Document:

ACQUISITION
AGREEMENT

 

This
ACQUISITION AGREEMENT (the “Agreement”) is dated effective as of May ___, 2018 (the “Effective Date”),
by and between LK Ventures, LLC, a Nevada limited liability company (“LKV”),
FUTURE FARM TECHNOLOGIES INC., a British Columbia corporation (“FFT”), and MDM CULTIVATION, LLC, a Delaware
limited liability company (“MDM”), (collectively, “Sellers”) as the Members of YLK
PARTNERS NV, LLC, a Nevada limited liability company, with an address located at 100 Alexander Way, Edgewater, NJ 07020
(“Company”), and Solis tek inc, a Nevada corporation, with an
address located at 853 Sandhill Avenue CA 90746 (“Buyer”) (Sellers and Buyer sometimes collectively referred
to herein as the “Parties” or individually as the “Party”).

 

RECITALS

 

WHEREAS,
Company was formed on December 13, 2017, upon the submission and incorporation of its Articles of Organization to the Nevada Secretary
of State, pursuant to the Nevada Revised Statues, Ch. 86, as amended from time to time, Title 6, Section 18-101, et seq.
(the “Act”);

 

WHEREAS,
Sellers in the aggregate, hold, own and maintain One Hundred Percent (100%) of the Membership Interests in Company (“Membership
Interests”) allocated as follows: LKV holds, owns and maintains Forty Five Percent (45%); MDM holds, owns and maintains
Forty Five Percent (45%); and FFT holds, owns and maintains Ten Percent (10%);

 

WHEREAS,
Buyer intends to purchase and acquire the Membership Interests in the Company, as further described herein from Sellers (the “Transaction”);
and

 

WHEREAS,
the Parties desire and intend for this Agreement to govern the terms, obligations and covenants of the Transaction;

 

AGREEMENT

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1. Purchase
Price; Warrants. The total purchase price for the Membership Interests will be paid by the issuance of warrants to
purchase Five Million (5,000,000) shares of Buyer’s common stock (“Shares”) at an exercise price of
One Cent ($0.01) per Share (the “Warrants”), as detailed and defined in Exhibit A, attached and
incorporated by reference herein.

 

(a) Issuance
of Warrants. The Parties acknowledge and agree that the Warrants shall be issued as follows:

 

	 	(i)	2,250,000
    to LKV
	 	 	 
	 	(ii)	2,250,000
    to MDM
	 	 	 
	 	(iii)	500,000
    to FFT

 

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(b) Piggy-Back
Registration Rights. The Parties acknowledge and agree the Shares underlying the Warrants (the “Warrant
Shares”) shall have Piggy-Back Registration rights, as defined herein this Section 1(b). Pursuant to the
Piggy-Back registration rights, granted herein, if Buyer proposes to register any of
its authorized, but unissued Shares (except: (i) pursuant to a Form S-8 registration statement; (i) pursuant to a
registration statement filed to register shares previously issued; or a registration statement filed to register shares
underlying warrants or convertible debt), it will give prompt written notice to each of the Sellers, as the holder of the
Warrants, of its intention to effect such Registration (the “Incidental Registration”). Within ten (10)
business days of receiving such written notice of an Incidental Registration, each of the Sellers may make a written request
(the “Piggy-Back Request”) that Buyer include in the proposed Incidental Registration all or a portion of
the Warrant Shares owned by the requesting Seller. In the event of a Piggy-Back Request, Buyer will use all commercially
reasonable efforts to include in any Incidental Registration, the Warrant Shares which Buyer has been requested to register
pursuant to any timely Piggy-Back Request by Seller(s), to the extent required to permit the disposition of the Warrant
Shares, so to be registered; however, Buyer shall not be obligated to effect a registration pursuant to Seller(s) Piggy-Back
Request, if Byer discontinues the related Incidental Registration at any time prior to the effective date of any Incidental
Registration filing statement, filed in connection therewith. Notwithstanding the foregoing, the Piggy-Back Registration
Rights set forth herein shall not apply to the initial Registration Statement to be filed by Buyer pursuant to that certain
Registration Rights Agreement of even date herewith between Buyer and YA II PN, Ltd.

