Document:

Exhibit
10.1

 

Execution
Version

 

MEMBERSHIP
INTEREST PURCHASE AGREEMENT

 

This
Membership Interest Purchase Agreement (this “Agreement”), dated as of September 24, 2020, is entered
into between NewAge, Inc., a Washington corporation (“Seller”) and Zachert Private Equity GmbH, a German limited
liability company (“Buyer”).

 

Recitals

 

A.
Seller owns all of the issued and outstanding membership interests (the “Company Membership Interests”),
in Brands Within Reach, LLC, a New York limited liability company (the “Company”); and

 

B.
Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Company Membership Interests, subject to the
terms and conditions set forth herein;

 

In
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

Definitions

 

The
following terms have the meanings specified or referred to in this Article I:

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Ancillary
Documents” means the Assignment, the Promissory Note, the Inventory Note, the Distributor Agreement, the Transition
Services Agreement and the Supplier Agreement.

 

“Assignment”
has the meaning set forth in Section 2.02(b)(iii).

 

“Balance
Sheet” has the meaning set forth in Section 3.06.

 

“Balance
Sheet Date” has the meaning set forth in Section 3.06.

 

“Benefit
Plan” has the meaning set forth in Section 3.16(a).

 

“Business”
means the Licensed Brands and the Owned Brands, and the machinery, equipment and other assets necessary for the distribution of
such brands.

 

    	 

    	 

    

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Denver, Colorado are
authorized or required by Law to be closed for business.

 

“Buyer”
has the meaning set forth in the preamble.

 

“BWR
Asset and Rights Transfer” has the meaning set forth in Section 5.08.

 

“Cash”
means the unrestricted cash, cash equivalents, and certificates of deposit of the Company (including marketable securities and
short term investments convertible to cash within 90 days, net of any breakage costs required to liquidate such securities and
short term investments) deposited in banking institutions in the United States, net of outstanding checks, taxes or other costs
associated with, or that would be assessable on, the use or distribution of such cash and any other repatriation costs, calculated
in accordance with the GAAP applied on a consistent basis.

 

“Cash
Disbursement” means cash in the amount of $1,250,000 (a) less an amount equal to pre-paid expenses of the Company
paid by NewAge Companies other than the Company on or after September 1, 2020 but before the Closing; (b) less an amount
equal to accounts payable of the Company paid by NewAge Companies other than the Company on or after September 1, 2020 but before
the Closing; (c) less an amount equal to Cash held by the Company as of September 1, 2020; and (d) plus an amount
equal to accounts receivable of the Company received by NewAge Companies other than the Company on or after September 1, 2020
but before the Closing. The calculation of the Cash Disbursement is set forth on Schedule I.

 

“Closing”
has the meaning set forth in Section 2.03.

 

“Closing
Date” has the meaning set forth in Section 2.03.

 

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

 

“Common
Stock” means the common stock of Seller, par value $0.001 per share.

 

“Company”
has the meaning set forth in the recitals.

 

“Company
Intellectual Property” has the meaning set forth in Section 3.11(c).

 

“Company
IP Registrations” means all Company Intellectual Property that is subject to any issuance, registration or application
by, to or with any Governmental Authority or authorized private registrar in any jurisdiction, including issued patents, registered
trademarks, domain names and copyrights, and pending applications for any of the foregoing.

 

“Company
Membership Interests” has the meaning set forth in the recitals.

 

“Confidentiality
Agreement” means the Confidentiality Agreement, dated as of June 2, 2020, between Buyer and Silverwood Partners LLC.

 

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“Contracts”
means all contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures
and all other agreements, commitments and legally binding arrangements, whether written or oral.

 

“Data
Room” has the meaning set forth in Section 3.06.

 

“Direct
Claim” has the meaning set forth in Section 7.04(c).

 

“Disclosure
Schedules” means the Disclosure Schedules delivered by Seller and Buyer concurrently with the execution and delivery
of this Agreement.

 

“Distributor
Agreement” has the meaning set forth in Section 5.01.

 

“Dollars
or $” means the lawful currency of the United States.

 

“Encumbrance”
means any claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option, security
interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction
on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

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

 

“ERISA
Affiliate” means all employers (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 of the Code or Section 4001 of ERISA.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Financial
Statements” has the meaning set forth in Section 3.06.

 

“GAAP”
means United States generally accepted accounting principles in effect from time to time.

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency 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.

 

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

 

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“Independent
Accountant” means an impartial nationally recognized firm of independent certified public accountants other than the
accountants of Buyer or Seller appointed by mutual agreement of Buyer and Seller.

 

“Intellectual
Property” has the meaning set forth in Section 3.11(a).

 

“Interim
Balance Sheet” has the meaning set forth in Section 3.06.

 

“Interim
Balance Sheet Date” has the meaning set forth in Section 3.06.

 

“Interim
Financial Statements” has the meaning set forth in Section 3.06.

 

“Inventory
Note” means the promissory note in the form attached hereto as Exhibit B.

 

“Knowledge
of Seller or Seller’s Knowledge” or any other similar knowledge qualification, means the actual knowledge of any
director, manager or officer of the Company.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.

 

“Liability”
means any liability or obligation of any kind or nature (whether known or unknown, asserted or unasserted, express or implied,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated, direct or indirect, primary or secondary, or due or
to become due).

 

“Licensed
Brands” means Nestea, Volvic, evian, illy, Kusmi Tea, Saint Geron, and Found.

 

“Losses”
means actual out-of-pocket losses, damages, Liabilities, costs or expenses, including reasonable attorneys’ fees.

 

“Material
Adverse Effect” means any event, occurrence, fact, condition or change that is materially adverse to (a) the business,
results of operations, financial condition or assets of the Company, or (b) the ability of Seller to consummate the transactions
contemplated hereby; provided, however, that “Material Adverse Effect” does not include any event, occurrence,
fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions;
(ii) conditions generally affecting the industries in which the Company operates; (iii) any changes in financial, banking or securities
markets in general, including any disruption thereof and any decline in the price of any security or any market index or any change
in prevailing interest rates; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or
worsening thereof; (v) any action required or permitted by this Agreement or any action taken (or omitted to be taken) with the
written consent of or at the written request of Buyer; (vi) any matter of which Buyer is aware on the date hereof; (vii) any changes
in applicable Laws or accounting rules (including GAAP) or the enforcement, implementation or interpretation thereof; (viii) 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 Company; (ix) any natural or man-made
disaster or acts of God, including pandemics or epidemics; or (x) any failure by the Company to meet any internal or published
projections, forecasts or revenue or earnings predictions (provided that the underlying causes of such failures (subject to the
other provisions of this definition) shall not be excluded).

 

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“Material
Contracts” has the meaning set forth in Section 3.09(a).

 

“Multiemployer
Plan” has the meaning set forth in Section 3.16(c).

 

“NewAge
Companies” means the Seller and its direct and indirect subsidiaries.

 

“Organizational
Documents” means (a) in the case of a Person that is a corporation, its articles or certificate of incorporation and
its by-laws, regulations or similar governing instruments required by the laws of its jurisdiction of formation or organization;
(b) in the case of a Person that is a partnership, its articles or certificate of partnership, formation or association, and its
partnership agreement (in each case, limited, limited liability, general or otherwise); (c) in the case of a Person that is a
limited liability company, its articles or certificate of formation or organization, and its limited liability company agreement
or operating agreement; and (d) in the case of a Person that is none of a corporation, partnership (limited, limited liability,
general or otherwise), limited liability company or natural person, its governing instruments as required or contemplated by the
laws of its jurisdiction of organization.

 

“Owned
Brands” means Xing, búcha, Aspen Pure, and CoCo Libre.

 

“Permits”
means all permits, licenses, franchises, approvals, authorizations and consents required to be obtained from Governmental Authorities.

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

“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.

 

“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.

 

“Pre-Closing
Taxes” means Taxes of the Company for any Pre-Closing Tax Period.

 

“Promissory
Note” means the promissory note in the form attached hereto as Exhibit A.

 

“Purchase
Right” has the meaning set forth in Section 5.06.

 

“Purchase
Right Notice” has the meaning set forth in Section 5.06.

 

“Qualified
Benefit Plan” has the meaning set forth in Section 3.16(c).

 

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“Real
Property” means the real property owned, leased or subleased by the Company, together with all buildings, structures
and facilities located thereon.

 

“Release”
means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without
limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building,
structure, facility or fixture).

 

“Representative”
means, with respect to any Person, any and all directors/managing members, managers, officers, employees, consultants, financial
advisors, counsel, accountants and other agents of such Person.

 

“Restricted
Period” has the meaning set forth in Section 5.07(a).

 

“SEC”
means the Securities and Exchange Commission.

 

“SEC
Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

“Securities
Act” has the meaning set forth in Section 4.03(a).

 

“Seller”
has the meaning set forth in the preamble.

 

“Seller
Fundamental Representations” has the meaning set forth in Section 7.01.

 

“Specified
Matter” means any and all Losses of the Company or Buyer arising from or related to the Encumbrances
in favor of East West Bank on the Company Membership Interests and any properties and assets of the Company, including
in connection with (i) the removal, release and termination of all Encumbrances in favor of
East West Bank on the Company Membership Interests and any properties and assets of the Company or any failure on the part of
Seller to obtain such removal, release and termination or (ii) the transfer of the Owned Brands to the Company as provided in
Section 5.08.

 

“Stock
Disbursement” means that number of shares of Common Stock having a value of $1,250,000, based on the per share value
of the Common Stock, being equal to the volume-weighted average of the price of the Common Stock on each of the five days starting
September 14, 2020 and ending September 18, 2020.

 

“Stock
Disbursement Shares” has the meaning set forth in Section 4.03(a).

 

“Straddle
Period” has the meaning set forth in Section 6.04.

 

“Supplier
Agreement” has the meaning set forth in Section 5.01.

 

“Taxes”
means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise,
registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise,
severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs,
duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties
with respect thereto and any interest in respect of such additions or penalties.

 

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“Tax
Claim” has the meaning set forth in Section 6.05.

 

“Tax
Return” means any return, declaration, report, claim for refund, information return or statement or other document required
to be filed with respect to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Third-Party
Claim” has the meaning set forth in Section 7.03(a).

 

“Transition
Services Agreement” has the meaning set forth in Section 5.01.

 

“Yearly
Financial Statements” has the meaning set forth in Section 3.06.

 

ARTICLE
II

Purchase and sale

 

Section
2.01 Purchase and Sale.

 

(a)
Subject to the terms and conditions set forth herein, at the Closing, Seller shall sell to Buyer, and Buyer shall purchase
from Seller, all of Seller’s right, title and interest in and to the Company Membership Interests, free and clear of
all Encumbrances, for the consideration of $10 and for other good and valuable consideration.

