Document:

Exhibit 10.9 

 

SEVENTH AMENDMENT TO

AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

This SEVENTH AMENDMENT TO AMENDED AND
RESTATED LOAN AND SECURITY AGREEMENT, dated as of June 27, 2019 (this "Seventh Amendment"), is made and
entered into by and among HYDROFARM HOLDINGS LLC, a Delaware limited liability company ("Holdings"), HYDROFARM,
LLC, a California limited liability company ("Hydrofarm"), EHH HOLDINGS, LLC, a Delaware limited liability
company ("EHH"), and SUNBLASTER LLC, a Delaware limited liability company ("SunBlaster" and together
with Hydrofarm and EHH, each, a "U.S. Borrower" and collectively, the "U.S. Borrowers"), HYDROFARM
CANADA, LLC, a Delaware limited liability company ("Hydrofarm Canada"), EDDI'S WHOLESALE GARDEN SUPPLIES
LTD., a British Columbia company ("Eddi") and SUNBLASTER HOLDINGS ULC, a British Columbia unlimited liability
company ("Sunblaster Canada"; together with GSD and Eddi, each, a "Canadian Borrower" and collectively,
the "Canadian Borrowers"; and together with U.S. Borrowers, each a "Borrower" and collectively,
the "Borrowers" and together with Holdings and Hydrofarm Canada, each an "Obligor" and collectively
the "Obligors"), and BANK OF AMERICA, N.A., a national banking association, as administrative agent (in
such capacity, "Agent") for the financial institutions from time to time party to the Loan Agreement described
below (collectively, the "Lenders" and each individually a "Lender") and the Lenders signatory
hereto.

 

RECITALS

 

WHEREAS, the Obligors,
Agent, and the Lenders are parties to that certain Amended and Restated Loan and Security Agreement, dated as of November 8,
2017 (as has been or may be amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement"),
pursuant to which, among other things, Lenders agreed, subject to the terms and conditions set forth in the Loan Agreement, to
make certain loans and other financial accommodations to Borrowers.

 

WHEREAS, Holdings,
Hydrofarm Canada, and Agent are parties to that certain Amended and Restated Guaranty, dated as of November 8, 2017 (as has
been or may be amended, restated, supplemented or others modified from time to time, the "Guaranty"), pursuant
to which Holdings and Hydrofarm Canada unconditionally guaranteed Borrowers' prompt and full performance of their Obligations under
the Loan Agreement and the other Loan Documents.

 

WHEREAS, the Obligors
have requested that the Lenders and the Agent amend the Loan Agreement as set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing, the terms, covenants and conditions contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.     Definitions.
Unless otherwise defined herein, each capitalized term used herein shall have the meaning ascribed thereto in the Loan
Agreement.

 

     

     

    

 

SECTION 2.     Amendment
to Loan Agreement. The following definition in Section 1.1 of the Loan Agreement
is hereby amended and restated to read in its entirety as follows:

 

Revolver
Termination Date: July 10, 2019; provided, however, that, in each case, if such date is not a Business Day, the
Revolver Termination Date shall be the immediately preceding Business Day.

 

SECTION 3.     Conditions
Precedent. This Seventh Amendment shall become effective and be deemed effective as
of the date when, and only when, all of the following conditions have been satisfied as determined in the Agent's sole discretion:

 

(a)           the
Agent shall have received an executed counterpart of this Seventh Amendment duly executed by each of the Obligors and each of the
Lenders;

 

(b)           all
representations and warranties contained in this Seventh Amendment shall be true and correct in all material respects, except to
the extent such representations and warranties speak as to an earlier date, in which case the same are true, correct and complete
as to such earlier date;

 

(c)            no
Default or Event of Default shall have occurred and be continuing under the Loan Agreement or any of the other Loan Documents;

 

(d)           the
Term Loan Agent and each Term Loan Lender shall have consented to the execution of this Seventh Amendment; and

 

(e)           the
Obligors shall have paid all costs and expenses of the Agent (including legal fees and expenses) for which summary invoices have
then been delivered to Obligors (which delivery of such summary invoices shall not constitute or result in a waiver of any right
or privilege).

 

SECTION 4.     Representations
and Warranties. Each of the Obligors, jointly and severally, represents and warrants
(which representations and warranties shall survive the execution and delivery hereof) to the Lenders and the Agent that:

 

(a)           this
Seventh Amendment and each other agreement to be executed and delivered in connection herewith has been duly authorized, executed
and delivered by all necessary action on the part of each Obligor which is a party hereto or thereto and, if necessary, their respective
members or stockholders, as the case may be, and is in full force and effect as of the date hereof and the agreements and obligations
of Obligors contained herein and therein constitute (or when executed and delivered, will constitute) legal, valid and binding
obligations of Obligors enforceable against them in accordance with their terms, except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent transfer or conveyance, moratorium, or other similar laws relating to the enforcement of creditors'
rights generally and by general equitable principles;

 

(b)           neither
the execution, delivery and performance of this Seventh Amendment nor the consummation of any of the transactions
contemplated hereby or thereby (i) are in contravention of any applicable law or any indenture, agreement or undertaking
to which any Obligor is a party or by which any Obligor or its property is bound, or (ii) violates any provision
of the certificate of incorporation, certificate of formation, by-laws, operating agreement or other governing documents of
such Obligor;

 

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(c)            no
consent of any person or entity (including, without limitation, any of its equity holders or creditors), and no action of, or filing
with, any governmental or public body or authority is required to authorize, or is otherwise required in connection with, the execution,
delivery and performance of this Seventh Amendment;

 

(d)           as
of the date hereof and after giving effect to this Seventh Amendment, each of the representations and warranties of the Obligors
set forth in the Loan Agreement and the other Loan Documents are true and correct in all material respects, except to the extent
such representations and warranties speak as to an earlier date, in which case the same are true, correct and complete as to such
earlier date; and

 

(e)           no
Default or Event of Default exists under the Loan Agreement or any of the other Loan Documents.