 

2.
The Company’s Assets. The Parties acknowledge and agree that the Transaction consists of the purchase of the Membership
Interests. The Sellers agree theyhave not caused, and will take no action to cause, the Company to assign, transfer or dispose
of any Assets prior to the date hereof. Parties acknowledge and agree that “Assets” shall be defined as any
tangible or intangible right, benefits, contracts and agreements belonging to the Company, which shall include without limitation
(i) all patents, industrial designs, copyrights, trademarks, and trade secrets (collectively, “Intellectual Property”);
and (ii) Company’s wholly owned subsidiary YLK Partners AZ, LLC, a Nevada limited liability company (“YLK AZ”)
and its assets, rights, benefits contracts and agreements. The Parties further acknowledge and agree that YLK AZ provides certain
services related to the management, administration and operation of a duly-licensed medical marijuana cultivation and processing
facility in the State of Arizona, pursuant to that certain Cultivation Management Services Agreement, dated January 5, 2018 (the
“Management Agreement”), by and between YLK AZ and a duly licensed Dispensary, as defined therein, pursuant
to and in compliance with Title 9; Chapter 17 of the Arizona Department of Health Services Medical Marijuana Program (the “AZDHS
Rules”) and A.R.S. § 36-2801 et seq., as amended from time to time (the “Act”) (the AZDHS Rules
and the Act collectively referred to herein as the “AMMA”).

 

3. Due
Diligence. Sellers have provided Buyer with all documents and materials in its possession related to Company, and this
Transaction, including but not limited to financial data, tax records, business and corporate documentation, business
records, employee records, vendor contracts and agreements, records regarding all monthly expenses and costs, environmental
reports, operating systems, managerial techniques, potential customer lists, engineering reports, specifications and
drawings, product and process data, applications, submittals and approvals, all promissory notes, security agreements,
contracts and agreements evidencing any outstanding debt, liability or obligation which may affect Sellers, Company, or YLK
AZ, other similar documents and records related to the business of Company, YLK AZ and/or Sellers, and any other information
reasonably requested by Buyer (the aforementioned collectively referred to as the “Due Diligence
Documents”). Buyer acknowledges that Sellers will deliver many original documents and Buyer agrees to safeguard and
keep in order all such documents and return them, in the same condition as received either (i) upon completion of the Due
Diligence Period or, (ii) upon the earlier termination of this Agreement.

 

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The
Parties acknowledge and agree that the Due Diligence Period commenced upon the effective date the LOI and shall continue through
May 10, 2018 (the “Due Diligence Period”). Buyer shall provide written notice to Sellers regarding any concerns
related to the Due Diligence Documents prior to the conclusion of the Due Diligence Period. Upon the conclusion of the Due Diligence
Period, Buyer shall be deemed to have reviewed and accepted the Due Diligence Documents and all the information contained therein.

 

4. Execution
and Closing Date. The Parties acknowledge and agree to mutually act in good faith to prepare, agree upon and execute
this Agreement and all ancillary documents described herein and required to complete the Transaction, as further detailed and
defined in Section 4, and the Parties further agree to take all actions necessary to execute this Agreement and close the
Transaction (the “Closing”) on or before May 10, 2018 (“Closing Date”). The Parties
shall have the right to mutually agree in writing to extend the Closing Date for up to one (1) week, until May 17,
2018.

 

5. Closing
Deliverables. The Parties acknowledge and agree that on or before the Closing Date, they shall have respectively
provided the following:

 

(a)
Sellers have provided Buyer a Resolution of Company, unanimously executed by its Manager and Members, authorizing and
approving the following: (i) the Transaction; (ii) execution of this Agreement; (iii) the assignment, transfer and conveyance
of the Membership Interests to Buyer; and (iv) the adoption, approval and execution of the restated and amended Operating
Agreement of Company reflecting the actions described herein and any additional agreed upon terms and provisions regarding
the governance, management and operation of Company.

 

(b)
Buyer has provided to Sellers the restated and amended Operating Agreement of Company, reflecting the actions described
herein and any additional required terms, obligations and provisions related to the governance, management and operation of
Company requested by Buyer.

 

(c)
Sellers have provided Buyer with all necessary assurances that evidence that upon the Closing Date the Company has not nor is
not seeking or requesting any type of bankruptcy protection or bankruptcy procedure.

 

(d)
Sellers have provided to Buyer all documents, agreements, or requested documents pertaining to YLK AZ and the Management
Agreement, pursuant to which, YLK AZ shall continue to provide certain services related to the management, administration and
operation of the Dispensary’s Cultivation Facility (as defined therein), pursuant to the AMMA and all rules,
requirements and regulations.

 

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(e)
Buyer and Sellers have mutually prepared, secured, and/or executed, as appropriate, all required governmental or
third-party approvals, waivers, disclosures or consents.

 

(f)
Sellers have taken all actions necessary to acquire the necessary approvals and authorizations and prepared and provided
Buyer all documents necessary to cause the assignment, transfer and conveyance of the Membership Interests and all Assets,
contracts and agreements in Company.

