Document:

Exhibit
10.17

 

ASSET
PURCHASE AGREEMENT

 

THIS
ASSET PURCHASE AGREEMENT is made and entered into this 21st day of June 2017, by and among the following parties: (A) Synergy CHC Corp.,
a Delaware corporation (“Buyer”); (B) Perfekt Beauty Holdings LLC, a Delaware limited liability company “Seller”);
and (C) CDG Holdings, LLC, a Delaware limited liability company (the “Member”).

 

WITNESSETH:

 

WHEREAS,
the Seller is engaged in the business of developing and selling skincare and cosmetics products under the brand Per-fekt (the “Products”
and the business related to the manufacture, sale, marketing and distribution of the Products is, collectively, the “Business”);

 

WHEREAS,
the Member owns 92.3% of all of the issued and outstanding equity interests of the Seller; and

 

WHEREAS,
the Seller desires to sell, and Buyer desires to purchase, all or substantially all of Seller’s assets for the consideration payable
by Buyer to Seller as set forth in this Agreement, on the terms and subject to the conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the above premises and of the mutual covenants, conditions and agreements set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound,
hereby agree as follows:

 

article
1: DEFINITIONS

 

1.1
Definitions. Unless the context shall otherwise require, terms used in this Agreement with initial capital letters shall have
the meanings ascribed to them in Annex A, which is hereby incorporated by reference into this Agreement and made a part
hereof.

 

1.2
Rules of Construction. For purposes of this Agreement: (a) whenever the context requires, any pronoun shall include the corresponding
masculine, feminine and neuter forms; (b) where the context so requires or permits, the use of the singular form includes the plural,
and the use of the plural form includes the singular; (c) the words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”; (d) all references to “party” and “parties”
shall be deemed references to parties to this Agreement, unless the context shall otherwise require; (e) except as specifically otherwise
provided in this Agreement, a reference to an Article, Section, Schedule or Exhibit is a reference to an Article or Section of this Agreement
or a Schedule or Exhibit of or to this Agreement; (f) the term “or” is used in its inclusive sense and shall be deemed to
have the meaning “and/or”, and, together with the terms “either” and “any” shall not be exclusive;
(g) the term “any” shall be deemed to have the meaning “any and/or all”; (h) when used in this Agreement, words
such as “herein”, “hereinafter”, “hereby”, “hereof,” “hereto”, “hereunder”
and words of similar import shall refer to this Agreement as a whole, including Schedules and Exhibits hereto, and not to any particular
provision of this Agreement, unless the context clearly requires otherwise; (i) any reference to any Contract or other document or instrument
or to any Law is to it as amended and supplemented from time to time through the date of the Closing (and in the case of any Law, to
any successor provisions, and to any rules and regulations promulgated thereunder, in effect as of the date of this Agreement and as
of the date of the Closing), unless the context requires otherwise; (j) any reference to a Person shall include the permitted successors
and assigns of such Person; and (k) any reference to any materials, including any document, report, record, file or other data, shall,
in each case, include any form or medium of such materials (including electronic form).

 

article
2: ASSET PURCHASE

 

2.1
Asset Purchase; Assumption of Liabilities.

 

(a)
Asset Purchase. Upon the terms and subject to the conditions of this Agreement, and except for the assets set forth on Schedule
2.1(a) hereof, at the Closing, the Seller shall sell, assign, transfer and deliver to the Buyer, and the Buyer shall purchase, acquire
and accept from Seller, one hundred percent (100%) of the assets of the Seller, tangible and intangible, wherever located, whether or
not listed in the Financial Statements (the “Purchased Assets”). The Purchased Assets include, without limitation:
(i) all accounts receivable of Seller; (ii) the Beauty Brands and Costco orders; (iii) all Seller customer relationships; and (iv) and
all formulas related to the Per-fekt products. The Purchased Assets shall be sold, transferred and assigned free and clear of all Liens
and Encumbrances, except for Permitted Encumbrances. Notwithstanding the foregoing, the Purchased Assets will not include any of the
assets listed on Schedule 2.1(a) (collectively, the “Excluded Assets”).

 

    	 

    	 

    

 

(b)
Documentation. At the Closing, the Seller shall deliver one or more assignment and transfer agreement(s) and bill(s) of sale to
the Buyer, such assignment and transfer agreement(s) and bill(s) of sale to be in form and substance reasonably acceptable to the Buyer.

 

(c)
Assumption of Liabilities. The Buyer shall assume and agree to pay, perform and discharge when due, only the following liabilities
and obligations of Seller (the “Assumed Liabilities”): (i) the Liabilities of the Seller described in Schedule
2.1(c)(i); (ii) the Liabilities of Seller arising after the Closing under the Contracts included in the Purchased Assets, including
those listed on Schedule 2.1(c)(ii) (the “Assumed Contracts”), provided that the Buyer shall
not assume any Liabilities of the Seller arising out of or in connection with any breaches or defaults by the Seller under the Assumed
Contracts arising prior to the Closing and that the Assumed Liabilities shall not include any obligations or liabilities that were not
incurred in the ordinary course of business and shall not include Liabilities or obligations that are caused by the actions or inactions
of the Seller with respect to the Purchased Assets on or prior to the Closing Date; and (iii) the Liabilities arising out of operation
of the Business or ownership of the Purchased Assets after Closing.

 

(d)
Non-Assumption of Other Liabilities. Unless specifically set forth and assumed in Sections 2.1(c) or (e), the Buyer
will not assume or in any way undertake to pay, perform, satisfy or discharge any Liability or other obligation whatsoever of the Seller
or the Business, including, without limitation, any and all Liabilities for, relating to, arising out of or resulting from (i) any Taxes
(whether payable by or for the Seller, any member of Seller or any other Person), (ii) accounts payable of the Seller not listed in Schedule
2.1(c)(i), (iii) the services or products of the Seller (including the Products) to the extent sold, performed, or delivered prior
to the Closing Date (including, without limitation, any product returns, which shall remain the sole and complete liability of the Seller),
(iv) the ownership or leasing of the Purchased Assets prior to or on the Closing Date, (v) any Action arising out of events occurring
prior to the Closing, regardless of when made or asserted, (vi) any Liability under any Assumed Contract incurred during or relating
in any way to the period prior to the Closing, (vii) any Employee or former employee of the Seller, or any consultant retained by the
Seller, (viii) any obligation to indemnify, reimburse or advance amounts to any officer, director, Employee or agent of the Seller, (ix)
any Action pending as of the Closing Date, (x) any Action commenced after the Closing Date and arising out of or relating to any occurrence
or event happening prior to the Closing Date, (xi) the Seller’s compliance or noncompliance with any Law or Governmental Order,
(xii) any liability of the Seller or the Member under this Agreement or any other document executed in connection with the Transactions,
(xiii) the Seller’s actions or omissions occurring before, on or after the Closing Date, and (xiv) employee benefits (including,
without limitation, any and all Liabilities for offering and providing COBRA continuation coverage (and all required notices related
thereto) and accrued vacation, sick leave and bonuses, with respect to Seller’s Employees and former employees and their respective
dependents and other COBRA qualified beneficiaries under Seller’s group health plans for “qualifying events” (within
the meaning of §4980B of the Code and applicable regulations) occurring prior to and including the Closing Date (including any “qualifying
event” occurring by virtue of an Employee not being hired by Buyer in connection with the consummation of the Transactions)) (collectively,
the “Excluded Liabilities”). The Seller shall promptly pay and discharge all Excluded Liabilities in the ordinary
course of business.

 

(e)
Ulta Liability. As of the Closing, the Excluded Liabilities includes the wholesale value of returns of the Product inventory held
by Ulta as of the Closing (“Ulta Held Inventory”), which, as of Closing, has a wholesale value of approximately
$1,010,000 (the “Ulta Liability Amount”). In the event of Product returns of the Ulta Held Inventory by Ulta,
Buyer shall be obligated to purchase the returned Products (except those returned Products that are reasonably deemed to be damaged,
expired or otherwise unsaleable) from Seller at Seller’s true cost of manufacturing for such returned Products. Excluded Liabilities
shall not include, and Seller shall have no liability for, freight or transportation costs associated with such returns. Following Closing,
Buyer agrees to use commercially reasonable efforts to sell Products to Ulta (such sales being “New Product Sales”)
and to support the resale of Products sold to Ulta. The Ulta Liability Amount shall decrease by the amount of New Product Sales by Buyer,
from time to time, and once New Product Sales (measured using the Net Sales definition) equal or exceed the Ulta Liability Amount, then
all Liabilities associated with the Ulta Held Inventory shall become an Assumed Liability. Notwithstanding the foregoing, on the one-year
anniversary of the Closing, all Liabilities associated with the Ulta Held Inventory shall become an Assumed Liability.

 

    	 

    	 

    

 

2.2
Payment of Consideration.

 

(a)
Purchase Price. The total purchase price for the Purchased Assets (such amount, the “Purchase Price”)
will be payable in accordance with the provisions of this Agreement and equal to the sum of:

 

(i)
the Preliminary Adjustment Amount; minus

 

(ii)
the Seller Indebtedness Amount (as defined in Section 2.2(b)(i) below); minus

 

(iii)
the amount of any Final Adjustment Amount Underage (as determined in accordance with Section 2.3 below); plus

 

(iv)
the amount of any Final Adjustment Amount Overage (as determined in accordance with Section 2.3 below); plus

 

(v)
Any Royalty Consideration (as defined in Section 2.2(c) below).

 

(b)
Payment of Closing Date Purchase Price. In consideration of the transfer of the Purchased Assets to Buyer, at the Closing, Buyer
shall:

 

(i)
direct payment of an amount equal to the Seller’s Indebtedness set forth on Schedule 2.2(b)(i) hereof as of the Closing
Date pursuant to payoff letter(s) in form reasonably acceptable to Buyer which will cause the release of all Liens (if any) on the Purchased
Assets (the “Seller Indebtedness Amount”); and

 

(ii)
pay to the Seller the following (the “Closing Payment”): (A) the Preliminary Adjustment Amount, minus (B)
the Seller Indebtedness Amount. The Closing Payment shall be paid to Seller in the form of shares of Common Stock of Buyer. The Buyer
shall issue to Seller at the Closing a number of shares of Common Stock of Buyer equal to the Closing Payment divided by $1.50.

 

(c)
Royalty Consideration. As additional consideration for the purchase of the Purchased Assets, the Buyer agrees to make the following
payments to the Seller in accordance with, and subject to the conditions of, this Section 2.2(c) and Section 6.1 (the sum
of any such payments, if any, the “Royalty Consideration”):

 

(i)
A 5% royalty on a quarterly basis beginning on the Closing Date, and terminating on the ten (10) year anniversary of the Closing Date,
on all Net Sales of Products.

 

(d)
Closing Deliverables. At or prior to the Closing, the Seller will prepare and deliver to the Buyer a statement of the amount of
the estimated Adjustment Amount as of 12:01 a.m. Eastern Time on the Closing Date without taking into account any of the transactions
to be completed on the Closing Date in accordance with the terms of this Agreement (the “Preliminary Adjustment Amount”),
together with a reasonably detailed supporting calculation thereof. The Seller shall conduct a physical inventory count in order to determine
the wholesale value of the Inventory. The Seller shall not promote, remove or liquidate any Inventory through sales, bulk sales or shipments
to another retailer or location prior to Closing.

 

2.3
Purchase Price Adjustment.

 

(a)
Within 90 days following the Closing, the Buyer shall prepare and deliver, or cause to be prepared and delivered, to the Seller a statement
(the “Closing Schedule”) setting forth:

 

(i)
the Buyer’s determination of the actual amounts of (A) the Adjustment Amount, including the Final Adjustment Amount Overage or
the Final Adjustment Amount Underage (the “Final Adjustment Amount”), and (B) the Seller Indebtedness Amount,
in each case as of 12:01 a.m. Eastern Time on the Closing Date without taking into account any of the transactions to be completed on
the Closing Date in accordance with the terms of this Agreement;

 

    	 

    	 

    

 

(ii)
a calculation of any adjustments to the Closing Payment based on such calculations (the adjusted Closing Payment as a result of such
calculation being the “Final Closing Payment”); and

 

(iii)
a calculation of the accounts receivable contained in the Preliminary Adjustment Amount that were not collected by Buyer within the thirty
(30) days immediately following the Closing and the accounts receivable existing at the Closing but not taken into account in calculating
the Adjustment Amount (the “Excluded AR”).

 

(b)
Within fifteen (15) days after delivery of the Closing Schedule, the Seller may deliver a notice to Buyer either: (i) concurring with
the Closing Schedule (a “Notice of Concurrence”); or (ii) disagreeing therewith (a “Notice of Disagreement”).
If the Seller delivers a Notice of Disagreement, then it shall be accompanied by the Seller’s proposed revisions to the Closing
Schedule. If the Seller fails to deliver any notice within such 15-day period, the Seller shall be deemed to have delivered a Notice
of Concurrence.

 

(c)
If a Notice of Concurrence is delivered or deemed delivered, and if the Final Closing Payment is less than the Closing Payment, the Buyer
shall be entitled to payment out of the Royalty Consideration in the full amount of such shortfall. If a Notice of Concurrence is delivered
or deemed delivered, and the Final Closing Payment is greater than the Closing Payment, Buyer shall pay to the Seller the full amount
of such excess (with such payment being in shares of Buyer Common Stock priced at $1.50 per share) within thirty (30) days of the delivery
of the Notice of Concurrence.

 

(d)
If a Notice of Disagreement is delivered, then the Seller and the Buyer shall, during the 15-day period following such delivery (the
“Negotiation Period”), use commercially reasonable efforts to agree on the Final Adjustment Amount. If, during
such period, the Seller and the Buyer are unable to reach agreement, they promptly shall engage a nationally recognized certified public
accounting firm reasonably acceptable to each such party (the “Independent Auditor”) to resolve the disagreement,
and any such resolution shall be final, conclusive and binding upon the parties hereto, absent fraud or manifest error. To the extent
the Final Closing Payment as determined by the Independent Auditor is less than the Closing Payment, the Buyer shall be entitled to payment
out of the Royalty Consideration in the full amount of such shortfall. To the extent the Final Closing Payment as determined by the Independent
Auditor is more than the Closing Payment, the Buyer shall pay to the Seller the full amount of such excess (with such payment being in
shares of Buyer Common Stock priced at $1.50 per share) within thirty (30) days of such resolution.

 

(e)
Each of the Seller and the Buyer shall pay fifty percent (50%) of the fees and expenses of the Independent Auditor.

 

2.4
Allocation of Consideration. The parties will mutually agree upon an allocation of the consideration paid hereunder among the
Purchased Assets in accordance with Section 1060 of the Code and the Treasury Regulations promulgated thereunder and consistent with
the allocation set forth on Schedule 2.4 and agree to use the allocations therein for all filings, declarations and reports with
the IRS. The parties each agree to complete and file IRS Form 8594 with its U.S. Federal Income Tax Return consistent with such allocation
for the Tax year in which the Closing occurs.

 

2.5
Closing. The closing of the Transactions (the “Closing”) will take place remotely via the exchange of
documents and signatures (the date of the Closing, the “Closing Date”). The Closing shall be effective as of
12:01 AM Eastern Time on the Closing Date.

 

2.6
Collection of Accounts Receivable. Buyer shall use commercially reasonable efforts to collect accounts receivable included
in the Purchased Assets as of the Closing Date and shall permit Seller to assist in collection efforts, including permitting Seller to
directly contact payors. Each of Buyer and Seller shall be responsible for the costs and expenses of their respective collection efforts.
Any and all Excluded AR shall be the property of Seller and Seller may use its discretion in collecting all such Excluded AR for its
benefit after the thirty (30) day period following Closing.

 

    	 

    	 

    

 

2.7
Financial Statement Preparation. Following the Closing Date, Seller and Member shall use its commercially reasonable efforts
to assist Buyer in causing to be prepared, as promptly as practicable, and in any event no later than seventy (75) days following the
Closing Date, any financial statements that Buyer is required to file pursuant to Form 8-K, Rule 3-05 or Article 11 of Regulation S-X
under the Exchange Act, and shall use its commercially reasonable efforts to obtain the consents of its auditor(s) with respect thereto
as may be required by applicable SEC regulations. Seller represents and warrants that it has secured and will secure the cooperation
of its finance staff to assist Buyer with getting audited financial statements. All costs and expenses associated with this Section 2.7,
including reasonable compensation for services provided by Seller’s finance staff and auditors, shall be paid by Buyer.

 

article
3: REPRESENTATIONS AND WARRANTIES

OF THE SELLER and the Members

 

As
of the Closing Date, each of the Seller and Member, jointly and severally, hereby represents and warrants to the Buyer as to the matters
specified in this Article 3 (other than the investment representations in Sections 3.31 to 3.35, which are made by Seller only)
subject to the exceptions disclosed in the disclosure schedules delivered by the Seller and the Member to the Buyer (the “Schedules”)
concurrently with the execution and delivery of this Agreement. The sections of the Schedules are numbered to correspond to the applicable
Section of this Agreement. The Schedules set forth, among other things, items the disclosure of which is necessary either in response
to an express disclosure requirement contained in a section of this Agreement or as an exception to one or more representations or warranties
contained in the corresponding section of this Article 3. Information or disclosures set forth in one section of the Schedules
shall qualify other sections in this Agreement to the extent that it is readily apparent on its face that such information or disclosures
apply to such other sections.

 

3.1
Organization and Standing. The Seller has been duly formed and organized and is validly existing and in good standing under the
Laws of the jurisdiction of its formation. The Seller has the requisite power and authority to own its properties and assets and to carry
on its business as currently conducted. The Seller is duly qualified or licensed to do business and in good standing as a foreign entity
(if applicable) in each jurisdiction in which it conducts business, except where failure to so qualify would not reasonably be expected
to have a material adverse effect on the Seller. Schedule 3.1 contains a complete and accurate list of the Seller’s jurisdiction
of organization and any other jurisdictions in which it is qualified to do business as a foreign entity. The Seller has furnished to
Buyer true and correct copies of its Organizational Documents, as amended to date, and such Organizational Documents are in full force
and effect. The Seller is not in violation of any of the provisions of its Organizational Documents. The Seller has no Subsidiaries.

 

3.2
Authorization; Enforceability . The Seller has all requisite power and authority to enter into this Agreement and the other agreements
referenced herein or required hereby (the “Seller Related Agreements”), and to consummate the transactions
contemplated hereby and thereby (the “Transactions”). The execution and delivery of this Agreement and the
Seller Related Agreements and the consummation of the Transactions have been duly and validly authorized by all necessary action on the
part of the Seller, and no further action is required on the part of the Seller to authorize this Agreement, the Seller Related Agreements,
and the Transactions. This Agreement and the Seller Related Agreements have been duly executed and delivered by the Seller and, assuming
the due authorization, execution and delivery by the other parties hereto and thereto, constitute the valid and binding obligation of
the Seller, enforceable against it in accordance with their respective terms, except as such enforceability may be subject to the laws
of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance,
injunctive relief or other equitable remedies.

 

3.3
Absence of Conflicting Agreements; Consents. Neither the execution, delivery or performance by the Seller of this Agreement and
any Seller Related Agreements to which the Seller is a party, nor the consummation of the Transactions, does or will, after the giving
of notice, or the lapse of time or both, or otherwise:

 

(a)
contravene, result in a breach of, or constitute a default under, the Seller’s Organizational Documents;

 

(b)
contravene or violate any Law to which the Seller or the Business is subject or by which the Seller or the Business is bound;

 

    	 

    	 

    

 

(c)
contravene or constitute a default under any Material Contract;

 

(d)
contravene in any material respect, result in any material breach of or constitute a default in any material respect (or which with the
giving of notice or lapse of time would become such a default) under, give rise to any right of termination, material amendment, material
modification, acceleration or cancellation of any material obligation or loss of any material benefit under, result in the creation of
any Lien or Encumbrance on any of the assets of the Seller (including the Purchased Assets) pursuant to or under any Law or Governmental
Order applicable to the Seller; or

 

(e)
require the Consent of any Person or any Governmental Authority, other than as set forth in Schedule 3.3.

 

3.4
Capitalization. Schedule 3.4 sets forth the number, class and ownership of the Seller’s outstanding equity securities
immediately prior to Closing (the “Seller Equity Interests”). The Seller Equity Interests constitute all of
the outstanding equity or voting interests of the Seller, and the Seller Equity Interests have been duly authorized and are validly issued,
fully paid and nonassessable. There are no outstanding securities convertible, exercisable or exchangeable into equity of the Seller
or any options, warrants, purchase rights, subscription rights, preemptive rights, conversion rights, exchange rights, calls, puts, rights
of first refusal or other Contracts that could require the Seller to issue, sell or otherwise cause to become outstanding or to acquire,
repurchase or redeem any equity interest. There are no voting trusts, proxies or other Contracts relating to the voting of equity of
the Seller.

 

3.5
Sufficiency of, Title to and Condition of the Assets.

 

(a)
The Purchased Assets constitute all of the assets related to or used in or otherwise owned or leased by the Seller in connection with
the Business as the Business is currently conducted, and are sufficient to permit operation of the Business from and immediately after
the Closing Date in substantially the same manner as the Business is currently conducted. All items of tangible personal property, material
to the operation of the Business, whether owned or leased by the Seller, have been maintained in accordance with normal industry practice,
are adequate and suitable for the purposes for which they are presently being used or held for use, conform in all material respects
to all applicable Laws and Permits relating to their use and operation, and are free from defects (patent and latent) and deferred maintenance
obligations, subject to normal wear and tear. Without limiting the generality of the foregoing, the equipment included in the Purchased
Assets has been properly maintained and is in good working condition, subject to normal wear and tear.

 

(b)
The Seller has good and marketable title in and to (or in the case of leased assets, a valid leasehold interest in) all of the Purchased
Assets (other than inventory and other assets sold or disposed of in the ordinary course of business), free and clear of all Liens and
Encumbrances other than Permitted Encumbrances.

 

3.6
Contracts.

 

(a)
Schedule 3.6(a) sets forth a true, complete and correct list of all of the following Contracts to which the Seller is a party
(such Contracts together with any Contracts listed on Schedule 3.8(b), collectively the “Material Contracts”):

 

(i)
any written employment or severance Contract with any current or former employee of the Seller whereby the Seller continues to have ongoing
obligations thereunder;

 

(ii)
any Contract (or group of related Contracts) related to the engagement of any consultant or other independent contractor that provides
for payments or other consideration in excess of $2,000;

 

(iii)
any Contract (or group of related Contracts) with a customer or client or purchase orders (or group of related purchase orders) for the
purchase or sale of products or services (A) having remaining obligations on the part of the Seller to a customer or client by any party
thereto in excess of $2,000 or having remaining obligations on the part of the Seller to a vendor or supplier with respect to purchase
orders (or group of related purchase orders by any party thereto) in excess of $2,000, (B) containing provisions of the type commonly
referred to as a “most favored nation” provision, or (C) requiring the Seller to purchase its total requirements of any product
or service from any Person or containing “take or pay” provisions;

 

    	 

    	 

    

 

(iv)
any note, bond, indenture and other similar instrument or Contract evidencing, creating or otherwise relating to Indebtedness;

 

(v)
any Contract with any Related Party relating to or in any way affecting the Business;

 

(vi)
any executory Contract or commitment (or group of related Contracts or commitments) for capital expenditures that has remaining obligations
in excess of $2,000;

 

(vii)
any Contract that limits or purports to limit the ability of the Seller to compete in any line of business or with any Person in any
geographic area during any period of time, as well as any Contract that limits the ability of any Employee to compete with the Seller;

 

(viii)
any Contract creating a partnership or joint venture or similar entity or venture or any corporate sponsorship;

 

(ix)
any Contract that is a collective bargaining agreement;

 

(x)
any Contract (or group of related Contracts) that is material to the Business, or the absence or termination of which could reasonably
be expected to have a Material Adverse Effect;

 

(xi)
any Contract that provides for the indemnification of any Person or the assumption of any Liability of any Person that could reasonably
be expected to exceed $2,000; and

 

(xii)
any other Contract (or group of related Contracts) the performance of which involves future payments or receipts by the Seller in excess
of $2,000.

 

(b)
The Seller has delivered to Buyer true, correct and complete copies of all Material Contracts, including all amendments, modifications
and changes thereto, and any assignments thereof. The Material Contracts constitute all of the Contracts that are material to the Business.
Except as set forth in Schedule 3.6(b): (i) the Seller has performed, in all material respects, all terms, covenants, conditions
and agreements of each of the Material Contracts that are required to be performed by the Seller; (ii) the Seller is not in default,
in any material respect, under any Material Contract, and, to the Knowledge of the Seller, no other Person that is a party to any such
Material Contract is in default thereunder in any material respect; (iii) to the Knowledge of the Seller, no event has occurred that
(before or after notice or lapse of time or both) would become a breach or default, in any material respect, by the Seller or, to the
Knowledge of the Seller, any other Person that is a party thereto under any such Material Contract; and (iv) each of the Material Contracts
is valid, binding, enforceable and in full force and effect and constitutes the legal and binding obligation of the Seller and, to the
Knowledge of the Seller, each other Person that is a party thereto in accordance with its terms.

 

3.7
Intellectual Property.

 

(a)
Except as set forth on Schedule 3.7(a)(i), the Seller is the exclusive owner of all Intellectual Property, or has the rights to
use all Intellectual Property, that is material or necessary to operate the Business as now conducted, free and clear of any Liens and
Encumbrances (collectively such owned and licensed Intellectual Property is referred to herein as the “Seller Intellectual
Property”) other than Permitted Encumbrances. Schedule 3.7(a)(ii) sets forth a true, complete and correct list of
all such Seller Intellectual Property, including, without limitation formulas used in the Business, and Seller Intellectual Property
that has been registered with the United States Patent and Trademark Office or Copyright Office and pending applications for registration,
in each case listing the title and current owner(s), the jurisdiction(s) in which such Seller Intellectual Property has been issued or
registered, and the application, serial or registration number, all of which will be transferred to the Buyer hereunder.

 

    	 

    	 

    

 

(b)
Except as set forth in Schedule 3.7(b), the Seller has not received notice from any Person, nor has any knowledge of any valid
basis for any Person to be, claiming that the operation of the Business currently infringes or misappropriates the Intellectual Property
rights of any Person or constitutes unfair competition or trade practices under the Laws of any jurisdiction. Schedule 3.7(b)
lists any complaint, claim, or notice, or written threat thereof, received by the Seller alleging any currently existing infringement,
violation or misappropriation of the Intellectual Property of any Person.

 

(c)
With respect to each item of Seller Intellectual Property which is licensed to the Seller: (i) the Seller has the valid right to use
such Intellectual Property pursuant to a valid and enforceable license agreement; and (ii) the Seller is not in breach of any applicable
license agreement and is not aware of any party that is in breach of the applicable license agreement. Each license agreement to which
the Seller is party will remain unchanged and unaffected by the Transactions and the consummation of the Transactions will not result
in the loss or impairment or termination of any Seller Intellectual Property.

 

(d)
The Seller has taken all commercially reasonable steps necessary or required to insure the privacy of its databases and the security
against breach of its computer systems by any unauthorized third party.

 

(e)
No Product provided or distributed by the Seller in its conduct of the Business: (A) materially violates any Law; (B) includes any information
or material that, to the Knowledge of the Seller, is defamatory; or (C) to the Knowledge of the Seller, infringes any right of privacy
of any Person. Each Person whose name, image, voice or likeness is incorporated into any Marketing Materials has executed a written release
consenting to the Seller’s use of such Person’s name, image, voice and/or likeness (as applicable) and releasing the Seller
from any claims with respect thereto, each of such releases are fully assignable to Buyer without further consent of any Person.

 

(f)
The Seller has operated the Business and provided all Products in material compliance with any posted privacy policies and all applicable
Laws relating to privacy, data protection, anti-spam, telemarketing, personally identifiable information and similar consumer protection
Laws (“Information Privacy Laws”). The Seller has not received written notice of any claims or been charged
with violation of any Information Privacy Law. To the Knowledge of the Seller, the Seller is not under investigation with respect to
any violation of any Information Privacy Laws.

 

3.8
Real Property; Leases.

 

(a)
The Seller does not own any real property.

 

(b)
The leases, licenses and subleases listed on Schedule 3.8(b) (collectively, the “Leases”) constitute
all of the current leases, licenses or subleases for the use or occupancy of real property by or from the Seller (the “Seller
Leased Real Property”).

 

(c)
With respect to each such Lease:

 

(i)
the Seller is not in breach or in default in any material respect thereof, and to the Knowledge of the Seller, no other Person that is
a party to any such Lease is in breach or default in any material respect thereunder;

 

(ii)
each of the Leases constitutes the legal and binding obligations of the Seller, and to the Knowledge of the Seller, any other Person
that is a party thereto in accordance with its terms;

 

(iii)
the Seller has not assigned, transferred, conveyed, mortgaged, deeded in trust or caused any Lien or Encumbrance (other than any Permitted
Encumbrance) to exist with respect to any interest of the Seller in such Lease;

 

(iv)
the Seller has not received notice of any non-compliance with current zoning or land use Laws or of any pending condemnation or similar
proceeding affecting such Seller Leased Real Property or any portion thereof, and, to the Knowledge of the Seller, no such action is
presently threatened;

 

(v)
the Seller is entitled to the right of quiet enjoyment of each parcel of Seller Leased Real Property and is in peaceful and undisturbed
possession of the Seller Leased Real Property, and the Seller has not received notice of any uncured violation of any contractual or
legal restrictions that preclude or restrict the ability to use the Seller Leased Real Property for the purposes for which it is currently
being used;

 

    	 

    	 

    

 

(vi)
the Seller Leased Real Property and any buildings, structures, improvements and fixtures thereon constitute the only real property, improvements
and fixtures used by the Seller and are adequate for the conduct of the Business as it currently is conducted;

 

(vii)
the Seller has delivered to Buyer true, correct and complete copies of all of the Leases, including all amendments, modifications and
changes thereto, and any assignments thereof; and

 

(viii)
the Seller has not granted any license, lease or sublease to use or occupy the Seller Leased Real Property.

 

3.9
Financial Statements.

 

(a)
The Seller has delivered to Buyer true, correct and complete copies (a) of the unaudited balance sheet for the Seller, as of December
31, 2016, and the related statement of operations and members’ equity for the fiscal year then ended, including any notes thereto
(collectively, the “Annual Financial Statements”), and (b) an unaudited balance sheet (the “Most
Recent Balance Sheet”) for the Seller as of May 31, 2017 (the “Most Recent Fiscal Month End”),
and the related unaudited statement of operations for the five (5) month period then ended (collectively, the “Interim Financial
Statements” and, together with the Annual Financial Statements, the “Financial Statements”).

 

(b)
Except as set forth on Schedule 3.9(b)(i), the Financial Statements: (i) are complete and correct in all material respects and
are derived from and are in accordance with the books and Records of the Seller; (ii) fairly and accurately represent, in all material
respects, the financial condition of the Seller, as applicable, at the respective dates specified therein and the results of operations
for the respective periods specified therein; and (iii) have been prepared in accordance with GAAP applied on a consistent basis throughout
the periods covered thereby, except (x) to the extent prepared on a cash basis, and in such event, the Financial Statements are complete
and correct in all material respects and fairly and accurately represent, in all material respects, the financial condition of the Seller
or (y) in the case of the Interim Financial Statements, subject to normal recurring year-end adjustments and absence of notes.

 

3.10
Absence of Changes. Except as disclosed in Schedule 3.10, since May 31, 2017, there has not been:

 

(a)
any change in the assets, business, properties, condition (financial or otherwise), or results of operations of the Seller, taken as
a whole, from that reflected in the Financial Statements, except changes in the ordinary course of business that have not had, or would
not reasonably be expected to have, in the aggregate and with or without the lapse of time, a Material Adverse Effect;

 

(b)
any significant damage, destruction or loss that could reasonably be expected to materially and adversely affect the Business or the
assets and properties of the Seller, whether or not covered by insurance;

 

(c)
any amendments or changes in the Organizational Documents, except as contemplated by this Agreement;

 

(d)
any waiver or compromise by the Seller of a material right or of a material debt owed to or by the Seller, except in the ordinary course
of business and that would not reasonably be expected to have a Material Adverse Effect;

 

(e)
any satisfaction or discharge of any Lien or Encumbrance or payment of any obligation by the Seller, except in the ordinary course of
business and that would not reasonably be expected to have a Material Adverse Effect;

 

    	 

    	 

    

 

(f)
any indication by any material customer or any supplier of the Seller of an intention to discontinue or change the terms of its relationship
with the Seller;

 

(g)
any declaration or payment of any dividend or other distribution of the assets or properties of the Seller;

 

(h)
any increase in or modification of the compensation or benefits payable by the Seller to any of its directors, officers or Employees,
other than annual increases or consistent with past practice;

 

(i)
any delay or postponement in the payment of trade payables and other Liabilities outside the ordinary course of business;

 

(j)
any imposition of any Lien or Encumbrance (other than Permitted Encumbrances) upon any of the assets or properties of the Seller;

 

(k)
any sale, lease or other disposition of any asset or property of the Seller (including Seller Intellectual Property) except in the ordinary
course of business;

 

(l)
any occurrence, event, incident, action, failure to act, or transaction that has had or could reasonably be expected to have, with or
without the lapse of time, a Material Adverse Effect;

 

(m)
any material change in the accounting methods used by the Seller; or

 

(n)
any labor dispute involving the Seller.

 

3.11
Litigation. Except as set forth in Schedule 3.11, (a) there is no Action pending or, to the Knowledge of the Seller, threatened
against the Seller or relating to or affecting any of its assets or properties or that seeks to prevent, enjoin or otherwise delay the
Transactions and (b) the Seller is not subject to any Governmental Order. Except for claims for collections in the ordinary course of
business or as set forth in Schedule 3.11, there is no Action or investigation by the Seller currently pending or that the Seller
intends to initiate. To the Knowledge of the Seller, no event has occurred or circumstance exists, with or without the lapse of time,
that is reasonably likely to give rise to or serve as a basis for the commencement of any such Action.

 

3.12
Compliance with Laws.

 

(a)
The Seller is and has been in compliance in all material respects with all applicable Laws and Permits, and to the Knowledge of the Seller,
no event has occurred and no condition or circumstance exists that could reasonably be expected (with or without notice or lapse of time)
to constitute, or result directly or indirectly in, a default under, a breach or violation of, or a failure to comply, in any material
respect, with any applicable Laws or Permits. The Seller has not received any written notice from any Person regarding any actual, alleged
or potential violation of any Laws or Permits since January 1, 2016.

 

(b)
Except as identified on Schedule 3.12, the operation of the Business has been conducted in material compliance with all applicable
material Laws and other requirements of all courts and other governmental or regulatory authorities having jurisdiction over the Seller
and its assets, properties and operations. Except as set forth on Schedule 3.12, the Seller has not received written notice of
any violation (or possible violation) of any such Law or other legal requirement, and the Seller is not in default with respect to any
order, writ, judgment, award, injunction or decree of any federal, state or local court or Governmental Authority or regulatory authority,
applicable to the Seller, the Business, or the Products. Without limiting the foregoing, the Seller has not received any warning letter
or untitled letter, report of inspectional observations, including FDA Form 483s, establishment inspection reports, notices of violation,
clinical holds, enforcement notices or other documents from the United States Food and Drug Administration or any other similar Governmental
Authority or any institutional review board or independent ethics committee alleging a lack of material compliance by Seller with any
Laws. The Seller holds all Permits required for the conduct of the Business and the ownership of its properties except where the absence
thereof would not result in a Material Adverse Effect. No written notices have been received by the Seller alleging the failure to hold
any Permit. The Seller is in material compliance with all terms and conditions of all such Permits.

