Document:

Exhibit 10.1

 

Asset
Purchase Agreement

 

THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) is effective as of the 3rd day of March, 2018,
by and between Earth Born, Inc., a California corporation (“Earth Born California”), Earth Born, Inc., a Delaware
corporation (“Earth Born Delaware”), Irie Living, a California nonprofit mutual benefit corporation (“Irie”),
and Genesis Media Works, LLC, a Utah limited liability company doing business as “Terra’s Way,” “Irie Hemp
Company,” “Earth Born Botanicals,” and “Santa Cruz Hemp Company” (“Genesis” and
together with Earth Born California, Earth Born Delaware, and Irie the “Sellers”), and Leafceuticals Inc (the
“Buyer”), a Nevada corporation and the wholly owned subsidiary of Freedom Leaf Inc., a Nevada corporation (“FRLF”).

 

R
e c i t a l s

 

A.       Sellers
own and operate businesses related to CBD botanicals and related nutraceutical products more specifically described on Schedule
1.1 hereto (each business a “Business” and collectively the “Businesses”).

 

B.       Subject
to the terms and conditions of this Agreement, Sellers are willing to sell to Buyer, and Buyer is willing to purchase from Sellers,
all of their assets relating to the Businesses as set forth herein.

 

NOW, THEREFORE, in
consideration of the foregoing, the benefits to be derived hereunder and the mutual promises contained herein, the parties hereby
agree as follows:

 

A
g r e e m e n t

 

Article
I

 

Purchase
and Sale of Assets and Certain Related Transactions

 

1.1       Purchase
and Sale. At the Closing (as defined in Section 3.1 below), Sellers will sell to Buyer, and Buyer will purchase
from Sellers, upon the terms and subject to the conditions set forth in this Agreement, all of the assets (except those described
in Schedule 1.2) associated with and/or required to operate the Businesses, including, without limitation, the following
assets:

 

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

 

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

 

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

 

(d)       All
of Seller’s rights in and to the trade names “Terra’s Way,” “Irie Hemp Company,” “Earth
Born Botanicals,” “Santa Cruz Hemp Company,” “Earth Born,” “Prana Hemp,” “Nirvana
Hemp,” “Irie Journal,” “Irie Medicinals,” “Irie Living,” “Irie CBD,” “Irie
Medicinals,” and “Santa Cruz Botanicals” (the “Trade Names”); and

 

(e)       All
other intangible assets associated with the Business, including the assets described on Schedule 1, and the proprietary
rights, phone numbers, trade secrets, domain names, business records, customer relationships, contracts and goodwill relating to
the Business (the “Intangible Assets”);

 

(the Cash and Cash
Equivalents, Equipment, Inventory and Supplies, Receivables, Trade Name and Intangible Assets are also referred to herein collectively
as the “Assets”).

 

 

 

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1.2       Excluded
Assets. Notwithstanding the foregoing, the items set forth on Schedule 1.2 hereto are specifically excluded from
the definition of Assets.

 

1.3       Seller’s
Debts, Liabilities and Obligations. Except as specifically set forth on Schedule 1.3 hereto, the parties
hereby acknowledge and agree that all debts, claims, obligations and liabilities whatsoever of Sellers shall be the sole responsibility
of Sellers, and that Buyer is not assuming, and shall not be obligated or deemed to assume, any debt, claim or liability of Sellers
or any debt, claim or liability associated with the Businesses or the Assets except as expressly set forth on Schedule 1.3.

 

ARTICLE II

 

PURCHASE PRICE

 

2.1       Purchase
Price. 

 

(a)            
The aggregate purchase price (the “Purchase Price”) for the Assets shall be $2,200,000, subject to adjustment
as provided in Section 2.4. Of the Purchase Price, $1,800,000 (the “FRLF Stock Value”) shall be paid by Buyer’s
delivery of 7,826,087 restricted shares of common stock of FRLF (the “FRLF Stock”), and the balance shall be
paid in cash. Sellers will have full voting and distribution rights according to the ByLaws of the Buyer as Common Stock holders.
At closing, Sellers will be required to sign agreements that requires the Sellers to only sell stock based on a percentage of the
previous weeks stock sales volume as listed with OTC Markets and at a stock price that is no greater than 2% (two percent) less
than the previous days closing price as listed with OTC Markets.

 

(b)            
Upon full execution hereof, Buyer shall deliver 1,250,000 shares of the FRLF Stock (the “Deposit Shares”)
to Escrow Agent (as defined below) as contemplated by Section 2.5 below

 

(c)            
At the Closing (defined below), Buyer shall deliver to Sellers an amount (such amount, the “Closing Cash”)
in cash equal to the Purchase Price minus the FRLF Stock Value.

 

(d)            
At the Closing, Buyer shall deliver (i) the Closing Cash by wire transfer of immediately available funds to the account(s)
of Sellers as directed by Karen Lane (“Sellers’ Representative”), (ii) 6,576,087 shares of the FRLF Stock
(the “Initial FRLF Stock”) to Sellers or their assignees as directed by Sellers’ Representative. The Closing
Cash and the Initial FRLF Stock shall be allocated by the Sellers among the Sellers, Buyer shall follow the directions of Sellers’
Representative as described herein, and Buyer shall not be liable for any dispute among the Sellers for such allocation.

 

2.2       Closing
Costs. Each party shall bear its own closing costs, including without limitation attorneys’ and accountants’
fees and costs, where applicable. Without limiting the generality of the foregoing, Sellers shall be solely responsible for any
brokerage fees or sales commissions incurred by Sellers in connection with the transactions contemplated by this Agreement.

 

2.3       Allocation
of Purchase Price. The unadjusted Purchase Price shall be allocated among the Assets as follows for tax and accounting
purposes (and any adjustments to the Purchase Price pursuant to Section 2.4 shall be allocated among the Assets pursuant to the
following ratios):

 

	Cash and Cash Equivalents	 	$	30,000	 
	Equipment	 	$	25,000	 
	Inventory & Supplies	 	$	45,000	 
	Receivables	 	$	59,814	 
	Trade Names	 	$	0	 
	Intangible Assets	 	$	2,040,186	 

 

	Portion of Intangible Assets comprising

                                                                IRIE Company’s Intangible Assets
	 	$	840,186.00	 
	Portion of Intangible Assets comprising

                                 Trevor Hill’s Personal Goodwill
	 	$	400,000.00	 
	Portion of Intangible Assets comprsing

                                 Ricky Potts' Personal Goodwill
	 	$	400,000.00	 
	Portion of Intangible Assets comprising

                                 Karen Lane's Personal Goodwill
	 	$	400,000.00	 

 

 

 

 

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2.4       Purchase
Price Adjustments.

 

(a)        Certain
Definitions.

 

“Actual
Pre-Closing Revenues” shall mean the aggregate revenues of all of the Sellers for the 12-month period ending December
31, 2017, determined in accordance with United States generally accepted accounting principles promulgated or adopted by the Financial
Accounting Standards Board and its predecessors in effect from time to time.

 

“Estimated
Pre-Closing Revenues” means $1,600,000.

 

“Actual
Post-Closing Average Monthly Revenues” shall mean the aggregate average monthly revenues resulting from all of the Assets
for the first full 3 months immediately following Closing, determined in accordance with United States generally accepted accounting
principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors in effect from time to time.

 

“Estimated
Post-Closing Average Monthly Revenues” means $120,000/month.

 

(b)       Within
60 days following the Closing, or as soon thereafter as reasonably practicable, Buyer shall prepare and deliver, or cause to be
prepared and delivered, to the Sellers a statement (the “Pre-Closing Revenue Statement”) setting forth the Actual
Pre-Closing Revenues. If the Actual Pre-Closing Revenues are less than the Estimated Pre-Closing Revenues (such difference the
“Pre-Closing Revenue Deficiency”) by more than 5%, Sellers shall pay to Buyer as an adjustment to the Purchase
Price an amount equal to 1.5 multiplied by the amount of the Pre-Closing Revenue Deficiency (the “Pre-Closing Revenue
Purchase Price Adjustment”). Such Pre-Closing Revenue Purchase Price Adjustment (or the maximum portion thereof) shall
first be deemed paid out of the Escrow Account by Escrow Agent’s delivery to FRLF of a number of the Deposit Shares in the
Escrow Account equal to the Pre-Closing Revenue Purchase Price Adjustment divided by $0.23/share, and the Buyer and Sellers’
Representative shall promptly execute a joint instruction to the Escrow Agent directing the Escrow Agent to deliver such shares
to FRLF (along with duly executed stock powers sufficient to reissue the shares to FRLF). If such shares are not sufficient to
pay the Pre-Closing Revenue Purchase Price Adjustment, Sellers shall pay Buyer any Pre-Closing Revenue Purchase Price Adjustment
balance in cash. Any payment required under this Section 2.4 (b) shall be paid by the obligated party or parties, as applicable,
within 30 days of the final determination of Actual Pre-Closing Revenues in accordance with Section 2.4(c) below.

 

(c)       Unless
Sellers’ Representative, within 30 days after receipt of the Pre-Closing Revenue Statement, delivers to Buyer a notice objecting
thereto and specifying in reasonable detail the basis for such objection and the amount in dispute, such Pre-Closing Revenue Statement
shall be considered accepted, final and binding upon the parties. In the event Sellers’ Representative, within such 30-day
period, delivers notice objecting to Buyer’s calculations pursuant to Section 2.4(b) above, then Buyer shall cause
its accountants, and Sellers’ Representative shall cause Sellers’ accountants, to use their best efforts for 30 days
after delivery of Sellers’ Representative’s objection notice to agree upon the adjustment amounts. Upon the expiration
of such 30-day period, any party may submit in writing for resolution to FRLF’s independent auditor at such time (the “Independent
Accountants”) any dispute with respect to the computation of the adjustment amount which has not been resolved. As promptly
as practicable, but in no event later than 30 days after such submission, the parties shall cause their respective accountants
to deliver to the Independent Accountants written submissions in support of their respective positions regarding such dispute and
shall direct the Independent Accountants to resolve such dispute based solely on such written submissions without any independent
investigation of the Sellers’ books and records. The decision of the Independent Accountants with respect to the computation
of the adjustment amounts shall be final and binding on each of the parties hereto. The costs of the Independent Accountants with
respect to the computation of the adjustment amount shall be shared equally between the parties, except that if the Independent
Accountants resolve certain disputed items in favor of one party and certain disputed items in favor of the other party, the Independent
Accountants may designate the party in whose favor the greater amount of disputed items (measured in dollars awarded that party)
as the prevailing party and direct the other party to pay a greater portion of the fees and costs.

 

 

 

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(d)       Within
30 days following the close of the first 3 full months following Closing, or as soon thereafter as reasonably practicable, Buyer
shall prepare and deliver, or cause to be prepared and delivered, to the Sellers a statement (the “Post-Closing Revenue
Statement”) setting forth the Actual Post-Closing Average Monthly Revenues. If the Actual Post-Closing Average Monthly
Revenues are less than the Estimated Post-Closing Average Monthly Revenues (such difference the “Post-Closing Revenue
Deficiency”), Sellers shall pay to Buyer as an adjustment to the Purchase Price an amount equal to 10 multiplied by the
amount of the Post-Closing Revenue Deficiency (the “Post-Closing Revenue Purchase Price Adjustment”). Such Post-Closing
Revenue Purchase Price Adjustment (or the maximum portion thereof) shall first be deemed paid out of the Escrow Account by Escrow
Agent’s delivery to FRLF of a number of the Deposit Shares in the Escrow Account equal to the Post-Closing Revenue Purchase
Price Adjustment divided by $0.23/share, and the Buyer and Sellers’ Representative shall promptly execute a joint instruction
to the Escrow Agent directing the Escrow Agent to deliver such shares to FRLF (along with duly executed stock powers sufficient
to reissue the shares to FRLF). If such shares are not sufficient to pay the Post-Closing Revenue Purchase Price Adjustment, Sellers
shall pay Buyer any Post-Closing Revenue Purchase Price Adjustment balance in cash. Any payment required under this Section 2.4(d)
shall be paid by the obligated party or parties, as applicable, within 30 days of the final determination of Actual Post-Closing
Average Monthly Revenues in accordance with Section 2.4(e) below.

