Document:

Exhibit

Exhibit 10.1

PURCHASE AGREEMENT
by and among
TRUGREEN, INC.,
TRUGREEN COMPANIES L.L.C.,
OUTDOOR HOME SERVICES HOLDINGS LLC,
and
SLS HOLDINGS, INC.
dated as of March 19, 2019

TABLE OF CONTENTS
	
			
	 
	Article I
	 

	 
	CERTAIN DEFINITIONS
	 

	 
	Article II
	 

	 
	THE TRANSACTIONS
	 

	2.1
	The Transactions
	3

	2.2
	Other Closing Actions
	3

	2.3
	Other Agreements
	4

	2.4
	Tax Matters
	5

	 
	Article III
	 

	 
	REPRESENTATIONS AND WARRANTIES OF THE PARTIES
	 

	3.1
	Representations of All Parties
	5

	3.2
	Representations of the Scotts Member
	6

	3.3
	Representations of the TruGreen Members
	6

	 
	Article IV
	 

	 
	GENERAL PROVISIONS
	 

	4.1
	Further Assurances
	7

	4.2
	Consent; Waiver
	7

	4.3
	Severability
	7

	4.4
	Entire Agreement
	7

	4.5
	No Third-Party Beneficiaries
	8

	4.6
	Public Announcements
	8

	4.7
	Governing Law; Jurisdiction
	8

	4.8
	Waiver of Jury Trial
	9

	4.9
	No Presumption Against Drafting Party
	9

	4.10
	Execution of Agreement
	9

	4.11
	Interpretation
	10

i

PURCHASE AGREEMENT
This purchase agreement, dated as of March 19, 2019 (this “Agreement”), is entered into by and among TruGreen Companies L.L.C., a Delaware limited liability company (“TruGreen LLC”), TruGreen, Inc., a Delaware corporation (“TruGreen, Inc.” and together with TruGreen LLC, the “TruGreen Members”), SLS Holdings, Inc., a Delaware corporation (the “Scotts Member”), and Outdoor Home Services Holdings LLC, a Delaware limited liability company (the “Company” and together with the TruGreen Members and the Scotts Member, the “Parties”).
WHEREAS, TruGreen LLC, TruGreen, Inc., Outdoor Home Services, Inc., a Delaware corporation, The Scotts Miracle-Gro Company, an Ohio corporation (“Scotts”), and the Scotts Member are parties to an Amended and Restated Limited Liability Company Agreement of the Company, dated as of April 13, 2016, as amended by the amendments dated June 5, 2017 and August 11, 2017 (the “LLC Agreement”);
WHEREAS, as of the date hereof, TruGreen LLC owns 73,313,004 Common Units (as defined in the LLC Agreement) of the Company, TruGreen, Inc. owns 740,535 Common Units of the Company and the Scotts Member owns 31,446,535 Common Units of the Company (the “Purchased Units”);
WHEREAS, TruGreen Limited Partnership, a Delaware limited partnership (“TruGreen LP”), is party to a First Lien Credit Agreement, dated as of April 13, 2016 (the “First Lien Credit Agreement”), by and among TruGreen LP, as borrower, the several banks and other financial institutions from time to time party thereto, and JP Morgan Chase Bank, N.A., as administrative agent and collateral agent, as amended by the amendment dated August 11, 2017, providing for, among other things, a term loan facility in the initial aggregate principal amount of $800,000,000 and a revolving credit facility in the aggregate principal amount of $146,000,000, and a Second Lien Credit Agreement, dated as of April 13, 2016 (the “Second Lien Credit Agreement”, and together with the First Lien Credit Agreement, the “Credit Agreements”), by and among TruGreen LP, as borrower, the several banks and other financial institutions from time to time party thereto, and Cortland Capital Market Services, LLC, as collateral agent, as amended by the amendment dated August 11, 2017, providing for, among other things, a term loan facility in the aggregate principal amount of $200,000,000;
WHEREAS, TruGreen LP intends to amend the Credit Agreements to, among other things, (i) provide for the refinancing of the term loan facility and the revolving credit facility under the First Lien Credit Agreement, (ii) provide for the increase of the term loan facility under the First Lien Credit Agreement to the aggregate principal amount of $965,000,000, (iii) provide for the increase of the revolving credit facility under the First Lien Credit Agreement to the aggregate amount of $181,000,000 and (iv) make certain changes to the Second Lien Credit Agreement consistent with the changes made to the First Lien Credit Agreement (collectively, the “Refinancing”); 
WHEREAS, contemporaneously with the execution of this Agreement, Arawak IX, L.P. (“Arawak”), TruGreen LP and the Scotts Member shall enter into an Assignment and 

Assumption Agreement, pursuant to which Arawak shall purchase all loans held by the Scotts Member and its affiliates under the Second Lien Credit Agreement;
WHEREAS, it is contemplated that, the Company will make cash distributions in the aggregate amount of $234,183,600.00 to its members, on a pro rata basis, with TruGreen LLC receiving $162,736,409.11, TruGreen, Inc. receiving $1,643,801.24, and the Scotts Member receiving $69,803,389.65 (the “Company Distributions”);
WHEREAS, the amount of the Company Distribution to the Scotts Member will be offset by the amount of the Additional Consulting Fee (as defined in the Consulting Agreement (as defined below)) previously received by the Scotts Member in respect of the period from date hereof to the end of the first quarter of 2019, being $29,917.00 (the “Consulting Fee Set-Off Amount”);
WHEREAS, it is contemplated that, TruGreen, Inc. will make a cash contribution to TruGreen LLC of all of the proceeds of its portion of the Company Distributions (the “TruGreen, Inc. Contribution”); and
WHEREAS, the Scotts Member wishes to sell, and TruGreen LLC wishes to buy, immediately after the Company Distributions and the TruGreen, Inc. Contribution, the Purchased Units in exchange for $164,380,210.35 in cash.
NOW, THEREFORE, in consideration of the mutual agreements and covenants hereinafter set forth, and for good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:
ARTICLE I

CERTAIN DEFINITIONS
As used in this Agreement, the following terms shall have the following meanings:
“Closing” means the closing of the Company Distributions, the Refinancing and the Unit Purchase.
“Code” means the Internal Revenue Code of 1986 and any successor statute, as amended from time to time.
“Encumbrance” means any charge, claim, encumbrance, pledge, lien (including a tax lien), collateral assignment, security interest, mortgage, easement, encroachment, right-of-way, covenant, condition, restriction, option, right of first offer or refusal, third party right, limitation on voting rights, deed of trust, title retention, purchase agreement, conditional sale or other security arrangement, or any license, order or charge of any nature, or any adverse claim of title, title defect, ownership or use, or any agreement of any kind restricting transfer of ownership or voting of any nature.

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“Governmental Body” means any domestic or foreign government, including any foreign, federal, state, provincial, local, territorial or municipal government or any political subdivision thereof, or any governmental, regulatory, judicial or administrative division, agency, authority, board, bureau, court, tribunal, or commission.
“Law” means any domestic or foreign, federal, state or local law, statute, regulation, ordinance, rule, order, decree, judgment, consent decree or other binding directive issued, enacted, promulgated, entered into, agreed or imposed by any Governmental Body.
“Pass-Through Tax Return” means any tax return filed by or with respect to the Company or any of its subsidiaries to the extent that (i) the Company or such subsidiary is treated as a partnership or disregarded entity for purposes of such tax return and (ii) the results of operations reflected on such tax return are also reflected on tax returns of the Scotts Member or the TruGreen Members, or the direct or indirect (if any) owners of any of the foregoing on a pass-through basis.
“Person” means any natural person, general or limited partnership, limited liability company, unlimited liability company, corporation (including non-for-profit corporation), joint stock company, trust, estate, joint venture, group, association or unincorporated organization or any other form of business or professional entity, but does not include a Governmental Body.
ARTICLE II

