Document:

plug_Ex10_1

		
			EXHIBIT 10.1
		

		
			 
		

		
			 
		

		
			FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
		

		
			 
		

		
			THIS FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is dated as of May 6, 2020, by and among PLUG POWER INC., a Delaware corporation (“Plug Power”), EMERGENT POWER INC., a Delaware corporation (“Emergent”), EMERGING POWER INC., a Delaware corporation (“Emerging”, and individually or collectively with Plug Power and Emergent as the context may require, “Borrower”), and GENERATE PPL SPV I, LLC, as assignee of Generate Lending, LLC (the “Lender”).
		

		
			WHEREAS, Borrower and Lender are parties to a Loan and Security Agreement dated as of March 29, 2019 (as amended by the First Amendment to Loan and Security Agreement, dated as of March 29, 2019, the Second Amendment to Loan and Security Agreement, dated as of August 6, 2019, the Third Amendment to Loan and Security Agreement, dated as of September 6, 2019, the Fourth Amendment to Loan and Security Agreement, dated as of November 27, 2019, the Limited Consent to Loan and Security Agreement, dated as of April 6, 2020, and as further amended, restated, amended and restated, supplemented or otherwise modified from time to time,  including by this Amendment, the “Loan Agreement”), pursuant to which Lender has made a term loan facility available to Borrower; and
		

		
			WHEREAS, Borrower and Lender have agreed to modify certain provisions of the Loan Agreement as more particularly set forth in this Amendment, including to establish a new Incremental Term Loan Commitment.
		

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

		
			1.    Capitalized Terms; Effective Date.  Capitalized terms used in this Amendment which are not otherwise defined herein shall have the meanings assigned thereto in the Loan Agreement, as modified by this Amendment.  Except as expressly provided to the contrary herein, all modifications to the Loan Agreement set forth herein shall be effective as of the date of this Amendment.
		

		
			2.    Amendments.  The Loan Agreement, including the Recitals thereto, is hereby amended as follows:
		

		
			a.         Section 1.1 is hereby amended by adding the following new defined terms in appropriate alphabetical order:
		

		
			“‘Additional Incremental Advance Date’ has the meaning assigned to such term in the Fifth Amendment.”
		

		
			“‘Additional Incremental Term Loan’ has the meaning assigned to such term in the Fifth Amendment.”
		

		
			“‘Electronic Signature’ means an electronic sound, symbol or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.”
		

		
			“‘Fifth Amendment’ means that certain Fifth Amendment to Loan and Security Agreement, dated as of May 6, 2020, by and among Borrower and Lender.”
		

		
			

		 

		

		
			“‘Fifth Amendment Effective Date’ has the meaning assigned to such term in the Fifth Amendment.”
		

		
			b.         Section 1.1 is hereby amended by deleting the definition of “Incremental Closing Fee” appearing therein and substituting in lieu thereof the following new definition to read in its entirety as follows:
		

		
			“‘Incremental Closing Fee’ means, (x) with respect to any Incremental Term Loan funded prior to the Fifth Amendment Effective Date, a sum equal to one percent (1.00%) times the applicable Incremental Term Loan Commitment, and (y) with respect to any Incremental Term Loan funded on and after the Fifth Amendment Effective Date, a sum equal to two percent (2.00%) times the applicable Incremental Term Loan Commitment.”
		

		
			c.         Section 1.1 is hereby amended by deleting the definition of “Term Loan Interest Rate” appearing therein and substituting in lieu thereof the following new definition to read in its entirety as follows:
		

		
			“‘Term Loan Interest Rate’ means, (a) at all times prior to the Fifth Amendment Effective Date, 12.00% per annum, and (b) at all times on and after the Fifth Amendment Effective Date, 9.50% per annum.”
		

		
			d.         Section 1.1 is hereby amended by deleting the definition of “Term Loan Maturity Date” appearing therein and substituting in lieu thereof the following new definition to read in its entirety as follows:
		

		
			“‘Term Loan Maturity Date’ means October 31, 2025, or such later date as Lender may agree in its sole discretion in writing.”
		

		
			e.         Section 2.1(a) of the Loan Agreement is hereby amended by deleting such clause (a) in its entirety and substituting in lieu thereof the following new clause (a) to read in its entirety as follows:
		

		
			“(a)      Advances. Subject to the terms and conditions of this Agreement, (i) on the Closing Date, Lender will make a single Advance in the amount of Eighty-Five Million and No/100 Dollars ($85,000,000.00) and (ii) on the Secondary Closing Date, Lender will make a single Advance in the amount of Fifteen Million and No/100 Dollars ($15,000,000.00); provided that, as a condition to the advance made on the Secondary Closing Date, Borrower shall have paid to Lender the Secondary Closing Date Closing Fee.  Borrower shall have no right to reborrow any amount repaid or prepaid with respect to any Term Loan;  provided,  that, Borrower shall be entitled to request and borrow Incremental Term Loans in accordance with Section 2.7.” 
		

		
			f.          Section 2.1(e) of the Loan Agreement is hereby amended by deleting such clause (e) in its entirety and substituting in lieu thereof the following new clause (e) to read in its entirety as follows:
		

		
			“(e)      Resizing of Loans; Amortization Schedule.  From and after the Fifth Amendment Effective Date, the Amortization Schedule shall be Schedule 2.1(d)(iii) as attached to the Fifth Amendment.”
		

		
			g.         Section 2.4(b) of the Loan Agreement is hereby amended by deleting such clause (b) in its entirety and substituting in lieu thereof the following new clause (b) to read in its entirety as follows:
		

		
			

