Document:

ASSET
PURCHASE AGREEMENT

 

between

 

GREEN
SPIRIT MENDOCINO, LLC

 

and

 

COASTAL
PATIENT NETWORK

d/b/a
The Green Room Wellness Center

a
California not-for-profit mutual benefit corporation

 

dated
as of

 

MARCH
7, 2018

 

    	 

     

    

 

ASSET
PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (this “Agreement”), dated as of March 7, 2018, is entered into by and between COASTAL
PATIENT NETWORK d/b/a THE GREEN ROOM, a California not-for-profit mutual benefit corporation (the “Seller”),
and GREEN SPIRIT MENDOCINO, LLC, a California limited liability company (“Buyer”). Seller and Buyer
are sometimes referred to individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS,
Seller owns and operates a cannabis dispensary, operating under the name “THE GREEN ROOM” located at 138 Main Street,
Point Arena, CA 95468 (the “Business”); and

 

WHEREAS,
Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, the rights and obligations of
Seller to the Purchased Assets (as defined herein), subject to the terms and conditions set forth herein.

 

NOW,
THEREFORE, 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

Purchase
and Sale

 

Section
1.01 Purchase and Sale of Assets. Subject to the terms and conditions set forth herein, Seller shall sell, assign, transfer,
convey and deliver to Buyer, and Buyer shall purchase from Seller, all of Seller’s right, title and interest in all of the
assets (except as those described in Section 1.02) associated with and/or required to operate the Business, including, without
limitation, the following assets:

 

(a)
All of Seller’s cash, money market accounts, prepaid expenses, and other cash equivalents of Seller as of the Closing (as
defined in Section 2.01) (the “Cash and Cash Equivalents”);

 

(b)
All of Seller’s equipment, inventory, and office supplies as of the Closing (the “Equipment, Inventory and Supplies”);

 

(c)
All of Seller’s accounts and accounts and receivable income as of and after the Closing (the “Receivables”);

 

(d)
All governmental authorizations, pending applications, pending licenses therefor or renewals thereof, in each case to the extent
transferable to Buyer (the “Governmental Licenses”);

 

(e)
All of Seller’s rights in and to the trade name “The Green Room” for use in connection with a cannabis dispensary
(the “Trade Name”); and

 

    	 

     

    

 

(f)
All other intangible assets associated with the Business, including those assets described in Section 1.01 of the Disclosure Schedules,
and the proprietary rights, phone numbers, trade secrets, the domain name thegreenroomcollective.org, business records, customer
relationships, contracts and goodwill relating to the Business (the “Intangible Assets”);

 

(g)
As defined herein, “Purchased Assets” refers to the Equipment, Inventory and Supplies, Trade Name and Intangible
Assets as set forth in Section 1.01 of the Disclosure Schedules. The Purchased Assets shall be free and clear of any mortgage,
pledge, lien, charge, security interest, claim or other encumbrance (“Encumbrance”).

 

Section
1.02 Excluded Assets. Notwithstanding the foregoing, the Purchased Assets shall not include the following: the domain name
cannabismendocino.com (the “Excluded Assets”).

 

Section
1.03 No Liabilities. Except as specifically set forth herein, the Parties hereby acknowledge and agree that all other debts,
claims, obligations and liabilities whatsoever of Seller shall be the sole responsibility of Seller, and that Buyer is not assuming,
and shall not be obligated or deemed to assume, such debt, claim or liability of Seller or any debt, claim or liability associated
with the Business or the Purchased Assets of any kind, whether known or unknown, contingent, matured or otherwise, whether currently
existing or hereinafter created.

 

Section
1.04 Purchase Price. The aggregate purchase price for the Purchased Assets shall be Three Hundred and Fifty Thousand Dollars
($350,000), which takes into account the non-refundable deposit in an amount equal to two percent (2%), or Seven Thousand Dollars
($7,000) held in escrow (the “Purchase Price”). Distributions for this sale will be $315,000 (which includes
the $7,000 held in escrow) to Seller and $35,000 to the broker named in Section 3.12 herein, in full, at the Closing (as defined
herein)accordance with this Section 1.04 and Section 2.01 herein, in cash, by wire transfer of immediately available
funds in accordance with the wire transfer instructions set forth in Section 1.04 of the Disclosure Schedules. Subject
to the terms and conditions set forth in Section 2.01 herein, the Purchase Price shall be paid as follows: (i) a nonrefundable
payment of Thirty Five Thousand Dollars ($35,000) to Seller, which shall be triggered by the execution of this Agreement (“Initial
Closing”) as defined herein, (ii) a nonrefundable payment of Two Hundred and Thirty Thousand Dollars ($230,000) to Seller
upon Buyer obtaining local authorization for either medical or adult-use cannabis retail activities from the City of Point Arena
(“Local Authorization”) (“Second Closing”) as defined herein, and (iii) a nonrefundable
payment of Fifty Thousand Dollars ($50,000) to Seller upon the issuance of a State of California Temporary License to operate
a Cannabis store front retail location at the subject property (“Final Closing”) as defined herein. Thirty
Five Thousand Dollars ($35,000) in broker commissions shall be paid at the Final Closing as set forth in Section 3.12. Buyer agrees
to use best efforts to satisfy all conditions of this Agreement in an expeditious manner, including obtaining a local and State
authorizations as enumerated herein. Buyer shall deposit into escrow the balance of the Purchase Price upon execution of this
Agreement, and all payments referenced in this Section 1.04 shall be tendered to Seller promptly after the triggering payment
event. It is agreed between the Parties that upon the triggering events for payment noted in this Section 1.04 and Section 2.01
herein, that Seller will tender payments as agreed, and that no other basis (with the exception of fraud or material misrepresentation)
shall exist to withhold payments as required for the Initial Closing, Second Closing or Final Closing.

 

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Section
1.05 Allocation of Purchase Price. Seller and Buyer agree to allocate the Purchase Price among the Purchased Assets for all
purposes (including tax and financial accounting) in accordance with Section 1.05 of the Disclosure Schedules/as agreed
by their respective accountants, negotiating in good faith on their behalf. Buyer and Seller shall file all tax returns (including
amended returns and claims for refund) and information reports in a manner consistent with such allocation and generally accepted
accounting principles.

 

Section
1.06 Training, Transition & Consulting. Buyer agrees and acknowledges that it is experienced in similar business to that
of Seller and accepts minimal training, transitioning and consulting from Seller. For a period of up to 30 days following the
Final Closing (as defined herein) (the “Transition Period”), Seller or Seller’s representative agrees
to provide up to forty (40) hours of on-site training to Buyer and Buyer’s representatives at no additional cost, so as
to convey the operational knowledge of the Business to enable the Buyer to become acquainted with the Business. Seller or Seller’s
representative agree to be available to Buyer for additional training during the Transition Period as needed, at a rate of $45.00
USD per hour. All training is to be scheduled in advance at mutually convenient times and dates. Seller shall respond to phone
calls and emails during the Transition period no later than within twenty-four hours.

