Document:

Exhibit 10.5

 

EXECUTION VERSION

 

WAIVER AND THIRD AMENDMENT TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

This WAIVER AND THIRD AMENDMENT TO
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of August 24, 2018 (this “Waiver and Third
Amendment”), is made and entered into by and among HYDROFARM HOLDINGS LLC, a Delaware limited liability
company (“Holdings”), HYDROFARM, LLC, a California limited liability company
(“Hydrofarm”), EHH HOLDINGS, LLC, a Delaware limited liability company (“EHH”),
and SUNBLASTER LLC, a Delaware limited liability company (“SunBlaster” and together with Hydrofarm
and EHH, each, a “U.S. Borrower” and collectively, the “U.S. Borrowers”), HYDROFARM
CANADA, LLC, a Delaware limited liability company (“Hydrofarm Canada”), GS DISTRIBUTION INC., a
British Columbia company (“GSD”), EDDI’S WHOLESALE GARDEN SUPPLIES LTD., a British Columbia
company (“Eddi”)) and SUNBLASTER HOLDINGS ULC, a British Columbia unlimited liability company
(“Sunblaster Canada”; together with GSD and Eddi, each, a “Canadian Borrower” and
collectively, the “Canadian Borrowers”; and together with U.S. Borrowers, each a
 “Borrower” and collectively, the “Borrowers” and together with Holdings and Hydrofarm
Canada, each an “Obligor” and collectively the “Obligors”), and BANK OF AMERICA,
N.A., a national banking association, as administrative agent (in such capacity, “Agent”) for the
financial institutions from time to time party to the Loan Agreement described below (collectively, the
 “Lenders” and each individually a “Lender”) and the Lenders signatory hereto.

 

R E C I T A L S

 

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

 

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

 

WHEREAS, the
Obligors, Agent and Lenders are parties to that certain Forbearance Agreement and First Amendment to Amended and Restated
Loan and Security Agreement, dated as of May 18, 2018 (the “Forbearance Agreement”), that certain First
Amendment to Forbearance Agreement and Second Amendment to Amended and Restated Loan and Security Agreement (the
 “First Forbearance Amendment”) dated as of July 16, 2018, that certain Second Amendment to Forbearance
Agreement dated as of August 15, 2018 (the “Second Forbearance Amendment”) and that certain Third
Amendment to the Forbearance Agreement dated as of August 22, 2018 (the “Third Forbearance Amendment” and
together with the Forbearance Agreement, the First Forbearance Amendment and the Second Forbearance Amendment, the
 “Forbearance Agreements”) pursuant to which, among other things, Lenders agreed, subject to the terms and
conditions set forth in the Forbearance Agreements, to temporarily forbear from exercising their rights and remedies under
the Loan Documents arising as a result of the Specified Defaults identified therein.

 

    	 		 

     

    

 

WHEREAS, as
of the date hereof, the Events of Default identified on Schedule I hereto (collectively, the “Specified Defaults”)
have occurred and are continuing.

 

WHEREAS, the
Obligors have requested that the Lenders and the Agent (i) waive the Specified Defaults, and (ii) amend the Loan Agreement as set
forth herein.

 

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

 

SECTION 1.            Definitions. As
used herein, the following terms shall have the respective meanings set forth below:

 

Book Cash:
shall mean the amount of unrestricted cash on deposit in the Borrowers’ bank accounts located in the United States and/or
Canada, as applicable, that are subject to a control agreement to the extent required under Section 8.2(d) of the Loan Agreement,
at 5:00 p.m. (Eastern Time) on any date of determination less (i) all checks that have been written or otherwise distributed but
not yet cashed as of such date of determination and (ii) all automated clearing house transfers that have been initiated by the
depository bank and not funded by the Borrowers, provided, that the amount of such cash shall have been reconciled to the books
and records (including bank statements) of the Borrowers in a manner reasonably acceptable to the Agent.

 

Financial
Advisor: shall mean Carl Marks & Co., Inc., or such other third-party financial advisor satisfactory to Agent and retained
by the Obligors on terms acceptable to Agent.

 

Unless otherwise
defined above or elsewhere in this Waiver and Third Amendment, each capitalized term used herein shall have the meaning ascribed
thereto in the Loan Agreement.

 

SECTION 2.            Acknowledgment of Defaults and Rights
and Remedies.

 

(a)      Each Obligor
acknowledges and agrees that as of the Business Day immediately preceding the Waiver and Third Amendment Effective Date, the aggregate
principal balance of the outstanding Obligations, including the outstanding LC Obligations, under the Loan Agreement is at least
$26,936,885.28. The foregoing amount does not include interest, fees, expenses and other amounts that are chargeable or otherwise
reimbursable under the Loan Agreement and the other Loan Documents.

 

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(b)      Each
Obligor acknowledges and agrees that (i) each of the Specified Defaults constitutes an Event of Default that has occurred and
is continuing as of the date hereof, (ii) none of the Specified Defaults has been cured as of the date hereof, and (iii)
except for the Specified Defaults, no other Events of Default have occurred and are continuing as of the date hereof. Prior
to the effectiveness of this Waiver and Third Amendment, each of the Specified Defaults permits the Lenders to, among other
things, (i) terminate its commitment to extend any Loan or provide other financial accommodations under the Loan Agreement or
other Loan Documents, (ii) charge default interest pursuant to Section 3.1 of the Loan Agreement (the “Default
Rate”) with respect to any and all of the Obligations effective from and after September 30, 2017, the date of the
first Current Default to occur, on a retroactive basis, (iii) commence any legal or other action to collect any or all of the
Obligations from Obligors, and/or any Collateral, (iv) foreclose or otherwise realize on any or all of the Collateral and/or
appropriate, set-off and apply to the payment of any or all of the Obligations, any or all of the Collateral, and/or (v)
take any other enforcement action or otherwise exercise any or all rights and remedies provided for by any or all of the Loan
Agreement, the other Loan Documents or applicable law.

 

SECTION
3.           Limited Waiver. Subject to the terms and
conditions set forth herein, and reliance upon the representations and warranties of the Obligors, the Agent and the Lenders
hereby waive the Specified Defaults. Nothing in this Waiver and Third Amendment shall be construed to (i) constitute a
waiver with respect to any other default or non-compliance by the Obligors with respect to the Loan Documents; or (ii) impair
any right or remedy that the Agent or Lenders may now have or may have in the future under or in connection with any default
or non-compliance under any Loan Document other than the Specified Defaults.

 

SECTION 4.            Additional
Agreements. The parties hereto hereby agree to comply with the following terms, conditions and covenants.

 

(a)      Financial
Advisor. Until the Obligors have complied with Section 4(c) herein, the Obligors shall continue to retain the Financial Advisor.

 

(b)      13-Week
Forecast. The Obligors shall deliver to the Agent no later than September 15, 2018, a thirteen (13)-week cash forecast prepared
by the Financial Advisor in a form and substance acceptable to Agent. The report at a minimum will include: (i) variance reporting,
comparing actual amounts to forecasted amounts; (ii) cash receipts; (iii) expenditures detailed category; (iv) ending Book Cash;
and (v) the value of the Eligible Accounts and the Eligible Inventory as reflected on the Borrowing Base Reports delivered to
the Agent pursuant to Section 8.1 of the Loan Agreement. Beginning September 15, 2018, the Obligors shall deliver to the Agent,
as soon as available, but in any event no later than the Wednesday following the end of each week, a thirteen (13)-week cash forecast
prepared by the Financial Advisor in a form and substance acceptable to Agent reflecting variance reporting, comparing actual
amounts to forecasted amounts.

 

(c)      Chief
Restructuring Officer. No later than September 21, 2018, Obligors shall retain a chief restructuring officer acceptable, and
on terms and conditions acceptable, to the Agent and Lenders in their reasonable discretion.

 

(d)      Term Lender
Reports. Obligors shall simultaneously deliver to Agent any report delivered to any Term Loan Lender or the Term Loan Agent
by any Obligor or representative of any Obligor.

 

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(e)      Equity
Financing. On the Waiver and Third Amendment Effective Date, (the “First Equity Financing Deadline”),
(i) Hydrofarm Holdings Group, Inc., a Delaware Corporation (“Holdings Group”), is conducting a private
offering of up to $50,000,000 of securities of Holdings Group (the “Holdings Group Equity Raise”), and
(ii) Hydrofarm Investment Corp., a Delaware corporation (“HIC”), is conducting a concurrent private
offering of a minimum of $15,000,000 from existing investors of securities of HIC (the “HIC Concurrent
Investment,” and together with the Holding Group Equity Raise, the “Private Placements”), with
the HIC Concurrent Investment being a closing condition to the Holding Group Equity Raise. At the initial closing of the
Holdings Group Equity Raise, HIC will merge with a wholly-owned subsidiary of Holding Group, with HIC surviving as a
wholly-owned subsidiary of Holdings Group (the “Merger”). As a result of the Merger, each of the Obligors
will become an indirect, wholly- owned subsidiary of Holdings Group. The proceeds of the HIC Concurrent Investment and the
initial closing of the Holdings Group Equity Raise will be not less than $21,000,000, exclusive of (i) all fees and expenses
related to the HIC Concurrent Investment and (ii) payment of obligations on any Subordinated Debt in an amount not to exceed
$2,000,000. $11,000,000 of such proceeds will be distributed to the Borrowers on the First Equity Financing Deadline and the
remainder of such proceeds shall be distributed to the Borrowers no later than August 29, 2018 (the “Second Equity
Financing Deadline”). Subject to the foregoing, the Agent and the Lenders hereby consent to the Private Placements
and all transactions contemplated therewith, including, but not limited to, the termination of the management agreements
among Holdings, the Sponsor and the Co-Investor.

 

(f)       Minimum
Availability Covenant. From and after August 24, 2018, the Obligors shall not permit (A) the sum of (i) the U.S. Availability
(as defined in the Loan Agreement), plus (ii) the aggregate amount of Book Cash and cash equivalents on hand of the Obligors that
are located in a deposit account at Bank of America in the United States and which are subject to a perfected lien in favor of
the Agent for the benefit of the Lenders to be less than $2,000,000; or (B) the sum of (i) the Global Availability (as defined
in the Loan Agreement), plus (ii) the aggregate amount of Book Cash and cash equivalents on hand of the Obligors that are located
in a deposit account at Bank of America in the United States and Canada and which are subject to a perfected lien in favor of
the Agent for the benefit of the Lenders to be less than $4,000,000.

 

(g)      Amendment
to Term Loan. Lenders and the Agent hereby consents to the entry by the Obligors into that certain Waiver and Amendment No.
3 to Credit Agreement, dated August 24, 2018, among the Term Loan Agent, each Term Loan Lender, and the Obligors, in the form
attached hereto as Exhibit A (the “Term Loan Waiver and Amendment No. 3”).

