Document:

cosm_ex41.htm

EXHIBIT 4.1
  
 DEBT EXCHANGE AGREEMENT
  
 THIS DEBT EXCHANGE AGREEMENT (the “Agreement”) is entered into as of July 13, 2021, by and between Cosmos Holdings Inc., a Nevada corporation with offices located at 141 West Jackson Blvd, Suite 4236, Chicago, Illinois 60604 (the “Company”), and Grigorios Siokas, a resident of Greece and Chief Executive Officer of Cosmos Holdings Inc. (the “Investor”).
  
 W I T N E S S E T H
  
 A. WHEREAS, the Investor has heretofore made certain loans in the aggregate amount of $1,000,000 as of this date to the Company (the “Indebtedness”), and desires to acquire shares of Common Stock at an exchange rate of $6.00 per share in exchange for the payment of $1,000,000 of these loans;
  
 B. WHEREAS, the Company has agreed to issue 166,667 shares (the “Shares”) in exchange for the repayment of $1,000,000 of these loans; and
  
 C. WHEREAS, the Exchange is being made in reliance upon the exemptions from registration provided by Sections 4(a)(2) and 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”).
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:
  
 1. Exchange. On the date hereof, pursuant to Sections 4(a)(2) and 3(a)(9) of the Securities Act, the Investor hereby agrees to convey, assign and transfer the Indebtedness to the Company in exchange for which the Company agrees to issue the Shares to the Investor. On the date hereof, in exchange for the Indebtedness, the Company shall deliver or cause to be delivered to the Investor (or his designee) the Shares. The Company and the Investor shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary to effectuate the Exchange.
  
 2. Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of the Shares may be tacked onto the holding period of the Indebtedness.
  
 3. Representations and Warranties of the Investor.
  
 (a) Investor Representation. 
  
 (i) Authority. The Investor has the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out his obligations hereunder.
  
 (ii) Reliance on Exemptions. The Investor understands that the Shares are being offered and exchanged in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying, in part, upon the truth and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of the Investor to acquire the Shares. 
   
 	 
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 (iii) Transfer or Resale. The Investor understands that: (i) the Shares have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Investor shall have delivered to the Company (if requested by the Company) an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Investor provides the Company with reasonable assurance that such Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Shares under circumstances in which the Company (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Shares under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. Notwithstanding the foregoing, the Shares may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Shares and such pledge of Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and the Investor effecting a pledge of Shares shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other document, including, without limitation, this Section 3(a)(iii).
  
 (iv) No Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.
  
 (v) Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and shall constitute the legal, valid and binding obligations of the Investor enforceable against the Investor in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
  
 (vi) No Conflicts. The execution, delivery and performance by the Investor of this Agreement, and the consummation by the Investor of the transactions contemplated hereby will not (A) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Investor is a party, or (B) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Investor, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Investor to perform its obligations hereunder. 
   
 	 
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 (vii) Investment Risk; Sophistication. The Investor is acquiring the Shares hereunder in the ordinary course of its business. The Investor has such knowledge, sophistication, and experience in business and financial matters so as to be capable of evaluation of the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risk of such investment. The Investor is an “accredited investor” as defined in Regulation D under the Securities Act.
  
 (viii) Ownership of Shares. The Investor owns the Shares free and clear of any Liens (other than the obligations pursuant to this Agreement, liens in the ordinary course of business (e.g. bone fide margin account liens) and applicable securities laws).
  
 4. Representations and Warranties of the Company. The Company represents and warrants to Investor as follows: 
  
 (a) Due Incorporation. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power to own its properties and to carry on its business as currently being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary, unless the failure to be so qualified or in good standing, as the case may be, would not have or would not reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement or any other document in connection with the Offering, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), constituting a “Material Adverse Effect”).
  
 (b) This Agreement has been duly and validly executed and delivered by the Company, and upon the execution and delivery of this Agreement by the Company and the performance by the Company of his obligations herein, this Agreement will constitute a legal, valid and binding obligation of the Company. 
  
 (c) The execution and delivery by the Company of this Agreement does not, and the performance by the Company of its obligations under this Agreement and the consummation of the transactions contemplated hereby will not, conflict with or result in a violation or breach of any of the terms, conditions or provisions of any other agreement to which the Company is a party.
  
 (d) The Shares have been offered and sold to the Investor in accordance with the registration requirements of applicable securities laws.
  
 (e) There is no action, suit, proceeding or investigation pending or, to the best knowledge of the Company, currently threatened against the Company that may affect the validity of this Agreement or the right of the Company to enter into this Agreement or to consummate the transactions contemplated hereby.
  
 (f) The Shares are free and clear of all liens, charges, encumbrances and restrictions of any kind and nature whatsoever, and none of the Shares is subject to any written or oral agreement, whatsoever, with respect to the voting thereof, the sale or pledge thereof (including, without limitation any option or right of first refusal to sell any such Shares), nor has any proxy been granted to any corporation, company, partnership, joint venture, other entity or natural person (a “Person”) with respect to any of the Shares.
     
 	 
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 (g) There is no firm, corporation, entity, agency or Person that is entitled to a finder’s fee or any type of brokerage commission in relation to or in connection with the transactions contemplated by this Agreement as a result of any agreement or understanding with the Company.
  