 

(g)
Buyer has provided to Sellers the Warrant duly executed by the Company, pursuant to and in accordance with Section 1
of this Agreement.

 

(h)
Sellers shall take all reasonable actions, execute all documents, and provide all assistance deemed reasonably necessary by
Buyer to comply with the intent of this Agreement.

 

(i)
Buyer has taken all reasonable actions, executed all documents, and provided all assistance deemed reasonably necessary by
Sellers to comply with the intent of this Agreement.

 

The
deliverables described in the aforementioned (a) through (i) are collectively referred to herein as the “Closing Deliverables”.

 

6. Representations
and Warranties of Sellers. Each Seller represents, warrants, and covenants severally but not jointly to Buyer, with the
understanding Buyer is relying upon such representations, warranties, and covenants that: (a) Each Seller has the full right,
power, and authority to enter into this Agreement and be bound by the terms of this Agreement and have obtained the consent
of any other person or entity, other than as required herein; (b) the execution and delivery of this Agreement and the
performance by each Seller of its obligations pursuant to this Agreement, do not and will not constitute a breach of or a
default under any other agreement or obligation applicable to such Seller; (c) the execution and delivery of this Agreement
by Sellers will constitute the valid and binding obligation of such Seller; (d) to the knowledge of each Seller, there are no
actions, suits, proceedings, or investigations involving, Company and/or YLK AZ, threatened against or involving such Seller,
Company, and/or YLK AZ, brought by any Seller, Company, and/or YLK AZ, affecting such Seller, Company, and/or YLK AZ, or any
of the rights and obligations described therein, at law or in equity or before or by any federal, state, municipal, or other
governmental department, commission, board, agency, or instrumentality, domestic or foreign, nor has any such action, suit,
proceeding, or investigation been pending during the twenty-four (24) month period preceding the Effective Date; (e) all
information supplied by any Seller, Company, and/or YLK AZ or its agents to Buyer is, to such Seller’s knowledge, true,
complete, and correct and does not fail to state a material fact necessary to make any of such information misleading; (f)
each Seller has free, clear and unencumbered title to its respective Membership Interests; (g) each Seller: (I) is acquiring
the Warrants pursuant to an exemption from registration under the Securities Act of 1934, as amended (the
“Securities Act”) solely for investment with no present intention to distribute any of the securities to
any person in violation of the Securities Act or any other applicable securities laws, and (II) will not sell or otherwise
dispose of any of the Warrants, except in compliance with the registration requirements or exemption provisions of the
Securities Act and any other applicable securities laws; and (i) each Seller has, will, and/or shall ensure compliance of the
Closing Deliverables applicable to such Seller, Company and/or YLK AZ pursuant to Section 5 herein. The Parties agree
the warranties provided herein this Section 6 shall expire on the date that is twelve (12) months following the
Closing Date.

 

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7. Representations,
Warranties, and Covenants of Buyer. Buyer represents, warrants, and covenants to Sellers, with the understanding Sellers
are relying upon such representations, warranties, and covenants that: (a) Buyer has the full right, power, and authority to
enter into this Agreement and be bound by the terms of this Agreement without the consent of any other person or entity; (b)
the execution and delivery of this Agreement, and the performance by Buyer of its obligations pursuant to this Agreement, do
not and will not constitute a breach of or a default under any other agreement or obligation applicable to Buyer; (c) the
execution and delivery of this Agreement by Buyer will constitute the valid and binding obligation of Buyer; (d) there are no
material actions, suits, proceedings, or investigations pending or, to the knowledge of Buyer, threatened against or
involving Buyer or its affiliates, or brought by Buyer or its affiliates, affecting Buyer or its affiliates, or any of the
rights and obligations described herein, at law or in equity or before or by any federal, state, municipal, or other
governmental department, commission, board, agency, or instrumentality, domestic or foreign, nor has any such action, suit,
proceeding, or investigation been pending during the twenty-four (24) month period preceding the Effective Date; (e) all
information supplied by Buyer or its agents to Sellers or their agents is true, complete, and correct and does not fail to
state a material fact necessary to make any of such information misleading; and (f) Buyer has or will comply with the Closing
Deliverables applicable to Buyer pursuant to Section 5 herein; and (g) Buyer has the authority and ability to provide
Sellers the Warrants in accordance with Section 1 herein. The Parties agree the warranties provided herein this Section
7 shall expire on the date that is twelve (12) months following the Closing Date.

