Document:

Exhibit

Execution Version

AMENDMENT NO. 6 TO CREDIT AGREEMENT
This Amendment No. 6 to Credit Agreement, dated as of November 21, 2019 (this “Amendment”), by and among each of the lenders party hereto, Greatbatch Ltd., a New York corporation (the “Borrower”), Integer Holdings Corporation (f/k/a Greatbatch, Inc.), a Delaware corporation (“Parent”), Manufacturers and Traders Trust Company, as the administrative agent under the Credit Agreement referred to below (in such capacity, the “Administrative Agent”) and Credit Suisse Loan Funding LLC (in such capacity, the “Arranger”). Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Credit Agreement after giving effect to this Amendment.

WHEREAS, reference is hereby made to that certain Credit Agreement, dated as of October 27, 2015 (as modified pursuant to that certain Consent of Lenders, dated as of February 9, 2016 and that certain Memorandum of Correction, dated as of April 19, 2016, as amended by that certain Amendment No. 1 to Credit Agreement, dated as of November 29, 2016, as further amended by that certain Second Amendment to Credit Agreement dated as of March 17, 2017, as further amended by that certain Third Amendment to Credit Agreement dated as of November 7, 2017, as further amended by that certain Amendment No. 4 to Credit Agreement, dated as of June 8, 2018, as further amended by that certain Amendment No. 5 to Credit Agreement, dated as of November 21, 2019, and as further amended, restated, supplemented or otherwise modified and as in effect immediately prior to the Sixth Amendment Effective Date (as defined below), the “Credit Agreement”), among, inter alios, the Borrower, Parent, the Administrative Agent and each Lender from time to time party thereto (capitalized terms used but not defined herein having the meaning provided in the Credit Agreement); 

WHEREAS, the Borrower and Parent have requested that certain amendments and modifications to the Credit Agreement be effected, including to permit the refinancing of all outstanding Term B Loans as contemplated by Section 2.19.1 of the Credit Agreement as described herein;

WHEREAS, subject to certain conditions, such amendments and modifications shall include the addition of a new term loan facility (the “New Term B Facility”; the loans thereunder, the “New Term B Loans”) the proceeds of which New Term B Loans shall be used to replace the outstanding Term B Loans;
WHEREAS, the New Term B Loans will have the same terms as the Term B Loans currently outstanding under the Credit Agreement except as otherwise set forth herein;
WHEREAS, each existing Term B Lender (each, an “Existing Term B Lender” and the existing Term B Loans held by it, its “Existing Term B Loans”) that executes and delivers a signature page to the “Lender New Commitment” posted to Existing Term B Lenders concurrently with this Amendment (the “Lender New Commitment”), and in connection therewith agrees to continue all or a portion (as determined by the Arranger and notified to such Lender) of its outstanding Existing Term B Loans as New Term B Loans (such continued Term B Loans, the “Continued Term B Loans” and such Term B Lenders, collectively, the “Continuing Term B Lenders”) will thereby (i) agree to the terms of and to become a party to this Amendment and (ii) agree to continue all or such portion (as determined by the Arranger and notified to such Lender) of its Existing Term B Loans outstanding on the Sixth Amendment Effective Date as New Term B Loans in a principal amount equal to the aggregate outstanding principal amount of such Existing Term B Loans so continued;
WHEREAS, each Person (other than a Continuing Term B Lender in its capacity as such and in the amount of its Continued Term B Loans) that agrees to make New Term B Loans (collectively, the “Additional Term B Lenders”) by executing and delivering a signature page to this Agreement will make 

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New Term B Loans to the Borrower on the Sixth Amendment Effective Date in such amount (not in excess of its commitment) as determined by the Arranger and notified to such Additional Term B Lender;  
WHEREAS, the Continuing Term B Lenders and the Additional Term B Lenders (collectively, the “New Term B Lenders”) are severally willing to continue all or a portion (as determined by the Arranger and notified to such Lender) of their Existing Term B Loans as New Term B Loans and/or to make New Term B Loans, as the case may be, subject to the terms and conditions set forth in this Amendment;
WHEREAS, notwithstanding the foregoing, any Existing Term B Lender that does not become a Continuing Term B Lender as contemplated hereby shall not otherwise be permitted to become an Additional Term B Lender or a Continuing Term B Lender, unless approved by the Administrative Agent; 
WHEREAS, the Borrower wishes to make certain other modifications to the Credit Agreement with respect to the Term A Loans and RC Facility, requiring the consent of the Majority Lenders, and which modifications have been agreed to by the Lenders party to the Fifth Amendment, and the Lenders party to the Fifth Amendment together with the New Term Loan B Lenders constitute the Majority Lenders; and
WHEREAS, the New Term B Lenders and the Administrative Agent are willing to agree to this Amendment on the terms set forth herein.
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:
		
	SECTION I.
	    NEW TERM LOANS

A.    Subject to the terms and conditions set forth herein, (i) each Continuing Term B Lender agrees to continue all or a portion (as determined by the Arranger and notified to such Lender) of its Existing Term B Loans as a New Term B Loan on the date requested by the Borrower to be the Sixth Amendment Effective Date in a principal amount equal to such Existing Term B Loans and (ii) each Additional Term B Lender agrees to make New Term B Loans on such date to the Borrower in a principal amount equal to such Additional Term B Lender’s New Term B Loan Commitment (as defined below).  For purposes hereof, a Person may become a party to the Credit Agreement as amended hereby and become a New Term B Lender as of the Sixth Amendment Effective Date by executing this Amendment or the Lender New Commitment, as applicable, and delivering to the Administrative Agent, on or prior to the Sixth Amendment Effective Date, a counterpart signature page to this Amendment or the Lender New Commitment, as applicable, in its capacity as a New Term B Lender.  The Borrower shall give notice to the Administrative Agent of the proposed Sixth Amendment Effective Date not later than one Business Day prior thereto, and the Administrative Agent shall notify each New Term B Lender thereof.  For the avoidance of doubt, the Existing Term B Loans of a Continuing Term B Lender must be continued in whole and may not be continued in part unless approved or otherwise determined by the Administrative Agent.
B.    Each Additional Term B Lender will make its New Term B Loan on the Sixth Amendment Effective Date by making available to the Administrative Agent, in accordance with the Credit Agreement, an amount equal to its New Term B Loan Commitment.  The “New Term B Loan Commitment” of any Additional Term B Lender will be such amount (not exceeding any commitment offered by such Additional Term B Lender) allocated to it by the Arranger and notified to it and the Administrative Agent on or prior to the Sixth Amendment Effective Date.  The commitments of the Additional Term B Lenders and the 

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continuation undertakings of the Continuing Term B Lenders are several and no such Lender will be responsible for any other such Lender’s failure to make or acquire by continuation its New Term B Loan.  The New Term B Loans may from time to time be Base Rate Loans or LIBOR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with the Credit Agreement.  Each New Term B Lender, as to itself, hereby agrees to waive any indemnity claim for breakage costs under Section 2.8.5 of the Credit Agreement in connection with the prepayment or replacement of Existing Term B Loans contemplated hereby.
C.    The obligation of each New Term B Lender to make or acquire by continuation New Term B Loans on the Sixth Amendment Effective Date is subject to the satisfaction of the conditions set forth in Section III of this Amendment. 
D.    On and after the Sixth Amendment Effective Date, each reference in the Loan Documents to “Term B Loans” shall be deemed a reference to the New Term B Loans contemplated hereby, except as the context may otherwise require, each reference to “Term B Lenders” shall be deemed a reference to the New Term B Lenders.  Notwithstanding the foregoing, the provisions of the Credit Agreement with respect to indemnification, reimbursement of costs and expenses, increased costs and break funding payments shall continue in full force and effect with respect to, and for the benefit of, each Existing Term B Lender in respect of such Lender’s Existing Term B Loans.
E.    The principal of the New Term B Loans shall be due and payable in quarterly installments, each equal to one-quarter of one percent (0.250%) on each Quarterly Payment Date commencing on December 31, 2019 and continuing through (and including) the last Quarterly Payment Date prior to the Term B Loan Maturity Date, in each case, calculated as a percentage of the original principal amount  of New Term B Loans on the Sixth Amendment Effective Date subject to adjustment pursuant to the terms of the Credit Agreement as amended by this Amendment); provided that each New Term B Lender hereby acknowledges and agrees that the Borrower has prepaid, prior to the date hereof, all amounts due pursuant to this paragraph. All amounts of principal, interest and fees relating to Refinancing Loans not due and payable before the Term B Loan Maturity Date are due and payable on the Term B Loan Maturity Date. 
F.    The final maturity date of the New Term B Loans shall be the Term B Loan Maturity Date.
G.    The continuation of Continued Term B Loans may be implemented pursuant to other procedures specified by the Administrative Agent and the Arranger (in consultation with the Borrower), including by repayment of Continued Term B Loans of a Continuing Term B Lender on the Sixth Amendment Effective Date from the proceeds of New Term B Loans followed by a subsequent assignment to it of New Term B Loans in the same amount and each Continuing Term B Lender hereby agrees to execute such other documentation as may be required to evidence such Continuing Term B Lender’s New Term B Loan Commitment. 
		
	SECTION II.
	    AMENDMENTS TO CREDIT AGREEMENT

		
	2.1
	Amendments to Section 1:  Definitions.

A.    Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions in proper alphabetical sequence:
“Additional Term B Lender” shall have the meaning set forth in the Sixth Amendment. 
“Continuing Term B Lenders” shall have the meaning set forth in the Sixth Amendment.

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“Sixth Amendment” shall mean that certain Amendment No. 6 to Credit Agreement dated as of November 21, 2019 among the Borrower, Parent, the other Loan Parties party thereto, the Administrative Agent, and the Lenders party thereto.
“Sixth Amendment Effective Date” shall mean November 21, 2019, the date on which the conditions precedent set forth in Section III of the Sixth Amendment were satisfied or waived in accordance therewith. 
“Non-Continuing Term B Lender” shall mean any Existing Term B Lender (as defined in the Sixth Amendment) which is not a Continuing Term B Lender.
B.    The definition of “Term B Lender” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
““Term B Lender”: each Lender that is a party to the Sixth Amendment in respect of a Term B Loan Commitment and each successor and assign thereof.  Each Additional Term B Lender shall be a Term B Lender to the extent any such Person has executed the Sixth Amendment and to the extent such Sixth Amendment shall have become effective in accordance with the terms hereof and thereof, and each Continuing Term B Lender shall continue to be a Term B Lender.  The Term B Lenders as of the Sixth Amendment Effective Date shall be as set forth in the Register at the time the Register is updated and/or modified to reflect and give effect to the Sixth Amendment and the transactions contemplated thereby.”
		
	2.2
	Amendments to Section 2.1.4: Commitment to make Term B Loans.

Section 2.1.4 of the Credit Agreement is hereby amended and restated in its entirety as follows:
“Upon the terms and subject to the conditions of this Agreement and the Sixth Amendment, each Term B Lender agrees to make advances, including, as applicable, its obligation under the Second Amendment to continue its outstanding “Existing Term B Loans” as “Continued Term B Loans” as such terms are defined in the Second Amendment (such advances, together with any Incremental Term B Loans, the “Term B Loans”) to the Borrower on the Sixth Amendment Effective Date in an aggregate outstanding principal amount not to exceed Five Hundred Sixty Three Million, Two Hundred Eighty Five Thousand, Nine Hundred Thirty Seven Dollars and Fifty cents ($563,285,937.50) (as the same may be increased or reduced, pursuant to the terms of this Agreement, the “Term B Loan Commitment”); provided, however, that the amount and percentage of the Term B Loan Commitment that any Lender is obligated to lend shall not exceed the amount or percentage set forth on Schedule 2.1.4 for such Term B Lender (as supplemented and amended by giving effect to the assignments contemplated by this Agreement and any other adjustments contemplated by this Agreement). The Term B Loan Commitment of any Term B Lender is sometimes referred to herein as such Term B Lender’s Term B Loan Commitment. The Borrower shall not be permitted to reborrow any amount of the Term B Loans once repaid”.
		
	2.3
	Amendments to Section 2.1.7: Scheduled Repayment of Term B Loans.

Section 2.1.7 of the Credit Agreement is hereby amended and restated in its entirety as follows”

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“The principal of the Term B Loans shall be due and payable in quarterly installments, each equal to one-quarter of one percent (0.250%) on each Quarterly Payment commencing on December 31, 2019 continuing through (and including) the last Quarterly Payment Date prior to the Term B Loan Maturity Date thereafter, in each case, calculated as a percentage of the original principal amount subject to adjustment pursuant to the terms of this Agreement); provided that each Term B Lender hereby acknowledges and agrees that the Borrower has prepaid, prior to the Sixth Amendment Effective Date, all amounts due pursuant to this paragraph. All amounts of principal, interest and fees relating to Refinancing Loans not due and payable before the Term B Loan Maturity Date are due and payable on the Term B Loan Maturity Date.”
		
	2.4
	Amendments to Section 2.7.3: Repricing Event

Section 2.7.3 of the Credit Agreement is hereby amended and restated in its entirety as follows:
“If any Repricing Event occurs on or prior to the date that is six months after the Sixth Amendment Effective Date, the Borrower agrees to pay to the Administrative Agent, for the ratable account of each Term B Lender holding Term B Loans that are subject to such Repricing Event (including any Term B Lender that is replaced pursuant to Section 2.14.2 (Replacement of Lenders) as a result of its refusal to consent to an amendment giving rise to such Repricing Event), a fee in an amount equal to one percent (1.00%) of the aggregate principal amount of the Term B Loans subject to such Repricing Event. Such fees shall be earned, due and payable upon the date of occurrence of the respective Repricing Event.”
		
	2.5
	Amendments to Section 2.8.2:  Applicable Margin.

A.    Section 2.8.2(a)(i) of the Credit Agreement is hereby amended and restated in its entirety as follows: 
(i)    For Term B Loans prior to the Sixth Amendment Effective Date, two percent (2.00%) and on and after the Sixth Amendment Effective Date, one and one-half percent (1.50%). 
B.    Section 2.8.2(b)(i) of the Credit Agreement is hereby amended and restated in its entirety as follows:
(i)    For Term B Loans prior to the Sixth Amendment Effective Date, three percent (3.00%) and on and after the Sixth Amendment Effective Date, two and one-half percent (2.50%). 
		
