding
the Closing Date, as stated in Section 6.d. of the Disclosure Schedule; and (B) the "Cash Level" of
the Companies, taken in aggregate, shall, on the Closing Date, equal or exceed a minimum balance of $325,000; and (C) (1) each
Company's respective "Trade Payable Level" shall be determined on the Closing Date in relation to the average
historic trade accounts payable levels maintained by such Company during the nine (9)  months preceding the Closing Date,
as stated in Section 6.d. of the Disclosure Schedule, and (2) in no event shall the Trade Payable Level for all the Companies,
taken in the aggregate, exceed $100,000.

 

    22

     

    

 

c.             Conditions
to Sellers' Obligation to Close. The obligation of Sellers to consummate the transactions to be performed by them in connection
with Closing is subject to satisfaction of the following conditions at or prior to Closing (collectively, "Seller's Conditions"),
and together with the Joint Conditions and Buyer's Conditions, the "Closing Conditions"):

 

i.              Representations
True. The representations and warranties of the Buyer set forth in this Agreement shall be true and correct at and as of the
Closing Date;

 

ii.             Performance.
Buyer shall have performed and complied with all of its covenants hereunder in all respects;

 

iii.            Employment
Agreements. The Employment Agreements will have been executed by either the Company or Buyer, as identified as "employer"
under the Employment Agreements; and

 

iv.           Deliveries.
Buyer shall execute and deliver the documents and instruments required to close the contemplated transactions.

 

9.            Miscellaneous.

 

a.            Further
Assurances. Each of the Parties hereto shall execute and deliver any and all such other instruments, documents, and agreements
and take all such actions as a Party may reasonably request from time to time in order to effectuate the purposes of this Agreement.

 

b.            Controlling
Law; Venue; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Arizona
without application of the conflict of laws principles thereof. The Parties agree that venue and jurisdiction over any claim or
dispute arising hereunder shall properly lie in the Superior Court of Maricopa County, Arizona.

 

c.            Injunctive
Relief. Each of the Parties acknowledges that if it breaches the terms of this Agreement, the other Parties may suffer irreparable
harm for which there may be no adequate remedy at law. Each Party therefore agrees that, in addition to any monetary damages that
may be awarded to a non-defaulting Party to compensate it for a defaulting Party’s breach of this Agreement, the non-defaulting
Party shall be entitled to seek temporary, preliminary, and permanent injunctive relief to prevent the breach of this Agreement.

 

d.            Binding
Nature of Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective
successors and permitted assigns. . No party may assign either this Agreement or any of his or its rights, interests, or obligations
hereunder without the prior written approval of the other parties hereto.

 

    23

     

    

 

e.            Counterparts/Delivery.
This Agreement may be executed in counterparts, each of which is an original, but all of which shall constitute one (1) instrument.
A signed copy of this Agreement or any related document or instrument delivered by facsimile, e-mail or other electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed counterpart thereof.

 

f.             Entire
Agreement. This Agreement contains the entire understanding between the Parties hereto with respect to the purchase and sale
of Ownership Interests, and supersedes all prior and contemporaneous agreements and understandings, inducements, or conditions,
express or implied, oral or written, between the Parties hereto, with respect to the purchase and sale of Ownership Interests,
including the Amended Purchase Agreement and that certain Letter of Intent dated August 29, 2018 executed by Buyer and Sellers.
This Agreement may not be modified or amended other than by an agreement executed in writing by the Parties hereto.

 

g.            Legal
Representation. This Agreement has been negotiated among the Parties and if there is any ambiguity, no presumption construing
the Agreement against a Party shall be imposed because this Agreement was prepared by Buyer's counsel.

 

h.            Severability.
If any provision of this Agreement shall be held invalid, the same shall not affect the validity of any other provision of this
Agreement, and each such other provision shall continue in full force and effect. If any provision of this Agreement shall be held
invalid in part, the same shall not affect the remainder of that provision, and the remainder of that provision, together with
all other provisions of this Agreement, shall continue in full force and effect.

 

i.             Headings.
The headings of sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning
of any of the provisions of this Agreement.

 

j.             Fees
and Costs. In the event that any action or proceeding is instituted to enforce any of the terms of this Agreement, the Parties
agree that the prevailing party in such action or proceeding shall be entitled to an award of its reasonable attorneys’ fees
and costs incurred in connection therewith.

 

k.            Notices.
All notices hereunder shall be in writing and shall be deemed to have been duly given upon receipt, if personally delivered, or
on the next business day following dispatch if given via a nationally-recognized overnight courier service, addressed to the Parties
at the following addresses or at such other addresses as shall be specified in writing and in accordance with this Subsection 9(k):

 

If
to any Seller:                     Robert
Kivlighn

[***]

 

Gordon Hamilton

[***]

 

    24

     

    

 

		With
                              a copy to:	David R. Cohen, Esq.

Frazer Ryan Goldberg &
Arnold LLP

3101 N. Central Ave.,
Suite 1600

Phoenix, AZ 85012

[***]

Email: [***]

 

		If
                              to Buyer:	Vireo Health of Arizona,
LLC

c/o Vireo Health, Inc.

Attn: General Counsel

1330 Lagoon Ave., 4th
Floor

Minneapolis, MN 55408

[***]

Email address(es): [***]

 

		With
                              a copy to:	Fredirkson & Byron
P.A.

Attn: Jessica Buchert

3 Civic Center Plaza,
Suite 400

Mankato, MN 56001

Email address: [***]

 

l.             Time
Is of the Essence. Time is of the essence in the performance of each and every obligation of this Agreement.

 

m.           WAIVER
OF JURY TRIAL; ILLEGALITY DEFENSE WAIVER. EACH PARTY TO THIS AGREEMENT WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT,
PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT OR THE TRANSACTION DOCUMENTS. Each Party warrants and represents to the others that it has reviewed
the foregoing waivers with its legal counsel and has knowingly and voluntarily waived its jury trial rights following consultation
with legal counsel. In the event of litigation, this Agreement may be filed as a written consent to a trial by the Court. The Parties
hereby agree to waive illegality as a defense to any contract enforcement action.

 

n.            Nature
of Sellers' Obligations. All representations, warranties, covenants of Sellers hereunder shall be joint and several obligations
of Sellers.

 

10.           Termination
of Agreement. Certain of the Parties may terminate this Agreement as provided below:

 

a.            Mutual.
Buyer and Sellers may terminate this Agreement by mutual written consent at any time prior to Closing.

 

    25

     

    

 

b.            By
Buyer.

 

(i)            Conditions
Not Met. If, on the Closing Date, the satisfaction of any of the Joint Conditions or Buyer's Conditions is or, prior to the
Closing Date, becomes impossible (in each case, other than through the failure of Buyer to comply with its obligations under this
Agreement) and Buyer has not waived any such condition; or

 

(ii)           Due
Diligence. If during the Contingency Period Buyer shall deliver written notice of termination to the Sellers as a result of
Buyer's dissatisfaction (determined in Buyer's sole and absolute discretion) of the results of Buyer's due diligence investigation
related to the Business, the Companies, Sellers and/or the Ownership Interests ("Buyer's Kick-Out"). In the event
Buyer so elects to terminate this Agreement, this Agreement shall terminate, Buyer and each of the Sellers shall be released and
discharged from any further obligations to the others hereunder, other than those obligations which, by their terms, survive termination.
The "Contingency Period" shall commence as of August 29, 2018 and shall expire on December 28, 2018.

 

(iii)          Default
of Sellers. If one (1) or more of Sellers shall breach any of the terms or provisions of this Agreement applicable to
Sellers at or prior to the Closing, and any such breach shall continue for five (5) days after written notice thereof is delivered
by Buyer to Sellers or if the nature of Sellers’ breach is such that more than five (5) calendar days are required for
its cure, and Sellers shall not have commenced the cure within the five (5) day period or thereafter diligently pursued the
same to completion, then Buyer may either: (a) terminate this Agreement by written notice to Sellers, promptly after which
in the event of a Refundable Event the Deposit and all interest earned thereon shall be returned to Buyer by Sellers (and in all
events within three (3) days after Buyer delivers its termination notice), and in such event, Sellers shall pay Buyer as and
for Buyer’s damages hereunder, an amount equal to Buyer’s actual, out-of-pocket damages, costs and expenses incurred
in connection with this Agreement including, but not limited to, all costs and expenses related to Buyer’s investigations,
all sums paid to Buyer’s consultants, representatives, contractors and other professionals (such as surveyors, inspectors,
engineers, attorneys and accountants) providing services to Buyer in connection with this Agreement and the transactions contemplated
hereby, which sum shall be paid by Sellers to Buyer within three (3) days after the date Buyer delivers a written statement
itemizing such amounts and providing evidence of the same such as copies of invoices or evidence of payment, and thereafter, the
Parties shall have no further rights or obligations hereunder except for obligations which expressly survive the termination of
this Agreement, or (b) waive the default or breach and proceed to close the transactions, or (c) seek specific performance
of this Agreement by Sellers.

 

c.            By
Sellers.

 

(i)            Conditions
Not Met. If, on the Closing Date, the satisfaction of any of the Joint Conditions or Seller’s Conditions has not occurred
or, prior to the Closing Date, becomes impossible (in each case, other than through the failure of Seller to comply with its obligations
under this Agreement) and Seller has not waived any such condition; or

 

    26

     

    

 

(ii)           Default
by Buyer. If Buyer shall breach any of the terms or provisions of this Agreement applicable to Buyer at or prior to the Closing,
and any such breach shall continue for five (5) days after written notice thereof is delivered by Sellers and/or the Companies
to Buyer or if the nature of Buyer’s breach is such that more than five (5) calendar days are required for its cure,
and Buyer shall not have commenced the cure within the five (5) day period or thereafter diligently pursued the same to completion,
then Sellers may either: (a) terminate this Agreement by written notice to Buyer, and in such event, Buyer shall pay Sellers
as and for Sellers’ damages hereunder, an amount equal to Sellers’ actual, out-of-pocket damages, costs and expenses
incurred in connection with this Agreement including, but not limited to, all sums paid to Sellers’ and Companies’
consultants, representatives, contractors and other professionals (such as surveyors, inspectors, engineers, attorneys and accountants)
providing services to Seller and/or Companies in connection with this Agreement and the transactions contemplated hereby, which
sum shall be paid by Buyer to Sellers within three (3) days after the date Sellers deliver a written statement itemizing such
amounts and providing evidence of the same such as copies of invoices or evidence of payment, and thereafter, the Parties shall
have no further rights or obligations hereunder except for obligations which expressly survive the termination of this Agreement,
or (b) waive the default or breach and proceed to close the transactions, or (c) seek specific performance of this Agreement
by Buyer.

 

d.            Termination.
If any Party terminates this Agreement pursuant to this Section 10, all rights and obligations of the Parties hereunder shall
terminate without any liability of any Party to any other Party except for any liability arising from the prior breach by any Party
and Buyer and each of the Sellers shall be released and discharged from any further obligations to the others hereunder, other
than those obligations which, by their terms, survive termination.

 

11.           Post-Closing
Covenants.

 

a.            Public
Announcement; Communications. No Seller shall, directly or indirectly, make any public announcements, notices or other written
or oral communications to any Company’s customers, patients, vendors, employees or other persons or entities concerning the
contemplated transactions of this Agreement without the advance written consent of Buyer.

 

b.           Assurances.
The Parties shall in good faith from and after the date hereof take all actions as may be reasonably required to complete the contemplated
transactions without further consideration or expense of the other Parties.

 

c.            Noncompetition.
For a period of two (2) years from and after the Effective Date, no Seller will engage, either alone, or jointly with, or
as an officer, stockholder, lender, partner, principal, or agent for or employee of any person or persons, firm, partnership, or
corporation, either directly or indirectly set up, exercise, conduct, or be engaged or employed, or serve as an advisor or as a
consultant to, any business that directly or indirectly competes with the Business as it is conducted by the Companies on the day
immediately preceding the Closing Date, in each case, within a twenty (20) mile radius of the Dispensary, nor shall any foregoing
person or entity object to, attempt to limit or initiate an action against Buyer relative to Buyer's zoning, rezoning, variances,
use permits, building permits and applications, hearings, meetings and judicial proceedings relating to the Business for this two
(2) year period. If the final judgment of a court of competent jurisdiction declares that any term or provision of this Subsection
11(c) is invalid or unenforceable, the Parties agree that the court making the determination of invalidity or unenforceability
shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to
replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest
to expressing the intention of the invalid or unenforceable term or provision. The Parties hereby declare that it is impossible
to measure in money the damages which will accrue to Buyer and the Companies by reason of a failure by Sellers to perform the obligations
under this Subsection 11(c). Sellers each agree that the remedy at law for any breach of the provisions of this Subsection will
be inadequate, and that, in addition to damages, Buyer and the Companies shall be entitled to obtain injunctive relief from the
court having jurisdiction of at least one (1) of the Sellers, and the subject matter, ordering specific performance of the
provisions hereof. In any action to enforce the provisions of this Subsection, Sellers shall waive the right to claim that Buyer
or the Company(ies) have an adequate remedy at law. Sellers specifically admit receipt and adequacy of consideration for the obligations
on and covenants of Sellers imposed by this Subsection and the reasonableness of the time and distance limitations set forth above.
Notwithstanding any provision of this Agreement to the contrary, the terms of this Subsection 11(c) shall survive the Closing
Date and the execution, acknowledgement, sealing and delivery of this Agreement and consummation of the contemplated transactions.

 

    27

     

    

 

d.            Nonsolicitation.
For a period of two (2) years from and after the Effective Date, no Seller will solicit, attempt to hire, or hire any employee
providing services to the Business or the Companies. For purposes of this provision, a person is considered any “employee
providing services to the Business” if he or she is or was a part-time or full-time employee or volunteer for a period extending
from six (6) months prior to the Closing Date to the termination of this provision. For a period of two (2) years from
and after the Effective Date no Seller will take any action that is designed or intended to have the effect of discouraging any
lessor, customer, patient, prospective customer or patient, supplier, vendor or other business associate of any of the Companies
from maintaining the same business relationships with Buyer after Closing as it maintained with the respective Company prior to
Closing. During such two-year period, Sellers will refer all customers, patient, prospective customer or patient, supplier, vendor
and other business associate inquiries relating to the Business and the Companies to Buyer.

 

e.            Confidentiality.
Each of the Sellers and Companies will treat and hold as confidential all of the Confidential Information, defined below, refrain
from using any of the Confidential Information except in connection with this Agreement, and deliver promptly to Buyer or destroy,
at the reasonable, post-Closing request and option of Buyer, all tangible embodiments (and all copies) of the Confidential Information
that are in his or its possession. The foregoing provisions shall not apply to any Confidential Information that: (i) is generally
available to the public prior to the time of disclosure other than as a breach of this provision, or (ii) is lawfully acquired
by a Seller from and after Closing from sources that are not prohibited from disclosing such information. The term “Confidential
Information” means any information concerning the Assets, the Companies, the Business and the affairs of the Companies
that is not generally available to the public prior to the Effective Date. Notwithstanding the foregoing, Sellers may maintain
in their records a copy of this Agreement and its Exhibits and Schedules, and disclose the same to their legal and tax advisers.

 

    28

     

    

 

12.           Survival
of Representations and Warranties.

 

a.            Survival
of Sellers’ Representations and Warranties. All of the representations and warranties of Sellers contained in this Agreement,
as well as the right of Buyer to rely thereon, shall survive Closing as follows: (i) all of the representations and warranties
of Sellers contained in Sections 6(a), (b), (c), (d), (g), (p), (q), (r) and (s) (collectively “Fundamental
Representations”) shall survive Closing and continue in full force and effect forever; (ii) all other representations
and warranties of Sellers contained in this Agreement shall survive Closing and continue in full force and effect until the expiration
of the applicable statute of limitations. The expiration of the applicable survival period shall not terminate any claim for indemnification
for which Buyer has previously notified Sellers.

 

b.            Survival
of Buyer’s Representations and Warranties. All of the representations and warranties of Buyer contained in this Agreement,
as well as the rights of Sellers to rely thereon, shall survive Closing as follows: (i) all of the representations and warranties
of Buyer contained in Sections 7(a) and (b) shall survive Closing and continue in full force and effect forever; and
(ii) all of the other representations and warranties of Buyer contained in this Agreement shall survive Closing in full force
and effect until the expiration of the applicable statute of limitations. The expiration of the applicable survival period shall
not terminate any claim for indemnification for which Sellers have previously notified Buyer.

 

c.            Survival
of Covenants. All covenants and agreements of the Parties contained herein shall survive Closing indefinitely or for the period
explicitly specified therein. Any claims asserted in good faith with reasonable specificity (to the extent known at such time)
and in writing by notice from the non-breaching Party to the breaching Party prior to the expiration date of the applicable survival
period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive
until finally resolved.

 

13.           Indemnifications.

 

a.            Indemnification
by Sellers. Sellers shall jointly and severally defend, indemnify and hold harmless Buyer, its officers, agents, employees
and servants, and their respective heirs, personal and legal representatives, guardians, successors and assigns (collectively,
 “Buyer Indemnitees”) for, from and against the entirety of all actions, suits, proceedings, hearings, investigations,
charges, complaints, claims, demands, injunctions, judgments, orders, decrees, rulings damages, penalties, fines, costs, amounts
paid in settlement, liabilities, obligations, Taxes, Liens, losses, expenses, and fees, including court costs and reasonable attorneys'
fees (collectively, “Adverse Consequences”) resulting from, arising out of, relating to, in the nature of, or
to the extent caused by the following, any: (i) misrepresentation or breach by Sellers, and any one of them, of any representation
or warranty of Sellers contained in this Agreement and/or any of the Transaction Documents; (ii) nonperformance, failure to
comply or breach by Sellers, and any one of them, of any covenant, promise or agreement of Sellers contained in this Agreement
and/or the Transaction Documents; and (iii) of the Excluded Liabilities.

 

    29

     

    

 

b.            Indemnification
by Buyer. Buyer shall defend, indemnify and hold harmless Sellers, and their respective officers, agents, employees and servants,
and their respective heirs, personal and legal representatives, guardians, successors and assigns (collectively, “Seller
Indemnitees”) for, from and against the Adverse Consequences resulting from, arising out of, relating to, in the nature
of, or to the extent caused by the following, any: (i) misrepresentation, omission or breach by Buyer of any representation
or warranty of Buyer contained in this Agreement; and (ii) nonperformance, failure to comply or breach by Buyer of any covenant,
promise or agreement of Buyer contained in this Agreement.

 

REST OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURES ON NEXT PAGE

 

    30

     

    

 

IN WITNESS WHEREOF,
Sellers and Buyer have executed and delivered this Agreement as of the day and year first written above.

 

BUYER:

 

VIREO HEALTH OF ARIZONA, LLC, a Delaware limited liability company

 

	By:	Kyle Kingsley	 
	 	 
	Its:	CEO	 

 

	SELLERS:	MARK WRIGHT	 
	 	 /s/ Mark Wright	 
	 	 	 
	 	SHANE HOWELL	 
	 	 /s/ Shane Howell	 
	 	 	 
	 	GORDON HAMILTON	 
	 	 /s/ Gordon Hamilton	 
	 	 	 
	 	ROBERT KIVLIGHN	 
	 	/s/ Robert Kivlighn	 

 

Signature Page

to

Third Amended and Restated Membership Interest
Stock and Purchase Agreement

 

    

     

    

 

CONSENT OF SPOUSE

 

I, the undersigned,
being a spouse of a shareholder of Live Fire, Inc. and/or Sacred Plant, Inc., each an Arizona corporation, who is a Party
to the foregoing Agreement, hereby declare that I have read the foregoing Agreement in its entirety; and, being fully convinced
of the wisdom and equity of the terms of the Agreement, and in consideration of the premises and of the provisions of said Agreement, I
hereby express my acceptance of the same and agree to abide by its provisions.

 

I hereby further agree
that I will at any time, before or after the death of my spouse and while this Agreement is in effect, make, execute and deliver
to the Parties to said Agreement any documents which may be necessary to carry out the provisions of said Agreement.

 

This instrument is
not a present transfer or release of any rights which I may have in any of the community property of my marriage.

 

DATED this 21st day of March, 2019.

 

NAME  
Paula Hamilton                                             

 

SIGNATURE
/s/ Paula Hamilton                               

 

    

     

    

 

CONSENT OF SPOUSE

 

I, the undersigned,
being a spouse of an owner of a membership interest in Elephant Head Farm, LLC and/or Retail Management Associates, LLC, each an
Arizona limited liability company, who is a Party to the foregoing Agreement, hereby declare that I have read the foregoing Agreement
in its entirety; and, being fully convinced of the wisdom and equity of the terms of the Agreement, and in consideration of the
premises and of the provisions of said Agreement, I hereby express my acceptance of the same and agree to abide by its provisions.

 

I hereby further agree
that I will at any time, before or after the death of my spouse and while this Agreement is in effect, make, execute and deliver
to the Parties to said Agreement any documents which may be necessary to carry out the provisions of said Agreement.

 

This instrument is
not a present transfer or release of any rights which I may have in any of the community property of my marriage.

 

DATED this 24th day of February, 2019.

 

NAME   Stephanie Howell                                                 

 

SIGNATURE /s/ Stephanie HowellExhibit 10.13

 

CERTAIN CONFIDENTIAL INFORMATION (MARKED
BY BRACKETS AS “[***]”) HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD
BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

EQUITY PURCHASE AGREEMENT

 

by and among

 

VIREO HEALTH, INC.

 

PENNSYLVANIA MEDICAL SOLUTIONS, LLC

 

PASPV HOLDINGS, LLC

 

and

 

JUSHI INC

 

June 21, 2020

 

    

     

    

 

EQUITY PURCHASE
AGREEMENT

 

This Equity Purchase
Agreement (this “Agreement”), dated as of June 20, 2021 (the “Effective Date”), is entered
into by and among Vireo Health, Inc., a Delaware corporation (“Seller”), Pennsylvania Medical Solutions,
LLC, a Pennsylvania limited liability company (“Company”), PASPV Holdings, LLC, a Pennsylvania limited liability
company (“Buyer”), and Jushi Inc, a Delaware corporation (“Jushi”). Seller, Company, Buyer
and Jushi are sometimes referred to individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS the
Company is the holder of a medical marijuana grower/processor permit for the Commonwealth of Pennsylvania, registration number
GP-2018-17, issued by the Pennsylvania Department of Health (“DOH”);

 

WHEREAS Seller
owns one hundred percent (100%) of the outstanding membership interests of the Company (the “Company Interests”);
and

 

WHEREAS Buyer
and Seller wish to enter into a transaction pursuant to which Buyer will purchase one hundred percent (100%) of the Company Interests
from Seller upon the terms and conditions contained in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the mutual covenants and promises contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1.        Defined
Terms. As used in this Agreement, the following terms will have the following meanings:

 

“Accounts Payable” means,
without duplication, as of any date of determination, all bona fide accounts and notes payable of the Company, including all checks
written on the Company’s “zero balance” or other bank accounts, if any, on or prior to the date of determination
which have not cleared as of the date of determination, but exclusive of: (a) any accounts or notes payable to Seller, its
Affiliates (other than the Company); or (b) any Seller Transaction Expense.

 

“Accounts Receivable”
means, without duplication, as of any date of determination, all bona fide trade accounts and notes receivable of the Company from
the sale of goods to third party customers, and which shall not include, without limitation: (a) accounts or notes receivable
from Seller or any of its Affiliates (other than the Company); (b) accounts or notes receivable pursuant to any Lease; and
(c) any accounts or notes receivable classified as “Doubtful Accounts” or for which the Company has made an allowance,
in each case as set forth in the Company’s most recent Financial Statement.