 

(e)       Unless
Sellers’ Representative, within 30 days after receipt of the Post-Closing Revenue Statement, delivers to Buyer a notice objecting
thereto and specifying in reasonable detail the basis for such objection and the amount in dispute, such Post-Closing Revenue Statement
shall be considered accepted, final and binding upon the parties. In the event Sellers’ Representative, within such 30-day
period, delivers notice objecting to Buyer’s calculations pursuant to Section 2.4(d) above, then Buyer shall cause
its accountants, and Sellers’ Representative shall cause Sellers’ accountants, to use their best efforts for 30 days
after delivery of Sellers’ Representative’s objection notice to agree upon the adjustment amounts. Upon the expiration
of such 30-day period, any party may submit in writing for resolution to the Independent Accountants any dispute with respect to
the computation of the adjustment amount which has not been resolved. As promptly as practicable, but in no event later than 30
days after such submission, the parties shall cause their respective accountants to deliver to the Independent Accountants written
submissions in support of their respective positions regarding such dispute and shall direct the Independent Accountants to resolve
such dispute based solely on such written submissions without any independent investigation of the Sellers’ books and records.
The decision of the Independent Accountants with respect to the computation of the adjustment amounts shall be final and binding
on each of the parties hereto. The costs of the Independent Accountants with respect to the computation of the adjustment amount
shall be shared equally between the parties, except that if the Independent Accountants resolve certain disputed items in favor
of one party and certain disputed items in favor of the other party, the Independent Accountants may designate the party in whose
favor the greater amount of disputed items (measured in dollars awarded that party) as the prevailing party and direct the other
party to pay a greater portion of the fees and costs.

 

(f) Inapplicability
of Section 2.4 to Trevor Hill. None of the provisions of Section 2.4 including all subsections (a) through (e) shall apply
to Trevor Hill or his portion of the Deposit Shares held in Escrow. Trevor Hill cannot be held liable for any portion of a determined
Pre-Closing Revenue Deficiency or Post-Closing Revenue Deficiency. This subsection has no effect on Trevor Hill’s portion
of the Deposit Shares held in Escrow for purposes listed under section 2.5.

 

2.5       Escrow.
As partial security against (i) termination of this Agreement by Buyer pursuant to Section 9.5 below, (ii) any indemnification
claims by the Buyer pursuant to Section 6.7 of this Agreement, (iii) any Pre-Closing Revenue Deficiency, and/or (iv) any Post-Closing
Revenue Deficiency, upon full execution hereof, Buyer shall deposit the Deposit Shares in an escrow account (the “Escrow
Account”) to be established with Globex Transfer LLC (the “Escrow Agent”). The Deposit Shares shall
be held by the Escrow Agent pursuant to the terms and conditions of an Escrow Agreement in the form attached hereto as Exhibit
C (the “Escrow Agreement”). Subject to Section 2.5(a) and 2.5(b) below, (i) promptly following completion
of FRLF’s audit of the Assets by its auditor, the Buyer and the Sellers shall execute a joint instruction to the Escrow Agent
directing the Escrow Agent to deliver a 50% portion of the Deposit Shares remaining in the Escrow Account at such time to the Sellers’
Representative on behalf of the Sellers, and (ii) promptly following 4 months subsequent to the Closing unless there is a disagreement
between the Buyer and the Sellers, the Buyer and the Sellers shall execute a joint instruction to the Escrow Agent directing the
Escrow Agent to deliver any portion of the Deposit Shares remaining in the Escrow Account at such time to the Sellers’ Representative
on behalf of the Sellers. The scheduled distribution dates in this Section 2.5 shall each be referred to as a “Release
Date”.

 

 

 

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(a)       In
the event that, prior to 5 months subsequent to the Closing, the Sellers shall be obligated to pay any amounts due to the Buyer
under (i) any settlement agreement between the parties, or (ii) any judgment or order from a court of competent jurisdiction (which
judgment or order is final and either non-appealable or the deadline to make appeal therefrom shall have passed), in either case,
regarding any claims for Losses made by the Buyer pursuant to Section 6.7 of this Agreement, then the Buyer and the Sellers shall
promptly execute a joint instruction to the Escrow Agent directing the Escrow Agent to deliver a number of the Deposit Shares remaining
in the Escrow Account to FRLF equal to such amounts divided by $0.23/share (along with duly executed stock powers sufficient to
reissue the shares to FRLF), and the remaining balance of Deposit Shares held, if any, pursuant to the Escrow Agreement shall be
retained in accordance with the terms of this Section 2.5 and the Escrow Agreement.

 

(b)       In
the event that the Buyer shall have made claim(s) for Losses pursuant to Section 6.7 of this Agreement and such indemnification
claim(s) remain outstanding as of a Release Date, then the Deposit Shares scheduled to be released to the Stockholders on such
Release Date shall only be delivered to the Stockholders to the extent that the amount of such indemnification claim(s) (the “Claim
Amount”), is less than the amount of Deposit Shares that would be held pursuant to the Escrow Agreement after giving
effect to such scheduled release multiplied by $0.23/share, in which case, (i) promptly following the Release Date, the Buyer and
the Sellers shall execute a joint instruction to the Escrow Agent directing the Escrow Agent to deliver to Sellers an amount of
the Deposit Shares equal to the amount of Deposit Shares scheduled to be released to the Sellers on such Release Date, subject
to any reduction needed to ensure that the amount of the Deposit Shares that would be held pursuant to the Escrow Agreement after
giving effect to such release equal the Claim Amount divided by $0.23/share, (ii) the Buyer and the Stockholders shall execute
any required amendments to the Escrow Agreement in order to extend the period of the Escrow Agreement, and (iii) the portion of
the Deposit Shares then held pursuant to the Escrow Agreement equal to the Claim Amount divided by $0.23/share shall remain held
in escrow pending the resolution of such indemnification claim. Upon resolution of such outstanding indemnification claim(s), either
by mutual agreement of the parties or pursuant to a judgment or order from a court of competent jurisdiction (which judgment or
order is final and either non-appealable or the deadline to make appeal therefrom shall have passed), the Buyer and the Sellers
shall promptly execute a joint instruction to the Escrow Agent directing the amount of Deposit Shares then held pursuant to the
Escrow Agreement to be delivered to (i) Buyer for any amounts which Buyer is entitled to receive as a result of the resolution
of such outstanding indemnification claims(s), and (ii) the Sellers for the amount, if any, by which a prior release was reduced
to ensure that the amount of Deposit Shares that would continue to be held pursuant to the Escrow Agreement were equal to the Claim
Amount divided by $0.23/share and, if subsequent to 4 months following the Closing Date, any remaining balance pursuant to the
Escrow Agreement.

 

(c)       With
respect to the Sellers’ obligations to indemnify for Losses pursuant to Section 6.7 of this Agreement, the Buyer shall make
demand for payment under the Escrow Agreement prior to instituting any proceedings or taking any other action against the Sellers,
unless the failure to institute proceedings or take such other action shall prejudice the Buyer’s ability to make such indemnification
claim, and any amounts owed to Buyer pursuant to Section 6.7 of this Agreement, after application of this Section 2.5, shall be
paid to Buyer in cash.

 

ARTICLE III

 

CLOSING

 

3.1       Closing
Date. The closing of the transactions contemplated herein shall occur on or before April 15, 2018 (the “Closing”).
Such date may change by mutual agreement of the Parties.

 

3.2       Additional
Closing Deliveries by Buyer to Seller. At the Closing, Buyer shall deliver, or cause to be delivered to Sellers, in
addition to the Closing Cash and the Initial FRLF Stock, the following, each in form and substance reasonably satisfactory to
Sellers:

 

(a)       A
certificate, executed by Buyer, dated as of the Closing, certifying that the conditions specified in Section 7.3 have been fulfilled;
and

 

(c)       Buyer’s
employment contracts with Karen Lane and Ricky Potts in a form satisfactory to those parties and Buyer and executed by Buyer.

 

 

 

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3.3       Closing
Deliveries by Seller to Buyer. At the Closing, each of Sellers shall deliver, or cause to be delivered, to Buyer the following,
each in form and substance reasonably satisfactory to Buyer:

 

(a)       An
Assignment and Bill of Sale in the form attached hereto as Exhibit A;

 

(b)       An
Assignment of Intangible Assets in the form attached hereto as Exhibit B;

 

(c)       Buyer’s
employment contracts with Karen Lane and Ricky Potts in a form satisfactory to those parties and Buyer and executed by Ms. Lane
and Mr. Potts;

 

(d)       Any
other documentation reasonably required to fully vest title to the Assets in Buyer; and

 

(e)       A
certificate, executed by Seller, dated as of the Closing, certifying that the conditions specified in Section 7.2 have been fulfilled.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF THE
SELLERS

 

Each of Sellers hereby
represents and warrants to Buyer that the following statements are correct and complete in all material respects as of the date
hereof and as of Closing, which representations and warranties shall survive Closing:

 

4.1       Organization.
Seller is duly organized, validly existing and in good standing under the laws of the state of its incorporation or organization.

 

4.2       Authorization.
Seller has all necessary power and authority to execute and deliver this Agreement and the documents and agreements contemplated
hereby, to consummate the transactions contemplated hereby and thereby, and to perform its obligations hereunder and thereunder.
This Agreement has been duly and validly approved by all necessary action on the part of Seller, has been duly executed and delivered
by Seller and constitutes a valid and binding obligation of Seller, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditor’s rights
generally or by equitable principles (whether considered in an action at law or in equity) and other customary limitations on enforceability.

 

4.3       Title
to Assets. Seller has and will convey to Buyer good and marketable title to all its Assets that it is transferring
hereunder, free and clear of any security interest, claim, lien or encumbrance.

 

4.4       Consents
and Approvals. No consent, approval or authorization of, or declaration, filing or registration with any governmental
or regulatory authority, or any other person or entity, is required to be made or obtained by Seller in connection with the execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.

 

4.5       Financial
Records. Any and all financial records that Seller has shown to Buyer regarding the Business present fairly in all material
respects the financial condition and results of operations of the Business at and for the periods therein specified.

 

4.6       Legal
Proceedings. There are no claims, actions, suits or proceedings or arbitrations, either administrative or judicial, pending,
or, to the knowledge of Seller, overtly threatened against or affecting the Business, Seller, or its Assets, or Seller’s
ability to consummate the transactions contemplated herein, at law or in equity or otherwise, before or by any court or governmental
agency or body, domestic or foreign, or before an arbitrator of any kind.