	2.6
	Amendments to Schedule 2.1.4.

Schedule 2.1.4 of the Credit Agreement is hereby amended and restated in its entirety as set forth in Schedule 2.6 to this Amendment. 
		
	2.7
	LIBOR Replacement.   

A.    Section 1.1 (Defined Terms) of the Credit Agreement shall be amended to add the following definitions in their correct alphabetical order:

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Benchmark Replacement: the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to LIBOR for Dollar-denominated syndicated credit facilities, and (b) the Benchmark Replacement Adjustment; provided, that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.
Benchmark Replacement Adjustment: with respect to any replacement of LIBOR with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), that has been selected by the Administrative Agent and the Borrower, giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.
Benchmark Replacement Conforming Changes: with respect to any Benchmark Replacement, any technical, administrative or operational changes (including, without limitation, changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).
Benchmark Replacement Date: the earlier to occur of the following events with respect to LIBOR:
(1)     in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein, and (b) the date on which the administrator of LIBOR permanently or indefinitely ceases to provide LIBOR; or

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(2)     in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.
Benchmark Transition Event: the occurrence of one or more of the following events with respect to LIBOR:
(1)     a public statement or publication of information by or on behalf of the administrator of LIBOR announcing that such administrator has ceased or will cease to provide LIBOR, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR;
(2)     a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for LIBOR, a resolution authority with jurisdiction over the administrator for LIBOR or a court or an entity with similar insolvency or resolution authority over the administrator for LIBOR, which states that the administrator of LIBOR has ceased or will cease to provide LIBOR permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; or
(3)     a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR announcing that LIBOR is no longer representative.
Benchmark Transition Start Date: (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 180th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 180 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent, by notice to the Borrower and the Lenders.
Benchmark Unavailability Period:  if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to LIBOR and solely to the extent that LIBOR has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced LIBOR for all purposes hereunder in accordance with Section 2.9.7 (Effect of Benchmark Transition Event) and (y) ending at the time that a Benchmark Replacement has replaced LIBOR for all purposes hereunder pursuant to Section 2.9.7 (Effect of Benchmark Transition Event).
Early Opt-in Election:  the occurrence of:

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(1)    (i) a determination by the Administrative Agent, or (ii) a notification by the Majority Lenders to the Administrative Agent (with a copy to the Borrower) that the Majority Lenders have determined, that other similarly-situated Dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 2.9.7 (Effect of Benchmark Transition Event), are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace LIBOR, and
(2)     the election by the Administrative Agent and the Majority Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders.
Federal Reserve Bank of New York’s Website:  the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.
Relevant Governmental Body:  the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.
SOFR: with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.
Term SOFR:  the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
Unadjusted Benchmark Replacement:  the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
B.    A new Section 1.3 of the Credit Agreement is hereby added after Section 1.2 of the Credit Agreement, which shall read as follows:
1.3        DISCLOSURE REGARDING THE AVAILABILITY OF LIBOR.  The Borrower acknowledges and understands that (i) (USD) LIBOR is established, issued and regulated by third parties, and that its continuing existence and ongoing viability as a source and basis for establishing contractual interest rates is entirely outside the control of the Administrative Agent (ii) regulatory agencies in the United States and worldwide have advised that LIBOR may be discontinued after 2021, or possibly sooner, (iii) in order to address the possibility of LIBOR discontinuance, the terms of any proposed loan(s) referenced herein may include provisions (modeled after recommendations issued by the Federal Reserve’s Alternative Reference Rates Committee, or otherwise) that contemplate the replacement of LIBOR as a basis for establishing the applicable interest rate for such loans, and (iv) should the actual discontinuance of LIBOR occur, any replacement index may be materially different than LIBOR, and necessitate substantive changes (arising from such differences) to the manner in which the applicable interest rate 

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for the proposed loan(s) is calculated and applied.  Notwithstanding the above, the Borrower has knowingly and voluntarily requested and/or accepted a LIBOR pricing proposal from the Administrative Agent, accepting any inherent risks associated with the utilization and any subsequent discontinuance of LIBOR, and hereby waives any claims or defenses against the Administrative Agent in connection therewith.  
C.    A new Section 2.9.7 of the Credit Agreement is hereby added after Section 2.9.6 of the Credit Agreement, which shall read as follows:
2.9.7        Effect of Benchmark Transition Event.  
(a) Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace LIBOR with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted (or otherwise made available) such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Majority Lenders.  Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Majority Lenders have delivered to the Administrative Agent written notice that such Majority Lenders accept such amendment. No replacement of LIBOR with a Benchmark Replacement pursuant to this Section 2.9.7 will occur prior to the applicable Benchmark Transition Start Date.  Borrower shall pay all out-of-pocket costs (including reasonable attorney fees) incurred by the Administrative Agent in connection with any amendment and related actions contemplated in this Section 2.9.7.
(b) Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. Administrative Agent shall not be liable to any party hereto for any Benchmark Replacement Conforming Changes it makes in good faith.
(c)  Notices; Standards for Decisions and Determinations. The Administrative Agent will endeavor to promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 2.9.7, including, without limitation, any 

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determination with respect to a tenor, rate or adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action, will be conclusive and binding on all parties hereto absent manifest error, and may be made in its or their sole discretion and without consent from any other party hereto (except, in each case, as expressly required pursuant to this Section 2.9.7) and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such claims being hereby waived individually by each party hereto.  
(d) Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke (as applicable) any request for a Borrowing of, conversion to, or continuation of LIBOR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request (as applicable) into a request for a Borrowing of or conversion to a loan that shall accrue interest at the Base Rate plus the Applicable Margin. During any Benchmark Unavailability Period, the component of Base Rate based upon LIBOR will not be used in any determination of the Base Rate.
		
	2.8
	Change in Fiscal Year End.

A.    Section 5.15 (Fiscal Year) of the Credit Agreement shall be amended and restated in its entirety as follows:
5.15    FISCAL YEAR.  The fiscal year of Parent and its Subsidiaries ends on December 31, and the first, second and third fiscal quarters within each such fiscal year end on the Friday closest to the end of March, June and September, respectively.
B.    Section 8.16 (Maintenance of Records; Fiscal Year) of the Credit Agreement shall be amended and restated in its entirety as follows:
8.16    MAINTENANCE OF RECORDS; FISCAL YEAR.  Parent shall, and shall cause each of its Subsidiaries to, keep at all times books of record and account in which full, true and correct (in each case in all material respects) entries shall be made of all dealings or transactions in relation to its business and affairs.  Parent shall, and shall cause each of its Subsidiaries to, keep its books of account and financial statements in accordance with GAAP and to report on the basis of a fiscal year ending on December 31 (with the first, second and third fiscal quarters within each such fiscal year ending on the Friday closest to the end of March, June and September, respectively).
		
	2.9
	Earn-Outs.  

A.    Section 1.1 (Defined Terms) of the Credit Agreement shall be amended to add the following definition in its correct alphabetical order
Earn-Out Obligations:  all obligations of any Loan Party consisting of earn-outs related to the performance of an entity, or a division or line of business, acquired in connection with a Permitted Acquisition; provided, that such obligations shall be calculated in accordance with GAAP.

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B.    Section 8.1.1 (In General) of the Credit Agreement shall be amended by deleting the word “and” at the end of clause (q) thereof, replacing the period with “; and” at the end of clause (r) thereof and adding the following new clause (s): 
(s)    so long as no Default or Event of Default shall have occurred and be continuing immediately before and after giving effect to the incurrence thereof, Earn-Out Obligations in an aggregate amount not to exceed at any time outstanding $50,000,000.
		
	2.10
	Customer Vendor Financing Programs.

A.    Section 1.1 (Defined Terms) of the Credit Agreement shall be amended to add the following definitions in their correct alphabetical order:
Permitted Vendor Financing Disposition:  a transaction between the Borrower and/or one or more of its Subsidiaries, on the one hand, and an unaffiliated third party (“Receivables Counterparty”) on the other hand with respect to certain receivables due from a customer (and/or Affiliates of such customer) (with respect to each such customer and/or its Affiliates, the “Applicable Customer Receivables”) whereby (1) the Borrower and/or its Subsidiaries sells the Applicable Customer Receivables to the Receivables Counterparty in exchange for cash, (2) the cash received on the sale is unencumbered or, as required by the Loan Documents, subject to a Lien in favor of the Administrative Agent, (3) other than with respect to customary representations as to ownership and validity of the receivables and the nature of the sale as a “true sale” (but specifically excluding representations as to the creditworthiness of the customer or the collectability of the subject receivables), the sale is non-recourse to the Loan Parties and their Subsidiaries and (4) the Receivables Counterparty collects all proceeds of such sold Applicable Customer Receivables directly from the applicable customer.
Receivables Transaction Amount: the cash purchase price paid by the Receivables Counterparty in connection with its purchase of Applicable Customer Receivables.
B.    Section 8.7.2 (Sales and Other Dispositions) of the Credit Agreement shall be amended by deleting the word “and” at the end of clause (i) thereof, replacing the period with “; and” at the end of clause (j) thereof and adding the following new clause (k):
(k) Permitted Vendor Financing Dispositions so long as the aggregate Receivables Transaction Amount in any calendar month shall not exceed $100,000,000.
C.    The first sentence of Section 2.1.9(c) (Mandatory Prepayments) of the Credit Agreement shall be amended in its entirety to read as follows: 
At any time that Parent or any of its Subsidiaries sells, transfers or otherwise disposes of any of its assets or property (other than dispositions permitted under clauses (a), (b), (c), (d), (f), (g), (h), (j) and (k) of Subsection 8.7.2 (Sales and Other Dispositions) or contemplated by clause (b) above), the Borrower shall promptly prepay such amount of the Loans as is equal to the net cash proceeds of such disposition.

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D.    Section 11.16.3 (Partial Release of Security) of the Credit Agreement shall be amended to add the following sentence after the last sentence thereof:
Without limiting the foregoing, each Lender authorizes the Administrative Agent to execute any lien release or other document reasonably customary for the sale of receivables in connection with a Permitted Vendor Financing Disposition.
		
	2.11
	Integer Supply Chain Payables Programs.  

A.    The definition of “Banking Services” and “Secured Obligations” in Section 1.1 (Defined Terms) of the Credit Agreement shall be amended and restated in their entirety as follows:
Banking Services:  each and any of the following bank services provided to any Loan Party by the Administrative Agent, a Lender, the Issuing Bank or an Affiliate of the foregoing:  (a) commercial credit cards and purchasing cards, (b) stored value cards, (c) treasury and/or cash management services (including controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services) and (d) supply chain financing services including, without limitation, accounts payable settlement services or trade payable financing programs; provided, that the Borrower and any such bank services provider shall have designated such bank services as “Banking Services” in writing to the Administrative Agent, which designation, in the case of any such Affiliate, shall contain an acknowledgement by such Affiliate of the exculpatory and indemnification provisions herein in favor of the Administrative Agent.
Secured Obligations:  collectively, (a) the Obligations, (b) any Banking Services Obligations and (c) obligations of any Loan Party under or arising out of Swap Agreements with any Swap Party (including the Swap Obligations identified in Schedule 5.26(b)) from time to time but excluding Excluded Swap Obligations; provided, however, that the amount of Secured Obligations that consist of Banking Services Obligations arising in connection with subsection (d) of the definition of Banking Services shall be limited to $30,000,000 outstanding at any one time.  
		
	SECTION III.
	    CONDITIONS TO EFFECTIVENESS

This Amendment shall become effective only upon, and the obligation of the New Term B Lenders shall be subject to, the satisfaction or waiver of all of the following conditions precedent (the date of satisfaction or waiver of such conditions being referred to herein as the “Sixth Amendment Effective Date”):
A.    Borrowing Notice. The Administrative Agent shall have received a duly completed borrowing notice for the New Term B Loans.
B.    Execution.  The Administrative Agent shall have received (i) a counterpart signature page of this Amendment duly executed by each Loan Party and a counterpart signature page of this Amendment and the Lender New Commitment, as applicable, duly executed by each New Term B Lender and (ii) with respect to the amendments set forth in Section 2.7 through 2.11 above only, the executed Fifth Amendment which shall have become effective in accordance with the terms thereof prior to or substantially concurrently with the Sixth Amendment Effective Date.

12

C.    Opinion. The Administrative Agent shall have received a written opinion (addressed to the Administrative Agent and the Lenders and dated the Sixth Amendment Effective Date) of Hodgson Russ LLP, counsel to the Borrower and the other Loan Parties in form and substance reasonably satisfactory to the Administrative Agent.  Each Loan Party hereby requests Hodgson Russ LLP to deliver such opinion.
D.    Fees, Interest and Expenses.  (i) Each of the Administrative Agent and Arranger shall have received all fees, premium (if any) and other amounts accrued (whether or not otherwise due and payable on or prior to the Sixth Amendment Effective Date) including, reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel) required to be reimbursed or paid by any Loan Party under any Loan Document, and including, without limitation, any amounts previously agreed in writing by the Arranger (or any of its affiliates) and the Borrower and (ii) the entire aggregate principal amount of the Term B Loans outstanding immediately prior to the Sixth Amendment Effective Date and all accrued interest, fees, premiums and other amounts (including any amounts pursuant to Section 11.14) in connection therewith shall have been (or shall be deemed to have been) repaid in full in a manner reasonably satisfactory to the Administrative Agent and all Interest Periods in respect of thereof shall have been terminated.
E.    Refinancing Term Notice. The Administrative Agent shall have received a Refinancing Term Notice in accordance with Section 2.19.1 of the Credit Agreement.
F.    Secretary’s Certificate. The Administrative Agent shall have received such resolutions, certificates of good standing, other certificates of Responsible Officers of the Borrower and Parent and such other documentation as the Administrative Agent shall reasonably request.
G.    Officer’s Certificate.  The Administrative Agent shall have received a certificate of a financial officer of the Borrower dated the Sixth Amendment Effective Date certifying that (A) the representations and warranties set forth in Section IV of this Amendment shall be true and correct in all respects (or in all material respects if any such representation or warranty is not by its terms already qualified as to materiality) as of the Sixth Amendment Effective Date as if made on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all respects (or in all material respects if any such representation or warranty is not by its terms already qualified as to materiality) as of such earlier date and (B) no Default or Event of Default shall have occurred and be continuing.
H.    Beneficial Ownership Certification.  The Administrative Agent and the New Term B Lenders shall have received at least three business days prior to the Sixth Amendment Effective Date, a certification regarding beneficial ownership in relation to the Borrower as required by 31 C.F.R. § 1010.230.
Notwithstanding any other provisions of this Amendment to the contrary, the Administrative Agent may appoint a fronting lender to act as the sole Additional Term B Lender for purposes of facilitating funding on the Sixth Amendment Effective Date.  Accordingly, any signature page hereto submitted by or on behalf of an Additional Term B Lender other than such fronting lender will be deemed ineffective unless accepted by the Administrative Agent in its sole discretion.
		
