Document:

EXHIBIT 10. 31 

 

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

 

 

 

Membership
interest Purchase AGREEMENT

 

by
and among

 

FL
Holding Company, LLC,

 

Franklin
Labs, LLC,

 

and

 

CannaPharmacy,
Inc.,

 

Dated
Effective as of March 26, 2020

 

 

 

    	 

    	 

    

  

Membership
interest PURCHASE AGREEMENT

 

Dated
Effective March 26, 2020

 

This
Membership Interest Purchase Agreement (this “Agreement”) is entered into as of the date first set forth above
(the “Effective Date”) by and among (i) FL Holding Company, LLC, a Pennsylvania limited liability company (“Buyer”),
(ii) Franklin Labs, LLC, a Pennsylvania limited liability company (the “Company”) and (iii) CannaPharmacy,
Inc. a Delaware corporation (the “Member”). The Company and the Member may be referred to collectively herein
as the “Selling Parties” and individually as a “Selling Party”.

 

RECITALS

 

WHEREAS,
the Company is in the business of developing, cultivating, harvesting, preparing, packaging, storing, distributing, transporting
and selling medical marijuana and processing medical marijuana into medical marijuana concentrates and medical marijuana-infused
edibles in the State of Pennsylvania (the “Business”);

 

WHEREAS,
the Member will own before the Closing (defined below), units of membership interest of the Company (the “Membership
Interests”), which constitute one hundred percent (100%) of the issued and outstanding Membership Interests (the “Acquired
Interests”);

 

WHEREAS,
Harvest Enterprises, Inc., a Delaware corporation, is the parent company of Buyer (“Enterprises”) and Health
& Recreation Inc., a British Columbia corporation, is the parent company of Enterprises (“Parent”);

 

WHEREAS,
on the terms and subject to the conditions set forth herein, the Member desires to sell to Buyer, and Buyer desires to purchase
from the Member, the Acquired Interests; and

 

WHEREAS,
Parent, the Member, the shareholders of the Member, and Michael H. Weisser, as the Sellers’ Representative, are parties
to a Stock Purchase Agreement, dated April 8, 2019 (the “Stock Purchase Agreement”), which has been terminated
pursuant to that certain Termination Agreement and Release, dated as of even date herewith, by and among Parent, the Member, the
shareholders of the Member, and Michael H. Weisser, as the Sellers’ Representative (the “Termination Agreement”).

 

NOW
THEREFORE, in consideration of the foregoing, the representations, warranties, covenants and agreements set forth in this Agreement,
and other good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, the parties hereby agree
as follows:

 

Article
I

DEFINITIONS

 

Section
1.01Definitions. The following terms, as used herein, have the following meanings

 

		(a)	“Action”
                                         means any claim, charge, action, suit, arbitration, mediation, inquiry, hearing, audit,
                                         proceeding or investigation by or before any Governmental Authority, including any audit,
                                         claim or assessment for Taxes or otherwise.

 

		(b)	“Affiliate”
                                         means, with respect to any specified Person, any other Person that directly or indirectly
                                         through one or more intermediaries, controls, is controlled by, or is under common control
                                         with, such specified Person. A Person shall be deemed to control another Person if such
                                         Person possesses, directly or indirectly, the power to direct, or cause the direction
                                         of, the management and policies of such other Person, whether through the ownership of
                                         voting securities, by contract or otherwise.

 

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		(c)	“Ancillary
                                         Agreements” means the Buyer Note, the Buyer Security Agreement and the Reading
                                         Lease.

 

		(d)	“Business
                                         Day” means any day that is not a Saturday, Sunday or other day on which banking
                                         institutions in Delaware are authorized or required by law or executive order to close.

 

		(e)	“Cannabis
                                         Inventory” means living plants and bagged inventory of flower, trim, and other
                                         cannabis materials in possession of the Company as of the day immediately prior to the
                                         Closing Date as shown on the MJPlatform reports.

 

		(f)	“Closing
                                         Date Indebtedness” means the amount of Indebtedness of the Company outstanding
                                         as of immediately prior to the Closing (other than the amount of all Excluded Indebtedness
                                         (as hereinafter defined)), including, without limitation, any Indebtedness of the Company
                                         to the Member or to Ganjapreneurs Holdings, LLC that is included in the Existing Indebtedness
                                         and remains outstanding as of immediately prior to the Closing.

 

		(g)	“Closing
                                         Date Transaction Expenses” means the amount of Transaction Expenses outstanding
                                         as of immediately prior to the Closing.

 

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

 

		(i)	“Company
                                         Intellectual Property” means all Intellectual Property owned or purported to
                                         be owned by the Company.

 

		(j)	“Company
                                         IP Agreements” means (a) licenses of Company Intellectual Property by the Company
                                         to third parties, (b) licenses of Intellectual Property by third parties to the Company,
                                         other than commercially available off-the-shelf computer software licensed pursuant to
                                         shrink-wrap or click wrap licenses, (c) agreements between the Company and third parties
                                         relating to the development of Intellectual Property, and (d) consents, settlements,
                                         decrees, orders, injunctions, judgments or rulings (against the Company) governing the
                                         use, validity or enforceability of Company Intellectual Property.

 

		(k)	“Company
                                         Technology” means any and all Technology owned or licensed by the Company used
                                         in connection with the Business, other than Technology licensed pursuant to shrink-wrap
                                         or click wrap licenses.

 

		(l)	“Contract”
                                         means any written or oral contract, agreement, indenture, commitment, note, bond, loan,
                                         instrument, lease, conditional sale contract, mortgage, license, arrangement or other
                                         legally binding agreement or obligation.

 

		(m)	“Environmental
                                         Claim” means any and all administrative, regulatory or judicial Actions, demands,
                                         demand letters, Liens, notices of noncompliance or violation, consent orders or consent
                                         agreements relating in any way to any Environmental Laws or any Environmental Permits.

 

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		(n)	“Environmental
                                         Laws” means all Laws, now in effect and in effect as of the Closing Date (provided
                                         that for purposes of the execution of this Agreement and the making of the representations
                                         and warranties contained herein as of such time, Environmental Laws shall not include
                                         Laws that come into existence between the date hereof and the Closing Date), and any
                                         administrative interpretation thereof, including any publicly available judicial or administrative
                                         order, consent decree or judgment, relating to the environment, health, safety, product
                                         registration, natural resources or Hazardous Materials, including without limitation,
                                         the Comprehensive Environmental Response, Compensation and Liability Act of 1980.

 

		(o)	“Environmental
                                         Notice” means any written directive, notice of violation or infraction, or
                                         notice respecting any Environmental Claim relating to actual or alleged non-compliance
                                         with any Environmental Laws or any term or condition of any Environmental Permits.

 

		(p)	“Environmental
                                         Permits” means all Permits required under or issued pursuant to any applicable
                                         Environmental Law.

 

		(q)	“ERISA”
                                         means the Employee Retirement Income Security Act of 1974, as amended, and the regulations
                                         thereunder.

 

		(r)	“ERISA
                                         Affiliate” means all employers, trades or businesses (whether or not incorporated)
                                         that would be treated together with the Company or any of its Affiliates as a single
                                         employer within the meaning of Section 414(b), (c), (m) or (o) of the Code.

 

		(s)	“Existing
                                         Indebtedness” means the outstanding Indebtedness (as the same may be or may
                                         have been increased by any compounding interest or any accrued and unpaid interest, neither
                                         of which are set forth on Exhibit A-1) set forth on Exhibit A-1 hereto
                                         and any extension, renewal or refinancing thereof.

 

		(t)	“GAAP”
                                         means United States generally accepted accounting principles and practices in effect
                                         from time to time applied consistently throughout the periods involved.

 

		(u)	“Governmental
                                         Authority” means any federal, national, foreign, state, provincial, local,
                                         or similar government, governmental, regulatory or administrative authority, agency,
                                         bureau, department, board, panel or commission or any court, tribunal, or judicial or
                                         arbitral body or mediator or any other instrumentality of any kind of any of the foregoing.

 

		(v)	“Governmental
                                         Order” means any order, writ, judgment, injunction, decree, stipulation, determination
                                         or award entered by or with any Governmental Authority.

 

		(w)	“Hazardous
                                         Materials” means (a) petroleum and petroleum products, radioactive materials,
                                         asbestos-containing materials, urea formaldehyde foam insulation, transformers or other
                                         equipment that contain polychlorinated biphenyls and radon gas, and (b) any other chemicals,
                                         materials or substances defined as or included in the definition of “hazardous
                                         substances”, “hazardous wastes”, “hazardous materials”,
                                         “extremely hazardous wastes”, “restricted hazardous wastes”,
                                         “toxic substances”, “toxic pollutants”, “contaminants”
                                         or “pollutants”, or words of similar import, under any applicable Environmental
                                         Law.

 

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		(x)	“Indebtedness”
                                         means, with respect to the Company, at the time of any determination, without duplication:
                                         all obligations, contingent or otherwise, of the Company (other than (i) trade payables
                                         and accounts payable of the Company incurred in the ordinary course of business and that
                                         are not past due as of the Closing Date, (ii) the obligations of the Company to Enterprises
                                         pursuant to the Secured Promissory Notes listed on Exhibit A-2 (provided that
                                         it is acknowledged and agreed that those certain Secured Promissory Notes issued by the
                                         Member set forth on Exhibit A-2 (and all obligations of the Member thereunder),
                                         shall be assigned to the Company concurrently with or immediately prior to the execution
                                         of this Agreement), which provide for loans in the aggregate original principal amount
                                         of $10,819,112 (the “Secured Notes”), each of which will remain outstanding
                                         after the Closing without any deduction to the Transaction Consideration (collectively,
                                         the “Excluded Indebtedness”)), including the outstanding principal
                                         amount of, all accrued and unpaid interest on and other payment obligations (including
                                         any premiums, termination fees, expenses, breakage costs or penalties due upon prepayment
                                         of or payable in connection with this Agreement or the consummation of the transactions
                                         contemplated by this Agreement) in respect of, (a) all indebtedness of the Company for
                                         borrowed money, which shall include borrowing agreements such as notes, bonds, indentures,
                                         mortgages, loans and lines of credit or similar instruments, (b) the guaranty, endorsement
                                         (other than for collection or deposit in the ordinary course of business), co-making
                                         or sale with recourse by the Company of the obligation of another Person, (c) all obligations
                                         (including breakage costs) payable by the Company under interest rate or currency protection
                                         agreements, (d) any reimbursement obligation with respect to letters of credit (including
                                         standby letters of credit to the extent drawn upon), bankers’ acceptances, performance
                                         bonds or similar facilities issued for the account of the Company, (e) all obligations
                                         arising from installment purchases of property or representing the deferred purchase
                                         price of property or services in respect of which the Company is liable, contingently
                                         or otherwise, as obligor or otherwise, including any earnouts, seller notes, contingency
                                         payments or similar Liabilities relating to past acquisitions, (f) all obligations, whether
                                         or not assumed, secured by any Lien, or payable out of the proceeds or product from any
                                         property or assets now owned or owned by the Company as of the Closing Date (except as
                                         described in subclause (ii) above), (g) all obligations under capital leases (as determined
                                         in accordance with GAAP), (h) deferred compensation for services provided to the Company,
                                         (i) all indebtedness created or arising under any conditional sale or other title retention
                                         agreement with respect to property acquired by the Company and (j) any obligation of
                                         the type referred to in clauses (a) through (i) (without duplication of any item previously
                                         described in clause (b)) of this definition of another Person, the payment of which the
                                         Company has guaranteed, or which is secured by any property or assets of such Person,
                                         or for which the Company is responsible or liable, directly or indirectly, jointly or
                                         severally, as obligor, guarantor or otherwise.

 

		(y)	“Intellectual
                                         Property” means all intellectual property rights of the Company arising from
                                         or in respect of the Company’s ownership of the following: (i) inventions, processes,
                                         methods, algorithms and formulae, including all patents and patent applications and statutory
                                         invention registrations, (ii) all trademarks, service marks, trade names, service names,
                                         brand names, trade dress, logos, domain names and corporate or limited liability company
                                         names, including registrations and applications for registration or renewal thereof and
                                         including the goodwill of the Business symbolized thereby or associated therewith, (iii)
                                         works, copyrights, including copyrights in computer software, promotional materials and
                                         any websites, data, databases and any registrations and applications for registration
                                         of any of the forgoing, (iv) all computer software (including source code, executable
                                         code, data, databases and documentation), and (v) confidential and proprietary information,
                                         including trade secrets, know-how and rights in non-published inventions.

 

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		(z)	“Knowledge”
                                         (and grammatical variations thereof) means with respect to (a) the Company and/or the
                                         Member, the actual knowledge of Michael H. Weisser, Raj Mukherji, Paul A. Higdon, Nicolas
                                         J. Rentas, and David J. Weisser and the knowledge that each such individual would obtain
                                         after reasonable inquiry, and (b) with respect to Buyer, the actual knowledge of Jason
                                         Vedadi and Steve White and the knowledge that each such individual would obtain after
                                         reasonable inquiry.

 

		(aa)	“Law”
                                         means any domestic or foreign, federal, provincial, state, municipal or local law, statute,
                                         ordinance, code, rule, regulation, directive, norm, order, requirement or rule of law;
                                         provided, however, the parties hereby acknowledge that under United States federal law,
                                         and more specifically the Federal Controlled Substances Act, the possession, use, cultivation,
                                         marketing and transfer of cannabis is illegal and that, notwithstanding anything to the
                                         contrary herein, with respect to regulated cannabis business activities and the Business,
                                         “Law”, “law”, or “federal” shall (i) only include
                                         such federal law, authority, agency, or jurisdiction as is not in conflict with the Laws,
                                         regulations, authority, agency, or jurisdiction of any state, district, or territory
                                         regarding such regulated cannabis business activities and the Business, and (ii) not
                                         include any Laws that may restrict the possession, use, cultivation, marketing and transfer
                                         of cannabis (including but not limited to the Federal Controlled Substances Act).

 

		(bb)	“Leased
                                         Real Property” means the real property leased, subleased, licensed or otherwise
                                         used by the Company, as tenant, subtenant, licensee or occupant, as applicable, together
                                         with, to the extent leased by the Company, all buildings and other structures, facilities
                                         or improvements currently or hereafter located thereon, all fixtures, systems, equipment
                                         and items of personal property of the Company attached or appurtenant thereto and all
                                         easements, licenses, rights and appurtenances on the real property leased, subleased,
                                         licensed or otherwise used by the Company as tenant, subtenant, licensee or occupant,
                                         as applicable.

 

		(cc)	“Liabilities”
                                         means with respect to any Person, any and all debts, liabilities or obligations of such
                                         Person of any kind or nature whatsoever, whether asserted or unasserted, known or unknown,
                                         accrued or unaccrued, absolute or contingent, matured or unmatured, liquidated or unliquidated,
                                         secured or unsecured, joint or several, due or to become due, vested or unvested, executory,
                                         determined, determinable or otherwise, and whether or not the same is required to be
                                         accrued on the financial statements of such Person, including those arising under any
                                         Law (including any Environmental Law), Action or Governmental Order and those arising
                                         under any Contract, agreement, arrangement, commitment or undertaking.

 

		(dd)	“Licensed
                                         Intellectual Property” means Intellectual Property licensed to the Company
                                         pursuant to the Company IP Agreements.

 

		(ee)	“Lien”
                                         means any charge, claim, community or other marital property interest, equitable interest,
                                         lien, option, pledge, security interest, mortgage deed of trust, right of way, easement,
                                         encroachment, servitude, right of first option, right of first or last negotiation or
                                         refusal or similar restriction, including any restriction on use, voting (in the case
                                         of any security or equity interest), transfer, receipt of income or exercise of any other
                                         attribute of ownership.

 

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		(ff)	“Losses”
                                         means any and all losses, costs, obligations, liabilities, obligations, settlement payments,
                                         awards, judgments, fines, penalties, damages, deficiencies, claims, demands or other
                                         charges, including court filing fees, court costs, arbitration fees or costs, reasonable
                                         witness fees, reasonable fees of attorneys, accountants and other advisors, Taxes and
                                         amounts payable with respect to Taxes (including any amounts relating to Taxes payable
                                         pursuant to a Contract or otherwise) and expenses incurred in connection with investigating,
                                         defending or asserting any claim or Action in accordance with Article VII, provided,
                                         however, that “Losses” shall not include punitive damages, except to the
                                         extent actually awarded to a Governmental Authority or other third party.

 

		(gg)	“Material
                                         Adverse Effect” means any event, occurrence, fact, condition or change that
                                         is, or could reasonably be expected to become, individually or in the aggregate, materially
                                         adverse to (a) the Business, results of operations, condition (financial or otherwise)
                                         or assets of the Company, or (b) the authority or ability of the Member or the Company
                                         to perform their obligations hereunder, or to consummate the transactions contemplated
                                         in this Agreement, in accordance with the terms hereof and applicable Law; provided,
                                         however, that “Material Adverse Effect” shall not include any event, occurrence,
                                         fact, condition or change attributable to: (i) general economic or political conditions;
                                         (ii) conditions affecting the industries in which the Company operates (including but
                                         not limited to the cannabis industry) and/or any actions by a United States federal Governmental
                                         Authority to enforce those Laws that may restrict the possession, use, cultivation, marketing
                                         and transfer of cannabis (including but not limited to the Federal Controlled Substances
                                         Act); (iii) any changes in financial, banking or securities markets in general; (iv)
                                         a national emergency, acts of war (whether or not declared), armed hostilities or terrorism,
                                         or the escalation or worsening thereof; or (v) any changes in applicable Laws (or the
                                         enforcement thereof) or accounting rules (including GAAP); provided, further, that in
                                         the case of each of the foregoing clauses (i), (ii), (iii), (iv) and (v), any such change,
                                         event, circumstance, fact, condition or effect shall be excluded only to the extent that
                                         the Company is not disproportionately affected compared to Persons operating in the same
                                         industry in which the Company operates.

 

		(hh)	“Organizational
                                         Documents” means, with respect to any Person that is not an individual, (a)
                                         such Person’s certificate of incorporation and bylaws, (b) such Person’s
                                         certificate of formation, certificate of trust, limited liability company agreement,
                                         limited partnership agreement, operating agreement or trust agreement or (c) any documents
                                         comparable to those described in clauses (a) and (b) as may be applicable pursuant to
                                         any applicable Law, and (d) any amendment or modification to any of the foregoing.

 

		(ii)	“Outside
                                         Date” means the date that is 120 days after the execution of this Agreement.

 

		(jj)	[Intentionally
                                         Omitted.]

 

		(kk)	“Permit”
                                         means any permit, license, certificate (including a certificate of occupancy) registration,
                                         authorization, application, filing, notice, qualification, waiver of any of the foregoing
                                         or approval of a Governmental Authority.

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		(ll)	“Permitted
                                         Liens” means (a) Liens for Taxes not yet due and payable or the validity of
                                         which are being contested in good faith by appropriate proceedings and as to which adequate
                                         reserves have been established on the Company’s financial statements, (b) statutory
                                         landlord’s, mechanic’s, carrier’s, workmen’s, repairmen’s
                                         or other similar Liens arising or incurred in the ordinary course of business for amounts
                                         which are not due and payable and which would not, individually or in the aggregate,
                                         have a Material Adverse Effect, (c) Liens arising from zoning ordinances which do not,
                                         individually or in the aggregate, have a Material Adverse Effect, (d) deposits or pledges
                                         made in connection with, or to secure payment of, utilities or similar services, workers’
                                         compensation, unemployment insurance, old age pensions or other social security obligations,
                                         (e) Liens of the lessors or licensors on property leased or licensed to or by the Company,
                                         (f) purchase money security interests securing only the property purchased, and (g) Liens
                                         pursuant to Existing Indebtedness and pursuant to the Secured Notes and the related documentation
                                         executed in connection therewith.

 

		(mm)	“Person”
                                         means an individual, corporation, partnership (including a general partnership, limited
                                         partnership or limited liability partnership), limited liability company, association,
                                         trust or other entity or organization, including a Governmental Authority.

 

		(nn)	“Personal
                                         Property” means all of the vehicles, machinery, equipment, tools, furniture,
                                         leasehold improvements (not included in the definition of Leased Real Property), office
                                         equipment, computer hardware (including peripherals), appliances, spare parts, supplies,
                                         materials and other items of tangible personal property of every kind which are owned,
                                         used or leased (as lessor or lessee) by the Company and used or useful in the conduct
                                         of the Business or the operations of the Business or intended by the Company for use
                                         in connection with the Business or the operations of the Business, wherever located and
                                         whether or not carried on the books of the Company.

 

		(oo)	“Post-Closing
                                         Tax Period” means, with respect to the Company (a) any Tax period beginning
                                         after the Closing Date and (b) in the case of any Straddle Period, the portion of such
                                         Tax period starting the day following the Closing Date.

 

		(pp)	“Pre-Closing
                                         Tax Period” means, with respect to the Company, as applicable (a) any Tax period
                                         ending on or before the Closing Date and (b) in the case of any Straddle Period, the
                                         portion of such Tax period up to and including the Closing Date.

 

		(qq)	“Regulatory
                                         License” means the license and related approvals authorizing the Company to
                                         operate as a grower/processor in the state of Pennsylvania, that can lawfully cultivate,
                                         produce, process and sell cannabis and cannabis products, which include, but are not
                                         limited to the license granted pursuant to the Pennsylvania Medical Marijuana Act.

 

		(rr)	“Release”
                                         means disposing, discharging, injecting, spilling, leaking, leaching, dumping, emitting,
                                         escaping, emptying, seeping, placing and the like into or upon any land or water or air
                                         or otherwise entering into the environment.

 

		(ss)	“Selling
                                         Parties Disclosure Schedule” means the Disclosure Schedule attached hereto,
                                         dated as of the date hereof, delivered by the Selling Parties to Buyer in connection
                                         with this Agreement.

 

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		(tt)	“Tax(es)”
                                         means any federal, state, local or non-U.S. tax or charge imposed by any Taxing Authority
                                         (including, without limitation, any income (net or gross), gross receipts, profits, windfall
                                         profit, premium, customs duty, capital stock, sales, use, goods and services, ad valorem,
                                         franchise, license, stamp, withholding, employment, social security (or similar), workers
                                         compensation, unemployment compensation, disability, employment, payroll, severance,
                                         occupation, transfer, excise, import, real property, personal property, intangible property,
                                         occupancy, registration, recording, value added, minimum, unclaimed property, escheat,
                                         alternative minimum, environmental or estimated tax), including any liability therefor
                                         as a transferee (including under Section 6901 of the Code or similar provision of applicable
                                         Law) or successor, as a result of Treasury Regulation Section 1.1502-6 or similar provision
                                         of applicable Law or as a result of any Tax sharing, indemnification or similar agreement
                                         (other than any Contract the principal purpose of which is unrelated to Taxes), together
                                         with any interest, penalty, additions to tax or additional amount imposed with respect
                                         thereto.

 

		(uu)	“Tax
                                         Return” means any return, information return, declaration, claim for refund
                                         or credit, report or any similar statement, and any amendment thereto, including any
                                         attached schedule and supporting information, whether on a separate, consolidated, combined,
                                         unitary or other basis, that is filed or required to be filed with any Taxing Authority
                                         in connection with the determination, assessment, collection or payment of a Tax or the
                                         administration of any Law relating to any Tax.

 

		(vv)	“Taxing
                                         Authority” means the Internal Revenue Service and any other Governmental Authority
                                         responsible for the collection, assessment or imposition of any Tax or the administration
                                         of any Law relating to any Tax.

 

		(ww)	“Technology”
                                         means all inventions, works, discoveries, innovations, know-how, information (including
                                         ideas, research and development, formulas, algorithms, compositions, processes and techniques,
                                         data, designs, drawings, specifications, customer and supplier lists, pricing and cost
                                         information, business and marketing plans and proposals, graphics, illustrations, artwork,
                                         documentation, and manuals), databases, computer software, firmware, computer hardware,
                                         integrated circuits and integrated circuit masks, electronic, electrical, and mechanical
                                         equipment, and all other forms of technology, including improvements, modifications,
                                         works in process, derivatives, or changes, whether tangible or intangible, embodied in
                                         any form, whether or not protectable or protected by patent, copyright, mask work right,
                                         trade secret law, or otherwise, and all documents and other materials recording any of
                                         the foregoing.

 

		(xx)	“Transaction
                                         Expenses” means all fees, costs and expenses incurred by or on behalf of, or
                                         otherwise payable by the Company or any of its Affiliates (or incurred by or on behalf
                                         of, or otherwise payable by the Member) that have not been paid as of the Closing Date
                                         and that will become or remain a liability of the Company (a) to third parties in connection
                                         with the consideration, preparation, documentation, execution and consummation of the
                                         transactions contemplated by this Agreement, or any alternative transactions, including
                                         fees and disbursements of the Member, or any attorneys, financial advisors, accountants
                                         and other advisors and service providers to the extent payable by the Company, and (b)
                                         in respect of any bonus, severance or other payment or other form of cash compensation
                                         or benefits that is created, accelerated, accrues or becomes payable by the Company in
                                         connection with the consummation of the transactions contemplated by this Agreement,
                                         to any present or former manager/director, shareholder, employee, independent contractor
                                         or consultant thereof, including pursuant to any employment or consulting agreement,
                                         benefit plan or any other Contract, including any Taxes payable on or triggered by any
                                         such payment.

 

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Section
1.02Interpretive Provisions. Unless the express context otherwise requires:

 

		(a)	the
                                         words “hereof,” “herein,” and “hereunder” and words
                                         of similar import, when used in this Agreement, shall refer to this Agreement as a whole
                                         and not to any particular provision of this Agreement;

 

		(b)	terms
                                         defined in the singular shall have a comparable meaning when used in the plural, and
                                         vice versa;

 

		(c)	the
                                         terms “Dollars” and “$” mean United States Dollars;

 

		(d)	references
                                         herein to a specific Section, Subsection, Recital, Schedule or Exhibit shall refer, respectively,
                                         to Sections, Subsections, Recitals, Schedules or Exhibits of this Agreement;

 

		(e)	wherever
                                         the word “include,” “includes,” or “including” is
                                         used in this Agreement, it shall be deemed to be followed by the words “without
                                         limitation”;

 

		(f)	references
                                         herein to any gender shall include each other gender;

 

		(g)	references
                                         herein to any Person shall include such Person’s heirs, executors, personal representatives,
                                         administrators, successors and assigns; provided, however, that nothing contained in
                                         this Section 1.02(g) is intended to authorize any assignment or transfer not otherwise
                                         permitted by this Agreement;

 

		(h)	references
                                         herein to a Person in a particular capacity or capacities shall exclude such Person in
                                         any other capacity;

 

		(i)	references
                                         herein to any Contract or agreement (including this Agreement) mean such Contract or
                                         agreement as amended, supplemented or modified from time to time prior to the Closing
                                         in accordance with the terms thereof;

 

		(j)	with
                                         respect to the determination of any period of time, the word “from” means
                                         “from and including” and the words “to” and “until”
                                         each means “to but excluding”;

 

		(k)	references
                                         herein to any Law or any license mean such Law or license as amended, modified, codified,
                                         reenacted, supplemented or superseded in whole or in part, prior to the Closing; and

 

		(l)	references
                                         herein to any Law shall be deemed also to refer to all rules and regulations promulgated
                                         thereunder.

 

Article
II

PURCHASE AND SALE of Acquired interests

 

Section
2.01Purchase and Sale of Acquired Interests.

 

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		(a)	Subject
                                         to the terms and conditions of this Agreement, at the Closing, the Member shall sell,
                                         assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from the Member,
                                         the Acquired Interests, free and clear of any and all Liens, other than Liens imposed
                                         under the Securities Act of 1933, as amended (the “Securities Act”),
                                         and any other securities Laws, Liens in favor of Enterprises or its Affiliates pursuant
                                         to Indebtedness issued by Member or its Affiliates to Enterprises, or the Organizational
                                         Documents of the Company (the “Member Permitted Liens”).

 

		(b)	The
                                         consideration for the purchase and sale of the Acquired Interests (the “Transaction
                                         Consideration”) shall be comprised of the following:

 

		(i)	$15,400,000
                                         (the “Cash Payment”) in cash to be paid by Buyer to the Member at
                                         the Closing, subject to adjustment as set forth in Section 2.03(a)(i); and

 

		(ii)	A
                                         promissory note to be issued by Buyer to the Member at the Closing in the principal amount
                                         of $10,000,000, substantially in the form attached hereto as Exhibit B-1 (the
                                         “Buyer Note”), with the Buyer Note being subject to set-off pursuant
                                         to Section 7.08(c) in order to satisfy indemnity obligations of the Member.

 

Section
2.02Certificates. On the Closing Date, the Member shall deliver to Buyer a duly executed certificate (the “Company
Closing Certificate”) setting forth the Member’s good faith estimate of a balance sheet of the Company as of the
Closing Date prepared in accordance with the same accounting principles used in the preparation of the Financial Statements (as
hereinafter defined), which shall reflect (i) the Member’s good faith estimate of the assets and liabilities of the Company
as of the Closing Date (ii) the Member’s good faith estimate of the amount of Closing Date Indebtedness, and (iii) the Company’s
good faith estimate of the amount of Closing Date Transaction Expenses.

 

Section
2.03Closing Cash Payments. Buyer shall make the following cash payments to the Member at the Closing:

 

		(a)	to
                                         an account specified by the Member on the Closing Date, by wire transfer of immediately
                                         available funds, an amount in cash equal to the Cash Payment minus (A) the amount
                                         of the Closing Date Indebtedness, and minus (B) the amount of the Closing Date
                                         Transaction Expenses;

 

		(b)	to
                                         the accounts specified by the Member on the Closing Date, by wire transfer of immediately
                                         available funds, such cash amounts as are necessary to pay in full the Closing Date Indebtedness
                                         set forth in the Company Closing Certificate; and

 

		(c)	to
                                         accounts specified by the Member on the Closing Date, by wire transfer of immediately
                                         available funds, such cash amounts as are necessary to pay in full the Closing Date Transaction
                                         Expenses set forth in the Company Closing Certificate.

 

Section
2.04Closing. Subject to the terms and conditions of this Agreement, the sale and purchase of the Acquired Interests
shall take place at a closing (the “Closing”) to be held remotely via the electronic exchange of counterpart
signature pages no later than two (2) Business Days after the last of the applicable conditions to Closing set forth in Sections
5.01 and 5.02 have been satisfied or waived (other than conditions which, by their nature, are to be satisfied on the
Closing Date), or in such other manner or at such other time or date as the Member and Buyer may mutually agree upon in writing
(in either case, the “Closing Date”).

 

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Section
2.05Closing Deliveries by the Selling Parties. On or prior to the Closing, the Selling Parties shall deliver or cause
to be delivered to Buyer the deliveries set forth in this Section 2.05

 

		(a)	executed
                                         copies of each third-party consent, approval, notification or amendment listed on Schedule
                                         2.05(a), which is required to be delivered by the Company or the Member;

 

		(b)	executed
                                         counterparts of each of the Ancillary Agreements;

 

		(c)	an
                                         assignment of membership interest assigning the Acquired Interests to Buyer, in form
                                         and substance reasonably satisfactory to Buyer, duly executed by the Member;

 

		(d)	certificates
                                         of good standing for the Company issued by the Pennsylvania Secretary of State and from
                                         each jurisdiction where the Company is qualified to do business as a foreign limited
                                         liability company, dated as of a date not earlier than ten (10) days prior to the Closing;

 

		(e)	complete
                                         and correct copies of the minute books, equity books, ledgers and registers, if any,
                                         and other records relating to the organization, ownership and maintenance of the Company,
                                         if not currently located on the premises of the Company;

 

		(f)	a
                                         certification of non-foreign status duly executed by an officer of the Member dated as
                                         of the Closing Date, in form and substance required under Regulations Section 1.1445-2(b)
                                         and reasonably acceptable to Buyer;

 

		(g)	the
                                         resignations, effective as of the Closing, of such of the managers and officers of the
                                         Company as are designated by Buyer;

 

		(h)	payoff
                                         letters, and Lien discharges (or agreements therefor), each in a form reasonably satisfactory
                                         to Buyer from each holder (other than Enterprises) of outstanding Indebtedness (the “Payoff
                                         Letters”), such Payoff Letters to also specify the amount owed to such holders
                                         as well as wire instructions for any payment to be made to any of them;

 

		(i)	agreements
                                         or instruments evidencing the termination of the agreements set forth on Schedule
                                         2.05(i), in each case duly executed by each party thereto and providing that neither
                                         Buyer nor the Company will have any liability or obligation under any such terminated
                                         agreements following the Closing;

 

		(j)	the
                                         Cannabis Inventory;

 

		(k)	a
                                         certificate from a duly authorized officer or manager of each of the Member and the Company,
                                         dated as of the Closing, (i) certifying and attaching true and complete copies of (A)
                                         the resolutions duly and validly adopted by the Board of Directors (or its equivalent)
                                         of the Member and the Company authorizing the execution, delivery and performance of
                                         this Agreement, the Ancillary Agreements to which the Member is a party and the consummation
                                         of the transactions contemplated hereby and thereby; (B) the Organizational Documents
                                         of the Member and the Company and (ii) certifying and evidencing that the conditions
                                         set forth in Sections 5.01(a)-(e) have been satisfied and that the statements
                                         therein are true and correct;

 

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		(l)	such
                                         other certificates, documents, schedules, agreements, resolutions, consents, approvals,
                                         rulings or other instruments required by this Agreement to be so delivered at or prior
                                         to the Closing together with such other items as may be reasonably requested by Buyer
                                         in order to effectuate or evidence the transactions with respect to the Acquired Interests
                                         contemplated hereby.

 

Section
2.06Closing Deliveries by Buyer. At the Closing, Buyer shall deliver or cause to be delivered to the Selling Parties
the deliveries set forth in this Section 2.06:

 

		(a)	Duly
                                         executed copies of the Buyer Note and a security agreement granting the Member a security
                                         interest in the Acquired Interests and all of the Company’s assets, substantially
                                         in the form attached hereto as Exhibit B-2 (the “Buyer Security Agreement”);

 

		(b)	the
                                         payments contemplated by Section 2.03;

 

		(c)	executed
                                         counterparts of each of the applicable Ancillary Agreements;

 

		(d)	a
                                         certificate from a duly authorized officer of Buyer, dated as of the Closing, (i) certifying
                                         and attaching true and complete copies of (A) the resolutions duly and validly adopted
                                         by the Board of Directors (or its equivalent) of Buyer authorizing the execution, delivery
                                         and performance of this Agreement, the Ancillary Agreements to which Buyer is a party
                                         and the consummation of the transactions contemplated hereby and thereby; (B) the Organizational
                                         Documents of Buyer and (ii) certifying and evidencing that the conditions set forth in
                                         Section 5.02(a), Section 5.02(b), and Section 5.02(c) have been
                                         satisfied and that the statements therein are true and correct;

 

		(e)	certificates
                                         of good standing for Buyer issued by the applicable Governmental Authority of its place
                                         of formation and from each jurisdiction where Buyer is qualified to do business as a
                                         foreign corporation, dated as of a date not earlier than 10 days prior to the Closing;
                                         and

 

		(f)	such
                                         other certificates, documents, schedules, agreements, resolutions, consents, approvals,
                                         rulings or other instruments required by this Agreement to be so delivered at or prior
                                         to the Closing together with such other items as may be reasonably requested by Company
                                         and/or the Member in order to effectuate or evidence the transactions contemplated hereby;
                                         and

 

Section
2.07Conveyance Taxes. The Member shall pay all sales, use, value added, transfer, stamp, registration, documentary,
excise, property transfer or gains, or similar Taxes incurred as a result of the sale of the Acquired Interests contemplated by
this Agreement.

 

Section
2.08Withholding Tax. Buyer shall be entitled to deduct and withhold from the cash portion of the Transaction Consideration
such amounts that Buyer may be required to deduct and withhold under the Code or any provision of applicable Tax Law. To the extent
that amounts are so deducted or withheld, such withheld or deducted amounts shall be treated for all purposes of this Agreement
as having been paid to the Member.

 

Section
2.09Concurrent Documentation. Concurrently with the execution of this Agreement, the Parent and Enterprises shall have
duly executed a guaranty whereby the Parent and Enterprises, severally and jointly, guarantee the obligations of Buyer under this
Agreement, the Buyer Note and the Buyer Security Agreement (the “Guaranty”).

 

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Article
III

REPRESENTATIONS AND WARRANTIES OF THE SELLING PARTIES

 

Except
as set forth in the Selling Parties Disclosure Schedule, the Selling Parties jointly and severally represent and warrant to Buyer
that the statements contained in this Article III are true and correct as of the Effective Date and as of the Closing Date.

 

Section
3.01Authority of the Selling Parties. The Selling Parties have full legal right, power, authority and capacity to enter
into this Agreement and the Ancillary Agreements to which each Selling Party is a party, to carry out their respective obligations
hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. This Agreement has been, and upon
their execution of the Ancillary Agreements to which each Selling Party is a party shall have been, duly executed and delivered
by the Selling Parties, and (assuming due authorization, execution, and delivery by each other party hereto and thereto) this
Agreement constitutes, and upon their execution the Ancillary Agreements to which each Selling Party is a party shall constitute,
legal, valid, and binding obligations of the Selling Parties, enforceable against the Selling Parties in accordance with their
respective terms except to the extent enforcement may be affected by Laws relating to bankruptcy, insolvency, creditors’
rights and by the availability of injunctive relief, specific performance and other equitable remedies.

 

Section
3.02Company Organization and Authority; Execution; Enforceability. The Company (i) is a limited liability company validly
existing and in good standing under the laws of Pennsylvania; and (ii) is duly licensed or qualified to do business and is in
good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such licensing
or qualification necessary, except where the failure to be duly licensed or qualified to do business would not have a Material
Adverse Effect. The Company has all necessary limited liability company power and authority to enter into this Agreement and to
carry out its obligations hereunder and to consummate the transactions contemplated hereby. Section 3.02 of the Selling
Parties Disclosure Schedule sets forth each jurisdiction where the Company is licensed or qualified to do business.

 

Section
3.03Subsidiaries. There are no corporations, limited liability companies, partnerships, joint ventures, associations
or other entities in which the Company owns, of record or beneficially, any direct or indirect equity or other interest or any
right (contingent or otherwise) to acquire the same, and the Company has no obligation to make any investment (in the form of
a loan, capital contribution or otherwise) in any Person.

 

Section
3.04Capitalization.

 

		(a)	As
                                         of the Effective Date, the record ownership of all of the membership interests of the
                                         Company is as set forth on Section 3.04 of the Selling Parties Disclosure Schedule.
                                         Immediately prior to the Closing the Member will be the record owner of and will have
                                         good and valid title to the Acquired Interests, free and clear of all Liens (other than
                                         the Member Permitted Liens). The Acquired Interests constitute 100% of the total Membership
                                         Interests immediately prior to the Closing, and immediately prior to the Closing, all
                                         of the Acquired Interests will be owned of record or beneficially by the Member. The
                                         Acquired Interests have been duly authorized and are validly issued and fully-paid. Upon
                                         consummation of the transactions contemplated by this Agreement, Buyer shall own all
                                         of the Acquired Interests, free and clear of all Liens (other than Member Permitted Liens).

 

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		(b)	The
                                         Acquired Interests were issued in compliance with applicable Laws. The Acquired Interests
                                         were not issued in violation of the Organizational Documents of the Company or any other
                                         agreement, arrangement, or commitment to which the Member or the Company is a party and
                                         are not subject to or in violation of any preemptive or similar rights of any Person
                                         granted by the Member or the Company.

 

		(c)	Except
                                         as set forth in the Organizational Documents of the Member, there are no outstanding
                                         or authorized options, warrants, convertible securities or other rights, agreements,
                                         arrangements or commitments of any character relating to any Membership Interests in
                                         the Company granted by the Company or the Member or obligating the Member or the Company
                                         to issue or sell any Membership Interests, or any other interest, in the Company and
                                         there are no outstanding securities convertible or exercisable into or exchangeable for
                                         Membership Interests of the Company or any other equity security of the Company.

 

		(d)	Other
                                         than the Organizational Documents, there are no voting trusts, proxies or other agreements
                                         or understandings to which the Member or Company is a party in effect with respect to
                                         the voting or transfer of any of the Acquired Interests.

 

		(e)	The
                                         offer, issuance and sale of the Acquired Interests were (a) exempt from the registration
                                         and prospectus delivery requirements of the Securities Act, (b) registered or qualified
                                         (or were exempt from registration or qualification) under the registration or qualification
                                         requirements of all applicable state securities Laws and (c) accomplished in conformity
                                         with all other applicable securities Laws. None of such Acquired Interests are subject
                                         to a right of withdrawal or a right of rescission under any federal or state securities
                                         or “Blue Sky” Law.

 

Section
3.05No Conflict. Assuming receipt of the consents and other items set forth on Section 3.05 of the Selling Parties
Disclosure Schedule, the execution, delivery and performance by the Selling Parties of this Agreement and the Ancillary Agreements
to which each is a party and the consummation of the transactions contemplated hereby and thereby do not and will not (a) violate,
conflict with or result in the breach of any provision of the Organizational Documents of the Company or the Member; (b) conflict
with or result in a violation or breach in any material respect of any Law or Governmental Order applicable to the Selling Parties
or any of their respective assets, properties or businesses, including the Business; (c) conflict with, result in any breach of,
constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, or give
to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any Contract to which
any Selling Party is a party or by which any Selling Party is bound or by which any of the Company’s properties or assets
are subject; (d) result in the creation of any Lien on any of the Company’s properties or assets; or (e) conflict with or
result in a breach of any of the terms or requirements of, or give any Governmental Authority the right to revoke, withdraw, suspend,
cancel, terminate or modify, any material Permit that is held by or on behalf of the Company.

 

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Section
3.06Consents. Except as set forth in Section 3.06 of the Selling Parties Disclosure Schedule, the execution,
delivery and performance by the Selling Parties of this Agreement and each Ancillary Agreement to which each is a party do not
and will not require any consent, approval, authorization or other order of, action by, filing with or notification to, any Governmental
Authority or any other Person related to the Company.

 

Section
3.07Financial Statements; Allocation Statements.

 

		(a)	Complete
                                         copies of the Company’s unaudited annual financial statements consisting of the
                                         balance sheet of the Company as of December 31 in each of the years 2018 and 2019, and
                                         the related statements of income and retained earnings, member equity and cash flow for
                                         the years then ended (collectively, the “Financial Statements”) have
                                         been delivered to Buyer. In addition, the following financial statements and records
                                         of the Company have been delivered to Buyer: (i) the 2018 Form 1065 for the Company;
                                         (ii) the 2018 Book and Tax basis depreciation schedules of the Company; (iii) the 2018
                                         balance sheet and profit and loss statement; (iv) the 2019 first quarter balance sheet
                                         and profit and loss statement; and (v) the changes in fixed assets between January 1,
                                         2019 and March 31, 2019 (collectively, the “Allocation Statements”).
                                         The Financial Statements and the Allocation Statements have been prepared in accordance
                                         with the Company’s past practice throughout the periods indicated. The Financial
                                         Statements and the Allocation Statements are based on the books and records of the Company.
                                         The Financial Statements fairly present in all material respects (i) the financial condition
                                         of the Company as of the respective dates they were prepared and (ii) the results of
                                         the operations of the Company for the periods indicated. The balance sheet of the Company
                                         as of December 31, 2019 is referred to herein as the “Balance Sheet”
                                         and the date thereof as the “Balance Sheet Date”.

 

		(b)	The
                                         Company has established and adhered to a system of internal accounting controls which,
                                         to its Knowledge, are reasonably appropriate for its size and the industry in which it
                                         operates which are designed to provide assurance regarding the reliability of financial
                                         reporting. Since January 1, 2016, there has never been, to the Company’s Knowledge,
                                         any fraud or material wrongdoing that involves any of the officers or directors of the
                                         Company or other employees who have a role in the preparation of financial statements
                                         or the internal accounting controls used by the Company.

 

Section
3.08Undisclosed Liabilities. The Company has no Liabilities, except (a) those which are adequately reflected or reserved
against in the Balance Sheet as of the Balance Sheet Date, (b) contractual obligations incurred in the ordinary course of business,
and (c) those which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet
Date and which are not, individually or in the aggregate, material in amount.