 

4.7       Taxes.
Seller has, in respect of its Business, filed all tax returns that are required to be filed and has paid all taxes that have become
due pursuant to such tax returns or pursuant to any assessment that has become payable or for which Buyer may otherwise have any
transferee liability. All monies required to be withheld by Seller from employees of its Business for income taxes and social security
and other payroll taxes have been collected or withheld, and either paid to the respective governmental bodies or set aside in
accounts for such purpose.

 

 

 

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4.8       Trademarks.
No royalty is payable to any person as a result of, or with respect to, the use of any trademarks, trade names or other intellectual
property to the best of Seller’s knowledge. The operation of Seller’s Business as currently conducted does not infringe,
misappropriate or conflict with any intellectual property right or other legally protectable right of another person. Seller has
not received any notice of any claim by another person contesting the validity, enforceability, use or ownership of any of its
trademarks or trade names.

 

4.9       Disclosure.
There are no material facts relating to Seller’s Business or its Assets that have not been disclosed to Buyer, and Buyer
has undertaken all reasonable due diligence.

 

4.10       No
Untrue Statement. To the knowledge of Seller, none of the representations and warranties in this Article IV or made
by Seller elsewhere in this Agreement contains any untrue statement of material fact or omits to state a material fact necessary,
in light of the circumstances under which it was made, in order to make any such representation not misleading in any material
respect.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents
and warrants to Seller that the following statements are correct and complete in all material respects as of the date hereof and
as of Closing, which representations and warranties shall survive Closing:

 

5.1       Organization.
Buyer is a corporation, duly organized, validly existing and in good standing under the laws of the State of Nevada.

 

5.2       Authorization.
Buyer has all necessary company power and authority to execute and deliver this Agreement and the documents and agreements contemplated
hereby, to consummate the transactions contemplated hereby and thereby, and to perform its obligations hereunder and thereunder.
This Agreement has been duly and validly approved by all necessary company action on the part of Buyer, has been duly executed
and delivered by Buyer and constitutes a valid and binding obligation of Buyer, enforceable against it in accordance with its terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditor’s
rights generally or by equitable principles (whether considered in an action at law or in equity) and other customary limitations
on enforceability.

 

5.3       Consents
and Approvals. No consent, approval or authorization of, or declaration, filing or registration with any governmental
or regulatory authority, or any other person or entity, is required to be made or obtained by Buyer in connection with the execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.

 

5.4       No
Untrue Statement. To the knowledge of Buyer, none of the representations and warranties in this Article V or made
by Buyer elsewhere in this Agreement contains any untrue statement of material fact or omits to state a material fact necessary,
in light of the circumstances under which it was made, in order to make any such representation not misleading in any material
respect.

 

ARTICLE VI

 

COVENANTS

 

6.1       Conduct
of Business.  Prior to the Closing, except as otherwise required by applicable law or as consented to in writing by the
parties, each of Sellers shall conduct its Business in the ordinary course of business. Prior to the Closing, each of Sellers shall
use all reasonable efforts to (1) preserve the possession and control of all of its Assets and its Business; (2) to preserve the
good will of suppliers, customers, staff and employees of its Business and others having business relations with Seller; and (3)
keep and preserve its Business as existing on the date of this Agreement.

 

6.2       Commercially
Reasonable Efforts.  Subject to the terms and conditions set forth in this Agreement, each of Sellers and Buyer shall use
commercially reasonable efforts (subject to, and in accordance with, applicable law) to take, or cause to be taken, all actions,
and to do, or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things necessary, proper
or advisable under applicable laws to consummate, and make effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement, and no party hereto shall take or cause to be taken any action which would reasonably be expected
to prevent, impede or delay the consummation of the transactions contemplated by this Agreement.

 

 

 

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6.3       Discussions
with Other Buyers.  Between the date hereof and the Closing, each of Seller covenants that it shall not enter into any
discussions with third parties concerning or otherwise soliciting offers from third parties for the sale of the Assets, or any
individual Assets or any combination of Assets constituting less than all of the Assets.

 

6.4       Further
Assurances. Each party shall cooperate in good faith with the other and shall take all appropriate action and execute
any documents, instruments, assignments, assumptions or conveyances of any kind which may reasonably be necessary or advisable
to carry out any of the transactions contemplated hereunder, including without limitation any vehicle registrations. The parties
shall cooperate in providing such information as may be necessary to be in compliance with relevant sections of the Internal Revenue
Code.

 

6.5       Risk
of Loss. Until Closing, all risk of loss or damage to the Assets shall be borne by Sellers, and thereafter shall be borne
by Buyer.

 

6.6       Delivery
& Bank Accounts. Sellers shall deliver possession of all Assets to Buyer at Closing. Sellers shall add a person designated
by Buyer as a signer on each of Seller’s bank accounts (as listed by name and address of banking institution, account name
and account and routing numbers on Schedule 6.6 attached hereto), which person is hereby authorized by Seller to immediately
transfer all cash Receivables deposited into such accounts to Buyer.

 

6.7       Indemnification.
Sellers will not have any obligation to indemnify Buyer with respect to any loss until Buyer shall have suffered aggregate
losses relating thereto in excess of $500, at which point each Seller will be obligated to indemnify Buyer for the amount of such
losses in excess of $500.

 

(a)          
Indemnification by Sellers. Each Seller shall defend, indemnify and hold harmless Buyer and each of Buyer’s
officers, directors, members, shareholders, employees, counsel, agents, and their respective successors and assigns (collectively,
the “Buyer Indemnitees”) from and against, and shall reimburse the Buyer Indemnitees for, each and every any
loss, damage, injury, harm, detriment, decline in value, liability, claim, demand, cost of any legal proceeding, settlement, judgment,
award, fine, penalty, tax, fee, charge, cost or expense (including, without limitation, costs associated with avoiding any of the
foregoing, and the fees, disbursements and expenses of attorneys, accountants and other professional advisors) (“Loss”)
incurred by any Buyer Indemnitee, directly or indirectly, arising out of or in connection with: (i) any material inaccuracy in
any representation or warranty of such Seller hereunder; (ii) any material breach or nonfulfillment of any covenant, agreement
or other obligation of such Seller under this Agreement or any related documents; (iii) any liability or similar claim caused by
the actions of such Seller arising from the operations of its Business prior to Closing; or (iv) any debt, liability, or other
obligation of such Seller owing to the actions or responsibility of such Seller arising (or relating to the period) prior to Closing.

 

(b)          
Indemnification by Buyer. Buyer shall defend, indemnify and hold harmless Sellers and each of Sellers’
officers, directors, shareholders, employees, counsel, agents, and their respective successors and assigns (collectively, the “Seller
Indemnitees”) from and against, and shall reimburse the Seller Indemnitees for, each and every Loss incurred by any Seller
Indemnitee, directly or indirectly, arising out of or in connection with: (i) any material inaccuracy in any representation or
warranty of Buyer hereunder; (ii) any material breach or nonfulfillment of any covenant, agreement or other obligation of Buyer
under this Agreement or any related documents; (iii) any liability or similar claim arising from the business operations of the
Business after Closing.

 

(c)          
Indemnification Procedure. If any legal proceeding or other claim for payment or compensation shall be brought
or asserted against a party entitled to indemnification (or any successor thereto) pursuant to Sections 6.7(a) or (b) (each, an
“Indemnitee”) in respect of which indemnity may be sought under this Section 6.7 from an indemnifying party
or any successor thereto (each, an “Indemnitor”), the Indemnitee shall give prompt written notice of such claim
to the Indemnitor. The Indemnitee shall, reasonably and in good faith, assist and cooperate in the defense thereof. Notwithstanding
anything herein to the contrary, the Indemnitor shall not, without the Indemnitee’s prior written consent, settle or compromise
any claim or consent to the entry of judgment with respect thereto, but such consent shall not be unreasonably withheld.

 

6.8       Sellers
Provide Buyer Management Contracts. Prior to closing and immediately after the executing of this Asset Purchase Agreement the
Sellers will enter into management contracts to manage the operation of Earth Born, Inc (CA), Earth Born, Inc (DE), Irie Living
(CA) and Genesis Media Works, LLC. The Seller will receive $1.00 (One dollar) per company a month as payment for managing said
companies. Such Management responsibilities will commence within 3 business days of the execution of this Agreement.

 

 

 

    	 	8	 

     

    

 

ARTICLE VII

 

CONDITIONS

 

7.1       Conditions
to Each Party’s Obligations under this Agreement. The respective obligations of each party to effect the transactions
contemplated by this Agreement shall be subject to the fulfilment or waiver in writing by mutual agreement of the parties at or
prior to Closing of the following conditions:

 

(a)       None
of the parties shall be subject to any decree, order or injunction of a United States federal or state court or foreign court of
competent jurisdiction, which prohibits the consummation of the transactions contemplated by this Agreement, and no statute, rule
or regulation shall have been enacted by any governmental authority which prohibits or makes unlawful the consummation of the transactions
contemplated by this Agreement.

 

(b)       No
action, suit, investigation or proceeding before any governmental authority seeking to prevent or prohibit the consummation of
the transactions contemplated by this Agreement shall be pending.

 

7.2       Conditions
to Obligations of Seller under this Agreement. The obligation of Sellers to effect the transactions contemplated by this
Agreement shall be subject to the fulfilment or waiver in writing by Sellers at or prior to the Closing of the following conditions:

 

(a)       Buyer
shall have performed in all material respects Buyer’s covenants and agreements contained in this Agreement required to be
performed on or prior to the Closing.

 

(b)       The
representations and warranties of Buyer contained in this Agreement and in any document delivered in connection herewith shall
be true and correct in all respects as of the Closing.

 

(c)       Buyer
shall have made or caused to be made all deliveries required by Section 3.2 of this Agreement.

 

(d)       Buyer
shall attest to its due diligence and confirm that it has had an adequate opportunity to review all documents material to this
transaction.

 

7.3       Conditions
to Obligations of Buyer under this Agreement.  The obligation of Buyer to effect the transactions contemplated by this
Agreement shall be subject to the fulfilment or waiver in writing by Buyer at or prior to the Closing of the following conditions:

 

(a)       Each
of Sellers shall have performed in all material respects its covenants and agreements contained in this Agreement required to be
performed on or prior to the Closing.

 

(b)       The
representations and warranties of each of Sellers contained in this Agreement and in any document delivered in connection herewith
shall be true and correct in all respects as of the Closing.

 

(c)       Since
the date of this Agreement, there shall not have occurred and be continuing material adverse effect to the Assets or the Businesses
within any of Sellers’ control.

 

(d)       Each
of Sellers shall have made all deliveries required by Section 3.3 of this Agreement.

 

(e)       There
must not have been made or threatened by any person any claim asserting that such person (a) is the holder or the beneficial
owner of, or has the right to acquire or to obtain beneficial ownership of the Assets or (b) is entitled to all or any portion
of the Purchase Price payable for the Assets.

 

(f)       Buyer
shall have obtained all necessary third-party and governmental consents, authorizations, licenses and/or permits to the sale of
the Assets, including, without limitation, all appropriate licenses or permits as determined by Buyer in its sole discretion.

 

 

 

    	 	9	 

     

    

 

ARTICLE VIII

 

RESTRICTIVE COVENANTS

 

8.1       Non-Solicitation
Covenants.  Sellers and their principals, Karen Lane, Ricky Potts, and Ronni Rosenfeld, each agree and promise that, except
with the express written consent of Buyer, none of them or their spouses or other children will directly or indirectly, alone or
in concert with others, for any or no reason, do or undertake any of the following activities at any time after the Closing for
the maximum time as permitted by law:

 

(a)       solicit,
divert, accept business from or otherwise take away or interfere with any customers of the Businesses; or

 

(c)       solicit,
divert or induce any of Buyer’s employees to leave Buyer’s employment; or

 

(d)       solicit,
divert or induce any of Buyer’s contractors or outside consultants to terminate their contractual relationship with Buyer.