 (h) The Company shall take such additional steps, and shall execute and deliver such additional documents and instruments, at the Company’s expense, as shall be necessary to transfer to the Investor all of the Company’s right, title and interest in and to the Shares as provided in this Agreement, and to finalize the transfer of the Shares on the books and records of the Company.
  
 5. Effective Date. Except as otherwise provided herein, this Agreement shall be deemed effective as of such date as the Company and the Investor shall have duly executed and delivered this Agreement (the “Effective Date”).
  
 6. No Commissions. Neither the Company nor the Investor has paid or given, or will pay or give, to any person, any commission, fee or other remuneration, directly or indirectly, in connection with the transactions contemplated by this Agreement.
  
 7. No Integration. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on their behalf shall, directly or indirectly, make any offers or sales of any security (as defined in the Securities Act) or solicit any offers to buy any security or take any other actions, under circumstances that would require registration of any of the Shares under the Securities Act or cause this offering of the Shares to be integrated with such offering or any prior offerings by the Company for purposes of Regulation D under the Securities Act. 
  
 8. Miscellaneous.
  
 (a) This Agreement shall be governed and construed in accordance with the laws of the State of Nevada.
  
 (b) The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof. 
  
 (c) A telefaxed or received e-mail copy of this Agreement shall be deemed an original. 
  
 (d) The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 (e) Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investor. A waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way affect, limit or waive a party’s rights at any time to enforce strict compliance thereafter with every other term or condition of this Agreement. All remedies under this Agreement shall be cumulative and not alternative.
  
 (f) This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations between the parties with respect to the subject matter hereof. 
   
 	 
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 (g) The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.
  
 (h) The representations, warranties, covenants and agreements of the Company and the Investor contained in this Agreement shall survive the closing of the transaction contemplated hereunder.
  
 (i) This Agreement cannot be altered or otherwise amended except pursuant to an instrument in writing signed by each of the parties. This Agreement shall be binding upon, and, inure to the benefit of the parties hereto, their successors, legal representatives and assigns.
  
 (j) Any notice, request, instrument or other document to be given hereunder by any party to any of the other parties shall be in writing and shall be deemed to have been duly given when delivered personally; if delivered via a nationally recognized overnight courier service to the party at the address first written above in the Preamble, on the second business day; or otherwise, within five (5) days after dispatch by registered or certified mail, postage prepaid, return receipt requested, to the party to whom the same is so given or made or at such other address as the one party shall specify to the other party in writing.
  
 (k) It is acknowledged, understood and agreed by the parties hereto that they had the opportunity to seek independent legal counsel of its choice prior to the execution and delivery of this Agreement. Any axiom of law requiring construction of a document against the draft or thereof is hereby waived. The parties hereto have freely, of their own respective will, executed this Agreement without any undue influence, coercion, duress or other circumstances to bring into question the validity, enforceability and/or execution of this Agreement.
   
 	 
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 IN WITNESS WHEREOF, Investor and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.
  
 	 	 COMPANY:
  
 COSMOS HOLDINGS INC.
	
	 	 	 	 
		By:	/s/ George Terzis 	
	  
	  
	Name: George Terzis 	 
	 	 	Title: Chief Financial Officer	 
	  
	  
	  
	  

	  
	 INVESTOR
	  

	  
	  
	  
	  

	  
	  
	 /s/ Grigorios Siokas 
	  

	  
	  
	 Name: Grigorios Siokas
Title: Chief Executive Officer
	  

	 	 	 	 
	  
	 Aggregate Principal Amount of Indebtedness:
	  

	  
	  
	  
	  

	  
	  
	 $1,000,000.00
	  

  
 	 
	6Exhibit 10.1

 

Biomass
Tolling Agreement

 

THIS BIOMASS TOLLING AGREEMENT
(this “Agreement”) is entered into as of the 30th day of June, 2021 (the “Effective Date”)
by and between GenCanna Acquisition Corp., a Delaware corporation, having an address of 4274 Colby Road, Winchester, Kentucky 40392
(“GAC”), and GENH Halcyon Acquisition, LLC, LLC, a Texas limited liability company, having an address of 222
W. Exchange Avenue, Fort Worth, Texas 76164 (“Halcyon”). GAC and Halcyon are referred to collectively as the “Parties”
and individually as a “Party”.

 

RECITALS

 

A. GAC
is a vertically integrated seed to sale company engaged in the business of, among others, cultivating and harvesting Biomass (as defined
below) for processing and extraction into product and selling such product;

 

B. Halcyon
is involved in the business of providing post-harvest and midstream services to the hemp industry, including drying, processing and cleaning
services at Halcyon’s facility located in Hopkinsville, Kentucky (“Halcyon Facility”); and

 

C. The
Parties desire to enter into a tolling agreement whereby Halcyon will dry Biomass (as defined herein).

 

The Parties hereby agree as
follows:

1. Term.

 

1.1 The
initial term of this Agreement shall commence on the Effective Date and shall continue until December 31, 2022 (the “Initial
Term”), unless terminated earlier pursuant to Section 6 hereof. Thereafter, the Initial Term may be automatically extended
for a period of six (6) months as provided for in Section 3.10 below or the Parties may elect to extend the term of this Agreement
upon sixty (60) days’ notice for additional six (6) month periods by mutual written agreement (each a “Renewal Period”,
and all Renewal Periods collectively with the Initial Term, the “Term”).

