Document:

Exhibit 10.13

 

EXECUTION VERSION

 

AMENDMENT NO. 1 TO FORBEARANCE AGREEMENT

 

This AMENDMENT
NO. 1 FORBEARANCE AGREEMENT, dated as of July 16, 2018 (this “Amendment”),
is made and entered into by and among Hydrofarm Holdings LLC, a Delaware limited liability company (“Holdings”),
Hydrofarm, LLC, a California limited liability company (“Hydrofarm”),
WJCO LLC, a Colorado limited liability company (“WJCO”),
EHH Holdings, LLC (“EHH”), a Delaware
limited liability company, and SunBlaster, LLC, a Delaware limited liability company (“SunBlaster”,
and together with Hydrofarm, WJCO and EHH, collectively, the “Borrowers”),
Hydrofarm Canada, LLC, a Delaware limited liability company, as a Guarantor, the lenders party to the Credit Agreement referred
to below (collectively, the “Lenders” and
each individually a “Lender”)
that are signatories hereto, and Brightwood Loan Services LLC, in its capacity as Administrative Agent for the Lenders. Capitalized
terms used but not otherwise defined herein shall have the respective meanings ascribed thereto in the Forbearance Agreement (as
defined below).

 

RECITALS

 

WHEREAS,
the parties hereto have heretofore entered into that certain Credit Agreement, dated as of May 12, 2017 (as the same has heretofore
been, and may hereafter be, amended, modified, supplemented, extended, renewed, restated or replaced, the “Credit
Agreement”), by and among Holdings, the Borrowers, the Lenders and the Administrative
Agent;

 

WHEREAS,
the parties hereto have heretofore entered into that certain Forbearance Agreement and Amendment to Credit Agreement, dated as
of May 18, 2018 (as the same has heretofore been, and may hereafter be, amended, modified, supplemented, extended, renewed, restated
or replaced, the “Forbearance Agreement”),
by and among Holdings, the Borrowers, the Lenders and the Administrative Agent, in respect of the Credit Agreement;

 

WHEREAS, Holdings and the Borrowers desire
to amend certain provisions of the Forbearance Agreement as set forth herein; and

 

WHEREAS, the Forbearance Agreement Termination
Date and various deliveries due on such date is July 15, 2018 which is not a Business Day, and the parties desire to clarify and
confirm that all references to July 15, 2018 in the Forbearance Agreement and all deliveries due on such date are references to
July 16, 2018 which is the Business Day following July 15, 2018.

 

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1. Amendment to Forbearance Agreement;
Acknowledgement.

 

(a) Effective
as of the Forbearance Amendment Effective Date, Section 1(b)(i) of the Forbearance Agreement is hereby amended by deleting the
phrase “July 15, 2018” set forth therein
and replacing such phrase with “August 15, 2018”.

 

(b) The Loan
Parties, the Administrative Agent and each Lender hereby acknowledge that the Forbearance Agreement Termination Date and various
deliveries due on such date is July 15, 2018 which is not a Business Day. The
parties hereto acknowledge and agree that all references to July 15, 2018 in the Forbearance Agreement and all deliveries due
on such date are references to July 16, 2018 which is the Business Day following July 15, 2018.

 

    

     

    

 

SECTION 2. Acknowledgements of the Loan
Parties.

 

(a)       Each
of the Loan Parties, jointly and severally, acknowledges and agrees that (i) the Specified Defaults have occurred and are continuing,
and (ii) but for the terms of the Forbearance Agreement (as amended by this Amendment), the Lenders and the Administrative Agent
may, if they so elect, exercise any and all rights and remedies that the Lenders or the Administrative Agent has under the Loan
Documents, applicable law or otherwise in respect of the Specified Defaults.