 

8.2       Non-Competition
Covenants.  Sellers and their principals, Karen Lane, Ricky Potts, and Ronni Rosenfeld, each agree and promise that, except
with the express written consent of Buyer, none of them or their spouses or other children will directly or indirectly, alone or
in concert with others for any or no reason, do or undertake any of the following activities for three (3) years (or such lesser
time as permitted by law) beginning effective as of Closing: operate or conduct a Competitive Business, whether as an owner, part-owner,
affiliate, partner, agent, joint venturer, investor or in any other capacity. “Competitive Business” refers to any
CBD or hemp-related nutraceutical or botanical business.

 

8.3       Reasonableness
of Restrictions. Sellers and their principals, Karen Lane, Ricky Potts, and Ronni Rosenfeld, each hereby represent and
warrant to Buyer that they have carefully considered the provisions of this Article VIII and agree that the restrictions set forth,
including without limitation the time period and definition of Competitive Business, are reasonable and restrict each of Sellers
and their principals rights to compete only to the extent necessary to protect the valid and legitimate business interests of Buyer.
Sellers and their principals, Karen Lane, Ricky Potts, and Ronni Rosenfeld, each further represent and warrant to Buyer that they
understand the legal and other consequences of entering into the promises and agreements contained in this Article VIII. If any
restriction, including without limitation, any time restriction, contained in this Article VIII is deemed to be unenforceable by
a court of competent jurisdiction, the parties hereto agree that such court may modify and enforce such restrictions to the extent
it determines to be reasonable under the circumstances existing at that time.

 

8.4       Injunction.
In the event of a breach or threatened breach by any of Sellers or their principals, Karen Lane, Ricky Potts, and Ronni Rosenfeld,
of the provisions of this Article VIII, Buyer shall be entitled to an injunction restraining such party as the case may be, from
engaging in the competitive activities proscribed by this article. The parties further agree that a violation of such provisions
will cause immediate and irreparable damage to Buyer. Nothing contained in this Article VIII shall prohibit Buyer from also pursuing
any other remedies available at law, and no action by Buyer in pursuing any other remedies shall constitute an election to forego
other remedies.

 

8.5       Written
Consent for Trevor Hill. The Buyer provides written consent that the total limitations for Trevor Hill shall be as stated
below, and Sections 8.1, 8.2, 8.3, and 8.4 do not apply to Mr. Trevor Hill.

 

(a.) Trevor Hill will not request, induce,
or attempt to induce any Client to terminate its relationship with Irie. Client means: Wholesale accounts, Distributors, individual
Customers, and Companies currently in negotiations or already contracted with Irie.

 

(b.) Trevor Hill will not attempt to hire,
employ, or associate in business with any person employed by Irie excepting Andy Kim.

 

8.6       Survival
of Protections. The covenants and agreements contained in this Article VIII shall survive the termination or expiration
of this Agreement.

 

 

 

    	 	10	 

     

    

 

ARTICLE IX

 

TERMINATION

 

9.1       Termination
by Mutual Consent.  This Agreement may be terminated at any time prior to the Closing by the written agreement of Sellers
and Buyer.

 

9.2       Termination
by Seller or Buyer. At any time prior to Closing, this Agreement may be terminated by Sellers or Buyer, if a United States
federal or state court of competent jurisdiction or United States governmental authority shall have issued an order, decree or
ruling or taken any other action (including the enactment of any statute, rule, regulation, decree or executive order) permanently
restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement (the “Restraining Order”)
and such Restraining Order shall have become final and non-appealable; provided, however, that (i) the factual basis
for the Restraining Order shall not be or relate to the breach of any representation, warranty, covenant or agreement set forth
in this Agreement by the party seeking to terminate the Agreement under this Section and (ii) the party seeking to terminate this
Agreement pursuant to this Section shall have complied in all material respects with Section 6.2 and shall have used its commercially
reasonable efforts to remove such injunction, order or decree.

 

9.3       Termination
by Sellers.  At any time prior to Closing, this Agreement may be terminated by Sellers if (i) there has been a material
breach by Buyer of any representation, warranty, covenant or agreement set forth in this Agreement or if any representation or
warranty of Buyer shall have become untrue in any material respect, in either case such that the conditions set forth in Section
7.2 would not be satisfied and (ii) such breach is not curable, or, if curable, is not cured within 30 days after written
notice of such breach is given to Buyer by Sellers; provided, however, that the right to terminate this Agreement
pursuant to this Section shall not be available to Sellers if any of Sellers, at such time, is in material breach of any representation,
warranty, covenant or agreement set forth in this Agreement such that the conditions set forth in Section 7.3 shall not be satisfied.

 

9.4       Termination
by Buyer for Cause. At any time prior to Closing, this Agreement may be terminated by Buyer if (i) there has been
a material breach by any of Sellers of any representation, warranty, covenant or agreement set forth in this Agreement or if any
representation or warranty of any of Seller shall have become untrue in any material respect, in either case such that the conditions
set forth in Section 7.3 would not be satisfied and (ii) such breach is not curable, or, if curable, is not cured within 30
days after written notice of such breach is given to such Seller by Buyer; provided, however, that the right to terminate
this Agreement pursuant to this Section shall not be available to Buyer if Buyer, at such time, is in material breach of any representation,
warranty, covenant or agreement set forth in this Agreement such that the conditions set forth in Section 7.2 shall not be satisfied.

 

9.5       Termination
by Buyer without Cause. At any time prior to Closing, this Agreement may be terminated by Buyer for any reason not covered
by Sections 9.1-9.4, but in such case, the Deposit Shares shall be immediately released by Escrow Agent to Sellers as a “break-up
fee.”

 

ARTICLE X

 

MISCELLANEOUS

 

10.1       Tax
and Information Returns. The parties shall reflect the allocations of the Purchase Price set forth in Subsection
2.3 in any and all applicable tax and information returns.

 

10.2       Confidentiality.
Each Party shall use all information that it obtains from the others pursuant to this Agreement solely for the effectuation
of the transactions contemplated by this Agreement or for other purposes consistent with the intent of this Agreement and shall
not use any of such information for any other purpose, including, without limitation, the competitive detriment of the other Parties.
Each Party may disclose such information to its/their respective affiliates, counsel, accountants, tax advisors and consultants
as necessary to consummate this transaction. This provision shall not prohibit the use or disclosure of confidential information
pursuant to court order or which has otherwise become publicly available through no fault of the recipient Party.

 

10.3       Notices.
All notices, requests, consents and demands shall be given to or made upon the parties at their respective addresses set forth
below, or at such other address as a party may designate in writing delivered to the other parties. Unless otherwise agreed in
this Agreement, all notices, requests, consents and demands shall be given or made by personal delivery with signature required,
by confirmed air courier, or by certified first class mail, return receipt requested, postage prepaid, to the party addressed as
aforesaid. If sent by confirmed air courier, such notice shall be deemed to be given upon the earlier to occur of the date upon
which it is actually received by the addressee as confirmed by the air courier (or if the date of such confirmed delivery is not
a business day, the next succeeding business day). If mailed, such notice shall be deemed to be given upon the earlier to occur
of the date upon which it is actually received by the addressee or the third business day following the date upon which it is deposited
in a first-class postage-prepaid envelope in the United States mail addressed to such address.

 

 

 

    	 	11	 

     

    

 

	 	If to Sellers:	Genesis Media
Works, LLC
	 	 	Attn: Trevor Hill
	 	 	2150 S. Main Street
#508
	 	 	Salt Lake City, UT 84115
	 	 	 
	 	 	Earth Born, Inc. [a
California corporation]
	 	 	Attn: Karen Lane
	 	 	1220 Rosecrans #121
	 	 	San Diego, CA 92106
	 	 	 
	 	 	Earth Born, Inc. [a
Delaware corporation]
	 	 	Attn: Trevor Hill
	 	 	874 Walker Road, Suite
C
	 	 	Dover, Delaware 19904
	 	 	 
	 	 	Irie Living
	 	 	Attn: Karen Lane
	 	 	1220 Rosecrans #121
	 	 	San Diego, CA 92106
	 	 	 
	 	If to Buyer:	Leafceuticals Inc
	 	 	Attn: Raymond Medeiros
	 	 	3571 East Sunset Rd.
	 	 	Suite 420
	 	 	Las Vegas, NV 89120

 

10.4       Assignment.
Without the prior written consent of the other party, the benefits of this Agreement may not be assigned or in any other manner
transferred and the obligations may not be delegated. Subject to the foregoing limitation on assignment and delegation, this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective personal representatives, successors
and assigns, and no other person shall have any right, benefit or obligation hereunder.

 

10.5       Choice
of Law; Venue. This Agreement shall be construed in accordance with, and governed by, the substantive laws of, the
State of Nevada, without reference to principles governing choice or conflicts of laws. Venue for any action hereunder shall lie
exclusively in the courts of the State of Nevada and/or the United States District Court for the District of Nevada.

 

10.6       Severability.
In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the validity of any other provision
hereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision were not contained herein;
provided that the Agreement as so modified preserves the basic intent of the parties.

 

10.7       Captions.
The captions used herein are for ease of reference only and shall not define or limit the provisions hereof.

 

 

 

    	 	12	 

     

    

 

10.8       Sale
of Assets Only. This Agreement constitutes a sale of the Assets only and is not a sale of any interest in or securities
of Sellers. Buyer is not assuming and shall not be responsible for the payment of any liabilities or obligations of Sellers whatsoever,
except as expressly set forth herein.

 

10.9       Enforcement.
In the event of a dispute between the parties arising under this Agreement, the party prevailing in such dispute shall be entitled
to collect such party’s costs from the other party, including without limitation court costs and reasonable attorneys’
fees, whether such sums are expended with or without suit, at trial or on appeal.

 

10.10       Entire
Agreement; Amendments. This Agreement and the exhibits attached hereto constitute the entire agreement between the
parties hereto with respect to the subject matter contained herein, and there are no covenants, terms or conditions, express or
implied, other than as set forth or referred to herein. This Agreement supersedes all prior agreements between the parties hereto
relating to all or part of the subject matter herein. No representations, oral or written, modifying or contradicting the terms
of this Agreement have been made by any party except as contained herein. This Agreement may not be amended, modified or canceled
except as provided herein or by written agreement of the parties signed by the party against whom enforcement is sought.

 

10.11       Counterparts.
Any number of counterparts of this Agreement may be signed and delivered and each shall be considered an original and together
they shall constitute one agreement.

 

10.12       Survival.
All of the covenants, representations and warranties contained in this Agreement shall survive the Closing and shall not be merged
therein.

 

 

[signatures on following pages]

 

 

 

 

 

 

 

 

 

    	 	13	 

     

    

 

In
Witness Whereof, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

 

SELLERS:

 

Earth Born, Inc.

(a California corporation)

 

 

/s/ Karen Lane

Name:       Karen
Lane

Title:       COO

 

Earth Born, Inc.