 

2.
GAC Biomass.

 

2.1 “Biomass”
means industrial hemp, whether wet or dried, grown in compliance with state and federal law, properly tested to ensure compliance with
tetrahydrocannabinol (“THC”) restrictions, and with respect to the dried Biomass, lawfully and timely harvested, and
chopped into 3/8-1 3/16” pieces, and baled into bales not to exceed 2,500 pounds.

 

2.2 GAC
owns approximately eight (8) million pounds of wet Biomass (the “GAC Biomass”). The GAC Biomass is currently located
at a facility formerly owned by Vertical Wellness, Inc. (“Vertical Wellness”) situated at 134 Roger Thomas Road, Cadiz, Kentucky
42211 (“Vertical Wellness Facility”).

 

2.3 Except as expressly
provided herein, GAC shall own all GAC Biomass, including following the drying of GAC Biomass; provided, however, that following any
election under Section 3.5(a) below, title to the 75% of the dried GAC Biomass Lot shall immediately pass to Halcyon as GAC Biomass
is processed and dried.

 

     

     

    

 

3. Drying
of Biomass. The respective rights and obligations of the Parties relating to the drying of GAC Biomass
under this Agreement include, without limitation, the following:

 

3.1 Halcyon,
at its sole cost and expense, shall arrange for the loading, transportation and delivery of the GAC Biomass from the formerly owned Vertical
Wellness Facility to the Halcyon Facility. GAC shall provide reasonable and timely access and assistance for the receipt of the GAC Biomass
at the Vertical Wellness Facility, and shall indemnify Halcyon for any actions taken by GAC in providing such access and assistance.

 

3.2 Upon
delivery of the GAC Biomass at the Halcyon Facility, Halcyon shall store the GAC Biomass in a commercially reasonable manner in order
to minimize theft, fire, vandalism, rot, mildew, mold, shrivel, scab, loss, spoilage, other destruction, and contamination, including
by taking commercially reasonable actions, in accordance with industry standards of the industrial hemp industry in the United States,
to secure and protect all GAC Biomass, to in good faith consider all reasonable recommendations by GAC in respect thereof, and to stack
and store the GAC Biomass in a safe and commercially reasonable manner.

 

3.3 Halcyon’s
obligation for storage of the GAC Biomass at the Halcyon Facility during the Term hereof shall continue during the Term. In addition,
for any dried GAC Biomass to be delivered to GAC as provided for in Section 3.5 or Section 3.6 below, Halcyon shall store
the dried GAC Biomass at the Halcyon Facility if requested by GAC. Halcyon’s obligation to store GAC Biomass or dried GAC Biomass,
as the case may be, at the Halcyon Facility shall continue through and including December 31, 2022, and such storage shall be at Halcyon’s
sole cost and expense. Provided however, Halcyon may utilize any crates and liners owned by GAC and containing GAC Biomass at the formerly
owned Vertical Wellness facility subject to the requirement that Halcyon shall return such crates and liners to GAC upon completion of
the drying of the GAC Biomass as provided for in this Agreement. In addition, any excess crates and liners owned by GAC at other locations
will be made available to Halcyon at the Halcyon Facility, at no cost or expense to Halcyon. Following the completion of the Term, such
crates and liners shall be returned to GAC.

 

3.4 
During the Term, Halcyon shall have the option, determined at its sole discretion, to dry all or part of the GAC Biomass provided that
any drying of the GAC Biomass shall be conducted by Halcyon in one (1) million-pound lots or tranches (each a “GAC Biomass Lot”).
Accordingly, Halcyon’s option to dry all or part of the GAC Biomass may be exercised on one (1) or more occasions during the Term
to accommodate individual GAC Biomass Lots. At any time that Halcyon elects to exercise its option to dry all or part of the GAC Biomass,
then Halcyon shall provide written notice thereof (the “Halcyon Drying Notice”) to GAC, such notice to set forth the
volume of GAC Biomass (or the number of GAC Biomass Lots) to be dried and the proposed timing for the completion of drying activities
by Halcyon. The drying of the GAC Biomass by Halcyon shall be conducted in accordance with a schedule mutually agreed to by GAC and Halcyon.
Notwithstanding any other term in this Agreement, Halcyon shall be required to complete the drying of all GAC Biomass (for which Halcyon
exercises its option under this Section 3.4) on or before the expiration of the Agreement. In the event that any GAC Biomass remains
in storage at the Halcyon Facility following such date (other than any Biomass that Halcyon is entitled to under Section 3.5(a)),
the terms of Section 3.10 shall apply to the remaining GAC Biomass (other than any Biomass that Halcyon is entitled to under Section
3.5(a)), and GAC and Halcyon shall proceed under Section 3.10.

 

    2

     

    

 

3.5 Upon
receipt of a Halcyon Drying Notice given pursuant to Section 3.4 above, GAC shall have the option, determined in its sole discretion,
to elect either of the following courses of action for the allocation of the volume of dried GAC Biomass resulting from Halcyon’s
drying of the GAC Biomass. Within two (2) days following receipt of the Halcyon Drying Notice, GAC shall provide written notice to Halcyon
advising Halcyon of GAC’s election to proceed under either Section 3.5(a) or Section 3.5(b) below.