THE TRANSACTIONS
2.1    The Transactions. The following transactions shall be consummated on the date hereof in the following order:
(a)    The Company shall make the Company Distributions and shall pay, or cause to be paid, the amounts thereof in cash to (or as directed by) the Scotts Member and the TruGreen Members, as applicable, by wire transfer of immediately available funds to an account designated by the Scotts Member (which account information is set forth on Annex A hereto) and at the direction of the TruGreen Members, as applicable; provided that the Company Distribution to the Scotts Member shall be reduced by the Consulting Fee Set-Off Amount, such that the Company will pay, or cause to be paid, $69,773,472.65 to the Scotts Member.
(b)    TruGreen LLC shall purchase all of the Purchased Units (the “Unit Purchase”) and in exchange therefor TruGreen LLC shall pay, or cause to be paid, to the Scotts Member $164,380,210.35 in cash (the “Purchase Price”) by wire transfer of immediately available funds to an account designated in writing by the Scotts Member (which account information is set forth on Annex A hereto).
2.2    Other Closing Actions. Effective as of the Closing:
(a)    The Scotts Member shall hereby withdraw as a Member under the LLC Agreement and cease to have any rights or obligations under the LLC Agreement other than (i) 

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the obligations contained in Section 10.6 of the LLC Agreement (related to confidentiality), which are hereby incorporated herein by reference and shall remain in full force and effect, (ii) the rights contained in Section 8.9 of the LLC Agreement, which are hereby incorporated herein by reference and shall remain in full force and effect, (iii) the rights contained in Article XI of the LLC Agreement, which are hereby incorporated herein by reference and shall remain in full force and effect and (iv) the rights and obligations contained in Section 6.4, Section 14.3(b)-(d) and Section 15.2 of the LLC Agreement (with the exception of Section 15.2(c)(iii)(1) and Section 15.2(d) of the LLC Agreement), which are hereby incorporated herein by reference, and shall remain binding on the Scotts Member and the TruGreen Members for as long a period of time as is necessary to resolve with the Internal Revenue Service any and all matters regarding the federal income taxation of the Company or its members; provided that the Scotts Member shall be entitled to the review and comment rights provided in the second sentence of Section 15.2(a) for Pass-Through Tax Returns with respect to taxable periods or portions thereof during which the Scotts Member held Common Units representing at least the Minimum Governance Amount (as defined in the LLC Agreement) notwithstanding that the Scotts Member shall no longer hold Common Units representing at least the Minimum Governance Amount. In furtherance of the foregoing, the parties to the LLC Agreement are amending and restating the LLC Agreement concurrently with the Closing. The provisions referenced above incorporated herein by reference shall refer to the provisions in the form set forth in the LLC Agreement prior to the adoption of the Second Amended and Restated LLC Agreement being entered into in connection with the transactions contemplated hereby.  
(b)    The Consulting Agreement, dated as of April 13, 2016 (the “Consulting Agreement”), by and among the Company, TruGreen LP and Scotts, shall terminate in accordance with Section 4 thereof by execution of the termination agreement being entered into concurrently herewith (the “Termination Agreement”), and the Indemnification Agreement, dated as of April 13, 2016 (the “Indemnification Agreement”), by and among the Company, Outdoor Home Services Midco LLC, a Delaware limited liability company, Outdoor Home Services GP LLC, a Delaware limited liability company, TruGreen LP, the Scotts Member and Scotts, shall terminate and be of no further force and effect, other than in respect of claims or matters relating to or arising during the period prior to Closing, with respect to which the Indemnification Agreement shall continue to be in effect, by execution of the Termination Agreement. 
(c)    The Scotts Member shall cause all of its appointees to the board of directors of the Company to resign.
2.3    Other Agreements.  Except as expressly set forth herein, all indemnification and other rights and obligations set forth in the Contribution and Distribution Agreement, dated as of December 10, 2015, between Scotts and TruGreen Holding Corporation, a Delaware corporation, and the Ancillary Agreements (as defined therein) shall remain in full force and effect in accordance with their terms, including the terms relating thereto set forth in the Closing Side Letter (to the extent such rights and obligations remain in effect in accordance with the terms of such agreements).

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2.4    Tax Matters.  The Parties agree to treat, for U.S. federal, state and local income tax purposes, (i) the Company Distributions as a tax-free distribution under Section 731(a) of the Code and (ii) the Unit Purchase as a sale or exchange of the Purchased Units under Sections 741 and 751(a) of the Code.  None of the Parties shall take a tax reporting position inconsistent with the preceding sentence.  Attached as Schedule 2.4 are the agreed principles to determine the allocation of the Purchase Price and other taxable consideration, for U.S. federal, state and local income tax purposes, among the assets of the Company, which the Parties agree represents the fair market value of the assets of the Company (such schedule, the “Allocation Principles”).  Within 60 days after Closing, TruGreen LLC shall prepare and deliver to the Scotts Member an allocation statement which allocates Purchase Price and other taxable consideration among the Company’s assets and is prepared in a manner consistent with the Allocation Principles and Section 1060 of the Code (the “Allocation Statement”).  The Parties shall report, act and file tax returns in all respects and for all purposes consistent with the Allocation Statement. With respect to any Pass-Through Tax Return, the Parties agree that all items of income, gain, loss and deduction shall be allocated between the pre-closing tax period and the remaining portion of such tax year using a pro rata allocation method such that all such items shall be allocated in proportion to the number of days in each period in a manner consistent with Section 706(d) of the Code and the Treasury Regulations promulgated thereunder.
ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE PARTIES
3.1    Representations of All Parties.  Each Party represents and warrants to the other Parties as follows:  
(a)    Organization.  Such Party is an entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization, formation or incorporation, as applicable, and has all requisite corporate or other (as applicable) power and authority to conduct its business as currently conducted.   
(b)    Power and Authority.  Such Party has all requisite power and authority to enter into this Agreement and to perform its obligations hereunder, and to consummate the transactions contemplated hereby.  This Agreement has been duly authorized, executed and delivered by such Party and constitutes a valid and binding obligation of such Party enforceable against such Party in accordance with its terms, except to the extent that the enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting the enforcement of creditors’ rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity.
(c)    No Violations.  The execution and delivery of this Agreement by such Party, the performance of its obligations hereunder, and the consummation of the transactions contemplated hereby, will not violate, conflict with or result in a breach, or constitute a default (with or without notice or lapse of time or both) under any provision of its charter, bylaws or other similar organizational documents (if and as applicable) or any agreement or other instrument to which it is a party.  No consent, approval, authorization, order, filing, registration 

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or qualification of or with any court, governmental authority or third person is required to be obtained by such Party, including in the case of the TruGreen Members, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the execution and delivery of this Agreement or the performance of such Party’s obligations hereunder.
(d)    No Other Representations or Warranties. Each Member acknowledges and agrees that it is not relying upon any representations or warranties of the other Members, express or implied, except those contained herein, and each Member specifically does not request, desire or require the other Members to make any other representations or warranties whatsoever with respect to the other Members and/or sale of the Purchased Units or any other matter with respect to any of the transactions contemplated hereby. Each Member acknowledges and agrees that (i) the other Members may have knowledge of material non-public or other confidential information regarding the Company that such Member does not have and (ii) it has made its own assessment of the present condition and the future prospects of the Company and its business and is sufficiently experienced and sophisticated to make an informed judgment with respect thereto and the purchase or sale of the Purchased Units, as applicable.
3.2    Representations of the Scotts Member. 
(a)    Common Unit Ownership. All of Purchased Units are (i) legally and beneficially owned by the Scotts Member and (ii) held free and clear of any Encumbrance (other than any restriction on transfer arising under applicable securities Law).  There are no outstanding options, warrants, calls, rights or any other agreements, trust, proxies or similar arrangements affecting the sale or voting of the Purchased Units (other than this Agreement and the LLC Agreement).  At, and subject to the occurrence of, the Closing, TruGreen LLC will acquire good and valid title to the Purchased Units, free and clear of any Encumbrance (other than any restriction on transfer arising under applicable securities Law and any Encumbrance created by TruGreen LLC).  
(b)    No Brokers. No Person has acted, directly or indirectly, as an agent, broker, investment banker, finder or financial advisor for the Scotts Member in connection with the transactions contemplated by this Agreement, and no Person is entitled to any fee or commission or like payment in respect thereof.
3.3    Representations of the TruGreen Members.
(a)    No Brokers.  No Person has acted, directly or indirectly, as an agent, broker, investment banker, finder or financial advisor for the TruGreen Members in connection with the transactions contemplated by this Agreement, and no Person is entitled to any fee or commission or like payment in respect thereof.
(b)    Investment Matters.  Each of the TruGreen Members is an “accredited investor” within the meaning of Section 506 of Regulation D promulgated under the Securities Act of 1933 (the “Securities Act”).  Each of the TruGreen Members is acquiring the Purchased Units for investment purposes only, and not with a view to, or for, any public resale or other distribution thereof.  The TruGreen Members acknowledge that the Purchased Units have not 