 

Section
3.09Bank Accounts. Set forth in Section 3.09 of the Selling Parties Disclosure Schedule is a complete and correct
list of all accounts maintained by or for the benefit of the Company at any bank or financial institution (the “Company
Bank Accounts”), showing the type and account number of each such account, and the names of the persons authorized as
signatories thereon or to act or deal in connection therewith. All funds received or collected prior to the Closing by the Company,
the Member, any of their respective Affiliates or any signatory on any Company Bank Account which arise from any marijuana or
marijuana products that were shipped by the Company on or after March 18, 2020, if received, have been deposited in the appropriate
Company Bank Account and shall remain in such Company Bank Account for the benefit of Buyer after the Closing. To the extent any
outstanding checks written for any accounts payable of the Company have not cleared prior to the Closing, a sufficient amount
of funds (in addition to any amounts referred to in the preceding sentence) remain in the appropriate Company Bank Account to
cover such transactions. For clarity, upon consummation of the transactions contemplated by this Agreement, the Company shall
have sole control of all Company Bank Accounts.

 

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Section
3.10Indebtedness. Set forth in Section 3.10 of the Selling Parties Disclosure Schedule is an accurate and complete
summary of all Indebtedness of the Company to any Person as of the Effective Date.

 

Section
3.11Absence of Certain Facts or Events. Since the Balance Sheet Date, the Business of the Company has been conducted
in all material respects in the ordinary course of business consistent with past practice and there has not been, with respect
to the Company:

 

		(a)	a
                                         Material Adverse Effect;

 

		(b)	any
                                         damage, destruction or loss to the assets or Business of the Company, whether covered
                                         by insurance or not, involving damages, losses or assets valued in excess of $50,000;

 

		(c)	(A)
                                         an amendment to or entering into of any written employment or independent contractor
                                         agreements or any written severance or termination agreements with, any increase in the
                                         compensation payable or to become payable by the Company to, any employee, independent
                                         contractor, manager/director or officer whose annual remuneration (which, for purposes
                                         of this Section 3.11(c)(A) includes base salary and targeted commissions and bonuses)
                                         exceeds $50,000 or (B) any establishment or termination of, or increase in or amendment
                                         or modification to any Benefit Plan that, in any case, is not in the ordinary course
                                         of business, consistent with past practice;

 

		(d)	any
                                         issuance, sale, transfer or disposition of a Membership Interest or other equity interest
                                         of the Company or options or rights to acquire a Membership Interest or other equity
                                         interest of the Company, any redemption, repurchase or other cancellation or acquisition
                                         of outstanding Membership Interests or other equity interest of the Company, any declaration,
                                         setting aside or payment of any distribution thereon (other than cash dividends or distributions),
                                         any recapitalization, reclassification, unit split or reverse unit split, any merger
                                         of the Company with any Person, any purchase or other acquisition by the Company of capital
                                         stock or other interest in any other Person, any purchase or other acquisition by the
                                         Company of all or substantially all of the business or assets of any other Person, any
                                         transfer or sale of a substantial portion of the Business or the Company’s assets
                                         to any Person or any agreement to take any such actions;

 

		(e)	any
                                         sale, assignment, modification or transfer outside of the ordinary course of business
                                         of any contractual rights, claims or other assets of the Company valued at more than
                                         $50,000 in the aggregate;

 

		(f)	any
                                         Lien placed on the Company’s assets to secure Indebtedness, or any other Lien placed
                                         on any material asset of the Company (other than Permitted Liens);

 

		(g)	an
                                         incurrence of any Liability of the Company as a result of indebtedness for borrowed money
                                         or guaranties thereof or any capital expenditure, in either case, in excess of $50,000;

 

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		(h)	any
                                         failure to pay or perform any obligation of the Company involving more than $50,000 as,
                                         when and to the extent due other than pursuant to a good faith defense or contractual
                                         right of setoff;

 

		(i)	any
                                         amendment or termination of the Organizational Documents of the Company or amendment,
                                         termination or modification of any Material Contract;

 

		(j)	any
                                         material transaction entered into or consummated by the Company not in the ordinary course
                                         of business;

 

		(k)	any
                                         forgiveness or waiver of any obligations or performance (past, present or future) owed
                                         to the Company other than in the ordinary course of business;

 

		(l)	any
                                         material change in any method of accounting or accounting policy (including with respect
                                         to reserves) or policy or procedure relating to financial reporting, internal controls,
                                         cash management, accounts receivable collection or accounts payable practices of the
                                         Company;

 

		(m)	any
                                         waiver, settlement or consent to the settlement of, any material claims made by or against
                                         the Company or entrance into any consent decree;

 

		(n)	any
                                         material change in accounting or Tax principles, methods, entity classification or policies;

 

		(o)	any
                                         material change or modification to the credit, collection or payment policies, procedures
                                         or practices of the Company;

 

		(p)	any
                                         amendment to any Tax Return, any Tax election or modification or revocation of any existing
                                         Tax election, entry into any Tax indemnity, sharing or allocation agreement, surrender
                                         of any right to claim a refund, offset or other reduction of Taxes, consent to any extension
                                         or waiver of the limitations period applicable to any Tax claim or assessment relating
                                         to the Company, any change to any Tax accounting method, election or convention, or any
                                         settlement or compromise of any Tax claims;

 

		(q)	any
                                         hiring or promoting any person as or to (as the case may be) an officer or hiring or
                                         promoting any employee who is not an officer, except to fill a vacancy in the ordinary
                                         course of business; or

 

		(r)	any
                                         agreement to do any of the things described in the preceding clauses.

 

Section
3.12Litigation. Except as set forth in Section 3.12 of the Selling Parties Disclosure Schedule, for the two-year
period prior to the Effective Date, there have been no Actions by or against the Company or affecting any of the assets or the
Business of the Company, and there are no Actions pending or, to the Company’s Knowledge, threatened, (a) by or against
the Company affecting any of its properties or assets; or (b) by or against the Company or the Member that challenges or seeks
to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement or the consummation of the transactions
contemplated hereby. To the Company’s Knowledge, except as set forth in Section 3.12 of the Selling Parties Disclosure
Schedule, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action. Except
as set forth in Section 3.12 of the Selling Parties Disclosure Schedule, since its formation, the Company has not been
subject to any Governmental Order, and there is no Governmental Order pending or, to the Company’s Knowledge, threatened
against the Company.

 

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Section
3.13Compliance with Laws; Permits.

 

		(a)	The
                                         Company has conducted and continues to conduct the Business in accordance in all material
                                         respects with all Laws and Governmental Orders applicable to the Company and its assets
                                         and the Business, and the Company is not in material violation of any such Law or Governmental
                                         Order. No claim has been made in writing by any Governmental Authority to the effect
                                         that the Business conducted or any asset owned or used by the Company fails to comply,
                                         in any respect, with any Law or Governmental Order.

 

		(b)	Section
                                         3.13 of the Selling Parties Disclosure Schedule contains a complete and accurate
                                         list of all material Permits held by the Company, and the Company possesses and is in
                                         material compliance with all material Permits required to operate the Business. Each
                                         such material Permit is valid and in full force and effect. None of such material Permits
                                         will be impaired or terminated or become terminable as a result of the transactions contemplated
                                         hereby.

 

		(c)	The
                                         Company is the holder of the Regulatory License. The Regulatory License is in full force
                                         and effect in all material respects and has not been revoked, suspended, cancelled, rescinded,
                                         terminated, modified and has not expired. There are no pending or, to the Company’s
                                         Knowledge, threatened Actions by or before any Governmental Authority to revoke, suspend,
                                         cancel, rescind, terminate and/or materially adversely modify the Regulatory License.

 

Section
3.14Environmental Matters.

 

		(a)	The
                                         Company is currently and has at all times been in compliance in all material respects
                                         with all Environmental Laws, and has not, and the Member has not, received from any Person
                                         any Environmental Notice or Environmental Claim or written request for information pursuant
                                         to Environmental Laws with respect to the Company or the Business, which, in each case,
                                         either remains pending or unresolved or is the source of ongoing obligations or requirement.

 

		(b)	The
                                         Company possesses and is in compliance in all material respects with all Environmental
                                         Permits necessary for the operation of the Business and the operation or use of the portion
                                         of the Leased Real Property which is leased by the Company and the assets of the Company.
                                         All Environmental Permits obtained by the Company are in full force and effect in accordance
                                         with Environmental Laws. To the Company’s Knowledge, there is no condition, event,
                                         or circumstance that could reasonably be expected to prevent or impede the ownership,
                                         lease, operation, or use of the Business or assets of the Company. With respect to any
                                         Environmental Permits, the Company has not received any Environmental Notice or written
                                         communication regarding any material adverse change in the status or terms and conditions
                                         of the same.

 

		(c)	To
                                         the Company’s Knowledge, there has been no Release of Hazardous Materials by the
                                         Company in contravention of Environmental Laws with respect to the Business, the assets
                                         of the Company, or any real property (or the applicable portion, if leased or operated)
                                         currently owned, operated, or leased by the Company. The Company has not received an
                                         Environmental Notice that any real property (or the applicable portion, if leased or
                                         operated) currently owned, operated or leased in connection with the Business (including
                                         soils, groundwater, surface water, buildings and other structure located on any such
                                         real property) has been contaminated with any Hazardous Material arising from the actions
                                         of the Company that could reasonably be expected to result in an Environmental Claim
                                         against or a violation of Environmental Laws or term of any Environmental Permits by
                                         the Company.

 

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		(d)	To
                                         the Company’s Knowledge, there are no active or abandoned aboveground or underground
                                         storage tanks owned or operated by the Company.

 

		(e)	To
                                         the Company’s Knowledge, there are no Hazardous Materials treatment, storage, or
                                         disposal facilities or locations used by the Company for which the Company may retain
                                         liability. To the Company’s Knowledge, none of such above facilities or locations
                                         has been placed or, to the Company’s Knowledge, proposed for placement on the National
                                         Priorities List under CERCLA or any similar state list. The Company has not received
                                         any Environmental Notice regarding potential liabilities with respect to such off-site
                                         Hazardous Materials treatment, storage or disposal facilities or locations used by the
                                         Company.

 

		(f)	The
                                         Company has not retained or assumed, by Contract or operation of Law, any liabilities
                                         or obligations of third parties under Environmental Laws.

 

		(g)	The
                                         Company has provided or otherwise made available to Buyer and listed in Section 3.14(g)
                                         of the Selling Parties Disclosure Schedule: (i) any and all environmental reports,
                                         studies, audits, records, sampling data, site assessments, risk assessments, economic
                                         models and other similar documents with respect to the Business, the assets of the Company,
                                         or any currently or formerly owned, operated or leased real property that are in the
                                         possession or control of the Company related to compliance with Environmental Laws, Environmental
                                         Claims, an Environmental Notice or the Release of Hazardous Materials; and (ii) any and
                                         all material documents concerning planned or anticipated capital expenditures required
                                         to reduce, offset, limit or otherwise control pollution or emissions, manage waste or
                                         otherwise ensure compliance with current or future Environmental Laws (including, without
                                         limitation, costs of remediation, pollution control equipment and operational changes).

 

		(h)	There
                                         are no Environmental Claims pending or, to the Company’s Knowledge, threatened
                                         against the Company or its use of the Leased Real Property.

 

		(i)	Neither
                                         the execution of this Agreement by the Company, nor the consummation of the transactions
                                         contemplated hereby, will require any notice to or consent of any Governmental Authority
                                         or third party pursuant to any applicable Environmental Laws or Environmental Permits.

 

Section
3.15Material Contracts. Section 3.15 of the Selling Parties Disclosure Schedule contains an accurate and complete
list of the following outstanding Contracts (including all amendments and supplements thereto) to which the Company is a party
or by which the Company or any of its properties or assets is bound (collectively, the “Material Contracts”):

 

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		(a)	each
                                         Contract involving aggregate consideration in excess of $50,000 or requiring performance
                                         by any party more than one year from the date hereof, which, in each case, cannot be
                                         cancelled by the Company without penalty or without more than 90 days’ notice;

 

		(b)	each
                                         Contract with employees, third party consultants, independent contractors or other service
                                         providers of the Company, which cannot be cancelled by the Company without penalty or
                                         without more than 30 days’ notice;

 

		(c)	each
                                         Contract involving a sharing of profits, losses, costs or Liabilities by the Company
                                         with any other Person, including any joint venture, partnership, alliance or similar
                                         agreement (other than the Organizational Documents);

 

		(d)	each
                                         Contract containing covenants that restrict or purport to restrict the Company’s
                                         business activity or limit the freedom of the Company to engage in any line of business,
                                         to compete with any Person, to compete in any geographical area or to solicit any Person
                                         for business, employment or other purposes;

 

		(e)	each
                                         Contract or instrument that creates, gives rise to or otherwise contemplates any Lien
                                         over or in respect of any property or asset of the Company;

 

		(f)	each
                                         Contract providing for the Company’s lease of any Leased Real Property (whether
                                         as lessor or lessee);

 

		(g)	each
                                         Contract providing for the Company’s lease of Personal Property for payments or
                                         other consideration of more than $50,000 in any 12-month period;

 

		(h)	each
                                         Contract that relates to Indebtedness;

 

		(i)	each
                                         Contract or letter of intent relating to the acquisition or disposition by the Company
                                         (whether by merger, consolidation or other business combination, sale of securities,
                                         sale of assets or otherwise), outside of the ordinary course of business, of assets or
                                         securities;

 

		(j)	each
                                         Contract involving monies or anything of value (including any compensation or benefits)
                                         that would become payable, owed, accelerated or vested upon the execution of this Agreement
                                         or the consummation of the transactions contemplated by this Agreement or any other change
                                         of control of the Company;

 

		(k)	each
                                         Contract involving capital expenditures by the Company in excess of $50,000;

 

		(l)	each
                                         warranty, guaranty or similar undertaking with respect to performance of a Contract extended
                                         by the Company, other than in the ordinary course of business;

 

		(m)	each
                                         Contract involving loans by the Company to any Person;

 

		(n)	each
                                         Contract between the Company, on the one hand, and a Governmental Authority, on the other
                                         hand;

 

		(o)	each
                                         agency, dealer, distributor, sales representative, marketing or other similar Contract
                                         with the Company;

 

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		(p)	each
                                         Contract for management services or financial advisory services (other than any Contract
                                         with the Company’s accounting advisors);

 

		(q)	each
                                         settlement, resolution or similar Contract involving payments by the Company after the
                                         Closing or any injunctive or similar equitable obligations on the Company;

 

		(r)	each
                                         Contract between the Company, on the one hand, and the Member or any Affiliate of any
                                         Selling Party, on the other hand;

 

		(s)	each
                                         collective bargaining agreement or Contract with any Union or other labor organization
                                         to which the Company is a party;

 

		(t)	each
                                         agreement to enter into any Contract of the type described in subsections (a) through
                                         (s) of this Section 3.15.

 

Each
Material Contract is in full force and effect and is valid and binding on and enforceable in accordance with its terms against
the Company and, to the Company’s Knowledge, against the other party or parties thereto. The Company is not in material
default under or in material breach of, or in receipt of any written claim of material default or material breach or any notice
of any intention to terminate, any Material Contract. There are no material disputes pending or, to the Company’s Knowledge,
threatened under any Material Contract. To the Company’s Knowledge, no event or circumstance has occurred that, with notice
or lapse of time or both, would constitute an event of material default under any Material Contract or result in a termination
thereof or would cause or permit the acceleration or other changes of any material right or material obligation or the loss of
any benefit thereunder. Complete and correct copies of each Material Contract (including all modifications, amendments and supplements
thereto and waivers thereunder) have been made available to Buyer.

 

Section
3.16Intellectual Property.

 

		(a)	Section
                                         3.16(a) of the Selling Parties Disclosure Schedule sets forth a true and complete
                                         list of (i) all patents and patent applications, registrations and applications for trademarks
                                         and trade names, material common law trademarks, registered copyrights and copyright
                                         applications, domain names (“Registered IP”) and material proprietary
                                         software (“Company Software”) included in the Company Intellectual
                                         Property, and (ii) all Company IP Agreements, other than commercially available off-the-shelf
                                         computer software licensed pursuant to shrink-wrap or click wrap licenses and proprietary
                                         rights agreements entered into with the Company’s employees and consultants in
                                         the ordinary course of business (copies of which have been made available to Buyer).
                                         The Company exclusively owns all right, title and interest in and to the Company Intellectual
                                         Property, including without limitation the Registered IP and Company Software listed
                                         on Section 3.16(a) of the Selling Parties Disclosure Schedule, free and clear
                                         of any Liens (other than Permitted Liens). The Company is the owner of, or has the licensed
                                         or other right to use, all Intellectual Property that is used in the business or otherwise
                                         is material to the conduct of the Business as presently conducted. The consummation of
                                         the transactions contemplated hereby will not result in the loss or impairment of any
                                         Company rights in any Company Intellectual Property, Licensed Intellectual Property,
                                         or Company Technology and will not result in the breach of, or create on behalf of any
                                         third party the right to terminate or modify any Company IP Agreements.

 

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		(b)	To
                                         the Company’s Knowledge, the Company has a valid license to use the Licensed Intellectual
                                         Property in connection with the Business, subject only to the terms of the Company IP
                                         Agreements, as the case may be. The Company is entitled to use all Company Intellectual
                                         Property, Company Technology and Licensed Intellectual Property in the continued operation
                                         of the Business without any Known infringement, misappropriation or violation of any
                                         Intellectual Property rights of any third party, subject only to the terms of the Company
                                         IP Agreements, as the case may be. The Registered IP is valid and enforceable, and no
                                         claim has been threatened in writing against the Company alleging that the Registered
                                         IP is invalid or unenforceable or challenging the Company ownership in whole or in part.

 

		(c)	Except
                                         as disclosed in Section 3.16(c) of the Selling Parties Disclosure Schedule, no
                                         Action alleging that the Company, or the conduct of the Business has infringed, misappropriated
                                         or otherwise violated the Intellectual Property of any third party (assuming for this
                                         purpose that references in the definition of Intellectual Property to the Company are
                                         references to such third party) has been served on the Company or is pending. To the
                                         Company’s Knowledge, the Company, and the conduct of the Business has not infringed,
                                         misappropriated or otherwise violated the Intellectual Property of any third party (assuming
                                         for this purpose that references in the definition of Intellectual Property to the Company
                                         are references to such third party) and, except as disclosed in Section 3.16(c)
                                         of the Selling Parties Disclosure Schedule, no claim has been threatened in writing against
                                         the Company alleging any of the foregoing, and, to the Company’s Knowledge, there
                                         is no basis for any claims of infringement, misappropriation or violation of any Intellectual
                                         Property rights of any third party. To the Company’s Knowledge, and except as disclosed
                                         in Section 3.16(c) of the Selling Parties Disclosure Schedule, no Person has infringed,
                                         misappropriated or otherwise violated the Company Intellectual Property, and the Company
                                         has not alleged or threatened any of the foregoing against any Person.

 

		(d)	Except
                                         as disclosed in Section 3.16(d) of the Selling Parties Disclosure Schedule, no
                                         Company Intellectual Property is subject to any outstanding decree, order, injunction,
                                         judgment or ruling restricting the use of such Company Intellectual Property or that
                                         would impair the validity or enforceability of such Company Intellectual Property.

 

		(e)	Except
                                         as disclosed in Section 3.16(e) of the Selling Parties Disclosure Schedule, each
                                         current employee, consultant and contractor (and each former employee employed and consultant
                                         and contractor engaged at any time within the three-year period prior to the Closing
                                         Date) of the Company that developed any material Company Intellectual Property has executed
                                         a confidentiality and intellectual property assignment agreement or an employment or
                                         independent contractor agreement maintaining confidentiality in any material trade secrets
                                         or proprietary information of the Company and assigning any rights in the Company Intellectual
                                         Property and Company Technology to the Company, or to the extent not assigned in such
                                         an agreement, such rights in the Company Intellectual Property are assigned to the Company
                                         as a work made for hire.

 

		(f)	Except
                                         as set forth in the Company IP Agreements, the Company is not required, obligated or
                                         under any Liability whatsoever to make any payments by way of royalties, fees or otherwise,
                                         or to provide any other consideration of any kind, to any owner or licensor of, or other
                                         claimant to, any Company Intellectual Property or Company Technology with respect to
                                         its use, licensing and distribution. None of the Company Software is subject to an obligation
                                         that (i) requires the Company to divulge to any third party the source code for such
                                         Company Software, (ii) permits the creation of any derivative work based on such Company
                                         Software or any part thereof, or (iii) permits the distribution or redistribution of
                                         such Company Software or any part thereof at no charge.

 

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		(g)	The
                                         software, hardware, firmware, networks, platforms, servers, interfaces, applications,
                                         web sites and related systems (collectively, “Information Systems”)
                                         used by the Company are, to the Company’s Knowledge, sufficient for their respective
                                         current needs in all material respects (including as to capacity and ability to process
                                         current and anticipated volumes in a timely manner). The Company has disaster recovery
                                         plans and capabilities. All Company Software is free from malicious code and material
                                         defects; provided, however, that nothing in this Section 3.16(g) shall be deemed
                                         a warranty that (A) the Information Systems will operate error free and without interruption;
                                         (B) the Information Systems will be compatible with any alternate environment other than
                                         an exact mirror of hardware, network, operating system, configuration, and vendor set
                                         as that currently being used by the Company; (C) the Information Systems will continue
                                         to function properly without additional maintenance, including as may be necessary due
                                         to changes/requirements of third party vendors whose services may be used by the Company.
                                         The Company: (i) has in its possession, and has documented, the source code for the Company
                                         Software and systems developed by or on behalf of the Company, or for the Business, and
                                         (ii) has the right to use all software development tools, library functions, compilers
                                         and other software that is required to operate, modify, distribute and support such systems.

 

Section
3.17Real Property.

 

		(a)	The
                                         Company does not own nor has it ever owned any real property. The Company does not have
                                         any options, written commitments or Contracts to acquire any real property.

 

		(b)	Section
                                         3.17(b) of the Selling Parties Disclosure Schedule lists: (i) each lease, sublease,
                                         license or other agreement and any amendments or modifications thereto relating to all
                                         Leased Real Property (each a “Lease” and collectively, the “Leases”),
                                         true and complete copies of which have been made available to Buyer, (ii) the street
                                         address of each parcel of Leased Real Property, (iii) the identity of the lessor, lessee
                                         and current occupant (if different from lessee) of each such parcel of Leased Real Property,
                                         and (iv) the current use of each such parcel of Leased Real Property. Each Lease is in
                                         full force and effect and is valid, binding and enforceable in accordance with its terms
                                         against the Company, and, to the Knowledge of the Company, each other party thereto.
                                         The Company is current with respect to all payment obligations under each Lease and is
                                         not in default, nor has it received a notice of default or termination that remains outstanding
                                         under any Lease, and to the Company’s Knowledge, (i) no uncured default or breach
                                         on the part of the landlord exists under any Lease, and (ii) no event has occurred or
                                         circumstance exists arising from the acts or omissions of the Company which, with the
                                         delivery of notice, passage of time or both, would constitute such a breach or default
                                         or permit the termination, modification or acceleration of rent under any such Lease.
                                         The Company is in peaceful and undisturbed possession of each parcel of Leased Real Property,
                                         the use of the Leased Real Property complies with the terms of the applicable Lease and
                                         to the Company’s Knowledge, there are no contractual or legal restrictions that
                                         preclude or restrict the ability to use the Leased Real Property for the purposes for
                                         which it is currently being used. The Company has not leased or subleased any parcel
                                         or any portion of any parcel of Leased Real Property to any other Person and no other
                                         Person has any rights to the use, occupancy or enjoyment thereof. The Leased Real Property
                                         comprises all real property used in connection with the Business by the Company. The
                                         Company is not liable under any lease, sublease, license or other form of occupancy agreement
                                         other than the Leases. There are no condemnation proceedings or eminent domain proceedings
                                         of any kind pending or, to the Company’s Knowledge, threatened with respect to
                                         any of the Leased Real Property, and the Company has not received written notice of any
                                         such proceedings.

 

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Section
3.18Assets. Except as set forth in Section 3.18 of the Selling Parties Disclosure Schedule, the Company holds
all legal and beneficial right, title and interest in and to its personal assets, free and clear of any Lien, other than Permitted
Liens. Except as set forth in Section 3.18 of the Selling Parties Disclosure Schedule, immediately following the Closing,
all of such personal assets will be owned, leased or available for use by the Company on terms and conditions substantially identical
to those under which, immediately prior to the Closing, the Company owned, leased, used or held such assets (provided that it
shall not be considered a breach of this representation if such failure arises from Buyer indirectly owning such assets after
the Closing). Such assets comprise all of the material assets, properties and rights used in or necessary to the conduct of the
Business of the Company as presently conducted and are adequate and sufficient to conduct the Business of the Company as presently
conducted.

 

Section
3.19Condition of Personal Property. All items of Personal Property with an individual value greater than $10,000 are
set forth in Section 3.19 of the Selling Parties Disclosure Schedule. Except as set forth in Section 3.19 of the
Selling Parties Disclosure Schedule, all such items of Personal Property are in good operating condition and repair (except for
ordinary, routine maintenance and repairs that are not material in nature or cost) and are suitable for their intended use in
the Business.

 

Section
3.20Employee Benefit Matters.

 

		(a)	Section
                                         3.20(a) of the Selling Parties Disclosure Schedule sets forth a true and complete
                                         list of each (i) material “employee benefit plan” (as defined in Section
                                         3(3) of ERISA, whether or not subject to ERISA) and (ii) other profit-sharing, deferred
                                         compensation, bonus or incentive, stock option, stock purchase, equity or equity-based,
                                         employment, independent contractor, consulting, severance, retention, change-of-control,
                                         paid time off, holiday pay, pension, retirement, medical, welfare, fringe and other compensation
                                         or benefit plan, policy, program, contract, arrangement or agreement, in either case,
                                         sponsored, maintained, contributed to, or required to be contributed to, by the Company
                                         for the benefit of any current or former employee, manager/director, officer or independent
                                         contractor of the Company, or with respect to which the Company has, or could reasonably
                                         be expected to have, any material Liability (each, a “Benefit Plan”
                                         and collectively, “Benefit Plans”).

 

		(b)	Except
                                         as would not reasonably be expected to give rise to any material Liability, with respect
                                         to each Benefit Plan, there are no funded benefit obligations for which contributions
                                         have not been made or properly accrued and there are no unfunded benefit obligations
                                         that have not been accounted for by reserves, or otherwise reflected on the Financial
                                         Statements and all monies withheld for employee paychecks with respect to Benefit Plans
                                         have been transferred to the appropriate Benefit Plan within the time required under
                                         applicable Law. The Company is not and has not in the past been a member of a “controlled
                                         group” or otherwise treated together with any other Person as a single employer
                                         for purposes of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.
                                         No statement, either written or oral, has been made by the Company to any Person with
                                         regard to any Benefit Plan that was not in accordance with the Benefit Plan and that
                                         could reasonably be expected to give rise to any material Liability.

 

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		(c)	Each
                                         Benefit Plan has been maintained, operated and administered at all times in compliance
                                         with its terms and applicable Laws, including ERISA and the Code, in all material respects.
                                         All reports, forms and other documentation required to be filed with any Governmental
                                         Authority or furnished to employees with respect to a Benefit Plan have been timely filed
                                         or delivered and are accurate in all material respects. To the Knowledge of the Company,
                                         no event has occurred, nor do any circumstances exist, that could reasonably be expected
                                         to give rise to any material liability or civil penalty under any Laws with respect to
                                         any Benefit Plan. Each Benefit Plan that is intended to be qualified under Section 401(a)
                                         of the Code has received a favorable determination letter, or is entitled to rely upon
                                         an opinion or advisory letter, from the IRS, and to the Company’s Knowledge, there
                                         are no circumstances that could reasonably be expected to affect adversely the qualified
                                         status of any such Benefit Plan or its ability to rely on such letter from the IRS. All
                                         contributions and other payments required to be made to each Benefit Plan under the terms
                                         of that Benefit Plan, ERISA, the Code or any other applicable Law have been timely made.

 

		(d)	The
                                         Company has delivered or made available to Buyer, accurate and complete copies, if applicable,
                                         of (i) each Benefit Plan, including all amendments, employee communications and other
                                         documents related thereto (including any summary plan description, summary of material
                                         modifications, and all related trust documents, insurance contracts or other funding
                                         vehicles), (ii) the three most recently filed annual reports on Form 5500 and all schedules
                                         thereto, (iii) the most recent IRS determination, opinion or advisory letter, (iv) the
                                         most recent summary annual reports, actuarial reports, financial statements and trustee
                                         reports and (v) all documents concerning Governmental Authority audits or investigations
                                         or “prohibited transactions” within the meaning of Section 4975 of the Code.

 

		(e)	With
                                         respect to each Benefit Plan, in each case to the Company’s Knowledge: (i) the
                                         Company has no Liability with respect to any transaction in violation of Section 404
                                         or 406 of ERISA; (ii) no breach of fiduciary duty has occurred; (iii) no Action is pending
                                         or threatened (other than routine claims for benefits arising in the ordinary course
                                         of administration) relating to any Benefit Plan, the assets of any trust or other funding
                                         arrangement under any Benefit Plan or any fiduciary with respect to a Benefit Plan and
                                         there are no audits, inquiries, administrative proceedings or investigations pending
                                         or threatened by the IRS, Department of Labor, or any other Governmental Authority with
                                         respect to any Benefit Plan; (iv) no prohibited transaction, as defined (as defined in
                                         Section 406 of ERISA or 4975 of the Code) has occurred; (v) all contributions and premiums
                                         due through the Closing Date have been or will be made as required under ERISA or have
                                         been fully accrued on the Financial Statements; and (vi) the Company has no liability
                                         under Section 502(l) of ERISA, except, with respect to each of the foregoing clauses
                                         of this Section 3.20(e), as would not reasonably be expected to give rise to any
                                         material Liability.

 

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		(f)	Except
                                         as set forth in Section 3.20(f) of the Selling Parties Disclosure Schedule, no
                                         Benefit Plan exists that, as a result of the execution and delivery of this Agreement
                                         or the consummation of the transactions contemplated hereby could, either alone or in
                                         combination with another event, (i) entitle any individual to any severance pay, unemployment
                                         compensation, forgiveness of indebtedness or other benefits or compensation; (ii) accelerate
                                         the time of payment or vesting, funding, or increase the amount of any compensation due,
                                         or in respect of, any individual; (iii) result in or satisfy a condition to the payment
                                         of compensation that would, either alone or in combination with any other payment, result
                                         in an “excess parachute payment” within the meaning of Section 280G of the
                                         Code; or (iv) directly or indirectly cause the Company to transfer or set aside any assets
                                         to fund any material benefits under any Benefit Plan. The Company does not have any obligation
                                         to indemnify, hold harmless or gross up any individual with respect to any excise tax
                                         imposed under Sections 4999 or 409A of the Code. Each Benefit Plan has been maintained,
                                         operated and administered in with Section 409A of the Code in all material respects.

 

		(g)	No
                                         Benefit Plan (i) is subject to Title IV of ERISA or Section 302 of ERISA or Section 412
                                         of the Code, (ii) is a “multiemployer plan,” as defined in Section 3(37)
                                         of ERISA, (iii) is a “multiple employer plan” as defined in Section 3(37)
                                         of ERISA, (iv) is a “multiple employer welfare arrangement” as defined in
                                         Section 3(40) of ERISA or (v) provides for post-retirement medical, life insurance or
                                         other welfare-type benefits (other than as required by Part 6 of Subtitle B of Title
                                         I of ERISA or Section 4980B of the Code or under a similar applicable state Law). To
                                         the Company’s Knowledge, no condition exists under which the Company could have
                                         or incur any Liability under Title IV of ERISA. The Company does not employ, and has
                                         never employed, any person outside of the United States and the Company does not sponsor,
                                         maintain, contribute to (or is obligated to contribute to) any Benefit Plan that is subject
                                         to the Laws of any jurisdiction outside the United States.

 

Section
3.21Employees and Contractors.

 

		(a)	Section
                                         3.21(a) of the Selling Parties Disclosure Schedule sets forth a complete and accurate
                                         list of all Persons employed by the Company immediately prior to the Closing (the “Employees”),
                                         showing as of the Closing Date each Employee’s: (i) name, (ii) job title or position,
                                         (iii) location, (iv) date of hire, (v) whether such Employee is full-time, part-time
                                         or temporary, (vi) whether such Person is exempt or non-exempt for purposes of the Fair
                                         Labor Standards Act and/or similar state Laws, (vii) base salary or hourly rate of base
                                         salary, (viii) annual bonus or other incentive compensation opportunity and (ix) the
                                         nature and amount of any other regular compensation (e.g., commissions and accrued
                                         but unused paid time off/vacation time). Each employee is an “at-will” employee
                                         and can be terminated by the Company, with or without notice and without severance, penalty
                                         or premiums other than payment of accrued salaries, wages, bonuses or commissions, as
                                         applicable. All salaries, wages, commissions and other compensation and benefits payable
                                         to each employee of the Company have been accrued and paid by the Company when due for
                                         all periods through the Closing Date. To the Company’s Knowledge, no current executive,
                                         key employee or group of employees has given notice of termination of employment or otherwise
                                         disclosed plans to terminate employment with the Company within the next 12 months. No
                                         executive or key employee of the Company is employed under a non-immigrant work visa
                                         or other work authorization that is limited in duration.

 

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		(b)	Section
                                         3.21(b) of the Selling Parties Disclosure Schedule sets forth a complete and accurate
                                         list of all independent contractors currently engaged by the Company, along with the
                                         position, date of retention and rate of remuneration for each such independent contractor.
                                         Except as set forth on Section 3.21(b) of the Selling Parties Disclosure Schedule,
                                         none of such independent contractors is a party to a written Contract with the Company.
                                         Except as would not reasonably be expected to give rise to any material Liability, for
                                         purposes of applicable Law, including the Code and the Fair Labor Standards Act, all
                                         independent contractors who are currently, or within the last two years have been, engaged
                                         by the Company are bona fide independent contractors and not employees of the Company.

 

Section
3.22Labor Matters.

 

		(a)	Except
                                         as set forth in Section 3.22 of the Selling Parties Disclosure Schedule, (a) the
                                         Company is in material compliance with all Laws regarding employment and employment practices,
                                         conditions of employment, wages and hours with respect to the Business, and the payment
                                         and withholding of Taxes and other sums as required by the appropriate Governmental Authority;
                                         (b) the Company is not engaged in unfair labor practices, and there are no unfair labor
                                         practice complaints or grievances pending or, to the Company’s Knowledge, threatened
                                         against the Company relating to the Employees, (c) there are no claims for violations
                                         of employment or labor Laws, or age, sex, racial or other employment discrimination pending
                                         or, to the Company’s Knowledge, threatened against the Company relating to employees
                                         of the Business.

 

		(b)	Except
                                         as set forth on Section 3.22(b) of the Selling Parties Disclosure Schedules, the
                                         Company is not bound by any agreement with, and none of the employees of the Company
                                         are represented by, any labor union, works council or other employee representative or
                                         labor organization. There is no labor union, works council, employee representative or
                                         other labor organization, which, pursuant to applicable Law or any Contract, must be
                                         notified or consulted or with which negotiations need to be conducted in connection with
                                         the transactions contemplated by this Agreement. There is no labor strike, dispute or
                                         work stoppage pending or, to the Company’s Knowledge, threatened against or involving
                                         the Business or at the current customer locations which may affect such Business or which
                                         may interfere with its continued operation, and there has been no strike, walkout or
                                         work stoppage involving any of the Employees or at the current customer locations during
                                         the twenty-four (24) months prior to the Effective Date.

 

		(c)	The
                                         Company has not incurred any material Liability arising from the failure to pay wages
                                         (including overtime wages), from the misclassification of employees as independent contractors
                                         and/or from the misclassification of employees as exempt from the requirements of the
                                         Fair Labor Standards Act or similar state Laws. The Company is not a joint employer or
                                         co-employer for any third party with which it has contracted for labor during the last
                                         two years. Except as disclosed in Section 3.22(c) of the Selling Parties Disclosure
                                         Schedule, there is no Action with respect to any employment-related matters, including
                                         payment of wages, salary or overtime pay, that has been asserted in writing or is now
                                         pending or, to the Company’s Knowledge, threatened by or before any Governmental
                                         Authority with respect to any Persons currently or formerly employed (or engaged as an
                                         independent contractor) by, or who are or were applicants for employment with, the Company.

 

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		(d)	To
                                         the Knowledge of the Company, there are no limits on the ability of the Company to use
                                         management companies or enter into management agreements except as disclosed in Section
                                         3.22(d) of the Selling Parties Disclosure Schedule.

 

		(e)	As
                                         of the Closing, the Company is not subject to any agreement, including without limitation
                                         any collective bargaining agreement, which requires the Company to make any contributions
                                         to a defined benefit plan.

 

		(f)	There
                                         have been no discussions, negotiations or agreements by the Company (or any of its Affiliates)
                                         (i) with any union, labor organization or any other third party relating to expanding
                                         representation or unionization of employees who will become employed by Buyer or its
                                         Affiliates as a result of the transactions contemplated by this Agreement, or (ii) with
                                         any union, labor organization or any other third party regarding representation or unionization
                                         of employees of Buyer or its Affiliates.

 

Section
3.23Taxes.

 

		(a)	Except
                                         as set forth in Section 3.23(a) of the Selling Parties Disclosure Schedule: (i)
                                         the Company has timely filed or caused to be filed with the appropriate Taxing Authority
                                         all Tax Returns that it was required to file under applicable Laws; (ii) all such Tax
                                         Returns were true and complete in all material respects and were prepared in substantial
                                         compliance with all applicable Law; (iii) all Taxes due and owing by the Company (whether
                                         or not shown as due on any Tax Return) have been timely paid; and (iv) there are no Liens
                                         for Taxes upon the Company or its respective assets, except Liens for current Taxes not
                                         yet due and payable. Except as set forth in Section 3.23(a) of the Selling Parties
                                         Disclosure Schedule, the Company (i) is not currently the beneficiary of any extension
                                         of time within which to file any Tax Return, and (ii) has not granted any waiver of any
                                         statute of limitations with respect to, or any extension of a period for the assessment
                                         of, any Taxes or agreed to any extension of time with respect to a Tax assessment or
                                         a Tax deficiency.

 

		(b)	Except
                                         as set forth on Section 3.23(b) of the Selling Parties Disclosure Schedules, no
                                         federal, state, local, or non-U.S. Tax audits or administrative or judicial audits, proceedings
                                         or other Actions in respect of any Tax are pending or being conducted with respect to
                                         the Company. The Company has not received from any federal, state, local, or non-U.S.
                                         Taxing Authority (including jurisdictions where the Company has not filed Tax Returns)
                                         any (i) written notice indicating an intent to open an audit or other review, (ii) request
                                         for information related to Tax matters, or (iii) written notice of deficiency or proposed
                                         adjustment for any amount of Tax proposed, asserted, or assessed by any Taxing Authority
                                         against the Company. No claim has ever been made by a Taxing Authority in a jurisdiction
                                         where the Company does not file Tax Returns that the Company is or may be subject to
                                         taxation in that jurisdiction.

 

		(c)	The
                                         Company has timely withheld and timely paid to the proper Taxing Authority all Taxes
                                         that it was required to withhold and pay in connection with any amounts paid or owing
                                         to any employee, independent contractor, creditor, stockholder, or other third party.
                                         The Company has properly completed and timely filed all Tax Returns (including, applicable
                                         information returns or reports, such as IRS Forms 1099 and W-2), that are required to
                                         be filed and has, in all material respects, accurately reported all information required
                                         to be included on such Tax Returns.

 

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		(d)	Section
                                         3.23(d) of the Selling Parties Disclosure Schedules lists all federal, state, local,
                                         and non-U.S. income Tax Returns filed with respect to the Company for taxable periods
                                         ended on or after December 31, 2015, and Section 3.23(d) of the Selling Parties
                                         Disclosure Schedules indicates those Tax Returns that have been audited and those Tax
                                         Returns that currently are the subject of an audit. The Company has delivered to Buyer
                                         correct and complete copies of all examination reports and statements of deficiencies
                                         assessed against or agreed to by the Company filed or received since December 31, 2015.

 

		(e)	The
                                         Company is not a party to any Tax sharing or allocation agreement, arrangement or Contract
                                         with any Person (other than any Contract the principal purpose of which is related to
                                         Taxes) pursuant to which the Company would have liability for Taxes of another Person
                                         following the Closing. The Company (i) has not been a member of an affiliated group under
                                         Section 1504(a) of the Code or any similar group defined under a similar provision of
                                         state, local, or non-U.S. law (other than a group the common parent of which was the
                                         Company), or (ii) does not have any Liability for Taxes of another Person under Section
                                         1.1502-6 of the Treasury Regulations (or any similar provision or state, local, or non-U.S.
                                         law), as a transferee or successor, by contract, or otherwise.

 

		(f)	The
                                         Company has not been a United States real property holding corporation within the meaning
                                         of Code Section 897(c)(2) during the applicable period specified in Code Section 897(c)(1)(A)(ii).
                                         The Company has disclosed on its federal income Tax Returns all positions taken therein
                                         that could give rise to a substantial understatement of federal income Tax within the
                                         meaning of Code Section 6662.

 

		(g)	The
                                         Company is not and has not been a party to any “listed transaction,” as defined
                                         in Section 6707(A)(c)(2) of the Code and Treasury Regulations Section 1.6011-4(b)(2).

 

		(h)	The
                                         Company will not be required to include any item of income in, or exclude any item of
                                         deduction from, taxable income for any taxable period (or portion thereof) ending after
                                         the Closing Date as a result of any:

 

		(i)	change
                                         in method of accounting for a taxable period (or portion thereof) ending on or prior
                                         to the Closing Date;

 

		(ii)	use
                                         of an improper method of accounting for a taxable period ending on or prior to the Closing
                                         Date;

 

		(iii)	“closing
                                         agreement,” as described in Code Section 7121 (or any corresponding provision of
                                         state, local, or non-U.S. income Tax law) executed on or prior to the Closing Date;

 

		(iv)	intercompany
                                         transaction, as defined in Section 1.1502-13 of the Treasury Regulations, or any excess
                                         loss account, as defined in Section 1.1502-19 of the Treasury Regulations, (or any corresponding
                                         provision of state, local or non-U.S. income Tax law);

 

		(v)	installment
                                         sale or open transaction made on or prior to the Closing Date for which payments were
                                         received prior to the Closing Date; or

 

		(vi)	prepaid
                                         amount received on or prior to the Closing Date.

 

    	29

    	 

    

 

		(i)	The
                                         Company has collected all sales tax in the ordinary course of business and remitted such
                                         sales tax amount to the applicable Taxing Authority, or has collected sales tax exemption
                                         certificates from all entities from which the Company does not collect sales tax.

 

		(j)	The
                                         Company has not distributed the stock of another Person in a transaction that was purported
                                         or intended to be governed in whole or in part by Code Section 355 or Code Section 361.

 

		(k)	The
                                         Company has never (i) had a permanent establishment in any country other than the United
                                         States, or (ii) engaged in activities in any jurisdiction other than the United States.

 

Section
3.24Insurance Policies. Section 3.24 of the Selling Parties Disclosure Schedule contains a complete and correct
list (by type of policy, form of coverage, name of insurer and expiration date) of all insurance policies, directors’ and
officers’ liability policies, and formal self-insurance programs, and other forms of insurance and all fidelity bonds held
by or applicable to the Company and its assets, properties, Employees or Benefit Plan fiduciaries (the “Insurance Policies”).
All Insurance Policies are in full force and effect, and the Company is not in material default with respect to any provision
in any Insurance Policy, and all such policies and all premiums due thereunder have been paid. The Company has not received any
written notice of cancellation or non-renewal of any Insurance Policy, and the Company has not been denied any claim or made any
claims which are subject to reservation of rights of the insurer. With respect to each Insurance Policy, since the last renewal
date of such policy, the Company has not received any written notice of any material change in its relationship with its respective
insurer or the premiums payable pursuant to such policy. All Insurance Policies have been made available to Buyer.

 

Section
3.25Accounts Receivable; Accounts Payable.

 

		(a)	All
                                         accounts receivable of the Company, whether set forth in the Company Closing Certificate
                                         or subsequently created, are receivables that have arisen from bona fide transactions
                                         in the ordinary course of business consistent with past practice. The Company has good
                                         and marketable title to all such accounts receivable, free and clear of all Liens (other
                                         than Permitted Liens).

 

		(b)	All
                                         accounts payable of the Company, whether set forth in the Financial Statements or subsequently
                                         created, are payables that have arisen from bona fide transactions in the ordinary course
                                         of business consistent with past practice. Since the Balance Sheet Date, the Company
                                         has paid its accounts payable in the ordinary course of business consistent with past
                                         practice.

