Document:

mmen_ex1020.htm

EXHIBIT 10.20
  
 SUBSCRIPTION AGREEMENT FOR SHARES
 (For US and International Subscribers)
      
 	 HAVE YOU COMPLETED THIS SUBSCRIPTION AGREEMENT PROPERLY?

	 The following items in this Subscription Agreement must be completed.
 (Please initial each box.)

	  
	  

	 All Subscribers
	  

	  
	  

	 ☐
	 All Subscribers must complete the information in the boxes on pages 2 and 3.

	  
	  

	 ☐
	 All Subscribers must sign the execution page of this Subscription Agreement on page 2.

	  
	  

	 ☐
	 Subscribers who are U.S. Purchasers (as defined herein) must complete Schedule “A” and sign on page A-7.

	  
	  

	 ☐
	 Subscribers who are not U.S. Purchasers must complete Schedule “B” and sign on page B-2.

     
 Return this executed Subscription Agreement and all applicable Schedules attached hereto as follows:
   
 Return to:
  
 MedMen Enterprises, Inc.
 10115 Jefferson Blvd.
 Culver City, CA 90232
 Attn: Dan Edwards
  
 With a Copy to:
 Cassels Brock & Blackwell LLP
 2100 Scotia Plaza
 40 King Street West
 Toronto, Ontario M5H 3C2 
  
 together with payment in a manner as described below, or in such other manner as may be provided for by the Corporation (as defined herein), of the Subscription Amount set out on page 2 of this Subscription Agreement. Payment can be made by way of wire transfer in U.S. funds using the following wire transfer instructions:
   
 	 Beneficiary Name and Address:
	  
	  

	  
	  
	  

	 Account No.:
	  
	  

	  
	  
	  

	 Routing No.:
	  
	  

	  
	  
	  

	 Bank Name:
	  
	  

	  
	  
	  

	 Bank Address:
	  
	  

	  
	  
	  

	 Bank SWIFT code:
	  
	  

   
 	 
	
	

	 

    
 MEDMEN ENTERPRISES INC. SUBSCRIPTION AGREEMENT FOR SHARES
  
 TO: MedMen Enterprises Inc. (the “Corporation”)
  
 The undersigned, on its own behalf and, if applicable, on behalf of a Disclosed Principal (as defined herein) for whom it is acting hereunder (the “Subscriber”), hereby irrevocably subscribes for and agrees to purchase from the Corporation that number of Class B Subordinate Voting Shares of the Corporation (the “Shares”) set out below at a price of US$0.43 per Share (the “Subscription Price”). The Subscriber agrees to be bound by the terms and conditions set forth in the attached “Terms and Conditions of Subscription for Shares” including without limitation the terms, representations, warranties, covenants, certifications and acknowledgements set forth in the applicable schedules attached thereto. The Subscriber further agrees, without limitation, that the Corporation may rely upon the Subscriber’s representations, warranties, covenants, certifications and acknowledgements contained in such documents.
   
 SUBSCRIPTION AND SUBSCRIBER INFORMATION
  
 Please print all information (other than signatures), as applicable, in the space provided below
  
 	 Subscriber Information and Signature
	  
	  

	  
	  
	  

	  
	  
	 Number of Shares: _______________________________________________

	  
	  
	  

	 (Name of Subscriber)
	  
	 Aggregate Subscription Price:  ___________________________________________________

	  
	  
	 (the “Subscription Amount”)

	 Account Reference (if applicable): _____________________________________
	  
	  

	  
	  
	  

	 By: ________________________________________________________________________
	  
	 If  the  Subscriber  is  signing  as  agent  or  trustee  for  a  principal  (a “Disclosed  Principal”)  and  is  not purchasing  as  agent  or  trustee  for accounts fully managed by it, complete the following:

	 Authorized Signature
	  
	  

	  
	  
	  

	  
	  
	 (Name 

	 (Official Capacity or Title – if the Subscriber is not an individual)
	  
	 of Disclosed Principal)

	  
	  
	  

	  
	  
	  

	 (Name of individual whose signature appears above if different than the name of the Subscriber printed above)
	  
	 (Disclosed Principal’s Residential Address, including Postal/Zip Code)

	  
	  
	  

	  
	  
	  

	 (Subscriber’s Residential Address)
	  
	 (Disclosed Principal’s Telephone Number)                                                                                                        (Email Address)

	  
	  
	  

	  
	  
	  

	 (Subscriber’s Postal/Zip Code)
	  
	 (Account Reference, if applicable)

	  
	  
	  

	  
	  
	  

	 (Subscriber’s Telephone Number)                                                                                                                      (Email Address)
	  
	  

  
 The Subscriber hereby provides the following instructions in connection with the registration and delivery of the Shares being purchased hereunder. It is anticipated that the Shares purchased and issued hereunder will be represented by way of a DRS Statement(s) (as defined herein), and not by way of a definitive certificate(s).
    
 	 
	 2

	

	 

  
 	 Registration Instructions:
	  
	 Delivery Instructions:

	  
	  
	  

	  
	  
	  

	 (Name)
	  
	 (Name)

	  
	  
	  

	  
	  
	  

	 (Account Reference, if applicable)
	  
	 (Account Reference, if applicable)

	  
	  
	  

	  
	  
	  

	 (Address, including Postal/Zip Code)
	  
	 (Address, including Postal/Zip Code)

	  
	  
	  

	  
	  
	  

	  
	  
	 Contact Name

	  
	  
	  

	  
	  
	  

	  
	  
	 (Contact’s Telephone Number)                                                                                 (Email Address)

  
 	  
	  
	 State whether the Subscriber is an Insider (as defined herein) of the  Corporation:

	 Number and kind of securities of the Corporation owned, controlled or directed, directly or indirectly, if any:
	  
	  

	  
	  
	 Yes                        No        

	  
	  
	  

	 12,409,322 of MedMen Enterprises USA subordinate Class B Shares (public shares). In addition, we have 5,527,343 shares of Class B Common Shares of MM CAN USA, Inc.
	  
	 (see Section 1.1 – Definitions)

	  
	  
	  

	  
	  
	 State whether the Subscriber is a Registrant (as defined herein):

	  
	  
	  

	  
	  
	 Yes                        No     

	  
	  
	  

	  
	  
	 (see Section 1.1 – Definitions)

	  
	  
	  

	  
	  
	 State whether the Subscriber is a Related Person (as defined herein):

	  
	  
	  

	  
	  
	 Yes                        No        

  
 	 The Corporation derives a substantial portion of its revenues from the cannabis industry in certain states of the United States, which industry is illegal under United States federal law. The Corporation is involved (through subsidiaries) in the cannabis industry in the United States where local state laws permit such activities.

   
 	 
	4
	

	 

   
 TERMS AND CONDITIONS OF SUBSCRIPTION FOR SHARES
  
 ARTICLE 1 – INTERPRETATION
  
 1.1 Definitions
  
 Whenever used in this Subscription Agreement, unless there is something in the subject matter or context inconsistent therewith, the following words and phrases shall have the respective meanings ascribed to them as follows:
  
 “Business Day” means a day other than a Saturday, Sunday or any other day on which the principal banks located in Toronto, Ontario or Los Angeles, California are not open for business.
  
 “Canadian Securities Laws” means, collectively, all Securities Laws of each of the provinces and territories of Canada.
  
 “CDS” means CDS Clearing and Depository Services Inc. 
  
 “Closing” has the meaning ascribed to such term in Section 4.1. 
  
 “Closing Date” has the meaning ascribed to such term in Section 4.1. 
  
 “Closing Time” has the meaning ascribed to such term in Section 4.1.
  
 “Control Person” has the meaning ascribed to such term in Section 1(1) of the Securities Act (Ontario).
  
 “Corporation” means MedMen Enterprises Inc. and includes any successor corporation to or of the Corporation.
  
 “CSE” means the Canadian Securities Exchange.
  
 “Directed Selling Efforts” means “directed selling efforts” as that term is defined in Rule 902 of Regulation S under the U.S. Securities Act. Without limiting the foregoing, but for greater clarity, such term means, subject to the exclusions from the definition of “directed selling efforts” contained in Regulation S under the U.S. Securities Act, any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for any of the Shares, and includes, without limitation, the placement of any advertisement in a publication with a general circulation in the United States that refers to the offering of the Shares.
  
 “DRS Statement” means a statement evidencing the applicable securities held by a securityholder in book- based form in lieu of a physical share certificate for such securities.
  
 “Disclosed Principal” has the meaning ascribed to such term on page 2 of this Subscription Agreement. “including” means including without limitation.
  
 “Insider” means (i) a director or officer of the Corporation (or a subsidiary of the Corporation), (ii) any Person who beneficially owns, directly or indirectly, voting securities of the Corporation or who exercises control or direction over, directly or indirectly, voting securities of the Corporation or a combination of both carrying more than 10% of the voting rights attached to all voting securities of the Corporation for the time being outstanding, or (iii) a director or officer of an Insider of the Corporation.
  
 “Offering” means the non-brokered private placement offering by the Corporation in the Selling Jurisdictions of up to 62,790,698 Shares pursuant to the Subscription Agreements for aggregate gross proceeds of up to Twenty Seven Million United States Dollars (US$27,000,000.00).
   
 	 
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 “Person” includes any individual (whether acting as an executor, trustee administrator, legal representative or otherwise), corporation, firm, partnership, limited liability company, sole proprietorship, syndicate, joint venture, trustee, trust, unincorporated organization or association, and pronouns have a similar extended meaning.
  
 “Registrant” means a dealer, adviser, ultimate designated person or chief compliance officer as those terms are used pursuant to the Canadian Securities Laws, or a Person registered or otherwise required to be registered under the Canadian Securities Laws.
  
 “Related Person” means, in respect of the Corporation: (i) a partner, director or officer of the Corporation or an affiliate of the Corporation, (ii) a promoter of or person who performs investor relations activities for the Corporation or an affiliate of the Corporation, (iii) any person that beneficially owns, either directly or indirectly, or exercises voting control or direction over at least 10% of the total voting rights attached to all voting securities of the Corporation or an affiliate of the Corporation, and (iv) such other person as may be designated from time to time by the CSE.
  
 “Securities Laws” means, as applicable, the securities laws, regulations, rules, rulings and orders in each of the Selling Jurisdictions and in each of the provinces and territories of Canada, the applicable policy statements, notices, blanket rulings, orders and all other regulatory instruments of the securities regulators in each of the Selling Jurisdictions and in each of the provinces and territories of Canada, and the rules and policies of the CSE.
  
 “Selling Jurisdictions” means, collectively, the United States and those other jurisdictions outside of Canada and the United States determined by the Corporation in its discretion provided it is understood that no prospectus filing, registration statement or comparable obligation arises in such other jurisdictions.
  
 “Shares” means the Class B Subordinate Voting Shares in the capital of the Corporation.
  
 “Subscriber” means the subscriber for the Shares as set out on page 2 of this Subscription Agreement and includes, as applicable, each Disclosed Principal for whom it is acting hereunder.
  
 “Subscription Agreement” means this subscription agreement (including all Schedules attached hereto) and any instrument amending this Subscription Agreement; “herein”, “hereof”, “hereto”, “hereunder”, and similar expressions mean and refer to this Subscription Agreement and not to a particular Article or Section; and the expression “Article” or “Section” followed by a number means and refers to the specified Article or Section of this Subscription Agreement.
  
 “Subscription Amount” has the meaning ascribed to such term on page 2 of this Subscription Agreement.
  
 “Subscription Price” has the meaning ascribed to such term on page 2 of this Subscription Agreement.
  
 “United States” means the United States of America, its territories and possessions, any State of the United States and the District of Columbia.
  
 “U.S. Accredited Investor” means an “accredited investor” as defined in Rule 501(a) of Regulation D under the U.S. Securities Act.
  
 “U.S. Person” means a “U.S. person” as such term is defined in Rule 902(k) of Regulation S under the U.S. Securities Act.
  
 “U.S. Purchaser” means a Subscriber (i) in the United States, (ii) executing this Subscription Agreement from within any such location, or (iii) that received an offer to acquire the Shares while in any such location.
  
 “U.S. Securities Act” means the United States Securities Act of 1933, as amended.
   
 	 
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 1.2 Number and Gender
   
 Words importing the singular number only shall include the plural and vice versa, words importing the masculine gender shall include the feminine gender and vice versa and words importing persons shall include firms and corporations and vice versa.
  
 1.3 Currency
  
 Unless otherwise specified, all dollar amounts in this Subscription Agreement, including the symbol “$”, are expressed in United States dollars.
   
 1.4 Subdivisions and Headings
  
 The division of this Subscription Agreement into Articles, Sections, Schedules and other subdivisions and the inclusion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Subscription Agreement. The headings in this Subscription Agreement are not intended to be full or precise descriptions of the text to which they refer. Unless something in the subject matter or context is inconsistent therewith, references herein to an Article, Section, Subsection, paragraph, clause or Schedule are to the applicable article, section, subsection, paragraph, clause or schedule of this Subscription Agreement.
  
 ARTICLE 2 – SCHEDULES
   
 The following are the Schedules attached to and incorporated in this Subscription Agreement by reference and deemed to be a part hereof:
  
 	 Schedule “A” 
	  
	 - U.S. Accredited Investor Certificate

	 Schedule “B” 
	  
	 - Offshore Subscriber Certificate

	 Schedule “C”
	  
	 - Representations and Warranties of the Corporation

	 Schedule “D” 
	  
	 - Material Subsidiaries

	 Schedule “E” 
	  
	 - Contact Information – Provincial Securities Regulatory Authorities

  
 ARTICLE 3 – SUBSCRIPTION AND DESCRIPTION OF SHARES
  
  
 3.1 Subscription for the Shares
  
 The Subscriber hereby confirms its irrevocable subscription for and offer to purchase from the Corporation that number of Shares indicated on page 2 of this Subscription Agreement, on and subject to the terms and conditions set out in this Subscription Agreement, for the Subscription Amount, which is payable as described in Article 4.
  
 3.2 Acceptance and Rejection of Subscription by the Corporation
  
 The Subscriber acknowledges and agrees that the Corporation reserves the right, in its absolute discretion, to reject this subscription for Shares, in whole or in part, at any time prior to the Closing Time. If this subscription is rejected in whole, any wire transfers, bank drafts or other forms of payment delivered to the Corporation representing the Subscription Amount will be promptly returned to the Subscriber without interest or deduction. If this subscription is accepted only in part, a cheque representing any refund of the Subscription Amount for that portion of the subscription for the Shares which is not accepted will be promptly returned to the Subscriber by the Corporation without interest or deduction.
  
 	 
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 ARTICLE 4– CLOSING
   
 4.1 Closing
  
 Delivery and sale of the Shares and payment of the aggregate Subscription Amount will be completed (the “Closing”) at the offices of the Corporation’s counsel, Cassels Brock & Blackwell LLP, in Toronto, Ontario, or at such other place as the Corporation may determine, at 8:00 a.m. (Toronto time) or at such other time as the Corporation may determine (the “Closing Time”), on December 18, 2019 or on such other date(s) as the Corporation may determine (the “Closing Date”).
  
 If, prior to the Closing Time, the terms and conditions contained in this Subscription Agreement (other than the delivery by the Corporation of the DRS Statement(s) representing the Shares or of such other evidence of the issue of the Shares as the Corporation may determine) have not been complied with to the satisfaction of the Corporation, or waived by the Corporation, as applicable, the Corporation and the Subscriber will have no further obligations under this Subscription Agreement.
  
 It is anticipated that the Shares purchased and issued hereunder will be represented by way of a DRS Statement(s) (as defined herein), and not by way of a definitive certificate(s).
  
 4.2 Conditions of Closing
  
 The Subscriber acknowledges and agrees that the Corporation is relying on the truth of the representations and warranties of the Subscriber contained in this Subscription Agreement as of the date of this Subscription Agreement, and as of the Closing Time as if made at and as of the Closing Time, and the fulfillment of the following additional conditions prior to the Closing Time:
  
 	  
	 (a) 
	 at or prior to the time and date specified by the Corporation to the Subscriber:

    
 	  
	 (i) 
	the Subscriber having made payment of the Subscription Amount in a manner as described below or in such other manner as may be provided for by the Corporation.
	  
	  
	  

	  
	  
	 Payment can be made by way of wire transfer in U.S. funds using the following wire transfer instructions:

   
 	  
	 Beneficiary Name and Address:
	  
	  
	  

	  
	  
	  
	  
	  

	  
	 Account No.:
	  
	  
	  

	  
	 Routing No.: 
	  
	  
	  

	  
	  
	  
	  
	  

	  
	 Bank Name:
	  
	  
	  

	  
	  
	  
	  
	  

	  
	 Bank Address: 
	  
	  
	  

	  
	  
	  
	  
	  

	  
	 Bank SWIFT code:
	  
	  
	  

   
 	  
	 (ii) 
	the Subscriber having properly completed, signed and delivered this Subscription Agreement (including all applicable Schedules attached hereto) to:
	  
	  
	  

	 MedMen Enterprises, Inc. 
 10115 Jefferson Blvd.
 Culver City, CA 90232 
  
 With a Copy to:
 Cassels Brock & Blackwell LLP
 2100 Scotia Plaza
 40 King Street West
 Toronto, Ontario M5H 3C2 

   
 	 
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	 (iii) 
	if the Subscriber is a U.S. Purchaser, the Subscriber having properly completed, signed and delivered Schedule “A”;
	  
	  
	  

	  
	 (iv) 
	if the Subscriber is not a U.S. Purchaser, the Subscriber having properly completed, signed and delivered Schedule “B”;

  
 	  
	 (b) 
	the Subscriber having executed and returned to the Corporation, at the Corporation’s request, all other documents as may be required by the Securities Laws or any other laws for delivery by the Corporation on behalf of the Subscriber or otherwise;
	  
	  
	  

	  
	 (c) 
	the representations and warranties of the Subscriber set forth herein being true and correct as of the Closing Time;
	  
	  
	  

	  
	 (d) 
	all covenants and agreements contained herein to be performed or complied with by the Subscriber on or prior to the Closing Time having been performed or complied with in all respects by the Subscriber;
	  
	  
	  

	  
	 (e) 
	the Corporation having obtained all necessary approvals, waivers, acknowledgements and consents in respect of the Offering;
	  
	  
	  

	  
	 (f) 
	the Corporation having accepted the Subscriber’s subscription, in whole or in part; and
	  
	  
	  

	  
	 (g) 
	the issue and sale of the Shares being exempt from the requirement to file a prospectus or registration statement under applicable Securities Laws relating to the sale of the Shares, or the Corporation having received such orders, consents or approvals as may be required to permit such sale without the requirement to file a prospectus or registration statement.

  
 ARTICLE 5 – ACKNOWLEDGEMENTS, REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER
  
 5.1 Acknowledgements, Representations, Warranties and Covenants of the Subscriber
   
 The Subscriber, on its own behalf and, if applicable, on behalf of a Disclosed Principal for whom it is acting hereunder, hereby acknowledges, represents and warrants to, and covenants with, the Corporation as follows and acknowledges that the Corporation is relying on such acknowledgements, representations, warranties and covenants in connection with the transactions contemplated herein:
  
 	  
	 (a) 
	The Subscriber confirms that it:

   
 	  
	 (i) 
	 has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks (including the potential loss of its entire investment) of its proposed investment in the Shares;

	  
	  
	  

	  
	 (ii) 
	is aware of the characteristics of the Shares and understands the risks relating to an investment therein; and
	  
	  
	  

	  
	 (iii) 
	is able to bear the economic risk of loss of its entire investment in the Shares.

    
 	 
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	 (b) 
	The Subscriber is resident, or if not an individual has its head office, in the jurisdiction set out on page 2 of this Subscription Agreement and intends that the Securities Laws of that jurisdiction govern the Subscriber’s subscription and is not aware of any reason why the laws of such jurisdiction would not govern such subscription. Such address was not created and is not used solely for the purpose of acquiring the Shares and the Subscriber was solicited to purchase in only such jurisdiction and the purchase by and sale to the Subscriber of the Shares has only occurred in such jurisdiction.
	  
	  
	  

	  
	 (c) 
	The subscription for the Shares by the Subscriber and issuance of the Shares to the Subscriber is being made pursuant to exemptions under, and does not contravene any of the, applicable Securities Laws in the jurisdiction in which the Subscriber resides and does not give rise to and is exempt from any obligation of the Corporation to prepare and file a prospectus or similar document, to satisfy any other disclosure requirements or to register the Shares, or to be registered with or to file any report or notice with any governmental or regulatory authority or to comply with any continuous disclosure obligations under the applicable Securities Laws of the jurisdiction in which the Subscriber resides.
	  
	  
	  

	  
	 (d) 
	As applicable, the Subscriber has properly completed, signed and delivered to the Corporation this Subscription Agreement, Schedule “A” (U.S. Accredited Investor Certificate) and Schedule “B” (Offshore Subscriber Certificate) and the acknowledgements, representations, warranties, covenants and information contained herein and therein are true and correct as of the date hereof and will be true and correct as of the Closing Time and if less than a complete copy of this Subscription Agreement is delivered to the Corporation, the Corporation and its advisors are entitled to assume that the Subscriber accepts and agrees to all the terms and conditions of the pages not delivered, unaltered.
	  
	  
	  

	  
	 (e) 
	The Subscriber is aware that the Shares have not been and will not be registered under the U.S. Securities Act or the securities laws of any state and that the Shares may not be offered or sold, directly or indirectly, in the United States or to a U.S. Person without registration under the U.S. Securities Act and applicable state securities laws or compliance with the requirements of an exemption from such registration and it acknowledges that the Corporation has no obligation or present intention to file a registration statement under the U.S. Securities Act or applicable state securities laws in respect of such securities.
	  
	  
	  

	  
	 (f) 
	The Subscriber undertakes and agrees that it will not offer or sell, directly or indirectly any of the Shares in the United States or to a U.S. Person unless such securities are registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirement is available.
	  
	  
	  

	  
	 (g) 
	If the Subscriber has completed, signed and delivered Schedule “B” to the Corporation:

  
 	  
	 (i) 
	The Subscriber is not in the United States or a U.S. Person and is not acquiring the Shares for the account or benefit of a Person in the United States or a U.S. Person.
	  
	  
	  

	  
	 (ii) 
	The Shares have not been offered to the Subscriber in the United States, and the individuals making the order to purchase the Shares and executing and delivering this Subscription Agreement on behalf of the Subscriber were not in the United States when the order was placed and this Subscription Agreement was executed and delivered.

     
 	 
	10
	

	 

  
 	  
	 (h) 
	It is acquiring the Shares for investment purposes only, and not with a view to any resale, direct or indirect distribution or other disposition of the Shares.
	  
	  
	  

	  
	 (i) 
	In effecting any resales of the Shares, the Subscriber will not engage in any sales, marketing or solicitation activities of the type undertaken by underwriters in the context of an offering of securities.
	  
	  
	  

	  
	 (j) 
	The Subscriber has not purchased the Shares as a result of any form of Directed Selling Efforts, and the sale of the Shares was not accompanied by any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over radio, television or telecommunications, including electronic display and the Internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.
	  
	  
	  

	  
	 (k) 
	The execution and delivery of this Subscription Agreement, the performance and compliance with the terms hereof, the subscription for the Shares and the completion of the transactions described herein by the Subscriber will not result in any material breach of, or be in conflict with or constitute a material default under, or create a state of facts which, after notice or lapse of time, or both, would constitute a material default under any term or provision of the constating documents, by-laws or resolutions of the Subscriber, if applicable, the Securities Laws or any other laws applicable to the Subscriber, any agreement to which the Subscriber is a party, or any judgment, decree, order, statute, rule or regulation applicable to the Subscriber.
	  
	  
	  

	  
	 (l) 
	The Subscriber is subscribing for the Shares as principal for its own account and not for the benefit of any other Person or if it is not subscribing as principal it is acting as trustee or agent for a Disclosed Principal (whose identity is disclosed on page 2 of this Subscription Agreement) who is subscribing as principal for its own account and not for the benefit of any other Person.
	  
	  
	  

	  
	 (m) 
	If the Subscriber is contracting hereunder as trustee or agent for a fully managed account (including for greater certainty, as a portfolio manager or comparable advisor) or as trustee or agent for a Disclosed Principal, the Subscriber is duly authorized to execute and deliver this Subscription Agreement and all other necessary documentation in connection with such subscription and if the Subscriber is acting as trustee or agent for a Disclosed Principal, who is subscribing as principal for its own account and not for the benefit of any other Person, this Subscription Agreement has been duly authorized, executed and delivered by or on behalf of, and constitutes a legal, valid and binding agreement of, such Disclosed Principal and the Subscriber acknowledges that the Corporation may be required by law to disclose to certain regulatory authorities the identity of such Disclosed Principal for whom it is acting.
	  
	  
	  

	  
	 (n) 
	In the case of a subscription for the Shares by the Subscriber acting as principal for its own account and not for the benefit of any other Person, this Subscription Agreement has been duly authorized, executed and delivered by, and constitutes a legal, valid and binding agreement of, the Subscriber. This Subscription Agreement is enforceable in accordance with its terms against the Subscriber.

   
 	 
	11
	

	 

     
 	  
	 (o) 
	If the Subscriber is:

    
 	  
	 (i) 
	a corporation, the Subscriber is duly incorporated and is validly subsisting under the laws of its jurisdiction of incorporation and has all requisite legal and corporate power and authority to execute and deliver this Subscription Agreement, to subscribe for the Shares as contemplated herein and to carry out and perform its covenants and obligations under the terms of this Subscription Agreement and has obtained all necessary approvals in respect thereof and the individual signing this Subscription Agreement has been duly authorized to execute and deliver this Subscription Agreement;
	  
	  
	  

	  
	 (ii) 
	a partnership, limited liability company, syndicate or other form of unincorporated organization, the Subscriber has all requisite legal capacity and authority to execute and deliver this Subscription Agreement, to subscribe for the Shares as contemplated herein and to carry out and perform its covenants and obligations under the terms of this Subscription Agreement and has obtained all necessary approvals in respect thereof and the individual signing this Subscription Agreement has been duly authorized to execute and deliver this Subscription Agreement; or
	  
	  
	  

	  
	 (iii) 
	an individual, the Subscriber is of the full age of majority in his or her jurisdiction of residence and is legally competent to execute, deliver and be bound by this Subscription Agreement, to subscribe for the Shares as contemplated herein and to carry out and perform his or her covenants and obligations under the terms of this Subscription Agreement and has obtained all necessary approvals in respect thereof.

    
 	  
	 (p) 
	There is no Person acting or purporting to act in connection with the transactions contemplated herein who is entitled to any brokerage or finder’s fee.
	  
	  
	  

	  
	 (q) 
	The Subscriber is not, with respect to the Corporation or any of its affiliates, a Control Person and the subscription hereunder by the Subscriber will not create a new Control Person.
	  
	  
	  

	  
	 (r) 
	The Subscriber is not acting jointly or in concert with any other subscriber in connection with the Offering for the purpose of the acquisition of the Shares.
	  
	  
	  

	  
	 (s) 
	The Subscriber has been advised to consult its own legal advisors with respect to the execution, delivery and performance by it of this Subscription Agreement and the transactions contemplated by this Subscription Agreement, including trading in the Shares, and with respect to the hold periods imposed by the Securities Laws of the Selling Jurisdiction in which the Subscriber resides and other applicable securities laws, and acknowledges that no representation has been made by the Corporation or its advisors respecting the applicable hold periods imposed by the Securities Laws or other resale restrictions applicable to such securities which restrict the ability of the Subscriber (or others for whom it is contracting hereunder) to resell such securities, that the Subscriber (or others for whom it is contracting hereunder) is solely responsible to find out what these hold periods and resale restrictions are, that the Subscriber (or others for whom it is contracting hereunder) is solely responsible (and the Corporation and its advisors are not in any way responsible) for compliance with applicable hold periods and resale restrictions and that the Subscriber (or others for whom it is contracting hereunder) is aware that it may not be able to resell such securities except in accordance with limited exemptions under the Securities Laws and other applicable securities laws.