 

(b)
Notwithstanding any provision in this Agreement or any Ancillary Document to the contrary, the purchase by Buyer of the
Company Membership Interests shall not include the acquisition of any liabilities or obligations set forth on Schedule
2.01(a) (the “Excluded Liabilities”). Buyer shall not assume and shall not be liable for, and Buyer will
have no obligation to pay, perform or satisfy when due, any Excluded Liability.

 

(c) Except
as set forth on Schedule 2.01, Seller shall cause the Company to assign, transfer and convey the Excluded Liabilities to Seller
or one of its Affiliates prior to the Closing.

 

Section
2.02 Transactions to be Effected at the Closing.

 

(a) At
the Closing, Buyer shall deliver to Seller:

 

(i) a
Promissory Note in the amount of $2,500,000, duly executed by Buyer and the Company;

 

(ii) an
Inventory Note in the amount of $3,279,487, duly executed by the Company;

 

(iii) the
other Ancillary Documents, duly executed by Buyer.

 

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(b) At
the Closing, Seller shall deliver to Buyer:

 

(i) the
Cash Disbursement;

 

(ii) the
Stock Disbursement;

 

(iii) an
assignment of the Membership Interests to Buyer in form and substance reasonably satisfactory to Buyer (the “Assignment”),
duly executed by Seller; and

 

(iv) the
other Ancillary Documents, duly executed by Seller.

 

Section
2.03  Closing. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place simultaneously with the execution of this Agreement on the date of this Agreement (the “Closing Date”)
at the offices of Faegre, Drinker, Biddle & Reath LLP, Denver, Colorado, or remotely by exchange of documents and signatures
(or their electronic counterparts). The consummation of the transactions contemplated by this Agreement shall be deemed to occur
at 12.01 a.m. on the Closing Date.

 

ARTICLE
III

Representations and warranties of seller

 

Except
as set forth in the Disclosure Schedules, Seller represents and warrants to Buyer that the statements contained in this ARTICLE
III are true and correct as of the date hereof.

 

Section
3.01 Organization and Authority of Seller. Seller is a corporation duly organized, validly existing
and in good standing under the Laws of the state of Washington. Seller has all necessary corporate power and authority to enter
into this Agreement and the Ancillary Documents, to carry out its obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and the Ancillary Documents, the performance
by Seller of its obligations hereunder and thereunder and the consummation by Seller of the transactions contemplated hereby and
thereby have been duly authorized by all requisite corporate action on the part of Seller. This Agreement has been duly executed
and delivered by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement constitutes a legal,
valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally
and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). When each
Ancillary Document to which Seller is or will be a party has been duly executed and delivered by Seller, such Ancillary Document
(assuming due authorization, execution and delivery by Buyer) will constitute a legal and binding obligation of Seller enforceable
against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity).

 

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Section
3.02 Organization, Authority and Qualification of the Company. The Company is a limited liability
company duly organized, validly existing and in good standing under the Laws of the state of New York and has all necessary limited
liability company 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 it is currently conducted. The Company 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 as currently conducted
makes such licensing or qualification necessary, except where the failure to be so licensed, qualified or in good standing would
not have a Material Adverse Effect.

 

Section
3.03 Capitalization.

 

(a) Seller
is the record owner of and has good and valid title to the Company Membership Interests, free and clear of all Encumbrances. The
Company Membership Interests constitute 100% of the total issued and outstanding membership interests in the Company. The Company
Membership Interests have been duly authorized and are validly issued. Upon consummation of the transactions contemplated by this
Agreement, Seller shall transfer to Buyer all of the Membership Interests, free and clear of all Encumbrances.

 

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

 

(c) 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 or obligating Seller or the Company to issue or sell any
membership interests (including the Company Membership Interests), or any other interest in, the Company. Other than the Organizational
Documents, 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 Membership Interests.

 

(d) The
shares comprising the Stock Consideration, when issued and delivered in compliance with the provisions of this Agreement, will
be validly issued, fully paid and nonassessable. The shares comprising the Stock Consideration will be free of any liens or encumbrances,
other than any liens or encumbrances created by or imposed upon the Buyer, subject only to restrictions on transfer under state
and/or federal securities laws.

 

Section
3.04 No Subsidiaries. Except as set forth on Section 3.04 of the Disclosure Schedules, the Company
does not own or have any interest in any shares or have an ownership interest in any other Person.

 

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Section
3.05 No Conflicts; Consents. The execution, delivery and performance by Seller of this Agreement and
the Ancillary Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not
and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the Organizational Documents
of Seller or Company; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable
to Seller or the Company; (c) except as set forth in Section 3.05 of the Disclosure Schedules, 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, 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 Seller or the Company is a party or by which Seller
or the Company is bound or to which any of their respective properties and assets are subject (including any Material Contract)
or any Permit affecting the properties, assets or business of the Company which, in the aggregate, would not have a Material Adverse
Effect; or (d) result in the creation or imposition of any Encumbrance on any properties or assets of the Company. No consent,
approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with
respect to Seller or the Company in connection with the execution and delivery of this Agreement and the Ancillary Documents to
which it is a party and the consummation of the transactions contemplated hereby and thereby, except for such filings as set forth
in Section 3.05 of the Disclosure Schedules and such consents, approvals, Permits, Governmental Orders, declarations, filings
or notices which, in the aggregate, would not have a Material Adverse Effect.

 

Section
3.06 Financial Statements. Copies of the Company’s unaudited financial statements consisting
of the balance sheet of the Company as at December 31, 2019 and the related statements of income for the year then ended (the
“Yearly Financial Statements”), and unaudited financial statements consisting of the balance sheet of the Company
as at August 31, 2020 and the related statements of income and retained earnings, members’ equity and cash flow for the
eight-month period then ended (the “Interim Financial Statements” and together with the Yearly Financial Statements,
the “Financial Statements”) have been made available to Buyer in an electronic data room (the “Data
Room”). 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” and the balance sheet of the Company as of August 31, 2020
is referred to herein as the “Interim Balance Sheet” and the date thereof as the “Interim Balance
Sheet Date”. The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout
the period involved, subject, in the case of the Interim Financial Statements, to normal and recurring year-end adjustments (the
effect of which will not be materially adverse) and the absence of notes (that, if presented, would not differ materially from
those presented in the Yearly Financial Statements). The Financial Statements are based on the books and records of the Company,
and fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared
and the results of the operations of the Company for the periods indicated.

 

Section
3.07 No Undisclosed Liabilities. The Company has no liabilities, obligations or commitments in excess
of $250,000, individually or in the aggregate, except those which are reflected or reserved against in the Interim Balance Sheet
as of the Interim Balance Sheet Date.

 

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Section
3.08 Absence of Certain Changes, Events and Conditions. Since the Interim Balance Sheet Date, and other
than in the ordinary course of business consistent with past practice, there has not been, with respect to the Company, any:

 

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

 

(b) amendment
of the Organizational Documents of the Company;

 

(c) split,
combination or reclassification of any membership interests in the Company;

 

(d) issuance,
sale or other disposition of, or creation of any Encumbrance on, any Company Membership Interests, or grant of any options, warrants
or other rights to purchase or obtain (including upon conversion, exchange or exercise) any membership interests in the Company;

 

(e) declaration
or payment of any distributions on or in respect of any membership interests in the Company or redemption, purchase or acquisition
of any of the Company’s outstanding membership interests;

 

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

 

(g) entry
into any Material Contract;

 

(h) incurrence,
assumption or guarantee of any indebtedness for borrowed money except unsecured current obligations and Liabilities incurred in
the ordinary course of business consistent with past practice;

 

(i) transfer,
assignment, sale or other disposition of any of the assets shown or reflected in the Balance Sheet or cancellation of any debts
or entitlements;

 

(j) transfer
or assignment of or grant of any license or sublicense under or with respect to any material Company Intellectual Property or
Licensed Intellectual Property;

 

(k) abandonment
or lapse of or failure to maintain in full force and effect any material Company IP Registration;

 

(l) material
damage, destruction or loss (whether or not covered by insurance) to its property;

 

(m) any
capital investment in, or any loan to, any other Person;

 

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(n) acceleration,
termination, material modification to or cancellation of any material Contract (including, but not limited to, any Material Contract)
to which the Company is a party or by which it is bound;

 

(o) any
material capital expenditures;

 

(p) imposition
of any Encumbrance upon any of the Company’s properties or assets, tangible or intangible;

 

(q) (i)
grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation
or benefits in respect of its current or former employees, officers, managers, independent contractors or consultants, other than
as provided for in any written agreements or required by applicable Law, or (ii) change in the terms of employment for any employee
or any termination of any employees for which the aggregate costs and expenses exceed $250,000;

 

(r) adoption,
modification or termination of any: (i) employment, severance, retention or other agreement with any current or former employee,
officer, manager, independent contractor or consultant, (ii) Benefit Plan or (iii) collective bargaining or other agreement with
a Union, in each case whether written or oral;

 

(s) any
loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its Affiliates, members or current or
former managers, officers and employees;

 

(t) entry
into a new line of business or abandonment or discontinuance of existing lines of business;

 

(u) 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;

 

(v) purchase,
lease or other acquisition of the right to own, use or lease any property or assets for an amount in excess of $250,000, individually
(in the case of a lease, per annum), except for purchases of inventory or supplies in the ordinary course of business consistent
with past practice;

 

(w) acquisition
by merger or consolidation with, or by purchase of a substantial portion of the assets, stock or other equity of, or by any other
manner, any business or any Person or any division thereof;

 

(x) action
by the Company to 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 Buyer in respect of any Post-Closing Tax Period; or

 

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

 

Section
3.09 Material Contracts.

 

(a) Section
3.09(a) of the Disclosure Schedules lists each of the following contracts and other agreements of the Company (together with all
Leases listed in Section 3.10 of the Disclosure Schedules, collectively, the “Material Contracts”):

 

(i) each
agreement of the Company involving aggregate consideration in excess of $250,000;

 

(ii) except
for agreements relating to trade receivables, all agreements relating to indebtedness (including, without limitation, guarantees)
of the Company, in each case having an outstanding principal amount in excess of $250,000;

 

(iii) all
Contracts that require the Company to purchase its total requirements of any product or service from a third party or that contain
“take or pay” provisions;

 

(iv) all
Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax, environmental or other
Liability of any Person;

 

(v) all
Contracts that relate to the acquisition or disposition of any business, a material amount of equity or assets of any other Person
or any real property (whether by merger, sale of stock or other equity interests, sale of assets or otherwise);

 

(vi)
all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research,
marketing consulting and advertising Contracts to which the Company is a party;

 

(vii) all
employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which the Company
is a party providing for annual compensation in excess of $250,000;

 

(viii) all
Contracts with any Governmental Authority to which the Company is a party;

 

(ix) all
Contracts that limit or purport to limit the ability of the Company to compete in any line of business or with any Person or in
any geographic area or during any period of time;

 

(x) any
Contracts to which the Company is a party that provide for any joint venture, partnership or similar arrangement by the Company;

 

    	13

    	 

    

 

(xi) all
Contracts between or among the Company on the one hand and Seller or any Affiliate of Seller (other than the Company) on the other
hand;

 

(xii) all
collective bargaining agreements or Contracts with any Union to which the Company is a party; and

 

(xiii) any
other Contract that is material to the Company over $2.0 million and not previously disclosed pursuant to this Section 3.09.