 

    

     

    

 

“Acquisition Proposal”
means any inquiry, proposal or offer from any Person (other than Buyer or any of its Affiliates) concerning: (a) a merger,
consolidation, liquidation, recapitalization, share exchange or other business combination transaction involving the Company; (b) the
sale, offer to sell, offer to purchase, issuance, acquisition or disposition of any Company Interests or other Company equity,
or any option, warrant, or other right to do any of the foregoing; (c) the sale, lease, transfer, exchange or other acquisition
or disposition of any portion of the Company’s properties or assets (excluding Inventory disposed of in the Ordinary Course
of Business) or any of the Company’s Permits; or (d) any other transaction similar to the Transaction, or that could
reasonably be expected to hinder, restrict or affect the ability of the Parties to consummate the Transaction in a timely manner.

 

“Adverse Consequences”
means any Claim, Order, Encumbrance or Liability.

 

“Affiliate” means, as
to any Person, any other Person which directly or indirectly controls, is controlled by, or is under common control with, such
Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by”
and “under common control with”) means possession, directly or indirectly, of the ability or power to direct or cause
the direction of the management or policies of a Person (whether through ownership of securities or partnership or other ownership
interests, by contract or otherwise).

 

“Agreement” means, unless
the context otherwise requires, this Equity Purchase Agreement together with the Schedules and Exhibits attached hereto, and the
certificates and other instruments to be executed and delivered in connection herewith.

 

“Applications” means
any applications, materials and other correspondences (including, without limitation, attachments, exhibits and appendices) submitted
to the DOH or any other Governmental Authority in connection with the Pennsylvania Cannabis Laws.

 

“Bridge Loan” means
a promissory note, security agreement and other, related documents substantially on the terms set forth in Exhibit F.

 

“Business” means the
cultivation and processing of Cannabis for sale to retail outlets within the Commonwealth of Pennsylvania, as presently conducted
by the Company.

 

“Business Day” means
any day other than a Saturday, Sunday or a legal holiday on which banks are not open for general business in the Commonwealth of
Pennsylvania.

 

“Cash” means unrestricted
cash and unrestricted cash equivalents of the Company.

 

“Claim” means any claim,
action, cause of action, demand, lawsuit, arbitration, notice of deficiency, audit, charge, notice of violation, compliant, proceeding,
injunction, hearing, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory
or otherwise, whether at law or in equity.

 

“COBRA” means the provisions
of Part 6 of Subtitle B of Title I of ERISA and Section 4980B of the Code and all regulations thereunder.

 

    - 2 -

     

    

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Contracts” mean the
Material Contracts and the Minor Contracts.

 

“Current Assets” means
all Cash, Accounts Receivable and Finished Goods Inventory, determined in accordance with GAAP applied using the same accounting
methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation
methodologies that were used in the preparation of the Financial Statements.

 

“Current Liabilities”
means all Accounts Payable and Other Current Liabilities of the Company but excluding any Indebtedness and operating lease payables;
in each case, determined in accordance with GAAP applied using the same accounting methods, practices, principles, policies and
procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation
of the Financial Statements.

 

“Employee Benefit Plans”
means, collectively, all Employee Pension Benefit Plans and Employee Welfare Benefit Plans of the Company.

 

“Employee Pension Benefit Plan”
will have the meaning set forth in ERISA Section 3(2), which is not a Multiemployer Plan).

 

“Employee Welfare Benefit Plan”
will have the meaning set forth in ERISA Section 3(1).

 

“Encumbrance” means
any claim, lien, pledge, option, charge, security interest, encumbrance, or other right of any Person, or any other restriction
or limitation of any nature whatsoever, that in each case affects title to the Company Interests or title to any assets of the
Company.

 

“Enforceability Limitations”
mean (a) bankruptcy, insolvency, reorganization, moratorium or similar Law now or hereafter in effect relating to creditors’
rights, (b) the discretion of the appropriate court with respect to specific performance, injunctive relief or other terms
of equitable remedies, and (c) limitations regarding the enforceability of contracts in technical violation of the Federal
Cannabis Laws.

 

“Environment”
means soil, land surface or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage
basins, and wetlands), groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal
life, and any other environmental medium or natural resource.

 

“Environmental,
Health, and Safety Liabilities” means any Adverse Consequence (including, without limitation, any investigatory, corrective
or remedial obligation), or other responsibility arising from or under Environmental Law or Occupational Safety and Health Law
and consisting of or relating to: (a) any environmental, health, or safety matters or conditions (including on-site or off-site
contamination, occupational safety and health, and regulation of chemical substances or products); (b) investigative, remedial,
inspection or other Liabilities arising under Environmental Law or Occupational Safety and Health Law; (c) Liabilities for
cleanup costs or corrective action, including any investigation, cleanup, removal, containment, or other remediation or response
actions (“Cleanup”) required by applicable Environmental Law or Occupational Safety and Health Law (whether
or not such Cleanup has been required or requested by any Governmental Authority or any other Person) and for any natural resource
damages; or (d) any other compliance, corrective, investigative, or remedial measures required under Environmental Law or
Occupational Safety and Health Law. The terms “removal,” “remedial,” and “response action,”
include the types of activities covered by the United States Comprehensive Environmental Response, Compensation, and Liability
Act, 42 U.S.C. § 9601 et seq., as amended.

 

    - 3 -

     

    

 

“Environmental
Law” means any applicable Law which has been adopted and is effective prior to the Closing Date that requires or relates
to: (a) advising appropriate Governmental Authorities, employees, and/or the public of intended or actual Releases of pollutants
or hazardous substances or materials, violations of discharge limits, or other prohibitions and of the commencement of activities,
such as resource extraction or construction, that could have significant impact on the Environment; (b) preventing or reducing
to acceptable levels the Release of pollutants or hazardous substances or materials into the Environment; (c) reducing the
quantities, preventing the Release, or minimizing the hazardous characteristics of wastes that are generated; (d) assuring
that products are designed, formulated, packaged, and used so that they do not present unreasonable risks to human health or the
Environment when used or disposed of; (e) protecting resources, species, or ecological amenities; (f) reducing to acceptable
levels the risks inherent in the transportation of hazardous substances, pollutants, oil, or other potentially harmful substances;
(g) cleaning up pollutants that have been Released, preventing the threat of Release, or paying the costs of such clean up
or prevention; or (h) making responsible parties pay private parties, or groups of them, for damages done to their health
or the Environment, or permitting self-appointed representatives of the public interest to recover for injuries done to public
assets.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

“ERISA Affiliate” means
a trade or business, whether or not incorporated, which is deemed to be in common control or affiliated with the Company within
the meaning of Section 4001 of ERISA or Sections 414(b), (c), (m), or (o) of the Code.

 

“Federal Cannabis Laws”
means any U.S. federal laws, civil, criminal or otherwise, as such relate, either directly or indirectly, to the cultivation, harvesting,
production, distribution, sale and possession of cannabis, marijuana or related substances or products containing or relating to
the same, including, without limitation, the prohibition on drug trafficking under 21 U.S.C. § 841(a), et seq., the conspiracy
statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the
bar against misprision of a felony (concealing another’s felonious conduct) under 18 U.S.C. § 4, the bar against
being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, and federal money laundering statutes under 18
U.S.C. §§ 1956, 1957, and 1960 and the regulations and rules promulgated under any of the foregoing.

 

“Financial Statements”
mean unaudited balance sheets and statements of income, changes in stockholders’ equity, and cash flow as of and for the
fiscal years ended December 31, 2018 and December 31, 2019 and unaudited combined and consolidating balance sheets and
statements of income, changes in stockholders’ equity, and cash flow as of and for the months ended April 30, 2020.

 

    - 4 -

     

    

 

“Finished Goods Inventory”
means all inventory classified as “Finished Goods” using the definition applied to the Company’s April 2020
balance sheet and which: (a) have passed independent third party testing; (b) were classified as Finished Goods on the
Financial Statements after January 1, 2020; and (c) are not subject to a destruction order or indefinitely quarantined
at the time of determination.

 

“GAAP” means generally
accepted accounting principles in the United States as set forth in the pronouncement of the Financial Accounting Standards Board
(and its predecessors) and the American Institute of Certified Public Accountants, consistently applied.

 

“Governmental Authority”
means any federal, state, commonwealth, provincial, municipal, local or foreign government, or any political subdivision thereof,
or any court, agency or other entity, body, organization or group, exercising any executive, legislative, judicial, quasi-judicial,
regulatory or administrative function of government, or any supranational body, arbitrator, court or tribunal of competent jurisdiction.

 

“Hazardous
Materials” means any waste or other substance that is listed, defined, designated, or classified as, or otherwise determined
to be, hazardous, radioactive, or toxic or a pollutant or a contaminant under or pursuant to any Environmental Law, including any
admixture or solution thereof, and specifically including petroleum and all derivatives thereof or synthetic substitutes therefor,
silica or silica-containing materials and asbestos or asbestos-containing materials.

 

[***]

 

“Indebtedness” means,
with respect to any Person as of any date of determination and without duplication: (a) all obligations of such Person for
borrowed money, including, without limitation, all obligations for principal and interest, and for prepayment and other penalties,
fees, costs and charges of whatsoever nature with respect thereto, (b) all obligations of such Person under conditional sale
or other title retention agreements relating to property purchased by such Person, (c) all obligations of such Person issued
or assumed as the deferred purchase price of property or services (other than Permitted Accounts Payable), (d) all Indebtedness
of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Encumbrance on property owned or acquired by such Person whether or not the obligations secured thereby have been assumed
or is nonrecourse to the credit of that Person, (e) all capital lease obligations of such Person (as defined under GAAP),
(f) all obligations (including but not limited to reimbursement obligations) relating to the issuance of letters of credit
for the account of such Person, (g) all obligations arising out of interest rate and currency swap agreements, cap, floor
and collar agreements, interest rate insurance, currency spot and forward contracts and other agreements or arrangements designed
to provide protection against fluctuations in interest or currency exchange rates, (h) all obligations of such Person to its
shareholders, members partners or other equity-holders; (i) any amounts, fines or monetary penalties asserted against such
Person by any Governmental Authority (other than related to Taxes); and (j) obligations in the nature of guarantees of obligations
of the type described in clauses (a) through (i) above of any other Person.

 

    - 5 -

     

    

 

“Insurance” means any
fire, product liability, automobile liability, general liability, worker’s compensation, medical insurance stop-loss coverage
or other form of insurance of the Business, and any tail coverage purchased with respect thereto.

 

“Intellectual Property”
means all intellectual property of any kind or nature whatsoever including, without limitation: (a) all inventions (whether
patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications,
and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and re-examinations
thereof, (b) all trademarks, service marks, trade dress, logos, trade names, and limited liability company names, together
with all translations thereof, all goodwill associated therewith, and all applications, registrations, and renewals in connection
therewith, (c) all copyrightable works, all copyrights, and all applications, registrations and renewals in connection therewith,
(d) all trade secrets and confidential business information (including ideas, research and development, know-how, formulas,
recipes, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications,
customer and supplier lists, pricing and cost information, and business and marketing plans and proposals), (e) all computer
software (including data and related documentation and including software installed on hard disk drives) other than off-the-shelf
computer software subject to shrink-wrap or click-through licenses, (f) web sites, website domain names, social media accounts
and passwords and other e-commerce and social media assets, and (g) all copies and tangible embodiments of any of the foregoing
(in whatever form or medium).

 

“Inventory” means Finished
Goods Inventory and Other Inventory.

 

“IRS” means the Internal
Revenue Service.

 

“JHI” means Jushi Holdings
Inc., a British Columbia corporation.

 

“Knowledge” and similar
phrases using the term “Knowledge” or derivatives thereof mean the actual knowledge of: (a) with respect to the
Company, the following individuals: [***]; and (b) with respect to Buyer, every executive officer and member of the board
of directors of JHI, in each case after having made reasonable inquiry with respect to the matters which are relevant to the representation,
warranty, covenant or agreement being made or given.

 

[***]

 

“Law” means any federal,
state, local, municipal, provincial, foreign or other law, statute, constitution, principle of common law, resolution, ordinance,
code, edict, consent, Order, regulation, ruling, directive, published regulatory guidance with the force of law, rule or regulation,
agreement or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or with or under the
authority of any Governmental Authority, having the force of law.

 

    - 6 -

     

    

 

“Liability” or “Liabilities”
means any liability or obligation of whatever kind or nature (whether known or unknown, whether asserted or unasserted, whether
absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including,
without limitation, all losses, damages, dues, penalties, fines, costs and expenses (including court costs and reasonable attorneys’
fees and expenses), amounts paid in connection with a settlement, compromise or judgement, and Taxes.

 

“Material Adverse Effect”
or “Material Adverse Change” means, with respect to any Person, any effect or change that would be (or could
reasonably be expected to be) materially adverse to the business, assets, condition (financial or otherwise), operating results,
operations, or business prospects (including as projected in any revenue, earnings, or other forecast, whether internal or published)
of such Person, or to the ability of such Person to consummate the Transaction contemplated hereby; provided, however, that “Material
Adverse Effect” shall not include any effect or change arising out of or attributable to: (i) general economic or political
conditions; (ii) conditions generally affecting the industries in which such Person operates; (iii) any changes in financial,
banking or securities markets in general, including any disruption thereof and any decline in the price of any security or any
market index or any change in prevailing interest rates; (iv) acts of war (whether or not declared), armed hostilities or
terrorism, or the escalation or worsening thereof; (v) any changes in accounting rules, including GAAP or IFRS;  or (vi) any
action such Person is required to take pursuant to the direction of a Party hereto acting under the authority granted to such Party
hereunder; provided, further, however, that any event, occurrence, fact, condition, or change referred to in clauses (i) through
(v) immediately above shall be taken into account in determining whether a Material Adverse Effect or Material Adverse Change
has occurred or could reasonably be expected to occur to the extent that such event, occurrence, fact, condition, or change has
a disproportionate effect on the such Person compared to other participants in the industry or industries in which such Person
conducts its business.

 

“Material Contracts”
mean the following written and oral contracts which are currently in effect and to which the Company is a party or by which the
Company is bound:

 

(a)            any
agreement for the purchase or supply of cannabis involving minimum payments in excess of $25,000 for any 12-month period;

 

(b)            any
agreement (or group of related agreements) for the lease of personal property to or from any Person providing for minimum lease
payments in excess of $25,000 per annum;

 

(c)            any
agreement (or group of related agreements) for the purchase or sale of supplies, products, or other personal property, or for the
furnishing or receipt of services, the performance of which will extend over a period of more than 1 year, result in a loss to
the Company, or involve consideration in excess of $25,000;

 

(d)            any
agreement concerning a partnership or joint venture;

 

(e)            any
agreement (or group of related agreements) under which the Company has created, incurred, assumed, or guaranteed any indebtedness
for borrowed money, or any capitalized lease obligation, in excess of $25,000 or under which an Encumbrance has been imposed upon
any of its assets, tangible or intangible;

 

    - 7 -

     

    

 

(f)            any
Related Party Agreement;

 

(g)           any
profit sharing, membership interest option, membership interest purchase, membership interest appreciation, deferred compensation,
severance, or other plan or arrangement for the benefit of its current or former directors, officers, and/or employees;

 

(h)           any
collective bargaining agreement, labor peace or similar agreement;

 

(i)            any
agreement for the employment or engagement as an independent contractor of any individual on a full-time, part-time, consulting,
or other basis providing minimum annual compensation in excess of $25,000 or providing severance benefits;

 

(j)            any
agreement under which the consequences of a default or termination could reasonably be expected to have a Material Adverse Effect;

 

(k)           any
settlement, conciliation or similar agreement with any Governmental Authority or which will require satisfaction of any obligations
after the Effective Date;

 

(l)            any
agreement, license or other contract under which (i) the Company and/or Seller has licensed or otherwise granted rights in
any of its Intellectual Property to any Person or (ii) any Person has licensed or sublicensed to the Company and/or Seller,
or otherwise authorized the Company and/or Seller to use, any third party Intellectual Property (other than licenses of internally
used off-the-shelf or shrinkwrap software);

 

(m)          any
other agreement (or group of related agreements) the performance of which involves minimum consideration in excess of $25,000.

 

(n)           any
agreement relating to any Employee Pension Benefit Plan, Employee Welfare Benefit Plan, or any other Benefit Arrangement;

 

(o)           any
employment, consulting or sales or leasing representative agreement not cancelable by the Company without penalty upon ninety (90)
days or less written notice;

 

(p)           any
settlement agreement or other agreement in respect of any past or present Proceeding involving payments in excess of $25,000;

 

(q)           any
non-competition or non-solicitation agreement;

 

(r)            any
Applications; and

 

(s)           any
agreement providing for indemnification by the Company other than pursuant to standard terms of contracts in the Ordinary Course
of Business.

 

    - 8 -

     

    

 

“Minor Contracts” mean
any contract or other agreement (other than the Material Contracts), whether written or oral, to which the Company is a party or
by which the Company is bound.

 

“Multiemployer Plan”
shall have the meaning set forth in ERISA Section 3(37).

 

“Net Working Capital”
means, as of any date of determination, the difference between the Company’s Current Assets minus the Company’s Current
Liabilities, in each case calculated in accordance with GAAP applied on a basis consistent with past practice of the Company (and
consistent with the preparation of the Financial Statements), without giving effect to the consummation of the Transaction, and
adjusted to exclude the Company’s Accounts Receivable aged beyond one hundred and twenty (120) days of the earlier of the
applicable invoice issuance date and the payment due date.

 

“Net Working Capital Target”
means $[***].

 

“Occupational
Safety and Health Law” means any Legal Requirement, including the Occupational Safety and Health Act of 1970, as amended,
and the rules and regulations promulgated thereunder, which both has been adopted and is effective prior to the Closing Date
and which is designed to provide safe and healthful working conditions and to reduce occupational safety and health hazards, and
any program, whether governmental or private (including those promulgated or sponsored by industry associations and insurance companies),
designed to provide safe and healthful working conditions.

 

“Order” means any order,
writ, assessment, decision, injunction, decree, judgment, ruling, award, settlement or stipulation issued, promulgated or entered
into by or with any Governmental Authority.

 

“Ordinary Course of Business”
means the ordinary course of business consistent with past practice (including with respect to quantity and frequency, taking into
account any growth in revenues and associated expenses due to growth.

 

“Other Current Liabilities”
means all liabilities of the Company that would, in accordance with GAAP, be classified as current liabilities other than Accounts
Payable, and including, without limitation, any accrued Taxes, deferred revenue obligations and accrued payroll expenses, in each
case determined in accordance with GAAP applied using the same accounting methods, practices, principles, policies and procedures,
with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the
Financial Statements.

 

“Other Inventory” means
all inventory of or related to the Business including without limitation all raw materials, biologics, ingredients, works-in-progress
(including plants, yield flower an lab oil), packaging and supplies; provided, however, that “Other Inventory” does
not include: (a) any of the foregoing to the extent such inventory is unusable or otherwise not maintained in a commercially
reasonable manner in the Ordinary Course of Business; (b) any of the foregoing to the extent such inventory is, pursuant to
applicable Law, subject to a destruction order or indefinitely quarantined at the time of determination; or (c) any Finished
Goods Inventory.

 

    - 9 -

     

    

 

“Owned Tangible Personal Property”
means all Tangible Personal Property owned by the Company.

 

“Pennsylvania Cannabis Laws”
means the marijuana establishment laws of any jurisdictions within the Commonwealth of Pennsylvania to which the Company is, or
may at any time become, subject, including, without limitation, the Pennsylvania Medical Marijuana Act (35 P.S. §10231.101
et. seq.), as amended, and the rules and regulations adopted by the Pennsylvania Department of Health (including 28 Pa. Code
 §§1141, 1151 and 1161 of the Pennsylvania regulations), the Pennsylvania Department of Revenue or any other state or
local government agency with authority to regulate any marijuana operation (or proposed marijuana operation).

 

“Permits” mean all permits,
licenses, consents, franchises, approvals, registrations, certificates, variances and other authorizations required to be obtained
from any Governmental Authority or other Person in connection with the operation of the Business and necessary to conduct the Business
as presently conducted.

 

“Permitted Accounts Payable”
means normal and customary accounts payable of the Company in the Ordinary Course of Business.

 

“Permitted Encumbrances”
means: (a) liens or encumbrances for Taxes, assessments or other governmental charges not due and payable or the amount or
validity of which is being contested in good faith, (b) such other imperfections in title, charges, easements, restrictions
and encumbrances which do not result in a Material Adverse Effect on the Company, (c) easements, rights of way, zoning ordinances
and other similar encumbrances affecting Real Property, and (d) mechanics’, carriers’, workmens’, repairmens’
or other like liens arising or incurred in the Ordinary Course of Business (except to the extent that any such lien relates to
overdue payments unless such payments are being diligently contested in good faith pursuant to appropriate proceedings).

 

[***]

 

“Real Property” means
all real property owned or leased by the Company or in which the Company otherwise has any interest, together with: (a) all
buildings and improvements located thereon, and (b) all rights, privileges, interests, easements, hereditaments and appurtenances
thereunto in any way incident, appertaining or belonging thereto.

 

“Related Party Agreement”
means any agreement or understanding, whether written or oral, between the Company, on the one hand, and: (a) Seller; (b) any
Affiliate of Seller (other than the Company); (c) Seller’s Representatives; (d) any Affiliate of Seller’s
(other than the Company) Representatives, or (e) the Company’s Representatives, on the other hand, including, without
limitation, any agreement pursuant to which the Company has advanced or loaned any amount of money to any of the foregoing;

 

    - 10 -

     

    

 

“Release”
means any spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment,
whether intentional or unintentional.

 

“Representation Survival Period”
means, (a) for Seller’s and the Company’s representations and warranties (excluding Seller Excluded Representations)
set forth in Article 4 of this Agreement, the period beginning on the Closing Date and ending on the date that is the
twenty-four (24) month anniversary of the Closing Date, and (b) for Buyer’s representations and warranties (excluding
the Buyer Excluded Representations) set forth in Article 5 of this Agreement, the period beginning on the Closing Date
and ending on the date that is the twenty-four (24) month anniversary of the Closing Date.

 

“Representative” means
any director, officer, shareholder, manager, member, partner, principal, employee, attorney, accountant, agent or other representative
of any Person.

 

“Seller Transaction Expenses”
means (a) the costs, fees and expenses incurred by the Company, or Seller in connection with the Transaction for investment
bankers, third party consultants, legal counsel, accountants and other advisors, (b) all change in control, retention, or
transaction-related bonus amounts payable to, or for the benefit of, employees, officers, contractors or directors of the Company
as a consequence of the transactions contemplated by this Agreement, whenever payable, including any Taxes that become payable
by the Company in connection therewith, and (c) overdrafts on any bank account and reimbursement obligations under any credit
facility of the Company acquired by Buyer, in each of the foregoing clauses (a) through (c) to the extent unpaid as of
the Closing Date.

 

“Tangible Personal Property”
means all tangible personal property (other than Inventory) owned or leased by the Company or in which the Company has any interest,
including vehicles and production and processing equipment, warehouse equipment, computer hardware, furniture and fixtures, leasehold
improvements, supplies and other tangible assets, together with any transferable manufacturer or vendor warranties related thereto.

