Document:

Exhibit 10.2

 

INTELLECTUAL PROPERTY PURCHASE AND ASSIGNMENT
AGREEMENT

 

This “INTELLECTUAL
PROPERTY PURCHASE AND ASSIGNMENT AGREEMENT”, including all Exhibits and Schedules referenced and attached hereto, (together,
the “Agreement”) is effective as of the later date of execution below (the “Effective Date”),
and is made and entered into by and between:

 

urban-gro, Inc.,
a Colorado corporation with its principal offices at 1751 Panorama Point, Unit G, Lafayette, CO 80026 (“urban-gro”,
or “Assignee”);

 

Edyza Sensors,
Inc., a Delaware corporation with offices at 4590 MacArthur Blvd., Suite 357, Newport Beach, CA 92660, (“EDYZA”,
or “Assignor”).

 

PURPOSE

 

The purpose of
this Agreement is to set forth the mutually binding terms and conditions of an agreement between urban-gro and EDYZA with respect
to their “Letter of Intent” of March 20, 2017, attached as Exhibit A, regarding the assignment of certain intellectual
property (“IP”) rights from EDYZA to urban-gro.

 

Additional terms
and conditions concerning the parties’ respective proprietary rights concerning any patent application assignment are further
disclosed in the parties’ “Master Distributor & Supplier Agreement” to be executed concurrently (the “Supplier
Contract”), concerning the manufacture, use, sale, and/or import into the United States of any goods covered by the patent
applications set forth in Schedule A to this Agreement (the “Patent Applications”), provided however that, to
the extent that any conflict exists between the terms of this Agreement and the Supplier Contract, the terms of this Agreement
shall take precedence.

 

The parties together
agree that (a) EDYZA is the owner of all right, title, and interest to the claimed inventions described in the Patent Applications;
(b) EDYZA desires to assign the claimed inventions to urban-gro; (c) urban-gro desires to acquire the entire right, title, and
interest in and to the claimed inventions; and (d) the assignment of the claimed inventions is made in consideration of, and shall
be subject to, the following terms and conditions:

 

1.       Assignment
of Claimed Inventions.

 

1.1.       Assignment.
Assignor hereby sells, assigns, and transfers to Assignee, the full and exclusive right, title, and interest to the claimed inventions
in the United States and its territorial possessions and in all foreign countries and to all Letters Patent or similar legal protection
in the United States and its territorial possessions and in any and all foreign countries to be obtained for the invention by the
Patent Applications or any continuation, continuation-in-part, divisional, reexamination, reissue and/or any application claiming
priority thereof, including any legal equivalent thereof, in a foreign country for the full term or terms for which the same may
be granted.

 

Assignor shall,
to confirm the assignment of the claimed inventions, execute concurrently with the execution of this Agreement the assignment document
attached hereto as Exhibit B, which is incorporated into this Agreement in its entirety, and may be recorded in patent offices,
as appropriate.

 

 

 

    	 	1	 

     

    

 

1.2.       Cooperation.
Assignor agrees that it will, at Assignee’s sole cost and expense: (a) assist Assignee in the filing and prosecution of any
patent application(s) covering the claimed inventions; (b) communicate to Assignee or its representatives any facts known to Assignor
respecting the improvements and inventions covered by the Patent Applications; (c) testify in any legal proceedings; (d) sign all
lawful papers, execute all divisional, continuation, continuation-in-part, and reissue applications; (e) make all rightful oaths;
and (f) take all other reasonable actions to aid Assignee, its successors, assigns and nominees to perfect such right, title, and
interest in the claimed inventions in Assignee and to obtain and enforce proper protection for the claimed inventions in all countries,
and asserts that it will not execute any agreements inconsistent therewith.

 

1.3.       Further
Support. Assignor shall transfer, or cause to be transferred to, Assignee (or its designee or representatives) the complete
original files related to the claimed inventions, all documents and files in its possession, custody or control, including those
in the possession, custody or control of attorneys or agents of Assignor, that are related to the procurement of any Letters Patent
from the relevant government entities and all additional information that Assignee may need to continue prosecution of the claimed
inventions.

 

1.4.       License
to Assignor. Notwithstanding the assignment of the claimed inventions described above in Section 1.1, pursuant to this Agreement,
upon assignment of the claimed inventions to Assignee, Assignee shall be deemed to have granted the following licenses to Assignor
as follows:

 

1.4.1.       License
per Supplier Contract. For so long as Assignor acts as Assignee’s exclusive supplier of any goods covered by the claimed
inventions pursuant to the Supplier Contract, Assignee grants to Assignor an exclusive, limited, revocable right and license to
practice the claimed inventions, including any later improvements identified by the Assignee which are necessary to Assignor’s
performance of the Supplier contract, in the United States for the purposes of Assignor’s performance under the Supplier
Contract. For the avoidance of confusion, the foregoing shall not be construed to limit the Assignee’s ability to license
the claimed inventions, including any later improvements, so long as such license does not conflict with the exclusivity granted
to Assignor in the Supplier contract.

 

1.4.2.       License
to Claimed Invention. Upon execution of this Agreement, Assignee grants to Assignor a limited, revocable, non-exclusive, non-fee
bearing, non-transferable and non-assignable right and license (the “License”) to practice the claimed invention, including
any later improvements identified by the Assignee, in U.S. Patent Serial No. 15/626,085 for “SENSOR BUS ARCHITECTURE FOR
MODULAR SENSOR SYSTEMS” described in Schedule A without restrictions, subject only to Assignor’s prior written consent,
such consent not to be unreasonably withheld or delayed.

 

The foregoing License
shall be subject to five (5) year terms, and shall expire at the end of any five (5) year term period unless the parties provide
mutual written consent and agreement to renew the License prior to the expiration of the five (5) year term then in effect, such
consent and agreement not to be unreasonably withheld or delayed.

 

The foregoing License
may only be revoked by Assignee in the event that Assignor is in material uncured breach (to the extent that any such breach is
capable of cure) of any of the License’s terms, this Agreement, or the Supplier Contract, as the case may be.

 

 

 

 

    	 	2	 

     

    

 

2.       Purchase
Consideration. In full consideration of the assignment of the claimed inventions to Assignee under this Agreement, Assignee
agrees to:

 

(a)       execute
concurrently with this Agreement the proposed Supplier Contract concerning the production and distribution of goods (including
those which are subject to the claimed inventions) between Assignor and Assignee;

 

(b)       execute
concurrently with this Agreement the proposed “Simple Agreement for Future Equity” (the “SAFE”) for Assignee’s
investment in EDYZA; and

 

(c)       make
payment under the SAFE in an amount equal to four hundred thousand dollars ($400,000.00 USD) to EDYZA, in accordance with the terms
of the SAFE.

 

3.       Representations
and Warranties. Assignor hereby represents and warrants that:

 

(a)       Assignor
owns full and complete right, title, and interest in and to the claimed inventions and has the full power to assign its entire
right, title, and interest in and to the claimed inventions;

 

(b)       Assignor
does not have any agreement, license, arrangement, obligation, or understanding, express or implied or by operation of law, with
any third party or organization relating to or limiting the ownership of, or right to exercise or transfer, all or any of the claimed
inventions and the assignment and transfer of the claimed inventions pursuant to this Agreement will not be in violation of any
covenant, agreement or other obligation of Assignor;

 

(c)       Assignor
has not performed any acts or made any statements, or failed to perform any acts or make any statements, which would adversely
affect either the validity or enforceability of any of the claimed inventions; and

 

(d)       for
each of the claimed inventions, and to the best of the Assignor’s knowledge, there have not been and are not currently pending
or threatened, and Assignor has no reason to believe there will be, any: (i) liens or other encumbrances; (ii) consent or other
settlement agreements; (iii) claims of infringement of the intellectual property rights of any third party or challenges to the
inventorship, ownership or the validity of the claimed inventions; or (iv) any administrative proceedings or actions before the
United States Patent and Trademark Office.

 

4.       Enforcement.

 

4.1.       No
Challenge. Assignor shall not initiate or participate or assist, formally or informally, directly or indirectly, in any challenge,
litigation, investigation, reissue, reexamination, cancellation or other opposition in any jurisdiction (each, an “Adverse
Proceeding”) to the extent such Adverse Proceeding challenges the scope, enforceability, validity, ownership or other right
pertaining to the claimed inventions.

 

4.2.       Reasonable
Assistance. Upon the request of Assignee, Assignor shall reasonably cooperate with Assignee, at Assignee’s sole cost
and expense, in any investigation, litigation or other proceeding instituted by Assignee after the Effective Date relating to the
claimed inventions.