   
 	 
	12
	

	 

     
 	  
	 (t) 
	 The Subscriber has not received or been provided with a prospectus, offering memorandum (within the meaning of the Securities Laws) or any sales or advertising literature in connection with the Offering or any document purporting to describe the business and affairs of the Corporation which has been prepared for review by prospective purchasers to assist in making an investment decision in respect of the Shares, and the Subscriber’s decision to subscribe for the Shares was not based upon, and the Subscriber has not relied upon, any oral or written representations as to facts made by or on behalf of the Corporation, or any employee, agent or affiliate thereof or any other Person associated therewith, except as set forth in this Section 6.1(t). The Subscriber’s decision to subscribe for the Shares was based solely upon this Subscription Agreement.

	  
	  
	  

	  
	 (u) 
	Neither the Corporation, nor any of its directors, employees, officers, affiliates or agents, has made any written or oral representations:

  
 	  
	 (i) 
	that any Person will resell or repurchase the Shares;
	  
	  
	  

	  
	 (ii) 
	that any Person will refund all or any part of the Subscription Amount; or
	  
	  
	  

	  
	 (iii) 
	as to the future price or value of the Shares.

   
 	  
	 (v) 
	The Subscriber is not purchasing the Shares with knowledge of any material information concerning the Corporation that has not been generally disclosed.
	  
	  
	  

	  
	 (w) 
	The funds representing the Subscription Amount which will be advanced by the Subscriber hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) nor for the purposes of similar laws in other jurisdictions and the Subscriber acknowledges that the Corporation may in the future be required by law to disclose the Subscriber’s name and other information relating to this Subscription Agreement and the Subscriber’s subscription hereunder pursuant to the PCMLTFA and similar laws in other jurisdictions. The Subscriber represents, warrants and covenants that (i) to the best of its knowledge, none of the Subscription Amount to be provided by the Subscriber (A) has been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States, or any other jurisdiction, or (B) is being tendered on behalf of a Person who has not been identified to the Subscriber, and (ii) the Subscriber shall promptly notify the Corporation if the Subscriber discovers that any of such representations and warranties ceases to be true and shall provide the Corporation with appropriate information in connection therewith.
	  
	  
	  

	  
	 (x) 
	The Subscriber is not a person or entity identified in the Regulations Implementing the United Nations Resolutions on the Suppression of Terrorism, the United Nations Al- Qaida and Taliban Regulations, the Regulations Implementing the United Nations Resolution on the Democratic People’s Republic of Korea, the Regulations Implementing the United Nations Resolution on Iran, the United Nations Cote d’Ivoire Regulations, the United Nations Democratic Republic of the Congo Regulations, the United Nations Liberia Regulations, the United Nations Sudan Regulations, the Special Economic Measures (Zimbabwe) Regulations or the Special Economic Measures (Burma) Regulations, the Special Economic Measures (Ukraine) Regulations, the Special Economic Measures (Russia) Regulations, or the Freezing Assets of Corrupt Foreign Officials Act (collectively, the “Trade Sanctions”). The Subscriber acknowledges that the Corporation may in the future be required by law to disclose the name and other information of the Subscriber related to the acquisition of the Shares hereunder pursuant to the Trade Sanctions.

   
 	 
	13
	

	 

  
 5.2 Acknowledgments and Covenants of the Subscriber
  
 The Subscriber, on its own behalf and, if applicable, on behalf of a Disclosed Principal for whom it is acting hereunder, hereby acknowledges to, and covenants with, the Corporation as follows and acknowledges that the Corporation is relying on such acknowledgements and covenants in connection with the transactions contemplated herein:
  
 	  
	 (a) 
	It has had the opportunity to ask and have answered any and all questions which the Subscriber wished to have answered with respect to the subscription for the Shares made hereunder.
	  
	  
	  

	  
	 (b) 
	The offer of the Shares does not constitute a recommendation to purchase the Shares or financial product advice and the Subscriber acknowledges that the Corporation has not had regard to the Subscriber’s particular objectives, financial situation or needs.
	  
	  
	  

	  
	 (c) 
	There are risks associated with the purchase of the Shares and no securities commission, agency, governmental authority, regulatory body, stock exchange or similar authority has reviewed or passed on the merits of the Shares nor have any such agencies or authorities made any recommendations or endorsement with respect to the Shares.
	  
	  
	  

	  
	 (d) 
	If required by applicable Securities Laws or the Corporation, the Subscriber will execute, deliver and file or assist the Corporation in filing such reports, undertakings and other documents with respect to the issue of the Shares as may be required by any securities commission or other regulatory authority or otherwise under any applicable laws.
	  
	  
	  

	  
	 (e) 
	The Shares will be subject to resale restrictions under the Securities Laws of the Selling Jurisdiction in which the Subscriber resides or under other applicable securities laws, and the Subscriber covenants that it will not resell the Shares except in compliance with such laws and the Subscriber acknowledges that it is solely responsible (and the Corporation and its advisors are not in any way responsible) for such compliance.
	  
	  
	  

	  
	 (f) 
	The Shares may only be transferred or assigned by the Subscriber in compliance with applicable laws (including applicable Securities Laws).
	  
	  
	  

	  
	 (g) 
	The Shares purchased hereunder shall have attached to them, whether through the electronic deposit system of CDS, an ownership statement issued under a direct registration system or other electronic book-based system, or on certificates that may be issued, as applicable, any legends setting out resale restrictions under applicable Securities Laws.
	  
	  
	  

	  
	 (h) 
	 The Corporation is relying on available exemptions from the requirement to provide the Subscriber with a prospectus or a similar document, to satisfy other disclosure requirements or to register the Shares under the applicable Securities Laws and, as a consequence of acquiring the Shares pursuant to such exemptions:

  
 	  
	 (i) 
	 certain protections, rights and remedies provided by such Securities Laws, including statutory rights of rescission and certain statutory remedies against an issuer, underwriters, auditors, directors and officers, that may be available to investors who acquire securities offered by a prospectus or similar document, will not be available to the Subscriber;

   
 	 
	14
	

	 

     
 	  
	 (ii) 
	the common law, as applicable, may not provide investors with an adequate remedy in the event that they suffer investment losses in connection with securities acquired in a private placement;
	  
	  
	  

	  
	 (iii) 
	the Subscriber may not receive information that would otherwise be required to be given under such Securities Laws; and
	  
	  
	  

	  
	 (iv) 
	the Corporation is relieved from certain obligations that would otherwise apply under such Securities Laws.

  
 	  
	 (i) 
	The Shares subscribed for by the Subscriber hereunder form part of the issuance and sale of Shares by the Corporation at the Subscription Price for aggregate gross proceeds of up to Twenty Seven Million United States Dollars (US$27,000,000.00) and raising such amount pursuant to the Offering may take longer to close than expected and there is no guarantee that such amount will be raised. The Subscriber acknowledges that no minimum amount of funds must be raised under the Offering, which means that the Corporation could complete the Offering after raising only a small portion of the maximum size of the Offering set out above. The Subscriber further acknowledges that the Corporation may increase the maximum size of the Offering and/or offer or sell additional securities concurrently with the Offering without notice to the Subscriber, which may have a dilutive effect on current shareholders or securityholders of the Corporation and the Subscriber. The Company shall be entitled use the net proceeds of the Offering for any purpose, at its sole discretion.
	  
	  
	  

	  
	 (j) 
	The Corporation (including its subsidiaries) may complete additional financings in the future in order to develop the business of the Corporation and fund its ongoing operations, and such future financings may have a dilutive effect on shareholders or securityholders of the Corporation, including the Subscriber; but there is no assurance that any such financing will be available, on reasonable terms or at all, and if not so available, this may have a material adverse effect on the Corporation’s business, assets, liabilities, financial condition, capital, performance or prospects.
	  
	  
	  

	  
	 (k) 
	The Corporation (i) is under no obligation to be or to remain a “foreign private issuer”, as such term is defined in Rule 405 of Regulation C under the U.S. Securities Act and Rule 3b-4 under the United States Exchange Act of 1934 (as amended), and (ii) may not, at the time the Subscriber sells the Shares or at any other time, be a foreign private issuer.
	  
	  
	  

	  
	 (l) 
	The Subscriber is responsible for obtaining such legal and tax advice as it considers appropriate in connection with the execution, delivery and performance of this Subscription Agreement and the transactions contemplated under this Subscription Agreement.
	  
	  
	  

	  
	 (m) 
	There may be material tax consequences to the Subscriber as a result of the acquisition, holding or disposition of the Shares and the Corporation does not give any opinion or make any representation with respect to the tax status of the Corporation or the consequences to the Subscriber under United States, Canadian, state, provincial, local or foreign tax law of the Subscriber’s acquisition, holding or disposition of the Shares, including whether the Corporation will at any given time be deemed a “passive foreign investment company” within the meaning of Section 1297 of the United States Internal Revenue Code of 1986, as amended.

   
 	 
	15
	

	 

     
 	  
	 (n) 
	This offer to subscribe is made for valuable consideration and may not be withdrawn, cancelled, terminated or revoked by the Subscriber without the consent of the Corporation.
	  
	  
	  

	  
	 (o) 
	There is no government or other insurance covering the Shares.
	  
	  
	  

	  
	 (p) 
	Legal counsel retained by the Corporation are acting as counsel to the Corporation, and not as counsel to the Subscriber.
	  
	  
	  

	  
	 (q) 
	The Subscriber acknowledges that this Subscription Agreement and the Schedules attached hereto require the Subscriber to provide certain information to the Corporation. Such information is being collected by the Corporation for the purposes of completing the Offering, which includes, without limitation, determining the Subscriber’s eligibility to purchase the Shares under the Securities Laws and other applicable securities laws and completing filings required by any stock exchange, securities commission or other regulatory authority. The Subscriber’s information may be disclosed by the Corporation to: (a) securities commissions or stock exchanges, (b) the Canada Revenue Agency, the Internal Revenue Service or other taxing authorities, and (c) any of the other parties involved in the Offering, including legal counsel to the Corporation and may be included in record books in connection with the Offering. By executing this Subscription Agreement, the Subscriber is deemed to be consenting to the foregoing collection, use and disclosure of the Subscriber’s information. The Subscriber also consents to the filing of copies or originals of any of the Subscriber’s documents described herein as may be required to be filed with any securities commission or stock exchange in connection with the transactions contemplated hereby. The Subscriber represents and warrants that it has the authority to provide the consents and acknowledgements set out in this paragraph on behalf of each Disclosed Principal, as applicable.
	  
	  
	  

	  
	 (r) 
	The Subscriber hereby provides consent to the disclosure of his, her or its information to the CSE pursuant to Form 9 – Notice of Issuance or Proposed Issuance of Listed Securities of the CSE or otherwise pursuant to such filing and the collection, use and disclosure of his, her or its information by the CSE in the manner and for the purposes described in Appendix A of such Form 9 or as otherwise identified by the CSE, from time to time.
	  
	  
	  

	  
	 (s) 
	The information provided by the Subscriber on pages 2 and 3 and in the applicable Schedules attached hereto identifying the name, address, telephone number and email address of the Subscriber, the number of Shares being purchased hereunder, the Subscription Amount, the Closing Date, the exemption that the Subscriber is relying on in purchasing the Shares and the Subscriber’s registrant or insider status, if applicable, may be disclosed to the securities regulatory authority or regulator in certain of the Provinces of Canada, and in such instance such information is being collected by such securities regulatory authorities and regulators under the authority granted to each of them under securities legislation. This information is being collected for the purposes of the administration and enforcement of the securities legislation of such Provinces of Canada. The Subscriber (and for certainty, including each Disclosed Principal) hereby authorizes the indirect collection of such information by such securities regulatory authorities and regulators. In the event the Subscriber has any questions with respect to the indirect collection of such information by such securities regulatory authorities and regulators, the Subscriber should contact the applicable securities regulatory authority or regulator using the contact information set out in Schedule “E” (Contact Information– Provincial Securities Regulatory Authorities) attached hereto.

   
 	 
	16
	

	 

     
 	  
	 (t) 
	Bank secrecy laws in the United States require financial institutions, including broker- dealers, to report to relevant authorities, including the Financial Crimes Enforcement Network (FinCEN), suspicious activities involving funds derived from an illegal activity. Accordingly, the purchase or sale of the Shares may be the subject a report to FinCEN or other regulatory agency if cannabis continues to be a Schedule I drug under the Controlled Substances Act.
	  
	  
	  

	  
	 (u) 
	The Subscriber acknowledges that the Corporation’s business activities, while believed to be compliant with applicable U.S. state and local law, are illegal under U.S. federal law. Although certain states and territories of the U.S. authorize medical cannabis, and in some cases adult-use cannabis, production and distribution by licensed or registered entities under applicable state laws, under U.S. federal law, the possession, use, cultivation, and transfer of cannabis for any purpose is illegal and any such acts are criminal acts under federal law in any and all circumstances under the United States Controlled Substances Act. As a result, among other things, the Subscriber’s contribution to and involvement in such activities may result in federal civil and/or criminal prosecution, including forfeiture of his, her or its entire investment. The Subscriber also acknowledges that violations of any U.S. federal laws and regulations could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted by either the U.S. federal government or private citizens, or criminal charges, including but not limited to disgorgement of profits, cessation of business activities or divestiture. In addition, it is difficult to estimate the time or resources that would be needed for the investigation of any such matters or its final resolution because, in part, the time and resources that may be needed are dependent on the nature and extent of any information requested by the applicable authorities involved, and such time or resources could be substantial.

  
 5.3 Reliance on Representations, Warranties, Covenants and Acknowledgements
  
 The Subscriber acknowledges and agrees that the representations, warranties, covenants and acknowledgements made by the Subscriber in this Subscription Agreement (including in the applicable Schedule attached hereto) are made with the intention that they may be relied upon by the Corporation and its legal counsel, including in determining the Subscriber’s eligibility (and if applicable, the eligibility of the Disclosed Principal) to purchase the Shares. The Subscriber further agrees that by accepting the Shares, the Subscriber shall be representing and warranting that such representations, warranties, covenants and acknowledgements are true as at the Closing Time with the same force and effect as if they had been made by the Subscriber at the Closing Time. The Subscriber undertakes to immediately notify the Corporation of any change in any statement or other information relating to the Subscriber set forth herein (including in the applicable Schedule attached hereto) which takes place prior to the Closing Time.
  
 ARTICLE 6 – REPRESENTATIONS AND WARRANTIES OF THE CORPORATION
  
 The Corporation hereby provides the Subscriber with the representations and warranties set out in Schedule “C” as of the Closing Time and acknowledges that the Subscriber is relying on such representations and warranties in connection with the transactions contemplated herein.
  
 ARTICLE 7 – SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS
  
 7.1 Survival of Representations, Warranties and Covenants of the Subscriber
  
 The representations, warranties and covenants of the Subscriber contained in this Subscription Agreement shall survive the Closing and continue in full force and effect for the benefit of the Corporation for a period of two years following the Closing, in each case notwithstanding such Closing or any investigation made by or on behalf of the Corporation with respect thereto and notwithstanding any subsequent disposition by the Subscriber of any of the Shares.
  
 	 
	17
	

	 

     
 7.2 Survival of Representations, Warranties and Covenants of the Corporation
   
 The representations, warranties and covenants of the Corporation contained in this Subscription Agreement shall survive the Closing and continue in full force and effect for the benefit of the Subscriber for a period of two years following the Closing, in each case notwithstanding such Closing or any investigation made by or on behalf of the Subscriber with respect thereto.
  
 ARTICLE 7 – MISCELLANEOUS
  
 7.1 Further Assurances
   
 Each of the parties hereto upon the request of each of the other parties hereto, whether before or after the Closing Time, shall do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, documents, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be necessary or desirable to complete the transactions contemplated herein.
  
 7.2 Notices
  
 	  
	 (a) 
	Any notice, direction or other instrument required or permitted to be given to any party hereto shall be in writing and shall be sufficiently given if delivered personally, electronically transmitted, or transmitted by facsimile tested prior to transmission to such party, as follows:

   
 	  
	 (i) 
	in the case of the Corporation, to:
	  
	  
	  

	  
	  
	 MedMen Enterprises Inc.
 10115 Jefferson Blvd.
 Culver City, California 90232

	  
	  
	  

	  
	  
	 Attention:       Email: 

	  
	  
	  

	  
	 (ii)
	 in the case of the Subscriber, at the address specified on page 2 of this Subscription Agreement.

     
 	  
	 (b) 
	Any such notice, direction or other instrument, if delivered personally, shall be deemed to have been given and received on the day on which it was delivered, provided that if such day is not a Business Day then the notice, direction or other instrument shall be deemed to have been given and received on the first Business Day next following such day, and if transmitted electronically or by facsimile, shall be deemed to have been given and received on the day of its transmission, provided that if such day is not a Business Day or if it is transmitted or received after the end of normal business hours at the location of receipt then the notice, direction or other instrument shall be deemed to have been given and received on the first Business Day next following the day of such transmission.
	  
	  
	  

	  
	 (c) 
	Any party hereto may change its address for service from time to time by notice given to each of the other parties hereto in accordance with the foregoing provisions.

   
 	 
	18
	

	 

    
 7.3 Time of the Essence
   
 Time shall be of the essence of this Subscription Agreement and every part hereof.
  
 7.4 Costs and Expenses
  
 All costs and expenses (including, without limitation, the fees and disbursements of legal counsel) incurred in connection with this Subscription Agreement and the transactions herein contemplated shall be paid and borne by the party incurring such costs and expenses.
  
 7.5 Applicable Law
   
 This Subscription Agreement shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of Ontario and the laws of Canada applicable therein. Any and all disputes arising under this Subscription Agreement, whether as to interpretation, performance or otherwise, shall be subject to the non-exclusive jurisdiction of the courts of the Province of Ontario and each of the parties hereto hereby irrevocably attorns to the jurisdiction of the courts of such Province.
  
 7.6 Entire Agreement
   
 This Subscription Agreement, including the Schedules attached hereto, constitutes the entire agreement between the parties hereto with respect to the transactions contemplated herein and cancels and supersedes any prior understandings, agreements, negotiations and discussions between the parties hereto. There are no representations, warranties, covenants, conditions, terms or collateral agreements or understandings, express or implied, between the parties hereto other than those expressly set forth in this Subscription Agreement, including the Schedules attached hereto. This Subscription Agreement may not be amended or modified in any respect except by written instrument executed by each of the parties hereto.
  
 7.7 Counterparts
  
 This Subscription Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same Subscription Agreement. Counterparts may be delivered either in original, PDF or faxed form and the parties hereto adopt any signatures received by PDF or a receiving fax machine as original signatures of the parties.
  
 7.8 Assignment
  
 This Subscription Agreement may not be assigned by either party hereto except with the prior written consent of the other party hereto.
  
 7.9 Enurement
  
 This Subscription Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors (including any successor by reason of the amalgamation or merger of any party) and permitted assigns.
  
 7.10 Severability
  
 If any provision of this Subscription Agreement is determined to be void or unenforceable in whole or in part, it will be deemed not to affect or impair the validity of any other provision of this Subscription Agreement and such void or unenforceable provision will be severable from this Subscription Agreement.
  
 	 
	19
	

	 

     
 SIGNATURE PAGE FOLLOWS
  
 The Corporation hereby accepts the subscription for Shares as set forth on pages 2 and 3 of this Subscription Agreement on the terms and conditions contained in this Subscription Agreement (including all applicable Schedules attached hereto) this    day of _____________.
  
 	 	 MEDMEN ENTERPRISES INC.
	
	 	 	 	 
		Per:		
	  
	  
	 Adam Bierman, Authorized Signatory
	 

    
 	 
	20
	

	 

     
 SCHEDULE “A”
  
 U.S. ACCREDITED INVESTOR CERTIFICATE
  
 Capitalized terms not specifically defined in this certification have the meaning ascribed to them in the Subscription Agreement to which this Schedule “A” is attached. In the event of a conflict between the terms of this certification and such Subscription Agreement, the terms of this certification shall prevail.
  
 	 TO: MEDMEN ENTERPRISES INC. (the “Corporation”)

  
 In connection with the purchase by the undersigned Subscriber of the Shares, the Subscriber, on its own behalf or on behalf of each Disclosed Principal for whom the Subscriber is acting (collectively, the “Subscriber”), hereby represents, warrants, covenants and certifies to the Corporation (and acknowledges that the Corporation and its counsel are relying thereon) that:
  
 	 (a) 
	It is authorized to consummate the purchase of the Shares.
	  
	  

	 (b) 
	It has such knowledge, skill and experience in financial, investment and business matters as to be capable of evaluating the merits and risks of an investment in the Shares and it is able to bear the economic risk of loss of its entire investment. To the extent necessary, the Subscriber has retained, at his or her own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of the Subscription Agreement and owning the Shares.
	  
	  

	 (c) 
	The Corporation has provided to it the opportunity to ask questions and receive answers concerning the terms and conditions of the Offering and it has had access to such information concerning the Corporation as it has considered necessary or appropriate in connection with its investment decision to acquire the Shares, and that any answers to questions and any request for information have been complied with to the Subscriber’s satisfaction.
	  
	  

	 (d) 
	It is acquiring the Shares for its own account, or for the account of one or more Persons for whom it is exercising sole investment discretion (a “Beneficial Purchaser”), for investment purposes only, and not with a view to any resale, distribution or other disposition of the Shares in violation of the United States federal or state securities laws.
	  
	  

	 (e) 
	The address of the Subscriber set out on page 2 of the Subscription Agreement is the true and correct principal address of the Subscriber and can be relied on by the Corporation for the purposes of state blue-sky laws and the Subscriber has not been formed for the specific purpose of purchasing the Shares.
	  
	  

	 (f) 
	The Subscriber understands and acknowledges that the Shares have not been and will not be registered under the U.S. Securities Act or the securities laws of any state of the United States, and that the offer and sale of Shares to it are being made in reliance upon Rule 506(b) of Regulation D under the U.S. Securities Act and similar exemptions under applicable state securities laws.
	  
	  

	 (g) 
	It understands that (i) the Shares have not been and will not be registered under the U.S. Securities Act, or the securities laws of any state of the United States, and will therefore be “restricted securities”, as defined in Rule 144 under the U.S. Securities Act and may be offered, sold, pledged or otherwise transferred, directly or indirectly, only in transactions exempt from or not subject to the registration requirements of the U.S. Securities Act and applicable state securities laws; and (ii) the offer and sale of Shares contemplated hereby is being made in reliance on an exemption from the registration requirements of the U.S. Securities Act and similar exemptions under state securities laws.

   
 	 
	A-1
	

	 

     
 	 (h) 
	 The Subscriber is, and if applicable, each Beneficial Purchaser for whose account it is purchasing the Shares is a U.S. Accredited Investor by virtue of meeting one of the following criteria (please write “SUB” for the criteria the Subscriber meets and “BEN” for the criteria any Persons for whose account or benefit the Subscriber is purchasing the Shares meet):

  
 	  
	 1. 
	 Initials______
	 A bank, as defined in Section 3(a)(2) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or

	  
	  
	  
	  

	  
	 2. 
	 Initials______
	 A savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or

	  
	  
	  
	  

	  
	 3. 
  
	 Initials______
	 A broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934; or

	  
	 4. 
  
	 Initials______
	 An insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; or

	  
	 5. 
  
	 Initials______
	 An investment company registered under the United States Investment Company Act of 1940; or

	  
	 6. 
  
	 Initials______
	 A business development company as defined in Section 2(a)(48) of the United States Investment Company Act of 1940; or

	  
	 7. 
  
	 Initials______
	 A small business investment company licensed by the U.S. Small Business Administration under Section 301 (c) or (d) of the United States Small Business Investment Act of 1958; or

	  
	 8. 
  
	 Initials______
	 A plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of US$5,000,000; or

	  
	 9. 
  
	 Initials______
	 An employee benefit plan within the meaning of the United States Employee Retirement Income Security Act of 1974 in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or an employee benefit plan with total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons who are U.S. Accredited Investors; or

	  
	 10. 
	 Initials______
	 A private business development company as defined in Section 202(a)(22) of the United States Investment Advisers Act of 1940; or

	  
	 11. 
  
	 Initials______
	 An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or a partnership, not formed for the specific purpose of acquiring the securities offered under the accompanying Subscription Agreement, with total assets in excess of US$5,000,000; or

	  
	 12. 
  
	 Initials______
	 Any director or executive officer of the Corporation; or

	  
	 13. 
  
	 Initials______
	 A natural person whose individual net worth, or joint net worth, with that person’s spouse, exceeds US$1,000,000 as determined on the following basis:
 (i) the person’s primary residence shall not be included as an asset;
 (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale and purchase of securities contemplated by the accompanying Subscription Agreement, shall not be included as a liability (except that if the amount of such indebtedness outstanding at such time exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and
 (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability; or

	  
	 14. 
  
	 Initials______
	 A natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person’s spouse in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or

	  
	 15. 
  
	 Initials______
	 A trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered under the accompanying Subscription Agreement, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the U.S. Securities Act; or

	  
	 16. 
  
	 Initials______
	 Any entity in which all of the equity owners meet the requirements of at least one of the above categories (if this alternative is checked, you must identify each equity owner and provide statements signed by each demonstrating how each qualifies as a U.S. Accredited Investor).

    
 	 
	A-2
	

	 

     
 	 (i) 
	The Subscriber has not purchased the Shares as a result of any “directed selling efforts” (as defined in Regulation S under the U.S. Securities Act or any any form of “general solicitation” or “general advertising” (as those terms are used in Regulation D under the U.S. Securities Act), including, without limitation, advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or on the internet, or broadcast over radio or television or the internet, or other form of telecommunications, including electronic display, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.
	  
	  

	 (j) 
	If the Subscriber decides to offer, sell, pledge or otherwise transfer any of the Shares, it will not offer, sell or otherwise transfer any of such securities, directly or indirectly, unless:

  
 	  
	 (i) 
	the sale is to the Corporation;
	  
	  
	  

	  
	 (ii) 
	the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the U.S. Securities Act and in compliance with applicable local laws and regulations;
	  
	  
	  

	  
	 (iii) 
	the sale is made pursuant to the exemption from the registration requirements of the U.S. Securities Act provided by Rule 144 or Rule 144A thereunder, if available, and in accordance with any applicable state securities or “blue sky” laws; or
	  
	  
	  

	  
	 (iv) 
	 the securities are sold in a transaction that does not require registration under the U.S. Securities Act or any applicable state laws and regulations governing the offer and sale of securities,
	  
	  
	  

	  
	 and, in the case of each of (iii) and (iv) (and, if required by the transfer agent for the Underlying Shares, in the case of (ii)) it has prior to such sale furnished to the Corporation an opinion of counsel reasonably satisfactory to the Corporation stating that such transaction is exempt from registration under the U.S. Securities Act and applicable state securities.

   
 	 (k) 
	 The DRS Statements representing or other evidence of the Shares, as well as all DRS Statements or other evidence issued in exchange for or in substitution of the foregoing, until such time as is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws, will bear, on the face of such statements or other evidence, the following legend:

	  
	  

	  
	 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR UNDER ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (i) RULE 144 OR (ii) 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, (D) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (E) UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(i) OR (D) ABOVE, A LEGAL OPINION REASONABLY SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO THE CORPORATION AND THE CORPORATION’S TRANSFER AGENT TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.”

	  
	  

	  
	 provided that, if any of the Shares are being sold in accordance with Rule 904 of Regulation S, the legend may be removed by providing to the Corporation’s registrar and transfer agent a declaration in the form as the Corporation may prescribe from time to time and if required by the Corporation’s registrar and transfer agent an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, or other evidence reasonably satisfactory to the Corporation, that the proposed transfer may be effected without registration under the U.S. Securities Act; and provided, further, that, if any such securities are being sold under Rule 144 under the U.S. Securities Act, the legend may be removed by delivering to the Corporation and the Corporation’s registrar and transfer agent, an opinion of counsel of recognized standing reasonably satisfactory to the Corporation, that the legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

  
 	 
	A-3
	

	 

  
 	  
	 (l) 
	The Subscriber understands and agrees that there may be material tax consequences to it of an acquisition, holding or disposition of the Shares. The Corporation gives no opinion and makes no representation with respect to the tax consequences to the Subscriber under United States, state, local or foreign tax law of its acquisition, holding or disposition of the Shares, and the Subscriber acknowledges that it is solely responsible for determining the tax consequences to it with respect to its investment, including whether the Corporation will at any given time be deemed a “passive foreign investment company” within the meaning of Section 1297 of the United States Internal Revenue Code of 1986, as amended.
	  