 

Section
3.26Affiliate Transactions. Except as set forth in Section 3.26 of the Selling Parties Disclosure Schedule,
no current or former manager/director of the Company, nor the Member, nor to the Company’s Knowledge, any immediate family
member or Affiliate of any of the foregoing (whether directly or indirectly through an Affiliate of such Person): (a) is, or has
been within the two (2) years preceding the date of this Agreement, a party to any Contract (other than the Organizational Documents
and ordinary course employment Contracts that have been provided to Buyer) with the Company; (b) has, or has had during the last
two (2) years preceding the date of this Agreement, any direct or indirect interest (i) in any material property, asset or right
that is owned or used by the Company in the conduct of the Business, or (ii) in any Person that is a client, customer, supplier,
lessor, lessee, debtor, creditor or competitor of the Company (other than any subsidiaries of the Member that are engaged in the
cannabis business in other states); or (c) is, or was during the last two (2) years preceding the date of this Agreement, a manager/director,
officer or employee of any Person that is a client, customer, supplier, lessor, lessee, debtor, creditor or competitor of the
Company (other than any subsidiaries of the Member that are engaged in the cannabis business).

 

    	30

    	 

    

 

Section
3.27Brokers. Except as set forth in Section 3.27 of the Selling Parties Disclosure Schedule, no broker, finder,
investment banker or financial advisor is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company or the Member.

 

Section
3.28Full Disclosure. To the Company’s Knowledge, no representation or warranty by the Company in this Agreement
and no statement contained in the Selling Parties Disclosure Schedule (i) contains any untrue statement of a material fact, or
(ii) omits to state a material fact necessary to make the statements contained therein in any material respect as of the date
they were provided, in light of the circumstances in which they are made, not misleading.

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to the Selling Parties that the statements contained in Article IV are true and correct as of the
Effective Date and as of the Closing Date.

 

Section
4.01Organization and Authority; Execution; Enforceability. Buyer is a limited liability company duly organized, validly
existing and in good standing under the laws of the Commonwealth of Pennsylvania and has all necessary limited liability company
power and authority to enter into this Agreement and the Ancillary Agreements to which it is a party, to carry out its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this
Agreement and the Ancillary Agreements by Buyer, the performance by Buyer of its obligations hereunder and thereunder and the
consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite limited liability
company action on the part of Buyer. This Agreement has been, and upon their execution the Ancillary Agreements to which Buyer
is a party shall have been, duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by each
other party hereto and thereto) this Agreement constitutes, and upon their execution the Ancillary Agreements shall constitute,
legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms except to the
extent enforcement may be affected by Laws relating to bankruptcy, insolvency, creditors’ rights and by the availability
of injunctive relief, specific performance and other equitable remedies.

 

Section
4.02No Conflict. The execution, delivery and performance by Buyer of this Agreement and the Ancillary Agreements to
which it is a party and the consummation of the transactions contemplated hereby and thereby do not and will not (a) violate,
conflict with or result in the breach of any provision of the Organizational Documents of Buyer; (b) conflict with or result in
a violation or breach of any Law or Governmental Order applicable to Buyer; or (c) conflict with, result in any breach of, constitute
a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, or give to others
any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any Contract to which Buyer is
a party or by which Buyer is bound or by which any of Buyer’s properties or assets are subject.

 

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Section
4.03Consents. Except as set forth in Schedule 4.03, the execution, delivery and performance by Buyer of this
Agreement and each Ancillary Agreement to which each is a party do not and will not require any consent, approval, authorization
or other order of, action by, filing with or notification to, any Governmental Authority or any other Person.

 

Section
4.04Litigation. There are no Actions pending or, to Buyer’s Knowledge, threatened, by or against Buyer or any
Affiliate of Buyer (including, without limitation, Enterprises or the Parent) that challenges or seeks to prevent, enjoin or otherwise
delay the transactions contemplated by this Agreement or any Ancillary Agreement or the consummation of the transactions contemplated
hereby or thereby.

 

Section
4.05Brokers. No broker, finder, investment banker or financial advisor is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by
or on behalf of Buyer, Parent, Enterprises or any of their respective Affiliates.

 

Article
V

CONDITIONS TO THE CLOSING; TERMINATION

 

Section
5.01Condition to the Obligations of Buyer. The obligation of Buyer to consummate the purchase of the Acquired Interest
and related transactions contemplated by this Agreement at the Closing shall be subject to the satisfaction, on or before the
Closing Date, of each of the following conditions, any or all of which Buyer may waive in writing, at its sole and absolute discretion:

 

		(a)	Other
                                         than the representations and warranties of the Selling Parties contained in Section
                                         3.01, Section 3.02, Section 3.04 and Section 3.27, the representations
                                         and warranties of the Selling Parties contained in this Agreement shall be true and correct
                                         in all respects (in the case of any representation or warranty qualified by materiality
                                         or Material Adverse Effect) or in all material respects (in the case of any representation
                                         or warranty not qualified by materiality or Material Adverse Effect) on and as of the
                                         date hereof and on and as of the Closing Date with the same effect as though made at
                                         and as of such date (except those representations and warranties that address matters
                                         only as of a specified date, the accuracy of which shall be determined as of that specified
                                         date in all respects). The representations and warranties of the Selling Parties contained
                                         in Section 3.01, Section 3.02, Section 3.04, and Section 3.27
                                         shall be true and correct in all respects on and as of the date hereof and on and
                                         as of the Closing Date with the same effect as though made at and as of such date (except
                                         those representations and warranties that address matters only as of a specified date,
                                         the accuracy of which shall be determined as of that specified date in all respects);

 

		(b)	The
                                         Selling Parties shall have duly performed and complied in all material respects with
                                         all agreements, covenants and conditions required by this Agreement to be performed or
                                         complied with by the any of the Selling Parties prior to or on the Closing Date with
                                         respect to the purchase and sale of the Acquired Interests; provided, that, with respect
                                         to agreements, covenants and conditions that are qualified by materiality, each of the
                                         Selling Parties shall have performed such agreements, covenants and conditions, as so
                                         qualified, in all respects;

 

		(c)	No
                                         action, proceeding, investigation, regulation or legislation shall have been instituted,
                                         threatened or proposed before any Governmental Authority to enjoin, restrain, prohibit,
                                         or obtain damages in respect of, or which is related to, or arises out of, the purchase
                                         and sale of the Acquired Interests contemplated by this Agreement or the consummation
                                         of the purchase and sale of the Acquired Interests contemplated hereby at the Closing;

 

    	32

    	 

    

 

		(d)	No
                                         Material Adverse Effect shall have occurred with respect to the Company from the Effective
                                         Date to the Closing Date;

 

		(e)	[Intentionally
                                         Omitted.];

 

		(f)	The
                                         resolutions adopted by the Board of Directors (or its equivalent) of the Member and the
                                         Company authorizing the execution, delivery and performance of this Agreement, the Ancillary
                                         Agreements to which the Member or the Company is a party, as applicable, and the consummation
                                         of the transactions contemplated hereby and thereby shall remain valid;

 

		(g)	The
                                         Company shall be 100% owned by Member;

 

		(h)	1800
                                         Centre Avenue, LLC, a Florida limited liability company (the “Reading Landlord”),
                                         shall have entered into a lease amendment with Buyer or an Affiliate of Buyer (as the
                                         tenant) with respect to the property located at 1800 Centre Ave, Reading, Pennsylvania
                                         (the “Reading Property”), substantially in the form attached hereto
                                         as Exhibit C (the “Reading Lease”); and

 

		(i)	Buyer
                                         shall have received the items set forth in Section 2.05.

 

Section
5.02Condition to the Obligations of the Selling Parties. The obligations of the Selling Parties to consummate the purchase
and sale of the Acquired Interests contemplated by this Agreement shall be subject to the satisfaction, on or before the Closing
Date, of each of the following conditions, any or all of which any of the Selling Parties may waive in writing, in their sole
and absolute discretion:

 

		(a)	Other
                                         than the representations and warranties of Buyer contained in Section 4.01 and
                                         Section 4.05, the representations and warranties of Buyer contained in this Agreement
                                         shall be true and correct in all respects (in the case of any representation or warranty
                                         qualified by materiality or Material Adverse Effect) or in all material respects (in
                                         the case of any representation or warranty not qualified by materiality or Material Adverse
                                         Effect) on and as of the date hereof and on and as of the Closing Date with the same
                                         effect as though made at and as of such date (except those representations and warranties
                                         that address matters only as of a specified date, the accuracy of which shall be determined
                                         as of that specified date in all respects). The representations and warranties of Buyer
                                         contained in Section 4.01 and Section 4.05, shall be true and correct in
                                         all respects on and as of the date hereof and on and as of the Closing Date with the
                                         same effect as though made at and as of such date;

 

		(b)	Buyer
                                         shall have duly performed and complied (i) with all payment obligations at the Closing
                                         and (ii) in all material respects with all other agreements, covenants and conditions
                                         required by this Agreement to be performed or complied with by Buyer prior to or on the
                                         Closing Date; provided, that, with respect to such other agreements, covenants and conditions
                                         that are qualified by materiality, Buyer shall have performed such agreements, covenants
                                         and conditions, as so qualified, in all respects;

 

		(c)	No
                                         action, proceeding, investigation, regulation or legislation shall have been instituted,
                                         threatened or proposed before any Governmental Authority to enjoin, restrain, prohibit,
                                         or obtain damages in respect of, or which is related to, or arises out of, the purchase
                                         and sale of the Acquired Interest contemplated by this Agreement or the consummation
                                         of the related transactions contemplated with the purchase and sale of the Acquired Interests
                                         at the Closing;

 

    	33

    	 

    

 

		(d)	The
                                         Member shall have purchased all outstanding equity securities of the Company from all
                                         Persons that hold such interests other than the Member;

 

		(e)	[Intentionally
                                         Omitted.];

 

		(f)	The
                                         resolutions adopted by the Board of Directors (other equivalent body) of Buyer authorizing
                                         the execution, delivery and performance of this Agreement and the consummation of the
                                         transactions contemplated hereby shall remain valid;

 

		(g)	The
                                         Reading Landlord and Buyer or an Affiliate of Buyer shall have entered into the Reading
                                         Lease;

 

		(h)	No
                                         Buyer Material Adverse Effect (as hereinafter defined) shall have occurred from the Effective
                                         Date to the Closing Date;

 

		(i)	The
                                         Company shall be 100% owned by Member; and

 

		(j)	The
                                         Selling Parties shall have received the items set forth in Section 2.06.

 

Section
5.03Termination. The purchase and sale of the Acquired Interests hereunder and related provisions of this Agreement
may be terminated at any time prior to the Closing as follows:

 

		(a)	by
                                         written consent of Buyer and the Member;

 

		(b)	by
                                         Buyer by written notice to the Company and the Member if there has been a breach, inaccuracy
                                         in or failure to perform any representation, warranty, covenant or agreement made by
                                         the Company or the Member pursuant to this Agreement that would give rise to the failure
                                         of any of the conditions specified in Section 5.01 and such breach, inaccuracy
                                         or failure has not been waived by Buyer or cured by the Member or the Company, as applicable,
                                         within twenty (20) Business Days of the Company and the Member’s receipt of such
                                         notice from Buyer;

 

		(c)	by
                                         the Member by written notice to Buyer if there has been a breach, inaccuracy in or failure
                                         to perform any representation, warranty, covenant or agreement made by Buyer pursuant
                                         to this Agreement that would give rise to the failure of any of the conditions specified
                                         in Section 5.02 and such breach, inaccuracy or failure has not been waived by
                                         the Member or cured by Buyer within twenty (20) Business Days of Buyer’s receipt
                                         of such written notice from the Member;

 

		(d)	(i)
                                         by Buyer upon written notice to the Member in the event that at any time prior to the
                                         Closing Date there shall have occurred a Material Adverse Effect or (ii) by the Member,
                                         upon written notice to Buyer, in the event that any time prior to the Closing there shall
                                         have occurred a Buyer Material Adverse Effect;

 

    	34

    	 

    

 

		(e)	by
                                         Buyer or the Member by written notice to the Member and the Company or Buyer, respectively,
                                         in the event that (i) there shall be any Law that makes Buyer’s acquisition of
                                         the Acquired Interests illegal or otherwise prohibited (excluding all Laws of any United
                                         States Federal Governmental Authority that restrict the operation of the Business or
                                         the enforcement of such Laws by any United States Federal Government Authority), or (ii)
                                         any Governmental Authority shall have issued a Governmental Order restraining or enjoining
                                         Buyer’s acquisition of the Acquired Interests, and such Governmental Order shall
                                         have become final and non-appealable;

 

		(f)	by
                                         either Buyer or the Member, if the Closing shall not have occurred by the Outside Date.

 

Section
5.04Effect of Termination. If this Agreement is terminated in accordance with Section 5.03, this Agreement shall
become void and of no further force and effect with no Liability to any Person on the part of any party hereto (or any officer,
agent, employee, direct or indirect holder of any equity interest or securities, or Affiliates of any party hereto); provided,
however, that this Section 5.04 and Article VII shall survive the termination of this Agreement and nothing herein
shall relieve any party hereto from any Liability for fraud, intentional misconduct or any willful breach of the provisions of
this Agreement prior to the termination of this Agreement.

 

Section
5.05Breakup Fee. In consideration for the considerable time, effort and expense to be undertaken by the Company in
connection with the transactions contemplated by this Agreement, if Buyer fails to consummate the Closing prior to the Outside
Date (for any reason or no reason (including, without limitation, the failure to satisfy any of the conditions described herein
except as set forth below in this sentence)), then Buyer shall pay to the Company $1,580,000 (the “Breakup Fee”);
provided, however, that such Breakup Fee shall not be payable to the Company if the failure to consummate the Closing prior to
the Outside Date is due primarily to any action or inaction of the Company or the Member which causes any of the conditions set
forth in Section 5.01 not to be satisfied, except in the case of fraud, intentional misconduct or a willful and material
breach by Buyer. The parties agree that the foregoing provision is fair and reasonable in light of the anticipated or actual harm
caused by a breach, the difficulties of proof of loss and the inconvenience or non-feasibility of otherwise obtaining an adequate
remedy. Notwithstanding anything in this Agreement to the contrary, except in the case of fraud, intentional misconduct or a willful
and material breach of this Agreement by Buyer, in the event that the Breakup Fee is paid, then payment to the Company of the
Breakup Fee shall be the Company’s and the Member’s sole and exclusive remedy as liquidated damages for any and all
losses or damages of any nature against Buyer and its former, current and future directors, officers, employees, agents, shareholders,
Affiliates and assignees and each former, current or future director, officer, employee, agent, shareholder, Affiliate or assignee
of any of the foregoing (collectively, the “Buyer Parties”) in respect of this Agreement and the transactions
contemplated hereby, including for any loss or damage suffered as a result of the termination of this Agreement, the failure to
consummate the transactions contemplated by this Agreement or for a breach or failure to perform hereunder or otherwise, and upon
payment of such Breakup Fee no Buyer Party shall have any further liability or obligation relating to or arising out of this Agreement
or the transactions contemplated hereby.

 

    	35

    	 

    

 

Article
VI

ADDITIONAL COVENANTS OF THE PARTIES

 

Section
6.01Access to Information. From the date hereof until the earlier of the termination of this Agreement pursuant to
Section 5.03 or the Closing (such date, the “Termination Date”), the Member shall, and shall cause the
Company to, (a) afford the officers, employees and representatives of Buyer (including independent public accountants and attorneys)
reasonable access to and the right to inspect all of the Leased Real Property, properties, assets, premises, books and records,
Contracts and other documents and data related to the Company and the Business; (b) furnish Buyer and its representatives with
such financial, operating and other data and information related to the Company and the Business as Buyer or any of its representatives
may reasonably request; and (c) instruct the representatives of the Member and the Company to cooperate with Buyer in its investigation
of the Company and the Business. Any investigation pursuant to this Section 6.01 shall be conducted in such manner as not
to interfere unreasonably with the conduct of the Business or the Company. No investigation by Buyer or other information received
by Buyer shall operate as a waiver or otherwise affect any representation, warranty, or agreement given or made by the any Selling
Party in this Agreement.

 

Section
6.02Preserve Accuracy of Representations and Warranties; Notification of Certain Matters.

 

		(a)	Until
                                         the Termination Date, the Member, the Company and Buyer shall refrain from taking any
                                         action, or from not taking any action, which would render any of the representations
                                         or warranties contained in Article III or IV made by such party, respectively,
                                         untrue or inaccurate. Until the Termination Date, each of the Company, the Member and
                                         Buyer shall promptly notify each of the other parties hereto of (i) any event or matter
                                         that would reasonably be expected to cause any of the representations or warranties contained
                                         in Article III or IV made by such party to be untrue or inaccurate, or
                                         (ii) any Action that shall be instituted or threatened against it to restrain, prohibit
                                         or otherwise challenge the legality of any transaction contemplated by this Agreement.

 

		(b)	From
                                         the Effective Date until the Termination Date, the Company or the Member shall promptly
                                         notify Buyer of (i) any fact, circumstance, event or action the existence, occurrence
                                         or taking of which (A) has had, or could reasonably be expected to have, individually
                                         or in the aggregate, a Material Adverse Effect or (B) has resulted in, or could reasonably
                                         be expected to result in, the failure of any of the conditions set forth in Section
                                         5.01 to be satisfied; (ii) any notice or other communication from any Person alleging
                                         that the consent of such Person is or may be required in connection with the transactions
                                         contemplated by this Agreement; (iii) any notice or other communication from any Governmental
                                         Authority in connection with the transactions contemplated by this Agreement; and (iv)
                                         any Action commenced or, to the Company’s Knowledge, threatened against, relating
                                         to or involving or otherwise affecting the Member or the Company that, if pending on
                                         the date of this Agreement, would have been required to have been disclosed pursuant
                                         to Section 3.12 or that relates to the consummation of the transactions contemplated
                                         by this Agreement.

 

		(c)	From
                                         the Effective Date until the Termination Date, Buyer shall promptly notify the Member
                                         of (i) any fact, circumstance, event or action the existence, occurrence or taking of
                                         which (A) has had, or could reasonably be expected to have, individually or in the aggregate,
                                         a Material Adverse Effect, assuming for this purpose that Buyer, Parent and/or Enterprises
                                         was the Company (a “Buyer Material Adverse Effect”), or (B) has resulted
                                         in, or could reasonably be expected to result in, the failure of any of the conditions
                                         set forth in Section 5.02 to be satisfied; (ii) any notice or other communication
                                         from any Person alleging that the consent of such Person is or may be required in connection
                                         with the transactions contemplated by this Agreement; (iii) any notice or other communication
                                         from any Governmental Authority in connection with the transactions contemplated by this
                                         Agreement; and (iv) any Action commenced or, to Buyer’s Knowledge, threatened against,
                                         relating to or involving or otherwise affecting Buyer that, if pending on the date of
                                         this Agreement, would have been required to have been disclosed pursuant to Section
                                         4.04 or that relates to the consummation of the transactions contemplated by this
                                         Agreement.

 

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		(d)	For
                                         the avoidance of doubt, no notice under this Section 6.02 shall be deemed to have
                                         modified any representation or warranty or cured any breach or relieved any party hereto
                                         of any obligation or liability under this Agreement.

 

Section
6.03Government Approvals and Consents.

 

		(a)	Upon
                                         the terms and subject to the conditions of this Agreement, each party hereto shall use
                                         its reasonable best efforts to consummate the transactions contemplated by this Agreement
                                         applicable to such party as promptly as practicable. In furtherance of the foregoing,
                                         each party hereto shall, as promptly as possible, (i) make, or cause or be made, all
                                         filings and submissions required under any Law applicable to such party or any of its
                                         Affiliates (if required in connection with the transactions contemplated hereby); and
                                         (ii) use reasonable best efforts to obtain, or cause to be obtained, all consents, authorizations,
                                         orders and approvals from all Governmental Authorities that may be or become necessary
                                         for its execution and delivery of this Agreement, and the performance of its obligations
                                         pursuant to this Agreement. Each party shall cooperate fully with the other party(ies)
                                         and its or their respective Affiliates in promptly seeking to obtain all such consents,
                                         authorizations, orders, and approvals. The parties hereto shall not willfully take any
                                         action that will have the effect of delaying, impairing or impeding the receipt of any
                                         required consents, authorizations, orders and approvals.

 

		(b)	Without
                                         limiting the generality of the parties’ undertakings pursuant to Section 6.03(a)
                                         above, each of the applicable parties hereto shall use all reasonable best efforts
                                         to: (i) respond to any inquiries by any Governmental Authority regarding the transactions
                                         contemplated by this Agreement; (ii) avoid the imposition of any order or the taking
                                         of any action that would restrain, alter or enjoin the transactions contemplated by this
                                         Agreement; and (iii) in the event any Governmental Order adversely affecting the ability
                                         of the parties to consummate the transactions contemplated by this Agreement has been
                                         issued, to have such Governmental Order vacated or lifted.

 

		(c)	If
                                         any consent, approval, authorization or amendment necessary to preserve any right or
                                         benefit under any Contract to which the Company is a party is not obtained prior to the
                                         Closing, the Member shall, subsequent to the Closing, cooperate with Buyer and the Company
                                         in attempting to obtain such consent, approval, authorization or amendment as promptly
                                         thereafter as practicable.

 

		(d)	All
                                         analyses, appearances, meetings, discussions, presentations, memoranda, briefs, filings,
                                         arguments, and proposals made by or on behalf of the Member, the Company or Buyer before
                                         any Governmental Authority or the staff or regulators of any Governmental Authority,
                                         in connection with any approvals required to be obtained hereunder by such party from
                                         a Governmental Authority with respect to the transactions contemplated hereunder (but,
                                         for the avoidance of doubt, not including any interactions between the Member or the
                                         Company with Governmental Authorities in the ordinary course of business, any disclosure
                                         which is not permitted by Law or any disclosure containing confidential information)
                                         shall be disclosed to the other parties hereunder in advance of any filing, submission
                                         or attendance, it being the intent that the parties will consult and cooperate with each
                                         other, and consider in good faith the views of each other party, in connection with any
                                         such analyses, appearances, meetings, discussions, presentations, memoranda, briefs,
                                         filings, arguments, and proposals. Each party shall give written notice to the other
                                         parties with respect to any meeting, discussion, appearance or contact with any Governmental
                                         Authority or the staff or regulators of any Governmental Authority, with such notice
                                         being sufficient to provide the other parties with the opportunity to attend and participate
                                         in such meeting, discussion, appearance or contact.

 

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		(e)	Notwithstanding
                                         the foregoing, nothing in this Section 6.03 shall require, or be construed to
                                         require, Buyer or any of its Affiliates to agree to (i) sell, hold, divest, discontinue
                                         or limit, before or after the Closing Date, any assets, businesses or interests of Buyer,
                                         the Company, or any of their respective Affiliates; (ii) any conditions relating to,
                                         or changes or restrictions in, the operations of any such assets, businesses or interests
                                         which, in either case, could reasonably be expected to result in a Buyer Material Adverse
                                         Effect or materially and adversely impact the economic or business benefits to Buyer
                                         of the transactions contemplated by this Agreement; or (iii) any material modification
                                         or waiver of the terms and conditions of this Agreement.

 

Section
6.04Conduct of Business Prior to Closing. From the Effective Date until the Termination Date, except (a) as otherwise
provided in this Agreement, or (b) as consented to in writing by Buyer (which consent shall not be unreasonably withheld or delayed),
the Member shall (provided that, for purposes of clarity, other than Section 6.04(g), this Section 6.04 shall not
apply to any subsidiaries of the Member, other than the Company) and shall cause the Company to: (i) operate, conduct and carry
on the Business and the operations of the Company only in the ordinary course and consistent with past practice; (ii) maintain
and keep the Company’s properties in states of good repair and condition as at present, except for ordinary wear and tear
and damage; (iii) maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained
by the Company; (iv) perform in all material respects all of the Company’s obligations under Material Contracts; (v) use
their commercially reasonable efforts to maintain and preserve the Company’s business organization intact, to retain the
Company’s key employees, and to maintain the Company’s relationship with their material suppliers and customers; and
(vi) comply with and perform in all material respects all obligations and duties imposed on the Company by all federal and state
Laws and all rules, regulations, and orders imposed by Governmental Authorities. Notwithstanding the foregoing, except as expressly
required by this Agreement, as set forth on Section 6.04 of the Selling Parties Disclosure Schedule or with the prior written
consent of Buyer, the Company shall not:

 

		(a)	(i)
                                         declare or pay any dividends on or make other distributions in respect of any of the
                                         Membership Interests or other securities, or (ii) repurchase, redeem or otherwise acquire
                                         or modify the terms of any of the Company’s membership interests or other securities,
                                         including the Acquired Interests;

 

    	38

    	 

    

 

		(b)	form
                                         any direct or indirect subsidiary of the Company or windup, liquidate, dissolve or terminate
                                         the Company;

 

		(c)	(i)
                                         make any voluntary declaration of, or initiate any proceedings in, bankruptcy or insolvency
                                         or filing any petition for relief with respect to the Company, (ii) make any assignment
                                         for the benefit of creditors on behalf of the Company, or (iii) apply for the appointment
                                         of a custodian, receiver or trustee for the Company;

 

		(d)	amend,
                                         modify, waive or rescind any of the Organizational Documents of the Company;

 

		(e)	make
                                         any capital expenditure(s) or enter into any Contract(s) therefor that is in excess of
                                         $10,000 individually or $50,000 in the aggregate, other than in connection with the execution
                                         and delivery and performance of the Secured Notes and any related documents executed
                                         in connection therewith;

 

		(f)	enter
                                         into any Contract that (i) would have been required to be set forth on Section 3.15
                                         of the Disclosure Schedule if in effect on the date hereof, (ii) is outside the ordinary
                                         course of business consistent with past practice and (iii) cannot be assigned or transferred
                                         to Buyer;

 

		(g)	enter
                                         into or modify any Contract, or transaction with any of the Company’s Affiliates
                                         or any Member, director, manager, officer, employee or consultant of the Company;

 

		(h)	terminate,
                                         rescind, amend or otherwise modify, or grant any waiver under, any Material Contract;

 

		(i)	enter
                                         into any Contract for the purchase of any real property or the sale or lease (including
                                         any extension thereof) of any Leased Real Property, or any amendment thereto;

 

		(j)	acquire
                                         by merging or consolidating the Company with, or purchase any of the equity interests
                                         or material assets of, directly or indirectly, any other Person or any business or division
                                         thereof;

 

		(k)	cancel
                                         any Indebtedness owed to or claims held by the Company or waive any other rights held
                                         by the Company other than in the ordinary course of business;

 

		(l)	create,
                                         incur, assume, modify or amend the terms of any Indebtedness or enter into, as lessee,
                                         any capital lease;

 

		(m)	institute,
                                         abandon, settle or compromise any pending or threatened claim or Action by, against or
                                         involving the Company other than settlements or compromises of any Action which contain
                                         a release of all claims in exchange for payment of an immaterial monetary amount;

 

		(n)	make
                                         or change any election, change an annual accounting period, adopt or change any accounting
                                         method, file any amended Tax Return, enter into any closing agreement, settle any Tax
                                         claim or assessment relating to the Company, surrender any right to claim a refund of
                                         Taxes, consent to any extension or waiver of the limitation period applicable to any
                                         Tax claim or assessment relating to the Company, or take any other similar action relating
                                         to the filing of any Tax Return or the payment of any Tax, if such election, adoption,
                                         change, amendment, agreement, settlement, surrender, consent or other action would have
                                         the effect of increasing the Tax liability of the Company for any period ending after
                                         the Closing Date;

 

    	39

    	 

    

 

		(o)	establish
                                         or increase any profit-sharing, bonus, incentive, deferred compensation, insurance, pension,
                                         retirement, medical, hospital, disability, welfare or other employee benefit with respect
                                         to employees or consultants of the Company (or any other Person who provides services
                                         to the Company);

 

		(p)	Establish,
                                         amend, modify or terminate any Benefit Plan, collective bargaining agreement or Contract
                                         with any Union or other labor organization, other than those being negotiated as of the
                                         effective date of this Agreement; or

 

		(q)	make
                                         any increase or, except with respect to an employee having an annual base salary of less
                                         than $100,000 or in the ordinary course of business consistent with past practices, decrease
                                         in the compensation (including base salary, wages and bonus opportunities) of the directors,
                                         managers, officers, employees or consultants of the Company (or any other Person who
                                         provides services to the Company).

 

For
purposes of clarity nothing contained in this Agreement shall prohibit the Company from using any of its cash or cash equivalents
to repay all or any portion of any Indebtedness or Existing Indebtedness at or prior to the Closing.

 

Section
6.05Tax Matters.

 

		(a)	The
                                         Member shall prepare, or cause to be prepared, and file, or cause to be filed (taking
                                         into account all extensions properly obtained), all Tax Returns required to be filed
                                         by the Company prior to the Closing. Each such Tax Return shall be prepared in a manner
                                         consistent with past practice.

 

		(b)	The
                                         Member, at the Member’s expense, shall prepare, and with Buyer’s and the
                                         Company’s cooperation, timely file all Tax Returns of the Company for all Pre-Closing
                                         Tax Periods (other than Straddle Periods) which Tax Returns are not due, and have not
                                         been filed as of the Closing Date and the Member shall pay and discharge all Taxes shown
                                         to be due by the Company on such Tax Returns, subject to the rights of the Buyer Indemnified
                                         Parties under Article VII. Buyer shall have a reasonable opportunity (consisting
                                         of a period of not less than fifteen (15) Business Days) to review such Tax Returns and
                                         the Member will make all changes to such Tax Returns as is reasonably requested by Buyer.
                                         Such Tax Returns shall be prepared in a manner consistent with past practice, unless
                                         a contrary treatment is required by an intervening change in the applicable Law. Buyer
                                         shall prepare and timely file all Tax Returns of the Company for any Taxable period beginning
                                         on or before and ending after the Closing Date (the “Straddle Period”)
                                         and Buyer or the Company shall pay and discharge all Taxes shown to be due on such Tax
                                         Returns, subject to the rights of the Buyer Indemnified Parties under Article VII.
                                         The Member shall have a reasonable opportunity to review and comment on such Tax Returns
                                         and Buyer will consider in good faith all of the Member’s requested reasonable
                                         comments. Such Tax Returns shall be prepared in a manner consistent with past practice,
                                         unless a contrary treatment is required by an intervening change in the applicable Law.

 

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		(c)	Except
                                         as otherwise provided in this Agreement or required by applicable Law, without the prior
                                         written consent of the Member (not to be unreasonably withheld, conditioned or delayed),
                                         Buyer shall not take any of the following actions (or cause the Company to take any of
                                         the following actions) if such action would or would reasonably be expected to result
                                         in any Tax Liability to the Company (or a loss of a Tax refund or credit) for any Pre-Closing
                                         Tax Period: (i) amend or permit the Company to amend any Tax Return for a taxable period
                                         ending on or before the Closing Date, (ii) file or permit the Company to file a Tax Return,
                                         with respect to a taxable period ending on or before the Closing Date, in any jurisdiction
                                         in which the Company, did not file such Tax Return prior to the Closing, (iii) extend
                                         or waive, or cause to be extended or waived, or permit the Company to extend or waive,
                                         any statute of limitations or other period for the assessment of any Tax or deficiency
                                         related to a taxable period ending on or before the Closing Date, (iv) make or change
                                         any material Tax election or accounting method or practice that has retroactive effect
                                         to any taxable period ending on or before the Closing Date, or (v) initiate any voluntary
                                         disclosure or other communication with any Tax Authority unrelated to audit, litigation,
                                         challenge or other Tax Contest relating to any actual or potential Tax payment or Tax
                                         Return filing obligation of the Company for any Pre-Closing Tax Period. The Member and
                                         Buyer agree that any and all net operating losses, credits or other Tax assets of the
                                         Company accruing on or before the Closing Date shall be utilized, to the maximum extent
                                         permitted by law, in the Pre-Closing Tax Periods.

 

		(d)	Any
                                         Tax refunds or credits for overpayment of Taxes actually received by the Company with
                                         respect to a Pre-Closing Tax Period after Closing that were paid by the Company prior
                                         to the Closing or paid by the Member after Closing (a “Tax Refund”)
                                         shall be owed to the Member, and Buyer agrees to cause the Company to transfer all such
                                         refunds or credits to the Member, net of any Taxes or reasonable expenses of Buyer or
                                         the Company in obtaining such refunds or credits; provided that the Member shall not
                                         be entitled to receive any such Tax Refund to the extent (i) taken into account in any
                                         calculation of or adjustment to the Transaction Consideration pursuant to this Agreement,
                                         or (ii) arising from a carryback of any net operating loss or other Tax attribute or
                                         Tax credit incurred in a Tax period (or portion thereof) beginning after the Closing
                                         Date. In the event any amount is paid to the Member pursuant to this Section 6.05(d)
                                         and all or any portion of the Tax Refund underlying such payment is disallowed by
                                         the applicable Taxing Authority, the Member shall repay such amount actually received
                                         from Buyer to Buyer to the extent Buyer or its Affiliates (including the Company) has
                                         repaid such amount to the Taxing Authority. For purposes of determining any Tax Refunds
                                         to which the Member is entitled under this Section 6.05(d), any refunds or credits
                                         (including any interest thereon) for a Straddle Period shall be allocated between the
                                         Pre-Closing Tax Period and the Post-Closing Tax Period in accordance with the principles
                                         of Section 6.05(e).

 

		(e)	For
                                         purposes of this Agreement, in the case of any Straddle Period, the amount of any (i)
                                         Taxes based on or measured by income, gain, receipts, capital, sales, use or payment
                                         of wages of the Company for the Pre-Closing Tax Period and (ii) all other Taxes that
                                         otherwise can be reasonably allocated to the Pre-Closing Tax Period shall be determined
                                         based on an interim closing of the books as of the close of business on the Closing Date.
                                         The amount of any Taxes of the Company for a Straddle Period to be attributed to the
                                         Pre-Closing Tax Period that is not susceptible to allocation based on the methodology
                                         described in the preceding sentence shall be determined by multiplying the amount of
                                         such Tax for the entire taxable period by a fraction the numerator of which is the number
                                         of calendar days in the taxable period ending on the Closing Date and the denominator
                                         of which is the number of calendar days in such Straddle Period.

 

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		(f)	Tax
                                         Contests.

 

		(i)	If
                                         Buyer or the Company receives written notice of any pending or threatened audit or other
                                         examination by any Taxing Authority, or any judicial or administrative proceedings relating
                                         to Taxes (each, a “Tax Contest”) that would reasonably be expected
                                         to result in Losses that are indemnifiable under this Agreement, including any Tax Contest
                                         related to a Pre-Closing Tax Period of the Company, Buyer shall promptly notify the Member.
                                         If the Member receives written notice of a Tax Contest that would reasonably be expected
                                         to result in Losses that are indemnifiable under this Agreement, including any Tax Contest
                                         related to a Pre-Closing Tax Period of the Company, such Person shall promptly notify
                                         the Member, who shall then promptly notify Buyer. In each case within this clause (i),
                                         the failure or delay in delivering such notice shall not relieve a party of its obligations
                                         hereunder except to the extent that such party is prejudiced by such failure or delay.

 

		(ii)	If
                                         such Tax Contest relates to any Pre-Closing Tax Period the Member shall have the right
                                         (but not the obligation), to be exercised within ten (10) Business Days following its
                                         receipt of the written notice of such Tax Contest by delivering written notice to Buyer,
                                         to assume and thereafter conduct and control the defense of such Tax Contest (with counsel
                                         of the Member’s choosing) to the extent such Tax Contest relates to the Pre-Closing
                                         Tax Period. For so long as the Member is conducting and controlling such defense, (A)
                                         Buyer shall have the right, but not the obligation, to participate in such defense with
                                         separate counsel of its choosing and at its own expense, (B) Buyer and the Company shall
                                         cooperate with the Member in such defense and make available to the Member all witnesses,
                                         pertinent records, materials and information in or under Buyer’s or the Company’s
                                         possession or control relating thereto as may be reasonably requested by the Member.
                                         The Member shall not be permitted to consent to the entry of any judgment or enter into
                                         any settlement of such Tax Context which adversely impacts Buyer or the Company for the
                                         periods of time after the Pre-Closing Tax Period without the prior written consent of
                                         Buyer (such consent not to be unreasonably withheld, delayed or conditioned).

 

		(iii)	For
                                         the avoidance of doubt, the procedures relating to any Tax Contest shall be governed
                                         by Section 6.05(f) and not by Section 7.06.

 

		(g)	Buyer,
                                         the Company and the Member shall cooperate fully, as and to the extent reasonably requested
                                         by the other party, in connection with the filing of Tax Returns pursuant to this Section
                                         6.05 and any audit, litigation, proceeding or other Tax Contest of the Company. Buyer
                                         and the Member further agree, upon request, to use commercially reasonable efforts to
                                         obtain any certificate or other document from any Governmental Authority or any other
                                         Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed
                                         (including, but not limited to, with respect to the transactions contemplated hereby).

 

		(h)	For
                                         the portion of the Closing Date after the time of Closing, other than transactions expressly
                                         contemplated hereby, Buyer shall cause the Company to carry on its business only in the
                                         ordinary course in the same manner as heretofore conducted.

 

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		(i)	All
                                         Tax sharing agreements, Tax allocation agreements or similar agreements (excluding any
                                         Contracts entered into in the ordinary course of business, the primary purpose of which
                                         is unrelated to Taxes) with respect to or involving the Company shall be terminated as
                                         of the Closing Date and, after the Closing, the Company shall not be bound thereby or
                                         have any liability thereunder.

 

		(j)	Reporting
                                         of Transaction and Purchase Price Allocation. It is acknowledged and agreed that,
                                         for U.S. federal income tax purposes (and all applicable state and local income tax purposes)
                                         the Company is disregarded as an entity separate from the Member under section 301.7701–3;
                                         accordingly, Buyer shall be treated as if it had purchased all of the assets (subject
                                         to all of its liabilities) of the Company and the Member shall be treated as if it sold
                                         100% of the assets of the Company (subject to all of its liabilities). Except as otherwise
                                         required by applicable Law the parties shall report the transactions contemplated by
                                         this Agreement on all relevant Tax Returns in a manner consistent with such treatment.
                                         Buyer, the Member and Company agree to allocate the Transaction Consideration among the
                                         assets of the Company pursuant to Schedule 6.05(j) attached hereto (the “Purchase
                                         Price Allocation”). The Purchase Price Allocation will be binding on all of
                                         the parties to this Agreement, and the parties agree to act (and cause their respective
                                         Affiliates to act) in accordance with the Purchase Price Allocation in the preparation,
                                         filing and audit of any Tax Return, including IRS Form 8594 or any equivalent statement
                                         or amendment thereto, and not to take (or permit any of their Affiliates to take) any
                                         Tax reporting position that is inconsistent with such Purchase Price Allocation; provided
                                         that if, as a result of a change in circumstances after the Closing (such as an adjustment
                                         to the Transaction Consideration pursuant to this Agreement), the Transaction Consideration
                                         is adjusted, then the parties agree to allocate the Transaction Consideration in a manner
                                         that is consistent with the intent of the Purchase Price Allocation and Section 1060
                                         of the Code and each party agrees to file any amended Returns or other documents as may
                                         be necessary to properly reflect any such reallocations. To the extent permitted by applicable
                                         Law, any adjustments to the Transaction Consideration shall be allocated, to the extent
                                         possible, to the classes of assets that were the subject of the adjustments to the Transaction
                                         Consideration, and to the extent that such adjustments do not relate to any specific
                                         asset classification, shall be allocated to goodwill. In the event that the Purchase
                                         Price Allocation is disputed by any Taxing Authority, the party receiving notice of the
                                         dispute shall promptly notify the other party of such dispute and the parties hereto
                                         shall cooperate in good faith in responding to such dispute in order to preserve the
                                         effectiveness of the Purchase Price Allocation.

 

Section
6.06Public Disclosure. No party hereto shall issue any press release or make any public statement or disclosure with
respect to this Agreement or the transactions contemplated hereby from the Effective Date without the prior written consent of
Buyer and the Member, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that Buyer
and its Affiliates may, without the prior written consent of any other parties hereto, issue any press release or make any public
statement or disclosure as may be, and containing only the information, required by applicable Law or the applicable rules of
the Canadian Securities Exchange.

 

Section
6.07Acquisition Proposals. From the Effective Date until the Termination Date, the Company and the Member shall not,
and shall cause their controlled Affiliates and their respective members, shareholders, directors, managers, officers, employees,
investment bankers, attorneys, accountants and other representatives not to, directly or indirectly, initiate, solicit or encourage,
or furnish information to or engage in any discussions or negotiations of any type with any other Person in connection with, or
enter into any confidentiality agreement, letter of intent or purchase agreement, merger agreement or other similar agreement
with any other Person, with respect to any inquiry, proposal or offer from any Person (an “Acquisition Proposal”)
concerning (a) a merger, consolidation, liquidation, recapitalization or other business combination transaction involving the
Company; (b) the issuance or acquisition of Membership Interests; or (c) the sale, lease, exchange or other disposition of all
or substantially all of the Company’s properties or assets. In addition to the other obligations under this Section 6.07,
the Company shall promptly (and in any event within three Business Days after receipt thereof by the Company or the Member) advise
Buyer orally and in writing of any Acquisition Proposal, any request for information with respect to any Acquisition Proposal,
or any inquiry with respect to or which could reasonably be expected to result in an Acquisition Proposal, the material terms
and conditions of such request, Acquisition Proposal or inquiry, and the identity of the Person making the same. The Member agrees
that the rights and remedies for noncompliance with this Section 6.07 shall include having such provision specifically
enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach shall
cause irreparable injury to Buyer and that money damages would not provide an adequate remedy to Buyer.

 

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Section
6.08Release. Effective as of the Closing, the Member (solely in its capacity as such) on behalf of itself and its controlled
Affiliates or any Person claiming by or through it or any of them hereby irrevocably waives, releases, remises and forever discharges
any and all rights and claims that it, or any of the Member’s controlled Affiliates, has had, now has or might now have
against the Company and its Affiliates that arose, occurred or existed on or before the Closing Date (whether accrued, absolute,
contingent, unliquidated or otherwise and whether known or unknown), except for (a) rights and claims arising from or in connection
with this Agreement or any other agreements entered into in connection with this Agreement, (b) rights to indemnification pursuant
to Article VII, and (c) any rights to indemnification from the Company arising from the Member’s capacity as the
manager and/or a member of the Company in accordance with the Organizational Documents of the Company, any Contract with the Company
and/or applicable Law. For purposes of this Section 6.08, controlled Affiliates of the Member or Affiliates of the Company,
as applicable, shall mean those Persons that were controlled Affiliates of the Member or Affiliates of the Company, as applicable,
immediately prior to the Closing.

 

Section
6.09 Manager and Officer Indemnification. For a period of at least six (6) years after the Closing Date, Buyer shall
not, and shall not permit the Company or, subject to this Section 6.09, any successor or assignee thereof, to amend, repeal
or modify any provision of the Organizational Documents of the Company relating to the exculpation or indemnification of any current
or former officer or manager (unless required by applicable Law), it being the intent of the parties hereto that such present
and former officers and managers of the Company continue to be entitled to such exculpation and indemnification to the fullest
extent of the Law. If the Company, or any successor or assignee thereof (i) consolidates with, or merges into, any other entity,
or (ii) transfers all or substantially all of its properties and assets to any entity, then, in each such case, Buyer shall cause
proper provision to be made so that the successors and assigns of the Company shall expressly assume all of the obligations set
forth in this Section 6.09. This Section 6.09 is intended for the benefit of, and is enforceable by, each current
and former officer and manager of the Company, and his or her heirs, executors, legal representatives, successors and assigns,
as applicable, and is in addition to, and not in substitution for, any other rights to indemnification or contribution that any
such person may have had by contract, under Law, or otherwise.

 

    	44

    	 

    

 

Section
6.10Receivables. From and after the Closing, if the Member, any of its Affiliates or any Person that was a signatory
on any Company Bank Account prior to the Closing receives or collects any funds arising from any marijuana or marijuana products
that were shipped by the Company on or after March 18, 2020, the Member, such Affiliate or such Person shall remit such funds
to Buyer within five Business Days after its receipt thereof.

 

Section
6.11Preservation of Attorney-Client Relationship.