 

Section
1.07 Agreement Not to Compete. As part of the consideration herein paid, the individuals named on the signature page hereto
on behalf of Seller each covenant to Buyer stipulating that they each will not engage, either directly or indirectly, in the Retail
Cannabis Business within a one hundred (100) mile radius of 138 Main Street, Point Arena, CA 95468, and will not solicit existing
or previous business employees for a term of one (1) year from the date of Closing. As used herein, “Retail Cannabis
Business” means a retail store front cannabis establishment and does not include other types of cannabis businesses.

 

Section
1.08 Withholding Tax. Buyer shall pay all sales and use taxes arising from the transfer of the Purchased Assets and shall
pay its portion, prorated as of the Closing Date, of state and local real and personal property taxes of the business. Buyer agrees
to indemnify, defend, and hold Seller harmless from and against any liability for, or arising from, any taxes that are required
to be paid by Buyer under this paragraph or for which Seller is not responsible under this paragraph. Buyer shall place an additional
$212.63 in escrow for purposes of paying all taxes due pursuant to this section.

 

    	 	3	 

     

    

 

Article
II

Closing

 

Section
2.01

 

(a)
Closing. Subject to the terms and conditions of this Agreement, the closing of the transactions contemplated by this Agreement
(the “Closing”) shall occur upon execution of this Agreement and the simultaneous exchange of signatures to
all documents in the manner set forth herein and the occurrence of the Initial Closing, the Second Closing and the Final Closing
as set forth in subparagraphs (a) through (c) of this Section 2.01 (collectively, the “Closing”). The
Closing shall be held remotely via a simultaneous exchange of signatures to all documents required for the Closing by facsimile
or .pdf (with original signatures to be sent for next business day delivery by an internationally recognized overnight courier).
All matters at the Closing, including the effectiveness of this Agreement, shall be considered to take place simultaneously and
no delivery of any document shall be deemed complete until all transactions and payments have been made and all deliveries of
documents are completed (the “Closing Date”). The consummation of the transactions contemplated by this Agreement
shall be deemed to occur at 12:01 a.m. EST on the Closing Date. For the avoidance of doubt, the transactions contemplated by this
Agreement shall be deemed complete only upon the occurrence of the Initial Closing, the Second Closing and the Final Closing as
set forth in subparagraphs (a) through (c) of this Section 2.01, and title to cannabis, cannabis products or such related
paraphernalia shall not pass to Buyer until Buy is in possession of all local and state temporary authorization necessary to purchase,
store, sell and otherwise process cannabis for commercial purposes.

 

(b)
Initial Closing. The Initial Closing shall occur upon execution of this Agreement and the simultaneous exchange of signatures
to all documents in the manner set forth in this Section 2.01. At the Initial Closing, Buyer shall release Thirty Five Thousand
Dollars ($35,000), of the Purchase Price to Seller in accordance with Section 1.04 hereof.

 

(c)
Second Closing. The Second Closing shall occur once Buyer is awarded local authorization in the form of an annual permit
from the City of Point Arena for the operation of a cannabis Retail Storefront for medical and/or adult-use cannabis. At the Second
Closing, Buyer shall release Two Hundred and Thirty Thousand Dollars ($230,000) of the Purchase Price to Seller in accordance
with Section 1.04 hereof.

 

(d)
Final Closing. The Final Closing shall occur upon Buyer’s receipt of its temporary license from the State of California
for the operation of a cannabis Retail Storefront for medical and/or adult-use cannabis. At the Final Closing, Buyer shall release
Fifty Thousand Dollars ($50,000) of the Purchase Price to Seller in accordance with Section 1.04 hereof. Final Closing
shall occur upon 100% distribution of the Purchase Price.

 

    	 	4	 

     

    

 

Section
2.02 Closing Deliverables.

 

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

 

(i)
an assignment and bill of sale in the form of Exhibit A hereto (the “Bill of Sale”) and duly executed
by Seller, effecting and assignment and transferring the Purchased Assets to Buyer;

 

(ii)
an assignment(s) in the form of Exhibit B hereto (the “Intellectual Property Assignments”) and duly
executed by Seller, transferring all of Seller’s right, title and interest in and to the Trade Name, the “THE GREEN
ROOM”, and domain name registrations included in the Purchased Assets to Buyer;

 

(iii)
copies of all consents, approvals, waivers and authorizations referred to in Section 3.02 of the Disclosure Schedules,
including but not limited to a unanimous written consent of the board of directors of Seller approving and authorizing this Agreement;

 

(iv)
a certificate pursuant to Treasury Regulations Section 1.1445-2(b) that Seller is not a foreign person within the meaning of Section
1445 of the Internal Revenue Code duly executed by Seller;

 

(v)
tax clearance certificates from the taxing authorities in the jurisdictions that impose taxes on Seller or where Seller has a
duty to file tax returns in connection with the transactions contemplated by this Agreement and evidence of the payment in full
or other satisfaction of any taxes owed by Seller in those jurisdictions;

 

(vi)
a certificate of the Secretary or Assistant Secretary (or equivalent officer) of Seller certifying as to (A) the resolutions of
the board of directors of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this
Agreement and the transactions contemplated hereby, and (B) the names and signatures of the officers of Seller authorized to sign
this Agreement and the documents to be delivered hereunder;

 

(vii)
such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory
to Buyer, as may be required to give effect to this Agreement; and

 

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

 

(i)
the Purchase Price;

 

(ii)
copies of all consents and authorizations referred to in Section 4.02 of the Disclosure Schedules; and

 

(iii)
a certificate of the Secretary or Assistant Secretary (or equivalent officer) of Buyer certifying as to (A) the resolutions of
the board of directors of Buyer, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement
and the transactions contemplated hereby, and (B) the names and signatures of the officers of Buyer authorized to sign this Agreement
and the documents to be delivered hereunder.

 

    	 	5	 

     

    

 

Article
III

Representations
and warranties of seller

 

Seller
represents and warrants to Buyer that the statements contained in this Article III are true and correct as of the date
hereof. For purposes of this Article III, “Seller’s knowledge,” “knowledge of Seller” and
any similar phrases shall mean the actual or constructive knowledge of any director or officer of Seller that each such person
would have reasonably obtained in the performance of each such person’s duties as an officer or director of the Company.