 

(b)       Each
of the Loan Parties, jointly and severally, hereby acknowledges, agrees, confirms, reaffirms and stipulates that (i) except as
expressly set forth in the Forbearance Agreement (as amended by this Amendment), neither any Lender nor the Administrative Agent
has agreed to (and has no obligation whatsoever to discuss, negotiate or agree to) any restructuring, modification, amendment,
waiver or forbearance with respect to the Obligations or any of the terms of the Loan Documents, (ii) no understanding with respect
to any other restructuring, modification, amendment, waiver or forbearance with respect to the Obligations or any of the terms
of the Loan Documents shall constitute a legally binding agreement or contract, or have any force or effect whatsoever, unless
and until reduced to writing and signed by authorized representatives of each Loan Party, each Lender and the Administrative Agent,
and (iii) the execution and delivery of this Amendment has not established any course of dealing between the parties hereto or
created any obligation or agreement of any Lender or the Administrative Agent with respect to any future restructuring, modification,
amendment, waiver or forbearance with respect to the Obligations or any of the terms of the Forbearance Agreement or the Loan Documents.

 

SECTION 3.
Conditions Precedent. This Amendment shall become effective and be deemed effective as of the date when, and only when,
all of the following conditions have been satisfied as determined in the Administrative Agent’s
sole discretion (the date of such effectiveness being herein called the “Forbearance
Amendment Effective Date”):

 

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

 

(b)       the
Revolving Loan Agent and each Revolving Loan Lender shall have entered into an amendment to the Revolving Loan Forbearance Agreement,
and such amendment shall be in form and substance acceptable to the Administrative Agent in its sole discretion; and

 

(c)       the
Loan Parties shall have paid all costs and expenses of the Administrative Agent (including legal fees and expenses) incurred in
connection with the preparation and execution of this Amendment and incident to all proceedings in connection with the transactions
contemplated by, and documents relating to, this Amendment and the Loan Documents, which payment shall be nonrefundable.

 

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SECTION 4. Representations and Warranties.
Each of the Loan Parties, jointly and severally, represents and warrants (which representations and warranties shall survive the
execution and delivery hereof) to the Lenders and the Administrative Agent that:

 

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

 

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

 

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

 

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

 

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

 

SECTION 5. Ratification; Waiver of Defenses;
Indemnity and Release.

 

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

 

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(b)       Each
of Loan Parties, jointly and severally, on behalf of itself and each of its Subsidiaries and affiliates, hereby waives, releases
and discharges each Lender and the Administrative Agent, and all of the directors, officers, employees, attorneys, agents, successors
and assigns of each Lender and the Administrative Agent, from any and all claims, demands, actions, causes of action, damages,
costs, expenses and liabilities, known or unknown, anticipated or unanticipated, suspected or unsuspected, asserted or unasserted,
fixed, contingent or conditional, at law or in equity, arising out of or in any way relating to the Loan Documents or any documents,
agreements, dealings or other matters connected with the Loan Documents, in each case to the extent arising (x) on or prior to
the date hereof or (y) out of, or relating to, any actions, dealings or matters occurring on or prior to the date hereof. The waivers,
releases, and discharges in this Section 5 shall be effective on the Forbearance Amendment Effective Date regardless of
whether any post-Forbearance Amendment Effective Date conditions to this Amendment are satisfied and regardless of any other event
that may occur or not occur after the date hereof.

 

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

 

SECTION 6. Counterparts. This Amendment
may be executed by the parties hereto individually or in combination, in one or more counterparts, each of which shall be an original
and all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment
by telecopier or electronic transmission (in pdf format) shall be effective as delivery of a manually executed counterpart of this
Amendment.

 

SECTION 7. Successors and Assigns.
The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

SECTION 8. Severability. If any provision
of this Amendment shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such
jurisdiction, be ineffective to the extent of such invalidity or enforceability without in any manner affecting the validity or
enforceability of such provision in any other jurisdiction or the remaining provisions of this Amendment in any jurisdiction.