 

“Tax” or “Taxes”
means any federal, state, local or non-U.S. income, gross receipts, license, payroll, employment, excise, severance, startup, occupation,
premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar),
health, unemployment, disability, real property, personal property, intangible property, sales, use, transfer, registration, value
added, goods and services, harmonized, alternative or add-on minimum, estimated, or other tax or similar obligation of any kind
whatsoever to any Tax authority, including any interest, penalty or addition thereto, whether disputed or not.

 

“Tax Return” means any
return, declaration, report, form, claim for refund, election or information return or statement relating to Taxes, including any
schedule or attachment thereto, and any amendment thereof.

 

“Transaction” means
the equity purchase and other transactions contemplated under this Agreement.

 

    - 11 -

     

    

 

“Transfer Taxes” means
any sales, use, stock transfer, value added, real property transfer, transfer, stamp, registration, documentary, recording or similar
duties or taxes together with any interest thereon, penalties, fines, costs, fees, additions to tax or additional amounts with
respect thereto incurred in connection with the transactions contemplated by this Agreement.

 

“Treasury Regulation”
means the United States Treasury regulations promulgated under the Code.

 

“Undisclosed Material Adverse
Fact” means any facts or facts disclosed by Seller or discovered by Buyer after the Effective Date that, individually
or in the aggregate, constitute a Material Adverse Effect on the Company, the Business or PADS (if and only if the PADS Option
continues in effect at the time of such disclosure or discovery), or prevent Seller from consummating the Transaction.

 

“Unremediated UMAF”
means any Undisclosed Material Adverse Fact for which: (i) Buyer shall have given Seller notice within five (5) Business
Days after discovery, and (ii) Seller and/or the Company shall have been unable or unwilling to remediate such Undisclosed
Material Adverse Fact to Buyer’s reasonable satisfaction prior to the scheduled Closing Date or such Undisclosed Material
Adverse Fact shall be patently incapable of such remediation in the reasonable discretion of Buyer;

 

    - 12 -

     

    

 

Other Defined Terms. The following terms
will have the meanings defined for such terms in the Sections set forth below:

 

	
        Term

         
	Section
	Accepted Reconciliation Item	2.5(c)
	Affiliation Form	6.13(a)
	Agreement	Introduction
	Application Party or Application Parties	6.13(a)
	Benefit Arrangements 	4.13(i)
	Buyer	Introduction
	Buyer Excluded Representations	9.1(b)
	Buyer Maximum Indemnification Liability	9.4(c)
	Buyer Parties	9.2
	Cash Consideration	2.2(a)
	Closing	3.1
	Closing Date	3.1
	Closing Indebtedness Amount	2.4(a)
	Closing Indebtedness Schedule	2.4(a)
	Closing Net Working Capital	2.5
	Company	Introduction
	Company Interests	Recitals
	Company Transaction Expense Schedule	2.4(b)
	Confidential Information	10.6
	Debt Payoff Letters	2.4(a)
	Disclosure Schedules	Article 4
	Disputed Reconciliation Item	2.5(c)
	DOH	Recitals
	Due Diligence Period	8.1(c)
	Effective Date	Introduction
	Estimated Closing Adjustment Amount	2.3(b)
	Estimated Closing Net Working Capital	2.3(a)
	Estoppel Certificate	7.1(m)
	Finished Goods Inventory Count 	2.3(a)
	GP Permit	4.13(f)
	Indemnified Party	9.5
	Indemnifying Party	9.5
	[***]	7.1(k)
	Independent Accountant	2.5(e)
	Jushi	Introduction
	Leased Real Property	4.10(a)
	Leases	4.10(a)
	NDA	6.5
	Negative Closing Net Working Capital Amount	2.3(b)
	Net Working Capital Statement	2.3(a)
	Note	2.2(b)
	Note Consideration	2.2(b)
	Option	10.3
	Option Period	10.3
	PADS	7.1(t)
	PADS Equity	10.3
	Party or Parties	Introduction
	Pension Plans	4.16(a)
	Positive Closing Net Working Capital Amount	2.3(b)
	Post-Closing Straddle Period	10.2(c)
	Pre-Closing Straddle Period	10.2(c)
	Pre-Closing Tax Periods	10.2(a)
	Purchase Price	2.2
	Reconciliation Items	2.5(a)
	Reconciliation Period	2.5(a)
	Reconciliation Statement	2.5(a)
	Releasing Parties	11.19
	Resolution Period	2.5(d)
	Review Period	2.5(b)
	Seller	Introduction
	Seller Excluded Representations	9.1(a)
	Seller Fundamental Representations	9.1(a)
	Seller Maximum Indemnification Liability	9.4(b)
	Statement of Objections	2.5(c)
	Straddle Period	10.2(c)
	Supply Agreement	7.1(t)
	Tax and ERISA Representations	9.1(a)
	Tax Matter	10.2(g)
	Third-Party Claim 	9.5
	Threshold	9.4(a)
	Transition Services Agreement	7.1(t)
	
        Undisclosed Material Adverse Fact

        WARN Act
	
        7.1(r)

        4.26(v)

	Welfare Plans	4.16(b)

 

    - 13 -

     

    

 

ARTICLE 2

PURCHASE AND SALE OF MEMBERSHIP INTERESTS

 

2.1.        Purchase
and Sale of Company Interests. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from
Seller, and Seller agrees to sell to Buyer, all of the Company Interests, free and clear of any Encumbrances, for the consideration
specified below in this Article 2.

 

2.2.        Purchase
Price. As consideration for the sale, conveyance, transfer, assignment and delivery of the Company Interests by Seller, on
the Closing Date Jushi shall pay to Seller (subject to adjustment as provided in this Agreement) an aggregate purchase price (the
 “Purchase Price”) of Twenty Million Dollars ($20,000,000) as follows:

 

(a)            Sixteen
Million Two Hundred and Fifty Thousand Dollars ($16,250,000) in cash, reduced by the outstanding principal and accrued, unpaid
interest on the Bridge Loan as of the Closing Date (the “Cash Consideration”); and

 

(b)            Three
Million Seven Hundred and Fifty Thousand Dollars ($3,750,000) by way of an unsecured promissory note issued by JHI (the “Note
Consideration”), bearing an eight percent (8%) interest rate, with interest payable in cash quarterly and maturing forty-eight
(48) months from the date of issuance, at which time all principal and accrued but unpaid interest shall be due. The promissory
note shall be substantially in the form attached hereto as Exhibit A (the “Note”).

 

At least five (5) Business Days prior
to the Closing Date Seller shall provide Buyer with such account and other information as Buyer shall reasonably require in order
for Buyer to pay to Seller the Cash Consideration on the Closing Date.

 

    - 14 -

     

    

 

2.3.        Net
Working Capital Adjustment to Purchase Price at Closing.

 

(a)         At
least five (5) Business Days before the Closing Date, Seller shall prepare and deliver to Buyer a statement in the form attached
hereto as Exhibit B (a “Net Working Capital Statement”) setting forth Seller’s estimate of
the Net Working Capital of the Company as of the Closing Date (the “Estimated Closing Net Working Capital”),
which shall take into account the results of the Finished Goods Inventory Count (as defined below), include each component item
set forth on the Net Working Capital Statement and be prepared in accordance with GAAP applied on a basis consistent with past
practice of the Company. At least five (5) Business Days before the Closing Date, in connection with determining the Finished
Goods Inventory component of the Estimated Closing Net Working Capital, Buyer and Seller shall jointly conduct a physical count
of the Finished Goods Inventory of the Company, which amount shall be adjusted to reflect sales, the completion of Finished Goods
Inventory and other relevant transactions between the time of such physical count and the Closing Date using standard accounting
cutoff procedures, mutually agreed upon by Buyer and Seller, to arrive at a value which shall be deemed the Finished Goods Inventory
as of the Closing Date (“Finished Goods Inventory Count”).

 

(b)         The
 “Estimated Closing Adjustment Amount” shall be an amount equal to the Estimated Closing Net Working Capital
minus the Net Working Capital Target. If the Estimated Closing Adjustment Amount is a positive number (“Positive Closing
Net Working Capital Amount”), the Cash Consideration shall be increased on a dollar-for-dollar basis by the Positive
Closing Net Working Capital Amount. If the Estimated Closing Adjustment Amount is a negative number (“Negative Closing
Net Working Capital Amount”), the Cash Consideration shall be decreased on a dollar-for-dollar basis by the Negative
Closing Net Working Capital Amount

 

(c)         The
Parties acknowledge and agree that all Other Inventory shall not be considered for the purpose of determining the Estimated Closing
Net Working Capital or the Closing Net Working Capital, or in connection with any other adjustment to the Purchase Price. The Parties
further acknowledge and agree that all Other Inventory of the Company prior to the Closing Date shall remain with the Company after
the Closing Date at no cost or expense of any kind to Buyer, Jushi or any of their Affiliates.

 

2.4.        Company
Indebtedness; Transaction Expenses.

 

(a)         Company
Indebtedness. At least five (5) Business Days before the Closing Date Seller shall deliver to Buyer a schedule (the
 “Closing Indebtedness Schedule”) that contains a complete and accurate statement of the Company’s total
Indebtedness as of the Closing Date (the “Closing Indebtedness Amount”), excluding Permitted Accounts Payable
and the Post-Closing [***], together with wire transfer and other instructions for the payoff of such Indebtedness and payoff letters
from each lender of such Indebtedness (the “Debt Payoff Letters”) in form, scope and substance acceptable to
Buyer. On the Closing Date, Buyer may elect, in its sole discretion, to pay all or any of the Closing Indebtedness Amount reflected
on the Closing Indebtedness Schedule by wire transfers of immediately available funds to the holders of such Indebtedness. Notwithstanding
Buyer’s election to pay all or any of the Closing Indebtedness Amount to the holders of such Indebtedness on the Closing
Date, the Purchase Price shall be reduced by the Closing Indebtedness Amount, [***]. For the avoidance of doubt, [***] shall not
be Indebtedness of the Company for the purpose of determining the Closing Indebtedness Amount, and the [***] shall remain with,
and continue to be the responsibility of, the Company after the Closing Date. The Company shall pay all [***] prior to the Closing
Date. Any [***] remaining unpaid as of the Closing Date shall be included in the Closing Indebtedness Amount, and shall be equitably
prorated in the event any unpaid [***] relate to any period that begins before the Closing Date and ends after the Closing Date.
Any [***] that have been prepaid by the Company including, for the avoidance of doubt, that portion of any rental or other amounts
that apply to the month in which the Closing Date occurs, shall be added to the Purchase Price, and shall be equitably prorated
in the event any [***] that have been prepaid relate to any period that begins before the Closing Date and ends after the Closing
Date.

 

    - 15 -

     

    

 

(b)           Company
Transaction Expenses. At least five (5) Business Days before the Closing Date Seller shall deliver to Buyer a schedule
(the “Company Transaction Expense Schedule”) that contains a complete and accurate statement of the Company
Transaction Expenses, together with wire transfer instructions for the payment of all Company Transaction Expenses that will be
unpaid as of the Closing Date. On the Closing Date, Buyer shall (on behalf of the Company and Seller) pay the Company Transaction
Expenses in accordance with the payment instructions set forth in the Company Transaction Expense Schedule, and the Purchase Price
shall be reduced by the Company Transaction Expenses, with the Cash Consideration decreasing by [***]of the Company Transaction
Expenses.

 

2.5.          Reconciliation.

 

(a)            Buyer
shall, within one hundred and twenty (120) days after the Closing Date (the “Reconciliation Period”), verify
the actual Net Working Capital of the Company (the “Closing Net Working Capital”), the Closing Indebtedness
Amount and the Company Transaction Expenses (the “Reconciliation Items”) of the Company, in each case as of
the Closing Date, using the Financial Statements or such other financial or other documents as may be necessary or desirable in
the reasonable discretion of Buyer. Buyer shall, on or prior to the last day of the Reconciliation Period, provide Seller with
a statement (a “Reconciliation Statement”), which shall detail with reasonable specificity the actual value
of each of the Reconciliation Items as of the Closing Date. With respect to the determination of the actual value of the Net Working
Capital of the Company as of the Closing Date, any Finished Goods Inventory that was valued as part of the Estimated Closing Net
Working Capital which did not pass testing standards set forth by applicable Law, and is (i) subject to a destruction order
shall be valued at Zero Dollars ($0) or (ii) indefinitely quarantined as of the date Buyer presents Seller with the Reconciliation
Statement, shall be valued Buyer’s best estimate of its future sale value, discounted at [***] per annum.

 

(b)            Seller
shall have thirty (30) days (the “Review Period”) from the date it receives a Reconciliation Statement to review
such Reconciliation Statement and Buyer’s determination of the actual value of each of the Reconciliation Items as of the
Closing Date. During the Review Period, Seller (and its Representatives) will have such access to the books and records, employees
and auditors of the Company as Seller may reasonably request for the purpose of reviewing and analyzing the Reconciliation Statement
and to prepare a Statement of Objections (as hereafter defined), provided that such access shall be in a manner that does not unreasonably
interfere with the normal business operations of the Company, or Buyer.

 

    - 16 -

     

    

 

(c)            On
or prior to the last day of the Review Period, Seller may object to Buyer’s determination of the actual value of any of the
Reconciliation Items as of the Closing Date by delivering to Buyer a written statement (a “Statement of Objections”)
setting forth the disputed Reconciliation Items (each, a “Disputed Reconciliation Item”) and describing with
reasonable specificity the basis for Seller’s objection thereto. Any Reconciliation Item not expressly objected to by Seller
in a Statement of Objections prior to the expiration of the Review Period shall be deemed to have been accepted by Seller (each,
an “Accepted Reconciliation Item”). If Seller fails to deliver a Statement of Objections before the expiration
of the Review Period, all Reconciliation Items shall be deemed to be Accepted Reconciliation Items.

 

(d)            If
Seller delivers a Statement of Objections with respect to one or more Disputed Reconciliation Items before the expiration of the
Review Period, Seller and Buyer shall negotiate in good faith to resolve such objections within thirty (30) days after the delivery
of the Statement of Objections from Seller to Buyer (the “Resolution Period”), and, if all such objections are
so resolved within the Resolution Period, the Reconciliation Statement, with such changes as may have been agreed in writing by
Seller and Buyer, shall be final and binding on Seller and Buyer (and any other Person) for all purposes hereunder.

 

(e)            If
Seller and Buyer fail to reach an agreement with respect to all of the Disputed Reconciliation Items before expiration of the Resolution
Period, the remaining Disputed Reconciliation Items shall be submitted for resolution to an impartial nationally recognized firm
of independent certified public accountants as may be mutually selected by Buyer and Seller (the “Independent Accountant”);
provided that if the Buyer and Seller are unable to agree on an Independent Accountant within five (5) days following the
end of the Resolution Period, each shall, within two (2) days thereafter, select its own tax advisory firm, which together
shall select the Independent Accountant who, acting as experts and not arbitrators and shall not have any authority to interpret
any provision of this Agreement, shall resolve the issues underlying the Disputed Reconciliation Items only and make any corresponding
adjustments to the Reconciliation Statement. The Parties hereto agree that all adjustments shall be made without regard to materiality.
The decision of the Independent Accountant with respect to each Disputed Reconciliation Item must be within the range of values
assigned to each such item in the Reconciliation Statement and the Statement of Objections, respectively.

 

(f)            The
Independent Accountant shall make a determination as soon as practicable and in any event within thirty (30) days (or such other
time as the Parties hereto shall agree in writing) after its engagement, and its resolution of the Disputed Reconciliation Items
and its corresponding adjustments to the Reconciliation Statement shall be conclusive and binding on all parties (and any other
Person) for all purposes hereunder. Upon resolution of a Disputed Reconciliation Item by the Independent Accountant, such Disputed
Resolution Item shall thereafter be deemed to be an Accepted Reconciliation Item. Judgment on the determination of the Independent
Accountant may be entered by any court of competent jurisdiction.

 

(g)            The
fees and expenses of the Independent Accountant shall be paid fifty percent (50%) by Buyer and fifty percent (50%) by Seller. Notwithstanding
the foregoing, upon resolution of each Disputed Reconciliation Item, the Parties shall true-up all payments made to the Independent
Accountant such that each Parties has paid an amount inverse to the aggregate proportion by which the Independent Accountant resolves
each of the Disputed Reconciliation Items in favor of one Party or the other. By way of example, but not by way of limitation,
if the Disputed Reconciliation Items represent a total amount in controversy of Five Hundred Thousand Dollars ($500,000) to be
determined by the Independent Accountant and the Independent Accountant determines that Buyer prevails with respect to Four Hundred
Thousand Dollars ($400,000) in the aggregate and Seller prevails with respect to One Hundred Thousand Dollars ($100,000) in the
aggregate, then Buyer would pay twenty percent (20%) of the Independent Accountant’s fees and expenses and Seller would pay
eighty percent (80%) of the Independent Accountant’s fees and expenses.

 

    - 17 -

     

    

 

(h)             Upon
all Reconciliation Items becoming Accepted Reconciliation Items in accordance with this Section 2.5: (i) if it
is determined, on aggregate, that the Purchase Price paid by Buyer to Seller on the Closing Date was less than it should have been,
Buyer shall pay to Seller, in cash, the difference between the Purchase Price owed to Seller on the Closing Date as determined
in accordance with this Section 2.5 and the actual amount paid by Buyer to Seller on the Closing Date; and (ii) if
it is determined, on aggregate, that the Purchase Price paid by Buyer to Seller on the Closing Date was more than it should have
been, Seller shall pay to Buyer, in cash, the difference between the Purchase Price paid by Buyer to Seller on the Closing Date
and the actual amount owed to Seller on the Closing Date as determined in accordance with this Section 2.5. All payments
pursuant to this Section 2.5 shall be made within thirty (30) days of the date the last Reconciliation Item becomes
an Accepted Reconciliation Item.

 

2.6.            Transfer
Taxes. Notwithstanding Article 9, Seller, on the one hand, and Buyer, on the other hand, will each be responsible
for one-half of the payment of any and all Transfer Taxes associated with the transfer of the Company Interests and any deficiency,
interest or penalty with respect to such Taxes. The Parties will reasonably cooperate with respect to the preparation and filing
of all Tax Returns required to be filed in connection with any such Transfer Taxes. Seller will remit to Buyer (if Buyer is filing
a Tax Return relating to Transfer Taxes) or Buyer will remit to Seller (if Seller is filing a Tax Return relating to Transfer Taxes),
as the case may be), in immediately available funds, the amount of any Transfer Taxes owed by Seller or Buyer (as applicable) pursuant
to this Section 2.6 within five (5) Business Days of the non-filing party’s receipt from the filing party
of written notice of the amount of such Transfer Taxes due, a copy of the applicable Tax Return and the non-filing party’s
shares of the applicable Transfer Taxes.

 

2.7.            No
Effect on Other Rights. The determination and adjustment of the Purchase Price in accordance with the provisions of this Article 2
will not limit or affect any other rights or Claim either Buyer or Seller may have with respect to the representations, warranties,
covenants and indemnities in its favor contained in this Agreement.

 

2.8.            Withholding.
Buyer shall be entitled to deduct and withhold from any consideration payable to Seller pursuant to this Agreement all Taxes that
Buyer may be required to deduct and withhold under any provision of Tax or other Law. All such withheld amounts shall be treated
as delivered to Seller hereunder.

 

    - 18 -

     

    

 

ARTICLE 3

CLOSING

 

3.1.          Closing.
The closing of the Transaction (the “Closing”) will take place remotely via the electronic exchange of documents
and signatures as soon as practicable following the satisfaction or waiver of the applicable conditions set forth in Article 7,
or on such other date as Buyer and Seller may mutually determine in writing (the “Closing Date”). The Closing
will be deemed to have occurred at 12:01 a.m., Eastern Daylight Time, on the Closing Date.

 

3.2.          Deliveries
at Closing. At the Closing, (a) Seller will deliver to Buyer the various certificates, instruments, and documents referred
to in Section 7.1 below, (b) Buyer will pay to Seller the Purchase Price (as adjusted in accordance with the terms
hereof) and will deliver to Seller the various certificates, instruments, and documents referred to in Section 7.2
below.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

OF Seller AND THE COMPANY

 

Seller and the Company
represent and warrant to Buyer that the statements contained in this Article 4 are true, correct and complete as of
the Effective Date and will be true, correct and complete as of the Closing Date (as though made then and as though the Closing
Date were substituted for the Effective Date throughout this Article 4), except as set forth in the disclosure schedule
delivered by Seller to Buyer on the date hereof, which are attached hereto (the “Disclosure Schedules”).

 

4.1.          Organization
and Authority to Conduct Business.

 

(a)            Seller
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Seller is duly
qualified and in good standing in each jurisdiction where it is required to be qualified. Seller has full corporate power and authority
to conduct its business as it is presently being conducted and to own and lease its properties and assets.

 

(b)            The
Company is a limited liability company duly organized, validly existing and in good standing under the laws of the Commonwealth
of Pennsylvania. The Company is duly qualified and in good standing in each jurisdiction where it is required to be qualified.
The Company has full limited liability company power and authority to conduct its business as it is presently being conducted and
to own and lease its properties and assets.

 

4.2.           Power
and Authority; Binding Effect.

 

(a)            Seller
has all necessary power and authority and has taken all action necessary to authorize, execute and deliver this Agreement, to consummate
the Transaction, and to perform Seller’s obligations under this Agreement (except under Federal Cannabis Laws). This Agreement
has been duly executed and delivered by Seller and constitutes a legal (except under Federal Cannabis Laws), valid and binding
obligation of Seller enforceable against Seller in accordance with its terms, except as such enforcement may be limited by the
Enforceability Limitations and Federal Cannabis Laws.

 

    - 19 -

     

    

 

(b)            The
Company has all necessary power and authority and has taken all action necessary to authorize, execute and deliver this Agreement,
to consummate the Transaction, and to perform the Company’s obligations under this Agreement (except under Federal Cannabis
Laws). This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except as such enforcement may be limited by the Enforceability
Limitations and Federal Cannabis Laws.

 

4.3.          Equity
Information. Seller owns one hundred percent (100%) of the issued and outstanding Company Interests. The Company Interests
have been duly authorized and validly issued and have been issued in compliance with applicable securities Laws. The Company has
made available to Buyer true, correct and complete copies of the Company’s organizational documents as currently in effect.
The minute books of the Company contain true, complete and correct records in all material respects of all meetings and other material
limited liability company actions held or taken by members, managers or other governing bodies through the date hereof. All such
minute books of the Company have been made available to Buyer. There are no outstanding equity interests of the Company other than
the Company Interests. There are no outstanding convertible or exchangeable securities or options, warrants or other rights relating
to the equity interests of the Company (including, without limitation, any Company Interests). There are no agreements of any kind
relating to the issuance of any equity interests of the Company (including, without limitation, any Company Interests), or any
convertible or exchangeable securities or any options, warrants or other rights relating to the equity interests of the Company
(including, without limitation, any Company Interests).

 

4.4.          Title.

 

(a)            Seller
owns good title to the Company Interests, free and clear of all Encumbrances (other than Encumbrances arising under applicable
federal and state securities Laws or Pennsylvania Cannabis Laws, or as contemplated in this Agreement). Subject to compliance with
the Pennsylvania Cannabis Laws and satisfaction of all conditions precedent hereunder to transfer the Company Interests to Buyer
on the Closing Date, Seller has or will have on or before the Closing Date, the full and unrestricted power to sell, convey, assign,
transfer and deliver the Company Interests to Buyer on the Closing Date. Seller is not a party to any option, warrant, purchase
right or other contract or commitment that could (including upon the occurrence of any contingency or event) require Seller to
sell, transfer, convey, assign, deliver or otherwise dispose of any of the Company Interests or any interest therein, other than
pursuant to this Agreement or at Closing. Other than pursuant to this Agreement, Seller is not a Party to any voting trust, proxy
or other agreement or understanding with respect to Seller’s ownership, voting or transfer of, or otherwise related to, the
Company Interests that Seller owns. Upon delivery to Buyer of certificates for the Company Interests at the Closing, if certificated,
or otherwise upon consummation of the Transaction, Buyer will acquire good, valid and marketable title to the Company Interests,
free and clear of all Encumbrances (other than Encumbrances arising under applicable federal and state securities Law, the Pennsylvania
Cannabis Laws or as contemplated in this Agreement).