 

    	 

    	 

    

 

3.13
Taxes.

 

(a)
The Seller has accurately prepared and timely filed all federal, state and local, foreign and other Tax Returns that are required to
be filed by it, and has paid or made provision for the payment of all Taxes of the Seller, if any, that have become due and payable,
whether or not shown on a Tax Return. No deficiency assessment or proposed adjustment of the Seller’s United States Tax or state,
local or foreign Taxes is pending, and there is no Liability of the Seller for any Tax as of the date of the Interim Financial Statements
for which there is not an adequate reserve reflected in the Most Recent Balance Sheet.

 

(b)
All Taxes payable by, or due from, the Seller have been fully paid or adequately disclosed and fully provided for in the books and Financial
Statements. The Seller has not received any notice of an examination of any Tax Return of the Seller by any Governmental Authority. There
are no outstanding agreements or waivers extending the statutory period of limitation applicable to any Tax Return of the Seller.

 

(c)
No claim has been made by (i) a Governmental Authority in a jurisdiction where the Seller does not file Tax Returns that the Seller is
or may be subject to taxation by that jurisdiction or (ii) a Governmental Authority in any jurisdiction in which the Seller does file
Tax Returns that the Seller is or may be subject to taxation for any type of Tax for which the Seller has not filed all such Tax Returns
in that jurisdiction. There are no Liens or other Encumbrances for Taxes (other than Taxes not yet due and payable) upon any of the assets
of the Seller.

 

(d)
The Seller has withheld and paid all Taxes required to have been withheld and paid in connection with any amounts paid or owing to any
Employee, independent contractor, creditor, stockholder, member, equity holder or other Person.

 

(e)
The Seller has not received from any foreign, federal, state, or local Tax authority (including jurisdictions where the Seller has not
filed Tax Returns) any (i) written notice indicating an intent to open an audit or other review, (ii) request for information related
to Tax matters, or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any Tax
authority against the Seller. The Seller has delivered to Buyer correct and complete copies of all United States federal, state, local
or foreign income Tax Returns, examination reports, and statements of deficiencies assessed against or agreed to by the Seller filed
or received since January 1, 2016.

 

(f)
Except as set forth in Schedule 3.13(f), the Seller is not a party to any Contract, plan or other arrangement that, individually
or collectively, could give rise to the payment of any amount that would be subject to withholding under sections 409A, 457A or 4999
of the Code (whether directly under such Code section or pursuant to Code section 3401).

 

(g)
The Seller has not engaged, or is not currently engaging, in any “reportable transaction” within the meaning of Treasury
Regulation section 1.6011-4(b).

 

(h)
Except as set forth in Schedule 3.13(h), the Seller is not a party to or bound by any Tax allocation, indemnification or sharing
agreement. The Seller (i) has not been a member of an “affiliated group” (within the meaning of Code section 1504(a)) filing
a consolidated federal income Tax Return or (ii) does not have any Liability for the Taxes of any Person under Treasury Regulations section
1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract, or otherwise.

 

(i)
Seller (i) does not own, directly or indirectly, any interest in any entity that is organized outside of the United States and (ii) has
not filed a Form 8832 with the IRS, or otherwise made a “classification” election under Treasury Regulations section 301.7701-3.

 

(j)
The Seller has conducted all aspects of its business in accordance in all material respects with the terms and conditions of all Tax
rulings, Tax concessions and Tax holidays that were provided by any relevant Tax authority.

 

    	 

    	 

    

 

3.14
Insurance. The Seller has in full force and effect, and has had in full force and effect since January 1, 2016, the liability
and casualty insurance, errors and omissions insurance, workers compensation insurance, automobile insurance, and employee fidelity insurance
insuring the Business, properties, assets, employees and officers and/or directors of the Seller as listed in Schedule 3.14. True,
complete and correct copies of each such insurance policy (or certificate of insurance, if such insurance policy is unavailable) listed
or required to be listed in Schedule 3.14 have been delivered to Buyer. Neither the Seller nor, to the Knowledge of the Seller,
the insurance companies party thereto are in default, in any material respect, with respect to any such insurance policies, and the Seller
has not failed to give any notice or present any material claim that is pending under any policies in due and timely fashion. Since January
1, 2016, no insurer has (a) denied or disputed (or otherwise reserved its rights with respect to) the coverage of any claim pending under
any insurance policy or (b) threatened to cancel any insurance policy.

 

3.15
Guarantees. Except as set forth on Schedule 3.15, (a) the Seller is not a guarantor or otherwise responsible for any Liability
(including Indebtedness) of any other Person other than endorsements of checks for deposit in the ordinary course of business and (b)
no Person (other than the Seller) has guaranteed or is otherwise responsible for any Liability (including Indebtedness) of the Seller
other than endorsements of checks for deposit in the ordinary course of business.

 

3.16
Employees; Independent Contractors.

 

(a)
Schedule 3.16(a) sets forth a true, correct and complete list of all current employees, managers, and officers of the Seller (collectively,
the “Employees”) showing each of their names, the identity of their employer, job titles, exemption classification
under the Fair Labor Standards Act of 1938, as amended (“FLSA”), status (full-time or part-time, active or
inactive), current annual compensation, bonuses, commissions, deferred or contingent compensation, pension, accrued and unused vacation
and other paid leave, sick and paid time off, paid or payable (in cash or otherwise). Except as set forth in Schedule 3.16(a),
the employment or term of service of all Employees is terminable at will, which means that their employment can be terminated at any
time, with or without notice, for any reason or no reason at all without penalty or severance.

 

(b)
Schedule 3.16(b) sets forth a true and correct list of all independent contractors (collectively, “Independent Contractors”)
that are presently engaged by the Seller and an indication of which, if any, of such Independent Contractors cannot be terminated on
thirty (30) days’ notice or less or at any time, without Liability other than fees, costs and remuneration accrued through the
effective time of termination.

 

(c)
To the Knowledge of the Seller, within the past one (1) year, no Employee or Independent Contractor has been in violation in any material
respect of any employment contract, non-disclosure agreement, non-competition agreement or restrictive covenant to a former employer
relating to the right of any such Person to be employed or retained by the Seller because of the nature of the business conducted by
the Seller. To the Knowledge of the Seller, within the past one (1) year, no Employee, former employee or Independent Contractor has
been in violation in any material respect of any enforceable employment contract, nondisclosure agreement, non-competition agreement
or restrictive covenant in respect of an agreement or Contract between the Seller, on the one hand, and that Employee, former employee
or Independent Contractor, on the other hand.

 

(d)
The Seller is compliant in all material respects with the Immigration and Nationality Act, the Immigration Reform and Control Act of
1986, and other applicable Laws regarding work authorization and the employment of individuals who are not citizens of the United States,
all as amended from time to time (collectively the “Immigration Laws”). To the Knowledge of the Seller, each
Employee who is a resident alien and who works the Seller has obtained all required documentation to permit such Employee to work for
the Seller under the Immigration Laws. To the Knowledge of the Seller, the Seller does not employ any Employee who is not authorized
to work in the United States under the Immigration Laws. There are no pending or, to the Knowledge of the Seller, threatened investigations,
audits, claims or proceedings relating in any way to compliance by the Seller with respect to the Immigration Laws.

 

(e)
(i) The Seller is not party to, bound by, or subject to any collective bargaining agreement or other labor union contract covering any
of the Employees, and to the Knowledge of the Seller, there exists no organizational effort presently being made or threatened by or
on behalf of any labor union, work council, or other organization with respect to the Employees, and, to the Knowledge of the Seller,
no such efforts have been made since January 1, 2016; (ii) the Seller has not been or is not engaged in any unfair labor practice or
other unlawful wage and hour or employment practice since January 1, 2016, and there are no charges of any unfair labor practice, charge
of discrimination or harassment or other unlawful wage and hour or employment practice pending against the Seller before the National
Labor Relations Board, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the United States
Department of Labor or any other Governmental Authority; and (iii) since January 1, 2016, the Seller has not experienced any strikes,
grievances, claims of unfair labor practices, or other collective bargaining disputes or other labor disputes or controversies and, to
the Knowledge of the Seller, none of the foregoing are threatened.

 

    	 

    	 

    

 

(f)
Other than as would not have a Material Adverse Effect, the Seller is in compliance, and has complied, with the FLSA and all other applicable
Laws concerning the classification of Employees and Independent Contractors and have properly classified all such persons for purposes
of participation in the Employee Benefit Plans and other applicable Laws. The Seller (i) is in compliance in all material respects, and
have complied in all material respects, with all Laws concerning employment, employment practices, termination of employment, terms and
conditions of employment, wages and hours, duration of work, overtime, collective bargaining, employment discrimination, leaves of absence,
immigration, civil rights, safety and health, workers’ compensation, pay equity and classification of employees; (ii) has withheld
and reported all Taxes or other amounts required by Law or by agreement to be withheld and reported from the wages, salaries and other
payments to Employees and former employees; (iii) is not liable for any arrears of wages or other compensation, or any Taxes or any penalty
for failure to comply with any of the foregoing; and (iv) is not liable for any payment to any trust or other fund or to any Governmental
Authority, with respect to unemployment compensation benefits, social security or other benefits for Employees and former employees (other
than routine payments to be made in the normal course of business and consistent with past practice). Except as set forth on Schedule
3.16(f), there are no pending or, to the Knowledge of the Seller, threatened or reasonably anticipated Actions against the Seller
under any worker’s compensation policy or long-term disability policy.

 

(g)
The Seller is in compliance with the Worker Readjustment And Notification Act, as amended (the “WARN Act”)
and any applicable state laws or other applicable Laws regarding redundancies, reductions in force, mass layoffs, and plant closings,
including all obligations to furnish promptly and correctly all notices required to be given thereunder in connection with any redundancy,
reduction in force, mass layoff, or plant closing to affected employees, representatives, any state dislocated worker unit and local
government officials, or any other Governmental Authority. No reduction in the notification period under the WARN Act is being relied
upon by the Seller.

 

(h)
The Seller is in compliance in all material respects with all Health and Safety Laws and any applicable foreign, state, provincial or
other applicable Laws regarding employee and workplace safety.

 

(i)
In connection with Closing, the Seller shall satisfy in cash payments to each Employee all obligations for accrued wages, bonuses, Employee
Benefit Plans, independent contractor payments, accrued vacation and sick leave or similar benefits provided to such Employees.

 

3.17
Benefit Plans. The Seller does not have, and has never had, any (i) “employee benefit plans” as such term is defined
in section 3(3) of ERISA (such as pension and 401(k) plans, and medical, life, and disability plans), or (ii) any bonus, stock option,
stock purchase, restricted stock, incentive, deferred compensation, retiree medical or life insurance, cafeteria plan, dependent care
plan, supplemental retirement or other benefit plan, program or arrangement or any employment, termination, severance, retention, stay
bonus or other contract, agreement, plan, program or arrangement that provides or promises benefits or payments to any current Employee
or former employee, Independent Contractor, officer, shareholder or director of the Seller that the Seller maintains or makes contributions
to or has any responsibility or Liability for.

 

3.18
Environmental Compliance.

 

(a)
The Seller is in compliance in all material respects with all Environmental Laws, and any past noncompliance by the Seller with Environmental
Laws in any respect has been resolved without any ongoing or future Liabilities.

 

    	 

    	 

    

 

(b)
The Seller has not received any written notice of any Action, and, to the Knowledge of the Seller, no such Action has been filed, commenced
or threatened against the Seller that:

 

(i)
asserts or alleges that the Seller violated any Environmental Laws;

 

(ii)
asserts or alleges that the Seller is required to conduct any Remedial Action at the Seller Leased Real Property or in connection with
the Business;

 

(iii)
asserts or alleges that the Seller is required to pay all or a portion of the cost of any past, present or future Remedial Action at
any of the Seller Leased Real Property or in connection with the Business; or

 

(iv)
asserts or alleges that the Seller is liable in connection with the exposure of any persons to Hazardous Materials that are present at
or Released at or from any Seller Leased Real Property or that relate to the Business.

 

(c)
The Seller has not caused, permitted or suffered Hazardous Materials to be stored, deposited, treated, recycled, disposed of, or Released
at any Seller Leased Real Property in violation of any applicable Environmental Laws in any material respect, and to the Knowledge of
the Seller, there has been no Release at any of the Seller Leased Real Property, that would subject any owner or operator of such Seller
Leased Real Property to Liability for any Remedial Action under any Environmental Laws. To the Knowledge of the Seller, there are no
tanks or other facilities, equipment or transformers on, under, or at the Seller Leased Real Property that contain any Hazardous Materials
that, if known to be present in soils or ground water, would subject any owner or operator of such Seller Leased Real Property to Liability
for any Remedial Action under any Environmental Laws. The Seller is not subject, as a result of its interests in the Seller Leased Real
Property or in connection with the Business, to any Governmental Order related to or arising out of any Environmental Laws, and, to the
Knowledge of the Seller, the Seller has not been named or listed as a potentially responsible party in a matter related to or arising
out of any Environmental Laws. The Seller is not conducting or funding any Remedial Action in connection with the Business or at any
Seller Leased Real Property. The Seller has provided Buyer with true, correct and complete copies of all environmental assessments, audits,
studies or other analyses of any Seller Leased Real Property in its possession or control. All amounts required to correct any issue
related to compliance by the Seller with any and all Environmental Laws are reflected in the Financial Statements.

 

3.19
Brokers; Service Providers. Except as set forth on Schedule 3.19, neither the Seller nor any of its Affiliates have any
Liability to pay any brokers’, finders’ or similar agents’ fees or commissions with respect to the Transactions. Except
for third party service providers set forth on Schedule 3.19, neither the Seller nor any of its Affiliates have any Liability
to pay any fees, commissions, expenses or reimbursements of any third party service provider with respect to the Transactions.

 

3.20
Transactions with Affiliates.

 

(a)
Schedule 3.20(a) sets forth a true, correct and complete list of all Contracts and arrangements between or among the Seller, on
the one hand, and (i) any of the Seller’s Affiliates, members, directors, or officers, or (ii) any Employees of the Seller’s
members or family members of any Employee of the Seller’s members who own an equity interest in any of the Seller’s members
or trusts created for the benefit of any such family member or employee (collectively, the “Related Parties”),
on the other hand.

 

(b)
Except as set forth in Schedule 3.20(a), no Related Party (i) has been involved in any business agreement, arrangement or relationship
with, relating to or in any way affecting the Seller or the Business (including furnishing services to or receiving services from, renting
or leasing equipment, real estate or other assets or properties to or from, or providing or receiving the benefit of properties or assets
for non-arm’s length compensation) since January 1, 2016, or (ii) owns any asset, tangible or intangible, that is material to the
operation of the Business and that is used by the Seller. All transactions with any of the Related Parties have been fully and completely
and accurately reflected in the Financial Statements, including but not limited to payments to any of the Related Parties for services
or products or other contributions to the Seller in connection with the operation of the Business.

 

3.21
Suppliers. Schedule 3.21 sets forth a true, correct and complete list of the ten (10) largest suppliers for the Seller
who supplied products, materials or services to the Seller during the 2016 and 2017 fiscal years. No such supplier has given written
notice to the Seller that it intends to stop supplying, or alter in any material respect its relationship with the Seller with respect
to, such products, material or services to the from terms and conditions and quantities similar in all material respects to those used
in its current sales or services to the Business.

 

    	 

    	 

    

 

3.22
Customers. Schedule 3.22 sets forth a true, correct and complete list of the ten (10) largest customers for the Seller
who purchased Products, materials or services from the Seller during the 2016 and 2017 fiscal years. No such customer has given written
notice to the Seller that it intends to stop purchasing, or alter in any material respect its relationship with the Seller with respect
to, such Products, material or services from the Business from terms and conditions and quantities similar in all material respects to
those used in its current purchases from the Business.

 

3.23
No Undisclosed Liabilities. The Seller has no Liability (and, to the Knowledge of the Seller, there is no basis for any present
or future Action, charge, complaint, claim, or demand against the Seller or the Business giving rise to any Liability), except for (a)
Liabilities required in accordance with GAAP to be set forth on the Most Recent Balance Sheet, (b) Liabilities that have arisen after
the Most Recent Fiscal Month End in the ordinary course of business consistent with past practices (none of which results from, arises
out of, relates to, is in the nature of, or was caused by any breach of contract, breach of warranty, tort, infringement, or violation
of Law), (c) Liabilities resulting from the obligations of the Seller under this Agreement or the Seller Related Agreements, and (d)
the Liabilities set forth in Schedule 3.23.

 

3.24
Permits. Schedule 3.24 contains a true, complete and correct list of all Permits of the Seller. Such Permits constitute
all material Permits required by applicable Laws to carry on the Business as currently conducted. All such Permits are valid, and in
full force and effect and. The Seller is in compliance in all material respects with the requirements and limitations included in such
Permits.

 

3.25
Disputed Accounts Payable. Except as set forth in Schedule 3.25, there are no (individually or in the aggregate) unpaid
invoices or bills representing amounts alleged to be owed by the Seller that the Seller has disputed or determined to dispute or refuse
to pay.

 

3.26
Minute Books. The Seller has made available to Buyer all of the Records of the Seller, all of which are complete and correct in
all material respects and represent actual, bona fide transactions and have been maintained in accordance with sound business practices.

 

3.27
Computer Systems. Except as set forth in Schedule 3.27, none of the computer software, computer hardware (whether general
or special purpose), telecommunications capabilities (including voice, data and video networks) and other similar or related items of
automated, computerized, and/or software systems and any other networks or systems and related services that are used by or relied on
by the Seller in the Business (i) has experienced bugs, failures, breakdowns, or continued substandard performance in the past twelve
(12) months that has caused any material disruption or interruption in or to the use of any such systems by the Seller; or (ii) will
require the consent or approval of any Person to be transferred to the Buyer in connection with the Closing.

 

3.28
Inventory. All inventories of the Seller, including, but not limited to, all raw materials, Products, finished product, samples,
and Product components or ingredients (collectively, “Inventory”) consists of a quality and quantity usable
and salable in the ordinary course of business consistent with past practice, except for obsolete, damaged or defective items that have
been written off or written down to fair market value or for which a reasonable reserve has been established. At the Closing, the Inventory
will include sufficient quantities as are reasonably necessary for the conduct of the Business in the ordinary course consistent with
past practices. The term “Inventory” shall not include out of date, discontinued or non-approved Products set forth on Schedule
3.28. The Seller’s accounting practice with respect to Inventory is to expense the Inventory at the time of purchase.

 

3.29
Solvency. The Seller is not now insolvent nor will the Seller be rendered insolvent by any of the Transactions. As used in this
section, “insolvent” means that the sum of the Seller’s debts and other probable Liabilities exceed the present fair
saleable value of the Seller’s assets.

 

3.30
Product and Service Warranties . Except as set forth on Schedule 3.30 the Seller has made no express warranty to any customer
(or end user of the Seller’s goods or Products) as to services or goods provided by the Seller. There is no pending or, to the
Knowledge of the Seller, threatened claim alleging any breach of any warranty. The Seller does not have any Liability under any such
a warranty that would reasonably be expected to result in Liability to the Seller, individually or in the aggregate, in excess of $5,000.
To the Knowledge of the Seller, there have not been any Adverse Events with respect to the Products or the Business.

 

    	 

    	 

    

 

3.31
Status. The Seller represents and warrants that (a) it has had an opportunity to discuss the business, management and financial
affairs of the Buyer, has had access to, the management of the Buyer, and has had the opportunity to review the information set forth
in the Buyer’s public filings and any other information requested by the Seller, and (b) the Buyer will be relying upon the Seller’s
representations and warranties set forth herein in issuing the shares of Common Stock of the Buyer as part of the Purchase Price (the
“Equity Consideration”) to it, and it is not relying on the advice or recommendations of the Buyer and it has
made its own independent decision that the Equity Consideration is suitable and appropriate for the Seller. The Seller further represents
and warrants that: (i)(A) it recognizes that ownership of the Equity Consideration involves substantial risks, including a risk of total
loss of the value of the Equity Consideration, and has taken full cognizance of and understands all of the risk factors related to the
ownership of the Equity Consideration; and (B) it has sufficient knowledge and experience in business and investments, including financial,
business and tax matters, to be capable of evaluating the merits and risks of ownership in the Buyer and making an informed decision
about ownership in the Buyer; or (ii) it is an “accredited investor” as such term is defined in Rule 501 of Regulation D
promulgated under the Securities Act of 1933, as amended (the “1933 Act”).

 

3.32
Acquisition for Own Account. This Agreement is made with the Seller in reliance upon Seller’s representations to the Buyer,
which by its execution hereof the Seller hereby confirms, that the Equity Consideration to be received by Seller will be acquired for
investment for the Seller’s own account, not as a nominee or agent, and not with a view to the sale or distribution of any part
thereof other than as permitted under the 1933 Act and that it has no present intention of selling, granting participation in, or otherwise
distributing the same other than what is permitted under the 1933 Act. By executing this Agreement, the Seller further represents that
it does not have any contract, undertaking, agreement, or arrangement with any person to sell, transfer or grant participations to such
person, or to any third person, with respect to the Equity Consideration.

 

3.33
No Intention to Distribute. The Seller understand that the Equity Consideration shares have not been registered under the 1933
Act on the grounds that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from registration
under the 1933 Act, and that the Buyer’s reliance on such exemption is predicated in part on the representations set forth herein.
The Seller realizes that the basis for the exemption may not be present if, notwithstanding such representations, the Seller has in mind
merely acquiring the Equity Consideration shares for a fixed or determined period in the future, or for a market rise, or for sale if
the market does not rise. The Seller does not have any such intention.

 

3.34
No Registration. The Seller understands that the Equity Consideration may not be sold, transferred or otherwise disposed of without
registration under the 1933 Act or an exemption therefrom, and that in the absence of an effective registration statement covering the
Equity Consideration shares or an available exemption from registration under the 1933 Act, the Equity Consideration must be held indefinitely.
In particular, the Seller is aware that the Equity Consideration shares may not be sold pursuant to Rule 144 promulgated under the 1933
Act unless all of the conditions of that Rule are met. Among the conditions for use of Rule 144 may be the availability of current information
to the public about the Buyer.

 

3.35
Restrictions on Transfer. The Seller agrees that in no event will it make a transfer or disposition of any of the Equity Consideration
other than pursuant to an effective registration statement under the 1933 Act or a Rule 144 sale in compliance with the terms of such
Rule or pursuant to an exemption from the 1933 Act. Buyer shall cooperate with Seller and Seller’s transfer agent in the removal
of any legend on the Equity Consideration shares constituting the Equity Consideration to permit the trade or liquidation thereof in
the marketplace as permitted under Rule 144 of the 1933 Act, if requested by the Seller.

 

    	 

    	 

    

 

article
4: REPRESENTATIONS AND WARRANTIES OF THE BUYER

 

As
of the date hereof and as of the Closing Date, the Buyer hereby represents and warrants to the Seller as follows:

 

4.1
Organization and Standing. The Buyer is duly organized, validly existing and in good standing under the Laws of the Governmental
Body of its incorporation and is duly qualified or licensed to do business and in good standing in each jurisdiction in which the character
of its properties owned, operated, or leased or the nature of its properties owned, operated or leased make such qualification necessary
except as would not materially and adversely affect the Buyer. The Buyer has the requisite corporate power to own, lease, and operate
its properties and to carry on its business as such is now conducted and as is contemplated to be conducted immediately after the Closing.

 

4.2
Authorization; Enforceability. The execution, delivery and performance of this Agreement and the agreements, documents, certificates
and instruments contemplated under this Agreement to which the Buyer is or will be a party (collectively, “Buyer Related
Agreements”) and the consummation by the Buyer of the Transactions, are within the power of the Buyer and have been duly
authorized by all necessary corporate action by the Buyer and its shareholders and board of directors, and no approval from or notice
to any of the shareholders and board of directors of the Buyer is required regarding the same that has not been obtained or given, as
applicable. This Agreement and the Buyer Related Agreements have been duly executed and delivered by the Buyer and, assuming the due
authorization, execution and delivery by the other parties hereto and thereto, constitutes (or, if such agreement is to be executed and
delivered at Closing, will constitute) the valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with
its terms, except as such enforceability may be subject to the laws of general application relating to bankruptcy, insolvency and the
relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

4.3
Absence of Conflicting Agreements; Consents. Neither the execution, delivery or performance of this Agreement and the Buyer Related
Agreements, nor the consummation of the Transactions by the Buyer, does or will, after the giving of notice, or the lapse of time or
both, or otherwise: (a) contravene, result in a breach of, or constitute a default under, the Organizational Documents of the Buyer;
(b) contravene or violate in any material respect any material applicable Law to which the Buyer is a party or by which the Buyer or
its assets are bound; (c) contravene in any material respect, or constitute a default in any material respect under, any contract or
agreement to which the Buyer is a party or by which the Buyer or its assets are bound; or (d) require the Consent of or notice to any
Governmental Authority.

 

4.4
Capitalization. As of the date hereof, the authorized capital stock of the Buyer consists of 300,000,000 shares of Common Stock,
$0.00001 par value. As of the date hereof, approximately 88,764,357 shares of Common Stock are validly issued and outstanding, and each
outstanding share of Common Stock is fully paid and nonassessable. As of the date hereof, Buyer has 9,225,000 shares of Common Stock
available for future grant pursuant to the Buyer’s 2014 Equity Incentive Plan, (collectively, the “Equity Plan”),
(ii) outstanding options to purchase 6,300,000 shares of Common Stock under the Equity Plan, and (iii) no outstanding shares of restricted
stock under the Equity Plan. The issued and outstanding shares of Common Stock conform to the description thereof contained in the reports
(the “Exchange Act Reports”) filed by the Buyer with the Securities and Exchange Commission (the “SEC”)
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Except for options issued
under the Equity Plan, the Buyer does not have outstanding any options or warrants to purchase, or any preemptive rights or other rights
to subscribe for or to purchase, any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares
of its capital stock, and there is no commitment, plan or arrangement to issue, any securities or obligations convertible into any shares
of capital stock of the Buyer or any such options, rights convertible securities or obligations.

 

4.5
Issuance, Sale and Delivery of the Equity Consideration. The Equity Consideration has been duly authorized and, when issued, delivered
and paid for in the manner set forth in this Agreement, will be duly authorized, validly issued, fully paid and nonassessable, free and
clear of any Lien or Encumbrance, other than restrictions of transfer from federal or state securities laws. No preemptive rights or
other rights (which have not been waived) to subscribe for or purchase exist with respect to the issuance and sale of the Equity Consideration
by the Buyer pursuant to this Agreement.

 

    	 

    	 

    

 

4.6
Financials. The Buyer’s financial statements (including all notes and schedules thereto) included in the Exchange Act Reports
relating to the two year period preceding the date hereof present fairly in all material respects the financial position, results of
operations, statements of cash flows and statements of stockholders’ equity and other information purported to be shown therein
of the Buyer at the respective dates and for the respective periods to which they apply (subject, in the case of unaudited statements,
to normal year-end audit adjustments and the absence of footnotes) and such financial statements have been prepared in conformity with
GAAP, consistently applied throughout the periods involved (except as may be indicated in the notes thereto). Since the date of the most
recent financial statements included in the Exchange Act Reports, there has not been any event or condition of any character that, either
individually or cumulatively, has or would have a Material Adverse Effect.

 

4.7
Exchange Act Reports. The Buyer has complied in all material respects with the filing requirements of the SEC under the Exchange
Act and all rules and regulations thereunder for the two years preceding the date hereof. As of their respective filing dates, all documents
filed by the Buyer with the SEC complied in all material respects with the requirements of the Exchange Act and all rules and regulations
thereunder, and none of the Exchange Act Reports, when filed, contained any untrue statement of a material fact or omitted any fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading.

 

4.8
Offering Valid. Assuming the accuracy of the representations and warranties of the Seller contained in Article 3 hereof, the offer,
sale and issuance of the Equity Consideration will be exempt from the registration requirements of the 1933 Act, and will have been registered
or qualified (or exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable
state securities laws.

 

4.9
Brokers. Neither the Buyer nor any of its Affiliates has any Liability to pay any finders’, brokers’ or similar agents’
fees or commissions with respect to the Transactions.

 

4.10
Litigation. There is no material Action pending or, to the knowledge of the Buyer, threatened against the Buyer or its Affiliates
with respect to the Transactions. Neither the Buyer nor any of its Affiliates is subject to any Governmental Order that would alone or
in the aggregate materially and adversely affect the ability of the Buyer to close the Transactions or have a material adverse effect
on the Business after the Closing Date.

 

4.11
No Other Representations. The Buyer acknowledges and agrees that except for the representations and warranties contained in Article
3, neither Seller nor Member, nor any of their respective directors, officers, employees, subsidiaries, controlling persons, agents or
Affiliates, makes or has made any representation or warranty, either express or implied, as to the accuracy or completeness of any information
relating to the Seller, Member, the Business, the Purchased Assets or the Assumed Liabilities, and the Buyer is not relying, and has
not relied, on any representations or warranties whatsoever regarding the subject matter of this Agreement, express or implied, except
for the representations and warranties in Article 3.

 

article
5: CONDITIONS PRECEDENT TO CLOSING; CLOSING DELIVERABLES

 

5.1
General Conditions. Consummation of the Transactions shall be subject to the fulfillment on or before the Closing Date of each
of the following conditions:

 

(a)
No Proceedings. No Action or proceeding shall have been instituted or threatened prior to or on the Closing Date before any Governmental
Authority pertaining to the Transactions, the result of which could prevent or make illegal the consummation of the Transactions.

 

    	 

    	 

    

 

(b)
No Order. There shall not be in force any Governmental Order by any Governmental Authority of competent jurisdiction or any Law
restraining, enjoining, prohibiting, invalidating or otherwise preventing the consummation of the Transactions.

 

5.2
Conditions to Closing in Favor of the Buyer . The obligation of the Buyer to consummate the Transactions is subject to the satisfaction,
or the written waiver by Buyer, of each of the following conditions on or before the Closing Date:

 

(a)
Representations, Warranties and Covenants. (i) Each representation and warranty of the Seller contained in this Agreement shall
be true and correct on and as of the Closing Date in all material respects (except for those representations and warranties which address
matters only as of a particular date, which shall have been true and correct as of such particular date and except for representations
and warranties that contain “Material Adverse Effect” qualifications and other qualifications based on the word “material,”
which shall be true and correct in all respects), and (ii) the Seller shall have performed and complied in all material respects with
all covenants and obligations under this Agreement required to be performed and complied with by the Seller prior to or as of the Closing.

 

(b)
No Material Adverse Effect. No event or events shall have occurred since the date of this Agreement which individually or in the
aggregate has had, or is reasonably likely to have, a Material Adverse Effect on the Seller, the Business or the Purchased Assets.

 

(c)
Officer’s Certificate of the Seller. Buyer shall have received a certificate, validly executed by an executive officer of
the Seller for and on its behalf, to the effect that, as of the Closing, (i) the conditions to the obligations of the Buyer set forth
in Sections 5.2(a) and (b) hereof have been satisfied to his or her actual knowledge, and (ii) each and every one of the
other conditions to the obligations of the Buyer set forth in this Section 5.2 have been satisfied to his or her actual knowledge
(unless otherwise waived in accordance with the terms hereof).

 

(d)
FIRPTA Certificate. Buyer shall have received a properly executed certificate of non-foreign status substantially in the form
specified in Section 1.1445-2 of the Treasury Regulations from the Seller.

 

(e)
Consents. Prior to the Closing, the Seller shall obtain the Consents, waivers and approvals, and timely provide notices, under
the Contracts, Leases, Permits, real estate leases and other arrangements set forth on Schedule 5.2(e), so as to preserve all
rights of, and benefits to, the Buyer thereunder from and after the Closing. To the extent that the rights of the Seller under any Contract
or other Purchased Asset to be assigned to Buyer hereunder may not be assigned without the Consent of another Person which has not been
obtained as of the Closing, this Agreement will not constitute an agreement to assign the same if an attempted assignment would constitute
a breach thereof or be unlawful, and the Seller, at its expense, will obtain any such required Consent(s) within sixty (60) days of Closing.
If any such Consent has not been obtained as of the Closing or if any attempted assignment would be ineffective or would impair the Buyer’s
rights under the Contract or Purchased Asset in question so that the Buyer would not in effect acquire the benefit of all such rights,
Seller, to the maximum extent permitted by Law and the Contract or Purchased Asset, will act after the Closing as the Buyer’s agent
for the limited purpose of obtaining for it the benefits thereunder and will cooperate, to the maximum extent permitted by Law and the
Contract or Purchased Asset, with Buyer in any other reasonable arrangement satisfactory to all parties designed to provide such benefits
to the Buyer, and the Buyer will be responsible for the costs and expenses of obtaining such benefits. Notwithstanding the foregoing,
any failure to obtain any required Consent, whether or not disclosed by the Seller to the Buyer in the Schedules or otherwise, will not
relieve the Seller of its obligation to obtain all such Consents as set forth herein.

 

(f)
Delivery of Documents. The Seller shall have executed and delivered to Buyer all documents, certificates, instruments and schedules
required hereunder.

 

(g)
Release of Liens and Encumbrances. Buyer shall have received from the Seller duly and validly executed copies of all agreements,
instruments, certificates and other documents, in form and substance acceptable to Buyer, that are necessary or appropriate to evidence
the release of all Liens and Encumbrances and satisfy all Indebtedness identified on Schedule 5.2(g).

 

(h)
Employee Matters.

 

(i)
Immediately prior to the Closing, without penalty or Liability to the Buyer, the Seller shall terminate all Employees.

 

(ii)
In connection with Closing, the Seller shall satisfy in cash payments to each Employee all obligations for accrued wages, bonuses, Employee
Benefit Plans, independent contractor payments, accrued vacation and sick leave or similar benefits provided to such Employees.

 

    	 

    	 

    

 

(iii)
Nothing in this Agreement or any other Transaction document shall be construed as an obligation of the Buyer to continue the employment
of any Employee for any period following the Closing Date. Nothing contained in this Agreement: (i) shall be construed to limit in any
way the ability of the Buyer or any of its Affiliates to terminate the employment of any Employee at any time and for any or no reason;
(ii) shall be construed to establish, amend or modify any benefit or compensation plan, program, agreement or arrangement; (iii) shall
alter or limit the Buyer or any of its Affiliates’ ability to amend, modify or terminate any benefit or compensation plan, program,
agreement or arrangement at any time assumed, established, sponsored or maintained by the Buyer or any of its Affiliates; (iv) is intended
to confer upon any current or former employee (including any Employee) or any other Person any right to a particular term or condition
of employment; or (v) is intended to alter or impair any rights an Employee has or may have accrued under any Employee Benefit Plan or
Contract. Without limiting the generality of the foregoing, nothing in this Agreement, express or implied, is intended to confer any
rights, benefits, remedies, obligations or liabilities upon any Person other than the parties to this Agreement and their respective
successors and assigns, including any current or former employees, retirees, or dependents or beneficiaries of employees or retirees.

 

(i)
Name Change. At the Closing, the Seller will deliver to the Buyer a fully executed amendment to the Seller’s Organizational
Documents to change its name to a name bearing no resemblance to its present name (including, without limitation, removal of the word
“Per-fekt” from such name) and authorize the Buyer to file such amendments with the applicable Governmental Authority on
the Seller’s behalf.

 

(j)
Good Standing and Tax Clearance Certificates. The Seller shall have delivered to Buyer (i) a certificate or certificates dated
within five (5) days of the Closing Date of the jurisdiction where the Seller is incorporated and any other jurisdictions where the Seller
is qualified as a foreign corporation as to the good standing of the Seller, and (b) tax clearance certificates from applicable taxing
authorities as reasonably requested by Buyer.

 

(k)
Intellectual Property Assignment. The Seller shall have delivered to Buyer an executed Intellectual Property Assignment in the
form attached hereto.

 

(l)
Other Matters. The Seller shall have delivered to Buyer, in form and substance acceptable to Buyer, such certificates and other
evidence as Buyer may reasonably request as to the satisfaction of the conditions contained in this Section 5.2.