 

Section
3.01 Organization and Authority of Seller; Enforceability. Seller is a not-for-profit mutual benefit corporation duly organized,
validly existing and in good standing under the laws of the state of California. Pursuant to the Bylaws of Seller and in accordance
with the California Corporations Code, Seller has full corporate power and authority to enter into this Agreement and the documents
to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The
execution, delivery and performance by Seller of this Agreement and the documents to be delivered hereunder and the consummation
of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Seller, its
board of its directors and its members. This Agreement and the documents to be delivered hereunder have been duly executed and
delivered by the members of the board of directors of and on behalf of Seller, and (assuming due authorization, execution and
delivery by Buyer) this Agreement and the documents to be delivered hereunder constitute legal, valid and binding obligations
of Seller, enforceable against Seller in accordance with their respective terms.

 

Section
3.02 No Conflicts; Consents. The execution, delivery and performance by Seller of this Agreement and the documents to be delivered
hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the
certificate of incorporation, by-laws or other organizational documents of Seller; (b) violate or conflict with any judgment,
order, decree, statute, law, ordinance, rule or regulation applicable to Seller or the Purchased Assets; (c) conflict with, or
result in (with or without notice or lapse of time or both) any violation of, or default under, or give rise to a right of termination,
acceleration or modification of any obligation or loss of any benefit under any contract or other instrument to which Seller is
a party or to which any of the Purchased Assets are subject; or (d) result in the creation or imposition of any Encumbrance on
the Purchased Assets. To the best of Seller’s knowledge, no consent, approval, waiver or authorization is required to be
obtained by Seller from any other person or entity (including any governmental authority) in connection with the execution, delivery
and performance by Seller of this Agreement and the consummation of the transactions contemplated hereby.

 

Section
3.03 Business Operations. Seller has not materially altered the conduct of its Business, and has not taken any action; made
any sales, loans or liquidations outside the ordinary course of business; altered any business or accounting practices; changed
business hours; or entered into any unusual transactions that are likely to have any adverse effect on the value of the business
from the time of the Non-Binding Letter of Intent November 9, 2017 through the date of Closing.

 

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Section
3.04 Title to Purchased Assets. Seller has and will convey to Buyer good and marketable title to the Purchased Assets, free
and clear of Encumbrances.

 

Section
3.05 Condition of Assets and Inventory. Subject to the express representations and warranties of Seller set forth in this
Agreement, the Purchased Assets, inclusive of all inventory, finished goods, raw materials, work in progress, packaging, supplies,
parts and other inventories included in the Purchased Assets, are being sold in an AS IS, WHERE IS condition and WITH ALL FAULTS
as of the date of this Agreement and of Closing. Except as expressly set forth in this Agreement, no representations or warranties
have been made or are made and no responsibility has been or is assumed by Seller as to (i) the condition or state of repair of
the Purchased Assets; (ii) the compliance or non-compliance of the Purchased Assets with any applicable laws, regulations, or
ordinances; (iii) the value, expense of operation, or income potential of the Purchased Assets; or (iv) any other fact or condition
which has or might affect the Purchased Assets or the condition, state of repair, compliance, value, expense of operation, or
income potential of the Purchased Assets or any portion thereof. The parties agree that this Agreement has been entered into after
full investigation by Buyer, or with the parties satisfied with the opportunity afforded for full investigation, neither party
relying upon any statement or representation by the other unless such statement or representation is specifically embodied in
this Agreement.

 

Section
3.06 Taxes. Seller has in a timely manner filed, or will file in a timely manner, all federal, state and local tax returns
relating to the Purchased Assets or the Business, including, but not limited to, those taxes with respect to income, property,
worker’s compensation, employment, and unemployment, and has paid all taxes, penalties and interest on said returns or arising
therefrom.

 

Section
3.07 Labor. To its best knowledge, Seller has acted in compliance with all applicable laws respecting employment and is not
engaged in any unfair labor practice.

 

Section
3.08 Litigation. To the best of Seller’s knowledge, there is no pending or anticipated litigation, proceeding, investigation,
controversy, judgment, order, writ, injunction or decree which would jeopardize the Business or Buyer’s title to the assets
being sold.

 

Section
3.09 Marketable Condition. Seller represents to Buyer that it has no present knowledge of any forthcoming or significant changes
within the cannabis industry, retail business or otherwise, within the City of Point Arena, County of Mendocino, State of California,
that would materially and adversely alter Seller’s market position; provided that Buyer acknowledges it is aware of and
has reviewed Ordinance No. 232 of the City Council of the City of Point Arena Amending and Updating Chapter 5.20 of the Point
Arena Municipal Code Pertaining to the Regulation of Cannabis for Both Medical and Adult Use, which goes into effect on January
20, 2018, as well as Resolution 2017-21 regarding fees for Cannabis Business Licensing.

 

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Section
3.10 Intellectual Property.

 

(a)
“Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks
and service marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the
foregoing; (ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential
know-how; (iv) patents and patent applications; (v) internet domain name registrations; and (vi) other intellectual property and
related proprietary rights, interests and protections (including all rights to sue and recover and retain damages, costs and attorneys’
fees for past, present and future infringement and any other rights relating to any of the foregoing).

 

(b)
Section 3.10(b) of the Disclosure Schedules lists all Intellectual Property included in the Purchased Assets (“Purchased
IP”). Seller has used the Purchased IP on retail cannabis services since at least as early as April 20, 2016 in the
City of Point Arena, Mendocino County, State of California (“IP Territory”). Seller is not bound by any outstanding
judgment, injunction, order or decree restricting the use of the Purchased IP, or restricting the licensing thereof to any person
or entity.

 

(c)
To the best of Seller’s knowledge, Seller’s prior and current use of the Purchased IP in the IP Territory has not
and does not infringe, violate, dilute or misappropriate the Intellectual Property of any other person or entity and there are
no claims pending or threatened by any person or entity with respect to the ownership, validity, enforceability, effectiveness
or use of the Purchased IP. To the best of Seller’s knowledge, no person or entity is infringing, misappropriating, diluting
or otherwise violating any of the Purchased IP within the IP Territory, and neither Seller nor any affiliate of Seller has made
or asserted any claim, demand or notice against any person or entity alleging any such infringement, misappropriation, dilution
or other violation.

 

Section
3.11 Permits. Section 3.11 of the Disclosure Schedules lists all permits, licenses, approvals, authorizations, and similar
rights obtained from governmental authorities included in the Purchased Assets (the “Transferred Permits”).
The Transferred Permits are valid and in full force and effect. All fees and charges with respect to such Transferred Permits
as of the date hereof have been paid in full. To the best of Seller’s knowledge, no event has occurred that, with or without
notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, or limitation of any Transferred
Permit; provided that, Buyer acknowledges Transferred Permits may be temporary or annual in nature and thus subject to renewal
in accordance with the laws and regulations of applicable jurisdictions, state and local.