 

SECTION 5.     Acknowledgment
and Reaffirmation Each Obligor, jointly and severally, hereby acknowledges, agrees,
confirms, reaffirms and stipulates:

 

(a)           (x) to
the validity, legality and enforceability of each of the guarantees of the Obligations set forth in the Loan Documents; (y) that
the reaffirmation of each of the guarantees of the Obligations set forth in the Loan Documents is a material inducement to the
Lenders and the Agent; and (z) that it has no defense to the enforcement of each of the guarantees of the Obligations set
forth in the Loan Documents and its obligations under each such guarantee shall remain in full force and effect until all the Obligations
have been paid in full;

 

(b)           (x) to
the validity, legality and enforceability of each of the Agent's Liens on the assets and property of each of the Obligors pursuant
to the Loan Documents; (y) that the reaffirmation of each of the Agent's Liens is a material inducement to the Lenders and
the Agent; and (z) that it has no defense to the enforcement of each of the Agent's Liens, and the Agent's Liens shall remain
in full force and effect until all the Obligations have been paid in full;

 

(c)           that
each Obligor hereby waives and releases any and all defenses, affirmative defenses, setoffs, claims, counterclaims, and causes
of action of any kind or nature which he has asserted, or might assert, against any Lender, the Agent or any of their respective
subsidiaries or affiliates, or any of the past, present or future officers, directors, contractors, employees, attorneys or agents
of any Lender, the Agent or any such subsidiary or affiliate, which in any way relate to or arise out of the Obligations, the Agent's
Liens or any of the Loan Documents;

 

(d)           that
each Obligor consents to the execution and delivery of this Seventh Amendment and agrees and acknowledges that the liability of
each Obligor under each of the Loan Documents, and the existence, creation, perfection or enforceability of any of the Agent's
Liens, shall not be diminished in any way by the execution and delivery of this Seventh Amendment or by the consummation of any
of the transactions contemplated hereby or thereby;

 

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(e)           that
all notices required under the Loan Documents to be given by the Lenders or the Agent have been given by the Lenders
or the Agent or validly waived, including, without limitation, all notices of default, and all rights and/or opportunities to
cure related thereto have expired or lapsed;

 

(f)            except
as expressly set forth herein, neither any Lender nor the Agent has agreed to (and has no obligation whatsoever to
discuss, negotiate or agree to) any restructuring, modification, amendment, waiver or forbearance with respect to the
Obligations or any of the terms of the Loan Documents;

 

(g)           no
understanding with respect to any other restructuring, modification, amendment, waiver or forbearance with respect to
the Obligations or any of the terms of the Loan Documents shall constitute a legally binding agreement or contract, or have
any force or effect whatsoever, unless and until reduced to writing and signed by authorized representatives of each Obligor,
each Lender and the Agent; and

 

(h)           the
execution and delivery of this Seventh Amendment has not established any course of dealing between the parties hereto
or created any obligation or agreement of any Lender or the Agent with respect to any future restructuring, modification,
amendment, waiver or forbearance with respect to the Obligations or any of the terms of the Loan Documents.

 

SECTION 6.     Ratification;
Waiver of Defenses; Indemnity and Release.

 

(a)           Ratification.
The Loan Documents remain in full force and effect and are hereby ratified and affirmed by each of the Obligors. Each
of the Obligors, jointly and severally,(i) confirms and agrees that it is truly and justly indebted to the Lenders and the
Agent in the aggregate amount of the Obligations without defense, counterclaim or offset of any kind whatsoever; and (ii) reaffirms
and admits the validity and enforceability of the Loan Documents.

 

(b)           Release.

 

(i)            Each
of Obligors, jointly and severally, on behalf of itself and each of its Subsidiaries and affiliates, hereby waives, releases and
discharges each Lender and the Agent, and all of the directors, officers, employees, attorneys, agents, successors and assigns
of each Lender and the Agent, from any and all claims, demands, actions, causes of action, damages, costs, expenses and liabilities,
known or unknown, anticipated or unanticipated, suspected or unsuspected, asserted or unasserted, fixed, contingent or conditional,
at law or in equity, arising out of or in any way relating to the Loan Documents or any documents, agreements, dealings or other
matters connected with the Loan Documents, in each case to the extent arising (x) on or prior to the date hereof or (y) out
of, or relating to, any actions, dealings or matters occurring on or prior to the date hereof. The waivers, releases, and discharges
in this Section 6 shall be effective on the date hereof regardless of any other event that may occur or not occur after
the date hereof.