 

(h)      Amendment
Fee. An amendment fee in the amount of $100,000 (the “Waiver and Third Amendment Fee”) shall be fully earned
by the Agent and the Lenders and non-refundable as of the Waiver and Third Amendment Effective Date, and shall be paid by the
Obligors on the Waiver and Third Amendment Effective Date as a U.S. Base Rate Loan pursuant to Section 4.1(a)(ii) of the Loan
Agreement.

 

 

SECTION 5.           Conditions
Precedent. This Waiver and Third Amendment shall become effective and be deemed effective as of the date when, and only
when, all of the following conditions have been satisfied as determined in the Agent’s sole discretion (the date of such
effectiveness being herein called the “Waiver and Third Amendment Effective Date”):

 

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

 

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(b)       the Term Loan Agent
and each Term Loan Lender shall have entered into the Term Loan Waiver and Amendment No. 3 and the Obligors shall have delivered
a certified copy of such Term Loan Waiver and Amendment No. 3 to the Agent and each of the Lenders, and such Term Loan Waiver and
Amendment No. 3 shall be in form and substance acceptable to the Agent;

 

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

 

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

 

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

 

(f)        the Agent shall have
received revised Schedules 8.5, 9.14, 10.2.1 to the Loan Agreement;

 

(g)       the Obligors shall
have used the net proceeds of the Equity Financing in an amount not less than $21,000,000 to pay down the Revolving Loan Obligations
of the Obligors; and

 

(h)       the Agent shall have
received a closing certificate executed by a Senior Officer of the Borrower Agent, certifying that the conditions set forth in
this Section 5 have been satisfied.

 

SECTION 6.              Amendments to Loan Agreement.

 

(a)        Effective as of the
Waiver and Third Amendment Effective Date, the following definitions in Section 1.1 of the Loan Agreement are hereby amended and
restated to read in their entirety as follows:

 

Applicable Margin:
the margin set forth below, as determined by the Average Global Availability for the last Fiscal Quarter:

 

	 	Average	Canadian Prime Rate	Canadian BA Rate	 
	Level	Global	Revolver Loans, Canadian	Revolver Loans,	 
	Availability As	Base Rate Revolver Loans	Canadian LIBOR	 
	 	a Percentage of	and U.S. Base Rate	Revolver Loans and	 
	 	Revolver	Revolver Loans	U.S. LIBOR Revolver	 
	 	Commitments	 	Loans	 
	 	 	 	 	 
	I	> $33,600,000	1.25%	2.00%
	 	 	 	 
	II	> $13,200,000	1.50%	2.25%
	 	and	 	 
	 	< $33,600,000	 	 
	 	 	 	 
	III	< $13,200,000	1.75%	2.50%
	 	 	 	 

 

 

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The Applicable
Margin shall be at Level III through December 31, 2018. Thereafter, margins shall be subject to increase or decrease by Agent on
the first day of the calendar month following each Fiscal Quarter end based upon Average Global Availability for the Fiscal Quarter
then ended. If Agent is unable to calculate Average Global Availability for a Fiscal Quarter due to Borrowers’ failure to
deliver any Borrowing Base Report when required hereunder, then, at the option of Agent or Required Lenders, margins shall be determined
as if Level III were applicable until the first day of the calendar month following its receipt.

 

Canadian
Availability Reserve: the sum (without duplication) of (a) the Inventory Reserve with respect to Canadian Borrowers; (b) the
Rent and Charges Reserve related to the locations of Canadian Borrowers; (c) the Canadian Bank Product Reserve; (d) all accrued
Royalties, then due and payable by Canadian Borrowers; (e) the aggregate amount of liabilities secured by Liens upon the ABL Priority
Collateral of Canadian Borrowers that are senior to Agent’s Liens (but imposition of any such reserve shall not waive an
Event of Default arising therefrom); (f) the Dilution Reserve applicable to the Accounts of Canadian Borrowers; (g) the Canadian
Priority Payables Reserve; (h) until the earlier of (x) December 31, 2019 or (y) the date on which Borrowers request that the financial
covenant under Section 10.3(b) be tested, a reserve equal to all accounts payable of Canadian Borrowers which are more than
90 days past due, excluding any such past due accounts payable to be paid in accordance with a contractual payment schedule with
a vendor so long as the Canadian Borrowers comply with such payment schedule; and (i) such additional reserves, in such amounts
and with respect to such matters related to Canadian Obligors, as Agent in its Permitted Discretion may elect to impose from time
to time.

 

Canadian
Borrowing Base: on any date of determination, the Dollar Equivalent amount equal to (1) the lesser of (a) (i) the
aggregate Canadian Revolver Commitments, minus (ii) the Canadian Availability Reserve; or (b) the sum of (i) the
Canadian Accounts Formula Amount, plus (ii) the Canadian Inventory Formula Amount, minus (iii) the Canadian
Availability Reserve, minus (2) that portion of the Line/Collateral Reserve allocated to the Canadian Borrowing Base
by the Agent.

 

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Canadian
Inventory Formula Amount: the lesser of (i) up to 70% of the Value of Eligible Inventory of Canadian Borrowers, (ii) 85% of
the NOLV Percentage of the Value of Eligible Inventory of Canadian Borrowers or (iii) $7,000,000, minus the amount of the
U.S. Inventory Formula that is in excess of $26,000,000.

 

EBITDA:
for any period, determined on a consolidated basis for Holdings and its Subsidiaries, Consolidated Net Income for such measurement
period, plus, (a) to the extent deducted from Consolidated Net Income for such period and without duplication:

 

		(i)	Consolidated Interest Expense for such period,

 

		(ii)	Consolidated Amortization Expense during such period,

 

		(iii)	Consolidated Depreciation Expense during such period,

 

		(iv)	Consolidated Tax Expenses paid or accrued during such period and, without duplication, the amount
of any Tax Distributions made in cash during such period,

 

		(v)	non-recurring fees and expenses paid in cash in connection with Existing Acquisition, this credit
facility, the Loan Documents and the Term Loan Facility, in an aggregate amount (for all periods in the aggregate) not to exceed
$6,000,000,

 

		(vi)	any non-cash losses arising from the sale of capital assets during such period,

 

		(vii)	extraordinary non-cash losses with respect to such period (other than with respect to the write-downs
of Accounts or Inventory),

 

		(viii)	the aggregate amount of management fees and reimbursement and indemnification payments accrued
or paid to Sponsor or its Affiliates for such period prior to the Waiver and Third Amendment Effective Date, to the extent such
payments are permitted to be paid or accrued pursuant to the terms hereof and of the Management Agreement;

 

		(ix)	transaction fees, costs, and expenses incurred in connection with Permitted Acquisitions (whether
or not consummated) in an aggregate amount not to exceed (x) $750,000 in any twelve-month period that includes the Closing Date
Acquisition and the closing of this Agreement and
(y) $500,000 in any twelve-month period that does not include the Closing Date Acquisition and the closing of this Agreement,

 

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		(x)	to the extent actually reimbursed in cash from insurance proceeds, the amount of expenses for such
period with respect to any business interruption,

 

		(xi)	non-recurring costs and expenses incurred between the Initial Closing Date and the second anniversary
thereof in connection with the integration and implementation of streamlining and efficiency strategies; provided, that,
(i) the anticipated cost saving benefits of such costs and expenses are (x) reasonably identifiable, factually supportable and
certified in writing by a Senior Officer of Borrower Agent, and (y) reasonably expected by Borrowers to be realized within 12 months
following such operational initiative, and (ii) the aggregate amount of such costs and expenses do not exceed $2,500,000 (for all
periods in the aggregate),

 

		(xii)	other non-recurring fees and expenses approved by Agent in its Permitted Discretion so long as,
and only to the extent that, such other non-recurring fees and expenses are similarly being added to “Consolidated EBITDA”
under the Term Loan Facility pursuant to clause (a)(xii) of the definition of “Consolidated EBITDA” set forth in the
Term Loan Facility,

 

		(xiii)	fees, costs and expenses incurred solely in connection with the Revolving Loan Forbearance Agreements
and the Term Loan Forbearance Agreements, including forbearance fees, legal fees and expenses, fees and expenses paid to consultants,
accountants and other professionals, but excluding the cost of any audits, appraisals or examinations required under this Agreement,

 

		(xiv)	fees, costs and expenses incurred solely in connection with this Waiver and Third Amendment and
the Term Loan Waiver and Third Amendment, including amendment fees, legal fees and expenses, fees and expenses paid to consultants,
accountants and other professionals, and

 

		(xv)	the amount of business restructuring charges and fees, costs and expenses incurred between July
1, 2018 and December 31, 2019; provided, that such amount shall not exceed $4,750,000 in the aggregate,

 

and minus, (b) to the extent included in Consolidated
Net Income for such period and without duplication,

 

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		(i)	any non-cash gains arising from the sale of capital assets during such period,

 

		(ii)	any non-cash gains arising from the write-up of assets (other than with respect to Accounts or
Inventory), and

 

		(iii)	any non-cash extraordinary gains during such period.

 

Eligible
Inventory: Inventory owned by a Borrower that Agent, in its Permitted Discretion, deems to be Eligible Inventory. Without
limiting the foregoing, no Inventory shall be Eligible Inventory unless it (a) is finished goods or raw materials, and not
work in process, packaging or shipping materials, labels, samples, display items, bags, replacement parts or manufacturing
supplies; (b) is not held on consignment, nor subject to any retention of title, conditional sale or similar arrangements nor
subject to any deposit or down payment; (c) is in new and saleable condition and is not damaged, defective, shopworn or
otherwise unfit for sale; (d) is not slow-moving, perishable, obsolete or unmerchantable, and does not constitute returned or
repossessed goods; (e) meets all standards imposed by any Governmental Authority, has not been acquired from a Person subject
to any Sanction or on any specially designated nationals list maintained by OFAC or similar list maintained by the Government
of Canada, and does not constitute hazardous materials under any Environmental Law; (f) conforms with the covenants and
representations herein; (g) is subject to Agent’s duly perfected, first priority Lien, and no other Lien, other than
those permitted pursuant to Section 10.2(b) (iii), (iv), (vi), (vii) and (xi); (h) is within the continental United States or
Canada, is not in transit except between locations of Borrowers, and is not consigned to any Person; (i) is not subject to
any warehouse receipt or negotiable Document; (j) is not located on premises where the aggregate Value of all such Inventory
located thereon is less than $100,000; (k) is not subject to any License or other arrangement that restricts such
Borrower’s or Agent’s right to dispose of such Inventory, unless Agent has received an appropriate Lien Waiver;
and (l) is not located on leased premises or in the possession of a warehouseman, processor, repairman, mechanic, shipper,
freight forwarder or other Person, unless the lessor or such Person has delivered a Lien Waiver or an appropriate Rent and
Charges Reserve has been established. Without limiting the foregoing, Inventory that has not been sold within twelve months
of receipt thereof is not Eligible Inventory.