		 

		

		
			“(b)     At any time on or after August 1, 2019, at its option upon at least one (1) Business Day prior written notice to Lender from Lead Borrower, Borrower may prepay in whole or in part the outstanding Term Loans by paying the entire outstanding principal balance (or a portion thereof) and all accrued and unpaid interest thereon, and, if applicable, a prepayment charge equal to (i) if such prepayment occurs at any time during the period beginning on February 1, 2020 through and including January 31, 2021, five percent (5.0%) of the amount of Term Loans being prepaid, (ii) if such prepayment occurs at any time during the period beginning on February 1, 2021 through and including January 31, 2022, four percent (4.0%) of the amount of Term Loans being prepaid, (iii) if such prepayment occurs at any time during the period beginning on February 1, 2022 through and including January 31, 2023, three percent (3.0%) of the amount of Term Loans being prepaid, (iv) if such prepayment occurs at any time during the period beginning on February 1, 2023 through and including January 31, 2024,  two percent (2.0%) of the amount of Term Loans being prepaid, and (v) if such prepayment occurs at any time on or after February 1, 2024, one percent (1.0%) of the amount of Term Loans being prepaid (any such charge specified in clause (i), (ii), (iii) or (iv), a “Prepayment Charge”).  Borrower shall not be obligated to pay a Prepayment Charge (and no Prepayment Charge will be due) with respect to (x) any Term Loan that is repaid with amounts released from a Project Restricted Account or (y) any prepayment required pursuant to Section 2.1(e) or permitted pursuant to Section 7.22.  Borrower agrees that the Prepayment Charge is a reasonable calculation of Lender’s lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early repayment of the Advances.  Notwithstanding the foregoing, Lender agrees to waive the Prepayment Charge if Lender (in its sole, absolute and unfettered discretion) agrees in writing to refinance the Term Loans prior to the Term Loan Maturity Date.”
		

		
			h.         Section 2.7(a)(i) of the Loan Agreement is hereby amended by deleting the reference to “One Hundred Million and No/100 Dollars ($100,000,000.00)” appearing therein and substituting in lieu thereof “Two Hundred Twenty Million and No/100 Dollars ($220,000,000.00)”.
		

		
			i.          Section 2.8 of the Loan Agreement is hereby amended by deleting such section in its entirety and substituting in lieu thereof the following new Section 2.8 to read in its entirety as follows:
		

		
			“2.8       [Reserved.]”
		

		
			j.          The Loan Agreement is amended to add thereto a new Section 11.19 in appropriate numerical order to read in its entirety as follows:
		

		
			“11.19  Electronic Signatures.  The words ‘execution’, ‘signed’, ‘signature’, ‘delivery’ and words of like import in or relating to any document to be signed in connection with this Agreement or any other Loan Document and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar State laws based on the Uniform Electronic Transactions Act; provided,  that nothing herein shall require any Person to accept electronic signatures in any form or format without its prior written consent.  Without limiting the generality of the foregoing, the parties hereto hereby (a) agree that, for all purposes, including in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among Lender and Borrower, electronic images of this Agreement or any other Loan Document (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity and enforceability 

		 

as any paper original, and (b) waive any argument, defense or right to contest the validity or enforceability of the Loan Documents based solely on the lack of paper original copies of any Loan Documents, including with respect to any signature pages thereto.”
		

		
			k.         Schedule 2.1(d)(iii) of the Loan Agreement is hereby restated in its entirety as set forth in Schedule 2.1(d)(iii) hereto.
		

		
			3.    Incremental Term Loan Commitment.
		

		
			a.    Lender hereby agrees to make, 
		

		
			i.  on the Fifth Amendment Effective Date, an Incremental Term Loan to Borrower in an aggregate principal amount of Fifty Million and No/100 Dollars ($50,000,000.00) (the “Primary Incremental Advance”), and 
		

		
			ii.          from time to time, and subject to the limitations set forth in set forth in Section 2.7 of the Loan Agreement, on an Additional Incremental Advance Date, an additional Incremental Term Loan (each, an “Additional Incremental Term Loan”) to Borrower in an aggregate principal amount of not less than Ten Million and No/100 Dollars ($10,000,000); provided,  that, the aggregate principal amount of all Additional Incremental Term Loans shall not exceed Fifty Million and No/100 Dollars ($50,000,000.00);  provided,  that,  that Lead Borrower’s delivery of an Advance Request in connection with any Additional Incremental Term Loan shall be deemed a certification by the Chief Financial Officer of Lead Borrower, solely in his capacity as Chief Financial Officer of Lead Borrower, and not in any individual capacity, and without personal liability, in the name and on behalf of Lead Borrower that, as of the applicable Additional Incremental Advance Date, all conditions set forth in each of Section 2.7(a) and Section 4 of the Loan Agreement have been satisfied with respect to such Additional Incremental Term Loan.  Borrower and Lender hereby agree that the certification set forth herein is intended to fulfill, and once such Advance Request is executed and delivered by the Chief Financial Officer of Lead Borrower does fulfill, the requirement set forth in Section 2.7(c)(ii) with respect to each Additional Incremental Term Loan.
		

		
			b.    In each case, such Incremental Term Loans shall be on the terms set forth herein and in the Loan Agreement (as amended hereby), and subject to the conditions set forth herein and therein.  Each of the Primary Incremental Advance and each Additional Incremental Term Loan is, and shall be deemed to be, an “Incremental Term Loan” and a “Term Loan”  for all purposes of the Loan Documents having terms and conditions as set forth in the Loan Documents (including but not limited to this Amendment), as amended hereby, identical to those applicable to the Term Loans outstanding immediately prior to the Fifth Amendment Effective Date.
		