 

		(a)	Buyer
                                         hereby acknowledges that each of McCarter & English, LLP (the “Firm”)
                                         is serving as counsel for the Company in connection with the negotiation and preparation
                                         of this Agreement and the consummation of the transactions contemplated hereby (collectively,
                                         “Transaction Matters”). In the event of any dispute among the parties
                                         hereto after the Closing, the Member reasonably anticipates that the Firm may represent
                                         the Member in such matters. Moreover, the Firm anticipates that it may continue to represent
                                         certain of the Member or its Affiliates in other matters. Accordingly, to the extent
                                         required by reason of applicable Law, or otherwise, Buyer and the Company expressly consent
                                         to the Firm’s representation of the Member in any matter after the Closing in which
                                         the interests of Buyer and/or the Company, on the one hand, and the Member, on the other
                                         hand, are adverse, whether or not such matter is one in which the Firm may have previously
                                         advised the Member or the Company, and Buyer and the Company agree to execute and deliver
                                         any conflict waiver letter or other document, reasonably requested by the Member to confirm
                                         and implement such consent and the provisions of this Section 6.11(a).

 

		(b)	Each
                                         party to this Agreement further acknowledges that, notwithstanding any other provision
                                         of this Agreement to the contrary, although Buyer is acquiring the Acquired Interests
                                         at the Closing pursuant to this Agreement, after the Closing, none of Buyer or the Company
                                         shall have any right to any attorney-client privileged matters, communications or materials
                                         arising out of or relating to the Firm’s representation of the Company as pertaining
                                         to the Transaction Matters (collectively, the “Retained Materials”),
                                         and, at the Closing, all rights to any such attorney-client privileged matters or materials
                                         shall, without the requirement of any further action, be deemed automatically transferred
                                         to and fully vested in the Member and not in the Company; and as such, (i) Buyer and
                                         the Company expressly consent to the disclosure by the Firm to the Member of any information
                                         learned by such Firm in the course of its representation of the Company, and (ii) the
                                         attorney-client privilege belongs to the Member and may be controlled by the Member and
                                         shall not be claimed by Buyer or the Company. Notwithstanding the foregoing, in the event
                                         that a dispute arises between Buyer or the Company, on the one hand, and a third party,
                                         on the other hand, after the Closing, the Company may assert and control the attorney-client
                                         privilege to prevent disclosure of confidential communications by the Firm to such third
                                         party. Buyer and the Company irrevocably waive any right they may have to discover or
                                         obtain any Retained Materials. Nothing set forth herein shall affect the attorney-client
                                         privilege with respect to any communications between the Firm, on the one hand, and the
                                         Company, on the other hand, with respect to communications other than those made solely
                                         and directly in connection with the Transaction Matters.

 

    	45

    	 

    

 

 

Article
VII

INDEMNIFICATION

 

Section
7.01Survival.

 

		(a)	The
                                         representations and warranties of the Company and the Member contained in this Agreement
                                         shall survive the Closing until the date that is 12 months after the Closing Date (the
                                         “General Survival Date”); provided, however, that (i) the representations
                                         and warranties of the Company contained in Section 3.01 (Authority of the Selling
                                         Parties), Section 3.02 (Organization and Authority; Execution; Enforceability),
                                         Section 3.04 (Capitalization) and Section 3.27 (Brokers) (collectively,
                                         the “Company Fundamental Representations”) shall survive the Closing
                                         indefinitely, and (ii) the representations and warranties of the Company and the Member
                                         contained in Section 3.20 (Employee Benefit Matters) and Section 3.23 (Taxes)
                                         shall survive until 60 days after the expiration of the relevant statute of limitations
                                         with respect to the underlying subject matter. If written notice of a claim has been
                                         given prior to the expiration of the applicable representations and warranties by Buyer
                                         to the Member, then the relevant representations and warranties shall survive as to such
                                         claim, until such claim has been finally resolved.

 

		(b)	The
                                         representations and warranties of Buyer contained in this Agreement shall survive the
                                         Closing until the General Survival Date; provided, however, that the representations
                                         and warranties of Buyer contained in Section 4.01 (Organization and Authority;
                                         Execution; Enforceability), and Section 4.05 (Brokers) (collectively, the “Buyer
                                         Fundamental Representations”), in each case, shall survive indefinitely. If
                                         written notice of a claim has been given prior to the expiration of the applicable representations
                                         and warranties by the Member to Buyer, as applicable, then the relevant representations
                                         and warranties shall survive as to such claim, until such claim has been finally resolved.

 

		(c)	The
                                         covenants and other agreements contained in this Agreement shall survive the Closing
                                         and remain in full force and effect until fully performed in accordance with their terms
                                         or if not fully performed or fulfilled, until the expiration of the relevant statute
                                         of limitations for such matters. Any claims related to fraud or intentional misrepresentation
                                         shall survive up to the applicable statute of limitations, subject to any applicable
                                         tolling.

 

		(d)	No
                                         claim for indemnification may be asserted by a party, unless written notice of such claim
                                         is received by the party against whom indemnification is sought describing in reasonable
                                         detail, to the extent practicable in light of facts then known, the facts and circumstances
                                         with respect to the subject matter of such claim on or prior to the date on which the
                                         representation, warranty, covenant or agreement on which such claim is based ceases to
                                         survive as set forth in this Section 7.01.

 

Section
7.02Indemnification by the Member. Subject to the limitations set forth in this Article VII, the Member hereby
covenants and agrees that the Member shall defend, indemnify and hold harmless Buyer and its Affiliates (including the Company
after the Closing), and their respective members, shareholders, partners, members, managers, officers, and employees (each a “Buyer
Indemnified Party”) from and against any and all Losses, arising out of or resulting from:

 

		(a)	the
                                         breach of any representation or warranty made by the Member contained in this Agreement;

 

		(b)	the
                                         breach of any covenant or agreement by the Member contained in this Agreement;

 

    	46

    	 

    

 

		(c)	all
                                         Taxes (or the non-payment thereof) of the Company with respect to any Pre-Closing Tax
                                         Period and any and all Taxes of any Person (other than the Company) imposed on the Company
                                         as a transferee or successor, by contract or pursuant to any Law, which Taxes relate
                                         to an event or transaction occurring before the Closing;

 

		(d)	any
                                         claims by or on behalf of any former equity holder or any Person with a right or claim
                                         to obtain equity of the Company with respect to such former equity holder’s or
                                         Person’s ownership or right or claim to ownership of the Company and such former
                                         equity holder’s or Person’s right to receive any portion of the Transaction
                                         Consideration;

 

		(e)	all
                                         Indebtedness that remains unpaid after the Closing (to the extent not paid as described
                                         in Section 2.03);

 

		(f)	all
                                         Transaction Expenses that remain unpaid after the Closing (to the extent not paid as
                                         described in Section 2.03); and

 

		(g)	any
                                         fraud or intentional misrepresentation by the Member or the Company, or either of their
                                         controlled Affiliates in connection with the transactions contemplated by this Agreement.

 

Section
7.03Indemnification by Buyer. Subject to the limitations set forth in this Article VII, Buyer hereby covenants
and agrees that Buyer shall defend, indemnify and hold harmless the Member and its Affiliates, shareholders, partners, managers,
officers, directors and employees (each a “Member Indemnified Party”) from and against any and all Losses,
arising out of or resulting from:

 

		(a)	the
                                         breach of any representation or warranty made by Buyer contained in this Agreement;

 

		(b)	the
                                         breach of any covenant or agreement by Buyer contained in this Agreement; or

 

		(c)	any
                                         fraud or intentional misrepresentation by Buyer or its controlled Affiliates in connection
                                         with the transactions contemplated by this Agreement.

 

Section
7.04Limitations on Indemnification. The rights of the Buyer Indemnified Parties and the Member Indemnified Parties
to indemnification are subject to the following limitations:

 

		(a)	Notwithstanding
                                         anything to the contrary contained herein, no Buyer Indemnified Party shall have a right
                                         to be indemnified for Losses under Section 7.02(a) (other than in respect of breaches
                                         of any of the Company Fundamental Representations) unless and until the aggregate amount
                                         of indemnifiable Losses underlying such claims equals or exceeds $[***] (the “Basket”),
                                         and then the Buyer Indemnified Parties shall have a right to be indemnified for the amount
                                         of all such Losses in excess of the Basket.

 

		(b)	The
                                         maximum amount of Losses for which the Buyer Indemnified Parties, in the aggregate, shall
                                         be entitled to receive indemnification under Section 7.02(a) (other than in respect
                                         of breaches of any of the Company Fundamental Representations) shall be an amount equal
                                         to $[***], provided that claims for fraud and intentional misrepresentation shall not
                                         be so limited.

 

		(c)	The
                                         maximum amount of Losses for which the Buyer Indemnified Parties, in the aggregate, shall
                                         be entitled to receive indemnification under Section 7.02 (but with respect to
                                         Section 7.02(a), solely with respect to breaches of the Company Fundamental Representations)
                                         shall be an amount equal to the consideration actually received by the Member, provided
                                         that claims for fraud and intentional misrepresentation shall not be so limited.

 

    	47

    	 

    

 

		(d)	For
                                         purposes of this Article VII, any inaccuracy in or breach of any representation
                                         or warranty shall be determined without regard to any materiality, Material Adverse Effect
                                         or other similar qualification contained in or otherwise applicable to such representation
                                         or warranty.

 

		(e)	Losses
                                         shall be calculated based on the amount of Loss that remains after deducting therefrom
                                         any Tax benefit received by the Indemnified Party or its Affiliates. If an Indemnified
                                         Party realizes a Tax benefit described above that was not included in the computation
                                         of a Loss for which Indemnified Party was indemnified, the Indemnified Party shall within
                                         ten (10) Business Days of filing the Tax Return claiming such Tax benefit (or, to the
                                         extent such Tax benefit is in the form of a refund, within ten (10) Business Days of
                                         receiving such refund from the applicable Tax Authority) pay to the applicable Indemnifying
                                         Party the amount of such Tax benefit. Without limitation of the foregoing, each Indemnified
                                         Party shall take commercially reasonable actions (and if the Indemnifying Party is Buyer,
                                         it shall cause the Company to take commercially reasonable actions) to timely claim any
                                         Tax benefit that shall reduce the amount of a Loss, or give rise to a payment to or for
                                         the benefit of the Indemnifying Party, under this Section 7.05(e).

 

		(f)	The
                                         Buyer Indemnified Parties’ sole remedy for Losses with respect to Taxes (including,
                                         but not limited to, any breach of a representation or warranty contained in Section
                                         3.23) shall be limited to Taxes of the Company for Pre-Closing Tax Periods.

 

Section
7.05Notice of Loss; Third Party Claims; Direct Claims. For purposes of this Article VII, the term “Indemnified
Party” means a Buyer Indemnified Party or the Member Indemnified Party, as the case may be, and the term “Indemnifying
Party” means the Member pursuant to Section 7.02 or Buyer pursuant to Section 7.03, as the case may be.

 

		(a)	If
                                         an Indemnified Party shall receive written notice of or become party to any Action initiated
                                         against it by a third party (each, a “Third Party Claim”) which gives
                                         rise to a claim for Loss under this Article VII, promptly (and any event within
                                         15 days) after receipt of such notice or becoming party to such Action, the Indemnified
                                         Party shall give the Indemnifying Party notice of such Third Party Claim; provided, however,
                                         that the failure to provide such notice shall not release the Indemnifying Party from
                                         any of its obligations under this Article VII except to the extent that the Indemnifying
                                         Party is actually and materially prejudiced by such failure. The notice described herein
                                         must specify in reasonable detail the identity of the Person making the Third Party Claim,
                                         the nature and reasonable details of the Third Party Claim, the provisions to which such
                                         indemnification claim applies and to the extent known, the nature and amount of the Losses
                                         or other remedy sought in such Third Party Claim. If the Indemnifying Party acknowledges
                                         in writing its obligation to indemnify the Indemnified Party hereunder against any Losses
                                         that may result from such Third Party Claim, then the Indemnifying Party shall be entitled
                                         to assume and control the defense of such Third Party Claim at its expense and through
                                         counsel of its choice if (i) the Indemnifying Party gives notice of its intention to
                                         do so to the Indemnified Party within five Business Days of the receipt of such notice
                                         from the Indemnified Party, (ii) the Indemnifying Party actively defends such Third Party
                                         Claim, (iii) the Third Party Claim involves only claims for monetary damages and does
                                         not seek an injunction or other equitable relief and (iv) the Third Party Claim does
                                         not relate to or otherwise arise in connection with any criminal Action. The Indemnifying
                                         Party shall not be liable for any costs and expenses of the Indemnified Party unless
                                         there exists a conflict of interest that would make it inappropriate under the canons
                                         of legal ethics as determined by counsel for the same counsel to represent both the Indemnified
                                         Party and the Indemnifying Party, in which case the Indemnified Party shall be entitled
                                         to retain its own counsel at the expense of the Indemnifying Party. In the event that
                                         the Indemnifying Party exercises the right to undertake any such defense against any
                                         such Third Party Claim as provided above, the Indemnified Party shall reasonably cooperate
                                         with the Indemnifying Party in such defense and make available to the Indemnifying Party,
                                         at the Indemnifying Party’s expense, all witnesses, pertinent records, materials
                                         and information in the Indemnified Party’s possession or under the Indemnified
                                         Party’s control relating thereto as is reasonably required by the Indemnifying
                                         Party (provided that no party shall be required to provide information to the extent
                                         it is subject to attorney-client privilege or such information may be reasonably relevant
                                         to a direct claim among the parties). Similarly, in the event the Indemnified Party is
                                         conducting the defense against any such Third Party Claim, the Indemnifying Party shall
                                         reasonably cooperate with the Indemnified Party in such defense and make available to
                                         the Indemnified Party, at the Indemnifying Party’s expense, all such witnesses,
                                         records, materials and information in the Indemnifying Party’s possession or under
                                         the Indemnifying Party’s control relating thereto as is reasonably required by
                                         the Indemnified Party (provided that no party shall be required to provide information
                                         to the extent it is subject to attorney-client privilege or may be reasonably relevant
                                         to a direct claim among the parties). No such Third Party Claim may be settled by the
                                         Indemnifying Party without the prior written consent of the Indemnified Party which shall
                                         not be unreasonably withheld, conditioned or delayed unless (i) the terms of the compromise
                                         and settlement require only the payment of money for which the Indemnifying Party is
                                         solely liable, (ii) the Indemnified Party is not required to admit any wrongdoing, take
                                         or refrain from taking any action, acknowledge any rights of the Person making the Third
                                         Party Claim or waive any rights that the Indemnified Party may have against the person
                                         or entity making the Third Party Claim, and (iii) the Indemnified Party receives, as
                                         part of the compromise and settlement, an unconditional release from any and all claims,
                                         obligations and liabilities with respect to the Third Party Claim.

 

    	48

    	 

    

 

		(b)	Any
                                         claim by an Indemnified Party on account of a Loss which does not result from a Third
                                         Party Claim (a “Direct Claim”) shall be asserted by the Indemnified
                                         Party giving the Indemnifying Party prompt written notice thereof (but in any event within
                                         thirty days after discovering such indemnifiable claim). The failure to give such prompt
                                         written notice shall not, however, relieve the Indemnifying Party of from any of its
                                         obligations under this Article VII except to the extent that the Indemnifying
                                         Party is actually and materially prejudiced by such failure. Such notice by the Indemnified
                                         Party shall describe the Direct Claim in reasonable detail based on the facts then known,
                                         the provisions of this Agreement upon which such Direct Claim is based, and shall indicate
                                         the estimated amount, if reasonably practicable based on the facts then known, of the
                                         Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party
                                         shall have 45 days after its receipt of such notice to respond in writing to such Direct
                                         Claim. If the Indemnifying Party disputes such Direct Claim, then during such 45-day
                                         period, the Indemnifying Party and Indemnified Party shall use good faith efforts to
                                         resolve the disputed matters. If the dispute is not resolved within such 45-day period,
                                         either party may seek resolution of the dispute in a court having jurisdiction over the
                                         parties and the matter. If the Indemnifying Party does not so respond within such 45-day
                                         period, the Indemnifying Party shall be deemed to have rejected such claim, in which
                                         case the Indemnified Party shall be free to pursue such remedies as may be available
                                         to the Indemnified Party on the terms and subject to the provisions set forth in this
                                         Article VII. For purposes of investigating any Direct Claim, the Indemnified Party
                                         shall make available to the Indemnifying Party the information relied upon by the Indemnified
                                         Party to substantiate the Direct Claim, together with such other information as the Indemnifying
                                         Party may reasonably request, including (to the extent applicable) reasonable access
                                         to any physical premises, equipment or other tangible property that is the subject of,
                                         or otherwise relevant to, the Direct Claim.

 

Section
7.06Effect of Investigation. The representations, warranties and covenants of the Indemnifying Party, and the Indemnified
Party’s right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation
made by or on behalf of the Indemnified Party (including by any of its representatives) or by reason of the fact that the Indemnified
Party or any of its representatives knew or should have known that any such representation or warranty is, was or might be inaccurate.

 

Section
7.07Insurance/Mitigation. Notwithstanding anything to the contrary in this Agreement, and without limiting the effect
of any other limitation contained in this Article VII, for purposes of computing the amount of any Losses incurred by any
Indemnified Party under this Article VII, the amount of any Losses recoverable hereunder shall be reduced by an amount
equal to the amount of any insurance proceeds that have been actually received by any Indemnified Party, its applicable Affiliate
or designee in connection with such Losses; provided, however, nothing herein shall require any Indemnified Party to seek recovery
for Losses from its insurance policies. To the extent any such insurance proceeds are received by the Indemnified Party or its
applicable Affiliate or designee after any indemnification claim has been paid by the Indemnifying Party, the Indemnified Party
shall, within 10 days following its receipt thereof, pay to the Indemnifying Party the portion of such insurance proceeds received
in connection with such Losses. Nothing in this Agreement in any way restricts or limits the general obligation at Law of an Indemnified
Party to mitigate any loss which it may suffer or incur by reason of the breach by an Indemnifying Party of any representation,
warranty, covenant, agreement or obligation under this Agreement, and if the amount of any Losses actually paid is successfully
mitigated and reduced following payment, then the Indemnified Party shall promptly repay the amount so mitigated and reduced to
the Indemnifying Party.

 

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Section
7.08Payments; Set-off.

 

		(a)	Once
                                         a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant
                                         to this Article VII, the Indemnifying Party shall satisfy its obligations within
                                         15 Business Days of such agreement or final, non-appealable adjudication by wire transfer
                                         of immediately available funds, provided that the foregoing shall not apply with respect
                                         to indemnification claims against the Member until Buyer has exercised its setoff rights
                                         under Section 7.08(c). The parties hereto agree that should an Indemnifying Party
                                         not make full payment of any such obligations within such 15 Business Day period, any
                                         amount payable shall accrue interest from and including the date of agreement of the
                                         Indemnifying Party or final, non-appealable adjudication to and including the date such
                                         payment has been made at a rate per annum equal to 6%. Such interest shall be calculated
                                         daily on the basis of a 365-day year and the actual number of days elapsed.

 

		(b)	Subject
                                         to the terms, conditions and limitations described in this Agreement, any Losses payable
                                         to a Buyer Indemnified Party pursuant to this Article VII or any other amounts
                                         owing by the Member to a Buyer Indemnified Party hereunder shall be satisfied first by
                                         setting off and deducting any such Losses or other amounts in accordance with Section
                                         7.08(c) from and against the Buyer Note payable to the Member hereunder, if applicable.

 

		(c)	Prior
                                         to a Buyer Indemnified Party being entitled to set-off and deduct any Losses under this
                                         Section 7.08(c) (a “Set-off Claim”), Buyer shall promptly notify
                                         the Member of Buyer’s intent to do so in writing (a “Set-off Notice”).
                                         A Set-off Notice shall, to the extent feasible, describe the Set-off Claim, and indicate
                                         the amount of the Losses that have been suffered by the Buyer Indemnified Party. The
                                         Member may respond to Buyer (a “Set-off Response”) within 30 days
                                         (the “Set-off Response Period”) after the date that the Set-off Notice
                                         is received by the Member. Any Set-off Response must specify whether the Member disputes
                                         all or any portion of the Set-off Claim described in the Set-off Notice, describing in
                                         reasonable detail the reasons for such dispute and indicate the amount of Losses or other
                                         amounts the Member is disputing. If the Member fails to deliver a Set-off Response within
                                         the Set-off Response Period, the Member will be deemed not to dispute the Set-off Claim
                                         described in the related Set-off Notice, and Buyer shall be entitled to set-off and deduct
                                         from the Buyer Note the amount of such Losses to the maximum extent permitted by this
                                         Article VII (including, without limitation, the limitations described herein).
                                         Any items not disputed in a Set-off Response will be deemed to have been accepted by
                                         the Member. If the Member delivers a Set-off Response within the Set-off Response Period
                                         indicating that the Member disputes one or more of the matters identified in the Set-off
                                         Notice, Buyer and the Member shall promptly meet and negotiate in good faith to settle
                                         the dispute. Buyer and the Member shall reasonably cooperate with and Buyer shall make
                                         available to the Member the information relied upon by Buyer to substantiate the Set-off
                                         Claim, together with such other information as the Member may reasonably request, including
                                         (to the extent applicable) reasonable access to any physical premises, equipment or other
                                         tangible property that is the subject of, or otherwise relevant to, such disputed Set-off
                                         Claim, except to the extent such disclosure is reasonably likely to, in the disclosing
                                         party’s good faith determination cause the loss of any attorney-client privilege,
                                         attorney work product or other legally recognized privileges or immunity from disclosure.
                                         If Buyer and the Member are unable to reach agreement within 45 days after the conclusion
                                         of the Set-off Response Period, then either Buyer or the Member may resort to other legal
                                         remedies subject to the limitations set forth in this Article VII. For purposes
                                         of this Article VII, (i) any amounts set off hereunder shall be deemed to be Losses
                                         paid by the Member for purposes of the limitations on indemnification set forth herein
                                         and (ii) the Buyer Indemnified Parties may not bring a claim for monetary damages against
                                         the Member for indemnification claims unless and until it has set-off and reduced the
                                         Buyer Note to zero (0).

 

    	50

    	 

    

 

Section
7.09Exclusive Remedies. Except as set forth in Section 5.05 and except for claims based on fraud or willful
misconduct, the indemnification rights provided in this Article VII shall be the sole and exclusive remedy available to
the parties hereto for any and all Losses related to or arising from the transactions contemplated by this Agreement (including,
but not limited to, a breach of any of the terms, conditions, covenants, agreements, representations or warranties contained in
this Agreement, or any right, claim or action arising from the transactions contemplated hereby); provided, however, that the
provisions of this Section 7.09 shall not limit or affect (i) Buyer’s right to offset against the Buyer Note; (ii)
any party’s remedies under any of the Ancillary Agreements; or (iii) any party’s right to bring an action for specific
performance, injunction or any other equitable remedy to the extent that such action or remedy is permitted by this Agreement.

 

Section
7.10Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated
by the parties as an adjustment to the Transaction Consideration for Tax purposes, unless otherwise required by Law.

 

Section
7.11One Recovery. An Indemnified Party is not entitled to double recovery for any claim for indemnification or otherwise
under this Agreement even though there may be one or more legal claims resulting from the breach of more than one of the representations,
warranties, covenants and/or obligations of one or more Indemnifying Parties under this Agreement.

 

Article
VIII

MISCELLANEOUS

 

Section
8.01[Reserved.]

 

Section
8.02Governing Law. This Agreement shall be governed by, enforced, and construed under and in accordance with the Laws
of the State of Delaware, without giving effect to the principles of conflicts of law thereunder. Each of the parties (a) irrevocably
consents and agrees that any legal or equitable action or proceedings arising under or in connection with this Agreement shall
be brought exclusively in the state or federal courts of the United States with jurisdiction in the State of Delaware. By execution
and delivery of this Agreement, each party hereto irrevocably submits to and accepts, with respect to any such action or proceeding,
generally and unconditionally, the personal jurisdiction of the aforesaid courts, and irrevocably waives any and all rights such
party may now or hereafter have to object to such jurisdiction.

 

    	51

    	 

    

 

Section
8.03Notices.

 

		(a)	Any
                                         notice or other communications required or permitted hereunder shall be in writing and
                                         shall be sufficiently given if personally delivered to the recipient or sent by email,
                                         overnight courier or registered mail or certified mail, postage prepaid, addressed as
                                         follows:

 

	(i)
        If to Buyer, to:

         

        Harvest
        Enterprises, Inc.

        1155 W. Rio Salado Parkway, Suite 201

        Tempe, Arizona 85281

        Attn: Brian Manning

        Email: bmanning@harvestinc.com

         
	 
	(ii)
        If to the Member or Company, to:

         

        20155
        N. E. 38th Court 

        Suite
        201 

        Aventura,
        Florida 33180

        Attention:
        Michael H. Weisser

        Email:
        [***]
	with
        a copy to (which shall not constitute notice): 

         

        McCarter
        & English, LLP

        2
        Tower Center Boulevard, 24th Floor

        East
        Brunswick, New Jersey 08816

        Attention:
        Jedediah Ande

        Email:
        jande@mccarter.com

 

		(b)	Any
                                         party may change its address for notices hereunder upon notice to each other party in
                                         the manner for giving notices hereunder.

 

		(c)	Any
                                         notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered,
                                         (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if
                                         transmitted by email with return receipt requested and received, and (iv) three (3) days
                                         after mailing, if sent by registered or certified mail.

 

Section
8.04Attorneys’ Fees. In the event that any party institutes any action or suit to enforce this Agreement or to
secure relief from any default hereunder or breach hereof, the prevailing party shall be reimbursed by the losing party(ies) for
all costs, including reasonable attorneys’ fees, incurred in connection therewith and in enforcing or collecting any judgment
rendered therein.

 

Section
8.05Confidentiality. Each party agrees that, unless and until the transactions contemplated by this Agreement have
been consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to
another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or
from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except
(i) to the extent such data or information is published, is a matter of public knowledge, or is required by Law to be published;
or (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated
by this Agreement. In the event of the termination of this Agreement, each party shall return to the applicable other party all
documents and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or
other materials relating thereto, and each party will continue to comply with the confidentiality provisions set forth herein.

 

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Section
8.06Disclosure Schedules. Nothing in the Selling Parties Disclosure Schedule is intended to broaden the scope of any
representation or warranty contained in this Agreement or to create any covenant unless clearly specified to the contrary herein
or therein. Inclusion of any item on any section or schedule of the Selling Parties Disclosure Schedule (a) does not represent
a determination that such item is material nor shall it be deemed to establish a standard of materiality or that such matter is
necessarily required to be disclosed by the terms of this Agreement, (b) does not represent a determination that such item did
not arise in the ordinary course of business, and (c) shall not constitute, or be deemed to be, an admission or indication to
any third party concerning such item, including that an alleged breach or violation exists or has actually occurred or that a
basis for any defense to such allegation or claim, or counterclaim or cross complaint against the claimant, does not exist. Inclusion
of any item under any section or schedule of the Selling Parties Disclosure Schedule will also be deemed a disclosure as to each
other applicable section or schedule of the Selling Parties Disclosure Schedule and this Agreement, if any, to the extent such
disclosure is reasonably apparent on its face. The Selling Parties Disclosure Schedule includes descriptions of instruments or
brief summaries of certain aspects of the Company and its Business and operations. The descriptions and brief summaries are not
and do not purport to be necessarily complete and are provided in the Selling Parties Disclosure Schedule to identify documents
or other materials previously delivered or made available. From time to time prior to the Closing, the Company and the Member
shall promptly supplement or amend the Selling Parties Disclosure Schedule with respect to any matter hereafter arising or discovered
that, if existing or occurring at or prior to the Effective Date, would have been required to be set forth or described in the
applicable section or schedule of the Selling Parties Disclosure Schedule or that is necessary to correct any information in the
applicable section or schedule of the Selling Parties Disclosure Schedule that has been rendered inaccurate thereby. Any disclosure
in any such supplement or amendment shall be deemed to have cured any inaccuracy in or breach of any representation or warranty
contained in this Agreement, including for purposes of the indemnification or termination rights contained in this Agreement or
of determining whether or not the conditions set forth in Section 5.01 has been satisfied. 

 

Section
8.07Third Party Beneficiaries. Except for the provisions of Article VII relating to indemnified parties and
Section 6.09 and Section 6.11, this Agreement shall be binding upon and inure solely to the benefit of the parties
hereto and their respective successors and permitted assigns. Nothing herein, express or implied, is intended to or shall confer
upon any other Person, including any employee or former employee of the Company, any legal or equitable right, benefit or remedy
of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.

 

Section
8.08Expenses. Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements
of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated by
this Agreement shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section
8.09Entire Agreement. Each of the parties agrees that this Agreement represents the entire agreement between the Parties
relating to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, written or oral, with
respect to such subject matter, including, without limitation, that certain Letter of Intent dated November 19, 2019 by and among
the Member, Verano Holdings, LLC (“Verano”), Enterprises and the other persons party thereto (the “LOI”)
and to the extent that the terms herein conflict with the terms of the LOI, the terms of this Agreement shall govern. Prior to
the execution of this Agreement, the Member, Verano and Enterprises shall have executed an acknowledgment that this Agreement
controls over the terms of the transaction described in the LOI.

 

    	53

    	 

    

 

Section
8.10Amendment; Waiver. This Agreement may be amended, modified, superseded, terminated or cancelled, and any of the
terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed by each
of the parties hereto. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred
herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any
obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring
or existing. Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition
herein nor any course of dealing shall constitute a waiver of or prevent any party from enforcing any right or remedy or from
requiring satisfaction of any condition. No notice to or demand on a party waives or otherwise affects any obligation of that
party or impairs any right of the party giving such notice or making such demand, including any right to take any action without
notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of this
Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved party whole with respect
to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

 

Section
8.11Arm’s Length Bargaining; No Presumption Against Drafter. This Agreement has been negotiated at arm’s-length
by parties of equal bargaining strength, each represented by counsel or having had but declined the opportunity to be represented
by counsel and having participated in the drafting of this Agreement. This Agreement creates no fiduciary or other special relationship
between the parties hereto, and no such relationship otherwise exists. No presumption in favor of or against any party in the
construction or interpretation of this Agreement or any provision hereof shall be made based upon which Person might have drafted
this Agreement or such provision.

 

Section
8.12Headings. The headings contained in this Agreement are intended solely for convenience and shall not affect the
rights of the parties hereto.

 

Section
8.13Assignment. This Agreement may not be assigned by a party hereto by operation of Law or otherwise without the express
written consent of the other parties hereto (which consent may be granted or withheld in the sole discretion of such other parties),
except that (a) Buyer shall be permitted to assign its rights and obligations hereunder to (i) any of its Affiliates, provided
that no such assignment shall relieve Buyer of any of its obligations hereunder, and (ii) any purchaser of all or substantially
all of Buyer’s assets or equity, so long as Buyer demonstrates to the Member’s reasonable satisfaction that such purchaser
has financial capacity and wherewithal at least equal to that of Buyer as of the Effective Date, and (b) Buyer shall be permitted
to collaterally assign any or all of its rights and obligations hereunder to any provider of debt financing to it or any of its
Affiliates, provided that no such assignment shall relieve Buyer of any of its obligations hereunder and provided, further
than in any such assignment the Guaranty shall remain effective. 

 

Section
8.14Waiver of Jury Trial. Each of the parties hereto hereby waives to the fullest extent permitted by applicable Law
any right it may have to a trial by jury with respect to any litigation directly or indirectly arising out of or relating to this
Agreement or the transactions contemplated by this Agreement. Each of the parties hereto hereby (a) certifies that no representative,
agent or attorney of the other party has represented, expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it has been induced to enter into this Agreement and
the transactions contemplated by this Agreement, as applicable, by, among other things, the mutual waivers and certifications
in this Section 8.14.

 

    	54

    	 

    

 

Section
8.15Further Assurances. Each party shall execute and deliver such documents and take such action, as may reasonably
be considered within the scope of such party’s obligations hereunder, necessary to effectuate the transactions contemplated
by this Agreement.

 

Section
8.16Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed by them in accordance with the terms hereof or were otherwise breached and that each party
hereto shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent breaches
of the provisions hereof and to enforce specifically the terms and provisions hereof, without the proof of actual damages, in
addition to any other remedy to which they are entitled at law or in equity. Each party agrees to waive any requirement for the
security or posting of any bond in connection with any such equitable remedy, and agrees that it will not oppose the granting
of an injunction, specific performance or other equitable relief on the basis that (a) the other party has an adequate remedy
at law, or (b) an award of specific performance is not an appropriate remedy for any reason at law or equity.

 

Section
8.17Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original
and all of which taken together shall be but a single instrument. The execution and delivery of a facsimile or other electronic
transmission of a signature to this Agreement shall constitute delivery of an executed original and shall be binding upon the
person whose signature appears on the transmitted copy.

 

Section
8.18Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect
for so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to either party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.

 

Section
8.19Lack of Non-Competition. Notwithstanding anything to the contrary herein, after the date hereof it is acknowledged
and agreed that the Member, a Newco (as hereinafter defined) or any equity holder of the Member (each a “Shareholder”
and collectively, the “Shareholders”) may engage in the same business as the Company or any of its Affiliates
and nothing contained herein shall prohibit such Person from competing with the Company. “Newco” means any
Person created by a Shareholder, a group of Shareholders or any Affiliates of a Shareholder or group of Shareholders.

 

[Signatures
Appear on Following Page]

 

    	55

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Membership Interest Purchase Agreement as of the Effective Date.

 

	 	Buyer:
	 	 
	 	FL
    HOLDING COMPANY, LLC
	 	 	 
	 	By:	/s/
    Steve White
	 	Name:	Steve
    White
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	MEMBER:
	 	 
	 	CannaPharmacy,
    Inc.
	 	 	 
	 	By:	/s/
    Michael H. Weisser
	 	Name:	Michael
    H. Weisser
	 	Title:	Chairman
    of the Board of Directors
	 	 	 
	 	Company:
	 	 
	 	FRANKLIN
    LABS LLC
	 	 	 
	 	By:	/s/
    Berchard Suber
	 	Name:	Berchard
    V. Suber
	 	Title:	CEO

 

    	 	 

    	 

    

 

EXHIBIT
A-1

 

Existing
Indebtedness

 

	Payee	 	Origination 

Date	 	Principal Amount	 	 	Balance as of

 3/26/2020	 	 	Interest Rate	 	 	Miscellaneous Terms
	CannaPharmacy, Inc.	 	Various	 	$	4,265,000.00	 	 	$	4,987,998.74	 	 	 	9	%	 	Compounded monthly
	CannaPharmacy, Inc.	 	Various	 	$	359,051.21	 	 	$	359,051.21	 	 	 	0	%	 	Intercompany debt
	Ganjapreneurs Holdings, LLC* - See Selling Party Disclosure Schedules for a more fulsome description of the indebtedness held by Ganjapreneurs Holdings, LLC	 	8/14/2018	 	$	2,400,000.00	 	 	$	2,641,157.05	 	 	 	9	%	 	Simple interest
	Harvest Enterprises, Inc.	 	4/24/2019	 	$	2,250,000.00	 	 	$	2,337,664.95	 	 	 	8	%	 	Simple interest
	Harvest Enterprises, Inc.	 	6/21/2019	 	$	3,619,112.00	 	 	$	3,760,120.55	 	 	 	8	%	 	Simple interest
	Harvest Enterprises, Inc.	 	11/18/2019	 	$	1,000,000.00	 	 	$	1,028,222.48	 	 	 	8	%	 	Simple interest
	Harvest Enterprises, Inc.	 	2/3/2020	 	$	400,000.00	 	 	$	404,546.44	 	 	 	8	%	 	Simple interest

 

    	 	 

    	 

    

 

EXHIBIT
A-2

 

Secured
Notes

 

1.
Secured Promissory Note, dated April 24, 2019, in the principal amount of $2,250,000, issued by the Member and the Company to
Harvest Enterprises, Inc.

 

2.
Secured Promissory Note, dated June 21, 2019, in the principal amount of $3,550,000, issued by the Member to Harvest Enterprises,
Inc.

 

3.
Secured Promissory Note, dated June 21, 2019, in the principal amount of $3,619,112, issued by the Company to Harvest Enterprises,
Inc.

 

4.
Secured Promissory Note, dated November 18, 2019, in the principal amount of $1,000,000, issued by the Company to Harvest Enterprises,
Inc.

 

5.
Secured Promissory Note, dated February 3, 2020, in the principal amount of $400,000 issued by the Company to Harvest Enterprises,
Inc.

 

    	 	 

    	 

    

 

EXHIBIT
B-1

 

Buyer
Note

 

See
attached.

 

    	 	 

    	 

    

 

EXHIBIT
B-2

 

Buyer
Security Agreement

 

See
attached.

 

    	 	 

    	 

    

 

EXHIBIT
C

 

Reading
Lease

 

See
attached.Exhibit
10. 32 

 

EXECUTION
VERSION

 

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

 

 

 

AGREEMENT
AND PLAN OF MERGER AND REORGANIZATION

 

by
and among

 

HARVEST
HEALTH & RECREATION, INC.;

 

ICG
ACQUISITION CORP.;

 

AND

 

INTERURBAN
CAPITAL GROUP, INC.

 

and

 

FERTILE
VALLEY LLC, as the Stockholder Representative

 

Dated
as of March 10, 2020

 

    	 	 	 

     

    

 

AGREEMENT
AND PLAN OF MERGER AND REORGANIZATION

 

Dated
as of March 10, 2020

 

This
Agreement and Plan of Merger and Reorganization (this “Agreement”) is entered into as of the date first set
forth above (the “Effective Date”) by and among (i) Harvest Health & Recreation, Inc., a British Columbia
corporation (“Parent”), (ii) ICG Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of
Parent (“Merger Sub”); and (iii) Interurban Capital Group, Inc., a Delaware corporation (the “Company”);
and (iv) Fertile Valley LLC, a Delaware limited liability company, solely in its capacity as the Stockholder Representative (the
“Stockholder Representative”).

 

RECITALS

 

WHEREAS,
the Boards of Directors of each of Parent, Merger Sub, and the Company deem it advisable and in the best interests of Parent,
Merger Sub, and the Company and their respective stockholders, that Parent and the Company combine in order to advance the long-term
business strategies of Parent and the Company;

 

WHEREAS,
the Board of Directors of Parent and Merger Sub have determined that the merger of Merger Sub with and into the Company with the
Company being the surviving entity (the “Merger”), upon the terms and subject to the conditions set forth herein,
is advisable, fair to and in the best interests of Parent, Merger Sub, and the holders of Parent Capital Stock;

 

WHEREAS,
the Board of Directors of the Company has determined that the Merger is advisable, fair to and in the best interests of, the Company
and the Company Stockholders;

 

WHEREAS,
the Board of Directors of each of Parent, Merger Sub, and the Company have approved this Agreement and the Merger on the terms
and conditions contained in this Agreement; and

 

WHEREAS,
Parent as the sole shareholder of Merger Sub, has approved this Agreement, the Merger and the transactions contemplated by this
Agreement pursuant to action taken by unanimous written consent in accordance with the requirements of the British Columbia Business
Corporations Act and the Articles of Incorporation and Bylaws of Merger Sub;

 

NOW
THEREFORE, in consideration of the foregoing, the representations, warranties, covenants and agreements set forth in this
Agreement, and other good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, the parties hereby
agree as follows:

 

Article
I

DEFINITIONS

 

Section
1.01 Definitions. The following terms, as used herein, have the following meanings

 

	 	(a)	“Action”
    means any claim, charge, action, suit, arbitration, mediation, inquiry, hearing, audit, proceeding or investigation by or
    before any Governmental Authority, including any audit, claim or assessment for Taxes or otherwise.

 

    	 	1	 

     

    

 

	 	(b)	“Affiliate”
    means, with respect to any specified Person, any other Person that directly or indirectly through one or more intermediaries,
    controls, is controlled by, or is under common control with, such specified Person. A Person shall be deemed to control another
    Person if such Person possesses, directly or indirectly, the power to direct, or cause the direction of, the management and
    policies of such other Person, whether through the ownership of voting securities, by contract or otherwise.
	 	 	 
	 	(c)	“Ancillary
    Agreements” means, collectively, the agreements set forth in Section 1.01(c) of the Disclosure Schedule and
    any other documents, certificate or agreement to be delivered hereunder.
	 	 	 
	 	(d)	“Applicable
    Canadian Securities Laws” means, collectively, and as the context may require, the applicable securities legislation
    of each of the provinces and territories of Canada, and the rules, regulations, instruments, orders and policies published
    and/or promulgated thereunder and the polices and rules of the CSE, as the foregoing may be amended or re-enacted from time
    to time.
	 	 	 
	 	(e)	“Base
    Shares” means the number of Multiple Voting Shares (rounded down to the nearest whole share) equal to: (i) USD$
    85,773,234 (after converting such amount to CAD$ based on the exchange rate of USD$:CAD$ reported by the Bank of Canada on
    the day prior to the closing of the Merger), (ii) divided by the Parent Share Price.
	 	 	 
	 	(f)	“BCBCA”
    means the British Columbia Business Corporations Act, as from time to time amended or re-enacted and includes any regulations
    heretofore or hereafter made pursuant thereto.
	 	 	 
	 	(g)	“Books
    and Records” means all books of account, tax records, sales and purchase records, customer and supplier lists, computer
    software, formulae, business reports, plans and projections and all other documents, files, correspondence and other information
    of a Person, as the case may be (whether in written, printed, electronic or computer printout form).
	 	 	 
	 	(h)	“Business”
    means the business of the Companies as currently conducted, including without limitation, (i) the ownership, operation and/or
    management of cannabis licenses and cannabis dispensaries in the States of California and Iowa, and (ii) the provision of
    operational support services with respect to cannabis licenses and cannabis dispensaries in Washington.
	 	 	 
	 	(i)	“Business
    Day” means any day that is not a Saturday, Sunday or other day on which banking institutions in Delaware are authorized
    or required by law or executive order to close.
	 	 	 
	 	(j)	“California
    Entities” means the entities set forth in Section 1.01(j) of the Disclosure Schedule.
	 	 	 
	 	(k)	“California
    Licensee Assignment” means the Assignment and Assumption Agreements set forth in Section 1.01(k) of the Disclosure
    Schedule.
	 	 	 
	 	(l)	“Canadian
    Securities Laws” means applicable Canadian provincial and territorial securities laws.

 

    	 	2	 

     

    

 

	 	(m)	“Cannabis
    Regulators” means, collectively, (i) the California Department of Consumer Affairs, Bureau of Cannabis Control,
    California Department of Food and Agriculture and the California Department of Public Health; (ii) the Iowa Department of
    Public Health; (iii) the Washington State Liquor and Cannabis Board; and (iv) any other state or municipal regulatory body
    responsible for the regulation and enforcement of the Business.
	 	 	 
	 	(n)	“Cash
    Adjustment Amount” means the amount, if any, by which the Closing Date Cash Amount is less than the Target Closing
    Date Cash Amount.
	 	 	 
	 	(o)	“Cash
    Adjustment Shares” means the number of Multiple Voting Shares (rounded to the nearest whole share) equal to the
    Cash Adjustment Amount, divided by the Parent Share Price.
	 	 	 
	 	(p)	“CBA
    Letter” means that certain side letter addressing the collective bargaining agreements set forth on Section 1.01(p)
    of the Disclosure Schedule.
	 	 	 
	 	(q)	“CERCLA”
    means the Comprehensive Environmental Response, Compensation and Liability Act of 1980.
	 	 	 
	 	(r)	“Closing
    Balance Sheet” means the combined balance sheet of the Companies and the Washington Entities as set forth on Section
    1.01(r) of the Disclosure Schedule. The Company shall provide an updated Closing Balance Sheet as of the Closing Date
    to reflect assets acquired or disposed of and Liabilities incurred or paid off in the ordinary course of the operation of
    business of the Companies and the Washington Entities subsequent to the Effective Date, which shall be deemed to update and
    qualify the Closing Balance Sheet provided at the Effective Date. The Closing Balance sheet does not reflect depreciation,
    accretions or adjustments of a normal and recurring nature which are normally included in financial statements prepared in
    accordance with GAAP.
	 	 	 
	 	(s)	“Closing
    Date Cash Amount” means the amount of all cash and cash equivalents, including without limitation restricted cash,
    of the Companies and the Washington Entities as of immediately prior to the Effective Time as reflected on the Closing Balance
    Sheet.
	 	 	 
	 	(t)	“Code”
    means the Internal Revenue Code of 1986, as amended.
	 	 	 
	 	(u)	“Companies”
    means, collectively, the Company, its Subsidiaries, the California Entities and the Iowa Entity.
	 	 	 
	 	(v)	“Company
    Capital Stock” means the Company Common Stock and the Company Series A Preferred Stock.
	 	 	 