 

    	 	8	 

     

    

 

Section
3.12 Non-foreign Status. Seller is not a “foreign person” as that term is used in Treasury Regulations Section
1.1445-2.

 

Section
3.13 Compliance With Laws. To the best of Seller’s knowledge, Seller has complied, and is now complying, with all applicable
state and local laws and regulations applicable to ownership and use of the Purchased Assets.

 

Section
3.14 Legal Proceedings. There is no claim, action, suit, proceeding or governmental investigation (“Action”)
of any nature pending or, to Seller’s knowledge, threatened against or by Seller (a) relating to or affecting the Purchased
Assets or the Assumed Liabilities; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated
by this Agreement. To the best of Seller’s knowledge, no event has occurred or circumstances exist that may give rise to,
or serve as a basis for, any such Action.

 

Section
3.15 Brokers. Except for GREENLIFE BUSINESS, 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
3.16 Full Disclosure. No representation or warranty by Seller in this Agreement and no statement contained in the Disclosure
Schedules to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant to this Agreement
contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained
therein, in light of the circumstances in which they are made, not misleading.

 

Section
3.17 Scope of Representations and Warranties. Notwithstanding anything to the contrary contained in this Agreement, it is
the explicit intent of each party hereto that Seller is making no representation or warranty whatsoever, express or implied, including
but not limited to any implied representation or warranty as to condition, merchantability, or suitability as to any of the Purchased
Assets, except those representations and warranties contained in this Section 3.

 

Article
IV

Representations
and warranties of buyer

 

Buyer
represents and warrants to Seller that the statements contained in this Article IV are true and correct as of the date
hereof. For purposes of this Article IV, “Buyer’s knowledge,” “knowledge of Buyer” and any
similar phrases shall mean the actual or constructive knowledge of any director or officer of Buyer, after due inquiry.

 

    	 	9	 

     

    

 

Section
4.01 Organization and Authority of Buyer; Enforceability. Buyer is a limited liability company duly organized, validly existing
and in good standing under the laws of the state of California. Buyer has full corporate power and authority to enter into this
Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions
contemplated hereby. The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder
and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the
part of Buyer. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Buyer, and
(assuming due authorization, execution and delivery by Seller) this Agreement and the documents to be delivered hereunder constitute
legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms.

 

Section
4.02 No Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered
hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the
certificate of incorporation, by-laws or other organizational documents of Buyer; or (b) violate or conflict with any judgment,
order, decree, statute, law, ordinance, rule or regulation applicable to Buyer. No consent, approval, waiver or authorization
is required to be obtained by Buyer from any person or entity (including any governmental authority) in connection with the execution,
delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated hereby.

 

Section
4.03 Legal Proceedings. There is no Action of any nature pending or, to Buyer’s knowledge, threatened against or by
Buyer that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event
has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

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 based upon arrangements made by or on behalf of Buyer.

 

Section
4.05 Financial Ability. Buyer has the funds available to purchase the Purchased Assets pursuant to the consideration provisions
set forth under Sections 1.04 and 1.05 of this Agreement.

 

Section
4.06 Diligence in Obtaining Permits and License. Buyer has submitted local applications to secure medical and adult use cannabis
permits from the City of Point Arena and is in the final stages of its submissions. Buyer shall work diligently to complete all
requirements of the City until the local authorization is obtained. Upon receiving the local authorization, Buyer shall promptly
and forthwith submit its application to the State of California for a Temporary store front cannabis license under MAUCRSA.

 

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Article
V

Covenants

 

Section
5.01 Public Announcements. Unless otherwise required by applicable law or stock exchange requirements, neither party shall
make any public announcements regarding this Agreement or the transactions contemplated hereby without the prior written consent
of the other party (which consent shall not be unreasonably withheld or delayed).

 

Section
5.02 Bulk Sales Laws. The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar
laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer.

 

Section
5.03 Transfer Taxes. 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 documents to be delivered hereunder
shall be borne and paid by Seller 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
5.04 Further Assurances. Following the Closing, each of the parties hereto shall 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 and the documents to be delivered hereunder.

 

Article
VI

Indemnification

 

Section
6.01 Survival. All representations, warranties, covenants and agreements contained herein and all related rights to indemnification
shall survive the Closing.

 

Section
6.02 Indemnification By Seller. Subject to the other terms and conditions of this Article VI, Seller shall defend,
indemnify and hold harmless Buyer, its affiliates and their respective stockholders, directors, officers and employees from and
against all third-party claims, judgments, damages, liabilities, settlements, losses, costs and expenses, including attorneys’
fees and disbursements, arising from or relating to:

 

    	 	11	 

     

    

 

(a)
any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement or any document
to be delivered hereunder;

 

(b)
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement or
any document to be delivered hereunder; or

 

(c)
any Excluded Asset or Excluded Liability.

 

Section
6.03 Indemnification By Buyer. Subject to the other terms and conditions of this Article VI, Buyer shall defend, indemnify
and hold harmless Seller, its affiliates and their respective stockholders, directors, officers and employees from and against
all claims, judgments, damages, liabilities, settlements, losses, costs and expenses, including attorneys’ fees and disbursements,
arising from or relating to:

 

(a)
any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or any document to
be delivered hereunder;

 

(b)
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement or
any document to be delivered hereunder; or

 

(c)
any Assumed Liability, if any.

 

Section
6.04 Indemnification Procedures. Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification
(the “Indemnified Party”) shall promptly provide written notice of such claim to the other party (the “Indemnifying
Party”). In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action
by a person or entity who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written
notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified
Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and at its own
cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall
not be obligated to, defend against such Action in such manner as it may deem appropriate, including, but not limited to, settling
such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate
and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party
of its indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall
not settle any Action without the Indemnified Party’s prior written consent (which consent shall not be unreasonably withheld,
conditioned, or delayed).

 

Section
6.05 Indemnity Cap. The parties acknowledge and agree that in no event shall Seller be required to indemnify Buyer in an amount
exceeding the Purchase Price; provided, however, that there shall be no such limit in connection with any rights (a) to bring
a claim, demand, suit or cause of action otherwise available based upon (i) any allegation or allegations that Seller had an intent
to defraud or made a willful or intentional misrepresentation or willful omission of a material fact in connection with this Agreement
and the transactions contemplated hereby or (ii) any claim by Buyer of any nature whatsoever based upon, arising out of or related
to any Excluded Liability; or (b) to enforce any judgment of a court of competent jurisdiction in connection with any claim, demand,
suit or cause of action describe in clause (a) of this Section 6.05.