 

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(ii)            It
is the intention of each Obligor that this Seventh Amendment and the release set forth above shall constitute a full and final
accord and satisfaction of all claims that may have or hereafter be deemed to have against Releasees as set forth herein. In furtherance
of this intention, each Obligor, on behalf of itself and each other Releasor,expressly waives any statutory or common law provision
that would otherwise prevent the release set forth above from extending to claims that are not currently known or suspected to
exist in any Releasor's favor at the time of executing this Seventh Amendment and which, if known by Releasors, might have materially
affected the agreement as provided for hereunder. Each Obligor on behalf of itself and each other Releasor, acknowledges that
it is familiar with Section 1542 of California Civil Code:

 

A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

(iii)            Each
Obligor, on behalf of itself and each other Releasor, waives and releases any rights or benefits that it may have under Section 1542
to the full extent that it may lawfully waive such rights and benefits, and each Obligor, on behalf of itself and each other Releasor,
acknowledges that it understands the significance and consequences of the waiver of the provisions of Section 1542 and that
it has been advised by its attorney as to the significance and consequences of this waiver.

 

(iv)            Each
Obligor understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and
may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted
in breach of the provisions of such release.

 

(v)             Each
Obligor agrees that no fact, event, circumstance, evidence, or transaction which could now be asserted or which may hereafter be
discovered shall affect in any manner the final, absolute, and unconditional nature of the release set forth above.

 

(vi)            The
waivers, releases, and discharges in this Seventh Amendment shall be effective on the date hereof regardless of any other event
that may occur or not occur after the date hereof.

 

(c)            Indemnity.
In furtherance of its Obligations under Section 14.2 of the Loan Agreement, each of the Obligors, jointly and severally, agrees
to further defend, protect, indemnify and hold harmless each Lender and the Agent and all of their respective officers, directors,
employees, attorneys, consultants and agents (collectively called the "Indemnitees") from and against any and
all losses, damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including, without limitation, reasonable
fees, costs and expenses of outside counsel) incurred by such Indemnitees, whether direct, indirect or consequential, as a result
of or arising from or relating to or in connection with any of the following: (i) the execution or performance or enforcement
of this Seventh Amendment, any other Loan Document or any other document executed in connection with the transactions contemplated
by this Seventh Amendment; or (ii) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether
or not any Indemnitee is a party thereto. This indemnity shall survive the repayment of the Obligations and the discharge of the
liens granted under the Loan Documents.

 

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(d)           No
Waiver. This Seventh Amendment shall be limited precisely as written and, except as expressly provided herein, shall not be
deemed (i) to be a consent granted pursuant to, or a (other than as set forth in Section 6) waiver, modification
or forbearance of, any term or condition of any of the Loan Documents or a waiver of any Default or Event of Default under any
of the Loan Documents, whether or not known to a Lender or the Agent, or (ii) to prejudice any right or remedy which a Lender
or the Agent may now have or have in the future under or in connection with the Loan Documents or any of the instruments or agreements
referred to therein. The Loan Documents shall continue in full force and effect and are hereby ratified and confirmed.

 

(e)           Waiver
of Defense. The Obligors, jointly and severally, agree that each Lender and the Agent has no obligation to enter into any
amendment or modification of the terms and provisions of any Loan Document, and any of the same shall be within the sole discretion
of each Lender and the Agent. Each of the Obligors, jointly and severally, acknowledge and agree, as a condition of the Lenders
and the Agent entering into this Seventh Amendment, that it shall not raise any claim, cause of action or defense based upon any
allegations of failure of any Lender or the Agent to do or agree to do any of the foregoing, or failure of any Lender or the Agent
to negotiate in good faith to accomplish any of the same.

 

(f)            Waiver
of Jury Trial Right and Other Matters. BORROWERS AND THE OTHER OBLIGORS EACH HEREBY WAIVES (i) ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS SEVENTH AMENDMENT, THE OTHER
LOAN DOCUMENTS AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY AND THEREBY, WHICH WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING
WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE; (ii) PRESENTMENT, DEMAND AND PROTEST, AND NOTICE OF PRESENTMENT, PROTEST,
DEFAULT, NONPAYMENT, MATURITY, RELEASE WITH RESPECT TO ALL OR ANY PART OF THE OBLIGATIONS OR ANY COMMERCIAL PAPER, ACCOUNTS,
CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY ANY LENDER PARTY ON WHICH BORROWERS
OR ANY OTHER OBLIGOR MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS WHATEVER SUCH LENDER PARTY MAY DO IN
THIS REGARD; (iii) NOTICE PRIOR TO TAKING POSSESSION OR CONTROL OF THE COLLATERAL, THE OTHER COLLATERAL OR ANY BOND OR SECURITY
THAT MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING ANY LENDER PARTY TO EXERCISE ANY OF THEIR RESPECTIVE RIGHTS AND REMEDIES;
(iv) THE BENEFIT OF ALL VALUATION, APPRAISEMENT AND EXEMPTION LAWS AND ALL RIGHTS WAIVABLE UNDER ARTICLE 9 OF THE UNIFORM COMMERCIAL
CODE; (v) ANY RIGHT BORROWERS OR ANY OTHER OBLIGOR MAY HAVE UPON PAYMENT IN FULL OF THE OBLIGATIONS TO REQUIRE ANY LENDER
PARTY TO TERMINATE ITS SECURITY INTEREST IN THE COLLATERAL, OTHER COLLATERAL OR IN ANY OTHER PROPERTY OF BORROWERS OR ANY OTHER
OBLIGOR UNTIL TERMINATION OF THE AGREEMENT IN ACCORDANCE WITH ITS TERMS AND THE EXECUTION BY BORROWERS, AND BY ANY PERSON WHO
PROVIDES FUNDS TO BORROWERS THAT ARE USED IN WHOLE OR IN PART TO SATISFY THE OBLIGATIONS, OF AN AGREEMENT INDEMNIFYING ANY
OR ALL OF THE LENDER PARTIES FROM ANY LOSS OR DAMAGE ANY SUCH PARTY MAY INCUR AS THE RESULT OF DISHONORED CHECKS OR OTHER
ITEMS OF PAYMENT RECEIVED BY SUCH LENDER PARTY FROM BORROWERS, OR ANY ACCOUNT DEBTOR AND APPLIED TO THE OBLIGATIONS AND
RELEASING AND INDEMNIFYING, IN THE SAME MANNER AS DESCRIBED IN SECTION 6 OF THIS SEVENTH AMENDMENT, THE RELEASEES FROM
ALL CLAIMS ARISING ON OR BEFORE THE DATE OF SUCH TERMINATION STATEMENT; AND (vi) NOTICE OF ACCEPTANCE HEREOF, AND BORROWERS
AND THE OTHER OBLIGORS EACH ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO AGENT'S AND THE OTHER LENDER
PARTIES' ENTERING INTO THIS SEVENTH AMENDMENT AND THAT SUCH PARTIES ARE RELYING UPON THE FOREGOING WAIVERS IN THEIR FUTURE DEALINGS
WITH BORROWERS AND THE OTHER OBLIGORS. BORROWERS AND THE OTHER OBLIGORS EACH WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THE
FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS SEVENTH AMENDMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