 

 

 

 

    	 	3	 

     

    

 

5.       Confidentiality.
The parties acknowledge and agree that the information contained herein shall be kept confidential and shall not, without prior
written consent of the parties, be disclosed in any manner whatsoever, in whole or in part, except as necessary to perform under
or to enforce the terms and conditions of this Agreement or as may be required by law, including subpoena and court order. However,
each party shall each have the right to disclose information to its respective directors, officers, employees, prospective managers,
and legal, financial and advertising advisers (collectively, the “Agents”) provided that such Agents shall each be
bound to treat said information as confidential.

 

6.       General
Terms. The relationship between the parties shall be as independent contractors. Nothing contained in this Agreement shall
be deemed to create any association, partnership, employment, joint venture or agency relationship between the parties. Neither
party has any right or authority to assume or create any obligations of any kind or to make any representation or warranty on behalf
of the other party, whether express or implied, or to bind the other party in any respect whatsoever. This Agreement is binding
upon and shall inure to the benefit of the parties hereto and their successors and assigns. To the full extent permitted by law,
this Agreement shall be governed by and construed exclusively in accordance with the laws of the State of California, excluding
its conflict of law principles. The sole and exclusive jurisdiction for any action relating to this Agreement shall be the state
or federal courts in Los Angeles County in the State of California, and the parties consent to such jurisdiction and waive and
agree not to plead or claim that any such action or proceeding has been brought in an inconvenient forum. No waiver of any right,
remedy, default or breach of this Agreement by a party shall be deemed a waiver of any other right, remedy, default or breach.
All amendments and modifications of this Agreement shall be made by written document signed by all parties. If at any time, any
provision of this Agreement is or becomes illegal, invalid, or unenforceable, in any respect under the law of any jurisdiction,
the legality, validity, or enforceability of the remaining provisions shall in no way be affected or impaired. This Agreement may
be executed in counterparts and by electronic mail, and each counterpart shall constitute a valid, binding Agreement upon full
execution. This Agreement and the attached exhibit and schedules form the entire agreement between the parties relating to the
subject matter of this Agreement and supersede all prior communications, written or oral, between the parties.

 

(rest of page
intentionally left blank; signature page to immediately follow)

 

 

 

 

 

 

 

 

 

 

 

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF,
EDYZA and urban-gro have caused this Agreement to be signed by their duly authorized representatives.

 

 

Assignor/ EDYZA SENSORS, INC. 

 

		 	 

                            

			
	Signature

         

         
	 	 
			
	

        Printed Name & Title

         

         
	 	 
			
	Date	 	 
	 	 	Assignee/urban-gro, Inc.

         

         

			
	 	 	Signature

         

         

			
	 	 	Printed Name & Title

         

         

			
	 	 	Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

SCHEDULE A

 

PATENT APPLICATIONS

 

 

	U.S. Patent Application Serial No.	Application Date	Title of Application
	 	 	 
	15/626,079 	June 17, 2017	Modular sensor architecture for soil and water analysis at various depths frOm the surface
	 	 	 
	
        15/626,085

        
	
        June 17, 2017

        
	
        SENSOR BUS ARCHITECTURE FOR MODULAR SENSOR SYSTEMS

        

	 	 	 
	62/351,989	June 19, 2016	MODULAR SENSOR ARCHITECTURE FOR SOIL AND WATER ANALYSIS AT VARIOUS
        DEPTHS FROM THE SURFACE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

EXHIBIT A

 

LETTER OF INTENT

 

(see attached)

 

 

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

EXHIBIT B

 

INTELLECTUAL PROPERTY
ASSIGNMENT AGREEMENT

 

 

THIS INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT
(the “Agreement”) is dated as of _________________[MONTH] ____ [DAY], 20____ [YEAR], by and between

 

urban-gro, Inc.,
a Colorado corporation with its principal offices at 1751 Panorama Point, Unit G, Lafayette, CO 80026 (“Assignee”);
and

 

Edyza Sensors, Inc., a Delaware corporation
with offices at 4590 MacArthur Blvd., Suite 357, Newport Beach, CA 92660, (“Assignor”).

 

PURPOSE

 

Assignor and Assignee are parties to a “Intellectual
Property Purchase and Assignment Agreement”, dated as of _________________[MONTH] ____ [DAY], 20____ [YEAR] (the “Purchase
Agreement”).

 

Pursuant to the Purchase Agreement, Assignor
wishes to assign to Assignee, and Assignee wishes to acquire from Assignor, all right, title, and interest in and to the claimed
inventions set forth in Schedule 1 (the “Patent Applications”).

 

In consideration of the mutual promises
contained in the Purchase Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

ASSIGNMENT

 

Assignor hereby
sells, assigns, and transfers to Assignee, the full and exclusive right, title, and interest in and to the claimed invention in
the United States and its territorial possessions and in all foreign countries and to all Letters Patent or similar legal protection
in the United States and its territorial possessions and in any and all foreign countries to be obtained for the invention by the
patent applications or any continuation, continuation-in-part, divisional, reexamination, reissue and/or any application claiming
priority thereof, including any legal equivalent thereof, in a foreign country for the full term or terms for which the same may
be granted.

 

Assignor hereby
authorizes and requests the Commissioner of Patents and Trademarks of the United States Patent and Trademark Office and any Official
of any country or countries foreign to the United States of America whose duty it is to issue Letters Patent on patent applications
as aforesaid, to issue all such Letters Patent for the claimed invention to the Assignee, as the Assignee of the entire right,
title, and interest in, to and under the same, for the sole use and benefit of the Assignee in accordance with the terms of this
instrument.

 

Assignor hereby
covenants with Assignee that no assignment, grant, mortgage, license, or other agreement affecting the rights and property herein
conveyed has been made to others by the undersigned and that Assignor has full right to convey the entire right, title, and interest
herein sold, assigned, transferred and set over.

 

 

 

    	 	8	 

     

    

 

Assignor hereby
further covenants and agrees that the Assignee may apply for foreign Letters Patent on the claimed inventions and claim the benefits
of the International Convention, and that Assignor will, at any time, when called upon to do so by the Assignee communicate to
the Assignee as the case may be, any facts known to Assignee respecting the claimed inventions, and execute and deliver any and
all lawful papers that may be necessary or desirable to perfect the title to the claimed inventions, the Patent Applications and
the Letters Patent in the Assignee and that if reissues or reexaminations of the Letters Patent or disclaimers relating thereto,
or divisionals, continuations, or continuation-in-parts of the Patent Applications shall hereafter be desired by the Assignee,
the Assignee will, at any time, when called upon to do so by the Assignee sign all lawful papers, make all rightful oaths, execute
and deliver all such disclaimers and all divisional, continuation, continuation-in-part, reexamination, and reissue applications
so desired, and do all lawful acts requisite for the patent applications for such continuations, continuation-in-parts, divisionals,
reexaminations, or reissues and the procuring thereof and for the filing of such disclaimers and such patent applications, and
generally do everything possible to aid the Assignee to obtain and enforce proper patent protection for the claimed inventions
in all countries, at the expense of the Assignee.

 

 

 

 

(rest of page intentionally left blank;
signature page to immediately follow)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF, Assignor has duly executed
this Assignment as of the date set forth above.

 

	 	 	Assignor/Edyza Sensors, Inc., by
	 	 	 

                                                

                                                

                                                

	 	 	Signature
	 	 	 

                                                

                                                

                                                

	 	 	Printed Name & Title

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

SCHEDULE 1

 

PATENT APPLICATIONS

 

	U.S. Patent Application Serial No.	Application Date	Title of Application
	 	 	 
	15/626,079 	June 17, 2017	Modular sensor architecture for soil and water analysis at various depths frOm the surface
	 	 	 
	
        15/626,085
	
        June 17, 2017
	
        SENSOR BUS ARCHITECTURE FOR MODULAR SENSOR SYSTEMS

	 	 	 
	62/351,989	June 19, 2016	MODULAR SENSOR ARCHITECTURE FOR SOIL AND WATER ANALYSIS AT VARIOUS
        DEPTHS FROM THE SURFACE

 

 

 

 

 

 

 

 

 

    	 	11Exhibit 10.3

 

 

 

 

 

 

 

 

 

 

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

 