 

    - 20 -

     

    

 

(b)           Except
as set forth on Schedule 4.4(b) of the Disclosure Schedules and except for Permitted Encumbrances, the Company has
good title to all of its assets, free and clear of all Encumbrances.

 

4.5.          No
Conflict or Violation. The execution and delivery of this Agreement, the consummation of the Transaction, and the fulfillment
of the terms of this Agreement, do not and will not result in or constitute: (a) a violation of or conflict with any provision
of the organizational or other governing documents of Seller or the Company, (b) except as set forth on Schedule 4.5
of the Disclosure Schedules, a breach of, a loss of rights under, or an event, occurrence, condition or act which is or, with the
giving of notice or the lapse of time, would become, a material default under, or result in the acceleration of any obligations
under, any term or provision of, any Material Contract or multiple Minor Contracts, which in the aggregate cause: (i) a Material
Adverse Effect with respect to the Company; or (ii) a Material Adverse Effect with respect to Seller’s ability to consummate
the Transaction, or any license, franchise, permit or authorization to which Seller or the Company is a party, (c) subject
to compliance with the Pennsylvania Cannabis Laws and satisfaction of all conditions precedent hereunder to transfer the Company
Interests to Buyer on the Closing Date, a violation by Seller or the Company of any Law (except for Federal Cannabis Laws) or (d) an
imposition of any Encumbrance (other than a Permitted Encumbrance) on any of the Company Interests or any of the assets of the
Company.

 

4.6.          Consents
and Approvals. Except as otherwise set forth on Schedule 4.6 of the Disclosure Schedules and subject to compliance
with the Pennsylvania Cannabis Laws and satisfaction of all conditions precedent hereunder to transfer the Company Interests to
Buyer on the Closing Date, no consent, approval or authorization of, or declaration, filing or registration with, any Person is
required to be made or obtained by the Company in connection with the execution, delivery and performance of this Agreement and
the consummation of the Transaction or will be necessary to ensure the continuing validity and effectiveness immediately following
the Closing of any Permit or Material Contract of the Company, as applicable.

 

4.7.          No
Actions.

 

(a)           With
respect to Seller, there is no Claim pending or threatened against, relating to or affecting in any adverse manner, the Transaction.

 

(b)           With
respect to the Company, there is no Claim pending or threatened against, relating to or affecting in any adverse manner, the Transaction.

 

    - 21 -

     

    

 

4.8.          Financial
Statements; Unknown Liabilities.

 

(a)            The
Company’s Financial Statements are set forth on Schedule 4.8(a) of the Disclosure Schedules. The Financial Statements
fairly present the financial condition and the results of operations of the Company as of their respective dates and for the periods
then ended in accordance with GAAP applied on a consistent basis, subject to, in the case of any unaudited Financial Statements,
normal year-end adjustments. The books and records of the Company from which the Financial Statements were prepared fairly reflect
the assets, liabilities and operations of the Company in all material respects, and the Financial Statements are in conformity
therewith in all material respects.

 

(b)            Except
as disclosed in Schedule 4.8(b) of the Disclosure Schedules, there are no material liabilities or obligations
of any nature, whether absolute, accrued, contingent, known, unknown, matured, unmatured or otherwise, which would have been required
to be disclosed or provided for in the Financial Statements, except (i) Liabilities reflected in or reserved against the Financial
Statements as of April 30, 2020 and (ii) Liabilities incurred between May 1, 2020 and the Closing Date in the Ordinary
Course of Business of the Company (none of which results from, arises out of or relates to any breach of contract, breach of warranty,
tort, infringement or violation of Law (except for Federal Cannabis Laws)). Except as disclosed in Schedule 4.8(b) of
the Disclosure Schedules, the Company has no Indebtedness.

 

4.9.          Taxes.

 

(a)            Except
as set forth on Schedule 4.9(a) of the Disclosure Schedules, (i) the Company has duly and timely filed all
income Tax Returns and all other material Tax Returns that the Company was required to file, (ii) all such Tax Returns are
true, correct and complete in all material respects (including without limitation in full compliance with Section 280E of
the Code), (iii) all Taxes required to have been withheld and paid by the Company in connection with amounts paid or owing
to any employee, independent contractor, creditor, member or other third party have been properly withheld and paid, and all Forms
W-2 and 1099 (or similar Tax Return) required with respect thereto have been properly completed and filed by the Company, (iv) all
Taxes required to have been paid by the Company (whether or not shown on any Tax Return) have been paid (and such Taxes have been
paid consistent with Section 280E of the Code), (v) the Company is not currently the beneficiary of any extension of
time within which to file any Tax Return, (vi) no written notice has been received by the Company and no claim has been made
within the past five (5) years by any Governmental Authority in any jurisdiction where the Company does not file Tax Returns
that it is or may be subject to taxation by that jurisdiction, (vii) there is no dispute or claim concerning any Tax liability
of the Company either claimed or raised by any Governmental Authority in writing and (viii) the Company has not waived any
Tax related statute of limitations which period (after giving effect to such waiver) has not yet expired.

 

(b)            The
Company is not bound by or has any obligation under or potential liability with respect to any Tax allocation, Tax sharing or Tax
indemnification agreement or similar Contract or arrangement. The Company does not have any liability for Taxes of any other Person
under the Code or any provisions of any Law, as a transferee or successor, or by any Contract which deals primarily with Taxes.
There are no Encumbrances for Taxes (other than Permitted Encumbrances), upon the assets of the Company or upon any Company Interests.

 

    - 22 -

     

    

 

(c)            The
Company has not been a United States real property holding corporation within the meaning of Section 897(c)(2) of the
Code during the applicable period specified in Section 897(c)(l)(A)(ii) of the Code.

 

(d)            At
all times since the date of its organization, (i) the Company has been classified under Treasury Regulation Section 301.7701-2(a) as
either a partnership or a disregarded entity for federal and state income Tax purposes, (ii) the Company has not been a member
of an affiliated group (as defined in Section 1504(a) of the Code or corresponding provision of state, local or non-U.S.
Tax Law) or filed or been included in a consolidated, combined or unitary federal or state income Tax Return (other than a consolidated,
combined or unitary Tax Return of which the Company was the common parent), and (iii) the Company has not had any Liability
for the Taxes of any other Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or
non-U.S. Tax Law), as a transferee or successor, by contract or otherwise.

 

(e)            The
Company will not be required to include any amount in, or exclude any item of deduction from, income for any Tax period ending
after the Closing Date as a result of a change in accounting method made in any Pre-Closing Tax Period with respect to any such
Pre-Closing Tax Period. Except as set forth in Schedule 4.9(e) of the Disclosure Schedules, the Company will not be
required to include in any Tax period or portion thereof after the Closing Date any item of income that accrued in a Pre-Closing
Tax Period but was not recognized in any Pre-Closing Tax Period as a result of the installment method of accounting, the completed
contract method of accounting, the long-term contract method of accounting, the cash method of accounting, a change in method of
accounting for a taxable period ending on or before the Closing Date, use of any improper method of accounting for a taxable period
ending on or before the Closing Date, an election under Section 108(i) of the Code, or a “closing agreement”
as described in Section 7121 of the Code (or any corresponding provision of state, local, or non-U.S. Tax Law) executed on
or before the Closing Date.

 

(f)            The
Company has not consummated or participated in, or is currently participating in, any transaction which was or is a “Tax
shelter,” “listed transaction” or “reportable transaction” as defined in Sections 6662, 6662A, 6011,
6111 or 6707A of the Code or the Treasury Regulations promulgated thereunder, including, but not limited to, transactions identified
by the IRS by notice, regulation or other form of published guidance as set forth in Treasury Regulation § 1.6011-4(b)(2).

 

(g)           Schedule
4.9(g) of the Disclosure Schedules lists all material Tax holidays, abatements, exemptions, incentives and similar grants
made or awarded to the Company by any Tax authority or other Governmental Authority, and the Company has complied, in all material
respects, with all terms and conditions related thereto, does not have any outstanding Tax liabilities thereunder and will not
incur any liabilities thereunder as a result of the transactions contemplated by this Agreement.

 

(h)            The
Company is not a party to or bound by any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement or similar contract.

 

    - 23 -

     

    

 

(i)            The
Company does not have, nor has it ever had, a permanent establishment in any country outside the United States, nor has any of
them been subject to Tax in a jurisdiction outside the United States. The Company has not entered into a gain recognition agreement
pursuant to Treasury Regulation Section 1.367(a)-8. The Company has not transferred an intangible, the transfer of which would
be subject to the rules of Section 367(d) of the Code.

 

4.10.        Real
Property.

 

(a)            The
Company does not currently own any fee or other ownership interest in any Real Property. Schedule 4.10(a) of the Disclosure
Schedules lists the street address of each parcel of Real Property leased by the Company (the “Leased Real Property”),
and a list, as of the Effective Date, of all leases for each parcel of Leased Real Property (collectively, “Leases”),
including the identification of the lessee and lessor thereunder. The Company has made available to Buyer true, accurate and complete
copies of all Leases, any reciprocal easement agreements, declarations of restrictive covenants, utility contracts, roof warranties,
shopping center association or co-op agreements and all other agreements that could impose material obligations on the tenant under
any Lease (including all amendments, extensions and renewals with respect thereto).

 

(b)            Except
as set forth on Schedule 4.10(b) of the Disclosure Schedules and landlord rights to entry under the Leases, (i) the
Company has peaceful and undisturbed possession of any Real Property it leases, (ii) the Company has not assigned (collaterally
or otherwise) or granted any other security interest in the Leases or any interest therein, and there are no liens on the estate
or interest created by the Leases, other than Permitted Encumbrances, (iii) to the Knowledge of the Company, none of the Real
Property is subject to any commitment for sale, and the Company has not made any commitment for use of the Real Property by any
Person other than the Company, (iv) none of the Real Property is subject to any Encumbrance which in any material respect
interferes with or impairs the value, transferability or present and continued use thereof in the usual and normal conduct of the
Business, (v) the use of the Real Property by the Company is in compliance with all applicable zoning, subdivision and other
applicable land use ordinances, and all existing covenants, conditions, restrictions and easements, and the current use of the
Real Property does not constitute a non-conforming use under the applicable zoning ordinances, and (vi) no material default
or breach exists with respect to, and the Company has not received any written notice of any material default or breach under,
any agreement or Encumbrance affecting any of the Real Property. The Company has no Knowledge of any condemnation or eminent domain
proceedings pending, contemplated or threatened, against the Real Property or any part thereof. The Company has no Knowledge of
any existing or threatened, general or special assessments affecting the Real Property or any portion thereof. The Company has
not received written notice of, nor does the Company have Knowledge of, any pending or threatened action, suit, claim, investigation
or other legal proceeding (including, without limitation, condemnation or eminent domain proceeding) before any Governmental Authority
which relates to the ownership, maintenance, use or operation of the Real Property, nor does the Company have Knowledge of any
type of existing or intended use of any real property adjacent to the Real Property which might materially adversely affect the
use of the Real Property. To the Knowledge of the Company, except as set forth on Schedule 4.10(b) of the Disclosure
Schedules, none of the Real Property is located within any area determined to be flood prone under the Federal Flood Protection
Act of 1973, or any comparable state or local Law. The Company has not received any written notice from any insurance company of
any defects or inadequacies in the Real Property or any part thereof which would materially and adversely affect the insurability
of the Real Property or the premiums for the insurance thereof, and no written notice has been given to the Company by any insurance
company which has issued a policy with respect to any portion of the Real Property or by any board of fire underwriters (or other
body exercising similar functions) requesting the performance of any repairs, alterations or other work which has not been complied
with. To the Knowledge of the Company, all water, sewer, gas, electric, telephone and drainage facilities and all other utilities
required by Law or for the current use and operation of the Real Property are installed to the improvements situated on the Real
Property, are connected pursuant to valid Permits, enter the Real Property through adjoining public streets or rights of way and
are otherwise adequate for the present operation of the Business by the Company and in compliance in all material respects with
all Law applicable thereto. Except as set forth on Schedule 4.10(b) of the Disclosure Schedules, access to and from
the Real Property is via public streets, which streets are sufficient for the present operation of the Business by the Company.
To the Knowledge of the Company, the buildings and improvements on the Real Property (including the heating, air conditioning,
mechanical, electrical and other systems used in connection therewith) are in a reasonable state of repair, have been maintained
and are free from infestation by termites, other wood destroying insects, vermin and other pests. There are no repairs or replacements
for any parcel of Real Property exceeding $25,000 for any single repair or replacement which are currently contemplated by the
Company, or which, to the Knowledge of the Company, should be made in order to maintain said buildings and improvements in a reasonable
state of repair.

 

    - 24 -

     

    

 

(c)           With
respect to [***], the entire balance of the security deposit as set forth in the [***]is in the possession of Landlord or its Affiliates
and has not been drawn upon by Landlord or its Affiliates for any reason.

 

4.11.        Tangible
Personal Property.

 

(a)           Schedule
4.11(a) of the Disclosure Schedules sets forth (i) a list of each item of Owned Tangible Personal Property having
a book value of more than $5,000, and (ii) a list of each item of Tangible Personal Property leased by the Company, in each
case, exclusive of the motor vehicles separately scheduled in subparagraph (c) below. Except as set forth on Schedule 4.11(a) of
the Disclosure Schedules, the Owned Tangible Personal Property is free and clear of any Encumbrances (other than Permitted Encumbrances).
Except as set forth on Schedule 4.11(a) of the Disclosure Schedules, all of the Tangible Personal Property is
primarily located at the Real Property.

 

(b)           Except
as set forth on Schedule 4.11(b) of the Disclosure Schedules, the Tangible Personal Property is, taken as a whole,
in reasonable working order and adequate for its designed use, subject to ordinary wear and tear and normal repairs and replacements.

 

(c)           Schedule
4.11(c) of the Disclosure Schedules sets forth a list of all motor vehicles owned or leased by the Company as of the date
hereof, including the name of the Person that owns any such leased vehicle, the model year and the corresponding serial or identification
number, if any.

 

    - 25 -

     

    

 

4.12.        Intellectual
Property.

 

(a)           Schedule
4.12(a) of the Disclosure Schedules sets forth a list of: (i) all patents, patent applications, trademark applications
and trademark registrations owned by the Company; (ii) all patents, patent applications, trademark applications and trademark
registrations licensed to the Company by a third party; and (iii) all licenses pursuant to which any material Intellectual
Property of the Company is licensed or sublicensed to or from any Person (other than commercially available third party shrink-wrap
or click-through end-user license agreements). The Company has not received written notice from any third party regarding any assertion
or claim challenging the validity of any Intellectual Property used in the Business; and the Company has not received written notice
from any third party regarding any actual or potential infringement by the Company of any Intellectual Property of any third party.

 

(b)            (i) There
is no Intellectual Property necessary to, or used in, the Business other than the Intellectual Property owned by or licensed to
the Company, (ii) except as set forth on Schedule 4.12(b) of the Disclosure Schedules, each item of Intellectual
Property owned or used by the Company immediately prior to the Closing Date will be owned or available for use by the Company on
substantially similar terms and conditions immediately subsequent to the Closing Date, and (iii) the Company has taken reasonable
commercial actions to maintain and protect each item of Intellectual Property.

 

4.13.        Compliance
with Laws and Permits.

 

(a)            Except
as set forth on Schedule 4.13(a) of the Disclosure Schedules, Seller and the Company have complied with and are
currently in compliance with all applicable Laws and Permits, except the Federal Cannabis Laws. The Company has at all times, and
currently is, conducting the Business in compliance with all applicable Laws and Permits, except the Federal Cannabis Laws.

 

(b)            The
Company has used best efforts to ensure that the Company does not: (i) distribute marijuana to minors; (ii) direct revenue
from the sale of marijuana to criminal enterprises, gangs, and cartels, or otherwise have any involvement with such groups; (iii) divert
marijuana from states where it is legal under state Law in some form to other states; (iv) use state-authorized marijuana
activity as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (v) use violence or firearms
in the cultivation and distribution of marijuana; (vi) contribute to drugged driving and the exacerbation of other adverse
public health consequences associated with marijuana use; (vii) grow or possess marijuana on public lands; or (viii) promote
marijuana possession or use on federal property.

 

(c)            The
Company operates the Business only in the Commonwealth of Pennsylvania. The Company is in compliance in all material respects with
all applicable state and local Laws and regulatory systems controlling the cultivation, harvesting, production, handling, storage,
distribution, sale, and possession of cannabis. The Company does not import or export cannabis products from or to any other state
or foreign country.

 

    - 26 -

     

    

 

(d)            Except
as set forth on Schedule 4.13(d) of the Disclosure Schedules, the Company has never received any written notice
from any Governmental Authority to the effect that, or has otherwise been advised that, the Company is not in compliance in all
material respects with any applicable Law, and to the Knowledge of the Company there are no presently existing facts, circumstances
or events which, with notice or lapse of time, would result in a material violation of any applicable Law or Permit.

 

(e)            Schedule 4.13(e) of
the Disclosure Schedules identifies all material Permits issued to the Company and currently in effect. Except as set forth on
Schedule 4.13(e) of the Disclosure Schedules, the Permits held by the Company constitute all permits, consents,
licenses, franchises, authorizations and approvals of the Company used in the operation of and necessary to conduct the Business
as currently conducted. All of the Permits held by the Company are valid and in full force and effect, no violations have been
experienced, noted or recorded and no Claim is pending or, to the Knowledge of the Company, threatened to revoke or limit any of
the Permits held by the Company.

 

(f)            The
Company (i) holds a valid Medical Marijuana Grower/Processor Permit (GP-2018-17) issued by the DOH as of the Effective Date
(the “GP Permit”), (ii) will continue to hold the GP Permit through the Closing Date, (iii) has not
received notice of any violation from the DOH, nor, to the Company’s Knowledge, does it have any reason to believe any violations
have occurred, relating to the GP Permit or the Company’s activities thereunder, and (iv) is in compliance with all
terms and conditions of the GP Permit, including any plan of correction approved by a Governmental Authority (including, without
limitation, the DOH). No Claim is pending or, to the Knowledge of the Company, threatened to revoke or limit the GP Permit held
by the Company.

 

(g)            The
Company has duly and timely filed and complied in all material respects with all applicable Laws relating to reports, certifications,
declarations, principal, employee, operator, owner and/or financial backer (as those terms are defined in and by the Pennsylvania
Cannabis Laws) disclosures, statements, information or other filings submitted or to be submitted to any Governmental Authority,
except to the extent the failure to file or timely file would not have a Material Adverse Effect, and all such submissions or filings
were true and complete when submitted or filed and, to the extent required by an applicable Laws, have been updated properly and
completely in all material respects.

 

(h)            Neither
Seller, the Company, any of their predecessors, successors or Affiliates, any of their respective Representatives or any other
Person acting or purporting to act on behalf of any of the foregoing has directly or indirectly: (i) given or agreed to give
any bribe, kickback, political contribution or other illegal payment from corporate funds, (ii) used any of its funds for
any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (iii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from its funds; (iv) violated or is
in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977; (v) established or maintained any unrecorded
fund or asset, (vi) concealed or mischaracterized an illegal or unauthorized payment or receipt, (vii) knowingly made
a false entry in the business records or (viii) committed or participated in any act which is illegal or, to the Knowledge
of the Company, would reasonably be expected to subject the Company to material fines, penalties or sanctions.

 

    - 27 -

     

    

 

4.14.        Litigation.
Except as set forth on Schedule 4.14 of the Disclosure Schedules, there is no Claim pending or, to the Knowledge of the
Company, currently threatened which is, (a) a Claim involving the Company, any of its Representatives, or the properties,
assets or business of any of the foregoing, (b) a Claim involving Seller or its Affiliates (other than the Company) that could
reasonably be expected to have a Material Adverse Effect on Seller’s ability to consummate the Transaction, or (c) a
Claim arising from, relating to, or in connection with, the Business.

 

4.15.        Labor
Matters.

 

(a)           Schedule 4.15(a) of
the Disclosure Schedules identifies, for each current employee of the Company (including any employee who is on a leave of absence
of any nature, paid or unpaid, authorized or unauthorized), his or her name, position or job title, hire date, and current base
compensation. Except as set forth on Schedule 4.15(a) of the Disclosure Schedules: (i) the Company has no
obligations under any written or oral labor agreement, collective bargaining agreement or other agreement with any labor organization
or employee group, excepting the collective bargaining agreement described in Schedule 4.15(d), (ii) the Company is not currently
engaged in any unfair labor practice and there is no unfair labor practice charge or other employee-related or employment-related
complaint against the Company pending or, to the Knowledge of the Company, threatened before any Governmental Authority, (iii) there
is currently no labor strike, labor disturbance, slowdown, work stoppage or other material labor dispute or arbitration pending
or, to the Knowledge of the Company, threatened against the Company and no material grievance is currently being asserted by any
employee of the Company, (iv) the Company has not experienced a labor strike, labor disturbance, slowdown, work stoppage or
other material labor dispute at any time during the three (3) years immediately preceding the Effective Date and (v) there
is no organizational campaign being conducted or, to the Knowledge of the Company, contemplated and there is no pending or, to
the Knowledge of the Company, threatened petition before any Governmental Authority or other dispute as to the representation of
any employees of the Company.

 

(b)            Except
as set forth on Schedule 4.15(b) of the Disclosure Schedules, during the ninety (90) days preceding the Effective Date
the Company has not terminated the employment of any employee.

 

(c)            As
of the date hereof, all compensation, including wages, commissions and bonuses, payable to all employees, independent contractors
or consultants of the Company for services performed have been paid in full and there are no outstanding agreements, understandings
or commitments of the Company with respect to any compensation, commissions or bonuses.

 

    - 28 -

     

    

 

(d)           Schedule
4.15(d) of the Disclosure Schedules contains a true, correct, and complete list of each collective bargaining agreement
or other Contract with a union, association, works council or labor organization to which the Company is a party. There have not
been since [***] and there are not pending or threatened any labor disputes, work stoppages, requests for representation, pickets,
work slow-downs due to labor disagreements or any actions or arbitrations which involve the labor or employment relations of the
Company. There is no unfair labor practice, charge or complaint pending, unresolved or, to Company’s Knowledge, threatened
before the National Labor Relations Board. No event has occurred or circumstance exist that may provide the basis of any contractual
labor dispute.

 

(e)            Schedule
4.15(e) of the Disclosure Schedules identifies all independent contractors of the Company as of the date hereof and the
name, hire date, base compensation, bonuses and other benefits of each such independent contractor. All individuals characterized
and treated by the Company as independent contractors or consultants are properly treated as independent contractors under all
applicable Laws. All employees of the Company classified as exempt under the Fair Labor Standards Act and state and local wage
and hour laws are properly classified. There are no Claims against the Company pending, or to the Company’s Knowledge, threatened
to be brought or filed, by or with any Governmental Authority or arbitrator in connection with the employment of any current or
former applicant, employee, consultant, volunteer, intern, or independent contractor of the Company, including any claim relating
to unfair labor practices, employment discrimination, harassment, retaliation, equal pay, wage and hours or any other employment
related matter arising under applicable Laws.