 

		(a)	GAC may elect to require that for each GAC Biomass Lot dried by Halcyon, Halcyon shall deliver twenty-five
percent (25%) of the volume of the dried GAC Biomass Lot to GAC with Halcyon being entitled to keep and retain the remaining seventy-five
percent (75%) of the volume of the dried GAC Biomass Lot. GAC shall be responsible for the cost (including the costs of freight, insurance,
and any applicable fees or duties) of transporting GAC’s portion of the dried GAC Biomass Lot from the Halcyon Facility to GAC’s
facility or to such other third-party location as GAC may direct.

 

The total consideration
to be received by Halcyon for the drying services provided pursuant to this Section 3.5(a) shall be the seventy-five percent (75%)
split of the dried GAC Biomass Lot to be retained by Halcyon as provided for above, and ownership of the seventy-five percent (75%) split
of the dried GAC Biomass Lot shall transfer to Halcyon and GAC shall provide sufficient evidence of the transfer of title as is reasonably
requested by Halcyon.

 

		(b)	GAC may elect to require that for each GAC Biomass Lot dried by Halcyon, Halcyon shall deliver one hundred
percent (100%) of the volume of the dried GAC Biomass Lot to GAC. GAC shall be responsible for the cost (including the costs of freight,
insurance, and any applicable fees or duties) of transporting GAC’s portion of the dried GAC Biomass Lot from the Halcyon Facility
to GAC’s facility or to such other third-party location as GAC may direct.

 

In consideration of
the drying services provided by Halcyon pursuant to this Section 3.5(b), GAC will pay to Halcyon the amount of $0.40 USD per wet
inbound pound of GAC Biomass (the “Drying Fee”). The Drying Fee shall be subject to adjustment as provided for in Section
3.7 below. Payment of the Drying Fee shall be the total consideration to be received by Halcyon for the drying services provided pursuant
to this Section 3.5(b). Halcyon shall submit invoices to GAC weekly. Halcyon’s invoices shall set forth the quantity of GAC
Biomass dried by Halcyon during the period in question and the consideration due as determined based on the Drying Fee. Halcyon’s
invoices shall be due and payable net 45 days following presentation of each invoice. In the event that GAC disputes Halcyon’s invoice
for any reason, GAC shall remain obligated to pay that portion of the invoice that is not subject to dispute in accordance with the terms
of this Section 3.5(b).

 

3.6 At
any time during the Term and provided that Halcyon has not exercised its option to dry all or part of the GAC Biomass as provided for
in Section 3.4 above, GAC shall have the option, determined at its sole discretion, to require that Halcyon initiate drying of
the GAC Biomass by providing written notice thereof (the “GAC Drying Notice”) to Halcyon in one (1) million-pound lots.

 

Within five (5) business days
after receipt of the GAC Drying Notice, Halcyon shall commence drying operations for the GAC Biomass at the rate of approximately 250,000
pounds per week, and not less than 1,000,000 pounds per calendar month. Halcyon shall submit invoices to GAC on a weekly basis during
the course of Halcyon’s drying activities. Halcyon’s invoices shall set forth the quantity of GAC Biomass dried by Halcyon
during the period in question and the consideration due as determined based on the Drying Fee. Halcyon’s invoices shall be due and
payable by GAC net 30 days following presentation of the invoice. In the event that GAC disputes Halcyon’s invoice for any reason,
GAC shall remain obligated to pay that portion of the invoice that is not subject to dispute in accordance with the terms of this Section
3.6. The Drying Fee shall be subject to adjustment as provided for in Section 3.7 below.

 

    3

     

    

 

All GAC Biomass dried by Halcyon
pursuant to this Section 3.6 shall be delivered by Halcyon to GAC. GAC shall be responsible for the cost (including the costs of
freight, insurance, and any applicable fees or duties) of transporting the dried GAC Biomass from the Halcyon Facility to GAC’s
facility or to such other third-party location as GAC may direct.

 

3.7 If
at any time during the Term, the aggregate quantity of GAC Biomass dried by Halcyon and paid for by GAC pursuant to Section 3.5(b)
and/or Section 3.6 above equals or exceeds 4,000,000 pounds of GAC Biomass, then the Drying Fee shall be reduced to $0.375 USD
per wet inbound pound of GAC Biomass for any GAC Biomass exceeding 4,000,000 pounds dried by Halcyon hereunder.

 

3.8 Upon
termination of this Agreement, Halcyon shall provide written notice to GAC advising GAC of the quantity of non-dried GAC Biomass remaining
at the Halcyon Facility. GAC shall then have a right of first refusal to remove and recover all of the non-dried GAC Biomass as reduced
by the volume of GAC Biomass Lots previously dried by Halcyon, if any (such volume being hereinafter referred to as the “Final
Biomass Volume”) from the Halcyon Facility and to arrange for the drying and/or processing thereof by another person or entity,
at GAC’s sole discretion. Within thirty (30) days following GAC’s receipt of Halcyon’s notice given pursuant to this
Section 3.8, GAC shall advise Halcyon of its desire to exercise, or to decline to exercise, its right of first refusal by providing
written notice thereof to Halcyon (the “ROFR Election Notice”). In the event that GAC elects to exercise its right
of first refusal, GAC shall have a period of sixty (60) days from the date of the ROFR Election Notice to remove the Final Biomass Volume
from the Halcyon Facility at GAC’s sole costs and expense.