(a Delaware corporation)

 

 

/s/ Trevor Hill

Name:       Trevor
Hill

Title:       CEO

 

Irie Living

 

 

/s/ Ricky Potts

Name:       Ricky
Potts

Title:       CEO

 

Genesis Media Works,
LLC

 

 

/s/ Trevor Hill

Name:       Trevor
Hill

Title:       Managing
Member

 

BUYER:

 

Leafceuticals, Inc

 

 

/s/ Clifford Perry

Name:       Clifford
Perry

Title:       President

 

 

[additional signatures on next page]

 

 

 

    	 	14	 

     

    

 

CONSENT AND AGREEMENT

 

The undersigned, constituting
all of the shareholders, members, managers, directors, and/or officers of each of Sellers hereby execute this Agreement for the
sole purpose of acknowledging their consent to and agreement to be bound by the provisions of Article VIII of this Agreement individually,
and to otherwise memorialize their consent to Sellers entering into this Agreement.

 

 

Trevor Hill

 

 

/s/ Trevor Hill

Individually

 

 

Karen Lane

 

 

/s/ Karen Lane

Individually

 

 

Ricky Potts

 

 

/s/ Ricky Potts

Individually

 

 

Ronni Rosenfeld

 

 

/s/ Ronni Rosenfeld

Individually

 

 

 

    	 	15	 

     

    

 

SCHEDULE 1.1

 

Assets

 

	Entity: 	 	Earth
    Born, Inc (CA) 	 	Earth Born, Inc (DE)	 	Irie Living,

                                                                                Mutual Benefit Corp
	 	Genesis Media Works, LLC

                                                                              DBA Irie Hemp Company

	Websites:	 	bestcbdoilonline.com	 	bestcbdoilonline.com	 	iriemedicinals.com	 	iriecbd.com
	 	 	earthbornbotanicals.com	 	earthbornbotanicals.com	 	irieliving.org	 	santacruzbotanicals.com
	 	 	terrasway.com	 	terrasway.com	 	 	 	iriehemp.com
	 	 	pranahemp.com	 	pranahemp.com	 	 	 	 
	 	 	nirvanahemp.com	 	nirvanahemp.com	 	 	 	 
	 	 	iriejournal.co	 	 	 	 	 	 
	A/R	 	$31,833.65 past due; $26,241,66 not yet due	 	$61,553.46 past due	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Brands:	 	Prana, Nirvana, Terra's Way, EarthBorn	 	Prana, Nirvana, Terra's Way, EarthBorn	 	Irie Medicinals 	 	Irie, Santa Cruz Botanicals
	 	 	 	 	 	 	 	 	 
	 	 	Batch Process, Inventory Process, CRM	 	Trademarks pending:  Irie CBD; Live Life Irie 	 	Oakland Med/Rec Certification in process 	 	Amazon store 
	 	 	IP and Know How	 	IP and Know How	 	IP and Know How	 	IP and Know How
	 	 	Affiliate Programs/Tracking 	 	Affiliate Programs/Tracking 	 	1:1 Product $134,200 (retail value)	 	 
	 	 	Good Will and Company Market Share/Reputation 	 	Good Will and Company Market Share/Reputation 	 	Good Will	 	Good Will
	 	 	Formulations (Recipes)	 	Formulations (Recipes)	 	Formulations (Recipes)	 	Formulations (Recipes)
	 	 	Equipment: $ 15,540	 	Equipment: $12,413	 	 	 	 
	 	 	Ingredients: $36,000	 	 	 	 	 	 
	 	 	Inventory: $853,313.90 (retail value)	 	 	 	 	 	 
	 	 	Labels:  $7,000	 	 	 	 	 	 
	 	 	Packaging Materials: $20,000	 	 	 	 	 	 
	 	 	Raw product:  703g Crumble $3,750; Reakiro
    Oil $9,177.50; Extract $6,000; Isolate/Dab Rocks $9,000	 	 	 	 	 	 
	 	 	Swag: $6,000	 	 	 	 	 	 
	 	 	Dynamic Processor Licensing Agreemnt	 	 	 	 	 	 
	 	 	Contracts with Distributors	 	 	 	 	 	 
	 	 	Contracts wtih Large Stores	 	 	 	 	 	 
	 	 	Contracts wtih Wholesalers 	 	 	 	 	 	 

 

 

 

 

 

    	 	16	 

     

    

 

SCHEDULE 1.2 

 

Excluded Assets

 

 

 

Only excluded asset is the Santa Cruz domain, website(s) and
associated trademarks.

 

 

 

 

 

 

 

 

 

    	 	17	 

     

    

 

SCHEDULE 1.3 

 

Assumed Debts, Liabilities and Obligations

 

Promissory Note attached hereto.

 

PROMISSORY
NOTE

 

	$100,000	 	March 3, 2018

 

 

FOR
VALUE RECEIVED, Earth Born, Inc. with an address 874 Walker Road, Suite C, Dover Delaware, 19904 (referred to herein as "Debtor" ), hereby irrevocably promises and agrees to pay to the order of Janice Jessop, a California individual with an
address at 1554 Via Madrina, San Diego, CA, 92111 ("Creditor"), or at such other place as set forth herein or as designated
in writing by the Holder (as defined below) hereof, in lawful money of the United States of America, the principal sum of One
Hundred Thousand dollars ($100,000), together with interest thereon (if any) and other fees
in connection therewith, all in accordance with the terms and conditions set forth below.

 

1.             
There is no interest on the unpaid principal balance, Debtor shall pay $500 by the first of each month following the date
hereof to Holder, and full payment of this Note shall be due on or before March 3, 2020.

 

2.             
Creditor may sell, assign, transfer, pledge or hypothecate this Note and any or all of its rights and remedies hereunder
at any time, with or without notice to Debtor, to any person or entity. Creditor and its successors and assigns under this Note
are sometimes referred to herein as the "Holder."

 

3.             
Debtor may prepay any amount due hereunder, in whole or in part, at any time without penalty or premium for such early
payment D ebtor shall also be entitled to offset against this Note any amount owed by Creditor to Debtor, including without limitation
any losses or expenses actually incurred by Debtor as a result of a breach by Creditor of any of its obligation s between Debtor
and Creditor.

 

4.             
If (a) any payment or delivery required by this Note is not made when due hereunder, or any obligation or covenant undertaken
by Debtor hereunder is not performed or observed as and when required hereby, (b) Debtor defaults in the performance of any obligation
evidenced by this Note, (c) any representation or warranty made by Debtor in this Note or any other instrument, agreement or document
delivered by Debtor or any other party for Debtor's benefit in connection here\\ri.th pr oves to ha ve been materially false or
inaccurate when made, (d) any event of default occurs under anyinstrument securing the obligations evidenced by this Note, or
(e) Debtor files an assignment for the benefit of creditors or for relief under any provisionsof the Bankruptcy Code, or suffers
an involuntary petition in bankruptcy or receivership to be filed and not vacated within 30 days, then the Holder may at its sole
option consider the entire unpaid principal balance and accrued but unpaid interest hereunder at once become due and payable without
notice (time being the essence hereof). The exercise or failure to exercise such remedy shall no t constitute a waiver of the
right to exercise such remedy or preclude the exercise of any other remedy in the event of any subsequent default, event or circumstance
that gives rise to such right of acceleration.

 

5.              In
the event that any payment under this Note is not made at the time and in the manner required (whether before or
after maturity),Debtor agrees to pay any and all costs and expenses (regardless of the particular nature thereof and whether
incurred before or after the initiation of suit or before or after judgment) which may be incurred by Holder in connection
with the enforcement of any of its rights under this Note, including, but not limited to, attorneys' fees and all costs and
expenses of collection.

 

6.            
Debtor, on behalf of itselfand all sureties, guarantors, and endorsers hereof, if any, hereby waives presentment for payment,
demand, and notice of dishonor and nonpayment of this Note, and consents to any and all extensions of time, renewals, waivers,
or modifications that may be granted by Holder with respect to the payment or other provisions of this Note, and to the release
of any security, or any part thereof, with or without substitution.

 

 

 

    	 	18	 

     

    

 

7.            
The failure of Holder in any one or more instances to insist upon strict performance of any of the terms and provisions
of this Note, or to exercise any option conferred herein shall not be construed as a waiver or relinquishment, to any extent,
of the right to assert or rely upon any such terms, provisions or options on any future occasion.

 

8.             
This Note is delivered in the State of California and shall be governed by and construed in accordance with the laws of
said state, without giving effect to any conflict of laws provisions. This Note shall bind the successors and assigns of D ebtor
and shall inure to benefit of the successors and assigns of Creditor.

 

9.             
T his Note constitutes the entire understanding and agreement between the parties with regard to the su bject matter s
her eo f and ther eo f, and supersedes and replaces any prior understanding or agreement, oral or written, relating to such subject
matters.

 

IN WITNESS
WHEREOF, Debtor has executed this Note on or as of the day and year first above written.

 

 

/s/
Karen L. Lane          

Karen
L. Lane

Title: COO

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

SCHEDULE 6.6

 

Sellers’ Transferred Bank Accounts

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

EXHIBIT A

 

Assignment & Bill of Sale

 

See Next Pages

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

ASSIGNMENT AND BILL OF SALE

 

For good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Earth Born, Inc., a California corporation, (“Assignor”),
does hereby grant, bargain, transfer, sell, assign, convey and deliver to Leafceuticals, Inc, a Nevada corporation, or its assigns
(“Assignee”), free and clear of any and all liens, encumbrances, charges or claims, all right, title and interest
in and to the Cash and Cash Equivalents, Equipment, Inventory and Supplies, and Receivables as such terms are defined in the Asset
Purchase Agreement between the parties of even date herewith. Assignor, for itself, its successors and assigns, hereby covenants
and agrees that, at any time and from time to time forthwith upon the written request of Assignee, at no additional cost to Assignor,
Assignor will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, each and all of such
further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be required by Assignee
in order to assign, transfer, set over, convey, assure and confirm unto and vest in Assignee, its successors and assigns, title
to the assets sold, conveyed, transferred and delivered by this Assignment and Bill of Sale.

 

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

 

Executed effective
as of the ___ day of ______________, 2018.

 

ASSIGNOR:

 

Earth Born, Inc.

(a California corporation)

 

 

                                                                                

Name:     Karen
Lane

Title:       COO

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

ASSIGNMENT AND BILL OF SALE

 

For good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Earth Born, Inc., a Delaware corporation, (“Assignor”),
does hereby grant, bargain, transfer, sell, assign, convey and deliver to Leafceuticals, Inc, a Nevada corporation, or its assigns
(“Assignee”), free and clear of any and all liens, encumbrances, charges or claims, all right, title and interest
in and to the Cash and Cash Equivalents, Equipment, Inventory and Supplies, and Receivables as such terms are defined in the Asset
Purchase Agreement between the parties of even date herewith. Assignor, for itself, its successors and assigns, hereby covenants
and agrees that, at any time and from time to time forthwith upon the written request of Assignee, at no additional cost to Assignor,
Assignor will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, each and all of such
further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be required by Assignee
in order to assign, transfer, set over, convey, assure and confirm unto and vest in Assignee, its successors and assigns, title
to the assets sold, conveyed, transferred and delivered by this Assignment and Bill of Sale.

 

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

 

Executed effective
as of the ___ day of ______________, 2018.

 

ASSIGNOR:

 

Earth Born, Inc.