 

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SECTION 9. Governing Law. THIS AMENDMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK. ANY DISPUTE ARISING OUT OF OR CONCERNING THE TERMS OF THIS AMENDMENT SHALL BE RESOLVED
IN A COURT OF COMPETENT JURISDICTION LOCATED IN NEW YORK COUNTY, NEW YORK, USA, WHICH SHALL BE THE EXCLUSIVE FORUM FOR THE RESOLUTION
OF ANY SUCH DISPUTE.

 

SECTION 10. Expenses. The Loan Parties,
joint and severally, agree to pay, or reimburse, the Administrative Agent for all expenses incurred in connection with the preparation
and negotiation of this Amendment and related agreements and instruments and the transactions contemplated hereby, including, but
not limited to, the fees and expenses of counsel to the Administrative Agent.

 

SECTION 11. Miscellaneous. The parties
hereto shall, at any time and from time to time following the execution of this Amendment, execute and deliver all such further
instruments and take all such further action as may be reasonably necessary or appropriate in order to carry out the provisions
of this Amendment.

 

SECTION 12. Headings. Section headings
in this Amendment are included for convenience of reference only and are not to affect the construction of, or to be taken into
consideration in interpreting, this Amendment.

 

SECTION 13. Entire Agreement. This
Amendment embodies the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior
agreement and understandings relating to the subject matter hereof. All prior statements, representations and warranties, if any,
of any Lender or the Administrative Agent in respect of the subject matter hereof, and all prior drafts of this Amendment, are
totally superseded and merged into this Amendment, which represents the final and sole agreement of the parties hereto with respect
to the matters which are the subject hereof. Each of the Loan Parties hereby acknowledges and agrees that the execution and delivery
of this Amendment has not established any course of dealing between the parties hereto and that the parties hereto do not contemplate,
and, in entering into this Amendment, the Loan Parties have not relied upon, any further potential extension of the Forbearance
Period.

 

[The remainder of this page left blank
intentionally]

 

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IN WITNESS WHEREOF, the Administrative Agent,
the Lenders and each of the Loan Parties have caused this Amendment to be duly executed by its authorized officers as of the day
and year first above written.

 

	 	HOLDINGS:
	 	 	 
	 	HYDROFARM HOLDINGS LLC
	 	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: Manager
	 	 	 
	 	BORROWERS:
	 	 	 
	 	HYDROFARM, LLC
	 	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: President and Chief Executive Officer
	 	 	 
	 	WJCO LLC
	 	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: Manager
	 	 	 
	 	EHH HOLDINGS, LLC
	 	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: Manager
	 	 	 
	 	SUNBLASTER, LLC
	 	 	 
	 	By:.	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: President
	 	 	 
	 	GUARANTOR:
	 	 	 
	 	HYDROFARM CANADA, LLC
	 	 	 
	 	By:	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: President

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	ADMINISTRATIVE AGENT:
	 	 	 
	 	BRIGHTWOOD LOAN SERVICES LLC, as
	 	Administrative Agent
	 	 	 
	 	By:	/s/ Sengal Selassie
	 	Name: Sengal Selassie
	 	Title: Authorized Person
	 	 	 
	 	By:	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title: Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL FUND IV, LP,
	 	as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers
	 	 	IV, LLC, as its General Partner
	 	 	 
	 	By:	/s/ Sengal Selassie
	 	Name: Sengal Selassie
	 	Title: Managing Member
	 	 	 
	 	By:	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title: Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL FUND III-U,
	 	LP, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers
	 	 	III, LLC, its General Partner
	 	 	 
	 	By:	/s/ Sengal Selassie
	 	Name: Sengal Selassie
	 	Title: Managing Member
	 	 	 
	 	By:	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title: Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL FUND III
	 	HOLDINGS SPV-3, LLC, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers
	 	 	III, LLC, as its General Partner
	 	 	 