		
			4.    Conditions to Effectiveness.  This Amendment, including Lender’s commitment to make the Primary Incremental Advance, shall become effective upon the prior or concurrent satisfaction of each of the conditions specified below (such date, the “Fifth Amendment Effective Date”):
		

		
			a.    Borrower and Lender shall have each received one or more counterparts of this Amendment, duly executed, completed and delivered by Borrower and Lender;
		

		
			b.    Lead Borrower shall have delivered to Lender, (1) a Note evidencing the Incremental Term Loans described herein, issued by the Borrower, (2) an Advance Request, duly executed by Lead 

		 

Borrower’s Chief Executive Officer or Chief Financial Officer, and (3) a Disbursement Authorization Letter, executed by the Borrower and including all appropriate attachments thereto;  
		

		
			c.    Lender shall have received an executed secretary’s certificate from Borrower, attaching and certifying as to (i) certified copies of resolutions of Borrower’s board of directors or other governing body evidencing approval of the aggregate Incremental Term Loan Commitment, (ii) certified copies of the Certificate of Incorporation and the Bylaws, as amended through the date hereof, of Borrower, (iii) a certificate of good standing for Borrower from its state of incorporation and similar certificates from all other jurisdictions in which it does business and where the failure to be qualified would have a Material Adverse Effect, and (iv) incumbency; 
		

		
			d.    Lender shall have received a legal opinion from Borrower’s counsel in form and substance satisfactory to Lender;
		

		
			e.    At the time of and immediately after giving effect to this Amendment, the representations and warranties of Borrower set forth in this Amendment and the other Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date;
		

		
			f.     At the time of and immediately after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing or shall be caused by the transactions contemplated by this Amendment; and
		

		
			g.    Borrower shall have paid (i) Lender the Incremental Closing Fee applicable to the Primary Incremental Advance, in an amount of $1,000,000.00, which amount shall be paid to Lender in immediately available funds, and which fee shall be fully earned as of the date hereof and non-refundable, and (ii) all other fees and expenses of Lender in connection with the negotiation, preparation, execution and delivery of this Amendment and the Loan Document (including, without limitation, the fees and expenses of counsel to Lender).
		

		
			5.    Conditions to Additional Incremental Term Loans.  The obligation of Lender to make any Additional Incremental Term Loan is subject to the prior or concurrent satisfaction of each of the conditions specified below (each such date, an  “Additional Incremental Advance Date”): 
		

		
			a.    Borrower and Lender shall have mutually agreed that Lender shall make such Additional Incremental Term Loan on such date;
		

		
			b.    Lead Borrower shall have delivered to Lender, (1) an Advance Request, duly executed by Lead Borrower’s Chief Executive Officer or Chief Financial Officer, and (2) a Disbursement Authorization Letter, executed by the Borrower and including all appropriate attachments thereto; 
		

		
			c.    At the time of and immediately after giving effect to such Additional Incremental Term Loan,  the representations and warranties of Borrower set forth in this Amendment and the other Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date;
		

		
			

		 

		

		
			d.    At the time of and immediately after giving effect to such Additional Incremental Term Loan, no Default or Event of Default shall have occurred and be continuing or shall be caused by the making of such Additional Incremental Term Loan; and
		

		
			e.    Borrower shall have paid Lender the Incremental Closing Fee applicable to such Additional Incremental Term Loan, which amount shall be paid to Lender in immediately available funds, and which fee shall be fully earned as of the applicable Additional Incremental Advance Date and non-refundable.
		

		
			6.    Certification of Lead Borrower.  On behalf of the Lead Borrower, the undersigned, solely in his capacity as Chief Financial Officer of Lead Borrower, and not in any individual capacity, and without personal liability, hereby certifies in the name and on behalf of Lead Borrower that, as of the date hereof all conditions set forth in each of Section 2.7(a) and Section 4 of the Loan Agreement have been satisfied with respect to the Primary Incremental Advance.    Borrower and Lender hereby agree that the certification set forth in this Section 5 is intended to fulfill, and once this Amendment is executed and delivered by the undersigned does fulfill, the requirement set forth in Section 2.7(c)(ii) with respect to the Primary Incremental Advance.
		

		
			7.    No Other Modifications; Reaffirmation by the Borrower.  Except as expressly modified hereby, the terms of the Loan Agreement shall remain in full force and effect in all respects, and Borrower hereby reaffirms its obligations under the Loan Agreement, as modified by this Amendment, and under each of the other Loan Documents to which it is a party.
		

		
			8.    References.  All references in the Loan Agreement to “this Agreement,” “herein,” “hereunder” or other words of similar import, and all references to the Loan Agreement in the other Loan Documents,  or any other document or instrument that refers to the Loan Agreement, shall be deemed to be references to the Loan Agreement as amended by this Amendment.
		

		
			9.    Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS.
		

		
			10.  Counterparts; Electronic Delivery.  This Amendment may be executed in one or more counterparts (all counterparts together reflecting the signature of all parties) each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  Delivery by any party to this Amendment of its signatures hereon through facsimile or other electronic image file (including .pdf) (i) may be relied upon as if this Amendment were physically delivered with an original hand-written signature of such party, and (ii) shall be binding on such party for all purposes.
		

		
			11.  Successors.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
		

		
			12.  Final Agreements.  This Amendment represents the final agreement of Borrower and Lender with respect to the subject matter hereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous written or oral agreements of Borrower and Lender.
		

