Document:

Exhibit 10.9

    

     

    

    FOUNDER HOLDERS DEFERRAL AGREEMENT

    

    

    April 23, 2021

    

    

    Sports Entertainment Acquisition Corp.

    Golden Bear Plaza 11760 US Highway 1, Suite W506

    North Palm Beach, FL 33408

    Attention:  Eric Grubman; John Collins

    Email:  ericgrubman@comcast.net and jcollins@seahllc.com

    

    

    

    

    Super Group (SGHC) Limited

    Kingsway House, Havilland Street

    St. Peter Port, Guernsey

    GYI 2QE

    Attention: Sarah Imossi

    Email: sarah@sghc.com

    

    

    Re:          Deferral of Founder Holders’ Securities

    

    

    Ladies and Gentlemen:

    

    

    Reference is made to that certain Business Combination Agreement, dated as of April 23, 2021, by and among Sports Entertainment Acquisition Corporation, a Delaware corporation (“SEAC”), Super Group (SGHC) Limited,  a non-cellular company limited by shares incorporated under the laws of the Island

      of Guernsey (“NewCo”), SGHC Limited, a non-cellular company limited by shares incorporated under the laws of the Island of Guernsey (“SGHC”), Super Group (SGHC) Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of NewCo (“Merger Sub”) and Sports
      Entertainment Acquisition Holdings LLC, a Delaware limited liability company (the “Sponsor”) (as may be further amended, restated, amended and restated, modified, or supplemented from to
      time, the “Combination Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Combination Agreement.

    

    

    Reference is also made to that certain Warrant Purchase Agreement, dated as of October 1, 2020, by and among the Company and the Sponsor (the “Sponsor Warrant Purchase Agreement”); that certain Warrant Purchase Agreement, dated as of October 1, 2020, by and among the Company and PJT Partners Holdings LP, a Delaware limited partnership (“PJT” and such agreement, the “PJT Warrant Purchase Agreement” and together with the Sponsor Warrant Purchase Agreement, the “Warrant Purchase Agreements”); and the Warrant Agreement, dated as of October 6, 2020, by and between SEAC and Continental Stock Transfer & Trust Company (the “Warrant Agreement”). The warrants issued to the Sponsor and PJT pursuant to the Warrant Purchase Agreements and the Warrant Agreement, and as assumed by NewCo pursuant to the terms of the Combination Agreement, are
      referred to herein as the “Founder Warrants”.  Any common stock of SEAC and/or NewCo received upon an exercise of the Founder Warrants permitted by this Agreement is referred to herein as
      the “Founder Common Stock” and together with the Founder Warrants, the “Founder Securities”.
      Sponsor, PJT and any Persons to whom Sponsor or PJT distribute their Founder Warrants in accordance with the terms of this Deferral Agreement are referred to herein as the “Founder Holders”.

    

    

    
      1

      
        

    

    In order to induce NewCo and SEAC to consummate the transactions contemplated by the Combination Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
      hereby acknowledged, the Sponsor, PJT, SEAC, NewCo and any other parties that may become Founder Holders pursuant to the terms of this Deferral Agreement and, solely for purposes of Sections 2, 3(b) and 4 through 8, Eric Grubman (in his individual
      capacity and on behalf of EKC2012 Trust), EPG2012 Trust (together with Eric Grubman, “EG”) and John Collins (“JC”), hereby agree
      to enter into this Founder Holders Deferral Agreement (this “Deferral Agreement”), and hereby agree as follows:

    

    

    1.        Founder Securities Redemption. Notwithstanding anything to the contrary in the Warrant Purchase
      Agreements or Warrant Agreement, the Founder Holders hereby agree that the following terms shall apply with respect to the Founder Warrants:

    

    

    (a)          After the Closing, following the date on which the sale price of one NewCo Common Share quoted on the Stock Exchange (or such other exchange on
      which the NewCo Common Shares are then listed) at the closing of a Trading Day is greater than or equal to $18.00 for any twenty (20) Trading Days out of any consecutive thirty (30) Trading Day period (the “First Tranche Redemption Trigger Date”), NewCo shall have the right, at its sole and absolute discretion, during the thirty (30) day period following the First Tranche Redemption Trigger Date (the “First Tranche Trigger Period”) to redeem up to 5,500,000 of the Founder Warrants (the “First Tranche Warrants”) at a price per Founder Warrant equal to $6.50
      (the “First Tranche Redemption Right”), with any such redemption to be made pro rata to the Founder Holders based on their relative ownership of the
      Founder Warrants. If NewCo elects to exercise the First Tranche Redemption Right during the First Tranche Trigger Period, it shall provide a notice to the Founder Holders as soon as reasonably practicable but, in any event, prior to the expiration of
      the First Tranche Trigger Period stating that it is exercising the First Tranche Redemption Right and providing for the number First Tranche Warrants that NewCo shall redeem from each of the Founder Holders (the “First Tranche Redeemed Warrants”), the number of First Tranche Warrants that NewCo will not be redeeming, if applicable (the “First Tranche Unredeemed Warrants”),

      and the expected payment date (such notice, the “First Tranche Trigger Notice”); provided, however, that any such redemption payment for the First Tranche Redeemed Warrants (the “First Tranche Payment”) must take place within twelve (12) months of the delivery of the First Tranche Trigger Notice (the “First Tranche
        Payment Period”). For the avoidance of doubt, the delivery by NewCo of the First Tranche Trigger Notice shall be irrevocable, and shall constitute a legal, valid and binding obligation on NewCo to make the First Tranche Payment within the
      First Tranche Payment Period.

    

    

    (b)          After the Closing, following the date on which the sale price of one NewCo Common Share quoted on the Stock Exchange (or such other exchange on
      which the NewCo Common Shares are then listed) at the closing of a Trading Day is greater than or equal to $24.00 for any twenty (20) Trading Days out of any consecutive thirty (30) Trading Day period (the “Second Tranche Redemption Trigger Date”), NewCo shall have the right, at its sole and absolute discretion, during the thirty (30) day period following the Second Tranche Redemption Trigger Date (the “Second Tranche Trigger Period”) to redeem up to 5,500,000 of the Founder Warrants (the “Second Tranche Warrants”) at a price per Founder Warrant equal to $12.50
      (the “Second Tranche Redemption Right”), with any such redemption to be made pro rata to the Founder Holders based on their relative ownership of
      Founder Warrants. If NewCo elects to exercise the Second Tranche Redemption Right during the Second Tranche Trigger Period, it shall provide a notice to the Founder Holders as soon as reasonably practicable but, in any event, prior to the expiration
      of the Second Tranche Trigger Period stating that it is exercising the Second Tranche Redemption Right and providing for the number Second Tranche Warrants that NewCo shall redeem from each of the Founder Holders (the “Second Tranche Redeemed Warrants”), the number of Second Tranche Warrant that NewCo will not be redeeming, if applicable (the “Second Tranche Unredeemed Warrants”),

      and the expected payment date (such notice, the “Second Tranche Trigger Notice”); provided, however, that any such redemption payment for the Second Tranche Redeemed Warrants (the “Second Tranche Payment”) must take place within eighteen (18) months of the date of the delivery of the Second Tranche Trigger Notice (the “Second

        Tranche Payment Period”). For the avoidance of doubt, the delivery by NewCo of the Second Tranche Trigger Notice shall be irrevocable, and shall constitute a legal, valid and binding obligation on NewCo to make the Second Tranche Payment
      within the Second Tranche Payment Period.

    

    

    
      2

      
        

    

    (c)          Except with respect to the Restricted Securities (as defined in Section 2), which shall be governed by Section 2, the Founder Holders agree and
      acknowledge that they shall not (i) exercise the Founder Warrants (except in the event of redemption notice given under Section 6 of the Warrant Agreement), (ii) amend any of the terms of the Founder Warrants or (iii) directly or indirectly, transfer
      or otherwise dispose of the Founder Securities (excluding, for the avoidance of doubt, any transfer of the Founder Securities after the expiration of the lock-up period specifically set forth in the Lock-Up Agreement executed by each Founder Holder,
      NewCo, SGHC and SEAC pursuant and in connection with the Closing, provided that such Founder Holders comply with Section 4 below), in each case, other than with the written consent of NewCo.

    

    

    (d)          In the event that the Founder Warrants are exercised following receipt of a redemption notice by NewCo under Section 6 of the Warrant Agreement,
      the provisions of Sections 1(a), 1(b) and 1(c) above shall apply mutatis mutandis with respect to the Founder Common Stock delivered upon the exercise of the First Tranche Warrants or the Second Tranche
      Warrants, as the case may be, provided that the redemption price applicable to the First Tranche Redemption Right shall be $18.00 per share of such Founder Common Stock and the redemption price applicable to the Second Tranche Redemption Right shall
      be $24.00 per share of such Founder Common Stock. For the avoidance of doubt and notwithstanding anything to the contrary in this Deferral Agreement, this Section 1(d) shall not apply to any exercise of the Founder Warrants other than specifically
      pursuant to a redemption under Section 6 of the Warrant Agreement.

    

    

    (e)          Subject to the additional terms of Section 2 herein applicable to the Restricted Securities, the restrictions of Sections 1(c) and 1(d) shall
      terminate with respect to all Founder Securities (A) with respect to the First Tranche Warrants and, following a permitted exercise, the underlying Founder Common Stock, upon the earlier of (x) the expiration of the First Tranche Trigger Period if
      NewCo does not deliver the First Tranche Trigger Notice during the First Tranche Trigger Period or (y) solely with respect to any First Tranche Redeemed Warrants and, following a permitted exercise, the underlying Founder Common Stock, the expiration
      of the First Tranche Payment Period if NewCo delivers the First Tranche Trigger Notice during the First Tranche Trigger Period and does not make the First Tranche Payment during the First Tranche Payment Period; (B) with respect to the First Tranche
      Unredeemed Warrants and, following a permitted exercise, the underlying Founder Common Stock, upon the earlier of the date on which NewCo provides the First Tranche Trigger Notice or the expiration of the First Tranche Trigger Period; (C) with
      respect to the Second Tranche Warrants and, following a permitted exercise, the underlying Founder Common Stock, upon the earlier of (x) the expiration of the Second Tranche Trigger Period if NewCo does not deliver the Second Tranche Trigger Notice
      during the Second Tranche Trigger Period or (y) solely with respect to any Second Tranche Redeemed Warrants and, following a permitted exercise, the underlying Founder Common Stock, the expiration of the Second Tranche Payment Period if NewCo
      delivers the Second Tranche Trigger Notice during the Second Tranche Trigger Period and does not make the Second Tranche Payment during the Second Tranche Payment Period; (D) with respect to the Second Tranche Unredeemed Warrants and, following a
      permitted exercise, the underlying Founder Common Stock, upon the earlier of the date on which NewCo provides the Second Tranche Trigger Notice or the expiration of the Second Tranche Trigger Period; or (E) on the four (4) year anniversary of the
      Closing Date to the extent such restrictions have not terminated in accordance to Section 1(e)(A),(B),(C) or (D) before such date. Any Founder Securities that are redeemed in accordance with this Section 1 shall automatically be cancelled and be of
      no further force and effect immediately upon NewCo making the First Tranche Payment or Second Tranche Payment in full, as applicable, by wire transfer of immediately available funds to the applicable Founder Holder.

    

    

    
      3

      
        

    

    (f)          Subject to the additional terms of Section 2 herein applicable to the Restricted Securities, the Sponsor may distribute its Founder Securities to
      its equityholders (collectively, the “Founder Equity Holders”) at any time without the consent of NewCo; provided, however, that prior to such distribution, the Founder Holders deliver to NewCo an executed agreement by each of the Founder Equity Holders, in a form reasonably satisfactory to NewCo, pursuant to which the Founder Equity Holders
      agree to be subject to the obligations of this Deferral Agreement as if, and to the same extent, they were the Sponsor and a Founder Holder.  The Sponsor shall be permitted to deliver written notice to NewCo, following receipt of a First Tranche
      Trigger Notice or a Second Tranche Trigger Notice, that it intends to distribute the applicable First Tranche Redeemed Warrants and, following a permitted exercise, the underlying Founder Common Stock, or Second Tranche Redeemed Warrants and,
      following a permitted exercise, the underlying Founder Common Stock to the Founder Equity Holders (a “Distribution Notice”).  Following receipt by NewCo of a Distribution Notice, NewCo shall
      hold the applicable First Tranche Payment or Second Tranche Payment in trust for the benefit of the Founder Equity Holders until the Sponsor confirms in writing that such distribution has been completed, after which any First Tranche Payment or
      Second Tranche Payment shall be paid directly to the Founder Equity Holders based on the relative pro rata ownership of the Founder Warrants and, following a permitted exercise, the underlying Founder Common
      Stock; provided, however, that such distribution must be completed within thirty (30) days of the Distribution Notice.

    

    

    2.        Deferred Payment and Special Forfeiture Conditions.  With respect to Founder Warrants (the “Restricted Warrants”) and, following a permitted exercise, the underlying Founder Common Stock (together with the Restricted Warrants, the “Restricted

        Securities”) directly held by EG or JC (together, the “Restricted Holders”) following a distribution from Sponsor or otherwise, or Founder Warrants and, following a permitted
      exercise, the underlying Founder Common Stock held by the Sponsor as to which the Restricted Holders have an indirect interest, the following additional terms shall apply:

    

    

    (a)          Notwithstanding the provisions of Section 1(c), until the later of (i) the three (3) year anniversary of the Closing Date or (ii) the expiration
      of the First Tranche Trigger Period or Second Tranche Trigger Period, as applicable, if the First Tranche Redemption Trigger Date or Second Tranche Redemption Trigger Date has occurred prior to the three (3) year anniversary of the Closing Date (the
      later of such dates, the “Service Period”), neither the Restricted Holders nor Sponsor may (i) exercise the Restricted Warrants (except in the event of redemption notice given under Section
      6 of the Warrant Agreement), (ii) amend any of the terms of the Restricted Warrants or (iii) directly or indirectly, transfer or otherwise dispose of the Restricted Securities, in each case, other than with the written consent of NewCo; provided, however, that, subject to compliance with Section 4 below, the foregoing shall not restrict any transfer of any Restricted Securities by any Restricted Holder to
      (A) any trustee of a trust or any trust (including an inter vivos trust) of which there are no principal beneficiaries other than such Restricted Holder or one or more family members of such Restricted Holder
      or (B) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual or pursuant to a qualified domestic relations order or in connection with a divorce settlement.

    

    

    (b)          In the event that NewCo elects to exercise either its First Tranche Redemption Right pursuant to a First Tranche Trigger Notice or Second Tranche
      Redemption Right pursuant to a Second Tranche Trigger Notice, any portion of the First Tranche Payment or Second Tranche Payment that would be directly or indirectly payable to the Restricted Holders (or, if applicable, the Sponsor for the indirect
      benefit to the Restricted Holders) for the Restricted Securities shall instead be retained by NewCo as deferred payments in accordance with this Section 2(b) (the “Deferred Payments”),
      payable to the Restricted Holders pro rata based on their relative direct or indirect ownership of or interest in the Restricted Securities pursuant to the following sentence.  Subject to the Restricted
      Holders continued service as members of the NewCo Board throughout the applicable payment dates set forth below, if the First Tranche Payment or Second Tranche Payment becomes due and payable during the Service Period, the Deferred Payments shall be
      due and payable to the Sponsor or EG or JC, as applicable, as follows:

    

    

    
      4

      
        

    

    (i)          One fourth (1/4) of the total Deferred Payment amount applicable to either tranche (each such total amount, the “Deferred Payment Amount”) shall be due and payable on the later of (A) the date on which the First Tranche Payment or the Second Tranche Payment, as applicable, is made to the Founder Holders pursuant to Sections 1(a) or
      1(b) or (B) the one (1) year anniversary of the Closing (the “First Deferred Payment”);

    

    

    (ii)           One fourth (1/4) of the Deferred Payment Amount shall be due and payable on the date that is twelve (12) months from the date of the First
      Deferred Payment; and

    

    

    (iii)          One half (1/2) of the Deferred Payment Amount shall be due and payable on the date that is twenty-four (24) months from the date of the First
      Deferred Payment;

     

    

    provided, that any and all Deferred Payments due and payable to the Restricted Holders that are not paid pursuant to Section 2(b)(i) through Section 2(b)(iii) prior to the completion of the Service Period shall be paid
      to the Restricted Holders in full on the date of the completion of the Service Period. If either EG or JC are appointed to the Board of Directors of NewCo but voluntarily decline to serve on such Board of Directors at any time prior to the Closing,
      any unpaid Deferred Payments payable to each Restricted Holder, and/or the Restricted Securities directly or indirectly owned by or relating to the applicable Restricted Holder shall be automatically cancelled and forfeited as of the day immediately
      after the Closing.  In addition, any unpaid Deferred Payments payable to each Restricted Holder, and/or the Restricted Securities directly or indirectly owned by or relating to the applicable Restricted Holder, shall be automatically cancelled and
      forfeited if, prior to any applicable payment date set forth in this Section 2(b)(i) through Section 2(b)(iii), either EG or JC, as applicable, resigns from the NewCo Board or if such Restricted Holder is terminated from the NewCo Board for Cause
      within the Service Period, but solely with respect to the unpaid Deferred Payments payable to, and Restricted Securities directly or indirectly owned by or relating to, such applicable Restricted Holder that resigns or is terminated for Cause (and
      not the other Restricted Holder). Any Deferred Payments previously paid to the Restricted Holders pursuant to Section 2(b)(i) through Section 2(b)(iii) shall not be subject to any claw-back or similar rights in favor of NewCo if any Restricted Holder
      subsequently resigns from the NewCo Board or if such Restricted Holder is terminated from the NewCo Board for Cause pursuant to the prior sentence at any time following such payment being made by NewCo.  Furthermore, following the completion of the
      Service Period, the restrictions in Section 2(a) with respect to the Restricted Securities shall terminate.

    

    

    (c)          The parties agree and acknowledge that the terms governing the Deferred Payments may be further modified by NewCo and the Restricted Holders, to
      the extent mutually agreed in writing, in accordance with any service agreement entered into as part of the Restricted Holders becoming members of the NewCo Board.

    

    

    (d)         For purposes of this Deferral Agreement, “Cause” shall mean, with respect to each
      Restricted Holder, in each case as determined by a majority of the members of the Board of NewCo acting in good faith, such individual’s: (i) violation of such individual’s fiduciary duty to NewCo or its shareholders; (ii) violation of the written
      policies, standards and regulations provided in advance to such Restricted Holder and established by NewCo from time to time, which failure, causes material damage to NewCo’s business or reputation; (iii) act of personal dishonesty, fraud,
      embezzlement, misrepresentation, or other unlawful act committed by such Restricted Holder that, in each case, can be reasonably demonstrated by NewCo and to benefit such individual at the expense of NewCo in some material respect; (iv) violation of
      a federal or state law or regulation applicable to the Company’s business, which could reasonably be expected to cause material damage to NewCo’s business or reputation; (v) conviction of, or a plea of nolo contendere or guilty to, a felony under the
      laws of the United States, Guernsey or any other state; or (vi) material and willful breach of the terms of this Deferral Agreement.

    

    

    
      5

      
        

    

    3.         Representations.

    

    

    (a)          Each Founder Holder (as to itself and not any other Founder Holder), severally and not jointly, hereby represents and warrants to SEAC and NewCo,
      as of the date hereof and as of the Closing, (i) that such Founder Holder has full power, authority and capacity to enter into this Deferral Agreement, (ii) that entering into this Deferral Agreement will not contravene or conflict with the terms of
      such Founder Holder’s Governing Documents or any agreement to which such Founder Holder is subject, and (iii) that such Founder Holder owns, and holds of record, all of such Founder Warrants as set forth on Schedule A hereto, free and clear of all Liens, other than Securities Liens and such Liens and other obligations imposed by applicable securities Laws, the Combination Agreement, the SEAC A&R Certificate of
      Incorporation and the SEAC Bylaws.

    

    

    (b)          Each Restricted Holder (as to himself and not any other Restricted Holder), severally and not jointly, hereby represents and warrants to SEAC and
      NewCo, as of the date hereof and as of the Closing, (i) that such Restricted Holder has full power, authority and capacity to enter into this Deferral Agreement, (ii) that entering into this Deferral Agreement does not contravene or conflict with the
      terms of any agreement to which such Restricted Holder is subject, (iii) except for the Restricted Warrants set forth on Schedule A hereto, the Restricted Holder does not hold,
      directly or indirectly, any other Founder Warrants, and (iv) the Restricted Holder does not hold, directly or indirectly, any SEAC Public Warrants.

    

    

    4.        Assignment; Transfer. No party hereto may assign either this Deferral Agreement or any of its rights,
      interests, or obligations hereunder without the prior written consent of each of the other parties hereto; provided, that, except with respect to the restrictions on transfer specifically contemplated by (i) the Lock-Up Agreements and, (ii) solely
      with respect to the Restricted Securities, as set forth in Section 2(a) of this Agreement, any Founder Holder shall be permitted to transfer or otherwise dispose its Founder Warrants and, following a permitted exercise, the underlying Founder Common
      Stock so long as any transferee acknowledges and assumes the terms of this Deferral Agreement as if such transferee were an original party hereto in connection with any transfer of such Founder Securities. Any purported assignment in violation of
      this Section 4 shall be void and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This Deferral Agreement shall be binding on NewCo, SEAC and the Founder Holders and their respective successors
      and assigns.

    

    

    5.         Sponsor Organizational Documents.  Sponsor hereby agrees that, prior to the earlier of (i) the
      termination of this Deferral Agreement, (ii) the termination of the restrictions set forth herein regarding the Founder Securities or the Restricted Securities, as applicable, and (ii) the redemption of either the Founder Securities or the Restricted
      Securities, as applicable, pursuant to this Deferral Agreement, it shall not undertake any actions to amend, restate, modify or otherwise revise its current organizational or governance documents to reduce the amount of Founder Securities directly or
      indirectly owned by EG or JC in a manner that is not otherwise permitted by this Deferral Agreement.

    

    

    6.         Notices and Designated Accounts. Any notice, consent, or request to be given in connection with any
      of the terms or provisions of this Deferral Agreement shall be given to SEAC and NewCo in accordance with Section 8.3 of the Combination Agreement, and to the Founder Holders or Restricted Holders in accordance with the notice information set forth
      on such Founder Holder’s or Restricted Holder’s, as applicable, signature page hereto; in each case, unless a party hereto otherwise specifies a different address in a writing delivered to the other parties hereto. To the extent NewCo has any payment
      obligations to the other parties to this Deferral Agreement, the Sponsor or  PJT, as applicable, shall provide written notice to NewCo at least five (5) Business Days before such payment is due, designating the accounts to which such payment is to be
      made and providing the necessary account and wire information for such payment.

    

    

    
      6

      
        

    

    7.         Amendments. No amendment of any provision of this Deferral Agreement shall be valid unless the same
      shall be in writing and signed by NewCo and the Founder Holders (or any of their respective transferees) holding a majority of the Founder Securities; provided, however, that the written consent of EG (or his transferees) shall be required for any
      amendment that adversely affects the rights of EG (or his transferees) in a manner that is different than the effect on the rights of the other parties hereto and the written consent of JC shall be required for any amendment that adversely affects
      the rights of JC (or his transferees) in a manner that is different than the effect on the rights of the other parties hereto. No waiver of any provision or condition of this Deferral Agreement shall be valid unless the same shall be in writing and
      signed by the party hereto against which such waiver is to be enforced. No waiver by any party hereto of any default, breach of representation or warranty or breach of covenant hereunder, whether intentional or not, shall be deemed to extend to any
      other, prior or subsequent default or breach or affect in any way any rights arising by virtue of any other, prior or subsequent such occurrence.

     

    

    8.      Integration. This Deferral Agreement, together with the Combination Agreement and the Lock-Up
      Agreements applicable to each Founder Holder represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral, including any terms to
      the contrary included in either the Warrant Purchase Agreements or the Warrant Agreement (and as assumed by NewCo pursuant to the terms of the Combination Agreement).

     

    

    9.        Miscellaneous. Section 8.2(b) (Survival of Representations and Warranties), Section 8.7 (Entire
      Agreement), Section 8.8 (Counterparts; Electronic Delivery), and Section 8.9 (Governing Law; Waiver of Jury Trial; Jurisdiction) of the Combination Agreement are hereby incorporated into this Deferral Agreement, mutatis

        mutandis, as though set out in their entirety in this Section 9.

     

    

    [Signature Pages Follow]

    

    

    
      7

      
        

    

     IN WITNESS WHEREOF, the undersigned has caused this Deferral Agreement to be duly executed as of the date first above written.

    

    

    	 	
            SEAC:

          
	 	 
	 	
            SPORTS ENTERTAINMENT ACQUISITION CORP.

          
	 	 
	 	
            By:

          	
            /s/ Eric Grubman

          	 
	 	
            Name:

          	
            Eric Grubman

          
	 	
            Title:

          	
            Chairman of the Board and Chief Financial

            

            Officer

          

    

    

    

    

    	 	
            NEWCO:

          
	 	 	 
	 	
            SUPER GROUP (SGHC) LIMITED

          
	 	 
	 	
            By:

          	
            /s/ Robert Dutnall

          	 
	 	
            Name:

          	
            Robert Dutnall

          
	 	
            Title:

          	
            Director

          

    

    

    
      [Signature Page to Founder Holders Deferral Agreement]

       

      

    

    
      
        

    

    IN WITNESS WHEREOF, the undersigned has caused this Deferral Agreement to be duly executed as of the date first above written.

    

    

    	 	
            FOUNDER HOLDERS:

          
	 	 
	 	
            SPORTS ENTERTAINMENT ACQUISITION 

            HOLDINGS LLC

          
	 	 
	 	
            By:

          	
            /s/ Eric Grubman

          	 
	 	
            Name:

          	
            Eric Grubman

          
	 	
            Title:

          	
            Manager

          
	 	 	 
	 	
            PJT PARTNERS HOLDINGS LP

          
	 	 
	 	
            By:

          	
            /s/ K. Don Cornwell

          	 
	 	
            Name:

          	
            K. Don Cornwell

          
	 	
            Title:

          	
            Partner

          

    

    

    	 	
            RESTRICTED HOLDERS:

          
	 	 	 
	 	
            Eric Grubman, solely for purposes of Sections 2, 3(b) and 4 through 8

          
	 	 
	 	
            By:

          	
            /s/ Eric Grubman

          	 
	 	 	 
	 	
            Address: 

            

          	185 Black River Rd.
	 	 	
            Long Valley, NJ

          
	 	 	
            07853

          
	 	 	 
	 	
            EKC2012 TRUST, solely for purposes of Sections 2, 3(b) and 4 through 8

          
	 	 
	 	
            By: Eric Grubman, its trustee

          
	 	 	 
	 	
            By:

          	
            /s/ Eric Grubman

          	 
	 	 	 
	 	
            Address: 

            

          	185 Black River Rd.
	 	 	
            Long Valley, NJ

          
	 	 	
            07853

          

    

    

    
      [Signature Page to Founder Holders Deferral Agreement]

       

      

    

    
      
        

    

    	 	
            EPG2012 TRUST, solely for purposes of Sections 2, 3(b) and 4 through 8

          
	 	 
	 	
            By: Elizabeth K. Compton, its trustee

          
	 	 	 
	 	
            By:

          	
            /s/ Elizabeth K. Compton

          	 
	 	 	 
	 	
            Address: 

            

          	185 Black River Rd.
	 	 	
            Long Valley, NJ

          
	 	 	
            07853

          
	 	 	 
	 	
            John Collins, solely for purposes of Sections 2, 3(b) and 4 through 8

          
	 	 
	 	
            By:

          	
            /s/ John Collins

          	 
	 	 	 
	 	
            Address:

            

          	13839 Baycliff Drive
	 	 	
            North Palm Beach, FL 33408

          

    

    

    
      [Signature Page to Founder Holders Deferral Agreement]Exhibit 10.38

 

EXECUTION VERSION

 

UNIT
PURCHASE AND CONTRIBUTION AGREEMENT

 

BY AND AMONG

 

HYDROFARM HOLDINGS GROUP,
INC.,

a Delaware corporation,

 

FIELD
16, LLC, 

a Delaware limited liability
company,

 

F16 HOLDING LLC,

a California limited liability
company

 

AND

 

THE
MEMBERS OF F16 HOLDING LLC

 

Dated:
April 26, 2021

 

     

     

    

 

TABLE OF CONTENTS 

 

	 	Page
	Article I PURCHASE AND SALE	2
	Section 1.01   Purchase and Sale	2
	Section 1.02   Purchase Price	2
	Section 1.03   Closing	3
	Section 1.04   Estimated Closing Calculations	3
	Section 1.05   Escrow Agreement	3
	Section 1.06   Closing Actions.	4
	Section 1.07   Purchase Price Adjustment	4
	Section 1.08   Withholding	7
	Section 1.09   Allocation of Purchase Price	8
	Article II REPRESENTATIONS AND WARRANTIES RELATING TO THE COMPANY	8
	Section 2.01   Organization, Power and Qualification of the Company	8
	Section 2.02   Authority; Enforceability	9
	Section 2.03   Capitalization; Ownership of Units	9
	Section 2.04   Subsidiaries	10
	Section 2.05   No Conflicts; Consents	10
	Section 2.06   Financial Statements	10
	Section 2.07   Undisclosed Liabilities	11
	Section 2.08   Absence of Certain Changes, Events and Conditions	11
	Section 2.09   Material Contracts	13
	Section 2.10   Real Property	15
	Section 2.11   Title to Assets; No Other Business; Condition	16
	Section 2.12   Intellectual Property	17
	Section 2.13   Insurance	20
	Section 2.14   Legal Proceedings; Orders	20
	Section 2.15   Compliance With Laws; Permits; Anti-Corruption Laws	21
	Section 2.16   Environmental Matters	22
	Section 2.17   Employee Benefits	23
	Section 2.18   Employment Matters	25

 

    i

     

    

 

TABLE OF CONTENTS

(Continued)

 

	 	Page
	Section 2.19   Taxes	26
	Section 2.20   Affiliate Transactions	31
	Section 2.21   Products; Recalls	31
	Section 2.22   Material Customers and Material Suppliers	32
	Section 2.23   Data Security	33
	Section 2.24   Inventory	35
	Section 2.25   Accounts Receivable	35
	Section 2.26   COVID-19.	35
	Section 2.27   Brokers	35
	Section 2.28   Disclosure	35
	Section 2.29   No Other Representations and Warranties	35
	Article III REPRESENTATIONS AND WARRANTIES OF SELLER & MEMBERS	36
	Section 3.01   Ownership	36
	Section 3.02   Organization; Authority; Enforceability.	36
	Section 3.03   No Conflicts; Consents	37
	Section 3.04   Brokers	37
	Section 3.05   Litigation	37
	Section 3.06   Investment Purpose; Restricted Stock	37
	Section 3.07   SEC Filings	38
	Section 3.08   Acknowledgement and Representations by Seller and Members	38
	Article IV REPRESENTATIONS AND WARRANTIES OF BUYER	38
	Section 4.01   Organization of Buyer; Authority of Buyer; Buyer Enforceability	38
	Section 4.02   No Conflicts; Consents	39
	Section 4.03   Investment Purpose	39
	Section 4.04   Brokers	39
	Section 4.05   Sufficiency of Funds	39
	Section 4.06   Valid Issuance	40
	Section 4.07   Legal Proceedings	40
	Section 4.08   Acknowledgement and Representations by Buyer	40
	Section 4.09   No Other Representations and Warranties	40

 

    ii

     

    

 

TABLE OF CONTENTS

(Continued)

 

	 	Page
	Article V PRE-CLOSING COVENANTS	40
	Section 5.01   Information Prior to Closing	40
	Section 5.02   Operation of Business	41
	Section 5.03   Confidentiality; Publicity	41
	Section 5.04   Consents; Further Actions	41
	Section 5.05   Exclusivity	42
	Section 5.06   R&W Insurance	42
	Section 5.07   Notice of Termination of Employment	43
	Section 5.08   Data Room	43
	Article VI POST-CLOSING COVENANTS	43
	Section 6.01   Further Assurances	43
	Section 6.02   Employees; Benefit Plans	43
	Section 6.03   Directors and Officers	44
	Section 6.04   Books and Records	45
	Section 6.05   Restrictive Covenants	45
	Section 6.06   Tax Matters	47
	Section 6.07   R&W Insurance Policy	51
	Section 6.08   Release	51
	Section 6.09   Intercompany Matters	52
	Section 6.10   Intellectual Property Rights	52
	Article VII CONDITIONS TO CLOSING	53
	Section 7.01   Conditions to the Obligation to Close of All Parties	53
	Section 7.02   Conditions to the Obligation to Close of Buyer	53
	Section 7.03   Conditions to the Obligation to Close of Seller	56
	Article VIII TERMINATION	57
	Section 8.01   Termination of Agreement	57
	Section 8.02   Effect of Termination	58
	Article IX INDEMNIFICATION	58
	Section 9.01   Survival	58
	Section 9.02   Indemnification by Seller and Members	59

 

    iii

     

    

 

TABLE OF CONTENTS

(Continued)

 

	 	Page
	Section 9.03   Indemnification by Buyer	60
	Section 9.04   Certain Limitations	60
	Section 9.05   Indemnification Procedures	62
	Section 9.06   Materiality Scrape	64
	Section 9.07   Method of Payment for Losses	65
	Section 9.08   Exclusive Remedies	65
	Article X MISCELLANEOUS	65
	Section 10.01   Expenses	65
	Section 10.02   Notices	66
	Section 10.03   Interpretation	67
	Section 10.04   Severability	68
	Section 10.05   Entire Agreement	68
	Section 10.06   Successors and Assigns	68
	Section 10.07   No Third-party Beneficiaries	68
	Section 10.08   Amendment; Waiver	68
	Section 10.09   Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	69
	Section 10.10   Specific Performance	69
	Section 10.11   No Recourse Against any Person other than Contracting Parties	70
	Section 10.12   Counterparts; Electronic Transmission	70
	Section 10.13   Exhibits and Disclosure Letter	70

 

Exhibits

 

Exhibit A –
Defined Terms

Exhibit B –
Contribution Agreement and Plan of Reorganization

Exhibit C –Escrow
Agreement

Exhibit
D – Employment Agreements

Exhibit
E – Restrictive Covenant Agreements

Exhibit F – Net Working
Capital Illustration

Exhibit G – R&W Insurance
Binder

 

    iv

     

    

 

UNIT
PURCHASE AND CONTRIBUTION AGREEMENT

 

This Unit Purchase and Contribution
Agreement (this “Agreement”) dated as of April 26, 2021 (the “Effective Date”), is entered into
by and among Field 16, LLC, a Delaware limited liability company (the “Company”), F16 Holding LLC, a California limited
liability company (the “Seller”), the members of the Seller, each of which is listed on the signature page hereto (each,
a “Member” and, collectively, “Members”), and Hydrofarm Holdings Group, Inc., a Delaware corporation
(the “Buyer”). Each capitalized term used but not defined in this Agreement shall have the meaning given to it in Exhibit A.