 

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(g)           Alternative
Dispute Resolution under California Law.

 

(i)            The
reference provisions of this Section 6(g) will be applicable only if the jury trial waiver set forth in Section 6(f) hereof
is declared invalid or unenforceable and the Agent determines in its sole discretion to proceed as set forth in this Section 6(g).

 

(ii)            Other
than (I) nonjudicial foreclosure of security interests in real or personal property, (II) the appointment of a receiver,
or (III) the exercise of other provisional remedies (any of which may be initiated pursuant to applicable law), each controversy,
dispute or claim (each, a "Disputed Claim") between any or all of the parties hereto arising out of or relating to the
Loan Documents, which Disputed Claim is not settled in writing within 30 days after the "Claim Date" (the date on which
a party subject to the Loan Documents gives written notice to the other parties that a Disputed Claim exists), will be resolved
by a reference proceeding in California in accordance with the provisions of Section 638 et seq. of the California Code of
Civil Procedure, or their successor sections ("CCP"), which shall constitute the exclusive remedy for the resolution
of any Disputed Claim concerning the Loan Documents, including whether the Disputed Claim is subject to the reference proceeding.
Except as set forth in this Section 6(g), the parties hereto waive the right to initiate legal proceedings against each other
concerning such Disputed Claims. Venue for these reference proceedings will be in the courts of the State of California sitting
in Los Angeles County or such other venue as the parties may agree (the "Court").

 

(iii)            In
the event that the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted),
any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration.
The arbitration will be conducted by a retired judge of the Court, in accordance with the California Arbitration Act § 1280
through § 1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall
apply to any such arbitration proceeding.

 

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SECTION 7.     No
Novation; Reservation of Rights.

 

(a)           No
Novation. This Seventh Amendment is not intended to be, and shall not be deemed or construed to be, a
satisfaction, reinstatement, novation, or release of the Loan Documents or any of the Obligations. Neither this Seventh
Amendment nor any payments made or other actions taken pursuant to this Seventh Amendment shall be deemed to cure any
defaults under any of the Loan Documents, it being the intention of the parties hereto that all Obligations are and shall
remain payable in accordance with the terms and conditions of the Loan Agreement and this Seventh Amendment.

 

(b)           Reservation
of Rights. Each Lender and the Agent reserves the right, in their sole discretion, to exercise any or all rights
or remedies under the Loan Documents, applicable law and otherwise as a result of any Events of Default, arising under the
Loan Documents that may be continuing on the date hereof or any Default or Event of Default arising under the Loan Documents
that may occur after the date hereof, and neither any Lender nor the Agent has waived any of such rights or remedies and
nothing in this Seventh Amendment, and no delay on any Lender's or the Agent's part in exercising such rights or remedies,
should be construed as a waiver of any such rights or remedies.

 

(c)           Notwithstanding
anything to the contrary set forth herein, nothing in this Seventh Amendment shall prohibit, restrict or otherwise
limit the right or ability of any Lender or the Agent to take any actions that a Lender or the Agent may take under the Loan
Documents, at law, in equity or otherwise to preserve and protect any assets or properties of any Obligor that are subject to
the Agent's Liens or the interests (including the Agent's Liens) of the Lenders and the Agent in any such assets or
properties, including, without limiting the generality of the foregoing, (i) the filing of actions, or the defending of
or intervention in actions (such as foreclosure proceedings) brought by any person or entity (including any Obligor),
relating to any such assets or properties or the interests of the Lenders and the Agent therein, (ii) the sending of
notices to any persons or entities concerning the existence of security interests or liens in favor of the Lenders and the
Agent relating to any such assets or properties or (iii) the filing of financing statements, and the taking of any other
required actions, to perfect or continue the perfection of the Agent's Liens in such assets or properties.

 

(d)          The
Obligors acknowledge and agree that it shall be an immediate Event of Default under the Loan Documents if (i) any
Obligor fails to comply with, or otherwise breaches, any of the obligations or undertakings of such Obligor set forth in this
Seventh Amendment or (ii) any representation or warranty of any Obligor set forth herein fails to be true and correct in
all respects.