		
			[Remainder of page intentionally blank; signature pages follow.]
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			IN WITNESS WHEREOF,  Borrower and Lender have caused this Amendment to be duly executed by their duly authorized officers, under seal, all as of the date first above written.
		

			
					
						 

					
						 

					
						 

					
						 

					
						 

					
						   Paul B. Middleton

					
						     Chief Financial Officer

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						   Paul B. Middleton

					
						     Treasurer

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						   Paul B. Middleton

					
						     Treasurer

					
						 

					
						 

					
						 

					
						 

					
						 

					
					
						 

				
	
					
						 

					
					
						BORROWER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PLUG POWER INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

				
	
					
						 

					
					
						Name:   Paul B. Middleton

				
	
					
						 

					
					
						Title:     Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EMERGING POWER INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

				
	
					
						 

					
					
						Name:   Paul B. Middleton

				
	
					
						 

					
					
						Title:     Treasurer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EMERGENT POWER INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

				
	
					
						 

					
					
						Name:   Paul B. Middleton

				
	
					
						 

					
					
						Title:     Treasurer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			[Signatures continue on following page.]
		

		
			 
		

		
			
		

		

		 

		

			FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

		

		

			SIGNATURE PAGE

		

	
					
						

					
						 

					
					
						 

					
						 

				
	
					
						 

					
					
						LENDER:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GENERATE PPL SPV I, LLC

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:   Matan Friedman

				
	
					
						 

					
					
						Title:     Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

		

		

			SIGNATURE PAGE

		

		

			 

		

		

		
			Schedule 2.1(d)(iii):  Amortization Schedule
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						March 31, 2019

					
					
						100,000,000 

				
	
					
						June 30, 2019

					
					
						100,000,000 

				
	
					
						September 30, 2019

					
					
						98,534,277 

				
	
					
						December 31, 2019

					
					
						114,637,565 

				
	
					
						March 31, 2020

					
					
						110,539,519 

				
	
					
						June 30, 2020

					
					
						144,957,662 

				
	
					
						September 30, 2020

					
					
						138,328,102 

				
	
					
						December 31, 2020

					
					
						125,686,991 

				
	
					
						March 31, 2021

					
					
						116,026,482 

				
	
					
						June 30, 2021

					
					
						107,215,594 

				
	
					
						September 30, 2021

					
					
						101,247,890 

				
	
					
						December 31, 2021

					
					
						89,300,680 

				
	
					
						March 31, 2022

					
					
						78,419,071 

				
	
					
						June 30, 2022

					
					
						67,863,700 

				
	
					
						September 30, 2022

					
					
						61,748,416 

				
	
					
						December 31, 2022

					
					
						51,477,792 

				
	
					
						March 31, 2023

					
					
						42,937,617 

				
	
					
						June 30, 2023

					
					
						34,379,696 

				
	
					
						September 30, 2023

					
					
						28,049,687 

				
	
					
						December 31, 2023

					
					
						16,863,087 

				
	
					
						March 31, 2024

					
					
						9,086,014 

				
	
					
						June 30, 2024

					
					
						0  

				
	
					
						September 30, 2024

					
					
						0  

				
	
					
						December 31, 2024

					
					
						0  

				
	
					
						March 31, 2025

					
					
						0  

				
	
					
						June 30, 2025

					
					
						0  

				
	
					
						September 30, 2025

					
					
						0  

				
	
					
						December 31, 2025

					
					
						0ASSET PURCHASE AGREEMENT

This
Asset Purchase Agreement (this "Agreement") dated as of April 30, 2020 (the “Effective Date”),
is entered into by and among Rocky Mountain Productions, Inc., a Nevada corporation, ("Purchaser"), and RAW
PHARMA, LLC, a Utah limited liability company and Jesse McMullin (collectively “Seller”).

Whereas,
Seller desires to sell to Purchaser, and Purchaser desires to purchase from Seller, all of Seller’s assets relating to
and used in Seller’s business (the “Business”), upon the terms and subject to the conditions of this Agreement.

Now,
Therefore, in consideration of the foregoing and the representations, warranties, covenants and agreements set
forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereby agree as follows:

		
	

                                                                                I.

                                                                                 

                                                                                PURCHASE AND SALE OF ACQUIRED ASSETS

                                                                                 

Purchase and Sale. (a) On the terms
and subject to the conditions of this Agreement, at the Closing, Seller shall sell, assign, transfer, convey and deliver to Purchaser,
and Purchaser shall purchase from Seller, all the right, title and interest of Seller in, to and under the Acquired Assets (as
hereinafter defined), for a total purchase price (the “Purchase
Price”) to be paid as follows:

 

		a.	$250,000 in cash, to be paid to Seller on or before August 15, 2020, an additional $500,000 in cash on or before November 30,
2020, and in addition to the above, $750,000 in 8 consecutive monthly installments of $85,000 each, beginning May 8, 2020, then
June 15, 2020, then a like payment on the 15th day of each month thereafter, with a final 9th payment on
January 15, 2021 being $70,000. The remaining $250,000 shall be paid on or before March 1, 2021.

 

		b.	27,000,000 shares of validly issued, fully paid, non-assessable shares of Rocky Mountain High Brands, Inc.’s
common stock to be issued on the effective date of the asset purchase. Rocky Mountain High Brands, Inc. is traded on the OTC Markets
as RMHB. These shares shall be restricted shares under Rule 144 of the Securities Act and shall be subject thereto. The shares
shall be valued using the closing share price for the Purchaser’s
common stock on the effective date of the asset sale. The shares shall be issued to individuals or entities in accordance with
written instructions by Jesse McMullin to be delivered to David M. Seeberger on or before close of business May 4, 2020.