 

3.9 In
the event that GAC declines to exercise its right of first refusal to remove and recover the Final Biomass Volume from the Halcyon Facility
as provided for in Section 3.8 above, then Halcyon shall physically destroy, or arrange for the physical destruction of, the Final
Biomass Volume at Halcyon’s sole cost and expense. The destruction of the Final Biomass Volume shall be completed by Halcyon not
later than thirty (30) days from the date of the ROFR Election Notice. Halcyon shall promptly deliver to GAC written verification of the
destruction of the Final Biomass Volume with such written verification to be signed by an executive officer of Halcyon. Nothing in this
Section 3.9 shall be construed to affect any of Halcyon’s rights to Halcyon’s portion of the dried GAC Biomass under
Section 3.5(a) of this Agreement..

 

3.10 In
the event that any of the GAC Biomass remains in storage at the Halcyon Facility at the end of the Term, then the Term shall be automatically
extended for an additional period of six (6) months. During such Renewal Period (as defined in Section 1.1 above), either Halcyon
or GAC may elect to exercise their options under Section 3.4 and Section 3.6, respectively, for purposes of drying all or
part of the GAC Biomass remaining in storage at the Halcyon Facility. In the evert that any of the GAC Biomass remains in storage at the
Halcyon Facility at the end of the Renewal Period, Halcyon shall physically destroy, or arrange for the physical destruction of, any such
GAC Biomass in accordance with the destruction and verification requirements set forth in Section 3.9 above. Destruction of the
GAC Biomass pursuant to this Section 3.10 shall be completed not later than thirty (30) days following the end of the Renewal Period.

 

3.11 For
purposes of this Agreement, the dried GAC Biomass produced by Halcyon hereunder shall meet the specifications and packaging requirements
set forth on Exhibit A attached hereto. All dried GAC Biomass shall comply with applicable law, including, without limitation,
Sections 110, and 117 Title 21 of the Code of Federal Regulations.

 

3.12 Halcyon
shall perform the services required pursuant to this Section 3 in a skillful and workmanlike manner consistent with generally accepted
standards and practices in the industrial hemp industry in the United States.

 

    4

     

    

 

3.13 Halcyon
shall, with input from GAC, implement reasonable storage and security protocols at the Halcyon Facility as are customary in the industry
to protect and preserve the GAC Biomass and any dried GAC Biomass.

 

3.14 Halcyon
will provide sufficient qualified personnel and equipment, and processing, storage, and shipment facilities to support Halcyon’s
obligations under this Agreement. Such facilities shall be clean and compliant with applicable laws and GAC’s compliance requirements
and standards.

 

3.15 Halcyon
shall maintain accounting and reporting systems to track the GAC Biomass from receipt at the Halcyon Facility through drying to the point
when dried GAC Biomass is delivered.

 

3.16 Halcyon
shall, upon reasonable notice of not less than forty-eight (48) hours, permit GAC personnel reasonable access to the Halcyon Facility
to perform audits and reviews of Halcyon’s performance of its obligations under this Agreement; provided, however, that such requests
for access are limited to one (1) request per month.

 

4.
Title and Risk of Loss; Access to GAC Biomass.

 

4.1 Except
for any GAC Biomass that Halcyon is entitled to ownership and retention of under Section 3.5(a) of this Agreement, title in and
to the GAC Biomass, including any dried GAC Biomass and any post-processing GAC Biomass shall remain with GAC, with Halcyon possessing
GAC Biomass as GAC’s bailee while GAC Biomass is in Halcyon’s possession or under its control. Risk of loss with respect to
GAC Biomass, any dried GAC Biomass and any post-processing GAC Biomass shall be borne by Halcyon but shall not exceed the amounts of insurance
required under the terms of this Agreement for so long as they are in Halcyon’s possession and under its control and the Parties
shall obtain, bear the cost of and maintain applicable insurance policies with coverages in an amount as is consistent with generally
accepted standards and practices in the industrial hemp industry in the United States (as may reasonably be acquired) for the volumes
of GAC Biomass being dried.

 

4.2 Halcyon
agrees that at any time, GAC or its representatives or invitees may (with reasonable notice) enter upon the Halcyon Facility without any
interference by Halcyon to inspect or remove any or all of the GAC Biomass, any dried GAC Biomass, and any post-processing GAC Biomass
except with respect to any dried GAC Biomass to be retained by Halcyon pursuant to Section 3.5(a) of this Agreement.

 

5.
Consideration; Expenses.

 

5.1 Halcyon’s
retention of a portion of the dried GAC Biomass as provided for in Section 3.5(a) of this Agreement and the payment of the Drying
Fee by GAC to Halcyon pursuant to Section 3.5(b) and/or Section 3.6 shall be the only consideration or payments to be received
by Halcyon for the performance of its obligations under this Agreement.

 

5.2 Except
as otherwise specifically provided in this Agreement, each Party shall bear its own fees and expenses incurred in connection with this
Agreement and in connection with all covenants and obligations required to be performed by such Party under this Agreement.

 

6.
Termination.

 

6.1 Termination
by Mutual Agreement. This Agreement may be terminated upon mutual written agreement of the Parties.

 

    5

     

    

 

6.2 Termination
for Breach. Except as otherwise provided in this Agreement, either Party may terminate this Agreement upon written notice to the other
Party, if such Party breaches or defaults under any material term, covenant, or condition hereunder and fails to cure such material breach
within thirty (30) days after receiving written notice thereof from the non-breaching Party. Any termination under this Section 6.3
shall be without prejudice to any other rights or remedies available to the terminating Party.