	 	(w)	“Company
    Common Stock” means the common stock, par value $.001 per share, of the Company.
	 	 	 
	 	(x)	“Company
    Intellectual Property” means any and all Intellectual Property owned by any of the Companies or the Washington Entities
    that is used in, held for use in, or necessary for the conduct of the Business as currently conducted.

 

    	 	3	 

     

    

 

	 	(y)	“Company
    IP Agreements” means any (a) licenses, sublicenses or other Contracts under which any of the Companies or Washington
    Entities grant any Company Intellectual Property rights to third parties, (b) licenses, sublicenses, or other Contracts under
    which any of the Companies use or have the right to use the Intellectual Property of third parties that are used in connection
    with the Business as currently conducted, (c) agreements between any of the Companies, Washington Entities and third parties
    relating to the development or use of Intellectual Property, the development or transmission of data, or the use, modification,
    framing, linking advertisement, or other practices with respect to internet websites, in each case, that are used in connection
    with the Business, and (d) consents, settlements, decrees, orders, injunctions, judgments or rulings governing the use, validity
    or enforceability of Company Intellectual Property.
	 	 	 
	 	(z)	“Company
    Material Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be
    expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition
    (financial or otherwise) or assets of the Companies and the Washington Entities, or (b) the ability of the Company to consummate
    the transactions contemplated hereby on a timely basis; provided, however, that “Company Material Adverse Effect”
    shall not include any event, occurrence, fact, condition or change attributable to: (i) general economic or political conditions;
    (ii) conditions affecting the industries in which the Companies and the Washington Entities operate (including but not limited
    to the cannabis industry), except to the extent such conditions adversely affect the Company and the Washington Entities in
    a disproportionate manner relative to other companies in the cannabis industry; (iii) any changes in financial, banking or
    securities markets in general; (iv) a national emergency, acts of war (whether or not declared), armed hostilities or terrorism,
    or the escalation or worsening thereof; (v) any changes in applicable Laws or accounting rules (including GAAP); or (vi) the
    announcement, pendency or completion of the transactions contemplated by this Agreement, including losses or threatened losses
    of employees, customers, suppliers, distributors or others having relationships with the Companies and/or the Washington Entities.
	 	 	 
	 	(aa)	“Company
    Series A Preferred Stock” means the Series A Preferred Stock, par value $.001 per share, of the Company.
	 	 	 
	 	(bb)	“Company
    Stockholders” means the holders of 100% of the capital stock of the Company as set forth in Section 1.01(bb)
    of the Disclosure Schedule.
	 	 	 
	 	(cc)	“Confidentiality
    Agreement” means that certain Mutual Nondisclosure Agreement, dated December 4, 2019 by and between Company and
    Parent.
	 	 	 
	 	(dd)	“Contract”
    means any written or oral contract, agreement, indenture, commitment, note, bond, loan, instrument, lease, conditional sale
    contract, mortgage, license, arrangement or other legally binding agreement or obligation.
	 	 	 
	 	(ee)	“CSE”
    means the Canadian Securities Exchange.
	 	 	 
	 	(ff)	“DGCL”
    means the Delaware General Corporation Law.

 

    	 	4	 

     

    

 

	 	(gg)	“Disclosure
    Schedule” means the Disclosure Schedule attached hereto, dated as of the date hereof, delivered by the Company to
    Parent and by the Parent to the Company, as applicable, in connection with this Agreement.
	 	 	 
	 	(hh)	“Employees”
    or “Employee” means all Persons employed by the Companies and the Washington Entities immediately prior
    to the Closing. “Employee” does not include independent contractors or consultants.
	 	 	 
	 	(ii)	“Environmental
Claim” means any and all administrative, regulatory or judicial Actions, demands, demand letters, claims, liens, notices
of noncompliance or violation, investigations, proceedings, consent orders or consent agreements relating in any way to any Environmental
Law or any Environmental Permit.
	 	 	 
	 	(jj)	“Environmental
    Laws” means all Laws, now or hereafter in effect and as amended, and any judicial interpretation thereof, including
    any judicial or administrative order, consent decree or judgment, relating to the environment, health, safety, product registration,
    natural resources or Hazardous Materials, including without limitation, CERCLA.
	 	 	 
	 	(kk)	“Environmental
    Notice” means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim
    relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.
	 	 	 
	 	(ll)	“Environmental
    Permits” means all Permits required under or issued pursuant to any applicable Environmental Law.
	 	 	 
	 	(mm)	“ERISA”
    means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder.
	 	 	 
	 	(nn)	“ERISA
    Affiliate” means all employers, trades or businesses (whether or not incorporated) that would be treated together
    with the Company or any of its Affiliates as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the
    Code.
	 	 	 
	 	(oo)	“GAAP”
    means United States generally accepted accounting principles and practices in effect from time to time applied consistently
    throughout the periods involved.
	 	 	 
	 	(pp)	“Governmental
    Authority” means any Canadian, United States, federal, state, local or foreign government or political subdivision
    thereof, or any agency, including without limitation, the Cannabis Regulators and the Securities Authorities, or instrumentality
    of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority
    or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have
    the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.
	 	 	 
	 	(qq)	“Governmental
    Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with
    any Governmental Authority.

 

    	 	5	 

     

    

 

	 	(rr)	“Harvest
    Public Reports” means all publicly available documents filed electronically by or on behalf of Parent on SEDAR or
    on the internet web site maintained by the CSE at www.thecse.com.
	 	 	 
	 	(ss)	“Hazardous
    Materials” means (a) petroleum and petroleum products, radioactive materials, asbestos-containing materials, urea
    formaldehyde foam insulation, transformers or other equipment that contain polychlorinated biphenyls and radon gas, and (b)
    any other chemicals, materials or substances defined as or included in the definition of “hazardous substances”,
    “hazardous wastes”, “hazardous materials”, “extremely hazardous wastes”, “restricted
    hazardous wastes”, “toxic substances”, “toxic pollutants”, “contaminants” or “pollutants”,
    or words of similar import, under any applicable Environmental Law.
	 	 	 
	 	(tt)	“HHR
    Stock” means Parent’s Subordinate Voting Shares listed and posted for trading on the CSE (Symbol: HARV).
	 	 	 
	 	(uu)	“Holdback
    Shares” means the Indemnity Shares and the Stockholder Representative Shares.
	 	 	 
	 	(vv)	“Holdback
    Share Value” means the greater of (a) the Parent Share Price or (b) 100 times the volume weighted average price
    of a share of HHR Stock over the 20 trading-day period ending three trading days prior to the date of release or retention
    by Parent of such shares, as reported by Bloomberg.
	 	 	 
	 	(ww)	“IFRS”
    means the International Financial Reporting Standards set by the International Accounting Standard Board which are applicable
    on the date on which any calculation is to be effective or the date of any financial statements referred to herein, as the
    case may be.
	 	 	 
	 	(xx)	“Indebtedness”
    means, with respect to the Companies and the Washington Entities, at the time of any determination, without duplication: all
    obligations, contingent or otherwise, of the Companies and the Washington Entities, including the outstanding principal amount
    of, all accrued and unpaid interest on and other payment obligations (including any premiums, termination fees, expenses,
    breakage costs or penalties due upon prepayment of or payable in connection with this Agreement or the consummation of the
    transactions contemplated by this Agreement) in respect of, (a) all indebtedness of the Companies and the Washington Entities
    for borrowed money, which shall include borrowing agreements such as notes, bonds, indentures, mortgages, loans and lines
    of credit or similar instruments, (b) the guaranty, endorsement (other than for collection or deposit in the ordinary course
    of business), co-making or sale with recourse by a Person of the obligation of another Person, (c) all obligations (including
    breakage costs) payable by any of the Companies or any Washington Entity under interest rate or currency protection agreements,
    (d) any reimbursement obligation with respect to letters of credit (including standby letters of credit to the extent drawn
    upon), bankers’ acceptances, performance bonds or similar facilities issued for the account of any of the Companies
    or any Washington Entity, (e) all obligations arising from installment purchases of property or representing the deferred
    purchase price of property or services in respect of which any of the Companies or any Washington Entity is liable, contingently
    or otherwise, as obligor or otherwise, including any earnouts, seller notes, contingency payments or similar Liabilities relating
    to past acquisitions, (f) all obligations secured by any Lien or payable out of the proceeds or product from any property
    or assets owned by any of the Companies or any Washington Entity, (g) deferred compensation for services, (h) all indebtedness
    created or arising under any conditional sale or other title retention agreement with respect to property acquired by any
    of the Companies or any Washington Entity, and (i) any obligation of the type referred to in clauses (a) through (h) of this
    definition of another Person, the payment of which any of the Companies or any Washington Entity has guaranteed, or which
    is secured by any property or assets of such Person, or for which any of the Companies or any Washington Entity is responsible
    or liable, directly or indirectly, jointly or severally, as obligor, guarantor or otherwise.

 

    	 	6	 

     

    

 

	 	(yy)	“Indemnity
    Shares” means that number of Multiple Voting Shares (rounded down to the nearest whole share) equal to 10% of the
    number of Base Shares less the Stockholder Representative Shares.
	 	 	 
	 	(zz)	“Independent
    Accountant” means an independent certified public accountant at a nationally recognized accounting firm who is mutually
    agreeable to Parent and the Stockholder Representative.
	 	 	 
	 	(aaa)	“Intellectual
    Property” means all intellectual property rights arising from or in respect of the following: (i) inventions, processes,
    methods, algorithms and formulae, including all patents and patent applications and statutory invention registrations, (ii)
    all trademarks, service marks, trade names, service names, brand names, trade dress, logos, domain names and corporate names
    and other identifiers of source or goodwill, including registrations and applications for registration or renewal thereof
    and including the goodwill of the business symbolized thereby or associated therewith, (iii) works, copyrights, including
    copyrights in computer software, promotional materials and any websites, data, databases and any registrations and applications
    for registration of any of the forgoing, (iv) all computer software (including source code, executable code, data, databases
    and documentation), and (v) confidential and proprietary information, including trade secrets, know-how and rights in non-published
    inventions.
	 	 	 
	 	(bbb)	“Investor
    Agreements” means the agreements described in Section 1.01(bbb) of the Disclosure Schedule.
	 	 	 
	 	(ccc)	“Iowa
Entity” means Have a Heart Iowa LLC, an Iowa limited liability company.
	 	 	 
	 	(ddd)	“Iowa
    Licensee Assignment” means the Assignment and Assumption Agreements set forth in Section 1.01(ddd) of the Disclosure
    Schedule.
	 	 	 
	 	(eee)	“IRS”
means the Internal Revenue Service of the United States.
	 	 	 
	 	(fff)	“Knowledge”
    means “Knowledge” means (a) with respect to the Company and/or the Company Stockholders, the actual knowledge
    of Ryan Kunkel and Alex Lee after reasonable inquiry, and (b) with respect to Parent, the actual knowledge of Jason Vedadi
    and Steven White after reasonable inquiry.

 

    	 	7	 

     

    

 

	 	(ggg)	“Law”
    means any domestic or foreign, federal, state, municipality or local law, statute, ordinance, code, rule, regulation, directive,
    norm, order, requirement or rule of law (including common law); provided, however, the parties hereby acknowledge that under
    United States federal law, and more specifically the Federal Controlled Substances Act, the possession, use, cultivation,
    marketing and transfer of cannabis is illegal and that, notwithstanding anything to the contrary, with respect to regulated
    cannabis business activities, “Law”, “law”, or “federal” shall only include such federal
    law, authority, agency, or jurisdiction as is not in conflict with the Laws, regulations, authority, agency, or jurisdiction
    of any state, district, or territory regarding such regulated cannabis business activities.
	 	 	 
	 	(hhh)	“Leased
    Real Property” means the real property leased, subleased, licensed or otherwise used by any of the Companies or
    Washington Entity as tenant, subtenant, licensee or occupant, as applicable, together with, to the extent leased by any of
    the Companies or any of the Washington Entities, all buildings and other structures, facilities or improvements currently
    or hereafter located thereon, all fixtures, systems, equipment and items of personal property of any of the Companies or any
    of the Washington Entities attached or appurtenant thereto and all easements, licenses, rights and appurtenances relating
    to the foregoing.
	 	 	 
	 	(iii)	“Liabilities”
    means with respect to any Person, any and all debts, liabilities or obligations of such Person of any kind or nature whatsoever,
    whether asserted or unasserted, known or unknown, accrued or unaccrued, absolute or contingent, matured or unmatured, liquidated
    or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined,
    determinable or otherwise, and whether or not the same is required to be accrued on the financial statements of such Person,
    including those arising under any Law (including any Environmental Law), Action or Governmental Order and those arising under
    any Contract, agreement, arrangement, commitment or undertaking.
	 	 	 
	 	(jjj)	“Lien”
    means any charge, claim, community or other marital property interest, condition, equitable interest, lien, option, pledge,
    security interest, mortgage deed of trust, right of way, easement, encroachment, servitude, right of first option, right of
    first or last negotiation or refusal or similar restriction, including any restriction on use, voting (in the case of any
    security or equity interest), transfer, receipt of income or exercise of any other attribute of ownership, excluding in each
    case Permitted Liens.
	 	 	 
	 	(kkk)	“Losses”
    means any and all losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs
    or expenses of whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification
    hereunder and the cost of pursuing any insurance providers; provided, however, that “Losses” shall
    not include consequential, incidental, exemplary, indirect, special, punitive, speculative or remote damages (including loss
    of future revenue, income or profits, or any diminution of value or multiples of earnings damages relating to the breach or
    alleged breach hereof, whether or not the possibility of such damages has been disclosed in advance or could have been reasonably
    foreseen), except in the case of fraud or to the extent actually awarded to a Governmental Authority or other third party.
	 	 	 
	 	(lll)	“Medical
    Marijuana Treatment Center” has the meaning set forth in Section 381.986(8), Florida Statutes.

 

    	 	8	 

     

    

 

	 	(mmm)	“Multiple
    Voting Shares” means the multiple voting shares in the capital of Parent, which shares will have the privileges,
    duties, liabilities, obligations and rights set forth in the Articles of Incorporation of Parent.
	 	 	 
	 	(nnn)	“Outside
    Date” means June 30, 2020.
	 	 	 
	 	(ooo)	“Organizational
    Documents” means, with respect to any Person that is not an individual, (a) such Person’s certificate of incorporation
    and bylaws, (b) such Person’s certificate of formation, certificate of trust, limited liability company agreement, limited
    partnership agreement or trust agreement or (c) any documents comparable to those described in clauses (a) and (b) as may
    be applicable pursuant to any applicable Law, and (c) any amendment or modification to any of the foregoing.
	 	 	 
	 	(ppp)	“Parent
    Capital Stock” means the authorized share capital of Parent, consisting of an unlimited number of subordinate voting
    shares, an unlimited number of multiple voting shares, an unlimited number of super voting shares and an unlimited number
    of preferred shares, issuable in series.
	 	 	 
	 	(qqq)	“Parent
    Material Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be
    expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition
    (financial or otherwise) or assets of Parent and its Affiliates, or (b) the ability of Parent to consummate the transactions
    contemplated hereby on a timely basis; provided, however, that “Parent Material Adverse Effect” shall not include
    any event, occurrence, fact, condition or change attributable to: (i) general economic or political conditions; (ii) conditions
    affecting the industries in which Parent operates (including but not limited to the cannabis industry), except to the extent
    such conditions adversely affect Parent in a disproportionate manner relative to other companies in the cannabis industry;
    (iii) any changes in financial, banking or securities markets in general; (iv) a national emergency, acts of war (whether
    or not declared), armed hostilities or terrorism, or the escalation or worsening thereof; (v) any changes in applicable Laws
    or accounting rules (including GAAP); or (vi) the announcement, pendency or completion of the transactions contemplated by
    this Agreement, including losses or threatened losses of employees, customers, suppliers, distributors or others having relationships
    with Parent or its Affiliates.
	 	 	 
	 	(rrr)	“Parent
    Share Price” means CAD$372.
	 	 	 
	 	(sss)	“Permit”
    means any permit, license, certificate (including a certificate of occupancy) registration, authorization, application, filing,
    notice, qualification, waiver of any of the foregoing or approval of a Governmental Authority.
	 	 	 
	 	(ttt)	“Permitted
    Closing Liabilities” means those Liabilities reflected on the Closing Balance Sheet.
	 	 	 
	 	(uuu)	“Permitted
    Lien” means:

 

(i)
Liens for Taxes and other charges by any Government Authority which are not delinquent as of the Closing Date;

 

    	 	9	 

     

    

 

(ii)
any Lien or privilege vested in any lessor or licensor for rent or other obligations so long as the payment of such rent or the
performance of such obligations is not delinquent;

 

(iii)
in case of any leased asset, the rights of the lessor of such asset and any Lien granted by such lessor; and

 

(iv)
the Liens set forth on Section 1.01(uuu) of the Disclosure Schedule.

 

	 	(vvv)	“Person”
    means an individual, corporation, partnership (including a general partnership, limited partnership or limited liability partnership),
    limited liability company, association, trust or other entity or organization, including a government, domestic or foreign,
    or political subdivision thereof, or an agency or instrumentality thereof.
	 	 	 
	 	(www)	“Personal
    Property” means all of the vehicles, machinery, equipment, tools, furniture, leasehold improvements, office equipment,
    computer hardware (including peripherals), appliances, spare parts, supplies, materials and other items of tangible personal
    property of every kind which are owned, used or leased (as lessor or lessee) by any of the Companies or Washington Entity
    and used or useful in the conduct of the Business or the operations of the Business or intended by any of the Companies or
    any of the Washington Entities for use in connection with the Business or the operations of the Business, wherever located
    and whether or not carried on the books of the Companies and the Washington Entities.
	 	 	 
	 	(xxx)	“Post-Closing
    Tax Period” means any taxable period beginning after the Closing Date and, with respect to any taxable period beginning
    before and ending after the Closing Date, the portion of such taxable period beginning after the Closing Date.
	 	 	 
	 	(yyy)	“Pre-Closing
    Tax Period” means any taxable period ending on or before the Closing Date and, with respect to any taxable period
    beginning before and ending after the Closing Date, the portion of such taxable period ending on and including the Closing
    Date.
	 	 	 
	 	(zzz)	“Pro
    Rata Share” means, with respect to any Company Stockholder, the quotient (expressed as a percentage) obtained by
    dividing, as of any point in time (a) the portion of the Merger Consideration then-paid to such Person for all shares of Company
    Capital Stock held by such Person, by (b) the aggregate Merger Consideration then-paid.
	 	 	 
	 	(aaaa)	“Real
    Property” means the real property owned, leased or subleased by any of the Companies or any of the Washington Entities,
    together with all buildings, structures and facilities located thereon and all rights, privileges, interests, easements, hereditaments
    and appurtenances thereto.
	 	 	 
	 	(bbbb)	“Regulatory
    Licenses” means, collectively, the licenses and any and all related approvals issued by Governmental Authorities
    in California, Iowa, and Washington authorizing the Companies to sell marijuana and marijuana products under the marijuana
    laws of the States of California, Iowa, and Washington, together with any amendments, supplements or other authorizations
    related thereto set forth in Section 1.01(bbbb) of the Disclosure Schedule.

 

    	 	10	 

     

    

 

	 	(cccc)	“Release”
    means disposing, discharging, injecting, spilling, leaking, leaching, dumping, emitting, escaping, emptying, seeping, placing
    and the like into or upon any land, water, or air or that otherwise enters the environment.
	 	 	 
	 	(dddd)	“Representative”
    means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants
    and other agents of such Person.
	 	 	 
	 	(eeee)	“Reporting
    Jurisdictions” means collectively the provinces of British Columbia, Alberta and Ontario and all other provinces
    and territories of Canada in which Parent is a reporting issuer under Applicable Canadian Securities Laws.
	 	 	 
	 	(ffff)	“Securities
    Act” means the U.S. Securities Act of 1933, as amended.
	 	 	 
	 	(gggg)	“Securities
    Authorities” means the applicable securities commissions or similar securities regulatory authorities in each of
    the Reporting Jurisdictions, and the CSE.
	 	 	 
	 	(hhhh)	“SEDAR”
    means www.sedar.com, which is the official website that provides access to public securities documents and information filed
    by public companies and investment funds as maintained by the Canadian Securities Administrators (CSA) in the SEDAR filing
    system.
	 	 	 
	 	(iiii)	“Stockholder
    Representative Shares” means that number of Multiple Voting Shares (rounded down to the nearest whole share) equal
    to: (i) USD$628,823 (after converting such amount to CAD$ based on the exchange rate of USD$:CAD$ reported by the Bank of
    Canada on the day prior to the closing of the Merger), (ii) divided by the Parent Share Price.
	 	 	 
	 	(jjjj)	“Stockholder
    Representative Share Value” means the greater of (a) the Parent Share Price or (b) 100 times the volume weighted
    average price of a share of HHR Stock over the 20 trading-day period ending three trading days prior to the date of release
    or retention by Parent of such shares, as reported by Bloomberg.
	 	 	 
	 	(kkkk)	“Subsidiary”
    is defined in Section 3.02.
	 	 	 
	 	(llll)	“Target
    Closing Date Cash Amount” means USD$[***].
	 	 	 
	 	(mmmm)	“Tax(es)”
    means any federal, state, local or foreign tax, levy, custom, duty, deficiency, or other assessment of any kind or nature
    imposed by any Taxing Authority (including any income (net or gross), gross receipts, profits, windfall profit, sales, use,
    goods and services, ad valorem, franchise, withholding, employment, social security, workers compensation, unemployment compensation,
    employment, payroll, transfer, excise, import, real property, personal property, intangible property, occupancy, recording,
    minimum, alternative minimum, environmental or estimated tax), including any liability therefor as a transferee (including
    under Section 6901 of the Code or similar provision of applicable Law) or successor, as a result of Treasury Regulation Section
    1.1502-6 or similar provision of applicable Law or as a result of any Tax sharing, indemnification or similar agreement, together
    with any interest, penalty, additions to tax or additional amount imposed with respect thereto.

 

    	 	11	 

     

    

 

	 	(nnnn)	“Tax
    Return” means any return, information return, declaration, claim for refund or credit, report or any similar statement,
    and any amendment thereto, including any attached schedule and supporting information, whether on a separate, consolidated,
    combined, unitary or other basis, that is filed or required to be filed with any Taxing Authority in connection with the determination,
    assessment, collection or payment of a Tax or the administration of any Law relating to any Tax.
	 	 	 
	 	(oooo)	“Taxing
    Authority” means the Internal Revenue Service and any other Governmental Authority responsible for the collection,
    assessment or imposition of any Tax or the administration of any Law relating to any Tax.
	 	 	 
	 	(pppp)	“Transaction
    Expenses” means all fees, costs and expenses incurred by or behalf of, or otherwise payable by the Companies (or
    incurred by or on behalf of, or otherwise payable by the Company Stockholders) that have not been paid as of the Closing Date,
    including, without limitation, fees, costs, and expenses (a) incurred in the consideration, preparation, documentation, execution
    and consummation of the transactions contemplated by this Agreement, or any alternative transactions, including fees and disbursements
    of any Company Stockholder, attorneys, financial advisors, accountants and other advisors and service providers, and (b) in
    respect of any bonus, severance or other payment or other form of compensation or benefits that is created, accelerated, accrues
    or becomes payable by any of the Companies or the Washington Entities in connection with the consummation of the transactions
    contemplated by this Agreement, to any present or former manager/director, shareholder, member, employee, independent contractor
    or consultant thereof, including pursuant to any employment or consulting agreement, benefit plan or any other Contract, including
    any Taxes payable on or triggered by any such payment.
	 	 	 
	 	(qqqq)	“Washington
Entity” or “Washington Entities” means the entities set forth in Section 1.01(qqqq) of the Disclosure
Schedule.
	 	 	 
	 	(rrrr)	“Washington
Entities Agreements” means the Services Agreements and Call Option Agreements set forth in Section 1.01(rrrr) of
the Disclosure Schedule.
	 	 	 
	 	(ssss)	“Washington
    Entity Owners” means the owners of the Washington Entities set forth in Section 1.01(ssss) of the Disclosure
    Schedule.
	 	 	 
	 	(tttt)	“Washington
    Entity Capital” has the meaning set forth in Section 1.01(tttt) of the Disclosure Schedule.
	 	 	 
	 	(uuuu)	“Written
    Consent” has the meaning set forth in Section 5.09.

 

Section
1.02 Interpretive Provisions. Unless the express context otherwise requires:

 

	 	(a)	the
    words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this
    Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;
	 	 	 
	 	(b)	terms
    defined in the singular shall have a comparable meaning when used in the plural, and vice versa;
	 	 	 
	 	(c)	the
    terms “Dollars” and “$” mean United States Dollars;

 

    	 	12	 

     

    

 

	 	(d)	references
    herein to a specific Section, Subsection, Recital, Schedule or Exhibit shall refer, respectively, to Sections, Subsections,
    Recitals, Schedules or Exhibits of this Agreement;
	 	 	 
	 	(e)	wherever
    the word “include,” “includes,” or “including” is used in this Agreement, it shall be
    deemed to be followed by the words “without limitation”;
	 	 	 
	 	(f)	references
    herein to any gender shall include each other gender;
	 	 	 
	 	(g)	references
    herein to any Person shall include such Person’s heirs, executors, personal representatives, administrators, successors
    and assigns; provided, however, that nothing contained in this Section 1.02(g) is intended to authorize any assignment
    or transfer not otherwise permitted by this Agreement;
	 	 	 
	 	(h)	references
    herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity;
	 	 	 
	 	(i)	references
    herein to any contract or agreement (including this Agreement) mean such contract or agreement as amended, supplemented or
    modified from time to time in accordance with the terms thereof;
	 	 	 
	 	(j)	with
    respect to the determination of any period of time, the word “from” means “from and including” and
    the words “to” and “until” each means “to but excluding”;
	 	 	 
	 	(k)	references
    herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented or superseded
    in whole or in part, and in effect from time to time; and
	 	 	 
	 	(l)	references
    herein to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder.

 

Article
II

THE
MERGER

 

Section
2.01 The Merger. Upon the terms and subject to the conditions of this Agreement, and in accordance with the DGCL, at the
Effective Time (as hereinafter defined), Merger Sub shall be merged with and into the Company. As a result of the Merger, the
separate corporate existence of Merger Sub shall cease, and the Company shall continue as the surviving company following the
Merger (the “Surviving Company”). The corporate existence of the Company, with all its purposes, rights, privileges,
franchises, powers and objects, shall continue unaffected and unimpaired by the Merger.

 

Section
2.02 Effects of the Merger. At the Effective Time, the effect of the Merger shall be as provided in the applicable provisions
of the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time:

 

(a)
All the property, rights, privileges, powers and franchises of the Company and Merger Sub shall vest in the Surviving Company,
and all debts, liabilities, obligations, restrictions, disabilities and duties of the Company and Merger Sub shall become the
debts, liabilities, obligations, restrictions, disabilities and duties of the Surviving Company;

 

    	 	13	 

     

    

 

(b)
The Certificate of Incorporation of the Company shall be the Certificate of Incorporation of the Surviving Company, until duly
amended or repealed in accordance with the provisions thereof and of applicable Law; and

 

(c)
The Bylaws of the Company shall be the Bylaws of the Surviving Company, until duly amended or repealed in accordance with the
provisions thereof and of applicable Law.

 

Section
2.03 Conversion of the Company Capital Stock.

 

(a)
At the Effective Time, each share of Company Capital Stock issued and outstanding immediately prior to the Effective Time (other
than the Dissenting Shares) shall be canceled and shall by virtue of the Merger and without any action on the part of the Company
Stockholders be converted automatically into the right to receive the applicable portion of the Merger Consideration described
in Section 2.05 and as set forth in greater detail on the Payment Spreadsheet; and

 

(b)
At the Effective Time, all shares of the Company Capital Stock converted pursuant to Section 2.03(a) shall no longer be
outstanding and shall automatically be canceled and retired and cease to exist, and the Company Stockholders shall cease to have
any rights with respect thereto, except the right to receive the Merger Consideration in accordance with the terms herein.

 

Section
2.04 Merger Sub Stock. At the Effective Time, all outstanding shares of common stock, par value $0.01 per share, of Merger
Sub issued and outstanding immediately prior to the Effective Time shall be converted into and become, collectively, one validly
issued, fully paid and nonassessable share of common stock of the Surviving Company and shall constitute the only outstanding
shares of capital stock of the Surviving Company.

 

Section
2.05 Merger Consideration.

 

(a)
Generally. On the terms and subject to the conditions set forth in this Agreement, and in reliance on the representations,
warranties and covenants of the parties hereto, the aggregate consideration to be paid to the Company Stockholders in the Merger
shall be that number of Multiple Voting Shares equal to the Base Shares (the “Merger Consideration” or “Merger
Shares”). At Closing, the Company Stockholders will receive the Merger Shares minus (a) the Indemnity Shares, and minus
(b) the Stockholder Representative Shares (the “Closing Shares”). Parent shall issue the Closing Shares to
the Company Stockholders in accordance with the Payment Spreadsheet and as provided for in Section 7.03(d). The Indemnity
Shares in the amounts set forth in the Payment Spreadsheet shall be retained by Parent to satisfy any amounts owed to Parent pursuant
to the Company Stockholders’ indemnification obligations pursuant to Article VI. The Stockholder Representative Shares
in the amounts set forth in the Payment Spreadsheet shall be retained by Parent for the purpose of funding any expenses of the
Stockholder Representative arising in connection with the administration of the Stockholder Representative’s duties under
this Agreement (the “Stockholder Representative Expenses”), as further described in Section 8.01(f).
The Merger Consideration shall be represented by one or more certificates or may be uncertificated, at the election of Parent
and shall be made only in whole shares of Multiple Voting Shares, and any fractional Multiple Voting Shares shall be rounded down
to the nearest whole share of Multiple Voting Shares.

 

    	 	14	 

     

    

 

(b)
Payment of Cash Adjustment Amount. In the event there is a Cash Adjustment Amount then, promptly following the Closing,
the Stockholder Representative shall authorize the Parent to retain from the Indemnity Shares, the Cash Adjustment Shares. Such
retention by Parent of the Cash Adjustment Shares shall occur if, and only if, the Cash Adjustment Amount and related number of
Cash Adjustment Shares is agreed or admitted to by the Stockholder Representative in writing.

 

Section
2.06 Exchange Procedures. Upon the Effective Time, the Company Stockholders shall deliver and surrender to Parent the stock
certificates representing the Company Stockholders’ shares of the Company Capital Stock duly endorsed in blank or accompanied
by stock powers duly executed in blank or other instruments of transfer in form and substance reasonably satisfactory to Parent,
and thereafter the Company Stockholders shall be entitled to receive the Merger Consideration in exchange therefor.

 

Section
2.07 No Further Ownership Rights in the Company Capital Stock. All shares of Multiple Voting Shares issued upon conversion
of shares of Company Capital Stock in accordance with the terms of this Article II shall be deemed to have been issued
or paid in full satisfaction of all rights pertaining to the shares of Company Capital Stock and there shall be no further registration
of transfers on the stock transfer books of the Surviving Company of the shares of Company Capital Stock which were outstanding
immediately prior to the Effective Time.

 

Section
2.08 Stock Transfer Books. On the Closing Date, the stock transfer books of the Company shall be closed and there shall
be no further registration of transfers of shares of the Company Capital Stock thereafter on the records of the Company. From
and after the Effective Time, the Company Stockholders shall cease to have any rights with respect to such shares of the Company
Capital Stock formerly represented thereby, except as otherwise provided herein or by Law. On or after the Effective Time, any
stock certificates presented to Parent for any reason shall be converted into the Merger Consideration with respect to the shares
of the Company Capital Stock formerly represented thereby.

 

Section
2.09 Payment Spreadsheet. Not less than two Business Days prior to the Closing Date, the Company shall deliver to Parent
a spreadsheet (the “Payment Spreadsheet”), certified by an officer of the Company, that sets forth: (a) each
Company Stockholder’s portion of number of Multiple Voting Shares constituting the Merger Shares (which amounts shall be
calculated in accordance with the provisions of the Company’s certificate of incorporation, as amended and in effect as
of immediately prior to the Closing); (b) each Company Stockholder’s portion of the number of Multiple Voting Shares constituting
the Closing Shares; (c) each Company Stockholder’s portion of the number of Multiple Voting Shares constituting the Indemnity
Shares; (d) each Company Stockholder’s portion of the number of Multiple Voting Shares constituting the Stockholder Representative
Shares; and (e) transfer agent instructions and other shareholder information required by the Parent’s transfer agent with
respect to all amounts designated in such spreadsheet. From time to time following the Closing, the Payment Spreadsheet may be
amended by the Stockholder Representative in order to make any necessary updates to the Pro Rata Shares of the Company Stockholders
in accordance with this Agreement, after taking into account any and all portions of the Merger Consideration previously paid
to each Company Stockholder, including any Multiple Voting Shares that may be released to the Company Stockholders from the Holdback
Shares. Parent shall be entitled to rely conclusively on the Payment Spreadsheet as in effect from time to time.

 

    	 	15	 

     

    

 

Section
2.10 Closing; Closing Date. Subject to the terms and conditions of this Agreement, the consummation of the Merger shall
take place at a closing (the “Closing”) to be held remotely via the electronic exchange of counterpart signature
pages promptly after all of the conditions to Closing set forth in Article V are either satisfied or waived (other than
conditions which, by their nature, are to be satisfied on the Closing Date), at such time and date as the parties mutually agree
upon in writing (in any case, the “Closing Date”). At the Closing the parties hereto shall cause the Merger
to be consummated by filing a Certificate of Merger (the “a Certificate of Merger”) with the Secretary of State
of the State of Delaware and by making all other filings or recordings required under the DGCL in connection with the Merger,
in such form as is required by, and executed in accordance with the relevant provisions of, the DGCL. The Merger shall become
effective at such time as the Certificate of Merger are duly filed with the Secretary of State of the State of Delaware, or at
such other time as the parties hereto agree shall be specified in the Certificate of Merger (the date and time the Merger becomes
effective, the “Effective Time”).

 

Section
2.11 Closing Deliveries by the Company. At the Closing, the Company shall deliver or cause to be delivered to Parent the
following:

 

(i)
the Certificate of Merger, pursuant to the DGCL, duly executed by an authorized officer of the Company;

 

(ii)
executed counterparts of each of the Ancillary Agreements (as applicable) and an executed CBA Letter on such terms and conditions
reasonably approved by Parent;

 

(iii)
good standing certificates for the Company issued by the Secretary of State of the State of Delaware and for each Subsidiary issued
by the appropriate Governmental Authority in the organizational jurisdiction of such Subsidiary, in either case, dated as of a
date not earlier than five Business Days prior to the Closing;

 

(iv)
a certification duly executed by the Company and dated as of the Closing Date, in form and substance required under Regulations
Section 1.897-2(h)(2) and 1.1445-2I(3) and reasonably acceptable to Parent, certifying that none of the equity interests in the
Company is a “United States real property interest” within the meaning of Section 897 of the Code;

 

(v)
releases and resignations of the managers, officers and directors of the Companies, effective as of the Closing, in form and substance
satisfactory to Parent;

 

(vi)
except those items identified on Section 6.02(f) of the Disclosure Schedule, executed copies of consents and approvals
from each manager or board of managers, as applicable, of each of the California Entities and the Iowa Entity, deemed necessary
by Parent in its commercially reasonable judgment, with respect to the California Licensee Assignment and Iowa Licensee Assignment
in order to authorize the transactions contemplated by this Agreement and the California Licensee Assignment and Iowa Licensee
Assignment;

 

(vii)
complete and correct copies of the minute books, equity interest transfer books and company certificates, and all company seals
and financial and accounting books and records of the Companies;

 

(viii)
a complete list of all living marijuana plants and bagged inventory of marijuana, marijuana products and other cannabis materials
in possession of the Companies and the Washington Entities on the Closing Date (the “Cannabis Inventory”);

 

    	 	16	 

     

    

 

(ix)
a certificate from a duly authorized officer of the Company, dated as of the Closing, (i) certifying that attached thereto are
true and complete copies of (A) the Company Board Recommendation, the resolutions and consents duly and validly adopted by the
board of directors of the Company as provided for in Section 3.01(c) and the Company Stockholders authorizing the execution,
delivery and performance of this Agreement including the Written Consent, the Ancillary Agreements (as applicable), the adoption
of this Agreement, the consummation of the Merger and other transactions contemplated hereby and thereby and waiver and termination
of the Investor Agreements; (B) the certificate of incorporation of the Company, as amended to date and as currently in effect;
and (C) the bylaws of the Company, as amended to date and as currently in effect; (ii) certifying the names and specimen signatures
of the officers of the Company authorized to sign this Agreement and the Ancillary Agreements to which the Company is a party
and the other documents to be delivered hereunder and thereunder; and (iii) certifying that each of the conditions set forth in
Section 7.01 and Section 7.02 have been satisfied; and (iv) certifying the Closing Date Cash Amount; and

 

(x)
such other certificates or other documents reasonably requested and necessary to effectuate the transactions contemplated hereby.

 

Section
2.12 Closing Deliveries by Parent. At the Closing, Parent shall deliver or cause to be delivered the following:

 

(i)
To Company:

 

(1)
The Certificate of Merger, pursuant to the DGCL, duly executed by an authorized officer of Parent;

 

(2)
executed counterparts of each of the Ancillary Agreements (as applicable);

 

(3)
the Closing Shares to the Company Stockholders in accordance with the Payment Spreadsheet;

 

(4)
a certificate from a duly authorized officer of Parent, dated as of the Closing, (i) certifying that attached thereto is a true
and complete copy of the resolutions duly and validly adopted by the board of directors of Parent authorizing the execution, delivery
and performance of this Agreement, the Ancillary Agreements (as applicable) and the consummation of the transactions contemplated
hereby and thereby; and (ii) certifying that each of the conditions set forth in Section 7.03(a) and Section 7.03(b)
have been satisfied; and

 

(5)
such other certificates or other documents reasonably requested and necessary to effectuate the transactions contemplated hereby.

 

    	 	17	 

     

    

 

Section
2.13 Dissenting Shares. Notwithstanding any provision of this Agreement to the contrary, including Section 2.03,
shares of Company Capital Stock issued and outstanding immediately prior to the Effective Time and held by a holder who has not
voted in favor of adoption of this Agreement or properly consented thereto in writing in accordance with Section 262 of the DGCL
and who has properly exercised appraisal rights of such shares of Company Capital Stock in accordance with Section 262 of the
DGCL (such shares of Company Capital Stock being referred to collectively as the “Dissenting Shares” until
such time as such holder fails to perfect or otherwise loses such holder’s appraisal rights under the DGCL with respect
to such shares of Company Capital Stock) shall not be converted into a right to receive a portion of the Merger Consideration,
but instead shall be entitled to only such rights as are granted by Section 262 of the DGCL; provided, however,
that if, after the Effective Time, such holder fails to perfect, withdraws or loses such holder’s right to appraisal pursuant
to Section 262 of the DGCL or if a court of competent jurisdiction shall determine that such holder is not entitled to the relief
provided by Section 262 of the DGCL, such shares of Company Capital Stock shall be treated as if they had been converted as of
the Effective Time into the right to receive the portion of the Merger Consideration, if any, to which such holder is entitled
pursuant to Section 2.05(a), without interest thereon. The Company shall provide Parent prompt written notice of any demands
received by the Company for appraisal of shares of Company Capital Stock, any withdrawal of any such demand and any other demand,
notice or instrument delivered to the Company prior to the Effective Time pursuant to the DGCL that relates to such demand, and
Parent shall have the opportunity and right to direct all negotiations and proceedings with respect to such demands. Except with
the prior written consent of Parent, the Company shall not make any payment with respect to, or settle or offer to settle, any
such demands.

 

Article
III

REPRESENTATIONS
AND WARRANTIES OF

THE
COMPANY

 

Except
as expressly set forth in the Disclosure Schedule, the Company represents and warrants to Parent that the statements contained
in this Article III are true and correct.

 

Section
3.01 Organization and Authority; Execution; Enforceability.

 

(a)
Each of the Companies and the Washington Entities is duly organized, validly existing and in good standing under the laws of its
state of organization or formation and has full corporate power and authority to own, operate or lease the properties and assets
now owned, operated or leased by it and to carry on its business as now being conducted. Each of the Companies and the Washington
Entities is duly licensed or qualified to do business and is in good standing (or in existence, as applicable) in each jurisdiction
in which the properties owned or leased by it with respect to its business makes such licensing or qualification necessary.

 

(b)
The Company has the requisite power, authority and capacity to execute and deliver this Agreement and the Ancillary Agreements
to which it is a party, to perform its respective obligations hereunder and thereunder, and to consummate the transactions contemplated
hereby and thereby. This Agreement has been duly executed and delivered by the Company, and (assuming due authorization, execution,
and delivery by each other party hereto) constitutes a legal, valid, and binding obligation of the Company, enforceable against
the Company in accordance with its terms except to the extent enforcement may be affected by Laws relating to bankruptcy, insolvency,
creditors’ rights and by the availability of injunctive relief, specific performance and other equitable remedies. The Ancillary
Agreements to which the Company is a party, when executed and delivered by the Company in accordance with the terms hereof, shall
each (assuming due authorization, execution, and delivery by each other party hereto and thereto) constitute a valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms except to the extent enforcement may be
affected by Laws relating to bankruptcy, insolvency, creditors’ rights and by the availability of injunctive relief, specific
performance and other equitable remedies.

 

    	 	18	 

     

    

 

(c)
The board of directors of the Company, by resolutions duly adopted by unanimous consent of all directors of the Company, not subsequently
rescinded or modified in any way, has (i) determined that this Agreement and the transactions contemplated hereby, including the
Merger, are fair to, and in the best interests of, the Company Stockholders, (ii) approved and declared advisable the “agreement
of merger” (as such term is used in Section 251 of the DGCL) contained in this Agreement and the transactions contemplated
by this Agreement, including the Merger, in accordance with the DGCL, (iii) directed that the “agreement of merger”
contained in this Agreement be submitted to the Company Stockholders for adoption, and (iv) resolved to recommend that the Company
Stockholders adopt the “agreement of merger” set forth in this Agreement (collectively, the “Company Board
Recommendation”) and directed that such matter be submitted for consideration of the Company Stockholders by written
consent.

 

Section
3.02 Subsidiaries. Section 3.02 of the Disclosure Schedule sets forth a complete and accurate list of all subsidiaries
of the Company (each a “Subsidiary” and collectively, the “Subsidiaries”). Except as set
forth in Section 3.02 of the Disclosure Schedule, there are no corporations, limited liability companies, partnerships,
joint ventures, associations or other entities in which the Company owns, of record or beneficially, any direct or indirect equity
or other interest or any right (contingent or otherwise) to acquire the same, and none of the Companies has any obligation to
make any investment (in the form of a loan, capital contribution or otherwise) in any Person.

 

Section
3.03 Capitalization.

 

(a)
The authorized capital stock of the Company consists of: (i) 3,004,745 shares of Company Common Stock, par value $.001 per share,
of which 1,059,028 shares are issued and outstanding, and (ii) 1,014,745 shares of Company Series A Preferred Stock, par value
$.001 per share, of which 709,957 are issued and outstanding. All shares of the Company Capital Stock have been duly authorized
and are validly issued in an un-certificated form, fully paid and non-assessable. Each Company Stockholder owns, of record and
beneficially, the un-certificated shares of Company Capital Stock set forth next to such Company Stockholder’s name in Section
3.03(a) of the Disclosure Schedule, free and clear of all Liens.

 

(b)
The authorized, issued and outstanding capital of each of the California Entities and the Iowa Entity is set forth in Section
3.03(b) of the Disclosure Schedule. All capital interests of the California Entities and the Iowa Entity has been duly authorized
and are validly issued, fully paid and non-assessable. Each holder of an equity interest in each of the California Entities and
the Iowa Entity owns, of record and beneficially, the membership interest of such entity set forth next to such Person’s
name in Section 3.03(b) of the Disclosure Schedule, free and clear of all Liens.

 

(c)
The authorized, issued and outstanding capital of each of the Washington Entities is set forth in Section 3.03(c) of the Disclosure
Schedule. All capital interests of the Washington Entities have been duly authorized and are validly issued, fully paid and
non-assessable. Each Washington Entity Owner owns, of record and beneficially, the Washington Entity Stock set forth next to such
Company Stockholder’s name in Section 3.03(c) of the Disclosure Schedule, free and clear of all Liens.