 

5.3
Conditions to Closing in Favor of the Seller. The obligation of the Seller to consummate the transactions to be performed by it
at the Closing is subject to the satisfaction, or the written waiver by the Seller, of each of the following conditions on or before
the Closing Date:

 

(a)
Representations, Warranties and Covenants. (i) Each representation and warranty of the Buyer contained in this Agreement shall
be true and correct on and as of the Closing Date (except for those representations and warranties which address matters only as of a
particular date, which shall have been true and correct as of such particular date and except for representations and warranties that
contain “Material Adverse Effect” qualifications and other qualifications based on the word “material,” which
shall be true and correct in all respects), and (ii) the Buyer shall have performed and complied in all material respects with all covenants
and obligations under this Agreement required to be performed and complied with by the Buyer prior to or as of the Closing.

 

(b)
Officer’s Certificate of the Buyer. The Seller shall have received a certificate, validly executed by an executive officer
of the Buyer to the effect that, as of the Closing, (i) the condition to the obligations of the Seller set forth in Section 5.3(a)
hereof have been satisfied to his actual knowledge, and (ii) each and every one of the other conditions to the obligations of the
Seller set forth in this Section 5.3 have been satisfied to his actual knowledge (unless otherwise waived in accordance with the
terms hereof).

 

(c)
Delivery of Documents. The Buyer shall have executed and delivered all documents, certificates, instruments and schedules required
hereunder to the Seller.

 

article
6: ROYALTY OBLIGATIONS

 

6.1
Reporting; Audit. Buyer will send Seller an accounting statement reflecting Buyer’s Net Sales for each calendar quarter,
along with a computation and payment of Royalty Consideration due, within forty-five (45) days following each calendar quarter. No more
than once every twelve (12) months, Seller may audit the books and records of Buyer to ensure that all accountings and payments are accurate,
provided that Seller provides Buyer with written notice at least ten (10) days prior to conducting such audit. Seller may not conduct
an audit of the same accounting statement more than once. In the event Seller discovers an underpayment following an audit, Buyer shall
compensate Seller the total underpayment. Seller is responsible for paying along with the reasonable and verified costs and expenses
of said audit, unless the audit uncovers an underpayment of 5% or more in which case Buyer will pay said expenses.

 

    	 

    	 

    

 

article
7: SURVIVAL; INDEMNIFICATION

 

7.1
Survival. All of the representations and warranties of the parties hereto contained in this Agreement shall survive the Closing
and continue in full force and effect for a period of one (1) year from the Closing Date; provided, however, that (a) the
representations and warranties set forth in Section 3.1 (Organization and Standing), Section 3.2 (Authorization; Enforceability),
Section 3.4 (Capitalization), Section 3.19 (Brokers; Service Providers), Section 4.1 (Organization and Standing),
Section 4.2 (Authorization; Enforceability), and Section 4.9 (Brokers) (such representations and warranties, collectively,
the “Fundamental Representations”) shall survive the Closing and continue in full force and effect indefinitely,
and (b) the representations and warranties contained in Section 3.13 (Taxes), Section 3.17 (Employee Benefit Plans) and
Section 3.18 (Environmental Compliance) shall survive the Closing and continue in full force and effect for six (6) months following
the expiration of the applicable statute of limitations with respect thereto. The covenants and agreements of the parties set forth in
this Agreement shall survive the Closing until fully performed and discharged. The applicable period of survival set forth in this Section
7.1 is referred to as the “Survival Period.” Any claims as to a breach or default of a representation or
warranty under Section 7.2 must be asserted with reasonable specificity in writing by the party making such claim within the applicable
Survival Period; provided, that any claim made with reasonable specificity by the Person seeking to be indemnified within the time periods
set forth in this Section 7.1 shall survive until such claim is finally and fully resolved.

 

7.2
Indemnification by the Seller and the Member. The Seller and the Member agree to defend, indemnify and hold harmless, jointly
and severally, the Buyer and each of its Affiliates and their respective Affiliates, officers, managers, members, employees, agents,
advisors, representatives, and the successors and assigns of the foregoing (each hereinafter referred to individually as a “Buyer
Indemnified Person,” and collectively as “Buyer Indemnified Persons”), without duplication, from,
against and in respect of all Losses resulting from, arising out of, or caused by any of the following (collectively, “Seller
Indemnifiable Matters”):

 

(a)
any breach of any representation or warranty made by the Seller or the Member herein;

 

(b)
any breach by the Seller or the Member of, or failure by the Seller or the Member to perform, carry out or otherwise fulfill or comply
with, any of the covenants, agreements, undertakings or obligations contained in this Agreement;

 

(c)
any claim, demand or Action made or filed by any Person that such Person is or was entitled (by contract, employment, or otherwise) to
receive any amount or property in such Person’s capacity (or asserted capacity) prior to the date hereof as a holder of equity
interests or similar synthetic or contractual interests in the Seller or any predecessor of the Seller;

 

(d)
the amount of any Taxes owed by the Seller or the members of Seller or that relate to the Business or to the Purchased Assets for any
periods on or before the Closing Date;

 

(e)
the amount of any Taxes owed by the Seller or the Shareholders or that relate to the Purchased Assets for any periods on or before the
Closing Date;

 

(f)
any Liability arising from the ownership or operation of the Purchased Assets or the Business on or prior to the Closing Date, subject
to Sections 2.1(c) and (e);

 

(g)
any Liability with respect to the Excluded Assets;

 

(h)
any Liability with respect to the Excluded Liabilities; and

 

    	 

    	 

    

 

(i)
any claim, demand or Action made or filed by Richard Anderson, or any of his successors, assigns, or Affiliates, that he or they were
or are entitled (by contract, employment, or otherwise) to receive any amount or property in his or their capacity (or asserted capacity)
prior to the date hereof as a holder of equity interests or similar synthetic or contractual interests in the Seller or any predecessor
of the Seller, or arising out of his employment relationship with the Seller or any predecessor of the Seller.

 

7.3
Indemnification by the Buyer. The Buyer agrees to defend, indemnify and hold harmless, jointly and severally, the Seller and each
of its Affiliates and their respective officers, managers, members, employees, agents, advisors, representatives, and the successors
and assigns of the foregoing (each hereinafter referred to individually as a “Seller Indemnified Person,” and
collectively as “Seller Indemnified Persons”), without duplication, from, against and in respect of all Losses
resulting from, arising out of, or caused by any of the following (collectively, “Buyer Indemnifiable Matters”):

 

(a)
any breach of any representation or warranty made by the Buyer herein; and

 

(b)
any breach by the Buyer of, or failure by the Buyer to perform, carry out or otherwise fulfill or comply with, any of the covenants,
agreements, undertakings or obligations contained in this Agreement.

 

7.4
Limitations on Indemnification .

 

(a)
Notwithstanding the foregoing provisions of this Article 7 and except as set forth in Section 7.4(d), the Seller and the
Member shall not be required to defend, indemnify or hold the Buyer Indemnified Persons harmless under Section 7.2 unless and
until the aggregate Losses for which the Seller and the Member are liable thereunder exceed a cumulative aggregate amount of $20,000
(the “Basket”), in which event the Buyer Indemnified Persons (as a group) shall, subject to the other limitations
herein, be indemnified by the Seller and the Member for all such Losses including the amount of the Basket. Except as set forth in Section
7.4(d), the aggregate liability of the Seller and the Member on account of any Seller Indemnifiable Matters shall be limited to an
aggregate amount equal to the Purchase Price (the “Cap”).

 

(b)
Notwithstanding the foregoing provisions of this Article 7 and except as set in Section 7.4(d), the Buyer shall not be
required to defend, indemnify or hold the Seller Indemnified Persons harmless under Section 7.3 unless and until the aggregate
Losses for which the Buyer is liable thereunder exceed the Basket, in which event the Seller Indemnified Persons (as a group) shall,
subject to the other limitations herein, be indemnified by the Buyer for all such Losses including the amount of the Basket. Except as
set forth in Section 7.4(d), the aggregate liability of the Buyer on account of Buyer Indemnifiable Matters shall be limited to
an aggregate amount equal to the Cap.

 

(c)
Notwithstanding the foregoing provisions of this Article 7 and except as set in Section 7.4(d), no party shall be entitled
to indemnification under this Article 7 with respect to incidental damages, special damages, exemplary damages, or punitive damages
(other than such incidental, special, exemplary, or punitive damages recoverable by a third party pursuant to a Third Party Claim).

 

(d)
Notwithstanding the foregoing, (i) neither the Cap nor the Basket shall apply to Losses resulting from, arising out of, or caused by
(1) a breach by the Buyer, the Seller or the Member of a Fundamental Representation or (2) the Seller and the Member’s indemnity
obligations set forth in Sections 7.2(c), (d), (e), (f), (g), or (h), and (ii) none of the
Cap, the Basket nor the limitations of Section 7.4(c) shall apply to Losses directly or indirectly incurred in connection with
or as a result of fraud by any of the Buyer, the Seller or the Member.

 

(e)
All references in this Agreement to “materiality,” “in all material respects,” “Material Adverse Effect”
and other terms derived therefrom shall be disregarded for purposes of determining the amount of Losses for which a party shall be indemnified
under this Article 7.

 

7.5
Indemnification Procedures. The procedures for indemnification under this Agreement shall be as follows:

 

(a)
The Buyer Indemnified Person(s) or the Seller Indemnified Person(s), as applicable (either, a “Claimant”),
shall promptly give notice to the party from which indemnification is claimed (the “Indemnifying Party”) of
any demand, suit, assertion of liability, Action or claim (a “Claim”). If the Claim relates to an Action filed
by another Person against the Claimant (a “Third Party Claim”), then such notice shall be given by the Claimant
within five (5) Business Days after written notice of such Action was received by the Claimant and shall include true, correct and complete
copies of all Claim notices and documents; provided, however, that the failure or delay of the Claimant to provide any
such notice shall not release the Indemnifying Party from any of its obligations under this Article 7 unless (and then solely
to the extent that) the Indemnifying Party is actually prejudiced by such delay.

 

    	 

    	 

    

 

(b)
With respect to Claims solely between the parties, following receipt of written notice from the Claimant of a Claim, stating with reasonable
specificity the factual basis of such Claim, the Indemnifying Party shall have forty-five (45) days to make such investigation of the
Claim as the Indemnifying Party reasonably deems necessary or desirable, and the Claimant agrees to make available to the Indemnifying
Party and its authorized representatives all information relevant and necessary to substantiate the Claim, except to the extent any attorney-client
privilege would thereby be vitiated. If the Claimant and the Indemnifying Party agree at or prior to the expiration of such forty-five
(45) day period to the validity and amount of such Claim, then, subject to Section 7.6, the Indemnifying Party shall promptly
pay to the Claimant, or if applicable deduct from the Royalty Consideration, when due, the full amount of the Claim, subject to the terms
and limitations hereof. If the Claimant and the Indemnifying Party agree at or prior to the expiration of such forty-five (45) day period
to the validity and amount of such Claim, but (i) the Claim is subject to the Basket and (ii) the Claim, together with all previous valid
Claims, does not cause the Basket to be met or exceeded, then the Indemnifying Party need not pay to the Claimant any monies with respect
to such Claim, but the full amount of the Claim shall be added to the Basket, subject to the terms and limitations hereof. If the Claimant
and the Indemnifying Party do not reach any such agreement within such forty-five (45) day period, then the Claimant may seek an appropriate
remedy at law or in equity, as applicable, subject to the terms and limitations hereof.

 

(c)
With respect to any Third Party Claim, the Indemnifying Party shall be entitled to assume and maintain control of the defense and settlement
of such Third Party Claim; provided, however, that, the Claimant shall be entitled to reasonably participate in the defense
of such Third Party Claim and to employ counsel, at its own expense, to assist in the handling of such Third Party Claim. So long as
the Indemnifying Party is defending diligently and in good faith any such Third Party Claim, Claimant shall not settle or compromise
such claim or demand. The Indemnifying Party shall have the power and authority to settle or consent to the entry of judgment of such
Third Party Claim in its sole discretion, provided that the Indemnifying Party shall not settle or compromise any Third Party
Claim without the consent of Claimant if the judgment or settlement (i) would result in the payment by Claimant of money damages for
which Claimant is not entitled to indemnification hereunder or other equitable relief against Claimant, or (ii) does not include a full
and complete release of Claimant from any and all liability thereunder.

 

7.6
Set-Off of Recovery by Buyer Indemnified Persons. The amount of any indemnifiable Loss that (x) the Seller or the Member agree
in writing is due and payable to the Buyer Indemnified Persons pursuant to this Article 7 or (y) a court of competent jurisdiction
or arbitrator finally determines is due and payable by the Seller or the Member to the Buyer Indemnified Persons pursuant to this Article
7, shall be paid or offset in the following order and priority:

 

(a)
First, such indemnifiable Losses shall be paid out of amounts payable as Royalty Consideration, if any, payable in the next two installments
(or, at the Buyer’s election, future installments); and

 

(b)
Second, in the event that the amounts payable as Royalty Consideration in the next two installments (or, at the Buyer’s election,
future installments) is not sufficient to fully pay all such indemnifiable Losses, any shortfall may be satisfied by payment from the
Seller or the Member to the applicable Buyer Indemnified Persons.

 

7.7
Withholding Rights. Each party shall be entitled to deduct and withhold from any amounts payable pursuant to this Agreement such
amount as it is required to deduct and withhold with respect to the making of such payment under the Code or other applicable Law. To
the extent that amounts are so withheld, such withheld amounts shall be treated for purposes of this Agreement as having been paid to
the relevant payee in respect of which such deduction and withholding was made.

 

7.8
Determination of Loss Net of Other Recoveries. The amount of Losses recoverable by any Claimant hereunder with respect to a particular
Claim shall be net of any amounts actually recovered or recoverable from insurance recoveries with respect thereto, less any costs related
to obtaining such recoveries.

 

    	 

    	 

    

 

7.9
Exclusive Remedy. Following the Closing, the indemnification and other remedies set forth under this Article 7 shall constitute
the sole and exclusive remedies of the parties with respect to any matters arising under or relating to this Agreement, except in the
case of fraud by any party or the right of any party to seek injunctive or other equitable relief pursuant to Section 8.13.

 

7.10
Tax Treatment. For purposes of Tax reporting, the parties shall treat all payments and set-off made by or deemed to be made by
a party under this Article 7 as adjustments to the consideration paid by the Buyer, unless otherwise required by applicable Law.

 

article
8: MISCELLANEOUS

 

8.1
Entire Agreement; Amendment. This Agreement, the Schedules and Exhibits hereto and all documents and certificates executed and
delivered pursuant to this Agreement constitute the entire agreement and understanding among the parties pertaining to the subject matter
hereof, and supersede all prior and contemporaneous agreements (including any term sheet, letter of intent, or confidentiality or non-disclosure
agreement between or among the parties or their respective Affiliates), understandings, negotiations and discussions of the parties,
whether oral or written, and there are no warranties, representations or other covenants or agreements between or among the parties in
connection with the subject matter hereof, except as specifically set forth herein. No amendment, supplement, modification, waiver or
termination of this Agreement or provision hereof shall be binding unless executed in writing by the party to be bound thereby.

 

8.2
Extension; Waiver. At any time prior to the Closing, the Seller, on the one hand, and the Buyer, on the other hand, may, to the
extent legally allowed, (a) extend the time for the performance of any of the obligations of the other party hereto, (b) waive any inaccuracies
in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto, and (c) waive
compliance with any of the agreements or conditions for the benefit of such party contained herein. Any agreement on the part of a party
hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. Such
extension or waiver shall not be deemed to apply to any time for performance, inaccuracy in any representation or warranty, or noncompliance
with any agreement or condition, as the case may be, other than that which is specified in the extension or waiver. The failure of any
party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights.

 

8.3
Benefit; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and permitted assigns. No party to this Agreement may, directly or indirectly, by merger, operation of law, or otherwise, assign either
this Agreement or any of its rights, interests or obligations under this Agreement without the prior written consent of the other parties
hereto; provided, however, that the Buyer or Seller may, without the consent of the other Party assign all or any portion
of its rights under this Agreement and the related documents delivered at Closing at any time to an Affiliate, which for this purpose
shall include any equity owner of Seller, or, on or after the Closing, any other Person in connection with a sale of all or substantially
all of its assets, or the Business, however effected. Any purported assignment or delegation in violation of the preceding provisions
of this Section 8.3 will be null and void.

 

8.4
Notices. All communications, notices, demands and requests required or permitted to be given under the provisions of this Agreement
shall be (a) in writing, (b) sent by confirmed facsimile, electronic mail, delivered by personal delivery or sent by commercial delivery
service or certified mail, return receipt requested, (c) deemed to have been given on the date sent by facsimile or electronic mail if
sent on a Business Day before 5:00 p.m. local time of the recipient, and if not then on the next Business Day immediately thereafter;
the date of personal delivery; or the date set forth in the records of the commercial delivery service or on the return receipt, and
(d) addressed as follows, unless and until any of such parties notifies the other in accordance with this Section 8.4 of a change
of address or change of facsimile number:

 

(i)
If to the Seller:

Perfekt
Beauty Holdings LLC

6059
Bristol Parkway

Culver
City, California 90230 USA

Attention:
Maurice Rasgon

Telephone
No. (310) 397-9300

Facsimile
No.: (310) 397-9399

E-mail:
Maurice@cdgla.net

 

    	 

    	 

    

 

With
a required copy that shall not constitute notice to:

 

Stradling
Yocca Carlson & Rauth, P.C.

660
Newport Center Drive, Suite 1600

Newport
Beach, CA 92660

Attention:
Christopher D. Ivey

Telephone
No.: (949) 725-4121

Facsimile
No.: (949) 823-5121

E-mail:
civey@sycr.com

 

(ii)
If to the Member:

CDG
Holdings, LLC

6059
Bristol Parkway

Culver
City, California 90230 USA

Attention:
Maurice Rasgon

Telephone
No. (310) 397-9300

Facsimile
No.: (310) 397-9399

E-mail:
Maurice@cdgla.net

 

With
a required copy that shall not constitute notice to:

Stradling
Yocca Carlson & Rauth, P.C.

660
Newport Center Drive, Suite 1600

Newport
Beach, CA 92660

Attention:
Christopher D. Ivey

Telephone
No.: (949) 725-4121

Facsimile
No.: (949) 823-5121

E-mail:
civey@sycr.com

 

(iii)
If to the Buyer:

Synergy
CHC Corp.

865
Spring Street

Westbrook,
ME 04092

Attention;
President

Telephone
No.______________

Facsimile
No.:_______________

E-mail:_________________________

 

With
a required copy that shall not constitute notice to:

 

Wyrick
Robbins Yates & Ponton LLP

4101
Lake Boone Trail, Suite 300

Raleigh,
North Carolina 27607

Attention:
Zachary R. Bishop

Telephone
No.: (919) 781-4000

Facsimile
No.: (919) 781-4865

E-mail:
zbishop@wyrick.com

 

8.5
Counterparts. This Agreement may be executed and delivered in several counterparts, each of which shall be deemed original, but
such counterparts shall together (when executed and delivered) constitute but one and the same instrument. This Agreement may be executed
and delivered in counterpart signature pages executed and delivered via facsimile or other electronic transmission in Adobe portable
document format (also known as “PDF”), and any such counterpart executed and delivered via facsimile or other
electronic transmission in PDF shall be deemed an original for all intents and purposes. Any party who delivers such a signature page
agrees to later deliver an original executed counterpart to any party who requests it, promptly upon request.

 

    	 

    	 

    

 

8.6
Headings. The Table of Contents and Article, Section and other headings set forth in this Agreement and the Schedules and Exhibits
hereto are inserted or used for convenience of reference only and shall not control or affect the meaning or construction of the provisions
of this Agreement.

 

8.7
Severability. If any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid, illegal
or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by applicable Law so long as the economic or legal
substance of the Transactions is not affected in any manner materially adverse to any party. Upon such determination that any term or
other provision is invalid or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable manner to the end that the Transactions are fulfilled to the
greatest extent possible.

 

8.8
No Reliance. Except as expressly set forth in this Agreement, no Person other than any party hereto is entitled to rely on any
of the representations, warranties, covenants, agreements, rights or remedies of the parties under or by virtue of this Agreement. No
party assumes any Liability to any such other Person because of any reliance on the representations, warranties, agreements, rights or
remedies of the parties under or by virtue of this Agreement.

 

8.9
Governing Law; Waiver of Jury Trial.

 

(a)
This Agreement shall be governed, construed and enforced in accordance with the Laws of the State of Delaware applicable to contracts
made and performed in that State without giving effect to any choice or conflict of law principle, provision or rule, including all matters
of construction, interpretation, validity and performance.

 

(b)
Each party acknowledges and agrees that any Actions (in contract, in tort or otherwise) arising
out of or relating to this Agreement, any transactions contemplated hereby, any relationships between or among the parties hereunder
and any disputes with respect to any of the foregoing is likely to involve complicated and difficult issues, AND THEREFORE IT HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUCH ACTION. NO PARTY TO THIS
AGREEMENT OR ANY ASSIGNEE, SUCCESSOR, HEIR OR PERSONAL REPRESENTATIVE OF A PARTY MAY SEEK A JURY TRIAL IN ANY ACTION, LAWSUIT, PROCEEDING,
COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER AGREEMENTS OR THE DEALINGS
OR THE RELATIONSHIP BETWEEN THE PARTIES. NO PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION, IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH
ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED. THE PROVISIONS OF THIS SECTION 8.9(b) HAVE BEEN FULLY DISCUSSED
BY THE PARTIES HERETO, AND THESE PROVISIONS WILL BE SUBJECT TO NO EXCEPTIONS. NO PARTY HERETO HAS IN ANY WAY AGREED WITH OR REPRESENTED
TO ANY OTHER PARTY HERETO THAT THE PROVISIONS OF THIS SECTION 8.9(b) WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 

    	 

    	 

    

 

8.10
Consent to Jurisdiction and Service of Process. EACH PARTY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
IN THE STATE OF DELAWARE HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS
OR DISPUTES BETWEEN THE PARTIES PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE OTHER
TRANSACTION DOCUMENTS, EACH PARTY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
SUCH COURT, AND EACH PARTY HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE
OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS SUCH COURT DEEMS APPROPRIATE.
EACH PARTY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT
SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT THE ADDRESS
SET FORTH IN SECTION 8.4 OF THIS AGREEMENT AND THAT SERVICE SO MADE WILL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S
ACTUAL RECEIPT THEREOF OR FIVE BUSINESS DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID.

 

8.11
No Strict Construction. The parties have participated jointly in the negotiation and drafting of this Agreement, and the language
used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent. In the event an ambiguity
or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption
or burden of proof will arise favoring or disfavoring any Person by virtue of the authorship of any of the provisions of this Agreement.

 

8.12
Expenses. Each party shall bear his, her or its own costs and expenses (including legal fees and expenses) incurred in connection
with this Agreement and the Transactions.

 

8.13
Specific Performance. The parties hereto acknowledge and agree that the failure of any party to perform its agreements and covenants
hereunder, including such party’s failure to take all actions as are necessary on such party’s part in accordance with the
terms and conditions of this Agreement, will cause irreparable injury to the other parties, for which damages, even if available, will
not be an adequate remedy. Accordingly, each party hereby consents to the issuance of injunctive relief by any court of competent jurisdiction
to compel performance of such party’s obligations and to the granting by any court of the remedy of specific performance of such
party’s obligations hereunder.

 

8.14
Publicity. The Seller and the Member shall not issue any press release or make any public announcement relating to the subject
matter of this Agreement without the prior written consent of Buyer. Notwithstanding the foregoing, nothing contained in this Agreement
shall prevent any party, after notification to the other party to the extent legally permissible, from making any announcement or publication
required by applicable Law or from making any filings with Governmental Authorities that, based on advice of legal counsel, is required
in connection with the execution and delivery of this Agreement or the consummation of the Transactions.

 

8.15
Further Assurances. From time to time after the Closing Date, upon the reasonable request of any party hereto, the other party
or parties hereto shall execute and deliver or cause to be executed and delivered such further instruments of conveyance, assignment,
transfer, acceptance and assumption, and take such further action as the requesting party may reasonably request in order to fully effectuate
the purposes, terms and conditions of this Agreement. Subject to the terms and conditions provided in this Agreement, following the Closing,
each of the parties hereto shall use commercially reasonable efforts to take promptly, or cause to be taken, all actions, and to do promptly,
or cause to be done, all things necessary, proper or advisable under applicable Laws and regulations to consummate and make effective
the Transactions and to effect all necessary registrations and filings and to remove any injunctions or other impediments or delays,
legal or otherwise, in order to consummate and make effective the Transactions for the purpose of securing to the parties hereto the
benefits contemplated by this Agreement.

 

8.16
Sales, Transfer and Documentary Taxes, etc.. The Seller will pay all federal, state and local sales, documentary and other transfer
taxes, if any, due as a result of the purchase, sale or transfer of the Purchased Assets in accordance herewith whether imposed by law
on the Seller or the Buyer, and the Seller and the Members will indemnify, reimburse and hold harmless the Buyer in respect of the liability
for payment of or failure to pay any such taxes or the filing of or failure to file any reports required in connection therewith.

 

*
* * * *

THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK;

THE
SIGNATURE PAGES FOLLOW

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement as of the day and year first written above.

	 	SELLER:
	 	 
	 	Perfekt
    Beauty Holdings LLC
	 	 	 
	 	By:	 
	 	 	_______________,
    President
	 	 	 
	 	MEMBER:
	 	 
	 	CDG
    Holdings LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 
	 	 	 
	 	BUYER:
	 	 
	 	Synergy
    CHC Corp.
	 	 	 
	 	By:	 
	 	 	Jack
    Ross, Chief Executive Officer

 

Signature
Page to Asset Purchase Agreement

 

    	 

    	 

    

 

ANNEX
A

 

Defined
Terms

 

Capitalized
terms used in the Agreement to which this Annex A is attached shall have (unless the context shall otherwise require) the
following respective meanings, and all references to Sections, Exhibits or Schedules in the following definitions shall refer to Sections,
Exhibits or Schedules of or to the Agreement:

 

“Action”
shall mean any claim, demand, charge, complaint, notice, action, suit, litigation, arbitration, inquiry, proceeding or investigation
of any matter by or before any Governmental Authority.

 

“Adjustment
Amount” means the aggregate value of the of the following items as of the close of business on the day prior to the Closing
Date: (i) the wholesale value of the Seller’s useable, new and unsold Inventory; (ii) the dollar amount equal to $56,085.57; and
(iii) the dollar amount (expressed as a positive number) of certain collectible accounts receivable of the Seller.

 

“Adverse
Event” means any untoward or negative occurrence (including, without limitation, physical injury) related to the Business
or the use of the Products.

 

“Affiliate”
shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common Control with
such Person.

 

“Agreement”
shall mean this Asset Purchase Agreement, together with the Schedules and Exhibits attached hereto, as the same shall be amended and/or
supplemented from time to time in accordance with the terms hereof.

 

“Annual
Financial Statements” shall have the meaning set forth in Section 3.9(a).

 

“Assumed
Contracts” shall have the meaning set forth in Section 2.1(c).

 

“Assumed
Liabilities” shall have the meaning set forth in Section 2.1(c).

 

“Basket”
shall have the meaning set forth in Section 7.4(a).

 

“Business”
shall have the meaning set forth in the recitals.

 

“Business
Day” shall mean any day excluding Saturdays, Sundays and any day that banking institutions located in New York City are
authorized or required by applicable Law or other action of a Governmental Authority to close.

 

“Buyer”
shall have the meaning set forth in the preamble.

 

“Buyer
Indemnifiable Matters” shall have the meaning set forth in Section 7.3.

 

“Buyer
Indemnified Person” shall have the meaning set forth in Section 7.2.

 

“Buyer
Related Agreements” shall have the meaning set forth in Section 4.2.

 

“CDG”
shall have the meaning set forth in the preamble.

 

“Cap”
shall have the meaning set forth in Section 7.4(a).

 

“Claim”
shall have the meaning set forth in Section 7.5(a).

 

“Claimant”
shall have the meaning set forth in Section 7.5(a).

 

    	 

    	 

    

 

“Closing”
shall have the meaning set forth in Section 2.5.

 

“Closing
Date” shall have the meaning set forth in Section 2.5.

 

“Closing
Payment” shall have the meaning set forth in Section 2.2(b)(ii).

 

“Closing
Schedule” shall have the meaning set forth in Section 2.3(a).

 

“COBRA”
shall have the meaning set forth in Section 3.17(b).

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Consents”
shall mean the consents, permits or approvals of, and filings or notices to, Government Authorities and other Persons necessary to consummate
the Transactions.

 

“Contracts”
shall mean all contracts, leases, arrangements, indentures, notes, bonds, mortgages, guarantees, loans, instruments, commitments or other
agreements (including leases for personal or real property and employment agreements), written or oral (including any amendments, supplements,
restatements, extensions and other modifications thereto), of the Seller or to which the Seller is a party and that are in effect as
of the date of this Agreement.

 

“Control”
(including, with correlative meanings, the terms “controlled by,” “controlling” and “under common control
with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise.

 

“Employees”
shall have the meaning set forth in Section 3.16(a).

 

“Encumbrance”
means any claim, charge, easement, encumbrance, lease, covenant, security interest, mortgage, Lien, option, pledge, rights of others,
restriction (whether on voting, sale, transfer, disposition or otherwise), or other encumbrance whatsoever, whether imposed by agreement,
understanding, Law, equity or otherwise, except for any restrictions on transfer generally arising under any applicable federal or state
securities law.

 

“Environmental
Laws” shall mean any and all federal, state, provincial and local Laws, rules and regulations, including statutes, regulations,
ordinances, codes, orders and rules, as amended, any judicial or administrative interpretation thereof, including any consent decree
or judgment, relating to pollution or the protection of the environment, natural resources, or natural resource damages, including those
relating to the Release, use, handling, transportation, treatment or storage of Hazardous Materials. Environmental Laws include the Federal
Solid Waste Disposal Act, the Federal Clean Air Act, the Federal Clean Water Act, the Federal Resource Conservation and Recovery Act
of 1976, the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Federal Insecticide, Fungicide
& Rodenticide Act, the Toxic Substances Control Act, the Federal Oil Pollution Act of 1990, the Federal Safe Drinking Water Act,
the Federal Noise Control Act of 1972, the Federal Pollution Prevention Act of and 1990, and the Federal Emergency Planning & Community
Right-To-Know Act, each as amended, and regulations of the Environmental Protection Agency, regulations of the Nuclear Regulatory Agency
and regulations of any state department of natural resources or state environmental protection agency. Environmental Laws also include
any permit, approval, license or other authorization required under any applicable Environmental Law.

 

“Equity
Plan” shall have the meaning set forth in Section 4.4.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended.

 

“Estimated
Purchase Price” shall have the meaning set forth in Section 2.2(a)(i).

 

“Exchange
Act” shall have the meaning set forth in Section 4.4.

 

    	 

    	 

    

 

“Exchange
Act Reports” shall have the meaning set forth in Section 4.4.

 

“Excluded
AR” shall have the meaning set forth in Section 2.3(a)(iii).

 

“Excluded
Assets” shall have the meaning set forth in Section 2.1(a).

 

“Excluded
Liabilities” shall have the meaning set forth in Section 2.1(d).

 

“Exhibits”
shall mean those exhibits referenced in this Agreement, which exhibits are hereby incorporated and made a part hereof.

 

“Final
Adjustment Amount” shall have the meaning set forth in Section 2.3(a)(i).

 

“Final
Adjustment Amount Overage” means the amount, if any, by which Final Adjustment Amount exceeds the Preliminary Adjustment
Amount.

 

“Final
Adjustment Amount Underage” means the amount, if any, by which Final Adjustment Amount is less than Preliminary Adjustment
Amount.

 

“Final
Closing Payment” shall have the meaning set forth in Section 2.3(a)(ii).

 

“Financial
Statements” shall have the meaning set forth in Section 3.9(a).

 

“FLSA”
shall have the meaning set forth in Section 3.16(a).

 

“Fundamental
Representations” shall have the meaning set forth in Section 7.1.

 

“GAAP”
shall mean generally accepted accounting principles as in effect in the United States.

 

“Governmental
Authority” means (i) any federal, state, provincial, regional, county, city, municipal or local government, whether foreign
or domestic or (ii) governmental or quasi-governmental authority of any nature, including any regulatory or administrative agency, commission,
department, board, bureau, court, tribunal, arbitrator, arbitral body, agency, branch, official entity or other administrative or regulatory
body obtaining authority from any of the foregoing, including courts, public utilities, sewer authorities and any supra-national organization,
state, county, city or other political subdivision.

 

“Governmental
Order” shall mean any order, writ, judgment, citation, injunction, decree, ruling, charge, stipulation, determination or
award entered by any Governmental Authority.

 

“Guarantee”
means any Contract of guarantee, assumption or endorsement or any other like commitment of the obligations, liabilities (fixed, contingent
or otherwise) or indebtedness of another Person.

 

“Hazardous
Material” shall mean (i) any material, substance or waste defined or regulated as hazardous or toxic or as a pollutant
or contaminant, as those terms are defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended,
42 U.S.C. Sections 9601 et seq., or any other applicable Environmental Laws, including toxic materials or harmful physical agents,
as defined in the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. Section 651 et seq., and (ii) petroleum and
petroleum products, byproducts or breakdown products, radioactive materials, asbestos, and polychlorinated biphenyls and toxic mold.

 

“Health
and Safety Laws” shall mean any and all federal, state and local Laws, rules and regulations, including statutes, regulations,
ordinances, codes, orders and rules, as amended, any judicial or administrative interpretation thereof, including any consent decree
or judgment, relating to health and safety, including those relating to worker health and safety. Health and Safety Laws include the
Occupational Safety and Health Act of 1970, as amended, and regulations of the Occupational Safety and Health Administration and of any
similar state department or agency. Health and Safety Laws also include any permit, approval, license or other authorization required
under any applicable Health and Safety Laws.

 

    	 

    	 

    

 

“Immigration
Laws” shall have the meaning set forth in Section 3.16(d).

 

“Indebtedness”
shall mean any of the following Liabilities: (i) any indebtedness for borrowed money or issued in substitution for or exchange of indebtedness
for borrowed money, (ii) any indebtedness evidenced by any note, bond, debenture or other debt instrument, (iii) any Liability with respect
to deferred compensation, bonuses or commissions or the buy-out or earn-out payments or for the deferred purchase price of property or
the provision of services with respect to which a Person is liable, contingently or otherwise, as obligor or otherwise, whether accrued
or otherwise, (iv) any commitment by which a Person insures a creditor against loss, (v) any outstanding letters of credit, indebtedness
guaranteed in any manner by a Person (including guarantees in the form of an agreement to repurchase or reimburse) and any other off-balance
sheet indebtedness, (vi) any Liabilities under capitalized leases with respect to which a Person is liable, contingently or otherwise,
as obligor, guarantor or otherwise, (vii) bank overdrafts or checks issued in excess of deposits, (viii) any amounts payable by the Seller,
including with respect to accrued and unpaid dividends or other amounts due with respect to the equity interests of the Seller, (ix)
any costs, fees, expenses or other Liabilities of the Seller (to the extent not paid prior to the Closing Date) incurred in connection
with, or otherwise triggered in whole or in part by, the Transactions, (x) any accrued interest (payable or otherwise), prepayment penalties
or obligations, premiums or make-whole amounts related to any of the foregoing clauses and (xi) guarantees in respect of any obligations
of the type described in the foregoing clauses (i) through (x) of this definition.

 

“Indemnifying
Party” shall have the meaning set forth in Section 7.5(a).

 

“Independent
Auditor” shall have the meaning set forth in Section 2.3(d).

 

“Independent
Contractors” shall have the meaning set forth in Section 3.16(b).