 

    	 	12	 

     

    

 

Section
6.06 Cumulative Remedies. The rights and remedies provided in this Article VI are cumulative and are in addition to
and not in substitution for any other rights and remedies available at law or in equity or otherwise.

 

Article
VII

Miscellaneous

 

Section
7.01 Fees and Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such costs and expenses. Should either party default in the performance of any of
the terms or conditions of this Agreement, which default results in the filing of a lawsuit for damages, specific performance,
or other permitted remedy, the prevailing party in such lawsuit shall be entitled to its reasonable legal fees and expenses, including
such fees and expenses at the appellate level.

 

Section
7.02 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 facsimile or 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 7.02):

 

	If
    to Seller:	ADDRESS:
	 	 
	 	131
    A Stoney Circle, Suite 500
	 	 
	 	Santa
    Rosa, CA 95401
	 	 
	 	Facsimile:
	 	 
	 	E-mail:
	 	 
	 	Attention:
    Yarrow Jedidiah Ivy, CEO; 
	 	 
	 	Walter
    Stillman, Secretary; Nathan Boucher, CFO

 

    	 	13	 

     

    

 

 

	with
    a copy to:	The
    Law Offices of Omar Figueroa
	 	 
	 	7770
    Healdsburg Avenue
	 	 
	 	Sebastopol,
    California 95472
	 	 
	 	Facsimile:
    (707) 861-9187
	 	 
	 	E-mail:
    stacy@omarfigueroa.com
	 	 
	 	Attention:
    Stacy Hostetter

 

	If
    to Buyer:	Cond.
    Madrid Suite 304, 1760 Loiza Street
	 	 
	 	San
    Juan, Puerto Rico 00911
	 	 
	 	Facsimile:
    (212) 930-9725
	 	 
	 	E-mail:
    tom@greenspiritrx.com
	 	 
	 	Attention:
    Thomas Gingerich

 

	with
    a copy to:	Sichenzia
    Ross Ference Kesner LLP
	 	 
	 	1185
    Avenue of the Americas, 37th Fl.
	 	 
	 	New
    York, NY 10036
	 	 
	 	Facsimile:
    (212) 930-9725
	 	 
	 	E-mail:
    dmocasio@srfkllp.com
	 	 
	 	Attention:
    Darrin M. Ocasio

 

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

 

Section
7.04 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. If application of this severability provision should materially
and adversely affect the economic substance of the transactions contemplated hereby, the Party adversely impacted shall be entitled
to compensation for such adverse impact, provided the reason for the invalidity or unenforceability of a term is not due to serious
misconduct by the party seeking such compensation.

 

    	 	14	 

     

    

 

Section
7.05 Entire Agreement. This Agreement and the documents to be delivered hereunder constitute 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
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 and the documents to be delivered hereunder, 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
7.06 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.

 

Section
7.07 No Third-party Beneficiaries. Except as provided in Article VI, 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
7.08 Amendment and Modification. This Agreement may only be amended, modified or supplemented by an agreement in writing signed
by each party hereto.

 

Section
7.09 Waiver. 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
7.10 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of
California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any
other jurisdiction).

 

    	 	15	 

     

    

 

Section
7.11 Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions
contemplated hereby shall be instituted in the state courts of the State of California, in each case located in the county of
Mendocino, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.

 

Section
7.12 Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Agreement 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 or the transactions
contemplated hereby.

 

Section
7.13 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
7.14 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
7.15 Force Majeure. Neither party will be liable for performance delays or for non-performance due to causes beyond its reasonable
control, except for payment obligations.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	16	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

 

	 	COASTAL
                                         PATIENT NETWORK

                                                                     D/B/A
                                         THE GREEN ROOM

                                                                     WELNESS
                                         CENTER  

	 	 
	 	By	 
	 	Name:	Yarrow
    Jedidiah Ivy
	 	Title:	Chief
    Executive Officer

 

	 	By	 
	 	Name:	Walter
    Stillman
	 	Title:	Secretary

 

	 	By	 
	 	Name:	Nathan
    Boucher
	 	Title:	Chief
    Financial Officer

 

	                                              	GREEN
    SPIRIT MENDOCINO, LLC  
	 	 
	 	By	                                                        
	 	Manager: Green Spirit Industries Inc.
	 	Authorized
    Signatory: Les Ball, CEO

 

    	 	17	 

     

    

 

Disclosure
Schedules

Table
of Contents

 

	Section
    1.01	Purchased
    Assets
	 	 
	Section
    1.02	Excluded
    Assets
	 	 
	Section
    1.03	Assumed
    Debts, Liabilities and Obligations
	 	 
	Section
    1.04	Seller’s
    Wire Instructions
	 	 
	Section
    1.05	Allocation
    of Purchase Price
	 	 
	Section
    3.02	Seller’s
    consents and authorizations
	 	 
	Section
    3.10(b)	Purchased
    IP
	 	 
	Section
    3.11	Transferred
    Permits
	 	 
	Section
    4.02	Buyer’s
    consents and authorizations

 

    	 	18	 

     

    

 

SECTION
1.01

 

PURCHASED
ASSETS

 

See
attached.

 

    	 	19	 

     

    

 

SECTION
1.02

 

EXCLUDED
ASSETS

 

Domain
name cannabismendocino.com

 

    	 	20	 

     

    

 

SECTION
1.03

 

ASSUMED
DEBTS, LIABILITIES AND OBLIGATIONS

 

None.

 

For
the avoidance of doubt and without limiting the generality of the following, in no event shall Buyer assume any debts, liabilities
and obligations of Seller, including but not limited to the following:

 

	 	●	Invoices
    for utilities (i.e. water, electricity, internet, etc.) dated following the Closing but for services incurred prior to the
    Closing Date;
	 	 	 
	 	●	Any
    and all promissory notes, whether secured or unsecured, issued prior to the Closing Date;
	 	 	 
	 	●	Any
    and all consignment liabilities, incurred both prior to and after the Closing Date.

 

Seller
shall coordinate with Buyer during transition to ensure that there is no interruption of services related to utilities, POS, and
similar services effective as of Closing. Buyer will promptly put all applicable service contracts in its name. Any utility charges
attributable to Seller during transition shall be reimbursed to Seller from Buyer.

 

    	 	21	 

     

    

 

SECTION
1.04

 

WIRE
INSTRUCTIONS

 

[SELLER’S
WIRE INSTRUCTIONS]

 

    	 	22	 

     

    

 

SECTION
1.05

 

ALLOCATION
OF PURCHASE PRICE

 

See
attached.