 

    	 	19	 

     

    

 

(d)
The Company Capital Stock and the equity interests in each of the California Entities and the Iowa Entity (the “Subsidiaries
Interests”) were issued in compliance with all applicable Laws. The Company Capital Stock and the Subsidiaries Interests
were not issued in violation of the Organizational Documents of any of the Companies, or any other agreement, arrangement or commitment
to which the Company Stockholders, the Company or any owner or holder of a Subsidiaries Interest is a party and are not subject
to or in violation of any preemptive or similar rights of any Person.

 

(e)
The Washington Entity Capital was issued in compliance with all applicable Laws. The Washington Entity Capital was not issued
in violation of the Organizational Documents of the Washington Entities, or any other agreement, arrangement or commitment to
which the Washington Entity Owners is a party and are not subject to or in violation of any preemptive or similar rights of any
Person.

 

(f)
Except as set forth in Section 3.03(f) of the Disclosure Schedule, there are no outstanding or authorized options, warrants,
convertible securities or other rights, agreements, arrangements or commitments of any character relating to any ownership interests
in any of the Companies or the Washington Entities, or obligating the Company Stockholders, the owners and holders of the membership
interests in the California Entities and the Iowa Entity, any of the Companies, any of the Washington Entity Owners or any Washington
Entities to issue or sell any ownership interests (including the Company Capital Stock, any equity interest in the California
Entities or the Iowa Entity or Washington Entity Capital), or any other interest, in any of the Companies or Washington Entities,
respectively, and there are no outstanding securities convertible or exercisable into or exchangeable for ownership interests
of any of the Companies, any of the Washington Entities or any other equity security of any of the Companies or Washington Entities.
Other than the Organizational Documents of the Companies and Washington Entities, there are no voting trusts, proxies or other
agreements or understandings in effect with respect to the voting or transfer of any of the Company Capital Stock, the Subsidiaries
Interests, the membership interests in the California Entities and the Iowa Entity or the Washington Entity Capital. No spousal
consent is required under applicable Laws to vest Parent with good and valid title to all of the Company Capital Stock, the membership
interests in the California Entities and the Iowa Entity or the Washington Entity Capital.

 

Section
3.04 No Conflict; Consents. Except as set forth in Section 3.04 of the Disclosure Schedule, as identified in Section
5.06(f), or as contemplated under the Call Option Amendments, the execution, delivery and performance by the Company of this
Agreement and the Ancillary Agreements to which it is a party and the consummation of the transactions contemplated hereby and
thereby do not and will not (a) violate, conflict with or result in the breach of any provision of the Organizational Documents
of any of the Companies or any Company Stockholder or holder a membership interest in any of the California Entities (if an entity),
(b) conflict with or violate any Law or Governmental Order applicable to any of the Companies, any Company Stockholder, any of
the Washington Entities or any of their respective assets, properties or businesses, (c) require the consent, notice or other
action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, without
or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party
the right to accelerate, terminate, modify or cancel any Material Contract to which any of the Companies, any Company Stockholder
or any of the Washington Entities is a party or by which any of their respective properties and assets are bound or any material
Permit affecting the properties, assets or business of any of the Companies, any Company Stockholder or any of the Washington
Entities; or (d) result in the creation or imposition of any Lien on any properties or assets of any of the Companies, any Company
Stockholder or any of the Washington Entities. Except as set forth in Section 3.04 of the Disclosure Schedule, as identified
in Section 5.06(f), or as contemplated under the Call Option Amendments, neither any of the Companies nor any of the Washington
Entities needs to notify, make any filing with, or obtain any consent of, any Person in order to perform its obligations under
this Agreement or any of the Ancillary Agreements, other than notices, filings or consents the failure of which to obtain would
not prohibit or materially delay the Closing or materially interfere with the ownership and operation by Parent of the business
of the Companies or the Washington Entities following the Closing or otherwise have a Company Material Adverse Effect.

 

    	 	20	 

     

    

 

Section
3.05 Financial Statements. Complete copies of the audited combined financial statements consisting of the balance sheet
of the Companies and the combined financial statements of the Washington Entities as at December 31 in each of the years 2017
and 2018 and the related statements of income and retained earnings, stockholders’ equity and cash flow for the years then
ended (the “Audited Financial Statements”), and unaudited combined financial statements consisting of the balance
sheet of the Companies and the combined financial statements consisting of the balance sheet of the Washington Entities as at
December 31, 2019 and the related statements of income and retained earnings, stockholders’ equity and cash flow for the
twelve-month period then ended (the “Interim Financial Statements”) and together with the Audited Financial
Statements, the “Financial Statements”) have been delivered to Parent. The Audited Financial Statements have
been prepared in accordance with IFRS applied on a consistent basis throughout the period involved. The Interim Financial Statements
have been prepared in accordance with GAAP, subject to adjustments in accordance with IFRS. The Financial Statements and the Closing
Balance Sheet are based on the books and records of the Companies and the Washington Entities. The Financial Statements fairly
present the financial condition of the Companies and the Washington Entities as of the respective dates they were prepared and
the results of their respective operations for the periods indicated. The consolidated balance sheet of the Companies as of December
31, 2018 is referred to herein as the “Balance Sheet” and the date thereof as the “Balance Sheet Date”
and the consolidated balance sheet of the Companies as of December 31, 2019 is referred to herein as the “Interim Balance
Sheet” and the date thereof as the “Interim Balance Sheet Date”. The Companies and the Washington
Entities (a) keep books, records and accounts that accurately, fairly and in reasonable detail reflect their material assets and
transactions, and (b) maintain a system of internal accounting controls sufficient to provide reasonable assurance that all or
their material transactions are recorded accurately and promptly to permit the preparation of the Financial Statements.

 

Section
3.06 No Undisclosed Liabilities. None of the Companies nor the Washington Entities has any Liabilities, except for Liabilities
(a) which are reflected or reserved for on the Financial Statements or disclosed in the notes thereto, (b) that have arisen since
the date of the Closing Balance Sheet in the ordinary course of the operation of business of the Companies and the Washington
Entities, (c) which are reflected in the Closing Balance Sheet, or (d) that are contractual or have been incurred in the ordinary
course of business and are not required by IFRS to be reflected on a balance sheet and that are not in the aggregate material.

 

Section
3.07 Bank Accounts. Set forth in Section 3.07 of the Disclosure Schedule is a complete and correct list of all banks
or other financial institutions with which the Companies and the Washington Entities have any accounts, showing the type and account
number of each such account, and the names of the persons authorized as signatories thereon or to act or deal in connection therewith.

 

    	 	21	 

     

    

 

Section
3.08 Absence of Certain Facts or Events. Except as set forth in the Closing Balance Sheet and Section 3.08 of the Disclosure
Schedule, as of the date of the Closing Balance Sheet, the Companies and the Washington Entities have conducted the Business
in the ordinary course of business consistent with past practice and there has not been with respect to any of the Companies,
the Washington Entities or the Business:

 

(a)
event, occurrence or development that has had, or could reasonably be expected to have, a Company Material Adverse Effect;

 

(b)
amendment of any of the Organizational Documents of any of the Companies or any of the Washington Entities;

 

(c)
split, combination or reclassification of any equity interests in any of the Companies or any of the Washington Entities;

 

(d)
entry into any Contract that would constitute a Material Contract (as defined in Section 3.14(a) below);

 

(e)
incurrence, assumption or guarantee of any Indebtedness except unsecured current obligations and Liabilities incurred in the ordinary
course of business consistent with past practice;

 

(f)
transfer, assignment, sale or other disposition of any material asset;

 

(g)
cancellation of any material debts or claims or amendment, termination or waiver of any material rights;

 

(h)
damage, destruction or loss, or any material interruption in use, of any material asset, whether or not covered by insurance;

 

(i)
acceleration, termination, material modification to or cancellation of any Material Contract or material Permit or any Regulatory
License;

 

(j)
any capital expenditure which individually is valued in excess of $[***];

 

(k)
imposition of any Lien upon any of the Companies or any of the Washington Entities properties or assets, tangible or intangible;

 

(l)
issuance, sale or other disposition of, or creation of any Lien upon any of the Company Capital Stock, Subsidiaries Interest,
Washington Entity Capital or grant of any options, warrants or other rights to purchase or obtain (including upon conversion,
exchange or exercise) any equity interests in any of the Companies or any of the Washington Entities;

 

(m)
declaration or payment of any distributions on or in respect of equity interests in any of the Companies or Washington Entities
or redemption, purchase or acquisition of any outstanding equity interests in any of the Companies or any of the Washington Entities;

 

(n)
material change in any method of accounting or accounting practice of any of the Companies or any of the Washington Entities,
except as required by GAAP or as disclosed in the notes to the Financial Statements;

 

    	 	22	 

     

    

 

(o)
(i) amendment to or entering into of any employment or independent contractor agreements or any severance or termination agreements
with, any increase in the compensation payable or to become payable by any of the Companies or any of the Washington Entities
to, any employee, independent contractor, manager, director or officer whose annual remuneration (including base salary and targeted
commissions and bonuses) exceeds $[***], or (ii) any establishment or termination of, or increase in or amendment or modification
to the coverage or benefits under any bonus, insurance, pension, retention, transaction bonus, change in control or other Benefit
Plan that, in any case, is not in the ordinary course of business, consistent with past practice;

 

(p)
adoption, modification or termination of any collective bargaining or other agreement with a union, works council or labor organization,
whether written or oral;

 

(q)
any loan to (or forgiveness of any loan to), or entry into any other Contract with, any Affiliate or any member or current or
former manager, director, officer, employee or consultant of any of the Companies or any Washington Entity;

 

(r)
adoption of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy
under any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any
similar Law;

 

(s)
(i) modification, amendment, termination or assignment of any lease or sublease or entry into any new leases or subleases for
real property, (ii) waiver, release, relinquishment or assignment any of rights under any lease or sublease for real property
or (iii) taking of any action that could adversely affect the term, validity or enforceability of any lease or sublease for real
property;

 

(t)
initiation, compromise or settlement of any Action against any of the Companies or any Washington Entity;

 

(u)
amendment, modification, termination, cancellation or lapse of any insurance policies maintained by any of the Companies or any
Washington Entity;

 

(v)
entry into any joint venture, partnership or other similar arrangement; or

 

(w)
agreement to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

Section
3.09 Litigation. Except as set forth in Section 3.09 of the Disclosure Schedule, for the two-year period prior to
the date of this Agreement, there have been no Actions by or against any of the Companies or any Washington Entity or affecting
any of the assets of any of the Companies or any Washington Entity or the Business, and there are no Actions pending or, to the
Company’s Knowledge, threatened, (a) by or against any of the Companies or any Washington Entity affecting any of their
properties or assets (or by or against any Company Stockholder, a holder of any Subsidiaries Interest or holder of an interest
in any Washington Entity Capital or any Affiliate thereof and relating to any of the Companies or any of the Washington Entities);
or (b) by or against any of the Companies or any of the Washington Entities, any Company Stockholder, a holder of any Subsidiaries
Interest or holder of an interest in any Washington Entity Capital or any Affiliate thereof that challenges or seeks to prevent,
enjoin or otherwise delay the transactions contemplated by this Agreement, any Ancillary Agreement, or the consummation of the
transactions contemplated hereby or thereby. Except as set forth in Section 3.09 of the Disclosure Schedule, to the Company’s
Knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action. Except
as set forth in Section 3.09 of the Disclosure Schedule since the organization of each of the Companies and each of the
Washington Entities, none of the Companies, nor any Washington Entity has been subject to any Governmental Order, and there is
no Governmental Order pending or, to the Company’s Knowledge, threatened against any of the Companies or any Washington
Entity.

 

    	 	23	 

     

    

 

Section
3.10 Compliance with Laws; Permits and Regulatory Licenses.

 

(a)
Except for the United States’ Federal Controlled Substances Act (Title II of the Comprehensive Drug Abuse Prevention and
Control Act of 1970) (the “CSA”), and U.S. federal ordinances, regulations, rules, codes, order, and guidance
related to the CSA, which currently classifies cannabis as a Schedule-I controlled substance and makes cannabis use and possession
illegal on a national level in the United States, the Companies and each Subsidiary and Washington Entity has conducted their
respective business in all material respects in accordance with all Laws and Governmental Orders applicable to it, its properties
and assets, and is not in material violation of any such Law or Governmental Order. No claim has been made by any Governmental
Authority to the effect that any of the Companies or any Washington Entities, or any asset owned or used by any of the Companies
or Washington Entities, fails to comply, in any respect, with any Law or Governmental Order.

 

(b)
Section 3.10(b) of the Disclosure Schedule contains a list of all Permits and Regulatory Licenses held by each of the Companies
and Washington Entities. Each of the Companies and Washington Entities is in compliance in all material respects with all of its
respective Permits and Regulatory Licenses, and each such Permit and Regulatory License is valid and in full force and effect.
No Action is pending or, to the Company’s Knowledge, threatened, to revoke or limit any such Permits or Regulatory License.
All fees and charges with respect to such Permits and Regulatory Licenses as of the date hereof have been paid in full. To the
Company’s Knowledge, no event has occurred that, with or without notice or lapse of time or both, would reasonably be expected
to result in the revocation, suspension, lapse or limitation of any Permit or Regulatory License set forth in Section 3.10(b)
of the Disclosure Schedule.

 

(c)
Ownership of Medical Marijuana Treatment Center. The Company has confirmed that no Company Stockholder directly or indirectly
owns, controls, or holds with power to vote 5% percent or more of the voting shares of any entity that owns or operates a Medical
Marijuana Treatment Center in the State of Florida. The Parent is relying upon the truth and accuracy of, and the Company Stockholder’s
compliance with, the representations and warranties of the Company set forth herein in order to issue the Merger Shares.

 

Section
3.11 Environmental Matters.

 

(a)
Each of the Companies and each of the Washington Entities is currently and has at all times been in compliance in all material
respects with all Environmental Laws and has not received from any Person any Environmental Notice or Environmental Claim or written
request for information pursuant to Environmental Law, which, in each case, either remains pending or unresolved or is the source
of ongoing obligations or requirements.

 

(b)
Each of the Companies and each of the Washington Entities possess and is in compliance in all material respects with all Environmental
Permits necessary for the operation of its portion of the conduct of the Business and the ownership, lease, operation or use of
any Real Property and the assets of the Companies and the Washington Entities. All Environmental Permits obtained by the Companies
and Washington Entities are in full force and effect in accordance with Environmental Laws. To the Company’s Knowledge,
there is no condition, event, or circumstance that might prevent or impede, after the Closing Date, the ownership, lease, operation,
or use of the business or assets of the Companies or the Washington Entities as currently carried out. With respect to any such
Environmental Permits, to the Company’s Knowledge, the Companies and the Washington Entities have undertaken all measures
necessary to facilitate transferability of the same and none of the Companies nor the Washington Entities is aware of any condition,
event, or circumstance that might prevent or impede the transferability of the same nor have either received any Environmental
Notice or written communication regarding any material adverse change in the status or terms and conditions of the same.

 

    	 	24	 

     

    

 

(c)
To the Company’s Knowledge, there has been no Release of Hazardous Materials in contravention of Environmental Law with
respect to the business or assets of the Companies or the Washington Entities or any real property currently or formerly owned,
operated, or leased by any of the Companies or any of the Washington Entities. None of the Companies nor any Washington Entity
has received an Environmental Notice that any real property currently or formerly owned, operated or leased in connection with
the business of any of the Companies or any of the Washington Entities (including soils, groundwater, surface water, buildings
and other structure located on any such real property) has been contaminated with any Hazardous Material that could reasonably
be expected to result in an Environmental Claim against or a violation of Environmental Law or term of any Environmental Permit
by any of the Companies or any Washington Entity.

 

(d)
To the Company’s Knowledge, there are no active or abandoned aboveground or underground storage tanks owned or operated
by any of the Companies or any Washington Entity.

 

(e)
To the Company’s Knowledge, there are no Hazardous Materials treatment, storage, or disposal facilities or locations used
by the any of the Companies or any of the Washington Entities or any predecessors as to which any of the Companies or any of the
Washington Entities may retain liability. None of such facilities or locations has been placed or proposed for placement on the
National Priorities List under CERCLA or any similar state list. None of the Companies nor any of the Washington Entities has
received any Environmental Notice regarding potential liabilities with respect to such off-site Hazardous Materials treatment,
storage or disposal facilities or locations used by any of the Companies or any of the Washington Entities.

 

(f)
None of the Companies nor any of the Washington Entities has retained or assumed, by contract or operation of Law, any liabilities
or obligations of third parties under Environmental Law.

 

(g)
The Company has provided or otherwise made available to Parent and listed in Section 3.11(g) of the Disclosure Schedule:
(i) any and all environmental reports, studies, audits, records, sampling data, site assessments, risk assessments, economic models
and other similar documents with respect to the business or assets of the Companies or the Washington Entities or any currently
or formerly owned, operated or leased real property that are in the possession or control of the Companies or any of the Washington
Entities related to compliance with Environmental Laws, Environmental Claims, an Environmental Notice or the Release of Hazardous
Materials; and (ii) any and all material documents concerning planned or anticipated capital expenditures required to reduce,
offset, limit or otherwise control pollution or emissions, manage waste or otherwise ensure compliance with current or future
Environmental Laws (including, without limitation, costs of remediation, pollution control equipment and operational changes).

 

    	 	25	 

     

    

 

(h)
None of the Companies or Washington Entities is aware of or reasonably anticipate any condition, event, or circumstance concerning
the Release or regulation of Hazardous Materials that might, after the Closing Date, prevent, impede or materially increase the
costs associated with the ownership, lease, operation, performance or use of the business or assets of the Companies or the Washington
Entities as currently carried out.

 

(i)
There are no Environmental Claims pending or, to the Company’s Knowledge, threatened against any of the Companies or Washington
Entities or any Real Property owned or leased by any of the Companies or Washington Entities, and to the Company’s Knowledge,
there are no circumstances that could reasonably be expected to form the basis of any such Environmental Claim.

 

(j)
Neither the execution of this Agreement or the Ancillary Agreements by any of the Companies and the Company Stockholders, nor
the consummation of the transactions contemplated hereby or thereby, will require any notice to or consent of any Governmental
Authority or third party pursuant to any applicable Environmental Law or Environmental Permit.

 

Section
3.12 Material Contracts. Section 3.12 of the Disclosure Schedule contains an accurate and complete list of the following
outstanding Contracts (including all amendments and supplements thereto) to which each of the Companies or each of the Washington
Entities, is a party or by which any of the Companies or any of the Washington Entities or any of their respective properties
or assets is bound (collectively, the “Material Contracts”):

 

(a)
each Contract involving aggregate consideration in excess of $[***] (or $[***] in the aggregate) or requiring performance by any
party more than one year from the date hereof, which, in each case, cannot be cancelled by any of the Companies or any of the
Washington Entities without penalty or without more than 90 days’ notice;

 

(b)
each Contract involving aggregate consideration in excess of $[***] (or $[***] in the aggregate) with employees, third party consultants,
independent contractors or other service providers of any of the Companies or any of the Washington Entities, which cannot be
cancelled by any of the respective Companies or Washington Entities without penalty or without more than 30 days’ notice;

 

(c)
each Contract involving a sharing of profits, losses, costs or Liabilities by any of the Companies or any of the Washington Entities
with any other Person, including any joint venture, partnership, alliance or similar agreement;

 

(d)
each Contract containing covenants that restrict or purport to restrict any of the Companies or any of the Washington Entities’
business activity or limit the freedom of any of the Companies or any of the Washington Entities to engage in any line of business,
to compete with any Person, to compete in any geographical area or to solicit any Person for business, employment or other purposes;

 

(e)
each Contract or instrument that creates, gives rise to or otherwise contemplates any Lien over or in respect of any property
or asset of any of the Companies or any of the Washington Entities;

 

(f)
each Contract providing for the lease of any Leased Real Property by any of the Companies or any of the Washington Entities (whether
as lessor or lessee);

 

    	 	26	 

     

    

 

(g)
each Contract providing for the lease of Personal Property by any of the Companies or any of the Washington Entities for payments
or other consideration of more than $[***] in any 12-month period;

 

(h)
each Contract that relates to Indebtedness of any of the Companies or any of the Washington Entities in excess of $[***];

 

(i)
each Contract or letter of intent relating to the acquisition or disposition by any of the Companies or any of the Washington
Entities (whether by merger, consolidation or other business combination, sale of securities, sale of assets or otherwise), outside
of the ordinary course of business, of assets or securities;

 

(j)
each Contract involving monies or anything of value (including any compensation or benefits) that would become payable, owed,
accelerated or vested upon the execution of this Agreement or the consummation of the transactions contemplated by this Agreement
or any other change of control of any of the Companies or any of the Washington Entities;

 

(k)
each Contract involving capital expenditures in excess of $[***];

 

(l)
each warranty, guaranty or similar undertaking with respect to performance of a Contract extended by any of the Companies or any
of the Washington Entities, other than in the ordinary course of business;

 

(m)
each Contract involving loans by any of the Companies or any of the Washington Entities to any Person;

 

(n)
each Contract between any of the Companies and any of the Washington Entities, on the one hand, and a Governmental Authority,
on the other hand;

 

(o)
each agency, dealer, distributor, sales representative, marketing or other similar Contract of any of the Companies or any of
the Washington Entities;

 

(p)
each Contract for management services or financial advisory services (other than any Contract with any of the Companies’
or any of the Washington Entities’ accounting advisors);

 

(q)
each settlement, resolution or similar Contract involving payments by any of the Companies after the Closing or any injunctive
or similar equitable obligations on any of the Companies or any of the Washington Entities;

 

(r)
each Contract between any of the Companies or any of the Washington Entities, on the one hand, and any Company Stockholder, any
holder of a Subsidiaries Interest or Washington Entity Capital or any of their Affiliates, on the other hand;

 

(s)
each Washington Entities Agreements; and

 

(t)
each agreement to enter into any Contract of the type described in subsections (a) through (r) of this Section
3.12.

 

    	 	27	 

     

    

 

Each
Material Contract is in full force and effect and is valid and binding on and enforceable in accordance with its terms against
each of the applicable Companies, or applicable Washington Entities, and, to the Company’s Knowledge, against the other
party or parties thereto. None of the Companies nor any Washington Entity, is in material default under or in material breach
of, or in receipt of any written claim of default or breach or any notice of any intention to terminate, any Material Contract.
There are no material disputes pending or, to the Company’s Knowledge, threatened under any Material Contract. No event
or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of material default under any
Material Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any material
right or material obligation or the loss of any benefit thereunder. Complete and correct copies of each Material Contract (including
all modifications, amendments and supplements thereto and waivers thereunder) have been made available to Parent.

 

Section
3.13 Intellectual Property.

 

(a)
Section 3.13(a) of the Disclosure Schedule sets forth a true and complete list of: (i) all applications and registrations
with any Governmental Authority for any Company Intellectual Property, including without limitation, any registrations and applications
for patents, trademarks, corporate names, copyrights, and domain names (collectively, the “Registered Company Intellectual
Property”); (ii) all material common law trademarks and material unregistered copyrights and works of authorship used
in connection with the Business; (iii) all material software used in connection with the Business, other than commercially available
off-the-shelf computer software licensed pursuant to shrink-wrap or click wrap or similar licenses; and (iv) all Company IP Agreements,
other than commercially available off-the-shelf computer software licensed pursuant to shrink-wrap or click wrap or similar licenses.
For each item of Registered Company Intellectual Property, Section 3.13(a) of the Disclosure Schedule identifies, if applicable:
the owner of record, jurisdiction of application and/or registration, and the date of application and/or registration. The Registered
Company Intellectual Property is valid, subsisting, and enforceable, and, to Company’s Knowledge, no claim has been threatened
against the Companies alleging that the Registered Company Intellectual Property is invalid or unenforceable in whole or in part.
The Companies take commercially reasonable steps to mark or label all Company Intellectual Property and related materials to protect
the status thereof. Except as disclosed in Section 3.13(a) of the Disclosure Schedule, there are no office actions, refusals,
objections, oppositions, cancellations, invalidity proceedings, interferences or re-examinations, or any other proceedings challenging
the extent, scope, validity or registrability, or ownership of any Company Intellectual Property currently pending or threatened
against the Companies or the Washington Entities.

 

(b)
The Companies and the Washington Entities, as applicable, are the exclusive owner of the entire right, title and interest in and
to the Company Intellectual Property free and clear of all Liens, adverse claims or other restrictions. The Companies and the
Washington Entities are in compliance in all material respects with all applicable material terms and requirements of each Company
IP Agreement, and each Company IP Agreement is in full force and effect and is valid and enforceable in accordance with its terms.

 

(c)
The products, processes, services, and business of the Companies and the Washington Entities, as currently conducted, including
the use of all Company Intellectual Property, have not and do not infringe, dilute, or misappropriate, or otherwise violate any
Intellectual Property rights of any other Person. Neither the Companies nor any Company Stockholder has received any notice of
any such infringement, dilution, misappropriation or violation, and the Company Stockholders are not aware of the basis for any
of the foregoing, and no Action is pending related to the Company Intellectual Property, or the use thereof by the Companies or
any customer or third party. To the Company’s Knowledge, no Person is engaging in any activity that infringes, misappropriates,
dilutes, or otherwise violates or conflicts with the Company Intellectual Property.

 

    	 	28	 

     

    

 

(d)
No Company Intellectual Property is subject to any outstanding consent, settlement, decree, order, injunction, judgment or ruling
restricting the use of such Company Intellectual Property or that would impair the validity or enforceability of such Company
Intellectual Property.

 

(e)
The Companies and the Washington Entities have taken commercially reasonable and appropriate steps to protect and maintain all
Company Intellectual Property, including without limitation to preserve the confidentiality of any trade secrets. Each current
and former employee, agent, consultant, contractor and officer of the Companies has executed a confidentiality and invention assignment
agreement or an employment or consulting agreement maintaining confidentiality in any material trade secrets or proprietary information
of the Companies and assigning any rights in Intellectual Property to the Companies.

 

(f)
The information technology systems used by the Companies and the Washington Entities, including all computer hardware, software,
firmware, process automation and telecommunications systems (“IT Systems”), have performed in material conformance
with the applicable specifications or documentation for such systems during the 12 months prior to Closing. To the Company’s
Knowledge, there have been no data security breaches that have affected the Companies or the Washington Entities. The Companies
and the Washington Entities maintain commercially reasonable security, disaster recovery and business continuity plans, and procedures
and have taken commercially reasonable measures to protect the security and integrity of the IT Systems and the data stored or
contained therein or transmitted thereby.

 

(g)
No source code for any IT Systems has been delivered, licensed, or otherwise made available to any escrow agent or other Person
who is not an employee or consultant of the Companies, and the Companies do not have any duty or obligation (whether present or
contingent) to deliver, license or make available such source code for any Company software to any escrow agent or other Person.

 

(h)
The IT Systems has been scanned for and is free, to the Company’s Knowledge, of all viruses, worms, Trojan horses, and other
material known contaminants, and to the Company’s Knowledge does not contain any bugs, errors, or problems that would have
a materially adverse impact on the operation of other software programs or operating systems for which it was designed to operate.

 

(i)
The Companies’ and the Washington Entities’ collection, storage, maintenance, and use of any personally identifiable
information complies with all applicable privacy and data security laws in all material respects, as well as its own internal
policies on data privacy and/or security. The Companies and the Washington Entities have taken commercially reasonable steps to
protect against any anticipated or actual threats or hazards to the security or integrity of any personally identifiable information,
and from the loss of any personally identifiable information. To the Company’s Knowledge, there has been no unauthorized
access to or use of, or any security breach relating to or affecting, any personally identifiable information.

 

    	 	29	 

     

    

 

Section
3.14 Real Property.

 

(a)
Section 3.14(a)(i) of the Disclosure Schedule lists (i) the street address of each parcel of Real Property; (ii) if such
property is leased or subleased by any of the Companies or any of the Washington Entities, the landlord under the lease, the rental
amount currently being paid, and the expiration of the term of such lease or sublease for each leased or subleased property; and
(iii) the current use of such property. To the Company’s Knowledge, the use and operation of the Real Property in the conduct
of the business of the Companies and the Washington Entities do not violate in any material respect any Law, covenant, condition,
restriction, easement, license, permit or agreement. Except as set forth in Section 3.14(a)(ii) of the Disclosure Schedule,
to the Company’s Knowledge, no material improvements constituting a part of the Real Property encroach on real property
owned or leased by a Person other than the Companies or Washington Entities. Except as set forth in Section 3.14(a)(iii) of
the Disclosure Schedule, to the Company’s Knowledge, there are no buildings, structures, fixtures or other improvements
primarily situated on adjoining property that encroach on any part of the Real Property. There are no Actions pending nor, to
the Company’s Knowledge, threatened against or affecting the Real Property or any portion thereof or interest therein in
the nature or in lieu of condemnation or eminent domain proceedings. The Real Property set forth in Section 3.14(a)(i) of the
Disclosure Schedule comprises all of the material real property used in the businesses of the Companies and the Washington
Entities, as presently conducted.

 

(b)
With respect to Leased Real Property, the Company has delivered or made available to Parent true, complete and correct copies
of any Leases, including all material amendments, extensions, renewals and guaranties with respect thereto. Except as set forth
in Section 3.14(b) of the Disclosure Schedule with respect to each of the leases relating to Leased Real Property (collectively,
the “Leases”): (i) the Lease is legal, valid, binding and enforceable against the Company or applicable Subsidiary
or Washington Entity party thereto and, to the Company’s Knowledge, each other party thereto; (ii) to the Company’s
Knowledge, none of the Companies nor any of the Washington Entities nor any other party to the Leases is in material breach or
material default under the Lease, and no event has occurred or circumstance exists which, with the delivery of notice, passage
of time or both, would constitute such a material breach or material default or permit the termination, modification or acceleration
of rent under the Lease; and (iii) except as set forth in Section 3.14(b) of the Disclosure Schedule, none of the Companies
nor any of the Washington Entities is a sublessor or grantor under any sublease or other instrument granting to any other Person
any right to the possession, lease, occupancy or enjoyment of any Leased Real Property.

 

Section
3.15 Assets. The Companies and the Washington Entities have good and valid title to, or a valid leasehold interest in,
all of the assets and properties used in the conduct of the Business or shown to be owned by the Companies and the Washington
Entities on the Financial Statements and the Closing Balance Sheet, free and clear of all Liens, except Permitted Liens. All properties,
machinery, equipment and other tangible assets owned or used by any of the Companies or Washington Entities are being sold “as-is,
where-is” and, except as set forth herein, without warranty of any kind, whether express or implied, including, without
limitation, any warranty of condition or fitness for a particular purpose.

 

Section
3.16 Condition of Personal Property. All items of Personal Property with an individual value greater than $[***] are set
forth in Section 3.16 of the Disclosure Schedule. Except as set forth in Section 3.16 of the Disclosure Schedule,
all items of Personal Property are being sold “as-is, where-is” and, except as set forth herein, without warranty
of any kind, whether express or implied, including, without limitation, any warranty of condition or fitness for a particular
purpose.

 

    	 	30	 

     

    

 

Section
3.17 Employee Benefit Matters.

 

(a)
Section 3.17(a) of the Disclosure Schedule sets forth a true and complete list of each (i) “employee benefit plan”
(as defined in Section 3(3) of ERISA,) and (ii) other profit-sharing, deferred compensation, bonus or incentive, stock option,
stock purchase, equity or equity-based, severance, retention, change-of-control, paid time off, holiday pay, pension, retirement,
medical, welfare, fringe and other compensation or benefit plan, policy, program, contract, arrangement or agreement (whether
written or unwritten, and whether or not subject to ERISA), that is currently sponsored, maintained, contributed to, or required
to be contributed to, by the Companies or the Washington Entities for the benefit of any current or former employee, manager/director,
officer or independent contractor of the Companies or the Washington Entities, or with respect to which the Companies or Washington
Entities have or could have any current Liability, whether direct or indirect, actual or contingent, whether formal or informal,
and whether written or oral, legally binding or not (each, a “Benefit Plan” and collectively, “Benefit
Plans”). With respect to this Section 3.17, the term “Companies” and “Washington Entities”
includes any ERISA Affiliate of any of the Companies or any of the Washington Entities.

 

(b)
To the Company’s Knowledge, with respect to each Benefit Plan, there are no funded benefit obligations for which contributions
have not been made, and all monies withheld for employee paychecks with respect to Benefit Plans have been transferred to the
appropriate Benefit Plan.

 

(c)
To the Company’s Knowledge, each Benefit Plan has been maintained, operated and administered at all times in compliance
in all material respects with its terms and applicable Laws, including ERISA and the Code in all material respects. To the Company’s
Knowledge, no event has occurred, nor do any circumstances exists, that could reasonably be expected to give rise to any material
liability or civil penalty under any Laws with respect to any Benefit Plan. To the Company’s Knowledge, all contributions
and other payments required to be made to each Benefit Plan under the terms of that Benefit Plan, ERISA, the Code or any other
applicable Law have been made.

 

(d)
Except to the extent required by applicable Law, neither the execution and delivery of this Agreement or any Ancillary Agreement,
nor the consummation of the transactions contemplated hereby could, either alone or in combination with another event, (i) entitle
any individual to any severance pay, unemployment compensation, forgiveness of indebtedness or other benefits or compensation;
(ii) accelerate the time of payment or vesting, funding, or increase the amount of any compensation due, or in respect of, any
individual; (iii) result in or satisfy a condition to the payment of compensation that would, in combination with any other payment,
result in an “excess parachute payment” within the meaning of Section 280G of the Code or that would not be deductible
under Section 162 or 404 of the Code; or (iv) directly or indirectly cause the Companies or the Washington Entities to transfer
or set aside any assets to fund any material benefits under any Benefit Plan. None of the Companies nor any of the Washington
Entities has any obligation to indemnify, hold harmless or gross-up any individual with respect to any excise tax imposed under
Sections 4999 or 409A of the Code and each Benefit Plan to which Code Sections 4999 or 409A applies, has been maintained, operated
and administered in operational and documentary compliance with Section 409A of the Code.

 

(e)
None of the Companies nor any of the Washington Entities maintain, maintained or contributed to within the past five (5) years,
any multiemployer plan, within the meaning of Section 3(37) or 4001(a)(3) of ERISA. None of the Companies nor any of the Washington
Entities currently has any liability to make withdrawal liability payments to any multiemployer plan.

 

    	 	31	 

     

    

 

(f)
Each Benefit Plan can be amended, suspended or terminated at any time without the consent of any employees, participants, service
providers, or insurance companies and without resulting in any Liability to Parent or its Affiliates for any additional contributions,
penalties, premiums, fees, fines, excise taxes or any other charges or Liabilities.

 

Section
3.18 Employees and Contractors.

 

(a)
Section 3.18(a) of the Disclosure Schedule sets forth a complete and accurate list of all Employees, showing as of the
Closing Date each Employee’s: (i) name, (ii) job title or position, (iii) location, (iv) date of hire, (v) whether such
Employee is full-time, part-time or temporary, (vi) whether such Employee is exempt or non-exempt for purposes of the Fair Labor
Standards Act and/or similar state Laws, (vii) base salary or hourly rate of base salary, (viii) annual bonus or other incentive
compensation opportunity and (ix) the nature and amount of any other regular compensation (e.g., commissions and accrued
but unused paid time off/vacation time). Except as set forth on Section 3.18(a) of the Disclosure Schedule, the employment
of each Employee (whether or not under any Contract) can be terminated by the Company or applicable Subsidiary without notice
and without severance, penalty or premium, other than payment of accrued salaries, wages and bonuses or commissions, if any. All
salaries, wages, commissions and other compensation and benefits payable to each Employee have been accrued and paid by the Company
or applicable Subsidiary when due for all periods through the Closing Date. No current executive, key Employee or group of Employees
has given notice of termination of employment or, to the Company’s Knowledge, otherwise disclosed plans to terminate employment
with any of Companies or the Washington Entities within the next 12 months. No executive or key Employee is employed under a non-immigrant
work visa or other work authorization that is limited in duration.

 

(b)
Section 3.18(b) of the Disclosure Schedule sets forth a complete and accurate list of all independent contractors currently
engaged by the Companies and the Washington Entities, along with the position, date of retention and rate of remuneration, most
recent increase (or decrease) in remuneration and amount thereof, for each such independent contractor. Except as set forth on
Section 3.18(b) of the Disclosure Schedule, none of such independent contractors is a party to a written Contract with
any of the Companies or any of the Washington Entities. For purposes of applicable Law, including the Code and the Fair Labor
Standards Act, all independent contractors who are currently, or within the last three years have been, engaged by the Companies
or the Washington Entities have been properly classified as independent contractors and not employees of any of the respective
Companies or any of the Washington Entities.

 

    	 	32	 

     

    

 

Section
3.19 Labor Matters. Except as set forth in Section 3.19 of the Disclosure Schedule, (a) the Companies and the Washington
Entities are in compliance in all material respects with all Laws regarding employment and employment practices, conditions of
employment, wages and hours with respect to the Business, and the payment and withholding of Taxes and other sums as required
by the appropriate Governmental Authority, and have withheld and paid to the appropriate Governmental Authority or are holding
for payment not yet due to such Governmental Authority all amounts required to be withheld from employees of the Companies and
the Washington Entities; (b) the Companies and the Washington Entities are not engaged in unfair labor practices, and there are
no unfair labor practice complaints or grievances pending or, to Company’s Knowledge, threatened against the Companies relating
to employees who are employed in connection with the Business, (c) there are no claims for violations of employment or labor Laws,
or age, sex, racial or other employment discrimination pending or threatened against the Companies nor the Washington Entities
relating to employees of the Business, and (d) there is no labor strike, dispute or work stoppage pending or, to the Company’s
Knowledge, threatened against or involving the Companies’ or the Washington Entities’ business or at the current customer
locations which may affect such business or which may interfere with its continued operation, and there has been no strike, walkout
or work stoppage involving any of the employees of the Companies or the Washington Entities employed with respect to the Business
or at the current customer locations during the twenty-four (24) months prior to the date of this Agreement. The Companies and
the Washington Entities have not incurred, and no circumstances exist under which the Companies or Washington Entities would reasonably
be expected to incur, any Liability arising from the failure to pay wages (including overtime wages), from the misclassification
of employees as independent contractors and/or from the misclassification of employees as exempt from the requirements of the
Fair Labor Standards Act or similar state Laws. None of the Companies nor any Washington Entity has received notice of any claim
that it is a joint employer or co-employer for any third party with which it has contracted for labor during the last three years.
Except as disclosed in Section 3.19 of the Disclosure Schedule, there is no Action with respect to any employment-related
matters, including payment of wages, salary or overtime pay, that has been asserted or is now pending or, to the Company’s
Knowledge, threatened by or before any Governmental Authority with respect to any Persons currently or formerly employed (or engaged
as an independent contractor) by, or who are or were applicants for employment with, any of the Companies or any of the Washington
Entities.

 

Section
3.20 Taxes.

 

(a)
Except as set forth in Section 3.20(a) of the Disclosure Schedule or as set forth on the Closing Balance Sheet, (i) the
Companies and the Washington Entities have timely filed or caused to be filed with the appropriate Taxing Authority all Tax Returns
that they were required to file under applicable laws and regulations; (ii) all such Tax Returns were true, correct and complete
in all material respects and were prepared in substantial compliance with all applicable Laws and regulations; (iii) all Taxes
due and owing by the Companies and the Washington Entities (whether or not shown as due on any Tax Return) have been timely paid,
and (iv) there are no Liens for Taxes upon the Companies, the Washington Entities or their respective assets, except Liens for
current Taxes not yet due and payable. Except as set forth on Section 3.20(a) of the Disclosure Schedule, none of the Companies
nor any of the Washington Entities is currently the beneficiary of any extension of time within which to file any Tax Return and
none of the Companies nor any of the Washington Entities has granted any waiver of any statute of limitations with respect to,
or any extension of a period for the assessment of, any Taxes or agreed to any extension of time with respect to a Tax assessment
or deficiency.

 

(b)
To the Company’s Knowledge, no Company Stockholder or director or officer (or employee responsible for Tax matters) of the
Companies or the Washington Entities expects any Taxing Authority to assess any additional Taxes for any period for which Tax
Returns have been filed.

 

    	 	33	 

     

    

 

(c)
Except as set forth on Section 3.20(c) of the Disclosure Schedule, to the Knowledge of the Company, no federal, state,
local, or non-U.S. tax audits or administrative or judicial audits, proceedings or other Actions in respect of any Tax are pending
or being conducted with respect to the Companies or the Washington Entities. None of the Companies nor any of the Washington Entities
has received from any federal, state, local, or non-U.S. Taxing Authority (including jurisdictions where the Companies or the
Washington Entities have not filed Tax Returns) any (i) written notice indicating an intent to open an audit or other review,
(ii) request for information related to Tax matters, or (iii) written notice of deficiency or proposed adjustment for any amount
of Tax proposed, asserted, or assessed by any taxing authority against any of the Companies or Washington Entities. No claim has
ever been made in writing by a Taxing Authority in a jurisdiction where the Companies or Washington Entities do not file Tax Returns
that any of the Companies or Washington Entities is or may be subject to taxation in that jurisdiction.

 

(d)
The Companies and the Washington Entities have timely withheld and timely paid to the proper Taxing Authority all Taxes that each
of them was required to withhold and pay in connection with any amounts paid or owing to any employee, independent contractor,
creditor, stockholder, or other third party. The Companies and the Washington Entities have properly completed and timely filed
all Tax Returns (including, applicable information returns or reports, including IRS Forms 1099 and W-2), that are required to
be filed and have, in all material respects, accurately reported all information required to be included on such Tax Returns.

 

(e)
Section 3.20(e) of the Disclosure Schedule lists all federal, state, local, and non-U.S. income Tax Returns filed with
respect to the Companies and the Washington Entities for taxable periods ended on or after December 31, 2017, indicates those
Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of audit. Each of the Companies
and each of the Washington Entities has delivered to Parent correct and complete copies of all federal income Tax Returns, examination
reports, and statements of deficiencies assessed against or agreed to by the Companies and the Washington Entities filed or received
since December 31, 2017.

 

(f)
None of the Companies nor any of the Washington Entities is a party to any Tax sharing or allocation agreement, arrangement or
Contract with any Person pursuant to which any of the Companies or Washington Entities would have liability for Taxes of another
Person following the Closing. The Companies and the Washington Entities (i) have not been a member of an affiliated group under
Section 1504(a) of the Code or any similar group defined under a similar provision of state, local, or non-U.S. law (other than
a group the common parent of which was the Company), or (ii) do not have any Liability for Taxes of another Person under Section
1.1502-6 of the Treasury Regulations (or any similar provision or state, local, or non-U.S. law), as a transferee or successor,
by contract, or otherwise.

 

(g)
None of the Companies nor any of the Washington Entities is a party to any agreement, contract, arrangement or plan that has resulted
or could result, separately or in the aggregate, in the payment of (i) any “excess parachute payment” within the meaning
of Code Section 280G (or any corresponding provision of state, local, or non-U.S. Tax law) or (ii) any amount that will not be
fully deductible as a result of Code §162(m) (or any corresponding provision of state, local, or non-U.S. Tax law).

 

(h)
None of the Companies nor any of the Washington Entities has been a United States real property holding corporation within the
meaning of Code §897I(2) during the applicable period specified in Code §897I(1)(A)(ii). The Companies and the Washington
Entity have disclosed on their federal income Tax Returns all positions taken therein that could give rise to a substantial understatement
of federal income Tax within the meaning of Code Section 6662.

 

    	 	34	 

     

    

 

(i)
Section 3.20(i) of the Disclosure Schedule sets forth the following information with respect to the Companies and the Washington
Entities as of the most recent practicable date: (A) the basis of each of the Companies and each of the Washington Entities in
their respective assets; (B) the amount of any net operating loss, net capital loss, unused investment or other credit, unused
foreign tax credit, or excess charitable contribution allocable to each of the Companies and the Washington Entities; and (C)
the amount of any deferred gain or loss allocable to each of the Companies and each of the Washington Entities arising out of
any intercompany transaction or other transaction between or among any of the Companies or the Washington Entities.

 

(j)
The unpaid Taxes of the Companies and the Washington Entities for all periods ending on or before the Balance Sheet Date do not,
in the aggregate, exceed the reserve for any Liabilities for Taxes (rather than any reserve for deferred Taxes established to
reflect timing differences between book and Tax income) reflected on the Balance Sheet (rather than in any notes thereto). The
unpaid Taxes of the Companies and the Washington Entities for all periods following the Balance Sheet Date shall not, in the aggregate,
exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice
of the Companies and the Washington Entities in filing their respective Tax Returns. Since the Balance Sheet Date, none of the
Companies nor any of the Washington Entities has incurred any liability for Taxes arising from extraordinary gains or losses,
as that term is used in GAAP, outside the ordinary course of business consistent with past custom and practice (including with
respect to quantity and frequency).