 

“Information
Privacy Laws” shall have the meaning set forth in Section 3.17(f)

 

“Intellectual
Property” shall mean all (i) inventions and discoveries (whether or not patentable or reduced to practice), patents, patent
applications, invention disclosures and statutory invention registrations, (ii) Trademarks, (iii) published and unpublished works of
authorship, whether copyrightable or not, including websites, software programs, programming material and jingles, copyrights therein
and thereto, registrations, applications, renewals and extensions therefor and thereof, and any and all rights associated therewith,
email addresses, phone and fax numbers, marketing materials, business names, source codes, object codes, computer software programs,
databases, (iv) confidential and proprietary information, including trade secrets, know-how, invention rights, methods, designs, processes,
procedures and technology, (v) rights of privacy and publicity, and (vi) the entire Business marketing database consisting of all available
customer information and all marketing, advertising and promotional materials, including logos, colors, videos, booklet designs, catalogs,
solicitations, email templates, advertisements and all other Business marketing materials (whether in draft or final form) (collectively,
the “Marketing Materials”) (vii) all domain names and (viii) any and all other proprietary rights, in each
case, whether written or unwritten, and all goodwill associated with, and all derivatives, improvements and refinements of, any of the
foregoing.

 

“Interim
Financial Statements” shall have the meaning set forth in Section 3.9(a).

 

“Inventory”
shall have the meaning set forth in Section 3.28.

 

“IRS”
shall mean the United States Internal Revenue Service.

 

“Knowledge
of the Seller” shall mean the actual knowledge, after reasonable inquiry of the affairs, properties and business of the
Seller, of Maurice Rasgon and Alison Kohlenstein.

 

“Law”
shall mean any constitution, treaty, statute, law, ordinance, regulation, judgment, decree, injunction, ruling, Governmental Order, rule,
requirement, stipulation or determination issued, promulgated or entered by or with any Governmental Authority (including common law).

 

“Leases”
shall have the meaning set forth in Section 3.8(b).

 

    	 

    	 

    

 

“Liability”
shall mean any liability or obligation, whether known or unknown, whether asserted or unasserted, whether absolute, contingent, fixed
or otherwise, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due, regardless of when
asserted, including any liability arising under any Law, Action or Governmental Order and any liability for Taxes.

 

“Lien”
shall mean any mortgage, deed of trust, pledge, security interest, encumbrance, adverse claim of ownership or use, lease, option, easement,
reversion, violation, adverse claim, servitude, hypothecation, restriction on transfer (such as a right of first refusal or other similar
right), defect of title, lien or charge of any kind, whether voluntarily incurred or arising by operation of Law or otherwise, affecting
any assets or property.

 

“Losses”
shall mean all losses, damages, amounts paid in settlement, costs, expenses, fines, deficiencies, Liabilities, obligations, Taxes and
Actions (whether or not resulting from Third Party Claims), including interest and penalties with respect thereto and out of pocket expenses
and reasonable attorneys’ and accountants’ fees.

 

“Marketing
Materials” shall have the definition set forth in the definition of Intellectual Property.

 

“Material
Adverse Effect” shall mean any event, change, circumstance, occurrence, effect or state of facts that has, or could reasonably
be expected to have, individually or in the aggregate with all other effects, changes and events, a materially adverse effect or impact
on (i) the condition (financial or otherwise), assets, results of operations, customer or employee relations, prospects or cash flow
of the Buyer or Seller, as applicable, or (ii) the ability of the Buyer or Seller, as applicable, to perform its obligations under this
Agreement.

“Material
Contracts” shall have the meaning set forth in Section 3.6(a).

 

“Member”
shall have the meaning set forth in the preamble.

 

“Most
Recent Balance Sheet” shall have the meaning set forth in Section 3.9(a).

 

“Most
Recent Fiscal Month End” shall have the meaning set forth in Section 3.9(a).

 

“Negotiation
Period” shall have the meaning set forth in Section 2.3(d).

 

“Net
Sales” shall mean total invoiced billing for sales of only Products sold under the “Per-fekt” mark, less (i)
freight and transportation (not to exceed 10%), (ii) all trade, quantity and cash discounts, (iii) all credits and allowances actually
granted on Products due to returns including warranty replacements, rejections, billing errors, and retroactive price reductions, and
(iv) sale, value-added and use taxes, and equivalent taxes actually paid on Products.

 

“Notice
of Concurrence” shall have the meaning set forth in Section 2.3(b).

 

“Notice
of Disagreement” shall have the meaning set forth in Section 2.3(b).

 

“Organizational
Documents” shall mean the legal document(s) by which any Person (other than an individual) establishes its legal existence
or which govern its internal affairs. For example, the “Organizational Documents” of a corporation are its articles or certificate
of incorporation and bylaws, the “Organizational Documents” of a limited partnership are its certificate of limited partnership
and limited partnership agreement and the “Organizational Documents” of a limited liability company are its articles of organization
and operating agreement.

 

“Buyer”
shall have the meaning set forth in the preamble.

 

“PDF”
shall have the meaning set forth in Section 8.5.

 

“Permit”
shall mean any franchise, grant, authorization, agreement, license, permit, qualification, registration, easement, variance, exception,
consent, clearance, certificate, approval, order, underground storage tank or other trust fund coverage or similar rights issued, granted
or obtained by or from any Governmental Authority.

 

    	 

    	 

    

 

“Permitted
Encumbrance” shall mean: (i) Liens for Taxes not yet due and payable; (ii) materialmen’s, mechanics’, workmen’s,
repairmen’s, landlord’s or other like non-consensual Liens arising in the course of construction or in the ordinary course
of operations or maintenance and securing amounts not yet due and payable or which are being contested in good faith and by appropriate
proceedings, if appropriate reserves or accruals with respect thereto are maintained in accordance with GAAP; and (iii) easements, rights-of-way,
zoning, building codes and other encumbrances on Real Property which do not interfere with the business conducted thereon.

 

“Person”
shall mean any natural person, general or limited partnership, corporation, firm, limited liability company or partnership, association,
trust or other entity, group (as such term is used in Section 13 of the Exchange Act) or organization, including a Governmental Authority,
or other legal entity.

 

“Preliminary
Adjustment Amount” has the meaning set forth in Section 2.2(d).

 

“Products”
shall have the meaning set forth the recitals.

 

“Purchase
Price” shall have the meaning set forth in Section 2.2(a).

 

“Purchased
Assets” shall have the meaning set forth in Section 2.1(a).

 

“Records”
shall mean all books of account, files, databases, documents and other records in the Seller’s possession or control pertaining
to the Business.

 

“Related
Parties” shall have the meaning set forth in Section 3.20.

 

“Release”
shall mean disposing, discharging, injecting, spilling, leaking, leaching, dumping, emitting, escaping, emptying, seeping, placing and
the like into or upon any land or water or air or otherwise entering into the environment.

 

“Remedial
Action” shall mean all action to (i) clean up, remove, treat or handle in any other way Hazardous Materials in the environment;
(ii) restore or reclaim the environment or natural resources; (iii) prevent the Release of Hazardous Materials so that they do not migrate,
endanger or threaten to endanger public health or the environment; (iv) abate, encapsulate or remove any Hazardous Materials containing
any building material, facility, equipment or transformer; or (v) perform remedial investigations, feasibility studies, corrective actions,
closures and postremedial or postclosure studies, investigations, operations, maintenance and monitoring.

 

“Royalty
Consideration” shall have the meaning set forth in Section 2.2(c).

 

“SEC”
shall have the meaning set forth in Section 4.4.

 

“Schedules”
shall have the meaning set forth in the preamble of Article 3 and are hereby incorporated herein and made a part hereof.

 

“Securities
Act” shall mean the United States Securities Act of 1933, as amended.

 

“Self-Insured
Employee Plan” shall have the meaning set forth in Section 3.17(l).

 

“Seller”
shall have the meaning set forth in the preamble.

 

“Seller
Equity Interests” shall have the meaning set forth in Section 3.4.

 

“Seller
Indebtedness Amount” shall have the mening set forth in Section 2.2(b)(i).

 

“Seller
Indemnifiable Matters” shall have the meaning set forth in Section 7.2.

 

    	 

    	 

    

 

“Seller
Indemnified Persons” shall have the meaning set forth in Section 7.3.

 

“Seller
Intellectual Property” shall have the meaning set forth in Section 3.7(a).

 

“Seller
Leased Real Property” shall have the meaning set forth in Section 3.8(a).

 

“Seller
Related Agreements” shall have the meaning set forth in Section 3.2.

 

“Subsidiary”
of any party shall mean any Person of which (i) 50% or more of the outstanding voting securities are directly or indirectly owned by
such party or one of its Subsidiaries; (ii) such party or any Subsidiary of such party is a general partner, managing member or managing
director; or (iii) such party and/or one or more of its Subsidiaries holds voting power to elect a majority of the board of directors
or any similar governing body.

 

“Survival
Period” shall have the meaning set forth in Section 7.1.

 

“Tax”
shall mean any federal, state, provincial, local or foreign income, gross receipts, license, payroll, employment, excise, customs, severance,
stamp, occupation, premium, windfall profit, environmental (including taxes under Code Section 59A), capital stock, franchise, profits,
inventory, withholding, social security (or similar), unemployment, disability, real property, personal property, ad valorem, sales,
use, transfer, registration, value-added, alternative or add on minimum, estimated or other tax levy, duty, impost, fee or similar charge
of any kind whatsoever imposed by any Governmental Authority, including any interest, penalty, fine or addition thereto or imposed in
connection therewith, whether disputed or not.

 

“Tax
Return” shall mean any return, report, claim for refund, estimate, statement, form or other document (including elections,
declarations, amendments, schedules, information returns or attachments thereto) relating to or required to be filed with a Governmental
Authority or other Person with respect to Taxes.

 

“Third
Party Claim” shall have the meaning set forth in Section 7.5(a).

 

“Trademarks”
shall mean trademarks, service marks, domain names, uniform resource locators, websites, trade dress, slogans, logos, symbols, trade
names, brand names and other identifiers of source or goodwill, including registrations and applications for registration thereof and
including the goodwill symbolized thereby or associated therewith.

 

“Transactions”
shall have the meaning set forth in Section 3.2.

 

“Treasury
Regulations” shall mean the final and temporary regulations promulgated by the United States Department of the Treasury
under and pursuant to the Code.

 

“WARN
Act” shall have the meaning set forth in Section 3.16(g).Exhibit
10.18

 

AMENDED
AND RESTATED LOAN AGREEMENT

 

Dated
as of August 9, 2017

 

between

 

KNIGHT
THERAPEUTICS (BARBADOS) INC.

 

as
Lender

 

–
and –

 

SYNERGY
CHC CORP. 

 

as
Borrower

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE
    1 - DEFINITIONS	1
	 	 
	1.1	General
    Definitions.	1
	1.2	Schedules
    and Exhibits.	19
	1.3	Accounting
    Terms and Definitions.	20
	1.4	Supplements,
    Re-enactments, Etc.	20
	1.5	Headings
    of Subdivisions. 	20
	1.6	Gender
    and Number.	20
	1.7	Monetary
    References.	20
	1.8	Actions
    on Days Other Than Business Days.	21
	 	 	 
	ARTICLE
    2 - TERMS OF THE LOAN	21
	 	 
	2.1	The
    Loan.	21
	2.2	Additional
    Tranches	21
	 	 	 
	ARTICLE
    3 - PAYMENT	23
	 	 
	3.1	Payments
    on Principal	23
	3.2	Prepayments.	23
	3.3	General
    Matters	24
	 	 	 
	ARTICLE
    4 - INTEREST, FEES AND CHARGES	24
	 	 
	4.1	Rate
    of Interest.	24
	4.2	Payment
    of Interest.	24
	4.3	Default
    Rate of Interest.	25
	4.4	Computation
    of Interest and Fees.	25
	4.5	Maximum
    Interest.	25
	4.6	Origination
    Fee.	25
	4.7	Work
    Fee	25
	4.8	Success
    Fees	25
	4.9	Lender’s
    Expenses.	26
	4.10	Illegality.	26
	4.11	Increased
    Costs.	27
	 	 	 
	ARTICLE
    5 - TERMINATION AND REDUCTION	27
	 	 
	5.1	Termination.	27
	5.2	Continuing
    Obligations.	27
	 	 	 
	ARTICLE
    6 - SECURITY AND COLLATERAL	28
	 	 
	6.1	Security
    Delivered on or Prior to the Closing Date.	28
	6.2	Further
    Assurances	29
	6.3	Security
    Effective Notwithstanding Date of Loan.	29
	6.4	No
    Merger.	29
	6.5	Release
    of Security. 	29

 

    	i

    	 

    

 

Table
of Contents (continued)

 

	 	 	Page
	 	 	 
	ARTICLE
    7 - REPRESENTATIONS AND WARRANTIES	30
	 	 
	7.1	Representations
    and Warranties	30
	7.2	Survival
    of Representations and Warranties.	41
	 	 	 
	ARTICLE
    8 - SCHEDULES AND REPORTS	41
	 	 
	8.1	Financial
    Information	41
	8.2	Compliance
    Certificate. 	42
	8.3	Other
    Matters.	42
	 	 	 
	ARTICLE
    9 - COVENANTS	43
	 	 
	9.1	Covenants	43
	9.2	Negative
    Covenants.	49
	9.3	Entitled
    to Perform Covenants.	52
	 	 	 
	ARTICLE
    10 - CONDITIONS PRECEDENT	52
	 	 
	10.1	Conditions
    Precedent to Loan.	52
	 	 	 
	ARTICLE
    11 - EVENTS OF DEFAULT	54
	 	 
	11.1	Events
    of Default.	54
	11.2	Acceleration
    and Termination of Rights	57
	11.3	Remedies
    Cumulative and Waivers.	57
	11.4	Saving.
    	58
	11.5	Third
    Parties	58
	11.6	Set-Off
    or Compensation.	58
	 	 	 
	ARTICLE
    12 - INDEMNIFICATION, ETC	59
	 	 
	12.1	General
    Indemnity.	59
	12.2	Taxes.	59
	 	 	 
	ARTICLE
    13 - GENERAL PROVISIONS	60
	 	 
	13.1	Notice.	60
	13.2	Choice
    of Governing Law and Construction.	61
	13.3	Attornment.	61
	13.4	Press
    Releases.	62
	13.5	Modification
    and Benefit of Agreement.	62
	13.6	Power
    of Attorney.	62
	13.7	Waivers,
    Confidentiality, Information Sharing. 	62
	13.8	Timing
    of Payments.	63
	13.9	Judgment
    Currency.	63
	13.10	Severability.
    	63
	13.11	Conflicts.	63
	13.12	Entire
    Agreement.	63
	13.13	Counterpart
    Execution/Electronic Delivery	63
	13.14	Interpretation.	63

 

    	ii

    	 

    

 

AMENDED
AND RESTATED LOAN AGREEMENT

 

THIS
AMENDED AND RESTATED LOAN AGREEMENT is made with effect as of the ninth (9th) day of August, 2017, by and between SYNERGY
CHC CORP., a corporation formed under the laws of the State of Nevada (the “Borrower”) and KNIGHT THERAPEUTICS
(BARBADOS) INC., a corporation formed under the laws of Barbados, and one or more Persons to whom the foregoing or its permitted
assigns may from time to time assign an interest in the Loan Documents (as defined below) (collectively, the “Lender”);

 

RECITALS:

 

WHEREAS
the Borrower (then “known as Synergy Strips Corp.) and Lender entered into that certain loan agreement made as of January 21,
2015 (the “Initial Loan Agreement”), pursuant to which Lender extended a loan to the Borrower in the principal amount
of $6,000,000 (the “First Tranche”);

 

WHEREAS
the Borrower and Lender entered into that certain first amendment to the Initial Loan Agreement made as of the November 12, 2015,
as amended by an amendment on December 3, 2015 (collectively with the Initial Loan Agreement, the “Existing Loan Agreement”),
pursuant to which Lender extended an additional loan to the Borrower in the principal amount of $5,500,000 (the “Second Tranche”);

 

WHEREAS
the Borrower has requested (i) an additional loan in the principal amount of $10,000,000 (the “Third Tranche”)
and (ii) an ongoing credit facility for Additional Tranches (as defined below) for an aggregate of up to $20,000,000, and Lender has
indicated its willingness to lend on the terms and conditions set forth herein;

 

WHEREAS
Lender and the Borrower desire to amend and restate the Existing Loan Agreement, without novation, in order to, inter alia,
provide for the Third Tranche and the Additional Tranches (as hereinafter defined) on the terms and conditions set forth herein;

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
1 - DEFINITIONS

 

	1.1	General Definitions.

 

In
this Agreement the following terms shall have the following meanings:

 

“Acquisition”
means, with respect to any Person, any purchase or other acquisition by such Person, regardless of how accomplished or effected (including
any such purchase or other acquisition effected by way of amalgamation, merger, arrangement, business combination or other form of corporate
reorganization or by way of purchase, lease or other acquisition arrangements), of (i) any other Person (including any purchase or acquisition
of such number of the issued and outstanding securities of, or such portion of an Equity Interest in, such other Person so that such
other Person becomes a Subsidiary of the purchaser or of any of its Affiliates) or of all or substantially all of the Property of any
other Person, or (ii) any division, business, operation or undertaking of any other Person or of all or substantially all of the Property
of any division, business, operation or undertaking of any other Person.

 

    	1

    	 

    

 

“Action
Request” means any request from any Governmental Authority under any Applicable Law whereby such body or agency requests that
the Person requested takes action or steps or does acts or things in respect of any Property in its charge, management or control to
remediate a matter which is not or is alleged not to be in compliance with all Applicable Laws.

 

“Affiliate”
means: (i) any Person which, directly or indirectly, controls, is controlled by or is under common control with any other Person; (ii)
any Person which beneficially owns or holds, directly or indirectly, fifty percent (50%) or more of any class of voting stock or Equity
Interest (including partnership interests) of any other Person; or (iii) any Person, fifty percent (50%) or more of any class of the
voting stock (or if such Person is not a corporation, fifty percent (50%) or more of the Equity Interest, including partnership interests)
of which is beneficially owned or held, directly or indirectly, by any other Person. For the purposes of this definition, control of
any Person (including the terms “controlled by” and “under common control with”) means the possession,
directly or indirectly, of the power to elect or appoint a majority of the board of directors of, or persons performing similar functions
in respect of, such Person, whether through the ownership of voting securities, by contract, or otherwise.

 

“Agreement”
means this agreement and all schedules attached hereto; the expressions “hereof”, “herein”, “hereto”,
“hereunder”, “hereby” and similar expressions refer to this Agreement, as amended, restated or
supplemented from time to time, as a whole and not to any particular Article, Section, Schedule, or other portion hereof or thereof.

 

“Annual
Business Plan” means the annual business plan of the Borrower, prepared on a Consolidated basis, with detailed financial projections
and budgets on a quarter to quarter basis for the following one (1) Fiscal Year, in each case consisting of a balance sheet, statement
of income, retained earnings, statement of cash flows, proposed Capital Expenditures and a list of assumptions upon which such projections
are based.

 

“Applicable
Law” means (i) any domestic or foreign statute, law (including common and civil law), treaty, code, ordinance, rule, regulation,
restriction or by-law (zoning or otherwise), including all Health Care Laws and Privacy Laws, (ii) any judgment, order, writ, injunction,
decision, ruling, decree or award; (iii) any regulatory policy, practice, guideline or directive; or (iv) any franchise, license, qualification,
authorization, consent, exemption, waiver, right, permit or other approval of any Governmental Authority, binding on or affecting the
Person referred to in the context in which the term is used or binding on or affecting the property of such Person, in each case whether
or not having the force of law.

 

“Arm’s
Length” has the meaning specified in the definition of “Non-Arm’s Length”.

 

“Associate”
with respect to Lender means an “associate” as defined in the Canada Business Corporations Act.

 

“Audited
Financial Statements” means the audited Consolidated statement of financial position of the Borrower for the Fiscal Year ended
December 31, including, without limitation, balance sheet, statement of income and retained earnings and statements of cash flows for
such Fiscal Year prepared in accordance with GAAP.

 

    	2

    	 

    

 

“Auditor”
means the Borrower’s auditor and includes its successor which needs be an auditor of recognized national standing from time to
time.

 

“Board”
means the Borrower’s board of directors.

 

“Borrower”
means Synergy CHC Corp. (formerly known as Synergy Strips Corp.) a corporation incorporated under the laws of the State of Nevada, and
its permitted successors and assigns.

 

“Breakthrough”
means Breakthrough Products, Inc.

 

“Breakthrough
Acquisition” means the acquisition by the Borrower that occurred on or about November 12, 2015 of all the issued and outstanding
shares of Breakthrough Products, Inc.

 

“Business”
means the business of the Borrower as of the date hereof, being the manufacture, distribution, sale of consumer health, wellness and
beauty products, including the products known as Synergy Strips, Flat Tummy Tea, UrgentRX Products, FOCUSfactor, FOCUSfactor Kids, Hand
MD, Neuragen, Perfekt Beauty, Sneaky Vaunt and The Queen Pegasus.

 

“Business
Day” means a day (other than Saturday or Sunday) on which banks are generally open for business in Bridgetown, Barbados and
New York, New York.

 

“Capital
Expenditures” means, for any period, any expenditure made by any Person for the purchase, lease, acquisition, license, erection,
development, improvement, construction, repair or replacement of capital assets, and any expenditure related to a Capital Lease or any
other expenditure required to be capitalized, all as determined in accordance with GAAP.

 

“Capital
Lease” means, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal
property by such Person that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that
Person.

 

“Cash
Balance Statement” shall have the meaning ascribed to it in Section 9.1(z)(iii).

 

“Change
of Control” means, with respect to the Borrower, the acquisition by any Person or group of Persons who act together in concert
for such purpose of (i) shares or other voting Equity Interests of the Borrower to which are attached more than fifty percent (50%) of
the votes that may be cast to elect directors or other Persons charged with the direction of the management the Borrower and which, if
exercised, are sufficient to elect a majority of such directors or other management Persons, or (ii) any other right to appoint a majority
of such directors or other management Persons or with respect to any Person who from time to time has previously met the foregoing test
the further acquisition by such Person or group of Persons who act together in concert for such purpose of any further units or other
voting Equity Interests of any Loan Party.

 

“Closing
Date” means August 9, 2017 or such other date on which the Third Tranche is advanced.

 

    	3

    	 

    

 

“Collateral”
means all of the undertaking and Property, present and future, real, immovable, personal and movable, of the Loan Parties, now or hereafter
pledged, hypothecated, granted or assigned to Lender to secure, either directly or indirectly, repayment on account of payment of any
of the Obligations.

 

“Compliance
Certificate” means the certificate required pursuant to Section 8.2, substantially in the form annexed as Schedule 8.2
and signed by the Chief Executive Officer and Chief Financial Officer of the Borrower.

 

“Consolidated”
means, when used to modify a financial term, test, statement, or report of a Person, the application or preparation of such term, test,
statement or report (as applicable) based upon the consolidation, in accordance with GAAP, of the financial condition or operating
results of such Person.

 

“Consolidated
Net Income” means, for any period, the Consolidated net income after tax of the Borrower for such period.

 

“Contingent
Obligation” means, as to any Person, any obligation, whether secured or unsecured, of such Person guaranteeing or indemnifying,
or in effect guaranteeing or indemnifying, any indebtedness, leases, dividends, letters of credit or other monetary obligations (the
“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly
or indirectly, including any obligation of such Person as an account party in respect of a letter of credit or letter of guarantee issued
to assure payment by the primary obligor of any such primary obligation and any obligations of such Person, whether or not contingent,
(i) to purchase any such primary obligation or any Property constituting direct or indirect security therefor, (ii) to advance or supply
funds for the purchase or payment of any such primary obligation or to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase Property, Equity Interests or services primarily
for the purpose of assuring the obligee under any such primary obligation of the ability of the primary obligor to make payment of such
primary obligation, or (iv) otherwise to assure or hold harmless the obligee under such primary obligation against loss in respect of
such primary obligation; provided, however, that the term “Contingent Obligation” shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.

 

“Control
Agreement” means a control agreement, in form and substance satisfactory to Lender, executed and delivered by any Loan Party,
Lender and the applicable securities intermediary with respect to a Securities Account or a deposit-taking institution with respect to
a Deposit Account.

 

“Controlled
Group” means, in respect of a Loan Party operating in the United States, all members of a controlled group of corporations
and all trades or businesses (whether or not incorporated) under common control which, together such Loan Party or any of its Subsidiaries,
are treated as a single employer under Section 414(b) or (c) of the Revenue Code.

 

“Current
Market Price” means the thirty (30) day volume weighted average of the closing sales price of the common shares of the Borrower
for a given day on all domestic securities exchanges on which such security may at the time be listed.

 

    	4

    	 

    

 

“Data
Breach” has the meaning set forth in Section 7.1(e)

 

“Debt”
means, with respect to any Person, without duplication, the aggregate of the following amounts, at the date of determination: (i) all
indebtedness of such Person for borrowed money; (ii) all obligations of such Person for the deferred purchase price of Property or services
which constitute indebtedness; (iii) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments;
(iv) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to
Property acquired by such Person (whether or not the rights and remedies of the seller or lender under such agreement in the event of
default are limited to repossession or sale of such Property); (v) all obligations of such Person as lessee under leases that have been
or should be, in accordance with GAAP, recorded as Capital Leases; (vi) all reimbursement obligations, contingent or otherwise, of such
Person under acceptance, letter of credit and similar facilities; (vii) all obligations of such Person to purchase, redeem, retire, defease
or otherwise acquire for value any partnership or shareholder or other Equity Interests of such Person (for greater certainty, not including
obligations with respect to unexercised options and rights of first refusal and where conditions precedent to the purchase, redemption,
retirement, defeasance or other acquisition of such obligations have not occurred); (viii) all Contingent Obligations of such Person
in respect of Debt of another Person; and (ix) any other obligation arising under arrangements or agreements that, in substance, provide
financing to such Person.

 

“Deemed
Interest Rate” means the interest rate applicable to the Loan as set out in Section 4.1 or 4.3, as the case may be, from time
to time.

 

“Default”
means any event or condition which, with the giving of notice, the lapse of time or both, would constitute an Event of Default.

 

“Deposit
Account” means any “deposit account” as such term is defined in the UCC.

 

“Depreciation
Expense” means, for any period with respect to any Person, depreciation, amortization, depletion and other like reductions
to income of such Person for such period not involving any outlay of cash, determined, without duplication and determined on a Consolidated
basis, in accordance with GAAP.

 

“Disposition”
means any sale, assignment, transfer, conveyance, lease or other disposition of any asset of any Loan Party in a single transaction or
a series of related transactions and the word “Dispose” or “Disposed” shall have a correlative
meaning.

 

“Distribution”
means, with respect to any Person, any payment, directly or indirectly, by such Person: (i) of any dividends on any shares of its capital,
other than dividends payable in shares; (ii) on account of, or for the purpose of setting apart any property for a sinking or other analogous
fund for, the purchase, redemption, retirement or other acquisition of any Equity Interests; (iii) of any other distribution in respect
of any Equity Interests; or (iv) of any management, consulting or similar fee or compensation or any bonus payment or comparable payment,
or by way of gift or other gratuity, to any Affiliate of such Person or to any director, officer or member of the management of such
Person or an Affiliate of such Person or to any Person not dealing at Arm’s Length with such first Person.

 

    	5

    	 

    

 

“EBITDA”
means, for any period, Consolidated Net Income for the Borrower earned during such period, plus, to the extent deducted in calculating
Consolidated Net Income (without duplication):

 

(i)
Interest Expense for such period;

 

(ii)
Income Tax Expense for such period; and

 

(iii)
Depreciation Expense for such period;

 

decreased
by the sum (without duplication) of:

 

(iv) 
extraordinary, unusual or non-recurring items for such period; and

 

(v)
dividend and interest income earned or received for such period.

 

“Employment
Arrangement” means any written or oral employment agreement with any executive employee or key employee, or any consulting
services contract, management services contract, labor services contract or similar agreement or arrangement pursuant to which any Person
will, directly or indirectly, provide any services similar to executive employee or key employee services to the Borrower or any of its
Subsidiaries.

 

“Environmental
Laws” means all Applicable Laws relating to Materials of Environmental Concern, pollution or protection of health, safety or
the environment (including ambient air, surface water, ground water, land surface or subsurface strata), including without limitation,
laws and regulations relating to emissions, discharges, releases or threatened releases of Materials of Environmental Concern, or otherwise
relating to the manufacturing, processing, distribution, use, treatment, storage, disposal or transport of Materials of Environmental
Concern.

 

“Equipment”
means all machinery, apparatus, equipment, fittings, furniture, fixtures, motor vehicles and other tangible personal or movable Property
(other than Inventory) of every kind and description used in a Person’s operations or owned by such Person or in which such Person
has an interest, whether now owned or hereafter acquired by such Person and wherever located, and all parts, accessories and tools and
all increases and accessories thereto and substitutions and replacements therefor.

 

“Equity
Financing” means the completion of an offering or offerings of the Borrower’s Equity Interests or securities convertible
into Equity Interests with proceeds of at least $1,000,000 in the aggregate.

 

“Equity
Interests” means (i) in the case of any corporation or company, all shares or capital stock and any securities exchangeable
for or convertible into shares or capital stock, (ii) in the case of an association or business entity, any and all shares, interests,
participation rights or other equivalents of corporate stock (however designated) in or to such association or entity, (iii) in the case
of a partnership, limited liability company or unlimited liability company, partnership or membership interests (whether general or limited
and regardless of whether denoted as units or shares), as applicable, and (iv) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or distribution of assets of, the issuing Person, and including, in
all of the foregoing cases described in clauses (i), (ii), (iii) or (iv), any warrants, rights or other options to purchase or otherwise
acquire any of the interests described in any of the foregoing cases.

 

    	6

    	 

    

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 of the United States, together with the regulations thereunder as the
same may be amended from time to time.

 

“ERISA
Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Revenue Code (other than a multiemployer plan) that either (i) is maintained by a Loan Party, or (ii) with respect
to which a Loan Party has or may have liability.

 

“Event
of Default” shall have the meaning ascribed to it in Section 11.1 hereof. 

 

“Existing
Loan Agreement” shall have the meaning ascribed to it in the recitals hereof.

 

“FDA”
means the Food and Drug Administration of the United States of America or any successor entity thereto.

 

“Financial
Statements” means the Consolidated or combined statements of financial position of the Borrower, including without limitation,
the balance sheet, statement of income and retained earnings and statement of cash flows of the Borrower, the Cash Balance Statement,
all prepared in accordance with GAAP and consistent with the approach used by the Borrower in its Audited Financial Statements.

 

“First
Tranche” shall have the meaning ascribed to it in the recitals hereof.

 

“Fiscal
Quarter” means any of the quarterly accounting periods of the Borrower ending on March 31, June 30, September 30, and December
31 of each year.

 

“Fiscal
Year” means any period of twelve consecutive months ending on December 31 of any calendar year.

 

“FNL”
means Factor Nutrition Labs, LLC, a Delaware limited liability company and its permitted successors and assigns.

 

“FNL
Asset Purchase Agreement” means that certain Agreement for Purchase and Sale of Assets dated as of January __, 2015, by and
among FNL and Borrower.

 

“GAAP”
means United States generally accepted accounting principles, as amended, supplemented or replaced from time to time.

 

“Governmental
Authority” means the government of Canada, the United States, Australia or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including
the FDA and any supranational bodies such as the European Union or the European Central Bank and including a Minister of the Crown, Superintendent
of Financial Institutions or other comparable authority or agency.

 

    	7

    	 

    

 

“Health
Care Laws” has the meaning set forth in Section 7.1(kk)

 

“Income
Tax Expense” means, with respect to the Borrower, for any period, the aggregate, without duplication and on a Consolidated
basis, of all current Taxes on the income of the Borrower for such period, determined in accordance with GAAP.

 

“Independent
Director” means an individual who is not at the time of initial appointment, or at any time while serving as a director, and
has not been at any time during the preceding five years: (a) a shareholder holding more than 10% of the shares of the Borrower, director
(with the exception of serving as an Independent Director), officer, employee, consultant, partner, attorney or counsel of the Borrower
or any of its Subsidiaries; (b) a material customer, supplier or creditor of the Borrower or any of its Subsidiaries or any Affiliate
of any of them; (c) a person controlling or under common control with any such shareholder, director, officer, consultant, partner, customer,
supplier or other person; or (d) a member of the immediate family of any such shareholder, director, officer, employee, partner, customer,
supplier or other person (as used in this definition, the term “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of management, policies or activities of a person, whether through ownership of voting securities,
by contract or otherwise).

 

“Intellectual
Property” means the intellectual property in patents, patent applications, trade-marks, trade-mark applications, trade names,
service marks, copyrights, copyright registrations and trade secrets including, without limitation, customer lists and information and
business opportunities, industrial designs, proprietary software, technology, recipes and formulae and other similar intellectual property
rights.

 

“Interest
Expense” of the Borrower means, for any period, without duplication and on a Consolidated basis, the aggregate amount of interest
and other financing charges paid or payable by the Borrower, on account of such period with respect to Debt including interest, amortization
of discount and financing fees, commissions, discounts, the interest or time value of money component of costs related to factoring or
securitizing receivables or monetizing inventory and other fees and charges payable with respect to letters of credit, letters of guarantee
and bankers’ acceptance financing, standby fees, the interest component of Capital Leases, all as determined in accordance with
GAAP.

 

“Interest
Payment Date” means March 31, June 30, September 30 and December 31 in each year.

 

“Inventory”
means, with respect to any Person, all inventory of such Person, whether now owned or hereafter acquired including, but not limited to,
all goods intended for sale or lease by such Person, or for display or demonstration; all work in process; all raw materials and other
materials and supplies of every nature and description used or which might be used in connection with the manufacture, printing, packing,
shipping, advertising, selling, leasing or furnishing of such goods or otherwise used or consumed in such Person’s business.

 

    	8

    	 

    

 

“Lender
Distribution Agreements” means, collectively, any license and distribution agreement between the Borrower or any other Loan
Party (or any of their respective Affiliates) and Lender (or any of its Affiliates).

 

“Lender
Option” means the option granted to Lender pursuant to that certain distribution option agreement dated as of January 22, 2015
whereby Lender acquired the option to negotiate an exclusive distribution agreement for the Borrower’s Products for Canada, Russia,
Sub-Sahara Africa and Israel.

 

“Lender’s
Nominee” shall have the meaning ascribed to it in Section 9.1(aa) hereof.

 

“License”
or “License Agreement” shall have the meaning ascribed to it in Section 7.1(g) hereof.

 

“Lien”
means: (i) any interest in Property securing an obligation owed to, or a claim by, a Person, whether such interest is based on the common
law, civil law, statute, or contract, and including, without limitation, a security interest, charge, claim, hypothec or lien arising
from a mortgage, deed of trust, hypothec, encumbrance, pledge, hypothecation, assignment, deposit arrangement, agreement, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes; and (ii) to the extent not included under
clause (i), (A) any rights of repossession or similar rights of unpaid suppliers, (B) any reservation, exception, encroachment, easement,
right-of-way, covenant, condition, restriction, lease or other title exception or encumbrance affecting Property, and (C) any other lien,
hypothec, charge, privilege, secured claim, title retention, garnishment right, deemed trust, encumbrance or other right affecting Property,
choate or inchoate, whether or not crystallized or fixed, whether or not for amounts due or accruing due, arising by any statute or law
of any jurisdiction, at law, in equity or by any agreement.

 

“Loan”
means, collectively or individually, as the context requires, the First Tranche, the Second Tranche, the Third Tranche and any Additional
Tranches.

 

“Loan
Documents” means (i) this Agreement and the Security Documents delivered by the Loan Parties pursuant to this Agreement and
the Existing Loan Agreement or otherwise in connection with this Agreement and the Existing Loan Agreement, including any Loan Document
delivered to Lender as general continuing collateral security for the payment and performance of the present and future Obligations (including
obligations relating to the Second Tranche, the Third Tranche and any Additional Tranche), as well as any amendments, replacements, supplements
or other modifications hereto or thereto or any other documents or instruments contemplated hereby or thereby, (ii) all present and future
security, agreements and documents labelled by the parties thereto as a Loan Document, (iii) all confirmation agreements delivered by
the Loan Parties confirming the validity of any of the foregoing Loan Documents and (iv) Lender Distribution Agreements, in each case
as the same may from time to time be supplemented, amended or restated, and “Loan Document” shall mean any one of
the Loan Documents.