 

RECITALS

 

A.    Prior
to the Effective Date, and pursuant to the transactions contemplated by the contribution agreement and plan
of reorganization attached hereto as Exhibit B (the “Reorganization Agreement”) the Members took (or
caused to be taken) the following actions sequentially and at the times set forth in the Reorganization Agreement (the “Reorganization”):

 

1.                  at least two (2) Business Days prior to the Effective Date, the Members formed Seller, which is wholly owned by the Members in
the same proportion to their ownership of membership interests of the Company, and Seller and the Members made an S election for Seller
to be an S corporation (within the meaning of Sections1361 of the Code and any similar or analogous provisions of state or local Law)
(“Step One”);

 

2.                  at
least at least two (2) Business Days prior to the Effective Date, but following Step One, the Members contributed all of the issued and
outstanding membership interests of the Company to Seller, and, effective the same day as such contribution, caused Seller to elect to
treat the Company as a qualified subchapter S subsidiary (within the meaning of Section 1361 of the Code and any similar or analogous
provisions of state or local Law) (the “QSub Election”) in connection with a section 368(a)(1)(F) reorganization described
in Revenue Ruling 2008-18 (“Step Two”); and

 

3.                  on
the next Business Day following Step Two, and at least one (1) Business Day prior to the Effective Date, the Company will convert into
a Delaware limited liability company and file a protective Form 8832 for the Company to be treated as a disregarded entity for U.S. federal
income tax purposes.

 

B.     As
a result of the Reorganization, the Members together are the record and beneficial owners of 100% of the issued and outstanding membership
interests of Seller, and Seller is the record and beneficial owner of all of the issued and outstanding Equity Securities of the Company
(the “Units”).

 

C.     Seller
desires to sell to Buyer 80% of the Units (the “Purchased Units”) for the Cash Consideration and to contribute to
Buyer 20% of the Units (the “Contributed Units”) in consideration for the Shares, and Buyer desires to purchase from
Seller, the Purchased Units and Buyer agrees to accept the contribution of the Contributed Units, subject to the terms and conditions
set forth in this Agreement.

 

     

     

    

 

In consideration of the covenants
and agreements set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged,
the Parties, intending to be legally bound hereby, agree as follows:

 

AGREEMENT

 

Article I

PURCHASE AND SALE

 

Section 1.01       Purchase
and Sale Subject to the terms and conditions set forth in this Agreement, at the Closing, Seller shall sell to Buyer, and Buyer shall
purchase from Seller, the Units, free and clear of all Encumbrances, for the Purchase Price specified in Section 1.02.

 

Section 1.02       Purchase
Price; Contribution.

 

(a)               The
purchase price for the Purchased Units shall be $60,600,000, all of which shall be paid in cash (“Cash Consideration”).
Seller shall contribute the Contributed Units to Buyer in exchange for the issuance of 255,945 shares of common stock of Buyer, $.0001
par value per share (the “Shares”).

 

(b)               The
Cash Consideration and the Shares are collectively referred to as the “Purchase Price.” The Cash Consideration and
the corresponding Purchase Price is subject to adjustment pursuant to Section 1.07 and Section 1.02(c) below.

 

(c)               Buyer
shall be obligated to pay Seller additional potential purchase price (“Additional Purchase Price”) in accordance
with the following. If the net sales (determined in accordance with GAAP consistent with the Audited Financial Statements) of the
Company for calendar year 2021 (“Net Sales”) exceed $21,000,000, then Seller shall be entitled to receive
$200,000 for each $1,000,000 that the Net Sales exceed $21,000,000; provided that the Additional Purchase Price shall not exceed
$2,500,000 in the aggregate. Within 30 days after Buyer completes its 2021 audited financial statements, Buyer shall deliver to
Seller its calculation of Net Sales (“Net Sales Calculation”) together with payment in cash of the amount of
Additional Purchase Price to which Seller is entitled, if any, based on such Net Sales Calculation. Within twenty (20) days of
Seller’s receipt of the Net Sales Calculation, Seller shall provide in writing (such writing, the “Net Sales
Objection”) to Buyer any proposed changes to the Net Sales Calculation, together with a written explanation setting forth
in reasonable detail the basis of any proposed changes. Buyer shall reasonably cooperate with Seller and provide Seller with any
reasonably requested documentation in connection with its review of the Net Sales Calculation. If Seller does not provide Buyer with
a Net Sales Objection that contains the Seller’s proposed calculation of Net Sales within such 20-day period, the Net Sales
Calculation shall become final and binding on the Parties. If the Seller delivers a Net Sales Objection to Buyer in accordance with
the foregoing within such 20-day period, Buyer and Seller shall negotiate in good faith to resolve any dispute within twenty (20)
days after Buyer’s receipt of the Net Sales Objection. If Buyer and Seller are unable to resolve the dispute within such
20-day period, the Independent Accountant shall thereafter resolve the issues in dispute in accordance with the provisions of this Section
1.02(c). If the Independent Accountant determines that Seller is entitled to Additional Purchase Price in excess of the amount
of Additional Purchase Price previously paid by Buyer, Buyer shall pay such additional amount in cash to Seller within five Business
Days of the Independent Accountant’s determination. The fees and expenses payable to the Independent Accountant shall be split
equally between Buyer and Seller. To the extent Buyer pays any Additional Purchase Price, the Purchase Price shall be increased by
the amount of such payment.

 

    2

     

    

 

Section 1.03       Closing.
Unless this Agreement has been terminated pursuant to Section 8.01, and subject to the satisfaction (or to the extent permitted,
the waiver) of the conditions set forth in Article VII, the closing of the Transactions (the “Closing”)
shall take place remotely via the exchange of documents and signatures on May 3, 2021, or at such other place or at such other time and
date as Buyer and the Seller may mutually agree. Except as otherwise provided in this Agreement, all proceedings to be taken and all
documents to be executed at the Closing shall be deemed to have been taken, delivered and executed simultaneously, and no proceeding
shall be deemed taken nor documents deemed executed or delivered until all have been taken, delivered and executed.

 

Section 1.04       Estimated
Closing Calculations. By not later than the third Business Day prior to the Closing Date, Seller shall deliver to Buyer a written
statement (which has been approved by Buyer) setting forth (a) Seller’s good faith estimates of (i) Closing Net Working Capital
(“Estimated Closing Net Working Capital”), (ii) Closing Indebtedness immediately prior to the Closing (“Estimated
Closing Indebtedness”), (iii) Closing Cash (“Estimated Closing Cash”) and (iv) Transaction Expenses immediately
prior to the Closing (“Estimated Transaction Expenses”), (b) Seller’s calculation of the Estimated Closing Net
Working Capital Deficit or Estimated Closing Net Working Capital Increase, and (c) on the basis of the foregoing, a calculation of the
Estimated Closing Purchase Price (together with the calculations referred to in clauses (a) and (b) above, the “Preliminary
Closing Statement”). Seller shall provide Buyer and its Representatives reasonable access to the books and records of the Company,
the personnel of, and work papers (subject to the execution of customary work paper access letters if requested) prepared by, Seller,
the Company and each of its Representatives to the extent that they relate to the Preliminary Closing Statement and to historical financial
information (to the extent in the possession of Seller or the Company) relating to the Preliminary Closing Statement as Buyer may reasonably
request for the purpose of reviewing the Preliminary Closing Statement, provided that such access shall be in a manner that does not
materially interfere with the normal business operations of Seller or the Company.

 

Section 1.05       Escrow
Agreement. On the Closing Date, Buyer, Seller and Escrow Agent shall enter an escrow agreement in the form attached hereto as Exhibit C
(the “Escrow Agreement”). At the Closing, Buyer shall deposit (i) $135,000 (the “Adjustment Escrow Amount”)
with the Escrow Agent in a segregated account designated by the Escrow Agent (the “Adjustment Escrow Account”) in
accordance with the terms of this Agreement and the Escrow Agreement, to be held for the purposes of securing any amounts due by Seller
and the Members to Buyer under Section 1.07 of this Agreement, and (ii) $375,000 (the “Indemnity Escrow Amount”,
together with the Adjustment Escrow Amount, the “Escrow Amount”) with the Escrow Agent in a segregated account designated
by the Escrow Agent (the “Indemnity Escrow Account”) in accordance with the terms of this Agreement and the Escrow
Agreement, to be held for the purposes of securing the indemnification obligations of Seller and the Members set forth in Section 9.02
of this Agreement.

 

    3

     

    

 

Section 1.06       Closing
Actions.

 

(a)              
Delivery of Certificates. At the Closing, Seller shall deliver to Buyer all certificates representing the Units, each duly
endorsed in blank or with a duly executed assignment separate from the attached certificate, or, if the Units are uncertificated, a membership
interest assignment agreement, acceptable to Buyer.

 

(b)               Payment.
At the Closing, Buyer shall:

 

(i)                 pay
the Escrow Amount to the Escrow Agent in accordance with the terms of the Escrow Agreement;

 

(ii)                pay
to Seller (A) the Estimated Closing Purchase Price, minus (B) the Escrow Amount, by wire transfer of immediately available funds
to Seller’s Bank Account; and

 

(iii)               pay, to the intended beneficiaries thereof, (A) the Estimated Closing Indebtedness (as computed pursuant to the applicable Payoff
Letter for which Payoff Letters have been delivered pursuant to Section 7.02(e)(iv)), and (B) the Estimated Transaction Expenses
(as identified by invoices in respect thereof), by wire transfer of immediately available funds.

 

(iv)               deliver to the Seller certificates representing, or other evidence of the issuance to the Seller of, the Shares.

 

(c)              
Other Closing Deliveries.

 

(i)                 Seller
shall deliver to Buyer the other certificates and documents referred to in Section 7.02, together with such other documents
as Buyer may reasonably request for the purpose of facilitating the consummation or performance of the Transactions.

 

(ii)                Buyer
shall deliver to Seller the other certificates and documents referred to in Section 7.03, together with such other documents
as Seller may reasonably request for the purpose of facilitating the consummation or performance of the Transactions.

 

Section 1.07      
Purchase Price Adjustment.

 

(a)              
Determination of Adjustment Amount.

 

(i)                 Within
90 days after the Closing Date, Buyer shall prepare and deliver to Seller a statement setting forth its calculation of (i) Closing Net
Working Capital, (ii) the Closing Net Working Capital Adjustment Amount, (iii) Closing Indebtedness, (iv) Closing Cash, (v) Transaction
Expenses and (vi) on the basis of the foregoing, a calculation of the Closing Purchase Price (together with the calculations referred
to in clauses (i) through (v) above, the “Final Closing Statement”). The Closing Net Working Capital,
Closing Indebtedness and Closing Cash shall be prepared in accordance with the Accounting Principles and the defined terms used in this
Section 1.07.

 

    4

     

    

 

(ii)                Seller
shall have 30 days after its receipt of the Final Closing Statement (the “Review Period”) to review the Final Closing
Statement. During the Review Period, Buyer shall cause the Company to provide Seller and its Representatives reasonable access to the
books and records of the Company, the personnel of, and work papers (subject to the execution of customary work paper access letters
if requested) prepared by, Buyer, the Company and each of its Representatives to the extent that they relate to the Final Closing Statement
and to historical financial information (to the extent in the possession of the Company) relating to the Final Closing Statement as Seller
may reasonably request for the purpose of reviewing the Final Closing Statement and to prepare a Statement of Objections, provided that
such access shall be in a manner that does not materially interfere with the normal business operations of Buyer or the Company.

 

(iii)               On
or prior to the last day of the Review Period, Seller may object to the Final Closing Statement by delivering to Buyer a written statement
(the “Statement of Objections”) setting forth its objections in reasonable detail, indicating each disputed item or
amount and the basis for its disagreement (including for each component of the calculations, the amount of the Seller’s calculation
of such component and reasons for the difference). Any items not disagreed with in the Statement of Objections will be deemed to have
been accepted by Seller. If Seller fails to deliver the Statement of Objections before the expiration of the Review Period, then the
Final Closing Statement (including the determinations included therein) shall be deemed to have been accepted by Seller, which shall
be final, binding and conclusive for all purposes hereunder. If Seller delivers to Buyer a Statement of Objections before the expiration
of the Review Period, then Buyer and Seller shall negotiate in good faith to resolve such objections within 30 days after delivery of
the Statement of Objections (the “Resolution Period”).

 

(iv)               If Seller and Buyer fail to reach an agreement with respect to all of the matters in the Statement of Objections before expiration
of the Resolution Period (or such longer period as they may mutually agree), then any amounts remaining in dispute (the “Disputed
Amounts”) shall be submitted for resolution to the San Francisco office of Moss Adams or, if Moss Adams is unable to serve or
at the time of such proposed engagement is no longer independent, Buyer and Seller shall appoint by mutual agreement the office of an
impartial nationally recognized firm of independent certified public accountants other than the accountants of Seller, any Member, Buyer,
the Company or their Affiliates (the “Independent Accountant”) who, acting as experts and not arbitrators, shall resolve
the Disputed Amounts only. Buyer and Seller shall promptly provide their assertions regarding the Disputed Amounts in writing to the Independent
Accountant and to each other.

 

(v)                The
fees and expenses of the Independent Accountant relating to the work, if any, to be performed by the Independent Accountant
hereunder shall be paid by Seller, on the one hand, and by Buyer, on the other hand, based upon a fraction, the numerator of which
is the portion of the aggregate amount of the Disputed Amounts not awarded to the applicable Party and the denominator of which is
the aggregate amount of the Disputed Amounts. (For example, if Seller challenges items underlying the calculations of Closing Net
Working Capital, Closing Indebtedness, Closing Cash and/or Transaction Expenses in the net amount of $1,000,000, and the Independent
Accountant determines that Seller has a valid claim for $400,000 of the $1,000,000, Seller shall bear 60% of the fees and expenses
of the Independent Accountant and Buyer shall bear 40% of the fees and expenses of the Independent Accountant.)

 

    5

     

    

 

 

(vi)             The
Independent Accountant shall be instructed to make a determination as a soon as practicable within 30 days (or such other time as Buyer
and Seller agree in writing) after its engagement, and to send copies of such written determination to Buyer and Seller. The Independent
Accountant shall base its determination solely on the written submissions of the Parties and shall not conduct an independent investigation.
The Independent Accountant shall not assign a value to any Disputed Amounts submitted to the Independent Accountant greater than the
greatest value for such item claimed by either Party (in the Final Closing Statement, in the case of claims by Buyer, or in the Statement
of Objections, in the case of claims by Seller) or less than the smallest value for such item claimed by either Party (in the Final Closing
Statement, in the case of claims by Buyer, or in the Statement of Objections, in the case of claims by Seller). The Independent Accountant
may not award the Parties in the aggregate more than the amount in dispute. The determination of the Independent Accountant shall be
final, conclusive and binding on the Parties absent manifest error or fraud. The date on which Closing Net Working Capital, Closing Indebtedness,
Closing Cash, the Closing Net Working Capital Adjustment Amount, Transaction Expenses and the Closing Purchase Price are finally determined
in accordance with this Section 1.07(a)(vi) is hereinafter referred to as the “Determination Date.”

 

(b)              
Payments of Adjustment Amount. The “Adjustment Amount,” which may be positive or negative, shall mean
the Closing Purchase Price (as finally determined in accordance with this Section 1.07) minus the Estimated Closing Purchase Price.
The Adjustment Amount shall be paid as follows:

 

(i)             If
the Adjustment Amount is a positive number (such amount, the “Increase Amount”), then, promptly following the Determination
Date, and in any event within five Business Days of the Determination Date, Buyer shall pay to Seller an amount in cash, in immediately
available funds by wire transfer to Seller’s Bank Account, equal to the Increase Amount, and Buyer and Seller shall deliver joint
written instructions to the Escrow Agent in accordance with the Escrow Agreement to release the entirety of the Adjustment Escrow Amount
to Seller, by wire transfer of immediately available funds to the Seller’s Bank Account.

 

    6

     

    

 

(ii)              If
the Adjustment Amount is a negative number (the absolute value of such amount, the “Deficit Amount”), and the
Deficit Amount is less than or equal to the Adjustment Escrow Amount, then, promptly following the Determination Date, and in any
event within five Business Days of the Determination Date, Buyer and Seller shall deliver joint written instructions to the Escrow
Agent in accordance with the Escrow Agreement to pay (i) to Buyer, from the Adjustment Escrow Amount, the lesser of (x) the Deficit
Amount and (y) the Adjustment Escrow Amount and (ii) the balance of the Adjustment Escrow Amount, if any, to Seller, in each case by
wire transfer of immediately available funds to the account designated by Buyer or the Seller’s Bank Account, as
applicable.

 

(iii)             If
the Adjustment Amount is a Deficit Amount and the Deficit Amount is greater than the Adjustment Escrow Amount, then, promptly following
the Determination Date, and in any event within five Business Days of the Determination Date, (i) Buyer and Seller shall deliver joint
written instructions to the Escrow Agent in accordance with the Escrow Agreement to pay to Buyer the entire Adjustment Escrow Amount
and (ii) Seller and the Members, jointly and severally shall be obligated to pay to Buyer the amount by which the Deficit Amount exceeds
the Adjustment Escrow Amount by wire transfer of immediately available funds to the account designated by Buyer.

 

(c)              
Adjustment for Tax Purposes. Any payments made pursuant to Section 1.07(b) shall be treated as an adjustment
to the Purchase Price by the Parties for Tax purposes, unless otherwise required by Law.

 

Section 1.08            Withholding.
Buyer and its Affiliates, successors and assigns, as applicable, shall be entitled to deduct and withhold from the consideration otherwise
payable to any Person pursuant to this Agreement such amounts as Buyer or any of its Affiliates, successors or assigns, as applicable,
are required to deduct and withhold under the Code, or any provision of state, local or foreign Tax Law, with respect to the making of
such payment. To the extent that amounts are so withheld by Buyer or any of its Affiliates, successors or assigns, as applicable, and
paid over to the applicable Governmental Authority, such withheld amounts shall be treated for all purposes of this Agreement as having
been paid to the Person in respect of whom such deduction and withholding was made.

 

    7

     

    

 

Section 1.09            Allocation
of Purchase Price. The Parties agree that, for federal and applicable state income Tax purposes, the sale and contribution of
the Units pursuant to this Agreement shall be treated as a deemed purchase by Buyer of all of the assets and assumption of
Liabilities of the Company from the Seller (the “Agreed Tax Treatment”). Within one hundred twenty (120) days
following the Determination Date, Buyer shall provide a schedule to the Seller (the “Allocation Statement”)
allocating the Purchase Price and any adjustments thereto and all other items treated as consideration for federal income Tax
purposes, including the Liabilities of the Company deemed assumed by Buyer, among the assets of the Company in accordance with
Section 1060 of the Code and applicable Treasury Regulations. Within twenty (20) days of the Seller’s receipt of the
Allocation Statement, the Seller shall provide in writing (such writing, the “Allocation Objection”) to Buyer any
proposed changes thereto, together with a written explanation setting forth in reasonable detail the basis of any proposed changes.
If the Seller does not provide Buyer with an Allocation Objection or an Allocation Objection that contains the Seller’s
proposed allocation of the Purchase Price within such 20-day period, the Allocation Statement shall become final and binding on the
Parties. If the Seller delivers an Allocation Objection to Buyer in accordance with the foregoing within such 20-day period, Buyer
and the Seller shall negotiate in good faith to resolve any dispute within twenty (20) days after Buyer’s receipt of the
Allocation Objection. If Buyer and the Seller are unable to resolve the dispute within such 20-day period, the Independent
Accountant shall thereafter resolve the issues in dispute. The Independent Accountant shall resolve such issues in accordance with
Section 1060 of the Code and the applicable Treasury Regulations and the Allocation Statement shall be modified accordingly. The
fees and expenses payable to the Independent Accountant shall be split equally between Buyer and the Seller. The Allocation
Statement (as finally determined pursuant to this Section 1.09) shall be binding upon the Parties for federal and applicable
state, foreign and local Tax purposes. The Parties agree that they shall file and shall cause their Affiliates to file their Tax
Returns (including IRS Form 8594) in a manner consistent with the Allocation Statement and no Party shall voluntarily take a
position inconsistent with the Allocation Statement and no Party shall agree to any proposed adjustment to the Allocation Statement
by any Taxing Authority without first giving Buyer (in the case of an agreement by the Seller) or the Seller (in the case of an
agreement by Buyer) prior written notice; provided, however, that nothing contained herein shall prevent Buyer or the
Seller from settling any proposed deficiency or adjustment by any Taxing Authority based upon or arising out of the Allocation
Statement, and neither Buyer nor the Seller shall be required to litigate before any court any proposed deficiency or adjustment by
any Taxing Authority challenging such Allocation Statement. If there is an increase or decrease in the consideration within the
meaning of Treasury Regulations Section 1.1060-1(e)(1)(ii)(B) (including as a result of the payment of Additional Purchase Price)
after the Parties have filed the IRS Form 8594, the Parties shall revise the Allocation Statement in a manner consistent with the
Allocation Statement and such revised statement shall become the Allocation Statement for purposes of this Agreement. Except as
otherwise set forth in this Section 1.09, the Parties agree not to take any position, in connection with any Tax Return,
audit or similar proceeding related to Taxes, that is inconsistent with the Allocation Statement (as finally prepared pursuant to
this Section 1.09) and the Agreed Tax Treatment.

 

Article II

REPRESENTATIONS AND WARRANTIES RELATING TO THE COMPANY

 

Each of the Seller and the
Members, jointly and severally, represent and warrant to Buyer as follows:

 

Section 2.01            Organization, Power and Qualification of the Company.

 

(a)               The
Company is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware
and has all necessary power and authority to own, operate or lease the properties and assets now owned, operated or leased by it, to
carry on the Business as it is currently conducted, to enter into this Agreement and the other Transaction Agreements to which the Company
is a party, to perform its obligations hereunder and thereunder, and to consummate the Transactions. The Company is duly licensed or
qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation
of its business as currently conducted makes such licensing or qualification necessary, except where the failure to be so licensed or
qualified would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Section 2.01(i)
of the Disclosure Letter contains a complete and accurate list of each jurisdiction in which the Company is qualified to do business
as a foreign business entity. Section 2.01(ii) of the Disclosure Letter contains a complete and accurate list of all assumed
or fictitious names of the Company used within the last five (5) years and the corresponding jurisdiction(s) in which the Company has
registered such assumed or fictitious names.

 

    8

     

    

 

(b)               The
Seller has made available to Buyer correct and complete copies of the Organizational Documents of the Company. Such Organizational Documents
are in full force and effect and the Company is not in violation of any provisions of such Organizational Documents.

 

Section 2.02            Authority;
Enforceability.

 

(a)              The
execution, delivery and performance by the Company of this Agreement and the other Transaction Agreements to which the Company is a party,
and the consummation of the Transactions, are within the limited liability company power of the Company. The execution, delivery and
performance by the Company of this Agreement and the other Transaction Agreements to which the Company is a party, and the consummation
by the Company of the Transactions, have been duly and validly authorized by all necessary actions (including any action by the member
and managers of the Company), and no other action on the part of the Company is necessary to authorize the execution, delivery and performance
by the Company of this Agreement and the other Transaction Agreements to which the Company is a party, and the consummation by the Company
of the Transactions.

 

(b)              This
Agreement and the other Transaction Agreements to which the Company is a party have been duly executed and delivered by the Company,
and (assuming due authorization, execution and delivery by Buyer) this Agreement and the other Transaction Agreements to which the Company
is a party constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’
rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity)
(collectively, the “Enforceability Exception”).

 

Section 2.03            Capitalization;
Ownership of Units. The authorized Equity Securities of the Company consist solely of the Units, all of which are issued and outstanding.
Except for the Units, there are no issued or outstanding Equity Securities of the Company. The Units have been duly authorized and are
validly issued, fully paid and non-assessable, and are owned of record and beneficially by Seller and are free of any preemptive rights
in respect thereto, and were not issued in violation of any preemptive rights, call options, rights of first refusal, subscription rights,
transfer restrictions (other than those imposed by securities Laws) or similar rights of any Person or applicable Law. There are no Contracts
to which the Company or Seller is a party or by which it is bound relating to the issuance, repurchase, exchange, conversion, transfer,
disposition redemption or acquisition of any Equity Securities of the Company. Except pursuant to this Agreement, neither Seller nor
the Company has granted, directly or indirectly, to any Person any right to acquire any Equity Securities of the Company or any right
or privilege capable of the right to acquire any Equity Securities of the Company. Neither Seller nor the Company is a party to any voting
trust, proxy or other agreement or understanding with respect to the voting of any of Equity Securities of the Company or Seller and
there are no contractual equityholder preemptive or similar rights, rights of first refusal, rights of first offer or registration rights
in respect of any Equity Securities of the Company.

 

    9

     

    

 

Section 2.04            Subsidiaries.
The Company (i) has no Subsidiaries, and (ii) does not directly or indirectly own, nor has it owned, any Equity Securities of any Person.

 

Section 2.05            No Conflicts; Consents. The execution, delivery and performance by
the Company of this Agreement and the other Transaction Agreements to which the Company is a party, and the consummation of the Transactions,
does not and will not (a) result in a violation or breach of the Organizational Documents of the Company, (b) result in a violation or
breach of any Law or Order applicable to the Company, (c) except as set forth on Section 2.05 of the Disclosure Letter, require
the consent, notice, waiver, filing or other action by any Person under, conflict with, result in a violation or breach of, constitute
a default under, give rise to a right of termination of, or result in the acceleration of any right or obligation under, any Contract
to which the Company is a party or by which its assets are bound, or (d) result in the creation or imposition of any Encumbrance on any
asset of the Company. No consent, waiver, approval, Permit, Order, declaration or filing with, or notice to, any Governmental Authority
is required by or with respect to the Company in connection with the execution and delivery of this Agreement, the other Transaction
Agreements to which the Company is a party, and the consummation of the Transactions.

 

Section 2.06            Financial
Statements.

 

(a)               Section
2.06(a) of the Disclosure Letter contains correct and complete copies of the following financial statements of the Company (such
financial statements, the “Financial Statements”): (i) unaudited financial statements of the Company as of December
31, 2019, consisting of the unaudited balance sheets and the related unaudited statements of income and cash flows for the fiscal year
ended on such date (the “2019 Financial Statements”), (ii) the audited financial statements of the Company as of December
31, 2020, consisting of the audited balance sheet and the audited statement of income and members’ equity and statement of cash
flows for the year ended on such date, together with all related notes and schedules thereto, accompanied by the report thereon of the
Company’s independent auditors (the “Audited Financial Statements”), and (iii) the unaudited balance sheet of
the Company as of March 31, 2021 (the “Latest Balance Sheet”) and the
related unaudited statements of income and cash flows for the three month period then ended (collectively with the Latest Balance Sheet,
the “Most Recent Financial Statements”). Each of the 2019 Financial Statements and the Most Recent Financial Statements
have been prepared from the books and records of the Company and fairly present the financial position and results of operations of the
Company as of the date and for the period referred to in such Financial Statements, respectively. The Audited Financial Statements has
been prepared in accordance with GAAP and fairly presents the financial position and results of operations of the Company as of the respective
dates and for the periods referred to in such Financial Statements, subject to the absence of footnote disclosures in the Most Recent
Financial Statements.

 

    10

     

    

 

(b)             The
Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are
executed in accordance with management’s authorization, (ii) transactions are recorded as necessary to permit preparation of
financial statements of the Company in conformity with GAAP applied on a consistent basis and to maintain accountability for assets,
(iii) access to assets is permitted only in accordance with management’s authorization, and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences (“Internal Controls”). Neither the Company nor Seller has identified or received notice from an
independent auditor of (x) any significant deficiency or material weakness in the system of Internal Controls utilized by the
Company, (y) any facts, that in their totality, reasonably constitute fraud that involves the Company or the Seller’s
management or other employees who have a role in the preparation of financial statements or the Internal Controls utilized by the
Company, or (z) any claim or allegation regarding any of the foregoing. There are no significant deficiencies or material weaknesses
in the design or operation of the Internal Controls over financial reporting that would reasonably be expected to adversely affect,
in a material manner, the Company’s ability to record, process, summarize and report financial information.

 

(i)                The
books and records of the Company (i) are complete and correct in all material respects, and all transactions to which the Company is
or has been a party are accurately reflected therein, (ii) reflect all discounts, returns and allowances granted by the Company with
respect to the periods covered thereby, (iii) have been maintained in accordance with customary and sound business practices, (iv) form
the basis of the Financial Statements, and (v) reflect the assets, Liabilities, financial position, results of operations and cash flows
of the Company.

 

Section 2.07            Undisclosed
Liabilities. The Company has no material Liabilities, other than Liabilities (a) set forth on the Latest Balance Sheet, (b) incurred
in the Ordinary Course of Business since the date of the Latest Balance Sheet, and (c) incurred in connection with this Agreement and
the Transactions.