6

been registered under the Securities Act or any state securities laws, and that the Purchased Units may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is pursuant to the terms of an effective registration statement under the Securities Act and is registered under any applicable U.S. state or non-U.S. securities Laws, or pursuant to an exemption from registration under the Securities Act and any applicable U.S. state or non-U.S. securities Laws.
(c)    Special Consulting Fee.  No Special Consulting Fee (as defined in the Consulting Agreement) will be paid in connection with this Agreement or the transactions contemplated hereby.  The transactions contemplated hereby shall not constitute a Special Transaction (as defined in the Consulting Agreement) under the Consulting Agreement.  
ARTICLE IV

GENERAL PROVISIONS
4.1    Further Assurances.  Each Party shall (and shall cause its subsidiaries and representatives to) from time to time, at another Party’s reasonable request, execute and deliver, or cause to be executed and delivered, such further instruments, documents, conveyances or assurances and perform such further acts, as such other Party may reasonably require in order to fully effect the transactions contemplated by this Agreement.
4.2    Consent; Waiver.  The Parties hereby consent to the transactions contemplated by this Agreement (including, for the avoidance of doubt, the Refinancing and withdrawal of the Scotts Member) for all purposes, including under the LLC Agreement, without regard to notice or other requirements, including any that may be set forth in the LLC Agreement.  The Parties hereby waive any and all provisions under the LLC Agreement that restrict, or might restrict, the transactions contemplated hereby.  
4.3    Severability. If any term or other provision of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void, illegal or incapable of being enforced by any rule, Law or public policy of any jurisdiction (a) such invalidity, illegality or unenforceability shall be fully separable and shall not affect any other provision or portion of any provision of this Agreement in such jurisdiction and (b) all other terms and provisions of this Agreement shall nevertheless remain in full force and effect and shall be deemed substituted for the provision at issue, a valid, legal and enforceable provision. Upon a determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible to the fullest extent permitted by Law in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible, and so long as the economic or legal substance of the transactions contemplated hereby is not affected in a manner adverse to any Party. 
4.4    Entire Agreement. Without limiting Section 2.3, this Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, arrangements, communications, understandings and 

7

undertakings with respect to the subject matter hereof, both written and oral.  This Agreement shall not be deemed to contain or imply any restriction, covenant, representation, warranty, agreement or undertaking of any party with respect to the transactions contemplated hereby other than those expressly set forth herein, and none shall be deemed to exist or be inferred with respect to the subject matter hereof. 
4.5    No Third-Party Beneficiaries.  This Agreement is for the sole benefit of the Parties and their permitted successors and assigns and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
4.6    Public Announcements. The timing and content of all press releases or other written public announcements regarding any aspect of this Agreement or the transactions contemplated hereby by a Party shall be subject to prior consultation with and the consent of the other Parties (which shall not be unreasonably withheld or delayed); provided that (i) a Party may, without the prior consent of any other Party, issue such a press release or other similar public statement or disclosure (including in current, quarterly and annual forms filed with the Securities and Exchange Commission and in connection with earnings, analyst and similar conferences customary for a public company) as may be required by, or deemed advisable to comply with, in either case, in the good faith judgment of the disclosing Party, applicable Law or any listing agreement with a securities exchange or debt agreement to which the disclosing Party is a party, in which case, the disclosing Party shall, to the extent reasonably practicable under the circumstances, use reasonable efforts to consult with the other Parties regarding the form and content of such disclosure prior to the disclosure thereof and (ii) without limiting clause (i) above, once the content of a disclosure by a disclosing Party has been approved by the other Parties, the disclosing Party may make public disclosure of substantially similar content in subsequent statements or filings.   
4.7    Governing Law; Jurisdiction.
(a)    This Agreement will be governed by, and construed in accordance with, the Laws of the State of New York, without regard to any choice or conflict of laws provision or rule (whether of the State of New York or any other jurisdiction) that are not mandatorily applicable by Law and would permit or require the application of the Laws of another jurisdiction. 
(b)    Each Party irrevocably agrees that any and all legal actions, proceedings or counterclaims (whether based on contract, tort or otherwise) arising out of or relating to this Agreement brought by the other party or its successors or assigns shall be brought and determined in any New York State or federal court sitting in the borough of Manhattan in The City of New York (or, solely if such court lacks subject matter jurisdiction, in any appropriate New York State or federal court), and each Party hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby.  Each Party agrees not to commence any action, suit, and proceeding or counterclaim relating thereto, except in the courts described above in New York, other than actions in any court of competent jurisdiction to enforce any judgment, 

8

decree or award rendered by any such court in New York as described herein.  Each Party hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any legal action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, (i) any claim that it is not personally subject to the jurisdiction of the courts in New York as described herein for any reason, (ii) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (iii) that (A) the action or proceeding in any such court is brought in an inconvenient forum, (B) the venue of such suit, action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.  Nothing in this Section 4.7 shall be deemed to prevent any party from seeking to remove any action to a federal court in the State of New York.
4.8    Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES (AND SHALL CAUSE THEIR RESPECTIVE SUBSIDIARIES TO IRREVOCABLY AND UNCONDITIONALLY WAIVE) ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, LEGAL PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT OR BY THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 4.8.
4.9    No Presumption Against Drafting Party.  Each Party acknowledges that it has been represented by counsel in connection with this Agreement and the transactions contemplated by this Agreement.  Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the drafting party has no application and is expressly waived.
4.10    Execution of Agreement.  This Agreement may be executed in one or more counterparts, and by the different Parties in separate counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.  The exchange of copies of this Agreement and of signature pages by facsimile, .pdf signature, or electronic mail transmission shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes.

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4.11    Interpretation.  The headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.  The use of the terms “including” or “include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively.  The word “extent” in the phrase “to the extent” shall mean the degree to which a subject or thing extends, and such phrase shall not simply mean “if”. Reference to any Person includes such Person’s successors and assigns to the extent such successors and assigns are permitted by the terms of any applicable agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually.  Reference to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof.  Reference to any Law means such Law as amended, modified, codified, replaced or re-enacted, in whole or in part, including rules, regulations, enforcement procedures and any interpretations promulgated thereunder, all as in effect on the date hereof.  Underscored references to Articles or Sections shall refer to those portions of this Agreement.  References to “$” or “dollars” in this Agreement shall mean United States dollars. Any reference in this Agreement to a time or date shall be deemed to be such date or time in New York City, unless otherwise specified.  “Writing”, “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic format) in a visible form.  The use of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall, unless otherwise stated, refer to this Agreement as a whole and not to any particular Article, Section or clause of this Agreement.  The use of the word “or” is not intended to be exclusive unless otherwise stated. The use of the phrases “the date of this Agreement”, “the date hereof”, “of even date herewith” and terms of similar import shall be deemed to refer to the date set forth in the preamble to this Agreement.  The word “will” shall be construed to have the same meaning and effect as the word “shall” and vice versa.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above by their respective duly authorized representatives.
	
	
	SLS HOLDINGS, INC.

	 

	By:   /s/ AIMEE M. DELUCA                        

	Name:  Aimee M. DeLuca

	Title:  President

Purchase Agreement

	
	
	TRUGREEN COMPANIES L.L.C.

	 

	By:   /s/ MICHAEL B. SIMS                        

	Name:  Michael B. Sims

	Title:  Senior Vice President & Chief
Financial Officer

	
	
	TRUGREEN, INC.