 

SECTION 8.     Further
Assurances. Each Obligor hereby agrees that each Obligor shall take such
further action and shall execute and deliver such additional documents and instruments (in recordable form, if requested) as
the Lenders or the Agent may reasonably request to effectuate the purposes and terms of this Seventh Amendment and each of
the other Loan Documents, including, without limitation, any such instruments, assignments, conveyances or other documents as
the Lenders or the Agent reasonably requests to perfect or continue the Agent's Liens on any assets or properties of any
Obligor.

 

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SECTION 9.    Counterparts.
This Seventh Amendment may be executed by the parties hereto individually
or in combination, in one or more counterparts, each of which shall be an original and all of which shall constitute one and the
same agreement. Delivery of an executed counterpart of a signature page to this Seventh Amendment by telecopier or electronic
transmission (in pdf format) shall be effective as delivery of a manually executed counterpart of this Seventh Amendment.

 

SECTION 10. 
Successors and Assigns. The provisions of this Seventh Amendment shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

 

SECTION 11. 
Severability. If any provision of this Seventh Amendment shall be held invalid or unenforceable in whole or in part
in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or enforceability
without in any manner affecting the validity or enforceability of such provision in any other jurisdiction or the remaining provisions
of this Seventh Amendment in any jurisdiction.

 

SECTION 12. Governing Law. THIS SEVENTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. ANY DISPUTE ARISING OUT OF OR CONCERNING
THE TERMS OF THIS SEVENTH AMENDMENT SHALL BE RESOLVED IN A COURT OF COMPETENT JURISDICTION LOCATED IN NEW YORK COUNTY, NEW YORK,
USA, WHICH SHALL BE THE EXCLUSIVE FORUM FOR THE RESOLUTION OF ANY SUCH DISPUTE.

 

SECTION 13. 
Expenses. The Obligors, joint and severally, agree to pay, or reimburse, the Agent for all expenses incurred in connection
with the preparation and negotiation of this Seventh Amendment and related agreements and instruments and the transactions contemplated
hereby, including, but not limited to, the fees and expenses of counsel to the Agent.

 

SECTION 14. 
Miscellaneous. The parties hereto shall, at any time and from time to time following the execution of this Seventh Amendment,
execute and deliver all such further instruments and take all such further action as may be reasonably necessary or appropriate
in order to carry out the provisions of this Seventh Amendment.

 

SECTION 15. 
Headings. Section headings in this Seventh Amendment are included for convenience of reference only and are not
to affect the construction of, or to be taken into consideration in interpreting, this Seventh Amendment.

 

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SECTION 16.  Entire
Agreement. This Seventh Amendment embodies the entire agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreement and understandings relating to the subject matter hereof. All prior
statements, representations and warranties, if any, of any Lender or the Agent in respect of the subject matter hereof, and
all prior drafts of this Seventh Amendment, are totally superseded and merged into this Seventh Amendment, which represents
the final and sole agreement of the parties hereto with respect to the matters which are the subject hereof. Each of the
Obligors hereby acknowledges and agrees that the execution and delivery of this Seventh Amendment has not established any
course of dealing between the parties hereto.

 

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blank intentionally]

 

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IN WITNESS WHEREOF,
this Seventh Amendment has been executed and delivered as of the date set forth above.

	 
	OBLIGORS:	HYDROFARM HOLDINGS LLC,
	 	a Delaware limited liability company
	 
	 	By:	/s/ Peter Wardenburg	 
	 	Name: Peter Wardenburg
	 	Title:   Manager

 

	 	Address:	210 Shields Court
	 	 	Markham, ON L3R 8V2 Canada
	 	Attn:	Michael Serruya

 

	 	HYDROFARM, LLC,
	 	a California limited liability company
	 	 
	
	 	By:	/s/ Peter Wardenburg	 
	 	Name: Peter Wardenburg
	 	Title:   President and Chief Executive Officer

 

	 	Address:	 2249 S. McDowell Boulevard
	 	 	Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

	 	EHH HOLDINGS, LLC,
	 	a Delaware limited liability company
	 
	 	By:	/s/ Peter Wardenburg	 
	 	Name: Peter Wardenburg
	 	Title:   Manager

 

	 	Address:	 2249 S. McDowell Boulevard
	 	 	Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

	 	SUNBLASTER LLC,
	 	a Delaware limited liability company
	 
	 	By:	/s/ Peter Wardenburg	 
	 	Name: Peter Wardenburg
	 	Title:   President

 

	 	Address:	 2249 S. McDowell Boulevard
	 	 	Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

    

     

    

 

	 	HYDROFARM CANADA, LLC,
	 	a Delaware limited liability company
	 
	 	By:	/s/ Peter Wardenburg	 
	 	Name: Peter Wardenburg
	 	Title:   President

 

	 	Address:	 2249 S. McDowell Boulevard
	 	 	Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

	 	SUNBLASTER HOLDINGS ULC,
	 	a  British Columbia unlimited liability company
	 
	 	By:	/s/ Jeffrey Peterson	 
	 	Name: Jeffrey Peterson
	 	Title:   Director

 

	 	Address:	 2249 S. McDowell Boulevard
	 	 	Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

 