	SECTION IV.
	    REPRESENTATIONS AND WARRANTIES

In order to induce the Term B Lenders to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, each of Parent and the Borrower hereby represents and warrants to the Administrative Agent and each Term B Lender, as of the Sixth Amendment Effective Date that, before 

13

and after giving effect to this Amendment, the following statements are true and correct in all material respects:
A.    Power; Authorization.  
(i)    Each Loan Party has the power and authority to execute, deliver and perform this Amendment and the Credit Agreement, as amended by this Amendment (the “Amended Agreement”) and the other Loan Documents to which it is a party. Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Amendment, the Amended Agreement and the other Loan Documents to which it is a party.
(ii)    No consent or authorization of, or filing with, any Person (including, without limitation, any Governmental Authority) is required in connection with the execution, delivery and performance by any Loan Party, or the validity or enforceability in accordance with its terms against any Loan Party, of this Amendment, the Amended Agreement and the other Loan Documents to which it is a party except for (i) such consents, authorizations and filings which have been obtained and are in full force and effect, (ii) such consents, authorizations and filings which the failure to obtain or perform, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, (iii) authorizations and filings required by applicable securities laws in connection with the exercise of remedies with respect to pledged investment property and (iv) such filings as are necessary to perfect the Liens of the Lenders created pursuant to the Loan Documents.
B.    Enforceability.  This Amendment has been duly executed and delivered by each of the Loan Parties and constitutes the legal, valid and binding obligation of each Loan Party, and is enforceable against each Loan Party in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).
C.    Incorporation of Representations and Warranties from Credit Agreement.  The representations and warranties contained in Section 5 of the Amended Agreement are and will be true and correct in all material respects on and as of the Sixth Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct in all material respects on and as of such earlier date.
D.    Absence of Default.  No Default or Event of Default has occurred and is continuing or will result from this Amendment.
E.    Beneficial Ownership Certification.  The certification regarding beneficial ownership in relation to the Borrower as required by 31 C.F.R. § 1010.230 and delivered pursuant to Section III(H) is true and correct in all respects.
		
	SECTION V.
	    REAFFIRMATION OF GUARANTEES AND SECURITY INTERESTS

Each Loan Party hereby acknowledges its receipt of a copy of this Amendment and its review of the terms and conditions hereof and hereby confirms and consents to the terms and conditions of this Amendment and the transactions contemplated thereby, including the extension of New Term B Loans.  In addition, for the benefit of the Administrative Agent on behalf of the Secured Parties (including, without limitation, the New Term B Lenders), each Loan Party hereby (a) affirms and confirms its guarantees, pledges, grants and 

14

other undertakings under the Credit Agreement and the other Loan Documents to which it is a party, (b) agrees that (i) each Loan Document to which it is a party shall continue to be in full force and effect and (ii) all guarantees, pledges, grants and other undertakings thereunder shall continue to be in full force and effect and shall accrue to the benefit of the Secured Parties, including the New Term B Lenders, and (c) acknowledges that from and after the date hereof, all New Term B Loans shall be deemed to be Obligations.  Nothing herein can or may be construed as a novation of the Credit Agreement or any other Loan Document.
		
	SECTION VI.
	      RATIFICATION

This Amendment and the Credit Agreement and each amendment, waiver or other modification to the Loan Documents set forth or contemplated herein and therein shall be deemed to be effective pursuant to 2.19.1 of the Credit Agreement. 
		
	SECTION VII.
	     MISCELLANEOUS

A.    Reference to and Effect on the Credit Agreement and the Other Loan Documents.
(i)    On and after the Sixth Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.
(ii)    Except as specifically amended by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.
(iii)    This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and shall be administered and construed pursuant to the terms of the Credit Agreement.
(iv)    The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of any Agent or Lender under any Loan Document.
(v)    It is the intent of the parties hereto that this Agreement not constitute a novation of the obligations and liabilities existing under the Credit Agreement.  Except as expressly set forth herein, this Amendment (i) shall not by implication or otherwise limit, impair, constitute a novation or waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent or the Loan Parties under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or any other Loan Document.  
B.    Limitation of Amendment and Waiver.  Except as expressly set forth herein, the terms, provisions and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect and in all other respects are hereby ratified and confirmed.  Nothing herein shall be deemed to entitle the Borrower to a further consent to, or a further waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.

15

C.    Headings.  The descriptive headings of the several sections of this Amendment are inserted for convenience only and shall not affect the meaning or construction of any of the provisions of this Amendment.
D.    Applicable Law.  THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).
E.    Severability.  Every provision of this Amendment is intended to be severable.  If any term or provision of this Amendment shall be invalid, illegal or unenforceable for any reason, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired thereby.  Any invalidity, illegality or unenforceability of any term or provision of this Amendment in any jurisdiction shall not affect the validity, legality or enforceability of any such term or provision in any other jurisdiction.
F.    Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.
G.    Status. Each party hereto acknowledges and agrees that the New Term B Loans constitute “Refinancing Term B Indebtedness” under the Credit Agreement and the refinancing of the Term B Loans as contemplated hereby is permitted under Section 2.19.1 of the Credit Agreement.  
[Remainder of this page intentionally left blank.]

16

INTEGER HOLDINGS CORPORATION,
as Parent
By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

                    
GREATBATCH LTD.,
as the Borrower

By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

                    
GBV, LLC, as a Loan Party

By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     President

ELECTROCHEM SOLUTIONS, INC., as a Loan Party
By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

LAKE REGION MEDICAL, INC., as a Loan Party
By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

LAKE REGION MANUFACTURING, INC., as a Loan Party
By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

Greatbatch – Amendment No. 6 to Credit Agreement

ACCELLENT LLC, as a Loan Party
By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

VENUSA, LTD., as a Loan Party
By:  /s/ Tom P. Thomas  
Name:  Tom P. Thomas
Title:     Vice President & Corporate Controller

Greatbatch – Amendment No. 6 to Credit Agreement

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Amendment as of the date first written above.

ADDITIONAL TERM B LENDER:
	
	
	CREDIT SUISSE AG, CAYMAN ISLANDS
BRANCH, 
as a New Term B Lender

	

By:  /s/ Judith Smith   

	Name:  JUDITH SMITH

	Title:    AUTHORIZED SIGNATORY

	 

	

By:  /s/ Lingzi Huang  

	Name:  Lingzi Huang

	Title:    Authorized Signatory

Greatbatch – Amendment No. 6 to Credit Agreement

CREDIT SUISSE LOAN FUNDING LLC,
as Arranger

                        
By:   /s/ Michael Rutherford  
Name:  Michael Rutherford
Title:    Managing Director

Greatbatch – Amendment No. 6 to Credit Agreement

CONTINUING TERM B LENDERS:

On file with the Administrative Agent.

Greatbatch – Amendment No. 6 to Credit Agreement

Consented to by:
	
		
	MANUFACTURERS AND TRADERS TRUST COMPANY, 
as Administrative Agent

	By:  /s/ Michael J. Prendergast  

	 
	Name:  Michael J. Prendergast

	 
	Title:    Vice President

Schedule 2.6 to Amendment No. 6 to Credit Agreement

	
		
	Lender
	Term B Loan Commitment

	On file with the Administrative Agent.

	TOTAL
	$563,285,937.50

Greatbatch – Amendment No. 6 to Credit AgreementExhibit 10.2

 

CULTIVATION AND SALES AGREEMENT

 

This CULTIVATION AND
SALES AGREEMENT, dated as of January 18, 2019 (the “Agreement”), is entered into by and between MJ Holdings,
Inc. (its subsidiaries), a publicly traded Nevada Corporation (collectively “MJNE”) MJNE and Acres Cultivation,
LLC, a Nevada limited liability company (“Acres” and, together with MJNE, the “Parties”,
and each, a “Party”).

 

WHERAS, the Parties
hereto entered into a certain Management Agreement (the “Management Agreement”) dated April 18, 2018 which is hereby
terminated and replaced with this Agreement; and

 

WHEREAS, MJNE, is in
the business of managing, operating and providing services to businesses that cultivate, manufacture and sell cannabis and cannabis
extracted products, as more particularly described in Schedule 1;

 

WHEREAS, Acres is in
the business of owning and operating marijuana establishments, specifically Cultivation (C013), in the state of Nevada;

 

WHEREAS, MJNE wishes
to have Acres become the exclusive cultivator and seller of the products described in Schedule 1 in the State of Nevada;

 

WHEREAS, Acres wishes
to become the exclusive cultivator and seller of the products described in Schedule 1 in the State of Nevada;

 

WHEREAS, contemporaneously
herewith, Acres and MJNE have entered into a consulting agreement in the form set forth in Exhibit A attached hereto (the
“Consulting Agreement”) and the equipment lease agreement in the form set forth in Exhibit B attached
hereto (the “Lease Agreement”);

 

NOW, THEREFORE, in
consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1. Definitions.
Capitalized terms have the meanings set forth or referred to in this Section

 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or other, whether at law,
in equity or otherwise.

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled
by, or is under common Control with, such Person.

 

“Agreement”
has the meaning set forth in the preamble to this Agreement.

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Nevada are authorized
or required by Law to be closed for business.

 

“Confidential
Information” has the meaning set forth in Section 12.

 

“Consultant”
has the meaning as set forth in the Consulting Agreement.

 

     

     

    

 

“DOT”
has the meaning of the Department of Taxation, including, without limitation, the Marijuana Division, or such other governing
body under the laws of the State of Nevada.

 

“Effective
Date” means April 18, 2018.

 

“GAAP”
means U.S. generally accepted accounting principles in effect from time to time.

 

“Goods”
means the goods identified on Schedule 1 and described in the Specifications.

 

“Intellectual
Property Rights” means all industrial and other intellectual property rights comprising or relating to: (a) Patents;
(b) Trademarks; (c) internet domain names, whether or not Trademarks, registered by any authorized private registrar or Governmental
Authority, web addresses, web pages, website and URLs; (d) works of authorship, expressions, designs and design registrations,
whether or not copyrightable, including copyrights and copyrightable works, software and firmware, data, data files, and databases
and other specifications and documentation; (e) Trade Secrets; and (f) all industrial and other intellectual property rights, and
all rights, interests and protections that are associated with, equivalent or similar to, or required for the exercise of, any
of the foregoing, however arising, in each case whether registered or unregistered and including all registrations and applications
for, and renewals or extensions of, such rights or forms of protection pursuant to the Laws of any jurisdiction throughout in any
part of the world.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, governmental order or other requirement
or rule of law of any Governmental Authority.

 

“Manufacturing”
means the cultivation, processing, and extraction of Goods.

 

“Net Revenue”
means the gross sales of Goods less all applicable taxes and returns.

 

“NRS”
means Nevada Revised Statutes and Nevada Administrative Code, including, without limitation, NRS 453A and NRS 453D, as defined
by the State of Nevada.

 

“Party”
and “Parties” have the respective meanings set forth in the preamble to this Agreement.

 

“Patents”
means all patents (including all reissues, divisional, Provisionals, continuations and continuations-in-part, re-examinations,
renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental Authority-issued
indicia of invention ownership (including inventor’s certificates, petty patents, and patent utility models).

 

“Permits”
means permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained
or required to be obtained, from any Governmental Authority.

 

“Person”
means any individual, partnership, corporation, trust, limited liability entity, unincorporated organization, association,
Governmental Authority or any other entity.

 

“Personnel”
of a Party means any agents, employees, contractors or subcontractors engaged or appointed by such Party.

 

    2

     

    

 

“Public Company”
shall mean a company that has for sale to the public equity securities via any of the following recognized exchanges or platforms:
OTC, NASDAQ, NYSE, CSE.

 

“Representatives”
means a Party’s Affiliates and each of their respective Personnel, officers, directors, partners, shareholders, attorneys,
third-party advisors, successors and permitted assigns.

 

“Subsidiary”
shall mean any corporation or limited liability company in which MJ Holdings shall hold a majority ownership interest of at least
fifty-one (51%) percent.

 

“Term”
means Eight (8) years from the Effective Date.

 

“Territory”
means the State of Nevada.

 

“Trademarks”
means all rights in and to U.S. and foreign trademarks, service marks, trade dress, trade names, MJNE names, logos, symbols, trade
dress, corporate names and domain names and other similar designations of source, sponsorship, association or origin, together
with the goodwill symbolized by any of the foregoing, in each case whether registered or unregistered and including all registrations
and applications for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection in
any part of the world.

 

“Trade
Secrets” means all inventions, discoveries, trade secrets, business and technical information and know-how, databases,
data collections, patent disclosures and other confidential and proprietary information and all rights therein.

 

“Utilities”
– utilities shall mean the actual cost incurred by Acres to provide electrical service to the MJNE Facility.