 

(k)
To the Company’s Knowledge, none of the Companies nor any of the Washington Entities is or has been a party to any “listed
transaction,” as defined in Section 6707AI(2) of the Code and Section 1.6011-4(b)(2) of the Treasury Regulations.

 

(l)
None of the Companies nor any of the Washington Entities will be required to include any item of income in, or exclude any item
of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any:

 

(i)
change in method of accounting for a taxable period (or portion thereof) ending on or prior to the Closing Date;

 

(ii)
use of an improper method of accounting for a taxable period ending on or prior to the Closing Date;

 

(iii)
“closing agreement,” as described in Code Section 7121 (or any corresponding provision of state, local, or non-U.S.
income Tax law) executed on or prior to the Closing Date;

 

(iv)
intercompany transaction, as defined in Section 1.1502-13 of the Treasury Regulations, or any excess loss account, as defined
in Section 1.1502-19 of the Treasury Regulations, (or any corresponding provision of state, local or non-U.S. income Tax law);

 

(v)
installment sale or open transaction made on or prior to the Closing Date for which payments were received prior to the Closing
Date;

 

(vi)
prepaid amount received on or prior to the Closing Date; or

 

(vii)
election under Code Section 108(i).

 

    	 	35	 

     

    

 

(m)
The Companies and the Washington Entities have collected all sales tax in the ordinary course of business and remitted such sales
tax amount to the applicable Taxing Authority, or have collected sales tax exemption certificates from all entities from which
the Companies and the Washington Entities do not collect sales tax.

 

(n)
None of the Companies nor any of the Washington Entities has distributed the stock of another Person, or had their stock distributed
by another Person, in a transaction that was purported or intended to be governed in whole or in part by Code Section 355 or Code
Section 361.

 

(o)
None of the Companies nor any of the Washington Entities has ever (i) had a permanent establishment in any country other than
the United States, or (ii) engaged in activities in any jurisdiction other than the United States.

 

(p)
None of the Companies nor any of the Washington Entities has received any letter ruling from the Internal Revenue Service (or
any comparable ruling from any other Taxing Authority).

 

Section
3.21 Insurance Policies. Section 3.21 of the Disclosure Schedule contains a complete and correct list (by type of
policy, form of coverage, name of insurer and expiration date) of all insurance policies, directors’ and officers’
liability policies, and formal self-insurance programs, and other forms of insurance and all fidelity bonds held by or applicable
to the Companies, the Washington Entities and their assets, properties, employees or Benefit Plan fiduciaries (the “Insurance
Policies”). The Insurance Polices include all policies required under applicable Law. All Insurance Policies are in
full force and effect, and none of the Companies nor any of the Washington Entities is in default with respect to any provision
in any Insurance Policy, and all such policies and all premiums due thereunder have been paid. None of the Companies nor any of
the Washington Entities has received any notice of cancellation or non-renewal of any Insurance Policy, and, to the Company’s
Knowledge, none of the Companies nor any of the Washington Entities has been denied any claim or made any claims which subject
to reservation of rights of the insurer. With respect to each Insurance Policy, since the last renewal date of such policy, none
of the Companies nor any of the Washington Entities has received any notice of any material change in its relationship with its
respective insurer or the premiums payable pursuant to such policy. All Insurance Policies have been made available to Parent.

 

Section
3.22 Inventory. The Cannabis Inventory is true, complete and correct and consists of a quality and quantity usable and
salable in the ordinary course of business consistent with past practice except for obsolete, damaged, defective or slow-moving
items that have been written off or down to fair market value and for which adequate reserves have been established. All such
Cannabis Inventory is owned by the Companies and Washington Entities free and clear of all Liens, and no inventory is held on
a consignment basis. As of the Closing, the Companies and the Washington Entities will have a level of inventory consistent with
past practice.

 

    	 	36	 

     

    

 

Section
3.23 Affiliate Transactions. Except as set forth in Section 3.23 of the Disclosure Schedule, no current manager/director
of any of the Companies or any of the Washington Entities, nor any Company Stockholder who owns at least 10% of the Company Capital
Stock nor any immediate family member or Affiliate of any of the foregoing (whether directly or indirectly through an Affiliate
of such Person): (a) is, or has been within the two years preceding the date of this Agreement: (a) is a party to any Contract
(other than ordinary course employment Contracts that have been provided to Parent) with any of the Companies or any of the Washington
Entities; (b) has, or has had during the last two years preceding the date of this Agreement, any direct or indirect interest
(i) in any material property, asset or right that is owned or used by any of the Companies or any of the Washington Entities in
the conduct of the Business, or (ii) in any Person that is a client, customer, supplier, lessor, lessee, debtor, creditor or competitor
of any of the Companies or any of the Washington Entities; or (c) is, or was during the last two years preceding the date of this
Agreement, a manager/director, officer or employee of any Person that is a client, customer, supplier, lessor, lessee, debtor,
creditor or competitor of any of the Companies or any of the Washington Entities.

 

Section
3.24 No Brokers. Except as set forth in Section 3.24 of the Disclosure Schedule, no broker, finder, investment banker
or financial advisor is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of any of the Companies or any of the Washington Entities
or any Company Stockholder.

 

Section
3.25 No Other Representations and Warranties. Except for the representations and warranties set forth in this Article
III (including, for the avoidance of doubt, the Disclosure Schedule) or elsewhere in this Agreement, or any Ancillary Document
or any certificate or other document furnished or to be furnished to Parent pursuant to this Agreement, the Company expressly
disclaims any and makes no, and shall not be deemed to have made any, representations or warranties, written or verbal, statutory,
express or implied, with respect to the Companies, the Washington Entities, the Business, or the Companies’ or the Washington
Entities’ operations, equity, Liabilities, condition (financial or otherwise) or prospects.

 

Section
3.26 Investor Representations.

 

(a)
Investment Purpose. Each Company Stockholder understands and agrees that the consummation of the transactions contemplated
by this Agreement including the delivery of the Merger Shares by the Parent to the Company Stockholders in exchange for the Company
Capital Stock constitutes the offer and sale of securities under the Securities Act, applicable state statutes, Canadian Securities
Laws and that the Merger Shares are being acquired for each Company Stockholder’s own account and not with a present view
towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities
Act. At the time each Company Stockholder was offered the Merger Shares, the Company Stockholder was, and at the date hereof such
Company Stockholder is, and such Company Stockholder will be, an “accredited investor” as defined in Rule 501(a) under
the Securities Act (an “Accredited Investor”).

 

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

 

    	 	37	 

     

    

 

(c)
Information. Each Company Stockholder and such Company Stockholder’s advisors, if any, have been furnished with all
materials relating to the business, finances and operations of Parent and materials relating to the offer and sale of the Merger
Shares which have been requested by such Company Stockholder or his or her advisors. Such Company Stockholder and his or her advisors,
if any, have been afforded the opportunity to ask questions of Parent. Such Company Stockholder understands that his or her investment
in the Merger Shares involves a significant degree of risk.

 

(d)
Governmental Review. Each Company Stockholder understands that no United States federal or state agency or Canadian federal
or provincial agency or any other Governmental Authority has passed on or made recommendations or endorsement of the Merger Shares
or the suitability of the investment in the Merger Shares nor have such authorities passed upon or endorsed the merits of the
transactions set forth herein.

 

(e)
Transfer or Re-sale. Each Company Stockholder understands that the sale or re-sale of the Merger Shares have not been and
are not being registered under the Securities Act or any applicable state securities laws and Canadian securities laws, and that
the Merger Shares may not be transferred unless then permitted under applicable securities Laws. Further, each Company Stockholder
covenants that it will not resell the Merger Shares except in compliance with such Laws and each Company Stockholder acknowledges
that such Company Stockholder will be solely responsible (and Parent is not in any way responsible) for such compliance.

 

(f)
Canadian Securities Laws.

 

(i)
At the Closing Date, each Company Stockholder shall not be a resident in British Columbia and is acquiring the Merger Shares as
principal.

 

(ii)
Parent is relying on an exemption from the requirement to provide the Company Stockholder with a prospectus under applicable Canadian
Securities Laws and, as a consequence of acquiring the Merger Shares pursuant to such exemption, certain protections, rights and
remedies provided by applicable securities laws, including statutory rights of rescission or damages, will not be available to
the Company Stockholder, and the Company Stockholder may not receive information that would otherwise be required to be provided
to it under applicable securities laws.

 

(iii)
The Merger Shares will be subject to statutory resale restrictions under applicable Canadian Securities Laws, and the Company
Stockholder covenants that it will not resell the Merger Shares except in compliance with such applicable Canadian Securities
Laws and the Company Stockholder acknowledges that it is solely responsible (and Parent is not in any way responsible) for such
compliance.

 

(iv)
Company Stockholder acknowledges that it has been notified by Parent: (a) (i) of the delivery to the British Columbia Securities
Commission (the “BCSC”) of certain personal information pertaining to the Company Stockholder, including the
Company Stockholder’s full name, address and telephone number, the number and type of securities purchased, the total purchase
price, the exemption relied upon and the date of distribution; (ii) that this information is being collected indirectly by the
BCSC under the authority granted to it in securities legislation; (iii) that this information is being collected for the purposes
of the administration and enforcement of the securities legislation of British Columbia; and (iv) that the Company Stockholder
may contact the public official at the BCSC at P.O. Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, British Columbia
V7Y 1L2, or at (604) 899-6854 or 1-800-373-6393, or by facsimile at (604) 899-6581 or email at inquiries@bcsc.bc.ca regarding
any questions about the BCSC’s indirect collection of this information.

 

    	 	38	 

     

    

 

(v)
Company Stockholder acknowledges and consents to: (i) the fact that Parent is collecting personal information (as that term is
defined under applicable privacy legislation, including, without limitation, the Personal Information Protection and Electronic
Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or federal legislation or laws
in effect from time to time); (ii) Parent retaining such personal information for as long as permitted or required by applicable
law or business practices; (iii) the fact that Parent may be required by applicable securities laws, the rules and policies of
any stock exchange or the rules of the Investment Industry Regulatory Organization of Canada to provide regulatory authorities
with any personal information provided by the Company Stockholder in or in connection with this Agreement, including disclosure
to the CSE; and (iv) the collection, use and disclosure of the Company Stockholder’s personal information by the CSE.

 

(g)
Legends. Each Company Stockholder understands and agrees that any legend required by the securities laws of any state or
province, to the extent such laws are applicable to the Merger Shares represented by the certificate or other evidence so legended,
shall be included on any certificates representing or other applicable evidence of the Merger Shares, including without limitation
a legend consistent with Section 2.5 of National Instrument 45-102. Each Company Stockholder also understands that the Merger
Shares may bear the following or a substantially similar legend:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE OR THE SHARES INTO WHICH THESE SHARES ARE CONVERTIBLE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED OR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH SHARES MAY NOT BE OFFERED
FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS QUALIFIED AND REGISTERED UNDER APPLICABLE STATE
AND FEDERAL SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH QUALIFICATION AND
REGISTRATION ARE NOT REQUIRED.

 

(h)
No Rights to Prior Issuance. Each Company Stockholder understands that prior to the Closing, such Company Stockholder has
no rights as a shareholder of Parent and thus has no rights to receive notice of shareholder meetings, voting rights, participation
rights in any transactions involving a shareholder of Parent, dividends or distributions to shareholders of Parent, or proceeds
from any transaction involving Parent, participation rights in the liquidation, dissolution or winding-up of Parent, conversion
or other rights as shareholder of Parent.

 

    	 	39	 

     

    

 

Article
IV

REPRESENTATIONS
AND WARRANTIES OF PARENT

 

Parent
represents and warrants to the Company that the statements contained in this Article IV are true and correct as of the
Effective Date and as of the Closing Date.

 

Section
4.01 Organization and Authority; Execution; Enforceability.

 

(a)
Parent is a corporation incorporated, validly existing and in good standing under applicable Laws of British Columbia, Canada.
Parent has the requisite corporate power and authority to enter into this Agreement and the Ancillary Agreements to which it is
a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.
The execution and delivery by Parent of this Agreement and the Ancillary Agreements to which it is a party, the performance of
Parent of its obligations hereunder and thereunder and the consummation by Parent of the transactions contemplated hereby and
thereby have been duly authorized by all requisite corporate action on the part of Parent. No other action or proceeding on the
part of Parent is necessary to authorize this Agreement or any Ancillary Agreement or to consummate the transactions contemplated
hereby and thereby. This Agreement has been, and upon their execution the Ancillary Agreements to which Parent is a party shall
have been, duly executed and delivered by Parent, and (assuming due authorization, execution and delivery by each other party
or parties thereto) this Agreement constitutes, and upon their execution the Ancillary Agreements to which Parent is a party shall
constitute, legal, valid and binding obligations of Parent, enforceable against Parent in accordance with their respective terms
except to the extent enforcement may be limited by Laws relating to bankruptcy, insolvency, creditors’ rights and by the
availability of injunctive relief, specific performance and other equitable remedies.

 

(b)
Merger Sub is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and
have all necessary corporate power and authority to enter into this Agreement and the Ancillary Agreements to which they are parties,
to carry out their obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The
execution and delivery of this Agreement and the Ancillary Agreements by Merger Sub, the performance by Merger Sub of its obligations
hereunder and thereunder and the consummation by Merger Sub of the transactions contemplated hereby and thereby have been duly
authorized by all requisite corporate action on the part of Merger Sub. This Agreement has been, and upon their execution the
Ancillary Agreements to which Merger Sub is a party shall have been, duly executed and delivered by Merger Sub, and (assuming
due authorization, execution and delivery by each other party hereto and thereto) this Agreement constitutes, and upon their execution
the Ancillary Agreements shall constitute, legal, valid and binding obligations of Merger Sub, enforceable against Merger Sub
in accordance with their respective terms except to the extent enforcement may be affected by Laws relating to bankruptcy, insolvency,
creditors’ rights and by the availability of injunctive relief, specific performance and other equitable remedies.

 

Section
4.02 No Conflict; Consents. The execution, delivery and performance by Parent and Merger Sub of this Agreement and the
Ancillary Agreements to which each is a party and the consummation of the transactions contemplated hereby and thereby do not
and will not (a) violate, conflict with or result in the breach of any provision of the Organizational Documents of Parent, or
Merger Sub; (b) conflict with or result in a violation or breach of any Law or Governmental Order applicable to Parent or Merger
Sub; or (c) require the consent, notice or other actions by any Person under, conflict with, result in a violation or breach of,
constitute a default or event that, with or without notice or lapse of time or both, would constitute a default under, result
in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which Parent
or Merger Sub is a party. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental
Authority is required by or with respect to Parent or Merger Sub in connection with the execution and delivery of this Agreement
and the Ancillary Agreements and the consummation of the transactions contemplated by this Agreement.

 

    	 	40	 

     

    

 

Section
4.03 Valid Issuance of Merger Shares. The Merger Shares being issued hereunder, when issued, sold, and delivered in accordance
with the terms of this Agreement, will be duly and validly issued, fully paid, and non-assessable, and will have been issued in
compliance with all applicable securities Laws and the policies of the CSE. In addition and without limiting the foregoing, (i)
the HHR Stock and Parent are in compliance with the policies of the CSE, (ii) the HHR Stock is listed and posted for trading on
the CSE and Parent shall prepare and cause to be submitted to the CSE the required forms and documentation necessary for the listing
on the CSE of the HHR Stock issuable upon conversion of the Merger Shares delivered to the Company Stockholders in accordance
with this Agreement, (iii) Parent has complied, or will comply, with all Applicable Canadian Securities Laws, corporate laws and
regulations in connection with the distribution of the Merger Shares in accordance with this Agreement, (iv) the distribution
of the Merger Shares by Parent in accordance with this Agreement is exempt from the registration and prospectus requirements of
the Applicable Canadian Securities Laws in Canada and no prospectus will be required and no other document must be filed, proceeding
taken or approval, permit, consent, authorization or authority obtained in Canada, to permit such issuance and delivery of the
Merger Shares in accordance with this Agreement, and (v) the HHR Stock issuable upon the conversion of the Merger Shares will
be freely tradable in Canada without any requirement of any restricted or other holding period (subject to the holder not being
a “control person” as defined in applicable securities Laws at the time of the trade) and shall continue to be freely
tradable in Canada without any requirement of any restricted or other holding period indefinitely (subject to the holder not being
a “control person” as defined in applicable securities Laws at the time of the trade).

 

Section
4.04 Capitalization. The authorized and outstanding capital stock of Parent is as set forth in the Harvest Public Reports,
which contain a true and accurate description in all material respects of the number and type of shares of capital stock of Parent
authorized and outstanding as of immediately prior to the date of such Harvest Public Report. Section 4.04 of the Disclosure
Schedule sets forth the authorized and outstanding capital stock of Parent as of immediately prior to the Effective Date,
including the number and type of shares of capital stock of Parent authorized and outstanding as of such time. All issued and
outstanding shares of Parent’s capital stock have been duly authorized and validly issued and are fully paid and nonassessable.
The respective rights, preferences, privileges, and restrictions of each class and series of the authorized capital stock of Parent
are as stated in the Harvest Public Reports. Except as set forth in the Harvest Public Reports or as set forth in Section 4.04
of the Disclosure Schedule, as of immediately prior to the Effective Date, there are no: (i) securities convertible into or
exchangeable for shares of Parent’s capital stock; (ii) options, warrants or other rights to acquire or subscribe for shares
of Parent’s capital stock; or (iii) except for Parent’s Organizational Documents (copies of which have been provided
to Company), contracts, agreements, or other commitments (oral or written) of any kind relating to the issuance, sale or transfer
of shares of Parent’s capital stock or the value of shares of Parent’s capital stock or any part thereof.

 

Section
4.05 Disclosure Documents. Parent is in compliance in all material respects with all of its disclosure obligations under
Applicable Canadian Securities Laws. Parent has filed all forms, reports, documents and information required to be filed by it,
whether pursuant to Applicable Securities Law or otherwise, with the applicable Securities Authorities (the “Disclosure
Documents”). As of the time the Disclosure Documents were filed with the Securities Authorities and on SEDAR (or, if
amended or superseded by a filing prior to the date of this letter agreement, then on the date of such filing): (i) each of the
Disclosure Documents complied in all material respects with the requirements of the Applicable Canadian Securities Laws; and (ii)
none of the Disclosure Documents contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading.

 

    	 	41	 

     

    

 

Section
4.06 Financial Statements. The financial statements regarding Parent as filed with the CSE have been prepared in accordance
with IFRS applied on a basis consistent with prior periods and present fairly, in all material respects, the consolidated financial
position, results of operations and changes in the financial positions of the applicable entity, as of the respective dates thereof
and for the respective periods covered thereby (except as may be otherwise indicated in such financial statements and the notes
thereto or the related auditor’s report).

 

Section
4.07 No Undisclosed Liabilities. Parent has no liabilities of the type required to be reflected as liabilities on a balance
sheet prepared in accordance with IFRS, other than (i) liabilities disclosed in the Harvest Public Filings, (ii) liabilities incurred
in the ordinary course of business since January 1, 2019, and (iii) liabilities that would not be reasonably expected to have,
a Parent Material Adverse Effect.

 

Section
4.08 Reporting Issuer. Parent is a reporting issuer, or the equivalent thereof, in the Reporting Jurisdictions and is not
currently in default of any requirement of the Applicable Securities laws of each of the Reporting Jurisdictions and other regulatory
instruments of the Securities Authorities in such provinces.

 

Section
4.09 No Cease Trade Orders. Neither Parent nor any of its directors, officers, promoters or insiders is subject to any
cease trade or other order of any Securities Authority, and no such Person has received notice from any Securities Authority of
any investigation or other proceeding involving Parent or any of its directors, officers, promoters or insiders, and neither Parent
nor any of the Disclosure Documents is subject to an ongoing audit, review, comment or investigation by any Securities Authority
or Governmental Authority.

 

Section
4.10 Litigation. Except as set forth and disclosed in the Harvest Public Reports, there are no Actions pending or, to Parent’s
Knowledge, threatened against or by any of Parent, or its Affiliates or any of their officers, executives or directors, as applicable
that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement or the Ancillary
Agreements.

 

Section
4.11 No Brokers. Except as set forth in Section 4.11 of the Disclosure Schedule, no broker, finder or investment
banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated
by this Agreement based upon arrangements made by or on behalf of Parent, Merger Sub, or their respective Affiliates.

 

Section
4.12 Legal Framework. Parent is familiar with the Laws applicable to the Business and is entering into this Agreement with
full awareness thereof and having consulted with independent legal counsel regarding the same.

 

Section
4.13 Disqualification. To the Knowledge of Parent, and except as set forth in Section 4.13 of the Disclosure Schedule,
neither Parent nor any of its Subsidiaries or Affiliates is disqualified from or otherwise incapable of holding or being otherwise
affiliated with any Regulatory License required in connection with the Business, including without limitation any Regulatory License
to be issued by any Cannabis Regulators in connection with the Business and where such disqualification would be reasonably expected
to have a Parent Material Adverse Effect.

 

    	 	42	 

     

    

 

Section
4.14 Full Investigation. Parent has conducted Parent’s own independent investigation, review and analysis of the
business, results of operations, prospects, condition (financial or otherwise) or assets of the Companies, and acknowledges that
it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other documents and
data of the Companies for such purpose. Parent has been furnished with, and has had access to, all such information as Parent
considers necessary or appropriate in connection with the transaction evidenced hereby, and Parent has had an opportunity to ask
questions and receive answers from the Companies regarding the Business and the terms and conditions set forth herein. Parent
acknowledges and agrees that: (a) in making Parent’s decision to enter into this Agreement and to consummate the transactions
contemplated hereby, Parent has relied solely upon Parent’s own investigation and the express Representations and Warranties
of Company ; and (b) neither the Company nor any other Person has made any representation or warranty as to the Companies, the
Business, or this Agreement, except as expressly set forth in this Agreement.

 

Section
4.15 Informed Review. Parent is knowledgeable and experienced in financial and business matters such that Parent is capable
of evaluating the merits and risks of entering into the transaction memorialized in this Agreement; is an informed and sophisticated
participant in the transactions contemplated herein; and has, independently and without reliance upon any Person (other than Parent’s
Representatives and professional advisors), and based on the representations and warranties of the Company set forth in
this Agreement and such documents and information as Parent has deemed appropriate, made Parent’s own appraisal of, and
investigation into, the business, operations, property, and finances of the Companies and other conditions and consequences of
entering into this transaction. Nothing in Section 4.14 and Section 4.15 is intended to modify or limit in any respect
any of the representations or warranties of the Company in Article III or elsewhere in this Agreement.

 

Article
V

ADDITIONAL
COVENANTS OF THE PARTIES

 

Section
5.01 Maintain Stock Exchange Listing. Parent shall use commercially reasonable efforts to maintain the listing of the HHR
Stock on the CSE (or another recognized stock exchange in Canada or the United States) for a period of at least two (2) years
following the Closing Date, provided that this covenant shall not prevent Parent from completing any transaction which would result
in the HHR Stock ceasing to be listed so long as the holders of HHR Stock receive securities of an entity which is listed on a
recognized stock exchange in Canada or the United States, or cash, and the holders of the HHR Stock have approved the transaction
in accordance with the requirements of applicable corporate laws and the policies of the CSE (or such other applicable stock exchange
upon which the HHR Stock is listed), if required.

 

Section
5.02 Tax Matters.

 

(a)
In the case of any taxable period that begins before and ends after the Closing Date (a “Straddle Period”),
the amount of any (i) Taxes based on or measured by income, gain, receipts, capital, sales or payroll of the Companies for the
Pre-Closing Tax Period, and (ii) all other Taxes that otherwise can be reasonably allocated to the Pre-Closing Tax Period shall
be determined based on an interim closing of the books as of the close of business on the Closing Date. The amount of any Taxes
of the Companies for a Straddle Period that relates to the Pre-Closing Tax Period that is not susceptible to allocation based
on the methodology described in the preceding sentence shall be deemed to be the amount of such Tax for the entire taxable period
multiplied by a fraction the numerator of which is the number of days in the taxable period ending on the Closing Date and the
denominator of which is the number of days in such Straddle Period.

 

    	 	43	 

     

    

 

(b)
The Stockholder Representative, at its own expense, shall prepare, or cause to be prepared, and file, or cause to be filed (taking
into account all extensions properly obtained), all Tax Returns required to be filed by the Companies after the Closing Date for
all Pre-Closing Tax Periods (other than Straddle Periods) which Tax Returns are not due, and have not been filed as of the Closing
Date and the Companies shall pay and discharge all Taxes shown to be due by the Companies on such Tax Returns, subject to the
rights of the Parent Indemnified Parties under Article VI. The Stockholder Representative shall permit Parent to review
and comment on each such Tax Return described in the prior sentence at least ten (10) days prior to filing. All Tax Returns to
be prepared by or for the Companies pursuant to this Section 5.02(b) shall be prepared in a manner consistent with the
past practice of the Companies, as the case may be, except as otherwise required by Law, this Agreement, or as reasonably agreed
to by the Stockholder Representative and Parent.

 

(c)
Parent shall prepare, or cause to be prepared, and file, or cause to be filed (taking into account all extensions properly obtained),
all Tax Returns required to be filed by the Companies after the Closing Date with respect to any Straddle Period and the Companies
shall pay and discharge all Taxes shown to be due on such Tax Returns, subject to the rights of the Parent Indemnified Parties
under Article VI. Each such Tax Return shall be prepared in a manner consistent with past practice and without a change
of any election or any accounting method, except as otherwise required by Law, this Agreement, or as reasonably determined by
Parent. Parent shall permit the Stockholder Representative to review and comment on each such Tax Return described in the prior
sentence at least ten (10) days prior to filing.

 

(d)
Without the prior written consent of Parent, neither the Stockholder Representative nor the Company Stockholders shall, to the
extent it may affect, or relate to, the Companies, make, change or rescind any Tax election, amend any Tax Return or take any
position on any Tax Return, take any action, omit to take any action or enter into any other transaction that would have the effect
of increasing the Tax liability or reducing any Tax asset of Parent or the Companies in respect of any Post-Closing Tax Period.
The Company Stockholders agree that Parent is to have no liability for any Tax resulting from any action of the Stockholder Representative,
the Company Stockholders, their respective Affiliates or any of their respective Representatives, and agrees to indemnify and
hold harmless Parent (and, after the Closing Date, the Companies) against any such Tax or reduction of any Tax asset resulting
from a breach of this Section 5.02(d).

 

(e)
Parent, the Companies, and the Stockholder Representative shall cooperate fully, as and to the extent reasonably requested by
any other party, in connection with the filing of Tax Returns pursuant to this Section 5.02 and any audit, litigation,
proceeding or other Action with respect to Taxes of the Companies.

 

(f)
The Companies and the Stockholder Representative agree (i) to retain all books and records with respect to Tax matters pertinent
to the Companies relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations
(and, to the extent notified by Parent or the Company Stockholders, any extensions thereof) of the respective taxable periods,
and to abide by all record retention agreements entered into with any Taxing Authority, and (ii) to give the other applicable
party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other applicable
party so requests, the Companies or the Company Stockholders, as the case may be, shall allow the other applicable party to take
possession of such books and records.

 

    	 	44	 

     

    

 

(g)
Parent and the Stockholder Representative further agree, upon request, to use their best efforts to obtain any certificate or
other document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax
that could be imposed (including with respect to the transactions contemplated hereby).

 

(h)
Parent and the Stockholder Representative further agree, upon request, to provide the other applicable party with all information
that either party may be required to report pursuant to Code Section 6043, or Code Section 6043A, or Treasury Regulations promulgated
thereunder.

 

(i)
All tax-sharing agreements or similar agreements with respect to or involving the Companies shall be terminated as of the Closing
Date and, after the Closing Date, the Companies shall not be bound thereby or have any liability thereunder.

 

(j)
The parties hereto intend that, for federal income tax purposes, the Merger shall constitute a “reorganization” within
the meaning of Section 368(a) of the Code. Unless otherwise required by applicable Law, the parties hereto shall report, to the
extent required by the Code or the regulations thereunder, the Merger for federal income tax purposes as a “reorganization”
within the meaning of Section 368(a) of the Code.

 

(k)
The Parties agree to cooperate with each other to treat the Merger, and parties to the Merger including Company Stockholders,
as not subject to Section 367 of the Code, including without limitation by satisfying any requirements under Section 367 of the
Code or the regulations promulgated thereunder. To that end, Parent shall cause the Company to prepare the statements required
to be filed pursuant to Treasury Regulations Section 1.367(a)-3(c)(6) and Treasury Regulations Section 1.367(a)-3(c)(7), and shall
cause the Company to timely file (after taking into account all extensions properly obtained) such statements with the Tax Return
of the Company with respect to the Straddle Period, and the Stockholder Representative shall provide to Parent and the Company
such information as reasonably required to prepare the statement required pursuant to Treasury Regulations Section 1.367(a)-3(c)(7).

 

(l)
Despite the stated intention of the Parties to cooperate as set forth in Section 5.02(k), Parent and Merger Sub cannot
assure the Company or the Company Stockholders that the IRS will not challenge the Company Stockholders’ intent to treat
the Merger as not subject to Section 367 of the Code. The Company and the Company Stockholders have consulted their own tax advisors
with respect to the potential tax consequences of the receipt of the Merger Shares by the Company Stockholders. Further, the Company
or the Company Stockholders acknowledge that none of Parent or its subsidiaries or affiliates or any of their successors, beneficiaries,
and assigns and their past and present directors, managers, shareholders, members, partners, officers, employees, and agents (including,
without limitation, their attorneys) makes or has made any representations or warranties to the Company or the Company Stockholders
regarding the tax consequences to the Company or the Company Stockholders of the receipt or ownership of the Merger Shares, including
the tax consequences under any tax laws and the possible effects of changes in such tax laws.

 

    	 	45	 

     

    

 

Section
5.03 Lockup. The Company shall cause each Company Stockholder to enter into a Lock-Up Agreement on the Closing Date (the
“Lock-Up Agreements”). The Lock-Up Agreements will provide that the Merger Shares other than the Stockholder
Representative Shares (the “Lock-Up Shares”) shall be restricted for a total period of up to 30 months after
the Closing, allowing (a) no less than 10% of the Lock-Up Shares to be sold by such Company Stockholder immediately after the
Closing, (b) no less than an additional 10% of the Lock-Up Shares to be sold by such Company Stockholder after the 6-month anniversary
of the Closing, (c) no less than an additional 10% of the Lock-Up Shares to be sold by such Company Stockholder after the 9-month
anniversary of the Closing, (d) no less than an additional 10% of the Lock-Up Shares to be sold by such Company Stockholder after
the 12-month anniversary of the Closing, (e) no less than an additional 10% of the Lock-Up Shares to be sold by such Company Stockholder
after the 15-month anniversary of the Closing, (f) no less than an additional 10% of the Lock-Up Shares to be sold by such Company
Stockholder after the 18-month anniversary of the Closing, (g) no less than an additional 10% of the Lock-Up Shares to be sold
by such Company Stockholder after the 21-month anniversary of the Closing, (h) no less than an additional 10% of the Lock-Up Shares
to be sold by such Company Stockholder after the 24-month anniversary of the Closing, (i) no less than an additional 10% of the
Lock-Up Shares to be sold by such Company Stockholder after the 27-month anniversary of the Closing, and (j) the remaining Lock-Up
Shares to be sold by such Company Stockholder after the 30-month anniversary of the Closing.

 

Section
5.04 Public Disclosure. After the Closing, Parent and its Affiliates may, in coordination with the Company Stockholders
as provided for below, (a) issue any press release or make any public statement or disclosure as may be required by applicable
Law or the applicable rules of the CSE, and (b) no party other than Parent or its Affiliates shall issue any press release or
make any public statement with respect to the Agreement or the transactions contemplated hereby. If a public announcement regarding
this Agreement or the Merger is required by applicable Law or stock exchange requirements, the Party seeking to make the public
announcement will provide the other Party with a written copy of the public announcement a reasonable period of time before the
public announcement is to be made and will consult in good faith with such other Party regarding the contents of such public announcement.

 

Section
5.05 Release. Effective as of the Closing, each Company Stockholder on behalf of itself and its Affiliates or any Person
claiming by or through it or any of them hereby irrevocably waives, releases, remises and forever discharges any and all rights
and claims that it, or any of such Company Stockholder’s Affiliates, has had, now has or might now have against any of the
Companies or any of the Washington Entities and any of their respective Affiliates that arose, occurred or existed on or before
the Closing Date (whether accrued, absolute, contingent, unliquidated or otherwise and whether known or unknown), except for (a)
rights and claims arising from or in connection with this Agreement or any other agreements entered into in connection with this
Agreement and (b) rights to indemnification pursuant to Article VI.

 

Section
5.06 Interim Covenants.

 

(a)
Confidentiality. Each party agrees that, unless and until the transactions contemplated by this Agreement have been consummated,
it and its Affiliates and Representatives will hold in strict confidence all data and information obtained with respect to another
party or any Subsidiary thereof from any Representative or from any books or records or from personal inspection of such other
party, and shall not use such data or information or disclose the same to others, except (i) to the extent such data or information
is published, is a matter of public knowledge, or is required by Law to be published; (ii) to the extent such data or information
is lawfully acquired by a party from sources which are not prohibited from disclosing such information by a legal, contractual
or fiduciary obligation; or (iii) to the extent that such data or information must be used or disclosed in order to consummate
the transactions contemplated by this Agreement. If any of the foregoing parties is compelled to disclose any information by judicial
or administrative process or by other requirements of Law, such party shall promptly notify the other parties in writing and shall
disclose only that portion of such information which such party is advised by its counsel in writing is legally required to be
disclosed, provided, that the disclosing party shall use commercially reasonable efforts to obtain an appropriate protective order
or other reasonable assurance that confidential treatment will be accorded such information. Notwithstanding the foregoing, any
party to this Agreement may disclose all reasonably necessary information to its Representatives who are acting in a fiduciary
capacity (with instructions that such information shall be held in confidence). In the event of the termination of this Agreement,
each party shall, and shall cause its respective Affiliates and Representatives to return to the applicable other party all documents
and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials
relating thereto, and each party will continue to comply with the confidentiality provisions set forth in the Confidentiality
Agreement.

 

    	 	46	 

     

    

 

(b)
Conduct of Business Prior to Closing. From the date hereof until the Closing, except as otherwise provided in this Agreement
or consented to in writing by Parent (which consent shall not be unreasonably withheld or delayed), the Company shall, and shall
cause each Subsidiary to (i) conduct the Business in the ordinary course of business; and (ii) use commercially reasonable efforts
to maintain and preserve intact its current Business organization, operations and franchise and to preserve the rights, franchises,
goodwill and relationships of its Employees, customers, lenders, suppliers, regulators and others having relationships with the
Business. From the date hereof until the Closing Date, except as consented to in writing by Parent (which consent shall not be
unreasonably withheld or delayed), the Company shall not, and shall cause each Subsidiary not to, take any action that would cause
any Company Material Adverse Effect.

 

(c)
Access to Information. From the date hereof until the Closing, and in each case subject to applicable Law, the Company
shall, and shall cause each Subsidiary to, and shall assist in requesting that the Washington Entities, (i) afford Parent and
its Representatives reasonable access to and the right to inspect all of the properties, assets, premises, books and records,
Assigned Contracts and other documents and data related to the Business; (ii) furnish Parent and its Representatives with such
financial, operating and other data and information related to the Business as Parent or any of its Representatives may reasonably
request; and (ii) instruct the Representatives of the Companies to cooperate with Parent in its investigation of the Business;
provided, however, that any such investigation shall be conducted during normal business hours upon reasonable advance notice
to the Company, under the supervision of the Company’s personnel and in such a manner as not to interfere with the conduct
of the Business. Parent shall, and shall cause its Affiliates and Representatives to, abide by the terms of the Confidentiality
Agreement with respect to any access or information provided pursuant to this Section 5.06(c).

 

(d)
No Solicitation of Other Bids. For a period of 60 days from the Effective Date, the Company shall not, and shall not authorize
or permit any of its Affiliates or any of its or their Representatives to, directly or indirectly, (i) encourage, solicit, initiate,
facilitate or continue inquiries regarding an Acquisition Proposal; (ii) enter into discussions or negotiations with, or provide
any information to, any Person concerning a possible Acquisition Proposal; or (iii) enter into any agreements or other instruments
(whether or not binding) regarding an Acquisition Proposal. As of the Effective Date, the Company shall immediately cease and
cause to be terminated, and shall cause its Affiliates and all of its and their Representatives to immediately cease and cause
to be terminated, all existing discussions or negotiations with any Persons conducted heretofore with respect to, or that could
lead to, an Acquisition Proposal. For purposes hereof, “Acquisition Proposal” means any inquiry, proposal or
offer from any Person (other than Parent or any of its Affiliates) relating to the direct or indirect disposition, whether by
sale, merger or otherwise, of any of the Companies, the Washington Entities or any portion of the Business. In addition to the
other obligations under this Section 5.06(d), the Company shall promptly (and in any event within three Business Days after
receipt thereof by the Company or its Representatives) advise Parent orally and in writing of any Acquisition Proposal, any request
for information with respect to any Acquisition Proposal, or any inquiry with respect to or which could reasonably be expected
to result in an Acquisition Proposal, the material terms and conditions of such request, Acquisition Proposal or inquiry, and
the identity of the Person making the same. The Company agrees that the rights and remedies for noncompliance with this Section
5.06(d) shall include having such provision specifically enforced by any court having equity jurisdiction, it being acknowledged
and agreed that any such breach or threatened breach shall cause irreparable injury to Parent and that money damages would not
provide an adequate remedy to Parent.

 

    	 	47	 

     

    

 

(e)
Notice of Certain Events. From time to time prior to the Closing, the Company shall promptly notify Parent in writing of
(i) any fact, circumstance, event or action the existence, occurrence or taking of which (A) has had, or could reasonably be expected
to have, a Company Material Adverse Effect, or (B) has resulted in, or could reasonably be expected to result in, any representation
or warranty made by the Company hereunder not being true and correct or (C) has resulted in, or could reasonably be expected to
result in, the failure of any of the conditions set forth in Section 7.01 and Section 7.02 to be satisfied; (ii)
any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection
with the transactions contemplated by this Agreement, where such requirement (or alleged requirement) has not already been disclosed
to Parent; (iii) any notice or other communication from any Governmental Authority in connection with the transactions contemplated
by this Agreement; and (iv) any Action commenced or, to the Company’s Knowledge, threatened against, relating to or involving
or otherwise affecting any of the Companies, the Company Stockholders, the Business or any of the Washington Entities that, if
pending on the date of this Agreement, would have been required to have been disclosed pursuant to any representation or warranty
in this Agreement or that relates to the consummation of the transactions contemplated by this Agreement. Any notice under this
Section 5.06(e) shall not be deemed to have cured any inaccuracy in or breach of any representation or warranty contained
in this Agreement, including for purposes of the indemnification or termination rights contained in this Agreement or of determining
whether or not the conditions set forth in Article VII have been satisfied.

 

(f)
Governmental Approvals and Consents.

 

(i)
As soon as practicable after the Effective Date, the Parent, in collaboration with the Stockholder Representative, shall cause
each of the California Entities and the Iowa Entity to obtain the approval, consent or written confirmation of non-objection (a
“Regulatory Approval”) from the applicable Cannabis Regulators (to the extent a Regulatory Approval is required
under applicable Law) to the transfer to Parent or an Affiliate of Parent of all the Regulatory Licenses set forth in Section
5.06(f) of the Disclosure Schedule (individually, a “Transferred License” and collectively, the “Transferred
Licenses”) and/or to the change in ownership or change of control of any Person holding such Transferred License pursuant
to a Transferred Licensee Assignment, as appropriate or enter into Commercial Arrangements for all of the Transferred Licenses.
In furtherance of the foregoing, the Parent, in collaboration with the Stockholder Representative, shall cause each of the California
Entities and the Iowa Entity to comply with applicable Law and, as promptly as possible, (i) make, or cause or be made, all filings
and submissions, including without limitation, those required to obtain the Regulatory Approvals (which shall be filed promptly
following the Effective Date), as may be required under any applicable Law; and (ii) use reasonable efforts to obtain, or cause
to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary
for the Regulatory Approvals and consummation of this Agreement and the Ancillary Agreements as contemplated herein. The Stockholder
Representative and Parent shall cooperate fully with each other and their respective Affiliates in assisting in obtaining such
consents, authorizations, orders, and approvals. The parties shall not willfully take any action that will have the effect of
delaying, impairing or impeding the receipt of any required consents, authorizations, orders and approvals.

 

    	 	48	 

     

    

 

(ii)
Without limiting the generality of the parties’ undertakings pursuant to Section 5.06(f)(i) above, Parent in collaboration
with the Stockholder Representative, shall cause each of the California Entities and the Iowa Entity and owners and holders of
their outstanding equity interests to use all reasonable efforts to: (A) respond to any inquiries by any Governmental Authority
regarding the Regulatory Approvals and the transactions contemplated by this Agreement; and (B) avoid the imposition of any order
or the taking of any action that would restrain, alter or enjoin the transactions contemplated by this Agreement. In the event
any Governmental Order adversely affecting the ability of the parties to consummate the transactions contemplated by this Agreement
has been issued or is threatened to be issued, Parent shall use all commercially reasonable efforts to have such Governmental
Order vacated or lifted.

 

(iii)
If any consent, approval, authorization or amendment from or requested by a Governmental Authority is necessary to preserve any
right or benefit under any Contract or Lease to which any of the Companies or any of the Washington Entities is a party is not
obtained prior to the Closing, the Stockholder Representative shall, subsequent to the Closing, cooperate with Parent and the
Companies and Washington Entities in attempting to obtain such consent, approval, authorization or amendment as promptly thereafter
as practicable. If such consent, approval, authorization or amendment cannot be obtained, the Company shall cause the Company
Stockholders to use their reasonable best efforts, at all times in accordance with applicable Law, to provide the Company with
the rights and benefits of the affected Contract or Lease for the term thereof, and, if the Company Stockholders provide such
rights and benefits, the Company shall assume all obligations and burdens thereunder.

 

(iv)
All analyses, appearances, meetings, discussions, presentations, memoranda, briefs, filings, arguments, and proposals made by
or on behalf of either party before any Governmental Authority or the staff or regulators of any Governmental Authority, in connection
with the Regulatory Approvals and the transactions contemplated by this Agreement (but, for the avoidance of doubt, not including
any interactions between the Company Stockholders or the Company with Governmental Authorities in the ordinary course of business,
any disclosure which is not permitted by Law or any disclosure containing confidential information) shall be disclosed to the
other party hereunder in advance of any filing, submission or attendance, it being the intent that the parties will consult and
cooperate with one another, and consider in good faith the views of one another, in connection with any such analyses, appearances,
meetings, discussions, presentations, memoranda, briefs, filings, arguments, and proposals. Each party shall give notice to the
other party with respect to any meeting, discussion, appearance or contact with any Governmental Authority or the staff or regulators
of any Governmental Authority, with such notice being reasonably sufficient to provide the other party with the opportunity to
attend and participate in such meeting, discussion, appearance or contact.

 

    	 	49	 

     

    

 

(v)
The Company shall cause at least one of the current managers of each of the Transferred Licensees and the Iowa Entity who are
listed as a manager with the applicable Cannabis Regulators to remain as a manager of such company for a minimum of ninety (90)
days after obtaining Regulatory Approval as required pursuant to each of the California Licensee Assignments or the Iowa Licensee
Assignments without cost or expense to Parent, the Company, the California Entities or the Iowa Entity.

 

Section
5.07 Amendments to Call Option Agreements.