	 	By:	/s/ Sengal Selassie
	 	Name: Sengal Selassie
	 	Title: Managing Member
	 	 	 
	 	By:	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title: Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL OFFSHORE
	 	FUND IV, LP, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers
	 	 	IV, LLC, as itsGeneral Partner
	 	 	 
	 	By:	/s/ Sengal Selassie
	 	Name: Sengal Selassie
	 	Title: Managing Member
	 	 	 
	 	By:	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title: Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	BRIGHTWOOD CAPITAL OFFSHORE
	 	FUND IV-U, LP, as Lender
	 	 	 
	 	By:	Brightwood Capital Fund Managers
	 	 	IV, LLC, as its General Partner
	 	 	 
	 	By:	/s/ Sengal Selassie
	 	Name: Sengal Selassie
	 	Title: Manging Member
	 	 	 
	 	By:	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title: Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	MAIN STREET CAPITAL CORPORATION,
	 	as Lender
	 	 	 
	 	By:	/s/ Jason Beauvais
	 	Name: Jason Beauvais
	 	Title: SVP

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	HMS INCOME FUND, INC., as Lender
	 	 	 
	 	By:	/s/ Alejandro Palomo
	 	Name: Alejandro Palomo
	 	Title: Authorized Agent
	 	 	 

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	TCG BDC, INC., as Lender
	 	 	 
	 	By:	/s/ Mark Tamburello
	 	Name: Mark Tamburello
	 	Title: Principal

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]

 

     

     

    

 

	 	LENDER:
	 	 	 
	 	CARLYLE GMS FINANCE MM CLO 2015-1
	 	LLC, as Lender
	 	 	 
	 	By:	/s/ Mark Tamburello
	 	Name: Mark Tamburello
	 	Title: Principal

 

[Signature Page to Amendment No. 1 to
Forbearance Agreement]Exhibit 10.14

 

WAIVER AND AMENDMENT NO.
1 TO CREDIT AGREEMENT

 

This WAIVER
AND AMENDMENT NO. 1 TO CREDIT AGREEMENT (this "Amendment"), dated as of September 21, 2017, is entered into by
and among Hydrofarm Holdings LLC, a Delaware limited liability company ("Holdings"), Hydrofarm, LLC, a California
limited liability company ("Hydrofarm"), WJCO LLC, a Colorado limited liability company ("WJCO"), EHH
Holdings, LLC ("EHH"), a Delaware limited liability company, and SunBlaster, LLC, a Delaware limited liability company
("SunBlaster", and together with Hydrofarm, WJCO and EHH, collectively, the "Borrowers"), the
lenders party to the Credit Agreement referred to below (collectively, the "Lenders" and each individually a
"Lender") that are signatories hereto, and Brightwood Loan Services LLC, in its capacity as Administrative Agent
for the Lenders. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed thereto in
the Credit Agreement (as defined below).

 

WITNESSETH: 

 

WHEREAS,
Holdings and the Borrowers have entered into financing arrangements pursuant to which the Lenders have made and provided loans
and other financial accommodations to the Borrowers as set forth in the Credit Agreement, dated as of May 12, 2017, by and among
Holdings, the Borrowers, the Lenders and the Administrative Agent (as the same has heretofore been, and may hereafter be, amended,
modified, supplemented, extended, renewed, restated or replaced, the "Credit Agreement");

 

WHEREAS,
an Event of Default has occurred and is continuing under Section 7.1(c) of the Credit Agreement as a result of the failure by
Holdings and the Borrowers to comply with the covenant set forth in Section 5.1(a) of the Credit Agreement by failing to deliver
to the Administrative Agent a copy of the annual audited financial statements of the Acquired Company for the fiscal year ended
December 31, 2016 (the "Audited 2016 Financial Statements") as and when required under such Section 5.1(a) (the
"Specified Event of Default");

 

WHEREAS,
Holdings and the Borrowers have requested that the Required Lenders agree to waive the Specified Event of Default;

 

WHEREAS,
Holdings and the Borrowers desire to amend certain provisions of the Credit Agreement as set forth herein to, among other things,
extend the deadline for the delivery of the Audited 2016 Financial Statements under Section 5.1(a) of the Credit Agreement from
June 30, 2017 until September 29, 2017;

 

WHEREAS,
pursuant to Section 9.1 of the Credit Agreement, in order to effect the waiver of the Specified Event of Default and the amendment
to the Credit Agreement contemplated by this Amendment, this Amendment must be approved by the Required Lenders; and

 

WHEREAS, the undersigned Lenders constitute
the Required Lenders.