 

2. Manufacture
and Sale of Goods.

 

2.1 Manufacture
and Sale. Subject to the terms and conditions of this Agreement, during the Term, Acres shall cultivate and sell the Goods
in the State of Nevada, at the Prices set forth on Schedule 1 attached hereto.

 

2.2 Right
to Cultivate and Sell Goods and Similar Products. During the Term, Acres shall not be restricted from cultivating or selling
cannabis products for other brands.

 

3. Quality
Control.

 

3.1 Acknowledgement.
Acres acknowledges and is familiar with the high standards, quality, style and image of MJNE and MJNE’s products, and Acres
shall use its best efforts to meet or exceed MJNE’s quality standards for the Goods as adopted by MJNE from time to time,
and which are provided by MJNE to Acres in writing. In the event the Parties cannot mutually agree that meeting MJNE’s quality
standards for a particular product is economically feasible, the Parties shall work together in good faith to develop and implement
an acceptable alternative. For the purposes of clarification, Acres’ failure to cultivate and sell a product that the Parties
cannot agree is economically feasible and with no acceptable alternative under this Section 3 shall in no event constitute a breach
of or default under this Agreement.

 

    3

     

    

 

3.2 Compliance
with MJNE Specifications. Acres shall use its commercially reasonable efforts to comply with the specifications, standards
and directions relating to the Goods, including their design, manufacture, promotion, packaging, distribution and sale, as notified
in writing by MJNE from time to time. In the event the Parties cannot mutually agree that meeting MJNE’s specifications,
standards and directions relating to a particular product, including the design, manufacture, promotion, packaging, distribution
and sale for a particular product is economically feasible, the Parties shall work together in good faith to develop and implement
an acceptable alternative. For the purposes of clarification, Acres’ failure to cultivate and sell a product that the Parties
cannot agree is economically feasible and with no acceptable alternative under this Section 3 shall in no event constitute a breach
of or default under this Agreement.

 

3.3 Packaging
and Labeling. Acres shall use its commercially reasonable efforts to properly pack, mark and ship Goods as instructed by
MJNE and otherwise in accordance with applicable law and industry standards. In the event the Parties cannot mutually agree that
complying with MJNE’s packing, marking and shipping requirements for a particular product is economically feasible, the Parties
shall work together in good faith to develop and implement an acceptable alternative. For the purposes of clarification, Acres’
failure to manufacture and sell a product that the Parties cannot agree is economically feasible and with no acceptable alternative
under this Section 3 shall in no event constitute a breach of or default under this Agreement.

 

3.4 Rejected,
Damaged or Defective Products. Acres shall not knowingly sell, market, distribute or use for any purpose, or knowingly
permit any third party to sell, market, distribute or use for any purpose, any Goods which are rejected by MJNE in writing under
the Consulting Agreement, or which are known to be damaged or defective, so as not to meet MJNE’s written standards for quality
and safety.

 

3.5 Product
Recall. Acres agrees to take all reasonable steps, which may include, without limitation, product recalls, to abate any
health or safety risks posed by the Goods as expeditiously as practicable. MJNE shall be responsible for all costs associated with
a Product Recall.

 

3.6 NRS.
Acres and MJNE shall comply with NRS, including all future amendments and alterations. For the avoidance of doubt, the Parties
shall never knowingly violate NRS 453A and 453D or Nevada Administrative Codes.

 

4. Marketing,
Advertising and Promotion.

 

4.1 Approval
of Marketing and Advertising Materials. MJNE shall send to Acres for its prior written approval, which shall not be unreasonably
withheld, the text and layout of all proposed advertisements and marketing and promotional material, which shall comply with NRS,
relating to the Goods. Within five (5) business days of a completed NRS complaint submission to Acres of any proposed advertising,
marketing or promotional materials by MJNE then Acres shall submit such materials to the DOT for its approval. In the event that
DOT disapproves of such material, MJNE shall modify the materials to comply with NRS requirements. MJNE shall not use any material
in the advertising, marketing or promotion of the Goods which has not been approved by DOT.

 

4.2 Cost
of Marketing and Advertising. MJNE shall assume and be fully responsible for all costs and expenses of and associated with
all advertising, marketing and promotion for the Goods in the State of Nevada.

 

5. Term:
Termination.

 

5.1 Term.
The term of this Agreement commences on the Effective Date and continues for a period of Eight (8) years, unless it is earlier
terminated pursuant to the terms of this Agreement or applicable law (the “Term”).

 

    4

     

    

 

5.2 MJNE’s
Right to Terminate for Cause. MJNE may terminate this Agreement, by providing written Notice to Acres:

 

(a) if
Acres shall fail to pay any installment of the Fee (as defined in the Consulting Agreement) when due and such failure continues
beyond fifteen (15) days after Acres’ receipt of written Notice from MJNE;

 

(b) except
as otherwise specifically provided under this Section, if Acres is in material breach of any representation, warranty or covenant
of Acres under this Agreement and either the breach cannot be cured or, if the breach can be cured, it is not cured by Acres within
a commercially reasonable period of time under the circumstances, in no case exceeding ninety (90) days following Acres’
receipt of written Notice of such breach;

 

(c) upon
revocation, without the fault of MJNE, of Acres’ cannabis related licenses, which such failure is not cured within ninety
(90) days of such revocation;

 

(d) upon
suspension, without the fault of MJNE, of Acres’ cannabis related licenses, which such failure is not cured within ninety
(90) days of such suspension.

 

(e) if
Acres (i) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due, (ii) files or has filed
against it, a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any
proceeding under any domestic or foreign bankruptcy or insolvency Law, and such petition or proceeding is not dismissed within
one hundred twenty (120) days; or (iv) applies for or has appointed a receiver, trustee, custodian or similar agent appointed by
order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business, and such
application or appointment is not withdrawn or dismissed within one hundred twenty (120) days;

 

(f) upon
the proper termination of the Consulting Agreement;

 

Any termination under
this Section 5.2 will be effective on Acres’ receipt of MJNE’s written notice of termination or such later date (if
any) set forth in such Notice, provided, however, a later date for termination is set forth in such Notice and Acres cures the
applicable breach or default prior to such date, then this Agreement shall not terminate and MJNE’s Notice of termination
shall be of no further force or effect.

 

5.3 Acres’
Right to Terminate for Cause. Acres may terminate this Agreement, by providing written Notice to MJNE:

 

(a) except
as otherwise specifically provided under this Section, if MJNE is in material breach of any representation, warranty or covenant
of MJNE under this Agreement and either the breach cannot be cured or, if the breach can be cured, it is not cured by MJNE within
a commercially reasonable period of time under the circumstances, in no case exceeding ninety (90) days following MJNE’s
receipt of written Notice of such breach;

 

(b) if,
as a result of MJNE’s actions, Acres’ cannabis related licenses are actually or reasonably and verifiably threatened
to be suspended or terminated;

 

(c) after
following the reasonable direction of Consultant pursuant to the Consulting Agreement, Acres fails to produce Goods in MJNE’s
Facility equaling Net Revenue of at least Two Million and 00/100 Dollars ($2,000,000.00) in any twelve (12) month period, starting
twelve (12) months after the Effective Date. Provided, however, MJNE may agree to compensate Acres ten percent (10%) of the shortfall
of any deficit, which such termination right shall thereupon be cancelled;

 

    5

     

    

 

(d) upon
the proper termination of the Consulting Agreement.

 

Any termination under
this Section 5.3 will be effective on MJNE’s receipt of Acres’ written Notice of termination or such later date (if
any) set forth in such Notice (the “Effective Termination Date”).

 

5.4 Effect
of Expiration or Termination.

 

(a) Immediately
upon the Effective Termination Date of a Notice of termination delivered hereunder (as stated in such Notice), Acres and MJNE shall:

 

(i) pay
the amounts due under the Consulting Agreement; and

 

(ii) comply
with the termination requirements under the Consulting Agreement and Equipment Lease.

 

(b) Upon
the expiration or earlier termination of this Agreement, each Party shall:

 

(i) return
to the other or destroy all documents and tangible materials (and any copies) containing, reflecting, incorporating or based on
the other Party’s Confidential Information;

 

(ii) permanently
erase all of the other Party’s Confidential Information from its computer systems; and

 

(iii) upon
the other Party’s written request, certify in writing to such other Party that it has complied with the requirements of this
Section.

 

(iv) 
Follow termination language as defined in the Consulting Agreement and Equipment Lease.

 

6. Certain
Obligations of The Parties.

 

6.1 Mutual
Obligations.

 

(a) The
Parties shall enter into a Consulting Agreement in the form attached hereto as Exhibit A.

 

(i) Failure
to enter into or termination of the Consulting Agreement will constitute a material breach of this Agreement with no applicable
cure period.

 

(b) Acres
may deduct from payments payable to MJNE the following:

 

(i) all
taxes on the Goods;

 

(ii) all
local jurisdictional, state and federal fees levied or charged on the Goods;

 

(iii) all
laboratory testing of the Goods;

 

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(iv) all
cost of goods sold (“COGS”) expenditures by Acres required to produce and sell the Goods;

 

(v) maintaining
and repairing the equipment used in cultivating the Goods, as approved by MJNE, which such approval shall not be unreasonably withheld,
conditioned, or delayed;

 

(vi) acquisition
of any machinery necessary for the cultivating process utilized in producing the Goods, paid for by Acres, with approval of MJNE,
which such approval shall not be unreasonably withheld, conditioned, or delayed;

 

(vii) compliance
and security charge of Seven Thousand and 00/100 Dollars ($7,000.00) per month. Acres hereby acknowledges receipt of the Certificate
of Occupancy from Nye County for MJNE’s facility; Compliance is limited to review and oversight to audit compliance under
local and state laws for cannabis operations.

 

(viii) all
costs listed in Section 4 paid for by Acres

 

(ix) all
federal taxes levied against Acres for items deemed non-deductible that are paid to Consultant.

 

(x) any
additional permitting and build out of Acres’ facilities reasonably necessary for the purposes contemplated under this Agreement
and the Consulting Agreement attached hereto, after approval by MJNE, which such approval shall not be unreasonably withheld, conditioned,
or delayed; and

 

(xi) utilities
used to produce the Goods.

 

6.2 Acres
Obligations. In addition to any other obligations set forth herein or the Consulting Agreement, Acres shall have the following
obligations:

 

(a) Acres
shall at all times maintain the required state and local permits required to cultivate and sell the Goods as set forth herein;

 

(b) MJNE
shall source sufficient employees necessary for Acres to handle all cannabis and cannabis products, including, without limitation,
the Goods, to manufacture the Goods and support ongoing sales. All employees shall be properly licensed and approved by the DOT
prior to entering the Facility; and

 

(c) Acres
shall provide reasonable support as requested by MJNE to address and correct quality concerns. Any and all MJNE approved related
costs and expenses incurred by Acres may be deducted from payments payable to MJNE.

 

7. Compliance
with Laws.

 

7.1 Compliance.
Each Party shall at all times comply with all state and local Laws applicable to this Agreement, such Party’s operation of
its business, and the exercise of its rights and performance of its obligations hereunder, including, without limitation, NRS 453A
and 453D. Without limiting the foregoing, each Party shall ensure the Goods and any related packaging conform fully to any and
all applicable Laws.

 

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7.2 Permits,
Licenses, and Authorizations. Acres shall obtain and maintain all Permits necessary for the exercise of its rights and
performance of Acres’ obligations under this Agreement, including any Permits required for the import of Goods or any raw
materials and other parts used in the cultivation of the Goods, and the shipment of hazardous materials, as applicable. Moreover,
MJNE shall not take any action that would jeopardize the good-standing of the Permits, or otherwise negatively impact the standing
of the Permits in any way. If MJNE breaches this obligation, Acres shall be entitled to either: (i) terminate this Agreement, or
(ii) cure such breach to restore the Permits to good standing, and MJNE shall be responsible for any and all costs and expenses
incurred to restore the Permits to good standing.

 

8. Representations
and Warranties.

 

8.1 Acres’
Representations and Warranties. Acres represents and warrants to MJNE that:

 

(a) it
is a limited liability company, duly organized, validly existing and in good standing under the laws of Nevada;

 

(b) it
is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes
of this Agreement;

 

(c) it
has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;

 

(d) the
execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery of
this Agreement by Acres, have been duly authorized by all necessary action on the part of Acres;

 

(e) the
execution, delivery, and performance of this Agreement by Acres will not violate, conflict with, require consent under or result
in any breach or default under (i) any of Acres’ organizational documents (including its Articles of Organization and Operating
Agreement), (ii) any applicable law or (iii) with or without notice or lapse of time or both, the provisions of any material contract;

 

(f) this
Agreement has been executed and delivered by Acres and (assuming due authorization, execution and delivery by MJNE) constitutes
the legal, valid and binding obligation of Acres, enforceable against Acres in accordance with its terms, except as may be limited
by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting
creditors’ rights generally or the effect of general principles of equity;

 

(g) it
is in compliance with all applicable laws and contracts relating to this Agreement, the Goods and the operation of its business;

 

(h) it
has obtained all material licenses, authorizations, approvals, consents or permits required by applicable laws to conduct its business
generally and to exercise its rights and perform its obligations under this Agreement; and

 

(i) it
is not insolvent and is paying all of its debts as they become due.

 

8.2 MJNE’s
Representations and Warranties. MJNE represents and warrants to Acres that:

 

(a) it
is duly organized, validly existing and in good standing under the laws of the State of Nevada;

 

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(b) it
is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes
of this Agreement;

 

(c) it
has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;

 

(d) the
execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery of
this Agreement by each such Party, have been duly authorized by all necessary action on the part of the representing Party;

 

(e) the
execution, delivery, and performance of this Agreement by MJNE will not violate, conflict with, require consent under or result
in any breach or default under (i) any of the representing Party’s organizational documents (including its Articles of Organization
or Incorporation and Operating Agreement or bylaws), (ii) any applicable state or local law or (iii) with or without notice or
lapse of time or both, the provisions of any material contract;

 

(f) this
Agreement has been executed and delivered by MJNE and (assuming due authorization, execution and delivery by Acres) constitutes
the legal, valid and binding obligation of MJNE, enforceable against MJNE in accordance with its terms, except as may be limited
by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting
creditors’ rights generally or the effect of general principles of equity;

 

(g) it
is in compliance with all applicable state and local laws and contracts relating to this Agreement, the Goods and the operation
of its business;

 

(h) it
has obtained all material licenses, authorizations, approvals, consents or permits required by applicable laws to conduct its business
generally and to exercise its rights and perform its obligations under this Agreement; and

 

(i) it
is not insolvent and is paying all of its debts as they become due.