	 

	By:   /s/ MICHAEL B. SIMS                        

	Name:  Michael B. Sims

	Title:  Senior Vice President & Chief
Financial Officer

	
	
	OUTDOOR HOME SERVICES HOLDINGS LLC

	 

	By:   /s/ MICHAEL B. SIMS                        

	Name:  Michael B. Sims

	Title:  Senior Vice President & Chief
Financial Officer

Purchase Agreement

Schedule 2.4
Allocation Principles
	
				
	Asset Class
	Purchase Price Allocation

	Class I Assets:
	 

	 
	Cash
	Amount as of the Closing date

	 
	Deposit accounts
	Amount as of the Closing date

	 
	 
	 

	 
	 
	 

	Class II Assets:
	 

	 
	Actively traded personal property
	GAAP Book Value as of the Closing date

	 
	Certificates of deposit
	GAAP Book Value as of the Closing date

	 
	 
	 

	 
	 
	 

	Class III Assets:
	 

	 
	Debt instruments
	Face Amounts as of the Closing date

	 
	Accounts receivable
	Face Amounts as of the Closing date

	 
	 
	 

	 
	 
	 

	Class IV Assets:
	 

	 
	Inventory
	GAAP Book Value as of the Closing date

	 
	 
	 

	 
	 
	 

	Class V Assets:
	 

	 
	Machinery and equipment
	GAAP Book Value as of the Closing date

	 
	Real estate
	GAAP Book Value as of the Closing date

	 
	Other Class V
	GAAP Book Value as of the Closing date

	 
	 
	 

	 
	 
	 

	Class VI Assets:
	N/A

	 
	 
	 

	 
	 
	 

	Class VII Assets:
	 

	 
	Goodwill and going concern value
	All remaining taxable consideration1

________________________
1  Amount to be determined by reference to the Purchase Price and other taxable consideration issued in exchange for the Purchased Units.Exhibit 10.1

 

SETTLEMENT AGREEMENT
AND MUTUAL GENERAL RELEASE

 

This SETTLEMENT AGREEMENT AND MUTUAL
GENERAL RELEASE (hereinafter the “Settlement Agreement” or the “Agreement”), is entered into as
of the 13th day of March, 2019 (hereinafter the “Effective Date”), between and among Auctus Fund, LLC
(hereinafter “Auctus” or the “Fund”), a Delaware limited liability company, on the one hand, and
OriginClear, Inc. (hereinafter “OCLN” or the “Company”), a Nevada corporation, on the other hand,
(each, a “Party,” and collectively hereinafter the “Parties”).

 

WHEREFORE, on or
about April 2, 2018, the Company executed, inter alia, a certain Securities Purchase Agreement (hereinafter the “First
Purchase Agreement” or the “First SPA”) and a certain Convertible Promissory Note (hereinafter the “First
Note” and, with the First SPA and other documents, collectively hereinafter the “First Transaction Documents”),
thereby entering into a contract with Plaintiff Auctus for its investment in OCLN;

 

WHEREFORE, on or
about May 31, 2018, the Company executed, inter alia, a certain Securities Purchase Agreement (hereinafter the “Second
Purchase Agreement” or the “Second SPA”) and a certain Convertible Promissory Note (hereinafter the “Second
Note” and, with the Second SPA and other documents, collectively hereinafter the “Second Transaction Documents”
and with the First Transaction Documents, collectively hereinafter the “Transaction Documents”), thereby entering into
a contract with Plaintiff Auctus for its investment in OCLN;

 

WHEREFORE, the Fund
has alleged that the Company failed and refused to allow it to convert all or portions of the debt, as represented by the Note,
into shares of common stock of OCLN, causing various Events of Default by the Company under the Purchase Agreements and the Notes;

 

WHEREFORE, on or
about February 12, 2019, the Fund filed an action in the United States District Court for the District of Massachusetts, styled
as Auctus Fund, LLC v. OriginClear, Inc., Dkt. No. 1:19-CV-10273-FDS (D. Mass.)(Saylor, J.)(hereinafter the “Litigation”),
alleged, inter alia, breaches of the Purchase Agreements and the Notes;

 

WHEREFORE, the Fund
and the Company have determined it to be in their mutual interests to amicably resolve outstanding business matters, including
any and all potential disputes, claims, and all matters which have been or could have been alleged by Auctus or, which have been
or could have been alleged by the Company;

 

NOW THEREFORE, as
of the Effective Date of this Agreement and in consideration of the promises and the mutual covenants and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
agree as follows:

 

     

     

    

 

ARTICLE I

 

CONSIDERATION / MINIMUM SETTLEMENT

 VALUE
/ CONVERSION OF SETTLEMENT SHARES

 

1.1 Settlement
Purpose. The Parties agree and acknowledge that the execution of this Settlement Agreement does not constitute an admission
by any of the Parties of any liability of any kind or of any wrongdoing by any entity or individual, and the Parties each specifically
deny any and all liability or wrongdoing. The Parties agree and acknowledge that they understand that this Agreement is entered
into solely for the purpose of avoiding the possible future expenses, burdens or distractions of a continuing dispute or litigation.

 

1.2 Consideration.
a) In consideration for the release, covenants, terms and conditions of this Settlement Agreement, the receipt and sufficiency
of which is hereby acknowledged, the Parties agree and acknowledge that a total of Five Hundred – Seventy Thousand and 00/100
($570,000.00) Dollars (U.S.) in principal and interest, remains outstanding under the Notes (hereinafter the “Minimum
Settlement Value” or the “Settlement Value”) as of the Effective Date, pursuant to the terms of the
Notes.

 

b) In
consideration for the release, covenants, terms and conditions of this Settlement Agreement, the receipt and sufficiency of which
is hereby acknowledged, The Company agrees to irrevocably authorize and reserve a sufficient amount of shares of the Company’s
common stock pursuant to the reserve requirements of the Notes, as follows: an initial amount of One Billion – Seven Hundred
– Fifty – Three – Million – Eight Hundred – Forty – Six Thousand – One Hundred

– Fifty – Four
(1,753,846,154), which shall be increased within thirty (30) calendar days to Five Billion – Two Hundred – Sixty –
One Million – Five Hundred – Thirty – Eight Thousand – Four Hundred – Sixty – Two (5,261,538,462)
shares) (hereinafter the “Settlement Shares”) of the common stock of the Company (hereinafter the “Common Stock”)
for issuance upon conversion by the Fund of the amounts owed under the Notes, in accordance with the terms of the Notes (including
but not limited to the beneficial ownership limitations contained in the Notes), as contemporaneously executed herewith. Such irrevocable
authorization and reservation for the initial amount by the Company shall occur by no later than one (1) business day, and for
the increase no later than thirty (30) calendar days, after the Effective Date.

 

c) The
Fund’s resale of the Company’s common stock received pursuant to any conversion under the Notes shall be subject to
the following leak-out provisions:

 

i) Except
as otherwise expressly provided herein, and provided that the Company has not breached any of the provisions of the Settlement
Agreement, for a period commencing on the Effective Date and for a period of one hundred – eighty (180) days thereafter
(hereinafter the “Leak-Out Period”), Fund may publicly sell daily the greater of: a) twenty - five (25.00%) percent
of the average daily trading volume over the prior thirty (30) day trading period, or b) Ten Thousand and 00/100 ($10,000.00)
Dollars (U.S.) in net daily transaction value (net of fees, brokerage fees, transfer agent fees, and such similar fees in the
ordinary course of business), in settlement of converted shares of the Defendant’s publicly traded common stock) in settlement
of converted Shares.

 

    2

     

    

 

ii) All
Shares subject to this Agreement will be subject to irrevocable instructions delivered to the Transfer Agent, as defined in the
Settlement Agreement, concurrently herewith in form and substance satisfactory to the Fund to ensure prompt compliance with the
terms of this Agreement, including providing for releases of the Shares or removal of legends, subject to compliance with applicable
securities regulations, as set forth in such instructions. Such instructions will include a direction requiring the transfer agent
to deliver to each party to this Agreement upon request a report setting forth the shareholdings of each party hereto and any transfers
of such shares that may have occurred.