	 	 
	 	Page
	ARTICLE I PURCHASE AND SALE OF MEMBERSHIP INTERESTS	1
	Section 1.1 Sale and Issuance of Membership Interest	1
	Section 1.2 Closing; Delivery	1
	Section 1.3 Sale of Additional Interests	1
	Section 1.4 Use of Proceeds	3
	Section 1.5 Defined Terms Used in this Agreement	3
	 	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY	4
	Section 2.1 Organization, Good Standing, Power and Qualification	4
	Section 2.2 Capitalization	5
	Section 2.3 Subsidiaries	5
	Section 2.4 Authorization	5
	Section 2.5 Valid Issuance of Interests	6
	Section 2.6 Governmental Consents and Filings	6
	Section 2.7 Litigation	6
	Section 2.8 Intellectual Property	7
	Section 2.9 Compliance with Other Instruments	7
	Section 2.10 Agreements; Actions	8
	Section 2.11 Certain Transactions	8
	Section 2.12 Rights of Registration and Voting Rights	9
	Section 2.13 Property	9
	Section 2.14 Financial Statements	9
	Section 2.15 Changes	9
	Section 2.16 Employee Matters	11
	Section 2.17 Tax Returns and Payments	12
	Section 2.18 Insurance	12
	Section 2.19 Employee Agreements	12
	Section 2.20 Permits	12
	Section 2.21 Corporate Documents	12
	Section 2.22 Environmental and Safety Laws	13
	Section 2.23 Disclosure	13
	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF PURCHASER	14
	Section 3.1 Authorization	14
	Section 3.2 Purchase Entirely for Own Account	14
	Section 3.3 Disclosure of Information	14
	Section 3.4 Restricted Securities	14
	Section 3.5 No Public Market	15
	Section 3.6 Accredited Investor	15
	Section 3.7 No General Solicitation	15
	Section 3.8 Principal Place of Business	15
	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE MEMBERS	15
	Section 4.1 Authorization	15
	Section 4.2 Litigation	15
	Section 4.3 Agreements	15
	Section 4.4 Voting Rights	15
	 

                                   

    	 	i	 

     

    

	 

                                   
	 
	Section 4.5 Encumbrances	15
	Section 4.6 Representations and Warranties	16
	 	 
	ARTICLE V COVENANTS	16
	Section 5.1 Member Membership Interests	16
	Section 5.2 Equity Issuances	16
	Section 5.3 Right to Conduct Activities	16
	 	 
	ARTICLE VI CONDITIONS TO PURCHASER’S OBLIGATIONS AT CLOSING	16
	Section 6.1 Representations and Warranties	16
	Section 6.2 Performance	17
	Section 6.3 Compliance Certificate	17
	Section 6.4 Qualifications	17
	Section 6.5 Managers	17
	Section 6.6 Indemnification Agreement	17
	Section 6.7 Voting Agreement	17
	Section 6.8 Commercial Agreement	17
	Section 6.9 Amended and Restated Operating Agreement	17
	Section 6.10 Secretary’s Certificate	17
	Section 6.11 Proceedings and Documents	17
	 	 
	ARTICLE VII CONDITIONS OF THE COMPANY’S AND THE MEMBERS’ OBLIGATIONS AT CLOSING	 
	Section 7.1 Representations and Warranties	18
	Section 7.2 Performance	18
	Section 7.3 Qualifications	18
	Section 7.4 Voting Agreement	18
	Section 7.5 Commercial Agreement	18
	Section 7.6 Amended and Restated Operating Agreement	18
	 	 
	ARTICLE VIII MISCELLANEOUS	18
	Section 8.1 Survival of Warranties	18
	Section 8.2 Successors and Assigns	18
	Section 8.3 Governing Law	18
	Section 8.4 Counterparts	18
	Section 8.5 Titles and Subtitles	19
	Section 8.6 Notices	19
	Section 8.7 No Finder’s Fees	19
	Section 8.8 Attorneys’ Fees	19
	Section 8.9 Amendments and Waivers	19
	Section 8.10 Severability	19
	Section 8.11 Delays or Omissions	19
	Section 8.12 Entire Agreement	20
	Section 8.13 Dispute Resolution	20
	Section 8.14 No Commitment for Additional Financing	20
	Section 8.15 Conflicting Agreements	21

 

 

 

    	 	ii	 

     

    

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

THIS MEMBERSHIP INTEREST
PURCHASE AGREEMENT (this “Agreement”), is made as of the 15 day of February, 2018 by and among Total Grow Holdings,
LLC, a Delaware limited liability company d/b/a Total Grow Control, LLC (the “Company”), urban-gro, Inc., a
Colorado corporation ( “Purchaser”), and the persons listed as “Members” on the signature pages
to this Agreement (each a “Member” and together the “Members”).

 

The parties hereto hereby agree as follows:

 

ARTICLE I

PURCHASE AND SALE OF MEMBERSHIP INTERESTS

 

Section 1.1Sale and Issuance of Membership Interest.

 

(a)       Subject
to the terms and conditions of this Agreement, Purchaser agrees to purchase at the Closing and the Company agrees to sell and issue
to Purchaser at the Closing a five percent (5%) membership interest in the Company on a fully-diluted basis immediately subsequent
to the Initial Closing (as defined below) (the “Membership Interests”), for an aggregate purchase price of $125,000.
The Membership Interests issued to Purchaser pursuant to this Agreement (including any Membership Interests issued at the Initial
Closing and any other Closing) shall be referred to in this Agreement as the “Interests.”

 

Section 1.2Closing; Delivery.

 

(a)        The
initial purchase and sale of the Interests shall take place remotely via the exchange of documents and signatures, on the date
hereof, or at such other time and place as the Company, the Members and Purchaser mutually agree upon, orally or in writing (which
time and place are designated as the “Initial Closing”). In the event there is an Option Closing (as defined
below), Second Option Closing (as defined below) and/or Purchase Right Closing (as defined below), “Closing”
shall apply to each such closing unless otherwise specified.

 

(b)       At
each Closing, the Purchaser shall receive the Interests being purchased by Purchaser at such Closing against payment of the purchase
price therefor by check payable to the Company or by wire transfer to a bank account designated by the Company.

 

Section 1.3Sale of Additional Interests.

 

(a)       The
Company hereby grants to Purchaser the option to purchase from the Company (the “Option”) up to an additional
five percent (5%) of the outstanding Membership Interests on a fully-diluted basis immediately subsequent to the Option Closing
(as defined below) (the “Option Interests”) at a purchase price extrapolated based upon a Company pre-money
valuation of $3,000,000 (the “Exercise Price”). The Purchaser may exercise the Option at any time on or after
June 30th, 2018 to and including August 31, 2018 (the “Exercise Period”) by delivering written notice thereof
to the Company (the “Exercise Notice”). The closing of an exercise of the Option (the “Option Closing”)
shall be within ten (10) business days of receipt of the Exercise Notice by the Company. If Purchaser delivers a Purchase Notice
to the Company or if the Exercise Notice is not delivered to the Company during the Exercise Period, the Option shall expire,
and be null and void and of no further force or effect. The Option Closing shall be conducted pursuant to the terms and provisions
of this Agreement as if it were the Initial Closing, and Purchaser shall deliver the Exercise Price in cash or other immediately
available funds to the Company and the Company shall issue the appropriate number of Option Interests to Purchaser.

 

 

 

    	 	1	 

     

    

 

(b)        By
written notice to Purchaser by the Company prior to the first anniversary of the date of this Agreement (the “Second
Option Notice”), the Company may grant to Purchaser the option to purchase from the Company (the “Second Option”)
up to an additional fifteen percent (15%) of the outstanding Membership Interests on a fully-diluted basis immediately subsequent
to the Second Option Closing (as defined below) (the “Second Option Interests”) at a purchase price extrapolated
based upon a Company pre-money valuation of $4,000,000 (the “Second Exercise Price”). The Purchaser may exercise
the Second Option at any time on or after the first anniversary of the date of this Agreement to and including the date that is
90 days thereafter (the “Second Exercise Period”) by delivering written notice thereof to the Company (the
“Second Exercise Notice”). The closing of an exercise of the Second Option (the “Second Option Closing”)
shall be within ten (10) business days of receipt of the Second Exercise Notice by the Company. If the Company does not deliver
a Second Option Notice, if Purchaser delivers a Second Purchase Notice to the Company or if the Second Exercise Notice is not
delivered to the Company during the Second Exercise Period, the Second Option shall expire, and be null and void and of no further
force or effect. The Second Option Closing shall be conducted pursuant to the terms and provisions of this Agreement as if it
were the Initial Closing, and Purchaser shall deliver the Second Exercise Price in cash or other immediately available funds to
the Company and the Company shall issue the appropriate number of Second Option Interests to Purchaser.