	 	EDDI’S WHOLESALE GARDEN SUPPLIES LTD.,
	 	a  British Columbia company
	 
	 	By:	/s/ Peter Wardenburg	 
	 	Name:
	 	Title: 

 

	 	Address:	 2249 S. McDowell Boulevard
	 	 	Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

    

     

    

 

	AGENT AND LENDERS:	BANK OF AMERICA, N.A.,
	 	as Agent and Lender
	 	 
	 	By:	/s/ Matthew Van Steenhuyse	 
	 	Name: Matthew Van Steenhuyse
	 	Title:   Senior Vice President
	 	 
	 	Address:
	 	Bank of America, N.A.
	 	333 S. Hope St, Suite 1900
	 	Los Angeles, CA 90071
	 	Attn: Matthew Van Steenhuyse
	 	Facsimile: (877) 207-2581

 

    

     

    

 

	 	BANK OF AMERICA, N.A. (acting through its Canada branch),
	
	 	as Canadian Lender
	 	 
	 	By:	/s/ Sylwia Durkiewicz	 
	 	Name: Sylwia Durkiewicz
	 	Title:   Vice President
	 
	 	Address:
	 	181 Bay Street, Suite 400
	 	Toronto, ON, M5J 2V8
	 	Attn: Sylwia Durkiewicz
	 	Facsimile: (312) 453-4041Exhibit 10.10

 

PAYOFF LETTER

 

July 11, 2019

 

Hydrofarm Holdings, LLC

Attention: Jeff Peterson

Chief Financial Officer

2249 S. McDowell Ext.

Petaluma, CA 94954

 

		Re:	Termination of Senior Credit
Facility

 

Ladies and Gentlemen:

 

Reference is made to that certain Amended
and Restated Loan and Security Agreement dated as of November 8, 2017 (as amended, modified, extended, restated, replaced,
or supplemented prior to the date hereof, the "Loan Agreement"), by and among Hydrofarm Holdings, LLC, a Delaware
limited liability company ("Holdings"), Hydrofarm, LLC, a California limited liability company ("Hydrofarm"),
EHH Holdings, LLC, a Delaware limited liability company ("EHH"), Sunblaster LLC, a Delaware limited liability company
("SunBlaster"), and WJCO LLC, a Colorado limited liability company ("WJCO"; together with Hydrofarm,
EHH, SunBlaster and any other party joined hereto as a U.S. Borrower, each, a "U.S. Borrower" and collectively,
the "U.S. Borrowers"), GS Distribution, Inc., a British Columbia company ("GSD"), EWGS Distribution, Inc.,
a British Columbia company ("EWGS"), Eddi's Wholesale Garden Supplies Ltd., a British Columbia company ("Eddi")
and Sunblaster Holdings ULC, a British Columbia unlimited liability company ("Sunblaster Canada": together with
GSD and Eddi and any other party joined hereto as a Canadian Borrower, each, a "Canadian Borrower" and collectively,
the "Canadian Borrowers"; and together with U.S. Borrowers, each a "Borrower" and collectively,
the "Borrowers"), the other parties from time to time signatory hereto as Obligors, the financial institutions
from time to time party thereto as lenders (each, a "Lender" and collectively, the "Lenders")
and Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the "Agent"). Capitalized terms
used herein without definition have the meanings given to them in the Existing Credit Agreement.

 

Agent understands that on July 9,
2019 (the "Payoff Date"), the Borrowers intend to cause all indebtedness, liabilities and other obligations
(other than contingent reimbursement obligations with respect to the Existing Letters of Credit (as defined below)) of the Borrowers
to the Lenders and/or Agent owing under the Loan Documents, including, without limitation, all principal, accrued interest, costs,
expenses and fees outstanding, including, without limitation, reasonable attorneys' fees, costs and expenses, to be repaid in
full, and terminate the Revolver Commitments, the Loan Agreement and the other Loan Documents.

 

     

     

    

 

Notwithstanding the termination of the
Credit Facility, the Existing Credit Agreement and the other Loan Documents contemplated herein, each of the outstanding Letters
of Credit (the "Existing Letters of Credit") issued by the Issuing Bank under the Existing Credit Agreement,
as more specifically set forth on Schedule 1 hereto, will remain outstanding after the Payoff Date in accordance with their
respective terms (without giving effect to any extensions or renewals thereof) so long as such Existing Letters of Credit are
fully cash collateralized in an amount of at least 105% of the face amount of the Existing Letters of Credit to secure the reimbursement
obligations of the Obligors (and its successors and assigns) with respect to the Existing Letters of Credit (such amount necessary
to so fully cash collateralize the Existing Letters of Credit, the "Cash Collateral Amount") pursuant to a cash
collateral account agreement between the Obligors and the Issuing Bank in all respects satisfactory to the Issuing Bank (the "Cash
Collateral Agreement"). The Payoff Amount (as defined below) does not include (a) contingent reimbursement obligations
of the Obligors with respect to any drawings or presentations made under the Existing Letters of Credit and (b) letter of
credit fees due after the Payoff Date in connection with the Existing Letters of Credit. The parties hereto acknowledge and agree
that the Issuing Bank will return the Cash Collateral Amount (deposited pursuant to the Cash Collateral Agreement) to an Obligor
(or its successors and assigns) upon the earlier of (i) the return of the Existing Letters of Credit to the Issuing Bank
for cancellation from the beneficiary thereof and (ii) the expiration of the Existing Letters of Credit and the rights of
the beneficiary thereof to draw on such Existing Letters of Credit.