 

(f)            Except
as set forth on Schedule 4.15(f) of the Disclosure Schedules the Company has complied in all material respects with
each, and is not in violation of any, Law relating to anti-discrimination and equal employment opportunities and there are, and
have been, no material violations of any other Law respecting the hiring, hours, wages, occupational safety and health, employment,
promotion, termination or benefits of any employee or other Person. The Company has filed and/or posted all reports, information
and notices required under any Law respecting the hiring, hours, wages, occupational safety and health, employment, promotion,
termination or benefits of any employee or other Person, and will timely file prior to Closing all such reports, information and
notices required by any Law to be given prior to Closing.

 

(g)            The
Company has paid or properly accrued in the ordinary course of business all wages and compensation due to employees, including
all vacations or vacation pay, holidays or holiday pay, sick days or sick pay, and bonuses.

 

(h)            The
Company is not a party to any Contract which restricts the Company from relocating, closing or terminating any of its operations
or facilities or any portion thereof. The Company has not since January 1, 2019 effectuated a “plant closing”
(as defined in the WARN Act) or (ii) a “mass lay-off” (as defined in the WARN Act), in either case affecting any
site of employment or facility of the Company, except in accordance with the WARN Act. The consummation of the transaction hereunder
will not create liability for any act by Sellers or the Company on or prior to the Closing under the WARN Act or any other Law
respecting reductions in force or the impact on employees on plant closings or sales of businesses.

 

    - 29 -

     

    

 

(i)            The
Company has complied and is in compliance in all material respects, with the requirements of the Immigration Reform and Control
Act of 1986. Except as set forth on Schedule 4.15(i) of the Disclosure Schedules, all employees of the Company who
are performing services for the Company in the United States are legally able to work in the United States and will be able to
continue to work in the United States following the consummation of the Transaction.

 

4.16.        Employee
Benefit Plans.

 

(a)           Schedule
4.16(a) of the Disclosure Schedules sets forth a list identifying each Employee Pension Benefit Plan including Multiemployer
Plans that the Company has sponsored, or to which the Company has contributed or undertaken the obligation to contribute (the “Pension
Plans”). Except as set forth on Schedule 4.16(a) of the Disclosure Schedules, neither the Company nor any
of its respective ERISA Affiliates has sponsored or contributed to or been required to contribute to the Pension Plans.

 

(b)           Schedule
4.16(b) of the Disclosure Schedules sets forth a list identifying each Employee Welfare Benefit Plan including Multiemployer
Plans relating to employee health and welfare benefits that the Company has sponsored, or to which the Company has contributed
or undertaken the obligation to contribute (the “Welfare Plans”).

 

(c)            With
respect to each Employee Benefit Plan, the Company has delivered or has made available to Buyer complete copies, if applicable,
of (i) all plan documents (or, if not written, a summary of material plan terms), including, trust agreement, insurance contracts
or other funding vehicles and all amendments thereto, and (ii) all summaries and summary plan descriptions, including any
summary of material modifications.

 

(d)            There
has been no amendment to, written interpretation or announcement (whether or not written) by the Company relating to, or change
in employee participation or coverage under, any Employee Benefit Plan that would increase materially the expense of maintaining
such Employee Benefit Plan above the level of expense incurred in respect of such Employee Benefit Plan for the most recent plan
year with respect to Employee Benefit Plans, excepting only rate increases that were effective on April 1, 2020, as set forth
on Schedule 4.16(d) of the Disclosure Schedules.

 

(e)            Each
Employee Benefit Plan has been maintained in material compliance with its terms and the requirements prescribed by any and all
statutes, orders, rules and regulations, including but not limited to, ERISA and the Code, which are applicable to such Employee
Benefit Plan.

 

(f)            With
respect to each Employee Benefit Plan, there are no pending or, to the Knowledge of the Company, threatened (i) Claims by
any employees, former employees or plan participants or the beneficiaries, spouses or representatives of any of them, other than
ordinary and usual claims for benefits by participants or beneficiaries, or (ii) Claims by any Governmental Authority.

 

    - 30 -

     

    

 

(g)            No
Welfare Plan provides benefits, including, without limitation, any severance or other post-employment benefit, salary continuation,
termination, death, disability, or health or medical benefits (whether or not insured), life insurance or similar benefit with
respect to current or former employees (or their spouses or dependents) of the Company beyond their retirement or other termination
of service other than (i) coverage mandated by applicable Law, (ii) disability insurance benefits payable in connection
with an appropriate claim, and (iii) benefits, the full cost of which is borne by the current or former employee (or his or
her beneficiary).

 

(h)            The
Company has complied with, and satisfied, the requirements of COBRA with respect to each Welfare Plan that is subject to the requirements
of COBRA. Each Welfare Plan which is a group health plan, within the meaning of Section 9832(a) of the Code, has complied
with and satisfied the applicable requirements of Sections 9801 and 9802 of the Code.

 

(i)            Schedule
4.16(i) of the Disclosure Schedules contains a list identifying each employment, severance or similar contract, arrangement
or policy and each plan or arrangement providing for insurance coverage (including any self-insured arrangements), workers’
compensation, disability benefits, supplemental employment benefits, vacation benefits, retirement benefits, deferred compensation,
bonuses, profit-sharing, stock options, stock appreciation rights or other forms of incentive compensation or post-retirement compensation
or benefit which (i) is not an Welfare Plan or a Pension Plan and (ii) has been entered into or maintained, as the case
may be, by the Company and any employee or former employee of the Company. Such contracts, plans and arrangements are referred
to collectively as the “Benefit Arrangements.” True and complete copies or descriptions of the Benefit Arrangements
have been made available to Buyer. Each Benefit Arrangement has been maintained in material compliance with the requirements prescribed
by any and all statutes, orders, rules and regulations which are applicable to such Benefit Arrangements.

 

(j)            No
payment or benefit provided pursuant to any agreement, between the Company and any “service provider” (as such term
is defined in Section 409A of the Code and the Treasury Regulations and Internal Revenue Service guidance thereunder), will
or may provide for the deferral of compensation subject to Section 409A of the Code that is not in compliance with Section 409A
of the Code.  Each stock option and stock appreciation right, if any, was granted with an exercise price that was not less
than the fair market value of the underlying common stock on the date the option or right was granted based upon a reasonable valuation
method.  The execution and delivery of this Agreement and the consummation of the Transaction will not (either alone or upon
the occurrence of any additional or subsequent events) constitute an event under any agreement that will or may result in any payment
of deferred compensation which will not be in compliance with Section 409A of the Code if timely paid in accordance with the
terms of the agreement.

 

(k)            There
is no contract, agreement, plan or arrangement covering any employee or former employee of the Company that, individually or in
aggregate, could give rise to the payment by the Company, directly or indirectly, of any amount that would not be deductible pursuant
to the terms of Section 280G of the Code.

 

    - 31 -

     

    

 

 

(l)              The
Company is not a party to, or otherwise obligated under, any Employee Benefit Plan or other agreement, that provides for a gross-up,
make-whole or other additional payment with respect to any Taxes, including those imposed by Sections 409A and 4999 of the Code.

 

(m)           [Reserved]

 

(n)            The
Company and each applicable Employee Benefit Plan and Benefit Arrangement are in compliance in all material respects with the Patient
Protection and Affordable Care Act, including compliance with all filing and reporting requirements, all waiting periods and the
offering of affordable health insurance coverage compliant with the Patient Protection and Affordable Care Act to all employees
and consultants who meet the definition of a full time employee under the Patient Protection and Affordable Care Act. No excise
tax or penalty under the Patient Protection and Affordable Care Act is outstanding, has accrued, or will become due with respect
to any period prior to the Closing.

 

(o)            Except
as set forth on Schedule 4.16(o) of the Disclosure Schedules, neither Buyer nor any of its Affiliates (including the
Company upon consummation of this Transaction) will have any Liability for any Employment Benefit Plan or Benefit Arrangement after
Closing.

 

4.17.         Transactions
with Certain Persons. Except as set forth on Schedule 4.17 of the Disclosure Schedules, the Company is not a party to
any Related Party Agreements. Except as set forth on Schedule 4.17 of the Disclosure Schedules, neither Seller, its Affiliates
(not including the Company), nor Seller’s, its Affiliates’ or the Company’s respective Representatives own any
asset, tangible or intangible, that is used in the Business.

 

4.18.         Insurance.
Schedule 4.18 of the Disclosure Schedules contains a complete and accurate list of all current policies or binders
of Insurance (showing as to each policy or binder the carrier, policy number and a general description of the type of coverage
provided) maintained by the Company and relating to the Business and/or its properties, assets, operations and personnel. Except
as set forth on Schedule 4.18 of the Disclosure Schedules, all of the Insurance is “occurrence” based insurance.
Subject to the Enforceability Limitations, the Insurance is in full force and effect and sufficient for compliance in all material
respects with all requirements of applicable Law and of all contracts to which the Company is a party. The Company is not in material
default under any of the Insurance, and the Company has not failed to give any notice or to present any claim under any of the
Insurance in a timely manner. No notice of cancellation, termination, reduction in coverage or material increase in premium (other
than reductions in coverage or increases in premiums in the Ordinary Course of Business) has been received with respect to any
of the Insurance, and all premiums with respect to any of the Insurance have been paid. Except as disclosed on Schedule 4.18
of the Disclosure Schedules, the Company has not experienced claims in excess of current coverage of the Insurance. Except as disclosed
on Schedule 4.18 of the Disclosure Schedules, there will be no material retrospective insurance premiums or charges
or any other similar adjustment on or with respect to any of the Insurance for any period or occurrence through the Closing Date.

 

    	 	- 32 -	 

     

    

 

4.19.         Inventory;
No Product Recalls. Except as set forth on Schedule 4.19 of the Disclosure Schedules, (i) all of the Inventory
is owned by the Company, as applicable, free and clear of any Encumbrances (other than Permitted Encumbrances) and is located at
the Real Property, (ii) no material amount of the Inventory is on consignment, (iii) the Inventory as reflected in the
Financial Statements has been valued in a manner consistent with past practices and procedures and in accordance with GAAP, and
(iv) all Finished Goods Inventory used to calculate the Estimated Closing Net Working Capital of the Company shall be of material
similar quality to the Finished Goods Inventory sold by the Company prior to the Closing Date in the Ordinary Course of Business.
The levels of the Inventories are consistent in all material respects with the level of Inventories that have been maintained by
the Company before the Effective Date in the Ordinary Course of Business and consistent with past practices in light of seasonal
adjustments, market fluctuations and the requirements of customers of the Business. All Inventory produced by the Company or its
respective Affiliates was cultivated, harvested, produced, tested, handled and delivered in accordance with all applicable Law
(except for the Federal Cannabis Laws). The Company has not used any substance, including but not limited to pesticides, prohibited
by Laws applicable in the states and localities in which the operates in any prohibited amount at any stage of the cultivation,
harvesting, handling, storage or delivery of Inventory. The Company has performed (or caused to be performed by third parties)
all tests and obtained all test certificates and certificates of ingredients required by applicable Law or industry practice, including
but not limited to tests for microbials, contaminants, residuals, and pesticides. All Inventory sold by the Company has been produced,
packaged and labelled in accordance with all applicable Laws in all respects and are fit for human consumption, not adulterated
or misbranded and free of any defects. Except as set forth on Schedule 4.19 of the Disclosure Schedules, the Company
has not sold, transferred or assigned any Other Inventory to any Person or removed any Other Inventory from the [***]prior to the
Effective Date. No recalls or withdrawals of products distributed or sold by the Company have been required or suggested by Governmental
Authority and, to the Knowledge of the Company, no facts or circumstances exist that could reasonably be expected to result in
any such recall or withdrawal.

 

4.20.         Accounts
Receivable. All of the Accounts Receivable of the Company are bona fide receivables, are reflected on the books and records
of the Company and arose in the Ordinary Course of Business. Except as set forth on Schedule 4.20 of the Disclosure
Schedules, except to the extent reserved against the Accounts Receivables on the Financial Statements or except pursuant to the
terms of any applicable Material Contract, the Accounts Receivable are free and clear of Encumbrances (other than Permitted Encumbrances),
there is no right of offset against any of the Accounts Receivable, and no agreement for deduction or discount has been made with
respect to any of the Accounts Receivable other than in the Ordinary Course of Business and as to ordinary trade discounts.

 

    	 	- 33 -	 

     

    

 

4.21.         Material
Contracts. Schedule 4.21 contains a true and correct list of the Material Contracts. True and correct copies of
the Material Contracts, including all amendments applicable thereto, have been made available to Buyer. Each of the Material Contracts
is enforceable against the Company and, to the Knowledge of the Company, each other party thereto, in accordance with its terms,
in each case except as such enforcement may be limited by Enforceability Limitations. Neither the Company nor, to the Knowledge
of the Company, any other party to any Material Contract, is in material default thereunder or in material breach thereof, and
the Company has not, during the past twelve (12) months prior to the date hereof, obtained or granted any material waiver of or
under any provision of any Material Contract except for routine waivers granted or sought in the Ordinary Course of Business. To
the Knowledge of the Company, there exists no event, occurrence, condition or act which constitutes or, with the giving of notice,
the lapse of time or the happening of any future event or condition, would reasonably be expected to become a material default
by the Company or, to the Knowledge of the Company, any other party under any Material Contracts. To the Knowledge of the Company,
there is not any default threatened in writing under any Material Contracts. To the extent any Material Contract constitutes an
Application, such Material Contract has been disclosed to Buyer in its entirety and in “as submitted” form (inclusive
of all final drafts submitted and any drafts, preliminary or non-final submissions), with personally identifiable information redacted.

 

4.22.         Suppliers.
Schedule 4.22 of the Disclosure Schedules contain a list of the ten (10) largest suppliers of the Business for
the fiscal year ending December 31, 2019. Except as set forth on Schedule 4.22 of the Disclosure Schedules, none
of the suppliers set forth on Schedule 4.22 of the Disclosure Schedules has informed the Company that it intends to
terminate its relationship with the Company, and the Company has no Knowledge that any such supplier intends to terminate such
relationship or of any material problem or dispute with any such supplier.

 

4.23.         Bank
Accounts; Powers of Attorney. Schedule 4.23 of the Disclosure Schedules contains a true, complete and correct list
of all bank accounts and safe deposit boxes maintained by the Company and all Persons entitled to draw thereon, to withdraw therefrom
or with access thereto, a description of all lock box arrangements for the Company and a description of all powers of attorney
granted by the Company.

 

4.24.         Environmental
Matters.

 

(a)            The
Company has complied with, and is currently in compliance with, all Environmental Laws. The Company has not received, orally or
in writing, any actual or threatened order, notice, report or other communication or information of any actual or potential violation
or failure by the Company to comply with any Environmental Law.

 

(b)            Neither
the Company nor Seller has received any notice, written or oral, that there are any pending or, threatened claims or Encumbrances
resulting from any Environmental, Health, and Safety Liabilities or arising under or pursuant to any Environmental Law, with respect
to or affecting any Real Property (including, without Limitation, [***]) or any other properties or assets (whether real, personal,
or mixed) owned or operated by the Company.

 

(c)            The
Company has not treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled, released, or exposed
any Person to, any Hazardous Materials, or owned or operated any property or facility which is or has been contaminated by any
Hazardous Materials, so as to give rise to any current or future Liability pursuant to any Environmental Law.

 

    	 	- 34 -	 

     

    

 

(d)            The
Company has not assumed, undertaken, or otherwise become subject to, or provided any indemnity with respect to, any Liability pursuant
to any Environmental Law of any other Person.

 

(e)            Other
than in compliance with all applicable Laws, the Company has not manufactured, sold, marketed, installed or distributed products
or items containing asbestos or silica or other Hazardous Materials and does not have any Liability with respect to the presence
or alleged presence of Hazardous Materials in any product or item or at or upon any property or facility.

 

(f)             Schedule
4.24(f) of the Disclosure Schedules contains true and correct list of all environmental audits, reports, assessments and
other documents in the possession of Seller or the Company, or under their reasonable control, that materially bear on environmental,
health or safety liabilities relating to the past or current operations, facilities or properties of the Business, true and complete
copies of which have been made available to Seller.

 

4.25.         Privacy.
The Company has complied in all material respects with all applicable contractual requirements and all applicable Law pertaining
to information privacy and security. No complaint relating to an improper use or disclosure of, or a breach in the security of,
any such information has been made or, to the Knowledge of the Company, threatened against the Company. To the Knowledge of the
Company, there has been no: (a) material unauthorized disclosure of any third party proprietary or confidential information
in the possession, custody or control of the Company, or (b) material breach of the security procedures of the Company wherein
Confidential Information of the Company has been disclosed to a third party.

 

4.26.         Absence
of Certain Changes. Except as set forth on Schedule 4.26 of the Disclosure Schedules or contemplated by this Agreement,
since December 31, 2019:

 

(a)            the
Company has not sold, leased, transferred, or assigned any of its assets, tangible or intangible, other than for a fair consideration
in the Ordinary Course of Business;

 

(b)            the
Company has not entered into any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and
licenses) involving more than $25,000 or outside the Ordinary Course of Business, excepting only contracts directly related to
the Phase 3 Construction;

 

(c)            no
party (including the Company) has accelerated, terminated, modified, or cancelled any agreement, contract, lease, or license (or
series of related agreements, contracts, leases, and licenses) involving more than $25,000 to which the Company is a party or by
which the Company is bound;

 

(d)            no
Encumbrances have been imposed upon any of the Company’s assets, tangible or intangible, excepting only statutory, inchoate
mechanics’ liens related to the Phase 3 Construction;

 

(e)            the
Company has not made any capital expenditure (or series of related capital expenditures) either involving more than $25,000 or
outside the Ordinary Course of Business, excepting only capital expenditures (or series of related capital expenditures) directly
attributable to the Phase 3 Construction;

 

    	 	- 35 -	 

     

    

 

(f)             the
Company has not made any capital investment in, any loan to, or any acquisition of the securities or assets of, any other Person
(or series of related capital investments, loans, and acquisitions) either involving more than $25,000 or outside the Ordinary
Course of Business;

 

(g)            the
Company has not incurred, created, assumed, refinanced, replaced or prepaid any Indebtedness for borrowed money or issued or amended
the terms of any debt securities issued by the Company, or assumed, guaranteed or endorsed, or otherwise become responsible for
the Indebtedness of any other Person;

 

(h)            the
Company has not delayed or postponed the payment of accounts payable and other Liabilities outside the Ordinary Course of Business;

 

(i)             the
Company has not cancelled, compromised, waived, or released any right or claim (or series of related rights and claims) either
involving more than $25,000 or outside the Ordinary Course of Business;

 

(j)             the
Company has not transferred, assigned, or granted any license, sublicense, agreement, covenant not to sue, or permission with respect
to any Company Intellectual Property;

 

(k)            the
Company has not abandoned, permitted to lapse or failed to maintain in full force and effect any registration of any Company Intellectual
Property, or failed to take or maintain reasonable measures to protect the confidentiality or value of any trade secrets included
in the Company Intellectual Property;

 

(l)             there
has been no change made or authorized in the organizational documents of the Company;

 

(m)           the
Company has not issued, sold, or otherwise disposed of any Company Interests or other Company equity or granted any options, warrants,
or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any Company Interests or other Company
equity;

 

(n)            the
Company has not declared, set aside, or paid any dividend or made any distribution with respect to any Company Interests or other
Company equity (whether in cash or in kind) or redeemed, purchased, or otherwise acquired any Company Interests or other Company
equity;

 

(o)            the
Company has not experienced any damage, destruction, or loss (whether or not covered by insurance) to its Real Property, Tangible
Personal Property or other property or assets of any kind or nature;

 

    	 	- 36 -	 

     

    

 

(p)            the
Company has not made any loan to, or entered into any other transaction with, any of its directors, officers, or employees, excepting
only employer-employee relationships;

 

(q)            the
Company has not entered into or terminated any employment contract or collective bargaining agreement, written or oral, or modified
the terms of any existing employment contract or collective bargaining agreement, or become bound by any collective bargaining
relationship;

 

(r)            [Reserved]

 

(s)            the
Company has not adopted, amended, modified, or terminated any bonus, profit sharing, incentive, severance, or other plan, contract,
or commitment for the benefit of any of its directors, officers, and employees (or taken any such action with respect to any other
Employee Benefit Plan), other than placement and/or renewal of those plans, contracts and commitments set forth in Schedule 4.16(i) ;

 

(t)             the
Company has not made any other change in employment terms for any of its directors or officers, and is not currently in default
under any collective bargaining agreement applicable to it;

 

(u)            the
Company has not hired or fired any employees.

 

(v)            the
Company has not implemented any employee layoffs or plant closing implicating or that could implicate the Worker Adjustment and
Retraining Notification Act of 1988, as amended, or any similar state, local, or non-U.S. law, regulation, or ordinance (collectively
the “WARN Act”);

 

(w)           the
Company has not made or pledged to make any charitable or other capital contribution outside the Ordinary Course of Business;

 

(x)            the
Company has not discharged a material Liability or Encumbrance outside the Ordinary Course of Business;

 

(y)            the
Company has not disclosed any Confidential Information without a non-disclosure agreement in place;

 

(z)            the
Company has not formed any new funds, partnerships or joint ventures;

 

(aa)          the
company has not taken any action that would reasonably be expected to prevent or materially delay the consummation of the Transaction;

 

(bb)          to
Seller’s Knowledge, there has not been any other material occurrence, event, incident, action, failure to act, or transaction
outside the Ordinary Course of Business involving the Company;

 

(cc)          to
Seller’s Knowledge, there has not been any Material Adverse Change with respect to the Company, the Business or Seller’s
ability to consummate the Transaction; and

 

    	 	- 37 -	 

     

    

 

(dd)         the
Company has not committed to any of the foregoing.

 

4.27.         No
Brokers.

 

(a)            Except
as set forth on Schedule 4.27(a) of the Disclosure Schedule, Seller has not entered into any agreement, arrangement
or understanding with any Person which will result in the obligation to pay any finder’s fee, brokerage commission or similar
payment in connection with the Transaction.

 

(b)            Except
as set forth on Schedule 4.27(b) of the Disclosure Schedule, the Company has not entered into any agreement, arrangement
or understanding with any Person which will result in the obligation to pay any finder’s fee, brokerage commission or similar
payment in connection with the Transaction.

 

4.28.         Subsidiaries.
The Company has no subsidiaries.

 

4.29.         Product
Warranty. Each product manufactured, sold, leased, or delivered by the Company has been in conformity with all applicable
contractual commitments, applicable Law (except the Federal Cannabis Laws) and all express and implied warranties, and the Company
has no Liability (and, to the Knowledge of the Company, there is no basis for any present or future Claim giving rise to any Liability)
for damages in connection therewith, and there has not been, nor is there under consideration or investigation by the Company,
any product recall or post-sale warning conducted by or on behalf of the Company concerning any product manufactured, produced,
distributed or sold by or on behalf of the Company. No product manufactured, sold, or delivered by the Company is subject to any
guaranty, warranty (excepting only warranties implied by law), or other indemnity.

 

4.30.         Product
Liability. The Company has no Liability (and, to the Knowledge of the Company, there is no basis for any present or future
Claim against any of them giving rise to any Liability) arising out of any injury to individuals or property as a result of the
ownership, possession, or use of any product manufactured, sold, or delivered by the Company.

 

4.31.         Disclosure.
The representations and warranties contained in this Article 4 do not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements and information contained in this Article 4
not misleading.