 

“Loan
Parties” means the Borrower and its Subsidiaries.

 

“Losses”
shall have the meaning ascribed to it in Section 12.1 hereof.

 

    	9

    	 

    

 

“Material
Adverse Effect” shall mean (i) a material adverse effect on the business, prospects, operations, properties, assets, or condition
(financial or otherwise) of the Borrower on a consolidated basis, (ii) an adverse effect on the legality, validity or enforceability
of any of the Loan Documents which could reasonably be considered material having regard to the Loan Documents considered as a whole,
including the validity, enforceability, perfection or priority of any Lien created under any of the Security which could reasonably be
considered material having regard to the Security considered as a whole, (iii) a material adverse effect on the ability of any Loan Party,
to pay or perform any of its debts, liabilities or obligations under any of the Loan Documents, which could reasonably be considered
material having regard to Borrower and the other Loan Parties as a whole, or (iv) an adverse effect on the right, entitlement or ability
of Lender to enforce its rights or remedies under any of the Loan Documents which could reasonably be considered material having regard
to the Loan Documents taken as a whole.

 

“Material
Contract” means any agreement (whether written or oral), or multiple agreements with the same Person, arrangement or understanding
entered into by any Loan Party or assigned to any Loan Party, (i) which could reasonably be expected to be material to the financial
condition, property, assets, operations or business of any Loan Party, (ii) involving payments by or to any Loan Party (or all of them)
in excess of $500,000 in the aggregate, or (iii) contracts relating to Employment Arrangements.

 

“Material
Licenses” means, collectively, each license, certificates, certification, concession, grant, franchise, variance, exemption
or permission from, accreditations, product clearances or approvals, provider numbers or provider authorizations, marketing authorizations,
other authorizations, establishment licenses, registrations, permits, consents and approvals issued by any Governmental Authority or
any applicable stock exchange or securities commission to any Loan Party or assigned to any Loan Party issued or required (i) in connection
with the conduct of any of the Borrower’s or any Subsidiary’s Business (ii) required for the research, development, manufacture,
distribution, marketing, storage, transportation, use and sale of Products, or (iii) to comply with Applicable Laws, including without
limitation new drug applications, abbreviated new drug applications, biologics license applications, investigational new drug applications,
over-the-counter drug monograph, device pre-market approval applications, device pre-market notifications, investigational device exemptions,
product recertifications, manufacturing approvals and authorizations, CE Marks, pricing and reimbursement approvals, labeling approvals
or their foreign equivalent, controlled substance registrations, and wholesale distributor permits.

 

“Materials
of Environmental Concern” means any chemicals, pollutants, contaminants, wastes, toxic substances, petroleum, petroleum products,
together with any hazardous, toxic or dangerous substances, materials and wastes, including, without limitation, hydrocarbons (including
naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive
materials, biological substances, polychlorinated biphenyls, pesticides, herbicides and any other kind and/or type of pollutants or contaminants
(including, without limitation, materials which include hazardous constituents), sewage, sludge, industrial slag, solvents and/or any
other similar substances, materials or wastes and including any other substances, materials or wastes that are or become regulated under
any laws relating to the protection of the environment or maintenance of occupational safety (including, without limitation, any that
are or become classified as hazardous or toxic under any such laws).

 

    	10

    	 

    

 

“Maturity
Date(s)” means: (i) with respect to the First Tranche, January 20, 2018, (ii) with respect to the Second Tranche, November
11, 2017, (iii) with respect to the Third Tranche, the third anniversary of the Closing Date and (iv) with respect to any Additional
Tranche, the third anniversary of the date of the advance thereof.

 

“Net
Debt” means, as of any date of determination, (i) Consolidated Debt of the Borrower outstanding on such date minus (ii)
the aggregate amount of cash and cash equivalents included in the cash accounts listed on the Consolidated statement of financial position
of the Borrower as of such date, to the extent the use thereof for application to payment of Debt is not prohibited by law or contract.

 

“Nomad”
means Nomadchoice Pty Ltd (ABN 41 160 729 939).

 

“Nomad
Acquisition” means the acquisition by the Borrower of all the issued and outstanding shares of Nomad, which occurred on or
about November 12, 2015.

 

“Nomad
Purchase Agreement” means that certain Stock Purchase Agreement dated November 12, 2015 among the Borrower, Nomad, TPR Investments
Pty Ltd CAN 128 396 654, as trustee for Polmear Family Trust, Timothy Polmear and Rebecca Polmear, effecting the Nomad Acquisition.

 

“Non-Arm’s
Length” and similar phrases have the meaning attributed thereto for the purposes of the Income Tax Act (Canada); and
“Arm’s Length” shall have the opposite meaning.

 

“Obligations”
means all present and future obligations and indebtedness, of any and every kind and nature, of the Loan Parties to Lender arising under
this Agreement and the other Loan Documents, whether now or hereafter existing, whether now due or to become due, whether primary, secondary,
direct, indirect, absolute, contingent or otherwise (including without limitation, obligations of performance), whether several or joint
or joint and several.

 

“OFAC”
means the Office of Foreign Assets Control of the US Department of the Treasury.

 

“Organizational
Documents” means, with respect to any applicable Person, such Person’s articles or other charter or constitutional documents,
by-laws, shareholder agreement, partnership agreement, joint venture agreement, limited liability company agreement or trust agreement,
as applicable, and any and all other similar agreements, documents and instruments relative to such Person.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.

 

“Pension
Plan” means (i) a “pension plan” or “plan” which is subject to the funding requirements of applicable
pension benefit legislation in any jurisdiction as is applicable to the employees of any Loan Party; or (ii) any pension benefit plan
or similar agreement applicable to employees of the Loan Parties (other than a plan sponsored by a Governmental Authority) which, for
greater certainty, includes an ERISA Plan.

 

    	11

    	 

    

 

“Perfection
Certificate” means a certificate in the form of Exhibit 1, or any other form approved by Lender.

 

“Permitted
Cash Investments” means an investment in any of the following:

 

(i)
direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the Government of the
United States or of any state thereof, as applicable (or by any agency or instrumentality of any of the foregoing to the extent such
obligations are backed by the full faith and credit of the Government of the United States or of such state, as applicable);

 

(ii)
investments in certificates of deposit, bankers’ acceptances and time deposits maturing within 180 days from the date of acquisition
thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial
bank organized under the laws of the United States or federal state in the United States having combined capital and surplus of not less
than $300,000,000 or the equivalent in any other currency; and

 

(iii)
commercial paper of an issuer rated at least A-1+ or the equivalent thereof by a rating agency satisfactory to Lender, and in each case
maturing within six months from the date of acquisition.

 

“Permitted
Debt” means:

 

(i)
Debt under this Agreement;

 

(ii)
Debt in respect of Purchase Money Security Interests and Capital Leases in an outstanding amount not to exceed $250,000 in aggregate
at any time;

 

(iii)
Debt consented to in writing by Lender from time to time and subject to the terms imposed by Lender in connection with such consent;

 

(iv)
to the extent included as Debt, accounts payable that arise, and accrued expenses incurred in, the ordinary course of business; and

 

(v)
Debt incurred by a Subsidiary of the Borrower in accordance Section 2.2(d).

 

“Permitted
Disposition” means (i) the Disposition of Inventory in the ordinary course of business; (ii) the Disposition of used, worn-out
or surplus Equipment in the ordinary course of business; (iii) other Dispositions to the extent that no Default or Event of Default exists
and the fair market value of the assets Disposed of pursuant to this clause (iii) does not exceed during any Fiscal Year $150,000; and
(iv) a Disposition under a distribution agreement contemplated by Lender Option.

 

“Permitted
Distribution” means, so long as there exists no Default or Event of Default (i) fees paid by the Borrower to Independent Directors
in an aggregate amount in any Fiscal Year not to exceed $100,000, provided such directors’ fees are customary and reasonable for
directors in a similar business to the Business; (ii) bonuses paid or other comparable payments made to Borrower’s officers and
members of management by the Borrower in amounts materially consistent with the past compensation practice of the Borrower and customary
and reasonable for officers and members of management in a business similar to the Business, provided that the aggregate amount in respect
of all such bonuses and comparable payments in any Fiscal Year (for certainty, including any payments contemplated by (iii) below) shall
not exceed 5% of TTM EBITDA (the “Management Bonus Limit”), (iii) subject to the Management Bonus Limit, bonuses and
other comparable payments paid, directly or indirectly, to any one Person pursuant to any employment agreements, consulting services
contracts (including agreements between the Borrower and Kenek Brands Inc.), management services contracts, labor services contracts
or similar agreements or arrangements for the services of such Person (whether pursuant to one agreement or multiple agreements) of no
more than $695,000 per Fiscal Year (for certainty, in excess of any base compensation payable to such Person), provided that any such
payments paid to any such Person shall also be determined and paid strictly in accordance with the relevant Employment Arrangement(s)
(the terms of which shall have been disclosed to the Lender) and (iv) any distribution by the Subsidiaries of the Borrower (other than
a Special Purposes Entity) to the Borrower.

 

    	12

    	 

    

 

“Permitted
Liens” means, with respect to any Person, the following:

 

(i)
liens for Taxes not yet due or for which installments have been paid based on reasonable estimates pending final assessments, or if due,
the validity of which is being contested diligently and in good faith by appropriate proceedings by that Person for which reasonable
reserves under GAAP are maintained;

 

(ii)
undetermined or inchoate liens, rights of distress and charges incidental to current operations which have not at such time been filed
or exercised and of which Lender has been given notice, or which relate to obligations not due or payable, or if due, the validity of
which is being contested diligently and in good faith by appropriate proceedings by that Person;

 

(iii)
reservations, limitations, provisos and conditions expressed in any original grants from the Crown or other grants of real or immovable
property, or interests therein;

 

(iv)
zoning, land use and building restrictions, by-laws, regulations and ordinances of federal, provincial, state, municipal and other Governmental
Authorities, licenses, easements, servitudes, rights-of-way and rights in the nature of easements (including, without limiting the generality
of the foregoing, licenses, easements, servitudes, rights-of-way and rights in the nature of easements for railways, sidewalks, public
ways, sewers, drains, gas, steam and water mains or electric light and power, or telephone and telegraph conduits, poles, wires and cables)
which do not materially impair the use of the affected land for the purpose for which it is used by that Person;

 

(v)
title defects, encroachments or irregularities or other matters relating to title which are of a minor nature and which in the aggregate
do not materially impair the use of the affected property for the purpose for which it is used by that Person;

 

(vi)
the right reserved to or vested in any municipality or governmental or other public authority by the terms of any lease, license, contract,
franchise, grant or permit acquired by that Person or by any statutory provision to terminate any such lease, license, contract, franchise,
grant or permit, or to require annual or other payments as a condition to the continuance thereof;

 

    	13

    	 

    

 

(vi)
the Lien resulting from the deposit of cash or securities in connection with contracts, tenders or expropriation proceedings, or to secure
workers compensation, employment insurance, surety or appeal bonds, costs of litigation when required by law not to exceed $100,000 in
aggregate outstanding at any time, liens and claims incidental to current construction, mechanics’, warehousemen’s, carriers’
and other similar liens, and public, statutory and other like obligations incurred in the ordinary course of business;

 

(vii)
security given to a public utility or any municipality or Governmental Authority when required by such utility or authority in connection
with the operations of that Person in the ordinary course of its business provided that such security does not materially impair the
use of the affected property for the purpose for which it is used by that Person;

 

(viii)
the Lien created by a judgment of a court of competent jurisdiction, as long as the judgment is being contested diligently and in good
faith by appropriate proceedings by that Person and does not result in an Event of Default;

 

(ix)
the Security;

 

(x)
Purchase Money Security Interests and Capital Leases, provided that such Liens secure Permitted Debt;

 

(xi)
such other Liens as agreed to in writing by Lender in accordance with this Agreement;

 

(xii)
any other Liens securing Debt the principal amount of which (when aggregated with the outstanding principal of any other such Debt secured
by Borrower) does not exceed $100,000 (or its equivalent));

 

(xiii)
any Lien in favour of Knight Therapeutics, Inc. perfected by the UCC financing statement filed on July 31, 2015 against Neuragen Corp.
in favour of Knight Therapeutics, Inc. under original file number 20153327714 at the Delaware Secretary of State; and

 

(xiv)
Liens granted by Special Purpose Entities in order to secure Qualified Acquisitions otherwise permitted hereby.

 

“Person”
means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation,
institution, entity, party or foreign or local government (whether federal, provincial, state, county, city, municipal or otherwise),
including, without limitation, any instrumentality, division, agency, body or department thereof.

 

“Privacy
Law” has the meaning set forth in Section 7.1(e)

 

    	14

    	 

    

 

“Product”
means each current and future product, process or service under development, developed, manufactured, tested, licensed, distributed,
marketed or sold by any Loan Party and any other current or future products or services in which any Loan Party has any proprietary rights
or beneficial interests.

 

“Prohibited
Transaction” means any transaction set forth in Section 406 of ERISA, or Section 4975 of the Revenue Code, to the extent that
such transaction is not otherwise exempt by Applicable Law.

 

“Property”
means, with respect to any Person, all or any portion of its undertaking, property or asset, whether real, immovable, personal, movable,
or mixed, tangible or intangible, including for greater certainty any Equity Interests of a corporation or ownership interest in any
other Person.

 

“Purchase
Money Security Interest” means a Lien created or assumed by a Loan Party securing Debt incurred to finance the unpaid acquisition
price of personal Property provided that (i) such Lien is created concurrently with or prior to the acquisition of such personal Property,
(  ) such Lien does not at any time encumber any Property other than the Property financed or refinanced (to the extent the
principal amount is not increased) by such Debt, (iii) the principal amount of Debt secured thereby is not increased subsequent to such
acquisition, and (iv) the principal amount of Debt secured by any such Lien at no time exceeds 100% of the original purchase price of
such personal Property at the time it was acquired, and for the purposes of this definition the term “acquisition” shall
include a Capital Lease and the term “acquire” shall have a corresponding meaning.

 

“Qualified
Acquisition” means any Acquisition by the Borrower or any other Loan Party, whether by purchase, merger or otherwise, of all
or substantially all of the assets of, all of the Equity Interests of, or a business line or unit or a division of, any Person (the “Target”),
provided that:

 

(i)
the Target shall be a profitable, cash-positive business that is in the same business as or in a business complementary to the Business;

 

(ii)
immediately prior to, and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would
result therefrom;

 

(iii)
immediately prior to, and after giving effect thereto, all representations and warranties herein and in any other Loan Document shall
be true and correct in all material respects;

 

(iv)
the Target and all of its assets shall be located only in one or more of the countries in which the Loan Parties operate as of the Closing
Date, or such other country as may be approved by Lender in its sole discretion, all transactions in connection therewith shall be consummated,
in all material respects, in accordance with all Applicable Laws and in conformity with all applicable governmental approvals and the
consummation of such transaction shall not subject Lender to any additional regulatory or other requirements;

 

    	15

    	 

    

 

(xv)
simultaneously with the consummation of such acquisition or, to the extent restricted under Applicable Law, as soon as legally permissible
in the relevant jurisdiction, Lender shall be granted a first priority, perfected Lien in the Target (subject only to Permitted Liens)
which shall be in form and substance satisfactory to Lender and shall not subject Lender to any additional regulatory or other requirements;

 

(xvi)
in the case of the Acquisition of Equity Interests, the Acquisition shall be of all of the Equity Interests (except for any such Equity
Interests in the nature of directors’ qualifying shares required pursuant to Applicable Laws) of the Target, and the Equity Interest
so acquired or otherwise issued by such Target or any newly formed Subsidiary of a Loan Party in connection with such acquisition shall
be owned 100% by a Loan Party and such Loan Party shall have taken, or caused to be granted Lender a duly perfected first-priority Lien,
subject only to Permitted Liens, in all of the present and after-acquired assets, property and undertaking of the Target or Subsidiary
as security for the Obligations, and shall have delivered to Lender all supporting documents and opinions, as reasonably required by
Lender;

 

(xvii)
both before and after giving effect to the Acquisition, the Borrower and the other Loan Parties shall be in compliance with all of the
covenants (including, for certainty, the financial covenants) set forth herein;

 

(xviii)
the Acquisition shall have been approved by the board of directors or other governing body or controlling Person of the Target or the
Person from whom such assets or division is acquired; and

 

(xix)
on or prior to the date of such acquisition, Lender shall have received, each in form and substance satisfactory to, certified copies
of the acquisition agreement and all material related agreements and instruments, and all opinions, certificates, lien search results
and other credit documents in respect thereof in form and substance acceptable to Lender;

 

(xx)
Lender shall have received copies of, and shall have been satisfied with, all legal and business due diligence reports prepared for the
benefit of the Loan Parties in respect of such acquisitions, as well as its own legal and business due diligence (if any);

 

(xxi)
the Borrower shall have certified to Lender that it has obtained all necessary or required material consents or approvals of any Governmental
Authority or other Person in connection with the completion of the Acquisition; and

 

(xxii)
Lender shall have received a source and use of funds statement (which shall, among other things, demonstrate that all of the proceeds
of the Acquisition will be used to fund the Acquisition) and an outline of the flow of funds with respect to the Acquisition shall have
been delivered to Lender; and

 

(xxiii)
Lender shall (in its sole discretion) otherwise be satisfied in all respects with the proposed Acquisition.

 

    	16

    	 

    

 

“Regulatory
Authority” means any Governmental Authority that has responsibility in any country or group of countries over the development,
manufacture or commercialization of a Product, including the FDA, Health Canada and the European Medicines Agency, and any successor
agency thereof.

 

“Repayment
Schedule” means the Amended and Restated Schedule of Repayment of principal for each Loan, attached hereto as Schedule 3.1(b).

 

“Reportable
Event” means any of the events set forth in Section 4043 of ERISA, other than an event for which the provision of notice has
been waived.

 

“Requirements
of Law” means, as to any Person, the Organizational Documents of such Person and any Applicable Law, or determination of a
Governmental Authority, in each case, applicable to or binding upon such Person or any of its business or Property or to which such Person
or any of its business or Property is subject.

 

“Revenue
Code” means the United States Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto,
and the regulations and published interpretations thereof.

 

“Revenues”
means, for any period, consolidated gross income for such period.

 

“Sanctioned
Entity” means (i) a country or a government of a country, (ii) an agency of the government of a country, (iii) an organization
directly or indirectly controlled by a country or its government, (iv) a Person resident in, or determined to be resident in, a country,
in each case, that is subject to a country sanctions program administered and enforced by OFAC.

 

“Sanctioned
Person” means a person named on the list of Specially Designated Nationals maintained by OFAC (including on account of its
membership in a Controlled Group).

 

“Second
Tranche” shall have the meaning ascribed to it in the recitals hereof.

 

“Securities
Account” means any “securities account” as such term is defined in the Personal Property Security Act (Ontario)
and the UCC.

 

“Security”
means the Liens created by the Security Documents. 

 

“Security
Documents” means the documents set out in Section 6.1.

 

    	17

    	 

    

 

“Special
Purpose Entity” means a Person that at all times since its formation and at all times thereafter (unless otherwise expressly
agreed to by the Lender in writing): (i) was and will be organized solely for the purpose of owning, developing or operating the business
acquired pursuant to a particular Qualified Acquisition (the “Specific Business”) and activities which are related
and ancillary thereto; (ii) has not engaged and will not engage in any business unrelated to the Specific Business, (iii) has not had
and will not have any assets other than those related to the Specific Business, (iv) has not engaged, sought or consented to and will
not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale, transfer of Equity Interests
or the like, or amendment of its limited partnership agreement, articles of incorporation, articles of organization, certificate of formation
or operating agreement (as applicable); (v) has remained and will remain solvent; and has maintained and will maintain adequate capital
in light of its contemplated business operations; provided, however, that the foregoing shall not require the contribution of additional
capital or any other advance of funds by the Borrower or any other Loan Party or any other Person, (vi) has not failed and will not fail
to use commercially reasonably efforts to correct any known misunderstanding regarding the separate identity of such Person; (vii) has
maintained and will maintain its accounts, books and records separate from any other Person and will file its own tax returns and maintain
its own appropriate insurance coverage; (viii) has not commingled and will not commingle its funds or assets with those of any other
Person; (ix) has held and will hold its assets in its own name; (x) has conducted and will conduct the Specific Business in its name
only; (xi) has maintained and will maintain its financial statements, accounting records and other entity documents separate from any
other Person; (xii) has paid and will pay its own liabilities, including the salaries of its own employees, if any, out of its own funds
and assets; (xiii) has observed and will observe all material partnership, corporate or limited liability company formalities, as applicable;
(xiv) has maintained and will maintain an arm’s-length relationship with its Affiliates; (xiv) has not entered into or been a party
to, and will not enter into or be a party to, any transaction with any other Loan Party except (I) with the prior written consent of
Lender and (II) in the ordinary course of its business and on terms which are intrinsically fair and are no less favorable to it than
would be obtained in a comparable arm’s-length transaction with an unrelated third party, provided that any consideration paid
by any Loan Party to such Special Purpose Entity pursuant to any commercial arrangement shall be on terms no more beneficial to such
Special Purpose Entity than terms paid by any Loan Party to any other Loan Party under similar commercial arrangements; (xv) has no and
will have no indebtedness other than the indebtedness permitted pursuant to Section 2.2(d) hereof (“Specific Business Financing”);
(xvi) has not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit as being
available to satisfy the obligations of any other Person, (xvii) has not and will not acquire obligations or securities of any other
Loan Party, (xvii) except in connection with the Specific Business Financing, has not pledged and will not pledge its assets for the
benefit of any other Person; (xviii) has held itself out and identified itself, and will hold itself out and identify itself, as a separate
and distinct entity under its own name and not as a division or part of any other Person; (xix) has maintained and will maintain its
assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those
of any other Person; (xx) has not made and will not make loans to any Person; (xxi) has not identified and will not identify any other
Loan Party, or any Affiliate of any of them, as a division or part of it; (xxii) will consider the interests of its creditors in connection
with all corporate, partnership or limited liability company actions, as applicable; (xxiii) for certainty, has not done and will not
do any of the following: (I) file a bankruptcy, insolvency or reorganization petition or otherwise seek any relief under any laws relating
to the relief from debts or the protection of debtors generally; (II) seek or consent to the appointment of a receiver, liquidator, assignee,
trustee, custodian or any similar official for such entity or all or any portion of such entity’s properties; (III) make any assignment
for the benefit of such entity’s creditors’ or (IV) take any action that might cause such entity to become insolvent; and
(xxiv) satisfies such other criteria as required by Lender in its sole discretion.

 

“Subsidiary”
means, with respect to a Person, any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary
voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the time stock of any other
class of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly
or indirectly, owned by the Person or by any partnership or other corporate entity of which more than fifty percent (50%) of the outstanding
Equity Interests are at the time, directly or indirectly, owned by the Person.

 

    	18

    	 

    

 

“Taxes”
shall have the meaning ascribed to it in Section 12.2 hereof. 

 

“Termination
Date” means the fifth anniversary of the Closing Date. 

 

“Third
Tranche” shall have the meaning ascribed to it in the recitals hereof.

 

“TTM
EBITDA” means, at any particular time, EBITDA for the twelve (12) month period immediately preceding the last day of the period
reported upon in the most recent Financial Statements.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the laws of which are required
to be applied in connection with the issue of perfection of security interests.

 

“Unfunded
Qualified Acquisition” means a Qualified Acquisition that is financed by the Borrower’s cash flow.

 

“Violation
Notice” means any notice received by a Person, from any Governmental Authority under any Applicable Law that such Person or
any of its Property is not in compliance with the requirements of any Applicable Law, including any notice that the FDA, Health Canada
or any other similar Governmental Authority is limiting, suspending or revoking any Material License, changing the market classification,
distribution pathway or parameters, or labeling of the Products, or considering any of the foregoing.

 

“Welfare
Plan” means any medical, health, hospitalization, insurance or other employee benefit or welfare plan, agreement or arrangement
subject to ERISA and applicable to employees of the Loan Parties and includes a “welfare plan” as defined in Section 3(1)
of ERISA.

 

	1.2	Schedules and Exhibits.

 

The
following are the Schedules and Exhibits to this Agreement, which are deemed to be a part of this Agreement:

 

	Exhibit
    1		Perfection Certificate 
	Schedule
    3.1(b)	–	Repayment
    Schedule
	Schedule
    7.1(g)	–	Intellectual
    Property
	Schedule
    7.1(h)	–	Current
    and Prior Names
	Schedule
    7.1(i)	–	Subsidiaries
	Schedule
    7.1(j)	–	Litigation
	Schedule
    7.1(k)	–	Material
    Contracts and Material Licenses
	Schedule
    7.1(p)	–	Taxes
	Schedule
    7.1(s)	–	Location
    of Collateral
	Schedule
    7.1(t)	–	Owned
    Real Property
	Schedule
    7.1(u)	–	Leased
    Real Property

 

    	19

    	 

    

 

	Schedule
    7.1(x)	–	Labor
    Matters
	Schedule
    7.1(y)	–	Pension
    Plans
	Schedule
    7.1(bb)	–	Insurance
	Schedule
    7.1(kk)	–	Regulatory
    Matters
	Schedule
    8.2		Officer’s Compliance Certificate 

 

	1.3	Accounting Terms and Definitions.

 

Unless
otherwise defined or specified herein, all defined terms in Section 1.1 as used in this Agreement shall have the meanings set out in
such paragraph, and all accounting terms used in this Agreement shall be construed in accordance with GAAP, applied on a basis consistent
in all material respects with the annual Audited Financial Statements, except as otherwise specifically prescribed herein. All accounting
determinations for purposes of determining compliance with the financial covenants contained herein shall be made in accordance with
GAAP as in effect on the Closing Date (unless and to the extent otherwise stipulated herein) and applied on a basis consistent in all
material respects with the Audited Financial Statements, except as otherwise specifically prescribed herein. Except as otherwise specified
herein, the financial statements required to be delivered hereunder from and after the Closing Date, and all financial records, shall
be maintained in accordance with sound accounting practices including, if applicable, GAAP. If GAAP shall change from the basis used
in preparing the Audited Financial Statements, the Compliance Certificates required to be delivered pursuant to Section 8.2 demonstrating
compliance with the covenants contained herein shall include, at the election of the Borrower or upon the request of Lender, calculations
setting forth the adjustments necessary to demonstrate how the Borrower is in compliance with the financial covenants based upon GAAP
as in effect on the Closing Date.

 

	1.4	Supplements, Re-enactments,
  Etc.

 

References
herein to any agreement, document or legislation are, unless otherwise stated, to be construed as references to such agreement, document
or legislation as amended, restated or supplemented from time to time and references to any enactment include re-enactments, amendments
and extensions thereof.

 

	1.5	Headings of Subdivisions.

 

The
headings of subdivisions in this Agreement are for convenience of reference only, and shall not govern the interpretation of any of the
provisions of this Agreement.

 

	1.6	Gender and Number.

 

Words
importing the singular include the plural and vice versa and words importing gender include all genders.

 

	1.7	Monetary References.

 

Any
reference in this Agreement to “Dollars”, “dollars” or the sign “$” shall be
deemed to be a reference to lawful money of the United States, unless otherwise expressly stated.

 

    	20

    	 

    

 

	1.8	Actions on Days Other
  Than Business Days.

 

Except
as otherwise specifically provided herein, where any payment is required to be made or any other action is required to be taken on a
particular day and such day is not a Business Day and, as a result, such payment cannot be made or action cannot be taken on such day,
then this Agreement shall be deemed to provide that such payment shall be made or such action shall be taken on the first Business Day
after such day.

 

ARTICLE
2 - TERMS OF THE LOAN

 

	2.1	The Loan.

 

(a)
First Tranche. As of the date hereof, the aggregate outstanding principal amount of the First Tranche is $1,687,500 and the Borrower
acknowledges that the First Tranche shall for all purposes hereunder constitute and be referred to as a portion of the Loan, without
constituting a novation, but in all cases subject to the terms and conditions applicable to Loans hereunder. The Borrower shall not be
permitted to reborrow any amount of the First Tranche once repaid.

 

(b)
Second Tranche. As of the date hereof, the aggregate outstanding principal amount of the Second Tranche is $1,375,000 and the Borrower
acknowledges that the Second Tranche shall for all purposes hereunder constitute and be referred to as a portion of the Loan, without
constituting a novation, but in all cases subject to the terms and conditions applicable to Loans hereunder. The Borrower shall not be
permitted to reborrow any amount of the Second Tranche once repaid.

 

(c)
Third Tranche. Subject to the terms and conditions of this Agreement and the other Loan Documents, Lender agrees to loan to the Borrower
the Third Tranche to or for the account of the Borrower on the Closing Date and the Borrower hereby irrevocably authorizes Lender to
advance the Third Tranche on the Closing Date.

 

	2.2	Additional Tranches.

 

(a)
Additional Tranches. Subject to the terms and conditions contained in this Agreement, from the Closing Date until the Termination
Date, and provided that no Event of Default and no Default then exists, the Borrower may from time to time request additional advances
of One Million Dollars or more (from Lender to support one or more Qualified Acquisitions (“Additional Tranches”),
it being agreed and understood that (i) each request by the Borrower for an Additional Tranche shall be in a minimum amount of One Million
Dollars ($1,000,000) and (ii) the maximum aggregate principal amount of all Additional Tranches made by Lender hereunder shall not exceed
Twenty Million Dollars ($20,000,000). For certainty, Additional Tranches may only be used to finance Qualified Acquisitions.

 

    	21

    	 

    

 

(b)
Additional Tranche Request. Whenever Borrower desires an Additional Tranche, Borrower shall notify Lender of the proposed Qualified
Acquisition and the proposed borrowing (an “Additional Tranche Request”). Any Additional Tranche Request shall, inter
alia: (i) specify the proposed closing date of the Qualified Acquisition, (ii) specify the purchase price of the Qualified Acquisition,
including a breakdown of all details relating to the purchase price and any other consideration (e.g., cash vs. other consideration,
upfront vs. deferred, consideration in the form or royalties and equity, etc.), (iii) the principal amount of the Additional Tranche
requested and a summary of expected uses and sources of funds for the Qualified Acquisition, (iv) be accompanied by a certificate signed
by the Chief Executive Officer and Chief Financial Officer of the Borrower, stating that no Default or Event of Default exists or, after
giving effect to the Qualified Acquisition and the advance of the requested Additional Tranche, will exist, and (iv) include an appropriate
and comprehensive information package relating to the proposed transaction, including a full set of business and legal due diligence
materials relating thereto. Lender shall thereafter have ten (10) Business Days following its confirmed receipt of an Additional Tranche
Request to notify the Borrower whether it agrees to make an Additional Tranche (the “Review Period”), provided, however,
that should Lender fail to respond before the expiry of the Review Period it shall be deemed to have declined the Additional Tranche
Request. Lender shall be entitled to request such additional information about the proposed Qualified Acquisition (including any additional
due diligence materials) as necessary or useful, in the opinion of the Lender, to properly assess the Qualified Acquisition, and if the
Lender makes any such requests before the expiry of the Review Period then a new Review Period shall begin upon Lender’s receipt
of such additional information in order to allow Lender to consider the Additional Tranche Request. For certainty, Lender shall not be
obligated to make a requested Additional Tranche and Lender, in its sole and absolute discretion, may decline to issue an Additional
Tranche even if Borrower is in compliance with this Agreement. The refusal of any proposed Additional Tranche by Lender shall not affect
the Borrower’s right to request an Additional Tranche at a future date.

 

(c)
Additional Tranche Terms: In the event that Lender agrees, in its sole discretion, to grant any Additional Tranche, and without
limiting anything else set forth herein or in any other Loan Document or any other provisions herein which apply to Loans (which, for
certainty, apply to Additional Tranches unless otherwise provided), the following shall apply to such Additional Tranche(s)

 

		(i)	Amendments;
                                            Additional Documents. Lender shall provide Borrower with such amendment documents, if
                                            any, to the Loan Documents as may be required to give effect to the Additional Tranche (including
                                            a duly updated Repayment Schedule), as well as a list of such additional documents and deliverables
                                            (including Security Documents) as Lender may require in its sole discretion in connection
                                            with such Additional Tranche and the execution and delivery of such documents and any other
                                            customary documents and deliverables so required by the Lender shall be conditions precedent
                                            to the advance of any Additional Tranche.

 

		(ii)	Additional
                                            Tranche Work Fee. The Borrower will pay to Lender a work fee equal to 1% of the amount
                                            of any Additional Tranche that the Lender agrees to advance in accordance with 2.2(b) above,
                                            which amount will be fully earned and payable on the date that the Lender notifies the Borrower
                                            of its acceptance to advance such Additional Tranche (for certainty, whether or not the Qualified
                                            Acquisition is effected and/or such Additional Tranche is ultimately advanced).

 

    	22

    	 

    

 

	 	(  )	Additional Tranche Origination
  Fee. Concurrently with the advance of any Additional Tranche, the Borrower will pay to Lender an origination fee equal to 2% of
  the amount of such Additional Tranche, which amount will be fully earned and payable on the date of the advance of such Additional
  Tranche.

 

		(i)	Success
                                            Fee. For certainty, any Additional Tranche made by Lender shall entitle Lender to additional
                                            common shares or cash consideration pursuant to Section 4.8 hereof in accordance with the
                                            terms thereof.

 

		(ii)	Expenses.
                                            For certainty, the Borrower shall reimburse Lender for its expenses incurred in connection
                                            with its consideration of any Additional Tranche Requests (whether or not agreed to) and
                                            any Additional Tranches (whether or not advanced) in accordance with Section 4.9 hereof.

 

(d)
If Lender declines an Additional Tranche Request on the terms described herein, and notwithstanding Sections 9.2(d) and 9.2(r) hereof,
then the Borrower shall be entitled to effect the Qualified Acquisition through a Special Purpose Entity which Special Purpose Entity
shall be entitled to obtain secured financing or other financing from third parties to finance the proposed Qualified Acquisition, on
the strict condition that no Loan Party other than such Special Purpose Entity shall be a party to or otherwise involved in or affected
by such transactions and that such transactions shall not, in the opinion of the Lender, otherwise adversely affect Lender or its rights
hereunder.

 

ARTICLE
3 - PAYMENT

 

	3.1	Payments on Principal.

 

(a)
The Borrower shall pay in full to Lender the outstanding principal amount on each Loan, together with all accrued and unpaid interest
thereon and any other accrued and unpaid Obligations, on the earliest to occur of: (i) the applicable Maturity Date; and (ii) the date
of the acceleration of the Obligations pursuant to Section 11.2 of this Agreement.

 

(b)
In addition to the interest payments set forth in Section 4.2, the Borrower shall pay to Lender on account of principal of each Loan
the amounts set forth on the Repayment Schedule.

 

(c)
All payments to be made by the Borrower to Lender hereunder shall be made to Lender by wire transfer in accordance with the wire instructions
given by Lender to the Borrower in writing from time to time.

 

	3.2	Prepayments.

 

Without
the prior written consent of Lender, which may be withheld or conditioned by Lender in its sole discretion, the outstanding principal
of Loans shall not be prepaid prior to the applicable Maturity Date of such Loans. Any amounts prepaid or repaid (to the extent permitted
by Lender) shall not be re-borrowed and shall be applied (i) firstly in reduction of accrued and unpaid interest and all other amounts
then outstanding (other than the principal amount of the relevant Loan), and (ii) thereafter, in reduction of the principal amount of
such Loan.