 

(b)
Except as set forth on Section 3.09(b) of the Disclosure Schedules, each Material Contract is valid and binding on the Company
in accordance with its terms and is in full force and effect. None of the Company or, to Seller’s Knowledge, any other party
thereto is in breach of or default under (or is alleged to be in breach of or default under) in any material respect, or has provided
or received any notice of any intention to terminate, any Material Contract. To Seller’s Knowledge, no event or circumstance
has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material Contract or result
in a termination thereof or would cause or permit the acceleration or other changes of any right or 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
3.10 Title to Assets; Real Property.

 

(a) The
Company has good and valid title to, or a valid leasehold interest in, all real property and personal property and other assets
reflected in the Financial Statements or acquired after the Interim Balance Sheet Date, other than properties and assets sold
or otherwise disposed of in the ordinary course of business consistent with past practice since the Interim Balance Sheet Date.

 

(b) The
Company does not own any parcels of Real Property. Section 3.10 of the Disclosure Schedules lists all leases for each parcel of
Real Property leased by the Company (collectively, “Leases”). The Company is not 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. To the Seller’s Knowledge, the use and operation of the Real Property in the conduct of the Company’s
business do not violate in any material respect any Law, covenant, condition, restriction, easement, license, permit or agreement.

 

Section
3.11 Intellectual Property.

 

(a) “Intellectual
Property” means any and all of the following arising pursuant to the Laws of any jurisdiction throughout the world:
(i) trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source
or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration,
and renewals of, any of the foregoing; (ii) copyrights and all registrations and applications for registration thereof; (iii)
trade secrets and know-how; (iv) patents and patent applications; (v) internet domain name registrations; and (vi) all other intellectual
property and related proprietary rights.

 

    	14

    	 

    

 

(b) “Licensed
Intellectual Property” means all Intellectual Property in which the Company holds any rights or interests granted by
other Persons, including Seller or any of its Affiliates.

 

(c) Section
3.11(c) of the Disclosure Schedules lists all patents, patent applications, trademark registrations and pending applications for
registration, copyright registrations and pending applications for registration and internet domain name registrations owned by
the Company. Except as set forth in Section 3.05 or Section 3.11(c) of the Disclosure Schedules, or as would not have a Material
Adverse Effect, the Company owns or has the right to use all Intellectual Property necessary for the conduct of the Company’s
business as currently conducted (the “Company Intellectual Property”).

 

(d) Except
as set forth in Section 3.05 or Section 3.11(d) of the Disclosure Schedules, or as would not have a Material Adverse Effect, to
Seller’s Knowledge: (i) the conduct of the Company’s business as currently conducted does not infringe, misappropriate
or otherwise violate the Intellectual Property of any Person; and (ii) no Person is infringing, misappropriating or otherwise
violating any Company Intellectual Property. This Section 3.11(d) constitutes the sole representation and warranty of Seller under
this Agreement with respect to any actual or alleged infringement, misappropriation or other violation of Intellectual Property.

 

(e) Except
as set forth Section 3.05 or Section 3.11(e) of the Disclosure Schedules, neither the execution, delivery or performance of this
Agreement, nor the consummation of the transactions contemplated hereunder, will result in the loss or impairment of, or require
the consent of any other Person in respect of, the Company’s right to own or use any Company Intellectual Property or Licensed
Intellectual Property.

 

Section
3.12 Sufficiency of Assets. Except as set forth in Section 3.05 of
the Disclosure Schedules, after giving effect to the transactions contemplated by this Agreement and the Ancillary Documents,
the assets of the Company constitute all the rights, property, and assets necessary to conduct the Business as currently conducted.

 

Section
3.13 Legal Proceedings; Governmental Orders.

 

(a) Except
as set forth in Section 3.13(a) of the Disclosure Schedules, there are no actions, suits, claims, investigations or other legal
proceedings pending or, to Seller’s Knowledge, threatened against or by the Company affecting any of its properties or assets
(or by or against Seller or any Affiliate thereof and relating to the Company), which if determined adversely to the Company (or
to Seller or any Affiliate thereof) would result in a Material Adverse Effect.

 

    	15

    	 

    

 

(b) There
are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting the Company or any
of its properties or assets which would have a Material Adverse Effect.

 

Section
3.14 Compliance with Laws; Permits.

 

(a) The
Company is in compliance with all Laws applicable to it or its business, properties or assets, except where the failure to be
in compliance would not have a Material Adverse Effect.

 

(b) All
Permits required for the Company to conduct its business have been obtained by it and are valid and in full force and effect,
except where the failure to obtain such Permits would not have a Material Adverse Effect.

 

(c) None
of the representations and warranties contained in Section 3.14 shall be deemed to relate to tax matters (which are governed by
Section 3.15).

 

Section
3.15 Taxes.

 

(a) The
Company has filed (taking into account any valid extensions) all material Tax Returns required to be filed by the Company since
its acquisition by Seller. Such Tax Returns are true, complete and correct in all material respects. The Company is not currently
the beneficiary of any extension of time within which to file any material Tax Return other than extensions of time to file Tax
Returns obtained in the ordinary course of business. All Taxes due and owing by the Company have been paid or accrued.

 

(b) No
extensions or waivers of statutes of limitations have been given or requested with respect to any material Taxes of the Company.

 

(c) There
are no ongoing actions, suits, claims, investigations or other legal proceedings by any taxing authority against the Company.

 

(d) The
Company is not a party to any Tax indemnity, tax-sharing or Tax allocation agreement.

 

(e) All
material Taxes which the Company is obligated to withhold from amounts owing to any employee, creditor or third party have been
paid or accrued.

 

(f) There
are no Encumbrances for Taxes (other than for current Taxes not yet due and payable) upon the assets of the Company.

 

(g) The
representations and warranties set forth in this Section 3.15 are the Seller’s sole and exclusive representations and warranties
regarding Tax matters.

 

    	16

    	 

    

 

Section
3.16 Employee Benefit Matters. 

 

(a) Section
3.16(a) of the Disclosure Schedules contains a true and complete list of each pension, benefit, retirement, compensation, employment,
consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity or other equity, change
in control, retention, severance, vacation, paid time off (PTO), medical, vision, dental, disability, welfare, Code Section 125
cafeteria, fringe benefit and other similar agreement, plan, policy, program or arrangement (and any amendments thereto), in each
case whether or not reduced to writing and whether funded or unfunded, including each “employee benefit plan” within
the meaning of Section 3(3) of ERISA, whether or not tax-qualified and whether or not subject to ERISA, which is or has been maintained,
sponsored, contributed to, or required to be contributed to by the Company for the benefit of any current or former employee,
officer, manager, retiree, independent contractor or consultant of the Company or any spouse or dependent of such individual,
or under which the Company or any of its ERISA Affiliates has or may have any Liability, or with respect to which Buyer or any
of its Affiliates would reasonably be expected to have any Liability, contingent or otherwise (as listed on Section 3.16(a) of
the Disclosure Schedules, each, a “Benefit Plan”).

 

(b) With
respect to each Benefit Plan, Seller has made available to Buyer accurate, current and complete copies of each of the following:
(i) where the Benefit Plan has been reduced to writing, the plan document together with all amendments; (ii) where the Benefit
Plan has not been reduced to writing, a written summary of all material plan terms; (iii) where applicable, copies of any trust
agreements or other funding arrangements, custodial agreements, insurance policies and contracts, administration agreements and
similar agreements, and investment management or investment advisory agreements, now in effect or required in the future as a
result of the transactions contemplated by this Agreement or otherwise; (iv) copies of any summary plan descriptions, summaries
of material modifications, summaries of benefits and coverage, COBRA communications, employee handbooks and any other written
communications (or a description of any oral communications) relating to any Benefit Plan; (v) in the case of any Benefit Plan
that is intended to be qualified under Section 401(a) of the Code, a copy of the most recent determination, opinion or advisory
letter from the Internal Revenue Service and any legal opinions issued thereafter with respect to such Benefit Plan’s continued
qualification; (vi) in the case of any Benefit Plan for which a Form 5500 must be filed, a copy of the two most recently filed
Forms 5500, with all corresponding schedules and financial statements attached; (vii) actuarial valuations and reports related
to any Benefit Plans with respect to the two most recently completed plan years; (viii) the most recent nondiscrimination tests
performed under the Code; and (ix) copies of material notices, letters or other correspondence from the Internal Revenue Service,
Department of Labor, Department of Health and Human Services, Pension Benefit Guaranty Corporation or other Governmental Authority
relating to the Benefit Plan.

 

(c) Each
Benefit Plan and any related trust (other than any multiemployer plan within the meaning of Section 3(37) of ERISA (each a “Multiemployer
Plan”)) has been established, administered and maintained in accordance with its terms and in compliance with all applicable
Laws (including ERISA and the Code). Each Benefit Plan that is intended to be qualified within the meaning of Section 401(a) of
the Code (a “Qualified Benefit Plan”) is so qualified and received a favorable and current determination letter
from the Internal Revenue Service with respect to the most recent five year filing cycle, or with respect to a prototype or volume
submitter plan, can rely on an opinion letter from the Internal Revenue Service to the prototype plan or volume submitter plan
sponsor, to the effect that such Qualified Benefit Plan is so qualified and that the plan and the trust related thereto are exempt
from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, and nothing has occurred that could reasonably
be expected to adversely affect the qualified status of any Qualified Benefit Plan. Nothing has occurred with respect to any Benefit
Plan that has subjected or could reasonably be expected to subject the Company or any of its ERISA Affiliates or, with respect
to any period on or after the Closing Date, Buyer or any of its Affiliates, to a penalty under Section 502 of ERISA or to tax
or penalty under Sections 4975 or 4980H of the Code.

 

    	17

    	 

    

 

(d) No
pension plan (other than a Multiemployer Plan) which is subject to minimum funding requirements, including any multiple employer
plan, (each, a “Single Employer Plan”) in which employees of the Company or any ERISA Affiliate participate
or have participated has an “accumulated funding deficiency”, whether or not waived, or is subject to a lien for unpaid
contributions under Section 303(k) of ERISA or Section 430(k) of the Code. No Single Employer Plan covering employees of the Company
which is a defined benefit plan has an “adjusted funding target attainment percentage”, as defined in Section 436
of the Code, less than 80%. Except as set forth in Section 3.16(a) of the Disclosure Schedules, all benefits, contributions and
premiums relating to each Benefit Plan have been timely paid in accordance with the terms of such Benefit Plan and all applicable
Laws and accounting principles, and all benefits accrued under any unfunded Benefit Plan have been paid, accrued or otherwise
adequately reserved to the extent required by, and in accordance with, GAAP.