 

6.3 Upon
Termination. Termination of this Agreement for any reason shall not discharge either Party’s liability for obligations incurred
hereunder and amounts unpaid at the time of termination or for any other obligations arising hereunder that survive by its terms. Upon
termination, each Party shall return to the other all Confidential Information (as defined below) and other property of the other Party
that is in its possession or under its control at the time of termination.

 

6.4 Survival
of Terms. Any term or condition of this Agreement required for the interpretation or enforcement of this Agreement or necessary for
the full observation and performance by each Party of all rights and obligations arising prior to the date of expiration or termination
shall survive the expiration or termination of this Agreement.

 

7.
Representations, Warranties and Covenants.

 

7.1 Mutual
Representations and Warranties. Each Party represents and warrants to the other that it has the full right, power and authority, including
all necessary licenses, to enter into and perform its responsibilities under this Agreement without the need for any third-party consents
or approvals, and that doing so will not conflict with any other agreement to which it is a party or any other legal obligation by which
it or its assets is bound. Each Party represents and warrants to the other that all of its activities under or in connection with this
Agreement will be in compliance with applicable law.

 

7.2 Halcyon
Services Warranty. Halcyon warrants that all drying and processing services provided by it under this Agreement will be performed
in a professional and workmanlike manner, and in accordance with the requirements of this Agreement, applicable Good Manufacturing Practices,
prevailing industry standards and best practices, and applicable law.

 

8.
Intellectual Property.

 

8.1 GAC
Intellectual Property. GAC shall retain full and complete ownership of its intellectual property, including but not limited to patents,
technological know-how, processes, trademarks, copyrights, and no right, license, title, express or implied, is hereby transferred to
Halcyon by virtue of this Agreement.

 

8.2 Halcyon
Intellectual Property. Halcyon shall retain full and complete ownership of its intellectual property, including but not limited to
patents, technological know-how, processes, trademarks, copyrights, and no right, license, title, express or implied, is hereby transferred
to GAC by virtue of this Agreement.

 

9.
Confidentiality.

 

9.1 Unless
GAC and Halcyon have entered into a separate confidentiality agreement that governs their exchanges of information under or pursuant to
this Agreement, the following provisions of this Section 9 shall apply to the Parties’ respective activities under or in
relation to this Agreement.

 

9.2 For
purposes of this Section 9, the term “Confidential Information” includes the following: (i) all written information
furnished or made available by or obtained from or on behalf of one Party (the “Disclosing Party”) and provided or
disclosed to the other Party (the “Receiving Party”), whether disclosed before or after the Parties’ execution
of this Agreement, whether or not proprietary in nature, and includes all analyses, compilations, studies and other material prepared
by the Receiving Party or their respective Representatives (as defined below) to the extent that such material contains or is based in
whole or in part upon such information furnished hereunder; (ii) the fact that discussions between the Parties are taking place or may
have taken place regarding a proposed business arrangement or transaction and any information pertaining thereto; and (iii) “Trade
Secrets,” which are defined as information, including a formula, pattern, compilation, program, data, device, method, technique,
that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable
by proper means by, other persons who can obtain economic value from its disclosure or use, and (2) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

 

    6

     

    

 

9.3 The
Receiving Party receive all Confidential Information in strict confidence and shall take all reasonable and necessary steps to maintain
and protect the confidentiality and secrecy of the Confidential Information, and shall not disclose, divulge or reveal any Confidential
Information to any third parties without the prior written approval of the Disclosing Party. This obligation of confidentiality shall
not apply to information which (i) is or becomes publicly available by means other than a breach hereof (including, without limitation,
any information filed with any governmental agency and available to the public); (ii) is known to or in the possession of Receiving Party
at the time of disclosure; (iii) thereafter becomes known to or comes into possession of Receiving Party from a third party that Receiving
Party reasonably believes is not under any obligation of confidentiality to the Disclosing Party and is lawfully in the possession of
such information; (iv) is developed by Receiving Party independently of any disclosures made by Disclosing Party to Receiving Party;
(v) is required to be disclosed by order of a court of competent jurisdiction, administrative agency or governmental body, or by subpoena,
summons or other legal process, or by law, rule or regulation, or by applicable regulatory or professional standards, provided that prior
to such disclosure by Receiving Party to the extent possible, Disclosing Party is given reasonable advance notice of such order and an
opportunity to object to such disclosure; or (vi) is disclosed by Receiving Party in connection with any judicial or other legal proceeding
involving Receiving Party and Disclosing Party relating to this Agreement.

 

9.4 Nothing
in this Agreement is intended to grant any license or any intellectual property or other rights to the Receiving Party in the Confidential
Information of the Disclosing Party.

 

10.
Indemnification.

 

10.1 By
Each Party. Each Party (the “Indemnifying Party”) agrees to defend, indemnify, and hold harmless the other Party
(the “Indemnified Party”), its affiliates, and their respective officers, directors, shareholders, members, employees,
agents and representatives from and against any claim (i) for bodily injury (including death) or damage to tangible property resulting
from the negligence or willful misconduct of the Indemnifying Party or any of its representatives; (ii) that, if true, would constitute
or be attributable to a breach of the Indemnifying Party’s covenants or obligations contained herein or the representations and
warranties of the Indemnifying Party provided in Section 7 above; or (iii) that, if true, would constitute or be attributable to
the Indemnifying Party’s failure to comply with applicable law; and, in any of such cases, from and against all resulting indemnifiable
losses.