 

    	23

    	 

    

 

	3.3	General Matters.

 

All
payments made by the Borrower shall be made without set-off, recoupment or counterclaim. The Loan shall, if requested by Lender, in Lender’s
sole discretion, be evidenced by one or more promissory notes in form and substance satisfactory to Lender. However, if such Loan is
not so evidenced, the Loan made by Lender, including rates of interest, fees and other charges, may be evidenced by entries upon the
books and records maintained by Lender which books and records shall constitute conclusive evidence thereof in the absence of manifest
error.

 

ARTICLE
4 - INTEREST, FEES AND CHARGES

 

	4.1	Rate of Interest.

 

(a)
First Tranche and Second Tranche. Subject to Section 4.3, the principal amount of the First Tranche and the Second Tranche and other
outstanding Obligations relating to the First Tranche and the Second Tranche shall bear interest at a rate equal to 15% per annum compounded
quarterly; provided, however, that upon the occurrence of an Equity Financing interest on the First Tranche only shall thereafter be
calculated at a rate equal to 13% per annum compounded quarterly. In each case such interest shall be payable in arrears in accordance
with Section 4.2 and calculated in accordance with Section 4.4(a).

 

(b)
Third Tranche. Subject to Section 4.3, the principal amount of the Third Tranche and other outstanding Obligations relating to the
Third Tranche shall bear interest from the Closing Date to the date paid, at a rate equal to 10.5% per annum compounded quarterly. In
each case such interest shall be payable in arrears in accordance with Section 4.2 and calculated in accordance with Section 4.4(b).

 

(c)
Additional Tranches. Subject to Section 4.3, the principal amount of each Additional Tranche and other outstanding Obligations relating
to such Additional Tranche shall bear interest from the date of the advance thereof to the date paid, at a rate equal to 10.5% per annum
compounded quarterly. In each case such interest shall be payable in arrears in accordance with Section 4.2 and calculated in accordance
with Section 4.4(b).

 

	4.2	Payment of Interest.

 

The
Borrower shall pay Lender all accrued and unpaid interest on the principal amount of the Second Tranche then outstanding monthly in arrears
in cash on the eleventh (11th) day of each month and pay Lender all accrued and unpaid interest on the principal amount of
all other Loans (including, for certainty, any Additional Tranches) then outstanding and the outstanding amount of other Obligations
quarterly in arrears in cash on each Interest Payment Date, starting with the Interest Payment Date falling on September 30, 2017. For
certainty, the final payment date with respect to interest and principal owing under the First Tranche shall be January 20, 2018.

 

    	24

    	 

    

 

	4.3	Default Rate of Interest.

 

Upon
and after the occurrence of an Event of Default under Section 11.1, and during the continuation thereof, the principal amount of the
Loan and the other Obligations shall bear interest at a rate per annum equal to the interest rate otherwise payable pursuant to Section
4.1 plus five percent (5%) and such interest shall be calculated daily and compounded quarterly and shall be payable on demand by Lender.

 

	4.4	Computation of Interest
  and Fees.

 

(a)
First Tranche and Second Tranche. With respect to the First Tranche, interest shall be determined daily and compounded quarterly
not in advance, and with respect to the Second Tranche, interest shall be determined daily and compounded monthly not in advance, in
each case both before and after demand, default and judgment and shall be computed on the actual number of days elapsed over a year of
three hundred and sixty-five (365) days or three hundred and sixty-six (366) days, as the case may be.

 

(b)
Third Tranche and Additional Tranches. With respect to the Third Tranche and any Additional Tranches, interest shall be determined
daily and compounded quarterly not in advance, both before and after demand, default and judgment and shall be computed on a 360-day
basis.

 

	4.5	Maximum Interest.

 

It
is the intent of the parties that the rate of interest and the other charges to the Borrower under this Agreement shall be lawful; therefore,
if for any reason the interest or other charges payable under this Agreement are found by a court of competent jurisdiction, in a final
determination, to exceed the limit which Lender may lawfully charge the Borrower, then the obligation to pay interest and other charges
shall automatically be reduced with retroactive effect to such limit and, if any amount in excess of such limit shall have been paid,
then such amount shall be refunded to the Borrower.

 

	4.6	Origination Fee.

 

The
Borrower will pay to Lender an origination fee equal to $200,000 (the “Origination Fee”), being 2% of the Third Tranche
amount, which will be fully earned and payable on the date hereof.

 

	4.7	Work Fee.

 

The
Borrower will pay to Lender a work fee equal to $100,000 (the “Work Fee”), being 1% of the Third Tranche amount, which
will be fully earned and payable at the earlier of August 1, 2017 and the Closing Date. For greater certainty, the said fee is payable
whether or not the Third Tranche is advanced.

 

	4.8	Success Fees.

 

On
(i) the Maturity Date of each Loan advanced hereunder on or after the date hereof (including, for certainty, the Third Tranche and every
Additional Tranche), or (ii) at the option of the Lender, on the date of the acceleration by Lender of each such Loan advanced hereunder
on or after the date hereof pursuant to Section 11.2 hereof (each, a “Calculation Date”) the Borrower shall pay the
Lender a success fee payable with respect to each Loan so advanced by issuance and delivery by the Borrower to the Lender of such number
of common shares being equal 10% of such Loan, divided by the lesser of (A) $1.50, (B) the lowest price at which any common shares were
issued by the Borrower in any offering or equity financing or other transaction between the Closing Date and the Calculation Date of
the relevant Loan, and (C) the Current Market Price on the Calculation Date of the relevant Loan (“Success Fee Shares”).
Within five (5) Business Days of each Calculation Date, the Borrower shall, at its option, either: (X) issue and deliver the relevant
number of Success Fee Shares to the Lender or (Y) make a cash payment to the Lender in an amount equal to the number of Success Fee Shares
otherwise issuable multiplied by the Current Market Price as of the relevant Calculation Date.

 

    	25

    	 

    

 

	4.9	Lender’s Expenses.

 

The
Borrower shall reimburse Lender for all reasonable costs and expenses (including without limitation, reasonable accounting, valuation
and consultant fees and expenses and reasonable legal fees and expenses in each applicable jurisdiction) incurred by Lender before or
after the Closing Date in connection with: (a) the preparation, negotiation, execution and delivery of this Agreement and the other Loan
Documents and the documentation and consummation of the transactions contemplated hereby and thereby (whether or not a given Loan transaction
is consummated and whether such transactions are effected concurrently with the funding of a Loan or subsequently), including matters
relating to the post-closing deliverables contemplated by this Agreement, to Lender’s Distribution Agreements and, for certainty,
to Qualified Acquisitions (including the consideration thereof) and Additional Tranches (whether or not advanced), as well as any amendments,
modifications or waivers of the provisions hereof or thereof, including, without limitation, security and other public record searches,
lien filings, express mail or similar express or messenger delivery, due diligence costs and expenses, (b) its administration and interpretation
of this Agreement and the other Loan Documents and its seeking to collect, protect or enforce any rights in or to the Collateral or incurred
by Lender in seeking to collect any Obligations and to administer and enforce any of its rights under this Agreement and the other Loan
Documents. All such costs, expenses and charges incurred on or prior to August 1, 2017 or the Closing Date, as applicable, shall be paid
on such date, and all such costs, expenses and charges incurred after the Closing Date will constitute Obligations hereunder, shall be
payable by the Borrower to or to the order of Lender on demand and, if overdue by 30 days or more, until paid, will bear interest at
the Deemed Interest Rate.

 

	4.10	Illegality.

 

If
any Applicable Law coming into force after the Closing Date, or if any change in any existing Applicable Law or in the interpretation
or application thereof by any court or Governmental Authority, now or hereafter makes it unlawful for Lender to have advanced or acquired
interest in the Loan or to give effect to its obligations in respect thereof, Lender may, by written notice thereof to the Borrower,
declare its obligations under this Agreement to be terminated, and the Borrower shall prepay, within the time required by such law, the
principal amount of the Loan together with accrued interest thereon and any other amounts owing under this Agreement as may be applicable
to the date of such payment. If any such event shall, in the opinion of Lender, only affect part of its obligations under this Agreement,
the remainder of this Agreement shall be unaffected and the obligations of the Loan Parties under the Loan Documents shall continue.

 

    	26

    	 

    

 

	4.11	Increased Costs.

 

Notwithstanding
any other provision herein, in the event that the introduction of or any change in any Applicable Law or in the interpretation or application
thereof, or compliance by Lender with any request or directive (whether or not having the force of law) from any Governmental Authority:

 

(a)
subjects Lender to any new tax of any kind whatsoever with respect to this Agreement, the other Loan Documents or the Loan, or changes
the basis of taxation of payments to Lender of principal, interest or any other amount payable hereunder (except for changes in the rate
of tax imposed on the overall net income of Lender); or

 

(b)
imposes, modifies, holds applicable any reserve, special deposit, compulsory loan or similar requirement against Property held by, or
deposits or other obligations in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of
funds by, any office of Lender;

 

and
the result of any of the foregoing is to materially increase the cost to Lender of agreeing to make, making, continuing or maintaining
or participating in the Loan, or to materially reduce any amount receivable thereunder or to materially increase the withholding taxes
payable then, in any such case, the Borrower shall pay Lender, after demand by Lender, any additional amounts necessary to compensate
Lender on an after-tax basis for such additional cost or reduced amount receivable or increased withholding taxes payable with respect
to any Loan Document or the Loan made hereunder.

 

ARTICLE
5 - TERMINATION AND REDUCTION

 

	5.1	Termination.

 

This
Agreement shall be in effect from the date hereof until the later of (i) the indefeasible repayment and performance in full of the Obligations
and (ii) the Termination Date. At such time:

 

(a)
the Borrower shall provide a release of any obligations and obligations of Lender and its Affiliates, in form and substance reasonably
satisfactory to Lender; and

 

(b)
Lender shall, at the Borrower’s cost and expense, deliver to the Borrower a termination, discharge and release of all security
in form and substance reasonably satisfactory to the Borrower and such other documents and instruments as the Borrower may reasonably
request in order to effect or evidence the termination of this Agreement and the security.

 

	5.2	Continuing Obligations.

 

Nothing
in Section 5.1 shall affect any rights, liabilities and obligations of Borrower or Lender set out in this Agreement or in any other Loan
Document which are stated to survive payment of the Obligations and termination of this Agreement or the Loan Documents, as the case
may be.

 

    	27

    	 

    

 

ARTICLE
6 - SECURITY AND COLLATERAL

 

	6.1	Security Delivered on or Prior to the Closing Date.

 

On
or prior to the Closing Date (subject to the post-closing delays noted below), as continuing collateral security for the payment and
satisfaction of all Obligations, the Loan Parties shall deliver or cause to be delivered to Lender Security on the Collateral, including
the following Security Documents, all of which shall be in form and substance satisfactory to Lender:

 

(a)
a general security agreement from each Loan Party in favour of Lender constituting a first-priority Lien (subject only to Permitted Liens)
on all of the present and future Property of each Loan Party in all relevant jurisdictions;

 

(b)
the shares of the Subsidiaries, duly pledged and endorsed for transfer in blank (to be delivered within 10 days of the Closing Date);

 

(c)
a collateral assignment from each Loan Party of its interests in all Material Contracts and Material Licenses;

 

(d)
such Control Agreements as Lender may require (to be delivered within 60 days of the Closing Date);

 

(e)
landlord access agreement with the landlord of any leased premises of any Loan Party (to be delivered within 30 days of the Closing Date);

 

(f)
Intellectual Property security agreement from each Loan Party in favour of Lender, duly filed in such intellectual property registries
as the Lender shall require (Borrower shall effect the necessary filings in the appropriate intellectual property registries in Canada,
the United, the European Union, Australia and with the World Intellectual Property Organization (and any other registries designated
by Knight) within 30 days of the Closing Date).

 

(g)
Waivers from bailees or warehouseman with respect to any premises where Property of the Borrower or any other Loan Party having a book
value in excess of $25,000 may be located from time to time (to be delivered within 30 days of the Closing Date);

 

(h)
a guarantee agreement of the Obligations from each Subsidiary of the Borrower in favour of Lender;

 

(i)
specific security agreement granted by the Borrower in respect of the issued share capital in Nomad;

 

(j)
confirmation agreements from the Borrower, Nomad and Breakthrough in favour of Lender in relation to the Security Documents delivered
prior to the Closing Date, including those delivered pursuant to the Existing Loan Agreement; and

 

(k)
such other agreements as Lender may require from time to time. 28

 

    	28

    	 

    

 

	6.2	Further Assurances.

 

The
Borrower shall take or cause to be taken such action and execute and deliver or cause to be executed and delivered to Lender such agreements,
documents and instruments as Lender shall request, and register, file or record the same (or a notice or financing statement in respect
thereof) in all offices where such registration, filing or recording is, in the opinion of Lender or Lender’s counsel, necessary
or advisable to constitute, perfect and maintain the Security Documents referred to in Section 6.1 as first-ranking Liens of Borrower
or the Person granting such Liens, subject only to the Permitted Liens, in all jurisdictions reasonably required by Lender, in each case
within a reasonable time after the request therefor by Lender or Lender’s counsel, and in each case in form and substance satisfactory
to Lender and Lender’s counsel, acting reasonably.

 

	6.3	Security Effective Notwithstanding Date of Loan.

 

The
Security and the Security Documents shall be effective and the undertakings in this Agreement and the other Loan Documents with respect
thereto shall be continuing, whether the monies hereby or thereby secured or any part thereof shall be advanced before or after or at
the same time as the creation of any such Security or before or after or upon the date of execution of this Agreement. The Security shall
not be affected by any payments on this Agreement or any of the other Loan Documents, but shall constitute continuing security to and
in favour of Lender for the Obligations from time to time.

 

	6.4	No Merger.

 

The
Security and the Security Documents shall not merge in any other security granted by the Borrower. No judgment obtained by or on behalf
of Lender shall in any way affect any of the provisions of this Agreement, the Security Documents or the other Loan Documents. For greater
certainty, no judgment obtained by or on behalf of Lender shall in any way affect the obligation of the Borrower to pay interest or other
amounts at the rates, times and in the manner provided in this Agreement, or the obligations of the other Loan Parties under the Security.

 

	6.5	Release of Security.

 

At
the later of (i) the due payment and performance in full of all Obligations and (ii) the Termination Date, Lender will, at the cost and
expense of the Borrower, release and discharge the right and interest of Lender in the Collateral, following indefeasible payment and
performance in full of all Obligations.

 

In
addition, if any Property of any of the Loan Parties is Disposed of as permitted by this Agreement or is otherwise released from the
Security at the direction or with the consent of Lender, at the request, cost and expense of the Borrower (on satisfaction, or on being
assured of concurrent satisfaction, of any condition to or obligation imposed with respect to such Disposition), Lender shall discharge
such Property from the Security and deliver and re-assign to the Borrower or its Subsidiaries (without any representation or warranty)
any of such Property as is then in the possession of Lender.

 

    	29

    	 

    

 

ARTICLE
7 - REPRESENTATIONS AND WARRANTIES

 

	7.1	Representations and Warranties.

 

The
Borrower hereby makes the following representations:

 

(a)
Existence and Qualification. Each Loan Party (i) has been duly incorporated, amalgamated, formed, merged or continued, as the case
may be, and is validly subsisting and in good standing as a corporation, company or partnership, under the laws of its jurisdiction of
incorporation, amalgamation, merger, formation or continuance, as the case may be, (ii) is duly qualified to carry on its business in
each jurisdiction in which it carries on business except for non-qualification which has no adverse effect on the Business, and (iii)
has all required Material Licenses.

 

(b)
Power and Authority. Each Loan Party has the corporate, company or partnership power, capacity and authority, as the case may be,
(i) to enter into, and to exercise its rights and perform its obligations under, the Loan Documents to which it is a party and all other
instruments and agreements delivered by it pursuant to any of the Loan Documents, and (ii) to own its Property and carry on its business
as currently conducted.

 

(c)
Execution, Delivery, Performance and Enforceability of Documents. The execution, delivery and performance of each of the Loan Documents
to which each Loan Party is a party has been duly authorized by all corporate or limited liability company, as the case may be, actions
required, and each of such documents has been duly executed and delivered by it. Each Loan Document to which each Loan Party is a party
constitutes the legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective
terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally and by principles of equity).

 

(d)
Compliance with Applicable Laws, Organizational Documents and Contractual Obligations. None of the execution or delivery of, the
consummation of the transactions contemplated in, or the compliance with the terms, conditions and provisions of any of, the Loan Documents
conflicts with or will conflict with, or results or will result in any breach of, or constitutes a default under or contravention of,
any Applicable Law, the Loan Parties’ respective Organizational Documents or any Material Contract or Material License, or results
or will result in the creation or imposition of any Liens upon any of its Property except for Permitted Liens.

 

(e)
Privacy Laws. Without in any way limiting anything else set forth herein, the Borrower and the other Loan Parties have established
policies and procedures with respect to the collection, use, transfer and disclosure of information (including health information) about
identifiable individuals including with respect to employees, customers, patients and health care professionals (“Personal Data”)
compliant with Applicable Law relating to privacy and data protection (“Privacy Law”), and have been and are operating
at all times in compliance in all material respects with all such Applicable Law. None of the Loan Parties has had any breach, misappropriation,
or unauthorized collection, use or disclosure of any Personal Data (a “Data Breach”) or are a party to any Action
Request or Violation Notice which has been instituted or threatened involving a claim against them for any breach, misappropriation or
unauthorized collection, use, transfer or disclosure or any breach of any Applicable Law relating to privacy and data protection of Personal
Data. Without limiting the foregoing, (i) the Loan Parties have obtained all necessary and required consents with respect to the collection,
use and disclosure of Personal Data; (ii) the transfers of any Personal Data by the Borrower to the Lender arising from or pursuant to
this Agreement or any other Loan Document will comply in all material respects with any Applicable Law relating to privacy law and data
protection law in all relevant jurisdictions (iii) the Loan Parties have obtained all necessary and required consents with respect to
the sending of commercial electronic messages to third parties; and (d) the Borrower has full records of all privacy law consents or
such other consents so required obtained in writing, including the record of the date, time, purpose, and manner of each consent so as
to demonstrate the context in which the consenting party provided consent, with such records including full copies of any materials the
consenting party may have encountered in providing such consent.

 

    	30

    	 

    

 

(f)
Consent Respecting Loan Documents. Each Loan Party has obtained, made or taken all consents, approvals, authorizations, declarations,
registrations, filings, notices and other actions whatsoever required (except for registrations or filings which may be required in respect
of the Security Documents) to enable it to execute and deliver each of the Loan Documents to which it is a party and to consummate the
transactions contemplated in the Loan Documents, except where the failure to do so is immaterial considering the nature of the Loan Documents.

 

(g)
Intellectual Property/License Agreements. Each Loan Party owns or licenses or otherwise has the right to use all Intellectual Property
that is material and necessary and useful to continue to conduct its Business as heretofore conducted by it or proposed to be conducted,
details of all of which as of the Closing Date are described in Schedule 7.1(g). As of the date hereof, no Loan Party has any
Intellectual Property registered, or subject to pending applications, in the United States Patent and Trademark Office, the Canadian
Intellectual Property Office or any similar office or agency in the United States, Canada, Australia, any State or Province thereof,
any political subdivision thereof or in any other country, other than those described in Schedule 7.1(g). and has not granted
any licenses with respect thereto other than as set forth in Schedule 7.1(g). No event has occurred which permits or would permit
after notice or passage of time or both, the revocation, suspension or termination of such rights and each Loan Party will be entitled
to continue to use, practice and exercise rights in all of the Intellectual Property. To the Borrower’s knowledge, no slogan or
other advertising device, product, process, method, substance or other Intellectual Property or goods bearing or using any Intellectual
Property presently contemplated to be sold by or employed by any Loan Party infringes any patent, trademark, servicemark, tradename,
copyright, license or other Intellectual Property owned by any other Person presently and no claim or litigation is pending or, to the
Borrower’s knowledge, threatened against or affecting any Loan Party contesting its right to sell or use any such Intellectual
Property. Schedule 7.1(g) sets forth all of the agreements or other arrangements of the Loan Parties pursuant to which any Loan
Party has a license or other right to use any trademarks, logos, designs, representations or other Intellectual Property owned by another
person as in effect on the date hereof and the dates of the expiration of such agreements or other arrangements of any Loan Party as
in effect on the date hereof (collectively, together with such agreements or other arrangements as may be entered into by a Loan Party
after the date hereof, collectively, the “Licenses” or “License Agreements” and individually, a
“License” or “License Agreement”).

 

    	31

    	 

    

 

(h)
Jurisdiction, Current and Prior Names. Each Loan Parties jurisdiction of organization, chief executive office, legal name and prior
names, trade-names and division names are described on Schedule 7.1(h) as of the date hereof, and such schedule also lists all
jurisdictions of organization and legal names of such Loan Party for the six (6) months preceding the date hereof, if different.

 

(i)
Corporate Structure. The Loan Parties have no Subsidiaries, other than the Subsidiaries described in Schedule 7.1(i). The
Loan Parties are not engaged in any joint venture or partnership with any other Person.

 

(j)
Litigation. Except as described in Schedule 7.1(j), to the best of Borrower’s knowledge after due inquiry, there are
no actions, suits, counterclaims or proceedings which are pending or threatened against the Loan Parties where more than $100,000 is
at issue.

 

(k)
Material Contracts and Material Licenses. Schedule 7.1(k) (as amended from time to time and updated with the delivery of each
Compliance Certificate pursuant to Section 8.2), accurately sets out all Material Contracts and Material Licenses. A true and complete
certified copy of each Material Contract and Material License existing at the Closing Date has been delivered to Lender and each Material
Contract and Material License is in full force and effect. No event has occurred and is continuing which would constitute a material
breach of or a default under any such Material Contract or Material License. Each Material Contract to which the Loan Parties are a party
is binding upon such Loan Party and, to Borrower’s knowledge, is a binding agreement of each other Person who is a party to the
Material Contract. It has obtained, as of the Closing Date, all necessary consents, including consents of landlords, licensees, Government
Authorities and other third parties to the granting of a security interest in each Material Contract and Material License pursuant to
the Security Documents.

 

(l)
No Liens. No security agreement, financing statement or analogous instrument exists as at the Closing Date with respect to any of
the Collateral other than any security agreement, financing statement or analogous instrument evidencing Permitted Liens.

 

(m)
Title to Collateral. The Loan Parties are the lawful owners of all Collateral now purportedly owned or hereafter purportedly acquired
by them, free from all Liens, whether voluntarily or involuntarily created and whether or not perfected, other than Permitted Liens.

 

(n)
Financial Information. All of the quarterly and annual Financial Statements or other financial information which have been furnished
to Lender, in connection with this Agreement are complete in all material respects and such Financial Statements or other financial information
fairly present the results of operations and financial position of the Borrower as of the dates referred to therein and have been prepared
in accordance with GAAP. All other financial information provided to Lender (including, without limitation, the Annual Business Plan)
are complete in all material respects and based on reasonable assumptions and expectations.

 

    	32

    	 

    

 

(o)
Permitted Debt. As of the Closing Date (giving effect to the making of the Third Tranche), the Loan Parties are not obligated, whether
directly or indirectly, for any Debt other than the Permitted Debt.

 

(p)
Taxes. Except as disclosed in Schedule 7.1(p), each Loan Party has duly and timely filed all tax returns required to be filed
by it and has paid or made adequate provision for the payment of all Taxes levied on its Property or income which are showing therein
as due and payable, including interest and penalties, or has accrued such amounts in its financial statements for the payment of such
Taxes except for Taxes which are not material in amount or which are not delinquent or if delinquent are being contested, and there is
no material action (except, after the date of this Agreement, as is disclosed to Lender in writing), suit, proceeding, investigation,
audit or claim now pending, or to its knowledge, threatened by any Governmental Authority regarding any Taxes nor has it agreed to waive
or extend any statute of limitations with respect to the payment or collection of Taxes.

 

(q)
Full Disclosure. All information provided or to be provided to Lender by or on behalf of the Loan Parties in connection with the
Loan is, to Borrower’s or such Loan Party’s knowledge, true and correct in all material respects and none of the documentation
furnished to Lender by or on behalf of it, to Borrower’s knowledge, omits or will omit as of such time, a material fact necessary
to make the statements contained therein not misleading in any material way, and all expressions of expectation, intention, belief and
opinion contained therein were honestly made on reasonable grounds (and any other Person who furnished such material on behalf of it).

 

(r)
Insolvency. Each Loan Party (i) has not committed any act of bankruptcy, (ii) is not insolvent, will not be rendered insolvent hereby,
nor has proposed, nor given notice of its intention to propose, a compromise or arrangement to its creditors generally, nor (iii) has
any petition for a receiving order in bankruptcy filed against it, made a voluntary assignment in bankruptcy, taken any proceeding with
respect to any compromise or arrangement, taken any proceeding to have itself declared bankrupt or wound-up, taken any proceeding to
have a receiver appointed of any part of its Property.

 

(s)
Location of Collateral. The offices where each Loan Party keeps its books, records and accounts (or copies thereof) concerning the
Collateral, each Loan Party’s principal place of business and each Loan Party’s other significant places of business and
significant locations of Collateral are as set forth in Schedule 7.1(s).

 

(t)
Owned Real Property. A list of each Loan Party’s owned real property is as set forth in Schedule 7.1(t).

 

(u)
Leased Real Property. A list of each Loan Party’s leased real property is as set forth in Schedule 7.1(u).

 

    	33

    	 

    

 

(v)
Deposit Accounts and Security Accounts. A list of the Borrower’s Deposit Accounts and Securities Accounts as of the Closing
Date is set forth in Schedule 7.1(v), including in each case the name and address of each depository, the name in which the account is
held, a general description of the purpose of the account and the complete account number therefor.

 

(w)
Environmental Laws. Each Loan Party complied with all Environmental Laws applicable to the construction and operation of its Property
and businesses, except where any non-compliance would not reasonably be expected to have a Material Adverse Effect; each Loan Party has
no material contingent liability with respect to non-compliance with Environmental Laws or the generation, handling, use, storage, or
disposal of Materials of Environmental Concern; and, without limiting the generality of the foregoing, except as would not reasonably
be expected to have a Material Adverse Effect, the Loan Parties:

 

(i)
have not received any Action Request, Violation Notice, summons, complaint, order or other notice that it is not in compliance with,
or that any Governmental Authority is investigating its compliance with, Environmental Laws:

 

(ii)
have no knowledge or reason to believe that operations or any Property of or occupied by the Loan Parties or in the Loan Parties’
charge, management or control are not in compliance with all applicable Environmental Laws and each of their Properties is free:

 

(A)
from contamination by, and there has not been thereon a release, discharge or emission of, any Materials of Environmental Concern which
is prohibited, controlled or regulated under any Environmental Law; and

 

(B)
of underground storage tanks, landfills, land disposals and dumps;

 

(iii)
have not filed any notice, or received notice, under any Applicable Law, including any Environmental Law, indicating past or present
treatment, storage or disposal of a Material of Environmental Concern or reporting any spill or release of a Material of Environmental
Concern into the environment;

 

(iv)
have no contingent liability of which the Borrower has knowledge or reasonably should have knowledge in connection with any release of
any Material of Environmental Concern;

 

(v)
do not generate, transport, treat or dispose of any Material of Environmental Concern in any manner which is not in compliance with all
applicable Environmental Laws; and

 

(vi)
have not disposed of any Material of Environmental Concern in or on the ground of the Loan Parties’ real properties or premises
leased by the Loan Parties.

 

(x)
Labor Matters. Except as provided on Schedule 7.1(x):

 

(i)
there is no collective bargaining agreement or other labour contract covering employees of the Loan Parties;

 

    	34

    	 

    

 

(ii)
there is no pending or, to the best of its knowledge, threatened strike, work stoppage, material unfair labour practice claims, or other
material labour dispute against or affecting the Loan Parties or their employees which would reasonably be expected to have a Material
Adverse Effect;

 

(iii)
there are no controversies pending or threatened between the Loan Parties and any of their employees, other than employee grievances
arising in the ordinary course of business which would not reasonably be expected to have a Material Adverse Effect; and

 

(iv)
no employee of the Borrower or any of its Subsidiaries, and no consultant, independent contractor or agent engaged by the Borrower or
any of its Subsidiaries (and no employee of such consultant or independent contractor) is an illegal or undocumented worker. All employees,
consultants, independent contractors or agents have all work permits, visas, authorizations or status, as the case may be, required to
perform work or provide services in the United States (or in the case of non-US subsidiaries, such other relevant jurisdiction in which
a Subsidiary resides); and

 

(v)
each Loan Party is in compliance in all material respects with all Applicable Laws respecting employment and employment terms, conditions
and practices.

 

(y)
Pension Plans. Except as disclosed on Schedule 7.1(y), the Loan Parties do not sponsor or maintain or contribute to a Pension
Plan. With respect to any Pension Plan adopted or to which the Loan Parties may become obliged to contribute, no failure to remit contributions
(other than immaterial amounts) has occurred with respect to any such Pension Plan, that is sufficient to give rise to a Lien under any
Applicable Laws of any jurisdiction (other than a Permitted Lien), and no condition exists and no event or transaction has occurred with
respect to any such Pension Plan which could result in the incurrence by a Loan Party of any material liability, fine or penalty. Each
Pension Plan is in compliance in all material respects with all Applicable Laws pertaining to pension benefits and Tax laws, (i) all
contributions (including employee contributions made by authorized payroll deductions or other withholdings) required to be made to the
appropriate funding agency in accordance with all Applicable Laws and the terms of such Pension Plan have been made in accordance with
all Applicable Laws and the terms of such Pension Plan, except for amounts which are immaterial, (ii) all liabilities under such Pension
Plan are fully funded, on a going concern and solvency basis, in accordance with the terms of the respective Pension Plans, the requirements
of applicable pension benefits laws and of applicable regulatory authorities and the most recent actuarial report filed with respect
to the Pension Plan. No event has occurred and no conditions exist with respect to any such Pension Plan that has resulted or could reasonably
be expected to result in such Pension Plan having its registration revoked or refused for the purposes of any applicable pension benefits
or tax laws or being placed under the administration of any relevant pension benefits regulatory authority or being required to pay any
taxes or penalties under any applicable pension benefits or tax laws.

 

(z)
ERISA. (i) With respect to each ERISA Plan, each Loan Party and each other member of its Controlled Group has fulfilled its obligations
under the minimum funding standards of and is in compliance in all material respects with ERISA and the Revenue Code to the extent applicable
to it and has not incurred any liability to the PBGC or under Title IV of ERISA,
other than a liability to the PBGC for premiums under Section 4007 of ERISA; (ii) it does not have any contingent liabilities with respect
to any post-retirement benefits under a Welfare Plan, other than liability for continuation coverage described in Part 6 of Title I of
ERISA or as required under Applicable Law requirements for health continuation coverage, (iii) neither a Reportable Event nor a Prohibited
Transaction has occurred and is continuing with respect to any ERISA Plan; (iv) no notice of intent to terminate an ERISA Plan has been
filed, nor has any ERISA Plan been terminated; (v) no circumstances exist which constitute grounds entitling the PBGC to institute proceedings
to terminate, or appoint a trustee to administer, ERISA Plan, nor has the PBGC instituted any such proceedings; (vi) neither it nor any
member of its Controlled Group has completely or partially withdrawn from a multiemployer plan; (vii) it and all members of its Controlled
Group have met their minimum funding requirements under ERISA with respect to all of their ERISA Plans and the present value of all vested
benefits under each ERISA Plan exceeds the fair market value of all such ERISA Plan assets allocable to such benefits, as determined
on the most recent valuation date of such ERISA Plan and in accordance with the provisions of ERISA; and neither it nor any member of
its Controlled Group has incurred any liability to the PBGC under ERISA.

 

    	35

    	 

    

 

(aa)
Computer Software. Each Loan Party owns or has licensed for use or otherwise has the right to use or to acquire or License all
of the material software necessary to conduct its businesses. All computer equipment owned or used by the Loan Parties and necessary
for the conduct of business has been properly maintained and is in good working order for the purposes of on-going operation, subject
to ordinary wear and tear for computer equipment of comparable age.

 

(bb)
Insurance. Each Loan Party has maintained and maintains insurance which is in full force and effect that complies with all of
the requirements of this Agreement. Each Loan Party has maintained and maintains product liability insurance which is in full force and
effect covering at least $5,000,000 per claim and $5,000,000 in the aggregate. Schedule 7.1(bb) lists all existing insurance policies
maintained by the Loan Parties as of the Closing Date.

 

(cc)
OFAC. The Loan Parties are not in violation of any of the country or list based economic and trade sanctions administered and
enforced by OFAC or any of the United States Department of State, the United States Department of Commerce or any other government authority
or pursuant to any Executive Order of the President of the United States of America. The Borrower (i) is not a Sanctioned Person or a
Sanctioned Entity or named on any other list of terrorists, terrorist organizations or narcotics traffickers maintained pursuant to any
of the Rules and Regulations of OFAC or any similar lists maintained by the aforementioned Governmental Authorities, (ii) has no more
than ten percent (10%) of its assets located in Sanctioned Entities or by Sanctioned Persons, or (iii) derives no more than ten percent
(10%) of its revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. or other Persons described
in clause (i).

 

(dd)
Anti-Money Laundering, Etc. Each Loan Party has conducted all transactions, negotiations, discussions and dealings in full compliance
with anti-bribery and anti-corruption laws and regulations applicable in any jurisdiction in which they are located or conducting business.
No Loan Party has made any offer, payment, promise to pay or authorization of payment of money or anything of value to any government
official, or any other person while having reasonable grounds to believe that all or a portion of such money or thing of value will be
offered, given or promised, directly or indirectly, to a government official, for the purpose of (i) assisting the parties in obtaining,
retaining or directing business; (ii) influencing any act or decision of a government official in his or its official capacity; (iii)
inducing a government official to do or omit to do any act in violation of his or its lawful duty, or to use his or its influence with
a government or instrumentality thereof to affect or influence any act or decision of such government or department, agency, instrumentality
or entity thereof; (iv) securing any improper advantage; or (v) otherwise violating the U.S. Foreign Corrupt Practices Act of 1977, as
amended from time to time, including any replacement legislation; The operations of each of the Loan Parties are and have been conducted
at all times in compliance with applicable financial recordkeeping and reporting requirements of the money laundering statutes of all
applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any Governmental Authority (collectively, the “Applicable Money Laundering Laws”) and no action, suit
or proceeding by or before any Governmental Authority involving the Borrower with respect to Applicable Money Laundering Laws is pending
or threatened;

 

    	36

    	 

    

 

(ee)
Investment Company. No Loan Party is an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940 of the United Sates, as amended.

 

(ff)
No Margin Stock. No Loan Party is engaged in the business of extending credit for the purpose of purchasing or carrying margin
stock. None of the proceeds of the Loan shall be used to purchase or carry, or to reduce or retire or refinance any credit incurred to
purchase or carry, any margin stock (within the meaning of Regulations U and X of the Board of Governors of the Federal Reserve System
of the United States) or to extend credit to others for the purpose of purchasing or carrying any margin stock.

 

(gg)
Perfection Certificate. The information set forth in the Perfection Certificate (and each Perfection Certificate delivered in
accordance herewith) is true, correct and complete as of the date set forth therein and will be true, correct and complete on the Closing
Date.

 

(hh)
Purchase Agreements. The accuracy and completeness of each of the representations and warranties set out in the Nomad Purchase
Agreement, the share purchase agreement concerning the Breakthrough Acquisition and Section 5 of the FNL Asset Purchase Agreement, including
the definitions used therein and all such representations, warranties and definitions are hereby incorporated into this Agreement by
reference as if same were herewith recited at length and made directly by the Borrower for the benefit of Lender. Such representations
and warranties shall survive for so long as the Obligations remain outstanding, notwithstanding any shorter survival period under agreements.

 

(ii)
No Material Adverse Effect. No event has occurred which has had or could reasonably be expected to have a Material Adverse Effect.

 

(jj)
No Default or Event of Default. No Default or Event of Default has occurred and is continuing.

 

    	37

    	 

    

 

(kk)
Regulatory Matters.