 

		c.	Purchaser’s assumption of
and refinancing in Purchaser’s name or paying off, on or before
December 31, 2020 of Seller’s Chase Bank loans or debts, as
directed by Seller, on the equipment, with an approximate payoff of $1,007,000. Beginning on June 15, 2020, Purchaser shall pay
to Seller $20,000.00 per month for leasing said equipment from Seller and such payments shall immediately cease upon the refinance
or payoff of said Chase Bank loan. Seller shall receive all depreciation associated with and/or attributed to the equipment. Purchaser
shall not sell, assign, or otherwise transfer any of the Acquired Assets without prior written permission of Seller, until the
entire Purchase Price is paid in full to Seller.

 

    	 		 

    	 

    

 

		d.	Purchaser’s assumption, or re-leasing, of Raw Pharma Capital,
LLC’s sublease agreement for the premises located at 1000 Shiloh
Rd., Suite 200, Plano Texas, and assumption of the leases currently in place for the operation of the Business, including but not
limited to CO2, gas (for forklifts), and such.

 

		e.	Until the entire Purchase Price is paid in full, and all other obligations of this Agreement have been satisfied, Purchaser
grants unto Seller, and Seller retains, a first priority security interest of all assets of Purchaser. Purchaser authorizes the
filing of financing statements necessary to perfect Seller's security interest, and Purchaser shall otherwise cooperate with Seller
on any steps necessary to perfect Seller’s security interest.

		f.	Until the entire Purchase Price is paid in full, and all other obligations of this Agreement have been satisfied, the assets
currently located at 1000 Shiloh Rd Suite 150 and 200 Plano Texas will not be relocated or removed without the written consent
of Seller, and if Purchaser fails to timely cure a default after notice, seller may access said assets at sellers sole discretion.
Purchaser will not challenge such access if Purchaser does not cure, and such access by Seller shall not be trespassing.

		g.	Purchaser shall employ Mark Clark and Paul Dawson for not less than three months at a gross salary of $10,000.00 per month
each, with the salary of Mark Clark to be “against commissions”
of the greater of 5% of his monthly gross sales, or $10,000 per month; whatever is produced/charged by Purchaser (the “Transaction”)
for which Mark Clark is involved with any work product for the completion of a customer’s
order, then 5% of that Transaction will be credited to the aggregate of Mark Clark’s
production for that month. Mark Clark and Paul Dawson will be issued 100,000 shares each of validly issued, fully paid, non-assessable
shares of Rocky Mountain High Brands, Inc.’s common stock to
be issued on the effective date of the asset purchase. Rocky Mountain High Brands, Inc. is traded on the OTC Markets as RMHB. These
shares shall be restricted shares under Rule 144 of the Securities Act and shall be subject thereto. The shares shall be valued
using the closing share price for the Purchaser’s common stock
on the effective date of the asset sale.

 

I.1.The
purchase and sale of the Acquired Assets is referred to in this Agreement as the “Acquisition.” THIS IS AN ASSET
PURCHASE ONLY AND NO LIABILITIES OF SELLER ARE BEING ASSUMED BY PURCHASER.

I.2. Acquired
Assets.

(a)               
The term “Acquired Assets” means all of the assets of Seller of any nature whatsoever, including but
not limited to the following assets of Seller:

(i)All of those
assets set forth in Exhibit “A” attached hereto;

(ii)       All
procedures relating to the operation of the Business;

(iii)All
general intangibles relating or associated with the operation of the Business; and

(iv)       All
goodwill generated by, and associated with, the Business.

    	 	2	 

    	 

    

 

		
	

                                                                                II.

                                                                                 

                                                                                THE CLOSING

                                                                                 

II.1. Closing
Date. The closing of the Acquisition (the “Closing”) shall take place on or before April 30, 2020, or at
such other date as may be agreed upon in writing by Seller and Purchaser. The date on which the Closing occurs is referred to in
this Agreement as the “Closing Date”. The Closing may also be effectuated with the exchange of closing documents
by facsimile or electronic mail and delivery of Purchaser’s shares.

II.2. Transactions
To Be Effected at the Closing. At the Closing:

(a)               
Seller shall execute and deliver, if appropriate, to Purchaser the following:

(i)A Bill of
Sale and Assignment in the form attached hereto as Exhibit “B”;

(ii)        such
other documents as Purchaser or its counsel may reasonably request to demonstrate satisfaction of the conditions and compliance
with the covenants set forth in this Agreement.

(b)              
Purchaser shall deliver to Seller the following:

(i)the Purchase
Price as described in Section 1.1 hereof;

(ii)        such
other documents as Seller or its counsel may reasonably request to demonstrate satisfaction of the conditions and compliance with
the covenants set forth in this Agreement. 

III.

 

		
	

                                                                                REPRESENTATIONS
AND WARRANTIES 

Seller represents
and warrants to Purchaser as follows:

III.1.
Organization, Standing and Power. Seller is a Utah limited liability company, duly organized, validly existing and in good
standing under the laws of the State of Utah and has full corporate power and authority and possesses all governmental franchises,
licenses, permits, authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets
and to carry on the Business as presently conducted.

III.2.
Authority; Execution and Delivery; Enforceability. Seller has full power and authority to execute this Agreement and to
consummate the Acquisition and the other transactions contemplated hereby. The execution and delivery by Seller of this Agreement
and the consummation by Seller of the Acquisition and the other transactions contemplated hereby and thereby have been duly authorized
by all necessary action by Seller's shareholders. This Agreement constitutes a legal, valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms.