 

NOW THEREFORE,
in consideration of the foregoing and the mutual agreements and 1 covenants contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

     

     

    

 

SECTION 1. Limited
Waiver. Holdings and the Borrowers acknowledge that the Specified Event of Default has occurred and is continuing, and represent
and warrant that as of the date hereof, no Defaults or Events of Default have occurred and are continuing other than the Specified
Event of Default. Subject to the satisfaction of the conditions set forth in Section 3 below, and in reliance on the representations
and warranties set forth in Section 4 below, the Required Lenders hereby waive the Specified Event of Default; provided,
that Holdings and the Borrowers deliver the Audited 2016 Financial Statements to the Administrative Agent in accordance with
Section 5.1(a) of the Credit Agreement, as amended by this Amendment. This is a limited waiver and shall not be deemed to (a)
waive, release, modify or limit the obligations of Holdings or any Borrower to otherwise comply with all terms and conditions
of the Credit Agreement and the other Loan Documents, (b) waive any other existing or future Default or Event of Default, or (c)
prejudice any right or remedy that the Administrative Agent or any Lender may have presently or in the future under or in connection
with the Credit Agreement or any other Loan Document (all of which rights and remedies are expressly reserved), in each case,
except at expressly provided herein. This waiver shall be effective only in this specific instance and for the specific purpose
for which this waiver is given. This waiver shall not entitle Holdings nor any Borrower to any other or further waiver in any
similar or other circumstances.

 

SECTION 2. Amendment.
Section 5.1(a) of the Credit Agreement is hereby amended by:

 

(a)              deleting
the reference to "June 30, 2017" in the first line thereof and replacing such date with "September 29, 2017";
and

 

(b)              deleting
the phrase ", with comparative figures for the preceding fiscal year," in the fourth line thereof.

 

SECTION 3. Conditions
Precedent. This Amendment shall only be effective upon the satisfaction of each of the following conditions precedent in a
manner reasonably satisfactory to the Administrative Agent:

 

(a)              the
Administrative Agent shall have received counterparts of this Amendment, duly authorized, executed and delivered by Holdings,
the Borrowers and the Required Lenders;

 

(b)              all
representations and warranties contained in this Amendment, the Credit Agreement and each of the other Loan Documents shall be
true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation
or warranty that is already qualified or modified by materiality in the text thereof) on and as of the date hereof as if made
on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such
representation or warranty shall have been true and correct in all material respects (except that such materiality qualifier shall
not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof)
as of such date; and

 

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(c)            after
giving effect to this Amendment, no Default or Event of Default shall exist or have occurred and be continuing as of the date
of this Amendment.

 

SECTION 4. Representations
and Warranties. Each of Holdings and each Borrower hereby represents and warrants to the Administrative Agent and Lenders
as follows, which representations and warranties shall survive the execution and delivery hereof:

 

(a)            after
giving effect to this Amendment, as of the date of this Amendment, no Default or Event of Default exists or has occurred and is
continuing;

 

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

 

(c)            as
of the date of this Amendment, all representations and warranties contained in this Amendment, the Credit Agreement and each of
the other Loan Documents are true and correct in all material respects (except that such materiality qualifier shall not be applicable
to any representation or warranty that is already qualified or modified by materiality in the text thereof) on and as of the date
hereof as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date,
in which case such representation or warranty were true and correct in all material respects (except that such materiality qualifier
shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof)
as of such date; and

 

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

 

SECTION 5. Effect of this Amendment; Ratification.