	  
	  

	  
	 (m) 
	The Subscriber is aware that its ability to enforce civil liabilities under the United States federal securities laws may be affected adversely by, among other things: (i) the fact that the Corporation is organized under the laws of the Province of British Columbia in Canada; (ii) some of the directors and officers may be residents of countries other than the United States; and (iii) a portion of the assets of the Corporation and such Persons may be located outside the United States. Consequently, it may be difficult to provide service of process on the Corporation and it may be difficult to enforce any judgment against the Corporation.
	  
	  
	  

	  
	 (n) 
	It understands that (i) if the Corporation is ever determined to be an issuer that is, or that has been at any time previously, an issuer with no or nominal operations and no or nominal assets other than cash and cash equivalents, Rule 144 under the U.S. Securities Act may not be available for re-sales of the Shares; and (ii) the Corporation is not obligated to take, and has no present intention of taking, any action to make Rule 144 under the U.S. Securities Act (or any other exemption) available for re-sales of the Shares.
	  
	  
	  

	  
	 (o) 
	The Subscriber understands and agrees that the financial statements of the Corporation have been, or will be, prepared in accordance with Canadian generally accepted accounting principles or International Financial Reporting Standards, as issued by the International Accounting Standards Board, which differ in some respects from United States generally accepted accounting principles, and thus may not be comparable to financial statements of United States companies.
	  
	  
	  

	  
	 (p) 
	It consents to the Corporation making a notation on its records or giving instructions to any transfer agent of the Corporation in order to implement the restrictions on transfer set forth and described in this certification and the Subscription Agreement.
	  
	  
	  

	  
	 (q) 
	If required by applicable securities legislation, regulatory policy or order or by any securities commission, stock exchange or other regulatory authority, the Subscriber will execute, deliver, file and otherwise assist the Corporation in filing reports, questionnaires, undertakings and other documents with respect to the ownership of the Shares.
	  
	  
	  

	  
	 (r) 
	It understands that the Corporation has no obligation to register, and has no present intention to register, the resale of any of the Shares under the U.S. Securities Act. Accordingly, the Subscriber understands that absent registration, under the rules of the United States Securities and Exchange Commission, the Subscriber may be required to hold the Shares indefinitely or to transfer the Shares in transactions which are exempt from registration under the U.S. Securities Act, in which event the transferee may acquire “restricted securities” subject to the same limitations as in the hands of the Subscriber. As a consequence, the Subscriber understands that it must bear the economic risks of the investment in the Shares for an indefinite period of time.
	  
	  
	  

	  
	 (s) 
	 That the funds representing the Subscription Amount which will be advanced by the Subscriber to the Corporation hereunder will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”) and the Subscriber acknowledges that the Corporation may in the future be required by law to disclose the Subscriber’s name and other information relating to the Subscription Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act. No portion of the Subscription Amount to be provided by the Subscriber (i) has been or will be derived from or related to any activity that is deemed criminal under the laws of the United States, or any other jurisdiction, or (ii) is being tendered on behalf of a Person who has not been identified to or by the Subscriber, and it shall promptly notify the Corporation if the Subscriber discovers that any of such representations ceases to be true and provide the Corporation with appropriate information in connection therewith.

  
 SIGNATURE PAGE FOLLOWS
  
 	 
	A-4
	

	 

   
 The foregoing representations and warranties are true and accurate as of the date of this U.S. Accredited Investor Certificate and will be true and accurate as of the Closing Time and the Subscriber acknowledges that this U.S. Accredited Investor Certificate is incorporated into and forms a part of the Subscription Agreement to which it is attached. If any such representation or warranty shall not be true and accurate prior to the Closing Time, the Subscriber shall give immediate written notice of such fact to the Corporation prior to the Closing Time.
   
 Dated ______________________________
  
 	 	 Signature of individual (if Subscriber is an individual)
	
	  
	  
	  

	  
	 Authorized signatory (if Subscriber is not an individual)
	  

	 	 	 	 
			
	  
	 Name of Subscriber (please print)
	  

	  
	  
	  

	  
	  
	  

	  
	 Name of authorized signatory (please print)
	  

	  
	  
	  

	  
	  
	  

	  
	 Official capacity of authorized signatory (please print)
	  

   
 	 
	A-5
	

	 

    
 SCHEDULE “B”
 OFFSHORE SUBSCRIBER CERTIFICATE
    
 	 TO: MEDMEN ENTERPRISES INC. (the “Corporation”)

	  

   
 In connection with the purchase by the undersigned Subscriber of Class B Subordinate Voting Shares of the Corporation (the “Shares”), the Subscriber hereby represents, warrants, covenants and certifies to the Corporation (and acknowledges that the Corporation and its counsel are relying thereon) that:
  
 	  
	 (i) 
	the Subscriber is not resident in Canada or subject to applicable Canadian securities laws;
	  
	  
	  

	  
	 (ii) 
	the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws having application to the distribution of the Shares to the Subscriber by the Corporation in the jurisdiction in which the Subscriber is resident;
	  
	  
	  

	  
	 (iii) 
	the Subscriber is acquiring the Shares pursuant to an applicable exemption from any prospectus, registration or similar or other disclosure requirements under the applicable securities laws of the jurisdiction in which the Subscriber is resident, or the Subscriber is permitted to acquire the Shares under the applicable securities laws of the jurisdiction in which the Subscriber is resident without the need to rely on such exemptions;
	  
	  
	  

	  
	 (iv) 
	the Subscriber is acquiring the Shares as principal for its own account and not for the benefit of any other person;
	  
	  
	  

	  
	 (v) 
	the issuance of Shares to the Subscriber may be effected by the Corporation without the necessity of the filing of any document with or obtaining any approval from or effecting any registration with any governmental entity or similar regulatory authority having jurisdiction over the Subscriber;
	  
	  
	  

	  
	 (vi) 
	the completion of the issuance of the Shares to the Subscriber as contemplated in the attached Subscription Agreement complies in all respects with all applicable laws in the Subscriber’s jurisdiction of residence;
	  
	  
	  

	  
	 (vii) 
	the applicable securities laws do not require the Corporation to register any of the Shares, file a prospectus or similar document, or make any filings or disclosures or seek any approvals of any kind whatsoever from any regulatory authority of any kind whatsoever in the jurisdiction in which the Subscriber is resident; and
	  
	  
	  

	  
	 (viii) 
	the Subscriber will not sell, transfer or dispose of the Shares except in accordance with all applicable laws, including applicable securities laws of Canada, and the Subscriber acknowledges that the Corporation shall have no obligation to register any such purported sale, transfer or disposition under applicable Canadian securities laws or otherwise.

  
 The Subscriber acknowledges that you are relying on this certificate to determine the Subscriber’s suitability as an acquirer of securities of the Corporation. The Subscriber agrees that the representations, warranties, covenants and certifications contained to this certificate shall survive any issuance of securities of the Corporation to the Subscriber.
   
 	 
	B-1
	

	 

  
 The foregoing representations and warranties are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Time (as defined in the Subscription Agreement to which this Schedule “B” is attached) and the Subscriber acknowledges that this certificate is incorporated into and forms a part of the Subscription Agreement to which it is attached. If any such representation or warranty shall not be true and accurate prior to the Closing Time, the Subscriber shall give immediate written notice of such fact to the Corporation prior to the Closing Time.
  
 	Dated: 		 Signed: 
	
	 	 	 	 
				
	 Witness (If Subscriber is an individual)
	  
	 Print the name of Subscriber
	 
	 	 		 
	 	 	 	 
	 Print Name of Witness
	  
	 If Subscriber is a corporation or other entity, print name and title of Authorized Signing Officer
	  

  
 	 
	B-2
	

	 

  
 SCHEDULE “C”
  
 Representations and Warranties of the Corporation
  
 Definitions Related to Reps and Warranties (to be inserted into body of the Subscription Agreement in due course):
  
 “BCBCA” means the Business Corporations Act (British Columbia);
  
 “Constating Documents” means the Notice of Articles and Articles of the Corporation;
  
 “Corporation Financial Statements” means the audited financial statements of the Corporation as at and for the years ended June 29, 2019 and June 30, 2018, together with the notes thereto and the auditor’s report thereon, and the unaudited condensed interim consolidated financial statements of the Corporation as at and for the thirteen weeks ended September 28, 2019 and the three months ended September 30, 2018, together with the notes thereto;
  
 “Governmental Body” means any (i) multinational, federal, provincial, state, municipal, local or other governmental or public department, central bank, court, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) any subdivision or authority of any of the foregoing, or (iii) any quasi-governmental, self-regulatory organization or private body exercising any regulatory, expropriation or taxing authority under or for the account of its members or any of the above;
  
 “IFRS” means International Financial Reporting Standards;
  
 “Intellectual Property” means all trade or brand names, business names, trademarks, service marks, copyrights, patents, patent rights, licenses, industrial designs, know-how (including trade secrets and other unpatented or unpatentable proprietary or confidential information, systems or procedures), computer software inventions, designs and other industrial or intellectual property of any kind or nature whatsoever (including applications for all of the foregoing and renewals, divisions, continuations, continuations-in- part, extensions and reissues, where applicable, relating thereto);
  
 “Leased Premises” means the premises that any of the MedMen Entities occupy as a tenant, and which are material to the Corporation on consolidated basis;
  
 “LLC” means MM Enterprises USA, LLC, a limited liability company formed under the laws of Delaware, and includes any successor to or of the company;
  
 “Material Adverse Effect” means a material adverse effect on (i) the business, affairs, operations, condition (financial or otherwise), earnings, assets, liabilities (absolute, accrued, contingent or otherwise) or capital of the Corporation and its subsidiaries, taken as a whole, whether or not arising in the ordinary course of business, (ii) the transactions contemplated by this Agreement, or (iii) the ability of the Corporation to perform its obligations under this Agreement;
  
 “Material Subsidiaries” means each subsidiary identified as a subsidiary of the Corporation in Schedule “D”;
  
 “MedMen Corp.” means MM CAN USA, Inc., a corporation incorporated under the laws of California, and includes any successor corporation to or of the corporation;
  
 “MedMen Entity” means the Corporation and each of the Material Subsidiaries, and MedMen Entities means all of them;
   
 	 
	C-1
	

	 

    
 “NI 51-102” means National Instrument 51-102 – Continuous Disclosure Obligations;
  
 “Public Record” means all information filed by or on behalf of the Corporation with the securities commissions or securities regulatory authorities in the Reporting Jurisdictions since May 28, 2018;
  
 “Reporting Jurisdictions” means, collectively, each of the provinces and territories of Canada;
  
 “SEDAR” means the System for Electronic Data Analysis and Retrieval established under National Instrument 13-101 – System for Electronic Document Analysis and Retrieval;
  
 Reps and Warranties:
  
 	  
	 (a) 
	The Corporation (i) is a corporation duly formed and validly existing under the BCBCA and is current and up-to-date with all material filings required to be made under the BCBCA; and (ii) has all requisite corporate power and capacity, is duly qualified and holds all necessary material permits, licences and authorizations necessary to carry on its business as now conducted, and to own, lease or operate its properties and assets, and no steps or proceedings have been taken by any Person, voluntary or otherwise, requiring or authorizing its dissolution or winding up.
	  
	  
	  

	  
	 (b) 
	Except as otherwise disclosed in the Public Record, there exist no options, warrants, purchase rights, or other contracts or commitments that could require the Corporation or another MedMen Entity to sell, transfer or otherwise dispose of any issued securities of a Material Subsidiary that it beneficially owns.
	  
	  
	  

	  
	 (c) 
	Each of the Corporation and the Material Subsidiaries is a corporation or other legal entity duly formed, continued or amalgamated and validly existing under the laws of the jurisdiction in which it was formed, continued or amalgamated, as the case may be, and each has all requisite corporate power and capacity and is duly qualified and holds all necessary material permits, licences and authorizations necessary to carry on its business as now conducted, and to own, lease or operate its properties and assets, and no steps or proceedings have been taken by any Person, voluntary or otherwise, requiring or authorizing its dissolution or winding up. There exist no options, warrants, purchase rights, or other contracts or commitments that could require the Corporation to sell, transfer or otherwise dispose of any of the issued securities of the LLC or MedMen Corp. that it beneficially owns.
	  
	  
	  

	  
	 (d) 
	The Corporation (i) has all requisite corporate power and capacity to enter into this Agreement and to perform the transactions contemplated herein, and (ii) has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.
	  
	  
	  

	  
	 (e) 
	The Corporation has taken all necessary corporate action to validly issue and sell the Shares, as fully paid and non-assessable Class B Subordinate Voting Shares in the capital of the Corporation.
	  
	  
	  

	  
	 (f) 
	This Agreement has been duly authorized, executed and delivered by the Corporation and constitutes legal, valid and binding obligations of the Corporation, enforceable against the Corporation by the other parties thereto in accordance with their terms, provided that enforcement thereof may be limited by laws affecting creditors’ rights generally, that specific performance and other equitable remedies may only be granted in the discretion of a court of competent jurisdiction, and that the provisions relating to indemnity, contribution and waiver of contribution may be unenforceable and that enforceability is subject to the provisions of the Limitations Act, 2002 (Ontario).

  
 	 
	C-2
	

	 

  
 	  
	 (g) 
	The execution and delivery of this Agreement, the fulfilment of the terms hereof by the Corporation and the issuance, sale and delivery by the Corporation at the Closing Time of the Shares do not and will not require the consent, approval or authorization of or with any Governmental Body, stock exchange or other third party (including under the terms of any material agreement or material debt instrument to which the Corporation is a party), except:
	  
	  
	  

	  
	 (i) 
	those which have been obtained; and (ii) such customary notices or filings required to be submitted within the applicable time frame pursuant to applicable Securities Laws.
	  
	  
	  

	  
	 (h) 
	Other than the Material Subsidiaries, the Corporation has no direct or indirect subsidiary or any investment that is material to the Corporation on a consolidated basis or, except as set out in the Public Record, any proposed investment in any Person that will be material to the Corporation on a consolidated basis.
	  
	  
	  

	  
	 (i) 
	Other than the Material Subsidiaries, no subsidiary of the Corporation carries on any material active business, holds a material licence, owns any material real or personal property, or is the tenant in respect of any material Leased Premises.
	  
	  
	  

	  
	 (j) 
	No act or proceeding has been taken by or against the Material Subsidiaries in connection with their liquidation, winding-up or bankruptcy, or, to the knowledge of the Corporation, are pending.
	  
	  
	  

	  
	 (k) 
	All of the issued and outstanding shares or ownership interests of each MedMen Entity is outstanding as fully paid and non-assessable (if applicable for such entity).
	  
	  
	  

	  
	 (l) 
	The authorized and issued share capital of the Corporation consists of an unlimited number of Class A Super Voting Shares of which 1,630,590 were issued and outstanding as at the close of business on December 18, 2019, an unlimited number of Class B Subordinate Voting Shares of which 239,074,494 were issued and outstanding as at the close of business on December 18, 2019 and an unlimited number of preferred shares, issuable in series, none of which were issued and outstanding as at the close of business on December 18, 2019. Other than as disclosed in the Public Record, neither the Corporation nor the Material Subsidiaries are party to any agreement, and the Corporation is not aware of any agreement or instrument, which in any manner affects the voting control of any securities of the Corporation or the Material Subsidiaries.
	  
	  
	  

	  
	 (m) 
	The authorized and issued share capital of MedMen Corp. consists of voting common shares in the capital of MedMen Corp. of which 238,012,080 were issued and outstanding as at the close of business on December 18, 2019 and non-voting redeemable common shares in the capital of MedMen Corp. of which 307,271,413 were issued and outstanding as at the close of business on December 18, 2019.
	  
	  
	  

	  
	 (n) 
	The authorized and issued capital of the LLC consists of redeemable units of the LLC of which 725,017 were issued and outstanding as at the close of business on December 18, 2019, non-redeemable units of the LLC of which 545,283,493 were issued and outstanding as at the close of business on December 18, 2019 and two series of long-term incentive plan units of the LLC designated as “Appreciation Only LTIP Units” and “Full Value LTIP Units” of which 20,456,124 long-term incentive plan units were issued and outstanding as at the close of business on December 18, 2019.

  
 	 
	C-3
	

	 

  
 	  
	 (o) 
	Other than as disclosed in the Public Record, other than in respect of MedMen Boston, LLC, MattnJeremy, Inc., and Milkman, LLC, in respect of which the Corporation has a direct or indirect equity interest in aggregate of 90.1%, 80% and 77.6%, respectively, and other than in respect of MedMen Corp. and the LLC, the Corporation owns, directly or indirectly, all of the issued and outstanding shares or membership interests, as applicable, of each Material Subsidiary free and clear of all encumbrances, claims or demands whatsoever.
	  
	  
	  

	  
	 (p) 
	The form of certificate representing the Shares has been approved and adopted by the board of directors of the Corporation and does not conflict with any of the Constating Documents or applicable laws and complies with the rules and regulations of the CSE and no order ceasing or suspending trading in any securities of the Corporation or prohibiting the trading of any of the Corporation’s issued securities has been issued and no proceedings for such purpose are pending or, to the knowledge of the Corporation, threatened.
	  
	  
	  

	  
	 (q) 
	The currently issued and outstanding Class B Subordinate Voting Shares of the Corporation are listed and posted for trading on the CSE, and the Corporation has not taken any action which would reasonably be expected to result in the delisting or suspension of the same on or from the CSE.
	  
	  
	  

	  
	 (r) 
	The Corporation is in compliance in all material respects with the policies of the CSE existing as of the Closing Time.
	  
	  
	  

	  
	 (s) 
	The Corporation is a “reporting issuer” in each of the Reporting Jurisdictions.
	  
	  
	  

	  
	 (t) 
	The Corporation is not in material default of any requirement of the Canadian Securities Laws of the Reporting Jurisdictions and is not included on a list of defaulting reporting issuers maintained by any of the securities commissions or securities regulatory authorities in the Reporting Jurisdictions.
	  
	  
	  

	  
	 (u) 
	The Shares have been duly authorized and validly allotted and upon receipt by the Corporation of the consideration therefor, will be issued as fully paid and non-assessable Class B Subordinate Voting Shares of the Corporation.
	  
	  
	  

	  
	 (v) 
	Odyssey Trust Company at its offices in Calgary, Alberta has been duly appointed as the transfer agent and registrar for the Class B Subordinate Voting Shares of the Corporation.
	  
	  
	  

	  
	 (w) 
	Other than in respect of certain United States federal laws relating to the cultivation, manufacturing, distribution, retail sale or possession of cannabis in the United States, and other related judgments, orders or decrees (collectively, the “U.S. Cannabis Laws”), each MedMen Entity is conducting its business in material compliance with all applicable laws and regulations of each jurisdiction in which it carries on business and each MedMen Entity holds all material requisite licenses, registrations, qualifications, permits and consents necessary or appropriate for carrying on its business as currently carried on and all such licences, registrations, qualifications, permits and consents are valid and subsisting and in good standing in all material respects. Without limiting the generality of the foregoing, to the knowledge of the Corporation, no MedMen Entity has received a written notice of material non-compliance which remains in effect, nor does it know of, nor have reasonable grounds to know of, any facts that could give rise to a notice of material non-compliance with any such laws, regulations or permits (other than with respect to the U.S. Cannabis Laws).

  
 	 
	C-4
	

	 

  
 	  
	 (x) 
	Other than the Leased Premises or licences or rights to use trademarks or third party names, each MedMen Entity is the absolute legal and beneficial owner of all of its material assets, and no other property or assets are necessary for the conduct of the business of MedMen Entities as currently conducted, other than as would not have a Material Adverse Effect. Any and all of the agreements and other documents and instruments pursuant to which each of the MedMen Entities holds its assets (including any interest in, or right to earn an interest in, any Intellectual Property) are valid and subsisting agreements, documents and instruments in full force and effect, enforceable in accordance with the terms thereof and such properties and assets are in good standing under the applicable statutes and regulations of the jurisdictions in which they are situated, and all material leases, licenses and other agreements pursuant to which the MedMen Entities derive the interests thereof in such property are in good standing, other than in each such case as would not have a Material Adverse Effect. The Corporation does not know of any claim or the basis for any claim that could reasonably be expected to adversely affect the right of the MedMen Entities to use, transfer or otherwise exploit their respective assets, none of the properties (or any interest in, or right to earn an interest in, any property) of the MedMen Entities is subject to any right of first refusal or purchase or acquisition right, and, no MedMen Entity has a responsibility or obligation to pay any commission, royalty, licence fee or similar payment to any Person with respect to the property and assets thereof, other than in each such case as would not have a Material Adverse Effect.
	  
	  
	  

	  
	 (y) 
	No legal or governmental proceedings or inquiries are pending to which a MedMen Entity is a party or to which the property thereof is subject that would result in the revocation or modification of any material certificate, authority, permit or license that is necessary to conduct the business now conducted by a MedMen Entity and, to the knowledge of the Corporation, no such legal or governmental proceedings or inquiries have been threatened against or are contemplated with respect to a MedMen Entity or with respect to the properties or assets thereof.
	  
	  
	  

	  
	 (z) 
	Other than as disclosed in the Public Record, there are no material actions, suits, judgments, investigations or proceedings of any kind whatsoever outstanding against or affecting any MedMen Entity, or, to the knowledge of the Corporation, pending or threatened against or affecting any MedMen Entity at law or in equity or before or by any commission, board, bureau or agency of any kind whatsoever and, to the knowledge of the Corporation, there is no basis therefore and no MedMen Entity is subject to any judgment, order, writ, injunction, decree, award, rule, policy or regulation of any Governmental Body, which, either separately or in the aggregate, is expected to have a Material Adverse Effect.
	  
	  
	  

	  
	 (aa) 
	No MedMen Entity is in violation of its constating documents or in default in any material respect in the performance or observance of any material obligation, agreement, covenant or condition contained in any contract, indenture, trust deed, mortgage, loan agreement, note, lease, licence or other agreement or instrument to which it is a party or by which it or its property or assets may be bound.
	  
	  
	  

	  
	 (bb) 
	To the knowledge of the Corporation, no counterparty to any material obligation, agreement, covenant or condition contained in any contract, indenture, trust deed, mortgage, loan agreement, note, lease or other agreement or instrument to which any MedMen Entity is a party is in default in the performance or observance thereof, except where such violation or default in performance would not have a Material Adverse Effect.

  
 	 
	C-5
	

	 

     
 	  
	 (cc) 
	No order, ruling or determination having the effect of suspending the sale or ceasing the trading in any securities of the Corporation, MedMen Corp. or the LLC has been issued by any regulatory authority and is continuing in effect and no proceedings for that purpose have been instituted or, to the knowledge of the Corporation, are pending, contemplated or threatened by any regulatory authority.
	  
	  
	  

	  
	 (dd) 
	The Corporation Financial Statements have been prepared in accordance with IFRS, contain no material misrepresentations and present fairly, in all material respects, the financial condition of the applicable entity or group on a consolidated basis as at the date thereof and the results of the operations and cash flows of the of the applicable entity or group on a consolidated basis for the period then ended and contain and reflect adequate provisions or allowance for all reasonably anticipated liabilities, expenses and losses of the applicable entity or group on a consolidated basis that are required to be disclosed in such financial statements.
	  
	  
	  

	  
	 (ee) 
	All taxes (including income tax, capital tax, payroll taxes, employer health tax, workers’ compensation payments, property taxes, custom and land transfer taxes), duties, royalties, levies, imposts, assessments, deductions, charges or withholdings and all liabilities with respect thereto including any penalty and interest payable with respect thereto due and payable by each MedMen Entity have been paid, other than any immaterial amounts as may have failed to have been remitted when due. All tax returns, declarations, remittances and filings required to be filed by each MedMen Entity have been filed with all appropriate governmental authorities and all such returns, declarations, remittances and filings are complete and accurate and no material fact or facts have been omitted therefrom which would make any of them materially misleading. Other than in the ordinary course of an applicable Governmental Body, no examination of any tax return of the MedMen Entities is currently in progress to the knowledge of the Corporation and there are no issues or disputes outstanding with any Governmental Body respecting any taxes that have been paid, or may be payable, by any MedMen Entity in any case, other than as would not have a Material Adverse Effect.
	  
	  
	  

	  
	 (ff) 
	The Corporation maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization, and (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with IFRS and to maintain accountability for assets.
	  
	  
	  

	  
	 (gg) 
	The Corporation and the Material Subsidiaries own or have the Intellectual Property necessary to permit the Corporation and the Material Subsidiaries to conduct their business as currently conducted. No MedMen Entity has received any notice nor is the Corporation aware of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property or of any facts or circumstances that would render any Intellectual Property invalid or inadequate to protect the interests of each MedMen Entity therein and which infringement or conflict (if subject to an unfavourable decision, ruling or finding) or invalidity or inadequacy would have a Material Adverse Effect.

   
 	 
	C-6
	

	 

   
 	  
	 (hh) 
	The Corporation and the Material Subsidiaries have taken all reasonable steps to protect their Intellectual Property in those jurisdictions where, in the reasonable opinion of the Corporation, each carries on a sufficient business to justify such filings.
	  
	  
	  

	  
	 (ii) 
	To the knowledge of the Corporation, and other than certain restrictions on the registration of trademarks related to cannabis at the U.S. federal level, there are no material restrictions on the ability of any MedMen Entity to use and exploit all rights in the Intellectual Property required in the ordinary course of the business of the MedMen Entities. None of the rights of each MedMen Entity in the Intellectual Property will be impaired or affected in any way by the transactions contemplated by this Agreement.
	  
	  
	  

	  
	 (jj) 
	Other than certain restrictions on the registration of trademarks related to cannabis at the U.S. federal level, all registrations of Intellectual Property are in good standing and are recorded in the name of a MedMen Entity in the appropriate offices to preserve the rights thereto. All such registrations have been filed, prosecuted and obtained in accordance with all applicable legal requirements and are currently in effect and in compliance with all applicable legal requirements.
	  
	  
	  

	  
	 (kk) 
	To the knowledge of the Corporation, no MedMen Entity is affected by any commitment, agreement or document containing any covenant which expressly and materially limits the freedom of the MedMen Entity to compete in any line of business, transfer or move any of its respective assets or operations or which adversely materially affects the business practices, operations or condition of the MedMen Entity.
	  
	  
	  

	  
	 (ll) 
	To the knowledge of the Corporation, the MedMen Entities are in material compliance with, in connection with the ownership, use, maintenance or operation of the property and assets thereof, all applicable federal, state, municipal or local laws, by-laws, regulations, orders, policies, permits, licenses, certificates or approvals having the force of law, in the United States or a foreign jurisdiction, relating to environmental, health or safety matters.
	  
	  
	  

	  
	 (mm) 
	A MedMen Entity that occupies the Leased Premises has the exclusive right to occupy and use the Leased Premises and each of the leases pursuant to which a MedMen Entity occupies the Leased Premises is in good standing and in full force and effect, other than as would not have a Material Adverse Effect. The performance of obligations pursuant to and in compliance with the terms of this Agreement and the completion of the transactions described herein will not afford any of the parties to such leases or any other Person the right to terminate such leases or result in any additional or more onerous obligations under such leases.
	  
	  
	  

	  
	 (nn) 
	Each MedMen Entity which has employees is in material compliance with the applicable laws regarding employment and employment practices, terms and conditions of employment, pay equity and wages.
	  
	  
	  

	  
	 (oo) 
	Except for the U.S. Cannabis Laws, the Corporation is not aware of any licensing or legislation, regulation, by-law or other lawful requirement of any Governmental Body having lawful jurisdiction over a MedMen Entity presently in force or any publicly disseminated or announced pending or contemplated change to any licensing or legislation, regulation, by-law or other lawful requirement of any Governmental Body having lawful jurisdiction over a MedMen Entity, that the Corporation anticipates a MedMen Entity will be unable to comply with in any material respect or which could reasonably be expected to have a Material Adverse Effect.