 

10.2 Procedures
for Indemnification. Promptly after receipt of notice of any claim giving rise to a claim for indemnification hereunder, the Indemnified
Party will provide the Indemnifying Party with written notice of the claim. Failure to notify the Indemnifying Party will not relieve
the Indemnifying Party of its indemnification obligations except to the extent that the failure or delay is prejudicial to the defense
or settlement of the claim. The Indemnified Party will provide the Indemnifying Party with reasonable cooperation and assistance in the
defense or settlement of any claim (at the Indemnifying Party’s cost and expense) and grant the Indemnifying Party control over
the defense and settlement of the claim; provided, however, that any indemnified person shall be entitled to participate in the defense
of the claim and to employ counsel at its own expense to assist in the handling of the claim. The Indemnifying Party shall not agree to
any settlement that results in an admission of liability by the Indemnified Party or an indemnified person without the Indemnified Party’s
prior written consent, which consent shall not be unreasonably withheld or delayed. If the Indemnifying Party fails to assume the defense
of any claim, or does not diligently pursue its defense or settlement, the Indemnified Party may retain counsel and defend (or settle)
the claim at the cost and expense of the Indemnifying Party.

 

    7

     

    

 

10.3 SOLE
REMEDY. THIS SECTION 10 STATES THE ENTIRE OBLIGATION OF THE PARTIES AND EXCLUSIVE REMEDIES WITH RESPECT TO THE PARTIES’
INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT.

 

11.
Force Majeure.

 

11.1 If
either Party is prevented from timely carrying out and fulfilling its obligations under this Agreement due to circumstances beyond its
reasonable control and not caused by its own fault or negligence (including (i) acts of God, (ii) strikes, lockouts or acts of the public
enemy, (iii) wars, blockades, insurrections, riots, epidemics, acts of terrorism, (iv) transportation shortages, (v) landslides, lightning,
earthquakes, fires, storms, floods, washouts, tornadoes, (vi) civil disturbances, and (vii) explosions), such Party shall promptly give
written notice and reasonably complete particulars of such circumstances to the other Party, stating the obligation(s) the performance
of which is, or is expected to be, delayed or prevented. The obligations of the notifying Party shall be suspended during and to the extent
affected by the event and the Party whose performance is impaired thereby shall, so far as possible, resume performance with all reasonable
dispatch.

 

12.
Insurance.

 

12.1 During
the Term and for a period of twelve (12) months following expiration or termination thereof, each Party shall, to the extent available
at a commercially reasonable cost, procure and maintain with financially sound and reputable insurers the types and amounts of insurance
coverage as are typically carried in the applicable industries and applicable law, which shall be reviewed periodically by GAC and Halcyon
and the types and amounts of insurance coverage shall be adjusted accordingly. Halcyon shall name GAC as an Additional Insured on its
commercial insurance policies.

 

13.
Notices.

 

13.1 Any
notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed received when
delivered personally or by overnight courier at the time the courier indicates that the notice was received. A copy may be sent by facsimile
or email. Notices shall be sent to the addresses below, or to such other address as requested in writing by a Party.

 

If to GAC:

 

GenCanna Acquisition Corp.

4274 Colby Road

Winchester, Kentucky 40392

Attn: Andrew Barnett, Chief Executive
Officer

Phone: ________________

Email: ________________

 

    8

     

    

 

If to Halcyon:

 

GENH Halcyon Acquisition, LLC

P.O. Box 540308

Dallas, Texas 75209

Attn: Gary Evans

Phone: 214-533-6565

Email: gevans@genhempinc.com

 

14.
Miscellaneous.

 

14.1 Assignment.
Neither this Agreement, nor any of the rights or obligations of the Parties hereunder, may be transferred or assigned by either Party
without the prior written consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed, except
that (a) GAC may, without Halcyon’s consent (but with notice to Halcyon pursuant to Section 13), assign or transfer any or
all of its rights or obligations under this Agreement to any assignee, successor or transferee who acquires GAC, and (b) Halcyon shall,
without GAC’s consent (but with notice to GAC pursuant to Section 13), assign or transfer any or all of its rights or obligations
under this Agreement to any assignee, successor or transferee who acquires Halcyon, in each case, regardless of whether such acquisition
takes the form of an acquisition of stock or other equity interests, an acquisition of all or substantially all of Halcyon’s assets,
a merger or other combination of Halcyon with and/or into another entity, or otherwise. Any purported assignment of this Agreement in
contravention of this Section 14.1 is void and of no effect. This Agreement shall inure to the benefit of the successors and permitted
assigns of the Parties.

 

14.2 Governing
Law; Waiver of Jury Trial. The Agreement will be interpreted, construed, and enforced in accordance with the procedural, substantive
and other laws of the Commonwealth of Kentucky without giving effect to conflicts of law principles and provisions thereof. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THE PARTIES AGREE TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTERCLAIM OR ACTION ARISING
FROM THE TERMS OF THIS AGREEMENT.