 

(i)
Except as set forth on Schedule 7.1(kk) and (i) each Loan Party has obtained and holds in its name all Material Licenses required
by the FDA, Health Canada or any other Governmental Authority, for the conduct of their Business as currently conducted, to permit any
manufacturing, distribution, sales, testing, marketing or research and development activities of such Loan Party to date (the “Activities
to Date”) with respect to each Product; (B) all such Material Licenses are in full force and effect and no event has occurred
which allows, or after notice or lapse of time would allow, revocation or termination thereof or results in any other material impairment
of the rights of the holder of any Material License; (C) each Loan Party in compliance in all respects with all terms and conditions
of each Material License, and with all Applicable Laws and requirements pertaining to the Activities to Date with respect to each Product;
(D) each Loan Party is in compliance with all Applicable Laws regarding registration or notification for the site at which the Products
are manufactured, processed, packed, held for distribution or from which and into which they are distributed; (ii) all manufacturing
operations performed by or on behalf of each Loan Party are in compliance with current good manufacturing practice requirements and Applicable
Laws and Material Licenses; and (iii) each Loan Party is in compliance with all reporting requirements for all Material Licenses, including,
without limitation plant registrations.

 

(ii)
All applications, notifications, submissions, information, claims, reports and statistics, and other data and conclusions derived therefrom,
utilized as the basis for or submitted in connection with any and all requests for a Material License from the FDA, Health Canada, or
other Governmental Authority relating to the Loan Parties or the Business or Products, when submitted to the FDA, Health Canada, United
States Department of Agriculture or other Governmental Authority were true, complete and correct in all material respects as of the date
of submission and any necessary or required updates, changes, corrections or modification have been submitted to the FDA, Health Canada,
or other Governmental Authority. The claims for the Products are valid and supported by proper research, design, testing, analysis and
disclosure.

 

(iii)
Except as set out in Schedule 7.1(kk), each Product that is subject to the Applicable Laws promulgated by a Regulatory Authority,
is manufactured, packaged, labelled, imported, exported, stored, distributed, sold (whether or not for consideration), advertised and
marketed in compliance with all such Applicable Laws, (except for immaterial non-compliance) as well as all material terms and conditions
imposed in any Licenses and permits issued in respect of the Products.

 

(iv)
None of the Loan Parties nor, to the knowledge of the Borrower, any officer, employee, contractor or agent of the Loan Parties has ever
made an untrue statement of material fact or fraudulent statement to a Regulatory Authority or failed to disclose a material fact required
to be disclosed to a Regulatory Authority, or committed any act, made any statement, or failed to make any statement, that would reasonably
be expected to provide a basis for the FDA to invoke its policy respecting “Fraud, Untrue Statements of Material Facts, Bribery,
and Illegal Gratuities,” set forth in 56 Fed. Reg. 46191 (September 10, 1991) or Health Canada or other Governmental Authority
to invoke any similar policy or law.

 

    	38

    	 

    

 

(xxiv)
No Loan Party has ever entered into a consent decree with the FDA, Health Canada or other Regulatory Authority or has been otherwise
subject to a consent decree entered into by the FDA, Health Canada or other Governmental Authority.

 

(xxv)
Except as set out in Schedule 7.1(kk), no Product has been recalled, withdrawn, suspended or discontinued (other than for commercial
or business reasons), the subject of warnings, “dear doctor” letters, investigator notices, safety alerts, “serious
adverse event” reports or other notice of action relating to an alleged lack of safety or regulatory compliance of any Products
by any Loan Party at any time, any clinical investigator and/or other third party, and the Loan Parties have not received any information
or report from any Governmental Authority, indicating that any of the Products, or ingredients therein, are unsafe or unsuitable for
its intended use or pose an unacceptable health risk.

 

(xxvi)
To the knowledge of Borrower after due inquiry, none of the Products or ingredients therein have been the subject of a warning, consumer
alert or other cautionary statement issued by any Governmental Authority nor is there any ongoing complaint or investigation by any Governmental
Authority relating to the advertising or marketing practices used for any Product. Other than as provided for in Schedule 7.1(kk),
Borrower is not aware of any facts that would indicate that any Governmental Authority has or will prohibit or materially restrict the
marketing, sale, distribution or use in the United States, Canada or Europe of any Product or the operation or use of any facility currently
used to produce, manufacture or distribute the Products. Without limiting the foregoing, no Loan Party (i) has had any Product or manufacturing
site subject to a Regulatory Authority (including Health Canada, FDA or the DEA) shutdown or import or export prohibition, (ii) has received
any FDA Form 483 or other Regulatory Authority written notice of inspectional observations, “warning letters,” “untitled
letters” or written requests or requirements to make changes to any Products or any Loan Party’s manufacturing facilities,
processes or procedures (including, but not limited to, packaging and labeling) that if not complied with could, individually or in the
aggregate, reasonably be expected to materially affect the Borrower, (iii) has received similar correspondence or notice from the FDA,
DEA, Health Canada or other Regulatory Authority in respect of their respective Businesses alleging or asserting material noncompliance
with any applicable Law, Material License or such requests or requirements of a Regulatory Authority, nor (iv) has received written notice
from any applicable Regulatory Authority that such Regulatory Authority is conducting an investigation or review of any Material License
or that such Permit has been revoked or withdrawn, nor has any such Regulatory Authority issued any order or recommendation stating that
the development, testing, sale, marketing and/or manufacturing of such product should cease. As of the date hereof, to the knowledge
of the Borrower or any of its Subsidiaries, neither the FDA, nor the DEA, Health Canada or any Governmental Authority is considering
any such action described in this paragraph.

 

(xxvii)
As of the date hereof, none of the Loan Parties or, to the knowledge of Borrower or any of its Subsidiaries, any of their respective
officers, key employees or agents has been convicted of any crime or engaged in any conduct that has resulted, or would reasonably be
expected to result, in debarment under Applicable Law, including, without limitation, 21 U.S.C. Section 335a. No claims, actions, proceedings
or investigations that would reasonably be expected to result in such a material debarment or exclusion are pending, or to the knowledge
of Borrower or any of its Subsidiaries, threatened, against Borrower or its Subsidiaries or any of their respective officers, employees
or agents.

 

    	39

    	 

    

 

(ix)
Each Loan Party and each of their respective directors, officers, employees, and agents (while acting in such capacity) is, and at all
times has been, in compliance with all health care Applicable Laws applicable to Borrower and its Subsidiaries or by which any or their
respective properties, businesses (including the Business), Products or other assets is bound or affected, including, without limitation,
the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), the civil
False Claims Act (31 U.S.C. §§ 3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the Federal
Civil Monetary Penalties Law (42 U.S.C. § 1320a-7a), all criminal laws relating to health care fraud and abuse including, without
limitation, 18 U.S.C. §§ 286, 287, 1001 and 1347, the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C.
§ 1320d et seq.), as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 (42 U.S.C. §
17921 et seq.), the Physician Payment Sunshine Act (42 U.S.C. § 1320a-7h), the exclusion laws (42 U.S.C. § 1320a-7), the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. §§ 301 et seq.), the Public Health Service Act (42 U.S.C. §§ 201 et seq.),
the Medicare Program (Title XVIII of the Social Security Act), the Medicaid Program (Title XIX of the Social Security Act), the Controlled
Substances Act (21 U.S.C. §§ 801 et seq.), the Criminal Code (Canada), the Corruption of Foreign Public Officials Act (Canada),
the Personal Information Protection and Electronic Documents Act (Canada) and any other federal or provincial law regulating privacy
of individually identifiable personal and personal health information, the Food and Drugs Act (Canada), the Controlled Drugs and Substances
Act (Canada), the Consumer Packaging and Labelling Act (Canada), the Natural Health Products Regulations (Canada), the Medical Devices
Regulations (Canada), the Ontario Drug Benefit Act (Ontario), the Drug Interchangeability and Dispensing Fee Act (Ontario) (“DIDFA”),
and any similar law and all the regulations promulgated pursuant to all such laws, and any policy statement or written guidance document
relating to all such laws, including, without limitation, the requirements for collection, reporting, and processing of any applicable
rebate, chargeback or adjustment, under applicable rules and regulations relating to the Medicaid Drug Rebate Program (42 U.S.C. §
1396r-8) and any state, provincial or territorial supplemental rebate program, Medicare average sales price reporting (42 U.S.C. §
1395w-3a), the Public Health Service Act (42 U.S.C. § 256b), the VA Federal Supply Schedule (38 U.S.C. § 8126) or under any
state, provincial or territorial pharmaceutical assistance program or U.S. Department of Veterans Affairs agreement, and any successor
government programs (collectively, the “Health Care Laws”). None of Loan Parties have received any pending or threatened
claim, suit, proceeding, hearing, enforcement, audit, investigation, arbitration or other action or any other notification, correspondence
or written or oral communication from any Governmental Authority, including, without limitation, FDA, Health Canada, the Executive Officer
appointed under DIDFA, DEA, the Centers for Medicare and Medicaid Services, and the Department of Health and Human Services Office of
Inspector General, of potential or actual non-compliance by, or liability of, the Borrower or any of its Subsidiaries, under any Health
Care Laws, in any such case which could reasonably be expected to have be material to the financial condition, property, assets, operations
or business of any Loan Party, no Loan Party has engaged in activities which are, as applicable, cause for false claims liability, civil
penalties or mandatory or permissive exclusion from Medicare, Medicaid or any other federal or state healthcare program. Borrower and
its Subsidiaries have filed, obtained, maintained, and submitted all reports, documents, forms, notices, applications, records, claims,
submissions and supplements or amendments as required by any Health Care Law (“Filings”), and all such Filings were
true, complete, correct and not misleading on the date filed and any necessary or required updates, changes, corrections or modification
have been submitted. Neither Borrower nor any of its Subsidiaries is a party to any corporate integrity agreements, monitoring agreements,
consent decrees, settlement agreements, or similar agreements related to any Health Care Law imposed by any Governmental Authority. None
of Borrower, its Subsidiaries, or their respective directors, officers, employees, and agents has been or is currently suspended or excluded
from participation in any federal health care program (as defined in Section 1128B(f) of the Social Security Act).

 

    	40

    	 

    

 

(ll)
None of the foregoing representations and warranties and no document furnished by or on behalf of Borrower or any other Loan Party to
Lender in connection with the negotiation of the transactions contemplated by this Agreement contain any untrue statement of a material
fact or omit to state any material fact necessary to make any such statement or representation (taken as a whole) not materially misleading
at such time in light of the circumstances under which such information or data was furnished.

 

	7.2	Survival of Representations and Warranties.

 

The
Borrower, for itself and on behalf of the other Loan Parties, represents, warrants and covenants that all representations, warranties
and covenants contained in this Agreement (whether appearing in Article 7 or elsewhere) shall be true, correct and complete at the time
of the Borrower’s execution of this Agreement, shall survive the execution, delivery and acceptance hereof by the parties hereto
and the closing of the transactions described herein or related hereto, shall, except for representations and warranties that relate
solely to an earlier date, remain true, correct and complete until the indefeasible repayment and performance in full of all of the Obligations
and termination of this Agreement.

 

ARTICLE
8 - SCHEDULES AND REPORTS

 

	8.1	Financial Information.

 

The
Borrower shall be subject to the following obligations with respect to the delivery or disclosure of financial information:

 

(a)
the Borrower shall publicly-file copies of its internally prepared Consolidated Financial Statements as required by Applicable Law no
later than forty-five (45) days after the end of the Borrower’s first three Fiscal Quarters each year,

 

    	41

    	 

    

 

(b)
the Borrower shall publicly-file copies of its annual Consolidated Audited Financial Statements as required by Applicable Law no later
than ninety (90) days after the end of each Fiscal Year,

 

(c)
beginning with the 2018 Fiscal Year of the Borrower, no later than thirty (30) days prior to the commencement of each Fiscal Year of
the Borrower, a copy of the Annual Business Plan (in form and substance satisfactory to Lender) approved by the board of directors of
the Borrower, and, within twenty (20) days of any material modification thereto, a copy of the Annual Business Plan previously delivered,
as modified; and

 

(d)
The Borrower shall deliver to Lender copies of the Cash Balance Statements no later than twenty-five (25) days after the end of each
calendar month.

 

	8.2	Compliance Certificate.

 

The
Borrower shall deliver to the Lender a Compliance Certificate (containing supporting calculations) confirming, inter alia, that
it has maintained the financial covenants set forth in Section 9.1(z)(i) and 9.1(z)(iv) concurrently with the public filing of each Financial
Statement filed pursuant to Sections 8.1(a) and 8.1(b) and, concurrently with the public filing of each Financial Statement filed pursuant
to Section 8.1(b), commencing with the 2018 Fiscal Year of the Borrower, the Borrower shall also provide a comparison to the budget set
forth in the Annual Business Plan and the previous year. Together with the Cash Balance Statement delivered pursuant to 8.1(d), the Borrower
shall deliver to the Lender a Compliance Certificate (containing supporting calculations) confirming that it has maintained the financial
covenants set forth in Section 9.1(z)(ii) and 9.1(z)(iii).

 

	8.3	Other Matters.

 

At
such times as may be requested by Lender from time to time hereafter, the Borrower shall deliver to Lender (i) without limiting Borrower’s
obligations in Section 8.2 and 9.1(o), such additional schedules, certificates, reports and information with respect to the Collateral
as Lender may from time to time reasonably require, including, but not limited to, non-consolidated Financial Statements of the Borrower;
(ii) a collateral assignment of any or all items of property held by the Loan Parties, from time to time, to Lender or as Lender may
direct in order to perfect and further establish the security interests in favour of Lender in such property in accordance with this
Agreement (to the extent not otherwise previously perfected under a Loan Document). All schedules, certificates, reports and assignments
and other items delivered by the Loan Parties to Lender hereunder shall be executed by an authorized representative of the Loan Parties,
and shall be in such form and contain such information as Lender shall reasonably request. Lender, through its officers, employees or
agents, shall have the right, upon reasonable notice at any time and from time to time in Lender’s name, in the name of a nominee
of Lender or in Borrower’s name, to verify the validity, amount or any other matter relating to any of the Collateral, by mail,
telephone, telegraph or otherwise. The Borrower shall reimburse Lender, on demand, for all reasonable receipted costs, fees and expenses
incurred by Lender in this regard.

 

    	42

    	 

    

 

ARTICLE
9 - COVENANTS

 

	9.1	Covenants.

 

Until
indefeasible payment and performance in full of all Obligations and termination of this Agreement, unless the Borrower obtains the prior
written consent of Lender waiving or modifying any covenants hereunder in any specific instance, the Borrower shall and shall cause each
Loan Party to (as applicable):

 

(a)
Timely Payment. Make due and timely payment of the Obligations required to be paid by it hereunder.

 

(b)
Conduct of Business, Maintenance of Existence, Compliance with Laws. Carry on and conduct its business and operations in a proper,
efficient and businesslike manner, in accordance with good business practice except for non-compliance which would not have a Material
Adverse Effect; preserve, renew and keep in full force and effect its existence, will ensure that each Loan Party that is a Special Purpose
Entity continues to maintain itself in all respects as a Special Purpose Entity, and take all reasonable action to maintain all rights,
privileges and franchises necessary or desirable in the normal conduct of its business and to comply in all material respects with all
Material Contracts, Material Licenses, material Licenses and Requirements of Law, including Health Care Law, Privacy Law, applicable
consumer protection legislation and any other Applicable Law.

 

(c)
Regulatory Compliance. Without limiting the generality of the foregoing (i) in connection with the development, testing, manufacture,
marketing or sale of each and any Product by any Loan Party, such Loan Party shall comply fully and completely in all respects Material
Licenses at all times issued by any Government Authority, specifically including the FDA and Health Canada, with respect to such development,
testing, manufacture, marketing or sales of such Product by the Loan Parties as such activities are at any such time being conducted
by the Loan Parties and (ii) the Loan Parties shall not permit any event or occurrence to occur or to take or to fail to take any action
if the result of any of the forgoing would be that any of the representations and warranties set forth in Section 7.1(kk) to become untrue
in any respect as of any date.

 

(d)
Further Assurances. Provide Lender with such other documents, opinions, consents, acknowledgements and agreements as are reasonably
necessary to implement this Agreement and the other Loan Documents from time to time.

 

(e)
Access to Information. Promptly provide Lender with all information reasonably requested by Lender from time to time concerning its
financial condition and Property, and during normal business hours and from time to time upon reasonable notice, permit representatives
of Lender to inspect any of its Property and to examine and take extracts from its financial books, accounts and records including but
not limited to accounts and records stored in computer data banks and computer software systems, and to discuss its financial affairs,
its business or any part of its Property with its senior officers and (in the presence of such of its representatives as it may designate)
its Auditor. Provided that a Default or Event of Default is then continuing (or Lender reasonably expects that that is the case), the
Borrower will pay all reasonable expenses incurred by such representatives in order to visit Borrower’s premises or attend at the
Borrower’s principal office, as applicable, for such purposes.

 

    	43

    	 

    

 

(f)
Obligations and Taxes. Pay or discharge or cause to be paid or discharged, before the same shall become delinquent (i) all Taxes
imposed upon it or upon its income or profits or in respect of its business or Property and file all tax returns in respect thereof;
(ii) all lawful claims for labour, materials and supplies; (iii) all required payments under any of its Debt, and (iv) all other obligations;
provided, however that it shall not be required to pay or discharge or to cause to be paid or discharged any such amount so long as the
validity or amount thereof shall be contested in good faith by appropriate proceedings and, in the case of clause (i) above, an adequate
reserve in accordance with GAAP has been established in its books and records.

 

(g)
Use of Loan. Use the proceeds of the Third Tranche for general working capital for the Business and to fund Unfunded Qualified Acquisitions
and use the proceeds of the Additional Tranches to fund Qualified Acquisitions.

 

(h)
Insurance. Maintain or cause to be maintained with reputable insurers coverage against risk of loss or damage to its Property (including
public liability and damage to property of third parties) and business interruption insurance of such types as is customary for and would
be maintained by a corporation with an established reputation engaged in the same or similar business in similar locations and provide
to Lender, as requested (acting reasonably), evidence of such coverage. The Borrower shall, prior to the expiry or replacement of any
insurance policy, notify Lender of the replacement and at Lender’s request send copies of all replacement policies to Lender. Without
limiting the generality of the foregoing, the Borrower will maintain product liability insurance covering at least $5,000,000 per claim
and $5,000,000 in the aggregate. Without limiting the generality of the foregoing, the Borrower shall maintain in effect all insurance
coverage reasonable and prudent for a business similar to the Business conducted in similar locations. Lender shall be indicated in all
insurance policies, as applicable, as first loss payee and additional insured, and all policies shall contain such standard mortgage
clauses as Lender shall reasonably require for Lender’s protection.

 

(i)
Notice of Default or Event of Default. Promptly and, in any event within two (2) Business Days, notify Lender of any Default or Event
of Default that would apply to it or to any Loan Party of which it becomes aware along with the action to be taken by such Loan Party
to remedy any such Default or Event of Default.

 

(j)
Notice of Material Adverse Effect. Promptly notify Lender of any Material Adverse Effect of which it becomes aware.

 

(k)
Notice of Litigation. Promptly notify Lender on becoming aware of the occurrence of any litigation, dispute, arbitration, proceeding
or other circumstance the result of which if determined adversely would or could reasonably be expected to result in (a) a judgment or
award against a Loan Party in excess of $100,000 or (b) a Material Adverse Effect, and from time to time provide Lender with all reasonable
information requested by it concerning the status of any such proceeding.

 

    	44

    	 

    

 

(l)
Other Notices. Promptly, upon having knowledge, give notice to Lender of:

 

(i)
any Loan Party becoming aware that any of the representations and warranties set forth herein are untrue in any material respect;

 

(ii)
any notice of expropriation affecting any Loan Party;

 

(iii)
any Action Request or Violation Notice;

 

(iv)
any Data Breach;

 

(v)
any Loan Party becoming subject to any administrative or regulatory action, inspection, Form FDA 483 observation, warning letter, notice
of violation letter, or other notice, response or commitment made to or with the FDA, Health Canada or any comparable Governmental Authority,
or any Product of any Loan Party being seized, withdrawn, recalled, detained, or subject to a suspension of manufacturing, or the commencement
of any proceedings in the United States, Canada or any other jurisdiction seeking the withdrawal, recall, suspension, import detention,
or seizure of any Product are pending or threatened against the Loan Parties;

 

(vi)
any violation of any Applicable Law, including Privacy Laws, Health Care Laws and consumer protection legislation;

 

(vii)
any default under any Debt in a principal amount greater than $100,000 of any Loan Party;

 

(viii)
any termination prior to maturity of or default under a Material Contract or any termination, lapse, rescission or default under a Material
License;

 

(ix)
any damage to or destruction of any Property, of any Loan Party having a replacement cost in excess of $100,000;

 

(x)
the acquisition of any real property by any Loan Party;

 

(xi)
the receipt of insurance proceeds by any Loan Party in excess of $100,000;

 

(xii)
any Lien registered against any Property of any Loan Party, other than a Permitted Lien;

 

(xiii)
the occurrence of any event referred to in Section 7.1(y);

 

(xiv)
a Product being recalled, withdrawn, suspended or discontinued or is under consideration of being recalled, withdrawn, suspended or discontinued;

 

(xv)
a Product or any Loan Party being the subject of a warning, consumer alert or other cautionary statement issued by any Governmental Authority;

 

    	45

    	 

    

 

(xvi)
any information or report from any Governmental Authority, indicating that any of the Products are, unsafe or unsuitable for its intended
use or pose an unacceptable health risk;

 

(xvii)
any entering into of a Material Contract or Material License; and

 

(xviii)
any material adverse change in, or material adverse amendment to, or termination of a Material Contract or Material License.

 

(m)
Environmental Compliance. Operate its business in compliance with Requirements of Environmental Laws (except where the failure
to do so would not have a Material Adverse Effect) and operate all Property owned, leased or otherwise used by it such that no obligation,
including a clean-up or remedial obligation, will arise under any Requirements of Environmental Law; provided, however, that if any such
claim is made or any such obligation arises, the Borrower shall, or shall cause the applicable Loan Party to, promptly satisfy, address
or contest such claim or obligation at its own cost and expense. Borrower shall promptly notify Lender upon: (i) learning of the existence
of any Materials of Environmental Concern located on, above or below the surface of any land which it owns, leases, operates, occupies
or controls (except those being stored, used or otherwise handled in compliance with Requirements of Environmental Law), or contained
in the soil or water constituting such land; and (ii) the occurrence of any reportable release, spill, leak, emission, discharge, leaching,
dumping or disposal of Materials of Environmental Concern that has occurred on or from such land, which, in either the case of (i) or
(ii), is likely to result in liability under Requirements of Environmental Law in excess of $100,000.

 

(n)
Security. With respect to the Security:

 

(i)
provide to Lender the Security required from time to time pursuant to Article 6 in accordance with the provisions of such Article, accompanied
by supporting resolutions, certificates and opinions in form and substance satisfactory to Lender; and

 

(ii)
do, execute and deliver all such things, documents, security, agreements and assurances as may from time to time be requested by Lender
to ensure that Lender holds at all times valid, enforceable, perfected first-priority Liens (subject only to Permitted Liens) on the
Collateral from the Loan Parties meeting the requirements of Article 6.

 

(o)
Perfection Certificate. The Borrower shall provide Lender with an updated Perfection Certificate upon any material change to the
information set forth therein and in any event at least once per calendar year.

 

(p)
Maintenance of Property. Keep all Property useful and necessary in its business in good working order and condition, normal wear
and tear excepted, and maintain all Intellectual Property necessary to carry on its business.

 

(q)
Landlord Consents. Use its best commercial efforts to obtain, in favour of Lender, a consent agreement from a landlord of premises
that are leased at any time and from time to time by Borrower.

 

    	46

    	 

    

 

(r)
Material Contracts, Material Licenses and Material License Agreements. Ensure that any Material Contract, Material License and material
License Agreement is assigned by way of security in favour of Lender by the applicable Loan Party and to obtain, in favour of Lender,
if requested by Lender or if reasonably necessary for a valid assignment of or grant of a security interest in such Material Contract,
Material License or material License Agreement, or for the enforcement by Lender of the Security with respect thereto following an Event
of Default (including the transfer upon foreclosure to Lender or to third parties), an acknowledgement of a Person or Governmental Authority
to such assignment.

 

(s)
Employee Benefit and Welfare Plans. Maintain all employee benefit, Pension Plans and Welfare Plans relating to its business in compliance
with all Applicable Laws except for immaterial non-compliance.

 

(t)
Additional Information. Promptly provide Lender, after the sending or filing thereof, with copies of all reports, notices, prospectuses
and registration statements which Borrower or any other Loan Party files with a securities commission or securities regulatory authority
in any Province of Canada or any other securities commission.

 

(u)
Material Contracts and Material Licenses. At the request of Lender from time to time, provide to Lender certified copies of all Material
Contracts and Material Licenses.

 

(v)
Regulatory Matters. Ensure that (i) all non-compliance (other than immaterial non-compliance) with regulatory matters as identified
in Schedule 7.1(kk) is remedied within a reasonable period of time following the Closing Date, and (ii) all existing and future
Products are licensed and/or registered, as applicable, in compliance with Applicable Laws.

 

(w)
ERISA. Promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed
could result in the imposition of a Lien other than a Permitted Lien against any of its Properties; promptly notify Lender of (i) the
occurrence of any Reportable Event with respect to an ERISA Plan that could reasonably be expected to result in material liability, (ii)
receipt of any notice from the PBGC of its intention to seek termination of any ERISA Plan or appointment of a trustee therefor, (iii)
its intention to terminate or withdraw from any ERISA Plan or multiemployer plan that could reasonably be expected to result in material
liability, and (iv) the occurrence of any event with respect to any ERISA Plan or multiemployer plan which would result in the incurrence
by it or any Subsidiary of any material liability, fine or penalty, and (v) any material increase in its contingent liability with respect
to any post-retirement Welfare Plan benefit.

 

(x)
Patriot Act. In the case of Borrower, the Borrower acknowledges and agrees that pursuant to the provisions of the USA Patriot Act
(Title III of the Pub. L. 107-56) signed into law October 26, 2001 (the “Patriot Act”) or any analogous or corresponding
provision of applicable Australian law, Lender may be required to obtain, verify and record information with respect to Borrower; and
the Borrower hereby agrees to cooperate with Lender and provide them with all information that may be required in order to fulfil their
obligations under the Patriot Act; and without limiting the generality of the foregoing, the Borrower agrees to use commercially reasonable
efforts to obtain the consent of any of their respective officers, directors and employees whose consent to the disclosure of any such
information is required under applicable privacy legislation in Canada.

 

    	47

    	 

    

 

(y)
Books and Records. At all times keep accurate and complete books, records and accounts with respect to all of its business activities,
in accordance with sound accounting practices and, where applicable, GAAP consistently applied, and shall keep such books, records and
accounts, and any copies thereof, only at the addresses indicated for such purpose on Schedule 7.1(s).

 

(  )
Financial Covenants.

 

		(i)	Minimum
                                            EBITDA. The Borrower shall maintain a minimum EBITDA of Five Million Dollars ($5,000,000)
                                            for the twelve (12) months ending on September 30, 2017 and for the twelve (12) month period
                                            ending on the last day of each Fiscal Quarter thereafter, provided that the minimum EBITDA
                                            amount shall be increased by an amount equal to 50% of any Additional Tranche advanced to
                                            Borrower hereunder.

 

		(ii)	Net
                                            Debt to TTM EBITDA Ratio. At all times, the Borrower shall maintain a Net Debt to TTM
                                            EBITDA Ratio of no more than 6:1.

 

		(iii)	Cash
                                            Balance. The Borrower will maintain at all times a minimum positive cash balance equal
                                            to (i) One Million Dollars ($1,000,000), if the aggregate principal amount of the Third Tranche
                                            and all Additional Tranches advanced to Borrower hereunder (whether or not then outstanding)
                                            is below $15,000,000, (ii) or Two Million Dollars ($2,000,000), if the aggregate principal
                                            amount of the Third Tranche and all Additional Tranches advanced to Borrower hereunder (whether
                                            or not then outstanding) is $15,000,000 or above, and shall prepare a statement in accordance
                                            with GAAP setting forth the aggregate amount of cash and cash equivalents held by the Borrower,
                                            which statement shall be certified by the Chief Executive Officer and Chief Financial Officer
                                            of the Borrower (the “Cash Balance Statement”).

 

		(iv)	Minimum
                                            Revenues. The Borrower will maintain minimum Consolidated gross income of Twenty Million
                                            Dollars ($20,000,000) for the twelve (12) months ending on September 30, 2017 and for the
                                            twelve (12) month period ending on the last day of each Fiscal Quarter thereafter, provided
                                            that the required minimum Consolidated gross income amount shall be increased by an amount
                                            equal to 200% of any Additional Tranche advanced to Borrower hereunder (whether or not then
                                            outstanding).

 

(aa)
Observer Rights. Until the repayment and performance in full of all of the Obligations and the termination of this Agreement Lender
shall be entitled to designate one individual (the “Lender’s Nominee”), to be an observer to the Borrower’s
board of directors (the “Board”), and so long as Lender’s Nominee serves as an observer of the Board, to observe
the Board’s Audit and Compensation Committee.

 

    	48

    	 

    

 

	9.2	Negative Covenants.

 

So
long as this Agreement is in force and except as otherwise permitted by the prior written consent of Lender, the Borrower shall not and
shall ensure that the Loan Parties (individually or collectively) shall not:

 

(a)
Disposition of Property. Except for Permitted Dispositions, dispose of, in one transaction or a series of transactions, all or
any part of its Property, whether now owned or hereafter acquired.

 

(b)
No Consolidation, Amalgamation, Merger, etc. Consolidate, amalgamate or merge with any other Person, export a corporation into a
jurisdiction outside of the United States, enter into any corporate reorganization or other transaction intended to effect or otherwise
permit a change in its existing corporate or capital structure, liquidate, wind-up or dissolve itself, or permit any liquidation, winding-up
or dissolution unless prior written approval has been received by Lender and such documentation as is required by counsel to Lender is
delivered concurrently with such transaction.

 

(c)
No Change of Name. Change its name or change its jurisdiction of incorporation or formation in each case without providing Lender
with fifteen (15) days’ prior written notice thereof.

 

(d)
No Debt. Create, incur, assume or permit any Debt to remain outstanding, other than Permitted Debt.

 

(e)
Operating Leases. Create, incur, assume or permit obligations outstanding in respect to operating leases (which, for greater certainty,
does not include leases of real property) such that the aggregate annual payments due on such leases exceeds $250,000.

 

(f)
No Distributions. Make any Distribution except Permitted Distributions.

 

(g)
No Lien. Create, incur, assume or permit to exist any Lien upon any of its Property except a Permitted Lien.

 

(h)
Acquisitions. Make any Acquisitions except:

 

(a)
provided that no Event of Default has occurred and is continuing (or would result from such Acquisition), an Acquisition of any other
Person or of all or part of the Property of any other Person or of all or part of any division, business, operation or undertaking of
any other Person where the business of such Person is the same or substantially the same as, similar, complementary or related to, the
Business and the aggregate consideration payable in respect of such Acquisition (including, without limitation, any deferred consideration)
is not more than $100,000, and further provided that any Person acquired becomes a guarantor (and a “Loan Party”) hereunder
and otherwise complies with Section 9.2(r)) and any property acquired pursuant to such Acquisition becomes Collateral subject to the
Security (including, without limitation, any shares of any Subsidiary); or

 

    	49

    	 

    

 

(ii)
exercise of the Borrower’s right to repurchase Lender Option as permitted under Lender Option; or

 

(iii)
a Qualified Acquisition that is financed by the Lender pursuant to an Additional Tranche in accordance with Section 2.2 or a third party
financing in accordance with Section 2.2(d), or

 

(iv)
subject to the written consent of the Lender (not to be unreasonably withheld), Unfunded Qualified Acquisitions, provided that the aggregate
value of the consideration payable for all Unfunded Qualified Acquisitions in the 365 days preceding any Unfunded Qualified Acquisition
(including, for certainty, consideration payable for the proposed Unfunded Qualified Acquisition) fifty percent (50%) or less of TTM
EBITDA.

 

(i)
No Change to Year End. Make any change to its Fiscal Year.

 

(j)
Location of Assets in Other Jurisdictions. Except for any Property in transit in the ordinary course of business, acquire any Property
outside of the jurisdictions identified in Schedule 7.1(s) or move any Property from one jurisdiction to another jurisdiction
where the movement of such Property would cause the Lien of the Security over such Property to cease to be perfected under Applicable
Law, or suffer or permit in any other manner any of its Property to not be subject to the Lien of the Security or to be or become located
in a jurisdiction as a result of which the Lien of Security over such Property is not perfected, unless (i) Borrower has first given
thirty (30) days’ prior written notice thereof to Lender, and (ii) the applicable Loan Party has first executed and delivered to
Lender all Security and all financing or registration statements in form and substance satisfactory to Lender which Lender or its counsel,
acting reasonably, from time to time deem necessary or advisable to ensure that the Security at all times constitutes a perfected first-priority
Lien (subject only to Permitted Liens) over such Property notwithstanding the movement or location of such Property as aforesaid together
with such supporting certificates, resolutions, opinions and other documents as Lender may deem necessary or desirable in connection
with such security and registrations.

 

(k)
Amendments to Organizational Documents. Amend any of its Organizational Documents in a manner that would be prejudicial to the interests
of Lender under the Loan Documents.

 

(l)
Amendments to other Documents. Amend, vary or alter any Material Contract, Material License or material License Agreement or any
other contract or agreement in any manner which could reasonably be expected to be material to the financial condition, property, assets,
operations or business of any Loan Party.

 

(m)
Non-Arm’s Length Transactions. Except as contemplated by Section 9.2(f), effect any transactions with any Person not dealing
at Arm’s Length unless such transaction is on market terms and consistent with transactions with Persons at Arm’s Length.

 

(n)
Employment Arrangements. Without limiting anything else set forth herein or in any other Loan Document, not (i) enter into any one
or more Employment Arrangement with any Person where after the entering into of such Employment Arrangement(s) the aggregate base compensation
payable to such Person by the Borrower and the Subsidiaries is more than $500,000 per Fiscal Year, or (ii) increase the compensation
payable (directly or indirectly) to any Person pursuant to any Employment Arrangement(s), or make any other changes to any Employment
Arrangement(s), where the aggregate base compensation payable (directly or indirectly) to any Person by the Borrower and the Subsidiaries
after such increase or change will be more than $500,000 per Fiscal Year (including, for certainty, increases to the base compensation
payable where the amount payable prior to any increase or change is already above $500,000 per Fiscal Year), in each case without the
prior written consent of the Lender, such consent not to be unreasonably withheld.

 

    	50

    	 

    

 

(o)
Sale and Leaseback. Enter into any arrangement with any Person providing for the leasing by any Loan Party, as lessee, of Property
which has been or is to be sold or transferred by such Loan Party to such Person or to any other Person to whom funds have been or are
to be advanced by such Person on the security of such Property or the lease obligation of such Loan Party.

 

(p)
Employee Loans. Make any loans or advances to an employee of any Loan Party other than loans in an aggregate amount (for all Loan
Parties) not to exceed $100,000 provided that such loans are used to purchase Equity Interests in Borrower and at the time of the loan
no Default or Event of Default exists.