   
 	 
	C-7
	

	 

     
 	  
	 (pp) 
	The Corporation is in compliance in all material respects with its timely and continuous disclosure obligations under Canadian Securities Laws and without limiting the generality of the foregoing, there has been no material fact or material change relating to the Corporation which has not been publicly disclosed, the information and statements in the Public Record were true and correct in all material respects as of the respective dates of such information and statements and at the time such documents were filed on SEDAR and do not contain any misrepresentations (other than any information and statements which have been superseded and corrected by subsequent information and statements in the Public Record) and the Corporation has not filed any confidential material change reports which remain confidential as at the date hereof.
	  
	  
	  

	  
	 (qq) 
	The auditors who reported on and audited the applicable Corporation Financial Statements were independent with respect to the entities for which they provided such auditing services within the meaning of the rules of professional conduct applicable to auditors in Canada and the United States, as applicable, and the Corporation’s current auditors are independent with respect to the Corporation within the meaning of the rules of professional conduct applicable to auditors in Canada and there has never been a “reportable event” (within the meaning of applicable Canadian Securities Laws) with the current, or to the knowledge of the Corporation any predecessor, auditors of the Corporation or the LLC during the last three years.
	  
	  
	  

	  
	 (rr) 
	The Corporation is in compliance with the certification requirements contained in National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings with respect to the Corporation’s annual and interim filings with the securities commissions or securities regulatory authorities in the Reporting Jurisdictions since June 30, 2018.
	  
	  
	  

	  
	 (ss) 
	The sale of the Shares do not and will not, whether with or without the giving of notice or passage of time or both, result in a material violation, default or breach of, or conflict with, the terms or provisions of (i) the Constating Documents, (ii) any existing laws applicable to the Corporation, or (iii) any judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the MedMen Entities or any of their assets, properties or operations.
	  
	  
	  

	  
	 (tt) 
	The Corporation is as of the Closing Time a “foreign private issuer” as such term is defined in Rule 405 under the U.S. Securities Act.
	  
	  
	  

	  
	 (uu) 
	To the knowledge of the Corporation, none of the directors or officers of the Corporation are now, or have ever been, subject to an order or ruling of any securities regulatory authority or stock exchange prohibiting such individual from acting as a director or officer of a public company or of a company listed on a particular stock exchange.
	  
	  
	  

	  
	 (vv) 
	Other than the Corporation, there is no Person that is or will be entitled to demand any of the net proceeds of the Offering.

   
 	 
	C-8
	

	 

     
 SCHEDULE “D”
  
 MATERIAL SUBSIDIARIES
   
 	 MM CAN USA, Inc
	  
	  

	  
	  
	  

	 MM Enterprises USA, LLC
	  
	  

	  
	  
	  

	 MedMen NY, Inc.
	  
	  

	  
	  
	  

	 Future Transactions Holdings, LLC
	  
	  

	  
	  
	  

	 MME Florida, LLC
	  
	  

	  
	  
	  

	 MedMen Boston, LLC
	  
	  

	  
	  
	  

	 MMNV2 Holdings I, LLC
	  
	  

	  
	  
	  

	 MMNV2 Holding IV, LLC
	  
	  

	  
	  
	  

	 MME GNTX, LLC
	  
	  

	  
	  
	  

	 Desert Hot Springs Green Horizon, Inc.
	  
	  

	  
	  
	  

	 ICH California Holdings, Ltd.
	  
	  

	  
	  
	  

	 Advanced Patients' Collective
	  
	  

	  
	  
	  

	 MMOF Vegas Retail, Inc.
	  
	  

	  
	  
	  

	 PHSL, LLC
	  
	  

	  
	  
	  

	 MMOF San Diego Retail, Inc.
	  
	  

	  
	  
	  

	 ICH California Holdings Ltd.
	  
	  

	  
	  
	  

	 The Source Santa Ana
	  
	  

	  
	  
	  

	 The Compassion Network
	  
	  

	  
	  
	  

	 Viktoriya’s Medical Supplies LLC
	  
	  

	  
	  
	  

	 Sure Felt, LLC
	  
	  

	  
	  
	  

	 MME Pasadena Retail, Inc.
	  
	  

  
 	 
	D-1
	

	 

  
 	 Rochambeau, Inc.   MME CYON Retail, Inc.
	  
	  

	  
	  
	  

	 Desert Hot Springs Green Horizons, Inc.
	  
	  

	  
	  
	  

	 Omaha Management Services, LLC
	  
	  

	  
	  
	  

	 MME Retail Management, LLC
	  
	  

	  
	  
	  

	 CSI Solutions, LLC
	  
	  

	  
	  
	  

	 EBA Holdings, Inc.
	  
	  

	  
	  
	  

	 Kannaboost Technology, Inc.
	  
	  

	  
	  
	  

	 MME AZ Group, LLC
	  
	  

	  
	  
	  

	 MME AG Management, LLC
	  
	  

	  
	  
	  

	 MMOF Vegas Retail 2, Inc.
	  
	  

	  
	  
	  

	 MattnJeremy, Inc.
	  
	  

	  
	  
	  

	 PharmaCann Virginia, LLC
	  
	  

	  
	  
	  

	 MME Evanston Retail, LLC
	  
	  

	  
	  
	  

	 Milkman, LLC
	  
	  

	  
	  
	  

	 MMOF Fremont Retail, Inc.
	  
	  

  
 	 
	D-2
	

	 

  
 SCHEDULE “E”
  
 CONTACT INFORMATION – PROVINCIAL SECURITIES REGULATORY AUTHORITIES
   
 	 The contact information of the public official in the local jurisdiction who can answer questions about the security regulatory authority’s or regulator’s indirect collection of information is as follows:
	  
	 Nova Scotia Securities Commission
 Suite 400, 5251 Duke Street Duke Tower
 P.O. Box 458
 Halifax, Nova Scotia B3J 2P8
 Telephone: (902) 424-7768
 Facsimile: (902) 424-4625

	  
	  
	  

	 Alberta Securities Commission
 Suite 600, 250 – 5th Street SW
 Calgary, Alberta T2P 0R4
 Telephone: (403) 297-6454
 Toll free in Canada: 1-877-355-0585
 Facsimile: (403) 297-2082
	  
	 Ontario Securities Commission
 20 Queen Street West, 22nd Floor
 Toronto, Ontario M5H 3S8
 Telephone: (416) 593- 8314
 Toll free in Canada: 1-877-785-1555
 Facsimile: (416) 593-8122
 Email: exemptmarketfilings@osc.gov.on.ca
 Public official contact regarding indirect collection of
 information: Inquiries Officer

	  
	  
	  

	 British Columbia Securities Commission
 P.O. Box 10142, Pacific Centre
 701 West Georgia Street
 Vancouver, British Columbia V7Y 1L2
 Inquiries: (604) 899-6854
 Toll free in Canada: 1-800-373-6393
 Facsimile: (604) 899-6581
 Email: inquiries@bcsc.bc.ca
	  
	 Prince Edward Island Securities Office
 95 Rochford Street, 4th Floor Shaw Building
 P.O. Box 2000
 Charlottetown, Prince Edward Island C1A 7N8
 Telephone: (902) 368-4569
 Facsimile: (902) 368-5283

	  
	  
	  

	 The Manitoba Securities Commission
 500 – 400 St. Mary Avenue
 Winnipeg, Manitoba R3C 4K5
 Telephone: (204) 945-2548
 Toll free in Manitoba 1-800-655-5244
 Facsimile: (204) 945-0330 
	  
	 Autorité des marchés financiers
 800, Square Victoria, 22e étage
 C.P. 246, Tour de la Bourse
 Montréal, Québec H4Z 1G3
 Telephone: (514) 395-0337 or 1-877-525-0337
 Facsimile: (514) 873-6155 (For filing purposes only)
 Facsimile: (514) 864-6381 (For privacy requests only)
 Email: financementdessocietes@lautorite.qc.ca (For corporate finance issuers)
 fonds_dinvestissement@lautorite.qc.ca (For investment fund issuers)

	  
	  
	  

	 Financial and Consumer Services Commission (New Brunswick)
 85 Charlotte Street, Suite 300 Saint
 John, New Brunswick E2L 2J2
 Telephone: (506) 658-3060
 Toll free in Canada: 1-866-933-2222
 Facsimile: (506) 658-3059
 Email: info@fcnb.ca
	  
	 Financial and Consumer Affairs Authority of Saskatchewan
 Suite 601 - 1919 Saskatchewan Drive
 Regina, Saskatchewan S4P 4H2
 Telephone: (306) 787-5879
 Facsimile: (306) 787-5899

	  
	  
	  

	 Government of Newfoundland and Labrador Financial Services Regulation Division
 P.O. Box 8700
 Confederation Building
 2nd Floor, West Block
 Prince Philip Drive
 St. John’s, Newfoundland and Labrador A1B 4J6
 Attention: Director of Securities
 Telephone: (709) 729-4189
 Facsimile: (709) 729-6187
	  
	  

    
 	 
	 E-1mmen_ex1021.htm

EXHIBIT 10.21
  
 Execution Copy
  
 AMENDED AND RESTATED MEMBERSHIP INTEREST PURCHASE AGREEMENT
  
 by and between
  
 VERANO EVANSTON, LLC
  
 and
  
 MM ENTERPRISES USA, LLC
  
 in connection with the purchase of the membership interests
 of
  
 MME IL HOLDINGS, LLC
  
  
 Effective as of October 30, 2020
  
 	 
	
	

	 

  
 TABLE OF CONTENTS
  
 	 ARTICLE I. DEFINITIONS
	  
	 2
	  

	 1.1.
	 Certain Definitions.
	  
	 2
	  

	  
	  
	  
	  
	  

	 ARTICLE II. PURCHASE AND SALE OF MEMBERSHIP INTERESTS
	  
	 11
	  

	 2.1.
	 Purchase of Membership Interests
	  
	 11
	  

	  
	  
	  
	  
	  

	 ARTICLE III. PURCHASE PRICE; CONSIDERATION; CLOSING DELIVERABLES
	  
	 11
	  

	 3.1. 
	 Purchase Price and Consideration; Purchase Price Adjustment;
	  
	 11
	  

	 3.2. 
	 Working Capital Adjustments 
	  
	 12
	  

	 3.3. 
	 Closing Cash Adjustment. 
	  
	  14
	  

	 3.4. 
	 Supply Agreement.
	  
	  14
	  

	 3.5. 
	 Withholding Tax; Conveyance Tax
	  
	  14
	  

	 3.6. 
	 Consulting Closing Deliverables
	  
	  15
	  

	 3.7. 
	 Seller Deliverables
	  
	  15
	  

	 3.8. 
	 Purchaser Closing Deliverables
	  
	  16
	  

	  
	  
	  
	  
	  

	 ARTICLE IV. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER 
	  
	  16
	  

	 4.1. 
	 Ownership; Capitalization
	  
	  16
	  

	 4.2. 
	 No Conflicts
	  
	  17
	  

	 4.3. 
	 Authority
	  
	  17
	  

	 4.4. 
	 Organization and Standing
	  
	  17
	  

	 4.5. 
	 Financial Statements
	  
	  17
	  

	 4.6. 
	 Undisclosed Liabilities.
	  
	  18
	  

	 4.7. 
	 Schedules
	  
	  18
	  

	 4.8. 
	 No Defaults
	  
	  20
	  

	 4.9. 
	 Books and Records of the Targets
	  
	  20
	  

	 4.10. 
	 Taxes.
	  
	  
	  

	 4.11. 
	 Lawsuits, Proceedings, etc.
	  
	  22
	  

	 4.12. 
	 Compliance with Law
	  
	  23
	  

	 4.13. 
	 Changes
	  
	  23
	  

	 4.14. 
	 No Breaches, etc.
	  
	  23
	  

	 4.15. 
	 Condition of Assets
	  
	  23
	  

  
 	 
	-i-
	

	 

  
 TABLE OF CONTENTS
 (continued)
  
 	 4.16. 
	 No Liens or Encumbrances
	  
	  24
	  

	 4.17. 
	 Employees.
	  
	  24
	  

	 4.18. 
	 Benefit Plans
	  
	  24
	  

	 4.19. 
	 No Brokers or Finders
	  
	  25
	  

	 4.20. 
	 Corporate Authorizations
	  
	  25
	  

	 4.21. 
	 Bank Accounts.
	  
	  25
	  

	 4.22. 
	 Indebtedness; Payment Obligations
	  
	  26
	  

	 4.23. 
	 Representations and Warranties
	  
	  26
	  

	  
	  
	  
	  
	  

	 ARTICLE V. COVENANTS OF SELLER AND PURCHASER
	  
	  26
	  

	 5.1. 
	 Conduct of Business
	  
	  26
	  

	 5.2. 
	 Licensure of Each License Holder and Risk of Loss
	  
	  27
	  

	 5.3. 
	 Consents.
	  
	  27
	  

	 5.4. 
	 Seller Intellectual Property.
	  
	  27
	  

	 5.5. 
	 Purchase Option
	  
	  28
	  

	 5.6. 
	 Exclusivity
	  
	  28
	  

	 5.7. 
	 Release
	  
	  28
	  

	 5.8. 
	 Preserve Accuracy of Representations and Warranties; Notification of Certain Matters.
	  
	  28
	  

	 5.9. 
	 Illinois Approval.
	  
	  29
	  

	  
	  
	  
	  
	  

	 ARTICLE VI. COVENANTS OF PURCHASER AND SELLER ON TAX MATTERS
	  
	  29
	  

	 6.1. 
	 Tax Indemnification.
	  
	  29
	  

	 6.2. 
	 Preparation and Filing of Tax Returns
	  
	 30
	  

	 6.3. 
	 Amended Returns
	  
	  31
	  

	 6.4. 
	 Tax Refunds
	  
	  31
	  

	 6.5. 
	 Tax Contest.
	  
	  32
	  

	 6.6. 
	 Cooperation on Tax Matters
	  
	 33
	  

	 6.7. 
	 Tax Treatment
	  
	  33
	  

	 6.8. 
	 Termination of Tax Sharing Agreements.
	  
	  33
	  

  
 	 
	-ii-
	

	 

  
 TABLE OF CONTENTS
 (continued)
   
 	 ARTICLE VII. REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER
	  
	  33
	  

	 7.1. 
	 Organization and Standing
	  
	  33
	  

	 7.2. 
	 Authority
	  
	  33
	  

	 7.3. 
	 Qualification
	  
	  34
	  

	 7.4. 
	 Lawsuits, Proceedings, etc.
	  
	  34
	  

	 7.5. 
	 Compliance with Law.
	  
	  34
	  

	 7.6. 
	 No Conflicts; Consents
	  
	  34
	  

	 7.7. 
	 Investment Purpose
	  
	  34
	  

	 7.8. 
	 Availability of Funds.
	  
	  35
	  

	 7.9. 
	 Representations and Warranties.
	  
	  35
	  

	  
	  
	  
	  
	  

	 ARTICLE VIII. CLOSING
	  
	  35
	  

	 8.1. 
	 General Procedure
	  
	  35
	  

	 8.2. 
	 Time and Place
	  
	  35
	  

	 8.3. 
	 Intentionally Omitted.
	  
	  35
	  

	 8.4. 
	 Conditions to Obligation of Purchaser
	  
	  35
	  

	 8.5. 
	 Condition to Obligation of Seller
	  
	  37
	  

	 8.6. 
	 Specific Items to be Delivered at Each Closing
	  
	  37
	  

	  
	  
	  
	  
	  

	 ARTICLE IX. TERMINATION AND INDEMNIFICATION
	  
	  38
	  

	 9.1. 
	 Termination
	  
	  38
	  

	 9.2. 
	 Effect of Termination
	  
	  39
	  

	 9.3. 
	 Survival of Indemnification
	  
	  39
	  

	 9.4. 
	 Seller’s Indemnification
	  
	 40
	  

	 9.5. 
	 Purchaser’s Indemnification
	  
	  41
	  

	 9.6. 
	 Notification
	  
	  41
	  

	 9.7. 
	 Legal Proceeding; Direct Claim
	  
	  42
	  

	 9.8. 
	 Exclusive Remedy
	  
	  42
	  

	 9.9. 
	 Insurance
	  
	  43
	  

	 9.10. 
	 Limitations on Indemnification
	  
	  43
	  

	 9.11. 
	 Right of Set-off
	  
	  43
	  

	 9.12. 
	 Tax Treatment of Indemnification Payments
	  
	  43
	  

   
 	 
	-iii-
	

	 

  
 TABLE OF CONTENTS
 (continued)
   
 	 ARTICLE X. MISCELLANEOUS
	  
	  44
	  

	 10.1. 
	 Binding Effect
	  
	  44
	  

	 10.2. 
	 Governing Law
	  
	  44
	  

	 10.3. 
	 Dispute Resolution; Venue; Arbitration
	  
	  44
	  

	 10.4. 
	 Notices
	  
	  45
	  

	 10.5. 
	 Entire Agreement
	  
	  45
	  

	 10.6. 
	 Cooperation
	  
	  45
	  

	 10.7. 
	 Headings
	  
	  45
	  

	 10.8. 
	 Assignment
	  
	  46
	  

	 10.9. 
	 Third Party Beneficiaries
	  
	  46
	  

	 10.10. 
	 Expenses
	  
	  46
	  

	 10.11. 
	 Confidentiality
	  
	  46
	  

	 10.12. 
	 Severability
	  
	  46
	  

	 10.13. 
	 Interpretation
	  
	  47
	  

	 10.14. 
	 Counterparts
	  
	  47
	  

	 10.15.  
	 Specific Performance
	  
	  47
	  

    
 	 
	-iv-
	

	 

  
 List of Exhibits:
  
 	 A 
	Disclosure Schedules
	  
	  

	 B 
	Form of Consulting Agreement 
	  
	  

	 C 
	Supply Agreement
	  
	  

	 D 
	Form of Note and Pledge Agreement
	  
	  

	 E 
	Form of Assignment and Assumption Agreement 
	  
	  

	 F 
	Calculation of Working Capital

  
 	 
	 -v-

	

	 

  
 AMENDED AND RESTATED 
 MEMBERSHIP INTEREST PURCHASE AGREEMENT
  
 This AMENDED AND RESTATED MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”), is made and entered into as of October 30, 2020 (the “Effective Date”), by and between Verano Evanston, LLC, a Delaware limited liability company (“Purchaser”) and MM ENTERPRISES USA, LLC, a Delaware limited liability company (“Seller”). Purchaser and Seller are sometimes referred to in this Agreement, individually, as a “Party,” and collectively, as the “Parties.”
  
 RECITALS
  
 WHEREAS, the Parties entered into that certain Membership Interest Purchase Agreement (the “Initial Agreement”) dated as of July 1, 2020 (the “IAED”) to provide for, among other things, the sale, assignment, transfer and conveyance by Seller to Purchaser of one hundred percent (100%) of the outstanding membership interests in MME Evanston Retail, LLC, an Illinois limited liability company (the “Primary License SPE”);
  
 WHEREAS, the Primary License SPE holds a license to operate an Illinois Registered Medical Cannabis Dispensing Organization (medical credential number DISP.000009), Illinois Registered Adult Use Dispensing Organization (credential number AUDO.000020), and a Secondary-Site Early Approval Adult Use License (credential number AUDO.000068) (collectively, the “Licenses”) granted by the Illinois Department of Financial and Professional Regulation (the “IDFPR”) for the operation of a same-site medical and adult-use dispensary located at 1804 Maple Avenue, Evanston, Illinois 60201 and an adult-use dispensary located at 740 N. Route 59, Aurora, Illinois 60504 (the “Dispensaries”);
  
 WHEREAS, in accordance with Section 5.1 of the Initial Agreement, prior to the Effective Date Seller has (i) formed MME IL Holdings, LLC, a Delaware limited liability company and wholly owned subsidiary of Seller (the “Holding Company”), (ii) contributed one hundred percent (100%) of the membership interests of the Primary License SPE to the Holding Company; (iii) formed MME Aurora Retail, LLC, an Illinois limited liability company (the “Secondary License SPE” and, together with the Primary License SPE, the “License Holders” and, together with the Holding Company, each a “Target” and collectively, the “Targets”), which Secondary License SPE, pursuant to that certain Contribution Agreement, is one hundred percent (100%) owned by the Holding Company, filed an election to be taxed as a corporation for U.S. federal income tax purposes and which has applied for and received a Secondary-Site Early Approval Adult Use License granted under the registered adult use dispensing license of the Primary License SPE, and (iv) contributed one hundred percent (100%) of the membership interests of the Secondary License SPE to the Holding Company (the actions described in clauses (i)-(iv) hereinafter referred to collectively as the “Restructuring”); and
  
 WHEREAS, in connection with the Restructuring and accordance with Section 5.1 of the Initial Agreement, the Parties hereby desire to amend and restate the Initial Agreement in its entirety in order to, among other things, provide for the sale, assignment, transfer and conveyance by Seller to Purchaser of one hundred percent (100%) of the Membership Interests.
  
 	 
	-1-
	

	 

  
 NOW, THEREFORE, in consideration of the respective representations, warranties, covenants and commitments of Seller and Purchaser set forth herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Purchaser and Seller, by this Agreement, hereby amend and restate the Initial Agreement in its entirety and agree as follows:
  
 ARTICLE I.
 DEFINITIONS
  
 1.1. Certain Definitions. As used in this Agreement, the following terms shall have the following meanings:
  
 “$” or “dollar” means the lawful currency of the United States, unless otherwise stated.
  
 “Action” means (a) any action, charge, claim, complaint, inquiry, investigation, petition, suit, mediation, order, arbitration, hearing, or proceeding, whether civil or criminal, in Law or in equity by or before any Governmental Body or (b) any market conduct or financial examination report or other proceeding by a Governmental Body.
  
 “Adult Use Approvals” shall have the meaning as defined in Section 5.1(a).
  
 “Affiliate” of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; provided that, for the avoidance of doubt, Purchaser shall not be deemed an “Affiliate” of any Target by virtue solely of Purchaser’s execution and operation of Consulting Agreements with the License Holders.
  
 “Assets” mean, as applicable, all real and personal property and other assets owned or leased by the Targets and that are used in connection with the Business.
  
 “Balance Sheet” shall have the meaning as defined in Section 4.5.
  
 “Balance Sheet Date” shall have the meaning as defined in Section 4.5.
  
 “Benefit Plan” means each “employee benefit plan” within the meaning of Section 3(3) of ERISA and all other compensation and benefits plans, policies, programs, arrangements or payroll practices, including multiemployer plans within the meaning of Section 3(37) of ERISA, and each other stock purchase, stock option, restricted stock, severance, retention, employment, consulting, change-of-control, collective bargaining, bonus, incentive, deferred compensation, employee loan, fringe benefit, cafeteria and other benefit plan, agreement, program, policy, commitment or other arrangement, whether or not subject to ERISA (including any related funding mechanism now in effect or required in the future), whether formal or informal, oral or written, in each case, that is sponsored, maintained, contributed or required to be contributed to by any of the Targets or their respective ERISA Affiliates, or under which any of the Targets or any of their respective ERISA Affiliates has any current or potential Liability, in each case in respect of current or former employees, directors, contractors, consultants or other advisors of Seller and its subsidiaries (or any beneficiary or dependent thereof).
  
 	 
	-2-
	

	 

  
 “Books and Records of Account” mean all accounting records, including the financial statements, statements of accounts receivable and statements of accounts payable of the Targets.
  
 “Business” means the business of the License Holders, being, an Illinois Registered Medical Cannabis Dispensing Organization and/or an Illinois Registered Adult Use Dispensing Organization, as applicable, holding the Licenses.
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which banking institutions in Illinois are authorized or required by law or executive order to close.
  
 “Closing” shall have the meaning as defined in Section 8.1.
  
 “Closing Cash” shall have the meaning as defined in Section 3.1(a)(ii).
  
 “Closing Date” shall have the meaning as defined in Section 8.2.
  
 “Closing Statement” shall have the meaning as defined in Section 3.3(a).
  
 “Code” means the United States Internal Revenue Code of 1986, as amended.
  
 “Consulting Agreements” mean the separate consulting agreements to be entered into by and between Purchaser and each License Holder with respect to the operation of the Business of each License Holder, each substantially in the form attached to this Agreement as Exhibit B.
  
 “Consulting Agreement Effective Date” means the effective date of the Consulting Agreement with respect to the Primary License SPE.
  
 “Contract” means any written or oral contract, agreement, indenture, commitment, note, bond, loan, instrument, lease, conditional sale contract, mortgage, license, arrangement or other legally binding agreement or obligation.
  
 “Current Assets” means cash and cash equivalents, current inventory and prepaid expenses, but excluding (a) deferred Tax assets; and (b) receivables from any of the Targets’ Affiliates, directors, employees, officers or stockholders and any of their respective Affiliates, determined in accordance with IFRS applied using the same accounting methods, practices, principles, policies and procedures as historically applied, based on Seller’s balance sheet ended March 28, 2020 as previously provided to Purchaser.
  
 “Current Liabilities” means accounts payable and accrued expenses, but excluding payables to any of the Targets’ Affiliates, directors, employees, officers or stockholders and any of their respective Affiliates (which shall be forgiven or terminated prior to the Closing), deferred or accrued Tax liabilities and IAED Indebtedness, determined in accordance with IFRS applied using the same accounting methods, practices, principles, policies and procedures as historically applied, based on the Primary License SPE’s balance sheet ended March 28, 2020 as previously provided to Purchaser.
  
 	 
	-3-
	

	 

  
 “Disclosure Schedules” mean the Disclosure Schedules attached to the Initial Agreement and re-attached to this Agreement as Exhibit A.
  
 “Dispensaries” shall have the meaning as defined in the Recitals.
  
 “Disputed Amounts” shall have the meaning as defined in Section 3.2(d).
  
 “Encumbrance” means liens, mortgages, security interests, pledges, proxies, shareholder agreements, voting agreements or trusts, options, rights of first refusal, right of first option, right of first or last negotiation or refusal or similar restriction, including any restriction on use, voting (in the case of any security or equity interest), transfer, receipt of income or exercise of any other attribute of ownership, easements, mortgages, deeds of trust, rights-of-way, restrictions, encroachments, licenses, leases or any other encumbrances, claims, interests and other restrictions or limitations of any kind.
  
 “Enforceability Exceptions” means bankruptcy, insolvency, reorganization, fraudulent transfer, or moratorium.
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations thereunder.
  
 “ERISA Affiliate” means each entity, trade or business that is, or was at the relevant time, a member of a group described in Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes or included any of the Targets or any of their respective subsidiaries, or that is, or was at the relevant time, a member of the same “controlled group” as any of the Targets or any of its subsidiaries pursuant to Section 4001(a)(14) of ERISA.
  
 “Estimated Closing Statement” shall have the meaning as defined in Section 3.1(c).
  
 “Financial Statements” shall have the meaning as defined in Section 4.5.
  
 “First Installment” shall have the meaning as defined in Section 3.1(a).
  
 “Fundamental Representations” shall have the meaning as defined in Section 9.3.
  
 “Governmental Body” means any: (a) nation, state, county, city, town, village, district or other jurisdiction of any nature, (b) federal, state, provincial, local, municipal, foreign or other government, (c) governmental or quasi-Governmental Body of any nature (including any government agency, branch, department, official or entity and any court or other tribunal), (d) multi-national organization or body, or (e) body, regulatory or administrative authority, agency, bureau, department, board, panel or commission or any court, tribunal, or judicial or arbitral body or mediator or any other instrumentality of any kind of any of the foregoing exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature.
  
 “Governmental Order” means any Law, order, judgment, injunction, decree, stipulation or determination issued, promulgated or entered by or with any Governmental Body of competent jurisdiction, or by any arbitrator, in each case, whether preliminary or final.
  
 	 
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 “Holding Company” shall have the meaning as defined in the Recitals.
  