 

9. Indemnification.

 

9.1 Indemnification.
Subject to the terms and conditions of this Agreement, each Party (as “Indemnifying Party”) shall indemnify,
defend and hold harmless the other Party and its officers, directors, employees, agents, Affiliates, successors and permitted assigns
(collectively, “Indemnified Parties”) against any and all losses, damages, liabilities, deficiencies, claims,
actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable
attorneys’ fees, fees and the costs of enforcing any right to indemnification under this Agreement and the cost of pursuing
any insurance providers, incurred by any Indemnified Party (collectively, “Losses”), relating to any third-party
Claim or any direct Claim against Indemnifying Party based or relating to Indemnifying Party’s breach of any representations
or warranties contained herein or as a result of any of indemnifying Party’s actions or inactions related to the Goods.

 

9.2 Exceptions
and Limitations on Indemnification. Notwithstanding anything to the contrary in this Agreement, the Indemnifying Party
is not obligated to indemnify or defend any Indemnified Party against any such Claim or corresponding Losses results directly from
Indemnified Party’s or its Personnel’s:

 

(a) gross
negligence or more culpable act or omission (including recklessness or willful misconduct); or

 

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(b) bad
faith failure to materially comply with any of its obligations set forth in this Agreement.

 

10. No
Franchise Agreement. The Parties to this Agreement are independent contractors and nothing in this Agreement shall be deemed
or constructed as creating a joint venture, partnership, agency relationship or franchise between Acres and MJNE. Neither party,
by virtue of this Agreement or any agreement contemplated herein, will have any right, power or authority to act or create an obligation,
express or implied, on behalf of the other party. Each party assumes responsibility for the actions of their personnel under this
Agreement and will be solely responsible for their supervision, daily direction and control, wage rates, withholding income taxes,
disability benefits, or the manner and means through which the work under this Agreement will be accomplished. Except as provided
otherwise in this Agreement, Acres has the sole discretion to determine Acres’ methods of operation, Acres’ accounting
practices, the types and amounts of insurance Acres carries, Acres’ personnel practices, Acres’ advertising and promotion,
Acres’ customers, and Acres’ service areas and methods. If any provision of this
Agreement is deemed to create a franchise relationship between the parties, then the Parties shall negotiate in good faith to modify
this Agreement so as to affect the Parties’ original intent as closely as possible in a mutually acceptable manner in order
that the transactions contemplated hereby be consummated as a Manufacturing and Sales Agreement and not a franchise agreement.

 

11. Intellectual
Property.

 

11.1 Ownership.
Each of the Parties acknowledges and agrees that:

 

(a) each
Party retains exclusive ownership of its Intellectual Property Rights;

 

(b) MJNE
does not transfer to Acres any of its Intellectual Property Rights, and Acres may not use any of MJNE’s Intellectual Property
Rights other than to fulfill Acres’ obligations hereunder, including, without limitation, the cultivation and sale of Goods
in accordance with the terms of this Agreement; and

 

(c) Acres
does not transfer to MJNE any of Acres’ Intellectual Property Rights.

 

11.2 Prohibited
Acts. Neither Party shall:

 

(a) take
any action that may interfere with the other Party’s Intellectual Property Rights, including such other Party’s ownership
or exercise thereof;

 

(b) challenge
any right, title or interest of the other Party in such other Party’s Intellectual Property Rights;

 

(c) make
any claim or take any action adverse to such other Party’s ownership of its Intellectual Property Rights;

 

(d) register
or apply for registrations, anywhere in the world, the other Party’s Trademarks or any other Trademark that is similar to
such other Party’s Trademark(s) or that incorporates such Trademarks in whole or in confusingly similar part;

 

(e) use
any mark, anywhere, that is confusingly similar to the other Party’s Trademarks;

 

    10

     

    

 

(f) misappropriate
any of the other Party’s Trademarks for use as a domain name without such other Party’s prior written consent; or

 

(g) alter,
obscure or remove any of the other Party’s Trademarks or trademark or copyright notices or any other proprietary rights notices
placed on the products purchased under this Agreement (including Goods), marketing materials or other materials.

 

(h) MJNE
is a publicly traded company subject to certain rules and obligations concerning the release of public information as promulgated
by the United States Securities and Exchange Commission (the “SEC”) and MJNE, in its sole discretion, shall file any
such required documents, media statements or press releases as MJNE may determine is in the best interests of MJNE and its shareholders,
provided such documents, media statements and press releases are compliant with NRS and any use of Acres name is approved by Acres
prior to such submission.

 

12. Confidentiality.

 

12.1 Scope
of Confidential Information. From time to time during the Term, a Party (as the “Disclosing Party”)
may disclose or make available to the other Party (as the “Receiving Party”) information about its business
affairs, goods and services (including any Forecasts), confidential information and materials comprising or relating to Intellectual
Property Rights, trade secrets, third-party confidential information and other sensitive or proprietary information. Such information,
as well as the terms of this Agreement, whether orally or in written, electronic or other form or media, and whether or not marked,
designated or otherwise identified as “confidential” constitutes “Confidential Information” hereunder.
Confidential Information does not include information that, at the time of disclosure and as established by documentary evidence:

 

(a) is
or becomes generally available to and known by the public other than as a result of, directly or indirectly, any breach of this
Section 12 by the Receiving Party or any of its Representatives;

 

(b) is
or becomes available to the Receiving Party on a non-confidential basis from a third-party source, provided that such third party
is not and was not prohibited from disclosing such Confidential Information;

 

(c) was
known by or in the possession of the Receiving Party or its Representatives prior to being disclosed by or on behalf of the Disclosing
Party;

 

(d) was
or is independently developed by the Receiving Party without reference to or use of, in whole or in part, any of the Disclosing
Party’s Confidential Information; or

 

(e) is
required to be disclosed pursuant to applicable law.

 

12.2 Protection
of Confidential Information. The Receiving Party shall, for two years from receipt of such Confidential Information:

 

(a) protect
and safeguard the confidentiality of the Disclosing Party’s Confidential Information with at least the same degree of care
as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable
degree of care;

 

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(b) not
use the Disclosing Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise
its rights or perform its obligations under this Agreement; and

 

(c) not
disclose any such Confidential Information to any Person, except to the Receiving Party’s Representatives who need to know
the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations
under this Agreement.

 

The Receiving Party
shall be responsible for any breach of this Section 12 caused by any of its Representatives. At any time during or after the Term,
at the Disclosing Party’s written request, the Receiving Party and its Representatives shall, pursuant to, promptly return
or destroy all Confidential Information and copies thereof that it has received under this Agreement.

 

13. Inspection
and Audit Rights. Acres hereby grants to MJNE, and each of its authorized Representatives, the right, not more than once
during any six (6) month period during the Term and within six (6) months after the earlier of the expiration of the Term or earlier
termination of this Agreement, to access to Acres’ premises (including Acres’ manufacturing operations used in production
of the Goods) and all pertinent books, records and accounts for the purpose of auditing Acres’ compliance with the terms
of this Agreement and any other agreements between MJNE and Acres. Acres shall cooperate with MJNE in connection with any such
audit or inspection. Acres shall maintain, during the Term and for a period of six (6) months after the Term, complete and accurate
books and records relating to the sale of the Goods in accordance with GAAP. Acres shall segregate its records and otherwise cooperate
with MJNE so as to facilitate any audit by MJNE solely for the purpose of verifying the accuracy of any fee paid to MJNE pursuant
to the Consulting Agreement. Acres shall reimburse MJNE for the amount of any underpayment of consulting fees discovered during
an audit. In addition, Acres shall reimburse MJNE for the amount of MJNE’s reasonable costs and expenses incurred in conducting
the audit if the results of such audit indicate that such discrepancy is greater than ten percent (10%) of the total amount actually
payable by MJNE for the period examined. If requested by MJNE, Acres shall use its best efforts to permit MJNE and its Representatives
to obtain from subcontractors or other suppliers to Acres the information and permission to conduct the reviews specified with
respect to Acres in this Section 13.

 

14. Improvement
of MJNE’s Facility.

 

14.1 Improvement
of MJNE’s Facility. Acres owns that certain real property located at 950 E. Anvil Road, Amargosa Valley, NV 89010,
and commonly referred to as Nye County Parcel Number 019-751-03 (together with all improvements thereon, easements, rights of way,
privileges, licenses, appurtenances and other rights and benefits belonging thereto or running therewith, or otherwise related
thereto and belonging to Acres, the “Facility”). MJNE, in conjunction with terms and conditions of the Equipment
Lease , accepts that portion of the Facility as described on Exhibit C-1 (“MJNE’s Facility”) and the existing
portions thereof, in its present condition, “as-is, where-is, with all faults,” without any representation or warranty
of any kind by Acres, except suitability of fulfilling the purpose of this Agreement and as otherwise expressly set forth herein.
The Parties hereto agree that construction of MJNE’s Facility has been completed and operational as of the date of this Agreement.

 

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14.2 Prohibition.
Except for the approved MJNE’s previous Facility Improvements and other Permitted Alterations (as defined below), MJNE shall
make no alterations, decorations, installations, additions or improvements in or to the Facility (or any portion thereof, including,
without limitation, MJNE’s Facility) or the electrical, plumbing, mechanical or HVAC systems or equipment serving the Facility
(or any portion thereof, including, without limitation, MJNE’s Facility), including but not limited to, any wireless intranet
or internet or communications network, a water cooler, air-conditioning or cooling system, mechanical or electrical equipment,
or any unit or part thereof or other apparatus of like or other nature, without Acres’ express prior written consent, not
to be unreasonably withheld. All work, alterations, decorations, installations, additions or improvements of whatever nature shall
be done by contractors or mechanics reasonably approved by Acres at MJNE’s sole cost and expense, at such times and in such
manner as Acres may from time to time designate and in full compliance with applicable Laws. Upon approval and prior to commencing
any such work, alterations, decorations, installations, additions or improvements of whatever nature, MJNE shall provide Acres
with true and correct copies of any and all related contracts with such contractors or mechanics, as well as any related contracts
with MJNE’s architects. MJNE shall cause all of MJNE’s contractors and subcontractors engaged in the performance of
work on behalf of MJNE to effect and maintain and deliver to Acres and MJNE certificates evidencing the existence of, and covering
Acres, MJNE and MJNE’s contractors, prior to the commencement of any work by or on behalf of MJNE’s and until the completion
thereof, of the workers’ compensation insurance, employer’s liability insurance, commercial general liability insurance
and commercial automobile liability insurance policies in the amounts required pursuant to Section 15 or as otherwise expressly
approved in advance in writing by Acres and in compliance with the terms thereof; it being understood that the foregoing shall
not diminish in any manner MJNE’s responsibility to at all times carry all insurance required pursuant to Section 15 in the
manner required thereby. Notwithstanding the foregoing, MJNE shall have the right, without Acres’ consent from time to time
during the Term, to make alterations, decorations, installations, additions or improvements in or to MJNE’s Facility which
(a) are not Major Alterations (for purposes hereof, “Major Alteration(s)” shall mean those that require entry
into, or affect, another occupant’s premises at the Facility), (b) cost less than Fifty Thousand and 00/100 Dollars U.S.
($50,000.00 U.S.) in the aggregate for any twelve (12) month period, (c) are cosmetic in nature, and (d) are consistent with the
terms of this Agreement and all applicable Laws (the “Permitted Alterations”); provided, however, MJNE shall
notify Acres ten (10) days in advance of the making of any such Permitted Alterations.

 

14.3 Mechanics
Liens.

 

(a) If
any mechanic’s lien is filed against the Facility (or any portion thereof, including, without limitation, MJNE’s Facility)
for work done for or materials furnished to MJNE, it shall be discharged by MJNE within sixty (60) days thereafter, at MJNE’s
sole cost and expense, by filing the bond required by law or payment or otherwise. If MJNE fails to discharge such lien, then Acres
shall have, following at least five (5) days’ prior written notice to MJNE, the right, in addition to all other rights and
remedies contained herein, to discharge same (by filing the bond required by law or by payment in full of the mechanic’s
lien or otherwise) and Acres’ costs and expense in obtaining such discharge, with interest accruing thereon from the date
of payment, shall be repaid in full by MJNE to Acres within ten (10) days after written demand therefor. In addition, MJNE shall
defend, save and hold Acres harmless from any such mechanic’s lien or claim, including, without limitation, Acres’
reasonable attorneys’ fees, costs and expenses. Acres shall not be liable for any failure of any facilities or services at
or serving MJNE’s Facility including, but not limited to, the HVAC installations, and/or additions by MJNE, and MJNE shall
correct any such faulty installation. Upon MJNE failure to correct same, following at least five (5) days’ prior written
notice to MJNE, Acres may make such correction and charge MJNE for the cost thereof. Such sum due Acres shall be paid by MJNE within
ten (10) days of being billed therefor with interest thereon.