 

(c)        Each Member hereby grants to Purchaser the right to purchase from such Member (the “Purchaser Right”)
all of the outstanding Membership Interests on a fully-diluted basis immediately subsequent to the Purchase Right Closing (as defined
below) (the “Purchase Right Interests”) at a purchase price extrapolated based upon a Company valuation of $7,500,000
(the “Purchase Right Exercise Price”). The Purchaser may exercise the Purchase Right at any time on or after
the end of the 15 month anniversary of the date of this Agreement to and including the second anniversary of the date of this Agreement
(the “Purchase Right Exercise Period”) by delivering written notice thereof to such Member (the “Purchase
Right Exercise Notice”). The closing of an exercise of the Purchase Right (the “Purchase Right Closing”)
shall be within ten (10) business days of receipt of the Purchase Right Exercise Notice by such Member. If Purchaser delivers a
Purchase Right Exercise Notice to such Member or if the Purchase Right Exercise Notice is not delivered to such Member during the
Purchase Right Exercise Period, the Purchase Right shall expire, and be null and void and of no further force or effect. The Purchase
Right Closing shall be conducted pursuant to the terms and provisions of this Agreement as if it were the Initial Closing, and
Purchaser shall deliver the Purchase Right Exercise Price in cash or other immediately available funds to such Member and such
Member shall, and shall cause the Company to on its books, transfer the Purchase Right Interests to Purchaser.

 

 

 

    	 	2	 

     

    

 

Section 1.4Use of Proceeds.
The Company shall use the proceeds from the sale of the Interests for program development, product development, additional employees
and initial white-labeling of its Eden product to Purchaser’s Soleil brand.

 

Section 1.5 Defined Terms Used in this
Agreement. In addition to the terms defined above, the following terms used in this Agreement shall be construed to have the
meanings set forth or referenced below.

 

(a)        “Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly,
controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, manager,
member, officer or director of such Person.

 

(b)       “Amended and Restated Operating Agreement” means the Amended and Restated Limited Liability Company Agreement
among the Company, its managers, its members, and Purchaser, dated as of the date of the Initial Closing, in the form of Exhibit
D attached to this Agreement.

 

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

 

(d)        “Commercial
Agreement” means the Supply Agreement between the Company and Purchaser, dated as of the date of the Initial Closing,
in the form of Exhibit A attached to this Agreement.

 

(e)        “Company Covered Person” means, with respect to the Company as an “issuer” for purposes of
Rule 506 promulgated under the Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

 

(f)         “Company Intellectual Property” means all patents, patent applications, trademarks, trademark applications,
service marks, service mark applications, tradenames, entity names, copyrights, trade secrets, domain names, mask works, information
and proprietary rights and processes, similar or other intellectual property rights, subject matter of any of the foregoing, tangible
embodiments of any of the foregoing, licenses in, to and under any of the foregoing, and any and all such cases as are necessary
to the Company in the conduct of the Company’s business as now conducted and as presently proposed to be conducted.

 

(g)        “Indemnification Agreement” means the agreement between the Company and the director designated by Purchaser
pursuant to the Voting Agreement, dated as of the date of the Initial Closing, in the form of Exhibit B attached to this
Agreement.

 

 

 

    	 	3	 

     

    

 

 

 

(h)         “Key Employee” means any executive-level employee (including vice president-level positions) as well
as any employee or consultant who either alone or in concert with others develops, invents, programs or designs any Company Intellectual
Property.

 

(i)         “Material Adverse Effect” means a material adverse effect on the business, assets (including intangible
assets), liabilities, financial condition, property, prospects or results of operations of the Company.

 

(j)          “Operating Agreement” means the Operating Agreement of the Company effective as of January 4, 2016 by
and among the Manager (as defined below) and the Members, as amended.

 

(k)        “Person” means any individual, corporation, partnership, trust, limited liability company, association
or other entity.

 

(l)         “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

(m)       “Transaction Agreements” means this Agreement, the Voting Agreement, the Indemnification Agreement and
the Commercial Agreement.

 

(n)        “Voting Agreement” means the agreement among the Company, Purchaser and the Members, dated as of the
date of the Initial Closing, in the form of Exhibit C attached to this Agreement.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

 

The Company hereby
represents and warrants to Purchaser that, except as set forth on the Disclosure Schedule attached as Exhibit E to this
Agreement, which exceptions shall be deemed to be part of the representations and warranties made hereunder, the following representations
are true and complete as of the Initial Closing, except as otherwise indicated. The Disclosure Schedule shall be arranged in sections
corresponding to the numbered and lettered sections and subsections contained in this Section 2, and the disclosures in
any section or subsection of the Disclosure Schedule shall qualify other sections and subsections in this Section 2 only
to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections
and subsections. For purposes of these representations and warranties (other than those in Subsections 2.2, 2.3, 2.4, 2.5,
and 2.6), the term the “Company” shall include any subsidiaries of the Company, unless otherwise noted
herein.

 

Section 2.1 Organization,
Good Standing, Power and Qualification. The Company is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all requisite limited liability company power and authority to carry
on its business as presently conducted and as proposed to be conducted. The Company is duly qualified to transact business and
is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect.

 

 

 

    	 	4	 

     

    

 

Section 2.2Capitalization.

 

(a)        All of the outstanding Membership Interests have been duly authorized, are fully paid and nonassessable and were issued
in compliance with all applicable federal and state securities laws.

 

(b)        Section
2.2(b) of the Disclosure Schedule sets forth the capitalization of the Company immediately following the Initial Closing including
the issued and outstanding Membership Interests, including, if applicable, vesting schedule and repurchase price and the holder
thereof. There are no outstanding options, warrants, rights (including purchase, conversion or preemptive rights and rights of
first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any equity securities,
or any securities convertible into or exchangeable for equity securities of the Company.

 

(c)         The Company has no agreements or documents which contain a provision for acceleration of vesting (or lapse of a repurchase
right) or other changes in the vesting provisions or other terms of such agreement or understanding with respect to any of the
Company’s equity securities upon the occurrence of any event or combination of events. The Company has no obligation (contingent
or otherwise) to purchase or redeem any of its equity securities.

 

(d)       The Company believes in good faith that any “nonqualified deferred compensation plan” (as such term is defined
under Section 409A(d)(1) of the Code and the guidance thereunder) under which the Company makes, is obligated to make or promises
to make, payments (each, a “409A Plan”) complies in all material respects, in both form and operation, with
the requirements of Section 409A of the Code and the guidance thereunder. To the knowledge of the Company, no payment to be made
under any 409A Plan is, or will be, subject to the penalties of Section 409A(a)(1) of the Code.

 

(e)        The Company has obtained valid waivers of any rights by other parties to purchase any of the Interests covered by this Agreement.

 

Section 2.3 Subsidiaries.
The Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust,
joint venture, limited liability company, association, or other business entity. The Company is not a participant in any joint
venture, partnership or similar arrangement.

 

Section 2.4 Authorization.
All limited liability company action required to be taken by the Company’s managers (the “Managers”)
and Members in order to authorize the Company to enter into the Transaction Agreements, and to issue the Interests at
the Closing, has been taken or will be taken prior to the Closing. All action on the part of the Managers necessary for
the execution and delivery of the Transaction Agreements, the performance of all obligations of the Company under the
Transaction Agreements to be performed as of the Closing, and the issuance and delivery of the Interests has been taken or
will be taken prior to the Closing. The Transaction Agreements, when executed and delivered by the Company, shall constitute
valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective
terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other
laws of general application relating to or affecting the enforcement of creditors’ rights generally, and (ii) as
limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

Section 2.5Valid Issuance of Interests.

 

(a)        The Interests, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this
Agreement, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on
transfer under the Transaction Agreements, applicable state and federal securities laws and liens or encumbrances created by or
imposed by Purchaser. Assuming the accuracy of the representations of Purchaser in Section 3 of this Agreement and except
for filings pursuant to Regulation D of the Securities Act and applicable state securities laws, which have been made or will be
made in a timely manner, the Interests will be issued in compliance with all applicable federal and state securities laws.

 

(b)       No
“bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person, except for a
Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable.

 

Section 2.6 Governmental
Consents and Filings. Assuming the accuracy of the representations made by Purchaser in Section 3 of this Agreement,
no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal,
state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions
contemplated by this Agreement, except for filings pursuant to Regulation D of the Securities Act, and applicable state securities
laws, which have been made or will be made in a timely manner.