 

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Letter of
Credit Subline: with respect to U.S. Borrowers, $3,000,000, and with respect to Canadian Borrowers, $1,000,000.

 

Management
Agreements: The definition of Management Agreements shall be deleted in its entirety and all references to the Management Agreements
contained herein shall be deleted. The deletion of the definition of Management Agreement shall not affect the payment or receipt
of management fees accrued prior to the Waiver and Third Amendment Effective Date.

 

Revolver
Termination Date: February 10, 2022; provided, however, that, if such date is not a Business Day, the Revolver
Termination Date shall be the immediately preceding Business Day.

 

Specified
Transaction Conditions: with respect to any Specified Transaction, both before and after giving pro forma effect to any
such Specified Transaction, either of the following is true: (i) no Default or Event of Default has occurred and is
continuing or would result therefrom, (ii) (A) Global Availability is at least equal to 20.0% of the Revolver Commitment for
each of the 30 days preceding and as of the date of such Specified Transaction and (B) the Fixed Charge Coverage Ratio
calculated both before and, on a Pro Forma Basis, after giving pro forma effect to such Specified Transaction is not less
than 1.1 to 1.0, whether or not a Financial Covenant Trigger Period exists.

 

Unused Line
Fee Rate: if the average daily Revolver Usage is (a) greater than 50% of the Revolving Commitment, a per annum rate equal to
0.375%, or (b) less than or equal to 50% of the Revolving Commitment, a per annum rate equal to 0.5%.

 

U.S. Availability Reserve: the sum
(without duplication) of (a) the Inventory Reserve with respect to U.S. Borrowers; (b) the Rent and Charges Reserve related
to the locations of U.S. Borrowers; (c) the U.S. Bank Product Reserve; (d) all accrued Royalties, then due and payable by a
U.S. Obligor; (e) the aggregate amount of liabilities secured by Liens upon the ABL Priority Collateral of U.S. Borrowers
that are senior to Agent’s Liens (but imposition of any such reserve shall not waive an Event of Default arising
therefrom); (f) the Dilution Reserve applicable to the Accounts of U.S. Borrowers; (g) until the earlier of (x) December 31,
2019 or (y) the date on which Borrowers request that the financial covenant under Section 10.3(b) be tested, a reserve
equal to all accounts payable of U.S. Borrowers which are more than 90 days past due, excluding any such past due accounts
payable to be paid in accordance with a contractual payment schedule with a vendor so long as the U.S. Borrowers comply with
such payment schedule; and (h) such additional reserves, in such amounts and with respect to such matters related to U.S.
Obligors, as Agent in its Permitted Discretion may elect to impose from time to time.

 

    10

     

    

 

U.S.
Borrowing Base: on any date of determination, an amount equal to (1) the lesser of (a) (i) the aggregate U.S. Revolver Commitments,
minus (ii) Canadian Revolver Usage, minus (iii) the U.S. Availability Reserve, or (b) the sum of (i) the U.S. Accounts
Formula Amount, plus (ii) the U.S. Inventory Formula Amount, plus (iii) the U.S. FILO Availability Amount, minus
(iv) Canadian Revolver Usage; minus (v) the U.S. Availability Reserve, minus (2) that portion of the Line/Collateral
Reserve allocated to the U.S. Borrowing Base by the Agent.

 

U.S. Inventory
Formula Amount: the lesser of (i) up to 70% of the Value of Eligible Inventory of U.S. Borrowers, (ii) 85% of the NOLV Percentage
of the Value of Eligible Inventory of U.S. Borrowers, or (iii) $26,000,000 or such greater amount, not to exceed $33,000,000, as
determined by the U.S. Borrowers in the U.S. Borrowers’ Borrowing Base Reports.

 

(b)          Effective as of the Waiver and Third
Amendment Effective Date, Section 1.1 of the Loan Agreement is hereby amended to add the following new definitions:

 

Equity Cure:
for any period that any of the Obligors breach the financial covenants set forth in Section 10.3, a new cash equity contribution
to the equity of the Obligors made within thirty (30) days of the financial statement date (without regard to the date the financial
statement is actually delivered to Agent) reflecting the breach of any financial covenants set forth in Section 10.3 (“Financial
Statement Date”), which new cash equity contribution shall be not less than $1,000,000, provided that, the Obligors
have also satisfied or caused the satisfaction of the following conditions:

 

(a)       On
or prior to the date of delivery of the applicable financial statement as otherwise required under Section 10.1 reflecting
the breach of a financial covenant set forth in Section 10.3, Agent is notified in writing by Obligors whether in fact there
will be an Equity Cure of such Default; and

 

(b)       the
cash equity necessary to make the Equity Cure is funded to the Dominion Account within thirty (30) days of the Financial Statement
Date (such thirty-day period being referred to herein as the “Cure Period”).

 

Line/Collateral
Reserve: the aggregate amount of $1,000,000, which shall be allocated by Agent to either the U.S. Borrowing Base and/or the
Canadian Borrowing Base.

 

    11

     

    

 

Revolving Loan
Forbearance Agreements : that certain Forbearance Agreement and First Amendment to Amended and Restated Loan and Security Agreement,
dated as of May 18, 2018, by and among the Obligors, the Agent and the Lenders signatory thereto, that certain First Amendment
to Forbearance Agreement and Second Amendment to Amended and Restated Loan and Security Agreement dated as of July 16, 2018, by
and among the Obligors, the Agent and the Lenders signatory thereto, that certain Second Amendment to Forbearance Agreement dated
as of August 15, 2018 by and among the Obligors and the Agent and the Lenders signatory thereto, and that certain Third Amendment
to Forbearance Agreement dated as of August 22, 2018 by and among the Obligors, the Agent and the Lenders signatory thereto, each
as has been or may be amended, restated, supplemented or otherwise modified from time to time.

 

Term Loan Forbearance
Agreements: that certain Forbearance Agreement and Amendment, dated as of May 18, 2018 by and among the Obligors, the Term
Loan Agent and each Term Loan Lender, that certain Amendment No. 1 to Forbearance Agreement dated as of July 16, 2018 by and among
the Obligors, the Term Loan Agent and each Term Loan Lender, that certain Amendment No. 2 to Forbearance Agreement dated as of
August 15, 2018 by and among the Obligors, the Term Loan Agent and each Term Loan Lender, and that certain Amendment No. 3 to Forbearance
Agreement dated as of August 22, 2018 by and among the Obligors, the Term Loan Agent and each Term Loan Lender, each as has been
or may be amended, restated, supplemented or otherwise modified from time to time.

 

(c)           Effective as of the Waiver and
Third Amendment Effective Date, Section1.1  of the Loan Agreement is amended to delete the definition of “Cash
Dominion Trigger Period” in its entirety.

 

(d)           Effective as of the Waiver and
Third Amendment Effective Date, footnote 5 included on Schedule 1.1 of the Loan Agreement is amended and restated in its
entirety as follows:

 

5
Canadian Revolver Commitment is a sublimit of the U.S. Revolver Commitment of Bank of America and is not in addition thereto.
The Canadian Revolver Commitment is provided by Bank of America – Canada Branch. The Agent may increase the Canadian Revolver
Commitment to $15,000,000 in its sole discretion subject to any amendments as may be necessary to the Intercreditor Agreement.

 

    12

     

    

 

(e)          Effective as of the Waiver and Third Amendment
Effective Date, clause (c) of Section 2.1 is hereby amended and restated in its entirety as follows:

 

(c)  Use
of Proceeds. The proceeds of Revolver Loans shall be used by Borrowers solely (i) to pay Obligations in accordance with this
Agreement; and (ii) for working capital purposes until otherwise consented to by Agent in writing. Borrowers shall not, directly
or indirectly, use any Letter of Credit or Revolver Loan proceeds, nor use, lend, contribute or otherwise make available any Letter
of Credit or Revolver Loan proceeds to any Subsidiary, joint venture partner or other Person, (x) to fund any activities of or
business with any Person, or in any Designated Jurisdiction, that, at the time of issuance of the Letter of Credit or funding of
the Revolver Loan, is the subject of any Sanction; (y) in any manner that would result in a violation of a Sanction by any Person
(including any Secured Party or other individual or entity participating in a transaction); or (z) for any purpose that would breach
the U.S. Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, the Corruption of Foreign Public Officials Act (Canada)
or similar Applicable Law in any jurisdiction.

 

(f)           Effective as of the Waiver and Third
Amendment Effective Date, Section 2.1 is hereby amended to add the following clause (g):

 

(g) Increase in Revolver
Commitments. Borrowers may request a one-time increase in Revolver Commitments from time to time upon notice to Agent, as
long as (a) the requested increase is in the amount of $10,000,000 and is offered on the same terms as existing Revolver
Commitments, except for a closing fee specified by Borrowers, and (b) such increase is permitted under the terms of the
Intercreditor Agreement. Agent shall promptly notify Lenders of the requested increase and, within 10 Business Days
thereafter, each Lender shall notify Agent if and to what extent such Lender commits to increase its Revolver Commitment. Any
Lender not responding within such period shall be deemed to have declined an increase. If Lenders fail to commit to the full
requested increase, Eligible Assignees may issue additional Revolver Commitments and become Lenders hereunder. Agent may
allocate, in its discretion, the increased Revolver Commitments among committing Lenders and, if necessary, Eligible
Assignees. Provided the conditions set forth in Section 6.2 are satisfied, total Revolver Commitments shall be increased by
the requested amount (or such lesser amount committed by Lenders and Eligible Assignees) on a date agreed upon by Agent and
Borrower Agent, but no later than 45 days following Borrowers' increase request. Agent, Borrowers, and new and existing
Lenders shall execute and deliver such documents and agreements as Agent deems appropriate to evidence the increase in and
allocations of Revolver Commitments. On the effective date of an increase, the Revolver Usage and other exposures under the
Revolver Commitments shall be reallocated among Lenders, and settled by Agent as necessary, in accordance with Lenders'
adjusted shares of such commitments.

 

    13

     

    

 

(g)           Effective as of the Waiver and Third Amendment Effective Date, Section 5.7 of the Loan Agreement is
hereby amended and restated to read in its entirety as follows:

 

5.7          Dominion Account. The ledger balance in the main Dominion Account of each Borrower as of the end of a Business Day shall
be applied to the applicable Obligations of such Borrower at the beginning of the next Business Day. Any resulting credit balance
shall not accrue interest in favor of Borrowers and shall be made available to Borrowers as long as no Default or Event of Default
exists.