 

Section 2.08            Absence
of Certain Changes, Events and Conditions. Since January 1, 2021, (a) the Company has conducted the Business in the Ordinary Course
of Business, (b) there has not been any event, occurrence, development or state of circumstances or facts that has had or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect, and (c) except as set forth on Section 2.08 of the
Disclosure Letter, the Company has not:

 

(a)               made
any change in its (i) accounting methods, principles or practices, (ii) Tax reporting practices, or (iii) cash management practices (including
with respect to accounts receivable);

 

(b)              
(i) settled or compromised any Tax Claim, audit, or assessment, (ii) made changed or revoked any Tax election, (iii) adopted or
changed any annual Tax accounting period, or method of Tax accounting, (iv) amended any Tax Return or claim for refund, or (v) consented
to any extension or waiver of the limitations period applicable to any claim or assessment in respect of Taxes or surrendered any right
or claim to refund of Taxes;

 

(c)               waived,
compromised, canceled, terminated, abandoned, allowed to lapse, assigned or granted any rights in, allowed to expire or released any
right under any Contract to which the Company is a party or any Company Intellectual Property Rights, or made any write-off or write-down
of or made any determination to write-off or write-down any of its assets or properties, except in the Ordinary Course of Business;

 

    11

     

    

 

(d)              terminated,
modified or amended any Material Contract, except such terminations, modifications or amendments entered into in the Ordinary Course
of Business;

 

(e)               made
any capital expenditures or commitments in excess of an aggregate of $50,000, or suffered any damages to or destruction of any tangible
assets (whether or not covered by insurance), involving amounts that exceed $50,000 in the aggregate, or experienced any material changes
in the amount and scope of insurance coverage;

 

(f)                suffered
(i) any material shortages, cessation or interruption of supplies, utilities, or other services required to conduct the Business, or
(ii) any loss of a Material Customer or Material Supplier;

 

(g)               incurred,
assumed or paid any material Liabilities, other than in the Ordinary Course of Business, settled any dispute or Liability pending or
threatened against it or any of its properties or assets, or failed to pay or discharge when due any accounts payable or other Liabilities;

 

(h)               commenced,
settled or compromised any Legal Proceeding;

 

(i)               sold,
assigned, transferred, conveyed, leased, pledged, encumbered or otherwise disposed of any material assets or properties, other than dispositions
of inventory in the Ordinary Course of Business;

 

(j)               acquired
any properties or assets or entered into any other transaction, other than in the Ordinary Course of Business, or effected any merger,
consolidation, recapitalization, redemption, reclassification, split or similar change in its capitalization;

 

(k)               amended
or modified its Organizational Documents, except pursuant to the Reorganization;

 

(l)                 (i)
split, combined or reclassified the Units, or (ii) declared, set aside or paid any dividend or other distribution other than distributions
of cash consistent with past practice;

 

(m)               issued
any Equity Securities to any Person other than Seller;

 

(n)              (i)
adopted a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization, except for the
Reorganization, or (ii) entered into any Contract providing for acceleration of payment or performance as a result of a change of control;

 

(o)              made
(i) any change in the rate of compensation, commission, bonus or other remuneration payable, or agreed to pay, any bonus, incentive,
retention or other compensation, or any change in control payment, to or in respect of any employee, or (ii) entered into any new, or
amended or terminated any existing, Employee Benefit Plan;

 

    12

     

    

 

(p)              experienced
a breach of the Company’s information technology systems, networks, and/or services, or any unauthorized use, access, or disclosure
of Personal Information in the Company’s possession, custody, or control; or

 

(q)               agreed
to or obligated itself to do any of the foregoing.

 

Section 2.09            Material Contracts.

 

(a)              
Section 2.09(a) of the Disclosure Letter sets forth a correct and complete list of the following Contracts to which
the Company is a party or under which the Company has continuing Liabilities that fall within the following categories (collectively,
the “Material Contracts”):

 

(i)              any
Contract for the purchase of services or products providing for either (A) annual payments by the Company of $50,000 or more; or (B)
anticipated receipts by the Company of more than $50,000 in any calendar year;

 

(ii)              any
Contract that provides for indemnification by the Company entered into outside of the Ordinary Course of Business;

 

(iii)             any
employment, change of control, severance, consulting or restrictive covenant Contract with any current or former (A) officer, director
or manager of the Company, (B) any Employee (other than oral employment Contracts terminable at will without any further obligation of
the Company), or (C) independent contractor;

 

(iv)            
any Contract that relates to the sale of any of the Company’s assets, other than in the Ordinary Course of Business;

 

(v)              any
Contract that relates to the acquisition or disposition of any business, a material amount of stock or assets of any other Person or
any real property (whether by merger, sale of stock, sale of assets or otherwise) pursuant to which the Company has continuing obligations
following the date hereof;

 

(vi)           any
Contract relating to any Indebtedness of the Company or any other Person whereby the Company guarantees such Indebtedness;

 

(vii)            any
Contract with any Governmental Authority;

 

(viii)           any
Contract that limits, purports to limit, impedes, interferes with or restricts the ability of the Company or its Affiliates to (A) compete
with any Person in a product line or any line of business, (B) operate in any geographic area, (C) engage in any line of business, or
(D) solicit for employment, hire or employ any Person;

 

(ix)              any
Contract that provides for a joint venture, partnership or similar arrangement by the Company;

 

    13

     

    

 

(x)               any
collective bargaining agreements or Contracts with any labor organization, union or association;

 

(xi)              any
lease or sublease related to the Leased Real Property;

 

(xii)             any
material option, license, franchise or similar Contract;

 

(xiii)            any Contract that obligates the Company to conduct business on an exclusive or preferential basis, that contains a “most
favored nation” or similar covenant with any Person or that contains requirements, “take or pay” or similar provisions
binding on the Company;

 

(xiv)           any
Contract pursuant to which the Company grants or is granted a license or right to use, or covenant not to be sued under, any Intellectual
Property Rights other than (A) licenses for commercially available Software that are generally available on nondiscriminatory pricing
terms which have an aggregate annual cost of $50,000 or less, and (B) non-exclusive licenses granted to, or by, the Company in the Ordinary
Course of Business;

 

(xv)            any
Contracts between or among the Company, on the one hand, and Seller, any Member or any Affiliate of Seller or any Member, on the other
hand;

 

(xvi)           any
Contract pursuant to which a consent or waiver of, or notice to, a counterparty thereto is required in connection with the consummation
of the Transactions;

 

(xvii)          any
Contract that grants any right of first refusal, right of first offer, or similar right with respect to any assets, rights or properties
of the Company;

 

(xviii)         any
manufacturing Contract;

 

(xix)            any
Contract relating to the distribution, marketing or advertising of any of the Company Products;

 

(xx)             any
Contract between the Company, on the one hand, and any distributors, manufacturers’ agents or selling agents, on the other hand,
or pursuant to which the Company sells or distributes products or pays a commission to a Person with respect to the sale of the Company
Products;

 

(xxi)            any
Contract with a Material Customer, other than purchase orders entered into in the Ordinary Course of Business;

 

(xxii)           any
Contract with a Material Supplier other than purchase orders entered into in the Ordinary Course of Business; and

 

(xxiii)          any
Contract which is not otherwise described in clauses (i)-(xxii) above that is material to the Company.

 

    14

     

    

 

(b)              Correct
and complete copies of the Material Contracts have previously been made available to Buyer. The Company is not in breach of, or
default under, any Material Contract and there is no event or condition that, with or without notice or lapse of time or both, could
constitute a breach or default by the Company under any Material Contract. To Seller’s Knowledge, no other party to any
Material Contract is in breach of, or default under, any Material Contract and there is no event or condition that, with or without
notice or lapse of time or both, could constitute a breach or default by any other party under any Material Contract. Each of the
Material Contracts is in full force and effect, is a legal, valid and binding obligation of the Company and enforceable against the
Company, and, to Seller’s Knowledge, against the other parties thereto, in accordance with its terms, except as enforceability
may be limited by the Enforceability Exception. There has not been any written notice or, to Seller’s Knowledge, threat to
terminate any Contract to which the Company is a party. To Seller’s Knowledge, no event has occurred which (with or without
notice or lapse of time or both) permits any termination, modification or acceleration of payment, or requires any payment, under
any Contract to which the Company is a party.

 

Section 2.10            Real
Property.

 

(a)              The
Company does not own any real property. Section 2.10(a) of the Disclosure Letter contains a correct and complete list of
all real property leased (whether as landlord or tenant) or occupied by the Company, and the lessor or lessee of such property (the “Leased
Real Property”). The Company has a valid leasehold interest in the Leased Real Property.

 

(b)               Neither
the whole nor any portion of the Leased Real Property has been condemned, requisitioned, expropriated or otherwise taken by any Governmental
Authority and, to Seller’s Knowledge, no such condemnation, requisition, expropriation or taking is threatened or contemplated.
There are no pending or, to Seller’s Knowledge, threatened changes to any applicable codes or zoning requirements affecting or
against all, any portion of the Leased Real Property. There are no (i) public improvements which have been ordered, commenced or completed
and for which an assessment may be levied against the Leased Real Property, or (ii) planned improvements which may result in any assessment
against the Leased Real Property, in each case that would result in a Liability of the Company. There is no Encumbrance applicable to
the Leased Real Property that would impair the current use or the occupancy of such Leased Real Property by the Company. All buildings,
structures, fixtures, and appurtenances comprising part of the Leased Real Property were constructed or installed in all material respects
in accordance with all Laws, are, to Seller’s Knowledge, structurally sound and are in good condition and repair (normal wear and
tear excepted), and do not encroach on any property owned by any other Person, and there are no violations of any Law affecting any portion
of the Leased Real Property, including violations of any Laws regulating building, zoning, fire, safety, environmental, traffic, flood
control or health, and no notice of any such violation has been issued by any Governmental Authority.

 

    15

     

    

 

(c)               All
improvements to the Leased Real Property (including mechanical, electrical and plumbing systems serving such improvements) are in
good condition and repair (normal wear and tear excepted), and, to Seller’s Knowledge, such improvements are free from
structural defects. There are no continuing maintenance, repair or capital improvement obligations with respect to the Leased Real
Property set forth in the lease for the Leased Real Property that have not been satisfied by the Company. Except as set forth on Section
2.10(c) of the Disclosure Letter, there are no improvements or additions that are required to be removed by the Company pursuant
to the terms of the lease for the Leased Real Property upon termination of any lease or sublease relating to the Leased Real
Property. There are no damages, conditions or repairs that the Company would be obligated to repair, restore or remediate pursuant
to the terms of the lease for the Leased Real Property upon termination of such lease or sublease. The Leased Real Property is
supplied with utilities and other services adequate for the operation of such Leased Real Property, including adequate water, storm
and sanitary sewer, gas, electric, cable and telephone facilities. The Company has obtained all agreements or other rights from any
other Person necessary to permit the lawful use and operation of the facilities located on the Leased Real Property or any
driveways, roads and other means of egress and ingress to and from the Leased Real Property, and each such agreement or other right
is in full force and effect.

 

(d)               There
are no outstanding options, rights of first offer or rights of first refusal to purchase or lease the Leased Real Property or any portion
thereof or interest therein to which the Company is a party or is otherwise bound. The Leased Real Property is not shared by the Company,
on the one hand, and any other Person, on the other hand, or used for any business other than the Business. The Company has the right
to quiet enjoyment of all of the Leased Real Property. There has been no disturbance of, or challenge to, the Company’s quiet possession
of any Leased Real Property for the full term of any applicable lease and any renewal option related thereto.

 

(e)               There
is no pending or, to Seller’s Knowledge, threatened Legal Proceeding against or affecting the Leased Real Property.

 

(f)               (i)
No portion of the Leased Real Property is located within a flood hazard area; and (ii) no portion of the Leased Real Property constitutes
wetlands.

 

(g)              No
impact fees have been imposed, assessed or levied against the Leased Real Property; to Seller’s Knowledge, no impact fees are contemplated
by any Governmental Authorities to be imposed, assessed or levied against the Leased Real Property and any impact fees imposed, assessed
or levied upon the Leased Real Property have been paid in full.

 

Section 2.11            Title
to Assets; No Other Business; Condition.

 

(a)               The
Company has good, valid and marketable title to, or a valid leasehold or license interest in, all of the property and assets of the Company
(including the Leased Real Property and the Company Intellectual Property Rights), free and clear of all Encumbrances, except Permitted
Encumbrances. Such property and assets constitute all of the assets, rights and properties necessary and sufficient for the Company to
operate the Business after the Closing in the same manner as conducted by the Company in the one-year period prior to the Closing Date.
The Company does not engage in any business other than the Business.

 

    16

     

    

 

(b)               All
of the tangible properties and assets of the Company (including the building(s) and other improvements comprising the Leased Real Property)
are (a) free from defects or other deficiency (whether in design or manufacture), (b) usable in the regular and Ordinary Course of Business,
(c) in conformity with all applicable Laws and Permits relating to their manufacture, use and operation, (d) in good operating condition
and repair, ordinary wear and tear excepted, (e) to Seller’s Knowledge, structurally sound, and (f) adequate for the purposes for
which such properties and assets are being used by the Company.

 

Section 2.12             Intellectual
Property.

 

(a)               Section 2.12(a) of the Disclosure Letter contains a list including, where applicable, the filing, registration, or
issuance date, application number, registration or issuance number, owner, and jurisdiction, of all (i) registrations or issuances of
any Company Intellectual Property Rights, (ii) pending applications for registration of any Company Intellectual Property Rights, (iii)
Contracts under which the Company has granted or licensed to any third party any Intellectual Property Rights and/or Company Intellectual
Property Rights, (iv) Contracts under which a third party has granted or licensed to the Company any Intellectual Property Rights and/or
Company Intellectual Property Rights (“Licenses-In”), (v) Software (other than commercially available off-the-shelf
Software licensed by the Company that is generally available on nondiscriminatory pricing terms which has an aggregate annual cost of
$50,000 or less), (vi) trade secrets, (vii) unregistered Marks, and (viii) Domain Names and social media accounts, in each case owned
or purported to be owned by, licensed by, licensed to or used by the Company or otherwise necessary to or used in the operation of the
Business (categorized by type (e.g., Patents, Marks, Domain Names, Copyrights, Contracts, trade secrets and Software) and whether such
Patents, Marks, Domain Names, Copyrights, Contracts, trade secrets and Software are owned, licensed by, licensed to or used by the Company).
The Company Intellectual Property Rights listed in Section 2.12(a) of the Disclosure Letter are valid and enforceable. Buyer has
had access to correct and complete prosecution histories memorializing all correspondence with the United States Patent & Trademark
Office or other foreign analogue administrations or tribunals relating to applications for or registrations of the Company Intellectual
Property Rights, as well as documents sufficient to show chain of title from applicable inventors or authors of such Company Intellectual
Property Rights to the Company. All required filings and fees related to the Registered Intellectual Property owned by the Company have
been timely submitted and paid to the appropriate Governmental Authority. All Registered Intellectual Property owned by the Company has
been duly filed, registered or issued, as the case may be, with the appropriate Governmental Authority and has been properly maintained
and renewed in accordance with all applicable Laws in all material respects. The formulas for each of the Company Products produced by
or on behalf of the Company have been recorded in written or electronic form so that the Company can produce such Company Products after
the Closing in the same manner as they were produced before the Closing and the Company has not disclosed those formulas to any Person
that was not subject to an obligation of confidentiality and has otherwise taken all steps to protect the trade secret status of such
formulas.

 

(b)              The
Company owns, exclusively and beneficially, free and clear of all Encumbrances (other than Permitted Encumbrances), all rights, title,
and interests in and to the Intellectual Property Rights owned by the Company, and has the valid right to use, free and clear of all
Encumbrances (other than Permitted Encumbrances), all of the other Intellectual Property Rights used by the Company, and no Intellectual
Property Rights owned by the Company are in the control of any Person other than the Company. No Company Intellectual Property Right
is subject to any outstanding Order or Contract restricting the use thereof by the Company or restricting the licensing thereof by the
Company to any Person.

 

    17

     

    

 

(c)              The
operation of the Business, as currently conducted by the Company and as conducted since the Lookback Date, and the Company
Intellectual Property Rights owned, licensed, or used by the Company, do not and since the Lookback Date have not infringed,
misappropriated, diluted or otherwise violated, and have not since the Lookback Date and do not infringe, dilute, misappropriate, or
otherwise violate, the Intellectual Property Rights or other rights of any Person or give rise to an obligation to render an
accounting to any Person as a result of co-authorship or co-invention.

 

(d)               Neither
the Company nor Seller has received any written notice (including by demand letter or offer to license) alleging that the operation of
the Business infringes, and/or its use of any Intellectual Property Rights misappropriates or otherwise violates, the Intellectual Property
Rights or any other right of any Person. Except as set forth on Section 2.12(d) of the Disclosure Letter, to Seller’s Knowledge,
no Person has infringed, misappropriated, or otherwise violated any Company Intellectual Property Right. There is no basis for any Legal
Proceeding asserting any such infringement or asserting that the Company does not have the legal right to use any of the Intellectual
Property Rights used in, necessary for, or related to the conduct of the Business or that the Company unfairly competes with any Person.

 

(e)               The
execution and delivery of this Agreement and the consummation of the Transactions will not result in any of the Intellectual Property
Rights used in, necessary for, or related to the conduct of the Business ceasing to be available for use in the operation of the Business
on terms and conditions identical to those on which such Intellectual Property Rights were used by the Company immediately prior to the
Closing.

 

(f)                All
Software used in connection with the Business or otherwise residing on the Company’s computer systems is properly licensed, and
the Company has not made any unlicensed copies of such Software except those permitted for archival and back-up purposes. The Company
is not, nor, to Seller’s Knowledge, is any other party, in breach of or in default under any such license or other Contract, and
each such license and other Contract is valid and in full force and effect. The Company owns all licenses necessary to use the Software
used in the operation of the Business, to Seller’s Knowledge, without claims of infringement or other violation of rights of the
owner of such Software. No event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of
default under any such license or result in a termination thereof or would cause or permit the acceleration or other changes of any right
or obligation or the loss of any benefit thereunder.

 

(g)              The
Company has the right to use, sell, license, dispose of, sublicense, and freely assign, and has the right to bring actions for the infringement
or misappropriation of, any of the Company Intellectual Property Rights. The Company is not under any obligation to pay any royalty,
license fee, or other similar consideration to any Person or to obtain any approval or consent for use of any of the Intellectual Property
Rights used in, necessary for, or related to the conduct of the Business.

 

    18

     

    

 

(h)               Any
Software created or developed by the Company or on its behalf is free and clear of any defects, malware, viruses, or other malicious
code. The use, sale, or licensing of any Software created or developed by the Company or on its behalf is not governed, in whole or in
part, by the terms of the GNU General Public License or any other license requiring (as a license condition or otherwise) the Company
to disclose, assign, or license any source code or any other content associated with the any of the Intellectual Property Rights used
in, necessary for, or related to the conduct of the Business.

 

(i)               Each
current and former employee of the Company and any current or former independent contractor or other Person retained by the Company who,
either alone or in concert with others, created or creates, developed or develops, invented or invents, discovered or discovers, derived
or derives, programmed or programs, or designed or designs any of the Company Intellectual Property Rights, has entered into a written
agreement with the Company (i) presently assigning all rights in such Intellectual Property Rights to the Company, and (ii) providing
that such employee, independent contractor, or other Person waives any moral rights thereto. Each current and former employee of the
Company and any current or former independent contractor or other Person retained by the Company who has had access to or was provided
with any material Confidential Information or trade secrets of the Company or any Confidential Information for which the Company or Seller
owed or owes a duty of confidentiality to a third Person, has entered into a written agreement with the Company or Seller containing
reasonable confidentiality obligations to protect such Confidential Information or trade secrets and that are compliant in all material
respects with any obligations of confidentiality owed by the Company to any applicable third Person. No former owner, Affiliate, employee,
or independent contractor of the Company, or other Person, has any valid claim or right to any of the rights in the Company Intellectual
Property Rights. The Company has used and uses its reasonable efforts to diligently protect its rights in the material Intellectual Property
Rights owned by the Company, including the confidential nature of all trade secrets (including any trade secrets of third parties to
whom the Company owed or owes a duty of confidentiality), and there have been no acts or omissions by the Company, the result of which
would be to compromise the rights of the Company in any material respect (or Buyer after the Closing Date) to apply for or enforce appropriate
legal protection afforded by such Intellectual Property Rights owned by the Company in the manner in which the Business is currently
operated or that would result in the abandonment, dedication to the public domain, or loss of any rights in or to any such Intellectual
Property Rights. The Company has not and has not been in violation of any confidentiality obligation owed to any other Person in any
material respect.

 

(j)                The
Company owns or has exclusive control over all Domain Names comprising the Intellectual Property Rights owned by the Company (including
all login or access credentials for any social media accounts and Domain Name registrations) and no single employee, contractor or other
Person owns, maintains, or controls such login or access credentials.

 

(k)              Except
as would not result in a material Liability to the Company, the Company has all consents, authorizations, permissions, and/or waivers
necessary to use any names, images, likenesses, quotes, or other personal indicia of any Person as used by the Company, and such consents,
authorizations, permissions shall survive the Closing.

 

    19

     

    

 

Section 2.13            Insurance(ii).

 

(a)               Section 2.13
of the Disclosure Letter sets forth a correct and complete list of all policies of insurance of the Company or Seller currently in
effect (collectively, the “Insurance Policies”), including the carrier, description of coverage, limits of coverage,
retention or deductible amounts, amount of annual premiums, and date of expiration with respect to each Insurance Policy. Seller has
made available to Buyer correct and complete copies of each Insurance Policy.

 

(b)              All Insurance Policies are binding, enforceable and in full force and effect and provide insurance in such amounts and against
such risks as Seller reasonably has determined to be prudent, taking into account the industries in which the Company operates. The Company
is not in breach or default, and the Company has not taken any action or failed to take any action which, with notice or the lapse of
time, would constitute such a breach or default, or permit termination or modification of, any of the Insurance Policies. To Seller’s
Knowledge, no insurer of any Insurance Policy has declared bankruptcy or been declared insolvent or placed in receivership, conservatorship
or liquidation. No notice of cancellation or termination, other than pursuant to the expiration of a term in accordance with the terms
thereof, has been received by the Company or Seller with respect to any Insurance Policy, and no event or condition exists or has occurred
that could result in cancellation of any Insurance Policy prior to its scheduled expiration date.

 

(c)              The
Insurance Policies are sufficient for compliance by the Company with all requirements of Law and with the requirements of all Contracts
to which the Company is a party. The Company has not been refused any insurance with respect to the Business or assets of the Company
other than applications for insurance submitted in the ordinary course where the insurance carrier declined to quote. No Insurance Policy
provides for or is subject to any retroactive rate or premium adjustment, loss sharing arrangement or other Liability arising wholly
or partially out of events arising prior to the Closing. Neither the Company nor Seller has received any written notice from or on behalf
of any insurance carrier issuing any Insurance Policy that insurance rates therefor shall hereafter be substantially increased (except
to the extent insurance rates may be increased for all similarly situated risks) or that there shall hereafter be a cancellation or an
increase in a deductible (or an increase in premiums to maintain an existing deductible) or nonrenewal of any Insurance Policy.

 

Section 2.14            Legal
Proceedings; Orders. Except as set forth on Section 2.14 of the Disclosure Letter, the Company is not (and has not been since
the Lookback Date) a claimant or defendant in, or otherwise a party to, any Legal Proceeding or, to Seller’s Knowledge, threatened
Legal Proceeding against the Company or otherwise affecting or involving the Business or the assets of the Company. To Seller’s
Knowledge, there is no investigation or review pending or threatened by any Governmental Authority with respect to the Company or the
Business. There are no Orders of, or before, any Governmental Authority against the Company or under which the Company is subject to
ongoing obligations.

 

    20

     

    

 

Section 2.15            Compliance
With Laws; Permits; Anti-Corruption Laws.

 

(a)               Except
as set forth on Section 2.15(a) of the Disclosure Letter, the Company is, and since the Lookback Date has been, in compliance
in all material respects with all Laws applicable to it or the Business, its properties or its assets.

 

(b)               Except
as set forth on Section 2.15(b) of the Disclosure Letter, the Company holds all Permits required for the operation of the Business.
All such Permits are valid and in full force and effect. The Company is in compliance in all material respects with the terms of such
Permits, and there are no Legal Proceedings pending or, to Seller’s Knowledge, threatened that would reasonably be expected to
result in the revocation or termination of any such Permit. No condition, fact or circumstance exists that would result in, or would
be likely to result in, the revocation, limitation, nonrenewal or denial of any Permit necessary or advisable for the lawful conduct
of the Business.

 

(c)               Since
the Lookback Date, none of the Company nor any of its directors, managers, officers or employees, or to Seller’s Knowledge, any
agent or other person acting on behalf of the Company has, directly or indirectly, violated or is in violation of, or is aware of any
action taken that would result in a violation of, the Foreign Corrupt Practices Act of 1977 or any anti-corruption Law (collectively,
the “Anti-Corruption Laws”), nor (i) used any funds of the Company for unlawful contributions, unlawful gifts, unlawful
entertainment or other unlawful expenses relating to political activity, (ii) made any unlawful payment to foreign or domestic governmental
officials or employees or to foreign or domestic political parties or campaigns from funds of the Company, or (iii) made any unlawful
bribe, unlawful rebate, unlawful payoff, unlawful influence payment, unlawful kickback or other unlawful payment to any person, private
or public, regardless of form, whether in money, property or services. No Legal Proceeding by or before any Governmental Authority involving
the Company or any of its directors, managers, officers, employees, agents or other Persons acting on their behalf, with respect to any
Anti-Corruption Law is pending or, to Seller’s Knowledge, threatened, nor have any disclosures been submitted by the Company to
any Governmental Authority with respect to potential violations of any Anti-Corruption Law by any such Person.

 

(d)               Since
the Lookback Date, neither the Company nor any of its directors, managers, officers or employees, or, to Seller’s Knowledge, any
agent or other Person acting on behalf of the Company has, directly or indirectly, violated or is in violation of, or is aware of any
action taken that would result in a violation of, the Uniting and Strengthening America By Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001 (the “USA PATRIOT Act”) or any other anti-money laundering Law applicable to it
(“AML Laws”).  Neither the Company nor any of its directors, managers, officers or employees, or, to Seller’s
Knowledge, any agent or other Person acting on behalf of the Company has, directly or indirectly, (i) used any funds of the Company to
engage in illegal conduct under any applicable Laws, (ii) engaged in transactions intended to or having the effect of disguising the
nature, location, source, ownership or control of funds, (iii) engaged in transactions involving funds that are the proceeds of unlawful
activity, or (iv) engaged in a financial transaction designed in whole or in part to avoid a financial reporting requirement under any
applicable Law.  No Legal Proceeding involving the Company or any of its directors, managers, officers, employees, agents or other
Persons acting on their behalf, with respect to any AML Law is pending or, to Seller’s Knowledge, threatened, nor have any disclosures
been submitted by the Company to any Governmental Authority with respect to potential violations of any AML Law by any such Person.

 

    21

     

    

 

(e)               Since
the Lookback Date, the Company has conducted its import and export transactions in accordance with all applicable U.S. import, export
and re-export Laws and controls and all other applicable import, export and re-export Laws and controls in other countries in which the
Company conducts the Business.

 

Section 2.16            Environmental Matters.

 

(a)               The
Company is, and has been since the Lookback Date, in compliance in all material respects with all applicable Environmental Laws.

 

(b)               The
Company possesses and is in compliance in all material respects with all Permits required by all applicable Environmental Laws. All such
environmental Permits are in full force and effect and shall be maintained in full force and effect through the Closing Date in accordance
with all Environmental Laws. With respect to any such environmental Permits, Seller has undertaken, or will undertake prior to the Closing
Date, all measures necessary to facilitate transferability of the same, and neither Seller nor the Company is aware of any condition,
event or circumstance that might prevent or impede the transferability of the same, nor have they received any written communication
regarding any material adverse change in the status or terms and conditions of the same. The Company has obtained all necessary approvals
from the U.S. Department of Agriculture, the Environmental Protection Agency, and any applicable state Department of Agriculture with
respect to the importation of any fertilizer or pesticide into the United States.

 

(c)              All
Company Products which the Company sells, distributes or otherwise causes to be entered into commerce have been labeled accurately and
as required by all Environmental Laws including, in accordance with the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C.
 §§ 136 et seq, any state labeling Law, and in accordance with applicable industry standards including standards of the Association
of American Plant Food Control Officials (“AAPFCO”). The Company has obtained all required certifications with respect
to any Company Product that is labeled as “organic” including from the Organic Materials Review Institute, AAPFCO, or other
applicable third-party or Governmental Authority, and meets all requirements with respect to any Company Product that is labeled as “organic”
pursuant to National Organic Standards or any other standard. The Company has adequate processes and systems in place and has adequately
educated its personnel in a manner consistent with common industry practice, to comply with all federal, state and local Laws relating
to handling and labeling of organic products, including the National Organic Standards as promulgated by the U.S. Department of Agriculture
(“USDA”). Any product which the Company imports for sale as organic has been approved by the National Organic Program
of USDA’s Agricultural Marketing Service. All organic product certifications are listed on Section 2.16(c) of the Disclosure
Letter, and are in full force and effect.

 

    22

     

    

 

(d)              (i)
Since the Lookback Date, no written notice of violation, order, request for information, indemnity obligation, claim, complaint or penalty
has been received by the Company or Seller, and (ii) there are no Legal Proceedings pending or, to Seller’s Knowledge, threatened
against the Company, in the case of each of (i) and (ii), that alleges a violation of or Liability under any Environmental Law by the
Company that has not been settled, dismissed, paid or otherwise resolved. Since the Lookback Date, there have been no regulatory compliance
inspections at any Leased Real Property by any Governmental Authority that have not been resolved to the satisfaction of the applicable
Governmental Authority.

 

(e)              Neither
the Company nor Seller has received any notice from a Governmental Authority or other Person that the Company is (i) in violation of
any Environmental Laws or (ii) subject to any Liability arising under Environmental Laws or any material investigation, remediation
or corrective obligation relating to the Company or any Leased Real Property.

 

(f)               There
have been no Releases at any Leased Real Property of Hazardous Materials as a result of any operations or activities of the Company or
its contractors or third-party operators that would reasonably be expected to result in a Liability of the Company.

 

(g)               No
Hazardous Materials are present at, on, in or under any Leased Real Property or any real property formerly owned or leased by the Company
in violation of or giving rise to Liability under applicable Environmental Laws.

 

(h)               No
real property currently or formerly owned, operated or leased by the Company is listed on, or has been proposed for listing on, the National
Priorities List (or CERCLIS) under CERCLA, or any similar state list.

 

(i)                Seller
has made available to Buyer copies of all environmental reports, studies and assessments that are in the possession, custody or control
of or readily obtainable by the Company, Seller or any of their Affiliates pertaining to Releases, compliance or non-compliance with
Environmental Laws or the presence of, or exposure to, Hazardous Materials.

 

Section 2.17            Employee
Benefits.

 

(a)               Section 2.17(a)
of the Disclosure Letter contains a correct and complete list of each material Employee Benefit Plan in which any Employee participates.
For each Employee Benefit Plan listed on Section 2.17(a) of the Disclosure Letter, Seller has made available to Buyer: (i)
the current plan document (or, in the case of a material unwritten Employee Benefit Plan, a written description thereof) and all amendments
thereto, (ii) the current summary plan description and summaries of material modifications, (iii) to the extent applicable, a favorable
determination or opinion letter from the IRS. In addition for each Employee Benefit Plan, Seller has made available to Buyer: (i) all
trust agreements, custodial agreements, investment management or investment advisory agreements, insurance contracts or other funding
arrangements thereto, (ii) evidence of satisfaction of nondiscrimination testing, (iii) all applications or filings made by or on behalf
of any Employee Benefit Plan for any amnesty, voluntary compliance or similar program sponsored by any Governmental Authority and (iv)
copies of material notices, letters, or other correspondence from the IRS, the Pension Benefit Guaranty Corporation, and the United States
Department of Labor received since the Lookback Date.

 

    23

     

    

 

(b)               The
Company does not maintain, sponsor, or contribute to and has not maintained, sponsored, or contributed to a “defined benefit plan”
as defined in Section 3(35) of ERISA, a pension plan subject to the funding standards of Section 302 of ERISA or Section 412 of the Code
or a Multiemployer Plan. Neither the Company nor any member of the Controlled Group currently has, or has had an obligation to contribute
to a “defined benefit plan” as defined in Section 3(35) of ERISA, a pension plan subject to the funding standards of Section
302 of ERISA or Section 412 of the Code or a Multiemployer Plan for which, in any case the Company would reasonably be expected to have
any Liability after the Closing. The Transactions are not a transaction described in Section 4069 or 4212(c) of ERISA.

 

(c)               Each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination
or opinion letter from the IRS or has timely applied to the IRS for such a letter within the applicable remedial amendment period or
such period has not expired, and, to Seller’s Knowledge, no event has occurred and no conditions exist that would be expected to
result in the revocation of its qualified status or the revocation any such determination letter or opinion letter.