 “IAED” shall have the meaning as defined in the Recitals.
  
 “IAED Indebtedness” means the amount of Indebtedness of the Targets (as applicable) outstanding as of the IAED, excluding any Indebtedness under the Gotham Loan Documents to be released upon payment of the Closing Cash in accordance with Section 8.4(e) hereof.
  
 “IAED Working Capital” shall have the meaning as defined in Section 3.2(a).
  
 “IAED Working Capital Statement” shall have the meaning as defined in Section 3.2(a).
  
 “IDFPR” shall have the meaning as defined in the Recitals.
  
 “IFRS” means the International Financial Reporting Standards as in effect from time to time.
  
 “Illinois Approval” means the approval by the IDFPR and each other necessary state, local or municipal authority with respect to the change in the ownership of each of the License Holders and the deemed transfer of the Licenses and any other Permits necessary to operate the Dispensary in connection with the transactions contemplated by this Agreement.
  
 “Indebtedness” means, with respect to the Targets, at the time of any determination, without duplication: all obligations, contingent or otherwise, of the Targets, including the outstanding principal amount of, all accrued and unpaid interest on and other payment obligations (including any premiums, termination fees, expenses, breakage costs or penalties due upon prepayment of or payable in connection with this Agreement or the consummation of the transactions contemplated by this Agreement) in respect of, (a) all indebtedness of the Targets for borrowed money, which shall include borrowing agreements such as notes, bonds, indentures, mortgages, loans and lines of credit or similar instruments, (b) the guaranty, endorsement (other than for collection or deposit in the ordinary course of business), co-making or sale with recourse by a Person of the obligation of another Person, (c) all obligations (including breakage costs) payable by the Targets under interest rate or currency protection agreements, (d) any reimbursement obligation with respect to letters of credit (including standby letters of credit to the extent drawn upon), bankers’ acceptances, performance bonds or similar facilities issued for the account of the Targets, (e) all obligations arising from installment purchases of property or representing the deferred purchase price of property or services in respect of which the Targets are liable, contingently or otherwise, as obligor or otherwise, including any earnouts, seller notes, contingency payments or similar Liabilities relating to past acquisitions, (f) all obligations, whether or not assumed, secured by any Lien or payable out of the proceeds or product from any property or assets now or hereafter owned by the Targets, (g) all obligations under capital leases (as determined in accordance with IFRS), but excluding real estate leases that are capitalized in accordance with IFRS, (h) deferred compensation for services, (i) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by the Targets, and (j) any obligation of the type referred to in clauses (a) through (i) of this definition of another Person, the payment of which any of the Targets has guaranteed, or which is secured by any property or assets of such Person, or for which any of the Targets are responsible or liable, directly or indirectly, jointly or severally, as obligor, guarantor or otherwise.
  
 	 
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 “Independent Accountant” shall have the meaning as defined in Section 6.2(a).
  
 “Initial Agreement” shall have the meaning as defined in the Recitals.
  
 “IAED” shall have the meaning as defined in the Recitals.
  
 “Interim Indebtedness” means the amount of Indebtedness of the Targets incurred between the IAED and the Closing Date.
  
 “Knowledge of Purchaser” or “Purchaser’s Knowledge” means the actual knowledge of George Archos after due inquiry.
  
 “Knowledge of Seller” or “Seller’s Knowledge” means the actual knowledge of Tom Lynch and Tim Bossidy after due inquiry.
  
 “Law” means any law, statute, rule, regulation, ordinance and other pronouncement having the effect of laws of the United States of America, any foreign country or any domestic or foreign state, province, county, city or other political subdivision or of any Governmental Body. Notwithstanding the foregoing, the Parties acknowledge that, at the time of the execution of this Agreement and at any applicable time thereafter, the operation of the Targets may violate 21 U.S.C. § 811, et seq. (the “CSA”) or other federal law directly related thereto. Seller shall not be in breach of this Agreement (including, without limitation any of Seller’s representations and warranties contained herein) on the basis of a violation by any of the Targets of the CSA or other federal law directly related thereto and the term “Law” shall expressly exclude such laws.
  
 “Liabilities” means with respect to any Person, any and all debts, liabilities or obligations of such Person of any kind or nature whatsoever, whether asserted or unasserted, known or unknown, accrued or unaccrued, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise, and whether or not the same is required to be accrued on the financial statements of such Person, including those arising under any Law, Action or Governmental Order and those arising under any Contract, agreement, arrangement, commitment or undertaking.
  
 “Licenses” shall have the meaning as defined in the Recitals.
  
 “License Holders” shall have the meaning as defined in the Recitals.
  
 “Lien” shall have the meaning as defined in Section 4.10(i).
  
 “Loss” or “Losses” means any claims, judgments, settlements, damages, losses, Liabilities, costs and expenses (including, but not limited to, reasonable legal fees).
  
 	 
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 “Material Adverse Effect” means any event, occurrence, fact, condition or change that is or could be reasonably expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or assets of the Targets or the Business, or (b) the ability of Seller to consummate the transactions contemplated hereby; provided however that (x) “Material Adverse Effect” shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions generally affecting the industries in which the Business operates, including due to a pandemic or other natural disaster; (iii) any changes in financial or securities markets in general; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof; (v) any action required or permitted by this Agreement; (vi) any changes in applicable Laws or accounting rules, including IFRS; or (vii) the public announcement, pendency or completion of the transactions contemplated by this Agreement; and (y) any event, occurrence, fact, condition or change referred to in clauses (x)(i) through (iv) shall be taken into account in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the extent that such event, occurrence, fact, condition or change has a disproportionate effect on the Targets or the Business compared to other participants in the industries in which the Business operates.
  
 “Material Impact on the Licenses” means any event, occurrence, fact, condition or change that is or could be reasonably expected to become, individually or in the aggregate, materially adverse to the Licenses or the Adult Use Approvals, including, (a) the forfeiture, loss, revocation, suspension of any License, or any rights thereunder, or (b) the Adult Use Approvals being denied or the forfeiture, loss, revocation, suspension of any license or credential number issued in connection with obtaining the Adult Use Approvals.
  
 “MedMen Boston” shall have the meaning as defined in Section 5.5.
  
 “Membership Interests” means the outstanding membership interest units and all equity interests of the Holding Company.
  
 “Note and Pledge Agreement” shall have the meaning as defined in Section 3.1(a)(iii)).
  
 “Option Period” shall have the meaning as defined in Section 5.5.
  
 “Organizational Documents” means any certificate of formation, articles of incorporation, articles of organization, bylaws, operating agreement, partnership agreement, trust agreement, or similar formation or governing documents and instruments.
  
 “Party” and “Parties” shall have the meanings as defined in the Preamble to this Agreement.
  
 “Permit” means any permit, license (including the Licenses), franchise, approval, authorization and/or consents required to be obtained from any Governmental Body.
  
 “Permitted Encumbrances” means (a) Encumbrances for current Taxes, assessments and other government or statutory charges not yet due or payable or which are being contested in good faith by appropriate proceedings, and (b) Encumbrances created by applicable Law (including securities Laws) or by this Agreement or any Transaction Document.
  
 	 
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 “Person” means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, labor union, Governmental Body or other entity.
  
 “Post-Closing Adjustment” shall have the meaning as defined in Section 3.3(c).
  
 “Post-IAED Returns” shall have the meaning as defined in Section 6.2(b).
  
 “Post-IAED Tax Period” shall have the meaning as defined in Section 6.1(b).
  
 “Pre-IAED Returns” shall have the meaning as defined in Section 6.2(a).
  
 “Pre-IAED Tax Period” shall have the meaning as defined in Section 6.1(a).
  
 “Primary License SPE” shall have the meaning as defined in the Recitals.
  
 “Purchase Option” shall have the meaning as defined in Section 5.5.
  
 “Purchase Price” shall have the meaning as defined in Section 3.1.
  
 “Purchaser” shall have the meaning as defined in the Preamble to this Agreement.
  
 “Purchaser Indemnified Party” and “Purchaser Indemnified Parties” shall have the meaning as defined in Section 9.4.
  
 “Purchaser Indemnified Parties’ Losses” shall have the meaning as defined in Section 9.4.
  
 “Purchaser Tax Indemnified Persons” shall have the meaning as defined in Section 6.1(a).
  
 “Required Consents” means those consents that must be obtained by the Closing under Section 5.3.
  
 “Resolution Period” shall have the meaning as defined in Section 3.2(c).
  
 “Restructuring” shall have the meaning as defined in the Recitals.
  
 “Review Period” shall have the meaning as defined in Section 3.2(b).
  
 “Secondary License SPE” shall have the meaning as defined in the Recitals.
  
 “Seller” shall have the meaning as defined in the Preamble to this Agreement.
  
 “Seller Caused MAE or MIL” means the occurrence of a Material Adverse Effect or a Material Impact on the Licenses that occurs with respect to the Targets (i) prior to the Consulting Agreement Effective Date, or (ii) during the period commencing on the Consulting Agreement Effective Date and ending on the Closing Date that was directly or indirectly caused by (a) the action or inaction of Seller or any of Seller’s Affiliates or (b) a breach of this Agreement by Seller or its Affiliate; provided, however, that no Seller Caused MAE or MIL shall be deemed to have occurred with respect to any action or inaction of Seller or any of Seller’s Affiliates that was (1) directed by or consented to by Purchaser, or (2) required by the terms of this Agreement, or (3) was caused by or arose out of Purchaser failing to comply with Section 5.8(b); provided further that, with respect to this subsection (3) if Seller had Knowledge that the failure to take any action that would have been contained in any notice made by Purchaser in compliance to Section 5.8(b) would reasonably be expected to have or cause a Material Adverse Effect or a Material Impact on the Licenses, such action or inaction by Seller shall be deemed to not have been caused by or arise out of Purchaser’s failure to comply with Section 5.8(b).
  
 	 
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 “Seller Intellectual Property” means any right, title or interest in, including any license for the use of, any of Seller’s intellectual property or proprietary information, which shall include but not be limited to (i) any trademarks, service marks, trade names, brand names, logos, trade dress, design rights and other similar designations of source, sponsorship, association or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications and renewals for, any of the foregoing, including but not limited to “MM Enterprises USA, LLC” and “MedMen”; (ii) internet domain names, whether or not trademarks, registered in any top-level domain by any authorized private registrar or Governmental Body, web addresses, web pages, websites and related content, accounts with Twitter, Facebook and other social media companies and the content found thereon and related thereto, and URLs; (iii) works of authorship, expressions, designs and design registrations, whether or not copyrightable, including copyrights, author, performer, moral and neighboring rights, and all registrations, applications for registration and renewals of such copyrights; inventions, discoveries, trade secrets, business and technical information and know-how, databases, data collections and other confidential and proprietary information and all rights therein; (iv) patents (including all reissues, divisionals, provisionals, continuations and continuations-in-part, re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental Body-issued indicia of invention ownership (including inventor’s certificates, petty patents and patent utility models); (v) techniques and/or methods for operating and/or managing a licensed marijuana dispensary, production and/or growing facility; (vi) techniques and/or methods for growing marijuana; (vii) techniques and/or methods for training employees of a licensed marijuana dispensary and/or growing facility; (viii) business methods used in the operation or management of a licensed marijuana dispensary, production and/or growing facility; (ix) business plans and procedures used in the operation or management of a licensed marijuana dispensary, production and/or growing facility; (x) techniques and/or methods for marketing and/or branding, including but not limited to plans and materials, used in connection with the operation and management of a licensed marijuana dispensary, production and/or growing facility; Seller’s proprietary soil mix; (xi) techniques and/or methods for compiling and using statistical data and reports in connection with the operation and management of a licensed marijuana dispensary, production and/or growing facility; (xii) techniques and/or methods for compiling and using financial information in connection with the operation and management of a licensed marijuana dispensary, production and/or growing facility; (xiii) Seller’s proprietary computer software used in connection with or otherwise related to the operation and management of a licensed marijuana dispensary, production and/or growing facility; (xiv) techniques and/or methods for quality control and/or assurance plans, methods, and information used in connection with the operation and management of a licensed marijuana dispensary, production and/or growing facility; (xv) techniques and/or methods for the distribution of marijuana by a licensed marijuana dispensary, production and/or growing facility; (xvi) specifications and pricing for authorized merchandise, inventory, materials, supplies and equipment; and (xvii) all other information created or developed by and/or for Seller, in each case, excluding any intellectual property or proprietary information owned, created or licensed and used by Purchaser in satisfaction of its duties under the Consulting Agreements.
  
 	 
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 “Seller Tax Contest” shall have the meaning as defined in Section 6.5(b).
  
 “Seller Tax Indemnified Persons” shall have the meaning as defined in Section 6.1(b).
  
 “Statement of Objections” shall have the meaning as defined in Section 3.2(c).
  
 “Survival Date” shall have the meaning as defined in Section 9.3(b).
  
 “Supply Agreement” shall mean the supply agreement attached hereto as Exhibit C.
  
 “Target” and “Targets” shall have the meaning as defined in the Recitals.
  
 “Target Working Capital” means $0.
  
 “Tax” or “Taxes” shall have the meaning as defined in Section 4.10(ii).
  
 “Tax Contest” shall have the meaning as defined in Section 6.5(b).
  
 “Tax Return” shall have the meaning as defined in Section 4.10(iii).
  
 “Term Sheet” means that certain Term Sheet dated June 9, 2020 entered into between Purchaser and Seller.
  
 “Transaction Documents” means: (a) this Agreement, (b) the Consulting Agreements, (c) the Supply Agreement, and (d) each other agreement, instrument or document entered into or required to be delivered in connection with the transactions contemplated hereby and thereby.
  
 “Transaction Expenses” means all fees, costs and expenses incurred by or behalf of, or otherwise payable by the Targets (or incurred by or on behalf of, or otherwise payable by Seller) that have not been paid as of the Closing Date and that will become or remain a liability of the Targets (a) to third parties in connection with the consideration, preparation, documentation, execution and consummation of the transactions contemplated by this Agreement, or any alternative transactions, including fees and disbursements of Seller, attorneys, financial advisors, accountants and other advisors and service providers, and (b) in respect of any bonus, severance or other payment or other form of compensation or benefits that is created, accelerated, accrues or becomes payable by any of the Targets in connection with the consummation of the transactions contemplated by this Agreement, to any present or former manager, shareholder, member, employee, independent contractor or consultant thereof, including pursuant to any employment or consulting agreement, benefit plan or any other Contract, including any Taxes payable on or triggered by any such payment.
  
 “Unapproved Indebtedness” means Interim Indebtedness incurred without Purchaser’s approval as required by Section 4.4 hereof.
  
 	 
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 “Undisputed Amounts” shall have the meaning as defined in Section 3.2(d).
  
 “Working Capital” means (a) the Current Assets of the Targets, less (b) the Current Liabilities of the Targets, determined as of the close of business on the IAED calculated in accordance with Exhibit F attached hereto; for purposes of determining Working Capital of the Targets, if the Targets were not formed as of the IAED, the Working Capital for such Target shall be zero dollars ($0).
  
 “Working Capital Statement” shall have the meaning as defined in Section 3.1(b).
  
 ARTICLE II.
 PURCHASE AND SALE OF MEMBERSHIP INTERESTS
  
 2.1. Purchase of Membership Interests Upon the terms and subject to the conditions set forth in this Agreement, Seller hereby agrees to sell, assign, transfer and convey all of the Membership Interests in the Holding Company to Purchaser free and clear of any Encumbrances except Permitted Encumbrances, and Purchaser hereby agrees to purchase and acquire the Membership Interests from Seller, provided that the Parties acknowledge the sale will not include any Seller Intellectual Property. For the avoidance of doubt, the acquisition of the Membership Interests will result in Purchase indirectly acquiring all of the outstanding membership interest units and all equity interests of each License Holder free and clear of any Encumbrances except Permitted Encumbrances.
  
 ARTICLE III.
 PURCHASE PRICE; CONSIDERATION; CLOSING DELIVERABLES
  
 3.1. Purchase Price and Consideration; Purchase Price Adjustment; . Subject to any adjustments pursuant to Section 3.1(b) below, the aggregate consideration for the Membership Interests shall be Twenty Million Dollars (U.S. $20,000,000) (the “Purchase Price”), subject to adjustment as set forth in this Section 3.1, which shall be paid as follows:
  
 (i) Ten Million Dollars ($10,000,000.00) (the “First Installment”) in immediately available funds on or around the IAED to an account designated by Seller.
  
 (ii) Eight Million Dollars ($8,000,000.00) minus any IAED Indebtedness, minus, any Unapproved Indebtedness, minus the Transaction Expenses, minus the amount by which the IAED Working Capital is less than the Target Working Capital, if any, plus Thirty-One Thousand One Hundred Fifty-One Dollars ($31,151.00), which is the amount by which the IAED Working Capital exceeds the Target Working Capital (the “Closing Cash”) in immediately available funds shall be wired to an account designated by Seller on the earlier to occur of the Closing and November 16, 2020 (such date, the “Closing Cash Payment Date”); provided, that if the Closing Cash is paid prior to the Closing, (1) the additions and deductions applied to the Closing Cash pursuant to this Section 3.1(a)(ii) shall instead be applied to the principal amount of the Note and Pledge Agreement in Section 3.1(a)(iii) at the Closing and all references to the calculation of and adjustment to Closing Cash set forth in Sections 3.1(c), 3.3 and 3.5 shall be deemed to be references to the calculation of and adjustment to the principal amount of the Note and Pledge Agreement pursuant thereto and (2) at the request of Purchaser, Seller shall and shall cause the applicable Targets to revise the payments under the applicable Consulting Agreements to an amount acceptable to Purchaser (in its sole and absolute discretion).
  
 	 
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 (iii) Two Million Dollars ($2,000,000.00) payable on or before the three (3)- month anniversary of the earlier to occur of Closing or the Closing Cash Payment Date as evidenced by a secured promissory note and pledge agreement, substantially in the form attached hereto as Exhibit D (the “Note and Pledge Agreement”) to be executed by Purchaser and delivered to Seller on the earlier to occur of Closing or the Closing Cash Payment Date.
  
 (b) The Parties acknowledge and agree that on or prior to July 10, 2020, Seller prepared and delivered to Purchaser a statement setting forth the Working Capital calculated in accordance with Exhibit F, which statement contained a balance sheet of the Targets, as available, as of the IAED, a calculation of the IAED Indebtedness, and a calculation of the Working Capital as of the IAED (the “Working Capital Statement”), prepared in accordance with IFRS using the same accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the Primary License SPE’s balance sheet for the period ended March 28, 2020, as previously provided to Purchaser, as if such Working Capital Statement was being prepared and audited as of a fiscal year end.
  
 (c) At least three (3) days prior to the Closing Cash Payment Date, Seller shall prepare and deliver to Purchaser a statement containing (i) the IAED Working Capital set forth on the IAED Working Capital Statement approved and accepted as final by the Parties pursuant to Section 3.2(a), (ii) a calculation of any Unapproved Indebtedness, if any, (iii) a calculation of the Transaction Expenses and (iv) a calculation of the Closing Cash resulting therefrom (the “Estimated Closing Statement”). At the Closing, Purchaser shall pay Seller the Closing Cash set forth in the Estimated Closing Statement.
  
 3.2. Working Capital Adjustments
  
 (a) IAED Working Capital; IAED Indebtedness. The Parties acknowledge and agree that, within forty (40) days after the IAED, Purchaser prepared and delivered to Seller a statement setting forth its calculation of the IAED Indebtedness, and a calculation of Working Capital as of the IAED (the “IAED Working Capital”), which statement contained a consolidated balance sheet of the Targets (as applicable) as of the IAED (without giving effect to the transactions contemplated herein) (the “IAED Working Capital Statement”), prepared in accordance with IFRS using the same accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the Primary License SPE’s balance sheet for the period ended March 28, 2020 as if such IAED Working Capital Statement was being prepared and audited as of a fiscal year end, as was approved and accepted as final by the Parties.
  
 (b) Examination. After receipt of the IAED Working Capital Statement, Seller shall have thirty (30) days (the “Review Period”) to review the IAED Working Capital Statement. During the Review Period, Seller and an accountant designated by Seller shall have full access to the books and records of the Targets, the personnel of, and work papers prepared by, Purchaser and/or Purchaser’s accountants to the extent that they relate to the IAED Working Capital Statement and to such historical financial information (to the extent in Purchaser’s possession) relating to the IAED Working Capital Statement as Seller may reasonably request for the purpose of reviewing the IAED Working Capital Statement and to prepare a Statement of Objections (defined below), provided, that such access shall be in a manner that does not interfere with the normal business operations of Purchaser or the Targets.
  
 	 
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 (c) Objection. On or prior to the last day of the Review Period, Seller may object to the IAED Working Capital Statement by delivering to Purchaser a written statement setting forth Seller’s objections in reasonable detail, indicating each disputed item or amount and the basis for Seller’s disagreement therewith (the “Statement of Objections”). If Seller fails to deliver the Statement of Objections before the expiration of the Review Period, the IAED Indebtedness and the IAED Working Capital reflected in the IAED Working Capital Statement shall be deemed to have been accepted by Seller. If Seller delivers the Statement of Objections before the expiration of the Review Period, Purchaser and Seller shall negotiate in good faith to resolve such objections within thirty (30) days after the delivery of the Statement of Objections (the “Resolution Period”), and, if the same are so resolved within the Resolution Period, the IAED Working Capital Statement with such changes as may have been previously agreed in writing by Purchaser and Seller, shall be final and binding.
  
 (d) Resolution of Disputes. If Seller and Purchaser fail to reach an agreement with respect to all of the matters set forth in the Statement of Objections before expiration of the Resolution Period, then any amounts remaining in dispute (the “Disputed Amounts” and any amounts not so disputed, the “Undisputed Amounts”) shall be submitted for resolution to the Independent Accountant who, acting as experts and not arbitrators, shall resolve the Disputed Amounts only and make any adjustments to the IAED Working Capital Statement. The Parties agree that all adjustments shall be made without regard to materiality. The Independent Accountant shall only decide the Disputed Amounts and their decision for each Disputed Amount must be within the range of values assigned to each such item in the IAED Working Capital Statement and the Statement of Objections, respectively.
  
 (e) Fees of the Independent Accountant. The fees and expenses of the Independent Accountant shall be paid by Seller, on the one hand, and by Purchaser, on the other hand, based upon the percentage that the amount actually contested but not awarded to Seller or Purchaser, respectively, bears to the aggregate amount actually contested by Seller and Purchaser.
  
 (f) Determination by Independent Accountant. The Independent Accountant shall be directed to make a determination as soon as practicable within thirty (30) days (or such other time as the Parties shall agree in writing) after their engagement, and their resolution of the Disputed Amounts and their adjustments to the IAED Working Capital Statement shall be conclusive and binding upon the Parties hereto.
  
 	 
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 3.3. Closing Cash Adjustment.
  
 (a) Closing Statement. Within thirty (30) days after the Closing Date, Purchaser shall prepare and deliver to Seller a statement containing (i) a balance sheet of the Targets as of the Closing Date (without giving effect to the transactions contemplated herein), (ii) the IAED Working Capital as set forth on the IAED Working Capital Statement approved and accepted as final by the Parties pursuant to Section 3.2(a), (iii) its calculation of Unapproved Indebtedness, if any, (iv) the Transaction Expenses, and (v) the calculations of the Closing Cash and the Post- Closing Adjustment resulting therefrom (the “Closing Statement”), prepared in accordance with IFRS using the same accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the Primary License SPE’s balance sheet ended March 28, 2020, as previously provided to Purchaser, as if such Closing Statement was being prepared and audited as of a fiscal year end.
  
 (b) The Parties shall treat the Closing Statement as if it were the IAED Working Capital Statement under Section 3.2 for purposes of reviewing, objecting to and finalizing the Closing Statement and the calculations contained therein, including the Closing Cash and the Post-Closing Adjustment.
  
 (c) Post-Closing Adjustment. The post-closing adjustment shall be an amount equal to the difference between the Closing Cash (as finally determined pursuant to this Section 3.3) and the Closing Cash paid at the Closing (the “Post-Closing Adjustment”).
  
 (d) Payments of Post-Closing Adjustment. If the Closing Cash (as finally determined pursuant to this Section 3.3) is less than the Closing Cash paid at the Closing, then Seller shall promptly pay the Post-Closing Adjustment to Purchaser. If the Closing Cash (as finally determined pursuant to this Section 3.3) is more than the Closing Cash paid at the Closing, then Purchaser shall promptly pay Seller the Post-Closing Adjustment.
  
 (e) Adjustments for Tax Purposes. Any payments made pursuant to this Section 3.3 shall be treated as an adjustment to the Purchase Price by the Parties for tax purposes, unless otherwise required by law.
  
 3.4. Supply Agreement. Concurrently with the execution of the Initial Agreement, Seller and Purchaser entered into a Supply Agreement a copy of which is attached hereto as Exhibit C.
  
 3.5. Withholding Tax; Conveyance Tax. Purchaser shall be entitled to deduct and withhold from the Closing Cash such amounts that Purchaser is required to deduct and withhold under the Code or any provision of applicable Tax Law. To the extent that amounts are so deducted or withheld, such withheld or deducted amounts shall be treated for all purposes of this Agreement as having been paid to Seller. All transfer (including real estate transfer) documentary, sales, use, stamp, registration, and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement or the transactions contemplated hereby will be paid by Seller when due and Seller will, at its own expense, file all necessary Tax Returns and other documentation in a manner consistent with applicable Law, with respect to all such transfer, documentary, sales, use, stamp, registration and other Taxes and fees. In addition and notwithstanding any provision to the contrary in this Agreement, Seller will pay any liability for Taxes imposed on any Person under Section 201(o) of the Illinois Income Tax Act arising from the transactions contemplated by this Agreement and will indemnify Purchaser and its Affiliates and will hold them harmless from all liability, costs, or expenses incurred by the Targets or any of their respective Affiliates in respect of any such liability.
  
 	 
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 3.6. Consulting Closing Deliverables. Upon satisfaction of the following conditions:
  
 (i) receipt of any necessary approvals of Governmental Bodies, including the Illinois Approval,
  
 (ii) the addition of Purchaser’s officers and directors as “Principal Officers” of each of the Targets/License Holders if necessary/required, and
  
 (iii) satisfaction of any other steps required by applicable Law,
  
 Seller and Purchaser shall enter into the Consulting Agreements in respect of the operation of the Business substantially in the form attached hereto as Exhibit B, or in the event the Consulting Agreements have already been executed, the Consulting Agreements will become effective. The Consulting Agreements shall automatically terminate and be of no further force or effect without further action of any Person upon the Closing.
  
 3.7. Seller Deliverables. Seller shall deliver, or cause to be delivered, to Purchaser:
  
 (a) at the Closing an assignment and assumption agreement with respect to the Membership Interests to be sold to Purchaser executed by Seller or an Affiliate of Seller with authority to transfer such Membership Interests to Purchaser, in a form as attached to this Agreement as Exhibit E, with necessary modifications as agreed to by Seller and Purchaser, acting reasonably;
  
 (b) at the Closing Cash Payment Date the certificate referred to in Section 8.4(c) hereof;
  
 (c) at the Closing Cash Payment Date a good standing certificate (or equivalent document) for each Target from the Secretary of State of the jurisdiction of each such Target’s respective organization and by the Secretary of State of all other jurisdictions where each Target is qualified to do business as a foreign entity, in each case, dated within two (2) days prior to the applicable date;
  
 (d) certificates, dated as of the Closing Cash Payment Date, of the manager or managing member of each Target certifying that each such Target has previously made available to Purchaser a complete and correct copy of all its Organizational Documents, as amended to date, and that attached thereto is a complete and correct copy of resolutions adopted by the manager or managing member authorizing the execution, delivery and performance of any Transaction Documents and the consummation of the transactions contemplated thereunder, and that each such Target’s Organizational Documents, resolutions, approvals and consents have not been amended or modified in any respect and remain in full force and effect as of the applicable date; and
  
 (e) at the Closing Cash Payment Date (if applicable) and the Closing such other documents and instruments as may be required by this Agreement.
  