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF BUYER and JUSHI

 

Buyer and Jushi jointly and severally represent
and warrant to Seller that the statements contained in this Article 5 are correct and complete as of the Effective
Date and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted
for the Effective Date throughout this Article 5).

 

    	 	- 38 -	 

     

    

 

5.1.           Organization
and Good Standing. Buyer is a limited liability company, duly organized, validly existing and in good standing under the laws
of the Commonwealth of Pennsylvania. Buyer has full corporate power and authority to conduct its business as presently being conducted
and to own and lease its properties and assets (except under Federal Cannabis Laws). Jushi is a corporation, duly organized, validly
existing and in good standing under the laws of the State of Delaware. Jushi has full corporate power and authority to conduct
its business as presently being conducted and to own and lease its properties and assets (except under Federal Cannabis Laws).

 

5.2.           Authority;
Authorization; Binding Effect. Buyer has all necessary corporate power and authority to execute and deliver this Agreement
and to consummate the Transaction and to perform its obligations under this Agreement (except under Federal Cannabis Laws). This
Agreement has been duly executed and delivered by Buyer and constitutes a legal (except under Federal Cannabis Laws), valid and
binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as such enforcement may be limited
by Enforceability Limitations. Jushi has all necessary corporate power and authority to execute and deliver this Agreement and
to consummate the Transaction and to perform its obligations under this Agreement (except under Federal Cannabis Laws). This Agreement
has been duly executed and delivered by Jushi and constitutes a legal (except under Federal Cannabis Laws), valid and binding obligation
of Jushi, enforceable against Jushi in accordance with its terms, except as such enforcement may be limited by Enforceability Limitations.

 

5.3.           No
Conflict or Violation. The execution and delivery of this Agreement, the consummation of the Transaction and the performance
by Buyer or Jushi of their respective obligations under this Agreement, do not and will not result in or constitute (a) a
violation of or a conflict with any provision of the certificate of incorporation or formation, or by-laws or limited liability
company agreement of Buyer or Jushi, as applicable (b) a breach of, a loss of rights under, or constitute an event, occurrence,
condition or act which is or, with the giving of notice, the lapse of time or the happening of any future event or condition, would
become, a material default under, any term or provision of any contract, agreement, indebtedness, lease, commitment, license, franchise,
permit, authorization or concession to which Buyer or Jushi is a party, or (c) a violation by Buyer or Jushi of any applicable
Law (except for Federal Cannabis Laws).

 

5.4.           Consents
and Approvals. No consent, approval or authorization of, or declaration, filing or registration with, any third party is required
to be made or obtained by Buyer or Jushi in connection with the execution, delivery and performance of this Agreement and the consummation
of the Transaction.

 

5.5.           No
Brokers. Neither Buyer nor Jushi has entered into any agreement, arrangement or understanding with any Person which will result
in the obligation to pay any finder’s fee, brokerage commission or similar payment in connection with the Transaction.

 

    	 	- 39 -	 

     

    

 

ARTICLE 6

PRE-CLOSING COVENANTS

 

6.1.           Commercially
Reasonable Efforts. During the period beginning on the Effective Date hereof and continuing until the earlier of the termination
of this Agreement or the Closing Date:

 

(a)            Each
Party will cooperate with the other Parties and (i) promptly take or cause to be taken all actions, and do or cause to be
done all things, necessary, proper or advisable under this Agreement, the ancillary documents referenced in this Agreement and
applicable Law to consummate and make effective the Transaction, including preparing and filing all documentation to effect all
necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents,
(ii) use commercially reasonable efforts to obtain all approvals, consents, registrations, Permits, authorizations and other
confirmations required to be obtained from any third party and/or Governmental Authority necessary, proper or advisable to consummate
the Transaction and (iii) execute and deliver such documents, certificates and other papers as a Party may reasonably request
to evidence another Party’s satisfaction of its obligations hereunder. Subject to applicable Law relating to the exchange
of information and in addition to Section 6.1(b), the Parties will have the right to review in advance, and, to the
extent practicable, each will consult the others on, any information relating to the Company, Seller and their Affiliates or Buyer
and its Affiliates, as the case may be, that appears in any filing made with, or written materials submitted to, any third party
and/or any Governmental Authority in connection with the Transaction.

 

(b)            Without
limiting the forgoing, the Parties will: (i) cooperate with one another to determine whether any filings are required to be
or should be made or consents, approvals, Permits or authorizations are required to be or should be obtained under any applicable
Law and (ii) in making any such filings, promptly furnish information required in connection therewith and seek to obtain
timely any such consents, permits, authorizations or approvals.

 

(c)            Without
limiting Section 6.1(a), each Party will, at its sole cost and expense, use its best efforts to avoid the entry of,
or to have vacated or terminated, any Order that would restrain, prevent or delay the Closing of the Transaction, including defending
through litigation or arbitration on the merits any claim asserted in any court by any Person.

 

(d)            Each
Party will keep the other Parties reasonably apprised of the status of matters relating to the completion of the Transaction and
work cooperatively in connection with obtaining all required approvals or consents of any Governmental Authority (whether domestic,
foreign or supranational). In that regard, Seller (on behalf of itself and the Company) and Buyer shall, without limitation: (i) promptly
notify the other Party of, and if in writing, furnish the other Party with copies of (or, in the case of material oral communications,
advise the other Party orally of) any communications from or with any Governmental Authority with respect to the Transaction, (ii) permit
the other Party to review and discuss in advance, and consider in good faith the views of the other Party in connection with, any
proposed written (or any material proposed oral) communication with any such Governmental Authority, (iii) not participate
in any meeting with any such Governmental Authority unless it consults with the other Party in advance and, to the extent permitted
by such Governmental Authority, gives the others the opportunity to attend and participate thereat, (iv) furnish the other
Party with copies of all correspondence, filings and communications (and memoranda setting forth the substance thereof) between
it and any such Governmental Authority with respect to this Agreement, any ancillary documents and the Transaction, and (v) furnish
the other Party with such necessary information and reasonable assistance as the other Party may reasonably request in connection
with its preparation of necessary filings or submissions of information to any such Governmental Authority. Notwithstanding the
foregoing, Buyer and Seller may, on behalf of itself and/or any of its Affiliates (including, in the case of Seller, the Company)
designate any non-public information provided to any Governmental Authority as restricted to “outside counsel only”
and any such information shall not be shared with employees, officers or directors or their equivalents of the other Party without
the prior written approval of the Party providing the non-public information.

 

    	 	- 40 -	 

     

    

 

(e)            Except
as specifically set forth in this Agreement, including without limitation Section 6.13 hereof, the Company will be
responsible for all filings with any Governmental Authority relating to this Agreement and/or the Transaction contemplated hereby.

 

6.2.           Operation
of Business. Except as set forth on Schedule 6.2 of the Disclosure Schedules, from the Effective Date until
the earlier to occur of the termination of this Agreement and the Closing Date, Seller will not cause or permit the Company
to engage in any practice, take any action, or enter into any transaction outside the Ordinary Course of Business without the
prior written consent of Buyer, which shall not be unreasonably withheld, delayed or conditioned. Without limiting the
generality of the foregoing, subject to applicable Law, except as set forth on Schedule 6.2 of the Disclosure
Schedules, Seller will not cause or permit the Company to: (i) declare, set aside, or pay any dividend or make any
distribution with respect to any Company Interests or other Company equity or redeem, purchase, or otherwise acquire any
Company Interests or other Company equity, (ii) hire any new employees, (iii) make any capital expenditure (or
series of related capital expenditures) involving more than $25,000; (iv) sell, assign or transfer any Other Inventory
to any Person, or remove any Other Inventory from the [***] (and shall cause the Company to continue to product and
manufacture Other Inventory in the Ordinary Course of Business, subject to the continued availability of plant material and
other inputs on commercially reasonable terms); (v) amend any Lease (including, without limitation, the [***]);
(vi) increase the base compensation, pay or increase any bonus or promote any director, officer or employee, except as
required in any collective bargaining agreement to which the Company is a party, or (vii) engage in any practice, take
any action, or enter into any transaction of the sort described in Section 4.26 (other than (w) filling any
preexisting employee position that is vacated prior to the Closing Date (provided the base compensation and bonus offered to
any new employee shall not exceed [***] of the base compensation and bonus offered to the prior employee), (x) hiring
new employees as disclosed to Buyer in writing prior to the Effective Date (at a base compensation and bonus within [***] of
the base compensation and bonus disclosed to Buyer), (y) transferring cash to or from the Company to Seller or its
Affiliate if and to the extent reasonably anticipated to be needed to meet the Target Net Working Capital amount, and
(z) in the Ordinary Course of Business), in each case without the prior written consent of Buyer, which shall not be
unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, the Parties acknowledge and agree that nothing
contained in this Agreement shall give Buyer or any of its Affiliates, directly or indirectly, the right to control or direct
the operations of Seller, the Company or any of their Affiliates prior to Closing. Prior to Closing, Seller, the Company and
their Affiliates shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision
over their respective operations.

 

    	 	- 41 -	 

     

    

 

6.3.           Preservation
of Business. From the Effective Date until the earlier to occur of the termination of this Agreement and the Closing Date,
Seller will use commercially reasonable efforts to cause the Company to keep the Company’s Business and properties substantially
intact in the Ordinary Course of Business, including the Company’s operations, physical facilities (subject to ordinary wear
and tear), working conditions, Insurance policies, and relationships with lessors, licensors, suppliers, customers, and employees.

 

6.4.           Publicity.
Seller and Buyer will: (a) develop a joint communication plan with respect to this Agreement and the Transaction, (b) ensure
that all press releases and other public statements with respect to this Agreement and the Transaction will be consistent with
such joint communication plan, and (c) consult promptly with each other prior to issuing any press release or otherwise making
any public statement with respect to this Agreement or the Transaction, provide to the other Party for review a copy of any such
press release or statement, and not issue any such press release or make any such public statement without the other Party’s
consent, unless the Party making issuing such release or making such public statement determines in good faith in consultation
with such Party’s legal counsel that such disclosure is required or advisable under applicable Law, or pursuant to the rules and
regulations of any applicable securities exchange. For the avoidance of doubt, this Section 6.4 will not restrict communications
by any Party or its Affiliates that do not relate to the Transaction, nor will it restrict any Party from making any public statement
or press release regarding the other Party that is materially consistent with prior disclosures made pursuant to this Section 6.4
following a period of sixty (60) days after the Closing Date.

 

6.5.           Access.
During the period from the Effective Date and until the earlier of the termination of this Agreement or the Closing Date, Seller
shall permit, and shall cause the Company to permit, representatives of Buyer (including legal counsel and accountants) to have,
upon prior written notice, reasonable access during normal business hours and under reasonable circumstances, and in a manner so
as not to interfere with the normal business operations of the Company, to the premises, personnel, books, records (including Tax
records, Material Contracts, and documents of or pertaining to the Company). Notwithstanding anything to the contrary in this Section 6.5,
Seller and/or the Company will not be required to provide information that: (a) Seller or the Company is required by applicable
Law to keep confidential, or (b) constitutes information protected by the attorney/client and/or attorney work product privilege.
Buyer will comply with, and will cause its Affiliates and their respective Representatives to comply with, all of the confidentiality
obligations of JMGT, LLC (“JMGT”), a Florida limited liability company and Affiliate of Buyer, under that certain
mutual nondisclosure and proprietary information agreement previously signed by Seller and JMGT in connection with the Transaction
on April 4, 2020 (the “NDA”), with respect to the information disclosed pursuant to this Section 6.5.
The confidentiality obligations set forth in the NDA will remain in full force and effect and survive any termination of this Agreement
in accordance with the terms thereof, provided that, notwithstanding anything contained herein or in the NDA to the contrary, any
obligations or restrictions imposed upon Buyer or its Affiliates under the NDA or this Agreement relating solely to Company Confidential
Information will be null and void as of the Closing Date.

 

    	 	- 42 -	 

     

    

 

6.6.           Notification
of Certain Matters. Each Party will give prompt written notice to the other Parties of: (a) any act, omission or other
development constituting a material breach of any of the representations or warranties of such Party set forth herein, and (b) any
material failure of such Party to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied
by such Party as set forth herein. No disclosure by Seller or the Company pursuant to this Section 6.6 shall be deemed
to, and shall not, amend or supplement the Disclosure Schedules or prevent or cure any misrepresentation, breach of warranty, or
breach of covenant.

 

6.7.           No
Solicitation.

 

(a)            During
the period from the Effective Date and continuing until the earlier of the termination of this Agreement or the Closing Date, Seller
will not, nor will Seller authorize or permit the Company to, nor will Seller or the Company permit any of their respective Representatives
to: (i) directly or indirectly solicit, initiate or encourage the submission of, any Acquisition Proposal, (ii) enter
into any agreement (including, without limitation, a confidentiality agreement) with respect to, or consummate, any Acquisition
Proposal, or (iii) directly or indirectly participate in any substantive discussions or negotiations regarding, furnish to
any Person any Confidential Information with respect to, or take any other action to facilitate the making of, an Acquisition Proposal.

 

(b)            During
the period from the Effective Date and continuing until the earlier of the termination of this Agreement or the Closing Date, Seller
shall, and shall cause the Company to, promptly will advise Buyer orally and in writing of any Acquisition Proposal received by
Seller, the Company or any of their respective Representatives, and the material terms and conditions of any such Acquisition Proposal
and provide Buyer with copies of any documents related to such Acquisition Proposal. Seller and the Company will keep Buyer reasonably
informed of the status (including any change to the material terms thereof) of any such Acquisition Proposal. Notwithstanding anything
contained in this Section 6.7(b) to the contrary, neither Seller nor the Company is obligated to disclose the
names of the parties involved in an Acquisition Proposal.

 

6.8.           Member
Loans. Except to the extent Buyer may elect in writing to the contrary, on or prior to the Closing Date all loans and the obligations
relating thereto between Seller or any of its Affiliates (other than the Company), on the one hand, and the Company, on the other
hand, will be terminated.

 

6.9.           Maintenance
of Real Property. Subject to improvements to the [***] made by Company in consultation with Buyer, Seller will cause the Company
to maintain the Real Property, including all of the improvements thereto, in substantially the same condition as existed on the
Effective Date, ordinary wear and tear excepted.

 

6.10.         Leases.
Seller will not cause or permit any Lease to be amended, modified, extended, renewed or terminated, nor shall the Company enter
into any new lease, sublease, license, or other agreement for the use or occupancy of any Real Property, without the prior written
consent of Buyer.

 

    	 	- 43 -	 

     

    

 

6.11.         Pre-Closing
Tax Matters. Except as otherwise provided herein, Seller shall not, and shall cause the Company not to, make or change
any material election, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return,
enter into any closing agreement, settle any Tax claim or assessment relating to the Company, surrender any right to claim a refund
of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to the
Company, if such election, adoption, change, amendment, agreement, settlement, surrender, or consent could reasonably be expected
to increase the Tax liability of the Company for any period ending after the Closing Date.

 

6.12.         Pre-Closing
Financial Statements. Seller shall deliver to Buyer on or prior to the twentieth (20th) day of each calendar month
after the Effective Date a true and complete statement of unaudited monthly financial statements for the immediately preceding
calendar month prepared in accordance with GAAP in effect at the time of such preparation applied on a consistent basis with past
practice of the Company and throughout the periods involved.

 

6.13.         Application
for Change of Ownership.

 

(a)            Buyer
(and all of its affiliated persons and entities required to do so under the Pennsylvania Cannabis Laws assuming that Buyer or its
successor is a publicly-traded company) (each, an “Application Party” and collectively, the “Application
Parties”) has provided or will provide the Company with all necessary information for the Company to submit the DOH form
labeled “Reporting Individuals Affiliated with a Medical Marijuana Organization,” or the applicable successor form
(the “Affiliation Form”) to be approved as an affiliated person of the Company within five (5) Business
Days of the Effective Date. The Company shall submit the Affiliation Form within one (1) Business Day of the Company’s
receipt of the required information from Buyer. Each Application Party has submitted, or will submit, the following additional
materials with respect to such Application Party as requested by the DOH: (i) fingerprint card; (ii) background check
conducted by DOH’s agent for same; (iii) tax clearance certificate; and (iv) any other requisite materials as further
directed by DOH or required by the Affiliation Form or any other provision of the Pennsylvania Cannabis Laws.

 

(b)            Concurrently
with the Company’s submission of the Affiliation Form for the Application Parties, the Company and Buyer will jointly
notify the DOH of the Parties’ intention to (i) add the Application Parties as affiliated persons of the and (ii) remove
from affiliated person status all affiliated persons of the Company other than the Application Parties and any existing officer
or employee of the Company that Buyer has agreed in writing to retain following the Closing, effective as of the DOH approving
all Application Parties as affiliated persons of the Company as a result of Buyer’s prospective ownership of the Company.
Buyer and Seller will coordinate with each other and keep each other apprised of the submission of the Application Materials and
any response or request for additional information received from DOH. In the event that the DOH requests any additional information
with respect to the Application Materials, Buyer and Seller will promptly respond to such requests.

 

    	 	- 44 -	 

     

    

 

(c)            As
set forth in Section 7.2(c), it is a condition to Closing that all Application Parties have been approved by DOH as
affiliated persons of the Company in accordance with the Pennsylvania Cannabis Laws or, if any Application Party is not so approved,
that Buyer provides evidence satisfactory to the Company (and, if required or requested, DOH) that Buyer is no longer affiliated
(as defined by Pennsylvania Cannabis Laws) with such rejected Application Party.

 

6.14.         Designation
of Industry Professionals. Upon execution of this Agreement, Buyer may designate one (1) industry professionals to serve
as a consultant to the Company, at no cost to the Company, solely to monitor the ongoing progress of capital projects and expenditures.
Such industry professional shall have no decision-making rights or any rights to execute any documents on behalf of the Company,
and the Company shall not be bound to follow any recommendations from such industry professional.

 

6.15.         Composition
of Finished Goods Inventory at Closing. Seller shall, and shall cause the Company to, use commercially reasonable efforts to
ensure that the aggregate wholesale value of Prepack Flower at Closing is not less than [***] of the aggregate wholesale value
of all Finished Goods Inventory, measured using a valuation per unit consistent with past practice of the Company.

 

6.16.         Loan
Agreement. Commencing promptly after the Effective Date, Jushi and Seller shall use best efforts and good faith to negotiate
and execute a promissory note, security agreement and related documents for the Bridge Loan prior to the expiration of the Due
Diligence Period, provided that Buyer shall not have timely exercised its right to terminate this Agreement pursuant to Section 8.1(c) hereof.

 

ARTICLE 7

CONDITIONS TO CLOSING

 

7.1.           Conditions
to Buyer’s Obligation. Buyer’s obligation to consummate the Transaction is subject to the satisfaction of the following
conditions:

 

(a)            the
representations and warranties of Seller and the Company set forth in Article 4 shall be true and correct in all material
respects at and as of the Closing Date (except to the extent that they expressly speak as of a specific date or time other than
the Closing Date, in which case they need only have been true and correct as of such specified date or time), except to the extent
that such representations and warranties are qualified by the term “material,” or contain terms such as “Material
Adverse Effect” or “Material Adverse Change,” in which case such representations and warranties (as so written,
including the term “material” or “Material”) shall be true and correct in all respects at and as of the
Closing Date;

 

(b)            Seller
and the Company shall have performed and complied with all of their respective covenants hereunder in all material respects through
the Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as
 “Material Adverse Effect” or “Material Adverse Change,” in which case Seller shall have performed and complied
with all of such covenants (as so written, including the term “material” or “Material”) in all respects
through the Closing;

 

    	 	- 45 -	 

     

    

 

(c)            The
Parties shall have obtained approvals from all necessary Governmental Authorities to consummate the Transaction, including, without
limitation, approval from the DOH if and to the extent required;

 

(d)            no
Governmental Authority shall have enacted, issued, promulgated, enforced or entered an Order which is in effect and has the effect
of making the Transaction contemplated by this Agreement illegal, excepting illegality arising out of the Federal Cannabis Laws,
otherwise restraining or prohibiting consummation of the Transaction or causing the Transaction to be rescinded following consummation.

 

(e)            no
Claim shall be pending or threatened before (or that could come before) any Governmental Authority wherein an unfavorable Order
could (A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause any of the transactions
contemplated by this Agreement to be rescinded following consummation, (C) adversely affect the right of Buyer to own the
Company Interests or to control the Company, or (D) adversely affect the right of the Company to own its assets and to operate
its Business (and, in each case, no such Order shall be in effect);

 

(f)            Seller
shall have delivered to Buyer a certificate to the effect that each of the conditions specified in Sections 7.1(a), (b) and
(e) are satisfied in all respects;

 

(g)            Buyer
shall have received the resignations, effective as of the Closing, of each manager, director and/or officer of the Company other
than those whom Buyer shall have specified to Seller in writing at least five (5) Business Days prior to the Closing Date;

 

(h)            Buyer
shall have received, free and clear of all Encumbrances, all certificates representing the Company Interests, properly endorsed,
or, if the Company Interests are not certificated, an equity power and assignment separate from security for the Company Interests
in favor of Buyer,;

 

(i)             all
actions to be taken by Seller and the Company in connection with consummation of the Transaction and all certificates, opinions,
instruments, agreements and other documents required to effect the Transaction shall be reasonably satisfactory in form and substance
to Buyer;

 

(j)             the
Company shall have obtained and delivered to Buyer a written consent of Landlord approving the transfer of a controlling interest
of the Company in accordance with Section 16.1(b) of [***], in form and substance reasonably satisfactory to Buyer;

 

(k)            Buyer
and Landlord shall have negotiated (in form and substance reasonably satisfactory to Buyer), and executed such documents, instruments
and agreements as may be required for Buyer to assume any obligations of Seller under the [***];

 

    	 	- 46 -	 

     

    

 

(l)             the
Company shall have obtained from Landlord and delivered to Buyer an estoppel certificate with respect to the [***], dated no more
than thirty (30) days prior to the Closing Date, in form and substance reasonably satisfactory to Buyer (the “Estoppel
Certificate”);

 

(m)           Seller
shall have delivered to Buyer a copy of the certificate of status of the Company issued within thirty (30) days of the Closing
Date by the Secretary of State for the Commonwealth of Pennsylvania showing the Company is in good standing in the Commonwealth
of Pennsylvania;

 

(n)            Seller
shall have delivered to Buyer a certificate of the secretary or an assistant secretary of the Company, dated as of the Closing
Date, in form and substance reasonably satisfactory to Buyer, attesting to: (i) the certificate of formation and bylaws or
similar organizational documents of the Company; (ii) the operating agreement of the Company; and (iii) a resolutions
of the board of managers or other authorizing body (or a duly authorized committee thereof) of the Company authorizing the execution,
delivery, and performance of this Agreement by and Company and the consummation of the Transaction;

 

(o)            From
the Effective Date, there shall not have occurred any Material Adverse Effect on the Company or the Business, or Seller’s
ability to consummate the Transaction, nor shall any event or events have occurred that, individually or in the aggregate, with
or without the lapse of time, could reasonably be expected to result in a Material Adverse Effect on the Company or the Business,
or Seller’s ability to consummate the Transaction ;

 

(p)            The
Company shall have terminated all Related Party Agreements;

 

(q)            The
Company shall have either: (i) drawn the entire [***] (as such term is defined in the [***]) and applied the [***]to
bona fide construction or other projects related to the improvement of the Facility or for such other purposes as may be
permitted under the [***]; or (ii) provided Buyer with a written statement executed by Landlord expressly permitting the
Company to use the remaining undrawn balance of the [***] following the Closing Date;

 

(r)            The
Due Diligence Period has expired without Buyer terminating this Agreement pursuant to Section 8.1(c) hereof;

 

(s)            There
has not been any Unremediated UMAF;

 

(t)             Buyer
and Pennsylvania Dispensary Solutions, LLC, a Pennsylvania limited liability company (“PADS”) shall have executed
a supply agreement (“Supply Agreement”) in the form attached hereto as Exhibit C; and

 

(u)            Seller
and Company shall have executed a transition services agreement (“Transition Services Agreement”), by and among
Seller, Company and Buyer, in the form attached hereto as Exhibit D.