 

(e) Neither
the Company nor any of its ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly, any
material Liability under Title I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to employee
benefit plans; (ii) failed to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from any Benefit
Plan; (iv) engaged in any transaction which would give rise to liability under Section 4069 or Section 4212(c) of ERISA; (v) incurred
taxes under Section 4971 of the Code with respect to any Single Employer Plan; or (v) participated in a multiple employer welfare
arrangements (MEWAs).

 

(f) Each
Benefit Plan can be amended, terminated, or otherwise discontinued after the Closing in accordance with its terms, without material
liabilities to Buyer, the Company or any of their Affiliates other than ordinary administrative expenses typically incurred in
a termination event. The Company has no commitment or obligation and has not made any representations to any employee, officer,
manager, independent contractor, or consultant, whether or not legally binding, to adopt, amend, modify, or terminate any Benefit
Plan or any collective bargaining agreement, in connection with the consummation of the transactions contemplated by this Agreement
or otherwise.

 

(g) There
has been no amendment to, announcement by Seller, the Company or any of their Affiliates relating to, or change in employee participation
or coverage under, any Benefit Plan or collective bargaining agreement that would increase the annual expense of maintaining such
plan above the level of the expense incurred for the most recently completed fiscal year (other than on a de minimis basis) with
respect to any manager, officer, employee, independent contractor or consultant, as applicable. None of Seller, the Company, nor
any of their Affiliates has any commitment or obligation or has made any representations to any manager, officer, employee, independent
contractor, or consultant, whether or not legally binding, to adopt, amend, modify or terminate any Benefit Plan or any collective
bargaining agreement.

 

    	18

    	 

    

 

(h) Each
Benefit Plan that is subject to Section 409A of the Code has been administered in compliance with its terms and the operational
and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings and
proposed and final regulations) thereunder. The Company does not have any obligation to gross up, indemnify or otherwise reimburse
any individual for any excise taxes, interest, or penalties incurred pursuant to Section 409A of the Code.

 

(i) Each
individual who is classified by the Company as an independent contractor has been properly classified for purposes of participation
and benefit accrual under each Benefit Plan.

 

(j) Neither
the execution of this Agreement nor any of the transactions contemplated by this Agreement will (either alone or upon the occurrence
of any additional or subsequent events): (i) entitle any current or former manager, officer, employee, independent contractor
or consultant of the Company to severance pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or
increase the amount of compensation (including stock-based compensation) due to any such individual; (iii) limit or restrict the
right of the Company to merge, amend or terminate any Benefit Plan; (iv) increase the amount payable under or result in any other
material obligation pursuant to any Benefit Plan; (v) result in “excess parachute payments” within the meaning of
Section 280G(b) of the Code; or (vi) require a “gross-up” or other payment to any “disqualified individual”
within the meaning of Section 280G(c) of the Code.

 

Section
3.17 Employee Matters. 

 

(a) Section
3.17(a) of the Disclosure Schedules contains a list of all persons who are employees, independent contractors or consultants of
Seller who perform services for the Company as of the date hereof, including any employee who is on a leave of absence of any
nature, paid or unpaid, authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii) title
or position (including whether full-time or part-time); (iii) hire or retention date; (iv) current annual base compensation rate
or contract fee; (v) commission, bonus or other incentive-based compensation; and (vi) a description of the fringe benefits provided
to each such individual as of the date hereof. Except as set forth in Section 3.17(a) of the Disclosure Schedules, as of the date
hereof, all compensation, including wages, commissions, bonuses, fees and other compensation, payable to all employees, independent
contractors or consultants of the Company for services performed on or prior to the date hereof have been paid in full and there
are no outstanding agreements, understandings or commitments of the Company with respect to any compensation, commissions, bonuses
or fees.

 

    	19

    	 

    

 

(b) The
Company is not, and has not been for the past three years, a party to, bound by, or negotiating any collective bargaining agreement
or other Contract with a union, works council or labor organization (collectively, “Union”), and there is not,
and has not been for the past three years, any Union representing or purporting to represent any employee of the Company, and,
to Seller’s Knowledge, no Union or group of employees is seeking or has sought to organize employees for the purpose of
collective bargaining. There has never been, nor has there been any threat of, any strike, slowdown, work stoppage, lockout, concerted
refusal to work overtime or other similar labor disruption or dispute affecting the Company or any of its employees. The Company
has no duty to bargain with any Union.

 

Section
3.18 Brokers. Except for Silverwood Partners LLC, 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 Seller.

 

Section
3.19 No Other Representations and Warranties. Except for the representations and warranties contained
in this ARTICLE III (including the related portions of the Disclosure Schedules), none of Seller, the Company or any other Person
has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Seller or the
Company, including any representation or warranty as to the accuracy or completeness of any information regarding the Company
furnished or made available to Buyer and its Representatives (including any information, documents or material made available
to Buyer in the Data Room, management presentations or in any other form in expectation of the transactions contemplated hereby)
or as to the future revenue, profitability or success of the Company, or any representation or warranty arising from statute or
otherwise in law.

 

Section
3.20 Certain Disclaimers. Notwithstanding anything in this Agreement to the contrary, except as expressly
made by Seller in ARTICLE III, Seller has not made (and no Person on behalf of Seller has made), nor will Seller or its Affiliates
or representatives have or be subject to any Liability arising out of, relating to or resulting from, any representation or warranty
or similar assurance (whether direct or indirect, written or oral, or statutory, express or implied), in each case regarding the
physical condition or suitability of any asset of the Company, all of which are otherwise being accepted by Buyer “AS IS
AND WHERE IS.” EXCEPT AS SET FORTH EXPRESSLY IN THIS AGREEMENT OR IN ANY ANCILLARY DOCUMENT, SELLER DISCLAIMS ANY EXPRESS
OR IMPLIED WARRANTY RELATING TO ANY ASSET (TANGIBLE, INTANGIBLE OR MIXED) OF SELLER, INCLUDING IMPLIED WARRANTIES OF FITNESS,
NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Buyer acknowledges that it and its Affiliates and representatives
may have received certain estimates, budgets, forecasts, plans and financial projections (collectively, “Forward Looking
Statements”). There are uncertainties inherent in the Forward Looking Statements, and Buyer is familiar with such uncertainties.
Buyer is taking full responsibility for making its own evaluation of, and hereby assumes all risks regarding, the adequacy and
accuracy of all Forward Looking Statements (and all other information) provided to Buyer and its Affiliates and representatives
(including the reasonableness of any assumptions underlying such information).

 

    	20

    	 

    

 

ARTICLE
IV

Representations and warranties of buyer

 

Except
as set forth in the Disclosure Schedules, Buyer represents and warrants to Seller that the statements contained in this ARTICLE
IV are true and correct as of the date hereof.

 

Section
4.01 Organization and Authority of Buyer. Buyer is a limited liability company duly organized, validly
existing and in good standing under the Laws of Germany. Buyer has all necessary limited liability company power and authority
to enter into this Agreement and the Ancillary Documents to which Buyer 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 Buyer of this Agreement
and any Ancillary Document to which Buyer is a party, 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 duly executed and delivered by Buyer, and (assuming due
authorization, execution and delivery by Seller) this Agreement constitutes a legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity). When each Ancillary Document to which Buyer is or will be a party
has been duly executed and delivered by Buyer (assuming due authorization, execution and delivery by each other party thereto),
such Ancillary Document will constitute a legal and binding obligation of Buyer enforceable against it in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting
creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding
at law or in equity).

 

Section
4.02 No Conflicts; Consents. No consent, approval, Permit, Governmental Order, declaration or filing
with, or notice to, any Governmental Authority is required by or with respect to Buyer in connection with the execution and delivery
of this Agreement and the Ancillary Documents and the consummation of the transactions contemplated hereby and thereby, except
for such filings as set forth in Section 4.02 of the Disclosure Schedules and such consents, approvals, Permits, Governmental
Orders, declarations, filings or notices which would not have a material adverse effect on Buyer’s ability to consummate
the transactions contemplated hereby and thereby.

 

Section
4.03 Securities Matters.

 

(a) Buyer
is acquiring the Company Membership Interests and the shares of Common Stock constituting the Stock Disbursement (the “Stock
Disbursement Shares”) in the ordinary course of business for investment purposes, for its own account, and not with
a view towards, or for resale in connection with, a sale or distribution thereof that would be in violation of the Securities
Act of 1933, as amended (the “Securities Act”). Buyer does not have any agreement or understanding, directly
or indirectly, with any Person to distribute any of the Company Membership Interests or the Stock Disbursement Shares.

 

    	21

    	 

    

 

(b) At
the time such Buyer was offered the Company Membership Interests and the Stock Disbursement Shares it was, and at the date hereof
it is an “accredited investor” as defined in Rule 501(a) under the Securities Act and it shall provide the Seller
with such information or documentation reasonably requested to support the Buyer’s status as an accredited investor.

 

(c) Buyer,
either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial
matters so as to be capable of evaluating the merits and risks of the prospective investment in the Company Membership Interests
and the Stock Disbursement Shares, and has so evaluated the merits and risks of such investment. Buyer is able to bear the economic
risk of an investment in the Company Membership Interests and the Stock Disbursement Shares and, at the present time, is able
to afford a complete loss of such investment.

 

(d) Buyer
acknowledges that (i) the Company Membership Interests and the Stock Disbursement Shares are not registered under the Securities
Act or any state securities laws, and that the Company Membership Interests may not be transferred or sold except pursuant to
the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities
laws and regulations, as applicable; (ii) the Company Membership Interests and the Stock Disbursement
Shares being acquired by Buyer pursuant to this Agreement are characterized as “restricted securities” under the Securities
Act inasmuch as they are being acquired by Buyer from the Seller in a transaction not involving a public offering and, subject
to Buyer’s rights under this Agreement, Buyer must continue to bear the economic risk of the investment in the Stock Disbursement
Shares indefinitely unless the offer and sale of the Stock are subsequently registered under the Securities Act and all applicable
state securities or “blue sky” Laws or an exemption from such registration is available; (iii) it is not anticipated
that there will be any public market for the Company Membership Interests; (iv) a restrictive legend shall be placed on the certificates
representing the Stock Disbursement Shares; and (v) a notation shall be made in the appropriate records of the Company indicating
that the Stock Disbursement Shares are subject to restrictions on transfer.

 

Section
4.04 Brokers. 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 or any Ancillary Document based upon
arrangements made by or on behalf of Buyer.

 

Section
4.05 Legal Proceedings. There are no actions, suits, claims, investigations or other legal proceedings
pending or, to Buyer’s knowledge, threatened against or by Buyer or any Affiliate of Buyer that challenge or seek to prevent,
enjoin or otherwise delay the transactions contemplated by this Agreement.