 

8. Indemnification.
The Parties acknowledge and agree:

 

(a)
Sellers shall severally but not jointly indemnify and hold Buyer, its successors and assigns harmless from and against all
losses, costs, damages, claims, lawsuits and liabilities arising in connection with any third-party claims concerning Company
or YLK AZ arising prior to, or after the Closing Date (each, a “Seller Claim”), if the basis of such
Seller Claim stems from an act or omission of Sellers prior to the Closing Date. Sellers shall be severally but not jointly
responsible for all reasonable attorneys’ fees, costs and expenses incurred by Buyer in defense of any such Claim. The
indemnification obligations set forth herein, shall include by way of example and not limitation, the duty to indemnify and
hold Buyer harmless from and against any claims, demands, actions, suits, arbitrations, assessments, adjustments, or other
proceedings regarding or resulting from any state or federal government tax filing, including amendments to any such filing,
on behalf of Company or YLK AZ, related to the total revenue generated by Company or YLK AZ and reported to the any
State’s Department of Revenue and/or the Internal Revenue Service. The Parties agree that Sellers’ obligation to
defend, indemnify, and hold harmless Buyer as described in this Agreement shall equally apply to Buyer and to Buyer’s
former, current, and future officers, directors, shareholders, subsidiaries, affiliates, members, managers, principals,
partners, agents, successors, and assigns.

 

(b)
Buyer shall indemnify and hold Sellers, and their successors and assigns harmless from and against all losses, costs,
damages, claims, lawsuits and liabilities arising in connection with any third-party claims concerning Buyer arising prior
to, or after the Closing Date (each, a “Buyer Claim”), if the basis of such Buyer Claim stems from an act
or omission of Buyer prior to the Closing Date. Buyer shall be solely responsible for all reasonable attorneys’ fees,
costs and expenses incurred by Sellers in defense of any such Claim. The indemnification obligations set forth herein, shall
include by way of example and not limitation, the duty to indemnify and hold Sellers harmless from and against any claims,
demands, actions, suits, arbitrations, assessments, adjustments, or other proceedings regarding or resulting from any state
or federal government tax filing, including amendments to any such filing, on behalf of Buyer. The Parties agree that
Buyer’s obligation to defend, indemnify, and hold harmless Sellers as described in this Agreement shall equally apply
to Sellers and to Sellers’ former, current, and future officers, directors, shareholders, subsidiaries, affiliates,
members, managers, principals, partners, agents, successors, and assigns.

 

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9. Alternative
Dispute Resolution. The Parties acknowledge and agree, either Party may elect to try and resolve any dispute, claim,
or controversy arising out of or relating to this Agreement by mediation. In the event such dispute cannot be resolved
by mediation, the dispute shall then be determined by arbitration using the rules of the American Arbitration Association
with three (3) arbitrators selected in accordance with such rules, the venue for which will be in Los Angeles, California.
The arbitration judgment will be final and binding upon the parties and may be entered in any court having
jurisdiction thereof.

 

10. Governing
Law; Jurisdiction; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of California. Unless otherwise resolved pursuant to Section 9, each Party: (a) consents to the exclusive jurisdiction
and venue of the Superior Court of the State of California, located in Los Angeles County, California for the enforcement of
this Agreement and matters pertaining to the Transaction and activities contemplated hereby; (b) waive any objection a Party
might have to jurisdiction or venue of such forum or that such forum is inconvenient; and (c) agree not to bring any such
action in any other jurisdiction or venue to which either Party might be entitled by domicile or otherwise

 

11. Assignment;
Parties Bound. This Agreement may not be assigned by either Party without prior written consent of the other Party. This
Agreement shall be binding on and inure to the benefit of the Parties to this Agreement and their respective heirs,
executors, administrators, legal representatives, successors and assigns as permitted by this Agreement.

 

12. Good
Faith. The Parties hereto agree to operate and proceed in good faith to accomplish the Transaction described herein. Any
consent required under this Agreement shall not be unreasonably withheld.

 

13. Notices.
Any notices, demands, or communications required or permitted hereunder shall be in writing and delivered in person,
transmitted by facsimile, or mailed via Federal Express or similar overnight delivery service, or by U.S. registered or
certified mail (return receipt requested), to the Parties at their respective addresses as set forth herein. Any such notices
shall be deemed to have been duly given on the earlier of: (a) the date of its receipt; or (b) the date that is three (3)
days after its mailing as provided herein.

 

14. Severability.
If any provision of this Agreement is held to be invalid or unenforceable for any reason whatsoever, the remaining
provisions shall remain valid and unimpaired, and shall continue in full force and effect.