 

    	 	23	 

     

    

 

SECTION
3.02

 

SELLER’S
CONSENTS AND AUTHORIZATIONS

 

[SELLER
TO INCLUDE/ATTACH]

 

    	 	24	 

     

    

 

SECTION
3.10(B)

 

PURCHASED
IP

 

	 	●	The
    Green Room

 

	 	●	www.thegreenroomcollective.com

 

    	 	25	 

     

    

 

SECTION
3.11

 

TRANSFERRED
PERMITS

 

None.

 

    	 	26	 

     

    

 

SECTION
4.02

 

BUYER’S
CONSENTS AND AUTHORIZATIONS

 

[BUYER
TO INCLUDE/ATTACH]

 

    	 	27	 

     

    

 

EXHIBIT
A

 

FORM
OF ASSIGNMENT AND BILL OF SALE

 

For
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, COASTAL PATIENT NETWORK D/B/A THE
GREEN ROOM, a not-for-profit California mutual benefit corporation, (“Assignor”), does hereby grant, bargain,
transfer, sell, assign, convey and deliver to GREEN SPIRIT MENDOCINO, LLC, a California limited liability company, or its assigns
(“Assignee”), free and clear of any and all liens, encumbrances, charges or claims, all right, title and interest
in and to the Cash and Cash Equivalents, Equipment, Inventory, Supplies and Receivables as such terms are defined in the Asset
Purchase Agreement between the parties of even date herewith. Assignor, for itself, its successors and assigns, hereby covenants
and agrees that, at any time and from time to time forthwith upon the written request of Assignee, at no additional cost to Assignor,
Assignor will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, each and all of
such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be required
by Assignee in order to assign, transfer, set over, convey, assure and confirm unto and vest in Assignee, its successors and assigns,
title to the assets sold, conveyed, transferred and delivered by this Assignment and Bill of Sale.

 

This
Assignment and Bill of Sale is being executed and delivered by Assignor pursuant to the terms of the Asset Purchase Agreement
executed between the parties simultaneously herewith.

 

Executed
effective as of the 7th day of March, 2018.

 

	 	ASSIGNOR:
	 	 	 
	 	COASTAL
    PATIENT NETWORK
	 	D/B/A
    THE GREEN ROOM WELLNESS CENTER
	 	 	 
	 	 	/s/
    
	 	Name:	Yarrow
    Jedidiah Ivy
	 	Title:	Chief
    Executive Officer

 

    	 	28	 

     

    

 

EXHIBIT
B

 

ASSIGNMENT
OF INTANGIBLE ASSETS

 

This
ASSIGNMENT OF INTANGIBLE ASSETS (the “Assignment”) is made effective as of the 7th day of March, 2018, by and
between COASTAL PATIENT NETWORK D/B/A THE GREEN ROOM, a not-for-profit California mutual benefit corporation, (“Assignor”),
and to GREEN SPIRIT MENDOCINO, LLC, a California limited liability company, or its assigns (“Assignee”).

 

R
E C I T A L S

 

A.
Pursuant to the Asset Purchase Agreement (the “Purchase Agreement”) of even date herewith, by and among Assignor
and Assignee, Assignor is assigning the Assets (as defined in the Purchase Agreement) to Assignee.

 

B.
Included within the Assets being assigned to Assignee, and subject to the terms of the Purchase Agreement, Assignor is also assigning
to Assignee all of its rights, title and interest in and to the intangible assets associated with the Business of Assignor as
further described in the Purchase Agreement, including the assets described on Schedule 1.01 to the Purchase Agreement, and the
proprietary rights, phone numbers, trade secrets, the domain name thegreenroomcollective.org, business records, customer relationships,
contracts and goodwill relating to the Business and all of Assignor’s rights in and to the trade name “THE GREEN ROOM”
(collectively the “Intangible Assets”).

 

C.
Pursuant to the terms of the Purchase Agreement, Assignor has agreed to transfer to Assignee all of the Intangible Assets, and
Assignor now desires to enter into this Assignment in order to transfer such right, title and interest to Assignee.

 

NOW,
THEREFORE, for and in consideration of the foregoing premises and the undertakings set forth below, Assignor hereby agrees as
follows:

 

A
G R E E M E N T

 

1.
Assignor hereby grants, transfers, assigns and conveys to Assignee, absolutely and unconditionally, free and clear of all liens,
encumbrances, mortgages or any other type of security interest, all of its right, title and interest in and to all of the Intangible
Assets.

 

2.
Assignor transfers such Intangible Assets to Assignee, its successors and assigns, to have and to hold to and for its and their
own use and benefit forever. Assignor, for itself and its successors and assigns, hereby covenants that, from time to time after
delivery of this instrument, at Assignee’s request and without further consideration, at no additional cost to Assignor,
Assignor will execute and deliver, or will cause to be executed and delivered, such other instruments of conveyance and transfer
and take such other actions as Assignee reasonably may require (such as, but not limited to, assisting with the transfer of any
business accounts, such as a telephone account) to more effectively vest in the Assignee the Intangible Assets and to put Assignee
in possession of the Intangible Assets, and to do all other things and execute and deliver all other instruments and documents
as may be required to effect the same.

 

3.
This Assignment shall be construed in accordance with, and governed by, the laws of the State of California, without regard to
its conflict of laws doctrine. Assignor consents and submits to the exclusive jurisdiction of the state courts located in Mendocino
County, State of California, for any disputes or controversies arising out of this Assignment.

 

    	 	29	 

     

    

 

IN
WITNESS WHEREOF, Assignor has executed this Assignment effective as of the date first written above.