 

Section 2.7Litigation.
There is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending or, to the Company’s
knowledge, currently threatened (i) against the Company or any Manager, officer, or Key Employee of the Company; (ii) that questions
the validity of the Transaction Agreements or the right of the Company to enter into them, or to consummate the transactions contemplated
by the Transaction Agreements; or (iii) that would reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect. Neither the Company nor, to the Company’s knowledge, any of its Managers, officers, or Key Employees is a
party or is named as subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency
or instrumentality (in the case of Managers, officers, or Key Employees, such as would affect the Company). There is no action,
suit, proceeding or investigation by the Company pending or which the Company intends to initiate. The foregoing includes, without
limitation, actions, suits, proceedings or investigations pending or threatened in writing (or any basis therefor known to the
Company) involving the prior employment of any of the Company’s employees, their services provided in connection with the
Company’s business, any information or techniques allegedly proprietary to any of their former employers or their obligations
under any agreements with prior employers.

 

 

 

    	 	5	 

     

    

 

 

Section 2.8 Intellectual
Property. The Company owns or possesses sufficient legal rights to all Company Intellectual Property without any known conflict
with, or infringement of, the rights of others. No product or service marketed or sold (or proposed to be marketed or sold) by
the Company violates or will violate any license or infringes or will infringe any intellectual property rights of any other party.
Other than with respect to commercially available software products under standard end-user object code license agreements, there
are no outstanding options, licenses, agreements, claims, encumbrances or shared ownership interests of any kind relating to the
Company Intellectual Property, nor is the Company bound by or a party to any options, licenses or agreements of any kind with respect
to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, proprietary rights and
processes of any other Person. The Company has not received any communications alleging that the Company has violated, or by conducting
its business, would violate any of the patents, trademarks, service marks, tradenames, copyrights, trade secrets, mask works or
other proprietary rights or processes of any other Person. The Company has obtained and possesses valid licenses to use all of
the software programs present on the computers and other software-enabled electronic devices that it owns or leases or that it
has otherwise provided to its employees for their use in connection with the Company’s business. To the Company’s knowledge,
it will not be necessary to use any inventions of any of its employees or consultants (or Persons it currently intends to hire)
made prior to their employment by the Company. Each employee and consultant has assigned to the Company all intellectual property
rights he or she owns that are related to the Company’s business as now conducted and as presently proposed to be conducted.
Subsection 2.8 of the Disclosure Schedule lists all Company Intellectual Property. The Company has not embedded any open
source, copyleft or community source code in any of its products generally available or in development, including but not limited
to any libraries or code licensed under any General Public License, Lesser General Public License or similar license arrangement.
For purposes of this Subsection 2.8, the Company shall be deemed to have knowledge of a patent right if the Company has
actual knowledge of the patent right or would be found to be on notice of such patent right as determined by reference to United
States patent laws.

 

Section 2.9 Compliance
with Other Instruments. The Company is not in violation or default (i) of any provisions of its Certificate of Formation (the
“Certificate”) or the Operating Agreement, (ii) of any instrument, judgment, order, writ or decree, (iii) under
any note, indenture or mortgage, or (iv) under any lease, agreement, contract or purchase order to which it is a party or by which
it is bound, or (v) of any provision of federal or state statute, rule or regulation applicable to the Company. The execution,
delivery and performance of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction
Agreements will not result in any such violation or be in conflict with or constitute, with or without the passage of time and
giving of notice, either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement;
or (ii) an event which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension,
revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company.

 

 

 

    	 	6	 

     

    

 

 

 

Section 2.10 Agreements; Actions.

 

(a)        Except
for the Transaction Agreements, there are no agreements, understandings, instruments, contracts or proposed transactions to which
the Company is a party or by which it is bound that involve (i) obligations (contingent or otherwise) of, or payments to, the
Company in excess of $50,000, (ii) the license of any patent, copyright, trademark, trade secret or other proprietary right to
or from the Company, (iii) the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any
other Person that limit the Company’s exclusive right to develop, manufacture, assemble, distribute, market or sell its
products, or (iv) indemnification by the Company with respect to infringements of proprietary rights.

 

(b)       The
Company has not (i) declared or paid any dividends, or authorized or made any distribution upon or with respect to any Membership
Interests or equity securities, (ii) incurred any indebtedness for money borrowed or incurred any other liabilities individually
in excess of $50,000 or in excess of $100,000 in the aggregate, (iii) made any loans or advances to any Person, other than ordinary
advances for travel expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or rights, other than the sale
of its inventory in the ordinary course of business. For the purposes of (a) and (b) of this Subsection 2.10, all indebtedness,
liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same Person (including
Persons the Company has reason to believe are affiliated with each other) shall be aggregated for the purpose of meeting the individual
minimum dollar amounts of such subsection.

 

(c)        The Company is not a guarantor or indemnitor of any indebtedness of any other Person.

 

(d)       The Company has not engaged in the past in any discussion with any representative of any Person regarding (i) a sale or
exclusive license of all or substantially all of the Company’s assets, or (ii) any recapitalization, merger, consolidation
or other business combination transaction of the Company with or into another Person.

 

Section 2.11 Certain Transactions.

 

(a)        Other than (i) standard employee benefits generally made available to all employees, (ii) standard manager and officer indemnification
agreements approved by the Managers, and (iii) the purchase of Membership Interests approved by the Managers, there are no agreements,
understandings or proposed transactions between the Company and any of its Managers, Members, officers, consultants or Key Employees,
or any Affiliate thereof.

 

(b)        The
Company is not indebted, directly or indirectly, to any of its Managers, officers or employees or to their respective spouses
or children or to any Affiliate of any of the foregoing, other than in connection with expenses or advances of expenses incurred
in the ordinary course of business or employee relocation expenses and for other customary employee benefits made generally available
to all employees. None of the Company’s Managers, officers or employees, or any members of their immediate families, or
any Affiliate of the foregoing are, directly or indirectly, indebted to the Company or have any (i) material commercial, industrial,
banking, consulting, legal, accounting, charitable or familial relationship with any of the Company’s customers, suppliers,
service providers, joint venture partners, licensees and competitors, (ii) direct or indirect ownership interest in any firm or
corporation with which the Company is affiliated or with which the Company has a business relationship, or any firm or corporation
which competes with the Company except that Managers, officers, employees or Members of the Company may own stock in (but not
exceeding two percent (2%) of the outstanding capital stock of) publicly traded companies that may compete with the Company; or
(iii) financial interest in any contract with the Company.

 

 

 

    	 	7	 

     

    

 

Section 2.12 Rights
of Registration and Voting Rights. The Company is not under any obligation to register under the Securities Act any of its
currently outstanding securities or any securities issuable upon exercise or conversion of its currently outstanding securities.
To the Company’s knowledge, except for the Operating Agreement, no Member has entered into any agreements with respect to
the voting of equity securities of the Company.

 

Section 2.13 Property.
The property and assets that the Company owns are free and clear of all mortgages, deeds of trust, liens, loans and encumbrances,
except for statutory liens for the payment of current taxes that are not yet delinquent and encumbrances and liens that arise in
the ordinary course of business and do not materially impair the Company’s ownership or use of such property or assets. With
respect to the property and assets it leases, the Company is in compliance with such leases and, to its knowledge, holds a valid
leasehold interest free of any liens, claims or encumbrances other than those of the lessors of such property or assets. The Company
does not own any real property.

 

Section 2.14 Financial
Statements. The Company has delivered to each Purchaser its unaudited financial statements for the fiscal years ended December
31, 2017, 2016 and 2015 (including balance sheet, income statement and statement of cash flows) (collectively, the “Financial
Statements”). The Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods indicated, except that the Financial Statements
may not contain all footnotes required by GAAP. The Financial Statements fairly present in all material respects the financial
condition and operating results of the Company as of the dates, and for the periods, indicated therein. Except as set forth in
the Financial Statements, the Company has no material liabilities or obligations, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business subsequent to December 31, 2017; (ii) obligations under contracts and commitments incurred
in the ordinary course of business; and (iii) liabilities and obligations of a type or nature not required under GAAP to be reflected
in the Financial Statements, which, in all such cases, individually and in the aggregate would not have a Material Adverse Effect.
The Company maintains and will continue to maintain a standard system of accounting established and administered in accordance
with GAAP.