(a Delaware corporation)

 

 

                                                                                

Name:     Trevor
Hill

Title:       CEO

 

 

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

ASSIGNMENT AND BILL OF SALE

 

For good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Irie Living, a California benefit corporation, (“Assignor”),
does hereby grant, bargain, transfer, sell, assign, convey and deliver to Leafceuticals, Inc, a Nevada corporation, or its assigns
(“Assignee”), free and clear of any and all liens, encumbrances, charges or claims, all right, title and interest
in and to the Cash and Cash Equivalents, Equipment, Inventory and Supplies, and Receivables as such terms are defined in the Asset
Purchase Agreement between the parties of even date herewith. Assignor, for itself, its successors and assigns, hereby covenants
and agrees that, at any time and from time to time forthwith upon the written request of Assignee, at no additional cost to Assignor,
Assignor will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, each and all of such
further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be required by Assignee
in order to assign, transfer, set over, convey, assure and confirm unto and vest in Assignee, its successors and assigns, title
to the assets sold, conveyed, transferred and delivered by this Assignment and Bill of Sale.

 

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

 

Executed effective
as of the ___ day of ______________, 2018.

 

ASSIGNOR:

 

Irie Living

 

 

                                                                                

Name:     Ricky
Potts

Title:       CEO

 

 

 

 

 

 

 

 

 

    	 	24	 

     

    

 

ASSIGNMENT AND BILL OF SALE

 

For good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Genesis Media Works, LLC, a Utah limited liability company,
(“Assignor”), does hereby grant, bargain, transfer, sell, assign, convey and deliver to Leafceuticals, Inc,
a Nevada corporation, or its assigns (“Assignee”), free and clear of any and all liens, encumbrances, charges
or claims, all right, title and interest in and to the Cash and Cash Equivalents, Equipment, Inventory and Supplies, and Receivables
as such terms are defined in the Asset Purchase Agreement between the parties of even date herewith. Assignor, for itself, its
successors and assigns, hereby covenants and agrees that, at any time and from time to time forthwith upon the written request
of Assignee, at no additional cost to Assignor, Assignor will do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered, each and all of such further acts, deeds, assignments, transfers, conveyances, powers of attorney and
assurances as may reasonably be required by Assignee in order to assign, transfer, set over, convey, assure and confirm unto and
vest in Assignee, its successors and assigns, title to the assets sold, conveyed, transferred and delivered by this Assignment
and Bill of Sale.

 

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

 

Executed effective
as of the ___ day of ______________, 2018.

 

ASSIGNOR:

 

Genesis Media Works,
LLC

 

 

                                                                                

Name:     Trevor
Hill

Title:       Managing
Member

 

 

 

 

 

 

 

 

 

    	 	25	 

     

    

 

EXHIBIT B

 

Assignment of Intangible Assets

 

Sellers have provided a list of Intangible Assets and they will
be attached here.

 

 

ASSIGNMENT OF INTANGIBLE ASSETS

 

This ASSIGNMENT OF
INTANGIBLE ASSETS (the “Assignment”) is made effective as of the ___ day of _______________, 2018, by and between Earth
Born, Inc., a California corporation (“Assignor”), and Leafceuticals, Inc, a Nevada corporation (“Assignee”).

 

R E C I T A L S

 

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

 

B.   
Included within the Assets being assigned to Assignee, and subject to the terms of the Purchase Agreement, Assignor is also
assigning to Assignee all of its rights, title and interest in and to the intangible assets associated with the Business of Assignor
as further described in the Purchase Agreement, including the assets described on Schedule 1 to the Purchase Agreement,
and the proprietary rights, phone numbers, trade secrets, domain names, business records, customer relationships, contracts and
goodwill relating to Assignor’s Business and all of Assignor’s rights in and to the Trade Names (collectively the “Intangible
Assets”).

 

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

 

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

 

A G R E E M E N T

 

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

 

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

 

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

 

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

 

ASSIGNOR:

 

Earth Born, Inc.

(a California corporation)

 

 

                                                                                

Name:     Karen
Lane

Title:       COO

 

 

 

    	 	26	 

     

    

 

ASSIGNMENT OF INTANGIBLE ASSETS

 

This ASSIGNMENT OF
INTANGIBLE ASSETS (the “Assignment”) is made effective as of the ___ day of _______________, 2018, by and between Earth
Born, Inc., a Delaware corporation (“Assignor”), and Leafceuticals, Inc, a Nevada corporation (“Assignee”).

 

R E C I T A L S

 

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

 

E.    
Included within the Assets being assigned to Assignee, and subject to the terms of the Purchase Agreement, Assignor is also
assigning to Assignee all of its rights, title and interest in and to the intangible assets associated with the Business of Assignor
as further described in the Purchase Agreement, including the assets described on Schedule 1 to the Purchase Agreement,
and the proprietary rights, phone numbers, trade secrets, domain names, business records, customer relationships, contracts and
goodwill relating to Assignor’s Business and all of Assignor’s rights in and to the Trade Names (collectively the “Intangible
Assets”).

 

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

 

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

 

A G R E E M E N T

 

4.    
Assignor hereby grants, transfers, assigns and conveys to Assignee, absolutely and unconditionally, free and clear of all
liens, encumbrances, mortgages or any other type of security interest, all of its right, title and interest in and to all of the
Intangible Assets.

 

5.    
Assignor transfers such Intangible Assets to Assignee, its successors and assigns, to have and to hold to and for its and
their own use and benefit forever. Assignor, for itself and its successors and assigns, hereby covenants that, from time to time
after delivery of this instrument, at Assignee’s request and without further consideration, at no additional cost to Assignor,
Assignor will execute and deliver, or will cause to be executed and delivered, such other instruments of conveyance and transfer
and take such other actions as Assignee reasonably may require (such as, but not limited to, assisting with the transfer of any
business accounts, such as a telephone account) to more effectively vest in the Assignee the Intangible Assets and to put Assignee
in possession of the Intangible Assets, and to do all other things and execute and deliver all other instruments and documents
as may be required to effect the same.

 

6.    
This Assignment shall be construed in accordance with, and governed by, the laws of the State of Nevada, without regard
to its conflict of laws doctrine. Assignor consents and submits to the exclusive jurisdiction of the state courts located in Clark
County, State of Nevada, for any disputes or controversies arising out of this Assignment.

 

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

 

ASSIGNOR:

 

Earth Born, Inc.

(a Delaware corporation)

 

 

                                                                                

Name:     Trevor
Hill

Title:       CEO

 

 

 

    	 	27	 

     

    

 

ASSIGNMENT OF INTANGIBLE ASSETS

 

This ASSIGNMENT OF
INTANGIBLE ASSETS (the “Assignment”) is made effective as of the ___ day of _______________, 2018, by and between Irie
Living, a California benefit corporation (“Assignor”), and Leafceuticals, Inc, a Nevada corporation (“Assignee”).

 

R E C I T A L S

 

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

 

H.   
Included within the Assets being assigned to Assignee, and subject to the terms of the Purchase Agreement, Assignor is also
assigning to Assignee all of its rights, title and interest in and to the intangible assets associated with the Business of Assignor
as further described in the Purchase Agreement, including the assets described on Schedule 1 to the Purchase Agreement,
and the proprietary rights, phone numbers, trade secrets, domain names, business records, customer relationships, contracts and
goodwill relating to Assignor’s Business and all of Assignor’s rights in and to the Trade Names (collectively the “Intangible
Assets”).

 

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

 

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

 

A G R E E M E N T

 

7.    
Assignor hereby grants, transfers, assigns and conveys to Assignee, absolutely and unconditionally, free and clear of all
liens, encumbrances, mortgages or any other type of security interest, all of its right, title and interest in and to all of the
Intangible Assets.

 

8.    
Assignor transfers such Intangible Assets to Assignee, its successors and assigns, to have and to hold to and for its and
their own use and benefit forever. Assignor, for itself and its successors and assigns, hereby covenants that, from time to time
after delivery of this instrument, at Assignee’s request and without further consideration, at no additional cost to Assignor,
Assignor will execute and deliver, or will cause to be executed and delivered, such other instruments of conveyance and transfer
and take such other actions as Assignee reasonably may require (such as, but not limited to, assisting with the transfer of any
business accounts, such as a telephone account) to more effectively vest in the Assignee the Intangible Assets and to put Assignee
in possession of the Intangible Assets, and to do all other things and execute and deliver all other instruments and documents
as may be required to effect the same.

 

9.    
This Assignment shall be construed in accordance with, and governed by, the laws of the State of Nevada, without regard
to its conflict of laws doctrine. Assignor consents and submits to the exclusive jurisdiction of the state courts located in Clark
County, State of Nevada, for any disputes or controversies arising out of this Assignment.

 

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

 

ASSIGNOR:

 

Irie Living

 

 

                                                                                

Name:     Ricky
Potts

Title:       CEO

 

 

 

    	 	28	 

     

    

 

ASSIGNMENT OF INTANGIBLE ASSETS

 

This ASSIGNMENT OF
INTANGIBLE ASSETS (the “Assignment”) is made effective as of the ___ day of _______________, 2018, by and between Genesis
Media Works, LLC, a Utah limited liability company (“Assignor”), and Leafceuticals, Inc, a Nevada corporation
(“Assignee”).

 

R E C I T A L S

 

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

 

K.   
Included within the Assets being assigned to Assignee, and subject to the terms of the Purchase Agreement, Assignor is also
assigning to Assignee all of its rights, title and interest in and to the intangible assets associated with the Business of Assignor
as further described in the Purchase Agreement, including the assets described on Schedule 1 to the Purchase Agreement,
and the proprietary rights, phone numbers, trade secrets, domain names, business records, customer relationships, contracts and
goodwill relating to Assignor’s Business and all of Assignor’s rights in and to the Trade Names (collectively the “Intangible
Assets”).

 

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

 

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

 

A G R E E M E N T

 

10. 
Assignor hereby grants, transfers, assigns and conveys to Assignee, absolutely and unconditionally, free and clear of all
liens, encumbrances, mortgages or any other type of security interest, all of its right, title and interest in and to all of the
Intangible Assets.

 

11. 
Assignor transfers such Intangible Assets to Assignee, its successors and assigns, to have and to hold to and for its and
their own use and benefit forever. Assignor, for itself and its successors and assigns, hereby covenants that, from time to time
after delivery of this instrument, at Assignee’s request and without further consideration, at no additional cost to Assignor,
Assignor will execute and deliver, or will cause to be executed and delivered, such other instruments of conveyance and transfer
and take such other actions as Assignee reasonably may require (such as, but not limited to, assisting with the transfer of any
business accounts, such as a telephone account) to more effectively vest in the Assignee the Intangible Assets and to put Assignee
in possession of the Intangible Assets, and to do all other things and execute and deliver all other instruments and documents
as may be required to effect the same.

12. 
This Assignment shall be construed in accordance with, and governed by, the laws of the State of Nevada, without regard
to its conflict of laws doctrine. Assignor consents and submits to the exclusive jurisdiction of the state courts located in Clark
County, State of Nevada, for any disputes or controversies arising out of this Assignment.

 

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

 

ASSIGNOR:

 

Genesis Media Works,
LLC

 

 

                                                                                

Name:     Trevor
Hill

Title:       Managing
Member

 

 

 

    	 	29	 

     

    

 

EXHIBIT C

 

Escrow Agreement

 

The details are outlined within this Asset
Purchase Agreement and the agreement with the Escrow Agent to hold the stock will be attached here.

 

 

 

 

 

 

 

 

 

    	 	30crsp-ex1013_539.htm

 

Exhibit 10.13

 

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is made as of the 13th day of November, 2017, between CRISPR Therapeutics, Inc., a Delaware corporation (the “Company”‘), and Michael Tomsicek (the “Executive” and, together with the Company, the “Parties” or each individually, a “Party”).