 

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(b) Pursuant
to NRS § 108.234, Acres hereby informs MJNE that MJNE must comply with the requirements of NRS § 108.2403 and NRS §
108.2407. MJNE shall take all actions necessary under the laws of the State of Nevada to ensure that no liens encumbering MJNE’s
interest in the Facility arise as a result of MJNE’s work (including the MJNE’s Facility Improvements), which actions
shall include, without limitation, the recording of a notice of posted security in the Official Records of Clark County, Nevada,
in accordance with NRS § 108.2403(1)(a), and establishing a construction disbursement account pursuant to NRS § 108.2403(1)(b)(1)
(MJNE acknowledges and agrees that it shall be obligated to establish a construction disbursement account pursuant NRS § 108.2403(1)(b)(1)
and may not, without the express prior written consent of Acres, such consent to be granted or withheld in Acres’ sole discretion,
opt to instead furnish and record, in accordance with NRS § 108.2403(1)(b)(2), a surety bond for the prime contract for MJNE’s
work at the Facility that meets the requirements of NRS § 108.2415). Acres shall approve MJNE’s prime contractor who
will be performing MJNE’s work. MJNE shall notify Acres immediately upon the signing of any contract with the prime contractor
for MJNE construction, alteration or repair of any portion of MJNE’s Facility. MJNE may not begin any alteration or other
work in the MJNE Facility until MJNE has delivered evidence satisfactory to Acres that MJNE has complied with the terms of this
Section 14.3(b). Failure by MJNE to comply with the terms of this Section 14.3(b) shall permit Acres to declare an event of default
and to terminate this Agreement after the expiration of any applicable notice and cure periods.). Notwithstanding anything else
to the contrary contained herein, and upon execution of this Agreement, MJNE acknowledges that Acres may execute a Notice of Non-Responsibility
in a form compliant with applicable laws, rules, regulations, and ordinances and acceptable to Acres and its counsel and may record
the same within three (3) days of execution of this Agreement pursuant to NRS § 108.234. Notwithstanding the foregoing, the
Parties hereto agree that all improvements to date made to MJNE’s Facility and the Facility Improvements are in full compliance
with this paragraph 14.3 and there are no mechanics liens pending or in force as regards MJNE’s Facility.

 

14.4 Requirements
Prior to Work Commencement. Other than with respect to Permitted Alterations, prior to commencing any work, (including
the MJNE’s Facility Improvements) MJNE shall furnish to Acres:

 

(a) Copies
of all governmental licenses permits (including, without limitation, building permits) and authorizations, if any, which may be
required in connection with such work; provided, however, prior to submitting applications for any such permits and authorizations
with any governmental or quasi-governmental authorities, MJNE shall submit the same to Acres for its express prior written approval,
not to be unreasonably withheld. Upon issuance of any licenses and permits, MJNE shall comply with the terms and conditions thereof
and provide copies of the same to Acres’ upon Acres’ request.

 

(b) Such
additional personal injury and property damage insurance (over and above the insurance required to be carried by MJNE pursuant
to the provisions of Section 15) and general liability insurance (with completed operations endorsement) for any occurrence in
or about the MJNE Facility, in such limits as are customary for the nature of the work to be done by MJNE and reasonably satisfactory
to Acres and with insurers reasonably satisfactory to Acres.

 

(c) Submit
to Acres a copy of detailed plans and specifications including drawings for layout, architectural, mechanical, and structural interior
design, signage, and fixturing and finishing work therefor, as well as an estimate of related costs, for Acres’ review and
reasonable express prior written approval. For purposes of this Agreement, an “Acres Delay” shall be deemed
to have occurred if Acres fails to respond to MJNE request for any such approval within ten (10) business days after receipt of
request for such approval, or Acres otherwise directly causes a delay in the completion of the MJNE Facility Improvements. No extension
of any period under this Section 14 shall occur unless MJNE has notified Acres in writing within five (5) days after such occurrence.
Notwithstanding the foregoing, Acres acknowledgments receipt of all of the foregoing documents in relation to MJNE’s Facility.

 

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14.5 Performance.
No alterations and/or additions shall be undertaken by or on behalf of MJNE except under the supervision of a licensed architect
and licensed professional engineer reasonably satisfactory to Acres. All alterations and/or additions shall at all times comply
with all applicable laws, rules, regulations, and ordinances and insurance requirements. MJNE, at its cost and expense, shall (i)
obtain all necessary municipal and other governmental permits, authorizations, approvals and certificates for the commencement
and prosecution of such alterations and/or improvements and for final approval thereof upon completion, to the extent required
by the nature of such alterations and/or improvements, (ii) deliver three (3) copies to Acres if any such permits, authorizations
and approvals are required, and (iii) cause all alterations and/or improvements to be performed in a good and workmanlike manner,
using materials and equipment at least equal in quality to the original installations of the Facility. All alterations and/or additions
shall be promptly commenced and completed and shall be performed in such manner so as not to unreasonably interfere with the occupancy
of any other subtenant, licensee or occupant nor delay or impose any additional expense upon Acres in the maintenance, cleaning,
repair, safety, management, or security of the Facility or in the performance of any improvements. If any additional expense is
incurred, Acres may collect the same from MJNE, and MJNE’s failure to promptly pay the same within ten (10) days after demand
therefor shall result in interest accruing thereon until paid. Upon completion of MJNE’s improvements or alterations (including
the MJNE’s Facility Improvements), MJNE shall deliver a complete set of “As Built” drawings and plans to Acres
and contractors’ affidavits, in form consistent with applicable laws, rules, regulations, and ordinances, and full and final
waivers of lien and receipted bills covering all labor and materials expended and used. MJNE, at its sole cost expense, shall promptly
procure the cancellation or discharge of all notices of violation arising from or otherwise connected with its alterations and/or
additions which shall be issued by any public authority having or asserting jurisdiction. No approval of any plans or specifications
by Acres or consent by Acres allowing MJNE to make any improvements or any inspection of improvements made by or for Acres shall
in any way be deemed to be an agreement by Acres that the contemplated improvements comply or at any point will comply with any
applicable laws, rules, regulations, or ordinances or insurance requirements or the certificate of occupancy for the Facility (or
the CO for MJNE’s Facility) nor shall it be deemed to be a waiver by Acres of the compliance by MJNE of any provision of
this Agreement. Notwithstanding the foregoing, Acres acknowledges that MJNE has fully complied with this paragraph 14.5 in regard
to MJNE’s Facility.

 

14.6 Labor.
Acres reserves the right to exclude from the Facility any person attempting to act as construction contractor in violation of this
Section 14. In the event MJNE shall employ any contractor permitted in this Section14, such contractor or any subcontractor may
have use of the facilities subject to the provisions of this Agreement, the rules and regulations governing construction, and all
applicable laws, rules, regulations, and ordinances. MJNE will advise Acres of the names of any such contractor and subcontractor
MJNE proposes to use in or at MJNE’s Facility at least ten (10) days prior to the beginning of work by such contractor or
subcontractor. MJNE agrees that it will not at any time prior to or during the Term, either directly or indirectly employ or permit
the employment of any contractor, mechanic or laborer, or permit any materials in or at MJNE Facility, if the use of such contractor,
mechanic or laborer or such materials would, in Acres’ reasonable opinion, create any difficulty, work slowdown, sabotage,
strike or jurisdictional dispute with other contractors, mechanics and/or laborers engaged by MJNE or Acres or others, or would
in any way disturb the peaceful and harmonious construction, maintenance, cleaning, repair, management, security or operation of
the Facility or any portion thereof. In the event of any interference or conflict, MJNE, upon demand of Acres, shall cause all
contractors, mechanics or laborers, or all materials causing, in Acres’ reasonable opinion, such interference, difficulty
or conflict, to leave or be removed from the Facility immediately and MJNE does hereby agree to defend (with counsel acceptable
to Acres in its reasonable discretion), save and hold Acres harmless from any and all loss arising thereby, including, without
limitation, any reasonable attorneys’ fees and any claims made by contractors, mechanics and/or laborers so precluded from
having access to the Facility.

 

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14.7 Inspection.
Acres may inspect MJNE Facility and gain access thereto 24 hours a day, seven days a week.

 

14.8 Repairs.
Except as otherwise provided, MJNE shall, during the Term, at its sole cost and expense, keep and maintain MJNE Facility, including
all buildings and improvements of every kind that may be a part thereof, and all appurtenances to the MJNE Facility, in good, sanitary,
and neat order, condition and repair, and MJNE shall, except as otherwise expressly set forth herein, restore and rehabilitate
any improvements of any kind that may be destroyed or damaged by fire, casualty, or any other cause whatsoever. Acres shall not
be obligated to make any repairs, replacements, or renewals of any kind, nature, or description, whatsoever to MJNE’s Facility
or any improvements thereon, except only in the event of gross negligence by Acres

 

14.9 Use.
During the Term, MJNE shall have the exclusive right to access and occupy the MJNE Facility and Acres shall insure any other party,
shall be permitted to access the MJNE Facility without the prior written consent of MJNE, except as required to comply with applicable
laws, rules, regulations, and ordinances, compliance audits or as otherwise permitted under the terms of this Agreement. MJNE shall
not, without the prior express written consent of Acres, use or occupy the Facility (or any portion thereof, including, without
limitation, MJNE’s Facility), or permit the Facility (or any portion thereof, including, without limitation, MJNE Facility)
to be used or occupied, for any purpose other than for the operation of the processing and production of Product (as defined below)
and performance of Services (as defined below) (the “Permitted Use”).

 

14.10 Title
to Improvements. All alterations, additions and improvements made by or on behalf of MJNE (including the MJNE’s Facility
Improvements) shall be considered part of the Equipment Lease. Upon the termination of this Agreement (whether by the expiration
of the Term or prior termination in accordance with the terms hereof), free title to all buildings and improvements then located
at or on MJNE’s Facility, together with all alterations, additions and improvements thereto, other than only the following
to the extent the same can be removed without materially damaging the structure of the Facility or MJNE’s Facility, shall
automatically pass to and vest in Acres, free and clear of all claims to or against the same by MJNE or any third person, upon
payment of one dollar ($1.00) as defined in the Equipment Lease,: the fertigation system, water tanks, and processing equipment
(such items are each a part of and collectively the “FWLE”). To the extent that the FWLE, or any portion thereof,
can be removed without materially damaging the structure of the Facility or MJNE’s Facility, the same shall continue to be
owned by MJNE and MJNE shall have the right to remove and retain the same. MJNE shall defend and indemnify Acres against all liability
and loss arising from any such claims. For clarification purposes, any and all building structures or installed and plumbed water,
heating or cooling systems shall remain with Acres and items such as lights, tables, cost of goods items (not governed by NRS),
shall be removed by MJNE.

 

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14.11 Surrender
and Re-Delivery of MJNE’s Facility. Upon the expiration of the Term of this Agreement, or prior termination hereof,
MJNE shall, at its sole cost and expense, (i) promptly and peaceably surrender MJNE’s Facility to Acres “broom clean,”
in good order and condition, ordinary wear and tear excepted; and (ii) repair any major damage to Facility caused by or in connection
with the removal of any property from the Facility by or at the direction of MJNE. Before surrendering MJNE’s Facility, MJNE
shall, at its sole cost and expense, remove only its movable personal property, trade fixtures, and any FWLE that can be removed
without materially damaging the structure of the Facility or MJNE’s Facility, and all other property shall, unless otherwise
directed by Acres, remain in MJNE’s Facility and become the property of Acres without payment therefor; however, MJNE shall
not remove any personal property, trade fixtures or other property from MJNE’s Facility without Acres’ prior express
written consent if the removal of such personal property, trade fixtures or other property will impair or damage the structure
of the building or any other improvements, or if MJNE is in default under this Agreement or a circumstance or event exists which
with the passage of time or the giving of notice or both would cause MJNE to be deemed to be in default under this Agreement. If
MJNE is in default under this Agreement or a circumstance or event exists which with the passage of time or the giving of notice
or both would cause MJNE to be deemed to be in default under this Agreement, Acres shall have a lien on such personal property,
trade fixtures and other property. All personal property, trade fixtures, FWLE, and other property of MJNE not removed from MJNE’s
Facility upon the abandonment of MJNE’s Facility or upon the expiration of the Term of this Agreement, or prior termination
hereof, for any cause shall conclusively be deemed to have been abandoned and may be appropriated, sold, stored, destroyed or otherwise
disposed of by Acres without notice to MJNE or any other person and without any obligation to account therefor. MJNE shall pay
to Acres all expenses incurred in connection with the disposition of such property in excess of any amount received by Acres from
such disposition. No surrender of MJNE’s Facility shall be affected by Acres’ acceptance of the keys, or of amounts
payable to Acres by MJNE hereunder, or by any other means whatsoever without Acres’ express written acknowledgement of such
acceptance as a surrender. MJNE shall not be released from its obligations hereunder in connection with surrender of MJNE’s
Facility until Acres has inspected MJNE’s Facility and delivered to MJNE a written release, not to be unreasonably withheld.

 

14.12 Damage;
Destruction. In the event that the Facility should be totally destroyed by fire, tornado or other casualty, or in the event
the Facility should be so damaged that rebuilding or repairs cannot be completed within one hundred eighty (180) days after the
date of such damage, either Acres or MJNE may, at their option, terminate this Agreement. In the event that the Facility should
be damaged by fire, tornado or other casualty covered by Acres’ insurance, and if the necessary rebuilding or repairs can
be completed within 180 days after the date of such damage, or if such rebuilding or repairs would take more than one hundred eighty
(180) days to complete but neither Acres nor MJNE elects to terminate this Agreement, then, in either such event, Acres shall,
within thirty (30) days after the date of such damage, commence to rebuild or repair the Facility, and shall proceed with reasonable
diligence to restore the Facility to substantially the same condition in which they were immediately prior to the happening of
the casualty, except that Acres shall not be required to rebuild, repair or replace any part of the furniture, equipment, fixtures
and other improvements, which may have been placed by MJNE within the Facility or related facilities, except in the event of gross
negligence by Acres. If the Facility is not totally untenantable, Acres shall allow MJNE a fair diminution of rent during the time
the Facility is unfit for occupancy. In the event any mortgages under a deed of trust, security agreement or mortgage on the Facility
should require that the insurance proceeds be used to retire the mortgage debt, Acres shall have no obligation to rebuild and this
Agreement shall terminate upon notice to MJNE. Any insurance which may be carried by Acres or MJNE against loss or damage to the
Facility shall be for the sole benefit of the party carrying such insurance and under its sole control.