 

    	22

    	 

    

 

Section
4.06 Independent Investigation. Buyer has conducted its own independent investigation, review and analysis
of the business, results of operations, prospects, condition (financial or otherwise) or assets of the Company, and acknowledges
that it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other documents
and data of Seller and the Company for such purpose. Buyer acknowledges and agrees that: (a) in making its decision to enter into
this Agreement and the Ancillary Documents to which it is a party and to consummate the transactions contemplated hereby and thereby,
Buyer has relied solely upon its own investigation and the express representations and warranties of Seller set forth in ARTICLE
III of this Agreement (including the related portions of the Disclosure Schedules) and the Ancillary Documents; and (b) none of
Seller, the Company or any other Person has made any representation or warranty as to Seller, the Company or this Agreement, except
as expressly set forth in ARTICLE III of this Agreement (including the related portions of the Disclosure Schedules).

 

ARTICLE
V

Covenants

 

Section
5.01 Other Agreements. Concurrent with the execution of this Agreement,
Seller shall, and Buyer shall cause the Company to, execute and deliver: (a) a Distributor Agreement in the form set forth on
Exhibit C (the “Distributor Agreement”); (b) a Transition Services
Agreement in the form set forth on Exhibit D (the “Transition Services Agreement”);
and (c) a Supplier Agreement in the form set forth on Exhibit E (the “Supplier Agreement”).

 

Section
5.02 Confidentiality. Buyer acknowledges and agrees that the Confidentiality Agreement remains in full
force and effect and, in addition, covenants and agrees to keep confidential, in accordance with the provisions of the Confidentiality
Agreement, information provided to Buyer pursuant to this Agreement. If this Agreement is, for any reason, terminated prior to
the Closing, the Confidentiality Agreement and the provisions of this Section 5.02 shall nonetheless continue in full force and
effect.

 

Section
5.03 Governmental Approvals and Other Third-Party Consents.

 

(a) Each
party hereto shall, as promptly as possible, use its 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 Ancillary Documents and the performance of its obligations pursuant to this Agreement and the Ancillary
Documents. Each party shall cooperate fully with the other party and its 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) Seller
and Buyer shall use commercially reasonable efforts to give all notices to, and obtain all consents from, all third parties that
are described in Schedule 2.01(b) and Sections 3.05 and 4.02 of the Disclosure Schedules; provided, however, that Seller
shall not be obligated to pay any consideration therefor to any third party from whom consent or approval is requested. If any
consent, approval, or authorization necessary to preserve any right or benefit under any Contract to which the Company is a party
is not obtained prior to the Closing, Seller shall, subsequent to the Closing, cooperate with Buyer and the Company in attempting
to obtain such consent, approval or authorization as promptly thereafter as practicable. If such consent, approval or authorization
cannot be obtained, Seller shall use its reasonable best efforts to provide the Company with the rights and benefits of the affected
Contract for the term thereof, and, if Seller provides such rights and benefits, the Company shall assume all obligations and
burdens thereunder.

 

    	23

    	 

    

 

Section
5.04 Books and Records.

 

(a) In
order to facilitate the resolution of any claims made against or incurred by Seller prior to the Closing, or for any other reasonable
purpose, for a period of six years after the Closing, Buyer shall:

 

(i) retain
the books and records (including personnel files) of the Company relating to periods prior to the Closing in a manner reasonably
consistent with the prior practices of the Company; and

 

(ii) upon
reasonable notice, afford the Representatives of Seller reasonable access (including the right to make, at Seller’s expense,
photocopies), during normal business hours, to such books and records.

 

(b) In
order to facilitate the resolution of any claims made by or against or incurred by Buyer or the Company after the Closing, or
for any other reasonable purpose, for a period of six years following the Closing, Seller shall:

 

(i) retain
the books and records (including personnel files) of Seller which relate to the Company and its operations for periods prior to
the Closing; and

 

(ii) upon
reasonable notice, afford the Representatives of Buyer or the Company reasonable access (including the right to make, at Buyer’s
expense, photocopies), during normal business hours, to such books and records.

 

(c) Neither
Buyer nor Seller shall be obligated to provide the other party with access to any books or records (including personnel files)
pursuant to this Section 5.04 where such access would violate any Law.

 

Section
5.05 Public Announcements. Unless otherwise required by applicable Law or stock exchange requirements
(based upon the reasonable advice of counsel), no party to this Agreement shall make any public announcements in respect of this
Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent
of the other party (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing
and contents of any such announcement.

 

Section
5.06 Seller Purchase Right. Subject to Section 7.06, on the date
that is three years from the Closing Date, Seller may elect to purchase ten percent of the then-outstanding common membership
interests of the Company for a purchase price of $2,500,000 (the “Purchase Right”).
If Seller desires to exercise its Purchase Right, Seller shall deliver written notice of such exercise to Buyer on or prior to
the date that is three years from the Closing Date (the “Purchase Right Notice”).
Upon receipt of the Purchase Right Notice, Buyer and Seller shall, on a date that is within thirty days of the receipt of the
Purchase Right Notice, cause the Company to effectuate such purchase and sale, in accordance with this Section 5.06. Each
party further agrees to execute such customary agreements as may be reasonably requested by the other in connection with Purchase
Right or that are necessary to give further effect thereto. Seller agrees that nothing contained in this Section 5.06 shall require
Buyer to take any action on behalf of Seller or to protect Seller’s Purchase Right and that Buyer will operate and control
the Company in its sole and absolute discretion, including following the exercise of the Purchase Right. Any membership interests
acquired pursuant to the Purchase Right will be for investment purposes only and will not entitle the Seller to any governance
or similar rights. The Purchase Right shall not be exercisable by Seller and shall expire unexercised if Seller has not complied
with its obligations under this Agreement in all material respects.

 

    	24

    	 

    

 

Section
5.07 Non-Competition; Non-Solicitation.

 

(a) For
a period of three (3) years commencing on the Closing Date (the “Restricted Period”), Seller shall not, and
shall not permit any of its Affiliates to, directly or indirectly, engage in or assist others in engaging in the distribution
of the Licensed Brands or the Owned Brands except pursuant to the Distributor Agreement or any other distribution agreement or
arrangement to which Seller provides its prior written consent.

 

(b) During
the Restricted Period, Seller shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or solicit
any employee of the Company listed on Schedule 3.17(a) or encourage any such employee to leave such employment or hire any such
employee who has left such employment, except pursuant to a general solicitation which is not directed specifically to any such
employees; provided, that nothing in this Section 5.07(b) shall prevent Seller or any of its Affiliates from hiring (i)
any employee whose employment has been terminated by the Company or Buyer or (ii) after 180 days from the date of termination
of employment, any employee whose employment has been terminated by the employee.

 

(c) Seller
acknowledges that a breach or threatened breach of this Section 5.07 would give rise to irreparable harm to Buyer, for which monetary
damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by Seller of any
such obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of
such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and
any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

 

(d) Seller
acknowledges that the restrictions contained in this Section 5.07 are reasonable and necessary to protect the legitimate interests
of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated
by this Agreement. In the event that any covenant contained in this Section 5.07 should ever be adjudicated to exceed the time,
geographic, product or service, or other limitations permitted by applicable Law in any jurisdiction, then any court is expressly
empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic,
product or service, or other limitations permitted by applicable Law. The covenants contained in this Section 5.07 and each provision
hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision
as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

 

    	25

    	 

    

 

Section
5.08 BWR Asset and Rights Transfer. Seller shall take reasonable measures to ensure
that the assets, rights and properties, including all Intellectual Property and Licensed Intellectual Property and the Owned
Brands, used in the conduct of the Business immediately prior to the Closing Date are transferred, assigned, contributed and
conveyed to the Company prior to the Closing, free and clear of any Encumbrances (the “BWR Asset and Rights
Transfer”), however such reasonable measures do not include the payment or
incurrence of any fees or expenses (unless such fees or expenses are paid by Buyer or the Company) or the entry into any
agreement that limits Seller’s ability to freely conduct its business. From time to time, whether at or
following the Closing, the Sellers and the Buyer shall execute, acknowledge and deliver reasonable further conveyances,
notices, assumptions and releases and such other instruments, and shall take such reasonable further actions, as may be
necessary or appropriate to vest in the Company all the right, title, and interest in, to or under such assets, rights and
properties, to provide the Buyer and the Sellers all rights and obligations to which they are entitled and subject pursuant
to this Agreement and the Ancillary Documents, and to otherwise make effective as promptly as practicable the transactions
contemplated by this Agreement and the Ancillary Documents.

 

Section
5.09 Further Assurances. Following the Closing, each of the parties hereto shall, and shall cause their
respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances, and take such
further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated
by this Agreement.

 

Section
5.10 Termination of Affiliate Agreements. At or prior to the
Closing, unless otherwise directed in writing by Buyer or provided elsewhere herein, the Company shall terminate, or otherwise
amend to exclude the Company as a party thereto, all agreements between the Company and the Seller and its Affiliates.

 

Section
5.11 Reports Under Exchange Act. With a view to making available to the Buyer the benefits of SEC Rule
144, Seller shall:

 

(a) make
and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144; and

 

    	26

    	 

    

 

(b) use
commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of Seller under
the Securities Act and the Exchange Act.

 

Section
5.12 Removal of Encumbrances. Seller shall, at Seller’s expense,
promptly, and in any event within 45 days of the Closing Date, cause the removal, release and termination of all Encumbrances
granted to East West Bank on the Company Membership Interests and any properties and assets of the Company, including but not
limited to filing and recording any and all petitions, termination statements or other documentation necessary to reflect
the release of any Encumbrances granted in favor of East West Bank and executing and delivering to the Company such other documents,
instruments, agreements, instructions, releases and termination statements as the Company may reasonably request to effectuate
or evidence the termination of the above referenced Encumbrances.

 

ARTICLE
VI

tax matters

 

Section
6.01 Tax Covenants.

 

(a) Without
the prior written consent of Buyer, Seller (and, prior to the Closing, the Company, its Affiliates and their respective Representatives)
shall not, to the extent it may affect, or relate to, the Company, 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 Buyer or the Company in respect of any Post-Closing
Tax Period. Seller agrees that Buyer is to have no liability for any Tax resulting from any action of Seller, the Company, its
Affiliates or any of their respective Representatives, and agrees to indemnify and hold harmless Buyer (and, after the Closing
Date, the Company) against any such Tax or reduction of any Tax asset.

 

(b) All
transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and
interest) incurred in connection with this Agreement and the Ancillary Documents (including any real property transfer Tax and
any other similar Tax) shall be borne and paid 100% by Buyer when due. Seller shall, at its own expense, timely file any Tax Return
or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

 

Section
6.02 Termination of Existing Tax Sharing Agreements. Any and all existing Tax sharing agreements (whether
written or not) binding upon the Company shall be terminated as of the Closing Date. After such date none of the Company, Seller
nor any of Seller’s Affiliates and their respective Representatives shall have any further rights or liabilities thereunder.