 

(h)            Effective as of the Waiver and Third Amendment Effective Date, Section 8.1(b) of the Loan Agreement
is hereby amended and restated to read in its entirety as follows:

 

		8.1.	Borrowing Base Reports.

 

(b)         U.S.
Borrowers. Every Business Day, by 10:00 a.m. (Pacific Standard Time) on each Business Day, U.S. Borrowers shall deliver
to Agent a U.S. Borrowing Base Report as of the close of business of the previous day, and at such other times as Agent may
request in its Permitted Discretion, provided that, after thirty (30) consecutive days during which the U.S.
Availability is greater than $5,000,000, U.S. Borrowers shall deliver U.S. Borrowing Base Reports every week, on or prior to,
the Tuesday of each week (or, if Tuesday is not a Business Day, the first Business Day thereafter), and at such other times
as Agent may request in its Permitted Discretion. All information (including calculation of U.S. Availability and Global
Availability) in a U.S. Borrowing Base Report shall be certified by U.S. Borrowers. Agent may from time to time in its
Permitted Discretion adjust any such report (i) to reflect Agent’s reasonable estimate of declines in value of ABL
Priority Collateral, due to collections received in the Dominion Account or otherwise; (ii) to adjust advance rates to
reflect changes in dilution, quality, mix and other factors affecting ABL Priority Collateral; and (iii)   to the
extent any information or calculation does not comply with this Agreement.

 

(i)             Effective as of the Waiver and Third Amendment Effective Date, clauses (a)  and (d) of Section
8.2 of the Loan Agreement are hereby amended and restated to read in their entirety as follows:

 

    14

     

    

 

		8.2	Accounts.

 

(a)        
Records and Schedules of Accounts. Each Obligor shall keep accurate and complete records of its Accounts, including all
payments and collections thereon, and shall submit to Agent sales, collection, reconciliation and other reports in form reasonably
satisfactory to Agent, on such periodic basis as Agent may request in its Permitted Discretion. Each Obligor shall also provide
to Agent, on or before the 15th day of each calendar month, a detailed aged trial balance of all Accounts as of the end of the
preceding calendar month, specifying each Account’s Account Debtor name and address, amount, invoice date and due date, showing
any discount, allowance, credit, authorized return or dispute, and including such proof of delivery, copies of invoices and invoice
registers, copies of related documents, repayment histories, status reports and other information as Agent may request. If Accounts
in an aggregate face amount of $500,000 or more cease to be Eligible Accounts, Obligors shall notify Agent of such occurrence promptly
(and in any event within one Business Day) after any Obligor has knowledge thereof.

 

(d) 
       Maintenance of Dominion Account. Each Obligor shall maintain (i) all of its Deposit
Accounts, including for the maintenance of operating, lockbox administration, funds transfer, information reporting services and
other treasury management services, (other than Excluded Accounts) with Bank of America and its branches; provided, that
the Canadian Obligors shall have 120 days after the Closing Date (or such longer period as Agent may determine in its sole discretion)
to migrate its respective Deposit Accounts (other than Excluded Accounts) listed on Schedule 8.5 to Bank of America-Canada
Branch; and (ii) each of its Dominion Accounts with Bank of America pursuant to lockbox or other arrangements reasonably acceptable
to Agent. Each U.S. Obligor, and within 30 days after the Closing Date, each Canadian Obligor, shall obtain an agreement (in form
and substance reasonably satisfactory to Agent) from each lockbox servicer and each Deposit Account bank, establishing Agent’s
control over and Lien on the lockbox or Deposit Account, requiring immediate deposit of all remittances received in the lockbox
or Deposit Account to a Dominion Account, and waiving offset rights of such servicer or bank, except for customary administrative
charges. Agent and Lenders assume no responsibility to Obligors for any lockbox arrangement or Dominion Account, including any
claim of accord and satisfaction or release with respect to any Payment Items accepted by any bank.

 

    15

     

    

 

(j) Effective as of the Waiver and Third Amendment
Effective Date, Section 8.3(a) of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 

 

		8.3	Inventory.

 

(a)         Records
and Reports of Inventory. Each Obligor shall keep accurate and complete records of its Inventory, including costs and daily
withdrawals and additions, and shall submit to Agent inventory and reconciliation reports in form satisfactory to Agent, on or
before the 15th day of each calendar month or more frequently, as requested by Agent in its Permitted Discretion. Each Obligor
shall conduct a physical inventory at least once per calendar year (and on a more frequent basis if requested by Agent when an
Event of Default exists) and periodic cycle counts consistent with historical practices, and shall provide to Agent a report based
on each such inventory and count promptly upon completion thereof, together with such supporting information as Agent may request.
Agent may participate in and observe each physical count.

 

 

(k)           Effective as of the Waiver and Third Amendment
Effective Date, Section 8.4(a) of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

 

		8.4	Equipment.

 

(a)         Records
and Schedules of Equipment. Each Obligor shall keep accurate and complete records of its Equipment, including kind, quality,
quantity, cost, acquisitions and dispositions thereof, and shall submit to Agent, on such periodic basis as Agent may request,
but not more frequently than once per calendar month or more frequently during the continuation of an Event of Default or a Reporting
Trigger Period, a current schedule thereof, in form satisfactory to Agent in its Permitted Discretion. Promptly upon request,
Obligors shall deliver to Agent evidence of their ownership or interests in any material Equipment.

 

(l)            Effective as of the Waiver and Third Amendment
Effective Date, Section 10.1(a)(i) of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

 

    16

     

    

 

		10.1	Affirmative Covenants.

 

		(a)	Inspections; Appraisals.

 

(i)   Reimburse Agent for
all reasonable charges, costs and expenses of Agent in connection with (A) examinations of any Obligor’s books and
records or any other financial or Collateral matters as Agent deems appropriate, up to two times per Loan Year (or, during
any Collateral Trigger Period, such additional times as Agent deems appropriate); and (B) appraisals of Inventory up to two
times per Loan Year (or, during any Collateral Trigger Period, such additional times as Agent deems appropriate); provided,
however, that on and after January 1, 2020, each Obligor shall reimburse Agent for such charges, costs and expenses of Agent,
up to one time per Loan Year for such examinations and up to one time per Loan Year for such appraisals (or, during any
Collateral Trigger Period, such additional times as Agent deems appropriate); provided, however, that if an examination or
appraisal is initiated during a Default or Event of Default (or as a result of a Collateral Trigger Period), all charges,
costs and expenses therefor shall be reimbursed by Obligors without regard to such limits. Obligors agree to pay
Agent’s then standard charges for examination activities, including the standard charges of Agent’s internal
examination and appraisal groups, as well as the charges of any third party used for such purposes. No Borrowing Base
calculation shall include Collateral acquired in a Permitted Acquisition or otherwise outside the Ordinary Course of Business
until completion of applicable field examinations and appraisals (which shall not be included in the limits provided above)
satisfactory to Agent.

 

(m)          Effective as of the Waiver and Third Amendment
Effective Date, Section 10.1(b)(iii) of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

 

(iii)       concurrently
with delivery of financial statements under clauses (i) and (ii) above, or more frequently if requested by Agent
while a Financial Covenant Trigger Period is in effect, a Compliance Certificate executed by the chief financial officer of Borrower
Agent;

 

(n)          Effective as of the Waiver and Third Amendment Effective Date, Section 10.1 of the Loan Agreement is
hereby amended to add the following new clause (n):

 

(n)        Capital Infusion.
By no later than August 24, 2018, Borrowers shall obtain the net proceeds of an equity infusion in an aggregate amount not less
than $11,000,000 and by no later than August 29, 2018, Borrowers shall obtain the net proceeds of an equity infusion in an aggregate
amount not less than $10,000,000, as set forth in Section 4(e) of the Waiver and Third Amendment, each of which equity infusions
shall be on terms and conditions satisfactory to Agent.

 

    17

     

    

 

 

(o)         Effective as of the Waiver and Third Amendment
Effective Date, Section 10.2(h)(ii) of the Loan Agreement is hereby amended and restated to read in its entirety :

 

		(h)	Restrictions on Payment of Certain Debt. 

 

(ii)         
Term Loan Obligations except (A) any such payments (other than voluntary prepayments, which are governed by clause (B) below)
to the extent such payments are not prohibited from being paid pursuant to the terms of the Intercreditor Agreement and (B) voluntary
prepayments on or after January 1, 2020, provided, that, (x) the Borrowers shall have delivered the financial statements
as of, and for the fiscal year ending, December 31, 2019, in compliance with Section 10.1(b)(i), (y) the Fixed Charge Coverage
Ratio of the Borrowers as of the last day of two consecutive fiscal quarters of the Borrowers beginning with the fiscal quarter
ending on December 31, 2019 and prior to the voluntary prepayment shall have been not less than 1.10:1:00, and (z) the Specified
Transaction Conditions are satisfied in connection therewith;

 

(p)          Effective as of the Waiver and Third
Amendment Effective Date, Section 10.2 of the Loan Agreement is hereby amended to add the following new clauses (u) and (v):

 

(u)          Permit fees, costs and expenses incurred in connection with the business restructuring of the Obligors to exceed, in the aggregate,
$4,750,000 for the period of July 1, 2018, through December 31, 2019.

 

(v)          Permit any of the Obligors to make payment with respect to fees, costs and expenses incurred in connection with the Private Placements.

 

(q)          Effective as of the Waiver and Third
Amendment Effective Date, Section 10.3 of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

 

10.3.             
Financial Covenants. As long as any Revolver Commitments or Obligations are outstanding, Obligors shall:

 

(a)         commencing with the measurement date
of July 31, 2018 and continuing until the earlier of (x) December 31, 2019 or (y) the date on which Borrowers request that the
financial covenant under clause (b) be tested, maintain EBITDA measured monthly as of the last day of each month on a period to
date basis commencing on July 1, 2018 for each measurement date occurring on or before June 30, 2019 and on a trailing 12-month
basis thereafter, to be no less than the amounts set forth in the table below; and

 

	Month Ending	 	Minimum EBITDA	 
	July 31, 2018	 	-$	2,801,000	 
	August 31, 2018	 	-$	3,580,000	 
	September 30, 2018	 	-$	4,255,000	 
	October 31, 2018	 	-$	4,107,000	 
	November 30, 2018	 	-$	3,577,000	 
	December 31, 2018	 	-$	3,157,000	 
	January 31, 2019	 	-$	2,303,000	 
	February 28, 2019	 	-$	1,627,000	 
	March 31, 2019	 	$	178,000	 
	April 30, 2019	 	$	1,341,000	 
	May 31, 2019	 	$	2,365,000	 
	June 30, 2019	 	$	3,194,000	 
	July 31, 2019	 	$	5,296,000	 
	August 31, 2019	 	$	6,952,000	 
	September 30, 2019	 	$	8,450,000	 
	October 31, 2019	 	$	9,497,000	 
	November 30, 2019	 	$	10,372,000	 
	December 31, 2019	 	$	11,135,000	 

 

    18

     

    

 

(b)         commencing
on the earlier of, and continuing for all measurement dates thereafter, (x) January 1, 2020 or (y) the measurement date on which
Borrowers request that the financial covenant under this clause (b) be tested, maintain a Fixed Charge Coverage Ratio for each
12 month period ending on the date of measurement of at least 1.0 to 1.0.