 

14.13 Condemnation;
Eminent Domain. If, during the Term of this Agreement, or any extension or renewal thereof, the Facility should be taken
for any public or quasi-public use under any governmental law, ordinance or regulation or by right of eminent domain, this Agreement
shall terminate, effective on the date physical possession is taken by the condemning authority, and MJNE shall have no claim against
Acres for the value of any unexpired term of this Agreement.

 

(a) In
the event a portion but not all of the Facility shall be taken for any public or quasi-public use under any governmental law, ordinance
or regulation, or by right of eminent domain and the partial taking or condemnation shall render the Facility unsuitable for MJNE’s
business, then Acres shall have the option, in its sole discretion, of terminating this Agreement, or, at Acres’ sole expense,
restoring and reconstructing the Facility to the extent necessary to make the same reasonably tenantable. Should Acres elect to
restore the Facility, this Agreement shall continue in full force and effect and MJNE shall have no claim against Acres for the
value of any interrupted portion of this Agreement.

 

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(b) In
the event of any condemnation or taking, total or partial, MJNE shall not be entitled to any part of the aware of price paid in
lieu thereof. MJNE hereby expressly waives any right or claim to any part thereof, and Acres shall receive the full amount of such
aware of price.

 

15. Insurance.

 

15.1 Liability
Insurance. During the Term, MJNE shall maintain a policy of commercial general liability insurance (sometimes known as
broad form comprehensive general liability insurance) insuring MJNE against liability for bodily injury, property damage (including
loss of use of property) and personal injury arising out of the operation, use or occupancy of the MJNE Facility. MJNE shall name
Acres as an additional insured under such policy. The initial amount of such insurance shall be One Million- and 00/100-U.S. Dollars
(US$1,000,000.00) per occurrence. The amount and coverage of such insurance shall not limit MJNE’s liability nor relieve
MJNE of any other obligation under this Agreement. Acres may also obtain comprehensive public liability insurance in an amount
and with coverage determined by Acres insuring Acres against liability arising out of ownership, operation, use or occupancy of
the MJNE Facility. The policy obtained by Acres shall not be contributory and shall not provide primary insurance.

 

15.2 Payment
of Premiums. During the Term, MJNE shall maintain policies of insurance covering loss of or damage to the MJNE Facility
in the full amount of its replacement value and such policies shall name Acres as an additional insured. Acres shall have the right
to obtain flood and earthquake insurance if required by any lender holding a security interest in the MJNE Facility. Acres may,
but shall not be obligated, to obtain insurance for building improvements installed by MJNE on the MJNE Facility. Acres shall not
maintain insurance for MJNE’s fixtures or equipment.

 

15.3 General
Insurance Provisions.

 

(a) Any
insurance which MJNE is required to maintain under this Agreement shall include a provision which requires the insurance carrier
to give Acres not less than thirty (30) days’ written notice prior to any cancellation or modification of such coverage.

 

(b) If
MJNE fails to deliver any policy, certificate or renewal to Acres required under this Agreement within the prescribed time period
or if any such policy is canceled or modified during the Term without Acres’ consent, Acres may obtain such insurance, in
which case MJNE shall reimburse Acres for the cost of such insurance within thirty (30) days after receipt of a statement that
indicates the cost of such insurance.

 

(c) MJNE
shall maintain all insurance required under this Agreement with companies holding a “General Policy Rating” of A+ or
better, as set forth in the most current issue of “Best Key Rating Guide”. Acres and MJNE acknowledge the insurance
markets are rapidly changing and that insurance in the form and amounts described in this Section may not be available in the future.
MJNE acknowledges that the insurance described in this Section is for the primary benefit of Acres. If at any time during the Term,
MJNE is unable to maintain the insurance required under the Agreement, MJNE shall nevertheless maintain insurance coverage which
is customary and commercially reasonable in the insurance industry for MJNE’s type of business, as that coverage may change
from time to time. Acres makes no representation as to the adequacy of such insurance to protect Acres’ or MJNE’s interests.
Therefore, MJNE shall obtain any such additional property or liability insurance which MJNE deems necessary to protect Acres and
MJNE.

 

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16. Miscellaneous.

 

16.1 Further
Assurances. Upon a Party’s reasonable request, the other Party shall, at its sole cost and expense, execute and deliver
all such further documents and instruments, and take all such further acts, necessary to give full effect to this Agreement.

 

16.2 Entire
Agreement. This Agreement, including and together with any related exhibits, schedules, constitutes the sole and entire
agreement of the Parties with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous
understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

 

16.3 Survival.
Subject to the limitations and other provisions of this Agreement: (a) the representations and warranties of the Parties contained
herein will survive the expiration or earlier termination of this Agreement; and (b) Sections 10, 11, 12, 13, 14, 15 of this Agreement,
as well as any other provision that, in order to give proper effect to its intent, should survive such expiration or termination,
will survive the expiration or earlier termination of this Agreement.

 

16.4 Notices.
All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a “Notice”)
must be in writing and addressed to the other Party at its address set forth below (or to such other address that the receiving
Party may designate from time to time in accordance with this Section). All Notices must be delivered by personal delivery, nationally
recognized overnight courier or certified or registered mail (in each case, return receipt requested, postage prepaid). Except
as otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the receiving Party, and (b) if the Party
giving the Notice has complied with the requirements of this Section.

 

Notice to Acres:

 

Acres Cultivation, LLC

2325 Western Avenue, Suite 12

Las Vegas, NV 89102

Email: john@acrescannabis.com

 

Notice to MJNE:

 

MJ Holdings, Inc

1300 S Jones Blvd., 2nd
Floor

Las Vegas, NV 89146

Email: terry@mjholdingsinc.com

 

16.5 Interpretation.
For purposes of this Agreement: (a) the words “include,” “includes” and “including” is deemed
to be followed by the words “without limitation”; (b) the word “or” is not exclusive’·(c)
the words “herein” “hereof’” “here” “hereto” and “hereunder”
refer to this Agreement as a whole; (d) words denoting the singular have a comparable meaning when used in the plural, and vice-versa;
and (e) words denoting any gender include all genders. Unless the context otherwise requires, references in this Agreement: (x)
to sections, exhibits, schedules, attachments and appendices mean the sections of, and exhibits, schedules, attachments and appendices
attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document
as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute
means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated
thereunder. The Parties drafted this Agreement without regard to any presumption or rule requiring construction or interpretation
against the Party drafting an instrument or causing any instrument to be drafted. The exhibits, schedules, attachments and appendices
referred to herein are an integral part of this Agreement to the same extent as if they were set forth verbatim herein.

 

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16.6 Headings.
The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.

 

16.7 Severability.
If any term, clause, or provision hereof is held invalid or unenforceable by a court of competent jurisdiction, such invalidity
shall not affect the validity or operation of any other term, clause, or provision and such invalid term, clause, or provision
shall be deemed to be severed from the Agreement. Upon a determination that any term, clause or provision is invalid, illegal or
unenforceable, the Parties shall negotiate in good faith to modify this Agreement to affect the original intent of the Parties
as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest
extent possible.

 

16.8 Amendment
and Modification. No amendment to or rescission, termination or discharge of this Agreement is effective unless it is in
writing and signed by an authorized Representative of each Party.

 

16.9 Waiver.

 

(a) No
waiver under this Agreement is effective unless it is in writing and signed by an authorized representative of the Party waiving
its right.

 

(b) Any
waiver authorized on one occasion is effective only in that instance and only for the purpose stated and does not operate as a
waiver on any future occasion.

 

(c) None
of the following constitutes a waiver or estoppel of any right, remedy, power, privilege or condition arising from this Agreement:

 

(i) any
failure or delay in exercising any right, remedy, power or privilege or in enforcing any condition under this Agreement; or

 

(ii) any
act, omission or course of dealing between the Parties.

 

16.10 Cumulative
Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either
Party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available
at law, in equity, by statute, in any other agreement between the Parties or otherwise.

 

16.11 Equitable
Remedies. Each Party acknowledges and agrees that (a) a breach or threatened breach by a Party of any of its obligations
under Sections 11, 12 or 13 would give rise to irreparable harm to the other Party for which monetary damages would not be an adequate
remedy and (b) in the event of a breach or a threatened breach by a Party of any such obligations, the other Party shall, in addition
to any and all other rights and remedies that may be available to the non-breaching Party at law, at equity or otherwise in respect
of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and
any other relief that may be available from a court of competent jurisdiction, without any requirement to post a bond or other
security, and without any requirement to MJNE actual damages or that monetary damages will not afford an adequate remedy. Each
Party agrees that it will not oppose or otherwise challenge the appropriateness of equitable relief or the entry by a court of
competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this Section 16.11.

 

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16.12 Exculpation.
MJNE hereby unconditionally and irrevocably waives any and all claims and causes of action of any nature whatsoever it may now
or hereafter have against any of the members, managers, directors, officers, agents and employees of Acres and any of its parent,
subsidiaries and affiliated companies (collectively, the “Acres Group”) and hereby unconditionally and irrevocably
releases and discharges the Acres Group from any and all liability whatsoever which may now or hereafter accrue in favor of MJNE
against the Acres Group, in connection with or arising out of this Agreement. Manager agrees to look solely to Acres and its interest
in the Facility for the satisfaction of any liability or obligation arising under this Agreement or for the performance of any
of the covenants, warranties or other agreements contained herein. The provisions of this Section shall survive the expiration
or prior termination of this Agreement.

 

16.13 Assignment.
MJNE shall not, without the express prior written consent of Acres in each instance, Transfer this Agreement or any interest under
it (in whole or in part, directly or indirectly) or permit the use or occupancy of MJNE’s Facility or any part thereof for
any purpose other than as permitted hereunder or by anyone other than MJNE, nor shall MJNE permit a change to the operation or
theme of MJNE’s Facility. For purposes hereof, term “Transfer” means an assignment, transfer, sublease,
license, or other encumbrance, disposition or conveyance (voluntarily, by operation of law or otherwise) of this Agreement or MJNE’s
Facility or any interest in this Agreement or MJNE’s Facility. The term “Transfer” also includes, without
limitation, any assignment, transfer or other encumbering or disposal (voluntarily, by operation of law or otherwise) of any or
all of the direct or indirect ownership interests in MJNE. Notwithstanding the foregoing, the operation of MJNE’s Facility
by any subsidiary of MJNE shall be permitted hereunder.

 

16.14 Successors
and Assigns. This Agreement is binding on and inures to the benefit of the Parties and their respective permitted successors
and permitted assigns.

 

16.15 No
Third-Party Beneficiaries. This Agreement benefits solely the Parties to this Agreement and their respective permitted
successors and permitted assigns and nothing in this Agreement, express or implied, confers on any other Person any legal or equitable
right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

16.16 
Arbitration. The Parties hereto agree that any dispute concerning or arising out of the provisions of this Agreement
shall be resolved by arbitration in accordance with the rules of the American Arbitration Association. Such arbitration shall be
held in Clark County, Nevada, and the decision of the arbitrator(s) shall be conclusive and binding on the parties and shall be
enforceable in any court of competent jurisdiction. The arbitrator may, in his or her discretion, award attorneys’ fees and
costs to such party as he or she sees fit in rendering his or her decision.

 

16.17 Governing
Law. This Agreement, including all exhibits, schedules, attachments and appendices attached hereto and thereto, and all
matters arising out of or relating to this Agreement, are governed by, and construed in accordance with, the Laws of the State
of Nevada, United States of America, without regard to the conflict of laws provisions thereof.

 

16.18 Counterparts.
This Agreement may be executed and sent by facsimile machine, email, or other form of electronic transmission or reproduction,
in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument.

 

16.19 Force
Majeure. Neither Party shall not be liable for any delay in performance due to force majeure, including strikes, civil
disturbances, war, accidents, acts of God, or other delays beyond the control of Licensee If timely performance of any obligation
of Licensee is prevented by any cause of force majeure, or any act of Licensor, then such failure or delay shall not constitute
a default.

 

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16.20 Cross-Default
Provision. Any breach or default under this Agreement shall also constitute a breach or default under the Consulting Agreement
and the Equipment Lease, and any breach or default under the Consulting Agreement or the Equipment Lease shall constitute a breach
or default under this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties hereto have
executed this Agreement as of the January 16, 2019.

 

	 	MJ HOLDINGS, INC.:
	 	 	 
	 	By:	/s/ Terrence M. Tierney
	 	Name:	Terrence M. Tierney
	 	Title:	Corporate Secretary/CAO
	 	 	 
	 	ACRES:
	 	 	 
	 	By:	/s/ John Mueller
	 	Name:	John Mueller
	 	Title:	Manager

 

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SCHEDULE 1

GOODS

 

Dried marijuana product
in bulk or smaller packaging

 

Wet marijuana product
in bulk

 

All pricing shall be
dependent on market conditions and shall be approved by MJNE prior to any sale of Goods by Acres. MJNE shall not direct Acres to
sell any Goods below fair market value to an Affiliate of MJNE or any other party related to MJNE.

 

     

     

    

 

EXHIBIT A

CONSULTING AGREEMENT

 

THIS CONSULTING
AGREEMENT (this “Agreement”) is made as of the 1st day of January 2019, by and between Acres Cultivation
LLC, a Nevada limited liability company (the “Company”), and MJ Holdings, Inc. (and its subsidiaries), a publicly
traded Nevada corporation (collectively the “Consultant”).

 

1. Consulting
Relationship. During the term of this Agreement, Consultant will provide consulting services to the Company as described
on Exhibit 1 attached hereto (the “Services”). Consultant represents that Consultant has the qualifications,
the experience and the ability to properly perform the Services. Consultant shall use Consultant’s best efforts to perform
the Services such that the results are satisfactory to the Company.