WHEREAS, the Company is a wholly owned subsidiary of CRISPR Therapeutics AG (“Parent” or “CRISPR AG”):  and 

WHEREAS, Parent and the Company are each subject to the Swiss Ordinance act against excessive compensation in listed companies as a result of the of listing of the common shares of Parent on the NASDAQ Global Market.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.Position and Duties.  The employment of the Executive by the Company will commence on the date hereof.  The Executive will serve as the Senior Vice President, Chief Financial Officer of the Company.  The Executive shall have responsibilities and duties consistent with such position and such other responsibilities and duties as may from time to time be prescribed by the Chief Executive Officer of the Company (the “CEO”) which are not inconsistent with the Executive’s skills and experience or his ability to discharge his responsibilities in the positions noted above.  The Executive shall devote the Executive’s full working time and efforts to the business and affairs of the Company except as otherwise permitted under Section 3(b)(i).  Notwithstanding the foregoing, the Executive may engage in charitable or other community activities, as long as such services and activities are disclosed to the Board of Directors of Parent (the “Board”) and do not materially interfere with the Executive’s performance of the Executive’s duties to the Company as provided in this Agreement.  During the period which the Executive is employed pursuant to this Agreement (the “Employment Period”), the Executive’s principal place of employment will be in the Greater Boston, Massachusetts area; however, the Company may require the Executive to travel temporarily to other locations in connection with the Company’s business.

2.Compensation and Related Matters.

(a)Base Salary.  During the Employment Period, the Company shall pay the Executive, as compensation for the performance of the Executive’s duties and obligations under this Agreement, an annual base salary of $380,000, payable in a manner that is consistent with the Company’s usual payroll practices for senior executives.  The Executive’s base salary shall 

1

 

be reviewed annually by each of the Compensation Committee of the Board or any successor to such committee (the “Committee”) and the Board or for adjustment.  Such adjustment, if any, shall be within the sole discretion of the Board.  The annual base salary in effect at any given time is referred to herein as “Base Salary.”

(b)Annual Bonus.  During the Employment Period, the Executive shall be eligible to receive an annual target bonus (a “Bonus”) if, as reasonably determined by the Board or, to the extent delegated by the Board, the Committee one or more of the performance targets annually determined by the Board or the Committee (“Performance Targets”) is achieved.  If all of the Performance Targets are achieved, the Bonus will equal not less than 40 percent of the Executive’s Base Salary (the “Target Bonus”).  In the event that less than all of the Performance Targets are met by Executive, the Bonus paid in respect of this paragraph may be less than the Target Bonus.  Except as set forth in Section 5(a) hereof, the Executive must be employed by the Company on the day any such earned Bonus is paid which shall be not later than 2 1⁄2 months after the end of each calendar year.  The Executive’s target bonus opportunity as a percentage of Base Salary may be reviewed periodically and adjusted in the sole discretion of the Board.  After any such adjustment, the term “Target Bonus” shall refer to the increased amount.

(c)Equity Compensation.  The Executive shall be eligible to participate in Parent’s equity incentive plan according to its terms and conditions, as defined by Parent from time to time in its sole discretion.  Both entitlement to any equity awards and the amount shall be determined by Parent in its sole discretion.

(d)Expenses.  During the Employment Period, the Executive shall be entitled to receive reimbursement for all reasonable expenses incurred by him in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its senior executive officers.

(e)Other Benefits.  During the Employment Period, the Executive shall be entitled to participate in or receive benefits under any employee benefit plan or arrangement currently maintained or which may, in the future, be made available by the Company generally to its executives and key management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plan or arrangement.  Any payments or benefits payable to the Executive under a plan or arrangement referred to in this Section 2(e) in respect of any calendar year during which the Executive is employed by the Company for less than the whole of such year shall, unless otherwise provided in the applicable plan or arrangement, be prorated in accordance with the number of days in such calendar year during which the Executive is so employed.  Should any such payments or benefits accrue on a fiscal (rather than calendar) year, then the proration in the preceding sentence shall be on the basis of a fiscal year rather than calendar year.

(f)Vacations.  The Executive shall be entitled to accrue up to 20 paid vacation days in each year, which shall be accrued ratably.  In other respects, the Company’s vacation policy as the same may then be in effect shall apply to vacations.

(g)Approval by Shareholders’ Meeting and Mandatory Law.  Any compensation (including bonus, equity awards and fringe benefits) to be paid under this 

2

 

Agreement, is, to the extent required by Swiss laws and the Parent’s Article of Association, subject to approval by the general meeting of shareholders’ of Parent.  In the event of a conflict between this Agreement and applicable mandatory Swiss law, the Company shall have the right to unilaterally modify the Agreement to the extent necessary to comply with mandatory law with immediate effect.

(h)Lost Opportunity Compensation.  To offset losses the Executive incurred in connection with the transitioning of his employment to the Company, the Company will make a one-time payment to the Executive in the amount of $50,000 in the first payroll after January 1, 2018.  This payment is subject to the usual required withholdings.  The Executive understands and agrees that, in the event his employment with the Company is terminated for any reason prior to November 12, 2018, he will reimburse the Company, within one (1) month after such employment termination, for this full amount ($50,000).  The Executive further agrees that such amount may be collected by the Company, either directly or indirectly, from any (i) payment of any kind due to the Executive from the Company or any affiliate thereof including, without limitation, accrued wages, vacation, final wages, and expense reimbursements to the fullest extent permitted by applicable law; and/or (ii) the forfeiture or cancellation of any equity interest owned by the Executive in the Parent, the Company or any subsidiary or affiliate thereof, whether now existing or hereafter formed, and regardless of the form such equity interest.

3.Termination.

(a)General.  The Executive’s employment shall continue until it is terminated in accordance with this Agreement.  Upon service of a Notice of Termination (as defined below), the Executive shall resign from all offices and functions assumed in relation to this Agreement effective upon first request of the Company.

(b)Termination by the Company without Cause or by Executive for Good Reason:  Notice Period.  In the event that the Company elects to terminate the Executive’s employment without Cause (as defined below) or the Executive elects to resign from Executive’s employment with Good Reason (as defined below) (in either case an “Involuntary Departure”), the Party electing to end the employment relationship shall provide the other Party with a Notice of Termination (as defined below) of the Involuntary Departure specifying a notice period (the “Notice Period”) of six (6) months, effective as per the end of a calendar month; provided that, in the case that the Notice of Termination of an Involuntary Departure is provided within the 12 month period following a Change in Control (the “Change in Control Period” or “CIC Period”), then the Notice Period shall be 12 months.

(i)During the Notice Period following a Notice of Termination of an Involuntary Departure, the Executive shall continue to be available to provide services to the extent requested by the Company or the Board, provided at any time during the Notice Period the Company may replace the Executive’s position and/or direct the Executive to perform other or reduced work; provided further that, upon the 15th day following such Notice of Termination (or such earlier date as the Company shall determine in its sole discretion), the Company shall release the Executive from his working obligations pursuant to Section 3(b)(i) (except to the extent the parties otherwise agree) and place the Executive on garden leave for the remainder of the Notice Period 

3

 

(“Garden Leave”).  During such Garden Leave, the Executive (A) may enter into consulting arrangements and accept board positions provided such outside business activities do not interfere with Executive’s obligations under this Agreement including without limitation, pursuant to Section 7 and (B) shall be free to engage in other employment provided that such employment does not interfere with Executive’s obligations under this Agreement including without limitation, pursuant to Section 7.  The Company shall be prohibited during the Garden Leave from reducing any compensation to which the Executive is entitled to receive during the remainder of the Notice Period pursuant to Section 3(b)(ii).

(ii)With respect to compensation during the Notice Period following a Notice of Termination of an Involuntary Departure, and subject to (i) the Executive signing, within 30 days following the date that the Notice of Termination is given, a Release of Claims in a form reasonably required by the Company (the “Release”) and (ii) Section 6, the Executive:  (A) shall continue to receive the Base Salary and employee benefits consistent with the Company’s then existing benefits plans and programs; (B) shall be entitled to receive an amount equal to the Target Bonus with respect to the Notice Period (i.e., a prorated Target Bonus based upon the number of days in the applicable Notice Period), which amount shall be payable no more than 60 days after the Notice of Termination (provided that if the 60-day period begins in one calendar year and ends in a second calendar year, such Target Bonus shall be paid in the second calendar year); (C) shall continue to vest through the last day of the Notice Period in any [time based] equity awards outstanding as of the date the Notice of Termination is given; provided, and notwithstanding the foregoing, Section 5(a) may apply if the Notice of Termination of an Involuntary Departure occurs during a CIC Period, and (D) shall not continue to accrue vacation under Section 2(f).

(iii)If during the Notice Period following a Notice of Termination of an Involuntary Departure, the Company terminates the Executive’s employment for Cause, then the Company shall provide a restated Notice of Termination and the Notice Period shall end on the earlier date set forth in the restated Notice of Termination.

(c)Death.  The Executive’s employment hereunder shall terminate upon his death.

(d)Disability.  The Company may terminate the Executive’s employment if the Executive is disabled and unable to perform the essential functions of the Executive’s then existing position or positions with or without reasonable accommodation for a period of 180 days (which need not be consecutive) in any 12-month period.  If any question shall arise as to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s then existing position or positions with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable detail by a physician selected by the Company to whom the Executive or the Executive’s guardian shall have no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue.  The Executive shall cooperate with any reasonable request of the physician in connection with such 

4

 

certification.  If such question shall arise and the Executive shall fail to submit such certification, the Company’s determination of such issue shall be binding on the Executive. Nothing in this Section 3(d) shall be construed to waive the Executive’s rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

(e)Termination by Company for Cause.  The Company may terminate the Executive’s employment hereunder for Cause.

(f)Termination by the Executive Without Good Reason.  The Executive may terminate her employment hereunder at any time without Good Reason.

(g)Definitions:

(i)Cause.  For purposes of this Agreement, “Cause” shall mean:  (i) the Executive’s commission of any felony or commission of any crime involving fraud, dishonesty or moral turpitude; (ii) the Executive’s commission or attempted commission of or participation in a fraud or act of dishonesty against the Company; (iii) the Executive’s material breach of any contract or agreement between the Executive and the Company or the Executive’s material breach of any legal duty he owes to the Company; (iv) conduct by the Executive that constitutes insubordination, incompetence or neglect of duties; (v) the Executive’s failure to perform the duties, functions and responsibilities of the Executive’s position; or (vi) the Executive’s failure to cooperate with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation or the inducement of others to fail to cooperate or to produce documents or other materials in connection with such investigation; provided, however, the actions or conduct described in clauses (iv) and (v) above shall only constitute Cause if the Company provides the Executive with written notice thereof and the Executive has not, within 30 days of receipt such written notice, discontinued the cited conduct or remedied the failure to perform and further provided that lawful actions taken by the Executive in the exercise of his rights under the United States Constitution shall not constitute a breach of subsection (vi) above.