 

Section
6.03 Tax Indemnification. Seller shall indemnify the Company and Buyer, and hold them harmless from
and against (a) any Loss attributable to any breach of or inaccuracy in any representation or warranty made in Section 3.15; (b)
any Loss attributable to any breach or violation of, or failure to fully perform, any covenant, agreement, undertaking or obligation
in ARTICLE VI; (c) all Taxes of the Company or relating to the business of the Company for all Pre-Closing Tax Periods; (d) all
Taxes of any member of an affiliated, consolidated, combined or unitary group of which the Company (or any predecessor of the
Company) is or was a member on or prior to the Closing Date by reason of a liability under Treasury Regulation Section 1.1502-6
or any comparable provisions of foreign, state or local Law; and (e) any and all Taxes of any person imposed on the Company arising
under the principles of transferee or successor liability or by contract, relating to an event or transaction occurring before
the Closing Date. In each of the above cases, together with any out-of-pocket fees and expenses (including attorneys’ and
accountants’ fees) incurred in connection therewith. Seller shall reimburse Buyer for any Taxes of the Company that are
the responsibility of Seller pursuant to this Section 6.03 within ten Business Days after payment of such Taxes by Buyer or the
Company.

 

    	27

    	 

    

 

Section
6.04 Straddle Period. In the case of Taxes that are payable with respect to a taxable period that begins
before and ends after the Closing Date (each such period, a “Straddle Period”), the portion of any such Taxes
that are treated as Pre-Closing Taxes for purposes of this Agreement shall be:

 

(a) in
the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital or net worth, (ii) imposed in connection
with the sale, transfer or assignment of property, or (iii) required to be withheld, deemed equal to the amount which would be
payable if the taxable year ended with the Closing Date; and

 

(b) in
the case of other Taxes, deemed to be the amount of such Taxes for the entire period multiplied by a fraction the numerator of
which is the number of days in the period ending on the Closing Date and the denominator of which is the number of days in the
entire period.

 

Section
6.05 Contests. Buyer agrees to give written notice to Seller of the receipt of any written notice by
the Company, Buyer or any of Buyer’s Affiliates which involves the assertion of any claim, or the commencement of any Action,
in respect of which an indemnity may be sought by Buyer pursuant to this ARTICLE VI (a “Tax Claim”); provided,
that failure to comply with this provision shall not affect Buyer’s right to indemnification hereunder. Buyer shall
control the contest or resolution of any Tax Claim; provided, however, that Buyer shall obtain the prior written consent
of Seller (which consent shall not be unreasonably withheld or delayed) before entering into any settlement of a claim or ceasing
to defend such claim; and, provided further, that Seller shall be entitled to participate in the defense of such claim
and to employ counsel of its choice for such purpose, the fees and expenses of which separate counsel shall be borne solely by
Seller.

 

Section
6.06 Cooperation and Exchange of Information. Seller and Buyer shall provide each other with such cooperation
and information as either of them reasonably may request of the other in filing any Tax Return pursuant to this ARTICLE VI or
in connection with any audit or other proceeding in respect of Taxes of the Company. Such cooperation and information shall include
providing copies of relevant Tax Returns or portions thereof, together with accompanying schedules, related work papers and documents
relating to rulings or other determinations by tax authorities. Each of Seller and Buyer shall retain all Tax Returns, schedules
and work papers, records and other documents in its possession relating to Tax matters of the Company for any taxable period beginning
before the Closing Date until the expiration of the statute of limitations of the taxable periods to which such Tax Returns and
other documents relate, without regard to extensions except to the extent notified by the other party in writing of such extensions
for the respective Tax periods. Prior to transferring, destroying or discarding any Tax Returns, schedules and work papers, records
and other documents in its possession relating to Tax matters of the Company for any taxable period beginning before the Closing
Date, Seller or Buyer (as the case may be) shall provide the other party with reasonable written notice and offer the other party
the opportunity to take custody of such materials.

 

    	28

    	 

    

 

Section
6.07 Tax Treatment of Indemnification Payments. Any indemnification payments pursuant to this ARTICLE
VI shall be treated as an adjustment to the Purchase Price by the parties for Tax purposes, unless otherwise required by Law.

 

Section
6.08 Payments to Buyer. Any amounts payable to Buyer pursuant to this ARTICLE VI shall be satisfied
from Seller. To the extent that Seller does not satisfy any amount payable under this ARTICLE VI, Buyer shall be entitled reduce
the principal amount outstanding on the Promissory Note by the amount unpaid by Seller.

 

Section
6.09 Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of Section
3.15 and this ARTICLE VI shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver,
mitigation or extension thereof) plus 60 days.

 

Section
6.10 Overlap. To the extent that any obligation or responsibility pursuant to ARTICLE VIII may overlap
with an obligation or responsibility pursuant to this ARTICLE VI, the provisions of this ARTICLE VI shall govern.

 

ARTICLE
VII

Indemnification

 

Section
7.01 Survival. Subject to the limitations and other provisions of this Agreement, the representations
and warranties contained in Sections 3.01, 3.02, 3.03, 3.06, 3.07, 3.10 and 3.18 (the “Seller Fundamental Representations”)
survive the Closing and remain in full force and effect until the date that is one year from the Closing Date. None of the other
representations, warranties, covenants or other agreements contained in this Agreement survive the Closing Date other than those
which by their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement survives the
Closing for the period contemplated by its terms. Notwithstanding the foregoing, any claims asserted in good faith with reasonable
specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior
to the expiration date of the applicable survival period is not thereafter barred by the expiration of such survival period and
such claims shall survive until finally resolved.

 

    	29

    	 

    

 

Section
7.02 Indemnification by Seller. Subject to the other terms and conditions of this ARTICLE VIII, Seller
shall indemnify Buyer against, and shall hold Buyer harmless from and against, any and all Losses incurred or sustained by, or
imposed upon, Buyer based upon, arising out of, with respect to or by reason of:

 

(a) any
inaccuracy in or breach of any of the Seller Fundamental Representations;

 

(b) any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement other
than (i) with regard to Sections 5.03 or 5.12 hereof or with regard to Section 5.08 hereof to the extent such breach or non-fulfillment
relates to a third-party consent required in connection with the BWR Assets and Rights Transfer or (ii) any breach or violation
of, or failure to fully perform, any covenant, agreement, undertaking or obligation in ARTICLE VI, it being understood that the
sole remedy for any such breach, violation or failure shall be pursuant to ARTICLE VI;

 

(c) any
Excluded Liability; or

 

(d) the
Specified Matter.

 

Section
7.03 Indemnification by Buyer. Subject to the other terms and conditions
of this ARTICLE VII, Buyer shall indemnify Seller against, and shall holder Seller harmless from and against, any and all Losses
incurred or sustained by, or imposed upon, Seller based upon, arising out of, with respect to or by reason of: 

 

(a) any
inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or in any certificate
or instrument delivered by or on behalf of Buyer pursuant to this Agreement, as of the date such representation or warranty was
made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties
that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified
date); or

 

(b) any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement (other
than ARTICLE VI, it being understood that the sole remedy for any such breach thereof shall be pursuant to ARTICLE VI).

 

Section
7.04 Indemnification Procedures. The party making a claim under this ARTICLE VII is referred to as
the “Indemnified Party,” and the party against whom such claim is asserted under this ARTICLE VII is referred to as
the “Indemnifying Party”.

 

    	30

    	 

    

 

(a) Third-Party
Claims. If any Indemnified Party receives notice of the assertion or commencement of any action, suit, claim or other legal proceeding
made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative
of the foregoing (a “Third-Party Claim”) against such Indemnified Party with respect to which the Indemnifying
Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party prompt
written notice thereof. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its
indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of
such failure. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail, shall include copies
of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that
has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving
written notice to the Indemnified Party, to assume the defense of any Third-Party Claim at the Indemnifying Party’s expense
and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense. In
the event that the Indemnifying Party assumes the defense of any Third-Party Claim, subject to Section 7.04(b), it shall have
the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any
such Third-Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right, at its
own cost and expense, to participate in the defense of any Third-Party Claim with counsel selected by it subject to the Indemnifying
Party’s right to control the defense thereof. If the Indemnifying Party elects not to compromise or defend such Third-Party
Claim or fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, the
Indemnified Party may, subject to Section 7.04(b), pay, compromise, defend such Third-Party Claim and seek indemnification for
any and all Losses based upon, arising from or relating to such Third-Party Claim. the Indemnifying Party and the Indemnified
Party shall cooperate with each other in all reasonable respects in connection with the defense of any Third-Party Claim, including
making available (subject to the provisions of Section 5.03) records relating to such Third-Party Claim and furnishing, without
expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending
party as may be reasonably necessary for the preparation of the defense of such Third-Party Claim.

 

(b) Settlement
of Third-Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement
of any Third-Party Claim without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld
or delayed), except as provided in this Section 7.04(b). If a firm offer is made to settle a Third-Party Claim without leading
to Liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary
form, for the unconditional release of the Indemnified Party from all liabilities and obligations in connection with such Third-Party
Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to
that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within ten days after its receipt
of such notice, the Indemnified Party may continue to contest or defend such Third-Party Claim and in such event, the maximum
Liability of the Indemnifying Party as to such Third-Party Claim shall not exceed the amount of such settlement offer. If the
Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third-Party Claim, the Indemnifying
Party may settle the Third-Party Claim upon the terms set forth in such firm offer to settle such Third-Party Claim. If the Indemnified
Party has assumed the defense pursuant to Section 7.04(b), it shall not agree to any settlement without the written consent of
the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

 

    	31

    	 

    

 

(c) Direct
Claims. Any claim by the 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 its indemnification obligations,
except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by
the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence
thereof and shall indicate the estimated amount, if reasonably practicable, 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 Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate
the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect
of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving such information
and assistance (including access to the Company’s premises and personnel and the right to examine and copy any accounts,
documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request. 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.

 

(d) Tax
Claims. Notwithstanding any other provision of this Agreement, the control of any claim, assertion, event or proceeding in respect
of Taxes of the Company (including, but not limited to, any such claim in respect of a breach of the representations and warranties
in Section 3.15 hereof or any breach or violation of or failure to fully perform any covenant, agreement, undertaking or obligation
in ARTICLE VI) shall be governed exclusively by ARTICLE VI hereof.

 

Section
7.05 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.

 

Section
7.06 Right of Offset. If the Seller is required to indemnify the
Buyer under this Article VIII or Article VI and Seller has not paid Buyer any such amounts owed within ten (10) days of a final,
non-appealable determination or agreement by the parties that such amounts are owed, Buyer shall have the right, but not the obligation,
to offset amounts owed by Seller under this Article VIII against amounts of principal and accrued interest owed by the Company
under the Promissory Note by reducing the amount of accrued interest and principal outstanding. While any amounts owed by Seller
under this Article VII remain outstanding and unpaid, Seller shall not have the right to exercise the Purchase Right. 