 

(d)               Each
Employee Benefit Plan has been established, maintained, operated, and administered in material compliance with its terms and any related
documents or agreements and in material compliance with all Laws, including ERISA, the Code, the Consolidated Omnibus Budget and Reconciliation
Act of 1985 and the Health Insurance Portability and Accountability Act of 1996. The Company has made full and timely payment of all
contributions required to be made to any Employee Benefit Plan by the terms of such plan or under Law. All contributions which are required
to be made by the Company to any Employee Benefit Plan for any period ending prior to the Closing Date, but which are not due by the
Closing Date and all benefits accrued under any unfunded Employee Benefit Plan are properly accrued in the Closing Net Working Capital.
There have been no prohibited transactions or breaches of any of the duties imposed on “fiduciaries” (within the meaning
of Section 3(21) of ERISA) by ERISA with respect to the Employee Benefit Plans that could reasonably be expected to result in any material
Liability or excise Tax under ERISA or the Code being imposed on the Company.

 

(e)               There
is no pending or, to Seller’s Knowledge, threatened, assessment, complaint or Legal Proceeding with respect to any Employee Benefit
Plan (other than routine claims for benefits). No Employee Benefit Plan is currently the subject of an audit or examination of a Governmental
Authority.

 

(f)                None
of the Employee Benefit Plans in which Employees or former employees of the Company participate provide retiree health or welfare insurance
benefits to any current or former employee (or their spouses or dependents) of the Company except as may be required by Section 4980B
of the Code and Section 601 of ERISA or any other Law.

 

(g)               Nothing
has occurred with respect to any Employee Benefit Plan that has subjected or could reasonably be expected to subject the Company, or,
with respect to any period on or after the Closing Date, Buyer or any of its Affiliates, to a penalty under Section 502 of ERISA or to
tax or penalty under Section 4975 or 4980H of the Code.

 

    24

     

    

 

(h)              Each
Employee Benefit Plan that is subject to Section 409A of the Code has been administered in compliance with its terms and the operational
and documentary requirements of Section 409A of the Code. The Company does not have any obligation to gross up, indemnify, or otherwise
reimburse any individual for any excise Taxes, interest, or penalties incurred pursuant to Section 409A of the Code.

 

(i)                The
Company is not under any obligation (express or implied) to modify any Employee Benefit Plan, or to establish any new Employee Benefit
Plan. Each Employee Benefit Plan can be amended, terminated, or otherwise discontinued after the Closing in accordance with its terms,
without material Liabilities to Buyer, the Company or any of their Affiliates other than ordinary administrative expenses typically incurred
in a termination event.

 

(j)                Neither
the execution, delivery and performance by Seller of this Agreement nor the consummation of the Transactions will (either alone or upon
the occurrence of any additional or subsequent event), (i) entitle any Employee or service provider of the Company to severance pay,
unemployment compensation, a change of control payment, retention payment, or any other payment or benefit from the Company, (ii) accelerate
the time of payment or vesting, or increase the amount of compensation or benefits (including funding of compensation or benefits through
a trust or otherwise) due to any Employee or service provider of the Company.

 

Section 2.18            Employment
Matters.

 

(a)               Section 2.18(a)
of the Disclosure Letter contains a correct and complete list of all persons who are Employees of the Company and sets forth for
each Employee the following: (i) name; (ii) title or position; (iii) whether full-time or part-time; (iv) hire date; (v) current annual
base compensation or rate of pay; and (vi) commission, bonus or other incentive-based compensation.

 

(b)              The
Company is, and has been since the Lookback Date, in compliance in all material respects with all Laws relating to labor and employment,
including those relating to labor management relations, wages, hours, overtime, discrimination, sexual harassment, civil rights, affirmative
action, work authorization, immigration, safety and health and continuation coverage under group health plans. The Company is, and has
been since the Lookback Date, in compliance in all material respects with all applicable employee visa and work permit requirements.

 

(c)               From
December 31, 2019 through the date of this Agreement, the Company has not, in response to COVID-19 or any Law, directive, pronouncement
or guideline issued by a Governmental Authority, the Centers for Disease Control and Prevention, the World Health Organization or an
industry group providing for business closures, changes to business operations, “sheltering-in-place,” curfews, quarantine,
social distancing, sequester, safety or other similar restrictions that relate to or arise out of COVID-19, (i) furloughed or terminated
the employment or service of any Employee, or (ii) materially reduced the hours of any Employee. No Legal Proceeding is pending against
or, to Seller’s Knowledge, is threatened against the Company or Seller with respect to anything set forth in preceding sentence.
The Company has promptly and thoroughly investigated all formal relevant occupational health and safety complaints related to COVID-19.
With respect to each known occupational health and safety violation identified and related to COVID-19, the Company has taken prompt
corrective action to the extent necessary to prevent further spread of COVID 19 within the workplace.

 

    25

     

    

 

 

(d)              
The Employees are, and have been since the Lookback Date, properly classified under the Fair Labor Standards Act of 1938, and under
any similar Law of any state applicable to such Employees. The Company is not delinquent with respect to, nor has it failed to pay any
of its employees, consultants or contractors for any wages due, including overtime wages, salaries, commissions, bonuses, or other compensation,
of any nature whatsoever, for any services performed by them or amounts required to be reimbursed to such individuals.

 

(e)              
 (i) The Company is not a party to or subject to, or currently negotiating in connection with entering into, any collective bargaining
agreement, and, to Seller’s Knowledge, there has not been any organizational campaign, petition or other unionization activity seeking
recognition of a collective bargaining unit relating to any Employee since the Lookback Date, (ii) there is, and since the Lookback Date,
there has been, no material labor strike, slowdown, stoppage, picketing, interruption of work or lockout pending or, to Seller’s
Knowledge, threatened against the Company, and (iii) there are no unfair labor practice complaints pending or, to the Seller’s Knowledge,
threatened against the Company before any Governmental Authority.

 

(f)               
The employment of each Employee is terminable at will and the Company does not have any obligation to provide any particular form
or period of notice prior to terminating the employment of any Employee. To Seller’s Knowledge, none of the Employees intends to
terminate his or her employment with the Company. The Company is not engaged in any material dispute or litigation with any Employee.

 

(g)              
The Company is not a party to any settlement agreement with a current or former director, officer, manager, employee or independent
contractor that involves allegations relating to sexual harassment by a director, officer, manager, employee or independent contractor
of the Company. To Seller’s Knowledge, since the Lookback Date, no allegations of sexual harassment have been made against a director,
officer, manager, employee or independent contractor of the Company.

 

Section 2.19      
Taxes.

 

(a)              
From December 31, 2014 until the contribution set forth on Exhibit B, the Company has been a validly electing S corporation
(within the meaning of Section 1361(a) of the Code and any similar or analogous provisions of state of local Law). Immediately after such
contribution but prior to the conversion set forth on Exhibit B, the Company was properly classified as a “qualified subchapter
S subsidiary” within the meaning of Section 1361(b)(3) of the Code. At all times since the consummation of such conversion,
the Company has been classified as disregarded as an entity separate from the Seller for federal (within the meaning of Treasury Regulations
Section 301.7701-2(c)(2)) and state and local income Tax purposes (where applicable state or local jurisdictions conforms with the Treasury
Regulations as to classification of entities).

 

(b)              
All Tax Returns required to be filed on or before the Closing Date by the Company have been, or will be, timely filed. Such Tax
Returns are, or will be, correct and complete. All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been
timely paid. The Company currently is not the beneficiary of any extension of time within which to file any Tax Return.

 

    26

     

    

 

(c)              
The Company has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to
any employee, independent contractor, creditor, customer, shareholder or other party, and complied with all information reporting and
backup withholding provisions of Law. The Company has consistently treated any workers that it treats as independent contractors (and
any similarly situated workers) as independent contractors for purposes of the Code and the Treasury Regulations.

 

(d)              
 The Company has not received any claim from any Taxing Authority in any jurisdiction where it does not file Tax Returns that it
is, or may be, subject to Tax by that jurisdiction.

 

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

 

(f)               
The amount of the Company’s Liability for unpaid Taxes (i) did not, as of December 31, 2020, exceed the amount of reserves
for Taxes (excluding reserves for deferred Taxes established to reflect differences between book and Tax income) reflected on the Audited
Financial Statements and (ii) do not exceed the reserves (excluding reserves for deferred Taxes established to reflect differences between
book and Tax income) set forth on the face of such Audited Financial Statements as adjusted for the passage of time through the Closing
Date in accordance with the past custom and practice of the Company in filing Tax Returns (and which reserves shall not exceed comparable
amounts incurred in similar periods in prior years).

 

(g)              
Set forth on Section 2.19(g) of the Disclosure Letter is a list of:

 

(i)                
the taxable years of the Company as to which the applicable statutes of limitations on the assessment and collection of Taxes have
not expired;

 

(ii)             
those years for which examinations by the Taxing Authorities have been completed; and

 

(iii)           
those taxable years for which examinations by Taxing Authorities are presently being conducted.

 

(h)              
All deficiencies asserted, or assessments made, against the Company by any Taxing Authority have been fully paid.

 

(i)                
The Company is not a party to any Legal Proceeding, audit or examination with or by any Taxing Authority. The Company has received
no notice of any pending or threatened Legal Proceedings, audits or examinations by any Taxing Authority against the Company.

 

(j)                
The Company has made available to Buyer correct and complete copies of (i) all of the federal Income Tax Returns of or relating
to the Company for taxable periods ending after December 31, 2016, (ii) any state, local or foreign Tax Returns of or relating to the
Company for taxable periods ending after December 31, 2016, and (iii) any audit report or statement of deficiencies assessed against,
agreed to by, or with respect to the Company for all Tax Periods ending after December 31, 2016.

 

    27

     

    

 

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

 

(l)                
No private letter rulings, technical advice memoranda or similar Contracts or rulings have been requested, entered into or issued
by any Taxing Authority with respect to the Company.

 

(m)            
 The Company has never been a member of an affiliated, combined, consolidated or unitary group or similar group for Tax purposes.
The Company has no Liability for Taxes of any Person under Treasury Regulations Section 1.1502-6 (or any corresponding provision of state,
local or non-U.S. Law), as a transferee or successor, by Contract or otherwise.

 

(n)              
Neither the Company, Buyer nor any of their Affiliates will be required to include any item of income in, or exclude any item or
deduction from, taxable income for taxable periods or any portion thereof ending after the Closing Date with respect to the Company as
a result of:

 

(i)                
any change in a method of accounting under Section 481 of the Code (or any comparable provision of state, local or foreign Tax
Laws), or use of an improper method of accounting, for a taxable period ending on or prior to the Closing Date;

 

(ii)             
an installment sale or open transaction occurring on or prior to the Closing Date;

 

(iii)           
a prepaid amount received on or before the Closing Date;

 

(iv)            
interest held by the Company in a “controlled foreign corporation” (as that term is defined in Section 957 of the Code)
on or before the Closing Date pursuant to Section 951 of the Code;

 

(v)              
any closing agreement under Section 7121 of the Code, or similar provision of state, local or foreign Law;

 

(vi)            
intercompany transactions occurring prior to the Closing Date or any excess loss account in existence prior to the Closing Date
described in Treasury Regulations under Code Section 1502 (or any corresponding or similar provision of state, local or foreign income
Tax Law);

 

(vii)         
the completed contract method of accounting or the long-term contract method of accounting, or any comparable provision of state
or local, domestic or foreign, Tax Law; or

 

    28

     

    

 

(viii)       
any election under Section 108(i) of the Code (or similar provision of any state, local or foreign Law); or

 

(ix)            
any debt instrument held prior to the Closing that was acquired with “original issue discount” as defined in Section
1273(a) of the Code or subject to the rules set forth in Section 1276 of the Code.

 

(o)               Neither
the Company, Buyer nor any of their Affiliates will be required to include any item of income in its taxable income under Section
951(a) or Section 951A of the Code (or any similar provision of state, local or foreign Law) with respect to the Company
attributable to (i) “subpart F income,” within the meaning of Section 952 of the Code (or any similar provision of
state, local or foreign Law) that is related or attributable to the Company, or the income, assets or operations of the Company,
(ii) direct or indirect holding of “United States property” within the meaning of Section 956 of the Code (or any
similar provision of state, local or foreign Law) that is related or attributable to the Company or the income, assets or operations
of the Company, or (iii) “global intangible low-taxed income” as defined in Section 951A of the Code, in each case, with
respect to any Pre-Closing Tax Period.

 

(p)              
The Company is not, and has not been, a party to, or a promoter of, a “reportable transaction” within the meaning of
Section 6707A(c)(1) of the Code and Treasury Regulations Section 1.6011-4(b).

 

(q)              
The Company is not and has not been a party to or bound by any tax indemnity Contract, tax sharing Contract, tax allocation Contract
or similar Contract.

 

(r)               
The Company will not be required to make a payment after the Closing as a result of an election under Section 965 of the Code made
prior to the Closing.

 

(s)               
No property owned by the Company is (i) required to be treated as being owned by another Person pursuant to the so-called “safe
harbor lease” provisions of former Section 168(f)(8) of the Internal Revenue Code of 1954, (ii) subject to Section 168(g)(1)(A)
of the Code, or (iii) subject to a disqualified leaseback or long-term agreement as defined in Section 467 of the Code.

 

(t)                
Set forth on Section 2.19(t) of the Disclosure Letter contains a list of all jurisdictions in which the Company files (or
has filed in the immediately preceding taxable year) income and other material Tax Returns.

 

(u)              
 Seller is not a “foreign person” as that term is used in Treasury Regulation Section 1.1445-2.

 

(v)              
The Company is not a party to any joint venture, partnership or other Contract which could be treated as a partnership for federal
income Tax purposes.

 

(w)            
There are no outstanding (i) powers of attorney affirmatively granted by the Company concerning any Tax matter, or (ii) Contracts
entered into with any Taxing Authority that would have a continuing effect after the Closing Date.

 

    29

     

    

 

(x)              
The Company is in compliance with all terms and conditions of all Tax grants, credits, abatements and other similar incentives
granted or made available by any Taxing Authority for the benefit of the Company and the consummation of the Transactions do not adversely
affect the Company’s ability to benefit from any such Tax grant, credit, abatement or other similar incentive in any taxable period
ending after the Closing Date.

 

(y)              
The Company has timely and properly collected all sales, use, value-added and similar Taxes required to be collected, and has remitted
on a timely basis such amounts to the appropriate Governmental Authority. The Company has timely and properly requested, received and
retained all necessary exemption certificates, including resale certificates, and other documentation supporting any claimed exemption
or waiver of Taxes on sales or similar transactions as to which it would otherwise have been obligated to collect or withhold Taxes.

 

(z)              
 The Company has not deferred the inclusion of any amounts in taxable income pursuant to IRS Revenue Procedure 2004-34, Treasury
Regulations Section 1.451-5, Sections 455 or 456 of the Code or any corresponding or similar provision of Law (irrespective of whether
or not such deferral is elective).

 

(aa)           
The Company does not have a permanent establishment (within the meaning of the applicable Tax treaty) or otherwise have an office
or fixed place of business in a country other than the country in which it is organized. The Company has not entered into a gain recognition
agreement pursuant to Treasury Regulation Section 1.367(a)-8.

 

(bb)          
No Section 197 intangible (within the meaning of Section 197 of the Code) of the Company will be subject to the anti-churning rules
of Section 197(f)(9) of the Code or Treasury Regulations Section 1.197-2(h) as a result of the Transactions.

 

(cc)           
Within the past three (3) years, the Company has not been a “controlled corporation” or a “distributing corporation”
(within the meaning of Section 355(a)(i)(A) of the Code) in any distribution that was purported or intended to qualify for tax-free treatment
under Section 355 of the Code (or any similar provision of state, local or foreign Law).

 

(dd)          
The Company is in compliance with all state unclaimed property Laws and has remitted to the appropriate states all unclaimed property
in accordance with relevant state unclaimed property Laws and the priority rules established with respect thereto.

 

(ee)           
The Company has not (i) elected to defer the payment of any “applicable employment taxes” (as defined in Section 2302(d)(1)
of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”)) pursuant to Section 2302 of the CARES Act
or (ii) claimed any “employee retention credit” pursuant to Section 2301 of the CARES Act.

 

For purposes of this Section
2.19, the Company shall be deemed to include any predecessor of the Company, any Person which merged, converted or was liquidated
with and into the Company or any Person from which the Company incurs a Liability for Taxes as a result of transferee Liability.

 

    30

     

    

 

Section 2.20       Affiliate
Transactions. Except as set forth on Section 2.20 of the Disclosure Letter, no owner, manager, director, officer or
employee of Seller or the Company or any member of such owner’s, manager’s, director’s, officer’s or
employee’s immediate family, Seller or any Affiliate of any of the foregoing or any entity in which any such Person owns more
than a five percent ownership interest (a) is or has since the Lookback Date been (i) a director, officer, manager or employee of,
any Person that is a client, customer, supplier, lessor, lessee, debtor, creditor or competitor of the Company (other than a Person
that has publicly-traded equity securities) (ii) a party to any Contract with or binding upon the Company or any of its assets,
rights or properties, (iii) has any interest (real, personal, or mixed and whether tangible or intangible) in any property used in
or pertaining to the Business, or (iv) has engaged in any transaction or business dealings with the Company, (b) is owed any money
by the Company, other than for services rendered in the Ordinary Course of Business, or (c) owes any money to the Company. There
are no intercompany accounts or Contracts between Seller or any of its Affiliates, on the one hand, and the Company, on the other
hand. As of the Closing, there are no Liabilities of the Company to Seller or any of its Affiliates, other than as set forth in this
Agreement. Effective as of the Closing, all intercompany accounts between Seller and any of its Affiliates, on the one hand, and the
Company, on the other hand, shall be settled and paid in full (regardless of the terms of payment of such intercompany account)
without any Tax Liability of the Company or Buyer.

 

Section 2.21      
Products; Recalls.

 

(a)              
Section 2.21(a) of the Disclosure Letter contains a list of all jurisdictions in which the Company has registered any of
the Company Products. The Company and the Company Products are, and since the Lookback Date have been, in compliance in all material respects
with (i) the applicable Laws administered by the United States Environmental Protection Agency (the “EPA”) and any
applicable Laws administered by any other federal, international, state or local Governmental Authority responsible for regulating the
manufacture, storage, distribution, sale, safety, packaging, labeling or advertising of the Company Products (together with the EPA, collectively,
the “Product Authorities” and all such Laws, collectively, “Product Laws”), and (ii) all terms and
conditions imposed in any Permits granted to the Company by any Product Authority. The Company Products are, and since the Lookback Date
have been, (i) properly manufactured, produced, processed, handled, distributed and stored, are not adulterated and are properly packaged,
labeled and advertised and fit for the use for which they are intended, (ii) of good and merchantable quality and condition, (iii) shipped
in interstate commerce in accordance with the Product Laws, (iv) registered in all jurisdictions required by applicable Law, and (v) in
conformity with all express and implied warranties and guaranties. The Company and, to the Seller’s Knowledge, the suppliers and
subcontractors of the Company are, compliant in all material respects with all Laws and are not in breach of quality control, product
safety, product integrity, facility certification or any similar obligations imposed in Contracts with third parties for the supply of
the Company Products.

 

(b)              
The Company has made available to Buyer the standard terms and conditions of sale for all the Company Products (containing applicable
guaranty, warranty and similar indemnity provisions). None of the Company Products are subject to any guaranty, warranty or other indemnity
beyond such standard terms and conditions of sale. Except as set forth on Section 2.21(b) of the Disclosure Letter, none of the
Company Products are or have been found to be misbranded, packaged, labeled or advertised in a manner contrary to Laws or that is, or
could reasonably be construed to be, false or misleading.

 

    31

     

    

 

(a)               Since
the Lookback Date, the Company has not received and is not subject to, (i) any letter, notice or other written adverse
communications from EPA regarding compliance with Law; (ii) any written adverse communications from any other Product Authority
regarding compliance with any Law relating to the manufacture, storage, distribution, sale, safety, packaging, labeling or
advertising of Company Products; or (iii) any written adverse communication or notice of violation from any consumer or individual
acting in the public interest, or any attorney acting on behalf of any consumer of individual acting in the public interest. There
are no claims or demands pending, or, to Seller’s Knowledge, threatened, against the Company for indemnification from any
distributors or retailers regarding voluntary or mandatory recalls or market withdrawals. Since the Lookback Date, except as set
forth on Section 2.21(b) of the Disclosure Letter, the Company has not received written notice of, or been subject to, any
claim or finding of deficiency or non-compliance, penalty, fine or sanction, request for corrective or remedial action or other
compliance or enforcement action with respect to any Product Authorities, in respect of any of (i) the Company Products, (ii) the
ingredients in the Company Products, or (iii) the facilities at which the Company Products are manufactured, packaged, stored, or
distributed. Since the Lookback Date, the Company has not received written notice of, or been subject to, (i) any notice of claim,
demand letter, notice of violation, or similar communication from or on behalf of an individual, consumer, retailer or distributor,
or (ii) any claim for defense and/or indemnification from or on behalf of any distributor or retailer concerning any claim or
allegation of personal/bodily injury, property damage, or false or misleading labeling or advertising with respect to the Company
Products.

 

(b)              
Since the Lookback Date, except as set forth on Section 2.21(b) of the Disclosure Letter, the Company has not voluntarily
or involuntarily initiated, conducted or issued, or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement,
safety alert, or other notice or action relating to an alleged lack of safety or regulatory compliance of any of the Company Products.
To the Seller’s Knowledge, there is no reason to believe that a basis for a recall or withdrawal of any of the Company Products
may be required under Laws or any policy applicable to the Company and, to the Seller’s Knowledge, no recall has been threatened
by any Governmental Authority and no recall, market withdrawal or replacement, safety alert, or other notice or action relating to an
alleged lack of safety or regulatory compliance of any of the Company Products is being considered by the Company.

 

Section 2.22      
Material Customers and Material Suppliers. Set forth on Section 2.22(a) of the Disclosure Letter is a list of Material
Customers and Material Suppliers. Such information was produced from the books and records of the Company and is correct and complete.
Since January 1, 2020, no Material Customer or Material Supplier has discontinued or materially reduced, or provided written notice of
its intention to discontinue or materially reduce, or to the Seller’s Knowledge, intends to discontinue or material reduce, its
business relationship with the Company or the Business. Since January 1, 2020, no Material Customer or Material Supplier has modified
in a manner adverse to the Company the material terms of its business relationship with the Company or the Business. The Company is not
involved in any material dispute with any customer or supplier of the Company or the Business. Except as set forth on Section 2.22(b)
of the Disclosure Letter, the Company does not sell any Company Products or sell any services directly to (i) any cannabis growers,
or (ii) any distributors or retailers that sell exclusively to Persons that are cannabis growers.  None of the customers set forth
on Section 2.22(b) of the Disclosure Letter is a Material Customer.

 

    32

     

    

 

Section 2.23      
Data Security.

 

(a)               Except
as set forth on Section 2.23(a)(i) of the Disclosure Letter, the data, privacy and security practices of the Company have
since the Lookback Date complied in all material respects with, and conformed in all material respects to, all of the (i) Privacy
Commitments, (ii) all (A) Laws concerning the privacy, security, or Processing of Personal Information (including all applicable
data breach notification Laws, consumer protection Laws, Laws concerning requirements for website Privacy Policies and practices,
social security number protection Laws, data security Laws, and Laws concerning email, text message, or telephone communications),
(B) Federal Trade Commission regulations, guidelines, and staff reports (including Section 5 of the Federal Trade Commission Act),
and any interpretive rules and enforcement actions by a state attorney general, and (C) rules of all applicable self-regulatory
organizations, including, as applicable, the Payment Card Industry Data Security Standard, in each case as applicable to the Company
(collectively, “Privacy Laws”), and (iii) Contracts to which the Company is a party or is otherwise bound.
Privacy Laws include, as applicable to the Company, the California Consumer Privacy Act of 2018; the Health Insurance Portability
and Accountability Act of 1996, as amended and supplemented by the Health Information Technology for Economic and Clinical Health
Act of the American Recovery and Reinvestment Act of 2009; the General Data Protection Regulation (Regulation (EU) 2016/679), and
all member state Laws and regulations relating to privacy or data protection; and all implementing and interpretive rules and
regulations promulgated under any of the foregoing. The Company has: (i) provided adequate notice and obtained any necessary
consents, waivers and approvals from individuals required for the Processing of Personal Information as conducted by or for the
Business and required by applicable Privacy Laws and (ii) abided by any privacy choices (including opt-out preferences) of
individuals relating to Personal Information to the extent required by applicable Privacy Laws (such obligations along with those
contained in the Privacy Policies of the Company, collectively, “Privacy Commitments”).
 “Processing” means any operation performed on Personal Information, including the collection, creation, receipt,
access, use, handling, compilation, analysis, monitoring, maintenance, retention, storage, transmission, transfer, protection,
disclosure, distribution, destruction, or disposal of Personal Information. “Privacy Policies” means,
collectively, the Company’s past or present, internal, employee-facing, or public-facing policies, notices, and statements
concerning the privacy, security, or Processing of Personal Information. Section 2.23(a)(ii) of the Disclosure Letter
contains a listing of each such Privacy Policy, and the period of time during which each such Privacy Policy was or has been in
effect. None of (i) the execution, delivery and performance of this Agreement, or (ii) the use by Buyer of the Company’s
databases or data or other information relating to its customers, end users or data subjects in the same manner in which they are
currently used by the Company will cause, constitute, or result in a breach or violation of any Privacy Laws or Privacy Commitments,
or any Contracts to which the Company is a party (including the terms of service entered into by users of the Company’s
websites), or require the consent of or notice to any individual concerning such individual’s Personal Information. Since the
Lookback Date, no disclosure or representation contained in any Privacy Policy has been inaccurate, misleading, deceptive, or in
violation of any Privacy Laws. There are no unsatisfied access, right-to-know, or similar requests in respect of Personal
Information held by the Company, or any outstanding applications for rectification, transfer, deletion, or erasure of Personal
Information. To the Seller’s Knowledge, any vendor, processor, or other third party Processing Personal Information for or on
behalf of the Company (collectively, “Subprocessors”) are, and since the Lookback Date have been, in compliance
in all material respects with the Privacy Commitments and applicable Privacy Policies. The Company has taken all commercially
reasonable measures to ensure that each Subprocessor has complied in all material respects with its contractual obligations to the
Company concerning the privacy, security, and Processing of Personal Information.

 

    33

     

    

 

(b)               Since
the Lookback Date, no Person has gained unauthorized access to or engaged in unauthorized Processing of, nor has there been any
unauthorized disclosure of, (i) any Personal Information held by the Company or any other Person on the Company’s behalf; (ii)
Personal Information on any databases, computers, servers, storage media (e.g., backup tapes), network devices, or other devices or
systems that Processes Personal Information owned or maintained by the Company or any other Persons on the behalf of the Company
((i) and (ii) collectively, a “Security Breach”). The Company has, since the Lookback Date, used all commercially
reasonable, and at minimum, industry-standard, controls, technologies, processes and practices to detect, identify and remediate
Security Breaches and provide notification in accordance with applicable Privacy Laws in the case of a Security Breach, and the
Company, since the Lookback Date, has required the Subprocessors to do the same. No circumstance has arisen in which applicable
Privacy Laws would require the Company to notify a Governmental Authority or other Person of an Security Breach, and the Company has
not received from any Governmental Authority or other Person any complaint, claim, investigation, notice, subpoena or other evidence
of noncompliance with such Privacy Laws and/or related to any actual, alleged, or suspected Security Breach, and to Seller’s
Knowledge, no facts or circumstances exist that would reasonably be expected to give rise to any of the foregoing.

 

(c)              
The Company has comprehensive disaster recovery and security plans and procedures, including a written information security program,
that contain adequate and effective administrative, technical, and physical safeguards, designed to protect the continuity, confidentiality,
availability, and integrity of the Business, Personal Information, and the computer systems, networks and servers of the Company from
failure, unauthorized use, access or other Processing, and the Company is in compliance in all material respects with such plans and procedures.
The Company has comprehensive security plans that are reasonably designed to (i) identify internal and external risks to the security
of any proprietary and Confidential Information of the Company and any Personal Information held or used by the Company, and (ii) implement,
monitor and improve safeguards to control those risks. There have been no actual, attempted, or, to Seller’s Knowledge, threatened
breaches of the security of the computer systems, networks or servers of the Company or, to Seller’s Knowledge, any of the agents,
representatives or contractors of the Company, or any loss or unauthorized disclosure of Personal Information in the possession, custody,
or control of the Company or any of its employees, agents, representatives, or contractors, which required notice to any third Person
or Governmental Authority and, to Seller’s Knowledge, there is no reason to expect that such a breach or any other unauthorized
use, access, disclosure, or other unauthorized Processing of any Personal Information or any proprietary and Confidential Information
of the Company has occurred. The computer hardware, servers, networks, and other information technology equipment or systems owned or
used by the Company are reasonably sufficient for operation of the Business as currently conducted. Since January 1, 2020 there has been
no material disruption of the hardware, servers, networks, and other information technology equipment or systems owned or used by the
Company.

 

    34

     

    

 

(d)              
The Company has complied in all material respects with all terms of use, terms of service, and other Contracts, guidelines, and
policies relating to its use of social media platforms, sites, or services and there is no reasonable basis to believe that the Company
is in violation of any such terms of use, terms of service, Contracts, guidelines, and/or policies.

 

Section 2.24       Inventory.
All inventory of the Company consists of new and unused items of a quality, quantity and condition that (a) is useable and saleable
in the Ordinary Course of Business, (b) is merchantable and fit for the purpose for which it was procured or manufactured, and none
of which is slow-moving, obsolete, damaged stale, discontinued or defective, and (c) was manufactured or acquired by the Company in
the Ordinary Course of Business. The quantities of each of the categories of inventory of the Company is at a level normal and
adequate for the continuation of the Business in the Ordinary Course of Business. The Company is not in possession of any inventory
not owned by the Company, including goods already sold. None of the inventory of the Company has been consigned to any Person.

 

Section 2.25      
Accounts Receivable. The accounts receivable of the Company represent valid obligations that arose from bona fide transactions
in the Ordinary Course of Business and are collectible in full, net of any reserves reflected in the Closing Net Working Capital. None
of such accounts receivable is subject to any claim of offset or recoupment or counterclaim, and to the Seller’s Knowledge, there
are no specific facts that would be likely to give rise to any such claim. The reserves shown on the Financial Statements and the accounting
records of the Company are adequate and calculated consistent with past practice.

 

Section 2.26      
COVID-19. The Company is not and has never been a party to any Contract under, and has not otherwise participated in, the United
States Small Business Administration’s Paycheck Protection Program created under the CARES Act or any other federal, state or local
Governmental Authority’s stimulus program or economic relief plan in connection with COVID-19.

 

Section 2.27      
Brokers. Except for Greyhawk Advisors, LLC, there is no broker, finder, investment banker, financial advisor or other intermediary
that has been retained by or is authorized to act on behalf of Seller or the Company, who might be entitled to any brokerage, finder’s
or other fee or commission from the Company in connection with the Transactions.

 

Section 2.28      
Disclosure. To Seller’s Knowledge, no representation or warranty or other statement made by the Company, Seller or the
Members in this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make such statement,
in light of the circumstances in which it was made, not misleading

 

Section 2.29      
No Other Representations and Warranties. Except for the representations and warranties contained in this Article II
and Article III (including the related portions of the Disclosure Letter) or in any certificate delivered by the Company or Seller
pursuant to this Agreement, none of Seller, the Company, or the Members has made or makes to Buyer any other express or implied representation
or warranty, either written or oral, on behalf of Seller or the Company.

 

    35

     

    

 

Article III

REPRESENTATIONS AND WARRANTIES OF SELLER & MEMBERS

 

Each of Seller and the Members,
jointly and severally, represents and warrants to Buyer as follows:

 

Section 3.01       Ownership Seller
is the sole owner of record and beneficially of the Units, and has good and marketable title to the Units, free and clear of any
Encumbrance. Immediately prior to the Reorganization, the Members were the record and beneficial owners of, and had good and
marketable title to, the Units, free and clear of all Encumbrances. The instruments of transfer delivered by Seller to Buyer
at the Closing will be sufficient to transfer the entire legal and beneficial ownership of the Units to Buyer and, immediately
following the Closing, Buyer will be the sole owner of record and beneficially of the Units and have good and marketable title to
the Units, free and clear of all Encumbrances.