 

(r)          Effective as of the Waiver and
Third Amendment Effective Date, Section 11.1(c) of the Loan Agreement is hereby amended and restated to read in its entirety as
follows:

 

(c)         An Obligor
breaches or fails to perform any covenant contained in Section 7.2, 7.3, 7.4, 8.1, 8.2(d), 8.2(e), 8.6(b), 10.1(a), 10.1(b) (other
than clauses (vii), (viii) and (ix) therein), 10.1(m), 10.1(n), 10.2, 10.3 or 14.19, provided that as to 10.3, breaches
thereunder are subject to an Equity Cure but which may not be exercised more than (i) three times in any trailing twelve month
period; (ii) five times on and before the Revolver Termination Date; and (iii) two times during two consecutive calendar months,
in each case, for all breaches of for all breaches of Section 10.3 in the aggregate;

 

SECTION 7.              Representations
and Warranties. Each of the Obligors, jointly and severally, represents and warrants (which representations and warranties
shall survive the execution and delivery hereof) to the Lenders and the Agent that:

 

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

 

    19

     

    

 

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

 

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

 

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

 

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

 

SECTION 8.              Acknowledgment and Reaffirmation

 

(a)          Acknowledgment
of Debts. Each of the Obligors, jointly and severally, hereby acknowledges, agrees, confirms, reaffirms and stipulates that:

 

(i)           interest
has accrued on the Obligations since May 18, 2018 at the Default Rate under the Loan Documents, is due and payable and shall be
paid by the Obligors on the Waiver and Third Amendment Effective Date as a U.S. Base Rate Loan pursuant to Section 4.1(a)(ii) of
the Loan Agreement.

 

(ii)          fees,
late fees, reimbursable and indemnifiable amounts, and other amounts have accrued under each of the Loan Documents and shall continue
to accrue and be payable pursuant to the Loan Documents;

 

(iii)         effective
as of the Waiver and Third Amendment Effective Date, the Waiver and Third Amendment Fee shall be fully earned by the Lenders and
shall be paid by the Obligors on the Waiver and Third Amendment Effective Date as a U.S. Base Rate Loan pursuant to Section 4.1(a)(ii)
of the Loan Agreement.

 

(iv)         all
of the Obligations, including, without limitation, the Obligations described in the foregoing clauses (i) through (iii),
are (or, in the case of clause (iii), from and after the Waiver and Third Amendment Effective Date will be) unconditionally
owing by the Obligors to the Lenders and the Agent without offset, defense or counterclaim of any kind, nature or description
whatsoever.

 

    20

     

    

 

(b)         Acknowledgment of Guaranties. Each of
the Obligors, jointly and severally, hereby acknowledges, agrees, confirms, reaffirms and stipulates:

 

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

 

(ii)          (x) to
the validity, legality and enforceability of each of the Agent’s Liens on the assets and property of each of the Obligors
pursuant to the Loan Documents;

(y) that the reaffirmation of
each of the Agent’s Liens is a material inducement to the Lenders and the Agent; and (z) that it has no defense to the enforcement
of each of the Agent’s Liens, and the Agent’s Liens shall remain in full force and effect until all the Obligations
have been paid in full;

 

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

 

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

 

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

 

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

 

    21

     

    

 

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

 

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

 

(ix)           neither
any Lender nor the Agent is required to make any loan advance to any Obligor under the Loan Documents or otherwise, and any further
loan advances made shall be made in the sole discretion of each such Lender and the Agent and subject to such conditions and the
payment of such fees as each such Lender and the Agent requires in their sole discretion.

 

SECTION 9.              Ratification; Waiver of
Defenses; Indemnity and Release.

 

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

 

(b)          Release.

 

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

 

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

 

    22

     

    

 

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

 

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

 

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

 

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

 

(vi)         The waivers,
releases, and discharges in this Waiver and Third Amendment shall be effective on the Waiver and Third Amendment Effective Date
regardless of whether any post-Waiver and Third Amendment Effective Date conditions to this Waiver and Third Amendment are satisfied
and regardless of any other event that may occur or not occur after the date hereof.

 

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

 

    23

     

    

 

(d)         No Waiver.
This Waiver and Third Amendment shall be limited precisely as written and, except as expressly provided herein, shall not be deemed
(i) to be a consent granted pursuant to, or a (other than as set forth in Section 3 or Section 6) waiver, modification
or forbearance of, any term or condition of any of the Loan Documents or a waiver of any Default or Event of Default under any
of the Loan Documents (including, without limitation, the Specified Defaults), whether or not known to a Lender or the Agent, or
(ii) to prejudice any right or remedy which a Lender or the Agent may now have or have in the future under or in connection with
the Loan Documents or any of the instruments or agreements referred to therein. Subject to the waiver in respect of the Specified
Defaults set forth in Section 3 and the amendment set forth in Section 6, the Loan Documents shall continue in full
force and effect and are hereby ratified and confirmed.

 

(e)         Waiver of Defense.
Each of Obligors expressly acknowledges the occurrence and continued existence of the Specified Defaults. The Obligors, jointly
and severally, agree that each Lender and the Agent has no obligation (i) to grant the waiver contemplated by this Waiver and Third
Amendment, (ii) to enter into discussions with the Obligors with regard to waiving the Specified Defaults, or (iii) to enter into
any amendment or modification of the terms and provisions of any Loan Document, and any of the same shall be within the sole discretion
of each Lender and the Agent. Each of the Obligors, jointly and severally, acknowledge and agree, as a condition of the Lenders
and the Agent entering into this Waiver and Third Amendment, that it shall not raise any claim, cause of action or defense based
upon any allegations of failure of any Lender or the Agent to do or agree to do any of the foregoing, or failure of any Lender
or the Agent to negotiate in good faith to accomplish any of the same.

 

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

 

    24

     

    

 

(g)         Alternative
Dispute Resolution under California Law.

 

(i)           The reference
provisions of this Section 9(g) will be applicable only if the jury trial waiver set forth in Section 9(f) hereof is declared invalid
or unenforceable and the Agent determines in its sole discretion to proceed as set forth in this Section 9(g).

 

(ii)          Other
than (I) nonjudicial foreclosure of security interests in real or personal property, (II) the appointment of a receiver, or (III)
the exercise of other provisional remedies (any of which may be initiated pursuant to applicable law), each controversy, dispute
or claim (each, a “Disputed Claim”) between any or all of the parties hereto arising out of or relating to the Loan
Documents, which Disputed Claim is not settled in writing within 30 days after the “Claim Date” (the date on which
a party subject to the Loan Documents gives written notice to the other parties that a Disputed Claim exists), will be resolved
by a reference proceeding in California in accordance with the provisions of Section 638 et seq. of the California Code of Civil
Procedure, or their successor sections (“CCP”), which shall constitute the exclusive remedy for the resolution of any
Disputed Claim concerning the Loan Documents, including whether the Disputed Claim is subject to the reference proceeding. Except
as set forth in this Section 9(g), the parties hereto waive the right to initiate legal proceedings against each other concerning
such Disputed Claims. Venue for these reference proceedings will be in the courts of the State of California sitting in Los Angeles
County or such other venue as the parties may agree (the “Court”).

 

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

 

SECTION 10.            No Novation; Reservation of Rights.

 

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

 

(b)          Reservation of
Rights. Subject to Section 3 and Section 6, each Lender and the Agent reserves the right, in their sole discretion,
to exercise any or all rights or remedies under the Loan Documents, applicable law and otherwise as a result of any Events of Default,
other than the Specified Events of Default, arising under the Loan Documents that may be continuing on the Waiver and Third Amendment
Effective Date or any Default or Event of Default arising under the Loan Documents that may occur after the Waiver and Third Amendment
Effective Date, and neither any Lender nor the Agent has waived any of such rights or remedies and nothing in this Waiver and Third
Amendment, and no delay on any Lender’s or the Agent’s part in exercising such rights or remedies, should be construed
as a waiver of any such rights or remedies.

 

(c)           Notwithstanding anything
to the contrary set forth herein (including, without limitation, the provisions of Section 3), nothing in this Waiver and
Third Amendment shall prohibit, restrict or otherwise limit the right or ability of any Lender or the Agent to take any actions
that a Lender or the Agent may take under the Loan Documents, at law, in equity or otherwise to preserve and protect any assets
or properties of any Obligor that are subject to the Agent’s Liens or the interests (including the Agent’s Liens) of
the Lenders and the Agent in any such assets or properties, including, without limiting the generality of the foregoing, (i) the
filing of actions, or the defending of or intervention in actions (such as foreclosure proceedings) brought by any person or entity
(including any Obligor), relating to any such assets or properties or the interests of the Lenders and the Agent therein, (ii)
the sending of notices to any persons or entities concerning the existence of security interests or liens in favor of the Lenders
and the Agent relating to any such assets or properties or (iii) the filing of financing statements, and the taking of any other
required actions, to perfect or continue the perfection of the Agent’s Liens in such assets or properties.

 

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

 

    26

     

    

 

 

SECTION 11.             Further
Assurances. Each Obligor hereby agrees that each Obligor shall take such further action and shall execute and deliver
such additional documents and instruments (in recordable form, if requested) as the Lenders or the Agent may reasonably request
to effectuate the purposes and terms of this Waiver and Third Amendment and each of the other Loan Documents, including, without
limitation, any such instruments, assignments, conveyances or other documents as the Lenders or the Agent reasonably requests
to perfect or continue the Agent’s Liens on any assets or properties of any Obligor.

 

SECTION 12.             Counterparts.
This Waiver and Third Amendment may be executed by the parties hereto individually or in combination, in one or more counterparts,
each of which shall be an original and all of which shall constitute one and the same agreement. Delivery of an executed counterpart
of a signature page to this Waiver and Third Amendment by telecopier or electronic transmission (in pdf format) shall be effective
as delivery of a manually executed counterpart of this Waiver and Third Amendment.

 

SECTION 13.             Successors
and Assigns. The provisions of this Waiver and Third Amendment shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

 

SECTION 14.             Severability.
If any provision of this Waiver and Third Amendment shall be held invalid or unenforceable in whole or in part in any jurisdiction,
such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or enforceability without in any
manner affecting the validity or enforceability of such provision in any other jurisdiction or the remaining provisions of this
Waiver and Third Amendment in any jurisdiction.

 

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

 

SECTION 16.             Expenses.
The Obligors, joint and severally, agree to pay, or reimburse, the Agent for all expenses incurred in connection with the preparation
and negotiation of this Waiver and Third Amendment and related agreements and instruments and the transactions contemplated hereby,
including, but not limited to, the fees and expenses of counsel to the Agent.