(ii)Good Reason.  For purposes of this Agreement, “Good Reason” shall mean that the Executive has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events:  (i) a material diminution in the Executive’s responsibilities, authority and function, an adverse change to Executive’s job title, or a change in Executive’s reporting relationship that results in the Executive no longer reporting directly to the CEO; (ii) a material reduction in Base Salary except pursuant to a salary reduction program affecting substantially all of the employees of the Company, provided that it does not adversely affect the Executive to a greater extent than other similarly situated employees; (iii) a material change in the principal geographic location at which the Executive provides services to the Company outside of the Greater Boston, Massachusetts area; or (iv) the material breach of this Agreement by the Company (each a “Good Reason Condition”).  Good Reason Process 

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shall mean that (i) the Executive reasonably determines in good faith that a Good Reason Condition has occurred; (ii) the Executive notifies the Company in writing of the first occurrence of the Good Reason Condition within 60 days of the occurrence of such condition; (iii) the Executive cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the “Cure Period”), to remedy the Good Reason Condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) the Executive terminates employment within 60 days after the end of the Cure Period.  If the Company cures the Good Reason Condition during the Cure Period, Good Reason shall be deemed not to have occurred.

(iii)Notice of Termination.  Except for termination as specified in Section 3(c), any termination of the Executive’s employment by either the Company or the Executive shall be communicated by written Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

(iv)Date of Termination.  For purposes of this Agreement, “Date of Termination” shall mean:  (i) if the Executive’s employment is terminated by death, the date of death; (ii) if the Executive’s employment is terminated on account of disability under Section 3(d) or by the Company for Cause under Section 3(e), the date on which Notice of Termination is given; (iii) if the Executive’s employment terminates as a result of an Involuntary Departure under Section 3(b), the last day of the Notice Period; (iv) if the Executive’s employment is terminated by the Executive under Section 3(f) without Good Reason, 30 days after the date on which a Notice of Termination is given (unless the Company waives all or part of the thirty (30) day period).

4.Compensation Upon Termination.  If the Executive’s employment with the Company is terminated for any reason, the Company shall pay or provide to the Executive (or to the Executive’s authorized representative or estate) (i) any Base Salary earned through the Date of Termination; (ii) unpaid expense reimbursements (subject to, and in accordance with Section 2(d) of this Agreement); (iii) subject to Section 3(b)(ii)(D), unused vacation that accrued through the Date of Termination; and (iv) any vested benefits the Executive may have under any employee benefit plan of the Company through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (together, the “Accrued Benefit”) on or before the time required by law but in no event more than 30 days after the Executive’s Date of Termination.

5.Change in Control.

(a)Acceleration of Vesting.  In the event a Notice of Termination of an Involuntary Termination occurs during the CIC Period, and subject to the Executive signing, within 60 days following the Notice of Termination, a Release and the Release becoming effective and non-revocable within such 60-day period, all time based stock options and time based stock-based awards held by the Executive as of the date of the Notice of Termination, shall vest and become exercisable or nonforfeitable.  Notwithstanding the foregoing, if, at the time of a Change in Control, the Company determines in its sole discretion, in reliance upon an opinion of counsel in form and substance satisfactory to the Company, that the acceleration in the prior 

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sentence would not be permissible under applicable law, then in lieu of the acceleration in the prior sentence, all time based stock options and time based stock-based awards held by the Executive as of the date of such Change in Control, shall vest and become exercisable or nonforfeitable as of the date of such Change in Control.

(b)Excise Tax.

(i)Anything in this Agreement to the contrary notwithstanding, in the event that any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Parachute Payments”), would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), the following provisions shall apply:

(A)If the Parachute Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes payable by the Executive on the amount of the Parachute Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this Agreement.

(B)If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Parachute Payments which are in excess of the Threshold Amount, then the Parachute Payments shall be reduced (but not below zero) to the extent necessary so that the sum of all Parachute Payments shall not exceed the Threshold Amount.  In such event, the Parachute Payments shall be reduced in the following order:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.

(ii)For the purposes of this Section 5(c), “Threshold Amount” shall mean three times the Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive with respect to such excise tax.

(iii)All calculations and determinations under Sections 5(c)(i) and 5(c)(ii) shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the “Tax Counsel”) whose determinations shall be conclusive and binding on the Company and the Executive for all purposes.  For purposes of making the calculations and determinations required by Sections 5(c)(i) and 5(c)(ii), the Tax Counsel may rely on reasonable, good faith assumptions and approximations 

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concerning the application of Section 280G and Section 4999 of the Code.  The Company and the Executive shall furnish the Tax Counsel with such information and documents as the Tax Counsel may reasonably request in order to make its determinations under Sections 5(c)(i) and 5(c)(ii).  The Company shall bear all costs the Tax Counsel may reasonably incur in connection with its services.

(c)Definitions.  For purposes of this Section 5, “Change in Control” shall mean any of the following:

(i)any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other than Parent, any of its subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of Parent or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of Parent representing 50 percent or more of the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Board (“Voting Securities”) (in such case other than as a result of an acquisition of securities directly from Parent); or 

(ii)the date a majority of the members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or 

(iii)the consummation of (A) any consolidation or merger of Parent where the stockholders of Parent, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares of the company issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B) any sale or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of Parent.

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of an acquisition of securities by Parent which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially owned by any person to 50 percent or more of the combined voting power of all of the then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from Parent) and immediately thereafter beneficially owns 50 percent or more of the combined voting power of all of the then outstanding Voting Securities, then a “Change in Control” shall be deemed to have occurred for purposes of the foregoing clause (i).  For the avoidance of doubt, a migratory merger of Parent for the principal purpose of redomiciling Parent shall not constitute a Change in Control.

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6.Section 409A.

(a)Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.  Solely for purposes of Section 409A of the Code, each installment payment under this Agreement is considered a separate payment.

(b)All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year.  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

(c)To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

(d)The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

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(e)The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

7.Proprietary Information, Noncompetition and Cooperation.

(a)Restrictive Covenants and Assignment of Inventions.  The Executive has entered into the Proprietary Information and Inventions Agreement (the “Confidentiality and Assignment Agreement”), attached hereto as Exhibit A, and agrees to continue to honor the obligations and restrictive covenants set forth in the Confidentiality and Assignment Agreement, the terms of which are incorporated by reference as material terms of this Agreement.

(b)Non-Competition and Non-Solicitation.  In order to protect the Company’s proprietary information and good will, during the Executive’s employment with the Company and for a period of twelve (12) months following the (i) the delivery of a Notice of Termination, in the case of an Involuntary Departure or (ii) the termination of the Executive’s employment for any other reason (the “Restricted Period”), the Executive will not directly or indirectly, whether as owner, partner, shareholder, director, manager, consultant, agent, employee, co-venturer or otherwise, engage, participate or invest in any Competing Business.  For purposes hereof, the term “Competing Business” shall mean any entity engaged in the discovery, development or commercialization of CAS9 technology for human therapeutics.  Notwithstanding the foregoing, nothing contained hereinabove or hereinbelow shall be deemed to prohibit the Executive from (i) acquiring, solely as an investment, shares of capital stock (or other interests) of any corporation (or other entity) not exceeding 2% of such corporation’s (or other entity’s) then outstanding shares of capital stock (or equity interest), or (ii) working for a line of business, division or unit of a larger entity that competes with the Company as long as the Executive’s activities for such line of business, division or unit do not involve work by the Executive on matters that are directly competitive with the Company’s business.  In addition, during the Restricted Period, the Executive will not, directly or indirectly, in any manner, other than for the benefit of the Company (i) divert or take away customers of the Company or any of its suppliers; and/or (ii) solicit, entice, attempt to persuade any other employee or consultant of the Company to leave the Company for any reason (other than the termination of subordinate employees undertaken in the course of the Executive’s employment with the Company).  The Executive acknowledges and agrees that if the Executive violates any of the provisions of this paragraph 7(b), the running of the Restricted Period will be extended by the time during which the Executive engages in such violation(s).

(c)Litigation and Regulatory Cooperation.  During and after the Executive’s employment, the Executive shall use reasonable efforts to cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company that relate to events or occurrences that transpired while the Executive was employed by the Company.  The Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  During and after the Executive’s employment, the Executive shall use reasonable efforts to cooperate with the Company in connection with any investigation or 

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review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Company.  The Company shall reimburse the Executive for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations pursuant to this Section 7(c).

(d)Injunction.  The Executive agrees that it would be difficult to measure any damages caused to the Company that might result from any breach by the Executive of the promises set forth in this Section 7 and the Confidentiality and Assignment Agreement, and that in any event money damages would be an inadequate remedy for any such breach.  Accordingly, subject to Section 8 of this Agreement, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement and the Confidentiality and Assignment Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Company.

(e)Protected Reporting:  Defend Trade Secrets Act Immunity.  Nothing in this Agreement or the Confidentiality and Assignment Agreement, and nothing in any policy or procedure, in any other confidentiality, employment, separation agreement or in any other document or communication from the Company limits the Executive’s ability to file a charge or complaint with any government agency concerning any acts or omissions that the Executive may believe constitute a possible violation of federal or state law or making other disclosures that are protected under the whistleblower provisions of applicable federal or state law regulation or affects the Executive’s ability to communicate with any government agency or otherwise participate in any investigation or proceeding that may be conducted by a government agency, including by providing documents or other information, without notice to the Company.  In addition, for the avoidance of doubt, pursuant to the federal Defend Trade Secrets Act of 2016, the Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

8.Arbitration of Disputes.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising out of the Executive’s employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Boston, Massachusetts in accordance with the Employment Arbitration Rules of the AAA, including, but not limited to, the rules and procedures applicable to the selection of arbitrators.  In the event that any person or entity other than the Executive or the Company may be a party with regard to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s agreement.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  This Section 8 shall be specifically enforceable.  Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court action for the sole purpose of obtaining a 

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temporary restraining order or a preliminary injunction in circumstances in which such relief is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 8.

9.Consent to Jurisdiction.  To the extent that any court action is permitted consistent with or to enforce Section 8 of this Agreement, the parties hereby agree that the Middlesex County Superior Court of The Commonwealth of Massachusetts shall have exclusive jurisdiction of such dispute.  Accordingly, with respect to any such court action, the Executive submits to the personal jurisdiction of such courts.

10.Integration.  This Agreement and the Confidentiality and Assignment Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the Parties concerning such subject matter.

11.Withholding.  All payments made by the Company to the Executive under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law.

12.Successor to the Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, heirs, distributees, devisees and legatees.  In the event of the Executive’s death after her termination of employment but prior to the completion by the Company of all payments due him under this Agreement, the Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to her death (or to her estate, if the Executive fails to make such designation).

13.Enforceability.  If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

14.Survival.  The provisions of this Agreement and the Confidentiality and Assignment Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s employment to the extent necessary to effectuate the terms contained herein.

15.Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

16.Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the 

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Company or, in the case of the Company, at its main offices, attention of the CEO and a copy of such notice shall be sent to Crispr AG, Attention:  Chief Financial Officer, at the main offices of Crispr AG.

17.Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company.

18.Governing Law.  This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth.  With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit.

19.Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.

20.Assignment and Transfer by the Company.  The Company will have the right to assign and/or transfer this Agreement to its affiliates, successors and assigns.  The Executive expressly consents to be bound by the provisions of this Agreement for the benefit of the Company or any parent, subsidiary or affiliate to whose employ the Executive may be transferred without the necessity that this Agreement be re-signed at the time of such transfer.

[Remainder of page intentionally left blank.  Signature page follows.]

 

 

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IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year first above written.

	
CRISPR THERAPEUTICS, INC.

	
By:  
	
/s/ Rodger Novak

	
 

EXECUTIVE

	
Michael Tomsicek/s/ Michael Tomsicek

 

 

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EXHIBIT A

Proprietary Information and Inventions Agreement

 

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