 

(a)       Except
as expressly set forth herein, no other amendments, consents, changes or modifications to the Credit Agreement or the other Loan
Documents are intended or implied, and in all other respects the Credit Agreement and the other Loan Documents are hereby specifically
ratified, restated and confirmed by all parties hereto as of the effective date hereof and Loan Parties shall not be entitled
to any other or further amendment by virtue of the provisions of this Amendment or with respect to the subject matter of this
Amendment. Except as expressly set forth herein, this Amendment shall not operate as a waiver of any obligation of Holdings or
any Borrower under, or any right, power, or remedy of the Administrative Agent or the Lenders under, the Credit Agreement or the
other Loan Documents. This Amendment is not a novation or discharge of any of the obligations of Holdings or the Borrowers under
the Credit Agreement and the other Loan Documents. This Amendment shall be deemed to be a Loan Document. The Credit Agreement
and this Amendment shall be read and construed as one agreement.

 

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(b)       For
the benefit of the Administrative Agent and the Lenders, each of the Loan Parties hereby (i) affirms and confirms its guarantees,
pledges, grants of collateral and security interests and other undertakings under the Credit Agreement and the other Loan Documents
to which it is a party, (ii) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under
the Credit Agreement and each of the other Loan Documents Agreements to which it is a party and (iii) agrees that (x) the Credit
Agreement and each other Loan Document to which it is a party shall continue to be in full force and effect and (y) all guarantees,
pledges, grants of collateral and security interests and other undertakings the Credit Agreement and each other Loan Document
to which it is a party shall continue to be in full force and effect and shall accrue to the benefit of the Administrative Agent
and the Lenders.

 

SECTION 6. Governing
Law. This Amendment, and all matters relating hereto or thereto or arising herefrom or therefrom (whether arising under contract
law, tort law or otherwise) shall, each be deemed to be a contract made under, governed by and interpreted pursuant to the internal
laws (and not the law of conflicts) of the State of New York.

 

SECTION 7. Binding
Effect. This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors
and permitted assigns.

 

SECTION 8. Captions.
The captions in this Amendment are intended for convenience only and do not constitute and shall not be interpreted as part
of this Amendment.

 

SECTION 9. No Course
of Dealing. Holdings and each Borrower acknowledges that (a) except as expressly set forth herein, neither the Administrative
Agent nor any Lender has agreed (and has no obligation whatsoever to discuss, negotiate or agree) to any restructuring, modification,
amendment, extension, waiver, or forbearance with respect to the Credit Agreement or any other Loan Document or any of the terms
thereof, and (b) the execution and delivery of this Agreement has not established any course of dealing between the parties hereto
or created any obligation or agreement of the Administrative Agent or any Lender with respect to any future restructuring, modification,
amendment, extension, waiver, or forbearance with respect to the Credit Agreement or any other Loan Document or any of the terms
thereof.

 

SECTION 10. Counterparts.
This Amendment may be executed in any number of and by different parties hereto on separate counterparts, all of which, when
so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile or electronic transmission (including email transmission of a PDF image) shall be deemed to
be an original signature hereto.

 

[Signature Pages Follow]

 

    3

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be duly executed and delivered by their authorized officers as of the day and year first
above written.