 

SECTION 17.            Miscellaneous.
The parties hereto shall, at any time and from time to time following the execution of this Waiver and Third Amendment, execute
and deliver all such further instruments and take all such further action as may be reasonably necessary or appropriate in order
to carry out the provisions of this Waiver and Third Amendment.

 

SECTION 18.             Headings.
Section headings in this Waiver and Third Amendment are included for convenience of reference only and are not to affect the construction
of, or to be taken into consideration in interpreting, this Waiver and Third Amendment.

 

    27

     

    

 

SECTION 19.             Entire
Agreement. This Waiver and Third Amendment embodies the entire agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreement and understandings relating to the subject matter hereof. All prior statements,
representations and warranties, if any, of any Lender or the Agent in respect of the subject matter hereof, and all prior drafts
of this Waiver and Third Amendment, are totally superseded and merged into this Waiver and Third Amendment, which represents the
final and sole agreement of the parties hereto with respect to the matters which are the subject hereof. Each of the Obligors
hereby acknowledges and agrees that the execution and delivery of this Waiver and Third Amendment has not established any course
of dealing between the parties hereto.

 

[The remainder of this page left blank intentionally]

 

    28

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

    

     

    

 

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

 

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

 

	 	GS DISTRIBUTION INC.,
	 	a British Columbia corporation
	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name:	 Peter Wardenburg
	 	Title:	Manager

 

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

 

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

 

	 	Address:	2249 S. McDowell Boulevard

 Petaluma, CA 94954
	 	Attn:	Peter Wardenburg

 

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

 

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

 

SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

    

     

    

 

	AGENT AND LENDERS:	BANK OF AMERICA, N.A., as
	 	Agent and Lender
	 	 
	 	By:	/s/  Matthew R. Van Steenhuyse
	 	Name:	 Matthew R. Van Steenhuyse
	 	Title: 	Senior Vice President 

 

	 	Address: 	 
	 	Bank of America, N.A.
	 	333 S. Hope St, Suite 1900
	 	Los Angeles, CA 90071
	 	Attn:  Matthew R. Van Steenhuyse
	 	Facsimile: (877) 207-2581

 

    

     

    

  

	 	BANK OF AMERICA, N.A. (acting through
	 	its Canada Branch),
	 	as Canadian Lender 
	 	 
	 	By:	/s/ Sylwia Durkiewicz
	 	Name: 	Sylwia Durkiewicz
	 	Title: 	Vice President 

 

	 	Address: 	 
	 	   181 Bay Street, Suite 400
	 	Toronto, ON, M5J 2V8
	 	Attn:  Sylwia Durkiewicz
	 	Facsimile: (312) 453-4041

 

    

     

    

 

SCHEDULE I

 

Current Defaults

 

    

     

    

 

EXHIBIT A

 

Term Loan Waiver and Amendment No. 3Exhibit 10.6

 

FOURTH AMENDMENT
TO 

AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

This FOURTH AMENDMENT TO AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of March 15, 2019 (this “Fourth Amendment”), is made
and entered into by and among HYDROFARM HOLDINGS LLC, a Delaware limited liability company (“Holdings”),
HYDROFARM, LLC, a California limited liability company (“Hydrofarm”), EHH HOLDINGS, LLC, a Delaware
limited liability company (“EHH”), and SUNBLASTER LLC, a Delaware limited liability company (“SunBlaster”
and together with Hydrofarm and EHH, each, a “U.S. Borrower” and collectively, the “U.S. Borrowers”),
HYDROFARM CANADA, LLC, a Delaware limited liability company (“Hydrofarm Canada”), EDDI’S WHOLESALE
GARDEN SUPPLIES LTD., a British Columbia company (“Eddi”)) and SUNBLASTER HOLDINGS ULC, a British
Columbia unlimited liability company (“Sunblaster Canada”; together with GSD and Eddi, each, a “Canadian
Borrower” and collectively, the “Canadian Borrowers”; and together with U.S. Borrowers, each a “Borrower”
and collectively, the “Borrowers” and together with Holdings and Hydrofarm Canada, each an “Obligor”
and collectively the “Obligors”), and BANK OF AMERICA, N.A., a national banking association, as administrative
agent (in such capacity, “Agent”) for the financial institutions from time to time party to the Loan Agreement
described below (collectively, the “Lenders” and each individually a “Lender”) and the Lenders
signatory hereto.

 

R E C I T A L S

 

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

 

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

 

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

 

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

 

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

 

    

     

    

 

SECTION 2.               Amendments to Loan Agreement.

 

(a)           New Definition. The following
definitions are hereby added to Section 1.1 of the Loan Agreement in alphabetical order:

 

Fourth Amendment: that
certain Fourth Amendment to Amended and Restated Loan and Security Agreement dated as of March 15, 2019 by and among, each Obligor,
Lenders and Agent.

 

Fourth Amendment Availability Block: $2,500,000.

 

Fourth Amendment Effectiveness Date: March 15,
2019.

 

Sponsor Group: collectively,
means Hawthorn Equity Partners, Broadband Capital Investments, Serruya Private Equity, Peter Wardenburg and their affiliates, and
shareholders that have designated their voting rights to any of the Sponsor Group.

 

(b)          Amended Definitions. The following
definitions in Section 1.1 of the Loan Agreement are hereby amended and restated to read in their entirety as follows:

 

Applicable Margin: (i) with respect to Canadian
Prime Rate Revolver Loans, Canadian Base Rate Revolver Loans and U.S. Base Rate Revolver Loans, 2.00% and (ii) with respect to
Canadian BA Rate Revolver Loans, Canadian LIBOR Revolver Loans and U.S. LIBOR Revolver Loans, 3.00%.

 

Canadian
Availability Reserve: the sum (without duplication) of (a) the Inventory Reserve with respect to Canadian Borrowers; (b)
the Rent and Charges Reserve related to the locations of Canadian Borrowers; (c) the Canadian Bank Product Reserve; (d) all
accrued Royalties, then due and payable by Canadian Borrowers; (e) the aggregate amount of liabilities secured by Liens upon
the ABL Priority Collateral of Canadian Borrowers that are senior to Agent’s Liens (but imposition of any such reserve
shall not waive an Event of Default arising therefrom); (f) the Dilution Reserve applicable to the Accounts of Canadian
Borrowers; (g) the Canadian Priority Payables Reserve; (h) a reserve equal to all accounts payable of Canadian Borrowers
which are more than 90 days past due, excluding any such past due accounts payable to be paid in accordance with a
contractual payment schedule with a vendor so long as the Canadian Borrowers comply with such payment schedule; and (i) such
additional reserves, in such amounts and with respect to such matters related to Canadian Obligors, as Agent in its Permitted
Discretion may elect to impose from time to time.

 

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Canadian Borrowing
Base: on any date of determination, the Dollar Equivalent amount equal to the lesser of (a) (i) the aggregate Canadian Revolver
Commitments, minus (ii) the Canadian Availability Reserve; or (b) the sum of (i) the Canadian Accounts Formula Amount, plus
(ii) the Canadian Inventory Formula Amount, minus (iii) the Canadian Availability Reserve.

 

Change of Control:
(a) Holdings ceases to own and control, beneficially and of record, directly or indirectly, all of the Equity Interests in a Borrower
or any other Obligor; (b) Hydrofarm Holdings Group, Inc. ceases to own and control, beneficially and of record, directly or indirectly,
all of the Equity Interests in Hydrofarm Investment Corp.; (c) Hydrofarm Investment Corp. ceases to own and control, beneficially
and of record, directly or indirectly, all of the Equity Interests in Holdings; (d) Sponsor or any Co-Investor ceases to directly
or indirectly own and control, beneficially and of record, Equity Interests of Hydrofarm Holdings Group, Inc. representing at least
50.1% of the voting power and at least 50.1% of the economic interest represented by the Equity Interests of Hydrofarm Holdings
Group, Inc. held by Sponsor or such Co-Investor, respectively, on the Fourth Amendment Effectiveness Date; (e) the Sponsor Group
shall cease, for any reason, to have, collectively, the right or ability by voting power, contract or otherwise to, directly or
indirectly, elect or designate for election a majority (in number and in voting power) of the members of the board of directors,
board of managers or similar governing body of Hydrofarm Holdings Group, Inc.; (f) any “change of control” (or similar
term) under the Term Loan Facility, the Term Loan Documents or any Subordinated Debt, while outstanding, shall have occurred; or
(g) Hydrofarm Holdings Group, Inc. shall become a direct or indirect Subsidiary of any Person.

 

EBITDA: for
any period, determined on a consolidated basis for Holdings and its Subsidiaries, Consolidated Net Income for such measurement
period, plus, (a) to the extent deducted from Consolidated Net Income for such period and without duplication:

 

		(i)	Consolidated Interest Expense for such period,

 

		(ii)	Consolidated Amortization Expense during such period,

 

		(iii)	Consolidated Depreciation Expense during such period,

 

		(iv)	Consolidated Tax Expenses paid or accrued during such period and, without duplication, the amount
of any Tax Distributions made in cash during such period,

 

    3

     

    

 

		(v)	non-recurring fees and expenses paid in cash in connection with Existing Acquisition, this credit
facility, the Loan Documents and the Term Loan Facility, in an aggregate amount (for all periods in the aggregate) not to exceed
$6,000,000,

 

		(vi)	any non-cash losses arising from the sale of capital
assets during such period,

 

		(vii)	extraordinary non-cash losses with respect to such period
(other than with respect to the write-downs of Accounts or Inventory),

 

		(viii)	the aggregate amount of management fees and reimbursement and indemnification payments accrued
or paid to Sponsor or its Affiliates for such period prior to the Waiver and Third Amendment Effective Date, to the extent such
payments are permitted to be paid or accrued pursuant to the terms hereof and of the Management Agreement;

 

		(ix)	transaction fees, costs, and expenses incurred in connection with Permitted Acquisitions (whether
or not consummated) in an aggregate amount not to exceed (x) $750,000 in any twelve-month period that includes the Closing Date
Acquisition and the closing of this Agreement and (y) $500,000 in any twelve-month period that does not include the Closing Date
Acquisition and the closing of this Agreement,

 

		(x)	to the extent actually reimbursed in cash from insurance proceeds, the amount of expenses for such
period with respect to any business interruption,

 

		(xi)	non-recurring costs and expenses incurred between the Initial Closing Date and the second
                                                                anniversary thereof in connection with the integration and implementation of streamlining and efficiency strategies; provided,
                                                                that, (i) the anticipated cost saving benefits of such costs and expenses are (x) reasonably identifiable, factually
                                                                supportable and certified in writing by a Senior Officer of Borrower Agent, and (y) reasonably expected by Borrowers to be
                                                                realized within 12 months following such operational initiative, and (ii)
the aggregate amount of such costs and expenses do not exceed $2,500,000 (for all periods in the aggregate),

 

    4

     

    

 