 

1.3 Stipulated
Preliminary Injunction. As further consideration for the releases, covenants, terms and conditions of this Settlement Agreement,
the receipt and sufficiency of which is hereby acknowledged, the Fund and the Company agree and stipulate to direct their attorneys
to file the Joint Motion and the [Proposed] Stipulated Preliminary Injunction, as an Exhibit thereto, in the form attached hereto
as Exhibit A.

 

1.4 Company
Obligations / Transfer Agent. a) Upon the Effective Date, the Company shall file and deliver such documents, instruments
and/or otherwise to increase the amount of Common Stock and take such other steps, as necessary and appropriate, in order to establish
a sufficient amount of shares and to guarantee full availability of the full amount of the Settlement Shares for conversion by
the Fund.

 

b) The
Company agrees and acknowledge that the ability of the Fund to convert and accept delivery of the Settlement Shares and sell such
Shares in a timely manner is a material obligation of this Agreement and agrees to irrevocably authorize and instruct the Company’s
Transfer Agent and such officers, directors and perform its obligations hereunder, at times relevant hereto, on behalf of and without
further action by the Fund.

 

c) The
Company agrees to deliver to its transfer agent, Corporate Stock Transfer, Inc. (hereinafter the “Transfer Agent”),
such necessary and appropriate letter(s) of instruction (hereinafter the “Letter of Instruction”), in the form attached
hereto as Exhibit B, authorizing and instructing the Transfer Agent to issue and deliver such Shares of the Company’s Common
Stock as contemplated herein, and for the conversion and issuance in the name(s) of the Fund or its designated nominee(s) as registered
holder, for the benefit of the Fund, of the securities as set forth herein.

 

1.5 Closing
Date. The closing of the transactions contemplated by this Agreement (hereinafter the “Closing”) shall occur
shall be 5:00 p.m. Eastern Standard Time, on March 13, 2019, or such other mutually agreed time as may be agreed to by the Parties.

 

1.6
Conditions to Closing. The obligation of the Fund to tender and deliver the Settlement Value in consideration and as
identified in Paragraph 1.2(b) above, is contingent upon: a) execution of this Settlement Agreement and the leak-out terms by
the Company, and the Letter of Instruction, by the Company and the Transfer Agent, as set forth herein; b) the Company’s
and the Transfer Agent’s delivery of, and the Fund’s receipt of, a fully executed Letter of Instruction, authorizing
the conversion of, in whole or in part, the Settlement Shares of the Company’s Common Stock of not less than the Minimum
Settlement Value; c) the Company’s and Transfer Agent’s immediate delivery of the Settlement Shares to the Fund, at
times and in amounts as determined by the Fund, in its sole and exclusive discretion and as indicated by Auctus’ delivery
of Notice(s) of Conversion in accordance herewith; d) compliance with the make-whole provision for the issuance of such additional
Settlement Shares of the Company’s Common Stock to satisfy the Settlement Value, as set forth herein; and e) certain representations
and warranties of the Company, including, among other things, that no material adverse change in the business of the Company and
that no Event of Default exists at the time of the closing.

 

    3

     

    

 

ARTICLE II

 

MAKE-WHOLE MINIMUM SETTLEMENT

VALUE /
CONVERSION OF SETTLEMENT SHARES

 

2.1
Make-Whole Settlement Shares. Upon sale by the Fund of the Settlement Shares as issued, conveyed and delivered to Auctus
by the Company in accordance with Paragraph 1.2 hereunder resulting in total net proceeds (net of fees, brokerage fees, transfer
agent fees, and such similar fees in the ordinary course of business) less than the Minimum Settlement Value, the Fund shall be
entitled to additional Settlement Shares of the Company’s Common Stock in accordance with this Paragraph 2.2 as follows:

 

2.2
Mechanics. At any time after the Fund shall have sold all Settlement Shares of Common Stock issued in accordance with
Paragraph 1.2 hereunder (hereinafter the “Make-Whole Eligibility Time”), Auctus may deliver a written notice to the
Company (hereinafter the “Make- Whole Eligibility Notice”, and such date, a “Make-Whole Eligibility Notice Date”)
certifying that Auctus is entitled to receive additional Shares of the Company’s Common Stock (hereinafter the “Make-Whole
Shares”) pursuant to this Paragraph 2.2. The Make-Whole Eligibility Notice shall set forth (A) the number of Make-Whole
Shares to be issued to the Fund in accordance with Paragraph 2.2(a) below, (B) the Make-Whole Consideration (as defined below)
and (C) the aggregate Make-Whole Consideration received by Auctus with respect to the Settlement Value, to date. On the Trading
Day immediately following the receipt of the Make-Whole Eligibility Notice, the Company shall deliver a written notice (hereinafter
the “Make-Whole Additional Shares Notice”) to Auctus setting forth the number of Make-Whole Shares to be delivered
on the related Make-Whole Shares Delivery Date (as defined below) (together with reasonable calculations with respect thereto).
The Company shall issue such Make-Whole Shares to the Fund on the third (3rd) Trading Day after the delivery of the Make-Whole
Additional Shares Notice (hereinafter the “Make-Whole Shares Delivery Date”). On the Make-Whole Shares Delivery Date,
the Company shall (i) (A) provide that the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program,
credit such aggregate number of Make-Whole Shares to which the Fund shall be then entitled to Auctus’ or its designee’s
balance account with DTC through its Deposit/Withdrawal at Custodian system, or (B) if the Transfer Agent is not participating
in the DTC Fast Automated Securities Transfer Program, issue and deliver on the applicable Make-Whole Shares Delivery Date, to
the address set forth in the register maintained by the Company for such purpose pursuant to this Agreement or in the Purchase
Agreements or to such address as specified by the Fund in writing to the Company at least two (2) Business Days prior to the applicable
Make-Whole Shares Delivery Date, a certificate, registered in the name of the Fund or its designee, for the number of Make-Whole
Shares to which Auctus shall be entitled. The Company shall not issue any fraction of a share of Common Stock upon any issuance
of Make-Whole Shares on any Make-Whole Shares Delivery Date. If such issuance would result in the issuance of a fraction of a
share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. In addition
to the Fund’s right to pursue any remedies available to it hereunder, at law or in equity, including, without limitation,
a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates
representing Make-Whole Shares (or to electronically deliver such Make-Whole Shares), any failure by the Company to timely deliver
Make-Whole Shares to Auctus (or its designee) on a Make-Whole Shares Delivery Date shall be subject to the provisions of Paragraph
2.2(a) above, mutatis mutandis.

 

    4

     

    

 

2.3 Calculation
of Number of Make-Whole Shares. With respect to the Make-Whole Shares Delivery Date, the number of Make-Whole Shares
issuable to the Fund shall equal the greater of (i) zero and (ii) the quotient of (1) the difference (such difference, hereinafter
the “Make- Whole Settlement Amount”) of (x) the Settlement Value with respect to each sale of Shares by Auctus after
the delivery of the Settlement Shares, as provided hereunder, minus (y) the aggregate net consideration received by the Fund from
the resale of all Shares of Common Stock issued by the Company (hereinafter the “Make-Whole Consideration”), divided
by (2) the average trailing closing price for ten (10) Trading Days for the Shares immediately preceding the Make-Whole Shares
Delivery Date. In its sole and exclusive discretion and without waiver of its rights, Auctus may limit the delivery and acceptance
of such Make-Whole Shares, from time-to-time or as may be appropriate or necessary, to a position, which is at or below 4.99% beneficial
ownership of the Company’s authorized and issued outstanding Shares.

 

2.4 Limitations
on Issuances of Make-Whole Shares. Notwithstanding anything in this Paragraphs 2.1 to 2.3 to the contrary, if as of any
given date the aggregate gross consideration received by the Fund from the sale of shares of Common Stock issued hereunder prior
to the Make- Whole Shares Delivery Date exceeds the Settlement Value, no additional Make-Whole Shares shall be issuable hereunder.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF COMPANY

 

Company’s Representations and Warranties

 

The Company hereby represents and warrants to
the Fund as follows:

 

3.1 Incorporation.
The Company is a corporation, duly organized, validly existing and in good standing under the laws of the State of Nevada, and
has full corporate power to own and operate its business. The Company is duly qualified to transact business in each jurisdiction
where its conduct of business or ownership of property requires such qualification.