 

Section 2.15 Changes. Since date
of most recent Financial Statements there has not been:

 

 

 

 

    	 	8	 

     

    

 

(a)        any change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the
Financial Statements, except changes in the ordinary course of business that have not caused, in the aggregate, a Material Adverse
Effect;

 

(b)        any damage, destruction or loss, whether or not covered by insurance, that would have a Material Adverse Effect;

 

(c)        any waiver or compromise by the Company of a valuable right or of a material debt owed to it;

 

(d)        any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and the satisfaction or discharge of which would not have a Material Adverse Effect;

 

(e)        any
material change to a material contract or agreement by which the Company or any of its assets is bound or subject;

 

(f)         any
material change in any compensation arrangement or agreement with any employee, officer, Manager or Member;

 

(g)        any resignation or termination of employment of any Manager, officer or Key Employee of the Company;

 

(h)       any mortgage, pledge, transfer of a security interest in, or lien, created by the Company, with respect to any of its material
properties or assets, except liens for taxes not yet due or payable and liens that arise in the ordinary course of business and
do not materially impair the Company’s ownership or use of such property or assets;

 

(i)         any
loans or guarantees made by the Company to or for the benefit of its employees, officers or Managers, or any members of their
immediate families, other than travel advances and other advances made in the ordinary course of its business;

 

(j)         any
declaration, setting aside or payment or other distribution in respect of any of the Membership Interests or equity securities,
or any direct or indirect redemption, purchase, or other acquisition of any of Membership Interests or equity securities by the
Company;

 

(k)        any sale, assignment or transfer of any Company Intellectual Property that could reasonably be expected to result in a Material
Adverse Effect;

 

(l)         receipt of notice that there has been a loss of, or material order cancellation by, any major customer of the Company;

 

(m)       to
the Company’s knowledge, any other event or condition of any character, other than events affecting the economy or the Company’s
industry generally, that could reasonably be expected to result in a Material Adverse Effect; or

 

 

 

    	 	9	 

     

    

 

(n)       any
arrangement or commitment by the Company to do any of the things described in this Subsection 2.15.

 

Section 2.16 Employee Matters.

 

(a)        As of the date hereof, the Company employs 4 full-time employees and 4 part-time employees and engages 2 consultants or
independent contractors. Section 2.16(a) of the Disclosure Schedule sets forth a detailed description of all compensation,
including salary, bonus, severance obligations and deferred compensation paid or payable for each Manager, officer, employee, consultant
and independent contractor of the Company who received compensation in excess of $100,000 for the fiscal year ending December 31,
2017.

 

(b)       To
the Company’s knowledge, none of its employees is obligated under any contract (including licenses, covenants or commitments
of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would
materially interfere with such employee’s ability to promote the interest of the Company or that would conflict with the
Company’s business. Neither the execution or delivery of the Transaction Agreements, nor the carrying on of the Company’s
business by the employees of the Company, nor the conduct of the Company’s business as now conducted and as presently proposed
to be conducted, will, to the Company’s knowledge, conflict with or result in a breach of the terms, conditions, or provisions
of, or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated.

 

(c)         The Company is not delinquent in payments to any of its employees, consultants, or independent contractors for any wages,
salaries, commissions, bonuses, or other direct compensation for any service performed for it to the date hereof or amounts required
to be reimbursed to such employees, consultants or independent contractors. The Company has complied in all material respects with
all applicable state and federal equal employment opportunity laws and with other laws related to employment, including those related
to wages, hours, worker classification and collective bargaining. The Company has withheld and paid to the appropriate governmental
entity or is holding for payment not yet due to such governmental entity all amounts required to be withheld from employees of
the Company and is not liable for any arrears of wages, taxes, penalties or other sums for failure to comply with any of the foregoing.

 

(d)       To
the Company’s knowledge, no Key Employee intends to terminate employment with the Company or is otherwise likely to become
unavailable to continue as a Key Employee, nor does the Company have a present intention to terminate the employment of any of
the foregoing. The employment of each employee of the Company is terminable at the will of the Company. Except as set forth in
Section 2.16(d) of the Disclosure Schedule or as required by law, upon termination of the employment of any such employees,
no severance or other payments will become due. Except as set forth in Section 2.16(d) of the Disclosure Schedule, the
Company has no policy, practice, plan or program of paying severance pay or any form of severance compensation in connection with
the termination of employment services.

 

 

 

 

    	 	10	 

     

    

 

(e)        The Company has not made any representations regarding equity incentives to any Manager, officer, employee, or consultant
that are inconsistent with the amounts and terms set forth in the minutes of meetings of the Managers or written consents of the
Managers.

 

(f)         Each former Key Employee whose employment was terminated by the Company has entered into an agreement with the Company providing
for the full release of any claims against the Company or any related party arising out of such employment.

 

(g)        Section
2.16(g) of the Disclosure Schedule sets forth each employee benefit plan maintained, established or sponsored by the Company,
or which the Company participates in or contributes to, which is subject to the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”). The Company has made all required contributions and has no liability to any such employee
benefit plan, other than liability for health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied
in all material respects with all applicable laws for any such employee benefit plan.

 

Section 2.17 Tax
Returns and Payments. There are no federal, state, county, local or foreign taxes due and payable by the Company which have
not been timely paid. There are no accrued and unpaid federal, state, country, local or foreign taxes of the Company which are
due, whether or not assessed or disputed. There have been no examinations or audits of any tax returns or reports by any applicable
federal, state, local or foreign governmental agency. The Company has duly and timely filed all federal, state, county, local and
foreign tax returns required to have been filed by it and there are in effect no waivers of applicable statutes of limitations
with respect to taxes for any year.

 

Section 2.18 Insurance.
The Company has in full force and effect fire and casualty insurance policies with extended coverage, sufficient in amount (subject
to reasonable deductions) to allow it to replace any of its properties that might be damaged or destroyed.

 

Section 2.19 Employee
Agreements. Each current and former employee, consultant and officer of the Company has executed an agreement with the Company
regarding confidentiality and proprietary information substantially in the form or forms delivered to Purchaser (the “Confidential
Information Agreements”). No current or former Key Employee has excluded works or inventions from his or her assignment
of inventions pursuant to such Key Employee’s Confidential Information Agreement. Each current and former Key Employee has
executed a non-competition and non-solicitation agreement substantially in the form or forms delivered to Purchaser. The Company
is not aware that any of its Key Employees is in violation of any agreement covered by this Subsection 2.19.

 

Section 2.20 Permits.
The Company has all material franchises, permits, licenses and any similar authority necessary for the conduct of its business.
The Company is not in default in any material respect under any of such franchises, permits, licenses or other similar authority.

 

Section 2.21 Corporate
Documents. The Certificate and Operating Agreement of the Company are in the form provided to Purchaser. The copy of the minute
books of the Company provided to Purchaser contains minutes of all meetings of Managers and Members and all actions by written
consent without a meeting by the Managers and Members since the date of organization and accurately reflects in all material respects
all actions by the Managers and Members with respect to all transactions referred to in such minutes.

 

 

 

    	 	11	 

     

    

 

Section 2.22 Environmental and Safety Laws.

 

(a)        The
Company is and has been in compliance with all Environmental Laws (as defined below);

 

(b)       there has been no release or threatened release of any pollutant, contaminant or toxic or hazardous material, substance
or waste or petroleum or any fraction thereof (each a “Hazardous Substance”), on, upon, into or from any site
currently or heretofore owned, leased or otherwise used by the Company;

 

(c)        there have been no Hazardous Substances generated by the Company that have been disposed of or come to rest at any site
that has been included in any published U.S. federal, state or local “superfund” site list or any other similar list
of hazardous or toxic waste sites published by any governmental authority in the United States; and

 

(d)        there
are no underground storage tanks located on, no polychlorinated biphenyls (“PCBs”) or PCB-containing equipment
used or stored on, and no hazardous waste as defined by the Resource Conservation and Recovery Act, as amended, stored on, any
site owned or operated by the Company, except for the storage of hazardous waste in compliance with Environmental Laws. The Company
has made available to Purchaser true and complete copies of all material environmental records, reports, notifications, certificates
of need, permits, pending permit applications, correspondence, engineering studies and environmental studies or assessments. For
purposes of this Subsection 2.22, “Environmental Laws” means any law, regulation, or other applicable
requirement relating to (a) releases or threatened release of Hazardous Substance; (b) pollution or protection of employee health
or safety, public health or the environment; or (c) the manufacture, handling, transport, use, treatment, storage, or disposal
of Hazardous Substances.

 

Section 2.23 Disclosure.
The Company has made available to Purchaser all the information reasonably available to the Company that Purchaser has requested
for deciding whether to acquire the Interests, including certain of the Company’s projections describing its proposed business
plan (the “Business Plan”). No representation or warranty of the Company contained in this Agreement, as qualified
by the Disclosure Schedule, and no certificate furnished or to be furnished to Purchaser at the Closing contains any untrue statement
of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not
misleading in light of the circumstances under which they were made. The Business Plan was prepared in good faith; however, the
Company does not warrant that it will achieve any results projected in the Business Plan.