 

Buyer may waive any condition specified
in this Section 7.1 if Buyer executes a writing so stating at or prior to the Closing.

 

    	 	- 47 -	 

     

    

 

7.2.           Conditions
to Seller’s Obligation. The obligation of Seller to consummate the Transaction is subject to satisfaction of the following
conditions:

 

(a)            the
representations and warranties set forth in Article 5 shall be true and correct in all material respects at and as
of the Closing Date, except to the extent that such representations and warranties are qualified by the term “material,”
or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case such representations
and warranties (as so written, including the term “material” or “Material”) shall be true and correct in
all respects at and as of the Closing Date;

 

(b)            Buyer
shall have performed and complied with all of its covenants hereunder in all material respects through the Closing, except to the
extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect”
or “Material Adverse Change,” in which case Buyer shall have performed and complied with all of such covenants (as
so written, including the term “material” or “Material”) in all respects through the Closing;

 

(c)            The
Parties shall have obtained approvals from all necessary Governmental Authorities to consummate the Transaction, including, without
limitation, approval from the DOH;

 

(d)            no
Claim shall be pending or threatened before (or that could come before) any Governmental Authority wherein an unfavorable injunction,
judgment, Order, decree, ruling, or charge could (A) prevent consummation of the Transaction, or (B) cause the Transactions
to be rescinded following consummation;

 

(e)            Buyer
and Jushi shall each have delivered to Seller a certificate to the effect that each of the conditions specified above in Section 7.2
(a), (b) and (d) are satisfied in all respects;

 

(f)             all
actions to be taken by Buyer in connection with consummation of the Transactions and all certificates, opinions, instruments, agreements
and other documents required to effect the Transactions will be reasonably satisfactory in form and substance to Seller;

 

(g)            Buyer
shall have executed the Supply Agreement; and

 

(h)            Buyer
shall have executed the Transition Services Agreement.

 

Seller may waive any condition specified
in this Section 7(b) if Seller executes a writing so stating at or prior to the Closing.

 

ARTICLE 8

TERMINATION

 

8.1.           Termination.
This Agreement may be terminated and the Transaction may be abandoned at any time prior to the Closing Date:

 

(a)            By
mutual written consent of Buyer and Seller;

 

    	 	- 48 -	 

     

    

 

(b)            By
either Buyer or Seller if a Governmental Authority will have issued an Order or taken any other action (excluding any Order or
action arising under, relating to or in connection with the Federal Cannabis Laws), in each case that has become final and non-appealable
and that restrains, enjoins or otherwise prohibits the Transaction or any part of it; provided, that the right to terminate this
Agreement under this Section 8.1(b) will not be available to any Party whose failure to fulfill any material obligation
under this Agreement has been a cause of, or resulted in, the issuance of such Order or such action;

 

(c)            By
Buyer upon written notice to Seller at any time on or before [***] (the “Due Diligence Period”), in each case
if Buyer is not satisfied, in its sole discretion, with its examinations, inspections, tests, studies, analyses, appraisals, evaluations
and other due diligence of Seller, the Company, their Affiliates, all of their respective businesses (including, without limitation,
the Business), facilities, properties and assets, or the Transaction.

 

(d)            By
Buyer upon written notice to Seller at any time prior to Closing if: (i) there has been an Unremediated UMAF, (ii) Seller
or the Company has breached any representation, warranty or covenant contained in this Agreement in any material respect and (A) the
breach cannot be cured, or (B) Buyer has notified Seller of the breach in writing, and the breach has continued without cure
for a period of thirty (30) days after receipt by Seller of the written notice of breach; (iii) Buyer reasonably determines
in there has been, or is likely to be, a failure of a condition precedent to Buyer’s obligation to consummate the Transaction;
(iv) Buyer identifies a material issue that, in Buyer’s reasonable judgment, is currently having or will likely have
a Material Adverse Effect on the Company or the Business and (1) Buyer gives Seller notice of such material issue within five
(5) Business Days after identifying same, and (2) Seller is unable or unwilling to cure or cause the cure of such issue
to Buyer’s reasonable satisfaction prior to the scheduled Closing Date; or (v) the Closing has not occurred by [***];
or

 

(e)            By
Seller if Buyer has breached any representation, warranty or covenant contained in this Agreement in any material respect and (i) the
breach cannot be cured, or (ii) Seller has notified Buyer of the breach in writing, and the breach has continued without cure
for a period of thirty (30) days after receipt by Buyer of the written notice of breach.

 

(f)             In
the event of any termination of this Agreement, the Parties will promptly notify DOH of such termination and execute all documents
and take all steps necessary to terminate the request for DOH approval of the change of equity ownership including without limitation
(i) revocation of all Affiliation Forms of all Application Parties and (ii) notifying DOH of the termination of the Parties’
intent to remove all affiliated persons of the Company other than the Application Parties.

 

8.2.           Effect
of Termination. Except as specifically provided in this Section 8.2, in the event of the termination of this Agreement
pursuant to Section 8.1, this Agreement (other than Sections 6.4, 6.16, 8.2, 11.2, 11.3,
11.4 and 11.17, Article 10, and such other provisions herein that expressly survive termination of this
Agreement, which shall all survive such termination) will forthwith become void, and there will be no Liability on the part of
any Party or any of their respective officers or directors to the other and all rights and obligations of any Party will cease,
except that nothing in this Section 8.2 will relieve any Party from Liability: (a) for fraud in the giving of
any representations, warranties or in the fulfilment of any covenant prior to termination of this Agreement or (b) for willful
and material breach prior to termination of this Agreement.

 

    	 	- 49 -	 

     

    

 

ARTICLE 9

REMEDIES FOR BREACH OF THIS AGREEMENT

 

9.1.           Survival
of Representations, Warranties, Covenants and Agreements.

 

(a)            The
Parties, intending to shorten the applicable statute of limitation period, agree that all representations and warranties of Seller
and the Company contained in Article 4 of this Agreement will survive the Closing Date for the duration of the applicable
Representation Survival Period; except that the representations and warranties in Section 4.1 (Organization and Authority
to Conduct Business), Section 4.2 (Power and Authority; Binding Effect), Section 4.3 (Equity Information),
Section 4.4 (Title), and Section 4.13 (Compliance with Laws and Permits) (collectively, the “Seller
Fundamental Representations”) will survive the Closing Date indefinitely, and the representations and warranties made
in Section 4.9 (Taxes) and Section 4.16 (Employee Benefit Plans) (collectively, the “Tax and ERISA
Representations” and together with Seller Fundamental Representations, the “Seller Excluded Representations”)
will survive the Closing Date until sixty (60) days following the expiration of all applicable statute of limitations (giving effect
to any waiver, or extension thereof). All covenants and agreements made by Seller or the Company contained in this Agreement (including
the obligation of Seller to convey the Company Interests to Buyer pursuant to Section 2.1 and the indemnification obligations
of Seller set forth in this Section 9.1) will survive the Closing Date until fully performed or discharged. Any Claim
by Buyer for a breach of a representation, warranty or covenant by Seller or the Company contained in Article 4 of
this Agreement must be delivered to Seller in writing prior to the applicable expiration date set forth in this Section 9.1(a).
All of the representations and warranties of Seller or the Company contained in this Agreement will not be limited or diminished
in any respect by any past or future inspection, investigation, examination or possession on the part of Buyer or its Representatives.
Notwithstanding the foregoing or anything contained herein to the contrary, any Claim by Buyer based on Seller’s or the Company’s
fraud in the giving of any representations or warranties or in the fulfilment of any covenant herein will survive indefinitely.

 

(b)            All
representations and warranties of Buyer contained in Article 5 of this Agreement will survive the Closing Date for
the duration of the applicable Representation Survival Period; except that the representations and warranties in Section 5.1
(Organization and Good Standing), Section 5.2 (Authority; Authorization; Binding Effect), and Section 5.6
(No Brokers) (collectively, the “Buyer Excluded Representations”) will survive the Closing Date indefinitely.
All covenants and agreements made by Buyer contained in this Agreement (including the indemnification obligations of Buyer set
forth in this Section 9.1) will survive the Closing Date until fully performed or discharged. Any Claim by Seller for
a breach of a representation or warranty by Buyer contained in Article 5 of this Agreement must be delivered in writing
to Buyer prior to the above-referenced applicable expiration date. Notwithstanding the foregoing or anything contained herein to
the contrary, any Claim by Seller based on Buyer’s fraud in the giving of any representations or warranties or in the fulfilment
of any covenant herein will survive indefinitely.

 

    	 	- 50 -	 

     

    

 

(c)            Written
notice of any Claim for breach of representation, warranty or covenant delivered to the Party against whom such indemnification
is sought prior to the above-referenced applicable expiration date will survive thereafter and, as to any such Claim, such expiration,
if any, will not affect the rights to indemnification under this Article 9 of the Party bringing such Claim.

 

9.2.            Indemnification
by Seller. In the event Seller or the Company breaches (or in the event any third party alleges facts that, if true, would
mean Seller or the Company has breached) any of its representations, warranties, or covenants contained herein, and provided Buyer
provides Seller with timely written notice of a Claim for which Buyer is seeking indemnification pursuant to Section 9.1
hereof, Seller shall be obligated to indemnify, defend and hold Buyer and its Affiliates (the “Buyer Parties”)
harmless from and against the entirety of any Adverse Consequences Buyer and/or its Affiliates may suffer (including any Adverse
Consequences Buyer and/or its Affiliates may suffer after the end of any applicable survival period) resulting from, arising out
of, relating to, in the nature of, or caused by the breach (or the alleged breach).

 

9.3.            Indemnification
by Buyer. In the event Buyer breaches (or in the event any third party alleges facts that, if true, would mean Buyer has breached)
any of its representations, warranties, and covenants contained herein, and provided provides Buyer with timely written notice
of a Claim for which Seller is seeking for indemnification pursuant to Section 9.1 hereof, Buyer shall be obligated
to indemnify, defend and hold Seller harmless from and against the entirety of any Adverse Consequences Seller may suffer (including
any Adverse Consequences Seller may suffer after the end of any applicable survival period) resulting from, arising out of, relating
to, in the nature of, or caused by the breach (or the alleged breach).

 

9.4.           Limitations
on Indemnifications.

 

(a)            For
purposes of this Section 9.4, the term “Threshold” means a dollar amount equal to $[***].

 

(b)            Seller
shall not be liable for any Adverse Consequences pursuant to Section 9.2 until the aggregate amount of all Adverse
Consequences suffered by the Buyer Parties exceeds the Threshold, in which case, subject to Seller Maximum Indemnification Liability,
the Buyer Parties will be entitled to recover all Adverse Consequences paid, incurred, suffered or sustained by the Buyer Parties
(including, for the avoidance of doubt, the Threshold amount). For purposes hereon, the “Seller Maximum Indemnification
Liability” shall be equal to [***] of the Purchase Price, except for any Claim by a Buyer Party arising from, related
to or in connection with: (i) a Seller Excluded Representation, or (ii) Seller’s, the Company’s or any of
their Affiliates’ intentional misrepresentation, willful breach or fraud, in which case Seller shall be responsible for all
Adverse Consequences without limitation.

 

    	 	- 51 -	 

     

    

 

(c)            Buyer
shall not be liable for any Adverse Consequences pursuant to Section 9.3 until the aggregate amount of all Adverse
Consequences suffered by Seller exceeds the Threshold, in which case, subject to the Buyer Maximum Indemnification Liability, Seller
will be entitled to recover all Adverse Consequences paid, incurred, suffered or sustained by Seller (including, for the avoidance
of doubt, the Threshold amount). For purposes hereon, the “Buyer Maximum Indemnification Liability” shall be
equal to [***] of the Purchase Price, except for any Claim by Seller arising from, related to or in connection with: (i) a
Buyer Excluded Representation, or (ii) Buyer’s or any of its Affiliates’ intentional misrepresentation, willful
breach or fraud, in which case Buyer shall be responsible for all Adverse Consequences without limitation.

 

9.5.           Notification
of Claims. In the event that any Party entitled to indemnification pursuant to this Agreement (the “Indemnified Party”)
proposes to make any claim for such indemnification, the Indemnified Party will deliver to the indemnifying Party (the “Indemnifying
Party”), which delivery with respect to the Adverse Consequences arising from breaches of representations and warranties
will be on or prior to the date upon which the applicable representations and warranties expire pursuant to Section 9.1(a) hereof,
a signed certificate, which certificate will (i) state that Adverse Consequences have been incurred or that a Claim has been
brought for which Adverse Consequences may be incurred, (ii) specify the sections of this Agreement under which such Claim
is brought and (iii) specify in reasonable detail each individual Adverse Consequence or other Claim including the amount
thereof and the date such Adverse Consequence was incurred. In addition, each Indemnified Party will give notice to the Indemnifying
Party promptly following its receipt of service of any suit or proceeding initiated by a third party which pertains to a matter
for which indemnification may be sought (a “Third-Party Claim”); provided, however, that the failure to give
such notice will not relieve the Indemnifying Party of its obligations hereunder if the Indemnifying Party has not been prejudiced
thereby.

 

9.6.           Defense
of Third-Party Claims.

 

(a)            Any
Indemnifying Party will have the right to defend the Indemnified Party against the Third-Party Claim with counsel of its choice
reasonably satisfactory to the Indemnified Party so long as (i) the Indemnifying Party notifies the Indemnified Party in writing
within fifteen (15) days after the Indemnified Party has given notice of the Third-Party Claim that the Indemnifying Party will
indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the Indemnified Party may suffer resulting
from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim, (ii) the Indemnifying Party provides
the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial
resources to defend against the Third-Party Claim and fulfill its indemnification obligations hereunder, (iii) the Third-Party
Claim involves only money damages and does not seek an injunction or other equitable relief, (iv) settlement of, or an adverse
judgment with respect to, the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to establish
a precedential custom or practice materially adverse to the continuing business interests or the reputation of the Indemnified
Party or its Affiliates, (v) the Indemnifying Party conducts the defense of the Third-Party Claim with reasonable diligence,
and (vi) settlement of, or an adverse judgment with respect to, the Third Party Claim is not, in the good faith judgment of
the Indemnified Party, likely to result in criminal proceedings against the Indemnified Party or its Affiliates.

 

    	 	- 52 -	 

     

    

 

(b)            So
long as the Indemnifying Party is conducting the defense of the Third-Party Claim in accordance with Section 9.6(a):
(i) the Indemnified Party may retain separate co-counsel at his, her, or its sole cost and expense and participate in the
defense of the Third-Party Claim, (ii) the Indemnified Party will not consent to the entry of any judgment on or enter into
any settlement with respect to the Third-Party Claim without the prior written consent of the Indemnifying Party (not to be unreasonably
withheld), and (iii) the Indemnifying Party will not consent to the entry of any judgment on or enter into any settlement
with respect to the Third-Party Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld)
and without the Indemnified Party receiving an unconditional release of such Third-Party Claims.

 

(c)            In
the event any of the conditions in Section 9.6(a) above is or becomes unsatisfied, however: (i) the Indemnified
Party may defend against, and consent to the entry of any judgment on or enter into any settlement with respect to, the Third-Party
Claim in any manner it may reasonably deem appropriate (and the Indemnified Party need not consult with, or obtain any consent
from, any Indemnifying Party in connection therewith), (ii) the Indemnifying Party will reimburse the Indemnified Party promptly
and periodically for the costs of defending against the Third-Party Claim (including reasonable attorneys’ fees and expenses),
and (iii) the Indemnifying Party will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting
from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim to the fullest extent provided in this
Article 9.

 

9.7.           Direct
Claims. In the event of a Claim for indemnification under this Agreement for which an Indemnified Party has provided notice
of such Claim to an Indemnifying Party under this Article 9 (but excluding any Third-Party Claim) and the Indemnifying
Party receiving such notice disputes all or any part of such Claim, then Buyer and Seller will first attempt to resolve such claim
through direct negotiations in good faith. No settlement reached in such negotiations under this Section 9.7 will be
binding until reduced to a writing signed by all of the applicable Parties. If the dispute is not resolved within twenty (20) Business
Days after the date of delivery of such Claim, then such dispute will be resolved in accordance with Section 11.3.
Nothing in this Section 9.7 will prevent any Party from seeking injunctive relief in accordance with this Agreement.

 

9.8.           Other
Indemnification Matters.

 

(a)            All
indemnification payments made pursuant to this Article 9 will be treated as an adjustment to the Purchase Price unless
otherwise required by applicable Law.

 

(b)            Any
indemnification to which the Buyer Parties are entitled under this Agreement as a result of any Adverse Consequences the Buyer
Parties suffers shall be offset against the outstanding principal and interest due to Seller under the Note[***].

 

    	 	- 53 -	 

     

    

 

ARTICLE 10

COVENANTS AND CONDUCT OF THE PARTIES AFTER CLOSING

 

10.1.         Non-Solicitation;
Non-Disparagement.

 

(a)            Non-Solicitation.
In consideration for the Purchase Price payable hereunder, Seller covenants and agrees with Buyer that, except with the prior written
consent of Buyer (which consent may be withheld or given in Buyer’s sole discretion), during the period commencing on the
Closing Date and expiring on the day that is [***] months after the Closing Date, Seller shall not, and shall cause its Affiliates
and all of their respective Representatives not to, directly or indirectly, in any capacity whatsoever: (i) hire or solicit
any current employee of the Company, or induce or encourage any such employee to leave such employment, or hire any such employee
who has left such employment less than [***]prior to Closing; (ii) solicit, induce or entice, or attempt to solicit, induce
or entice, any suppliers or customers of the Company or potential suppliers or customers of the Company for purposes of diverting
their business or services from the Company; or (iii) discourage any suppliers or customers of the Company from maintaining
the same business relationships with the Company after the Closing as it maintained with the Company prior to Closing. Notwithstanding
the foregoing, hiring or engaging any individual or contractor who (A) applies for a position in response to an advertisement
in a publication or medium of general circulation that is not specifically targeted to individuals or independent contractors who
are or have been engaged by or associated with the Company, (B) is identified through an employee recruiting or search firm
engaged to conduct a search that does not specifically target any employees or independent contractors who are or have been engaged
by or associated with the Company, or (C) is terminated by Buyer or its Affiliates shall not constitute a violation of this
Section 10.1.

 

(b)            Non-Disparagement.
Each of Buyer and Seller covenants and agrees that it will not make (or permit its Affiliates or any of their respective Representatives,
successors or assigns) to make any false, misleading, derogatory or disparaging statements concerning the other Party, its Affiliates,
or any of their respective Representatives, successors or assigns. Nothing in this Section 10.1(c) shall limit
either Party’s, its Affiliates’ or any of their respective Representatives’ ability to make true and accurate
statements or communications in connection with any disclosure such Party, Affiliate or Representative is required pursuant to
applicable Law.

 

(c)            Equitable
Remedies/Reasonableness of Limitations. Each Party acknowledges that (a) a remedy at law for failure to comply with the
covenants contained in this Section 10.1 may be inadequate and (b) the other Party will be entitled to seek from
a court having jurisdiction, in its sole discretion, specific performance, an injunction, a restraining order or any other equitable
relief in order to enforce any such provision without the need to post a bond. The right to obtain such equitable relief will be
in addition to any other remedy to which the Party is entitled under applicable Law (including, but not limited to, monetary damages).
Each Party acknowledges that it has had an opportunity to consult with counsel regarding this Agreement, has fully and completely
reviewed this Agreement with such counsel and fully understands the contents hereof. Seller agrees that the territorial, time and
other limitations contained in this Agreement are reasonable and properly required for the adequate protection of the business
and affairs of Buyer, and in the event that any one or more of such territorial, time or other limitations is found to be unreasonable
by a court of competent jurisdiction, Seller agrees to submit to the reduction of said territorial, time or other limitations to
such an area, period or otherwise as the court may determine to be reasonable. In the event that any limitation under this Agreement
is found to be unreasonable or otherwise invalid in any jurisdiction, in whole or in part, Seller acknowledge and agree that such
limitation will remain and be valid in all other jurisdictions.

 

    	 	- 54 -	 

     

    

 

10.2.         Tax
Matters.

 

(a)            Seller
will prepare or cause to be prepared and will file or cause to be filed all Tax Returns for the Company for all Tax periods ending
on or prior to the Closing Date (the “Pre-Closing Tax Periods”). Each Tax Return referred to in this Section 10.2(a) will
be prepared in a manner consistent with past practices of the Company and without a change of any election, accounting method or
convention (in each case except as otherwise required by applicable Law). Seller will provide or cause to be provided such Tax
Returns to Buyer, no later than thirty (30) days prior to the due date for such Tax Returns (including any applicable extensions)
for Buyer’s review and comment, and Seller shall consider in good faith all comments provided by Buyer in connection with
the filing of such Tax Returns. Buyer will reasonably cooperate with Seller, at Seller’s sole cost and expense, in connection
with the filing of such Tax Returns.

 

(b)            Buyer
will prepare or cause to be prepared and will file or cause to be filed all Tax Returns of the Company that are required to be
filed after the Closing Date with respect to any Straddle Period. Each Tax Return referred to in this Section 10.2(b) will
be prepared in a manner consistent with past practices of the Company and without a change of any election, accounting method or
convention (in each case except as otherwise required by applicable Law). At least thirty (30) days prior to the date on which
each such Tax Return is due (with applicable extensions), Buyer will submit such Tax Return to Seller for review, and comment,
and approval (not to be unreasonably withheld, conditioned or delayed). Seller will provide any written comments to Buyer no later
than fifteen (15) days after receiving any such Tax Return and, if Seller does not provide any written comments within fifteen
(15) days, Seller will be deemed to have accepted such Tax Return. Buyer and Seller will attempt in good faith to resolve any dispute
with respect to any such Tax Return. If Buyer and Seller the Parties are unable to resolve any such dispute at least five (5) days
before the due date (with applicable extensions) for any such Tax Return, Buyer shall make the final determination with respect
to the issues underlying such dispute.

 

(c)            For
purposes of this Section 10.2, the portion of Tax with respect to the income, property or operations of the Company
that is attributable to any Tax period that begins on or before the Closing Date and ends on or after the Closing Date (a “Straddle
Period”) will be apportioned between the period of the Straddle Period that extends before the Closing Date through the
Closing Date (the “Pre-Closing Straddle Period”) and the period of the Straddle Period that extends from the
day after the Closing Date to the end of the Straddle Period (the “Post-Closing Straddle Period”) in accordance
with this Section 10.2(c). The portion of such Tax attributable to the Pre-Closing Straddle Period will (i) in
the case of any Taxes other than sales or use taxes, value-added taxes, employment taxes, withholding taxes, and any Tax based
on or measured by income, receipts or profits earned during a Straddle Period, be deemed to be the amount of such Tax for the entire
taxable period multiplied by a fraction, the numerator of which is the number of days in the Pre-Closing Straddle Period and the
denominator of which is the number of days in the Straddle Period, and (ii) in the case of any sales or use taxes, value-added
taxes, employment taxes, withholding taxes, and any Tax based on or measured by income, receipts or profits earned during a Straddle
Period, be deemed equal to the amount that would be payable if the Straddle Period ended on and included the Closing Date. The
portion of a Tax attributable to a Post-Closing Straddle Period will be calculated in a corresponding manner.