 

Section 3.02      
Organization; Authority; Enforceability.

 

(a)              
Seller is a limited liability company duly organized, validly existing and in good standing (or its equivalent) under the Laws
of the State of California and has all necessary power and authority to own, operate or lease the properties and assets now owned, operated
or leased by it and to carry on its business as it is currently conducted. Each of Seller and the Members has all necessary power and
authority to enter into this Agreement and all other Transaction Agreements to which such Person is a party, to carry out his, her or
its obligations hereunder and thereunder (including transferring and delivering to Buyer valid title to the Units) and to consummate the
Transactions. The execution, delivery and performance by Seller and each of the Members of this Agreement and the other Transaction Agreements
to which Seller and each such Member is a party, and the consummation of the Transactions, are within the limited liability company or
individual power and capacity of Seller and each such Member, as applicable. The execution, delivery and performance by Seller and each
Member of this Agreement and the other Transaction Agreements to which Seller and each such Member is a party, and the consummation by
Seller and the Members of the Transactions, have been duly and validly authorized by all necessary actions (including any action by the
members and manager of Seller), and no other action on the part of Seller or any of the Members is necessary to authorize the execution,
delivery and performance by Seller and the Members of this Agreement and the other Transaction Agreements to which Seller or any Member
is a party, and the consummation by Seller and the Members of the Transactions.

 

(b)              
This Agreement and the other Transaction Agreements to which Seller or any Member is a party have been duly executed and delivered
by Seller and the Members, and (assuming due authorization, execution and delivery by Buyer) this Agreement the other Transaction Agreements
to which Seller or any Member is a party constitute a legal, valid and binding obligation of Seller or such Member, as applicable, enforceable
against Seller or such Member in accordance with its terms, except as enforceability may be limited by the Enforceability Exception.

 

    36

     

    

 

Section 3.03       No
Conflicts; Consents. The execution, delivery and performance by Seller or the Members of this
Agreement and the other Transaction Agreements to which Seller or any Member is a party, and the consummation of the Transactions,
does not and will not (a) result in a violation or breach of the Organizational Documents of Seller or any Member to the extent it
is an entity, (b) result in a violation or breach of any Law or Order applicable to Seller or any Member, (c) require the consent,
notice, waiver, filing or other action by any Person under, conflict with, result in a violation or breach of, constitute a default
under, give rise to a right of termination of, or result in the acceleration of any right or obligation under, any Contract to which
Seller or any Member is a party or by which its assets are bound, or (d) result in the creation or imposition of any Encumbrance on
any asset of the Company, except for Permitted Encumbrances. No consent, waivers, approval, Permits, Orders, declaration or filing
with, or notice to, any Governmental Authority is required by or with respect to Seller or any Member in connection with the
execution and delivery of this Agreement, the other Transaction Agreements to which Seller or any Member is a party, and the
consummation of the Transactions.

 

Section 3.04      
Brokers. Except for Greyhawk Advisors, LLC, there is no broker, finder, investment banker, financial advisor or other intermediary
that has been retained by or is authorized to act on behalf of Seller or the Members who might be entitled to any brokerage, finder’s
or other fee or commission from the Company in connection with the Transactions.

 

Section 3.05      
Litigation. Neither Seller nor any Member is a claimant or defendant in, or otherwise a party to, any Legal Proceeding or,
to Seller’s Knowledge, are there any threatened Legal Proceeding against Seller or any Member or otherwise affecting Seller or any
Member that would have or would reasonably be expected to have a Material Adverse Effect or prevent or materially impair Seller’s
or any such Member’s ability to consummate the Transactions.

 

Section 3.06      
Investment Purpose; Restricted Stock. Seller is acquiring the Shares solely for its own account, for investment purposes only,
and not with a view to or for sale in connection with any distribution of the Shares or any portion thereof and not with any present intention
of selling, offering to sell or otherwise disposing of or distributing the Shares in a transaction other than a transaction exempt from
registration under the Securities Act of 1933 (the “Securities Act”). Seller is an "accredited investor”
as defined in Rule 501 under the Securities Act. Seller acknowledges and understands that the Shares that the Seller is acquiring pursuant
to this Agreement are unregistered, restricted securities which may not be transferred, sold, assigned, pledged, hypothecated or otherwise
disposed of by Seller unless the Shares are subsequently registered under the Securities Act and applicable state securities laws or unless
an exemption from such registration is otherwise available. Seller acknowledges that any certificates representing the Shares will bear
a restrictive legend in a form reasonably required by Buyer and hereby consents to the transfer agent for the Shares placing a stop-transfer
notation on its records to implement the restrictions on transfer described herein. Seller understands that: (i) the Shares have not been
and are not being registered under the Securities Act or any state securities laws, must be held indefinitely and may not be offered for
sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such assignment or transfer is permitted pursuant
to Rule 144 promulgated under the Securities Act or (C) Seller shall have delivered to Buyer an opinion of counsel, in a generally
acceptable form, to the effect that the Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an
exemption from such registration.

 

    37

     

    

 

Section 3.07       SEC
Filings. Seller and each Member acknowledges that Buyer has furnished Seller and each Member with access via Buyer's website to
a correct and complete copy of each report, schedule, registration statement and definitive proxy statement filed by Buyer with the
SEC since December 9, 2020 (the “SEC Documents”), which are all the documents that the Company was required to
file with the SEC since such date, and Seller and each Member have carefully reviewed the SEC Documents. Seller and each of the
Members acknowledge that it and he has been afforded: (i) the opportunity to ask such questions as it or he has deemed necessary of,
and to receive answers from, representatives of the Buyer concerning the merits and risks of the investment in the Shares; (ii)
access to information about Buyer and its financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate the merits and risks of the investment in the Shares; and (iii) the opportunity to obtain such
additional information that Buyer possesses or can acquire without unreasonable effort or expense that is necessary to make an
informed decision. Seller and each of the Members understand that its investment in the Shares involves a high degree of risk.
Seller and each of the Members have sought such accounting, legal and tax advice as it or he has considered necessary to make an
informed investment decision with respect to its acquisition of the Shares.

 

Section 3.08      
Acknowledgement and Representations by Seller and Members. Seller and the Members acknowledge and agree that they have conducted
their own independent review and analysis of, and, based thereon, has formed an independent judgment concerning, the business, assets,
condition, operations and prospects of Buyer. In entering into this Agreement, Seller and each of the Members have relied solely upon
its or his own investigation and analysis and the representations and warranties set forth in Section 3.07 and those of Buyer set
forth in this Agreement.

 

Article IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants
to Seller as follows:

 

Section 4.01      
Organization of Buyer; Authority of Buyer; Buyer Enforceability.

 

(a)              
Buyer is a corporation duly organized, validly existing and in good standing (or its equivalent) under the Laws of Delaware. Buyer
has all necessary power and authority to enter into this Agreement and the other Transaction Agreements to which Buyer is a party, to
perform its obligations hereunder and thereunder, and to consummate the Transactions. The execution, delivery and performance by Buyer
of this Agreement and the other Transaction Agreements to which Buyer is a party, and the consummation of the Transactions, are within
the corporate power of Buyer. The execution, delivery and performance by Buyer of this Agreement and the other Transaction Agreements
to which Buyer is a party, and the consummation by Buyer of the Transactions have been duly authorized by all necessary actions on the
part of Buyer, and no other action on the part of Buyer is necessary to authorize the execution, delivery and performance by Buyer of
this Agreement and the other Transaction Agreements to which Buyer is a party, and the consummation by Buyer of the Transactions.

 

    38

     

    

 

(b)              
This Agreement and the other Transaction Agreements to which Buyer is a party have been duly executed and delivered by Buyer, and
(assuming due authorization, execution and delivery by Seller, the Company and the Members) this Agreement and the other Transaction Agreements
to which Buyer is a party constitute a legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its
terms, except as enforceability may be limited by the Enforceability Exception.

 

Section 4.02       No
Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement and the other Transaction Agreements to
which Buyer is a party, and the consummation of the Transactions, does not and will not (a) result in a violation or breach of the
Organizational Documents of Buyer, (b) result in a violation or breach of any Law or Order applicable to Buyer, (c) require the
consent, notice, waiver, filing or other action by any Person under, conflict with, result in a violation or breach of, constitute a
default under, give rise to a right of termination of, or result in the acceleration of any right or obligation under, any Contract
to which Buyer is a party or by which its assets are bound, or (d) result in the creation or imposition of any Encumbrance on any
asset of Buyer, except for Permitted Encumbrances; except, in the case of each of clauses (b), (c) and (d),
that would not reasonably be expected, individually or in the aggregate, to materially impair or delay Buyer’s ability to
perform or comply with its obligations under this Agreement or consummate the Transactions. No consent, waivers, approval, Permits,
Orders, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Buyer in connection
with the execution and delivery of this Agreement, the other Transaction Agreements to which Buyer is a party, and the consummation
of the Transactions.

 

Section 4.03      
Investment Purpose. Buyer is acquiring the Units solely for its own account for investment purposes and not with a view to,
or for offer or sale in connection with, any distribution of the Units. Buyer acknowledges that the Units are not registered under the
Securities Act of 1933, as amended, or any state securities laws, and that the Units may not be transferred or sold except pursuant to
the registration provisions of the Securities Act of 1933, as amended, or pursuant to an applicable exemption therefrom, and subject to
applicable state securities laws and regulations. Buyer is able to bear the economic risk of holding the Units for an indefinite period
(including total loss of its investment) and has sufficient knowledge and experience in financial and business matters so as to be capable
of evaluating the merits and risk of its investment.

 

Section 4.04      
Brokers. Except for Rothschild & Co US Inc., there is no broker, finder, investment banker, financial advisor or other
intermediary that has been retained by or is authorized to act on behalf of Buyer who might be entitled to any brokerage finder’s
or other fee or commission from Buyer in connection with the Transactions.

 

Section 4.05      
Sufficiency of Funds. On the Closing Date Buyer will have sufficient funds available to pay the Estimated Closing Purchase
Price. Buyer acknowledges and agrees that Buyer’s performance of its obligations under this Agreement is not in any way contingent
upon the availability of financing to Buyer.

 

    39

     

    

 

Section 4.06      
Valid Issuance. If and when issued and delivered in accordance with this Agreement, the Shares will be duly authorized, validly
issued, fully paid and nonassessable, and free and clear of all Encumbrances except as are imposed by applicable securities Laws.

 

Section 4.07      
Legal Proceedings. There are no actions, suits, claims, investigations or other Legal Proceedings pending or, to Buyer’s
Knowledge, threatened in writing against or by Buyer that challenge or seek to prevent, enjoin or otherwise materially impair or delay
Buyer’s ability to consummate the Transactions.

 

Section 4.08       Acknowledgement
and Representations by Buyer. Buyer acknowledges and agrees that it has conducted its own independent review and analysis of,
and, based thereon, has formed an independent judgment concerning, the Business, assets, condition, operations and prospects of the
Company. In entering into this Agreement, Buyer has relied solely upon its own investigation and analysis and the representations
and warranties of Seller and the Members set forth in this Agreement and the other Transaction Agreements.

 

Section 4.09      
No Other Representations and Warranties. Except for the representations and warranties contained in this Article IV
(including the related portions of the Disclosure Letter) or in any certificate delivered by Buyer pursuant to this Agreement, Buyer has
not made and does not make to the Seller or any of the Members any other express or implied representation or warranty, either written
or oral, on behalf of Buyer.

 

Article V

PRE-CLOSING COVENANTS

 

During the Pre-Closing Period,
Buyer, the Company, Seller and the Members each covenant and agree as follows:

 

Section 5.01      
Information Prior to Closing. Seller shall provide, and cause the Company to provide, Buyer and its Representatives (i) access
to, and permit Buyer and its Representatives to review, the Company’s properties, assets, Contracts, accounts, books and records,
(ii) financial and operating data and any other information relating to the Company as Buyer or its Representatives may reasonably request,
and (iii) such other information as shall have been reasonably requested by Buyer or its Representatives for purposes of consummating
the Transactions. Seller shall instruct the employees, counsel and advisors of the Company to reasonably cooperate with Buyer in its investigation
of the Company. Notwithstanding any provision of this Agreement to the contrary, neither Seller nor the Company shall be required to provide
access to or disclose information to Buyer or its Representatives where such access or disclosure would jeopardize the attorney-client
privilege of the Person in control or possession of such information or violate any applicable Law (including any applicable Law regarding
the privacy of customers); provided, that Seller shall inform Buyer of the general nature of the document or information being withheld
and reasonably cooperate with Buyer to provide such document or information in a manner that would not result in the loss or waiver of
such privilege or violation of such applicable Law, or unless such access or disclosure can be provided pursuant to a joint defense, common
interest or similar agreement,

 

    40

     

    

 

Section 5.02      
Operation of Business.

 

(a)              
During the Pre-Closing Period, Seller shall, and shall cause the Company to, (i) conduct the Business in the Ordinary Course of
Business, and (ii) use its Commercially Reasonable Efforts to preserve and maintain existing relations with employees, customers, contractors,
distributors, vendors and other Persons with whom the Company has business relations.

 

(b)              
During the Pre-Closing Period, except to the extent that Buyer shall otherwise consent in writing, Seller shall not, and shall
not permit the Company to, take (or omit to take) any action that, if taken (or omitted to be taken) prior to Effective Date would have
been required to be set forth on Section 2.08 of the Disclosure Letter.

 

(c)              
 Without limiting the forgoing, nothing contained in this Agreement is intended to give Buyer, directly or indirectly, the right
to control or direct any of the Company’s operations prior to the Closing.

 

Section 5.03      
Confidentiality; Publicity. Upon execution of this Agreement, Buyer will issue a press release regarding this Agreement and
the Transactions, which has been approved by Seller. Except for the press release referenced in the preceding sentence and as otherwise
required by Law or applicable requirements of any stock exchange, prior to the Closing, no press release or public announcement related
to this Agreement or the Transactions or any other announcement or communication (other than communications by the Company, Buyer or any
of their respective officers, managers, employees and agents in the Ordinary Course of Business) to the employees, customers, suppliers
or other business relations of the Company or Buyer shall be issued or made without the joint approval of Buyer and Seller, which approval
shall not be unreasonably withheld or delayed, and the parties shall use reasonable efforts to agree upon the text of any such press release
or public announcement prior to its release. Notwithstanding the foregoing, each Party may make announcements and communications regarding
this Agreement and the Transactions consisting of information contained in and otherwise consistent with any previously issued press release
or public announcement to such Party's employees, customers, suppliers and other interested parties without the consent of the other Parties.
The provisions of this Section 5.03 shall control over any contrary provisions in the Confidentiality Agreement.

 

Section 5.04      
Consents; Further Actions.

 

(a)              
Buyer and Seller shall cooperate with one another in determining whether any action by or in respect of, or filing with, any Governmental
Authority is reasonably required in connection with the consummation of the Transactions.

 

(b)              
Seller and the Company shall use Commercially Reasonable Efforts to obtain the consent or approval (or waiver thereof) of any Person
that is necessary for the execution and delivery of, or the performance of the Company’s and Seller’s obligations pursuant
to, this Agreement, subject to the other provisions of this Section 5.04. Buyer shall reasonably cooperate with Seller and
the Company in attempting to obtain the consents, approvals and waivers contemplated by this Section 5.04(b), including providing
to such Person(s) such financial statements and other financial information as such third parties may reasonably request.

 

    41

     

    

 

(c)              
The Parties hereto shall use Commercially Reasonable Efforts, and shall reasonably cooperate with each other, and shall cause their
Affiliates to use their Commercially Reasonable Efforts and reasonably cooperate, to (i) prepare all documentation necessary to make all
necessary filings with any Governmental Authority and (ii) obtain any consents and approvals (or waivers thereof) of any Governmental
Authority, in each case that are required to permit the consummation of the Transactions. Buyer and the Company shall advise each other
as to material developments with respect to the status of receipt of such consents, approvals and waivers. The Parties hereto will not
take any action that will have the effect of delaying, impairing or impeding the receipt of any required consents, approvals and waivers
and shall promptly respond to any requests for additional information from any Governmental Authority or other third party in respect
thereof in accordance with the provisions of this Section 5.04.

 

Section 5.05     
Exclusivity. During the Pre-Closing Period, Seller, the Company and each Member shall not, and shall not permit any of his,
her or its respective Affiliates or Representatives to, directly or indirectly, (a) (i) initiate or continue any contact with, (ii) make,
solicit, encourage or respond to any inquiries or proposals by, (iii) enter into or participate in any discussions or negotiations with,
(iv) disclose, directly or indirectly, any information concerning the Business or properties of the Company or the Transactions to, or
(v) afford any access to the Company’s properties, books or records to, any Person, in the case of each of clauses (i) through
(v) above, in connection with any possible proposal regarding the direct or indirect sale of any portion of the Equity Securities
or assets of the Company or Seller (other than the sale of inventory in the Ordinary Course of Business), a merger or consolidation involving
the Company or Seller, or any similar transaction, in each case except as contemplated by this Agreement (an “Alternative Transaction”),
or (b) enter into or participate in any discussions or negotiations regarding, or accept any proposal or enter into any agreement for,
an Alternative Transaction. During the Pre-Closing Period, Seller, the Company and each Member shall, and shall cause its Affiliates
and Representatives to, immediately cease all discussions and actions which violate or conflict with this Section 5.05. During
the Pre-Closing Period, Seller, the Company and each Member shall, promptly following receipt, give Buyer notice of any inquiry, communication
or proposal regarding an Alternative Transaction (and the terms thereof) received by Seller, the Company, any Member or any of his, her
or its respective Affiliates or Representatives. Seller and each Member shall be responsible for any breach of this Section 5.05
by his, her or its Affiliates or Representatives. Seller, the Company and each Member represents that neither he, she or it nor any of
his, her or its Affiliates or Representatives is a party to or bound by any Contract with respect to an Alternative Transaction

 

Section 5.06      
R&W Insurance. The Parties hereto acknowledge that, as of the Effective Date, the Buyer has obtained a binder for the R&W
Insurance Policy and that a correct and complete copy of such conditional binder has been provided to Seller. On or before the Closing,
the Buyer shall pay or cause to be paid, all costs and expenses related to the R&W Insurance Policy, including the total premium,
underwriting costs, brokerage commission for the Buyer’s insurance broker, taxes related to such policy and other fees and expenses
of such policy; provided that Seller shall reimburse Buyer for 50% of the aggregate amount of such costs and expenses at the Closing which
shall be treated as a Transaction Expense.

 

    42

     

    

 

Section 5.07      
Notice of Termination of Employment. During the Pre-Closing Period, Seller shall promptly provide Buyer notice in writing if
any officer or key employee of the Company terminates his or her employment with the Company or provides written notice to such Company
that he or she will reduce his or her role or scope of duties with the Company.

 

Section 5.08      
Data Room. Within five Business Days after the Effective Date, Seller shall deliver to Buyer three compact discs or USBs (which
shall be permanent and accessible, without the need for any password, with readily and commercially available software) containing, in
electronic format, all documents (including legal, financial and Tax) posted to the Data Room as of 5:01 p.m., Pacific Time on the second
Business Day prior to the Effective Date.

 

Article VI 

POST-CLOSING COVENANTS

 

Section 6.01      
Further Assurances. Following the Closing, upon the reasonable request of any Party and upon reimbursement of such other Party's
out-of-pocket expenses, any other Party shall execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, all
such further documents and instruments and shall take, or cause to be taken, all such further actions as the requesting Party may reasonably
deem necessary or desirable to evidence and effectuate the Transactions.

 

Section 6.02      
Employees; Benefit Plans.

 

(a)              
For a period of 12 months following the Closing Date, Buyer shall provide each employee of the Company as of immediately prior
to the Closing (each, a “Continuing Employee”) with (i) annual base salary (or, in the case of an hourly Continuing
Employee, the base hourly wage rate) that is at least equal to the annual base salary (or base hourly wage rate, as applicable) payable
to such Continuing Employee immediately prior to the Closing, (ii) to the extent applicable to a Continuing Employee, a bonus or incentive
compensation opportunity (excluding equity incentives), comparable in the aggregate to those (excluding equity incentives) provided to
the Continuing Employee immediately prior to the Closing, and (iii) other employee benefits that are comparable in the aggregate to the
employee benefits provided to the Continuing Employees immediately prior to the Closing, in each case to the extent such information is
made available to Buyer and except as otherwise provided in the Employment Agreements.

 

(b)              
From and after the Closing, to the extent that Seller provides Buyer with the data necessary to do so in a form reasonably acceptable
to Buyer, Buyer shall use its commercially reasonable efforts to cause any employee benefit plans sponsored or maintained by Buyer or
its Affiliates (including any professional employment organization) in which the Continuing Employees are eligible to participate following
the Closing (collectively, the "Buyer Plans") to give each Continuing Employee service credit for such Continuing Employee's
employment with the Company for purposes of vesting, eligibility to participate and waiting periods under each applicable Buyer Plan,
as if such service had been performed with Buyer or its Affiliates (except for benefit accrual purposes or to the extent it would result
in a duplication of benefits).

 

    43

     

    

 

(c)              
Buyer shall use commercially reasonable efforts to (i) cause to be waived for the Continuing Employees (and their dependents) all
pre-existing condition exclusions, actively-at-work requirements and similar limitations, eligibility waiting periods, and evidence of
insurability requirements under the Buyer Plans, and (ii) cause any deductible, co-insurance, co-payments, and out-of-pocket expenses
paid by the Continuing Employees (and their dependents) under the Employee Benefit Plans on or before the Closing Date to be taken into
account under any applicable Buyer Plan during the year in which the Closing occurs.

 

(d)              
Nothing contained in this Agreement shall confer upon any Continuing Employee any right to continued employment with either Buyer,
the Company or any of its Affiliates, nor shall anything in this Agreement interfere with the right of either Buyer, the Company or any
of its Affiliates to relocate or terminate the employment of any of the Continuing Employees at any time after the Closing.

 

(e)              
Seller intends to have the Company pay certain of its employees a bonus for services rendered prior to the Closing as set forth
on Section 6.02 of the Disclosure Letter (“Employee Bonuses”), and (i) Seller will cause the Company to pay all or
a portion of the Employee Bonuses prior to the Closing as it determines in its sole discretion and shall notify Buyer in writing at the
Closing of the amount of Employee Bonuses paid prior to Closing, and (ii) Buyer will cause the Company to pay the remaining unpaid Employee
Bonuses as set forth on Section 6.02 of the Disclosure Letter, and such bonuses paid pursuant to clause (ii), together with all
Taxes that are payable by the Company as a result of the Employee Bonuses unless paid by the Company prior to the Closing, shall constitute
part of the Transaction Expenses deducted from the Estimated Closing Purchase Price and such Transaction Expenses shall be paid by Buyer
to the Company at the Closing.

 

(f)               
The Company, Seller and Buyer acknowledge and agree that all provisions contained in this Section 6.02 are included
for their sole benefit, and that nothing contained herein, express or implied, (i) is intended to confer any third party beneficiary or
other rights (including any right to continued employment for any period, to any particular term or condition of employment or to continued
receipt of any specific employee benefit), or (ii) shall constitute an establishment, amendment to or any other modification of any Buyer
Plan, Employee Benefit Plan or other employee benefit plan, or shall limit the right of Buyer, the Company or any of its Affiliates to
amend, terminate or otherwise modify any Buyer Plan, Employee Benefit Plan or other employee benefit plan following the Closing.

 

Section 6.03      
Directors and Officers. Effective as of the Closing, Seller shall obtain, or cause the Company to obtain, at Seller’s
cost and expense, an irrevocable “tail” insurance policy with respect to the current policies of directors’ and officers’
liability insurance maintained by the Company as of the Effective Date, with a claims period of six (6) years from the Closing Date and
with at least the same coverage and amounts, and containing terms and conditions that are not less advantageous to the directors, managers
and officers of the Company than the current policies, in each case with respect to claims arising out of or relating to events which
occurred on or prior to the Closing Date (including in connection with the Transactions) (the “Tail Policy”).

 

    44

     

    

 

Section 6.04       Books
and Records. For a period of four (4) years after the Closing Date, Buyer will, and will cause the Company to, provide Seller
and its Representatives, upon reasonable advance written notice to Buyer, with reasonable access (including the right to make, at
the Seller’s expense, photocopies thereof), during normal business hours, to the books and records of the Company for the
period prior to the Closing Date to prepare financial statements, Tax Returns or for any other legitimate purpose relating to this
Agreement or the Transactions. Unless otherwise consented to in writing by Seller, Buyer shall not, and shall cause the Company not
to, for a period of four (4) years following the Closing Date, destroy or otherwise dispose of any of the books and records of the
Company for any period prior to the Closing Date without first giving prior written notice to Seller and offering to allow Seller at
least 60 days to review such books and records prior to such destruction or disposal and, at Seller's expense, remove such books and
records as Seller may select. Notwithstanding the foregoing, Buyer shall not be required to (A) provide access or disclose
information to the extent that such access or disclosure would jeopardize the attorney-client privilege, work product doctrine or
similar privilege or violate any Law or Contract to which the Company or Buyer is a party, or (B) provide any information in
connection with any dispute or Legal Proceeding between or among the Parties, in which case the applicable rules of discovery shall
govern.

 

Section 6.05      
Restrictive Covenants.

 

(a)              
Seller recognizes and acknowledges that it has had access to Confidential Information. Seller acknowledges that the Confidential
Information is considered by Buyer to be a unique asset, access to and knowledge of which are essential to preserve the goodwill and going
business value of the Company and the Business. In recognition of this fact, Seller agrees that, from and after the Closing Date, it will,
and will cause its Affiliates to, keep confidential and not disclose to any Person any Confidential Information known to or in the possession
or control of Seller or its Affiliate and that Seller will not, and will cause its Affiliates not to, use, misappropriate, exploit or
publish any Confidential Information without the prior written consent of Buyer, (i) unless such information is generally known to the
public other than as a result of breach of this Agreement by Seller or any of its Affiliates, (ii) except in connection with Seller enforcing
any of its rights against Buyer under this Agreement, or (iii) except to the extent Seller is legally obligated to disclose such information
pursuant to a federal or state court order or pursuant to a subpoena or requirement of any Governmental Authority; provided Seller gives
Buyer, as promptly as practicable, prior written notice of such intended disclosure to enable Buyer to seek a protective order or otherwise
prevent or restrict such disclosure, and cooperates with Buyer in connection therewith.

 

    45

     

    

 

 

(b)              
Beginning on the Closing Date and continuing until the fifth (5th) anniversary of the Closing Date, Seller shall not
(whether directly or indirectly, through an Affiliate or some other Person, or in the name or on behalf of an Affiliate or some other
Person) (i) anywhere in the United States own, manage, operate, control, finance or participate in the ownership, management, operation,
control or the financing of, render financial assistance to, be connected as an officer, director, manager, employee, consultant or otherwise
with, use or permit Seller’s name to be used in connection with, or develop products or services for, any Competing Business; (ii)
solicit, cause, induce or attempt to cause or induce any customer, distributor, supplier, licensee, licensor, consultant or other business
relation (other than any employee) of the Company to cease doing business with the Company, or to modify such Person’s relationship
with the Company, or do any act which would be reasonably be likely to interfere with or result in the impairment of such Person’s
relationship with the Company; or (iii) solicit for employment, cause, induce or attempt to cause or induce to leave the employ of the
Company or any of its Affiliates, any Person who is then, or was within the prior twelve month period, an Employee or hire any such Person
as an employee or consultant. Notwithstanding the foregoing, Section 6.05(b)(i) shall not restrict Seller or any of Seller’s
Affiliates from, with respect to clause (b)(i) above from (i) owning up to five percent (5%) of any class of securities registered
under the Securities Exchange Act of 1934 and traded on a national securities exchange so long as neither Seller nor any of Seller’s
Affiliates participates in the management or control of the company whose securities Seller or its Affiliates owns; (ii) ownership by
Jordan Weiss, Michael Stone and Aaron Berkowitz of limited liability units of GCH Inc., a California corporation, whose only business
is being a beneficial minority owner of Hydrobuilder Holdings LLC or its affiliates; or (iii) Jordan Weiss and Michael Stone each acting
as a consultant to GC OpCo LLC or its subsidiaries or affiliates, a retail seller of hydroponic and plant nutrient products, until December
29, 2021 or such longer period as the parties thereto may agree. Notwithstanding the foregoing, Section 6.05(b)(iii) shall not
restrict Seller or any of Seller’s Affiliates from, with respect to clause (b)(iii) above, (A) soliciting or hiring any
employee whose employment has been terminated by the Company or its Affiliates without cause at least six months prior to the first date
of such solicitation or hiring, or (B) any general solicitation for employment (including through third party recruiters or executive
search firms) not directed at the Company or any of the Employees.

 

(c)              
If any provision of Sections 6.05(a) or (b) is judged to be void or unenforceable, in whole or in part, such adjudication
shall not affect the validity of the remainder of Sections 6.05(a) or (b). In the event that any portion of Sections
6.05(a) or (b) should ever be adjudicated to exceed the maximum time, geographic, service, product or other limitations permitted
by Law, then such provisions shall be deemed reformed to the maximum time, geographic, service, product or other limitations permitted
by Law. Seller agrees that, in the event of a violation of Section 6.05(b), the duration of the restriction violated shall be extended
by the period of time of such violation.

 

(d)              
The covenants contained in this Section 6.05 relate to matters which are of a special, unique and extraordinary character
and a violation of any of the terms of this Section 6.05 would cause irreparable injury to Buyer and the Company, the amount of
which will be impossible to estimate or determine and which cannot be adequately compensated. Accordingly, the remedy at Law for any breach
of this Section 6.05 will be inadequate and Buyer’s substantial investment in the Company and the Business materially impaired.
Accordingly, Seller acknowledges that Seller is voluntarily entering into this Agreement and that the terms and conditions of this Agreement
are fair and reasonable to Seller in all respects. Moreover, Seller agrees and acknowledges that Buyer would not consummate the Transactions
unless Seller agrees to the provisions of this Section 6.05. Seller hereby acknowledges and agrees that Buyer shall be entitled
to an injunction, specific performance and/or other equitable relief to prevent any breach of this Section 6.05 without the necessity
of proving actual damage or posting any bond (in addition to all other rights and remedies to which Buyer may be entitled in respect of
any such breach).

 

    46

     

    

 

Notwithstanding anything to
the contrary in this Agreement, in connection with any merger, sale, reorganization or other transfer of substantially all of the assets
or equity securities of Buyer or the Company after Closing, the restrictions set forth in this Section 6.05 may be transferred
to the surviving entity or the acquirer of such assets or equity securities, without the consent of Seller.

 

Section 6.06      
Tax Matters.

 

(a)              
Tax Returns.

 

(i)                
Seller shall cause the Company to prepare and timely file all Tax Returns required to be filed by the Company that are due on
or before the Closing Date (taking into account any extensions), and timely pay all Taxes that are due and payable on or before the Closing
Date. Any such Tax Return shall be prepared in a manner consistent with past practice (unless otherwise required by Law). Seller shall
provide Buyer a copy of such Tax Returns for its review within a reasonable period of time prior to the date for filing.

 

(ii)                
Seller shall prepare, or cause to be prepared, at its own expense, all Income Tax Returns of the Company that are first due after
the Closing Date for taxable periods ending on or before the Closing Date (“Pre-Closing Tax Returns”). The Seller shall
submit a draft of each Pre-Closing Tax Return to Buyer for Buyer’s review, comment and approval no later than forty-five (45) days
prior to the due date for such Pre-Closing Tax Return (taking into account any applicable extensions); provided, however,
if the Seller shall fail to provide any Pre-Closing Tax Return to Buyer as set forth in this Section 6.06(a)(ii)), Buyer may prepare
and file such Pre-Closing Tax Returns at the expense of the Seller. No later than twenty (20) days following Buyer’s receipt of
a Pre-Closing Tax Return, Buyer shall notify Seller in writing of any dispute with respect to the manner in which such Tax Return is prepared,
or the related Tax is calculated. If written notice of a dispute is duly delivered, Buyer and Seller shall negotiate in good faith and
use reasonable efforts to resolve such dispute. If Buyer and Seller are unable to resolve a dispute with respect a Pre-Closing Tax Return
within ten (10) days after receipt by Seller of such notice, any such dispute shall be resolved by the Independent Accountant and any
determination by the Independent Accountant shall be final, conclusive and binding on the Parties; provided, however, if
the due date of any such Tax Return (taking into account applicable extensions) is prior to the date that such dispute is resolved, Buyer
shall be entitled to file such Tax Return as prepared by Buyer and shall then file an amendment to such Tax Return if the Independent
Accountant determines that such amendment is required. All Pre-Closing Tax Returns shall be prepared in a manner consistent with the past
practice of the Company (except to the extent otherwise required by Law). The Seller shall pay to Buyer an amount equal to all Taxes due
with any Pre-Closing Tax Return no later than ten (10) days before the date on which Buyer or the Company is required to pay such Taxes.