 	 
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 3.8. Purchaser Closing Deliverables. At the Closing or at the Closing Cash Payment Date (if applicable), Purchaser shall deliver, or cause to be delivered, to Seller:
  
 (a) The Closing Cash,
  
 (b) The fully executed Note and Pledge Agreement; and
  
 (c) such other documents and instruments as may be required by this Agreement.
  
 ARTICLE IV. 
 REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER
  
 As a material inducement to Purchaser to enter into this Agreement and the other Transaction Documents, and with the understanding that Purchaser will be relying thereon in consummating the purchase of the Membership Interest and the other transactions completed by the Transaction Documents, Seller hereby represents and warrants, (i) with respect to the Primary License SPE, as of the IAED, and (ii) with respect to the Holding Company and Secondary License SPE, the date hereof, and covenants to Purchaser as follows:
  
 4.1. Ownership; Capitalization. Seller is the record owner of, and has good and valid title to, the Membership Interests set forth opposite Seller’s name on Schedule 4.1 of the Disclosure Schedules, and such Membership Interests are free and clear of all Encumbrances except for Permitted Encumbrances. The Membership Interests constitute one hundred percent (100%) of the total issued and outstanding membership interests in the Holding Company. The Membership Interests have been duly authorized and validly issued, fully-paid and non-assessable, were issued in compliance with applicable Laws and were not issued in violation of the Organizational Documents of the Holding Company or any other agreement, arrangement, or commitment to which Seller or the Holding Company is a party and are not subject to or in violation of any preemptive or similar rights of any Person. The Holding Company is the record owner of, and has good and valid title to, one hundred percent (100%) of the membership interests of each License Holder free and clear of all Encumbrances except for Permitted Encumbrances. The membership interests of each License Holder held by the Holding Company constitute one hundred percent (100%) of the total issued and outstanding membership interests of each such License Holder. The membership interests of each License Holder have been duly authorized and validly issued, fully- paid and non-assessable, were issued in compliance with applicable Laws and were not issued in violation of the Organizational Documents of any such License Holder or any other agreement, arrangement, or commitment to which Seller, the Holding Company or such License Holder is a party and are not subject to or in violation of any preemptive or similar rights of any Person. At the Closing, Seller shall transfer to Purchaser, and Purchaser shall receive from Seller, good and valid title to all of the Membership Interests of the Holding Company, free and clear of all Encumbrances other than Permitted Encumbrances.
  
 (b) There are or will be no outstanding or authorized options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the membership interests in any Target or obligating any Target to issue or sell any membership interests (including the Membership Interests), or any other interest, in such Target other than pursuant to this Agreement. Other than this Agreement and the Organizational Documents of the Targets, there are no voting trusts, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the membership interests of any of the Targets.
  
 	 
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 4.2. No Conflicts. Except with respect to the transfer of the License and Seller’s notice obligations to its lenders, the execution, delivery and performance by Seller of this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with, or result in a violation or breach of, or default under, any provision of the Organizational Documents of Seller or any of the Targets; (b) conflict with, or result in a violation or breach of any provision of, any Law or Governmental Order applicable to Seller or any of the Targets; (c) require the consent of, notice to or other action by any Person under any contract to which Seller or any of the Targets are a party; (d) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any Contract to which Seller or any of the Targets are a party or by which Seller or any of the Targets (or any of their properties or assets) is bound; or (d) result in the creation of any Encumbrance on the Membership Interests or any properties or assets of any of the Targets. As of the Closing Date, Seller will have obtained consent to transfer ownership in the Licenses and no further consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Body will be required by or with respect to Seller or any of the Targets in connection with the consummation of the transactions contemplated by the Transaction Documents.
  
 4.3. Authority. This Agreement and the other Transaction Documents have been duly authorized by Seller and, when duly executed and delivered by Purchaser and Seller, shall constitute the legal, valid and binding obligations of Seller, and shall be enforceable against Seller in accordance with their terms, subject to the Enforceability Exceptions. The execution, delivery and performance of this Agreement and the other Transaction Documents by Seller has been duly authorized by proper member and manager action of Seller and is within its limited liability company powers.
  
 4.4. Organization and Standing. The (i) Holding Company is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to own or lease its Assets and to carry on its business as it is being conducted as of the Effective Date, (ii) the Primary License SPE is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Illinois and has all requisite power and authority to own or lease its Assets and to carry on its Business as it is being conducted as of the IAED and (iii) the Secondary License SPE is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Illinois and has all requisite power and authority to own or lease its Assets and to carry on its Business as it is being conducted as of the Effective Date.
  
 4.5. Financial Statements. Complete copies of the Primary License SPE’s unaudited quarterly financial statements consisting of the balance sheet of the Primary License SPE as of March 28, 2020, and the related statements of income and retained earnings for such period, (the “Financial Statements”) have been delivered to the Purchaser. The Financial Statements have been prepared in accordance with IFRS applied on a consistent basis throughout the periods involved. The Financial Statements are based on the books and records of the Primary License SPE, and fairly present in all material respects the financial condition of the Primary License SPE as of the respective dates they were prepared and the results of the operations of the Primary License SPE for the periods indicated. The balance sheet of the Primary License SPE as of March 28, 2020 is referred to herein as the “Balance Sheet” and the date thereof as the “Balance Sheet Date”.
  
 	 
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 4.6. Undisclosed Liabilities. No Target has any Liabilities, except: (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date, (b) those which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date and which are not, individually or in the aggregate, material in amount..
  
 4.7. Schedules. Each of the following schedules set forth on the Disclosure Schedules is attached to this Agreement, and the information contained therein is true and correct as of (i) with respect to the Primary License SPE, as of the IAED, and (ii) with respect to the Holding Company and Secondary License SPE, the Effective Date:
  
 	 Schedule 4.7(a): 
	 Tangible Assets/Equipment. This schedule sets forth a description of all equipment, machinery, furniture, fixtures, furnishings, leasehold improvements, inventory and other similar property that are owned or that are being used by each of the Targets in connection with the Business. 

	  
	  

	 Schedule 4.7(b): 
	 Real Property. This schedule lists any parcel of real property owned, leased or used by each of the Targets. 

	  
	  

	 Schedule 4.7(c): 
	 Leases for Real Property. This schedule lists and describes any lease for real property, whether written or oral, to which any of Targets are a party or claims or holds an interest in real property owned by another Person. Each License Holder has a valid lease, in full force and effect, and is entitled to the full benefit and advantage of each parcel of real property listed. With respect to each lease and sublease for each property listed on Schedule 4.7(c): (i) each lease or sublease is legal, valid, binding, enforceable and in full force and effect, and shall continue to be legal, valid, binding, enforceable and in full force and effect on identical terms immediately following the consummation of the transactions contemplated hereby; (ii) no License Holder, and to Seller’s Knowledge, no other party to any lease or sublease is in breach of or default under any such lease or sublease, and no event has occurred which, with notice or lapse of time, would constitute a breach of or default under, or permit termination, modification, or acceleration thereunder; (iii) no License Holder has assigned, transferred, conveyed, mortgaged, deeded in trust or encumbered any interest in any leasehold or subleasehold; (iv) the applicable License Holder has not subleased, licensed or otherwise granted any Person the right to use or occupy any leased or subleased real property or any material portion thereof; (v) no License Holder’s possession and quiet enjoyment of the leased real property under any lease or sublease has been disturbed, and to Seller’s Knowledge, there are no disputes with respect to any lease or sublease, (vi) no security deposit or portion thereof deposited with respect to any lease or sublease has been applied in respect of a breach or default under any such lease or sublease which has not been re-deposited in full, and (vii) to Seller’s Knowledge, all facilities leased or subleased thereunder have received all material approvals of Governmental Entities (including licenses and permits) required in connection with the operation thereof and have been operated and maintained in all material respects in accordance with applicable Laws, rules and regulations. 

    
 	 
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 	 Schedule 4.7(d): 
	 Leases for Personal Property. This schedule lists and describes any lease for personal property, whether written or oral, to which any of the Targets are a party.

	  
	  

	 Schedule 4.7(e):
	 Contracts/Agreements. This schedule lists any Contract, to which any of the Targets are a party, to the extent such agreements are not set forth in other schedules.

	  
	  

	 Schedule 4.7(f):
	 Permits and Licenses. This schedule lists all federal, state or local Permits, licenses, exemptions, easements, use permits, variances and other approvals and authorizations which are necessary to conduct the Business as conducted as of the time of delivery of such Disclosure Schedules, and sets forth the issuing agency, the expiration thereof and indicates which of such Permits, licenses and approvals are not current or currently held by each applicable Target. Each such Permit held by each such applicable Target is valid and in full force and effect and has not been revoked, suspended, cancelled, rescinded, terminated, modified and has not expired. There are no pending or, to Seller’s Knowledge, threatened Actions by or before any Governmental Body to revoke, suspend, cancel, rescind, terminate and/or materially adversely modify any such Permit. None of the Permits will be impaired or terminated or become terminable as a result of the transaction contemplated hereby.

	  
	  

	 Schedule 4.7(g): 
	 Long-Term Debt. This schedule lists any long-term Indebtedness of any of the Targets (to be satisfied prior to or at the Closing).

  
 True and correct copies of all documents listed in any preceding schedule have been or will be made available to Purchaser prior to the Effective Date.
  
 	 
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 4.8. No Defaults. With respect to each Contract listed on the schedules of the Disclosure Schedules referred to in Section 4.8, (i) no such Contract has been breached in any material respect or canceled by any of the Targets, or to Seller’s Knowledge, by any other party thereto, and Sellers do not have any Knowledge of any anticipated breach by any party to any such Contract; (ii) Seller and the each Target has performed in all material respects all of the obligations required to be performed by it under each of such Contracts and none of them has received any claim, whether written or oral, that it has breached any of the terms or conditions of any such Contract; (iii) no party to any such Contract (including but not limited to Seller any of the Targets, where applicable) has given notice thereunder of its intent to terminate, cancel, or renegotiate such Contract, nor have the parties to any such Contract otherwise initiated any termination, cancelation, or renegotiation thereof; (iv) to Seller’s Knowledge, no party has repudiated or attempted to repudiate any provisions of any such Contract and Seller has no Knowledge of any party’s intention to so repudiate any such Contract; (v) no event has occurred which with the passage of time or the giving of notice or both would result in a breach or default under any such Contract by any of the Targets or, to Seller’s Knowledge, by any other party to any Material Contract; and (vi) each such Contract (y) is in full force and effect and is legal, valid, binding and enforceable against the applicable Target in all respects, subject to the Enforceability Exceptions, and (z) will be in full force and effect and legal, valid, binding and enforceable immediately following the consummation of the transactions contemplated by this Agreement, and the transfer thereof will not give any Person a right of termination or acceleration or right to make a material modification with respect to such Contract.
  
 4.9. Books and Records of the Targets. As of the Consulting Agreement Effective Date, the Books and Records of Account of the License Holders were complete and accurate in all respects.TaxesFor purposes of this Agreement, the following terms shall have the following meanings:
  
 (i) “Lien” means any mortgage, pledge, lien, encumbrance, charge or other security interest.
  
 (ii) “Tax” or “Taxes” means all taxes, charges, fees, levies or other assessments, including, without limitation, all net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, withholding, payroll, employment, social security, unemployment, excise, estimated, severance, stamp, occupation, property or other taxes, customs duties, fees, assessment or charges of any kind whatsoever, including, without limitation, all interest and penalties thereon, and additions to tax or additional amounts, in each case that are imposed by any taxing authority upon any of the Targets.
  
 (iii) “Tax Return” means any return, declaration, report, claim for refund or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
  
 (a) All Tax Returns required to be filed by any of the Targets (as applicable) have been timely filed, including applicable extensions, and each Target (as applicable) has timely filed all Tax Returns that are required to be filed on or before the IAED. All such Tax Returns were correct and complete in all material respects and were prepared in compliance with all applicable Laws. All Taxes owed by any of the Targets (as applicable) (whether or not shown or required to be shown on any Tax Return) as of the IAED have been paid or will be timely paid. No written claim has been made by a taxing authority in a jurisdiction where any of the Targets do not file Tax Returns that any such Target is subject to taxation by that jurisdiction. There are no Liens or Encumbrances (other than Permitted Encumbrances) on any of the Assets that arose in connection with any failure (or alleged failure) to pay any Tax. None of the Targets have nexus or are required to file Tax Returns in a jurisdiction where such Target does not file Tax Returns, whether or not such Target has a physical presence in such jurisdiction (including any jurisdiction that may subject such Target to taxation in accordance with South Dakota v. Wayfair, Inc., 86 U.S.L.W 4452 (2018).
  
 	 
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 (b) Each of the Targets, as applicable, have withheld or will withhold and have paid or will pay all Taxes required to be withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, unit holder, service provider, or other third party, and all Forms W-2 and 1099 required with respect thereto have been or will be properly completed and timely filed and complied with all information reporting and backup withholding provisions of applicable law.
  
 (c) The (i) Primary License SPE has been classified as an association taxable as a corporation at all times since December 20, 2019, (ii) the Secondary License SPE has been classified as an association taxable as a corporation at all times during its existence, and the Holding Company has been classified as a disregarded entity at all times during its existence for U.S. federal and applicable state income tax purposes.
  
 (d) Each of the Targets, as applicable, have timely and properly collected all sales, use, value-added and similar Taxes required to be collected, and has remitted on a timely basis such amounts to the appropriate tax authority. Each of the Targets, as applicable, have timely requested, received and retained all necessary exemption certificates and other documentation supporting any claimed exemption or waiver of Taxes on sales or similar transactions as to which it would otherwise have been obligated to collect or withhold Taxes.
  
 (e) There is no dispute, claim, or notice concerning any Tax liability (or potential Tax Liability) of any of the Targets either (i) claimed or raised by any taxing authority in writing; or (ii) based upon personal contact by Seller or directors, managers or officers (and employees responsible for Tax matters) of any of the Targets with any agent of such taxing authority. Schedule 4.10(c) of the Disclosure Schedules when delivered shall list all federal, state, local and non-U.S. income Tax Returns filed with respect to each of the Targets, as applicable, for all taxable periods ended on or after their respective dates of formation, and indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of audit.
  
 (f) None of the Targets have waived or will waive any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. Except as disclosed on Schedule 4.10(d) of the Disclosure Schedules, none of the Targets have applied for a ruling relating to Taxes from any Governmental Body, nor entered into any closing agreement relating to Taxes with any Governmental Body.
  
 (g) None of the Targets are a party to, or bound by, any Tax allocation or sharing agreement.
  
 	 
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 (h) None of the Targets have been members of an affiliated, combined, consolidated or unitary Tax group for Tax purposes. None of the Targets have any Liability for Taxes of any entity or Person under Treasury Regulations § 1.1502-6 (or any similar provision of state, local or non-U.S. law), as a transferee or successor by agreement or by contract or otherwise. None of the Targets have any liability for the Taxes of any other Person as a result of any Tax allocation, Tax sharing or similar agreement.
  
 (i) None of the Targets will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any “closing agreement” (as described in Code Section 7121 or any corresponding provision of state, local or non-U.S. Tax law) entered into before the Closing Date. None of the Targets have ever been a party to any “reportable transaction” as defined in Code Section 6707A(c)(1).
  
 (j) None of the Targets will be required to include any item of income in, or exclude any item or deduction from, taxable income for taxable period or portion thereof ending after the IAED as a result of: (i) any change in a method of accounting under Section 481 of the Code (or any comparable provision of state, local or foreign Tax Laws), or use of an improper method of accounting, for a taxable period ending on or prior to the IAED; (ii) an installment sale or open transaction occurring on or prior to the IAED; (iii) a prepaid amount received on or before the IAED; (iv) interest held by any of the Targets in a “controlled foreign corporation” (as that term is defined in Section 957 of the Code) on or before the IAED pursuant to Section 951 of the Code; (v) any closing agreement under Section 7121 of the Code, or similar provision of state, local or foreign law; (vi) intercompany transactions occurring prior to the IAED or any excess loss account in existence prior to the IAED described in Treasury Regulations under Code Section 1502 (or any corresponding or similar provision of state, local or foreign income Tax law); (vii) the completed contract method of accounting or the long-term contract method of accounting, or any comparable provision of state or local, domestic or foreign, Tax law; or (viii) any election under Section 108(i) of the Code.
  
 (k) None of the Targets have been a “distributing corporation” or a “controlled corporation” in connection with a distribution described in Section 355 of the Code.
  
 (l) None of the Targets are, nor have they ever been, a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period specified in Section 897(c)(1)(a) of the Code.
  
 (m) Seller and each Target has consulted with its own tax advisors to the extent it deems advisable and has reviewed with its own tax advisors the federal, state, local and non-U.S. Tax consequences of the transactions contemplated by this Agreement. Seller and each Target has relied solely on such advisors and not on any statements or representations of Purchaser, Purchaser’s counsel or any of Purchaser’s agents.
  
 4.11. Lawsuits, Proceedings, etc. As of the IAED, there is no Action or proceeding pending or, to the Knowledge of Seller, threatened against any of the Targets. None of the Targets are subject to any Governmental Order, and there is no Governmental Order pending or, to Seller’s Knowledge, threatened against any of the Targets.
  
 	 
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 4.12. Compliance with Law. Except as otherwise disclosed on Schedule 4.12 of the Disclosure Schedules, each License Holder complied and remained in compliance through the Consulting Agreement Effective Date, with (including, without limitation, in connection with this Agreement, the other Transaction Documents and the transactions contemplated hereunder and thereunder) all federal (except as otherwise excluded in the definition of Laws), state and municipal Laws applicable to its Business, properties and Assets. no claim was made by any Governmental Body to the effect that the Business conducted or any asset owned or used by any of the License Holders failed to comply, in any respect, with any Law or Governmental Order.
  
 4.13. Changes. From (i) with respect to the Primary License SPE, the date of the IAED and (ii) with respect to the Secondary License SPE, the Effective Date to the Consulting Agreement Effective Date, other than in connection with the formation of the Secondary License SPE or as otherwise disclosed on Schedule 4.13 of the Disclosure Schedules, each of the Targets, as applicable, have operated the Business only in the ordinary course of business consistent with past practice and have not, as applicable, (a) changed any of the authorized membership interests of any of the Targets (as applicable), or issued, sold, bought, redeemed or issued any rights to subscribe to or warrants to purchase or entered into any agreements, commitments or obligations to issue, sell, buy or redeem any of the membership interests of any of the Targets (as applicable); (b) incurred any obligation or Liability, other than in the ordinary course of business; (c) discharged or satisfied any Lien or Encumbrance or paid any obligation or Liability, other than current Liabilities incurred in the ordinary course of business; (d) mortgaged, pledged or subjected to lien, charge or other encumbrance any asset, other than the lien of current or real property Taxes not yet due and payable; (e) waived any rights of substantial value, whether or not in the ordinary course of business; (f) suffered any material damage, destruction or loss, whether or not covered by insurance, affecting its Assets or its Business; (g) made any amendment or termination of any contract or any agreement which would result or is likely to result in a Material Adverse Effect; (h) increased the salaries or other compensation of any of its directors or officers or made any increase in other benefits to which such directors or officers may be entitled other than in the ordinary course of business; (i) sold, assigned, transferred or otherwise disposed of any of its Assets or canceled any debts or claims (other than any that may be canceled pursuant to this Agreement), other than in the ordinary course of business; (j) declared or made any distribution or payments to any of its members, managers, directors, officers or employees, other than wages, salaries and employee benefits paid or made available to employees in the ordinary course of business; or (k) entered into any transactions not in the ordinary course of business.
  
 4.14. No Breaches, etc. None of the Targets are, nor has any third party asserted that any of the Targets are, in violation of, and the execution, delivery and performance of this Agreement, the other Transaction Documents and/or the consummation of the transactions contemplated hereby or thereby do not and will not result in any material breach, or acceleration of, any of the terms or conditions of: (a) any mortgage, agreement, contract, license or other instrument or obligation to which any of the Targets is a party; or (b) any Law or order of any court or other Governmental Body, in a proceeding in which any of the Targets is bound or to which any of such Targets’ Assets or the Membership Interests, as applicable, are subject.
  
 4.15. Condition of Assets. There are no material defects in the Assets or the fitness of the Assets for their intended purpose. Such Assets comprise all of the assets, properties and rights used in or necessary to the conduct of the Business and are adequate and sufficient to conduct the Business.
  
 	 
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 4.16. No Liens or Encumbrances. Except as set forth on Schedule 4.16 of the Disclosure Schedules, each of the Targets, as applicable, have good and marketable title to all of their respective Assets, free and clear of any Encumbrances other than Permitted Encumbrances.
  
 4.17. Employees.
  
 (a) Attached as Schedule 4.17 of the Disclosure Schedules is a list of each employee of each of the Targets and the position, title and date of employment of each employee.
  
 (b) To the extent applicable, each of the Targets have been and are in compliance with, in all material respects, all then applicable Laws relating to labor, employment, termination of employment, hiring, discrimination in employment, terms and conditions of employment, immigration matters, workers’ compensation, wages, hours, occupational safety and health and fair employment practices.
  
 (c) None of the Targets have been the subject of or a party to any judgment, order, decision, finding, consent decree or settlement agreement involving employees or employment policies, practices or procedures since its date of formation.
  
 (d) None of the Targets are liable for any payment to any trust or other fund or to any Governmental Body with respect to unemployment compensation benefits, social security or other benefits or obligations for employees (other than routine payments to be made in the ordinary course of business consistent with past practices).
  
 (e) None of the Targets have any material Liability regarding the misclassification of any consultant or subcontractor as a consultant or subcontractor and not an employee.
  
 (f) There are no established severance pay practices or policies with respect to the employees listed on Schedule 4.17. No employee listed on Schedule 4.17 is entitled to any severance pay or acceleration of payment or vesting of any equity interest or other payment from Purchaser or any of its Affiliates as a result of or in connection with the transactions contemplated by this Agreement or any Transaction Document.
  
 4.18. Benefit Plans.
  
 (a) Except as set forth on Schedule 4.18 of the Disclosure Schedules, none of the Targets, as applicable, operate, administer or maintain, nor have any of the Targets contributed to or have any obligation to contribute to any Benefit Plans. With respect to this Section 4.18, the term “Target” or, as the context requires, “Targets” includes any ERISA Affiliate of the Targets.
  
 (b) With respect to each Benefit Plan, there are no funded benefit obligations for which contributions have not been made, and all monies withheld for employee paychecks with respect to Benefit Plans have been transferred to the appropriate Benefit Plan within the time required under applicable Law.
  
 	 
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 (c) Each Benefit Plan has been maintained, operated and administered at all times in compliance with its terms and applicable Laws, including ERISA and the Code in all material respects. No event has occurred, nor do any circumstances exists, that could reasonably be expected to give rise to any material Liability or civil penalty under any Laws with respect to any Benefit Plan. All contributions and other payments required to be made to each Benefit Plan under the terms of that Benefit Plan, ERISA, the Code or any other applicable Law have been timely made and all contributions made have been fully deductible under the Code.
  
 (d) Neither the execution and delivery of this Agreement or any Ancillary Agreement, nor the consummation of the transactions contemplated hereby could, either alone or in combination with another event, (i) entitle any individual to any severance pay, unemployment compensation, forgiveness of indebtedness or other benefits or compensation; (ii) accelerate the time of payment or vesting, funding, or increase the amount of any compensation due, or in respect of, any individual; (iii) result in or satisfy a condition to the payment of compensation that would, in combination with any other payment, result in an “excess parachute payment” within the meaning of Section 280G of the Code or that would not be deductible under Section 162 or 404 of the Code; or (iv) directly or indirectly cause any of the Targets to transfer or set aside any assets to fund any material benefits under any Benefit Plan. None of the Targets have any obligation to indemnify, hold harmless or gross-up any individual with respect to any excise tax imposed under Sections 4999 or 409A of the Code and each Benefit Plan has been maintained, operated and administered in operational and documentary compliance with Section 409A of the Code.
  
 (e) None of the Targets nor any ERISA Affiliates maintain, maintained or contributed to within the past five (5) years, any multiemployer plan, within the meaning of Section 3(37) or 4001(a)(3) of ERISA. None of the Targets nor an ERISA Affiliates currently have any Liability to make withdrawal Liability payments to any multiemployer plan.
  
 (f) Each Benefit Plan can be amended, suspended or terminated at any time without the consent of any employees, participants, service providers, or insurance companies and without resulting in any Liability to Purchaser or its Affiliates for any additional contributions, penalties, premiums, fees, fines, excise taxes or any other charges or Liabilities.
  
 4.19. No Brokers or Finders. None of Targets have any direct or indirect Liability for any commission, fee or other compensation owed to a finder or broker in connection with the transactions contemplated by this Agreement.
  
 4.20. Corporate Authorizations. To the extent necessary, the execution, delivery and performance of this Agreement by Seller and each Target has been duly authorized by proper member and manager action of Seller and each Target and is within Seller’s or each such Target’s, as applicable, limited liability company powers.
  
 4.21. Bank Accounts. Set forth in Schedule 4.21 of the Disclosure Schedule is a complete and correct list of all banks or other financial institutions with which each of the Targets have an account, showing the type and account number of each such account, and the names of the persons authorized as signatories thereon or to act or deal in connection therewith.
  
 	 
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 4.22. Indebtedness; Payment Obligations. Set forth in Schedule 4.22 of the Disclosure Schedule is an accurate and complete summary of all Indebtedness and payment obligations of each of the Targets, as applicable, to any Person as of the IAED. No Interim Indebtedness was incurred by Seller on behalf of any of the Targets (as applicable) from the IAED to the Consulting Agreement Effective Date.
  
 4.23. Representations and Warranties. The representations and warranties contained in Sections 4.1 through 4.234.23 of this Agreement shall be true with respect to Seller and each Target (to the extent such representations and warranties are stated to apply to each such party), as applicable, on and as of the Consulting Agreement Effective Date with the same force and effect as though such representations and warranties had been made on and as of such date. Such representations and warranties have been made by Seller with the knowledge and expectation that Purchaser is relying thereon, and such representations and warranties shall survive the Closing and, subject to the provisions of Article IX, shall remain operative in full force and effect until the expiration of liability under Section Error! Reference source not found..
  
 ARTICLE V.
 COVENANTS OF SELLER AND PURCHASER
  
 5.1. Conduct of Business.
  
 (a) From the IAED until the Closing, Seller shall not cause or allow any of the Targets to make any distributions, without the prior written consent of Purchaser. From the IAED until the Closing, at Purchaser’s sole cost and expense and at Purchaser’s direction, Seller shall use commercially reasonable efforts to cause the Secondary License SPE to open a second dispensary under the License, including submission of all necessary documents and information (the “Adult Use Approvals”). Each Party shall cooperate fully with the other Party and its Affiliates in promptly seeking to obtain the Adult Use Approvals. Notwithstanding the foregoing, the Parties shall not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of the Adult Use Approvals.
  
 (b) From the IAED and through the Closing Date, Seller shall and shall cause each of the Targets to (a) provide Purchaser with access to any available information reasonably requested by Purchaser relating to the Licenses and operation of the Business, including, without limitation, copies of all License applications and correspondence with Governmental Bodies, (b) afford the officers, employees and representatives of Purchaser (including independent public accountants and attorneys) reasonable access to and the right to inspect all of the properties, assets, premises, books and records, Contracts and other documents and data related to each of the Targets; (c) furnish Purchaser and its representatives with such financial, operating and other data and information related to each of the Targets as Purchaser or any of its representatives may reasonably request; and (d) instruct the representatives of each of the Targets to cooperate with Purchaser in its investigation of any of the Targets; provided that any License applications provided pursuant to this Section 5.1 shall be held strictly confidential and the intellectual property contained therein shall remain the sole property of Seller.
  