 

	 	ASSIGNOR:
	 	 	 
	 	COASTAL
    PATIENT NETWORK
	 	D/B/A
    THE GREEN ROOM WELLNESS CENTER
	 	 	 
	 	 	/s/
    
	 	Name:	Yarrow
    Jedidiah Ivy
	 	Title:	Chief
    Executive Officer

 

    	 	30Exhibit

SECOND AMENDMENT TO 
AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDMENT to Amended and Restated Credit Agreement (this “Amendment”) is entered into as of March 7, 2018, by and between JPMORGAN CHASE BANK, N.A., (“JPMorgan”) as Administrative Agent (in such capacity, “Administrative Agent”), the Lenders party hereto which constitute “Required Lenders” for purposes of the Credit Agreement (each a “Lender” and collectively, the “Lenders”) including JPMorgan in its capacity as a Lender, the Loan Parties party hereto and THE MEET GROUP, INC., a Delaware corporation (“Borrower”).
RECITALS
A.Administrative Agent, Lenders, the Loan Parties and Borrower have entered into that certain Amended and Restated Credit Agreement dated as of September 18, 2017 (as amended by that certain First Amendment to Amended and Restated Credit Agreement, dated October 18, 2017, and as amended from time to time, the “Credit Agreement”).
B.    Lenders have extended credit to Borrower for the purposes permitted in the Credit Agreement.  
C.    The Borrower, the Loan Parties, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Credit Agreement.
2.    Amendments to Credit Agreement.  
2.1    Section 1.01 (Defined Terms).  Section 1.01 of the Credit Agreement is hereby amended and restated by amending and restating the definition of “EBITDA” as follows:
“Applicable Rate” means, for any day, with respect to any Loan, or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Revolving Commitment ABR Spread”, “Revolving Commitment Eurodollar Spread” “Delayed Draw Term Loan ABR Spread”, “Delayed Draw Term Loan Eurodollar Spread” or “Commitment Fee Rate”, as the case may be, based upon the Borrower’s Total Leverage Ratio as of the most recent determination date, provided that until the delivery to the Administrative Agent, pursuant to Section 5.01, of the Borrower’s consolidated financial information for the fiscal quarter ending December 31, 2018, the “Applicable Rate” shall be the applicable rates per annum set forth below in Category 1: 

	
						
	Total Leverage
Ratio

	Revolving
Commitment
ABR Spread
	Revolving
Commitment
Eurodollar
Spread
	Delayed Draw Term  Loan
ABR Spread
	Delayed Draw Term Loan Eurodollar Spread
	Commitment Fee Rate

	Category 1
≥ 1.50 to 1.0
	

2.50%
	

3.50%
	

2.50%
	

3.50%
	

0.50%

	Category 2
< 1.50 to 1.0  but
≥ 1.00 to 1.0
	

2.00%
	

3.00%
	

2.00%
	

3.00%
	

0.40%

	Category 3
< 1.00 to 1.0
	1.50%
	

2.50%
	1.50%
	

2.50%
	

0.35%

WEST\280636584.5 

For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the end of each fiscal quarter of the Borrower, based upon the Borrower’s annual or quarterly consolidated financial statements delivered pursuant to Section 5.01 and (b) each change in the Applicable Rate resulting from a change in the Total Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Lender of such consolidated financial statements indicating such change and ending on the date immediately preceding the effective date of the next such change, provided that at the option of the Lender if the Borrower fails to deliver the annual or quarterly consolidated financial statements required to be delivered by it pursuant to Section 5.01, the Total Leverage Ratio shall be deemed to be in Category 1 during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered.

If at any time the Lender determines that the financial statements upon which the Applicable Rate was determined were incorrect (whether based on a restatement, fraud or otherwise), the Borrower shall be required to retroactively pay any additional amount that the Borrower would have been required to pay if such financial statements had been accurate at the time they were delivered.

“EBITDA” means, for any period, Net Income for such period plus (a) without duplication and to the extent deducted in determining Net Income for such period, the sum of (i) Interest Expense for such period, (ii) income tax expense for such period, (iii) all amounts attributable to depreciation and amortization expense for such period, (iv) any extraordinary non-cash charges for such period, (v) any other non-cash charges for such period (but excluding any non-cash charge in respect of an item that was included in Net Income in a prior period, (vi) any non-recurring fees, cash charges and other cash expenses (including severance costs) made or incurred in connection with the Transactions (and the Lovoo Acquisition) in an amount not to exceed, for any period, the amount set forth on Schedule A below opposite such period, minus (b) without duplication and to the extent included in Net Income, any extraordinary gains and any non-cash items of income for such period, all calculated for the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP, provided that, for the purposes of calculating EBITDA for any period of four consecutive Fiscal Quarters (each, a “Reference Period”) pursuant to any determination of the Total Leverage Ratio or the Fixed Charge Coverage Ratio, (x) if at any time during such Reference Period any Loan Party shall have sold or otherwise divested of any assets or stock in any Subsidiary, the EBITDA for such Reference Period shall be reduced by an amount equal to the EBITDA (if positive) attributable to such assets or increased by an amount equal to the EBITDA (if negative) attributable thereto for such Reference Period and (y) if during such Reference Period a Loan Party shall have consummated a Permitted Acquisition, including without limitation the Acquisition of Skout, LLC, the Acquisition of Tagged and the Lovoo Acquisition, EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto as if such Acquisition occurred on the first day of such Reference Period.    
2.2    Section 1.01 (Defined Terms).  Section 1.01 of the Credit Agreement is hereby amended and restated by adding the definition of “Second Amendment” and “Second Amendment Effective Date”, as follows:
“First Amendment” means that certain First Amendment to the Credit Agreement dated as of the First Amendment Effective Date.
“First Amendment Effective Date” has the meaning assigned to the term in the First Amendment.
“Second Amendment” means that certain Second Amendment to the Credit Agreement dated as of the Second Amendment Effective Date.
“Second Amendment Effective Date” has the meaning assigned to the term in the Second Amendment.
2.3    Section 6.12 (Financial Covenants).  Section 6.12 of the Credit Agreement is hereby amended and restated in its entirety as follows:

WEST\280636584.5 

“SECTION 6.12    Financial Covenants.
(a)    Total Leverage Ratio.  The Borrower will not permit the Total Leverage Ratio, on the last day of any fiscal quarter ending during any period set forth below, to be greater than the ratio set forth below opposite such period:
	
		
	Period
	   Ratio

	 
	 

Effective Date through December 31, 2017                2.50:1.00
January 1, 2018 through December 31, 2018                2.00:1.00
All times thereafter                        1.50:1.00
(b)    Fixed Charge Coverage Ratio.  The Borrower will not permit the Fixed Charge Coverage Ratio, for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter set forth below, to be less than the ratio set forth below opposite such period:
	
		
	Period
	   Ratio

Effective Date through June 30, 2018                1.50:1.00
July 1, 2018 through September 30, 2018                1.25:1.00
October 1, 2018 through December 31, 2018                1.10:1.00
January 1, 2019 through June 30, 2019                1.25:1.00
All times thereafter                        1.50:1.00”
2.4    Schedules to Credit Agreement.  Schedules 3.05 (Properties), 3.14 (Insurance) and 3.15 (Capitalization and Subsidiaries) to the Credit Agreement are hereby amended by deleting such schedules in their entirety and replacing them with the schedules attached hereto as Schedule B.
3.    Limitation of Amendment.
3.1    The amendments set forth in Section 2 above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Administrative Agent or any Lender may now have or may have in the future under or in connection with any Loan Document.
3.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
4.    Representations and Warranties.  To induce Administrative Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Administrative Agent and Lenders as follows:
4.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