 

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15. Amendments.
This Agreement may only be amended, revoked or otherwise changed pursuant to the mutual written consent of the
Parties.

 

16. Federal
Government Action. The Parties hereby acknowledge that they are aware of and fully understand that notwithstanding the
State of Arizona’s medical cannabis laws and the terms and conditions of this Agreement, Arizona medical cannabis
cultivators, transporters, distributors or possessors may still be arrested by federal officers and prosecuted under federal
law. In the event of a federal arrest, seizure, or prosecution action associated with the Parties’ activities described
herein, the Parties agree to hold each other and their respective attorneys harmless and agree to be individually responsible
for any attorney’s fees associated with defending such actions. The Parties also agree to waive illegality as a defense
to any contract enforcement action related to this Agreement and brought by either Party against the other Party.

 

17. Waiver.
The failure of a Party to enforce any provision of this Agreement at any time, to exercise any election or option provided
herein, or to require at any time the performance of any provisions herein will not in any way constitute a waiver of such
provision.

 

18. Attorneys’
Fees. Should any arbitration or litigation be commenced between the Parties to this contract concerning the rights and
duties of either Party in relation to this Agreement, the substantially prevailing Party in the arbitration or litigation
shall be entitled to (in addition to any other relief that may be granted) a reasonable sum as and for attorneys’ fees
in the arbitration or litigation, which sum shall be determined by the court or other person presiding in the arbitration or
litigation or in a separate action brought for that purpose.

 

19. Entire
Agreement. This Agreement supersedes all prior negotiations, discussions, understandings and agreements between the
Parties and constitutes the sole and entire agreement of the Parties respecting the subject matter hereof, and in no event,
shall either Party be charged with any covenant, representation, warranty, guaranty, indemnity or other agreement except to
the extent expressly stated in this Agreement.

 

20. Counterparts.
To facilitate execution, this Agreement may be executed in as many counterparts as may be deemed appropriate by the Parties,
all of which when taken together shall comprise one agreement.

 

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IN
WITNESS WHEREOF, the Parties hereto have executed this Acquisition Agreement as of the Effective Date.

 

	“BUYER”	 
	 	 	 
	SOLIS
    TEK, INC.,	 
	a
    Nevada corporation	 
	 	 	 
	By:
    	 	 
	Name:	Alan
    Lien	 
	Its:	President	 
	 	 	 
	“SELLERS”	 
	 	 	 
	MDM
    CULTIVATION, LLC	 
	a
    Delaware limited liability company	 
	 	 	 
	By:
    	 	 
	Name:	 	 
	Its:
    	 	 
	 	 	 
	LK
    VENTURES LLC,	 
	a
    Nevada limited liability company	 
	 	 	 
	By:
    	 	 
	Name:	 	 
	Its:
    	 	 
	 	 	 
	FUTURE
    FARM TECHNOLOGIES, INC.	 
	a
    Canadian corporation	 
	 	 	 
	By:
    	 	 
	Name:	 	 
	Its:
    	 	 
	 	 	 
	“COMPANY”	 
	YLK
    PARTNERS NV, LLC, a Nevada limited liability company, as Manager	 
	 	 	 
	By:
    	 	 
	Name:	 	 
	Its:	Manager	 

 

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EXHIBIT
A

 

[See
Attached Warrants]

 

    	 	Acquisition Agreement
Page 9 of 9ex_114023.htm

Exhibit 10.1

 

WARRANT TRANSFER AGREEMENT

 

This Warrant Transfer Agreement (this “Agreement”), dated as of May 10, 2018 (the “Effective Date”), is made by and among Colony Bankcorp, Inc., a Georgia corporation (the “Company”) and the sellers listed on Schedule I attached hereto (each a “Seller,” and collectively, the “Sellers”).

 

WHEREAS, each Seller holds warrants (each a “Warrant,” and collectively, the “Warrants”) to purchase shares of the Company’s common stock, par value $1.00 per share (“Common Stock”); and

 

WHEREAS, each Seller desires to sell, and the Company desires to purchase from such Seller, the number of Warrants set forth opposite such Seller’s name on Schedule I, representing all of the Warrants held by each Seller, upon the terms and the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE 1

SALE AND PURCHASE

 

1.1     Sale and Purchase. On the terms and subject to the conditions set forth in this Agreement, each Seller shall sell, transfer and assign to the Company such Seller’s Warrants, on the Effective Date or at such other time and date as the Sellers and the Company agree (the “Closing”), at a purchase price of $6.35 per share of Common Stock underlying such Warrant, for aggregate sale proceeds to such Seller as set forth opposite such Seller’s name on Schedule I, and the Company shall accept and purchase from such Seller the portion of such Seller’s Warrants indicated on Schedule I. The aggregate purchase price for the Warrants to be sold by the Sellers at Closing shall be $3,175,000.