 

 

 

 

    	 	12	 

     

    

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser hereby represents and warrants to the Company that:

 

Section 3.1Authorization.
Purchaser has full power and authority to enter into the Transaction Agreements. The Transaction Agreements to which Purchaser
is a party, when executed and delivered by Purchaser, will constitute valid and legally binding obligations of Purchaser, enforceable
in accordance with their terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and any other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

Section 3.2 Purchase
Entirely for Own Account. This Agreement is made with Purchaser in reliance upon Purchaser’s representation to the Company,
which by Purchaser’s execution of this Agreement, Purchaser hereby confirms, that the Interests to be acquired by Purchaser
will be acquired for investment for Purchaser’s own account, not as a nominee or agent, and not with a view to the resale
or distribution of any part thereof, and that Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same. By executing this Agreement, Purchaser further represents that Purchaser does not presently have
any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or
to any third Person, with respect to any of the Interests. Purchaser has not been formed for the specific purpose of acquiring
the Interests.

 

Section 3.3 Disclosure
of Information. Purchaser has had an opportunity to discuss the Company’s business, management, financial affairs and
the terms and conditions of the offering of the Interests with the Company’s management and has had an opportunity to review
the Company’s facilities. The foregoing, however, does not limit or modify the representations and warranties of the Company
in Article II of this Agreement or the right of Purchaser to rely thereon.

 

Section 3.4 Restricted
Securities. Purchaser understands that the Interests have not been, and will not be, registered under the Securities Act, by
reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of Purchaser’s representations as expressed herein. Purchaser
understands that the Interests are “restricted securities” under applicable U.S. federal and state securities laws
and that, pursuant to these laws, Purchaser must hold the Interests indefinitely unless they are registered with the Securities
and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements
is available. Purchaser acknowledges that the Company has no obligation to register or qualify the Interests for resale. Purchaser
further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period for the Interests, and on requirements relating
to the Company which are outside of Purchaser’s control, and which the Company is under no obligation and may not be able
to satisfy.

 

 

 

    	 	13	 

     

    

 

Section 3.5 No Public
Market. Purchaser understands that no public market now exists for the Interests, and that the Company has made no assurances
that a public market will ever exist for the Interests.

 

Section 3.6 Accredited
Investor. Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

 

Section 3.7 No General
Solicitation. Neither Purchaser nor any of its officers or directors has either directly or indirectly, including, through
a broker or finder (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and
sale of the Interests.

 

Section 3.8 Principal
Place of Business. The office of Purchaser in which its principal place of business is identified is the address of Purchaser
set forth on the signature pages hereto.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE
MEMBERS

 

Each Member hereby represents and warrants,
severally and not jointly, to Purchaser:

 

Section 4.1Authorization.
If the Member is an entity, all action required to be taken by such Member in order to authorize the entry into the Transaction
Agreements has been taken or will be taken prior to the Closing. All action on the part of the Member necessary for the execution
and delivery of the Transaction Agreements and the performance of all obligations of the Member under the Transaction Agreements
to be performed as of the Closing, has been taken or will be taken prior to the Closing. The Transaction Agreements, when executed
and delivered by the Member, shall constitute valid and legally binding obligations of the Member, enforceable against the Member
in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights
generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

 

Section 4.2 Litigation.
There is no action, suit or proceeding, or governmental inquiry or investigation, pending or, to such Member’s knowledge,
threatened against such Member, and there is no basis for any such action, suit, proceeding, or governmental inquiry or investigation.

 

Section 4.3 Agreements.
Except as contemplated by or disclosed in the Transaction Agreements, such Member is not a party to and has no knowledge of any
agreements, written or oral, relating to the acquisition, disposition, registration under the Securities Act, or voting of the
securities of the Company.

 

Section 4.4 Voting
Rights. Except for the Operating Agreement, such Member has not entered into any agreements with respect to the voting of equity
securities of the Company.

 

Section 4.5 Encumbrances.
There are no liens, charges, claims or encumbrances with respect to the Membership Interests held by such Member nor are there
any outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights)
or agreements, orally or in writing, with respect to such Membership Interests.

 

 

 

    	 	14	 

     

    

 

Section 4.6 Representations
and Warranties. To the best of such Member’s knowledge, all of the representations and warranties of the Company set
forth in Article II are true and complete.

 

ARTICLE V

COVENANTS

 

Section 5.1 Member
Membership Interests. Until the later of the expiration of the Purchase Exercise Period or the occurrence of the Purchase Right
Closing, no Member shall (a) grant or allow to exist any liens, charges, claims or encumbrances with respect to the Membership
Interests held by such Member, (b) grant or allow to exist any options, warrants, rights (including purchase, conversion or preemptive
rights and rights of first refusal or similar rights) or agreements, orally or in writing, with respect to the Membership Interests
held by such Member, or (c) transfer, sell, pledge or otherwise hypothecate any of the Membership Interests held by such Member
or any rights therein or with respect thereto.

 

Section 5.2 Equity
Issuances. The Company shall not issue any equity securities or securities convertible into or exercisable for equity securities
of the Company or grant any right to acquire equity securities of the Company, until the later of the expiration of the Purchase
Exercise Period or the occurrence of the Purchase Right Closing.

 

Section 5.3 Right
to Conduct Activities. The Company hereby agrees and acknowledges that Purchaser (together with its affiliates) operates and
invests in companies, some of which may be deemed competitive with the Company’s business (as currently conducted or as currently
propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, Purchaser shall not be
liable to the Company for any claim arising out of, or based upon, (i) the business operations of Purchaser or the investment by
Purchaser in any entity competitive with the Company, or (ii) actions taken by any manager, officer, employee or other representative
of Purchaser to operate the business of Purchaser or assist any such competitive company, whether or not such action was taken
as a member of the board of directors of Purchaser or such competitive company or otherwise, and whether or not such action has
a detrimental effect on the Company.

 

ARTICLE VI

CONDITIONS TO PURCHASER’S OBLIGATIONS
AT CLOSING

 

The obligations of
Purchaser to purchase Interests at the Initial Closing or any subsequent Closing are subject to the fulfillment, on or before such
Closing, of each of the following conditions, unless otherwise waived:

 

Section 6.1 Representations
and Warranties. The representations and warranties of the Company contained in Article II and the representations and
warranties of the Members in Article IV shall be true and correct in all respects as of such Closing.

 

 

 

 

    	 	15	 

     

    

 

Section 6.2 Performance.
The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by the Company on or before such Closing.

 

Section 6.3 Compliance
Certificate. The Managers and Members shall deliver to Purchaser at such Closing a certificate certifying that the conditions
specified in Subsections 6.1 and 6.2 have been fulfilled.

 

Section 6.4 Qualifications.
All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the Membership Interests pursuant to this Agreement
shall be obtained and effective as of such Closing.

 

Section 6.5 Managers.
As of the Initial Closing, the authorized number of Managers shall be 4, comprised of Derek Oxford, Todd Lewis, Alan Waldheim George
Robert Pullar.

 

Section 6.6 Indemnification
Agreement. The Company shall have executed and delivered the Indemnification Agreements.

 

Section 6.7 Voting
Agreement. The Company and the Members shall have executed and delivered the Voting Agreement.

 

Section 6.8 Commercial
Agreement. The Company shall have executed and delivered the Commercial Agreement.

 

Section 6.9 Amended
and Restated Operating Agreement. The Company, the Managers and the Members shall have executed and delivered the Amended and
Restated Operating Agreement.

 

Section 6.10 Secretary’s
Certificate. The Secretary of the Company shall have delivered to Purchaser at the Closing a certificate certifying (i) the
Certificate, (ii) the Operating Agreement, and (iii) the resolutions of the Managers approving the Transaction Agreements and the
transactions contemplated under the Transaction Agreements.

 

Section 6.11 Proceedings
and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all
documents incident thereto shall be reasonably satisfactory in form and substance to Purchaser, and Purchaser (or its counsel)
shall have received all such counterpart original and certified or other copies of such documents as reasonably requested. Such
documents may include good standing certificates.

 

ARTICLE VII

CONDITIONS OF THE COMPANY’S AND
THE MEMBERS’ OBLIGATIONS AT

CLOSING

 

The obligations of
the Company to sell Interests to Purchaser at the Initial Closing or any subsequent Closing and the obligations of the Members
hereunder are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

 

 

 

    	 	16	 

     

    

 

Section 7.1 Representations
and Warranties. The representations and warranties of Purchaser contained in Article III shall be true and correct in
all respects as of such Closing.

 

Section 7.2 Performance.
Purchaser shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before such Closing.

 

Section 7.3Qualifications.
All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the Interests pursuant to this Agreement shall be obtained
and effective as of the Closing.