 

14.3 Venue
for Legal Actions. All actions and proceedings arising out of or relating to this Agreement shall be heard and determined in the state
or federal district courts sitting in Fayette County, Kentucky. Each Party consents to personal jurisdiction in any legal action, lawsuit
or proceeding with respect to this Agreement in any court, federal or state, within Fayette County, Kentucky, having subject matter jurisdiction
and with respect to any such claim, each Party irrevocably waives, to the fullest extent permitted by law, any claim, or any objection
that such Party may now or hereafter have, that venue or jurisdiction is not proper with respect to any such legal action, suit or proceedings
brought in such court in Fayette County, Kentucky, including any claim that such legal action, suit or proceeding brought in such court
has been brought in an inconvenient forum and any claim that such Party is not subject to personal jurisdiction or service of process
in such Fayette County, Kentucky forum.

 

14.4 Entire
Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter contained herein
and any and all previous agreements, written or oral, express or implied, between the Parties or on their behalf relating to the matters
contained herein are hereby terminated and canceled.

 

14.5 Amendments.
There will be no modification of the terms and provisions hereof except by a mutual agreement in writing signed by the Parties. Any attempt
to so modify this Agreement in the absence of such writing signed by the Parties shall be considered void and of no effect.

 

    9

     

    

 

14.6 Cumulative
Remedies. Unless otherwise specifically provided in this Agreement, the rights, powers, and remedies of each of the Parties provided
in this Agreement are cumulative and the exercise of any right, power, or remedy under this Agreement does not affect any other right,
power, or remedy that may be available to either Party under this Agreement or otherwise at law or in equity.

 

14.7 Faithful
Performance and Good Faith. The Parties shall faithfully perform and discharge their respective obligations in this Agreement and
endeavor in good faith to negotiate and settle all matters arising during the performance of this Agreement that are not specifically
provided for herein.

 

14.8 Relationship
of the Parties. Except as otherwise expressly provided herein, this Agreement shall not create or be construed to create in any respect
a partnership or any agency or joint venture relationship between the Parties. The relationship of Halcyon and GAC established by this
Agreement is that of independent contractors, and nothing contained in this Agreement shall be construed (i) to give either Party the
power to unilaterally direct and control the day-to-day activities of the other; or (ii) to constitute the Parties as partners, joint
venturers or co-owners. Except as otherwise provided herein, nothing contained in this Agreement shall be construed as conferring any
right or benefit on a person not a Party to this Agreement.

 

14.9 Third
Party Beneficiaries. There are no intended third-party beneficiaries of this Agreement.

 

14.10 Counterparts.
This Agreement may be executed in multiple counterparts with the same effect as if GAC and Halcyon had signed the same document, and all
counterparts will be construed together and constituted as one and the same instrument. Each counterpart signature may be executed and
delivered to the other Party by facsimile machine or electronic transfer, and the signature as so transmitted shall be as binding upon
the executing Party as its original signature, without the necessity of the recipient Party to establish original execution or the existence
of a signed original.

 

14.11 Severability.
Any provision of this Agreement which is or becomes prohibited or unenforceable in any jurisdiction shall not invalidate or impair the
remaining provisions of this Agreement, and the remaining terms of this Agreement shall continue in full force and effect. If allowed
by the law of the applicable jurisdiction, the unenforceable provision(s) shall be amended to the extent necessary to be enforceable while
conforming as closely as possible to the original intent of this Agreement and, as so amended, this Agreement shall continue in full force
and effect.

 

14.12 Headings;
Construction. The section and subsection headings used herein are for convenience of reference only and shall not affect the construction
or interpretation of this Agreement. Unless the context of this Agreement otherwise requires, (i) words of any gender shall be deemed
to include each other gender; (ii) words using the singular or plural number shall also include the plural or singular number, respectively;
and (iii) the terms “hereof,” “herein,” “hereby,” “hereto,” and derivative or similar
words shall refer to this entire Agreement. References herein to Sections and Attachments are to this Agreement’s provisions and
Attachments, respectively.

 

14.13 Waiver.
No delay or omission in the exercise of any right, power, or remedy hereunder shall impair such right, power, or remedy or be construed
to be a waiver of any default or acquiescence therein.

 

14.14 Interpretation.
This Agreement shall not be interpreted against the Party drafting or causing the drafting of this Agreement. All Parties hereto have
participated in the preparation of this Agreement.

 

[
Signature Page Follows]

 

    10

     

    

 

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

 

	GenCanna Acquisition Corp.	 	GENH Halcyon Acquisition, LLC
	 	 	 	 	 
	By:	/s/ Andrew G. Barnett	 	By:	/s/ Gary C. Evans
	Name:	Andrew G. Barnett	 	Name:	Gary C. Evans
	Title:	Chief Executive Officer	 	Title:	Chairman and Chief Executive Officer

 

    11

     

    

 

EXHIBIT A

 

Product Specifications

 

GAC Biomass Specifications: Green, dry or
wet Biomass chopped to 3/8“-1 3/16” pieces with less than 0.03% THC, calculated on a dry-weight basis, grown in compliance
with the requirements of the USDA, State, or federally recognized tribe, as the case may be, by a licensed grower.

 

Product Specifications:

 

The dried GAC Biomass will have moisture content
of 10% or less. Before packaging and delivery to GAC, Halcyon shall pack and seal the weighed and dried GAC Biomass in bags and stored
in crates containing approximately 250 kilograms of dried GAC Biomass each.

 

 

12

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