 

3.2 Corporate
Power. The Company has full corporate power and authority to execute, deliver and carry out the terms of this Agreement
and to conduct its business.

 

3.3
Authorization. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby
has been duly authorized by all necessary corporate action on the part of the Company, including, without limitation, the approval
by the directors and stockholders of the Company. This Agreement constitutes the valid and binding obligation of the Company and
is enforceable in accordance with its terms.

 

    5

     

    

 

3.4 Litigation.
Other than the Litigation, there is no action, suit or proceeding pending against, or, to the knowledge of the Company, threatened
against or affecting the Company before any court or arbitrator or any governmental body, agency or official which could either
individually or collectively materially adversely affect the business, the financial condition or operations of the Company or
have any material adverse effect on the legality, validity or enforceability of this Agreement, or the delivery to the Fund of
the Settlement Shares being conveyed and transferred herein and, to the best of the Company’s knowledge, information and belief,
there is no basis for any such action, suit or proceeding.

 

3.5 No
Conflicting Agreements. There is no provision in the Articles of Organization or Bylaws of the Company and no provision
of any existing mortgage, indenture, contract, or agreement binding the Company or affecting its property, which would conflict
with or in any way prevent the execution, delivery or carrying out of the terms of this Agreement.

 

3.6 Financial
Information. There has been no material adverse change in the business, property, or financial condition of the Company
during the relevant time period preceding the date of this Agreement. During such time period, the Company has not accrued any
material liabilities or obligations (whether accrued, absolute, contingent, or otherwise) of a nature customarily reflected in
financial statements and there are no material undisclosed liabilities or obligations of the Company.

 

3.7 Business
Operations. The Company has not, during the relevant time period preceding the date of this Agreement, been known as or
used any other corporate, trade or fictitious name, nor acquired all or substantially all of the assets, capital stock or operating
units of any person or entity, nor had a business location as any address other than the address set forth herein.

 

3.8 Compliance
With Instruments. The Company is not in violation of any material term of the Company’s Articles of Organization
or Bylaws. The Company is not in material violation of any of the terms or in default under any of their contracts, obligations,
agreements, plans, arrangements, rights and commitments or of any other mortgage, indenture, contract, agreement, instrument, judgment,
decree, order, statute, rule or regulation to which they are subject and a violation of which would have a material adverse effect
on the condition, financial or otherwise, or operations of the Company.

 

3.9 Officers
and Directors. The names of the officers and directors of the Company are set forth in Schedule 3.9, attached hereto. Schedule
3.9 also set forth all indebtedness, if any, of the officers and directors to the Company. Except as set forth on Schedule 3.9,
none of the officers or directors, or their respective close relatives, or significant employees, or consultants of the Company
owns, directly or indirectly, individually or collectively, any interest in any entity which is a competitor, customer or supplier
of (or has any existing contractual relationship with) the Company.

 

    6

     

    

 

3.10 Title
and Encumbrances. The Company has good and marketable title to and a valid indefeasible ownership interest in all of its
properties and assets, free and clear of all liens, claims, encumbrances, restrictions, conditions or exceptions.

 

3.11 Capitalization.
As of the Closing, the authorized capital stock of the Company is Eight Billion (8,000,000,000) shares of voting Common Stock,
no par value per Share. As of the Closing, the Company shall have issued and outstanding Two Billion – One Hundred –
Ninety – Six Million – Eight Hundred – Eighty – Three Thousand – One Hundred – Fifty - Seven
(2,196,883,157) shares of Common Stock (representing 100% of all voting securities). Except as set forth on Schedule 3.11, attached
hereto, there are no authorized or outstanding subscriptions, warrants, options, rights (including conversion or preemptive rights),
or other agreements or instruments, orally or in writing, for the purchase or acquisition of any of the Company’s capital stock,
or pursuant to which any person or entity has or may have the right to acquire any class of capital stock or other security of
the Company.

 

3.12 Subsidiaries.
The Company does not own or control, directly or indirectly, any interest in any other corporation, association, joint venture,
partnership or other business entity.

 

3.13 Compliance
with the Law. The Company has not knowingly engaged in any activity nor omitted to take any action as a result of which
it is in, has been in, or has received any notice of, violation of any applicable statute, rule or regulation of any central or
local governmental authority, or any ordinance, order, writ, injunction or decree, or any other requirement of any governmental
body, agency, authority or court (hereinafter referred to as the “Law”) relating to the Company, its business, or its
assets, which action or omission could have a material adverse effect on its assets, business, or the transaction contemplated
in this Agreement. To the best of the Company’s knowledge, the business is presently conducted, and as of the Closing Date, will
be conducted, in compliance with all applicable laws.

 

3.14 Tax
Returns And Payments. The Company expects to file all tax returns and reports as required by law. These returns and reports,
when filed, will be true and correct in all material respects. To its knowledge, the Company has paid all taxes and other assessments
as having been due and owing.

 

3.15 Periodic
Filings and Reports. Except as set forth on Schedule 3.15, attached hereto, the Company has filed all periodic filings
and reports as required by the Commission, by law and as due to date. These periodic filings and reports are true and correct in
all material respects. To its knowledge, the Company has paid all fees and other assessments as having been due and owing.

 

3.16 Changes.
During the relevant time period preceding this Agreement, there have not been:

 

a) any
material adverse changes in the assets, liabilities, financial condition or operating results of the Company, except such changes
in the ordinary course of business which have not been, in the aggregate, materially adverse;

 

    7

     

    

 

b) any
damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting the prospects or business
of the Company (as such business is presently conducted and as it is proposed to be conducted);

 

c) any
waiver by the Company of a valuable right or of a material debt owed to it;

 

d) any
satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and which is not material to the assets, properties, financial condition, operating results or business of the
Company (as such business is presently conducted and as it is proposed to be conducted);

 

e) any
change or amendment to a material contract or arrangement by which the Company or any of its assets or properties is bound or to
which the Company or any of such assets or properties is subject;

 

f) any
change in any compensation arrangement or agreement with any officer or director, or any change exceeding ten (10%) percent of
the base salary of any other employee;

 

g) to
the best of Company’s knowledge, any change in any applicable laws, ordinances, or restrictions, or any judicial or administrative
action, which would prevent, limit, impede, or render materially more costly the operation of Company’s business;

 

h) any
declaration or payment of any dividends or any distribution upon the Shares or any capital stock of Company;

 

i) any
material indebtedness incurred for money borrowed or any other liabilities incurred, except for such payables incurred in the ordinary
course of business;

 

j) any
loans or advances to any person, other than ordinary advances for travel expenses or other reimbursable employee expenses in accordance
with the current policy of Company; or

 

k) to
the best of the Company’s knowledge, any other event or condition of any character which might materially and adversely affect
the assets, properties, financial condition, operating results or business of the Company (as such business is presently conducted,
and as it is proposed to be conducted).

 

3.17 Brokers.
The Company has not made any commitment or otherwise incurred an obligation to pay any commission to any broker or finder in
connection with the transaction provided for in this Agreement.

 

3.18 Disclosure.
No representation or warranty contained in this Agreement or any statement or information contained in any schedule, exhibit,
certificate, written statement, document or instrument, or any other information attached to, delivered or required to be delivered
pursuant to this Agreement, contains any untrue statement of material fact or omits to state a material fact necessary in order
to make the statements contained herein not misleading or necessary in order to full and fairly provide the information required
to be provided in any such document. There is no fact known to the Company that materially adversely affects the business of the
Company which has not been disclosed to the Investor in this Agreement or the schedules, exhibits or other documents delivered
pursuant to this Agreement. Copies of all documents referred to in this Agreement which have been or are to be delivered to the
Investor are true, correct and complete and include all amendments, supplements or modifications and/or waivers thereof.

 

    8

     

    

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF FUND

 

Fund’s Representations and Warranties

 

The Fund hereby represents and warrants to Company as follows:

 

4.1 Authorization. The execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby has been duly authorized by the Managers.
This Agreement constitutes the valid and binding obligation of the Fund and is enforceable against the Fund in accordance with
its terms.