 

Section 7.4 Voting
Agreement. Purchaser shall have executed and delivered the Voting Agreement.

 

Section 7.5 Commercial
Agreement. Purchaser shall have executed and delivered the Commercial Agreement.

 

Section 7.6 Amended
and Restated Operating Agreement. Purchaser shall have executed and delivered the Amended and Restated Operating Agreement.

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.1Survival
of Warranties. Unless otherwise set forth in this Agreement, the representations and warranties of the Company, the Members
and Purchaser contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the
Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of
Purchaser or the Company.

 

Section 8.2 Successors
and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors
and permitted assigns of the parties hereto. Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement. The Company and the Members may not assign
their rights or obligations under this Agreement without the prior written consent of Purchaser, which consent may be withheld
in Purchaser’s sole discretion.

 

Section 8.3 Governing
Law. This Agreement shall be governed by the internal law of the State of Delaware without regard to the law of conflicts thereof.

 

Section 8.4 Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes.

 

 

 

    	 	17	 

     

    

 

 

Section 8.5Titles and Subtitles. The titles and subtitles
used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

Section 8.6 Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt, or (a) personal delivery to the party hereto to be notified, (b) when sent with confirmation
of delivery, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal
business hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight
courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall
be sent to the respective parties hereto at their address as set forth on the signature pages hereto, or to such e-mail address,
facsimile number or address as subsequently modified by written notice given in accordance with this Subsection 8.6.

 

Section 8.7 No Finder’s
Fees. Each party hereto represents that it neither is nor will be obligated for any finder’s fee or commission in connection
with this transaction. Purchaser agrees to indemnify and to hold harmless the Company from any liability for any commission or
compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses
of defending against such liability or asserted liability) for which Purchaser or any of its officers, employees or representatives
is responsible. The Company agrees to indemnify and hold harmless Purchaser from any liability for any commission or compensation
in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending
against such liability or asserted liability) for which the Company or any of its officers, Managers, Members, employees or representatives
is responsible.

 

Section 8.8 Attorneys’
Fees. If any action at law or in equity is necessary to enforce or interpret the terms of any of the Transaction Agreements,
the substantially prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

 

Section 8.9 Amendments
and Waivers. Any term of this Agreement may be amended, terminated or waived only with the written consent of the Company,
the Members and Purchaser.

 

Section 8.10 Severability.
The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

Section 8.11 Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such
non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party hereto of any breach or default under this Agreement,
or any waiver on the part of any party hereto of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law
or otherwise afforded to any party hereto, shall be cumulative and not alternative.

 

 

 

    	 	18	 

     

    

Section 8.12 Entire
Agreement. This Agreement (including the Exhibits and Schedules hereto) and the other Transaction Agreements constitute the
full and entire understanding and agreement among the parties hereto with respect to the subject matter hereof, and any other written
or oral agreement relating to the subject matter hereof existing among the parties hereto are expressly canceled, including, without
limitation, that certain Letter Agreement dated November 20, 2017 between the Company and Purchaser.

 

Section 8.13 Dispute
Resolution. The parties hereto (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of
Delaware and to the jurisdiction of the federal district courts sitting in the State of Delaware for the purpose of any suit, action
or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding
arising out of or based upon this Agreement except in the state courts of Delaware or the federal district courts sitting in the
State of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit,
action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property
is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that
the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced
in or by such court.

 

EACH PARTY HERETO HEREBY WAIVES ITS RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE
SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS
SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH
PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH
PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

Section 8.14 No
Commitment for Additional Financing. The Company acknowledges and agrees that Purchaser has made no representation,
undertaking, commitment or agreement to provide or assist the Company in obtaining any financing, investment or other
assistance, other than the purchase of the Interests as set forth herein and subject to the conditions set forth herein. In
addition, the Company acknowledges and agrees that (i) no statements, whether written or oral, made by Purchaser or its
representatives on or after the date of this Agreement shall create an obligation, commitment or agreement to provide or
assist the Company in obtaining any financing or investment, (ii) the Company shall not rely on any such statement by
Purchaser or its representatives, and (iii) an obligation, commitment or agreement to provide or assist the Company in
obtaining any financing or investment may only be created by a written agreement, signed by Purchaser and the Company,
setting forth the terms and conditions of such financing or investment and stating that the parties intend for such writing
to be a binding obligation or agreement. Purchaser shall have the right, in its sole and absolute discretion, to refuse or
decline to participate in any other financing of or investment in the Company, and shall have no obligation to assist or
cooperate with the Company in obtaining any financing, investment or other assistance.

 

 

 

    	 	19	 

     

    

 

Section 8.15 Conflicting
Agreements. If any of the terms and provisions of the Amended and Restated Operating Agreement, on the one hand, and the Transaction
Agreements, on the other hand, shall conflict, the terms and provisions of the Transaction Agreement shall control.

 

 

 

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Membership Interest Purchase Agreement as of the date first written above.

 

	 	COMPANY:
	 	TOTAL GROW HOLDINGS, LLC:
	 	 
	 	By: /s/ Derek E. Oxford
	 	Derek E. Oxford, Manager
	 	Address: 221 19th Ave S
	 	St Petersburg Fl 33705
	 	 
	 	MEMBERS:
	 	 
	 	/s/ Derek E. Oxford
	 	Derek E. Oxford
	 	Address: 221 19th
	 	Ave S St Petersburg Fl 33705
	 	 
	 	Todd Lewis
	 	Todd Lewis
	 	Address: 40 Steeplechase DR
	

 
	Holland Pa 18966
	 	 
	 	/s/ Alan Waldheim
	 	Alan Waldheim
	 	Address: 1805 San Jose St
	 	Friendswood, TX 77546
	 	Jonathan Hoffman Address: PO 
	 	Box 801 Bryn Athyn, PA 19009
	 	 
	 	PURCHASER: 
	 	urban-gro, Inc.
	 	 
	

 
	By: /s/ Bradley Nattras
	 	Bradley Nattrass, Chief Executive Officer
	 	Address: 1750 Panorama Point., Suite G 
	 	Lafayette, CO 80026

 

 

 

    	 	21	 

     

    

 

 

EXHIBITS

 

 

 

	Exhibit A-	FORM OF COMMERCIAL AGREEMENT
	Exhibit B -	FORM OF INDEMNIFICATION AGREEMENT
	Exhibit C -	FORM OF VOTING AGREEMENT
	Exhibit D -	FORM OF AMENDED AND RESTATED OPERATING AGREEMENT
	Exhibit E -	DISCLOSURE SCHEDULE

 

 

 

 

 

 

 

    	 	22	 

     

    

 

 

EXHIBIT A

 

FORM OF COMMERCIAL AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT B 

 

FORM OF INDEMNIFICATION AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT C

 

FORM OF VOTING AGREEMENT

 

 

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

EXHIBIT D

 

FORM OF AMENDED AND RESTATED OPERATING
AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

    	 	24	 

     

    

 

EXHIBIT E

 

DISCLOSURE SCHEDULE

 

This Disclosure Schedule is made and given
pursuant to Section 2 of the Membership Interest Purchase Agreement, dated as of February 15, 2018 (the “Agreement”),
among the Company, the Members and Purchaser. All capitalized terms used but not defined herein shall have the meanings as defined
in the Agreement, unless otherwise provided. The section numbers below correspond to the section numbers of the representations
and warranties in the Agreement; provided, however, that any information disclosed herein under any section number shall be deemed
to be disclosed and incorporated into any other section number under the Agreement where such disclosure would be appropriate and
such appropriateness is reasonably apparent from the face of such disclosure. Nothing in this Disclosure Schedule is intended to
broaden the scope of any representation or warranty contained in the Agreement or to create any covenant. Inclusion of any item
in this Disclosure Schedule (1) does not represent a determination that such item is material or establish a standard of materiality,
(2) does not represent a determination that such item did not arise in the ordinary course of business, (3) does not represent
a determination that the transactions contemplated by the Agreement require the consent of third parties, and (4) shall not constitute,
or be deemed to be, an admission to any third party concerning such item. This Disclosure Schedule includes brief descriptions
or summaries of certain agreements and instruments, copies of which are available upon reasonable request. Such descriptions do
not purport to be comprehensive, and are qualified in their entirety by reference to the text of the documents described, true
and complete copies of which have been provided to Purchaser.

 

	Disclosures	 
	Section	Documents / Comments
	2.16 Employee Benefits	None
	2.23 Business Plan	None
	2.7 Litigation	None
	2.8 Patents	None
	2.9 Compliance	None
	2.10 Agreements, Actions	None

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