 

(q)
Deposit Accounts and Securities Accounts. The Loan Parties will not have any Permitted Cash Investments, cash or Equity Interests
in any single Deposit Account or Securities Account located in the United States, Canada or any other jurisdiction where security interests
in such accounts can be perfected by agreement (other than payroll accounts), where the balance in such Deposit Account or Securities
Account is in excess of $100,000 at any one time unless such Loan Party and the applicable securities intermediary or deposit-taking
institution have entered into a Control Agreement or similar agreement governing such Deposit Account or Securities Account in order
to perfect (and further establish) the security interests in favour of Lender under the Security Documents in such Permitted Cash Investments,
cash or Equity Interests, except that (i) in the case of any Permitted Cash Investments, cash or Equity Interests in any single Deposit
Account or Securities Account in existence on the Closing Date, such Loan Party will within sixty (60) days of the Closing Date enter
into a Control Agreement or similar agreement governing such Deposit Account or Securities Account in order to perfect (and further establish)
the security interests in favour of Lender under the Security Documents in such Permitted Cash Investments, cash or Equity Interests;
and (ii) the requirements of this proviso will not apply to any Deposit Account or Securities Account that is required in connection
with a Qualified Acquisition until sixty (60) days following the date such acquisition is consummated. The aggregate amount of all Permitted
Cash Investments, cash and Equity Interests in all Deposit Accounts and all Securities Accounts owned by the Loan Parties for which a
Control Agreement has not been delivered shall not exceed $200,000 at any time. Notwithstanding the foregoing, the proceeds of the Third
Tranche advanced by the Lender on the Closing Date and any Additional Tranches advanced thereafter shall be immediately deposited in
and at all times thereafter held only in Deposit Accounts that are subject to Control Agreements and, for certainty, the transfer of
all or any portion of the proceeds of the Third Tranche or any Additional Tranches to any other Deposit Account at any time shall constitute
an Event of Default hereunder.

 

    	51

    	 

    

 

(r)
New Subsidiaries. Create or acquire any Subsidiary after the date of this Agreement (other than Special Purpose Entities otherwise
permitted hereunder), including in respect of any Subsidiaries acquired as part of an Acquisition permitted under this Agreement, unless:
(i) such Subsidiary exists pursuant to the laws of a state of the United States of America or of a province of Canada; (ii) all of the
issued and outstanding Equity Interests of such Subsidiary is owned by a Loan Party and pledged to the Lender as security for the Obligations;
(iii) such new Subsidiary provides a legal, valid and enforceable guarantee in favour of Lender and first-ranking security in all relevant
jurisdictions; supported in each case by appropriate certificates, estoppels, consents, corporate deliverables and legal opinions, the
whole in form and substance satisfactory to Lender.

 

(s)
Capital Expenditures. Without prior written consent of Lender, which consent will not be unreasonably withheld, the Loan Parties
may not make any Capital Expenditures which exceed in any Fiscal Year an aggregate of $500,000.

 

(t)
Compensation. Make any material changes to employee or management compensation practices other than changes which are customary and
reasonable in a business similar to the Business.

 

	9.3	Entitled to Perform Covenants.

 

If
any of the Loan Parties fails to perform any covenant contained in this Article 9, or in any other provision hereof or of any of the
other Loan Documents, Lender may perform in any manner deemed fit by it without thereby waiving any rights to enforce this Agreement
or the other Loan Documents, any such covenant capable of being performed by it and if any such covenant requires the payment of money,
Lender may make such payments. All sums so expended by Lender shall be deemed to form part of the Obligations, shall bear interest at
the same rate as the Loan and shall be payable by the Borrower on demand.

 

ARTICLE
10 - CONDITIONS PRECEDENT 

 

	10.1	Conditions Precedent to Loan.

 

The
effectiveness of this Agreement and Lender’s obligation to fund the Third Tranche amount shall be subject to the following conditions
precedent having been met to the satisfaction of Lender, or, alternatively, waived in writing by Lender:

 

(a)
this Agreement shall have been executed and delivered by all parties hereto;

 

(b)
the Loan Parties shall have executed and delivered to Lender the Loan Documents to which each is a party including, without limitation,
the Security Documents;

 

(c)
Lender shall have received certified copies of the Organizational Documents of the Loan Parties, the resolutions authorizing the execution,
delivery and performance of the Loan Parties’ respective obligations under the Loan Documents to which they are a party and the
transactions contemplated therein, and the incumbency of the officers of each Loan Party;

 

    	52

    	 

    

 

(d)
copies of all shareholder, limited liability and partnership agreements, if any, applicable to the Loan Parties, certified by Borrower
to be true, shall have been delivered to Lender’s satisfaction;

 

(e)
certificates of status or good standing, as applicable, for all relevant jurisdictions of each Loan Party shall have been delivered to
Lender;

 

(f)
Borrower shall be in compliance in all material respects with all (if any) Material Contracts and Material Licenses to the satisfaction
of Lender and copies of all Material Contracts and Material Licenses if any, applicable to Borrower, shall have been delivered to Lender;

 

(g)
evidence of repayment in full of all Debt that is not Permitted Debt owing by the Loan Parties to any third party lenders to the Loan
Parties concurrent with the Loan shall have been delivered to Lender;

 

(h)
releases, discharges, estoppels and postponements with respect to all Liens which are not Permitted Liens, if any, shall have been delivered
to Lender;

 

(i)
payment of all amounts and fees payable to Lender;

 

(j)
duly executed copies of the Security shall have been delivered to Lender and such financing statements or other registrations of such
Security, or notice thereof, shall have been filed, registered, entered or recorded in all offices of public record necessary or desirable
in the opinion of Lender to preserve or protect the charges and security interests created thereby;

 

(k)
the share certificates of the Subsidiaries pledged in favour of the Lender pursuant to the Security Documents shall have been delivered
to the Lender, duly endorsed in blank (to be delivered within 10 days of the Closing Date);

 

(l)
a letter of opinion of counsel to the Borrower along with the opinions of local counsel for Borrower shall have been delivered to Lender.
Such opinions shall, amongst other things, confirm that the existing Security and any additional Security delivered in connection with
the Loan is first ranking security in favour of Lender in respect to all of the Obligations;

 

(m)
the Borrower shall have delivered to Lender certificates of insurance acceptable to Lender showing, inter alia, Lender as a first loss
payee as its interest may appear on all insurance policies that insure the assets to be secured by the Security;

 

(n)
no Default or Event of Default has occurred and is continuing on the Closing Date or would result from making the Third Tranche;

 

(o)
all representations and warranties made by the Loan Parties in the Loan Documents are true and correct in all material respects;

 

(p)
no Material Adverse Effect has occurred;

 

    	53

    	 

    

 

(q)
all outstanding obligations following the acquisitions of Nomad and FNL have been satisfied;

 

(r)
Lender shall have received such additional evidence, documents or undertakings as Lender shall reasonably request to establish the consummation
of the transactions contemplated hereby and be satisfied, acting reasonably, as to the taking of all proceedings in connection herewith
in compliance with the conditions set forth in this Agreement;

 

(s)
Lender shall have completed all due diligence which it considers necessary or appropriate in its discretion in regard to the Loan Parties
and their Property, books and records, operations, prospects and condition (financial or otherwise), including, without limitation, in
regards to past and ongoing compliance with Applicable Laws (including Environmental Laws), union and labour relations and pension matters;

 

(t)
Lender shall have received a duly completed Perfection Certificate with respect to all of the Loan Parties; and

 

(u)
Lender shall have received the Origination Fee (Section 4.6) and the Work Fee (Section 4.7).

 

	10.2	Additional Condition Precedent to Loan in favour of Borrower

 

At
the request of the Borrower, and as a condition precedent to the effectiveness of the Borrower’s obligations hereunder (unless
waived by the Borrower), the Lender shall have executed and delivered the Irrevocable Proxy to be dated as of the date hereof with respect
to the common shares of the Borrower, duly countersigned by the Chief Executive Officer of the Borrower.

 

ARTICLE
11 – EVENTS OF DEFAULT

 

	11.1	Events of Default.

 

The
occurrence of any one or more of the following events shall constitute an “Event of Default” hereunder:

 

(a)
the failure of the Borrower to pay any principal hereunder when due; or

 

(b)
the failure of the Borrower or any other Loan Party to pay any interest or other Obligations (other than principal hereunder) when due,
which failure continues unremedied for three (3) Business Days; or

 

(c)
the failure of (i) Borrower or any other Loan Party to perform, keep or observe in a material respect any of the financial covenants
in Section 9.1(z) of this Agreement, (ii) a Loan Party to perform, keep or observe any of the other covenants, conditions, promises,
agreements or obligations under this Agreement (other than as described in Sections 11.1(a) and (b) and other than those covenants, conditions,
promises, agreements or obligations referred to in (i) above) or in any of the Loan Documents, in each case which failure is not cured
within thirty (30) days of receipt of written notice from Lender of such failure; or

 

    	54

    	 

    

 

(d)
the making or furnishing by a Loan Party or any director or officer thereof to Lender of any representation, warranty, certificate, schedule,
report or other communication of a material nature within or in connection with this Agreement or the Loan Documents, which is untrue
or misleading in any material respect when made; provided that, no Event of Default under this Section 11.1(d) will occur if such representation,
warranty or other communication was not intentionally untrue or misleading, is capable of being corrected within thirty (30) days of
being made and is diligently corrected within such thirty (30) day period; or

 

(e)
if a Loan Party ceases or threatens to cease to carry on business generally or admits it inability or fails to pay its debts generally;
or

 

(f)
if (i) the Debt under any subordinated loan agreement is accelerated by lender thereunder, (ii) a Loan Party fails to make any payment
when such payment is due and payable to any Person in relation to any indebtedness for borrowed money or other indebtedness or liabilities
arising in respect of any other Debt which in the aggregate principal amount then outstanding is in excess of $100,000 and such payment
is not made within any applicable cure or grace period; or (iii) a Loan Party defaults in the observance or performance of any other
agreement or condition in relation to any such indebtedness to any Person which in the aggregate principal amount then outstanding is
in excess of $100,000 or contained in any instrument or agreement evidencing, securing or relating thereto and such default is not waived
or cured within any applicable cure or grace period; or

 

(g)
if a Loan Party denies its obligations under any Loan Document or claims any of the Loan Documents to be invalid or withdrawn in whole
or in part; or

 

(h)
any of the Loan Documents or any material provision of any of them becomes unenforceable, unlawful or is changed by virtue of legislation
or by a court, statutory board or commission, in each case in a manner that is adverse to Lender, if a Loan Party does not, within fifteen
(15) Business Days of receipt of notice of such Loan Document or material provision becoming unenforceable, unlawful or being changed
and being provided with any required new agreement or amendment for execution by Lender (acting reasonably), replace such Loan Document
with a new agreement that is in form and substance satisfactory to Lender or amend such Loan Document to the satisfaction of Lender;
or

 

(i)
if a decree or order of a court of competent jurisdiction is entered adjudging a Loan Party a bankrupt or insolvent or approving a petition
seeking the winding-up of a Loan Party under the United States Bankruptcy Code, the Companies’ Creditors Arrangement
Act (Canada), the Bankruptcy and Insolvency Act (Canada) or any other bankruptcy, insolvency or analogous laws, including
any analogous or corresponding provision of applicable Australian law, or issuing sequestration or process of execution against any substantial
part of the Property of a Loan Party or ordering the winding up or liquidation of its affairs; or

 

(j)
if a Loan Party becomes insolvent, makes any assignment in bankruptcy or makes any other similar assignment for the benefit of creditors,
makes any proposal under the United States Bankruptcy Code, the Companies’ Creditors Arrangement Act (Canada), the
Bankruptcy and Insolvency Act (Canada), the Corporations Act 2001 (Cth) or any comparable law, including any analogous
or corresponding provision of applicable Australian law, seeks relief under any other bankruptcy, insolvency or analogous law, is adjudged
bankrupt, files a petition or proposal to take advantage of any act of insolvency, consents to or acquiesces in the appointment of a
trustee, receiver, receiver and manager, interim receiver, custodian, sequestrator or other Person with similar powers of itself or of
all or any substantial portion of its assets, or files a petition or otherwise commences any proceeding seeking any reorganization, arrangement,
composition or readjustment under any applicable bankruptcy, insolvency, moratorium, reorganization or other similar law affecting creditors’
rights or consents to, or acquiesces in, the filing of such a petition; or

 

    	55

    	 

    

 

(k)
if any proceeding or filing shall be instituted or made against a Loan Party seeking to have an order for relief entered against a Loan
Party as debtor or to adjudicate it bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment
or composition under any law relating to bankruptcy, insolvency, reorganization or relief or debtors (including, without limitation,
the United States Bankruptcy Code the Companies’ Creditors Arrangement Act (Canada), the Bankruptcy and Insolvency
Act (Canada), the Corporations Act 2001 (Cth) or any comparable law, including any analogous or corresponding provision of
applicable Australian law) or seeking appointment of a receiver, trustee, custodian or other similar official for a Loan Party and the
Winding-Up and Restructuring Act (Canada) or for any substantial part of its properties or assets unless the same is being contested
actively and diligently in good faith by appropriate and timely proceedings and is dismissed, vacated or permanently stayed within thirty
(30) days of institution; or

 

(l)
if a Person takes possession by appointment of a receiver, receiver and manager, or otherwise of any material portion of the Property
of a Loan Party; or

 

(m)
if a final judgment, execution, writ of seizure and sale, sequestration or decree for the payment of money due shall have been obtained
or entered against a Loan Party in an amount in excess of $100,000 and such judgment, execution, writ of seizure and sale, sequestration
or decree shall not have been and remain vacated, satisfied, discharged or stayed pending appeal within the applicable appeal period;
or

 

(n)
if any of the Security shall cease to be a valid and perfected first-priority security interest subject only to Permitted Liens and the
Borrower or the applicable Loan Party shall have failed to remedy such default within fifteen (15) Business Days of the Borrower becoming
aware of such fact; or

 

(o)
if an event of default occurs under any Material Contract or Material License of Borrower and which is committed by a Loan Party (other
than an event of default specifically dealt with in this Section) and such event of default has or would reasonably be expected to have
a Material Adverse Effect and is not remedied within fifteen (15) days after the Borrower becomes aware of such event of default; or

 

(p)
if any of the following events shall occur with respect to any Pension Plan:

 

(i)
the institution of any steps by a Loan Party or any member of its Controlled Group or any applicable regulatory authority to terminate
a Pension Plan (wholly or in part) if, as a result of such termination, a Loan Party may be required to make an additional contribution
to such Pension Plan, or to incur an additional liability or obligation to such Pension Plan or ERISA Plan, equal to or in excess of
$100,000 or the equivalent thereof in another currency; or

 

    	56

    	 

    

 

(ii)
any Reportable Event or Prohibited Transaction occurs; or

 

(iii)
a contribution failure occurs with respect to any ERISA Plan maintained by a Loan Party or any member of its Controlled Group sufficient
to give rise to a lien or charge under Section 302(f) of ERISA or under any applicable pension benefits legislation in any other jurisdiction;
or

 

(q)
if a Change of Control occurs; or

 

(r)
all or any material part of the Property of a Loan Party shall be nationalized, expropriated or condemned, seized or otherwise appropriated,
or custody or control of such Property of a Loan Party shall be assumed by any Governmental Authority or any court of competent jurisdiction
at the instance of any Governmental Authority, in each case which has or would reasonably be expected to have a Material Adverse Effect
except where contested in good faith by proper proceedings diligently pursued where a stay of enforcement is in effect; or

 

(s)
if any order is made by any Governmental Authority in relation to the Borrower, or there is any change of law, or the interpretation
or administration therefore, in each case, which in the reasonable opinion of Lender, operates to prevent or restrict the trading of
the common shares of the Borrower.

 

	11.2	Acceleration and Termination of Rights.

 

If
any Event of Default shall occur and be continuing, all Obligations owing by the Borrower under the Loan Documents shall, at the option
of Lender, become immediately due and payable, all without notice, presentment, protest, demand, notice of dishonour or any other demand
or notice whatsoever, all of which are hereby expressly waived by Borrower; provided, if any Event of Default described in Section 11.1(e),
11.1(i) through 11.1(k) with respect to the Loan Parties shall occur, the outstanding principal amount of the Loan and all other Obligations
shall automatically be and become immediately due and payable. In such event Lender may, in its discretion, exercise any right or recourse
and/or proceed by any action, suit, remedy or proceeding against the Loan Parties authorized or permitted by law for the recovery of
all the Obligations of the Loan Parties to Lender and proceed to exercise any and all rights hereunder and under the Security and no
such remedy for the enforcement of the rights of Lender shall be exclusive of or dependent on any other remedy but any one or more of
such remedies may from time to time be exercised independently or in combination.

 

	11.3	Remedies Cumulative and Waivers.

 

For
greater certainty, it is expressly understood and agreed that the rights and remedies of Lender hereunder or under any other Loan Document
or instrument executed pursuant to this Agreement are cumulative and are in addition to and not in substitution for any rights or remedies
provided by law or by equity; and any single or partial exercise by Lender of any right or remedy for a default or breach of any term,
covenant, condition or agreement contained in this Agreement or any other Loan Document shall not be deemed to be a waiver of or to alter,
affect or prejudice any other right or remedy or other rights or remedies to which Lender may be lawfully entitled for such default or
breach. Any waiver by Lender of the strict observance, performance or compliance with any term, covenant, condition or other matter contained
herein and any indulgence granted, either expressly or by course of conduct, by Lender shall be effective only in the specific instance
and for the purpose for which it was given and shall be deemed not to be a waiver of any rights and remedies of Lender under this Agreement
or any other Loan Document as a result of any other default or breach hereunder or thereunder.

 

    	57

    	 

    

 

	11.4	Saving.

 

Lender
shall not be under any obligation to the Loan Parties or any other Person to realize any Collateral or enforce the Security or any part
thereof or to allow any of the Collateral to be sold, dealt with or otherwise disposed of. Lender shall not be responsible or liable
to the Loan Parties or any other Person for any loss or damage upon the realization or enforcement of, the failure to realize or enforce
the Collateral or any part thereof or the failure to allow any of the Collateral to be sold, dealt with or otherwise disposed of or for
any act or omission on their respective parts or on the part of any director, officer, agent, servant or adviser in connection with any
of the foregoing, except that Lender may be responsible or liable for any loss or damage arising from the wilful misconduct or gross
negligence of Lender.

 

	11.5	Third Parties.

 

No
Person dealing with Lender or any agent of Lender shall be required to inquire whether the Security has become enforceable, or whether
the powers which Lender is purporting to exercise have been exercisable, or whether any Obligations remain outstanding upon the security
thereof, or as to the necessity or expediency of the stipulations and conditions subject to which any sale shall be made, or otherwise
as to the propriety or regularity of any sale or other disposition or any other dealing with the Collateral charged by such Security
or any part thereof.

 

	11.6	Set-Off or Compensation.

 

In
addition to and not in limitation of any rights now or hereafter granted under Applicable Law, if repayment is accelerated pursuant to
Section 11.2, Lender may at any time and from time to time without notice to the Borrower or any other Loan Party or any other Person,
any notice being expressly waived by the Borrower or any Loan Party, set-off and compensate and apply any and all deposits, general or
special, time or demand, provisional or final, matured or unmatured, and any other indebtedness at any time owing by Lender, to or for
the credit of or the account of the Borrower, against and on account of the Obligations notwithstanding that any of them are contingent
or unmatured.

 

    	58

    	 

    

 

ARTICLE
12 - INDEMNIFICATION, ETC. 

 

	12.1	General Indemnity.

 

The
Borrower agrees to (and to cause the other Loan Parties to) defend (with counsel satisfactory to Lender), protect, indemnify and hold
harmless Lender, and each of its Affiliates, and Subsidiaries, and its respective officers, directors, employees, legal counsel and agents
(each an “Indemnified Party”) from and against any and all obligations, losses, damages, penalties, actions, judgments,
suits, claims, costs, expenses and disbursements of any kind or nature (including, without limitation, the disbursements and the fees
(on a solicitor-client basis) of one legal counsel (unless it would be inappropriate for one counsel to represent all Indemnified Parties
due to a conflict of interest or otherwise in which case, all legal counsel for each Indemnified Party) in connection with any investigative,
administrative or judicial proceedings, whether or not any Indemnified Party shall be designated a party thereto), (collectively, “Losses”)
which may be imposed on, incurred by, or asserted against, any Indemnified Party (whether direct, indirect or consequential and whether
based on any federal, provincial, state or local laws or regulations, including, without limitation, securities, environmental and commercial
laws and regulations, under common law or in equity, or based on contract or otherwise) in any manner relating to or arising out of this
Agreement or any other Loan Document, or any act, event or transaction related or attendant thereto, the making and/or the management
of the Loan or the use or intended use of the proceeds of the Loan; provided, however that the Borrower shall have no obligation hereunder
to any Indemnified Party to the extent that such Losses were caused by or resulted from the wilful misconduct or gross negligence of
such Indemnified Party. To the extent that the undertaking to indemnify set forth in the preceding sentence may be unenforceable against
the Borrower because it violates any law or public policy, the Borrower shall satisfy such undertaking to the maximum extent permitted
by Applicable Law. Any Losses covered by this indemnity shall be paid to each Indemnified Party on demand, and, failing prompt payment,
shall, together with interest thereon at the Deemed Interest Rate from the date incurred by each Indemnified Party until paid in full,
be added to the Obligations and be secured by the Collateral. The provisions of this Section 12.1 shall survive the satisfaction and
payment of all Obligations and the termination of this Agreement.

 

	12.2	Taxes.

 

All
payments made by any other Loan Party under this Agreement and the Loan Documents shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future income, stamp or other taxes, levies, assessments, imposts, deductions, charges,
or withholdings imposed by any foreign, federal, provincial, state, local or other jurisdiction or any Governmental Authority thereof
or political subdivision or taxing authority therein, excluding taxes imposed on the net income or the capital of Lender (all such non-excluded
taxes being hereinafter called “Taxes”). If any Taxes are required to be withheld from any amounts so payable to Lender
hereunder or under any Loan Documents the amounts so payable shall be increased to the extent necessary to yield to the recipient (after
payment of all Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement
or any other Loan Documents. If the Borrower is required by Applicable Law to make any deduction or withholding on account of any Taxes
or other amount from any sum paid or expressed to be payable to Lender under this Agreement or any other Loan Document, then: (i) such
Loan Party shall notify Lender of any such requirement or any change in any such requirement as soon as it becomes aware of it; (ii)
such Loan Party shall pay any such Taxes or other amount before the date on which penalties attached thereto become due and payable;
(iii) the sum payable by the Borrower in respect of which the relevant deduction, withholding or payment is required shall be increased
to the extent necessary to ensure that, after the making of that deduction, withholding or payment, the recipient receives on the due
date and retains (free from any liability in respect of any such deduction, withholding or payment) a sum equal to that which it would
have received and so retained had no such deduction, withholding or payment been required or made; and (iv) within thirty (30) days after
payment of any sum from which the Borrower is required by Applicable Law to make any deduction or withholding, and within thirty (30)
days after the due date of payment of any Taxes or other amount which it is required by clause (ii) above to pay, it shall deliver to
Lender all such certified documents and other evidence as to the making of such deduction, withholding or payment as (A) are reasonably
satisfactory to Lender as proof of such deduction, withholding or payment and of the remittance thereof to the relevant taxing or other
authority and (B) are reasonably required by Lender to enable it to claim a tax credit with respect to such deduction, withholding or
payment. If a Loan Party fails to pay any Taxes when due to the appropriate taxing authority, such Loan Party shall indemnify Lender
for any incremental taxes, interest or penalties that may become payable by Lender as a result of any such failure. The provisions of
this Section 12.2 shall survive the satisfaction and payment of all Obligations and the termination of this Agreement.

 

    	59

    	 

    

 

ARTICLE
13 - GENERAL PROVISIONS

 

	13.1	Notice.

 

Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be given by facsimile or other
means of electronic communication or by hand delivery as hereinafter provided. Any such notice, if sent by fax or other means of electronic
communication, shall be deemed to have been received on the day of sending, or if delivered by hand shall be deemed to have been received
at the time it is delivered to the applicable address noted below. Notices of change of address shall also be governed by this Section
13.1. Notices and other communications shall be addressed as follows:

 

	 	(a)	if to the Borrower:

 

Synergy
CHC Corp.

c/o
Jack Ross

865
Spring Street

Westbrook,
Maine 04092

Fax:

	 	E-mail:	jack.ross@purebrands.ca

 

with
a copy to:

 

Wyrick
Robbins Yates & Ponton LLP

4101
Lake Boone Trail, Suite 300

Raleigh,
North Carolina 27607

U.S.A.

	 	Attention:	W.
    David Mannheim, Esq.
	 	Fax
    No.	(919)
    781-4865
	 	E-mail:	dmannheim@wyrick.com

 

    	60

    	 

    

 

	 	(b)	if to Lender:

 

Knight
Therapeutics (Barbados) Inc.

The
Business Center

Upton,
St. Michael

BB11103

Barbados,
WI

	 	Attention:	Michel
    Loustric, President 
	 	E-mail	mloustric@gudknight.com

 

with
a copy to:

 

Knight
Therapeutics Inc.

3400
De Maisonneuve W., Suite 1055

Montreal
Quebec

Canada
H3Z 3B8

	 	Attention:	Samira
    Sakhia, President
	 	E-mail	ssakhia@gud-knight.com

 

and
with a copy to:

 

Davies
Ward Phillips & Vineberg LLP

900
Third Avenue

24th
Floor

New
York, NY 10022

U.S.A.

	 	Attention:	Dan
    Wolfensohn
	 	Telecopier:	(212)
    308-0132
	 	E-mail	dwolfensohn@dwpv.com

 

	13.2	Choice of Governing Law and Construction.

 

Except
as expressly set forth therein, pursuant to Section 5-1401 of the New York General Obligations Law, this Agreement and the other Loan
Documents (unless expressly stated otherwise in the other Loan Documents) shall be governed by the laws of the State of New York therein
as to interpretation, enforcement, validity, construction, effect, and in all other respects, including, without limitation, the legality
of the interest rate and other charges, but excluding perfection and realization of the security interests and hypothecs in the Collateral,
which shall be governed and controlled by the laws of the relevant jurisdiction.

 

	13.3	Attornment.

 

Pursuant
to Section 5-1402 of the New York General Obligations Law, the parties hereto irrevocably submit and attorn to the non-exclusive jurisdiction
of the courts of the State of New York for all matters arising out of, or in connection with, this Agreement and the other Loan Documents.

 

    	61

    	 

    

 

	13.4	Press Releases.

 

Each
party hereto agrees that it will promptly provide the other party with drafts of any press releases relating to the subject matter hereof,
including the entering into of this Agreement, for review and comment prior to the issuance thereof, such review and comments not to
be unreasonably withheld or delayed.

 

	13.5	Modification and Benefit of Agreement.

 

This
Agreement and the other Loan Documents may not be modified, altered or amended except by an agreement in writing signed by the Borrower
and Lender. The Borrower may not sell, assign or transfer this Agreement, or the other Loan Documents or any portion thereof including,
without limitation, the Borrower’s right, title, interest, remedies, powers or duties thereunder. The sale, assignment, transfer
or other disposition by Lender, at any time and from time to time hereafter, of this Agreement, or the other Loan Documents, or of any
portion thereof, or participation therein including, without limitation, the right, title, interest, remedies, powers and/or duties of
Lender thereunder will require the prior written consent of the Borrower (not to be unreasonably withheld or delayed), unless an Event
of Default is continuing or unless such sale, assignment, transfer or other disposition is to an Affiliate or Associate of Lender. The
Borrower agrees that it shall execute and deliver such documents as Lender may request in connection with any such sale, assignment,
transfer or other disposition. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their successors
and permitted assigns.

 

	13.6	Power of Attorney.

 

The
Borrower acknowledges and agrees that its appointment of Lender as its attorney and agent for the purposes specified in this Agreement
is an appointment coupled with an interest and shall be irrevocable until all of the Obligations are paid in full and this Agreement
is terminated.

 

	13.7	Waivers, Confidentiality, Information Sharing.

 

(a)
In no event shall any party hereto be liable for lost profits or other special or consequential damages.

 

(b)
To the maximum extent permitted by Applicable Law, the Borrower hereby waives all rights to a hearing of any kind prior to the exercise
by Lender of its rights to repossess the Collateral without judicial process or to reply, attach or levy upon such Collateral without
prior notice or hearing.

 

(c)
To the maximum extent permitted by Applicable Law, the Borrower hereby waives demand, presentment, protest and notice of nonpayment.

 

(d)
Failure of Lender, at any time or times hereafter, to require strict performance by any Loan Party of any provision of this Agreement
or any of the other Loan Documents shall not waive, affect or diminish any right of Lender thereafter to demand strict compliance and
performance therewith. Any suspension or waiver by Lender of a Default or Event of Default under this Agreement or any default under
any of the Loan Documents shall not suspend, waive or affect any other Default or Event of Default under this Agreement or any other
default under any of other Loan Documents, whether the same is prior or subsequent thereto and whether of the same or of a different
kind or character. No delay on the part of Lender in the exercise of any right or remedy under this Agreement or any other Loan Documents
shall preclude any other or further exercise thereof or the exercise of any right or remedy. None of the undertakings, agreements, warranties,
covenants and representations of the Loan Parties contained in this Agreement or any of the other Loan Documents and no Default or Event
of Default under this Agreement or default under any of the other Loan Documents shall be deemed to have been suspended or waived by
Lender unless such suspension or waiver is in writing, signed by duly authorized officer(s) of Lender and directed to the Loan Parties
specifying such suspension or waiver.

 

    	62

    	 

    

 

(e)
The Borrower hereby agrees and acknowledges that Lender shall be permitted to share with any of its Affiliates, any information concerning
the Loan Parties, this Agreement and all other Loan Documents, and the subject matter thereof, that Lender has or will have in its possession.

 

	13.8	Timing of Payments.

 

Any
payment received by Lender after 3:00 p.m. (New York time) on a Business Day, or on any day that is not a Business Day, shall be credited
to the account of the Borrower on the following Business Day.

 

	13.9	Judgment Currency.

 

If
in the recovery by Lender of any amount owing hereunder in any currency, judgment can only be obtained in another currency and because
of changes in the exchange rate of such currencies between the date of judgment and payment in full of the amount of such judgment, the
amount of recovery under the judgment differs from the full amount owing hereunder, the Borrower shall pay any such shortfall to Lender,
and such shortfall can be claimed by Lender against the Borrower as an alternative or additional cause of action and any surplus received
by Lender will be repaid to the Borrower.

 

	13.10	Severability.

 

If
any provision of this Agreement is held to be prohibited by or invalid under Applicable Law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or remaining provisions of this
Agreement.

 

	13.11	Conflicts.

 

In
the event there occurs any conflict or inconsistency between any provision hereof and any provision of the other Loan Documents, the
provision hereof, to the extent of any such conflict or inconsistency, shall govern.

 

	13.12	Entire Agreement.

 

This
Agreement and the other Loan Documents embody the entire agreement and understanding between the parties hereto and thereto and supersede
all prior agreements and understandings between such parties relating to the subject matter hereof and thereof and may not be contradicted
by evidence of prior or contemporaneous agreements of the parties. There are no unwritten oral agreements between the parties related
to the subject matter of this Agreement and the other Loan Documents.

 

	13.13	Counterpart Execution/Electronic Delivery.

 

This
Agreement may be executed in counterpart and delivered by fax or other electronic means of delivery.

 

	13.14	Interpretation.

 

From
and after the date hereof, all references in the Loan Documents to the “Loan Agreement” (or words of similar import) shall
be deemed to be references to this Amended and Restated Loan Agreement, as may otherwise be amended, restated, supplemented or otherwise
modified from time to time. All references in any of the Loan Documents to the “Loan Documents” shall mean the Loan Documents
as amended by this Amended and Restated Loan Agreement, as may otherwise be amended, restated, supplemented, confirmed or otherwise modified
from time to time.

 

[Remainder
of page intentionally left blank.]

 

    	63

    	 

    

 

IN
WITNESS WHEREOF, the Borrower has duly executed this Agreement as of the date set out on the first page hereof.

 

	 	KNIGHT THERAPEUTICS (BARBADOS) INC.
	 	 	 
	 	Per:
    	/s/
    Michel Loustric
	 	Name: 	Michel
    Loustric
	 	Title:	President
	 	 	 
	 	SYNERGY CHC CORP.
	 	 	 
	 	Per:
    	/s/
    Jack Ross
	 	Name:	Jack
    Ross
	 	Title:	CFO
    and Corporate Secretary
	 	 	 
	 	Per:
    	/s/
    Jack Ross
	 	Name:	Jack
    Ross
	 	Title:	CEO

 

Signature
Page – Loan Agreement

 

    	 

    	 

    

 

SCHEDULE
8.2

 

COMPLIANCE
CERTIFICATE

 

	TO:	KNIGHT THERAPEUTICS (BARBADOS) INC.

Chancery
House, High Street

Bridgetown,
St. Michael

BB
11128, Barbados WI

 

	 	Attention:	Michel
    Loustric
	 	Telecopier:	1-246-431-0076

 

	FROM:	SYNERGY CHC CORP.

 

	DATE:	●, 201●

 

1.
This Compliance Certificate is delivered to you, as Lender, pursuant to the Amended and Restated Loan Agreement made as of ●, 2017
between the Borrower and Lender, as amended, supplemented, restated or replaced from time to time (the “Loan Agreement”).
All defined terms set forth, but not otherwise defined, in this notice shall have the respective meanings set forth in the Loan Agreement,
unless the context requires otherwise.

 

2.
I am the duly appointed • of the Borrower and am providing this Certificate pursuant to the Loan Agreement.

 

3.
I am familiar with the Loan Agreement for purposes of delivering this Certificate.

 

4.
The Borrower is in compliance with the Financial Covenants set forth in Section 9.1(z) of the Loan Agreement, namely:

 

(a)
EBITDA for the twelve (12) months ending • was $•;

 

(b)
for the Fiscal Quarter ending •, Net Debt to TTM EBITDA Ratio was •;

 

(c)
as at ●, the cash balance was $•; and

 

(d)
as at ●, the minimum Consolidated gross income was $•.

 

5.
Attached as Schedule A is a list of additional Material Contracts and Material Licenses entered into since the date of the prior
Compliance Certificate.

 

6.
All rent payable to any landlord of leased real premises is up to date and there is no default by the Borrower under any such lease.

 

    	 

    	 

    

 

7.
As of the date hereof, the Borrower is and will be in compliance with all of the terms and conditions of the Loan Agreement to which
it is a party and no Default or Event of Default is continuing under the Loan Agreement.

 

IN
WITNESS WHEREOF, I have signed this Certificate.

 

	 	SYNERGY CHC CORP.
	 	 	 
	 	Per:	 
	 	Name: 	●
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	Per:	 
	 	Name:
    	●
	 	Title:	Chief
    Financial Officer

 

    	 

    	 

    

 

Schedule
3.1(b)

 

Repayment
Schedule

 

First
Tranche Repayment Schedule1

 

	Date	 	Amount	 
	 	 	 	 
	30/09/2017	 	 	562.5	 
	31/12/2017	 	 	562.5	 
	20/01/2018	 	 	562.5	 

 

 

1
($k)

 

Second
Tranche Repayment Schedule1

 

	Date	 	Amount	 
	 	 	 	 
	11/8/2017	 	 	343.75	 
	11/9/2017	 	 	343.75	 
	11/10/2017	 	 	343.75	 
	11/11/2017	 	 	343.75	 

 

Third
Tranche Repayment Schedule2

 

	Date	 	Amount	 
	 	 	 	 
	8/11/2017	 	 	500	 
	8/2/2018	 	 	500	 
	8/5/2018	 	 	500	 
	8/8/2018	 	 	500	 
	8/11/2018	 	 	500	 
	8/2/2019	 	 	500	 
	8/5/2019	 	 	500	 
	8/8/2019	 	 	500	 
	8/11/2019	 	 	500	 
	8/2/2020	 	 	500	 
	8/5/2020	 	 	500	 
	8/8/2020	 	 	4,500	 

 

 

1
($k)

2
($k)

 

Additional
Tranche Repayment Schedule

 

		●	sixty
                                            percent (60%) of the principal amount of any Additional Tranche shall be repaid in equal
                                            quarterly payments over the term of such Additional Tranche; and
	 	 	 
		●	forty
                                            percent (40%) of the principal amount of any Additional Tranche shall be repaid at the applicable
                                            Maturity Date of such Additional Tranche;

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]