    	 	3	 

    	 

    

 

III.3.
No Conflicts; Consents. To Seller's knowledge, the execution and delivery by Seller of this Agreement do not (a) conflict
with, (b) result in any violation of or default under, (c) give rise to (i) a right of termination, cancellation or acceleration
of any obligation under, (ii) a loss of a material benefit under or (iii) increased, additional, accelerated or guaranteed rights
or entitlements of any person under, or (d) result in the creation of any Lien upon any of the properties or assets of Seller under
any provision of the certificate or articles of incorporation and by-laws of Seller. No consent, approval, license, permit, order
or authorization (“Consent”) of, or registration, declaration or filing with, any third party or any Federal,
state, local or foreign government or any court of competent jurisdiction, administrative agency or commission or other governmental
authority or instrumentality, domestic or foreign (a “Governmental Entity”) is required to be obtained or made
by or with respect to Seller in connection with the execution, delivery and performance of this Agreement or the consummation of
the Acquisition.

III.4.
Sufficiency of Acquired Assets. The Acquired Assets constitute all of the assets that are employed by Seller in connection
with the Business. The Acquired Assets are sufficient for the conduct of the Business immediately following the Closing in substantially
the same manner as currently conducted.

III.5.
Proceedings. There are no pending suits, actions or proceedings (collectively, “Proceedings” and each,
a “Proceeding”) or claims arising out of the conduct of the Business or against or affecting any Acquired Asset.
Seller is not a party or subject to or in default under any judgment applicable to the conduct of the Business or any Acquired
Asset. There is not any Proceeding or claim by Seller pending, or which Seller intends to initiate, against any other Person arising
out of the conduct of the Business. To the knowledge of Seller, there is no pending or threatened investigation of or affecting
the conduct of the Business or any Acquired Asset.

III.6.
Absence of Changes or Events. Seller has caused the Business to be conducted in the ordinary course and in substantially
the same manner as previously conducted and has made all reasonable efforts consistent with past practices to preserve the relationships
of the Business with customers, suppliers and others with whom the Business deals.

III.7.
Compliance with Applicable Laws. Seller has not received any written or oral communication from a Governmental Entity that
alleges that the Business is not in compliance in any material respect with any applicable laws, regulations, ordinances and the
like (“Applicable Laws”). Seller has not received any written notice that any investigation or review by any
Governmental Entity with respect to any Acquired Asset or the Business is pending or that any such investigation or review is contemplated.

III.8.
Effect of Transaction. No vendor, customer, supplier, employee, client, creditor, or other person having a business relationship
with the Business has informed Seller that such person intends to change such relationship because of the Acquisition or the consummation
of any other transaction contemplated hereby.

III.9.
Disclosure. No representation or warranty of Seller contained in this Agreement, and no statement contained in any document,
certificate, Exhibit or Schedule furnished or to be furnished by or on behalf of Seller to Purchaser or any of Purchaser’s
representatives pursuant to this Agreement, contains or will contain any untrue statement of a material fact, or omits or will
omit to state any material fact necessary, in light of the circumstances under which it was or will be made, in order to make
the statements herein or therein not misleading or necessary in order to fully and fairly provide the information required to
be provided in any such document, certificate, Exhibit or Schedule.

    	 	4	 

    	 

    

 

Purchaser represents
and warrants to Seller as follows:

III.10.
Organization, Standing and Power. Purchaser is duly organized, validly existing and in good standing under the laws of the
jurisdiction in which it is organized and has full corporate power and authority and possesses all governmental franchises, licenses,
permits, authorizations and approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to carry
on its business as presently conducted.

III.11.Authority;
Execution and Delivery; Enforceability. Purchaser has full power and authority to execute this Agreement and to consummate
the Acquisition and the other transactions contemplated hereby and thereby. The execution and delivery by Purchaser of this Agreement
and the consummation by Purchaser of the Acquisition and the other transactions contemplated hereby and thereby will on or before
the Closing Date, be duly authorized by all necessary corporate action. Purchaser has duly executed and delivered this Agreement,
and this Agreement constitutes, the legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance
with its terms.

III.12.
No Conflicts; Consents. The execution and delivery by Purchaser of this Agreement do not conflict with any contract to which
Purchaser is a party. No consent of or registration, declaration or filing with any third party or any Governmental Entity is required
to be obtained or made by or with respect to Purchaser in connection with the execution, delivery and performance of this Agreement
or the consummation of the Acquisition or the other transactions contemplated hereby and thereby.

III.13.
No Superior Liens. As of the date of this Agreement, and as of the Closing Date, there do not exist any prior liens or security
interests to which Seller's security interest (provided for in Article I(e)) would be or become subordinate.

IV.

		
	

COVENANTS

 

IV.1.
Covenants of Seller Relating to Conduct of Business.

(a)               
Except as otherwise expressly permitted by the terms of this Agreement, from the date hereof to the Closing, Seller shall
conduct the Business in the ordinary course in substantially the same manner as presently conducted and shall make all reasonable
efforts consistent with past practices to preserve the relationships of the Business with all vendors, customers, suppliers and
other persons with whom the Business deals. Prior to the Closing, Seller shall not take any action that would, or that could reasonably
be expected to, result in any of the conditions to the purchase and sale of the Acquired Assets set forth herein not being satisfied.
In addition, prior to the Closing and except as otherwise expressly permitted by the terms of this Agreement, Seller shall not
take any significant action or make any significant decision with respect to the Business without the prior written consent of
Purchaser.

    	 	5	 

    	 

    

 

IV.2. Reasonable
Efforts.