 

 

	 	HOLDINGS:
	 	 
	 	HYDROFARM HOLDINGS LLC
	 	 
	 	By:	/s/ Michael Serruya
	 	Name: Michael Serruya
	 	Title: President
		 
	 	BORROWERS:
	 	 
	 	HYDROFARM, LLC
	 	 
	 	By: 	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title:  President
	 	 
	 	 
	 	WJCO LLC
	 	 
	 	By: 	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title:President
	 	 
	 	EHH HOLDINGS, LLC
	 	 
	 	By 	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title:President
	 	 
	 	SUNBLASTER, LLC
	 	 
	 	By 	/s/ Peter Wardenburg
	 	Name: Peter Wardenburg
	 	Title: President

 

[Signature Page to Amendment No. 1 to
Credit Agreement]

 

     

     

    

 

	 	ADMINISTRATIVE AGENT:
	 	 
	 	BRIGHTWOOD LOAN SERVICES LLC,
    as Administrative Agent
	 	 
	 	By:	/s/
    Damien Dwin
	 	Name: Damien Dwin 
	 	Title: 	Authorised Person
	 	 
	 	By: 	/s/ Phil
    Daniele
	 	Name: Phil Daniele 
	 	Title:   Chief Risk
    Officer

 

[Signature Page to Amendment No. 1 to
Credit Agreement] 

 

     

     

    

 

	 	LENDER:
	 	 
	 	BRIGHTWOOD CAPITAL FUND III-U,
    LP, as Lender
	 	 
	  	By: 	Brightwood Capital Fund Managers
    III, LLC, as its General Partner

 

	 	By:	/s/ Damien Dwin
	 	Name: Damien Dwin
	 	Title: Authorized Person
	 	 
	 	By: 	 /s/ Phil Daniele
	 	Name:  Phil Daniele
	 	Title:  Chief Risk
    Officer

 

[Signature Page to Amendment No. 1 to
Credit Agreement]

 

     

     

    

  

	 	LENDER:
	 	 
	 	BRIGHTWOOD CAPITAL FUND III
    2016-2, LLC, as Lender
	 	 
	 	By: 	Brightwood Capital Fund Managers
    III, LLC, as its Manager

  

	 	By:	/s/ Damien Dwin
	 	Name: Damien Dwin
	 	Title: Aithorized Peron
	 	 
	 	By:	 /s/ Phil Daniele
	 	Name:  	Phil Daniele
	 	Title: 	Chief Risk Officer

 

[Signature Page to Amendment No. 1 to
Credit Agreement] 

 

     

     

    

 

 

	 	LENDER:
	 	 
	 	BCOF CAPITAL, LP, as Lender
	 	 
	 	By:	BCOF Capital Managers, LLC,
	 	 	as its General Partner

 

	 	By:	/s/ Damien Dwin
	 	Name: Damien Dwin
	 	Title:   Authorized
    Person
	 	 
	 	By: 	/s/ Phil Daniele
	 	Name: Phil Daniele
	 	Title:   Chief Risk
    Officer

 

[Signature Page to Amendment No. 1 to
Credit Agreement]

 

     

     

    

 

	 	LENDER:
	 	 
	 	MAIN STREET CAPITAL CORPORATION,
	 	as Lender
	 	 
	 	By:	/s/ Nick Meserve
	 	Name:	Nick Meserve
	 	Title:	Managing Director

 

[Signature Page
to Amendment No. 1 to Credit Agreement]

 

     

     

    

 

	 	LENDER:
	 	 
	 	HMS INCOME FUND, INC., as Lender
	 	 
	 	By:	/s/ Alejandro Palomo
	 	Name: Alejandro Palomo
	 	Title: Authorized Agent

 

[Signature Page to Amendment No. 1 to
Credit Agreement]

 

     

     

    

 

	 	LENDER:
	 	 
	 	TCG BDC, INC., as Lender
	 	 
	 	By:	/s/ Mark Tamburello
	 	Name: Mark Tamburello
	 	Title: Vice President

 

[Signature Page
to Amendment No. 1 to Credit Agreement]

 

     

     

    

 

	 	LENDER:
	 	 
	 	CARLYLE GMS FINANCE MM CLO
    2015-1 LLC,
	 	as Lender
	 	 
	 	By:	/s/
    Mark Tamburello
	 	Name: Mark Tamburello
	 	Title: Vice President

 

[Signature Page to Amendment No. 1 to
Credit Agreement]

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