 

Section
7.07 Exclusive Remedies. Subject to ARTICLE VI and Section 8.11, the parties acknowledge and agree
that their sole and exclusive remedy with respect to any and all claims for any breach of any representation, warranty, covenant,
agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the
indemnification provisions set forth in this ARTICLE VII. In furtherance of the foregoing, each party hereby waives, to the fullest
extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant,
agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the
other parties hereto and their Affiliates and each of their respective Representatives arising under or based upon any Law, except
pursuant to the indemnification provisions set forth in this ARTICLE VII. Nothing in this Section 7.07 shall limit any Person’s
right to seek and obtain any equitable relief to which any Person shall be entitled pursuant to Section 8.11.

 

    	32

    	 

    

 

ARTICLE
VIII

Miscellaneous

 

Section
8.01 Expenses. Except as otherwise expressly provided herein, all costs and expenses, including, without
limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement
and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing
shall have occurred; provided, however, that Seller shall pay all amounts payable to Silverwood Partners LLC.

 

Section
8.02 Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder
shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt);
(b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent
by e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on
the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by
certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties
at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this
Section 8.02):

 

	If
    to Seller:	NewAge,
    Inc.
	 	2420
    17th Street, Suite 220
	 	Denver,
    Colorado 80202
	 	E-mail: ggould@newage.com
	 	Attention:	Chief
    Financial Officer                                  
	 	 
	with
    a copy to:	Faegre
    Drinker Biddle & Reath, LLP
	 	1144
    15th Street, Suite 3400
	 	Denver,
    Colorado, 80202
	 	E-mail: jeff.sherman@faegredrinker.com 
	 	Attention:	Jeff
    Sherman
	 	 
	If
    to Buyer:	Zachert
    Private Equity GmbH
	 	Karl-Marx
    Strasse 25
	 	15537
    Grunheide (Mark)
	 	Deutschland
	 	E-mail: oz@zachert-pe.com
	 	Attention:	Olaf
    Zachert
	 	 
	with
    a copy to:	Arnold
    & Porter Kaye Scholer LLP
	 	1144
    15th Street, Suite 3100
	 	Denver,
    Colorado 80202
	 	E-mail: ron.levine@arnoldporter.com
	 	Attention:	Ronald
    R. Levine II

 

    	33

    	 

    

 

Section
8.03 Interpretation. For purposes of this Agreement: (a) the words “include,” “includes”
and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or”
is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and
“hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles,
Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached
to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such
statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder.
This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the
party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein
shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

Section
8.04 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation
of this Agreement.

 

Section
8.05 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable
in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement
or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term
or other provision is invalid, illegal or unenforceable, 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 a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

Section
8.06 Entire Agreement. This Agreement constitutes the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein, and supersede all prior and contemporaneous representations, warranties,
understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between
the statements in the body of this Agreement, the Exhibits and Disclosure Schedules (other than an exception expressly set forth
as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

 

Section
8.07 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder
without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment
shall relieve the assigning party of any of its obligations hereunder.

 

    	34

    	 

    

 

Section
8.08 No Third-Party Beneficiaries. Except as provided in this ARTICLE VIII, this Agreement is for the
sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied,
is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement.

 

Section
8.09 Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented
by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective
unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed
as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar
or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any
right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.

 

Section
8.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a) This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Colorado without giving effect
to any choice or conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction).

 

(b) ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE ANCILLARY DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF COLORADO
IN EACH CASE LOCATED IN THE CITY AND COUNTY OF DENVER, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH
COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S
ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT.
THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN
SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c) EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE ANCILLARY DOCUMENTS IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE ANCILLARY DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER
IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER
VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 8.10(c).

 

    	35

    	 

    

 

Section
8.11 Specific Performance. The parties agree that irreparable damage would occur if any provision of
this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance
of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

Section
8.12 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered
by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an
original signed copy of this Agreement.

 

Section
8.13 Non-recourse. This Agreement may only be enforced against, and any claim, action, suit or other
legal proceeding based upon, arising out of, or related to this Agreement, or the negotiation, execution or performance of this
Agreement, may only be brought against the entities that are expressly named as parties hereto and then only with respect to the
specific obligations set forth herein with respect to such party. No past, present or future director, officer, employee, incorporator,
manager, member, partner, stockholder, Affiliate, agent, attorney or other Representative of any party hereto or of any Affiliate
of any party hereto, or any of their successors or permitted assigns, shall have any Liability for any obligations or liabilities
of any party hereto under this Agreement or for any claim or Action based on, in respect of or by reason of the transactions contemplated
hereby.

 

Section
8.14 Press Release. Neither Seller nor Buyer shall issue or cause the publication of any press release
or other public announcement with respect to this Agreement or the transactions contemplated hereby without prior consultation
with the other party hereto.

 

[signature
page follows]

 

    	36

    	 

    

 

	Signed:	 
	 	 
	 	NEWAGE,
    INC.
	 	 
	 	By	/s/ Gregory A. Gould
     
	 	Name:	Gregory A. Gould
	 	Title:	Chief
    Financial Officer
	 	 
	 	ZACHERT
    PRIVATE EQUITY GMBH
	 	 
	 	By	/s/
    Olaf Zachert 
	 	Name:	Olaf
    Zachert
	 	Title:	Managing Director

 

    	 

    	 

    

 

Exhibit
A

 

Form
of Promissory Note

 

THIS
NOTE WAS ORIGINALLY ISSUED ON SEPTEMBER 24, 2020, AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES ACT, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR QUALIFICATION OR AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OR ANY SUCH STATE SECURITIES LAWS WHICH MAY BE
APPLICABLE.

 

PROMISSORY
NOTE

 

	September
    24, 2020	$2,500,000.00

 

Brands
Within Reach, LLC, a Delaware limited liability company (the “Maker”), hereby promises to pay to NewAge, Inc.,
a Washington corporation (the “Holder”), the aggregate principal amount of $2,500,000.00.

 

This
promissory note (the “Note”) represents the promissory note referred to in that certain Membership Interest
Purchase Agreement, dated September 24, 2020 (the “Purchase Agreement”), by and among the Holder, as
Seller, and Zachert Private Equity GmbH, a German limited liability company (“Buyer”).

 

1. Maturity;
Payments.

 

(a)
Maturity. Subject to the terms of this Section 1 and the Purchase Agreement, the entire outstanding principal amount
of this Note, together with all accrued and unpaid interest thereon, shall be due and payable in full on September 24,
2023 (the “Maturity Date”).

 

(b) Application
of Payments. Any payments made pursuant to this Note shall (i) first, be applied to reduce the amount of such accrued and
unpaid interest with respect to the outstanding principal amount until such amount is equal to zero and (ii) second, shall be
applied to reduce the remaining outstanding principal amount to be paid hereunder until such amount is equal to zero.

 

(c) Prepayment.
The Maker shall have the right to prepay this Note, in whole or in part, at any time without premium or penalty.

 

(d) Offset.
In accordance with Section 8.06 of the Purchase Agreement, Buyer may cause the Maker to offset amounts owed by the Holder to Buyer
under Article VI or Article VIII of the Purchase Agreement by reducing amounts due and payable to Holder under this Note in an
amount equivalent to amounts owed to Seller. If any amount is in dispute under Article VI or Article VIII of the Purchase Agreement,
any amounts due and payable under this Note may be withheld by the Maker in an amount equal to the amount then in dispute under
such section(s) of the Purchase Agreement, without further interest accruing thereon, until final resolution of such dispute is
reached, at which time the amounts payable under this Note may either be offset pursuant to this Section 1(d) or paid by the Maker
to the Holder (or a combination of both), as applicable depending on the resolution of the disputed amounts.

 

    	 

    	 

    

 

2. Interest.
The unpaid principal amount owed under this Note shall accrue simple interest from and including the date of this Note to but
excluding the payment date at a rate of ten percent (10%) per annum. Simple interest shall be calculated on the basis of a 360-day
year for the actual number of days elapsed. Maker shall pay all accrued and unpaid interest annually on each of the first and
second anniversaries of the Closing Date (as defined in the Purchase Agreement) and on the Maturity Date.

 

3. Default
Interest. If any amount payable hereunder is not paid when due, whether at stated maturity, or otherwise, such overdue amount
shall bear interest at a rate of eighteen percent (18%) per annum from the date of such non-payment until such amount is paid
in full.

 

4. Interest
Rate Limitation. If at any time and for any reason whatsoever, the interest rate payable on this Note shall exceed the maximum
rate of interest permitted to be charged by the Maker to the Holder under applicable law, such interest rate shall be reduced
automatically to the maximum rate of interest permitted to be charged under applicable law.

 

5. Remedies.
In the event the Maker fails to make any payment when due hereunder, the Holder shall have any rights to which the Holder is entitled
in equity or under applicable law.

 

6. Amendment
and Waiver. This Note may be amended, supplemented or changed, and any provision hereof may be waived, only by written instrument
making specific reference to this Note and signed by the parties hereto.

 

7. Transfer.
The Holder shall not sell, assign, transfer, pledge, hypothecate, mortgage or otherwise encumber this Note without the prior written
consent of the Maker and, so long as the Guarantee remains effective, the Guarantor.

 

8. Cancellation.
After the entire principal amount and interest owed on this Note has been paid in full, this Note shall be surrendered to the
Maker for cancellation and shall not be reissued.

 

9. Payments.
All payments to be made to the Holder shall be made in the lawful money of the United States of America in immediately available
funds pursuant to wire instructions to be provided to the Maker.

 

10. Unsecured
Note. The Holder and the Maker agree that this Note and the obligations, indebtedness and liabilities evidenced hereby,
are, and at all times shall be, unsecured, and nothing herein shall be construed to impose any limitation on the Maker’s
ability to issue additional obligations, indebtedness or liabilities of any kind (whether senior, pari passu or otherwise).

 

    	 

    	 

    

 

11. Guarantee.
Zachert Private Equity GmbH (the “Guarantor”) hereby unconditionally and irrevocably, guarantees to the Holder
the prompt and complete payment by the Maker of the payment in full of principal and interest due under this Note (the “Guarantee”).
The Guarantee contained in this Section 11 shall remain in full force and effect until the earlier of (i) the full payment
by Maker of all obligations due hereunder, (ii) the completion of a capital investment in the Maker of at least $2,500,000 by
the Guarantor or its affiliates, or (iii) the Maker achieves net income of at least $2,500,000 in any 12-month period following
the Closing Date.

 

12. Governing
Law; WAIVER OF JURY TRIAL.

 

(a) This
Note shall be governed by and construed in accordance with the internal laws of the State of Colorado without giving effect to
any choice or conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction).

 

(b) ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED
IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF COLORADO IN EACH CASE LOCATED IN THE CITY
AND COUNTY OF DENVER, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION
OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH IN SECTION
9.02 OF THE PURCHASE AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH
COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING
IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c) EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS NOTE IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS NOTE CERTIFIES
AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12(c).