(a)               
On the terms and subject to the conditions of this Agreement, each party shall use its reasonable efforts to cause the Closing
to occur as provided in Section 2.1 as soon as practicable following the satisfaction or waiver of the conditions precedent
set forth herein, including taking all reasonable actions necessary to comply promptly with all legal requirements that may be
imposed on it with respect to the Closing.

IV.3. Post-Closing
Cooperation.

(a)               
Purchaser and Seller shall cooperate with each other, and shall cause their officers, employees, agents, auditors and representatives
to cooperate with each other after the Closing to ensure the orderly transition of the Business from Seller to Purchaser and to
minimize any disruption to the Business that might result from the transactions contemplated hereby. After the Closing, upon reasonable
written notice, Purchaser and Seller shall furnish or cause to be furnished to each other and their employees, counsel, auditors
and representatives access, during normal business hours, to such information and assistance (to the extent within the control
of such party) relating to the Business as is reasonably necessary for financial reporting and accounting matters.

Section 4.5
Further Assurances. From time to time, as and when requested by any party, each party, without expense to such party, shall
execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken,
all such further or other actions, as such other party may reasonably deem necessary or desirable to consummate the transactions
contemplated by this Agreement, including, in the case of Seller, executing and delivering to Purchaser such assignments, deeds,
bills of sale, consents and other instruments as Purchaser or its counsel may reasonably request as necessary or desirable for
such purpose.

V.

		
	

CONDITIONS PRECEDENT

V.1. Conditions
to Obligations of Purchaser. The obligation of Purchaser to complete the Acquisition is subject to the satisfaction (or waiver
by Purchaser) on or prior to the Closing Date of the following conditions:

(a)               
Representations and Warranties. The representations and warranties of Seller made in this Agreement shall be true
and correct.

(b)              
Performance of Obligations of Seller. Seller shall have performed or complied in all material respects with all
obligations and covenants required by this Agreement to be performed or complied with by Seller by the time of the Closing.

    	 	6	 

    	 

    

 

(c)               
Absence of Proceedings. There shall not be pending or threatened by any Governmental Entity any Proceedings (or by
any other person any Proceedings that has a reasonable likelihood of success), challenging or seeking in any respect to restrain
or prohibit the Acquisition or any other transaction contemplated by this Agreement.

(d)              
Consents. Seller shall have received written consents from all persons necessary or appropriate to effect the Acquisition.

V.2. Conditions
to the Obligations of Seller. The obligation of Seller to complete the Acquisition is subject to the satisfaction (or waiver
by Seller) on or prior to the Closing Date of the following conditions:

(a)               
Representations and Warranties. The representations and warranties of Purchaser made in this Agreement shall be true
and correct.

(b)              
Performance of Obligations of Purchaser. Purchaser shall have performed or complied in all material respects with
all obligations and covenants required by this Agreement to be performed or complied with by Purchaser by the time of the Closing.

	VI.

		TERMINATION, AMENDMENT AND WAIVER

 

VI.1. Termination.

(a)               
Notwithstanding anything to the contrary in this Agreement, this Agreement may be terminated and the Acquisition and the
other transactions contemplated by this Agreement abandoned at any time prior to the Closing Date:

(i)by mutual
written consent of Purchaser and Seller;

(ii)by Seller
if (i) Purchaser breaches or fails to perform or comply with any of its material covenants or agreements contained herein, or breaches
its representations and warranties in any material respect, (ii) Seller has notified Purchaser in writing of the breach, and (iii)
the breach is incapable of being cured or has continued without cure for a period of ten calendar (10) days after the notice of
breach.

VI.2. Effect
of Termination. If this Agreement is terminated and the transactions contemplated hereby are abandoned as described herein,
this Agreement shall become null and void and of no further force and effect.

VI.3.
Amendments and Waivers. This Agreement may not be amended except by an instrument in writing signed on behalf of each of
the parties hereto.

    	 	7	 

    	 

    

 

VII.

			

INDEMNIFICATION

VII.1.
Indemnification by Seller. Seller shall indemnify Purchaser and its affiliates and each of their respective officers, directors,
partners, members, managers, employees, stockholders, agents and representatives against, and hold them harmless from, any loss,
liability, obligations, claim, damage or expense (including reasonable legal fees and expenses) (“Losses”),
as incurred (payable within thirty (30) days after receipt of a written request), for or on account of, or arising from or in connection
with or otherwise in respect of:

(a)               
any breach of any representation or warranty of Seller that survives the Closing contained in this Agreement; or

(b)              
any breach of any covenant of Seller contained in this Agreement.

VII.2.
Indemnification by Purchaser. Purchaser shall indemnify Seller and its officers, directors, shareholders, employees, agents
and representatives against, and agrees to hold them harmless from, any Losses, as incurred (payable promptly upon written request),
for or on account of, or arising from or in connection with or otherwise with respect of:

(a)               
any breach of any representation, warranty of Purchaser contained in this Agreement; or

(b)              
any breach of any covenant of Purchaser contained in this Agreement.

(c)               
any claims of James Gang, Eagle Manufacturing Solutions, Inc., Eagle Processing & Distribution, Inc. or any other entity
related to any of the foregoing.

VIII.

			

GENERAL PROVISIONS

 

VIII.1.
Assignment. This Agreement and the rights and obligations hereunder shall not be assignable or transferable by Seller without
the prior written consent of Purchaser. Purchaser may assign this Agreement to an entity controlled by Purchaser by providing written
notice to Seller.

VIII.2.
No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted assigns and
nothing herein expressed or implied shall give or be construed to give to any person, other than the parties hereto and such assigns,
any legal or equitable rights hereunder.