		(xii)	other non-recurring fees and expenses approved by Agent in its Permitted Discretion so long as,
and only to the extent that, such other non-recurring fees and expenses are similarly being added to “Consolidated EBITDA”
under the Term Loan Facility pursuant to clause (a)(xii) of the definition of “Consolidated EBITDA” set forth in the
Term Loan Facility,

 

		(xiii)	fees, costs and expenses incurred solely in connection with the Revolving Loan Forbearance Agreements
and the Term Loan Forbearance Agreements, including forbearance fees, legal fees and expenses, fees and expenses paid to consultants,
accountants and other professionals, but excluding the cost of any audits, appraisals or examinations required under this Agreement,

 

		(xiv)	fees, costs and expenses incurred solely in connection with the Waiver and Third Amendment and
the Term Loan Waiver and Third Amendment, including amendment fees, legal fees and expenses, fees and expenses paid to consultants,
accountants and other professionals,

 

		(xv)	fees, costs and expenses incurred solely in connection with the Fourth Amendment and the Term Loan
Fourth Amendment, including amendment fees, legal fees and expenses, fees and expenses paid to consultants, accountants and other
professionals; provided, that such amount (together with the amounts under clause (xvi) below) shall not exceed the aggregate amount
of $2,000,000,

 

		(xvi)	the amount of business restructuring charges and fees, costs and expenses incurred between January
1, 2019 and December 31, 2019; provided, that such amount (together with the amounts under
clause (xv) above) shall not exceed $2,000,000 in the aggregate, and minus, (b) to the extent
included in Consolidated Net Income for such period and without duplication,

 

		(i)	any non-cash gains arising from the sale of capital assets during such period,

 

    5

     

    

 

		(ii)	any non-cash gains arising from the write-up of assets (other than with respect to Accounts or
Inventory), and

 

		(iii)	any non-cash extraordinary gains during such period.

 

Permitted Acquisition:
any Acquisition by an Obligor (other than Holdings) or a Subsidiary as long as (a) Agent has provided its prior written consent
thereto; (b) the Acquisition is consensual; (c) the assets, business or Person being acquired is useful or engaged in the business
of Obligors and Subsidiaries or reasonably related thereto, is located or organized within the United States, and had pro forma
positive EBITDA for the 12 month period most recently ended; (d) no Debt or Liens are assumed or incurred, except as permitted
by Sections 10.2(a)(vi), 10.2(a)(ix) and 10.2(b)(x); (e) Agent, on behalf of the Secured Parties, shall have
received (or shall receive in connection with the closing of such Acquisition) a perfected security interest (having the priority
set forth in the Intercreditor Agreement) in all Property (including, without limitation, Equity Interests) acquired with respect
to Person being acquired in accordance with the terms hereof; (f) such Acquisition shall be permitted under the Term Loan Facility;
and (g) Borrower Agent delivers to Agent, at least ten Business Days prior to the Acquisition, copies of all draft material agreements
relating thereto and a certificate, in form and substance reasonably satisfactory to Agent, stating that the Acquisition is a “Permitted
Acquisition” and demonstrating compliance with the foregoing requirements, and on the date that is at least three days prior
(or such shorter period agreed to in writing by Agent in its sole discretion) to the Acquisition, copies of all material documents
in final form.

 

Restricted Investment:
any Investment by an Obligor or Subsidiary, other than (a) Investments in Subsidiaries to the extent existing on the Closing Date;
(b) Cash Equivalents that are subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory
to Agent; (c) loans and advances permitted under Sections 10.2(a) and 10.2(g); (d) Permitted Acquisitions; (e) Investments
consisting of bank deposits in the Ordinary Course of Business; (f) Investments consisting of contributions of capital or asset
transfers to Borrowers or Guarantors, so long as no Change of Control occurs as a result thereof; (g) Investments by way of Revolver
Loans permitted by Section 10.2(g); (h) Investments consisting of securities of account debtors received pursuant to a plan of
reorganization of such account debtor or in connection with the settlement of such accounts; (i) Investments consisting of securities
or instruments received pursuant to a disposition of assets permitted hereby; and (j) the Existing Acquisition, Asset Acquisitions and, upon the satisfaction
of the Share Acquisition Conditions, the Share Acquisition.

 

    6

     

    

 

Revolver
Termination Date: June 1, 2019 which shall be extended to June 30, 2019 if prior to June 1, 2019, Agent receives (x) a
fully executed commitment letter for the benefit of Borrowers in form and substance satisfactory to Agent, which reflects a
commitment by a third party lender to provided financing to Borrowers subject to customary closing conditions and (y) written
confirmation from the Term Loan Agent that the terms of such commitment letter constitute a Permitted Refinancing Revolving
Loan Facility; provided, however, that, in each case, if such date is not a Business Day, the Revolver
Termination Date shall be the immediately preceding Business Day.

 

Specified Distributions:
dividend and distribution payments made by the Obligors (other than Holdings) to Holdings, for further concurrent distribution
to the members of Holdings (other than distributions or dividends permitted pursuant to clause (a) or (c) of the definition of
Permitted Distributions), in each case subject to the prior written consent of Agent.

 

U.S.
Availability Reserve: the sum (without duplication) of (a) the Inventory Reserve with respect to U.S. Borrowers; (b) the
Rent and Charges Reserve related to the locations of U.S. Borrowers; (c) the U.S. Bank Product Reserve; (d) all accrued
Royalties, then due and payable by a U.S. Obligor; (e) the aggregate amount of liabilities secured by Liens upon the ABL
Priority Collateral of U.S. Borrowers that are senior to Agent’s Liens (but imposition of any such reserve shall not
waive an Event of Default arising therefrom); (f) the Dilution Reserve applicable to the Accounts of U.S. Borrowers; (g) a
reserve equal to all accounts payable of U.S. Borrowers which are more than 90 days past due, excluding any such past due
accounts payable to be paid in accordance with a contractual payment schedule with a vendor so long as the U.S. Borrowers
comply with such payment schedule; and (h) such additional reserves, in such amounts and with respect to such matters related
to U.S. Obligors, as Agent in its Permitted Discretion may elect to impose from time to time.

 

U.S. Borrowing Base:
on any date of determination, an amount equal to the lesser of (a) (i) the aggregate U.S. Revolver Commitments, minus (ii)
Canadian Revolver Usage, minus (iii) the U.S. Availability Reserve, minus (iv) the Fourth Amendment Availability Block,
or (b) the sum of (i) the U.S. Accounts Formula Amount, plus (ii) the U.S. Inventory Formula Amount, plus, minus
(iii) Canadian Revolver Usage; minus (iv) the U.S. Availability Reserve, minus (v) the Fourth Amendment Availability
Block.

 

    7

     

    

 

(c)           Financial Covenants. Section 10.3
of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

 

10.3       Financial Covenants.
As long as any Revolver Commitments or Obligations are outstanding, Obligors shall:

 

(a)          commencing with the measurement date of November 30, 2018, maintain EBITDA measured monthly as of the last day of each month
on a period to date basis for the period commencing on November 1, 2018 for each measurement date occurring on or before
October 31, 2019 and on a trailing 12-month basis thereafter, to be no less than the amounts set forth in the table
below:

 

	Month Ending	Minimum EBITDA
	 	(amounts in parenthesis
	 	are negative)
	November 30, 2018	($2,455,000)
	December 31, 2018	($3,515,000)
	January 31, 2019	($4,166,000)
	February 28, 2019	($4,507,000)
	March 31, 2019	($3,925,000)
	April 30, 2019	($2,972,000)
	May 31, 2019	($2,384,000)
	June 30, 2019	($2,185,000)
	July 31, 2019	($1,942,000)
	August 31, 2019	($1,537,000)
	September 30, 2019	($1,356,000)
	October 31, 2019	($853,000)
	November 30, 2019	$335,000
	December 31, 2019	$1,832,000

 

(d)          New Affirmative Covenant. The following
is hereby added to the Loan Agreement as Section 10.1(n):

 

(n)         Lender Calls. At
Agent’s request, the Obligors’ senior management shall, and shall cause its financial advisors (if any) to, hold monthly
conference calls or in-person meetings with the Agent and the Lenders during which (i) the Obligors’ senior management shall,
and shall cause any financial advisor to, provide the Agent with a reasonably detailed update of the Obligors’ operations
and financial position and (ii) the Agent and the Lenders shall be permitted to ask questions of, and to obtain any requested
information from the Obligors’ senior management and the any financial advisor with respect to the Obligors’ operations
and financial position.

 

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(e)          Restrictions
on Payment of Certain Debt. Clauses (ii), (iv) and (v) of section 10.2(h) of the Loan Agreement is hereby amended and
restated to read in its entirety as follows:

 

(ii)        Term Loan Obligations
except (A) any such payments (other than voluntary prepayments, which are governed by clause (B) below) to the extent such payments
are not prohibited from being paid pursuant to the terms of the Intercreditor Agreement and (B) voluntary prepayments upon the
Agent’s prior written consent;

 

(iv)        Borrowed Money (other than the Obligations, Subordinated Debt, the Term Loan Obligations or the Permitted Affiliate Sub Debt),
except (A) required payments under the agreements evidencing such Debt as in effect on the Closing Date (or as amended thereafter
with the consent of Agent), (B) payments in an aggregate amount not to exceed $500,000 in any Fiscal Year or (C) other payments
to the extent Agent has provided its prior written consent thereto; and

 

(v)         Earnout Obligations to the extent Agent has provided its prior written consent thereto.

 

SECTION 3.             Amendment to Schedule 1.1.
Schedule 1.1 to the Loan Agreement is replaced with Schedule 1.1 attached hereto.

 

SECTION 4.              Amendment to Term Loan/Entry of Side
Letter.

 

(a)          Lenders and the Agent hereby consents to the entry by the Obligors into that certain Amendment No. 4 to Credit Agreement,
dated March 15, 2019, among the Term Loan Agent, each Term Loan Lender, and the Obligors, in the form attached hereto as Exhibit
A (the “Term Loan Amendment No. 4”).

 

(b)           For all purposes
of the Loan Agreement, the other Loan Documents and the Intercreditor Agreement (including, without limitation, Section 10.1(l)
of the Loan Agreement), Agent and the Lenders hereby (i) consent to the entry by the Obligors, the Term Loan Agent, Hydrofarm Holdings
Group, Inc. and Hydrofarm Investment Corp. into that certain Side Letter Agreement, dated as of the date hereof (the “Term
Loan Side Letter Agreement”), (ii) the consummation of each of the transactions contemplated by the Term Loan Side Letter
Agreement, and (iii) acknowledge that the Obligors shall not be required to comply with the provisions of Section 10.1(l) of the
Loan Agreement in connection with any of the matters or transactions described in the Term Loan Side Letter Agreement.