WEST\280636584.5 

4.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Credit Agreement, as amended by this Amendment;
4.3    The organizational documents of Borrower delivered to Administrative Agent and Lenders on the Effective Date, or subsequent thereto, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Amendment, have been duly authorized;
4.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;
4.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower; and
4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
5.    Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
6.    Effectiveness.  This Amendment shall become effective as of the date first written above only upon satisfaction in full in the discretion of the Administrative Agent of each of the following conditions (the “Second Amendment Effective Date”):
6.1    The Administrative Agent shall have received a copy of this Amendment duly executed and delivered by all of the Lenders, the Borrower, each other Loan Party and the Administrative Agent;
6.2    The representations and warranties of or on behalf of the Loan Parties in this Amendment are true, accurate and complete (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date) on and as of the Second Amendment Effective Date;
6.3    The Loan Parties shall have paid to the Administrative Agent for the ratable benefit of each consenting Lender a non-refundable amendment fee equal to 0.10% of the Aggregate Credit Exposure.  Such amendment fees shall be fully earned and payable on the Second Amendment Effective Date.   
6.4    The Administrative Agent and the Loan Parties shall have duly executed and delivered a fee letter with respect to certain matters relating to fees payable to the Administrative Agent with respect to the Amendment.
6.5    The Loan Parties shall have paid all outstanding costs and expenses owed to the Administrative Agent pursuant to Section 9.03 of the Credit Agreement, including, without limitation, all reasonable fees, charges and disbursements of counsel for the Administrative Agent;
6.6    The Administrative Agent shall have received all other documents, opinions or materials requested by the Administrative Agent, in each case, in form and substance reasonably acceptable to the Agent. 

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7.    Ratification, etc.  Except as expressly amended or otherwise modified hereby, the Credit Agreement, each other Loan Document and all documents, instruments and agreements related thereto are hereby ratified and confirmed in all respects and shall continue in full force and effect.  This Amendment shall constitute a Loan Document.  The Loan Parties hereby ratify and reaffirm the validity and enforceability of all of the Liens and security interests heretofore granted and pledged by the Loan Parties pursuant to the Loan Documents to which it is a party to the Administrative Agent, on behalf and for the benefit of the Lenders, as collateral security for the Secured Obligations, and acknowledge that all of such Liens and security interests, granted, pledged or otherwise created as security for the Secured Obligations continue to be and remain collateral security for the Secured Obligations from and after the Second Amendment Effective Date.  
8.    Reference to and Effect on the Credit Agreement. 
8.1    Upon the effectiveness of this Amendment, (A) each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Credit Agreement as amended or otherwise modified hereby and (B) each reference in any other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement as amended or otherwise modified hereby.
8.2    Except as specifically waived, amended or otherwise modified above, the terms and conditions of the Credit Agreement and any other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect and are hereby ratified and confirmed.
8.3    The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender under the Credit Agreement or any other document, instrument or agreement executed in connection therewith, nor constitute a waiver of any provision contained therein, in each case except as specifically set forth herein.
9.    RELEASE.  IN CONSIDERATION OF THIS AMENDMENT, THE LOAN PARTIES HEREBY IRREVOCABLY RELEASE AND FOREVER DISCHARGE THE ADMINISTRATIVE AGENT, EACH LENDER AND EACH OF THEIR RESPECTIVE AFFILIATES, SUBSIDIARIES, SUCCESSORS, ASSIGNS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES AND ATTORNEYS (EACH, A “RELEASED PERSON”) OF AND FROM ALL DAMAGES, LOSSES, CLAIMS, DEMANDS, LIABILITIES, OBLIGATIONS, ACTIONS AND CAUSES OF ACTION WHATSOEVER WHICH ANY LOAN PARTY MAY NOW HAVE OR CLAIM TO HAVE ON AND AS OF THE SECOND AMENDMENT EFFECTIVE DATE AGAINST ANY RELEASED PERSON, WHETHER PRESENTLY KNOWN OR UNKNOWN, LIQUIDATED OR UNLIQUIDATED, SUSPECTED OR UNSUSPECTED, CONTINGENT OR NON-CONTINGENT, AND OF EVERY NATURE AND EXTENT WHATSOEVER (COLLECTIVELY, “CLAIMS”) WITH RESPECT TO THE LOAN DOCUMENTS, OTHER THAN ANY CLAIM ARISING SOLELY OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH RELEASED PERSON.  
10.    Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York, but giving effect to federal laws applicable to national banks.
[Balance of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.
THE MEET GROUP, INC., as Borrower

By: /s/ Frederic Beckley    
Name: Frederic Beckley    
Title: General Counsel    

SKOUT, LLC, as a Loan Guarantor

By: /s/ Frederic Beckley    
Name: Frederic Beckley    
Title: General Counsel    

IFWE, INC., as a Loan Guarantor

By: /s/ Frederic Beckley    
Name: Frederic Beckley    
Title: General Counsel    

COLLECTED LABS LLC, as a Loan Guarantor

By: /s/ Frederic Beckley    
Name: Frederic Beckley    
Title: General Counsel    

STIG, LLC, as a Loan Guarantor

By: /s/ Frederic Beckley    
Name: Frederic Beckley    
Title: General Counsel    

HI5 INC., as a Loan Guarantor

By: /s/ Frederic Beckley    
Name: Frederic Beckley    
Title: General Counsel    

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

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JPMORGAN CHASE BANK, N.A. individually, and as
Administrative Agent, the Swingline Lender and Issuing Bank

By: /s/ William Horstman    
Name: William Horstman    
Title: Authorized Officer    

JPMORGAN CHASE BANK, N.A., as Lender

By: /s/ William Horstman    
Name: William Horstman    
Title: Authorized Officer    

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

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SILICON VALLEY BANK, as a Lender

By: /s/ Jon Wolter    
Name: Jon Wolter    
Title: Vice President    

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

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KEYBANK NATIONAL ASSOCIATION

By: /s/ Robert Bauer    
Name: Robert J. Bauer    
Title: Enterprise Banker    

[Signature Page to Second Amendment to Amended and Restated Credit Agreement]

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Schedule A

	
		
	Period
	Amount

	March 31, 2018
	$15,183,893

	June 30, 2018
	$11,743,604

	September 30, 2018
	$8,587,544

	December 31, 2018
	$5,209,198

	March 31, 2019
	$1,452,240

	June 30, 2019
	$1,104,000

	September 30, 2019
	$672,000

	December 31, 2019
	$384,000

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