 

1.2     Delivery of and Payment for the Warrants. At Closing, the Company shall pay, by wire transfer of immediately available funds to the account specified in writing by each Seller, each Seller’s portion of the purchase price as set forth in Schedule I, and, upon confirmation of receipt of the aggregate purchase price, the Sellers shall instruct the Company to transfer to the Company such Seller’s portion of the Warrants purchased pursuant to this Agreement. The obligation of each party hereto to consummate the purchase and sale of the Warrants hereunder at the Closing shall be subject to (a) the accuracy of the representations and warranties of the other party or parties, (b) the performance by the other party or parties of all obligations, covenants and agreements required to be performed by such party or parties on or prior to the Closing, (c) the non-objection of the Federal Reserve Bank of Atlanta (the “FRB”) with respect to the purchase of the Warrants, and (d) the non-objection of the Georgia Department of Banking and Finance (the “GDBF”) with respect to a dividend from the Company’s subsidiary, Colony Bank, in an amount sufficient to fund the aggregate purchase price for the Warrants (the “Special Dividend”).

 

1.3     Termination. If the Closing has not occurred within thirty (30) days from the Effective Date, the Company or any Seller shall have the right, but not the obligation, to terminate this Agreement. This Agreement may also be mutually terminated at any time prior to the Closing by written agreement of the parties.

 

 

 

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

Each Seller hereby represents and warrants, severally and not jointly, to the Company as follows:

 

2.1     Power and Authority. Seller has the full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder; and all action required to be taken by Seller for the due and proper authorization, execution and delivery by it of this Agreement and the consummation of the transactions contemplated hereby has been duly and validly taken. The person signing this Agreement on behalf of Seller has been duly and validly authorized and empowered to do so, and has the authority to bind the Seller to effectuate the transactions contemplated by this Agreement.

 

2.2     Authorization. This Agreement has been duly authorized, executed and delivered by or on behalf of Seller and constitutes a valid and binding agreement of the Seller enforceable in accordance with its terms, except to the extent enforcement thereof may be limited by bankruptcy, insolvency, reorganization or other laws affecting enforcement of creditors’ rights or by general equitable principles.

 

2.3     Consents. Assuming the accuracy of the Company’s representations and warranties set forth in Article 3, all governmental and other consents that are required to have been obtained by Seller with respect to this Agreement have been obtained and are in full force and effect and all conditions of any such consents have been complied with.

 

2.4     Title and Delivery. As of the date hereof and immediately prior to the delivery of the Warrants set forth opposite Seller’s name on Schedule I at the Closing, Seller is, and will be, the sole legal owner of, and holds, and will hold, good and valid title to the Warrants, free and clear of all liens and encumbrances. Seller has not exercised any of the Warrants. Other than this Agreement, Seller is not party to any contract or agreement relating to the Warrants or any rights relating thereto.

 

2.5     Independent Decision. Seller has (a) had an opportunity to receive information regarding, and to discuss, the Company’s business, management and financial affairs, to such Seller’s satisfaction, (b) is not relying upon any oral or written advice, counsel or representations of the Company for purposes of entering into this Agreement other than as specifically set forth herein, and (c) neither the Company nor any of its representatives has given the Seller (directly or indirectly through any other person) any assurance, guarantee or representation whatsoever as to the expected or projected future performance of the Company, future market price of the Company’s common stock, or any result, effect, consequence or benefit (including regulatory, tax, financial, accounting or otherwise) of this Agreement. Seller is a sophisticated investor and has the appropriate knowledge and experience in financial and business matters to evaluate the merits and risks of, and negotiate the transactions contemplated under, this Agreement and has had the opportunity to consult with its advisors, as it deems necessary or appropriate.

 

2

 

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby represents and warrants to each Seller as follows:

 

3.1     Power and Authority. The Company has the full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder; and all action required to be taken for the due and proper authorization, execution and delivery by it of this Agreement and the consummation of the transaction contemplated hereby has been duly and validly taken.

 

3.2     Authorization. This Agreement has been duly authorized, executed and delivered by or on behalf of the Company and constitutes a valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent enforcement thereof may be limited by bankruptcy, insolvency, reorganization or other laws affecting enforcement of creditors’ rights or by general equitable principles.