 	 
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 5.2. Licensure of Each License Holder and Risk of Loss. From the IAED, Seller will take all commercially reasonable steps to maintain all Permits and for each of the Targets to operate the Business as of such commencement time, including, without limitation, each License. Subject to the indemnification provisions set forth in Article IX, the risk of loss and the cost and expense of the conduct of each of the Targets remained with Seller until the Consulting Agreement Effective Date, at which time all operational control and risk of loss (including without limitation payroll costs and expenses of each of the Targets payable to MME IL Group LLC and incurred on or after the Consulting Agreement Effective Date solely with respect to the employees of MME IL Group LLC that are (and solely to the extent) employed in the operation of the Business) automatically shifted to Purchaser (except for any loss that is caused by Seller or its Affiliates (i) effecting the Restructuring, (ii) taking any action prior to the Closing that is not directed or approved by Purchaser or required by the terms of this Agreement or (iii) failing to take any action prior to the Closing that is requested by Purchaser or required of Seller pursuant to this Agreement) and Seller has no further obligation to fund any of the Targets after the Consulting Agreement Effective Date, until and if this Agreement is terminated pursuant to Section 9.2.
  
 5.3. Consents. From the IAED, Seller shall use commercially reasonable efforts to obtain the consents, transfers or approvals required for any Permit, lease, contract or access right that are mandated by the transactions contemplated by this Agreement on timing mutually agreed to by the Parties, and Purchaser shall cooperate, as needed in this effort (collectively, the “Required Consents”). On or prior to the Closing, Seller shall cause each of the Targets, as applicable, to be released from all obligations and to have no further or continuing obligations under the Senior Secured Loan with Gotham Green Partners pursuant to the Amended and Restated Purchase Agreement dated March 27, 2020, as further amended or restated from time to time (the “Gotham Loan Documents”).
  
 5.4. Seller Intellectual Property. From and after the Closing Date, any and all licenses or grant of rights previously made by Seller or its Affiliates in and to the Seller Intellectual Property in favor of any of the Targets are hereby terminated in their entirety. From and after the Closing Date, Purchaser and its Affiliates shall not, and shall not permit any of the Targets to, use any Seller Intellectual Property unless Seller or its Affiliates expressly grant a license, in writing, to Purchaser or its Affiliates to use any such Seller Intellectual Property. Seller and its Affiliates reserve all rights in the Seller Intellectual Property and nothing in this Agreement shall be construed as a license or grant of right of any kind by Seller or its Affiliates with respect to the Seller Intellectual Property unless so expressly provided herein. On the Closing Date, Purchaser and its Affiliates shall immediately remove all references to “MedMen” or other Seller Intellectual Property in the signage used by any of the Targets, including, without limitation, any references to “MedMen” or other Seller Intellectual Property on the websites of any of the Targets, and shall not otherwise in any way indicate any affiliation with Seller or its Affiliates unless pursuant to a written agreement between Seller or its Affiliates, on the one hand, and Purchaser and each of the Targets and their respective Affiliates, on the other hand. Seller shall be liable and shall indemnify the Targets if the use by any of the Targets of Seller Intellectual Property prior to the Closing Date infringes on any Person’s intellectual property or proprietary information.
  
 	 
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 5.5. Purchase Option. Seller or it’s applicable Affiliate shall and hereby does grant to Purchaser, during a period of one hundred twenty (120) days from June 9, 2020 (the “Option Period”), an exclusive option to purchase (the “Purchase Option”) the Fenway dispensary license owned by MedMen Boston, LLC (“MedMen Boston”) at a price mutually agreeable to the parties. Notwithstanding the foregoing, Purchaser acknowledges and agrees that the Purchase Option shall not be exclusive with respect to a transaction to sell MedMen Boston to New England Development and its Affiliates and/or Samuels Associates and its Affiliates after the first thirty (30) days of the Option Period and that the sale of MedMen Boston is at all times conditioned on the Parties mutually agreeing upon a price during the Option Period and MedMen Boston and its Affiliates’ receipt of all requisite consents to sell, including without limitation from Seller’s secured lenders, and subject to any third party right to purchase such license. In addition to the requisite consents and waivers, exercise of the Purchase Option by Purchaser shall be contingent upon state and local regulatory approval.
  
 5.6. Exclusivity. Commencing upon the IAED and continuing until the earlier of (i) termination of this Agreement pursuant to Section 9.1, or (ii) the Closing Date (the “Exclusivity Period”), Seller agrees that neither it nor any of its representatives, officers, employees, directors, or agents (the “Group”) shall initiate, solicit, entertain, negotiate, accept or discuss, directly or indirectly, any proposal or offer from any person or group of persons (including members of its Group) other than Purchaser (a “Purchase Proposal”) regarding (i) any transaction that could be preclusive of the transactions contemplated herein, (ii) the acquisition of all or any portion of the Membership Interests, or (iii) enter into any agreement, arrangement or understanding requiring it to abandon, terminate or fail to consummate the transactions contemplated herein. Seller further agrees that, in the event any third-party approaches Seller or any of its Affiliates or their representatives regarding such a transaction during the Exclusivity Period, Seller shall notify such party that Seller is contractually bound to forego any such discussion or negotiations. Immediately upon execution of this Agreement, Seller shall, and shall cause its Group to, terminate any and all existing discussions or negotiations with any person or group of persons other than Purchaser and its affiliates regarding a Purchase Proposal. Except with respect to any existing agreements between Seller and its secured lenders, each Target represents that no member of its Group is party to or bound by any agreement with respect to a Purchase Proposal other than under the Term Sheet.
  
 5.7. Release. Effective as of the Closing, Seller on behalf of itself and its Affiliates or any Person claiming by or through it or any of them hereby irrevocably waives, releases, remises and forever discharges any and all rights and claims that it, or any of such Person’s Affiliates, has had, now has or might now have against any of the Targets and their respective Affiliates that arose, occurred or existed on or before the Closing Date (whether accrued, absolute, contingent, unliquidated or otherwise and whether known or unknown), except for (a) rights and claims arising from or in connection with this Agreement or any other agreements entered into in connection with this Agreement and (b) rights to indemnification pursuant to Article IX.
  
 5.8. Preserve Accuracy of Representations and Warranties; Notification of Certain Matters.
  
 (a) Seller shall refrain from taking any action, or from not taking any action, which would render any of its representations or warranties contained in Article IV, respectively, untrue or inaccurate. Seller shall promptly notify Purchaser of (i) any event or matter that would reasonably be expected to cause any of its representations or warranties contained in Article IV to be untrue or inaccurate or (ii) any Action that shall be instituted or threatened against it to restrain, prohibit or otherwise challenge the legality of any transaction contemplated by this Agreement.
  
 	 
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 (b) From the IAED until the Closing, Seller shall promptly notify Purchaser of (i) any fact, circumstance, event or action the existence, occurrence or taking of which (A) has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (B) has resulted in, or could reasonably be expected to result in, any representation or warranty made by Seller hereunder not being true and correct or (C) has resulted in, or could reasonably be expected to result in, the failure of any of the conditions set forth in Section 8.4 to be satisfied; (ii) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (iii) any notice or other communication from any Governmental Body in connection with the transactions contemplated by this Agreement; and (iv) any Action commenced or, to Seller’s Knowledge, threatened against, relating to or involving or otherwise affecting any of the Targets. From the Consulting Agreement Effective Date until the Closing, Purchaser shall promptly notify Seller of any action that, to Purchaser’s Knowledge, if not taken by Seller or its Affiliates would reasonably be expected to have or cause a Material Adverse Effect or a Material Impact on the Licenses. For the avoidance of doubt, no notice under Section 5.8(a) or this Section 5.8(b) shall be deemed to have modified any representation or warranty or cured any breach or relieved any Party of any obligation or liability under this Agreement.
  
 5.9. Illinois Approval. Seller shall, as promptly as possible following execution of this Agreement, (i) make, or cause or be made, all filings and submissions (including those required to obtain the Illinois Approval) required under any Law applicable to Seller, any of the Targets or any of their respective Affiliates; and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection with the execution and delivery of this Agreement and the performance of its obligations pursuant to this Agreement and the documents to be delivered hereunder.
  
 ARTICLE VI.
 COVENANTS OF PURCHASER AND SELLER ON TAX MATTERS
  
 6.1. Tax Indemnification.
  
 (a) Seller shall defend, indemnify and hold harmless Purchaser and its respective Affiliates, directors, officers, managers, managing members, members, stockholders, agents, successors and permitted assigns (“Purchaser Tax Indemnified Persons”), from and against, and shall pay and reimburse the foregoing persons for, any and all adverse consequences relating to or arising out of: (i) all Taxes of Seller or any of the Targets for all taxable periods ending on or prior to the IAED (for the avoidance of doubt Purchaser shall be responsible for all Taxes following the IAED) (the “Pre-IAED Tax Period”); (ii) all Taxes of any Person (other than any of the Targets) imposed on any of the Targets as a transferee or successor, by contract or pursuant to any Laws, which Taxes relate to an event or transaction occurring before the IAED; (iii) any Tax for which any of the Targets are held liable by reason of any of the Targets being included in any consolidated, affiliated, combined or unitary group of Seller or its Affiliates prior to the IAED; (iv) all Taxes of Seller or any of the Targets incurred in connection with or resulting from the Restructuring; (v) any Tax for which any of the Targets are held liable by reason of the direct, indirect or constructive transfer of contracts, legal rights and other assets (including, but not limited to, license rights and license application rights) from Primary License SPE to Secondary License SPE; and (vi) the breach of any representation and warranty contained in Section 4.10 of this Agreement. All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement (including any real property transfer Tax and any other similar Tax) (the “Transfer Taxes”) shall be borne and paid by the Seller when due. The Person(s) required to do so by applicable law shall timely file any Tax Return or other document with respect to such Taxes or fees (and Purchaser shall cooperate with respect thereto as necessary).
  
 	 
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 (b) Purchaser shall defend, indemnify and hold harmless, Seller and its respective Affiliates, directors, officers, managers, managing members, members, stockholders, agents, successors and permitted assigns (“Seller Tax Indemnified Persons”), from and against, and shall pay and reimburse the foregoing persons for, any and all adverse consequences relating to or arising out of all Taxes of Purchaser or any of the Targets for all taxable periods commencing after the IAED (the “Post-IAED Tax Period”) except for Taxes arising from or related to (i) the Restructuring; and (ii) the breach by Seller of any representation and warranty contained in Section 4.10 of this Agreement.
  
 6.2. Preparation and Filing of Tax Returns. Seller shall prepare, or cause to be prepared, and file, or cause to be filed, on a timely basis (in each case, at Seller’s sole cost and expense) and on a basis consistent with the past practices of Seller to the extent such practices are not contrary to Law, all Tax Returns with respect to Seller and the Targets (as applicable) for the Pre-IAED Tax Period (the “Pre-IAED Returns”). Upon Purchaser’s request Seller shall provide a draft copy of such Pre-IAED Returns to Purchaser for its review at least thirty (30) business days prior to the due date or the extended due date if timely extended thereof. If Purchaser objects to any item on any such Tax Return, Purchaser shall, within ten (10) days after delivery of such Tax Return, notify Seller in writing of such objection, specifying with particularity any such item and stating the specific factual or legal basis for any such objection. If a notice of objection shall be duly delivered, Seller and Purchaser shall negotiate in good faith and use their reasonable commercial efforts to resolve such items. If Purchaser and Seller are unable to reach such agreement within ten (10) days after receipt by Seller of such notice, the disputed items shall be resolved by a nationally recognized, independent accounting firm mutually acceptable to Purchaser and Seller (the “Independent Accountant”), which Independent Accountant shall have no prior business relationship with Purchaser, Seller or any of the Targets, and any determination by the Independent Accountant shall be final. The Independent Accountant shall resolve any disputed items within twenty (20) days of having the item referred to it pursuant to such procedures as it may require. If the Independent Accountant is unable to resolve any disputed items before the due date for such Tax Return, the Tax Return shall be filed as prepared by Seller and then amended to reflect the Independent Accountant’s resolution. The costs, fees and expenses of the Independent Accountant shall be borne equally by Purchaser and Seller.
  
 (b) Purchaser shall prepare or cause to be prepared and timely file or cause to be filed, on a timely basis (in each case, at Purchaser’s sole cost and expense), all Tax Returns for the Targets for the Post-IAED Tax Period (the “Post-IAED Returns”). Post-IAED Returns shall be prepared in accordance with past practices of the Primary License SPE in preparing its Tax Returns, except where such past practice is not consistent with applicable Law and upon Purchaser’s reasonable request, Seller shall provide Purchaser with access to the books and records of the Targets for the purpose of Purchaser’s timely preparation of the applicable Post-IAED Returns. Purchaser shall provide a draft copy of such Post-IAED Returns to Seller for its review at least thirty (30) business days prior to the due date or the extended due date if timely extended thereof. If Seller objects to any item on any such Tax Return, Seller shall, within ten (10) days after delivery of such Tax Return, notify Purchaser in writing of such objection, specifying with particularity any such item and stating the specific factual or legal basis for any such objection. If a notice of objection shall be duly delivered, Seller and Purchaser shall negotiate in good faith and use their reasonable commercial efforts to resolve such items. If Purchaser and Seller are unable to reach such agreement within ten (10) days after receipt by Purchaser of such notice, the disputed items shall be resolved by the Independent Accountant (as defined above), and any determination by the Independent Accountant shall be final. The Independent Accountant shall resolve any disputed items within twenty (20) days of having the item referred to it pursuant to such procedures as it may require. If the Independent Accountant is unable to resolve any disputed items before the due date for such Tax Return, the Tax Return shall be filed as prepared by Purchaser and then amended to reflect the Independent Accountant’s resolution. The costs, fees and expenses of the Independent Accountant shall be borne equally by Purchaser and Seller. Seller shall reimburse Purchaser for an amount equal to the portion of unpaid Taxes that are due with a Post-IAED Return to the extent that such Taxes are allocable to a Pre-IAED Tax Period within twenty (20) days of Purchaser’s providing Tax Returns and work papers establishing such liability.
  
 	 
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 (c) In the case of Taxes that are payable with respect to a Pre-IAED Tax Period, the portion of any such Taxes that are allocable to the Pre-IAED Tax Period for purposes of this Agreement shall be: (a) in the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital or net worth, (ii) imposed in connection with the sale, transfer or assignment of property, or (iii) required to be withheld, deemed equal to the amount which would be payable if the taxable year ended with the IAED; and (b) in the case of other Taxes, deemed to be the amount of such Taxes for the entire period multiplied by a fraction the numerator of which is the number of days in the period ending on the IAED and the denominator of which is the number of days in the entire period.
   
 6.3. Amended Returns. Purchaser shall not file or cause to be filed any amended Tax Return that relates to any Pre-IAED Tax Period and shall not file or cause to be filed any Tax Return for any Post-IAED Tax Period in a jurisdiction in which the Primary License SPE did not file Tax Returns for such period, in each case without the consent of Seller, such consent not to unreasonably withheld, unless Purchaser shall be required to do so by applicable Law.
  
 6.4. Tax Refunds. Any refund or any credit or offset to Tax received or recognized by Purchaser that relates to any Pre-IAED Tax Period (including the application or refund of any estimated Tax paid for any Pre-IAED Tax Period) is for the account of Seller, together with any associated interest (whether such interest is received as a refund or expressly acknowledged by the applicable taxing authority in connection with a credit or offset), and Purchaser shall pay over to Seller any such refund or credit or offset and related interest within fifteen (15) calendar days of receipt or recognition thereof. At the request of Seller, and with the agreement of Purchaser, Purchaser shall file requests for refunds of Taxes for a Pre-IAED Tax Period.
  
 	 
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 6.5. Tax Contest.
  
 (a) Purchaser shall promptly notify Seller in writing upon receipt by Purchaser of notice of (i) any Tax audits or assessments of Seller or any of the Targets potentially involving Taxes of any of the Targets attributable to any Pre-IAED Tax Period, and/or (ii) any Tax audits or assessments of any of the Targets potentially involving Taxes for which Seller has provided or may be required to provide indemnification pursuant to the terms of this Agreement or any refund of Taxes for any Pre-IAED Tax Period. The failure of Seller or Purchaser to provide notice as described above shall not affect the indemnification rights of Seller or Purchaser, respectively, under this Agreement, except to the extent Purchaser or Seller, respectively, is prejudiced by Seller’s or Purchaser’s respective failure to provide the requisite notice.
  
 (b) Seller shall have the right, at its own expense, to elect in writing, within twenty (20) days of receiving notice of any Tax audits or assessments of Seller or any of the Targets (including any audit or investigation or any judicial or administrative proceeding) (such contest, a “Tax Contest”) of any Tax matter with respect to any Pre-IAED Tax Period potentially involving Taxes of any of the Targets to control the contest or resolution of any such Tax Contest (any Tax Contest controlled by Seller, a “Seller Tax Contest”); provided, however, that for any Seller Tax Contest that could result in any Tax Liability of Purchaser or any of its Affiliates for any Post-IAED Tax Period: (i) Seller shall keep Purchaser fully and timely informed of the progress of each Seller Tax Contest; (ii) Seller shall permit Purchaser to review and comment on all written submissions made to any administrative or judicial body in connection with each Seller Tax Contest and attend all administrative and judicial proceedings relating to each Seller Tax Contest; and (iii) Seller shall not be permitted to settle or compromise such Seller Tax Contest without the prior written consent of Purchaser.
  
 (c) If Seller fails within the twenty (20) day period described in Section 6.5(b) to respond to any Tax notice and defend the resulting audit or proceeding as provided in this Section 6.5, or fails to participate in any Tax Contest which Seller has the right to control pursuant to this Section 6.5, then Purchaser or any appropriate Affiliate of Purchaser shall have the right to take control of any such Tax Contest, subject to Seller’s continuing right to participate in the defense of such Tax Contest, and, subject to Section 6.5(d) below, Seller shall be bound by the results obtained by Purchaser or any of its Affiliates. In the event that Purchaser takes control of any Tax Contest pursuant to the terms of this Section 6.5(c), Seller shall have the continuing right to participate in such Tax Contest, provided that Purchaser shall take in good faith all comments reasonably made by Seller into account.
  
 (d) Notwithstanding the foregoing, in no event shall Seller or Purchaser settle, compromise and/or concede any portion of a Tax Contest if such Tax Contest would result in Liability for the other Party (by virtue of the indemnity provisions of this Agreement or otherwise) without the written consent of such other Party, which shall not be unreasonably withheld, conditioned or delayed.
  
 (e) In any Tax Contest, each Party shall bear its own costs and expenses related to such Tax Contest; provided, that Seller shall bear all such costs and expenses that are indemnifiable by Seller pursuant to Section 6.1.
  
 	 
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 6.6. Cooperation on Tax Matters. Purchaser and Seller shall cooperate fully, and as to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns pursuant to this Article VI and any audit, litigation or other proceeding with respect to such Taxes for any applicable Tax period. Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and information that are reasonably relevant to any such audit, litigation or other proceeding and making employees or representatives available on a mutually convenient basis to provide additional information and explanation of any materials provided hereunder. Seller and Purchaser each agree to retain all books and records with respect to Tax matters pertinent to each of the Targets (as applicable) relating to any taxable period beginning before the Consulting Agreement Effective Date until the expiration of the applicable statute of limitations of the respective taxable periods, and to comply with all record retention agreements entered into with any taxing authority; and each Party agrees to give the other Party reasonable written notice prior to destroying or discarding any such books and records pertaining to such Tax matters and, if the other Party so requests in writing, the first Party shall allow the other Party, at its expense, to take possession of such books and records. Purchaser and Seller further agree, upon request of the other Party, to use their reasonable efforts to obtain any certificate or other document from any Governmental Body or Person as may be reasonably necessary to mitigate, reduce, defer or eliminate any Tax that could otherwise be imposed (including with respect to the transactions contemplated by this Agreement) with respect to Pre- IAED Tax Periods, and to properly report the transactions contemplated by this Agreement to any Governmental Body.
  
 6.7. Tax Treatment. Purchaser and Seller agree to treat the transaction contemplated by this Agreement as a taxable purchase and sale of the Membership Interests on the Closing Date for U.S. federal income tax purposes, unless otherwise required by Law.
  
 6.8. Termination of Tax Sharing Agreements. The Parties acknowledge and agree that any and all existing Tax sharing agreements (whether written or not) binding upon any of the Targets, as applicable, were deemed terminated as of the IAED (other than an agreement (such as a lease) the principal purpose of which is not the sharing or allocation of Tax). The Parties further acknowledge and agree that, as of such date, each of the Targets, as applicable, was deemed not to have any further rights or liabilities thereunder.
  
 ARTICLE VII.
 REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER
  
 As a material inducement to Seller to enter into this Agreement and the other Transaction Documents, and with the understanding that Seller will be relying thereon in consummating the sale of the Membership Interests and the other transactions contemplated by the Transaction Documents. Purchaser hereby represents, warrants and covenant to Seller as follows:
  
 7.1. Organization and Standing. Purchaser is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware, and has all requisite power and authority to enter into this Agreement and the other Transaction Documents and to consummate the transactions contemplated by hereby and thereby.
  
 7.2. Authority. This Agreement and the other Transaction Documents have been duly authorized by Purchaser and, when duly executed and delivered by Purchaser and Seller, shall constitute the legal, valid and binding obligations of Purchaser, and shall be enforceable against Purchaser in accordance with their terms, subject to the Enforceability Exceptions. The execution, delivery and performance of this Agreement and the other Transaction Documents by Purchaser has been duly authorized by proper member and manager action of Purchaser and is within its limited liability company powers.
  
 	 
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 7.3. Qualification. Purchaser and all Affiliates of Purchaser (which shall include George Archos and Samuel Dorf) together with their respective officers, directors, employees, managers and agents and any direct or indirect holders of Purchaser’s and its Affiliates’ legal, equitable, ownership or beneficial interests are duly qualified and compliant with, and on the Closing Date will be duly qualified and compliant with, all applicable Laws that will enable Purchaser to complete the transactions contemplated herein, including without limitation the ownership and management restrictions set forth in Section 15-36 of the Illinois Cannabis Regulation and Tax Act (as amended). For the avoidance of doubt, Verano Holdings, LLC shall not be deemed to be an Affiliate of Purchaser for purposes of this Section 7.3 and none of its Affiliates or its or their officers, directors, employees, managers and agents and any direct or indirect holders of Verano Holdings, LLC’s and its Affiliates’ legal, equitable, ownership or beneficial interests shall be deemed to be Affiliates of Purchaser as a result of such relationship with Verano Holdings, LLC.
  
 7.4. Lawsuits, Proceedings, etc. As of the Closing Date, there is no Action or proceeding pending or, to the Knowledge of Purchaser, threatened against Purchaser. No order or injunction has been issued by any court of competent jurisdiction or other Governmental Body which does or may result in any adverse change in any assets of Purchaser or in the financial condition of Purchaser.
  
 7.5. Compliance with Law. Purchaser has complied and is currently in compliance and will remain in compliance through the Closing Date, with (including, without limitation, in connection with this Agreement, the other Transaction Documents and the transactions contemplated hereunder) all federal (except as otherwise excluded in the definition of Laws), state and municipal Laws applicable to its business, properties and assets.
  
 7.6. No Conflicts; Consents. The execution, delivery and performance by Purchaser and of this Agreement and, if applicable, the other Transaction Documents, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the Organizational Documents of Purchaser; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Purchaser; or (c) require the consent, notice or other action by any Person under, or conflict with or result in a violation or breach of, or default under, any contract to which Purchaser is a party. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Body is required by or with respect to Purchaser in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby.
  
 7.7. Investment Purpose. Purchaser is acquiring the Membership Interests solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of applicable securities laws. Purchaser acknowledges that none of the Membership Interests are registered under the Securities Act of 1933, as amended, or any state securities laws, and that the Membership Interests may not be transferred or sold except pursuant to the registration provisions of the Securities Act of 1933, as amended or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable.
  
 	 
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 7.8. Availability of Funds. Purchaser hereby represents and warrants that it will have as of the Closing Date, the amounts due and payable under this Agreement in readily available funds.
  
 7.9. Representations and Warranties.
  
 The representations and warranties contained in Sections 7.1 to 7.9 of this Agreement shall be true with respect to Purchaser on and as of the Closing Date with the same force and effect as though such representations and warranties had been made on and as of such Closing Date. Such representations and warranties have been made by Purchaser with the knowledge and expectation that Seller is relying thereon, and such representations and warranties shall survive the Closing and, subject to the provisions of Article IX, shall remain operative in full force and effect until the expiration of liability under Section 9.1.
  
 ARTICLE VIII. 
 CLOSING
  
 8.1. General Procedure. Upon receipt of all necessary approvals of Governmental Bodies, including, without limitation, any and all approvals required to transfer the Licenses to Purchaser or otherwise required in connection with the transfer of the Membership Interests, and subject to any other terms and conditions of this Article VIII and this Agreement, Seller shall transfer the applicable Membership Interests of the Holding Company to Purchaser (“Closing”). Prior to the Holding Company’s transfer of the Membership Interests to Purchaser, and, in exchange for the foregoing, the payment of the applicable portion of the Purchase Price as described in Article III, each Party shall deliver to the other Party such documents, instruments and materials as may be reasonably required in order to effectuate the intent and provisions of this Agreement, and all such documents, instruments and materials shall be satisfactory in form and substance to counsel for the other Parties, acting reasonably.
  
 8.2. Time and Place. The Closing shall take place via the remote exchange of documents following the execution and delivery of this Agreement and within three (3) days following satisfaction or waiver of the conditions to closing set forth in Section 8.4 and Section 8.5 hereof, with the actual date of Closing referred to as the “Closing Date”.
  
 8.3. Intentionally Omitted.
  
 8.4. Conditions to Obligation of Purchaser. The obligation of Purchaser hereunder to complete the purchase of the Membership Interest on the Closing Date and to pay the Closing Cash on the Closing Cash Payment Date (if applicable) in accordance with the terms set forth in this Agreement is, at the option of Purchaser, subject to the satisfaction (or waiver by Purchaser) of each of the following conditions:
  
 (a) Accuracy of Representations and Warranties. The representations and warranties made by Seller in this Agreement (including in Article IV) in respect of Seller and each of the Targets (as applicable) shall be correct in all material respects on and as of the Consulting Agreement Effective Date with the same force and effect as though such representations and warranties had been made on such date (except to the extent that a representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be so true and correct in all material respects as of such earlier date).
  
 	 
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 (b) Compliance with Covenants. All agreements and covenants which Seller is required to perform or comply with on or before the Closing Date shall have been fully complied with or performed in all material respects.
  
 (c) Compliance Certificate. Seller shall have delivered to Purchaser a certificate signed by an officer of Seller, dated as of the Closing Date and the Closing Cash Payment Date, stating that the conditions set forth in Sections 8.4(a) and 8.4(b) have been satisfied.
  
 (d) No Litigation. No Action, suit or proceeding before any court or other Governmental Body and no temporary restraining order, preliminary or permanent injunction or other judgment, order or decree issued by any Governmental Body or other Law, which would prevent the Closing or have a Material Adverse Effect on any of the Targets, shall have been instituted or threatened on or before the Consulting Agreement Effective Date.
  
 (e) Assets Free and Clear. As of (i) the Consulting Agreement Effective Date, the Assets of each License Holder shall be free and clear of any Liens, claims or Encumbrances other than those set forth on Schedule 4.16(i) of the Disclosure Schedules and any Permitted Encumbrances and (ii) the Closing Cash Payment Date, (1) the Assets of each of the Targets shall be free and clear of any Liens, claims or Encumbrances other than those set forth on Schedule 4.16(ii) of the Disclosure Schedules and any Permitted Encumbrances; and (2) each of the Targets, as applicable, shall have been released from all obligations and have no further or continuing obligations under the Gotham Loan Documents.
  
 (f) Delivery of Closing Documents. Seller shall have delivered to Purchaser each of the closing items listed in Section 8.6(b) for the Closing and items (a) and (b) listed in Section 8.6(b) for the payment of the Closing Cash, and such items shall be satisfactory in form to Purchaser, acting reasonably.
  
 (g) Required Consents. Seller and each of the Targets shall have received all of the Required Consents in order to consummate the Closing.
  
 (h) Government Approvals. Any required approvals or applicable waivers from, or notice to be made to, any Governmental Body or with respect to Seller or any of the Targets in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby shall have been obtained and made, including the Illinois Approval.
  