 

The Cash Collateral Amount, the amount
of the Deposit (as defined below), the total principal balance of the loans and advances made by the Lenders to or for the benefit
of the Borrowers under the Loan Agreement, together with all accrued but unpaid interest thereon, and the total amount of all
fees, costs, expenses and other amounts owed by the Borrowers with respect to the Loan Agreement (other than contingent reimbursement
obligations with respect to the Existing Letters of Credit) and all other Loan Documents, if paid on the Payoff Date by 11:00
a.m. (Pacific Time) (the "Payoff Time"), will be as follows (the "Payoff Amount"):

 

	Principal:	 	$	25,762,699.29	 
	Interest:	 	$	50,398.74	 
	Fees:	 	$	2,492.34	 
	Deposit (TRSG exposure):	 	$	160,000.00	 
	Breakage Costs:	 	$	0.00	 
	Existing Letters of Credit
    (cash collateralized at 105%)	  	$	840,000.00	  
	 	 	 	 	 
	Payoff Amount:	 	$	26,815,590.37	 
	 	 	 	 	 
	Legal Fees	 	$	50,996.00	 

 

If payment of the Payoff Amount is not
made by the Payoff Time on the Payoff Date, the Payoff Amount will be recalculated to include an additional $5,726.51 per day
for each day thereafter in accordance with the provisions of the Loan Agreement (the "Per Diem Amount"); provided
that Agent receives the Payoff Amount together with all applicable Per Diem Amounts no later than 11:00 a.m. (Pacific Time)
on July 11, 2019 (the "Expiration Time") after which time this letter agreement shall have no further force
or effect. The Borrowers hereby agree not to request additional Revolver Loans or Letters of Credit under the Loan Agreement on
or after the date hereof through the Expiration Time.

 

    2

     

    

 

Agent hereby instructs the Obligors to
pay or cause to be paid the Payoff Amount (other than the Legal Fees) by wire transfer, in immediately available funds, to the
following account in accordance with the following wire transfer instructions:

 

	Bank:	Bank of America, N.A.
	 	ABA#:	026009593
	 	Account #:	936-933-7800
	 	Account Name:	Bank of America - Southwest Collection
	 	Final Credit to:	Hydrofarm

 

Agent hereby instructs the Obligors to
pay or cause to be paid the portion of the Payoff Amount consisting of the Legal Fees by wire transfer, in immediately available
funds, to McGuireWoods, LLP ("Outside Counsel") in accordance with the following wire transfer instructions:

 

BANK OF AMERICA

ABA: 026009593 (Domestic Wires)

Credit: McGuireWoods Operating Account

Account Number: 000003664964

Reference: (Hamid Namazie/2068279-5070)

McGuireWoods Accounting Contact: Jacob Howard (804)
775-1411

 

The Obligors represent and warrant (the
"Secured Obligation Representation") that the only outstanding Obligations owing from any Obligors or any of
its Subsidiaries under any Bank Products are set forth on Schedule 2 hereto (collectively, the "Outstanding Obligations").
The Obligors agree that all outstanding Bank Products set forth on Schedule 2 shall be terminated by no later than
60 days after the Payoff Date.

 

Subject to (a) the receipt by Agent
of the Payoff Amount, any applicable Per Diem Amount and receipt by Outside Counsel of the Legal Fees, (b) the accuracy of
the Secured Obligation Representation, (a) the receipt by the Issuing Bank of the fully executed Cash Collateral Agreement
and the Cash Collateral Amount, and (d) the receipt by Agent of a fully executed copy of this Payoff Letter, duly executed
by Borrowers and Agent (collectively, the "Payoff Items"), Agent (on behalf of the Lenders) agrees that all obligations
of the Obligors under the Loan Documents other than (i) obligations under the Loan Documents (including contingent reimbursement
obligations and indemnity obligations which, by their express terms, survive termination of the Loan Agreement, and (ii) to
the extent not paid on the Payoff Date, fees and expenses of counsel to Agent in connection with the termination of the Loan Documents
and release of all liens thereunder), including principal, accrued interest, costs, expenses and fees, shall be paid in full,
all Loan Documents shall be terminated, all commitments of the Existing Lenders shall be terminated, all participation obligations
of the Existing Lenders with respect to the Existing Letters of Credit shall be released, all guarantees provided under the Loan
Documents shall be terminated and any security interest or lien granted to the Existing Lenders and/or the Existing Agent in the personal property
or real property of the Obligors securing amounts evidenced by the Loan Documents (excluding any lien granted to the Issuing Bank
in connection with the Cash Collateral Agreement) shall automatically terminate.

 

    3

     

    

  

At Obligors' expense (it being understood
and agreed that such expense may be in addition to the amounts included in the Payoff Amount), Agent will promptly upon receipt
of each of the Payoff Items, (a) execute and deliver to Borrowers (or any designee of Borrowers) any such lien releases, mortgage
releases, discharges of security interests, pledges and guarantees and other similar discharge or release documents, as are reasonably
requested and necessary to release, as of record, the security interests and all notices of security interests and liens previously
filed by Agent under the Loan Documents and (b) deliver to Borrowers (or any designee of the Obligors) all instruments evidencing
pledged debt and all equity certificates and any other similar collateral previously delivered in physical form by Borrowers to
Agent under the Loan Documents. Upon Agent's receipt of each of the Payoff Items and confirmation by Agent of such receipt, any
of the Borrowers or their legal counsel or other designee are authorized to file all termination statements and releases with respect
to each financing statement, intellectual property security agreement, pledge agreement, account control agreement, mortgage, assignment
and other instrument or document filed to perfect any of the security interests and other liens granted under the Loan Agreement,
and Agent agrees to execute and deliver such documents and to take such steps as are reasonably requested by the Borrowers or their
legal counsel or other designee, from time to time, to terminate and release all such security interests, assignments, blocked
account agreements, control agreements and similar agreements and documents, and other liens of record.