 

    	 	- 55 -	 

     

    

 

(d)            Seller
will be liable for all Taxes owed with respect to any Tax Return for any Pre-Closing Tax Period and, in the case of a Tax Return
for a Straddle Period, all Taxes attributable to the Pre-Closing Straddle Period. Seller shall pay to Buyer within fifteen (15)
days after the date on which Seller receive written notice that Taxes are paid with respect to such periods in an amount equal
to the portion of such Taxes which relates to the portion of such Pre-Closing Tax Period or Pre-Closing Straddle Period, as the
case may be.

 

(e)            To
the extent permitted by applicable Law, any Tax deductions with respect to any selling expenses, transaction costs or similar expenses
(including, without limitation, Seller Transaction Expenses) will be allocated to the Pre-Closing Tax Period or the Pre-Closing
Straddle Period.

 

(f)            Buyer
and Seller will cooperate fully in connection with the filing of Tax Returns pursuant to this Section 10.2 and any
audit, litigation, or other proceeding with respect to Taxes. Such cooperation will include (upon another Party’s request)
the provision of records and information that are available and reasonably relevant to any such audit, litigation, or other proceeding
and making employees available on a mutually convenient basis to provide additional information and explanation of any material
provided hereunder. Buyer shall cause the Company to retain all books and records with respect to Tax matters pertinent to the
Company relating to any Tax period beginning before the Closing Date until the expiration of the statute of limitations of the
respective Tax periods. Buyer and Seller further agree, upon the request of the other Party, to use their commercially reasonable
efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may be necessary to
mitigate, reduce, or eliminate any Tax that could be imposed (including, but not limited to, with respect to the Transaction).

 

    	 	- 56 -	 

     

    

 

(g)            Notwithstanding
Article 9, this Section 10.2(g) will control any inquiries, assessments, proceedings or similar events
with respect to Taxes. Buyer will promptly notify Seller: (i) upon receipt by Buyer or any Affiliate of Buyer of any notice
of any audit or examination of any Tax Return of the Company relating to any Pre-Closing Tax Period or Straddle Period and any
other proposed change or adjustment, claim, dispute, arbitration or litigation related to Taxes from any Tax authority relating
to any Pre-Closing Tax Period or Straddle Period (a “Tax Matter”); or (ii) prior to Buyer or the Company
initiating any Tax Matter with any Tax authority relating to any Pre-Closing Tax Period or Straddle Period (any such initiation
shall be subject to Seller’s approval, not to be unreasonably withheld, conditioned or delayed). Seller may, at Seller’s
sole cost and expense, participate in and, upon written notice to Buyer, assume the defense of any such Tax Matter; provided that
the failure of Buyer to provide notices as required under this Section 10.2(g) will not negate Buyer’s right
to indemnification under this Section 10.2 and Article 9 with respect to Tax liabilities resulting from
such Tax Matter except to the extent that Seller is prejudiced as a result of such failure. If Seller assumes such defense, then
Seller will have the authority, with respect to any Tax Matter, to represent the interests of the Company before the relevant Tax
authority and Seller will have the right to control the defense, compromise or other resolution of any such Tax Matter, subject
to the limitations contained herein, including responding to inquiries, and contesting, defending against and resolving any assessment
for additional Taxes or notice of Tax deficiency or other adjustment of Taxes of, or relating to, such Tax Matter. If Seller has
assumed such defense, then Seller will be entitled to defend and settle such Tax Matter; provided, however, that Seller will not
enter into any settlement of or otherwise resolve any such Tax Matter to the extent that it adversely affects the Tax liability
of Buyer, the Company or any Affiliate of the foregoing for a post-Closing Tax period without the prior written consent of Buyer,
which consent will not be unreasonably withheld, conditioned or delayed. Seller will keep Buyer informed with respect to the commencement,
status and nature of any such Tax Matter and will, in good faith, allow Buyer to consult with Seller regarding the conduct of or
positions taken in any such proceeding. Buyer shall have the right (but not the duty) to participate in the defense of such Tax
Matter and to employ counsel, solely at its own expense, separate from the counsel employed by Seller. Except as otherwise provided
in this Section 10.2(g), Buyer shall have the right, at its own expense, to exercise control at any time over any Tax
Matter regarding any Tax Return of the Company (including the right to settle or otherwise terminate any contest with respect thereto).

 

(h)            Any
refunds for Taxes (including any interest in respect thereof actually received from a Taxing Authority), net of reasonable expenses
and net of any income Taxes of Buyer, the Company or any of their respective Affiliates attributable to such refund, actually received
by Buyer or the Company, and any amounts credited against Taxes to which Buyer, the Company, or any of their respective Affiliates
become entitled and that reduce or could reduce the Taxes otherwise payable by Buyer, the Company, or any of their respective Affiliates
(including by way of any amended tax return), related to, or resulting or arising, directly or indirectly from Taxes of the Company
for any Pre-Closing Tax Period or Pre-Closing Straddle Period shall be property of Seller (excluding any refund or credit attributable
to any loss in a tax year (or portion of a Straddle Period) beginning after the Closing Date applied (e.g., as a carryback) to
income in a tax year (or portion of a Straddle Period) ending on or before the Closing Date).

 

(i)             Notwithstanding
anything in this Agreement to the contrary, the provisions of this Section 10.2 will survive for the full period of
all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus thirty (30) days and,
except to the extent specifically set forth in Section 10.2(g) above, will be subject to the provisions of Article 9
as if an indemnification obligation pursuant to this Section 10.2 is an indemnification obligation pursuant to Article 9.

 

    	 	- 57 -	 

     

    

 

10.3.         PADS
Purchase Option. Seller is the owner of one hundred percent (100%) of the issued and outstanding equity of PADS (the “PADS
Equity”). PADS is the holder of a medical marijuana dispensary permit, registration number D18-2007. Provided that Buyer
shall not have terminated this Agreement during the Due Diligence Period, Seller shall grant to Buyer the right, but not the obligation,
in Buyer’s sole discretion, to purchase all, but not less than all, of the PADS Equity (the “Option”)
on a fully-diluted basis. Buyer may exercise the Option at any time during the period commencing on the expiration of the Due Diligence
Period and continuing to the the eighteen (18) month anniversary of the Closing Date (the “Option Period”) upon
written notice to Seller. If Buyer terminates this Agreement during the Due Diligence Period, the Option shall be null and void.
The purchase price for the PADS Equity shall be based on an enterprise value (on a cash-and-debt-free basis) of [***]. Upon exercise
of the Option, the closing on the purchase and sale of the PADS Equity shall be consummated as soon as practicable thereafter upon
such terms and conditions as are set forth on Exhibit E hereto. During the Option Period, Seller shall provide to Jushi:
(a) within thirty (30) days of the end of each calendar month, unaudited financial statements of PADS for such calendar month;
(b) any updates, revisions or other information material to PADS financial projections through the end of the Option Period;
(c) any updates, revisions or other information material to PADS construction of its third dispensary location; (d) any
information regarding PADS seeking or obtaining approval to open its third dispensary location for business to the public, and
the expected timing of such opening; and (e) any other information Buyer may request in its reasonable discretion. Buyer will
comply with, and will cause its Affiliates and their respective Representatives to comply with, all of the confidentiality obligations
of JMGT under the NDA with respect to the information disclosed pursuant to this Section 10.3. Notwithstanding anything
contained herein to the contrary, Buyer may assign its rights under this Section 10.3 in its sole discretion, provided
that in the event that Buyer assigns its rights under this Section 10.3 to an unaffiliated third party, [***]. For
the avoidance of doubt, Buyer shall have the sole right and discretion to determine the assignee and the amount and form of consideration
to be received by Buyer in connection with any assignment pursuant to this Section 10.3.

 

10.4.         Litigation
Support. In the event and for so long as any Party is actively contesting or defending against any Claim in connection with:
(a) the Transaction, or (b) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence,
event, incident, action, failure to act, or transaction on or prior to the Closing Date involving the Company, each of the other
Parties will cooperate with such Party and its counsel in the contest or defense, make available such Party’s personnel,
and provide such testimony and access to his, her, or its books and records as shall be necessary in connection with the contest
or defense, all at the sole cost and expense of the contesting or defending Party (unless the contesting or defending Party is
entitled to indemnification therefor in accordance with the terms of this Agreement).

 

10.5.         Change
of Ownership. To the extent that any additional filings are required by a Governmental Authority in connection with the change
of ownership of the Company, Buyer, Seller and the Company, as applicable, shall cooperate to prepare and make such filings within
the time period required by such Governmental Authority.

 

    	 	- 58 -	 

     

    

 

10.6.         Confidentiality.
Seller has had access to, and has gained knowledge with respect to, financial results of the Business, information concerning customers
and suppliers of the Business, and other confidential or proprietary information concerning the Company that is not shared by the
Company and other Affiliates of Seller (the “Confidential Information”). Seller acknowledges that unauthorized
disclosure or misuse of the Confidential Information, whether before or after the Closing, could cause irreparable damage to the
Company and Buyer after to the Closing. The Parties also agree that covenants by Seller not to make unauthorized disclosures of
the Confidential Information are essential to the growth and stability of the business of the Company and Buyer. Accordingly, Seller
agrees that, beginning on the Closing Date and continuing until the two (2) year anniversary of the Closing Date, they will
not use or disclose any Confidential Information obtained in the course of their past connection with the Business, except to the
extent required for the performance of any duties under any documents or agreements entered into with the Company, Buyer, or any
of their respective Affiliates, if any, and in accordance with that Person’s policies regarding Confidential Information.
Notwithstanding the foregoing, Seller may disclose the Confidential Information: (a) to Seller’s Affiliates and Representatives,
so long as the receiving party is subject to written obligations of confidentiality in favor of Seller at least as stringent as
those set forth herein and provided Seller is responsible to Buyer for all disclosures of such Confidential information by Seller’s
Affiliates and Representatives, (b) to the extent required by Law or legal process or any Governmental Authority, or in connection
with the defense or enforcement of Seller’s rights and obligations under this Agreement or another agreement with the Company,
Buyer or any of their respective Affiliates, or (c) to the extent such Confidential Information becomes publicly available
through no breach of this Agreement or other fault of Seller, its Affiliates or any of their respective Representatives. If Seller
or any of its Affiliates is requested or required by Law or legal process to disclose any Confidential Information, such Person
will notify Buyer promptly of the request or requirement so that Buyer may seek an appropriate protective order at its sole expense
or waive compliance with the provisions of this Section 10.6. If in the absence of a protective order or the receipt
of a waiver hereunder, such Person is, on the advice of counsel, compelled to disclose any Confidential Information to any Governmental
Authority or else stand liable for contempt, such Person may disclose such Confidential Information to such Governmental Authority;
provided, however, that the disclosing party will use commercially reasonable efforts to obtain, at the request and sole expense
of Buyer, an Order or other assurance that confidential treatment will be accorded to such portion of the Confidential Information
required to be disclosed as Buyer may designate.

 

10.7.         Insurance
Claims. Any Insurance Claim (including, without limitation, any Claim for benefits arising therefrom or related thereto) existing
on the Closing Date that was made under an Insurance policy or other contract, plan or arrangement pertaining to Seller or any
of its Affiliates (other than the Company) shall remain the responsibility of Seller and/or its applicable Affiliate (other than
the Company) after Closing, including all Liabilities arising therefrom and all proceeds derived from such Insurance Claim. Any
Insurance Claim (including, without limitation, any Claim for benefits arising therefrom or related thereto) arising after the
Closing Date directly out of an event occurring prior to the Closing Date, and all Liabilities arising therefrom, shall be made
under an Insurance policy or other contract, plan or arrangement pertaining to Seller or its Affiliates, and shall be the sole
responsibility of Seller and its Affiliates, unless such Claim is made under an Insurance policy or other contract, plan or arrangement
that is held by the Company after Closing. The Parties will reasonably cooperate, including the execution of assignments of rights
and other documents, as may be necessary or desirable to effectuate the intent of this Section 10.7. The provisions of this
Section 10.7 shall survive the Closing Date.

 

    	 	- 59 -	 

     

    

 

ARTICLE 11

MISCELLANEOUS

 

11.1.       Further
Assurances. Following the Closing Date, each Party will cooperate in good faith with each other Party and will take all commercially
reasonable actions which may be reasonably necessary or advisable to carry out and consummate the Transaction.

 

11.2.       Notices.
Unless otherwise provided in this Agreement, any agreement, notice, request, instruction or other communication to be given hereunder
by any Party to the other will be in writing and (a) delivered personally (such delivered notice to be effective on the date
it is delivered), (b) deposited with a reputable overnight courier service for next Business Day delivery (such couriered
notice to be effective one (1) Business Day after the date it is sent by courier), (c) sent by facsimile transmission
(such facsimile notice to be effective on the date that confirmation of such facsimile transmission is received), with a confirmation
sent by way of one of the above methods, or (d) sent by e-mail (with electronic confirmation of delivery or receipt), as follows:

 

If to Seller or the Company,
addressed to:

 

c/o Vireo Health International, Inc.

Attention: General Counsel

207 S. 9th Street

Minneapolis MN 55402

Email: [***]

 

If to Buyer, addressed
to:

 

c/o Jushi Inc

Attn: Legal Department

1800 NW Corporate
Blvd, Suite 200

Boca Raton, FL 33431

Email:[***]

 

Any Party may designate in a writing to
any other Party any other address or facsimile number to which, and any other Person to whom or which, a copy of any such notice,
request, instruction or other communication should be sent.

 

11.3.       Governing
Law; Dispute Resolution.

 

(a)          Governing
Law. All issues and questions concerning the application, construction, validity, interpretation, and enforcement of this Agreement
shall be governed by and construed in accordance with the internal laws of the Commonwealth of Pennsylvania, without giving effect
to any choice or conflict of law provision or rule (whether of the Commonwealth of Pennsylvania or any other jurisdiction)
that would cause the application of laws of any jurisdiction other than those of the Commonwealth of Pennsylvania.

 

    	 	- 60 -	 

     

    

 

(b)            Jurisdiction
and Venue. The Parties hereby agree that any suit, action, or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort,
or otherwise, shall be brought exclusively in the state courts of the Commonwealth of Pennsylvania located in the City of Philadelphia.
Each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom)
in any such suit, action, or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may
now or hereafter have to the laying of the venue of any such suit, action, or proceeding in any such court or that any such suit,
action, or proceeding which is brought in any such court has been brought in an inconvenient forum.

 

(c)            Waiver
of Jury Trial. EACH OF THE PARTIES WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OR RELATED TO THIS AGREEMENT IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
PARTIES AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER SUCH PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS
OR OTHERWISE. THE PARTIES AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS
SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT.

 

11.4.         Expenses.
Except to the extent expressly provided to the contrary in this Agreement: (a) Seller will pay all legal, accounting and other
expenses of (i) Seller related to this Agreement and (ii) the Company related to this Agreement that are incurred prior
to the Closing Date, and (b) Buyer will pay all legal, accounting and other expenses of (i) Buyer related to this Agreement
and (ii) the Company related to this Agreement that are first incurred on or after the Closing Date.

 

11.5.         Titles.
The headings of the articles and sections of this Agreement are inserted for convenience of reference only, and will not affect
the meaning or interpretation of this Agreement.

 

11.6.         Waiver.
No failure of any Party to require, and no delay by any Party in requiring, any other Party to comply with any provision of this
Agreement will constitute a waiver of the right to require such compliance. No failure of any Party to exercise, and no delay by
any Party in exercising, any right or remedy under this Agreement will constitute a waiver of such right or remedy. No waiver by
any Party of any right or remedy under this Agreement will be effective unless made in writing. Any waiver by any Party of any
right or remedy under this Agreement will be limited to the specific instance and will not constitute a waiver of such right or
remedy in the future.

 

    	 	- 61 -	 

     

    

 

11.7.         Effective;
Binding. This Agreement will be effective upon the due execution hereof by each Party. Upon becoming effective, this Agreement
will be binding upon each Party and upon each successor and assignee of each Party and will inure to the benefit of, and be enforceable
by, each Party and each successor and assignee of each Party; provided, however, that, except as provided for in the immediately
following sentence, no Party may assign any right or obligation arising pursuant to this Agreement without first obtaining the
written consent of the other Parties. Buyer may assign all or a portion of its rights and obligations under this Agreement to one
or more Affiliates of Buyer upon prior written notice to Seller, provided that Buyer will remain liable hereunder notwithstanding
any such assignment.

 

11.8.         Entire
Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter of this Agreement
and supersedes each course of conduct previously pursued, accepted or acquiesced in, and each written or oral agreement and representation
previously made, by the Parties with respect to the subject matter of this Agreement.

 

11.9.         Modification.
No course of performance or other conduct hereafter pursued, accepted or acquiesced in, and no oral agreement or representation
made in the future, by any Party, whether or not relied or acted upon, and no usage of trade, whether or not relied or acted upon,
will modify or terminate this Agreement, impair or otherwise affect any obligation of any Party pursuant to this Agreement or otherwise
operate as a waiver of any such right or remedy. No modification of this Agreement will be effective unless made in writing duly
executed by Buyer and Seller.

 

11.10.       Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original and all of which taken together
will constitute one and the same instrument. Any Party may execute this Agreement by facsimile (or other means of electronic transmission,
such as by electronic mail in “.pdf” form) signature and the other Party will be entitled to rely on such facsimile
(or other means of electronic transmission) signature as evidence that this Agreement has been duly executed by such Party. Any
Party executing this Agreement by facsimile (or other means of electronic transmission) signature will immediately forward to the
other Party an original signature page by overnight mail.

 

11.11.       Time
is of the Essence. It is understood by each of the Parties that time is of the essence hereof in connection with all obligations
of under this Agreement.

 

11.12.       Usage
of Terms. Except where the context otherwise requires, words importing the singular number will include the plural number and
vice versa. Use of the word “including” means “including, without limitation.”

 

11.13.       References
to Articles, Sections, Exhibits and Schedules. All references in this Agreement to Articles, Sections (and other subdivisions),
Exhibits and Schedules refer to the corresponding Articles, Sections (and other subdivisions), Exhibits and Schedules of or attached
to this Agreement, unless the context expressly, or by necessary implication, otherwise requires. The Exhibits and Schedules identified
in this Agreement are incorporated herein by reference and made a part hereof.

 

    	 	- 62 -	 

     

    

 

11.14.       Press
Releases and Public Announcements. No Party shall issue any press release or make any public announcement relating to
the subject matter of this Agreement prior to the Closing without the prior written approval of Buyer and Seller; provided, however,
that any Party may make any public disclosure it believes in good faith is required by applicable Law or any listing or trading
agreement concerning its or its Affiliates publicly traded securities (in which case the disclosing Party will use commercially
reasonable efforts to advise the other Parties prior to making the disclosure).

 

11.15.       No
Third-Party Beneficiaries. Except to the extent expressly provided to the contrary in this Agreement, this Agreement shall
not confer any rights or remedies upon any Person other than the Parties and their respective successors and permitted assigns.

 

11.16.       Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

 

11.17.       Attorneys’
Fees. In the event of any controversy arising under this Agreement or and ancillary agreement, the prevailing Party in such
controversy will be entitled to receive such Party’s fees and costs, including reasonable attorneys’ fees, from the
other Party or Parties to such controversy.

 

11.18.       Specific
Performance. Each Party acknowledges and agrees that the other Parties would be damaged irreparably in the event any provision
of this Agreement is not performed in accordance with its specific terms or otherwise is breached, so that a Party shall be entitled
to seek injunctive relief to prevent breaches of this Agreement and to enforce specifically this Agreement and the terms and provisions
hereof in addition to any other remedy to which such Party may be entitled, at law or in equity. In particular, the Parties acknowledge
that the Business of the Company and the Option to purchase the PADS Equity are unique and recognize and affirm that in the event
Seller breach this Agreement, money damages would be inadequate and Buyer would have no adequate remedy at law, so that Buyer shall
have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights and the other Parties’
obligations hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable
relief.

 

    	 	- 63 -	 

     

    

 

11.19.       GENERAL
RELEASE AND DISCHARGE. BY VIRTUE OF SELLER’S EXECUTION AND DELIVERY OF THIS AGREEMENT, AS OF THE CLOSING AND THEREAFTER,
SELLER, FOR AND ON BEHALF OF ITSELF AND ITS SUCCESSORS, ASSIGNS, BENEFICIARIES, ADMINISTRATORS, AND AFFILIATES (THE “RELEASING
PARTIES”) DO HEREBY FULLY AND IRREVOCABLY REMISE, RELEASE AND FOREVER DISCHARGE THE COMPANY, AND THE COMPANY’S
CURRENT AND FORMER DIRECTORS, OFFICERS AND MEMBERS FROM ANY AND ALL ACTIONS (AS DEFINED HEREIN) AND LIABILITIES (AS DEFINED HEREIN)
OF EVERY KIND, EITHER IN LAW OR IN EQUITY, WHETHER CONTINGENT, MATURE, KNOWN OR UNKNOWN, OR SUSPECTED OR UNSUSPECTED, INCLUDING,
WITHOUT LIMITATION, ANY CLAIMS ARISING UNDER ANY FEDERAL, STATE, LOCAL OR MUNICIPAL LAW, COMMON LAW OR STATUTE, WHETHER ARISING
IN CONTRACT OR IN TORT, AND ANY CLAIMS ARISING UNDER ANY OTHER LAWS OR REGULATIONS OF ANY NATURE WHATSOEVER, THAT SELLER EVER HAD,
NOW HAVE OR MAY HAVE, FOR OR BY REASON OF ANY CAUSE, MATTER OR THING WHATSOEVER, FROM THE BEGINNING OF THE WORLD TO THE DATE
HEREOF. NOTWITHSTANDING THE FOREGOING, THE RELEASING PARTIES DO NOT WAIVE OR RELEASE ANY RIGHTS BASED UPON, ARISING OUT OF OR RELATING
TO RIGHTS IN FAVOR OF SELLER CREATED PURSUANT TO THE TERMS OF THIS AGREEMENT AND ANY AGREEMENT ENTERED IN CONNECTION WITH THIS
AGREEMENT. Notwithstanding anything to the contrary, none of the Releasing Parties are releasing any claims against the individuals
comprising the Company’s current or former directors or officers except in connection with the actions and omissions of such
individuals in their respective capacities for the Company. As an example only and without limiting the foregoing sentence, an
individual who serves as an officer of an Affiliate of the Company as well as an officer of the Company is not being released by
the Releasing Parties for Actions or Liabilities arising out of such individual’s actions or omissions in her capacity as
an officer of the Affiliate of the Company.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	- 64 -	 

     

    

 

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

 	 	COMPANY:
	 	 
	 	By: 	/s/ Dr. Kyle Kingsley
	 	Name:	 Dr. Kyle Kingsley
	 	Title: 	CEO
	 	 
	 	SELLER:
	 	 
	 	By: 	/s/ Dr. Kyle Kingsley
	 	Name: 	Dr. Kyle Kingsley
	 	Title:	CEO
	 	 
	 	BUYER:
	 	 
	 	By: 	/s/ Jon Barack
	 	Name: 	Jon Barack
	 	Title:	 President
	 	 
	 	JUSHI:
	 	 
	 	By:	 /s/ Jon Barack
	 	Name: 	Jon Barack
	 	Title: 	President

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