 (i) Material Adverse Effect. No Seller Caused MAE or MIL shall have occurred.
  
 	 
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 8.5. Condition to Obligation of Seller. The obligation of Seller hereunder to complete the sale of the Membership Interests in accordance with the terms set forth in this Agreement is, at the option of Seller, subject to the satisfaction (or waiver by Seller) of each of the following conditions:
  
 (a) Accuracy of Representations and Warranties. The representations and warranties made by Purchaser in this Agreement shall be correct in all material respects on and as of the Closing Date with the same force and effect as though such representations and warranties had been made on the Closing Date.
  
 (b) Compliance with Covenants. All agreements and covenants which Purchaser is required to perform or comply with, on or before the Closing Date shall have been fully complied with or performed in all material respects.
  
 (c) Payment. Payment of the Purchase Price as described in Article III shall have been made.
  
 (d) Compliance Certificate. Purchaser shall have delivered to Seller a certificate signed by an officer of Purchaser, dated as of the Closing Date, stating that the conditions set forth in Section 8.5(a) and 8.5(b) have been satisfied.
  
 (e) Delivery of Closing Documents. Purchaser shall have delivered to Seller each of the closing items listed in Section 8.6(a), and such items shall be satisfactory in form to Seller, acting reasonably.
  
 (f) No Litigation. No action, suit or proceeding before any court or other Governmental Body and no temporary restraining order, preliminary or permanent injunction or other judgement, order or decree issued by any Governmental Body or other Law, which would prevent the Closing, shall have been instituted or threatened on or before the Closing Date.
  
 (g) Required Consents. Seller and each of the Targets shall have received all of the Required Consents in order to consummate the Closing.
  
 (h) Government Approvals. Any required approvals or applicable waivers from, or notice to be made to, any Governmental Body or with respect to Seller or any of the Targets in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby shall have been obtained and made, including the Illinois Approval.
  
 8.6. Specific Items to be Delivered at Each Closing. Without limiting the scope of Section 8.1 of this Agreement, the Parties shall deliver the following items to the appropriate Party at each Closing:
  
 (a) To be delivered by Purchaser:
  
 (i) Any and all documents and/or certificates required to be delivered in connection with the payment of the Purchase Price pursuant to Article III;
  
 (ii) A certified copy of a resolution from the manager, managing member and/or members of Purchaser or the equivalent as is required by Purchaser’s Organizational Documents, authorizing the execution of this Agreement and the consummation by Purchaser of the transactions contemplated by this Agreement; and
  
 (iii) Any document called for under this Agreement to be delivered by Purchaser at or prior to such Closing.
  
 	 
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 (b) To be delivered by Seller:
  
 (i) A certified copy of a resolution from the manager, managing member and/or members from Seller as is required by Seller’s Organizational Documents, authorizing the execution of this Agreement and the consummation by Seller of the transactions contemplated by this Agreement;
  
 (ii) A certified copy of a resolution from the manager, managing member and/or members, as applicable, of each of the Targets as is required by the applicable Organizational Documents of each Target, authorizing the consummation by Seller of the applicable transactions contemplated by this Agreement;
  
 (iii) Any and all documents evidencing the transfer of the Membership Interests to Purchaser, all in accordance with applicable Laws;
  
 (iv) Resignations of all managers, managing members, directors and officers of each of the Targets, as applicable; and
  
 (v) Any document called for under this Agreement to be delivered by Seller at or prior to such Closing.
  
 ARTICLE IX.
 TERMINATION AND INDEMNIFICATION
  
 9.1. Termination. This Agreement may be terminated at any time prior to the Closing:
  
 (a) by the mutual written consent of Seller and Purchaser;
  
 (b) by Purchaser by written notice to Seller if Purchaser is not then in material breach of any provision of this Agreement and there has been a Seller Caused MAE or MIL and such Seller Caused MAE or MIL has not been cured or remedied by Seller within thirty (30) days of Seller’s receipt of written notice of such Material Adverse Effect or Material Impact on the Licenses from Purchaser, or if not capable of being cured or remedied within thirty (30) days, Seller has not commenced to cure or remedy such Material Adverse Effect or Material Impact on the Licenses within thirty (30) days and such Material Adverse Effect or Material Impact on the Licenses is not cured or remedied within ninety (90) days of Seller’s receipt of written notice from Purchaser; or
  
 (c) by Seller or the Purchaser in the event that (i) there shall be any Law that makes consummation of the transactions contemplated by this Agreement illegal or otherwise prohibited or (ii) any Governmental Body shall have issued a Governmental Order restraining or enjoining the transactions contemplated by this Agreement, and such Governmental Order shall have become final and non-appealable.
  
 	 
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 9.2. Effect of Termination. In the event of the termination of this Agreement in accordance with this Article IX, this Agreement shall forthwith become void and there shall be no Liability on the part of any Party hereto except:
  
 (a) as set forth in this Article IX and Article X hereof;
  
 (b) the Consulting Agreements shall terminate and Purchaser and Seller shall work together to expeditiously transition operational control of the Targets back to Seller;
  
 (c) that nothing herein shall relieve any Party hereto from Liability for any willful breach of any provision hereof; and
  
 (d) if this Agreement terminated as a result of a Material Impact on the Licenses pursuant to Section 9.1(b), Seller shall, within thirty (30) days of such termination, pay any amounts paid to Seller pursuant to Section 3.1(a) to Purchaser in immediately available funds to an account designated by Purchaser.
  
 9.3. Survival of Indemnification.
  
 (a) All of the representations and warranties of, and covenants or agreements required to be performed prior to each Closing by, Purchaser and Seller contained in this Agreement shall survive the execution and delivery hereof, and shall remain in full force and effect from and after the Closing Date through the period set forth in this Section 9.3.
  
 (b) The representations and warranties contained in this Agreement shall survive the Closing for twelve months (12) months after the Closing Date; provided, however, that (i) the representations and warranties set forth in Section 4.1 (Ownership; Capitalization), Section 4.3 (Authority), Section 4.4 (Organization and Standing), Section 7.1 (Organization and Standing), Section 7.2 (Authority) and Section 7.8 (Availability of Funds) will survive indefinitely and (ii) the representations and warranties set forth in Section 4.7(f) (Permits and Licenses) and Section 4.10 (Taxes) will survive until the expiration of the applicable statute of limitations (the representations and warranties in (i) and (ii) of this Section, collectively, the “Fundamental Representations”) (each applicable survival expiration date, a “Survival Date”), and no Indemnifying Party will be liable with respect to any breach of any representations and warranties contained in this Agreement after the applicable Survival Date of such representations and warranties unless written notice of a possible claim for indemnification with respect to such breach is given by the Indemnified Party to such Indemnifying Party on or before the applicable Survival Date, it being understood that so long as such written notice is given on or prior to the applicable Survival Date, such representations and warranties shall continue to survive until such matter is resolved, but only with respect to the matter(s) identified in such notice(s) of possible claim(s). All covenants and agreements of the Parties contained herein shall survive the Closing indefinitely or for the period explicitly specified therein. It is the express intent of the Parties that, if an applicable Survival Date as contemplated by this Section (b) is shorter than the statute of limitations that would otherwise have been applicable, then, by contract, the applicable statute of limitations shall be reduced to the shortened Survival Date contemplated hereby.
  
 	 
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 9.4. Seller’s Indemnification. Seller agrees to defend and indemnify Purchaser and each Affiliate of Purchaser and their respective managers, managing members, members, stockholders, owners, officers, directors, employees and agents (“Purchaser Indemnified Parties” or, individually, a “Purchaser Indemnified Party”) with respect to, and hold Purchaser Indemnified Parties harmless from, any Losses (the “Purchaser Indemnified Parties’ Losses”), which Purchaser Indemnified Parties may directly or indirectly incur or suffer by reason of, or which results from, arises out of, relate to, are caused by or is based upon, any of the following:
  
 (a) any inaccuracy in or breach of any representation or warranty made by Seller in this Agreement or any Transaction Document;
  
 (b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement or any Transaction Document;
  
 (c) (i) all Taxes (or the non-payment thereof) of any of the Targets (as applicable) with respect to any taxable year or period that ends on or before the IAED; (ii) with respect to any taxable year or period beginning before and ending after the IAED, all Taxes (or the non-payment thereof) of any of the Targets with respect to the portion of such taxable year or period ending on and including the IAED; (iii) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which any of the Targets (or any predecessor of any such Target) (as applicable) is or was a member on or prior to the IAED, including pursuant to Treasury Regulation §1.1502- 6 or any analogous or similar state, local, or non-U.S. law or regulation; and (iv) any and all Taxes of any Person (other than a Target) imposed on any of the Targets (as applicable) as a transferee or successor, by contract or pursuant to any law, rule, or regulation, which Taxes relate to an event or transaction occurring before the IAED;
  
 (d) any claims by or on behalf of any former equityholder with respect to such former equityholder’s ownership in any of the Targets and such former equityholder’s right to receive any portion of the Purchase Price;
  
 (e) any Seller Caused MAE or MIL.
  
 (f) all IAED Indebtedness and all Unapproved Indebtedness that remains unpaid as of the Closing and the applicable Targets not being released from all obligations under the Gotham Loan Documents on or prior to the Closing Date;
  
 (g) all Transaction Expenses that remain unpaid as of the Closing; and
  
 (h) the direct, indirect or constructive transfer of contracts, legal rights and other assets (including, but not limited to, license rights and license application rights) from Primary License SPE to Secondary License SPE
  
 	 
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 9.5. Purchaser’s Indemnification. Purchaser agrees to defend and indemnify Seller including, for Seller and each Affiliate of Seller, their owners, managers, managing members, members, officers, directors, employees and agents (“Seller Indemnified Parties” or, individually, a “Seller Indemnified Party” and together with the Purchaser Indemnified Parties, each an “Indemnified Party” and collectively the “Indemnified Parties”) with respect to, and hold Seller Indemnified Parties harmless from, any Losses (the “Seller Indemnified Parties’ Losses”)), which Seller Indemnified Parties may directly or indirectly incur or suffer by reason of, or which results from, arises out of, relate to, are caused by or is based upon, any of the following:
  
 (a) any inaccuracy in or breach of any representation or warranty made by Purchaser in this Agreement or any Transaction Document;
  
 (b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Purchaser pursuant to this Agreement or any Transaction Document; or
  
 (c) if the Closing does not occur and this Agreement is terminated, any Material Adverse Effect or Material Impact on the Licenses caused by or arising out of any action or inaction of Purchaser or Purchaser’s Affiliates on or subsequent to the Consulting Agreement Effective Date, it being understood and agreed by the Parties that if the Closing does occur, Purchaser shall have no such indemnification obligations to any Seller Indemnified Parties.
  
 9.6. Notification. Whenever any claim shall arise for indemnification hereunder, the Indemnified Party shall notify the Party from whom indemnification is sought (each, an “Indemnifying Party” and collectively, the “Indemnifying Parties”), promptly in writing after such Indemnified Party has actual knowledge of the facts constituting the basis for such claim (“Claims Notice”). Without limiting the generality of the foregoing, in the event of any claim for indemnification hereunder resulting from or in connection with any claim or legal proceedings by a third party, such Indemnified Party shall give prompt notice to the Indemnifying Party of such claim or the commencement of legal proceedings in respect of which recovery may be sought against the Indemnifying Party pursuant to the provisions of this Article IX. The Claim Notice to the Indemnifying Party shall specify, if known, the amount or an estimate of the amount of the Loss arising therefrom. Notwithstanding anything to the contrary in this Agreement, the failure to provide any notice pursuant to this Section 9.6 shall not release the Indemnifying Party from any of its obligations under this Article IX except to the extent that the Indemnifying Party is actually and materially prejudiced by such failure and shall not relieve the Indemnifying Party from any other obligation or Liability that it may have to any Indemnified Party otherwise than under this Article VII. The Indemnified Party shall not settle or compromise any such claim without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed) unless suit shall have been instituted against the Indemnified Party and the Indemnifying Party shall have failed, within five (5) days after notice of institution of the suit, to take control of such suit as provided in Section 9.7, or the Indemnifying Party fails to respond to a request for such written consent within five (5) days after notice of such request .
  
 	 
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 9.7. Legal Proceeding; Direct Claim. In the event Purchaser, Seller or any Target shall become involved in any legal, governmental or administrative proceeding which may result in indemnification claims hereunder, such Party (if a Target, then Seller, or Purchaser, on behalf of such Target, as appropriate) shall promptly notify the other Party in writing and in full detail of the filing, and of the nature of such proceeding. If the Indemnifying Party acknowledges in writing its obligation to indemnify the Indemnified Party hereunder against any Losses that may result from such proceeding, the Indemnifying Party shall have the right, but not the obligation, to defend any such proceeding if the proceeding could give rise to an indemnification obligation hereunder at its expense and through counsel of its choice if (i) the Indemnifying Party gives notice of its intention to do so to the Indemnified Party within five (5) days of the receipt of such notice from the Indemnified Party, (ii) the Indemnifying Party actively and diligently defends such proceeding, (iii) such proceeding involves only claims for monetary damages and does not seek an injunction or other equitable relief, and (iv) such proceeding does not relate to or otherwise arise in connection with Taxes or any criminal, regulatory or statutory enforcement action; provided, however, that if there exists or is reasonably likely to exist a conflict of interest that would make it inappropriate in the judgment of the Indemnified Party in its sole and absolute discretion for the same counsel to represent both the Indemnified Party and the Indemnifying Party, then the Indemnified Party shall be entitled to retain its own counsel in each jurisdiction for which the Indemnified Party determines counsel is required, at the expense of the Indemnifying Party. In the event that the Indemnifying Party exercises the right to undertake any such defense against any such proceeding as provided above, the Indemnified Party shall reasonably cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying Party’s expense, all witnesses, pertinent records, materials and information in the Indemnified Party’s possession or under the Indemnified Party’s control relating thereto as is reasonably required by the Indemnifying Party (provided that no Party shall be required to provide information to the extent it is subject to attorney-client privilege or such information may be reasonably relevant to a direct claim among the Parties). Similarly, in the event the Indemnified Party is, directly or indirectly, conducting the defense against any such proceeding, the Indemnifying Party shall reasonably cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying Party’s expense, all such witnesses, records, materials and information in the Indemnifying Party’s possession or under the Indemnifying Party’s control relating thereto as is reasonably required by the Indemnified Party (provided that no party shall be required to provide information to the extent it is subject to attorney-client privilege or may be reasonably relevant to a direct claim among the Parties). If the Indemnifying Party elects to defend any proceeding, it shall have full control over the conduct of such proceeding; provided that the Indemnified Party shall have the right to retain legal counsel, at their own expense, and shall have the right to approve any settlement of any dispute giving rise to such proceeding, provided that such approval may not be withheld unreasonably by the Indemnified Party. The Indemnifying Party shall reasonably cooperate with Indemnified Party in all proceedings.
  
 9.8. Exclusive Remedy. Subject to Section 10.3 and Section 10.15, after the Closing, the rights set forth in Article VI and this Article IX shall be the Indemnified Party’s sole and exclusive remedies against Indemnifying Parties hereto for misrepresentations or breaches of covenants contained in this Agreement. Notwithstanding the foregoing, nothing herein shall prevent any of the Indemnified Parties from bringing an Action based upon allegations of fraud or other intentional breach of an obligation of or with respect to either Party in connection with this Agreement. In the event such Action is brought, the prevailing Person’s attorneys’ fees and costs shall be paid by the non-prevailing Person, or as may be permitted under the Illinois Rules of Civil Procedure, provisions relating to awards for attorney’s fees and costs.
  
 	 
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 9.9. Insurance. The existence of a claim by Purchaser for monies from an insurer or against a third party in respect of any indemnifiable Loss shall not, however, delay any payment pursuant to the indemnification provisions contained herein and otherwise determined to be due and owing by Seller. If Purchaser has received the payment required by this Agreement from Seller in respect of any such indemnifiable Loss and later receives insurance proceeds or other amounts in respect of such indemnifiable Loss, Purchaser shall hold such insurance proceeds up to the amount paid by Seller in trust for the benefit of Seller and shall pay to Seller, as promptly as practical after receipt, a sum equal to the amount of such insurance proceeds or other amounts received (net of any increase in premiums or costs to collection such proceeds), up to the aggregate amount of any payments received from Seller in respect of such indemnifiable Loss.
  
 9.10. Limitations on Indemnification. The indemnification provided for in this Article IX shall be subject to the following limitations:
  
 (a) The Indemnifying Party shall not be liable to the Indemnified Party for indemnification until the aggregate amount of all Losses in respect of indemnification exceeds Two Hundred Fifty Thousand Dollars ($250,000) (the “Basket”). Thereafter, the Indemnifying Party shall be responsible for payment for Losses from the first dollar.
  
 (b) In no event shall any Indemnifying Party be liable to any Indemnified Party for indemnification where the aggregate amount paid by all Indemnifying Parties with respect to Losses is in excess of the aggregate of Two Million Dollars ($2,000,000) (the “Cap”).
  
 (c) Notwithstanding the foregoing, the Cap and Basket described in this Section 9.10 shall not apply with respect to Losses arising under Section 9.4(b)-(g) or Section 9.5(b)-(c) or resulting from breaches of covenants or Fundamental Representations or fraud; provided however, that in no event shall the Seller indemnifying parties be liable to the Purchaser Indemnified Parties for indemnification under Section 9.4(e) in an amount greater than the amounts paid by Purchaser to Seller under this Agreement.
  
 (d) Notwithstanding anything herein to the contrary, in no event shall the Indemnifying Party be liable to the Indemnified Party for punitive, special, lost profits, or other consequential damages, except to the extent any such damages are payable to a third party in connection with a claim or proceeding brought by a third party or except in connection with any fraud or intentional misconduct.
  
 9.11. Right of Set-off. To the extent that Seller has any indemnification obligation pursuant to this Article IX and subject to the limitations set forth herein, any of the Purchaser Indemnified Parties may set off the amount of such indemnification obligation against the principal balance of the Note and Pledge Agreement. Neither the exercise of nor the failure to exercise such right of set-off will constitute an election of remedies or limit any Purchaser Indemnified Parties in any manner in the enforcement of any other remedies that may be available to it.
  
 9.12. Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.
  
 	 
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 ARTICLE X. 
 MISCELLANEOUS
  
 10.1. Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable against the Parties and their respective successors and permitted assigns.
  
 10.2. Governing Law. This Agreement shall in all respects be governed by, and construed and enforced in accordance with, the laws of the State of Illinois without giving effect to any choice or conflict of law provision or rule that would require the application of the laws of another jurisdiction.
  
 10.3. Dispute Resolution; Venue; Arbitration. Any claim or controversy arising out of or in any way relating to this Agreement or any breach thereof between the Parties shall be submitted to FINAL AND BINDING ARBITRATION BEFORE JAMS IN THE STATE OF ILLINOIS, COOK COUNTY, PURSUANT TO THE JAMS COMPREHENSIVE ARBITRATION RULES AND PROCEDURES. ALL PARTIES FURTHER AGREE THAT THE ARBITRATION SHALL BE CONDUCTED BEFORE A SINGLE ARBITRATOR WHO SHALL BE AN INDEPENDENT RETIRED ILLINOIS OR FEDERAL JUDGE OR JUSTICE WHO CURRENTLY IS, OR WAS AT THE TIME OF RETIREMENT, IN GOOD STANDING. SUBJECT TO THE FOREGOING, THE ARBITRATOR SHALL BE SELECTED THROUGH THE PROCEDURE SET FORTH IN RULE 15, SUBSECTIONS (b) – (f) OF THE JAMS COMPREHENSIVE ARBITRATION RULES AND PROCEDURES The Parties further agree that, upon application of the prevailing Party, any Judge of the Superior Court of the State of Illinois, may enter a judgment based on the final arbitration award issued by the JAMS arbitrator, and the Parties expressly agree to submit to the jurisdiction of this Court for such a purpose. No action at law or in equity based upon any claim arising out of or related to this Agreement shall be instituted in any court by any Party (or their respective members) except (i) an action to compel arbitration pursuant to this Section 10.3 or (ii) an action to enforce an award obtained in an arbitration proceeding in accordance with this Section 10.3. THE PARTIES UNDERSTAND THAT BY AGREEMENT TO BINDING ARBITRATION THEY ARE GIVING UP THE RIGHTS THEY MAY OTHERWISE HAVE TO TRIAL BY A COURT OR A JURY AND ALL RIGHTS OF APPEAL, AND TO AN AWARD OF PUNITIVE OR EXEMPLARY DAMAGES. Notwithstanding any provision of the Agreement to the contrary, this Section 10.3 shall be construed to the maximum extent possible to comply with the laws of the State of Illinois. If, nevertheless, it shall be determined by a court of competent jurisdiction that any provision or wording of this Section 10.3, including any rules of JAMS, shall be invalid or unenforceable under the laws of the State of Illinois or other applicable Law, such invalidity shall not invalidate all of this Section 10.3. In that case, this Section 10.3 shall be construed so as to limit any term or provision so as to make it valid or enforceable within the requirements of the laws of the State of Illinois or other applicable Law, and, in the event such term or provision cannot be so limited, this Section 10.3 shall be construed to omit such invalid or unenforceable provision.
  
 (a) Attorney’s Fees. In the event of a dispute of the Parties with respect to this Agreement resulting in litigation or arbitration, the prevailing Party shall be entitled to recover from the other Party all reasonable costs, including, but not limited to attorneys’ fees and arbitration costs reasonably incurred by such Party.
  
 (b) Confidentiality. The Parties and the arbitrator shall maintain strict confidentiality with respect to the arbitration.
  
 (c) Notice and Right to Cure. The Parties agree that prior to utilizing the dispute resolution mechanism provided for in this Agreement, the Party claiming the breach of damage shall give written notice of the alleged breach or damage to the other Party, and the Parties shall meet in good faith to cure any breach and resolve any differences, provided, however, that such right of notice and opportunity to cure shall not extend any timetables set forth elsewhere in this Agreement or in applicable Law for longer than a period of thirty (30) days without the written consent of the Parties to continue such opportunity to cure.
  
 	 
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 10.4. Notices. All notices, consents, requests, instructions or other communications provided for herein shall be in writing and shall be deemed validly given, made and served when (a) delivered personally, (b) sent by certified or registered mail, postage prepaid, (c) sent by reputable overnight delivery service, or (d) sent by telephonic email transmission and, pending the designation of another address, addressed as follows:
   
 	 If to Seller: 
	 MM Enterprises USA, LLC 
 10115 Jefferson Boulevard 
 Culver City, California 90232 
 Attention: Adam Bierman 
 Email: adam@medmen.com 

	  
	  

	 with a copy to: 
	 Raines Feldman LLP
 1800 Avenue of the Stars, 12th Floor 
 Los Angeles, California 90067 
 Attention: Jonathan D. Littrell 
 Email: jlittrell@raineslaw.com 

	  
	  

	 If to Purchaser: 
	 Verano Evanston, LLC
 415 North Dearborn Street, 4th Floor 
 Chicago, Illinois 60654
 Attn: George Archos
 Email: george@verano.holdings 

   
 Any notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) three (3) days after mailing, if sent by registered or certified mail, (iii) on the day after dispatch, if sent by overnight delivery service, and (iv) upon dispatch, if transmitted by email transmission.
  
 10.5. Entire Agreement. This Agreement, the Exhibits attached hereto, any Disclosure Schedules, any other schedules or attachments delivered pursuant to the provisions hereof and the other Transaction Documents set forth the entire agreement between Seller and Purchaser, superseding in all respects any and all prior oral or written agreements or understandings between them pertaining to the transactions contemplated by this Agreement. This Agreement shall be amended or modified only by written instrument signed by both Seller and Purchaser.
  
 10.6. Cooperation. Purchaser and Seller agree to fully cooperate to ensure that all requirements related to the implementation of the transactions contemplated by this Agreement and the other Transaction Documents are accomplished.
  
 10.7. Headings. Section and article headings used in this Agreement have no legal significance and are used solely for convenience of reference and in shall no way extend or limit the meaning of any provision of this Agreement.
  
 	 
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 10.8. Assignment. No Party may assign its rights or obligations hereunder without the prior written consent of the other Party; provided, however, that prior to the Closing Date, Purchaser may, without the prior written consent of Seller, assign all or any portion of its rights or obligations under this Agreement to any of its Affiliates, provided that Purchaser shall be required to guarantee the performance or observance of all such assigned obligations as a condition to such assignment.
  
 10.9. Third Party Beneficiaries. Seller agrees that all representations, warranties and covenants made by Seller to Purchaser hereunder shall inure and accrue to, as if made originally to, any permitted assignee of Purchaser pursuant to Section 10.8, which assignee shall hold all rights and privileges of Purchaser hereunder.
  
 10.10. Expenses. Unless otherwise provided in this Agreement, each Party shall pay for its own legal, accounting and other similar expenses incurred in connection with the transactions contemplated by this Agreement.
  
 10.11. Confidentiality. The Parties agree to keep the terms and the existence of this Agreement and all Transaction Documents in strict confidence and shall only disclose the terms and conditions of such documents on a need-to-know basis to their and to their respective Affiliates’, advisors, counsel, employees, consultants, managers, managing members, members, officers and directors. All notices to third parties and other publicity relating to the matters contemplated by this Agreement and the other Transaction Documents shall be jointly planned and coordinated between Seller and Purchaser, and neither Party shall unilaterally release such notices or publicity without the prior written approval of the other Party; provided, nothing herein shall prohibit a Party from notifying such Party’s, or such Party’s Affiliates’, advisors, counsel, employees, consultants, managers, managing members, members, officers and directors, if such notice is required by Law or in furtherance of the completion of the transactions contemplated herein, and provided that Seller or its Affiliates may make such public disclosures as either deems are required or advisable under applicable securities Laws.
  
 10.12. Severability. In case any one or more of the provisions contained in this Agreement or any application thereof is for any reason held to be invalid, illegal or unenforceable in whole, in part or in any respect, or in the event that any one or more of the provisions of this Agreement operate or would prospectively operate to invalidate this Agreement, then and in any such event, the remaining provisions of this Agreement will remain operative and in full force and effect and the validity, legality and enforceability of the remaining provisions and other application thereof shall not in any way be affected or impaired thereby and the invalid provision shall be reformed to the extent possible to give effect to the intended meaning and purpose so long as the economic or legal substance of this Agreement is not affected in any manner materially adverse to any Party.
  
 	 
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 10.13. Interpretation. For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Recitals and the Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.
  
 10.14. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. A signature received via facsimile or electronically via email, in PDF or other electronic format will be as legally binding for all purposes as an original signature, as will use of an electronic process associated with this Agreement and executed or adopted by a Party with the intent to execute this Agreement.
  
 10.15. Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed by them in accordance with the terms hereof or were otherwise breached and that each Party shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent breaches of the provisions hereof and to enforce specifically the terms and provisions hereof, without the proof of actual damages, in addition to any other remedy to which they are entitled at law or in equity. Each Party agrees to waive any requirement for the security or posting of any bond in connection with any such equitable remedy, and agrees that it will not oppose the granting of an injunction, specific performance or other equitable relief on the basis that (a) the other Party has an adequate remedy at law, or (b) an award of specific performance is not an appropriate remedy for any reason at law or equity.
  
 [Signature page follows]
  
 	 
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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date set forth in the first paragraph.
  
 	 “PURCHASER”
	
	  
	  

	 A Delaware limited liability company
	  

	 VERANO EVANSTON, LLC
	  

	  
	  

	 By: Verano Illinois, LLC 
	  

	 Its: Manager
	  

	  
	  

	By:   	/s/ George P. Archos   	
	 Name: 
	George P. Archos	 
	Its: 	Manager	 
	 	 	 
	 “SELLER”
	  

	  
	  

	 MM ENTERPRISES USA, LLC,
	  

	 a Delaware limited liability company
	  

		  
	  

	 By: 
	 /s/ Zeeshan Hyder                               
	  

	 Name: 
	 Zeeshan Hyder
	  

	 Its: 
	 CFO
	  

   
 Signature Page to Amended and Restated Membership Interest Purchase Agreement

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