 

(a)
Parent acknowledges and agrees that the Company is a party to certain option agreements as set forth in Section 1.01(rrrr)
of the Disclosure Schedule (the “Call Option Agreements”) with each of the Washington Entity Owners pursuant
to which the Company holds options (the “Options”) to purchase the Washington Entity Owners’ membership
interests in and to the Washington Entities. Each Washington Entity holds a Permit issued by the Washington State Liquor and Cannabis
Board that entitles the holder to operate a marijuana retail dispensary in the state of Washington. Simultaneously upon the Closing,
the Company and certain of the Washington Entity Owners as set forth on Section 5.07(a) of the Disclosure Schedule (collectively,
the “Licensee Interests”) will enter into an amendment to the applicable Call Option Agreements to provide
for the following amendments (collectively, the “Call Option Amendments”):

 

(i)
the aggregate purchase price to be paid by the Company shall be as follows, as may be applicable: for the Licensee Interests the
aggregate purchase price will be reduced to an aggregate of USD$9,299,436.88 (the “Interests Consideration”);
or, for certain assets of the Washington Entities the aggregate purchase price will be USD$12,382,110.41 (the “Asset
Consideration”) in each case payable in Multiple Voting Shares;

 

(ii)
in the event the options are exercised, the Interests Consideration, or Asset Consideration, as applicable, will be paid upon
the closing of the sale and purchase of the Licensee Interests or the sale and purchase of certain of the Washington Entities’
assets subject to regulatory approval as provided for in the Call Option Amendments which will result in the Company acquiring
100% of the Licensee Interests, or substantially all of the assets of each of the Washington Entities (in either case, the “WA
Store Closing”); and

 

(iii)
the aggregate number of Multiple Voting Shares to be issued to the Washington Entity Owners holding the Licensee Interests, or
to the Washington Entities, as applicable, at the WA Store Closing shall be equal to the Interests Consideration or Asset Consideration,
as applicable (after converting such amount of CAD$ based on the exchange rate of USD$:CAD$ reported by the Bank of Canada on
the day prior to the WA Store Closing), divided by the volume weighted average sales price for each share of HHR Stock during
the last 15 completed trading days prior to the WA Store Closing, and multiplied by 100 (the “WA Interests Consideration
Shares”). The WA Interests Consideration Shares shall be allocated among the Washington Entity Owners holding the Licensee
Interests as set forth in Section 5.07(a)(iii) of the Disclosure Schedule, or provided to the Washington Entities, as applicable.

 

(iv)
Such other terms and conditions as Parent deems appropriate and as are necessary to comply with any applicable Law.

 

Section
5.08 Assumption and Amendment of High Alpine Note. Parent acknowledges and agrees that the Company is a party to certain
Loan and Security Agreement entered into between the Company and High Alpine Investors, LLC, a Washington limited liability company
(“High Alpine”) dated as of February 21, 2019 in a principal amount that shall not exceed USD$25,000,000 (the
“High Alpine Loan”). Parent, the Company and High Alpine shall amend the High Alpine Loan in substantially
the form attached to this Agreement as Exhibit A, subject to approval of High Alpine (the “High Alpine Loan Amendment”)
whereby the High Alpine Loan shall be convertible, in whole or in part, at the option of either High Alpine or Parent, into 205,594
Multiple Voting Shares.

 

    	 	50	 

     

    

 

Section
5.09 Stockholder Approval. The Company shall use its reasonable best efforts to obtain, within 20 days following the execution
and delivery of this Agreement, adoption of this Agreement by the affirmative vote or consent of no less than 98% of the Company
Stockholders pursuant to a written consent of the Company Stockholders (the “Written Consent”). The materials
submitted to Company Stockholders in connection with the Written Consent shall include the recommendation of the Company’s
Board of Directors approving this Agreement; this Agreement and such other information reasonably determined by the Company’s
Board of Directors. Promptly following receipt of the Written Consent, the Company shall deliver a copy of such Written Consent
to Parent.

 

Section
5.10 Advisory Fees. Parent acknowledges that it or Merger Sub is solely responsible for paying any consideration owed to
its advisor or its Affiliates in connection with, or arising out of, this Agreement or the transactions contemplated hereby, and
Parent or Merger Sub shall pay any such consideration owed.

 

Section
5.11 Promptly following, but in no event more than ten Business Days after the Closing Date, in accordance with Section 262(d)(2)
of the DGCL, the Parent shall cause the Surviving Company to prepare and mail a notice (the “Stockholder Notice”)
to every Company Stockholder that did not execute the Written Consent. The Stockholder Notice shall (i) be a statement to the
effect that the Company Board unanimously determined that the Merger is advisable in accordance with Section 251(b) of the DGCL
and in the best interests of the Company Stockholders and unanimously approved and adopted this Agreement, the Merger and the
other transactions contemplated hereby, (ii) provide the Company Stockholders to whom it is sent with notice of the actions taken
in the Written Consent, including the approval and adoption of this Agreement, the Merger and the other transactions contemplated
hereby in accordance with Section 228(e) of the DGCL and the bylaws of the Company and (iii) notify such Company Stockholders
of their dissent and appraisal rights pursuant to Section 262 of the DGCL; and (iv) include the effective date of the Merger.
The Stockholder Notice shall include therewith a copy of Section 262 of the DGCL and all such other information as the Stockholder
Representative shall reasonably request, and shall be sufficient in form and substance to start the twenty (20) day period during
which a Company Stockholder must demand appraisal of such Company Stockholder’s Common Stock as contemplated by Section
262(d)(2) of the DGCL. All materials submitted to the Company Stockholders in accordance with this Section 5.11 shall be
subject to Stockholder Representative’s advance review and reasonable approval.

 

Article
VI

INDEMNIFICATION

 

Section
6.01 Survival.

 

(a)
The representations and warranties of the Company contained in this Agreement shall survive the Closing until the date that is
12 months after the Closing Date (the “General Survival Date”); provided, however, that (i) the representations
and warranties of the Company contained Section 3.01 (Organization and Authority; Execution; Enforceability), Section
3.02 (Subsidiaries), Section 3.03 (Capitalization) and Section 3.24 (No Brokers) (collectively, the “Company
Fundamental Representations”) shall survive the Closing indefinitely, and (ii) the representations and warranties of
the Company contained in Section 3.20 (Taxes) shall survive until 60 days after the expiration of the relevant statute
of limitations with respect to the underlying subject matter. If written notice of a claim has been given prior to the expiration
of the applicable representations and warranties by Parent to the Stockholder Representative, then the relevant representations
and warranties shall survive as to such claim, until such claim has been finally resolved.

 

    	 	51	 

     

    

 

(b)
The representations and warranties of Parent contained in this Agreement shall survive the Closing until the General Survival
Date; provided, however, that the representations and warranties of Parent contained in Section 4.01 (Organization and
Authority; Execution; Enforceability), Section 4.04 (Capitalization) and Section 4.11 (No Brokers) (collectively,
the “Parent Fundamental Representations”) shall survive indefinitely. If written notice of a claim has been
given prior to the expiration of the applicable representations and warranties by the Stockholder Representative to Parent, then
the relevant representations and warranties shall survive as to such claim, until such claim has been finally resolved.

 

(c)
The covenants and other agreements contained in this Agreement shall survive the Closing and remain in full force and effect until
fully performed in accordance with their terms.

 

(d)
No claim for indemnification may be asserted against either party for breach of any representation, warranty, covenant or agreement
contained herein, unless written notice of such claim is received by such party describing in reasonable detail, to the extent
practicable in light of facts then known, the facts and circumstances with respect to the subject matter of such claim on or prior
to the date on which the representation, warranty, covenant or agreement on which such claim is based ceases to survive as set
forth in this Section 6.01.

 

Section
6.02 Indemnification by the Company Stockholders. Subject to the limitations set forth in this Article VI, the Company
Stockholders (by virtue of the approval of the Merger by the Company Stockholders) severally in accordance with their respective
Pro Rata Share (as set forth in the Payment Spreadsheet), shall defend, indemnify and hold harmless Parent and its Affiliates
(including the Companies after the Closing), and their respective shareholders, partners, members, managers, officers, directors
and employees (each a “Parent Indemnified Party”) from and against any and all Losses, arising out of or resulting
from:

 

(a)
any inaccuracy in or breach of any of the representations or warranties made by the Company in this Agreement or any Ancillary
Agreement;

 

(b)
any breach or non-fulfillment of any covenant or agreement to be performed by the Company, any Company Stockholder, the Stockholder
Representative or any of their respective Affiliates pursuant to this Agreement or any Ancillary Agreement;

 

(c)
(i) all Taxes (or the non-payment thereof) not disclosed on the Closing Balance Sheet of the Companies with respect to any Pre-Closing
Tax Period and, (ii) with respect to Straddle Period, all Taxes (or the non-payment thereof) not disclosed on the Closing Balance
Sheet of the Companies with respect to the portion of such taxable year or period ending on and including the Closing Date; (iii)
all Taxes not disclosed on the Closing Balance Sheet of any member of an affiliated, consolidated, combined or unitary group of
which the Companies (or any predecessor of any of the foregoing) is or was a member on or prior to the Closing Date, including
pursuant to Treasury Regulation §1.1502-6 or any analogous or similar state, local, or non-U.S. law or regulation, and (iv)
any and all Taxes not disclosed on the Closing Balance Sheet of any Person imposed on any of the Companies or any of the Washington
Entities arising under the principles of transferee or successor liability or by contract or pursuant to any law, rule, or regulation,
which Taxes relate to an event or transaction occurring before the Closing;

 

    	 	52	 

     

    

 

(d)
any failure of any Company Stockholder to have good, valid and marketable title to the issued and outstanding shares of Company
Capital Stock issued in the name of such Company Stockholder, free and clear of all Liens;

 

(e)
any inaccuracy in the Payment Spreadsheet, as in effect from time to time;

 

(f)
the matters set forth on Section 6.02(f) of the Disclosure Schedule;

 

(g)
any Action by any Company Stockholder relating to such Person’s rights with respect to the Merger Consideration, or the
calculations and determinations set forth on the Payment Spreadsheet; and

 

(h)
any Action by any Company Stockholder who has properly exercised appraisal rights related to their Company Capital Stock in accordance
with Section 262 of the DGCL resulting in Losses that are in excess of the value of such Company’s Stockholder’s Pro
Rata Share of the Merger Consideration that such Company Stockholder would have received hereunder had such holders not been holders
of Dissenting Shares. Notwithstanding anything to the contrary provided for herein, the Company Stockholders shall be obligated
to pay any of Parent’s reasonable attorney’s fees and the cost of enforcing any right to indemnification hereunder
regardless of the amount of any recovery by a Company Stockholder under this Section 6.02(h).

 

Section
6.03 Indemnification by Parent. Subject to the limitations set forth in this Article VI, Parent shall defend, indemnify
and hold harmless the Company Stockholders and their respective Affiliates, shareholders, partners, members, managers, officers,
directors and employees (each a “Company Indemnified Party”) from and against any and all Losses, arising out
of or resulting from:

 

(a)
any inaccuracy in or breach of any of the representations or warranties made by Parent or Merger Sub in this Agreement or any
Ancillary Agreement;

 

(b)
any breach or non-fulfillment of any covenant or agreement to be performed by Parent or Merger Sub pursuant to this Agreement;
and

 

(c)
the Permitted Closing Liabilities.

 

Section
6.04 Limits on Indemnification. Notwithstanding any provision in this Agreement to the contrary, any claims an Indemnified
Party makes under this Article VI will be limited as follows:

 

(a)
With respect to claims and liability of the Company Stockholders, if any, under Section 6.02(a) through Section 6.02(h):

 

(i)
Except for Losses arising out of or resulting from fraud, willful misconduct, intentional misrepresentation or breaches of any
of the Company Fundamental Representations, such claims for indemnification shall be satisfied solely from, and shall be limited
to, the Indemnity Shares.

 

(ii)
With respect to Losses arising out of or resulting from fraud, willful misconduct, intentional misrepresentation or breaches of
any Company Fundamental Representations, the aggregate liability of the Company Stockholders shall be limited to the dollar amount
equal to the number of Merger Shares multiplied by the Parent Share Price. The parties acknowledge and agree that any indemnifiable
Losses arising under this Section 6.04(a)(ii) shall first be satisfied from the Indemnity Shares. The Company Stockholders
will be liable, if at all, on a several (and not joint) basis in accordance with their respective Pro Rata Share (as set forth
in the Payment Spreadsheet).

 

    	 	53	 

     

    

 

(b)
With respect to claims and liability of Parent, if any, under Section 6.03:

 

(i)
Except for Losses arising out of or resulting from fraud, willful misconduct, intentional misrepresentation or breaches of any
of the Parent Fundamental Representations, the aggregate liability of Parent shall not exceed the dollar amount equal to [***].

 

(ii)
With respect to Losses arising out of or resulting from fraud, willful misconduct, intentional misrepresentation or breaches of
any of the Parent Fundamental Representations, the aggregate liability of Parent shall not exceed the aggregate dollar amount
of [***].

 

(c)
Notwithstanding anything to the contrary contained herein, the Parent Indemnified Parties shall not be entitled to indemnification
for Losses under Section 6.02(a) through Section 6.02(h) (except for claims based on fraud, willful misconduct or intentional
misrepresentation, and except for claims for breaches of any Company Fundamental Representation) unless and until the aggregate
amount of indemnifiable Losses underlying such claims equals or exceeds a dollar amount equal to USD$[***] (the “Deductible”),
and then the Parent Indemnified Parties shall be entitled to indemnification for the amount of all such Losses in excess of the
Deductible subject to the limitation provided for in Section 6.04(a). The Company Indemnified Parties shall not be entitled
to indemnification pursuant to this Article VI (except for claims based on fraud, willful misconduct or intentional misrepresentation,
and except for claims for breaches of any Parent Fundamental Representation) unless and until the aggregate amount of indemnifiable
Losses underlying such claims equals or exceeds the Deductible, and then the Company Indemnified Parties shall be entitled to
indemnification for the amount of all such Losses in excess of the Deductible subject to the limitation provided for in Section
6.04(b).

 

(d)
For purposes of this Article VI, the representations and warranties of the Company and the Company Stockholders shall not
be deemed qualified by any references to any materiality, Company Material Adverse Effect or other similar qualification contained
in or otherwise applicable to such representation or warranty.

 

Section
6.05 Notice of Loss; Third Party Claims; Direct Claims. For purposes of this Article VI, the term “Indemnified
Party” means a Parent Indemnified Party or a Company Indemnified Party, as the case may be, and the term “Indemnifying
Party” means the Company Stockholders pursuant to Section 6.02 or Parent pursuant to Section 6.03, as
the case may be.

 

(a)
An Indemnified Party shall give the Indemnifying Party written notice of any claim which an Indemnified Party has determined has
given or could give rise to a right of indemnification under this Agreement stating the amount of the Loss, only to the extent
then known or estimated in good faith by the Indemnified Party, and containing a reference to the provisions of this Agreement
in respect of which such right of indemnification is claimed or arises; provided, however, that the failure to provide such notice
shall not release the Indemnifying Party from any of its obligations under this Article VI except to the extent that the
Indemnifying Party is prejudiced by such failure and shall not relieve the Indemnifying Party from any other obligation or Loss
that it may otherwise have to any Indemnified Party.

 

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(b)
If an Indemnified Party shall receive written notice of any Action, audit or demand (each, a “Third Party Claim”)
against it or which may give rise to a claim for Loss under this Article VI, within 45 days of the receipt of such notice,
the Indemnified Party shall give the Indemnifying Party notice of such Third Party Claim; provided, however, that the failure
to provide such notice shall not release the Indemnifying Party from any of its obligations under this Article VI except
to the extent that the Indemnifying Party is prejudiced by such failure and shall not relieve the Indemnifying Party from any
other obligation or Liability that it may have to any Indemnified Party otherwise than under this Article VI. If the Indemnifying
Party acknowledges in writing its obligation to indemnify the Indemnified Party hereunder against any Losses that may result from
such Third Party Claim, then the Indemnifying Party shall be entitled to assume and control the defense of such Third Party Claim
at its expense and through counsel of its choice if (i) the Indemnifying Party gives notice of its intention to do so to the Indemnified
Party within five days of the receipt of such notice from the Indemnified Party, (ii) the Indemnifying Party actively and diligently
defends such Third Party Claim, (iii) the Third Party Claim involves only claims for monetary damages and does not seek an injunction
or other equitable relief, (iv) the Third Party Claim does not relate to or otherwise arise in connection with Taxes or any criminal,
regulatory or statutory enforcement action and (v) the Indemnified Party does not reasonably believe that the Loss relating to
such claim for indemnification would exceed the maximum amount that such Indemnified Party could then be entitled to recover from
the Indemnifying Party; provided, however, that if there exists or is reasonably likely to exist a conflict of interest that would
make it inappropriate in the judgment of the Indemnified Party in its sole and absolute discretion for the same counsel to represent
both the Indemnified Party and the Indemnifying Party, then the Indemnified Party shall be entitled to retain its own counsel
in each jurisdiction for which the Indemnified Party determines counsel is required, at the expense of the Indemnifying Party.
In the event that the Indemnifying Party exercises the right to undertake any such defense against any such Third Party Claim
as provided above, the Indemnified Party shall reasonably cooperate with the Indemnifying Party in such defense and make available
to the Indemnifying Party, at the Indemnifying Party’s expense, all witnesses, pertinent records, materials and information
in the Indemnified Party’s possession or under the Indemnified Party’s control relating thereto as is reasonably required
by the Indemnifying Party (provided that no party shall be required to provide information to the extent it is subject to attorney-client
privilege or such information may be reasonably relevant to a direct claim among the parties). Similarly, in the event the Indemnified
Party is, directly or indirectly, conducting the defense against any such Third Party Claim, the Indemnifying Party shall reasonably
cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying Party’s
expense, all such witnesses, records, materials and information in the Indemnifying Party’s possession or under the Indemnifying
Party’s control relating thereto as is reasonably required by the Indemnified Party (provided that no party shall be required
to provide information to the extent it is subject to attorney-client privilege or may be reasonably relevant to a direct claim
among the parties). No such Third-Party Claim may be settled by the Indemnifying Party without the prior written consent of the
Indemnified Party which shall not be unreasonably withheld, conditioned or delayed.

 

(c)
Any claim by an Indemnified Party on account of a Loss which does not result from a Third-Party Claim (a “Direct Claim”)
shall be asserted by the Indemnified Party giving the Indemnifying Party prompt written notice thereof. The failure to give such
prompt written notice shall not, however, relieve the Indemnifying Party of from any of its obligations under this Article
VI except to the extent that the Indemnifying Party is actually and materially prejudiced by such failure and shall not relieve
the Indemnifying Party from any other obligation or Liability that it may have to any Indemnified Party otherwise than under this
Article VI. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail based on the facts
then known, and shall indicate the estimated amount, if reasonably practicable based on the facts then known, of the Loss that
has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice
to respond in writing to such Direct Claim. During such 30-day period, the Indemnifying Person and Indemnified Person shall use
good faith efforts to resolve the disputed matters. If the dispute is not resolved within such 30-day period, either party may
seek resolution of the dispute in a court having jurisdiction over the parties and the matter. If the Indemnifying Party does
not so respond within such 30-day period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the
Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject
to the provisions of this Agreement; provided, that, in no event shall any Indemnified Party be required to wait for such 30-day
period prior to pursuing any remedies available to such Indemnified Party pursuant to this Agreement.

 

    	 	55	 

     

    

 

Section
6.06 Indemnity Shares.

 

(a)
In order to satisfy the indemnification obligations of the Company Stockholders pursuant to Section 6.02, any Parent Indemnified
Party shall have the right to set off its indemnification claims against the Indemnity Shares if, and only if, the related Loss
is agreed or admitted to by the Stockholder Representative in writing or such Loss is finally adjudicated to be payable in accordance
with Section 6.05, in which case the Indemnity Shares will be reduced in accordance with Section 6.06(b).

 

(b)
Parent may reduce the number of Multiple Voting Shares constituting the Indemnity Shares to account for any Losses indemnifiable
pursuant to this Article VI accrued and finally determined in accordance with Section 6.06(a) prior to the time
Parent is otherwise required to deliver such Indemnity Shares pursuant to Section 6.06(c). Each Multiple Voting Share held
as an Indemnity Share shall be deemed to have a cash value equal to the Holdback Share Value.

 

(c)
Parent shall issue to the Company Stockholders the Multiple Voting Shares constituting the Indemnity Shares (to the extent so
remaining after deductions, if any, under Section 6.06(b) with respect to indemnification obligations and with respect
to the Cash Adjustment Amount) in accordance with the Payment Spreadsheet on the first Business Day following the 12-month anniversary
of the Closing Date (the “Indemnity Share Issuance Date”); provided, however, that if any claim pursuant to
this Article VI shall have been properly asserted by any Parent Indemnified Party in accordance with this Agreement on
or prior to the General Survival Date and remain pending on the Indemnity Share Issuance Date (any such claim, a “Pending
Claim”), (i) the number of Indemnity Shares issued to the Company Stockholders shall be the amount of Indemnity Shares,
minus that number of Indemnity Shares that is equal to the aggregate amount of such Pending Claim divided by the Holdback Share
Value, and (ii) any Multiple Voting Shares that remain as Indemnity Shares following the Indemnity Share Issuance Date in respect
of any such Pending Claim shall be issued to the Company Stockholders in accordance with the Payment Spreadsheet promptly upon
resolution or (if applicable) satisfaction of such Pending Claim to the extent the number of Indemnity Shares is not reduced upon
satisfaction of such Pending Claim pursuant to Section 6.06(b).

 

Section
6.07 Mitigation. Each Indemnified Party shall use reasonable efforts (determined without regard to any indemnification
rights, as applicable, of such Person hereunder (i.e., as if such Person had no such rights hereunder)) to mitigate any Losses
for which such Indemnified Party seeks indemnification, and each Indemnified Party shall, and shall cause its Representatives
and Affiliates to, use reasonable efforts to pursue any and all rights or benefits (including rights to be indemnified and held
harmless or rights to be reimbursed for, or to share, certain costs, expenses or Taxes) with respect to any matter that is indemnifiable
pursuant to Section 6.02 and Section 6.03.

 

    	 	56	 

     

    

 

Section
6.08 Effect of Investigation. The Company Stockholders shall not be liable under this Article VI for any Losses
based upon or arising out of any inaccuracy in or breach of any of the representations or warranties of the Company contained
in this Agreement if Parent had Knowledge of such inaccuracy or breach prior to the Closing.

 

Section
6.09 Exclusive Remedies. Except for claims based on fraud, willful misconduct or intentional misrepresentation, the indemnification
rights provided in this Article VI shall be the sole and exclusive remedy available to the parties hereto for any and all
Losses related to a breach of any of the terms, conditions, covenants, agreements, representations or warranties contained in
this Agreement, or any right, claim or action arising from the transactions contemplated hereby; provided, however, that the provisions
of this Section 6.09 shall not preclude any party from bringing an action for specific performance, injunction or any other
equitable remedy to the extent that such action or remedy is permitted by this Agreement.

 

Section
6.10 Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated
by the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

 

Article
VII

CONDITIONS
TO CLOSING; TERMINATION

 

Section
7.01 Conditions to the Obligations of Each Party. The obligations of Parent and Merger Sub and the Company to consummate
the transactions contemplated by this Agreement shall be subject to the fulfillment, at or prior to the Closing, of each of the
following conditions, unless waived in writing by all of the Parties:

 

(a)
The Company Fundamental Representations shall be true and correct in all respects (except where a Company Fundamental Representation
is qualified by materiality, in which case such representation shall be true and correct in all material respects) as of the Closing
Date with the same effect as though made at and as of such date.

 

(b)
The Company shall have delivered the Disclosure Schedule to Parent and Merger Sub.

 

Section
7.02 Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to consummate the
transactions contemplated by this Agreement shall be subject to the fulfillment or Parent’s waiver, at or prior to the Closing,
of each of the following conditions:

 

(a)
Each of the other representations and warranties of the Company contained in Article III shall be true and correct in all
material respects as of the Closing Date with the same effect as though made at and as of such date (except those representations
and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified
date), except where the failure of such representations and warranties to be true and correct would not have a Company Material
Adverse Effect.

 

    	 	57	 

     

    

 

(b)
The Company shall have performed and complied in all material respects with all agreements, covenants and conditions required
by this Agreement and each of the Ancillary Agreements to be performed or complied with by the Company prior to or on the Closing
Date.

 

(c)
From the date of this Agreement, there shall not have occurred any Company Material Adverse Effect, nor shall any event or events
have occurred that, individually or in the aggregate, with or without the lapse of time, could reasonably be expected to result
in a Company Material Adverse Effect.

 

(d)
No Governmental Order shall be in effect which restrains, hinders or prohibits or threatens to restrain, hinder or prohibit the
consummation of the transactions contemplated by this Agreement; and there shall not have been threatened, nor shall there be
pending, any Action by a Person or before any Governmental Authority which is reasonably likely to restrain, hinder, prohibit,
delay or challenge the validity of any of the transactions contemplated by this Agreement.

 

(e)
The Company shall have delivered to Parent duly executed counterparts to the Ancillary Agreements and such other documents and
deliverables set forth in Section 2.11.

 

(f)
Holders of no more than two percent (2.00%) of the outstanding Company Capital Stock as of immediately prior to the Effective
Time, in the aggregate, shall have exercised, or remain entitled to exercise, statutory appraisal rights pursuant to Section 262
of the DGCL with respect to such shares of Company Capital Stock.

 

Section
7.03 Conditions to the Obligations of the Company. The obligations of the Company to consummate the transactions contemplated
by this Agreement shall be subject to the fulfillment or the Company’s waiver, at or prior to the Closing, of each of the
following conditions:

 

(a)
The representations and warranties of Parent and Merger Sub contained in Article IV shall be true and correct in all respects
as of both the Effective Date and the Closing Date with the same effect as though made at and as of such date (except those representations
and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified
date), except where the failure of such representations and warranties to be true and correct would not have a material adverse
effect on Parent’s and Merger Sub’s ability to consummate the transactions contemplated hereby.

 

(b)
Parent and Merger Sub shall have performed and complied in all material respects with all agreements, covenants and conditions
required by this Agreement and each of the Ancillary Agreements to be performed or complied with by Parent and Merger Sub prior
to or on the Closing Date.

 

(c)
No Governmental Order shall be in effect which restrains, hinders or prohibits or threatens to restrain, hinder or prohibit the
consummation of the transactions contemplated by this Agreement; and there shall not have been threatened, nor shall there be
pending, any Action by a Person or before any Governmental Authority which is reasonably likely to restrain, hinder, prohibit,
delay or challenge the validity of any of the transactions contemplated by this Agreement.

 

(d)
Parent and Merger Sub shall have delivered to the Company evidence satisfactory to the Company that the transfer of the Closing
Shares to each Company Stockholder has been initiated as of the Closing Date, in addition to duly executed counterparts to the
Ancillary Agreements and such other documents and deliverables set forth in Section 2.12.

 

    	 	58	 

     

    

 

(e)
The Board of Directors of Parent (the “Parent’s Board”) shall have appointed Scott Atkins to serve as
a member of the Parent’s Board, subject to Governmental Authority approval required by Law, until the next meeting of Parent’s
stockholders and agree to nominate Mr. Atkins for reelection at the next shareholders’ meeting of the Parent’s stockholders.

 

Section
7.04 Termination. This Agreement may be terminated at any time prior to the Closing:

 

(a)
by the mutual written consent of the Company, the Stockholder Representative and Parent;

 

(b)
by Parent, upon written notice to the Company and the Stockholder Representative, if Parent is not then in material breach of
any provision of this Agreement and there has been a material breach, material inaccuracy in or material failure to perform any
representation, warranty, covenant or agreement made by the Company pursuant to this Agreement that would give rise to the failure
of any of the conditions specified in this Article VII and such breach, inaccuracy or failure has not been cured within
10 days of by the Company’s receipt of written notice of such breach from Parent;

 

(c)
by the Company, upon written notice to Parent, if the Company is not then in material breach of any provision of this Agreement
and there has been a material breach, material inaccuracy in or material failure to perform any representation, warranty, covenant
or agreement made by Parent or Merger Sub pursuant to this Agreement that would give rise to the failure of any of the conditions
specified in this Article VII and such breach, inaccuracy or failure has not been cured within 10 days of Parent’s
receipt of written notice of such breach from the Company;

 

(d)
by Parent or the Company, upon written notice to the other party, in the event that: (A) there shall be any Law that makes consummation
of the transactions contemplated by this Agreement illegal or otherwise prohibited; or (B) any Governmental Authority shall have
issued a Governmental Order restraining or enjoining the transactions contemplated by this Agreement, and such Governmental Order
shall have become final and non-appealable; or

 

(e)
by Parent or the Company, upon written notice to the other, if either party determines that the other party has not fulfilled
any of the conditions set forth in Section 7.01, Section 7.02, or Section 7.03 prior to the Outside Date.

 

Section
7.05 Effect of Termination. In the event of the termination of this Agreement in accordance with this Article VII,
this Agreement (other than Section 5.06(a), Article VI, Article VII, Article VIII, and any other provision
of this Agreement that by its terms survives termination of this Agreement) shall forthwith become void and there shall be no
liability on the part of any party hereto. The exclusive remedy of the parties hereto upon any proper termination of this Agreement
will be pursuant to Article VI.

 

    	 	59	 

     

    

 

Article
VIII

MISCELLANEOUS

 

Section
8.01 Stockholder Representative.

 

(a)
Each Company Stockholder hereby irrevocably appoints Fertile Valley, LLC as the Stockholder Representative and attorney-in-fact
to act on behalf of such Company Stockholder with respect to this Agreement and to take any and all actions and make any decisions
required or permitted to be taken by any Company Stockholder individually or by the Stockholder Representative pursuant to this
Agreement, including the exercise of the power to give and receive notices and communications in connection with this Agreement
and the transactions contemplated hereby, to take all actions on behalf of the Company Stockholders pursuant to this Agreement,
and to take all actions necessary or appropriate in the judgment of the Stockholder Representative for the accomplishment of the
foregoing. More specifically, the Stockholder Representative shall have the authority to make all decisions and determinations
and to take all actions (including agreeing to any amendments to this Agreement or any Ancillary Agreement to which it is a party
or to the termination hereof or thereof) required or permitted hereunder on behalf of each such Company Stockholder, and any such
action, decision or determination so made or taken shall be deemed the action, decision or determination of each such Company
Stockholder, and any notice, communication, document, certificate or information required (other than any notice required by Law
or under the Company’s Organizational Documents) to be given to any Company Stockholder hereunder or pursuant to any Ancillary
Agreement shall be deemed so given if given to the Stockholder Representative. Without limiting the generality of the foregoing,
the Stockholder Representative shall be authorized, in connection with the Closing, to execute all certificates, documents and
agreements on behalf of and in the name of the Company Stockholders necessary to effectuate the Closing and related transactions.
The Stockholder Representative shall be authorized to take all actions on behalf of the Company Stockholders in connection with
any claims made under Article VI of this Agreement, to defend or settle such claims, to use the Stockholder Representative
Shares to pay for Stockholder Representative Expenses (as further described in Section 8.01(f)), and to agree to the reduction
of the number of Multiple Voting Shares constituting the Holdback Shares in respect of such claims on behalf of the Company Stockholders.

 

(b)
The appointment of the Stockholder Representative shall be deemed coupled with an interest and shall be irrevocable, and Parent
and any other Person may conclusively and absolutely rely, without inquiry, upon any actions of the Stockholder Representative
as the acts of the Company Stockholders in all matters referred to in this Agreement. Each of the Company Stockholders hereby
ratifies and confirms all that the Stockholder Representative shall do or cause to be done by virtue of the appointment of the
Stockholder Representative as the Stockholder Representative of such Company Stockholder. The Stockholder Representative shall
act for the Company Stockholders on all of the matters set forth in this Agreement in the manner the Stockholder Representative
believes to be in the best interest of the Company Stockholders, but the Stockholder Representative shall not be responsible to
any such Company Stockholder for any loss or damage any such Company Stockholder may suffer by reason of the performance by the
Stockholder Representative of their duties under this Agreement, other than loss or damage arising from willful misconduct in
the performance of such duties. In no event shall the Stockholder Representative be liable to the Company Stockholders hereunder
or in connection herewith for any indirect, punitive, exemplary, special, incidental or consequential damages. The Stockholder
Representative shall be fully protected against the Company Stockholders in relying upon any written notice, demand, certificate
or document that they in good faith believe to be genuine, including facsimiles or copies thereof.

 

    	 	60	 

     

    

 

(c)
No Company Stockholder shall have the right to object to, dissent from, protest or otherwise contest any such decision or action
of the Stockholder Representative. The provisions of this Section 8.01, including the power of attorney granted by this
Section 8.01, are independent and severable, are irrevocable and coupled with an interest and shall not be terminated by
any act of any one Company Stockholder, or by operation of Law, whether by death or other event.

 

(d)
The Stockholder Representative may resign at any time, and may be removed for any reason or no reason by the vote of the holders
of a majority of the Company Capital Stock immediately prior to Closing; provided, however, in no event shall the Stockholder
Representative resign or be removed without the Company Stockholders having first appointed a new Stockholder Representative who
shall assume such duties immediately upon the resignation or removal of the Stockholder Representative. In the event of the death,
incapacity, resignation or removal of the Stockholder Representative, a new Stockholder Representative shall be appointed by the
vote of the holders of a majority of the Company Capital Stock immediately prior to Closing. Notice of such vote or a copy of
the written consent appointing such new Stockholder Representative shall be sent to Parent promptly following such vote or consent,
such appointment to be effective upon the date indicated in such consent; provided, that until such notice is received, Parent
shall be entitled to rely on the decisions and actions of the prior Stockholder Representative as described in this Section
8.01.

 

(e)
The Stockholder Representative shall not be liable to the Company Stockholders for actions taken pursuant to this Agreement, except
to the extent such actions shall have been determined by a court of competent jurisdiction to have constituted fraud, intentional
misconduct or bad faith (it being understood that any act done or omitted pursuant to the advice of counsel, accountants and other
professionals and experts retained by the Stockholder Representative shall be conclusive evidence of good faith). The Company
Stockholders shall indemnify and hold harmless the Stockholder Representative from and against, compensate him for, reimburse
him for and pay any and all Losses, arising out of and in connection with his activities as the Stockholder Representative under
this Agreement, including without limitation any travel expenses such as transportation, lodging and meals, and attorney fees
incurred in connection with his actions as the Stockholder Representative, in each case as such Loss is suffered or incurred;
provided, that in the event it is finally adjudicated that a Loss or any portion thereof was primarily caused by the fraud, intentional
misconduct or bad faith of the Stockholder Representative, the Stockholder Representative shall reimburse the Company Stockholders
the amount of such indemnified Loss attributable to such fraud, intentional misconduct or bad faith.

 

(f)
In order to satisfy Stockholder Representative Expenses, each Company Stockholder and Parent acknowledges and agrees that the
Stockholder Representative shall have the right, in its sole, absolute, and exclusive discretion, to demand that Parent issue
the number of Multiple Voting Shares that have a cash value equal to the Stockholder Representative Expenses divided by the Stockholder
Representative Share Value. Parent shall issue such shares to the Stockholder Representative within three (3) Business Days of
a demand by the Stockholder Representative. Parent shall issue to the Company Stockholders the Multiple Voting Shares constituting
the Stockholder Representative Shares (to the extent so remaining after any reduction under this Section 8.01(f)) in accordance
with the Payment Spreadsheet on the later of (A) the Indemnity Share Issuance Date, or (B) the date requested by the Stockholder
Representative, in the Stockholder Representative’s sole, absolute, and exclusive discretion. The parties specifically acknowledge
that the provisions of Section 8.04 shall apply in the event the Stockholder Representative is required to initiate legal
action to enforce the provisions of this Section 8.01(f). Notwithstanding the foregoing, if there is any Pending Claim
and the Indemnity Shares remaining are insufficient to equal the aggregate amount of such Pending Claim divided by the Stockholder
Representative Share Value, then any remaining Stockholder Representative Shares which are unclaimed by the Stockholder Representative
may be treated as if they were Indemnity Shares and the Parent shall comply with the requirements of Section 6.06(c) with
respect to such Stockholder Representative Shares.

 

    	 	61	 

     

    

 

Section
8.02 Governing Law. This Agreement shall be governed by, enforced, and construed under and in accordance with the Laws
of the State of Delaware, without giving effect to the principles of conflicts of law thereunder. Notwithstanding the foregoing,
in the event an order of judgment is issued which prevents or prohibits the application to this Agreement of the Laws of the State
of Delaware, then this Agreement shall be governed by, enforced, and construed under and in accordance with the Laws of the State
of Washington, without giving effect to the principles of conflicts of law thereunder.

 

Section
8.03 Notices.

 

(a)
Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally
delivered to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

	 	(i)	If to Parent or Merger Sub, to:

 

	 	Harvest
    Health and Recreation, Inc.
	 	1155
    W. Rio Salado Parkway, Suite 201
	 	Tempe,
    Arizona 85281
	 	Attn:	Nicole
    Stanton, Vice President and General Counsel,
	 	 	Brian
    Manning, Assistant General Counsel and
	 	 	Lazarus
    Rothstein, Assistant General Counsel
	 	Email: 	[***]

 

	 	(ii)	If to the Company, to:

 

Interurban
Capital Group Inc.

469
NW. Bowdoin Place

Seattle,
WA 98107

Email:
[***]

Attention:
Bill Kinzel

 

with
a copy to (which shall not constitute notice):

 

Miller
Nash Graham & Dunn LLP

2801
Alaskan Way, Suite 300

Seattle,
WA 98121

Attention:
Christine Masse

Email:
[***]

 

	 	(iii)	If to the Company Stockholders or the Stockholder Representative,
to:

 

Fertile
Valley, LLC

518
W. Riverside Suite 208

Spokane,
WA 99201

Email:
[***]

Name:
Bill Kinzel

 

    	 	62	 

     

    

 

with
a copy to (which shall not constitute notice):

 

Northwest
Venture Law

23205
E. Settler Drive

Liberty
Lake, WA 99019

Attention:
Paul Cartee

Email:
[***]

 

(b)
Any party may change its address for notices hereunder upon notice to each other party in the manner for giving notices hereunder.

 

(c)
Any notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch,
if sent by overnight courier, (iii) upon dispatch, if transmitted by email with return receipt requested and received and (iv)
three (3) days after mailing, if sent by registered or certified mail.

 

(d)
The Stockholder Representative hereby agrees that Bill Kinzel may accept service of process on his behalf for any Action against
the Company, any Company Stockholder or the Stockholder Representative in his capacity as such.

 

Section
8.04 Attorneys’ Fees. In the event that any party institutes any action or suit to enforce this Agreement or to secure
relief from any default hereunder or breach hereof, the prevailing party shall be reimbursed by the losing party for all costs,
including reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered
therein.

 

Section
8.05 Disclosure Schedule. Nothing in the Disclosure Schedule is intended to broaden the scope of any representation or
warranty contained in this Agreement or to create any covenant unless clearly specified to the contrary herein or therein. Inclusion
of any item on any Disclosure Schedule (a) does not represent a determination that such item is material nor shall it be deemed
to establish a standard of materiality, (b) does not represent a determination that such item did not arise in the ordinary course
of business and (c) shall not constitute, or be deemed to be, an admission to any third party concerning such item. Inclusion
of any item under any Section of the Disclosure Schedule will also be deemed a disclosure as to each other applicable Section
of the Disclosure Schedule, if any, to the extent such disclosure is reasonably apparent on its face. The Disclosure Schedule
includes descriptions of instruments or brief summaries of certain aspects of the Companies and the Business and operations. The
descriptions and brief summaries are not necessarily complete and are provided in the Disclosure Schedule to identify documents
or other materials previously delivered or made available.

 

Section
8.06 Third Party Beneficiaries. Except for the provisions of Article VI relating to indemnified parties, this Agreement
shall be binding upon and inure solely to the benefit of the parties hereto, the Company Stockholders, and their respective successors
and permitted assigns. Nothing herein, express or implied, is intended to or shall confer upon any other Person, including any
employee or former employee of any of the Companies or any of the Washington Entities, any legal or equitable right, benefit or
remedy of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.
Notwithstanding the foregoing, the parties hereto acknowledge and agree that the Company Stockholders are intended third party
beneficiaries of this Agreement and may enforce the terms and covenants contained herein, including, without limitation, the limitations
and exclusions set forth in Article VI hereof (including, without limitation, Section 6.04(c) hereof).

 

    	 	63	 

     

    

 

Section
8.07 Expenses. Except as otherwise specified in this Agreement, all costs and expenses, including fees and disbursements
of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated by
this Agreement shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section
8.08 Entire Agreement. This Agreement represents the entire agreement between the Parties relating to the subject matter
thereof and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.

 

Section
8.09 Amendment; Waiver. At any time prior to the Closing, this Agreement may be amended, modified, superseded, terminated
or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written
instrument executed by Parent and the Stockholder Representative. Every right and remedy provided herein shall be cumulative with
every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no
waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other
default then, theretofore, or thereafter occurring or existing. Neither any failure or delay in exercising any right or remedy
hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent
any party from enforcing any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a party
waives or otherwise affects any obligation of that party or impairs any right of the party giving such notice or making such demand,
including any right to take any action without notice or demand not otherwise required by this Agreement. No exercise of any right
or remedy with respect to a breach of this Agreement shall preclude exercise of any other right or remedy, as appropriate to make
the aggrieved party whole with respect to such breach, or subsequent exercise of any right or remedy with respect to any other
breach.

 

Section
8.10 Arm’s Length Bargaining; No Presumption Against Drafter. This Agreement has been negotiated at arm’s-length
by parties of equal bargaining strength, each represented by counsel or having had but declined the opportunity to be represented
by counsel and having participated in the drafting of this Agreement. This Agreement creates no fiduciary or other special relationship
between the parties hereto, and no such relationship otherwise exists. No presumption in favor of or against any party in the
construction or interpretation of this Agreement or any provision hereof shall be made based upon which Person might have drafted
this Agreement or such provision.

 

Section
8.11 Headings. The headings contained in this Agreement are intended solely for convenience and shall not affect the rights
of the parties hereto.

 

Section
8.12 Assignment. This Agreement may not be assigned by a party hereto by operation of Law or otherwise without the express
written consent of the other parties hereto (which consent may be granted or withheld in the sole discretion of such other parties),
except that (a) Parent shall be permitted to assign its rights and obligations hereunder to (i) any of its Affiliates, provided
that no such assignment shall relieve Parent of any of its obligations hereunder, and (ii) any purchaser of all or substantially
all of Parent’s assets or equity, and (b) the Parent Indemnified Parties shall be permitted to collaterally assign any or
all of their rights and obligations hereunder to any provider of debt financing to it or any of its Affiliates.

 

    	 	64	 

     

    

 

Section
8.13 Jurisdiction; Waiver of Jury Trial.

 

(a)
Each party hereto hereby waives, to the fullest extent permitted by applicable Law, any right it may have to a trial by jury in
respect of any Action arising out of this Agreement or the transactions contemplated hereby. Each party hereto (i) certifies that
no representative, agent or attorney of any other party has represented, expressly or otherwise, that such party would not, in
the event of any Action, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other parties hereto have
been induced to enter into this Agreement by, among other things, the mutual waiver and certifications in this this Section 8.13(a).

 

Section
8.14 Further Assurances. Each party shall execute and deliver such documents and take such action, as may reasonably be
considered within the scope of such party’s obligations hereunder, necessary to effectuate the transactions contemplated
by this Agreement.

 

Section
8.15 Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed by them in accordance with the terms hereof or were otherwise breached and that each party
hereto shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent breaches
of the provisions hereof and to enforce specifically the terms and provisions hereof, without the proof of actual damages, in
addition to any other remedy to which they are entitled at law or in equity. Each party agrees to waive any requirement for the
security or posting of any bond in connection with any such equitable remedy, and agrees that it will not oppose the granting
of an injunction, specific performance or other equitable relief on the basis that (a) the other party has an adequate remedy
at law, or (b) an award of specific performance is not an appropriate remedy for any reason at law or equity.

 

Section
8.16 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and
all of which taken together shall be but a single instrument. The execution and delivery of a facsimile or other electronic transmission
of a signature to this Agreement shall constitute delivery of an executed original and shall be binding upon the person whose
signature appears on the transmitted copy.

 

Section
8.17 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect
for so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to either party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	65	 

     

    

 

SIGNATURE
PAGE TO

AGREEMENT
AND PLAN OF MERGER AND REORGANIZATION

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

 

	 	Parent:
	 	 
	 	Harvest
    Health & Recreation, Inc.
	 	 	 
	 	By:	/s/
    Steve White
	 	Name:	Steve
    White
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	MERGER
    SUB:
	 	 
	 	ICG
    ACQUISITION CORP.
	 	 	 
	 	By:	/s/
    Steve White
	 	Name:	Steve
    White
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	COMPANY:
	 	 
	 	INTERURBAN
    CAPITAL GROUP, INC.
	 	 	 
	 	By:	/s/
    Ryan Kunkel
	 	Name:	Ryan
    Kunkel
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Stockholder
    Representative:
	 	 
	 	FERTILE
    VALLEY LLC
	 	 	 
	 	By:	/s/
    Daniel Reiner
	 	Name:	Daniel
    Reiner
	 	Title:	Manager

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