 

Agent shall retain the Deposit for a period
of no longer than ninety (90) days following the Payoff Date and pay all costs, fees, expenses and other amounts owed to Agent
from the Deposit. Upon termination of such ninety (90) day period, any unused portion of the Deposit shall be returned to Borrowers.

 

Notwithstanding the terms of this letter
agreement to the contrary, (a) upon any Lender's demand, the Obligors shall promptly compensate such Lender for any breakage
costs incurred in connection with the payment of the Payoff Amount and any applicable Per Diem Amount in accordance with the Loan
Agreement, and (b) if Agent determines after the Payoff Time that an amount that was due and payable under the Loan Documents
or under any Bank Product was mistakenly excluded from the Payoff Amount, each Obligor agrees to promptly pay such excluded amount
after Agent provides evidence to the Obligors that such excluded amount is due and payable. Notwithstanding anything herein to
the contrary, if at any time all or any part of the Payoff Amount is or must be rescinded or returned by Agent for any reason whatsoever
(including the insolvency, bankruptcy, reorganization or similar proceeding involving any of the Borrowers, the Obligations, to
the extent that such payment is or must be rescinded or returned, shall be deemed to have continued in existence, notwithstanding
such application by Agent, and the Loan Agreement and the other Loan Documents shall continue to be effective or be reinstated,
as the case may be, as to such Obligations, all as though such application by Agent had not been made. The provisions of this paragraph
shall remain in full force and effect regardless of any termination of the obligations owing under the Loan Documents.

 

    4

     

    

 

As of the Payoff Date, (a) the Borrowers
hereby irrevocably terminate any commitment under the Loan Documents to lend or make advances by Agent or any Lender including
the issuance of any new Letter of Credit or the renewal or extension of any Existing Letter of Credit by the Issuing Bank); provided,
however, that each Existing Letter of Credit and the corresponding issuer documents shall remain in full force and effect in
accordance with their respective terms, and (b) release and forever discharge Agent, each Lender and each of their representatives,
assigns, officers, directors, agents, employees and attorneys from any and all claims, demands, debts, liabilities, actions, and
causes of action of every kind and character based upon or arising out of the Loan Agreement or any Loan Document.

 

It is acknowledged and agreed that this
document constitutes a "Loan Document" for purposes of Sections 14.14,
14.15 and 14.16 of the Loan Agreement.

 

This letter agreement (a) shall be
governed by and shall be construed and enforced in accordance with, the laws of the State of New York and (b) sets forth the
entire agreement among the parties relating to the subject matter pertaining hereto, and no term or provision hereof may be amended,
changed, waived, discharged or terminated, except in writing signed by each party.

 

This letter agreement may be executed in
any number of counterparts, and telecopied signatures (or signatures delivered via electronic mail or “pdf”) shall be enforceable
as originals. Your signature below shall evidence your agreement with the foregoing.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

    5

     

    

 

	Very truly yours,	 
	 	 
	BANK OF AMERICA, N.A., as Agent under the Loan Agreement	 
	 	 
	By:	/s/ MATTHEW R. VAN STEENHUYSE	 
	 	 	 
	Name:	MATTHEW R. VAN STEENHUYSE	 
	 	 	 
	Title:	SENIOR VICE PRESIDENT	 

 

     

     

    

 

	Accepted and Agreed to:	 
	 	 	 
	HYDROFARM HOLDINGS, LLC,	 
	 	 	 
	By:	/s/ Peter Wardenburg	 
	Name: Peter Wardenburg	 
	Title: Manager	 
	 	 	 
	HYDROFARM, LLC	 
	 	 	 
	By:	/s/ Peter Wardenburg	 
	Name: Peter Wardenburg	 
	Title: President and Chief Executive Officer	 
	 	 	 
	EHH HOLDINGS, LLC	 
	 	 	 
	By:	/s/ Peter Wardenburg	 
	Name: Peter Wardenburg	 
	Title: Manager	 
	 	 	 
	SUNBLASTER
    LLC	 
	 	 	 
	By: 	/s/ Peter Wardenburg	 
	Name: Peter Wardenburg	 
	Title: President	 
	 	 	 
	HYDROFARM CANADA, LLC	 
	 	 	 
	By:	/s/ Peter Wardenburg	 
	Name: Peter Wardenburg	 
	Title: President	 
	 	 
	EDDI’S WHOLESALE GARDEN SUPPLIES LTD.	 
	 	 	 
	By:	/s/ Peter Wardenburg	 
	Name: Peter Wardenburg	 
	Title: President	 
	 	 	 
	SUNBLASTER HOLDINGS
    ULC	 
	 	 	 
	By: 	/s/
    Jeffrey Peterson	 
	Name: Jeffrey Peterson	 
	Title: Director	 

 

Payoff Letter

 

     

     

    

 

Schedule 1

 

Letters of Credit

  

     

     

    

 

Schedule 2

 

Bank Products

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