 

    47

     

    

 

(iii)               
Other than Tax Returns for which Seller is responsible for preparing pursuant to Section 6.06(a)(i) and Section 6.06(a)(ii),
Buyer shall prepare and timely file, or cause to be prepared and timely filed, all Tax Returns of or with respect to the Company. Any
such Tax Return required to be filed by Buyer for a Straddle Period (a “Straddle Period Tax Return”) shall be prepared
on a basis consistent with the past practices of the Company (except to the extent otherwise required by Law), and Buyer shall deliver
a draft of such Tax Return that is an Income Tax Return to Seller for its review, comment and approval at least forty-five (45) days
prior to the due date for the filing of such Straddle Period Tax Return (taking into account any applicable extensions), and a statement
setting forth the amount of Tax for which the Seller are responsible pursuant to Section 9.02(b)(iv), together with any additional
relevant information that Seller reasonably requests. No later than twenty (20) days following Seller’s receipt of such Straddle
Period Tax Return, Seller shall notify Buyer in writing of any dispute with respect to the manner in which such Straddle Period Tax Return
is prepared, or the related Tax is calculated. If written notice of a dispute is duly delivered, Buyer and Seller shall negotiate in
good faith and use reasonable efforts to resolve such dispute. If Buyer and Seller are unable to resolve a dispute with respect to such
Straddle Period Tax Return within ten (10) days after receipt by Buyer of such notice, any such dispute shall be resolved by the Independent
Accountant and any determination by the Independent Accountant shall be final, conclusive and binding on the Parties; provided,
however, if the due date of any such Tax Return (taking into account applicable extensions) is prior to the date that such dispute
is resolved, Buyer shall be entitled to file such Tax Return as prepared by Buyer and shall then file an amendment to such Tax Return
if the Independent Accountant determines that such amendment is required. The Seller shall pay to Buyer the portion of the Taxes shown
on such Straddle Period Tax Return that is allocable to the Pre-Closing Tax Period for which the Seller is responsible pursuant to Section
9.02(b)(iv) no later than ten (10) days before the date on which Buyer or the Company is required to pay such Taxes. Nothing hereunder
shall limit the right of the Company to file any Straddle Period Tax Return on a timely basis. To the extent permitted or required by
Law, the taxable year of the Company that includes the Closing Date shall be treated as closing on (and including) the Closing Date.

 

(iv)              
Except to the extent required by Law, neither Buyer nor any of its Affiliates shall amend or revoke any Pre-Closing Tax Return
or Straddle Period Tax Return of the Company, without the prior written consent of Seller, which consent shall not be unreasonably withheld,
conditioned or delayed, if such action could form the basis for an indemnity claim under this Agreement.

 

(v)              
The costs, fees and expenses of the Independent Accountant incurred pursuant to Section 6.06(a) shall be borne equally by
Buyer and Seller. The preparation and filing of any Tax Return of a Company that does not relate to a Pre-Closing Tax Period or Straddle
Period shall be exclusively within the control of Buyer.

 

(b)              
Tax Covenants. Without the prior written consent of Buyer, Seller (and, prior to the Closing, the Company, or any of
its Affiliates and their respective Representatives) shall not to the extent it may affect, or relate to, the Company, make, change or
rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any action or enter into any other transaction
that would have the effect of increasing the Tax Liability or reducing any Tax asset of Buyer or the Company in respect of any Post-Closing
Tax Period. Seller agrees that Buyer shall have no Liability for any Tax resulting from any such action of Seller, the Company, or any
of their Affiliates and agree to, indemnify and hold harmless Buyer (and, after the Closing Date, the Companies) against any such Tax
or reduction of any Tax asset.

 

    48

     

    

 

(c)               Refunds
and Credits. The Seller shall be entitled to any refund or credit of or against any Taxes of the Company for any Pre-Closing Tax
Period, except to the extent such refund or credit was reflected, accrued or reserved for or otherwise taken into account, in the
Final Closing Statement. Buyer shall be entitled to any refunds or credits of or against any Taxes of the Company other than any
refunds or credits to which the Seller is entitled pursuant to the foregoing sentence. Subject to Section 6.06(b), upon the
reasonable written request of the Seller, to the extent permitted by Law, Buyer shall cause the Company, at sole expense of the
Seller, to file a claim for refund of any Taxes, including through the filing of an amended Tax Return, relating to the Company for
any tax period ending on or before the Closing Date. The Parties shall cooperate, and cause their Affiliates to cooperate, with
respect to any such refund request or in any such claim for refund. Buyer and the Seller shall, and shall cause their Affiliates to,
pay to the other Party the portion of any such refund or credit of Taxes to which such other Party is entitled under this Section
6.06(c), (i) in the case of a refund, within ten (10) days after such refund is received or (ii) in the case of a credit, within
ten (10) days after such credit is allowed or applied against other Tax Liability; provided, however, that if any
portion of such refund or credit is subsequently disallowed by any Taxing Authority, then amounts previously paid hereunder in
respect thereof shall be promptly reimbursed by the payee to the payor. Any refund or credit received or realized with respect to
Taxes attributable to the Company for a Straddle Period shall be equitably apportioned between Seller and Buyer in a manner
consistent with the principles set forth in Section 6.06(d).

 

(d)              
Straddle Period. In the case of Taxes that are payable with respect to a Straddle Period, the amount of any Taxes based
on or measured by income, gain, profits, receipts, employment, social security, payroll, sales, use, or other transaction-based Taxes
of the Company for the portion of the Straddle Period ending on the Closing Date shall be determined based on a closing of the books
as of the end of the Closing Date, and the amount of other Taxes of the Company for a Straddle Period that relates to the portion of
the Straddle Period ending on the Closing Date shall be deemed to be the amount of such Tax for the entire taxable period multiplied
by a fraction the numerator of which is the number of days in the Straddle Period up to and including the Closing Date and the denominator
of which is the total number of days in such Straddle Period and the balance of such Taxes shall be attributable to the portion of the
Straddle Period beginning after the Closing Date.

 

(e)              
Transfer Taxes. All excise, sales, use, registration, stamp, recording, documentary, conveyancing, franchise property,
transfer, value added and similar Taxes, levies, charges and fees (collectively, “Transfer Taxes”) arising from the
Transactions shall be paid fifty percent (50%) by Buyer and fifty percent (50%) by the Seller. The Party required by Law to file Tax
Returns with respect to such Transfer Taxes shall do so in the time and manner prescribed by Law. The applicable Party shall provide
the other with evidence reasonably satisfactory to such other Party that such Transfer Taxes have been paid, or if the Transactions are
exempt from Transfer Taxes upon the filing of an appropriate certificate or other evidence of exemption.

 

(f)               
Termination of Existing Tax Sharing Agreements. Notwithstanding anything in this Agreement to the contrary, any and
all Liabilities, obligations or other rights between Seller and the Seller’s Affiliates on the one hand and the Company on the
other hand, under any and all Tax sharing, indemnity or similar agreements (whether written or not) other than this Agreement shall cease
and be terminated as of the Closing Date as to all past, present or future taxable periods. After such date the Company shall have any
further rights or Liabilities under any such agreements.

 

    49

     

    

 

(g)              
Tax Contests.

 

(i)                
If written notice of a Tax audit or claim is received from any Taxing Authority which, if successful, might result in an indemnification
payment pursuant to Article IX (a “Tax Claim”), the indemnified party receiving such notice shall promptly
notify the indemnifying party in writing of such Tax Claim (and provide copies of any documents received from the Taxing Authority in
respect of such claim); provided that the failure to provide such notice shall not relieve the indemnifying party of its indemnification
obligations hereunder except to the extent the indemnifying party is actually prejudiced thereby. Such notice shall specify in reasonable
detail the basis for such Tax Claim and shall include a copy of the relevant portion of any correspondence received from the Taxing Authority.

 

(ii)                
Seller shall have the right to control, at its own cost and expense, any Tax Claim involving the Company for any taxable period
ending on or before the Closing Date; provided, however, that (i) Seller shall have provided Buyer with written notice electing
to control such Tax Claim within ten (10) days after receiving written notice from Buyer or its Affiliates of such Tax Claim, (ii) Buyer
shall have the right to participate in any such Tax Claim, (iii) Seller shall provide Buyer with a timely and reasonably detailed account
of each stage of such Tax Claim, and (iv) neither Seller nor any of its Affiliates shall settle, compromise, appeal any adverse determination
in or abandon any such Tax Claim without obtaining the prior written consent of Buyer, which consent shall not be unreasonably withheld,
conditioned or delayed; provided, further, that Buyer may control and contest any Tax Claim for which Seller would otherwise
have the right to control under this Section 6.06(g) if Seller has not provided timely written notice to Buyer that it elects to
control such Tax Claim pursuant to this Section 6.06(g) or fails to use Commercially Reasonable Efforts to actively control such
Tax Claim; provided, however, that (A) Seller shall have the right to participate in any such Tax Claim at its own cost
and expense, (B) Buyer shall provide Seller with a timely and reasonably detailed account of each stage of such Tax Claim, and (C) Buyer
shall not settle, compromise, appeal any adverse determination in or abandon any such Tax Claim without obtaining the prior written consent
of Seller which consent shall not be unreasonably withheld, conditioned or delayed.

 

(iii)               
Buyer shall control any Tax Claim involving a Company for any Straddle Period; provided, however, that (A) Seller
shall have the right, at its sole cost and expense, to participate in any such Tax Claim, (B) Buyer shall provide Seller with a timely
and reasonably detailed account of each stage of such Tax Claim, and (C) in the event that such Tax Claim would reasonably be expected
to have an adverse effect on Seller or any of its Affiliates, Buyer shall not settle, compromise, appeal any adverse determination in
or abandon any such Tax Claim without obtaining the prior written consent of Seller, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

(iv)              
To the extent of any conflict between this Section 6.06(g) and Article IX, this Section 6.06(g) shall govern
with respect to any Tax Claim.

 

    50

     

    

 

(h)              
Cooperation on Tax Matters. Buyer shall, and shall cause its Affiliates, and the
Seller shall, and shall cause each of its Affiliates, to cooperate fully, as and to the extent reasonably requested by the other Party
or its applicable Affiliate, in connection with the preparation and filing of any Tax Return, and any Legal Proceeding, audit or examination
with respect to Taxes. Such cooperation shall include the retention and (upon the other Party’s request) the provision of records
and information that are reasonably relevant to any such audit, examination or Legal Proceeding and making employees available on a mutually
convenient basis to provide additional information and explanation of any material provided hereunder. Buyer shall, and shall cause its
Affiliates, and the Seller shall, and shall cause each of its Affiliates to (i) retain all books and records with respect to Tax matters
pertinent to the Company for the Pre-Closing Tax Periods until the expiration of any applicable statute of limitations, and to abide
by all record retention agreements entered into with any Taxing Authority for all such periods required by such Taxing Authority and
(ii) use Commercially Reasonable Efforts to provide the other Party with at least 30 days’ prior written notice before destroying
any such books and records, during which period the Party receiving the notice can elect to take possession, at its own expense, of such
books and records.

 

(j)               
Purchase Price Adjustment. Any amounts paid under Section 1.07,
this Section 6.06 or Article IX (including under the
R&W Insurance Policy) shall be treated as an adjustment to the Purchase Price for income Tax purposes, to the extent permitted under
applicable Law.

 

(k)              
Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of this Section 6.06 shall
survive for the full period of all statute of limitations (giving effect to any waiver, mitigation or extension thereof) plus ninety
(90) days.

 

Section 6.07      
R&W Insurance Policy. Buyer shall not, and shall not permit any other Person insured under the R&W Insurance Policy,
to amend, alter or modify the subrogation provision of the R&W Insurance Policy in a manner that is materially adverse to Seller,
without the prior written consent of Seller.

 

Section 6.08      
Release.

 

(a)              
Effective upon the Closing, each of Seller and the Members, on his or its behalf and on behalf of each of its, his and their respective
past, present and/or future Representatives or Affiliates, and any heir, executor, administrator, successor or assign of any of the foregoing
(collectively, the “Seller Releasing Parties”), hereby unconditionally, irrevocably and fully and forever releases
and discharges Buyer and the Company and each of the foregoing’s respective past, present and/or future Representatives or Affiliates,
and its members, heirs, executors, administrators, successors and assigns (collectively, the “Buyer Released Parties”)
of and from any and all Legal Proceedings, causes of action, executions, judgments, duties, debts, dues, accounts, bonds, Contracts and
covenants (whether express or implied), Losses, Liabilities and claims and demands whatsoever, whether known or unknown, matured or unmatured,
existing or claimed to exist, fixed or contingent, suspected or unsuspected, and whether or not concealed or hidden for any reason, both
at law and in equity and whether arising out of a statute, Contract, tort or otherwise that any of the Seller Releasing Parties may have
against each of the Buyer Released Parties, now or in the future, in each case in respect of any cause, matter or thing relating to the
Company or any actions taken or failed to be taken by any of the Buyer Released Parties in any capacity related to the Company or ownership
of Equity Securities of the Company, in each case, occurring or arising on or prior to the Closing Date; provided, however,
that nothing contained in this Section 6.08(a) shall waive, discharge or release the Buyer from its Liabilities under this Agreement
or under any other Transaction Agreement.

 

    51

     

    

 

(b)              
Effective upon the Closing, the Company, on its behalf and on behalf of its successors and assigns (the “Company Releasing
Parties”), hereby unconditionally, irrevocably and fully and forever releases and discharges Seller, and its members, heirs,
executors, administrators, successors and assigns (the “Seller Released Parties”) from any and all Legal Proceedings,
causes of action, executions, judgments, duties, debts, dues, accounts, bonds, Contracts and covenants (whether express or implied),
Losses, Liabilities and claims and demands whatsoever, whether known or unknown, matured or unmatured, existing or claimed to exist,
fixed or contingent, suspected or unsuspected, and whether or not concealed or hidden for any reason, both at law and in equity and whether
arising out of a statute, Contract, tort or otherwise, arising from conduct of any of the Seller Released Parties as an officer, director
or employee of the Company or arising out of Seller’s ownership of Units, in each case occurring or arising on or prior to the
Closing Date; provided that nothing contained in this Section 6.08(b) shall release the Seller Released Parties from their
Liabilities (a) under this Agreement or any other Transaction Agreement, and (b) to any of the Company Releasing Parties arising out
of any criminal acts or acts or omissions by such Person in any capacity that are not indemnifiable in accordance with the Organizational
Documents of the Company.

 

Section 6.09      
Intercompany Matters. Effective as of the Closing, except for those arrangements set forth on Section 6.09 of the Disclosure
Letter, all intercompany accounts between Seller, any Member or any of its or his respective Affiliates, on the one hand, and the
Company on the other hand, shall be settled and paid in full (regardless of the terms of payment of such intercompany accounts), and all
Contracts between Seller, any Member or any of its or his respective Affiliates, on the one hand, and the Company on the other hand, shall
be terminated, in each case without further Liability or obligation of any party thereunder.

 

Section 6.10      
Intellectual Property Rights. Each of Seller and each Member acknowledges and agrees that neither Seller, such Member nor any
of its or his Affiliates shall have any right, title or interest in or to the Company Intellectual Property Rights after the Closing.
As promptly as practicable, but in no event later than thirty (30) days, after the Closing Date, each of Seller and each Member will cease
using the Company Intellectual Property Rights and remove, strike over or otherwise obliterate any Company Intellectual Property Right
references from all assets and other materials in the possession or control of Seller, each Member or any of its or his Affiliates.

 

    52

     

    

 

Section 6.11      
Reorganization Expenses.  Buyer will pay, or will cause the Company to pay, at the Closing, the fees and expenses of the Company’s
accountants, tax advisors and attorneys, incurred in connection with the Reorganization, up to an aggregate amount of $40,000; it being
agreed and understood that such fees and expenses will not be included as a current liability of the Company for calculating any of the
Net Working Capital computations.

 

Article VII

CONDITIONS TO CLOSING

 

Section 7.01      
Conditions to the Obligation to Close of All Parties. The obligations of the Seller and Buyer to consummate the Closing under
this Agreement are subject to the satisfaction, at or prior to the Closing, of all of the following conditions, compliance with which,
or the occurrence of which, may only be waived prior to the Closing in writing by both Buyer and Seller, each in their sole discretion:

 

(a)              
 No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Order which is in effect and which
prohibits or enjoins consummation of the Closing or otherwise restrains or prohibits or renders illegal the consummation of the Transactions.

 

(b)              
No Law shall have been promulgated or enacted that restrains, enjoins, prohibits or otherwise makes illegal the performance of
this Agreement or the consummation of the Transactions.

 

Section 7.02      
Conditions to the Obligation to Close of Buyer. The obligations of Buyer to consummate the Closing under this Agreement are
subject to the satisfaction, at or prior to the Closing, of all of the following conditions, compliance with which, or the occurrence
of which, may be waived in writing prior to the Closing by Buyer in its sole discretion:

 

(a)              
Representations and Warranties. (A) the Seller Fundamental Warranties, disregarding all qualifications contained therein
relating to materiality or Material Adverse Effect, shall be correct and complete in all respects as of the Closing Date, as if made at
and as of such date, except with respect to representations and warranties that speak as to an earlier date, which representations and
warranties shall be true and correct (for the avoidance of doubt, without any omission that would make the representation and warranty
incorrect) in all respects at and as of such date, and (B) the representations and warranties relating to the Company set forth in Article
II and to the Seller and Members set forth in Article III, other than the Seller Fundamental Warranties, shall be correct and
complete as of the Closing Date, as if made at and as of such date, except with respect to representations and warranties that speak as
to an earlier date, which representations and warranties shall be true and correct (for the avoidance of doubt, without any omission that
would make the representation and warranty incorrect) at and as of such date, except, in each case, disregarding all qualifications contained
therein relating to materiality or Material Adverse Effect, for any inaccuracy or omission that has not had or would not reasonably be
expected to, individually or in the aggregate, have a Material Adverse Effect.

 

    53

     

    

 

(b)              
Performance of Agreements. Each of the Company, Seller and the Members shall have performed and satisfied, in all material
respects, all covenants and agreements required to be performed or satisfied by them at or prior to the Closing.

 

(c)              
No Material Adverse Effect. Since the Effective Date, there shall not have occurred any Material Adverse Effect.

 

(d)              
Closing Certificate. Seller shall have delivered to Buyer a certificate, signed by an executive officer of Seller, to the
effect that each of the conditions specified in Section 7.02(a), (b) and (c), has been satisfied.

 

(e)              
Other Closing Deliveries. Seller shall have delivered or caused to be delivered to Buyer the following additional items:

 

(i)                 
Escrow Agreement. The Escrow Agreement, duly executed by Seller;

 

(ii)               
Good Standing Certificates. Good standing certificates (or equivalent document) for the Company issued by the applicable
Governmental Authority of its jurisdiction of incorporation, and by each jurisdiction in which the Company is qualified to do business
as a foreign entity, in each case dated not more than fifteen days prior to the Closing Date;

 

(iii)              
Corporate Record Books. The original corporate record books and membership interest record books of the Company, including
all membership interest certificates issued, if applicable;

 

(iv)              
Payoff Letters. Executed payoff letters for outstanding Indebtedness of the Company (each, a “Payoff Letter”
and collectively, the “Payoff Letters”) as of the Closing Date, with each Payoff Letter indicating that upon payment
of the specified amount, (A) such Indebtedness shall be paid in full and, if applicable, any Encumbrances associated therewith shall terminate
automatically, subject only to the receipt of such payment amount, and (B) the applicable lender will, or the Company shall have all authorizations
and power to, file any necessary Uniform Commercial Code termination statements and the applicable lender will execute all such documents
or endorsements necessary to release of record any such Encumbrances, including those filed with the Patent and Trademark Office;

 

(v)               
Consents. All of the consents and approvals required by the Company or Seller for Closing and listed in Section 7.02(e)(v)
of the Disclosure Letter;

 

(vi)             
Employment Agreements. Employment Agreements, in the form set forth on Exhibit D attached hereto (the “Employment
Agreements”), duly executed by each of Aaron Berkowitz and Bryce Patterson, as applicable;

 

(vii)             
Restrictive Covenant Agreements. A Restrictive Covenant Agreement, in the form set forth on Exhibit E attached hereto
(the “Restrictive Covenant Agreements”) duly executed by each of the Members;

 

(viii)            
Written Resignations. Written resignations of each manager and officer of the Company;

 

    54

     

    

 

(ix)              
FIRPTA Certificate. A non-foreign person affidavit that complies with the requirements of Section 1445 of the Code duly
executed by an officer of Seller and in form and substance reasonably satisfactory to Buyer;

 

(x)                
Seller’s Secretary’s Certificate. A certificate of the Secretary or an Assistant Secretary (or equivalent officer)
of Seller certifying (A) that attached thereto are correct and complete copies of the resolutions adopted by the members and managers
of Seller authorizing the execution, delivery and performance of this Agreement, the other Transaction Agreements to which Seller is a
party and the consummation of the Transactions, and that all such resolutions are in full force and effect, and (B) the names and signatures
of the officers of Seller authorized to sign this Agreement and the Transaction Agreements to which Seller is a party;

 

(xi)             
 Company’s Secretary’s Certificate. A certificate of the Secretary or an Assistant Secretary (or equivalent
officer) of the Company certifying (A) that attached thereto are correct and complete copies of the Organizational Documents of the Company
and that such Organizational Documents are in full force and effect, (B) that attached thereto are correct and complete copies of the
resolutions adopted by the managers of the Company authorizing the execution, delivery and performance of this Agreement, the other Transaction
Agreements to which the Company is a party and the consummation of the Transactions, and that all such resolutions are in full force and
effect, and (C) the names and signatures of the officers of the Company authorized to sign this Agreement and the Transaction Agreements
to which the Company is a party;

 

(xii)              
Estoppel Certificate. An estoppel certificate, duly executed by the Company and the landlord set forth on Section 7.02(e)(xii)
of the Disclosure Letter, in form and substance reasonably acceptable to Buyer;

 

(xiii)             
Greyhawk Engagement Letter. An assignment agreement pursuant to which the Company assigns to Seller, and the Company is
discharged from any further obligations under, the engagement letter between the Company and Greyhawk Advisors, LLC dated January 20,
2021, in form and substance reasonably acceptable to Buyer, duly executed by Seller and the Company and consented to by Greyhawk;

 

(xiv)            
Amendment to Berkowitz Non-Compete Agreement. An amendment to the Non-Compete Agreement dated as of December 29, 2020 between
GC Opco, LLC and Aaron Berkowitz amending Schedule A to such agreement to add Buyer and its Affiliates for whom Berkowitz shall be permitted
to be employed, in form and substance reasonably acceptable to Buyer, duly executed by Aaron Berkowitz and GC Opco, LLC, together with
an unredacted copy of such Non-Compete Agreement;

 

(xv)             
Evidence of Product Formulas. Evidence, reasonably satisfactory to Buyer, that the Company has in its possession written
embodiments of the formulas necessary to manufacture each of the Company Products, such formulas are in writing and stored in a secure
location with limited access to Company employees, and backup copies of such formulas are stored in a secure location;

 

    55

     

    

 

(xvi)             
Tail Insurance. Satisfactory evidence that Seller has obtained or caused the Company to obtain, and paid in full the premiums
for, the Tail Policy as of the Closing Date; and

 

(xvii)            
Instagram Account.   Either a copy of an executed license agreement between the Company and the Continuing Employee
who owns the @heavygrower Instagram account to permit such Continuing Employee to use, and the terms of use by such Continuing Employee
of, the Company’s trademarks and other Company Intellectual Property Rights or a copy of an executed assignment by such Continuing
Employee assigning to the Company all right, title and interest in and to such Instagram account, in each case in form and substance reasonably
acceptable to Buyer, duly executed by such Continuing Employee and the Company.

 

Section 7.03      
Conditions to the Obligation to Close of Seller. The obligations of
Seller to consummate the Closing under this Agreement are subject to the satisfaction, at or prior to the Closing, of all of the following
conditions, compliance with which, or the occurrence of which, may be waived in writing prior to the Closing by Seller, in its sole discretion:

 

(a)              
Representations and Warranties. (A) the Buyer Fundamental Warranties, disregarding all qualifications contained therein
relating to materiality or Material Adverse Effect, shall be correct and complete in all respects as of the Closing Date, as if made at
and as of such date, except with respect to representations and warranties that speak as to an earlier date, which representations and
warranties shall be true and correct (for the avoidance of doubt, without any omission that would make the representation and warranty
incorrect) in all respects at and as of such date, and (B) the representations and warranties of Buyer set forth in Article IV,
other than the Buyer Fundamental Warranties, shall be correct and complete as of the Closing Date, as if made at and as of such date,
except with respect to representations and warranties that speak as to an earlier date, which representations and warranties shall be
true and correct (for the avoidance of doubt, without any omission that would make the representation and warranty incorrect) at and as
of such date, except, in each case, disregarding all qualifications contained therein relating to materiality, for any inaccuracy or omission
that has not or would not reasonably be expected, individually or in the aggregate, to materially impair Buyer’s ability to perform
or comply with its obligations under this Agreement or consummate the Transactions.

 

(b)              
Performance of Agreements. Buyer shall have performed and satisfied, in all material respects, all covenants and agreements
required to be performed or satisfied by Buyer at or prior to the Closing.

 

(c)              
Closing Certificate. Buyer shall have delivered to Seller a certificate, signed by an executive officer of Buyer, to the
effect that each of the conditions specified in Section 7.03(a) and (b) has been satisfied.

 

    56

     

    

 

(d)              
Other Closing Deliveries. Buyer shall have delivered to Seller the following additional items:

 

(i)                 
Escrow Agreement. The Escrow Agreement, duly executed by Buyer and the Escrow Agent;

 

(ii)               
Share Certificates. Appropriate share certificates for the Shares issued, or other appropriate evidence of the issuance
of the Shares, as part of the contribution pursuant to Section 1.02(a) and any other agreements reasonably required to be executed
by the Seller in order to receive such Shares.

 

(iii)               
Employment Agreements. The Employment Agreements, each duly executed by the Company;

 

(iv)               
Restrictive Covenant Agreements. The Restrictive Covenant Agreements, each duly executed by the Buyer; and

 

(v)            
 Good Standing Certificates. A good standing certificate (or equivalent document) for Buyer issued by the applicable Governmental
Authority of its jurisdiction of incorporation, dated not more than fifteen days prior to the Closing Date.

 

Article VIII

TERMINATION

 

Section 8.01      
Termination of Agreement. This Agreement may be terminated at any time prior to the Closing:

 

(a)              
by the mutual written consent of Buyer and Seller;

 

(b)              
by either Seller or Buyer by written notice to the other if:

 

(i)                
any Governmental Authority shall have issued a non-appealable final Order that permanently restrains, enjoins or otherwise prohibits
the consummation of the Transactions and such Order is in effect; or

 

(ii)                
the Closing shall not have occurred on or before June 2, 2021 (the “Termination Date”); provided, however,
that the right to terminate this Agreement under this Section 8.01(b)(ii) shall not be available to any such Party whose failure
to comply with any term of this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before the
Termination Date;

 

(c)              
by Seller, if the Company, each Member and Seller are not then in material breach of any term of this Agreement, upon written notice
to Buyer if there occurs a material breach of any representation, warranty or covenant of Buyer contained in this Agreement, such breach
has not been cured within 15 days after the giving of notice thereof by Seller to Buyer, and such breach would cause any of the closing
conditions set forth in Section 7.01 or Section 7.03 to not be satisfied prior to the Termination Date; or

 

    57

     

    

 

(d)              
by Buyer, if Buyer is not then in material breach of any term of this Agreement, upon written notice to Seller if there occurs
a material breach of any representation, warranty or covenant of the Company, any Member or Seller contained in this Agreement, such breach
has not been cured within 15 days after the giving of notice thereof by Seller to Buyer, and such breach would cause any of the closing
conditions set forth in Section 7.01 or Section 7.02 to not be satisfied prior to the Termination Date.

 

Section 8.02      
Effect of Termination. In the event of the valid termination of this Agreement pursuant to Section 8.01, this
Agreement shall forthwith become null and void and have no effect, without any Liability of any Party (or any Affiliate or Representative
of such Party) to the other Party or Parties, as applicable; provided, that (a) the agreements contained in this Article VIII
and Article X shall survive the termination of this Agreement, and (b) no such termination shall relieve any Party hereto
of any Liability for any Fraud or breach of this Agreement or any claim by a Party that another Party willfully and intentionally breached
the terms of this Agreement prior to or in connection with such termination, nor shall such termination limit the right of any non-breaching
Party to seek all other remedies available to it at law or equity; provided, further, that a failure of (a) Buyer to consummate
the Closing at a time when all of the conditions to Closing set forth in Section 7.01 and Section 7.02 have been
satisfied or waived shall be deemed to be an intentional and willful breach by Buyer of the terms of this Agreement, and (b) Seller,
any Member or the Company to consummate the Closing at a time when all of the conditions to Closing set forth in Section 7.01
and Section 7.03 have been satisfied or waived shall be deemed to be an intentional and willful breach by Seller, the
Members and the Company of the terms of this Agreement.

 

Article IX

INDEMNIFICATION

 

Section 9.01      
Survival.

 

(a)              
The representations and warranties of the Parties contained in this Agreement shall survive the Closing for a period of one year
following the Closing Date; except that (a) the Fundamental Warranties shall survive the Closing Date until the six year anniversary of
the Closing Date plus ninety (90) days or, in the case of Section 2.19, until the expiration of the applicable statute of limitations
plus sixty (60) days, and (b) any representation or warranty contained in this Agreement made by any Party or any information made available
by any Party that was made by such Party Fraudulently shall indefinitely survive the Closing. Notwithstanding the foregoing, the survival
periods specified above do not affect coverage under the R&W Insurance Policy with respect to which the time periods specified in
the R&W Insurance Policy shall apply to claims brought under the R&W Insurance Policy. The covenants of the Parties in this Agreement
that are to be performed prior to Closing shall terminate upon Closing. The covenants of the Parties in this Agreement which are to be
performed after the Closing shall survive forever unless such covenant or agreement specifies a term, in which event such covenant or
agreement shall survive for such specified term plus ninety (90) days.

 

(b)              
No Indemnified Party shall be entitled to make any claim in respect of any representation, warranty, covenant or agreement after
the expiration of its applicable survival date set forth herein, except that any claims asserted in good faith with reasonable specificity
(to the extent known at such time) and in writing by notice from the Indemnified Party to the Indemnifying Party prior to the expiration
date of the applicable survival period shall not be barred by the expiration of such survival period and such claims shall survive until
finally resolved.