 

    	 

    	 

    

 

13. Business
Days. If any payment is due, or any time period for giving notice or taking action expires, on a day which is a Saturday,
Sunday or other day on which banks in Denver, Colorado are required to be closed, the payment shall be due and payable on, and
the time period shall automatically be extended to, the next business day immediately following such Saturday, Sunday or other
day on which the banks in Denver, Colorado are required to be closed.

 

14. Notice.
Except as otherwise provided in this Note, all notices, other communications, and legal process shall be addressed to the notice
recipients identified in the Purchase Agreement and delivered in accordance with Section 9.02 of the Purchase Agreement.

 

15. Headings.
The headings of the paragraphs and subparagraphs of this Note are for convenience only and shall not be deemed to constitute a
part hereof.

 

16. Replacement.
Upon receipt of evidence reasonably satisfactory to the Maker of the mutilation, destruction, loss or theft of this Note and the
ownership thereof, and, in the case of any such mutilation, upon surrender and cancellation of this Note, the Maker shall, upon
the written request of the Holder, execute and deliver in replacement thereof a new Note in the same form, in the same original
principal amount and dated the same date as this Note so mutilated, destroyed, lost or stolen, and such Note so mutilated, destroyed,
lost or stolen shall then be deemed no longer outstanding hereunder.

 

17. Entire
Agreement. Except as set forth in the Purchase Agreement, this Note constitutes the entire agreement and understanding of
the parties and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the
subject matter hereof.

 

*   *   *   *   *

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Maker has executed and delivered this Note on the date first above written.

 

	 	THE
    MAKER:
	 	 
	 	BRANDS
    WITHIN REACH, LLC
	 	 
	 	By:	/s/
    Olaf Zachert
	 	Name:    	Olaf
    Zachert 
	 	Title:
    	President
	 	 
	 	THE
    HOLDER:
	 	 
	 	NEWAGE,
    INC.
	 	 
	 	By:	/s/ Gregory A. Gould 
	 	Name:
    	Gregory A. Gould 
	 	Title:	Chief
    Financial Officer
	 	 
	 	THE
    GUARANTOR:
	 	 
	 	ZACHERT
    PRIVATE EQUITY GMBH
	 	 
	 	By:	/s/
    Olaf Zachert
	 	Name:
    	Olaf
    Zachert
	 	Title:	Managing
    Director

 

    	 

    	 

    

 

Exhibit
B

 

Form
of Inventory Note

 

THIS
NOTE WAS ORIGINALLY ISSUED ON SEPTEMBER 24, 2020, AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES ACT, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR QUALIFICATION OR AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OR ANY SUCH STATE SECURITIES LAWS WHICH MAY BE
APPLICABLE.

 

INVENTORY
NOTE

 

	September
    24, 2020	$3,279,487.00

 

Brands
Within Reach, LLC, a Delaware limited liability company (the “Maker”), hereby promises to pay to NewAge, Inc.,
a Washington corporation (the “Holder”), the aggregate principal amount of $3,279,487.00.

 

This
note (the “Note”) represents the Inventory Note referred to in that certain Membership Interest Purchase Agreement,
dated September 24, 2020 (the “Purchase Agreement”), by and among the Holder, as Seller, and Zachert
Private Equity GmbH, a German limited liability company (“Buyer”) and is issued in respect of inventory of
the Maker that was pre-paid by Holder.

 

1. Maturity;
Payments.

 

(a)
Maturity. Subject to the terms of this Section 1 and the Purchase Agreement, the entire outstanding principal amount
of this Note, together with all accrued and unpaid interest thereon, shall be due and payable in full on June 24, 2021
(the “Maturity Date”).

 

(b) Application
of Payments. Any payments made pursuant to this Note shall (i) first, be applied to reduce the amount of any accrued and unpaid
interest with respect to the outstanding principal amount until such amount is equal to zero and (ii) second, shall be applied
to reduce the remaining outstanding principal amount to be paid hereunder until such amount is equal to zero.

 

(c) Prepayment.
The Maker shall have the right to prepay this Note, in whole or in part, at any time without premium or penalty.

 

2. Interest.
The unpaid principal amount owed under this Note shall not accrue interest from the date of this Note through the Maturity Date.

 

3. Default
Interest. If any amount payable hereunder is not paid when due, whether at stated maturity, or otherwise, such overdue amount
shall bear interest at a rate of eighteen percent (18%) per annum from the date of such non-payment until such amount is paid
in full. Simple interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed.

 

    	 

    	 

    

 

4. Interest
Rate Limitation. If at any time and for any reason whatsoever, the interest rate payable on this Note shall exceed the maximum
rate of interest permitted to be charged by the Maker to the Holder under applicable law, such interest rate shall be reduced
automatically to the maximum rate of interest permitted to be charged under applicable law.

 

5. Remedies.
In the event the Maker fails to make any payment when due hereunder, the Holder shall have any rights to which the Holder is entitled
in equity or under applicable law.

 

6. Amendment
and Waiver. This Note may be amended, supplemented or changed, and any provision hereof may be waived, only by written instrument
making specific reference to this Note and signed by the parties hereto.

 

7. Transfer.
The Holder shall not sell, assign, transfer, pledge, hypothecate, mortgage or otherwise encumber this Note without the prior written
consent of the Maker.

 

8. Cancellation.
After the entire principal amount and interest owed on this Note has been paid in full, this Note shall be surrendered to the
Maker for cancellation and shall not be reissued.

 

9. Payments.
All payments to be made to the Holder shall be made in the lawful money of the United States of America in immediately available
funds pursuant to wire instructions to be provided to the Maker.

 

10. Unsecured
Note. The Holder and the Maker agree that this Note and the obligations, indebtedness and liabilities evidenced hereby,
are, and at all times shall be, unsecured, and nothing herein shall be construed to impose any limitation on the Maker’s
ability to issue additional obligations, indebtedness or liabilities of any kind (whether senior, pari passu or otherwise) (collectively,
“Indebtedness”); provided, however that if any amount payable hereunder is not paid when due, whether at stated maturity,
or otherwise, Maker must obtain the written consent of Holder prior to issuing any additional Indebtedness, which consent shall
not be unreasonably withheld.

 

11. Governing
Law; WAIVER OF JURY TRIAL.

 

(a) This
Note shall be governed by and construed in accordance with the internal laws of the State of Colorado without giving effect to
any choice or conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction).

 

(b) ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED
IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF COLORADO IN EACH CASE LOCATED IN THE CITY
AND COUNTY OF DENVER, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION
OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH IN SECTION
9.02 OF THE PURCHASE AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH
COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING
IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

    	 

    	 

    

 

(c) EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS NOTE IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS NOTE CERTIFIES
AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11(c).

 

12. Business
Days. If any payment is due, or any time period for giving notice or taking action expires, on a day which is a Saturday,
Sunday or other day on which banks in Denver, Colorado are required to be closed, the payment shall be due and payable on, and
the time period shall automatically be extended to, the next business day immediately following such Saturday, Sunday or other
day on which the banks in Denver, Colorado are required to be closed.

 

13. Notice.
Except as otherwise provided in this Note, all notices, other communications, and legal process shall be addressed to the notice
recipients identified in the Purchase Agreement and delivered in accordance with Section 9.02 of the Purchase Agreement.

 

14. Headings.
The headings of the paragraphs and subparagraphs of this Note are for convenience only and shall not be deemed to constitute a
part hereof.

 

15. Replacement.
Upon receipt of evidence reasonably satisfactory to the Maker of the mutilation, destruction, loss or theft of this Note and the
ownership thereof, and, in the case of any such mutilation, upon surrender and cancellation of this Note, the Maker shall, upon
the written request of the Holder, execute and deliver in replacement thereof a new Note in the same form, in the same original
principal amount and dated the same date as this Note so mutilated, destroyed, lost or stolen, and such Note so mutilated, destroyed,
lost or stolen shall then be deemed no longer outstanding hereunder.

 

16. Entire
Agreement. Except as set forth in the Purchase Agreement, this Note constitutes the entire agreement and understanding of
the parties and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the
subject matter hereof.

 

*
* * * *

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Maker has executed and delivered this Note on the date first above written.

 

	 	THE
    MAKER:
	 	 
	 	BRANDS
    WITHIN REACH, LLC
	 	 
	 	By:	/s/
    Olaf Zachert 
	 	Name:
    	Olaf
    Zachert
	 	Title:
    	President
	 	 
	 	THE
    HOLDER:
	 	 
	 	NEWAGE,
    INC.
	 	 
	 	By:	/s/
    Gregory A. Gould  
	 	Name:
    	Gregory A. Gould
	 	Title:	Chief
    Financial Officer

 

    	 

    	 

    

 

Exhibit
C

 

Form
of Distributor Agreement

 

[see attached]

 

    	 

    	 

    

 

Exhibit
D

 

Form
of Transition Services Agreement

 

[see
attached]

 

    	 

    	 

    

 

Exhibit
E

 

Form
of Supplier Agreement

 

[see
attached]Document

Exhibit 10.1

BARNES & NOBLE EDUCATION, INC.
120 Mountainview Boulevard
Basking Ridge, New Jersey  07920
September 24, 2020
Mr. Michael P. Huseby 
Barnes & Noble Education, Inc.
750 Third Avenue, 6th Floor
New York, NY 10017
Dear Mr. Huseby:
This amendment (the “Amendment”) amends the employment agreement (the “Agreement”) between you and Barnes & Noble Education, Inc. (the “Company”) dated July 19, 2017.  This Amendment is effective as of November 1, 2020. 
1.    The first sentence of Section 2 of the Agreement is amended to read as follows:  “The initial term of this Agreement shall continue until September 19, 2022 or, if earlier, the termination of your employment in accordance with the provisions set forth below (the “Initial Term”).” 
2.    The last sentence of Section 3.2 of the Agreement is amended to read as follows:  “Your target bonus for each fiscal year of the Company shall be 125% of the Annual Base Salary.”
3.     Section 3.9(a)(ii) of the Agreement is amended to read as follows:  “your target annual bonus for the year of termination”.
4.    Section 3.10(a)(y) of the Agreement is amended to read as follows:  “your target annual bonus for the year of termination (or, if higher, as in effect immediately prior to the Change of Control)”.
5.    Except as amended hereby, the Agreement remains in full force and effect. 
If the foregoing accurately reflects our agreement, kindly sign and return to us the enclosed duplicate copy of this Amendment.
Very truly yours,
BARNES & NOBLE EDUCATION, INC.
By:    /s/ John R. Ryan        
Name:     John R. Ryan
Title:     Lead Independent Director
Accepted and Agreed to:
MICHAEL P. HUSEBY
By:    /s/ Michael P. Huseby    
Name:     Michael P. Huseby
Date:      September 24, 2020

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