 

4.2 Brokers. The Fund has
not made any commitment or otherwise incurred an obligation to pay any commission to any broker or finder in connection with the
transaction provided for in this Agreement.

 

4.3 Accredited Investor.
The Fund is an “Accredited Investor”, as that term is defined in Rule 501 of Regulation D, as promulgated under the Securities
Act.

 

4.4 Investment. The Fund
is acquiring the Shares, as provided by this Agreement, for his own account, investments purposes only, without a view to or for
resale in connection with, any distribution of such securities.

 

4.5 Sophistication. By reason
of the Fund’s knowledge and experience in financial and business matters generally, and in investments of this type in particular,
the Fund is capable of evaluating the merits and risks of any investment in the Shares, as contemplated under this Agreement.

 

ARTICLE V

 

FUND’S CONDITIONS TO CLOSING

 

5.1 Fund’s Conditions to
Closing. The Company shall use its best efforts to ensure that all conditions to the Closing set forth in this
Agreement are satisfied on or prior to the Closing Date, including executing and delivering all documents required to be
delivered by the Company at the Closing and taking any and all actions which may be necessary on its part to cause each other
party to such documents to so execute and deliver each document. The obligation of the Fund to acquire the Settlement Shares
hereunder at the Closing shall not be subject to any condition, except as set forth herein, at the Closing.

 

    9

     

    

 

5.2 Exhibits. The Company
shall have executed and delivered all of the Exhibits hereto, and the Company and the Transfer Agent shall have executed
and delivered the Letter of Instruction.

 

5.3 Officer’s Certificate.
The Company shall deliver a certificate executed by an officer of the Company and the Subsidiaries stating, among other things,
that (a) the representations and warranties contained herein are true, correct and complete in all material respects on and as
of the Closing Date and (b) the Company has performed and complied in all material respects with all agreements and conditions
contained in the documents required to be performed or complied with by it prior to or at the Closing.

 

5.4 All Proceedings to Be Satisfactory.
All corporate and other proceedings to be taken and all waivers, consents, approvals, qualifications and filings required to
be obtained or effected in connection with the execution, delivery and performance of this Agreement and the other documents and
the transactions shall have been taken, obtained or effected (except for the filing of any notice subsequent to the Closing that
may be required under applicable Federal or state securities laws, which notice shall be filed on a timely basis following the
Closing as so required), and all documents incident thereto shall be reasonably satisfactory in form and substance to the Fund.
The Fund shall have received all such originals or certified or other copies of such documents as have been reasonably requested
by it.

 

5.5 Stop Orders. No stop
order or suspension of trading shall have been imposed by the SEC or any governmental authority or SRO with respect to public trading
of the Company’s Common Stock.

 

ARTICLE VI

 

CONDITIONS TO OBLIGATIONS OF THE COMPANY AT CLOSING

 

6.1 Company’s Conditions to
Obligations at the Closing. The obligations of the Company to issue the Common Stock to the Fund pursuant to the terms
of the Notes and this Agreement shall be unconditional.

 

6.2 Compliance with Agreements.
The Fund shall have performed and complied with all agreements, covenants and conditions contained herein, in each of the other
documents and in any other documents contemplated hereby or thereby which are required by the terms hereof or thereof to be performed
or complied with by the Fund on or before the Closing Date, including acquisition of the Settlement Shares of Common Stock.

 

6.3 Representations
and Warranties. All of the representations and warranties of the Fund contained herein or in any of the other
documents to which it is a party shall be true and correct in all material respects on and as of the Closing Date, except for
those representations and warranties of the Fund that speak as of a certain date, which representations and warranties shall
have been true and correct in all material respects as of such date, both before and after giving effect to the transactions
contemplated hereby and by the other documents.

 

6.4 Exhibits. The Fund shall have executed and
delivered all of the Exhibits hereto.

 

    10

     

    

 

ARTICLE VII

 

GENERAL RELEASES

 

7.1 General Release by the Company. Subject
to the escrow provisions of Paragraph 8.4 below, the General Release, as delivered by the OCLN Releasors (as defined below)
pursuant to this Agreement and for the benefit of the Auctus Releasees (as defined below), is in the form attached hereto as
Exhibit C.

 

7.2 General Release by the Fund.
Subject to the escrow provisions of Paragraph 8.4 below, the General Release, as delivered by the Auctus Releasors (as defined
below) pursuant to this Agreement and for the benefit of the OCLN Releasees (as defined below), is in the form attached hereto
as Exhibit D.

 

ARTICLE VIII

 

MISCELLANEOUS

 

8.1 Filing of Stipulation of Dismissal
with Prejudice in Litigation. Within fifteen (15) days after the delivery of the Minimum Settlement Value to the Fund,
and the conversion of all Settlement Shares by the Fund, as set forth in Paragraph 2 above, the Parties, through counsel, will
cause a Stipulation of Dismissal with Prejudice, in the form attached hereto as Exhibit E, and with all rights of appeal waived,
to be filed in the Litigation with the U.S. District Court. As appropriate and necessary and in the absence of a breach of this
Agreement, the Parties, through counsel, will cause a Joint Motion to Extend Time, or a Joint Motion for Administrative Stay, to
be filed in the Litigation with the U.S. District Court. The Parties covenant and agree that they will instruct their counsel to
cooperate in order to extend and/or stay any litigation deadlines, and to accomplish a full and final dismissal of the Litigation
with prejudice.

 

8.2 Covenant Not to Sue. A
“covenant not to sue” is a legal term which means that a Party promises not to file a lawsuit or other legal claim
against the other Party. The Parties promise not to file a lawsuit, arbitration proceeding, administrative proceeding, or any other
legal claim against the other Party’s Releasees. It is different from the Waiver and Release of All Claims contained in the
Paragraph above. Besides waiving and releasing the claims covered by the Waiver and Release of All Claims, each Party agrees never
to sue any of the other Party’s Releasees in any court, arbitration proceeding, administrative proceeding or otherwise, for
any claim released in this Agreement. Notwithstanding this Covenant Not to Sue, either Party may bring a claim against the other
Party to enforce this Agreement, and may bring any other claim that cannot legally be waived.

 

    11

     

    

 

8.3 Nondisparagement. Each
Party on his/her/its own behalf and on behalf of their predecessors, parents, affiliates, subsidiaries, divisions,
successors and assigns, and its respective trustees, officers, directors, agents, representatives, employees, principals,
shareholders, heirs, executors, administrators, attorneys, and assigns agrees to refrain from disseminating, uttering or
publishing (including, but not limited to, written, oral, or electronic publication) any disparaging, derogatory or negative
statements, comments or remarks concerning the other Party. Each Party agrees to instruct its officers, staff and
administrative personnel to refrain from uttering or publishing (including, but not limited to, written, oral, or electronic
publication) any disparaging, derogatory or negative statements, comments, or remarks concerning the other Party.

 

8.4 Escrow / Stipulation of Dismissal
/ General Releases. a) As security for its performance of the Company under the provisions of this Agreement, the Fund
shall hold, through its designated agent, Philip M. Giordano, Esq. as escrow agent (the “Fund Escrow Agent”), the Stipulation
of Dismissal, in the forms as attached hereto. Upon certification of compliance by the Fund and the Company of this Agreement,
the Fund Escrow Agent shall be authorized to immediately release and file the Stipulation of Dismissal in the Litigation in the
U.S. District Court for the District of Massachusetts. The Fund Escrow Agent may reasonably rely, in good faith, on such notices
or may seek the court’s determination of the existence of a breach.

 

b) As security for its performance of the
Fund under the provisions of this Agreement, the Company shall hold, through its designated agent, Adam A. Rowe, Esq. as escrow
agent (the “Company Escrow Agent,” collectively, with the Fund Escrow Agent, hereinafter the “Escrow Agents”),
the General Releases, in the forms as attached hereto. Upon certification of compliance by the Fund and the Company of this Agreement,
the Company Escrow Agent shall be authorized to immediately release the General Releases to each Party. The Company Escrow Agent
may reasonably rely, in good faith, on such notices or may seek the court’s determination of the existence of a breach.