 

    58

     

    

 

Section 9.02      
Indemnification by Seller and Members. Subject to the other terms and conditions of this Article IX, effective
at and after the Closing,

 

(a)              
Seller hereby indemnifies Buyer, its Affiliates and their respective owners, officers, directors, managers, employees, agents,
advisors and other Representatives, successors and assigns (collectively, the “Buyer Indemnified Parties”) against,
and holds the Buyer Indemnified Parties harmless from and against, any and all Losses arising out of, resulting from or relating to any
misrepresentation, inaccuracy in or breach of any of the representations or warranties of the Company, Seller or the Members contained
in this Agreement or in the certificate delivered by Seller at Closing pursuant to Section 7.02 of this Agreement, in each case
except for the Seller Fundamental Warranties;

 

(b)              
 Seller and each of the Members hereby, jointly and severally, indemnifies the Buyer Indemnified Parties against, and holds the
Buyer Indemnified Parties harmless from and against, any and all Losses arising out of, resulting from or relating to:

 

(i)                 
any misrepresentation, inaccuracy in or breach of any of the Seller Fundamental Warranties in this Agreement or in the certificate
delivered by Seller at Closing pursuant to Section 7.02 of this Agreement;

 

(ii)                
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Company (prior to Closing), Seller
or the Members pursuant to this Agreement;

 

(iii)              
any Indebtedness arising prior to the Closing that was not paid at or before the Closing or any Transaction Expenses of the Company
other than as set forth in Section 6.11;

 

(iv)             
except to the extent included in the Closing Net Working Capital (i) all Taxes of Seller, (ii) all Taxes associated with the Transactions
(other than Transfer Taxes for which Buyer is responsible under Section 6.6(e)), (iii) all Taxes of the Company attributable to
any Pre-Closing Tax Period (including the portion of a Straddle Period ending on the Closing Date), (iv) all Taxes of any member of an
affiliated, combined or unitary group of which the Company is or was a member on or prior to the Closing Date, including pursuant to Section 1.1502-6
of the Treasury Regulations (or any analogous or similar state, local or foreign Law) attributable to a Pre-Closing Tax Period, and (v)
any and all Taxes of any Person (other than the Company) imposed on the Company arising under principles of transferee or successor Liability,
by Contract or pursuant to any Law, which Taxes relate to an event or transaction occurring on or before the Closing Date; (vi) all Taxes
imposed on the Company in connection with the Reorganization (which for the avoidance of doubt does not include (X) any such Taxes that
result from a change in Tax Law after the Effective Date or (Y) any failure by Buyer to get a step
up in basis of the assets of the Company deemed purchased by Buyer pursuant to this Agreement); and (vii) Transfer Taxes for which the
Seller is responsible under Section 6.06(e); or

 

(v)               
any of the matters set forth on Section 9.02(b)(v) of the Disclosure Letter.

 

    59

     

    

 

Section 9.03      
Indemnification by Buyer. Subject to the other terms and conditions of this Article IX, effective at and after
the Closing, Buyer hereby indemnifies Seller, its Affiliates and their respective owners, officers, directors, managers, employees, agents,
advisors and other Representatives, successors and assigns (collectively, the “Seller Indemnified Parties”) against,
and holds the Seller Indemnified Parties harmless from and against, any and all Losses arising out of, resulting from or relating to:

 

(a)              
any misrepresentation, inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement
or in the certificate delivered by Buyer at Closing pursuant to Section 7.03 of this Agreement; or

 

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

 

Section 9.04      
Certain Limitations. The Party (including its Affiliates) making a claim under this Article IX is referred to as
the “Indemnified Party,” and the Party against whom such claim is asserted under this Article IX is referred
to as the “Indemnifying Party.”

 

(a)              
Seller shall not be liable to any Buyer Indemnified Party for indemnification under Section 9.02(a) until the aggregate
amount of all Losses in respect of indemnification under Section 9.02(a) and Section 9.02(b)(i) exceeds an amount equal
to $375,000 (the “Deductible”), in which event the Seller shall only be required to pay or be liable for Losses in
excess of the Deductible; provided, however, that in no event shall Seller’s aggregate Liability under Section 9.02(a)
exceed $7,500,000 (the “Cap”). Notwithstanding the foregoing, neither the Deductible nor the Cap shall apply to any
indemnification claim made by any Buyer Indemnified Party: (i) under Section 9.02(b)(i), or (ii) arising out of, resulting from
or relating to any Fraud by Seller or any Member.

 

(b)              
Seller shall not be liable to any Buyer Indemnified Party for indemnification under Section 9.02(b)(i) in an aggregate amount
in excess of the Purchase Price received by Seller and the Members shall not be liable to any Buyer Indemnified Party for indemnification
under Section 9.02(b)(i) in an aggregate amount, with respect to each Member, in excess of the portion of the Purchase Price received
by such Member; provided, however, that this Section 9.04(b) shall not apply to any indemnification claim made by
any Buyer Indemnified Party arising out of, resulting from or relating to any Fraud by Seller or any Member.

 

(c)              
Buyer shall not be liable to any Seller Indemnified Party for indemnification under Section 9.03(a) until the aggregate
amount of all Losses in respect of indemnification under Section 9.03(a) exceeds an amount equal to the Deductible, in which event
Buyer shall only be required to pay or be liable for Losses in excess of the Deductible; provided, however, that in no event
shall Buyer’s aggregate Liability under Section 9.03(a) exceed $7,500,000 (the “Buyer Cap”). Notwithstanding
the foregoing, neither the Deductible nor the Buyer Cap shall apply to any indemnification claim made by any Seller Indemnified Party
arising out of, resulting from or relating to: (i) any misrepresentation, inaccuracy in or breach of any Buyer Fundamental Warranty, or
(ii) any Fraud by Buyer.

 

    60

     

    

 

(d)              
Buyer shall not be liable to any Seller Indemnified Party for indemnification under Section 9.03(a) for a misrepresentation,
inaccuracy in or breach of any Buyer Fundamental Warranty in an aggregate amount greater than the Purchase Price; provided, however,
that this Section 9.04(d) shall not apply to any indemnification claim made by any Seller Indemnified Party arising out of, resulting
from or relating to any Fraud by Buyer.

 

(e)              
In no event shall any Indemnified Party be entitled to seek or receive indemnification for the same Losses more than once under
this Article IX even if a claim for indemnification in respect of such Losses has been made as a result of a breach of more
than one (1) representation, warranty, covenant or agreement contained in this Agreement.

 

(f)               
 Each Indemnified Party shall take, and cause its Affiliates to take, Commercially Reasonable Efforts to mitigate any Loss that
are indemnifiable pursuant to this Agreement to the extent required by Law.

 

(g)              
The Indemnifying Party shall not be liable under Section 9.02 for any Losses to the extent included in the calculation of
any adjustment to the Purchase Price pursuant to Section 1.07. No Losses may be claimed by Buyer to the extent (i) such Loss is
included in the Closing Net Working Capital, (ii) except with respect to Sections 2.19(a), (l), (n), (o), (q), (r), (s), (v), (w),
(x), (z), (aa), (bb) and (ee), any such Loss consisting of or relating to Taxes with respect to the Company attributable to the Post-Closing
Taxable Period, or (ii)  such Loss is due to Buyer breaching any covenant relating to Taxes in this Agreement.

 

(h)              
Nothing in this Article IX shall be deemed to limit any rights of Buyer and its Affiliates as against the R&W Carrier
under the R&W Insurance Policy. Notwithstanding any provision in this Agreement to the contrary, the Buyer Indemnified Parties shall
be entitled to make a claim for indemnification under, and subject to the limitations in, this Article IX concurrently with seeking
recovery from any insurance (including the R&W Insurance Policy).

 

(i)                
Other than with respect to the Indemnity Escrow Amount or Fraud, the Buyer’s right to indemnification pursuant to Section 9.02(a)
(other than with respect to any misrepresentation, inaccuracy in or breach of any of the Seller Fundamental Warranties) will be satisfied
solely from the R&W Insurance Policy up to an amount equal to the policy limit under the R&W Insurance Policy, and other than
with respect to the Indemnity Escrow Amount or Fraud, Seller shall have no liability for such indemnification pursuant to Section 9.02(a),
regardless of whether Buyer actually recovers under the R&W Insurance Policy.

 

(j)                
Other than with respect to Fraud, the Buyer’s right to indemnification pursuant to Section 9.02(b)(i) arising
out of, resulting from or relating to any misrepresentation, inaccuracy in or breach of any of the Seller Fundamental Warranties will
be satisfied: (i) first, by the Seller and the Members up to the amount of the self-insured retention under the R&W Insurance Policy,
including from the Indemnity Escrow Amount; (ii) second, to the extent the R&W Insurance Policy provides coverage, from the R&W
Insurance Policy up to an amount equal to the policy limit under the R&W Insurance Policy; and (iii) third, from the Seller and each
of the Members, jointly and severally, to the extent that the R&W Insurance Policy does not fully cover the Losses (either because
no coverage is available under such policy or there is insufficient insurance available under such policy), in an amount not to exceed
the amount set forth in Section 9.04(b).

 

    61

     

    

 

(k)              
The amount to which any Indemnified Party is entitled hereunder shall be reduced by the amount of insurance proceeds (other than
under the R&W Insurance Policy) actually received by the Indemnified Party in respect of such claim for indemnification, less any
costs and expenses (including deductibles and co-insurance) incurred by the Indemnified Party in order to collect such insurance proceeds
and less increases in premiums attributable to such amounts. If the Indemnified Party or any of its Affiliates receives any such insurance
proceeds subsequent to an indemnification payment by the Indemnifying Party, then such Indemnified Party shall promptly reimburse the
Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing such indemnification
payment up to the amount of the relevant insurance proceeds, less any out-of-pocket collection or out-of-pocket recovery costs and expenses
(including deductibles and co-insurance) incurred by such Person in order to collect insurance proceeds and less increases in premiums
attributable to such Losses.

 

(l)                
Notwithstanding anything in this Agreement to the contrary, from and after the Closing, no Person defined as a Seller Indemnified
Party shall seek or be entitled to advancement, indemnification, contribution or other recovery of any kind from the Company (including
by reason of the fact that he, she or it was an officer, director, manager, member, employee, or agent of the Company or was serving at
the request of the Company as a partner, trustee, director, officer, employee, or agent of another entity) for any actions or omissions
of such Person prior to Closing with respect to any matter for which such Person is required to indemnify any Buyer Indemnified Party
under this Article IX.

 

(m)              
Notwithstanding anything in this Agreement to the contrary, the right to indemnification, payment of Losses or other remedy based
upon any representation, warranty, covenant or obligation contained in this Agreement shall not be affected by any investigation conducted
with respect to, or any knowledge acquired (or capable of being required) at any time, whether before or after the execution and delivery
of this Agreement, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or obligation
or the waiver of any condition based on the accuracy of any representation or warranty, or on the performance of or compliance with any
covenant or obligation, and will not affect the right to indemnification based on such representations, warranties, covenants and obligations.

 

Section 9.05      
Indemnification Procedures.

 

(a)              
Third Party Claims. If any Indemnified Party receives notice of the assertion or commencement of any Legal Proceeding made
or brought by any Person who is not a Party or an Affiliate of a Party (a “Third Party Claim”) against such Indemnified
Party with respect to which indemnity may be sought from the Indemnifying Party under this Agreement, the Indemnified Party shall give
the Indemnifying Party prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve the
Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses
by reason of such failure. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail (taking into
account the information then available to the Indemnified Party), shall include copies of all material written information from such
third party and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the
Indemnified Party. In connection with the defense of any Third Party Claim, the Indemnifying Party has the right, exercisable by written
notice to the Indemnified Party within 15 days after its receipt of a claim notice from the Indemnified Party relating to a Third Party
Claim, subject to the limitations set forth in this Section 9.05, to assume the defense of such Third-Party Claim and appoint
lead counsel for such defense (so long as such lead counsel is reasonably acceptable to the Indemnified Party), in each case at the Indemnifying
Party’s expense. Notwithstanding the foregoing, the Indemnifying Party shall have the right to assume the defense only if (i) the
Third Party Claim seeks (and continues to seek) solely monetary damages, (ii) the reasonably expected amount of Losses with respect to
such Third Party Claim would not exceed the maximum indemnification obligation of the Indemnifying Party with respect to such Third Party
Claim (after giving effect to expected coverage under the R&W Insurance Policy), (iii) the Indemnifying Party agrees in writing to
be fully responsible for all Losses (subject to the limits in this Article IX) relating to such Third Party Claim, (iv) the
Third Party Claim does not relate to or arise in connection with any criminal or quasi criminal proceeding, allegation or investigation,
(v) such Third Party Claim does not relate to or involve a claim asserted directly by or on behalf of a Person that is a customer, supplier
or employee of the Company, and (vi) the Indemnified Party is not seeking recovery under the R&W Insurance Policy with respect to
such Third-Party Claim (the conditions set forth in clauses (i) through (vi) are, collectively, the “Litigation
Conditions”).

 

    62

     

    

 

(b)              
Defense of Third Party Claims. 

 

(i)                 
In the event that the Indemnifying Party assumes the defense of any Third-Party Claim in accordance with the provisions of this
Section 9.05:

 

(i)                
the Indemnified Party shall have the right, at its own cost and expense, to participate in the defense of any Third-Party Claim
subject to the Indemnifying Party’s right to control the defense thereof; provided, however, if the named parties
to the Legal Proceeding include both the Indemnifying Party and the Indemnified Party and there is a conflict of interest that would make
it inappropriate under applicable standards of professional conduct to have one counsel for the Indemnifying Party and the Indemnified
Party, the expense of separate counsel for such Indemnified Party shall be paid by the Indemnifying Party;

 

(ii)             
the Indemnifying Party shall obtain the prior written consent of the Indemnified Party (which shall not be unreasonably withheld,
conditioned or delayed) before entering into any settlement of such Third Party Claim, if (A) the settlement does not unconditionally
release the Indemnified Party and its Affiliates from all Liabilities with respect to such Third Party Claim, (B) the settlement imposes
injunctive or other equitable relief against, or requires any payment by, the Indemnified Party or any of its Affiliates, (C) the settlement
contains any statement as to, or an admission of fault, culpability or a failure to act by or on behalf of the Indemnified Party, or (D)
the settlement may reasonably be expected to have a material adverse effect on the business of the Indemnified Party; and

 

    63

     

    

 

(iii)           
if (A) any of the Litigation Conditions ceases to be met or (B) the Indemnifying Party fails to diligently defend such Third Party
Claim, the Indemnified Party may assume the defense of such Third Party Claim, and the Indemnifying Party will be liable for all costs
and expenses paid or incurred in connection with such defense, subject to the limits in this Article IX.

 

(ii)               
If the Indemnifying Party does not assume the defense of a Third Party Claim in accordance with this Section 9.05, the Indemnified
Party may defend, and shall have the right to settle, such Third Party Claim, and only if the Indemnifying Party is required to make any
payment, with the prior written consent of the Indemnifying Party (which shall not be unreasonably withheld, conditioned or delayed).

 

(iii)               
 Each Party shall cooperate, and cause its Affiliates to cooperate, in the defense or prosecution of any Third Party Claim and
shall furnish or cause to be furnished such records, information and testimony, and attend such conferences, discovery proceedings, hearings,
trials or appeals, as may be reasonably requested in connection therewith.

 

(c)              
Direct Claims. In the event an Indemnified Party intends to make a claim for indemnity under this Article IX
against an Indemnifying Party that does not involve a Third Party Claim (a “Direct Claim”), the Indemnified Party agrees
to give prompt notice in writing of such claim to the Indemnifying Party. Such notice by the Indemnified Party shall describe the Direct
Claim in reasonable detail (taking into account the information then available to the Indemnified Party), shall include copies of all
material written information comprising such Direct Claim and shall indicate the estimated amount, if reasonably practicable, of the Loss
that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall promptly, by written notice to the Indemnified
Party, either (i) concede Liability in whole as to the amount claimed in the claim notice, (ii) deny Liability in whole as to the amount
claimed in the claim notice, or (iii) concede Liability in part and deny Liability in part the amount claimed in the claim notice. If
the Indemnifying Party does not respond within 30 days after its receipt of the claim notice, the Indemnifying Party shall be deemed to
have rejected such claim. Following the Indemnified Party’s response notice in which Liability is not conceded in whole, the Parties
shall proceed in good faith to negotiate a resolution of such dispute. If such dispute is not resolved through negotiations or the Indemnifying
Party does not respond, the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the
terms and subject to the provisions of this Agreement.

 

Section 9.06      
Materiality Scrape. For purposes of (i) determining whether a misrepresentation or breach of a representation or warranty has
occurred pursuant to this Agreement, and (ii) calculating the amount of any Losses arising from a misrepresentation or breach of any representation
or warranty for which an Indemnified Party is entitled to indemnification under this Agreement, each representation and warranty contained
in this Agreement and in any certificate delivered pursuant to Sections 7.02 and 7.03 shall be read without giving effect
to any qualification that is based on materiality, including the words “material”, “Material Adverse Effect”,
 “in any material respect” and other uses of the word “material” (and shall be treated as if such words were deleted
from such representation or warranty).

 

    64

     

    

 

Section 9.07      
Method of Payment for Losses

 

(a)              
Upon the determination of any Losses for which Seller and the Members are obligated to indemnify the Buyer Indemnified Parties
pursuant to this Article IX: (i) if such Losses shall be reimbursed from the Indemnity Escrow Amount, Buyer and Seller shall,
within three (3) Business Days of such determination, execute and deliver to the Escrow Agent a joint written instruction to disburse
the amount of such Losses to the applicable Buyer Indemnified Party; and (ii) if such Losses are to be reimbursed from Seller or one
or more Members, such Seller or Members, as applicable, shall, within three (3) Business Days of such determination, pay such amount
to the applicable Buyer Indemnified Parties (to an account specified by Buyer to Seller or such Members) by wire transfer of immediately
available funds, subject to the limitations set forth in this Article IX.

 

(b)              
For any Losses for which Buyer is obligated to indemnify the Seller Indemnified Parties pursuant to this Article IX, Buyer
shall, within three (3) Business Days of such determination, pay such amount to the applicable Seller Indemnified Party (to an account
specified by Seller) by wire transfer of immediately available funds, subject to the limitations set forth in this Article IX.

 

Section 9.08      
Exclusive Remedies. Except as otherwise set forth in this Agreement (including Section 1.07 and Section 10.10)
and for Fraud, the Parties acknowledge and agree that after the Closing, their sole and exclusive remedy with respect to any and all
claims for any breach of any representation, warranty, covenant, agreement or obligation set forth in this Agreement shall be pursuant
to the indemnification provisions set forth in this Article IX. Except as otherwise set forth in this Agreement and for Fraud,
each Party waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation,
warranty, covenant, agreement or obligation set forth in this Agreement it may have against the other Parties, except pursuant to the
indemnification provisions set forth in this Article IX. Nothing in this Section 9.08 shall limit any Person’s
right to seek and obtain any equitable relief to which any Person shall be entitled pursuant to Section 10.10 or to seek any
remedy on account of Fraud.

 

Article X

MISCELLANEOUS

 

Section 10.01    
Expenses. Except as otherwise provided in this Agreement, all costs and expenses, including fees and disbursements of legal
counsel, financial advisors and accountants, incurred in connection with this Agreement and the Transactions shall be paid by the Party
(including its Affiliates) incurring such cost or expense; provided however, that upon the Closing all such costs and expenses incurred
by the Company and Seller on or prior to the Closing (other than as provided in Section 6.11) shall be paid by Seller and the Members
as a Transaction Expense.

 

    65

     

    

 

 

Section 10.02  
Notices. All notices and other communications under this Agreement must be in writing and are effective (a) when delivered
personally; (b) on the next Business Day if sent by an overnight courier with confirmation of receipt; (c) if by email, upon
confirmation of receipt by the recipient sent to the email address of the sender; or (d) on the fifth Business Day after mailing
by certified or registered mail, return receipt requested, postage prepaid. Communications under this Agreement must be sent as follows
(subject to being updated by a Party in accordance with this Section 10.02):

 

If to Seller, the
Company (prior to the Closing) or the Members:

 

Aaron Berkowitz

4310 Alla Rd.,

Los Angeles, CA 90066

Email: aaron@fertana.com

 

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

 

Carl Kleidman, Esq.

70 Forest St, Suite
11C

Stamford, CT 06901

Email: carl@cgkesq.com

 

If to Buyer or the
Company (after the Closing):

 

Hydrofarm Holdings
Group, Inc.

290 Canal Road

Fairless Hills, PA
19030

Attention: Eric Ceresnie,

SVP Corporate Development
 & Finance

Email: ericc@hydrofarm.com

 

    66

     

    

 

with a copy to:

 

Cozen O’Connor

One Liberty Place

1650 Market Street, Suite 2800

Philadelphia, Pennsylvania 19103

Attention: Larry P. Laubach

Email: llaubach@cozen.com

 

Section 10.03   Interpretation.
Any table of contents and headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.
This Agreement shall be interpreted without any presumption against the Party drafting or causing this Agreement or any part of it
to be drafted. Any capitalized term used in any exhibit or schedule but not defined therein has the meaning as defined in this
Agreement. As used in this Agreement: (a) the words “hereof,” “herein” and “hereunder” and
similar words refer to this Agreement as a whole and not to any particular provision, and references to sections, articles and
exhibits are to sections and exhibits of this Agreement unless otherwise specified; (b) the words “include,”
 “includes” or “including” are deemed to be followed by the words “without limitation”;
(c) references to “$” or “dollars” are references to U.S. dollars; (d) references to gender
include all genders; (e) “writing,” “written” and comparable terms refer to printing, typing and other
means of reproducing words, including electronic media, in a visible form; (f) references to any Person include the successors
and permitted assigns of that Person; (g) references from or through any date mean, unless otherwise specified, from and
including or through and including, respectively; (h) references to a document, list or other item being “made
available” by Seller means that such document, list or item was posted in the Data Room in a manner that enables viewing of
such materials by Buyer and its Representatives no later than 12:00 noon Pacific time on the second (2nd) Business Day
immediately prior to the Effective Date; (i) references to any Law shall be deemed to refer to such Law as amended from time to time
and to any rules or regulations promulgated thereunder; (j) references to any Contract are to that Contract as amended, modified or
supplemented from time to time; (k) the word “extent” in the phrase “to the extent” shall mean the degree to
which a subject or other theory extends and such phrase shall not mean “if”; (l) any singular term in this Agreement
shall be deemed to include the plural, and any plural term the singular; (m) the word “or” is not exclusive, unless the
context otherwise requires; (n) references to Articles, Sections, Schedules, Exhibits, the Preamble and the Recitals are to
Articles, Sections, Schedules, Exhibits, the Preamble and the Recitals of this Agreement unless otherwise specified; and (o) when
calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this
Agreement, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a
non-Business Day, the period in question shall end on the next succeeding Business Day

 

    67

     

    

 

Section 10.04  
Severability. Each term, provision, covenant and restriction of this Agreement is severable. If any such term, provision, covenant
or restriction is held by a court of competent jurisdiction to be invalid, void or unenforceable, (a) it shall have no effect in that
respect and the Parties shall use all reasonable efforts to replace it in that respect with a valid and enforceable substitute term, provision,
covenant or restriction (as applicable), the effect of which is as close to its intended effect as possible, and (b) the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated.

 

Section 10.05  
Entire Agreement. This Agreement, together with the Exhibits, the Disclosure Letter, the other Transaction Agreements and the
Confidentiality Agreement constitute the entire agreement of the Parties with respect to the subject matter hereof and thereof and supersede
all prior and contemporaneous understandings agreements and promises, both oral and written, between the Parties with respect to the subject
matter hereof and thereof, including that certain letter of intent dated February 8, 2021 between the Company and Buyer.

 

Section 10.06  
Successors and Assigns. This Agreement is binding on and shall inure to the benefit of each Party and its successors and permitted
assigns. No Party may assign, by contract, operation of law or otherwise, its rights or obligations under this Agreement without the prior
written consent of the other Parties; provided, that Buyer may, without the prior written consent of the other Parties, assign
any of its rights or obligations hereunder (a) to one or more of Buyer’s Affiliates (other than the obligation to issue the Shares
under Section 1.02), or (b) for collateral security purposes to any source of financing to Buyer that is effective from and after the
Closing. Any purported assignment in violation of this Section 10.06 is null and void. No assignment relieves the assigning
Party of any obligation under this Agreement.

 

Section 10.07  
No Third-party Beneficiaries. Except as provided in Section 6.08, Article IX and Section 10.11, this
Agreement is for the sole benefit of the Parties and their successors and permitted assigns and does not confer upon any other Person
any right, benefit, remedy or Liability.

 

Section 10.08  
Amendment; Waiver. This Agreement may be amended only in a writing signed by Buyer and Seller. A waiver of any term of this
Agreement must be explicit and in writing signed by Buyer, if waiving on its behalf, or by Seller, if waiving on behalf of Seller, the
Company or any Member. No failure to exercise, and no delay in exercising, any right, power or privilege under this Agreement shall operate
as a waiver, nor shall any single or partial exercise of any right, power or privilege hereunder preclude the exercise of any other right,
power or privilege. No waiver of any breach of any provision shall be deemed to be a waiver of any preceding or succeeding breach of
the same or any other provision, nor shall any waiver be implied from any course of dealing between the Parties. No extension of time
for performance of any obligations or other acts under any Transaction Agreement shall be deemed to be an extension of the time for performance
of any other obligations or any other acts. Except as otherwise provided in this Agreement, the rights and remedies set forth in this
Agreement shall be cumulative and not exclusive of any rights or remedies provided by Law.

 

    68

     

    

 

Section 10.09  
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)              
This Agreement is governed by the Laws of the state of Delaware applicable to agreements made and to be performed entirely in that
state, without regard to any choice or conflict of law provision, whether of that state or any other jurisdiction, that would cause the
application of the Law of any other jurisdiction.

 

(b)              
Each Party irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the United States
of America or the courts of the State of Delaware, in each case, located in the State of Delaware (as applicable, the “Chosen
Court”), for any action related to this Agreement and the Transactions, and no Party may commence any action related thereto
except in the Chosen Court. Each Party irrevocably and unconditionally waives any objection it may now or hereafter have to venue in the
Chosen Court for any action related to this Agreement and the Transactions, and it shall not plead or claim in any court that an action
brought in the Chosen Court has been brought in an inconvenient forum. A Party may file a copy of this Section 10.09 with
any court as evidence of the knowing, voluntary and bargained agreement of the Parties irrevocably to waive any objections to venue or
to convenience of forum of the Chosen Court.

 

(c)              
EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT HAS TO A TRIAL BY JURY IN ANY ACTION BROUGHT BY A PARTY
RELATED TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS. NO PARTY MAY SEEK A JURY TRIAL IN ANY ACTION ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR ANY OF THE TRANSACTIONS. EACH PARTY CERTIFIES THAT IT HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, MAKES THIS WAIVER KNOWINGLY AND
VOLUNTARILY, AND HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS SET FORTH IN THIS
Section 10.09(c).

 

Section 10.10   Specific
Performance. The Parties agree that irreparable damage would occur, and that the Parties would not have any adequate remedy at
Law, in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or are
otherwise breached. Accordingly, each Party hereby consents to the issuance of injunctive relief by any court of competent
jurisdiction to compel performance of such Party’s obligations and to the granting by any court of the remedy of specific
performance of such Party’s obligations hereunder. It is acknowledged that the Parties shall be entitled to equitable relief
under this Section 10.10, without proof of actual damages, and that neither the other Parties nor any other Person shall
be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy
referred to in this Section 10.10. Each Party further agrees that the only permitted objection that it may raise in
response to any action for specific performance relief is that it contests the existence of a breach or threatened breach of this
Agreement. To the extent a Party brings any Legal Proceeding before any Governmental Authority to enforce specifically the
performance of the terms and provisions of this Agreement prior to the Closing, the Termination Date shall automatically be extended
by (i) the amount of time during which such Proceeding is pending, plus 20 Business Days, or (ii) such other time period established
by the Governmental Authority presiding over such proceeding.

 

    69

     

    

 

Section 10.11  
No Recourse Against any Person other than Contracting Parties. Claims, Liabilities or causes of action (whether in Contract
or in tort, in law or in equity, or granted by statute) that may be based upon, in respect of, arise under, out or by reason of, be connected
with, or relate in any manner to this Agreement, or the negotiation, execution, or performance of this Agreement (including any representation
or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against the Persons that are identified
as parties in the preamble to this Agreement (“Contracting Parties”). No Person who is not a Contracting Party (“Non-Recourse
Party”) shall have any Liability (whether in Contract or in tort, in law or in equity, or granted by statute) for any claims,
causes of action or Liabilities arising under, out of, in connection with, or related in any manner to this Agreement or based on, in
respect of, or by reason of this Agreement or its negotiation, execution, performance or breach; and, to the maximum extent permitted
by Law, each Contracting Party hereby waives and releases all such Liabilities, claims and causes of action against any such Non-Recourse
Party. Without limiting the foregoing, to the maximum extent permitted by Law, (a) each Contracting Party hereby waives and releases any
and all rights, claims, demands or causes of action that may otherwise be available at law or in equity, or granted by statute, to avoid
or disregard the entity form of any Contracting Party or otherwise impose Liability of a Contracting Party on any Non-Recourse Party,
whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business
enterprise, piercing the veil, unfairness, undercapitalization or otherwise and (b) each Contracting Party disclaims any reliance upon
any Non-Recourse Party with respect to the performance of this Agreement or any representation or warranty made in, in connection with,
or as an inducement to this Agreement. Each Non-Recourse Party shall be a third-party beneficiary of this Section 10.11 and
may enforce the provisions of this Section 10.11.

 

Section 10.12  
Counterparts; Electronic Transmission. This Agreement may be executed in any number of counterparts and will be effective when
each Party receives the counterpart signature of all other Parties. Signatures transmitted electronically, including a PDF file sent by
email, have the same effect as physical delivery of original signatures.

 

Section 10.13   Exhibits
and Disclosure Letter. Subject to the provisions of this Section 10.13, all Exhibits and the Disclosure Letter hereto are
hereby incorporated into this Agreement and are hereby made a part hereof as if set out in full in this Agreement. Any matter that
is disclosed in one section of the Disclosure Letter shall apply to such specified section of this Agreement and to any other
section of the Disclosure Letter to the extent its relevance to such other section is reasonably apparent from the face of such
disclosure. Disclosure of any fact or item in any section of the Disclosure Letter shall not necessarily mean that such fact or
item is material to Seller or the Company.

 

[Signature Page Follows]

 

    70

     

    

 

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

 

	SELLER:	 
	 	 
	 	F16 HOLDING, LLC
	 	 
	 	By: 	/s/ Aaron Berkowitz
	 	 	Name: Aaron Berkowitz
	 	 	Title: Member
	 	 
	COMPANY:	 
	 	 
	 	FIELD 16, LLC
	 	 
	 	By:	 /s/ Aaron Berkowitz
	 	 	Name: Aaron Berkowitz
	 	 	Title: Chief Executive Officer
	 	 
	MEMBERS:	 
	 	/s/ Aaron Berkowitz
	 	 	Aaron Berkowitz
	 	 
	 	/s/ Bryce Patterson
	 	 	Bryce Patterson
	 	 
	 	/s/ Jordan Weiss
		 	Jordan Weiss
	 	 
	 	/s/ Michael Stone
	 	 	Michael Stone, as trustee of the Michael Stone Trust u/d/t
June 6, 2013

 

[UNIT
PURCHASE AGREEMENT SIGNATURE PAGE] 

 

     

     

    

 

	BUYER:	HYDROFARM HOLDINGS GROUP, INC.
	 	 
	 	By:	 /s/ William Toler
	 	 	Name: William Toler
	 	 	Title: Chief Executive Officer

 

[UNIT PURCHASE AGREEMENT SIGNATURE PAGE]

 

     

     

    

 

Exhibit A

 

Defined Terms

 

“2019 Financial Statements”
has the meaning set forth in Section 2.06(a).

 

“AAPFCO”
has the meaning set forth in Section 2.16(c).

 

“Accounting Principles”
means determined in accordance with GAAP applied using the same accounting methods, practices, principles, policies and procedures that
were used in the preparation of the Audited Financial Statements of the Company as of December 31, 2020 so long as such methods, practices,
principles, policies and procedures are GAAP.

 

“Additional Purchase
Price” has the meaning set forth in Section 1.02(c).

 

“Adjustment Amount”
has the meaning set forth in Section 1.07(b).

 

“Adjustment Escrow
Account” has the meaning set forth in Section 1.05

 

“Adjustment Escrow
Amount” has the meaning set forth in Section 1.05.

 

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

 

“Agreed Tax Treatment”
has the meaning set forth in Section 1.09.

 

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

 

“Allocation Objection”
has the meaning set forth in Section 1.09.

 

“Allocation Statement”
has the meaning set forth in Section 1.09.

 

“Alternative Transaction”
has the meaning set forth in Section 5.05.

 

“AML Laws”
has the meaning set forth in Section 2.15(d).

 

“Anti-Corruption
Laws” has the meaning set forth in Section 2.15(c).

 

“Audited Financial
Statements” has the meaning set forth in Section 2.06(a).