 

3.3     Consents. Except for (i) the non-objection of the FRB to the Company’s purchase of the Warrants and (ii) the non-objection of the GDBF with respect to the Special Dividend, all governmental and other consents that are required to have been obtained by the Company with respect to this Agreement have been obtained and are in full force and effect and all conditions of any such consents have been complied with.

 

3.4     Financial Capability. The Company has sufficient financial resources available to consummate the transactions contemplated by, and to perform its obligations under, this Agreement.

 

3.5     Independent Investigation. Company has made its own inquiry and investigation into, and based thereon, has formed an independent judgment concerning, the Warrants and the transactions contemplated hereby.

 

ARTICLE 4

MISCELLANEOUS

 

4.1     Further Assurances. Each of the parties hereto does hereby covenant and agree on behalf of itself, its successors, and its assigns, without further consideration, to prepare, execute, acknowledge, file, record, publish, and deliver such other instruments, documents and statements, and to take such other action as may be required by law or reasonably necessary to effectively carry out the purposes of this Agreement.

 

4.2     Survival. All representations and warranties contained herein or made in writing by any party in connection herewith shall survive the delivery of the Warrants until expiration of the applicable statute of limitations.

 

3

 

 

4.3     Amendments and Waivers. No provision of this Agreement may be amended or waived unless such amendment or waiver is in writing and signed, in the case of an amendment, by each Seller and the Company, or in the case of a waiver, by the relevant Seller (in the event it is the waiving party) or the Company. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

4.4     Binding Effect. Except as otherwise expressly provided herein, this Agreement shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors and all other persons hereafter that become a party hereto. No rights or obligations hereunder may be assigned by any party hereto without the written consent of each Seller or the Company. Any attempted transfer or assignment by any party of its rights and obligations under this Agreement, without the consent of the other party, shall be null and void.

 

4.5     Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and fully supersedes any and all prior or contemporaneous agreements or understandings between the parties hereto pertaining to the subject matter hereof. This Agreement is not intended to confer upon any person, other than the parties hereto, any rights or remedies hereunder.

 

4.6     Severability. In the event that any provision of this Agreement as applied to any party or to any circumstance, shall be adjudged by a court to be void, unenforceable or inoperative as a matter of law, then the same shall in no way affect any other provision in this Agreement, the application of such provision in any other circumstance or with respect to any other party, or the validity or enforceability of this Agreement as a whole.

 

4.7     Counterparts. This Agreement may be executed in any number of multiple counterparts, each of which shall be deemed to be an original (including signatures delivered via facsimile or PDF) and all of which taken together shall constitute one agreement and the same instrument shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. The parties hereto may deliver this Agreement by facsimile or PDF and each party shall be permitted to rely on the signatures so transmitted to the same extent and effect as if they were original signatures.

 

4.8     GOVERNING LAW; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAWS PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY ACTION WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

4

 

 

4.9     Notices. Any notice, consent, payment, demand, or communication required or permitted to be given by any provision of this Agreement shall be in writing and shall be (a) delivered personally to the party or to an officer of the party to whom the same is directed, or (b) sent by facsimile or other electronic or digital transmission method (including e-mail), or registered or certified mail, return receipt requested, postage prepaid, addressed, if to the Company, to 115 South Grant Street, Fitzgerald, Georgia, Attention: Terry L. Hester, Executive Vice President and Chief Financial Officer, with a copy to 1201 W. Peachtree St. NW, Atlanta, GA, 30309, Attention: Mark C. Kanaly, if to any Seller, to the address set forth on the signature page hereto, or to such other address as any such party may from time to time specify in writing to the other parties hereto. Any such notice shall be deemed to be delivered, given and received for all purposes as of: (i) the date so delivered, if delivered personally, (ii) upon receipt, if sent by facsimile or other electronic or digital transmission method (including e-mail), or (iii) on the date of receipt or refusal indicated on the return receipt, if sent by registered or certified mail, return receipt requested, postage and charges prepaid and properly addressed.

 

4.10     Costs and Expenses. Each party shall bear its own costs and expenses related to this Agreement and the transaction contemplated hereby.

 

4.11     Certain Rules of Construction. To the fullest extent permitted by law, the parties hereto intend that any ambiguities shall be resolved without reference to which party may have drafted this Agreement. All Section or subsection titles or other captions in this Agreement are for convenience only, and they shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Unless the context otherwise requires: (a) a term has the meaning assigned to it; (b) “or” is not exclusive; (c) words in the singular include the plural, and words in the plural include the singular; (d) provisions apply to successive events and transactions; (e) “herein,” “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular Section, subsection or other subdivision; (f) “include” or “including” shall be deemed to be followed by “without limitation” or “but not limited to” whether or not they are followed by such phrases or words of like import; (g) all references to “Sections” or “subsections” refer to Sections or subsections of this Agreement; and (h) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms.