 

SECTION
5.             Term Loan Voluntary Prepayment.
Borrowers have informed Agent and Lenders that U.S. Borrower intends to make a voluntary prepayment of the Term Loan in the
amount of $3,000,000. Pursuant to the Waiver and Third Amendment, no voluntary prepayments of the Term Loan may be made
without the prior consent from Agent and Lenders. Agent and Lenders hereby consent to the voluntary prepayment of the Term
Loan so long as (i) such prepayment is made by no later than March [__], 2019, (ii) the aggregate amount of the prepayment
does not exceed $3,000,000, (iii) to entire amount of such prepayment is applied to the principal balance of the Term Loan,
(iv) no Default or Event of Default exists immediately before or after giving effect to such prepayment, and (v)
contemporaneous with such prepayment, Borrower receives an equity contribution from Holdings with the net proceeds of such
equity contribution not to be less than the aggregate amount of the prepayment of the Term Loan. Nothing in this Fourth
Amendment shall be construed to (i) constitute a waiver with respect to any other default or non-compliance by the Obligors
with respect to the Loan Documents; or (ii) impair any right or remedy that the Agent or Lenders may now have or may have in
the future under or in connection with any default or non-compliance under any Loan Document.

 

    9

     

    

 

SECTION 6.             Amendment
Fee. An amendment fee in the amount of $100,000 (the “Fourth Amendment Fee”) shall be fully earned by
the Agent and the Lenders and non-refundable as of the Fourth Amendment Effective Date, and shall be paid by the Obligors on the
Fourth Amendment Effective Date as a U.S. Base Rate Loan pursuant to Section 4.1(a)(ii) of the Loan Agreement.

 

SECTION 7.             Conditions
Precedent. This Fourth Amendment shall become effective and be deemed effective as of the date when, and only when, all
of the following conditions have been satisfied as determined in the Agent’s sole discretion:

 

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

 

(b)          the Term
Loan Agent and each Term Loan Lender shall have entered into the Term Loan Amendment No. 4 and the Obligors shall have delivered
a certified copy of such Term Loan Amendment No. 4 to the Agent and each of the Lenders, and such Term Loan Amendment No. 4 shall
be in form and substance acceptable to the Agent;

 

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

 

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

 

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

 

SECTION 8.              Representations
and Warranties. Each of the Obligors, jointly and severally, represents and warrants (which representations and warranties
shall survive the execution and delivery hereof) to the Lenders and the Agent that:

 

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

 

    10

     

    

 

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

 

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

 

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

 

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

 

SECTION 9.             Acknowledgment and
Reaffirmation Each Obligor, jointly and severally, hereby acknowledges, agrees, confirms, reaffirms and
stipulates:

 

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

 

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

 

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

 

    11

     

    

 

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

 

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

 

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

 

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

 

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

 

SECTION 10.             Ratification; Waiver of Defenses;
Indemnity and Release.

 

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

 

(b)         Release.

 

(i)         Each
of Obligors, jointly and severally, on behalf of itself and each of its Subsidiaries and affiliates, hereby waives, releases
and discharges each Lender and the Agent, and all of the directors, officers, employees, attorneys, agents, successors and
assigns of each Lender and the Agent, from any and all claims, demands, actions, causes of action, damages, costs, expenses
and liabilities, known or unknown, anticipated or unanticipated, suspected or unsuspected, asserted or unasserted, fixed,
contingent or conditional, at law or in equity, arising out of or in any way relating to the Loan Documents or any documents,
agreements, dealings or other matters connected with the Loan Documents, in each case to the extent arising (x) on or prior
to the date hereof or (y) out of, or relating to, any actions, dealings or matters occurring on or prior to the date hereof.
The waivers, releases, and discharges in this Section 10 shall be effective on the Fourth Amendment Effectiveness Date
regardless of any other event that may occur or not occur after the date hereof.

 

    12

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)           Alternative
Dispute Resolution under California Law.

 

(i)            The reference
provisions of this Section 9(g) will be applicable only if the jury trial waiver set forth in Section 9(f) hereof is declared invalid
or unenforceable and the Agent determines in its sole discretion to proceed as set forth in this Section 9(g).

 

(ii)            Other
than (I) nonjudicial foreclosure of security interests in real or personal property, (II) the appointment of a receiver, or
(III) the exercise of other provisional remedies (any of which may be initiated pursuant to applicable law), each
controversy, dispute or claim (each, a “Disputed Claim”) between any or all of the parties hereto arising out of
or relating to the Loan Documents, which Disputed Claim is not settled in writing within 30 days after the “Claim
Date” (the date on which a party subject to the Loan Documents gives written notice to the other parties that a
Disputed Claim exists), will be resolved by a reference proceeding in California in accordance with the provisions of Section
638 et seq. of the California Code of Civil Procedure, or their successor sections (“CCP”), which shall
constitute the exclusive remedy for the resolution of any Disputed Claim concerning the Loan Documents, including whether the
Disputed Claim is subject to the reference proceeding. Except as set forth in this Section 9(g), the parties hereto waive the
right to initiate legal proceedings against each other concerning such Disputed Claims. Venue for these reference proceedings
will be in the courts of the State of California sitting in Los Angeles County or such other venue as the parties may agree
(the “Court”).

 

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

 

SECTION 11.               No Novation; Reservation of Rights.

 

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

 

(b)           Reservation of
Rights. Subject to Section 6, each Lender and the Agent reserves the right, in their sole discretion, to exercise any
or all rights or remedies under the Loan Documents, applicable law and otherwise as a result of any Events of Default, arising
under the Loan Documents that may be continuing on the Fourth Amendment Effectiveness Date or any Default or Event of Default arising
under the Loan Documents that may occur after the Fourth Amendment Effectiveness Date, and neither any Lender nor the Agent has
waived any of such rights or remedies and nothing in this Fourth Amendment, and no delay on any Lender’s or the Agent’s
part in exercising such rights or remedies, should be construed as a waiver of any such rights or remedies.

 

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

 

    16

     

    

 

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

 

SECTION 12.             Further
Assurances. Each Obligor hereby agrees that each Obligor shall take such further action and shall execute and deliver such
additional documents and instruments (in recordable form, if requested) as the Lenders or the Agent may reasonably request to effectuate
the purposes and terms of this Fourth Amendment and each of the other Loan Documents, including, without limitation, any such instruments,
assignments, conveyances or other documents as the Lenders or the Agent reasonably requests to perfect or continue the Agent’s
Liens on any assets or properties of any Obligor.

 

SECTION 13.            Counterparts.
This Fourth Amendment may be executed by the parties hereto individually or in combination, in one or more counterparts, each of
which shall be an original and all of which shall constitute one and the same agreement. Delivery of an executed counterpart of
a signature page to this Fourth Amendment by telecopier or electronic transmission (in pdf format) shall be effective as delivery
of a manually executed counterpart of this Fourth Amendment.

 

SECTION 14.             Successors
and Assigns. The provisions of this Fourth Amendment shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

 

SECTION 15.             Severability.
If any provision of this Fourth Amendment shall be held invalid or unenforceable in whole or in part in any jurisdiction, such
provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or enforceability without in any manner
affecting the validity or enforceability of such provision in any other jurisdiction or the remaining provisions of this Fourth
Amendment in any jurisdiction.

 

SECTION 16.            
Governing Law. THIS FOURTH AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. ANY DISPUTE ARISING
OUT OF OR CONCERNING THE TERMS OF THIS FOURTH AMENDMENT SHALL BE RESOLVED IN A COURT OF COMPETENT JURISDICTION LOCATED IN NEW
YORK COUNTY, NEW YORK, USA, WHICH SHALL BE THE EXCLUSIVE FORUM FOR THE RESOLUTION OF ANY SUCH DISPUTE.

 

SECTION 17.             Expenses.
The Obligors, joint and severally, agree to pay, or reimburse, the Agent for all expenses incurred in connection with the preparation
and negotiation of this Fourth Amendment and related agreements and instruments and the transactions contemplated hereby, including,
but not limited to, the fees and expenses of counsel to the Agent.

 

SECTION 18.             Miscellaneous.
The parties hereto shall, at any time and from time to time following the execution of this Fourth Amendment, execute and deliver
all such further instruments and take all such further action as may be reasonably necessary or appropriate in order to carry out
the provisions of this Fourth Amendment.

 

    17

     

    

 

SECTION 19.              Headings.
Section headings in this Fourth Amendment are included for convenience of reference only and are not to affect the construction
of, or to be taken into consideration in interpreting, this Fourth Amendment.

 

SECTION 20.             Entire
Agreement. This Fourth Amendment embodies the entire agreement of the parties hereto with respect to the subject matter
hereof and supersedes all prior agreement and understandings relating to the subject matter hereof. All prior statements, representations
and warranties, if any, of any Lender or the Agent in respect of the subject matter hereof, and all prior drafts of this Fourth
Amendment, are totally superseded and merged into this Fourth Amendment, which represents the final and sole agreement of the parties
hereto with respect to the matters which are the subject hereof. Each of the Obligors hereby acknowledges and agrees that the execution
and delivery of this Fourth Amendment has not established any course of dealing between the parties hereto.

 

[The remainder of this page left blank intentionally]

 

    18

     

    

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    

     

    

 

 

	AGENT AND LENDERS:	BANK OF AMERICA, N.A., 
	 	as AGENT
    and LENDER
	 	 
	 	By:	/s/  Matthew  Van Steenhuyse
	 	Name:	 Matthew  Van Steenhuyse
	 	Title: 	Senior Vice President 

 

	 	Address: 	 
	 	Bank of America, N.A.
	 	333 S. Hope St, Suite 1900
	 	Los Angeles, CA 90071
	 	Attn:  Matthew  Van Steenhuyse
	 	Facsimile: (877) 207-2581

 

    

     

    

 

	 	BANK OF AMERICA, N.A. (acting through
	 	its Canada branch),
	 	as Canadian Lender 
	 	 
	 	By:	/s/ Sylwia Durkiewicz
	 	Name: 	Sylwia Durkiewicz
	 	Title: 	Vice President 

 

	 	Address: 	 
	 	   181 Bay Street, Suite 400
	 	Toronto, ON, M5J 2V8
	 	Attn:  Sylwia Durkiewicz
	 	Facsimile: (312) 453-4041

 

    

     

    

 

SCHEDULE 1.1

to 

Amended and Restated Loan and Security Agreement

 

REVOLVER COMMITMENTS OF LENDERS

 

	 	 	U.S. Revolver	 	 	Canadian Revolver	 
	Lender	 	Commitment	 	 	Commitment	 
	Bank of America, N.A.	 	$	45,000,000	 	 	$	10,000,000	1

 

 

1 Canadian Revolver Commitment is a sublimit of the
U.S. Revolver Commitment of Bank of America and is not in addition thereto. The Canadian Revolver Commitment is provided by Bank
of America – Canada Branch.

 

    

     

    

 

EXHIBIT A

 

Term Loan Amendment No. 4

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