VIII.3. Notices.
All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent by facsimile or sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service
and shall be deemed given when so delivered by hand or facsimile, or if mailed, three days after mailing (one business day in
the case of express mail or overnight courier service), as follows:

    	 	8	 

    	 

    

 

To the Seller:

 

	Raw
    Pharma,LLC
	1000 Shiloh
    Rd.
	Plano TX
    75074
	 

 

 

To the Purchaser:

 

	Rocky Mountain Productions, Inc.
	Attn: David M. Seeberger
	9101 LBJ Freeway, Suite 200
	Dallas, TX 75243

 

 

VIII.4.
Interpretation; Exhibits and Schedules; Certain Definitions.

(a)               
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and
made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Schedule or Exhibit but not otherwise
defined therein, shall have the meaning as defined in this Agreement. When a reference is made in this Agreement to a Section,
Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated.

(b)              
For all purposes hereof:

“affiliate”
of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such first person, and, in the case of Seller, shall be deemed to include the shareholders of
Seller.

“including”
means including, without limitation.

“person”
means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Entity or other
entity.

VIII.5.
Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the
same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered
to the other parties.

    	 	9	 

    	 

    

 

VIII.6.
Entire Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect
to the subject matter hereof and supersede all prior agreements and understandings relating to such subject matter. No party shall
be liable or bound to any other party in any manner by any representations, warranties or covenants relating to such subject matter
except as specifically set forth herein.

VIII.7.
Severability. If any provision of this Agreement (or any portion thereof) or the application of any such provision (or any
portion thereof) to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof (or the remaining portion
thereof) or the application of such provision to any other persons or circumstances.

VIII.8.
Consent to Jurisdiction. Purchaser and Seller irrevocably submit to the exclusive jurisdiction of the courts of the State
of Texas, County of Collin, for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction
contemplated hereby.

VIII.9. Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Texas applicable
to agreements made and to be performed entirely within such State, without regard to the conflicts of law principles of such State.

Section 9.10Seller’s
Knowledge. For purposes of this Agreement, “Seller’s knowledge” shall mean the actual knowledge, upon reasonable
investigation or inquiry, of the Seller.

Article VIIII

Pricing for Rhino
Rush, 3GS, LLC or Rush Beverage

Section 1.0 Preferred Pricing.
 Rhino Rush 3GS, LLC or Rush Beverage (“Rush”) will have much of its product made with Purchaser. Pricing for Rush’s
products will be as follows: Shot pricing: the greater of $.30 per finished individual shot; or, ingredient and packaging
materials, supplied by Purchaser, (from Rush approved vendors) plus $.15 tolling, packed out as instructed by Rush, with a 3-pallet
minimum. Can Pricing: the greater of $.37 per finished individual can; or ingredient and packaging materials, supplied by
Purchaser, (from Rush approved vendors) plus $.11 tolling, packed out as instructed by Rush, with a 3-pallet minimum. (Example:
ingredient cost $.07, Packaging costs $.05, tolling costs $.11 for a total project cost of $.23 but the quoted price of $.37 is
greater, then Rush’s cost would be $.37). All finished goods will be delivered to Rush no longer than twenty (20) calendar
days from date purchase order is sent electronically by Rush to Purchaser, and the payment for each purchase order will be made
within forty-five (45) days of products delivery. Payments made after forty-five (45) days will begin accruing interest at a rate
of eighteen-percent (18%) per year.

 

    	 	10	 

    	 

    

 

Section 1.1 Product delivery.
Finished cans or shots will be considered “delivered” on the date that the completed order is ready for pick-up at
Purchaser’s warehouse. If there is storage space available at Purchaser’s warehouse, then Rush may elect to have finished
product stored at said warehouse for a fee of $4 per pallet per month. Components, parts, ingredients, packaging or otherwise for
Rush’s products will be stored at no cost.

Section 2.0 Wholesale. Rush
is currently working with a number of clients for the wholesale of hand sanitizer. Rush will be allowed to continue contract negotiations
with: Target, Walmart, Costco, H-E-B, Kroger and other distributors/customers unencumbered. Pricing will be mutually agreed upon
on an ongoing basis as needed, with all reasonable efforts being made by both parties to work together for the best of Rush’s
customer. When available, a 50/50 split will be used as a standard where all revenue above Cost of Goods Sold (pricing of components,
shipping, and testing) will be split between Rush and Purchaser.

Section 3.0 Building Access. Rush
or Seller will be granted unrestricted access to any location where Rush’s ingredients, packaging, or finished product are
being stored as well as unrestricted access to 1000 Shiloh Rd Suite: 200 Plano Texas. Rush may choose to occupy one (1) office
in the 1000 Shiloh Rd Suite: 200 Plano, Texas address, and said office will be of Rush’s sole discretion. Conference room
may be used by Rush, should it not conflict with Purchaser. Purchaser may choose to charge a rent for said Rush occupied office,
however rent will not to exceed $800.00 per month and payment is due to the Purchaser the first Monday of each month.

 

(Signature page
follows)

    	 	11	 

    	 

    

 

 

IN WITNESS WHEREOF,
this Agreement has been executed effective the date and place first written above.

 

SELLER: RAW
PHARMA, LLC

 

 

 

By: /s/ Jesse McMullin 

Jesse McMullin - Member

 

 

 

PURCHASER: Rocky
Mountain Productions, Inc.

 

 

 

By: /s/ Charles Smith

Charles Smith - C.E.O.

 

    	 	12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00308-of-00352.parquet"}]]