 

c) The Escrow
Agents act hereunder as a depositary only, are not taking title to the Stipulation of Dismissal or the General Releases
(hereinafter the “Escrowed Documents”), and are not responsible or liable in any manner whatsoever for any aspect
of the management, maintenance or care of the Escrowed Documents. The Escrow Agents shall not be liable for acting upon any
written notice, request, waiver, consent, receipt or other instrument or document which the Escrow Agents, in good faith,
believe to be genuine and what it purports to be. It is understood and agreed that the duties of the Escrow Agents hereunder
are purely ministerial in nature and that they shall not be liable for any error of judgment, fact or law, or any act done or
omitted to be done. The Escrow Agents’ determination as to whether an event or condition has occurred, or been met or
satisfied, or as to whether a provision of this Agreement has been complied with, or as to whether sufficient evidence of the
event or condition or compliance with the provision has been furnished to it, shall be final and binding on the Parties
hereto and shall not subject the Escrow Agents to any claim, liability or obligation whatsoever, even if it shall be found
that such determination was improper and incorrect. If, at any time either of the Escrow Agents shall receive conflicting
notices, claims, demands or instructions with respect to the Escrow Documents, he/they shall be permitted to withhold action
pending a determination by a Court of competent jurisdiction as to his/their obligations. The Escrow Agents may resign at any
time for any reason upon written notice given to the Parties of not less than ten (10) calendar days prior to its
effectiveness. The Parties agree to indemnify and hold harmless the Escrow Agents for any act, taken in good faith. Nothing
in this Agreement or in any Settlement Document precludes the Escrow Agents from representing, or continuing to represent, as
counsel to Auctus or to OCLN, respectively, and each Party expressly waive, directly and indirectly, any conflict of
interest, actual or apparent, by the Escrow Agent acting in his capacity as counsel. The Escrow Agents shall be under no
obligation to institute or defend any actions, suits or legal proceedings in connection herewith or take any other action
likely to involve him/them in expense unless first indemnified to his/their reasonable satisfaction.

 

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8.5 Voluntary and Knowing Agreement. Each Party
hereby warrants and represents that:

 

		●	It is competent, as a matter of law, to enter into this
Agreement;

 

		●	It has been advised and encouraged in writing by the other
Party to consult with an attorney before signing this Agreement;

 

		●	It has consulted with an attorney before signing this Agreement;

 

		●	It has relied on its own judgment and that of its counsel
regarding the consideration for and language of this Agreement;

 

		●	The signatories have been authorized, as necessary, to
execute this Agreement;

 

		●	It understands this document and has obtained answers to
questions which it has raised about the document; and,

 

		●	No statements made by any other Party have in any way coerced
or influenced it to execute this Agreement.

 

8.6 No Admission of Liability.
It is agreed and understood that, by entering into this Agreement, there is no admission of liability or wrongdoing by any
Party whatsoever. This Agreement arises solely from the Parties’ desire to resolve expeditiously the Purchase Agreements,
the Notes, and/or the business relationship between and among Auctus and OCLN, on mutually beneficial terms and conditions, and
to avoid any disputes or costs related thereto. The existence and execution of this Agreement shall not be considered, and shall
not be admissible, in any proceeding as an admission by either Party.

 

8.7 Termination of the Purchase Agreements,
and Satisfaction of the Notes. The Parties agree that, delivery of the Consideration of not less than the Minimum Settlement
Value, and the conversion of the entirety of the amount of the Settlement Shares, as provided herein, each Party agrees and acknowledges
that the Purchase Agreements and the Notes are, and shall be, immediately terminated, and shall have no further force and effect.
Notwithstanding anything to the contrary contained in this Settlement Agreement, if the Company breaches any of the provisions
contained in this Settlement Agreement, then Auctus, in the Fund’s sole and exclusive discretion, may take such remedial
action, in the litigation or otherwise, or may, in its sole and exclusive discretion, terminate this Settlement Agreement (with
the understanding that the Settlement Agreement shall have no further force and effect if terminated).

 

8.8 Costs and Attorneys’ Fees.
Each Party understand and agree that each Party will be solely responsible for all expenses incurred by them respectively
or on their behalf, including but not limited to their respective attorneys’ fees, costs, and disbursements pertaining to
any and all matters.

 

    13

     

    

 

8.9 Governing Law/Forum.
This Agreement shall be construed in accordance with the laws, including the law of conflicts, of the State of Nevada, without
reference to its conflicts/choice of law rules, and, where applicable, under federal law. Any controversy which may arise between
the Parties relating to this Agreement, its enforcement or otherwise shall be only brought in the federal or state courts, sitting
solely and exclusively in Boston, Suffolk County, Commonwealth of Massachusetts.

 

8.10 Entire Agreement. This
Agreement constitutes the complete understanding between and among OCLN and Auctus and supersedes all prior agreements and understandings,
oral or written, between the Parties hereto, including but not limited to the Purchase Agreements and the Notes. No other promises
or agreements, either express or implied, shall be binding unless in writing and signed by the Parties after the execution of this
Agreement.

 

8.11 Severability. Should
any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal, invalid or unenforceable
for any reason, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal, invalid
or unenforceable part, term or provision shall be deemed not to be a part of this Agreement. Upon any finding by a court of competent
jurisdiction that any of the waivers or releases contained in this Agreement are illegal, invalid or unenforceable, the Parties
agree, at the other Party’s request, to execute promptly a waiver and release of comparable scope that is legal and enforceable.

 

8.12 No Waiver. The failure
of any of the Parties to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver
or deprive such Party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

8.13 Notices. Any notice
or other communication required or permitted hereunder shall be in writing and shall be delivered personally, sent by overnight
delivery carrier of national reputation, sent by facsimile transmission (and immediately after transmission receipt of which has
been confirmed by telephone by the sender) or sent by certified, registered or express mail, postage prepaid. Any such notice shall
be deemed given when so delivered personally, sent by overnight delivery, or sent by facsimile (and immediately after receipt of
which has been confirmed by telephone by the sender) or, if mailed, when confirmation of receipt has been received, as follows:

 

(i) If to Auctus to:

 

Auctus Fund, LLC

545 Boylston Street, 2nd Floor

Boston, Massachusetts
02116 USA

 

    14

     

    

 

With copies to:

 

Philip M. Giordano, Esq.

Giordano & Company, P.C.

REED &
GIORDANO, P.A.

47 Winter Street, Suite 800

Boston, Massachusetts 02108-4774

 

(ii) If to the Company:

 

OriginClear, Inc.

Attn: T. Riggs Eckelberry, Chief Executive Officer

525 S. Hewitt
Street

Los Angeles, California 90013

 

With copies to:

 

Aaron A. Rowe, Esq.

CROWE & DUNN

77 Franklin Street, 3rd Floor

Boston, Massachusetts
02110

 

Any Party may, by notice given in accordance with this paragraph
to the other Party, designate another address or person for receipt of notices hereunder.

 

8.14 Execution. This Agreement may be executed
in multiple counterparts, each of which shall be deemed an original, but which together shall constitute one Agreement.

 

8.15 Amendment. This Agreement may not be amended
orally, but may only be amended by a written instrument signed by both Parties.

 

[REMAINDER OF THIS PAGE INTENTIONAL LEFT BLANK]

 

    15

     

    

 

THE FUND AND THE COMPANY ACKNOWLEDGE THAT THEY HAVE READ
THIS AGREEMENT, UNDERSTAND IT, AND ARE VOLUNTARILY ENTERING INTO IT.

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement
under as a sealed instrument, effective as of March 13, 2019.

 

	AUCTUS FUND, LLC	 	ORIGINCLEAR, INC.,
	 	 	 
	By:	/s/ Lou Posner	 	By:	/s/ T. Riggs Eckelberry
	 	[Name and Title]	 		[Name and Title]
	 	Lou Posner, Managing Director	 	 	T. Riggs Eckelberry CEO
	 	 	 
	Dated: 3/13/2019	 	Date: March 13, 2019

 

 

16

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