 

“Business”
means the manufacture or sale at wholesale of plant nutrients.

 

    Exhibit A-1

     

    

 

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

 

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

 

“Buyer Cap”
has the meaning set forth in Section 9.04(c).

 

“Buyer Fundamental
Warranties” means the representations and warranties set forth in Sections 4.01 and 4.04.

 

“Buyer Indemnified
Parties” has the meaning set forth in Section 9.02(a).

 

“Buyer Plans”
has the meaning set forth in Section 6.02(b).

 

“Buyer Released Parties”
has the meaning set forth in Section 6.08(a).

 

“Buyer’s Knowledge”
or any other similar knowledge qualification, means (a) the actual knowledge of Eric Ceresnie, and (b) the knowledge of each such Person
that would reasonably be expected to have been obtained after due inquiry by such Person.

 

“Cap” has
the meaning set forth in Section 9.04(a).

 

“Cash”
means, with respect to any Person as of any time, (a) the cash or cash equivalents (including marketable securities and short-term investments)
of such Person at such time, and shall include checks, ACH transactions and other wire transfers and drafts deposited for the account
of such Person at such time so long as such item results in receipt of cash by such Person, less (b) issued but uncleared checks
and drafts and overdrafts written or issued by such Person as of such time, less (c) Cash restricted from use or used as collateral
for, or otherwise to provide credit support for, any Liabilities of such Person under any letter of credit or other Contract.

 

“Cash Consideration”
has the meaning set forth in Section 1.02(a).

 

“Chosen Court”
has the meaning set forth in Section 10.09(b).

 

“Closing”
has the meaning set forth in Section 1.03.

 

“Closing Cash”
means the aggregate amount, which may be a positive or negative number, of Cash of the Company as of the Effective Time.

 

“Closing Date”
means the date on which the Closing occurs.

 

“Closing Indebtedness”
means the aggregate amount of Indebtedness immediately prior to the Closing.

 

“Closing Net Working
Capital” means Net Working Capital as of the Effective Time.

 

    Exhibit A-2

     

    

 

“Closing Net Working
Capital Adjustment Amount” means (i) if the Closing Net Working Capital exceeds the Maximum Net Working Capital Target, the
amount, which will be a positive number, of such excess (ii) if the Closing Net Working Capital is less than the Minimum Net Working Capital
Target, the amount, which will be a negative number, of such deficit, and (ii) if the Closing Net Working Capital is more than the Minimum
Net Working Capital Target and less than the Maximum Net Working Capital Target, zero.

 

“Closing Purchase
Price” means the Cash Consideration, plus (a) the Closing Net Working Capital Adjustment Amount, minus (b) Closing Indebtedness,
plus (c) Closing Cash, minus (d) Transaction Expenses, each as finally determined pursuant to Section 1.07.

 

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

 

“Commercially Reasonable
Efforts” means, with respect to the efforts to be expended by a Party with respect to any objective under this Agreement, reasonable
efforts to accomplish such objective as such Party would normally use to accomplish a similar objective. “Commercially Reasonable
Efforts” will not require a Party to (a) expend any funds or assume Liabilities other than expenditures and Liabilities that are
reasonable in nature and amount in the context of the Transactions, (b) violate any Law, or (c) initiate any Legal Proceeding.

 

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

 

“Company Intellectual
Property Rights” means all Intellectual Property Rights owned by the Company.

 

“Company Products”
means those products manufactured by or sold by or on behalf of the Company on or prior to the Closing.

 

“Company Releasing
Parties” has the meaning set forth in Section 6.08(b).

 

“Competing Business”
means the Business or any other business which is competitive with any portion of the Business.

 

“Confidential Information”
means any and all confidential, proprietary, technical, business or financial information of or concerning the Company or the Business,
including marketing and financial information, personnel, sales and statistical data, plans for future development, computer programs,
information and knowledge pertaining to the products and services offered, inventions, innovations, designs, ideas, records, plans, drawings,
intellectual property, technical data, source and object codes, software, proprietary information, processes, systems, documents, writings,
manuals, inventions, discoveries, formulae, recipes, advertising, manufacturing, sales methods and systems, pricing information, sales
and profit figures, sales volume, research/development activities, customer and distributor lists, and relationships with customers, distributors,
suppliers, licensees, licensors, consultants and others who have business dealings with the Company and information with respect to various
techniques, procedures, processes and methods. Confidential Information also includes confidential or proprietary information received
by the Company from third parties or otherwise subject to an obligation to maintain the confidentiality of such information.

 

    Exhibit A-3

     

    

 

“Confidentiality
Agreement” means the Confidentiality Agreement dated as of December 14, 2020, between Buyer and the Company.

 

“Continuing Employee”
has the meaning set forth in Section 6.02(a).

 

“Contract”
means, with respect to any Person, any written or oral unexpired, undischarged or unsatisfied contract, subcontract, agreement, commitment,
deed of trust, mortgage, lease, sublease, license, sublicense, indenture, note, bond or other document or instrument (including any document
or instrument evidencing or otherwise relating to any Indebtedness) to which such Person is a party or by which such Person or its properties
or assets are legally bound.

 

“Contracting Parties”
has the meaning set forth in Section 10.11.

 

“Contributed Units”
has the meaning set forth in the Recitals.

 

“Controlled Group”
means any trade or business (whether or not incorporated) (a) under common control within the meaning of Section 4001(b)(1) of ERISA with
the Company or (b) which together with the Company is treated as a single employer under Section 414 of the Code.

 

“Data Room”
means the electronic documentation site established by the Company.

 

“Deductible”
has the meaning set forth in Section 9.04(a).

 

“Deficit Amount”
has the meaning set forth in Section 1.07(b)(ii).

 

“Determination Date”
has the meaning set forth in Section 1.07(a)(vi).

 

“Direct Claim”
has the meaning set forth in Section 9.05(c).

 

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

 

“Disputed Amounts”
has the meaning set forth in Section 1.07(a)(iv).

 

“Effective Time”
means 12:01 a.m., pacific time, on the Closing Date.

 

“Employee
Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA, any “nonqualified
deferred compensation plan” as defined in Section 409A of the Code, or any severance arrangement, salary continuation, bonus,
commission, incentive, stock option, retirement, pension, profit sharing, deferred compensation, retention agreement, retention
plan, benefits continuation, salary continuation, tuition reimbursement, dependent care assistance, legal assistance, fringe benefit
(cash or non-cash), vacation, holiday, sick leave, insurance, death benefit, unemployment, cafeteria, health, medical, dental,
vision, hearing, disability, or other compensatory or health or welfare benefit plan, program, arrangement or Contract which: (a)
the Company maintains, sponsors, contributes to or has any Liability under or with respect to, or (b) which any Controlled Group
member maintains, sponsors, contributes to or has any Liability under or with respect to and under which the Company could have any
Liability (including as a member of a Controlled Group).

 

    Exhibit A-4

     

    

 

“Employee Bonuses”
has the meaning set forth in Section 6.02(e).

 

“Employees”
means those Persons employed by the Company immediately prior to the Closing.

 

“Employment Agreements”
has the meaning set forth in Section 7.02(f)(vi).

 

“Encumbrance”
means any lien, pledge, mortgage, deed of trust, security interest, assignment, hypothecation, title retention, charge, claim, right of
first offer, right of first refusal, easement, encroachment, similar encumbrance or any other security agreement or arrangement of any
kind or nature whatsoever.

 

“Enforceability Exception”
has the meaning set forth in Section 2.02(b).

 

“Environmental Law”
means any applicable Law, and any Order or Contract with any Governmental Authority: (a) relating to pollution (or the cleanup thereof)
or the protection of natural resources, endangered or threatened species, human health or safety, or the environment (including ambient
air, soil, surface water or groundwater, subsurface strata, drinking water supply, surface land, plant and animal life or any other natural
resource); or (b) concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling,
reclamation, reuse, treatment, generation, discharge, handling, transportation, processing, production, disposal or remediation of any
Hazardous Materials. The term “Environmental Law” includes the following (including their implementing regulations and any
state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901
et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§ 1251
et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning and
Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean
Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended,
29 U.S.C. §§ 651 et seq.; the Safe Drinking Water and Toxic Enforcement Act of 1986 (California’s Proposition
65) and all comparable state and local Laws.

 

“EPA” has
the meaning set forth in Section 2.21(a).

 

“Equity
Securities” means (a) capital stock, partnership or membership interests or units (whether general or limited), restricted
stock awards, restricted stock units, equity appreciation rights, phantom equity rights, profit participation rights, any other
interest or participation that confers the right to receive a share of the profits and/or losses of, or distribution of assets and
all other ownership or profit interests of such Person (including partnership or member interests therein), (b) subscriptions,
calls, warrants, options or commitments of any kind or character entitling any Person to acquire, any interest referred to in item
(a), and (c) securities convertible into or exercisable or exchangeable for any interest referred to in item (a) or item (b), in
each case whether voting or nonvoting.

 

    Exhibit A-5

     

    

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

“Escrow Agent”
means J.P. Morgan Chase Escrow Services.

 

“Escrow Amount”
has the meaning set forth in Section 1.05.

 

“Escrow Agreement”
has the meaning set forth in Section 1.05.

 

“Estimated Closing
Cash” has the meaning set forth in Section 1.04(a)(iii).

 

“Estimated Closing
Indebtedness” has the meaning set forth in Section 1.04(a)(ii).

 

“Estimated Closing
Net Working Capital” has the meaning set forth in Section 1.04(a)(i).

 

“Estimated Closing
Net Working Capital Deficit” means the amount, if any, by which the Estimated Closing Net Working Capital is less than the Minimum
Net Working Capital Target.

 

“Estimated Closing
Net Working Capital Increase” means the amount, if any, by which the Estimated Closing Net Working Capital is more than the
Maximum Net Working Capital Target.

 

“Estimated Closing
Purchase Price” means, without duplication, the Cash Consideration, (a) plus the Estimated Closing Net Working Capital Increase
or minus the Estimated Closing Net Working Capital Deficit, minus (b) Estimated Closing Indebtedness, plus (c) Estimated Closing Cash,
minus (d) Estimated Transaction Expenses.

 

“Estimated Transaction
Expenses” has the meaning set forth in Section 1.04(a)(iv).

 

“Final Closing Statement”
has the meaning set forth in Section 1.07(a)(i).

 

“Financial Statements”
has the meaning set forth in Section 2.06(a).

 

“Fraud”
means actual fraud with respect to the making of the representations and warranties set forth in Article II, Article III,
or Article IV committed by a Party making such representation and warranty.

 

“Fundamental Warranties”
means the Buyer Fundamental Warranties and the Seller Fundamental Warranties.

 

“GAAP”
means United States generally accepted accounting principles applied consistently.

 

    Exhibit A-6

     

    

 

“Governmental Authority”
means any federal, state, local, municipal or foreign government or political subdivision thereof, or any agency, regulatory body or instrumentality
of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator,
court or tribunal of competent jurisdiction.

 

“Hazardous Materials”
means (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral or gas, in each
case, whether naturally occurring or man-made, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory effect
under Environmental Laws; (b) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos in any
form, lead or lead-containing material, polychlorinated biphenyls; or (c) any other pollutant, contaminant, hazardous substance or radioactive
substance.

 

“Income Tax Return”
means a Tax Return with respect to a Tax imposed on net income, or any state or local Tax Return with respect to a Tax imposed in lieu
of Tax on net income that is based on net or gross income.

 

“Increase Amount”
has the meaning set forth in Section 1.07(b)(i).

 

“Indebtedness”
means, without duplication, all payment obligations (including in respect of principal, interest, premiums (including make-whole premiums),
prepayment penalties, breakage costs, fees, expenses or similar charges arising as a result of the discharge of such amount owed and payments
or premiums attributable to, or which arise as a result of, the Transactions or the payment of such obligation) of the Company in respect
of (a) borrowed money; (b) obligations for the deferred purchase price of property, goods or services, including earn-outs, contingent
payments, payments under non-compete agreements and seller notes, with respect to which the Company is liable, contingently or otherwise,
as obligor or otherwise, (other than trade payables incurred in the Ordinary Course of Business), (c) long or short-term obligations evidenced
by notes, bonds, debentures or other similar instruments, (d) obligations under any interest rate, currency or exchange obligations, swaps,
hedges or similar agreements or arrangements; (e) capital lease obligations under Contracts set forth on Section A-1 of the Disclosure
Letter; (f) reimbursement obligations under any letter of credit, banker’s acceptance or similar credit transactions; (g) obligations
secured by a lien on the assets of the Company, (h) guarantees made by the Company on behalf of any other Person in respect of obligations
of the kind referred to in the foregoing clauses (a) through (g); and (i) any unpaid interest, prepayment penalties, premiums, costs and
fees that would arise or become due as a result of the prepayment of any of the obligations referred to in the foregoing clauses (a) through
(h).

 

“Indemnified Party”
has the meaning set forth in Section 9.04.

 

“Indemnifying Party”
has the meaning set forth in Section 9.04.

 

“Indemnity Escrow
Account” has the meaning set forth in Section 1.05.

 

    Exhibit A-7

     

    

 

“Indemnity Escrow
Amount” has the meaning set forth in Section 1.05.

 

“Independent Accountant”
has the meaning set forth in Section 1.07(a)(iv).

 

“Insurance Policies”
has the meaning set forth in Section 2.13(a).

 

“Intellectual Property
Rights” means all worldwide right, title and interest in and to all proprietary rights of every kind and nature pertaining to
or deriving from any of the following, whether protected, created or arising under the Laws of the United States or any other jurisdiction:
(a) foreign and domestic patents and patent applications (including reissuances, divisions, renewals, provisional applications, continuations,
continuations in part, revisions, extensions, substitutions and reexaminations), and all inventions (whether patentable or not), invention
disclosures, and improvements thereof (collectively, “Patents”); (b) trademarks, service marks, trade names, trade
dress, logos, slogans and all other devices used to identify any product, service, business or company, whether registered or unregistered
or at common law, including all foreign and domestic applications, registrations and renewals in connection therewith, and all goodwill
associated with any of the foregoing (collectively, “Marks”); (c) Internet domain names, and other Internet addresses,
and user names, accounts, including social networking and social media accounts, pages, and online identities (and all goodwill associated
with any of the foregoing, if any) (collectively, “Domain Names”); (d) copyrights, original works, and all databases
and data collections, whether registered or unregistered, and including all applications, registrations and renewals of any such thing,
and all moral rights and neighboring rights associated therewith (“Copyrights”); (e) know-how, trade secrets, source
code, object code, discoveries, improvements, concepts, ideas, methods, processes, designs, plans, schematics, drawings, formulae, manufacturing
processes, customer and market lists, technical data, specifications, research and development information, technology and product roadmaps,
proprietary data, databases and database rights (including sui generis rights), including Personal Information, technical data and other
proprietary data and other proprietary or Confidential Information; (f) all computer programs, including any and all software implementations
of algorithms, models and methodologies, whether in source code or object code or other readable code (collectively, “Software”);
(g) rights of publicity and rights of privacy; (h) trade dress including the look and feel, decor, physical appearance and layout of any
product or labeling, and all goodwill associated with the foregoing; and (i) all income, royalties, damages and payments due or payable
as of the Closing Date or thereafter with respect to the foregoing (including damages and payments for past, present or future infringements
or misappropriations thereof), the right to sue and recover for future infringements or misappropriations thereof and any and all corresponding
rights that now or hereafter may be secured throughout the world, and all copies and tangible embodiments thereof.

 

“Internal Controls”
has the meaning set forth in Section 2.06(b).

 

“Latest Balance Sheet”
has the meaning set forth in Section 2.06(a).

 

“Law” means
any statute, law, ordinance, regulation, rule, code, Order, constitution, treaty, convention, common law, judgment, decree, directive,
legal requirement, other requirement or rule of law of any Governmental Authority or any similar provision having the force or effect
of law.

 

    Exhibit A-8

     

    

 

“Leased Real Property”
has the meaning set forth in Section 2.10(a).

 

“Legal Proceeding”
means any judicial, administrative, arbitral or Tax action, suit, claim, demand, hearing, audit, examination, contest, investigation or
proceeding (public or private) by or before a Governmental Authority or arbitrator.

 

“Liability”
means any debt, liability, commitment, loss, cost, damage, deficiency, royalty, penalty, Tax, expense, interest, fine, settlement, award
or judgment, or obligation of any kind, character or nature whatsoever, whether known or unknown, asserted or unasserted, choate or inchoate,
secured or unsecured, fixed, absolute or contingent, accrued or unaccrued, liquidated or unliquidated and whether due or to become due.

 

“Licenses-In”
has the meaning set forth in Section 2.12(a).

 

“Litigation Conditions”
has the meaning set forth in Section 9.05(a).

 

“Lookback Date”
means January 1, 2017.

 

“Losses”
means any and all losses, damages, Liabilities, deficiencies, audits, claims, settlements, royalties, penalties, interest, fines, fees,
Taxes, awards, judgments, costs and expenses (including reasonable attorneys’ fees, costs and other expenses incurred in investigating,
preparing, defending or settling the foregoing).

 

“Material
Adverse Effect” means any event, occurrence, fact, condition, circumstance, effect or change which, individually or in the
aggregate, is, or could reasonably be expected to be, materially adverse to (a) the Business, results of operations, financial
condition, assets, Liabilities or prospects of the Company, (b) the Units, or (c) the ability of the Seller to perform any of
its obligations under this Agreement or any other Transaction Agreement and to consummate the Transactions; provided,
however, that none of the following will be considered when determining whether a Material Adverse Effect has occurred or could
reasonably be expected to occur with respect to item (a): (i) changes in general economic or political conditions; (ii) changes
in conditions generally affecting the industry in which the Company operates; (iii) any changes in financial, banking or
securities markets in general; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or
worsening thereof; (v) any action required by this Agreement or any action taken with the written consent of or at the written
request of Buyer; (vi) any changes in applicable Laws or accounting rules (including GAAP) or the enforcement, implementation
or interpretation thereof; (vii) the public announcement or pendency of the Transactions; (viii) any natural disaster or
acts of God; (ix) any Law issued by a Governmental Authority that results from COVID-19; or (xi) any failure by the Company to
meet any internal or published projections, forecasts or revenue or earnings predictions (provided that the underlying causes of
such failures (subject to the other provisions of this definition) shall not be excluded) provided, however, if a
matter described in clauses (i) through (iv), clause (vi) or clause (viii) has had a disproportionate effect on the business,
financial condition or results of operations of the Company compared to other Persons engaged in the same industry as the Business,
then the impact of such matter on the Company shall be taken into account for purposes of determining whether any event, occurrence,
fact, condition, circumstance, effect or change is or could reasonably be expected to be materially adverse.

 

    Exhibit A-9

     

    

 

“Material Contracts”
has the meaning set forth in Section 2.09(a).

 

“Material Customer”
means any of the ten largest customers of the Company, or any customer that represents more than five per cent (5%) of the Company’s
revenues, in each case measured by the dollar amount of revenue generated by the Company in respect of such customer for (a) the twelve-month
period ended on December 31, 2020, or (b) the three-month period ended March 31, 2021.

 

“Material Supplier”
means any of the ten largest suppliers of the Company, or any supplier that represents more than five per cent (5%) of the Company’s
expenditures, in each case measured by the dollar amount of expenditures by the Company in respect of such supplier for (a) the twelve-month
period ended on December 31, 2020, or (b) the three-month period ended March 31, 2021.

 

“Maximum Net Working
Capital Target” means $950,000.

 

“Minimum Net Working
Capital Target” means $850,000.

 

“Most Recent Financial
Statements” has the meaning set forth in Section 2.06(a).

 

“Multiemployer Plan”
means a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

“Net Sales”
has the meaning set forth in Section 1.02(c).

 

“Net Sales Calculation”
has the meaning set forth in Section 1.02(c).

 

“Net Sales Objection”
has the meaning set forth in Section 1.02(c).

 

“Net Working Capital”
means, as of any date, (a) the aggregate amount of the current assets of the Company (other than Cash and the other items set forth in
Exhibit F) as of such date minus (b) the aggregate amount of the current Liabilities of the Company (other than Indebtedness, Transaction
Expenses and the other items set forth in Exhibit F) as of such date, in each case, calculated in accordance with the Accounting
Principles. Those accounts which are included in the computation of Net Working Capital are set forth in the illustrative calculation
of Net Working Capital attached as Exhibit F.

 

“Non-Recourse Party”
has the meaning set forth in Section 10.11.

 

“Operating Agreement”
means the Operating Agreement of the Company dated as of February 1, 2010, as amended to date.

 

“Order”
means any order, writ, judgment, injunction, decree, stipulation, determination, award, ruling, mandate, directive, assessment or
arbitration award of a Governmental Authority, an arbitrator or a mediator, whether civil, criminal or administrative and whether
formal or informal.

 

    Exhibit A-10

     

    

 

“Ordinary Course
of Business” means, with respect to any Person, such Person’s ordinary course of business consistent with such Person’s
historical practice.

 

“Organizational Documents”
means (a) with respect to a corporation, the certificate or articles of incorporation and bylaws, (b) with respect to a limited liability
company, the certificate of formation or organization and the limited liability company or operating agreement, or (c) with respect to
any other Person, any charter or similar document adopted or filed in connection with the creation, formation or organization of such
Person, each as amended and in effect as of the Effective Date.

 

“Parties”
means the Company, Seller, the Members and Buyer.

 

“Payoff Letter”
has the meaning set forth in Section 7.02(f)(iv).

 

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

 

“Permitted Encumbrances”
means (a) statutory Encumbrances for Taxes not yet due and payable or being contested in good faith by appropriate procedures (provided
appropriate reserves have been included in the Final Closing Statement), (c) mechanics, carriers’, workmen’s, repairmen’s
or other like liens arising or incurred in the Ordinary Course of Business with respect to any amounts not yet delinquent or which are
being contested in good faith and for which adequate reserves have been set aside for the payment thereof, (d) easements of record, rights
of way of record and zoning ordinances imposed by Governmental Authorities affecting any Leased Real Property which do not impair and
which are not violated by the current use or operation of the Leased Property, or (e) Encumbrances securing rental payments under capital
leases.

 

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

 

“Personal Information”
means any information identified or identifiable of a natural person (which such information is similarly protected as Personal Information
under Law); an identifiable person may be one who can be identified, directly or indirectly, in particular by reference to an identifier
such as a name, an identification number, location data, an online identifier, or to one or more factors specific to his or her physical,
physiological, genetic, mental, economic, cultural or social identity.

 

“Post-Closing Tax
Period” means any Tax period beginning after the Closing Date and, with respect to a Straddle Period, the portion of such Tax
period beginning after the Closing Date.

 

“Pre-Closing Period”
means the period commencing on the Effective Date and ending at the Closing or such earlier date as this Agreement may be terminated in
accordance with Article VIII.

 

    Exhibit A-11

     

    

 

“Pre-Closing Tax
Period” means any Tax period ending on or before the Closing Date and, with respect to a Straddle Period, the portion of such
Tax period ending on the Closing Date.

 

“Pre-Closing Tax
Return” has the meaning set forth in Section 6.06(a)(ii).

 

“Preliminary Closing
Statement” has the meaning set forth in Section 1.04.

 

“Privacy Commitments”
has the meaning set forth in Section 2.23(a).

 

“Privacy Laws”
has the meaning set forth in Section 2.23(a).

 

“Privacy Policies”
has the meaning set forth in Section 2.23(a).

 

“Processing”
has the meaning set forth in Section 2.23(a).

 

“Product Authorities”
has the meaning set forth in Section 2.21(a).

 

“Product Laws”
has the meaning set forth in Section 2.21(a).

 

“Purchased Units”
has the meaning set forth in the Recitals.

 

“Purchase Price”
has the meaning set forth in Section 1.02(b).

 

“QSub Election”
has the meaning set forth in the Recitals.

 

“R&W Carrier”
means Pacific Insurance Company, Limited.

 

“R&W Insurance
Policy” means the buyer-side representation and warranty insurance binder in the form attached as Exhibit G.

 

“Registered Intellectual
Property” means registrations, issuances, and pending applications for registrations or issuances of any Company Intellectual
Property Rights, as well as any Domain Names registered in the name of a Company.

 

“Release”
means any actual or threatened release, spill, emission, discharge, leaking, pumping, pouring, escaping, injection, deposit, disposal,
dispersal, leaching or migration into the indoor or outdoor environment (including ambient air, surface water, groundwater and surface
or subsurface strata) or into or out of any property, including the movement of Hazardous Materials through or in the air, soil, surface
water, groundwater or property.

 

“Reorganization”
has the meaning set forth in the Recitals.

 

“Reorganization Agreement”
has the meaning set forth in the Recitals.

 

“Representative”
means, with respect to any Person, any director, manager, partner, officer, employee, consultant, financial advisor, counsel, accountant
and any other agent of such Person.

 

    Exhibit A-12

     

    

 

“Resolution Period”
has the meaning set forth in Section 1.07(a)(iii).

 

“Restrictive Covenant
Agreements” has the meaning set forth in Section 7.02(f)(vii).

 

“Review Period”
has the meaning set forth in Section 1.07(a)(ii).

 

“SEC” means
the Securities and Exchange Commission.

 

“SEC Documents”
has the meaning set forth in Section 3.07.

 

“Securities Act”
has the meaning set forth in Section 3.06.

 

“Security Breach”
has the meaning set forth in Section 2.23(b).

 

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

 

“Seller Fundamental
Warranties” means the representations and warranties set forth in Sections 2.01, 2.02, 2.03, 2.04, 2.05(a), 2.11(a), 2.19,
2.27, 3.01, 3.02, 3.03(a) and 3.04.

 

“Seller Indemnified
Parties” has the meaning set forth in Section 9.03.

 

“Seller Released
Parties” has the meaning set forth in Section 6.08(b).

 

“Seller Releasing
Parties” has the meaning set forth in Section 6.08(a).

 

“Seller’s Bank
Account” means the bank account whose wire instructions have been designated in writing by Seller to Buyer at least two (2)
Business Days prior to the Closing Date, or such other wire instructions that are designated in writing after the Closing Date by Seller
to Buyer at least two (2) Business Days prior to the date of the proposed payment.

 

“Seller’s Knowledge”
or any other similar knowledge qualification, means (a) the actual knowledge of Aaron Berkowitz, Bryce Patterson, and Jessica Spivey and
(b) the knowledge of each such Person that would reasonably be expected to have been obtained after due inquiry by such Person.

 

“Shares”
has the meaning set forth in Section 1.02(a).

 

“Statement of Objections”
has the meaning set forth in Section 1.07(a)(iii).

 

“Step One”
has the meaning set forth in the Recitals.

 

“Step Two”
has the meaning set forth in the Recitals.

 

“Straddle Period”
means a Tax period that begins on or before and ends after the Closing Date.

 

“Straddle Period
Tax Return” has the meaning set forth in Section 6.06 (a)(iii).

 

“Subprocessors”
has the meaning set forth in Section 2.23(a).

 

    Exhibit A-13

     

    

 

 

“Subsidiary”
means, with respect to a Person, any entity of which (a) such Person or any of its Subsidiaries is a general partner or holds a majority
of the voting interests of a partnership, (b) at least a majority of the securities or other ownership interests having by their terms
ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is directly or indirectly
owned or controlled by such Person or by one or more of its Subsidiaries, or (c) that is required to be consolidated in such Person’s
financial statements under GAAP.

 

“Tail Policy”
has the meaning set forth in Section 6.03.

 

“Tax” all
(a) federal, state, local and foreign income, profits, franchise, sales, use, ad valorem, personal property, other property, unclaimed
property or escheat (whether or not treated as a tax under Law), severance, production, excise, stamp, stamp duty revenue tax, stamp duty
land tax, documentary, real property, real property transfer or gain, gross receipts, goods and services, registration, capital, capital
stock, transfer, withholding, estimated, alternative, minimum, add-on minimum, value added, natural resources, entertainment, amusement,
occupation, premium, windfall profit, environmental, customs, duties, special assessment, social security, national insurance contributions,
unemployment, disability, payroll, license, employee, healthcare (whether or not treated as a tax under Law) or other tax of any kind
whatsoever (whether payable directly or by withholding), including any interest, penalties, or additions to tax or additional amounts
in respect of the foregoing, (b) Liability for the payment of any amounts of the type described in clause (a) above arising as
a result of being (or ceasing to be) a member of any affiliated, consolidated combined, unitary or aggregate group (or being included
(or required to be included) in any Tax Return relating thereto); and (c) Liability for the payment of any amounts of the type described
in clause (a) of another Person as a result of any transferee or secondary Liability or any Liability assumed by Contract, Law
or otherwise.

 

“Tax Claim”
has the meaning set forth in Section 6.06(g)(i).

 

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

 

“Taxing Authority”
means any Governmental Authority responsible for the imposition or collection of any Tax.

 

“Termination Date”
has the meaning set forth in Section 8.01(b)(ii).

 

“Third-Party Claim”
has the meaning set forth in Section 9.05(a).

 

“Transaction Agreements”
means this Agreement, the Escrow Agreement, the Employment Agreements, and the Restrictive Covenant Agreements.

 

“Transaction
Expenses” means (a) all unpaid fees and expenses incurred by either Seller or the Company relating to or in connection
with the Transactions, including legal, accounting, consulting, investment banking, brokers’ and finders’ and other
similar fees, costs and expenses, (b) all amounts payable by the Company to the extent resulting from the consummation of the
Transactions, regardless of whether such amounts are due upon or after Closing, including any “change of control,”
retention payment, transaction bonus, termination payment, compensation, severance or other similar arrangements or any other
accelerations of or increases in rights or benefits, and all Taxes that are payable by the Company as a result of the payment of any
such obligation, (c) fifty percent (50%) of the aggregate costs and expenses related to the R&W Insurance Policy, including the
total premium, underwriting costs, brokerage commission for the Buyer’s insurance broker, Taxes related to such policy and
other fees and expenses of such policy, (d) all unpaid amounts incurred by the Company prior to the Closing to obtain any third
party consents, waivers or approvals, (e) fifty percent (50%) of the fees of the Escrow Agent, and (f) the costs, fees and expenses
of the Tail Policy.

 

    Exhibit A-14 

     

    

 

“Transactions”
means the Reorganization, the purchase and sale of the Units and the other transactions contemplated by the Transaction Agreements.

 

“Transfer Tax”
has the meaning set forth in Section 6.06(e).

 

“Treasury Regulations”
means the Treasury regulations promulgated under the Code.

 

“Units”
has the meaning set forth in the Recitals.

 

“USA PATRIOT Act”
has the meaning set forth in Section 2.15(d).

 

“USDA”
has the meaning set forth in Section 2.16(c).

 

    Exhibit A-15 

     

    

 

Exhibit B

 

Contribution
Agreement and Plan of Reorganization

 

     

     

    

 

Exhibit C

 

Escrow Agreement

 

     

     

    

 

Exhibit D

 

Employment Agreements

 

     

     

    

 

Exhibit E

 

Restrictive Covenant Agreements

 

     

     

    

 

Exhibit F

 

Net Working Capital Illustration

 

     

     

    

 

Exhibit G

 

R&W Insurance Binder

 

     

     

    

 

Disclosure Letter to the Unit Purchase Agreement

 

Table of Contents

 

	Section 2.01(i)	Foreign jurisdiction qualifications
	Section 2.01(ii)	Assumed or Fictitious Names
	Section 2.05	Consents or filings required
	Section 2.06(a)	Financial Statements
	Section 2.08	Absence of Changes
	Section 2.09(a)	Material Contracts
	Section 2.10	Leased Real Property
	Section 2.12	Intellectual Property
	Section 2.13	Insurance
	Section 2.14	Litigation
	Section 2.15	Compliance with Laws
	Section 2.16(c)	Organic Product certifications
	Section 2.17(a)	Employee benefit plans
	Section 2.18(a)	Employees
	Section 2.19	Taxes
	Section 2.20	Affiliated Transactions
	Section 2.21	Products; Recalls
	Section 2.22	Customers & Suppliers
	Section 2.23(a)	Data Security
	Section 6.02	Employee Closing Bonuses
	Section 6.09	List of post-Closing affiliated party intercompany obligations
	Section 7.02(e)(v)	Closing consents required
	Section 7.02(e)(xii)	Real estate estoppel letters required
	Section 9.02(b)(v)	Indemnification by Seller and Members
	Section A-1	Capital Leases

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}]]