 

(Signature Pages Follow)

 

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In witness whereof, the parties have caused this Warrant Transfer Agreement to be executed and delivered as of the date first above written.

 

	 	SELLERS	 
	 	 	 	 
	 	Bay Pond Partners, L.P.	 
	 	 	 	 
	 	By: Wellington Management Company LLP, as	 
	 	Investment adviser	 
	 	 	 	 
	 	By:	/s/ Emily Babalas	 
	 	Name:	Emily Babalas	 
	 	Title:	Managing Director and Counsel	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	c/o Wellington Management Company LLP	 
	 	280 Congress St.	 
	 	Boston, MA 02210	 
	 	Attn: Emily Babalas	 
	 	 	 
	 	 	 
	 	Bay Pond Investors USB, LLC	 
	 	 	 
	 	 	 
	 	By: Wellington Management Company LLP, as	 
	 	Investment adviser	 
	 	 	 	 
	 	By:	/s/ Emily Babalas	 
	 	Name:	Emily Babalas	 
	 	Title:	Managing Director and Counsel	 
	
			 

				
			 

				
			 

				
			 

			
	 	Address for Notices:	 
	 	 	 
	 	c/o Wellington Management Company LLP	 
	 	280 Congress St.	 
	 	Boston, MA 02210	 
	 	Attn: Emily Babalas	 

 

 

[Signature Page to Warrant Transfer Agreement]

 

 

 

 

	 	Ithan Creek Investors USB, LLC	 
	 	 	 	 
	 	By: Wellington Management Company LLP, as	 
	 	Investment adviser	 
	
			 

				
			 

				
			 

				
			 

			
	 	By:	/s/ Emily Babalas	 
	 	Name:	Emily Babalas	 
	 	Title:	Managing Director and Counsel	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 	 
	 	c/o Wellington Management Company LLP	 
	 	280 Congress St.	 
	 	Boston, MA 02210	 
	 	Attn: Emily Babalas	 
	 	 	 	 
	 	 	 	 
	 	Wolf Creek Partners, L.P.	 
	 	 	 	 
	 	 	 	 
	 	By: Wellington Management Company LLP, as	 
	 	Investment adviser	 
	 	 	 	 
	 	By:	/s/ Emily Babalas	 
	 	Name:	Emily Babalas	 
	 	Title:	Managing Director and Counsel	 
	 	 	 	 
	 	Address for Notices:	 
	 	 	 	 
	 	c/o Wellington Management Company LLP	 
	 	280 Congress St.	 
	 	Boston, MA 02210	 
	 	Attn: Emily Babalas	 

 

 

[Signature Page to Warrant Transfer Agreement]

 

 

 

 

	
			 

				
			Wolf Creek Investors USB, LLC

				
			 

			
	 	 	 
	 	By: Wellington Management Company LLP, as	 
	 	Investment adviser	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Emily Babalas

				
			 

			
	
			 

				
			Name:

				
			Emily Babalas

				
			 

			
	
			 

				
			Title:

				
			Managing Director and Counsel

				
			 

			
	 	 	 	 
	 	Address for Notices:	 
	 	 	 
	 	c/o Wellington Management Company LLP	 
	 	280 Congress St.	 
	 	Boston, MA 02210	 
	 	Attn: Emily Babalas	 

 

 

[Signature Page to Warrant Transfer Agreement]

 

 

 

 

	
			 

				
			Colony Bankcorp, Inc.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Terry Hester     

				
			 

			
	
			 

				
			Name:

				
			Terry Hester

				
			 

			
	
			 

				
			Title:

				
			Executive Vice President

				
			 

			

 

 

[Signature Page to Warrant Transfer Agreement]

 

 

 

 

Schedule I

 

	
			Seller

				
			Number of

			Warrants Being Sold

				
			Aggregate Purchase Price

			
	
			Bay Pond Partners, L.P.

				
			44154

				
			$280,377.90

			
	
			Bay Pond Investors USB, LLC

				
			38775

				
			$246,221.25

			
	
			Ithan Creek Investors USB, LLC

				
			143408

				
			$910,640.80

			
	Ithan Creek Investors II USB, LLC	7,301	$46,361.35
	
			Wolf Creek Partners, L.P.

				
			52586

				
			$333,921.10

			
	
			Wolf Creek Investors USB, LLC

				
			213776

				
			$1,357,477.60

			

 

 

[Signature Page to Warrant Transfer Agreement]

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