 

2. Fees.
As consideration for the Services to be provided by Consultant and other obligations, the Company shall pay to Consultant the Distributable
Commission derived from the wholesale of the “Goods” (as defined in the related Cultivation and Sales Agreement
to which this Agreement is attached, i.e., the “CSA”) (the “Fee”). The first payment of this
Fee shall occur on the 10th day after the month that a first sale of Goods occurs. All subsequent payments shall be made monthly
on the tenth (10th) business day following the end of the month. As used herein, the term “Distributable Commission”
shall mean the actual Net Revenue multiplied by Sixty percent (60%) generated from the wholesale of the Goods and realized by Company,
less (i) any amounts owed by Consultant to Company, including, without limitation, fees and costs associated with agreed-upon services;
(ii) any known or unknown fees and expenses payable to third parties (it being understood, acknowledged and agreed by Consultant
that Company shall have no liability or responsibility for third-party costs associated with the sale, collection or cost of the
Goods; and (iii) Company’s employment expenses, including, without limitation, W-2 related expenses associated with the Goods.
A sample worksheet detailing the reimbursements and calculations is attached hereto as Exhibit 2. The Company shall keep
separate books and records relating to the sale of the Goods, as though the cultivation, processing and wholesale of the goods
were a stand-alone business of the Company. Prior to Consultant generating positive Distributable Commission, Consultant shall
advance to Company any funds required to produce the Goods.

 

3. Term
and Termination. Consultant shall serve as a consultant to the Company for a period commencing on the April 18th,
2018 and shall thereafter continue for Eight (8) years (the “Term”).

 

Upon termination of
the CSA, to which this Agreement is attached, either party may terminate this Agreement. Within forty-five (45) business days following
the termination of this Agreement, Company agrees to pay any amounts due to Consultant for the preceding month.

 

4. Independent
Contractor. Consultant’s relationship with the Company will be that of an independent contractor and not that of
an employee.

 

5. Method
of Provision of Services. Consultant shall be solely responsible for determining the method, details and means of performing
the Services. Consultant may, at Consultant’s own expense, employ or engage the services of such subcontractors, partners
or agents, as Consultant deems necessary to perform the Services (collectively, the “Independent Contractors”). The
Independent Contractors are not and shall not be employees of the Company, and Consultant shall be wholly responsible for compensation
of any Independent Contractors and for the professional performance of the Services by the Independent Contractors such that the
results are satisfactory to the Company. Consultant, Consultant’s employees, agents and Independent Contractors who provide
services on Company’s premises will be required to obtain and maintain agent cards (“Agent Cards”) issued
by the DOT (as defined in the CSA). Any Consultant or Independent Contractor that would be perceived by the Internal Revenue Service
or the State of Nevada as meeting the criteria of being considered an employee of the Company shall no longer be utilized as a
Consultant or Independent Contractor and must be presented to the Company for potential employment with Acres. Notwithstanding
anything to the contrary contained herein, if Company reasonably believes that the continuation of employment of any Consultant
employee, agent or Independent Contractor would be detrimental to the Company’s privileged license, Company may prohibit
any such employee, agent or Independent Contractor from entering Company’s premises or providing services to the Company
hereunder.

 

     

     

    

 

6. No
Benefits. Consultant acknowledges and agrees that Consultant and its Independent Contractors shall not be eligible for
any Company employee benefits and, to the extent Consultant otherwise would be eligible for any Company employee benefits but for
the express terms of this Agreement, Consultant (on behalf of itself and its employees) hereby expressly declines to participate
in such Company employee benefits.

 

7. Withholding;
Indemnification. Consultant shall have full responsibility for applicable withholding taxes for all compensation paid to
Consultant or its Independent Contractors under this Agreement, and for compliance with all applicable labor and employment requirements
with respect to Consultant’s self-employment, sole proprietorship or other form of business organization, and with respect
to the Independent Contractors, including state worker’s compensation insurance coverage requirements and any U.S. immigration
visa requirements. Consultant agrees to indemnify, defend and hold the Company harmless from any liability for, or assessment of,
any claims or penalties with respect to such withholding taxes, labor or employment requirements, including any liability for,
or assessment of, withholding taxes imposed on the Company by the relevant taxing authorities with respect to any compensation
paid to Consultant or its Independent Contractors.

 

8. Supervision
of Consultant’s Services. All of the services to be performed by Consultant, including but not limited to the Services,
will be as agreed between Consultant and the Company. Consultant will be required to report to the Company’s Manager concerning
the Services performed under this Agreement. The nature and frequency of these reports will be left to the discretion of the Parties,
but in any event shall occur not less frequently than monthly.

 

9. Conflicts
with this Agreement. Consultant represents and warrants that neither Consultant nor any of the Independent Contractors
is under any pre-existing obligation in conflict or in any way inconsistent with the provisions of this Agreement.

 

10. Privileged
License. Consultant acknowledges that the Company has been issued licenses by governmental authorities that allow for the
Company to own and operate marijuana establishments in compliance with the laws of the State of Nevada (the “Privileged
License”) and will be subject the regulations surrounding such Privileged Licenses. If requested to do so by the Company,
Consultant shall use its best efforts to obtain any license, qualification, clearance or the like (including, without limitation,
Agent Card(s)) which shall be required of Consultant by any regulatory authority having jurisdiction over the Company. In the event
Consultant determines complying with the obligations imposed by the preceding sentence is not economically feasible, Consultant
may terminate this Agreement by providing written notice to the Company. Moreover, if: (i) Consultant fails to obtain the requisite
license, qualification, or clearance necessary to satisfy the requirements of this Section; (ii) the Company is directed to cease
business with Consultant by any such regulatory authority; or (iii) the Company acting in good faith determines, in the Company’s
sole and exclusive judgment, that Consultant or any of Consultant’s agents, designees or representatives (a) is engaged in
any activity or activities that reasonably jeopardize, the Company’s business or such Privileged Licenses, or (b) if any
such Privileged Licenses is reasonably threatened to be, or is, denied, curtailed, suspended or revoked, and (d) if Consultant
refuses or fails to cure the violation of subsection(s) (a), or (b), within a reasonable period of time, then the Company shall
have the right under this Section to terminate this Agreement by providing written notice to Consultant.

 

     

     

    

 

11. Miscellaneous.

 

11.1 Governing
Law. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the
laws of the state of Nevada, without giving effect to principles of conflicts of law.

 

11.2 Confidential
Arbitration. The Parties hereto agree that any dispute concerning or arising out of the provisions of this Agreement shall
be resolved by confidential arbitration in accordance with the rules of the American Arbitration Association. Such confidential
arbitration shall be held in Clark County, Nevada, and the decision of the arbitrator(s) shall be conclusive and binding on the
parties and shall be enforceable in any court of competent jurisdiction. The arbitrator may, in his or her discretion, award attorneys’
fees and costs to such party as he or she sees fit in rendering his or her decision.

 

11.3 Entire
Agreement. This Agreement along with the CSA to which this Agreement is attached, sets forth the entire agreement and understanding
of the parties relating to the subject matter herein and supersedes all prior or contemporaneous discussions, understandings and
agreements, whether oral or written, between them relating to the subject matter hereof.

 

11.4 Amendments
and Waivers. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall
be effective unless in writing signed by the parties to this Agreement. No delay or failure to require performance of any provision
of this Agreement shall constitute a waiver of that provision as to that or any other instance.

 

11.5 Successors
and Assigns. Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties
hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators
and legal representatives. The Company may assign any of its rights and obligations under this Agreement. No other party to this
Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except
with the prior written consent of the Company.

 

11.6 Notices.
All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (a “Notice”)
must be in writing and addressed to the other Party at its address set forth in the CSA (or to such other address that the receiving
Party may designate from time to time in accordance with this Section). All Notices must be delivered by personal delivery, nationally
recognized overnight courier or certified or registered mail (in each case, return receipt requested, postage prepaid). Except
as otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the receiving Party, and (b) if the Party
giving the Notice has complied with the requirements of this Section.

 

     

     

    

 

11.7 Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such
provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted
as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

 

11.8 Construction.
This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel,
if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed
in favor of or against any one of the parties hereto.

 

11.9 Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original,
and all of which together shall constitute one and the same agreement. Execution of a facsimile copy will have the same force and
effect as execution of an original, and a facsimile signature will be deemed an original and valid signature.

 

11.10 Cross-Default
Provision. Any breach or default under this Agreement shall also constitute a breach or default under the CSA and the Equipment
Lease (as defined in the CSA), and any breach or default under the CSA or the Equipment Lease shall constitute a breach or default
under this Agreement.

 

11.11 Nevada
Authority. Acres shall be responsible to the DOT for all acts, omissions and civil penalties associated with operation and business
of the Facility. Any payments made to the DOT, which were caused as a result of negligence by MJNE shall be immediately reimbursed
to Acres, provided that MJNE has been given prior notice of the alleged violation by Acres and has been provided a reasonable opportunity
to cure.

 

[Signature Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement as of the date first above written.

 

	THE COMPANY:	CONSULTANT:
	 	 
	ACRES CULTIVATION, LLC	MJ Holdings, Inc.

 

	By:	/s/ John Mueller	 	By:	/s/ Terrence M. Tierney
	Name:	John Mueller	 	Name:	Terrence M. Tierney
	Title:	Manager	 	Title:	Corporate Secretary/CAO

 

     

     

    

 

EXHIBIT 1

DESCRIPTION OF CONSULTING SERVICES

 

1. Consult
with Company specializes in the cultivation, drying, packaging, and selling the Goods;

 

2. Assist
in the marketing, sale, advertising and promotion of the Goods;

 

3. Develop,
with input from the Company, a unique strains and breeding program.

 

4. Assist
in accepting and processing purchase orders for the Goods;

 

5. Quality
control and product review related to the Goods;

 

6. Customer
service related to the Goods;

 

7. Assist
in purchase and sourcing of all materials used in producing the Goods;

 

8. Assist
in inventory management related to the Goods;

 

9. Processing
of accounts receivable related to the Goods;

 

10. Business
development consulting services; and

 

11. Other
such duties as may be mutually agreed to, in writing, by Consultant and the Company from time to time.

 

     

     

    

 

EXHIBIT 2

SAMPLE WORKSHEET

 

In calculating the
Fee to be paid to Consultant pursuant to the Consulting Agreement the term “Distributable Commission” shall
mean the total Net Revenue multiplied by sixty (60%) percent generated from the wholesale of the Goods subject to the following
adjustments:

 

Current Period [Start Date] to [End Date]

 

COLLECTED REVENUES

 

Product 1

Product 2

Product 3

Product 4

 

Deduction for all Taxes and Fees

 

TOTAL NET REVENUES (multiplied by 60%)

 

COST OF GOODS (COGS)

 

Deduction for fines from DOT caused by MJNE

 

Deduction for Bad Debt, Recalls or Returns

 

Deduction for Testing

 

Deduction for all employee costs, including
but not limited to, employer portion of taxes

 

Deduction for Utilities, as defined in the
CSA

 

Deduction for Distribution and Transportation
Costs

 

Deduction for all insurance costs associated
with MJNE

 

Deduction for all Cost of Goods items required
to produce and sell the Goods

 

Deduction for any other expenses incurred
by Acres directly associated with the Goods.

 

	TOTAL COST OF GOODS SOLD GROSS PROFIT (LOSS)	 

 

OPERATING EXPENSES

 

Deduction for Compliance and Security at Seven Thousand and
00/100 Dollars ($7,000.00) per Month (starting on the month MJNE’s Facility receives Certificate of Occupancy from Nye County,
receipt of which is hereby acknowledged).

 

	TOTAL OPERATING EXPENSES PROFIT (LOSS)	 
	Distributable Commission	 

 

     

     

    

 

EXHIBIT B

 

EQUIPMENT LEASE AGREEMENT

 

This EQUIPMENT LEASE
AGREEMENT (the “Agreement” or “Lease Agreement”), dated as of January 1, 2019 is by and between
MJ Holdings, Inc., (its wholly owned subsidiaries) a Nevada Corporation, (the “Lessor”), and Acres Cultivation,
LLC, a Nevada limited liability company, (the “Lessee”). Lessor and Lessee may collectively be referred to herein
as, “Parties”, or individually as, “Party”.

 

RECITALS

 

WHEREAS, Lessor is
in the business of leasing cannabis cultivation and manufacturing equipment and related parts, accessories, and replacement of
such equipment (the “Business”);

 

WHEREAS, Lessor, as
“MJNE”, and Lessee, as “Acres”, have entered into that certain Cultivation and Sales Agreement of even
date herewith and to which this Agreement is attached (the “CSA”);

 

WHEREAS, Lessee desires
to lease from Lessor, and Lessor desires to lease to Lessee the equipment more specifically described in this Agreement;

 

NOW, THEREFORE, in
consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1. Lease.
Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the equipment described more fully and set forth in Schedule
A, which is attached hereto and incorporated by reference herein (the “Equipment”).

 

2. Operation.
Lessee shall not remove the Equipment from the address specified on Schedule A without the prior written approval of Lessor.
Lessee shall allow Lessor to enter Lessee’s premises at all reasonable times to locate and inspect the state and condition
of the Equipment; provided, however, that any access of Lessee’s premises by Lessor shall comply with all applicable Laws
(as defined in the CSA) governing Lessee and Lessee’s business at the premises. Lessor shall provide to Lessee reasonable
advance notice of Lessor’s desire to enter Lessee’s premises and shall cooperate with Lessee in order to comply with
all such applicable laws, rules and regulations. Lessee shall, keep and maintain the Equipment in a good state of repair, normal
wear and tear excepted, and shall use the Equipment only for its intended purpose and follow Lessor’s instructions regarding
the use of the Equipment. Lessee, its employees and/or its agents will (a) operate the Equipment in a professional manner, (b)
only use properly trained and qualified personnel to operate the Equipment, (c) operate the Equipment safely and properly, (d)
operate the Equipment in accordance with the best practices in the industry and all applicable laws, regulations, and/or ordinances,
and (e) allow any maintenance or service required or recommended under the applicable maintenance service contract, if any. Subject
to the provisions of that certain Consulting Agreement between Lessor and Lessee of even date herewith, Lessee is solely responsible
for all required and scheduled maintenance for the Equipment and Lessee’s expense, unless otherwise covered by the manufacturer’s
warranty.

 

     

     

    

 

3. Lease
and Costs.

 

3.1 Lease.
In consideration of Lessee’s right to possess and use the Equipment during the Term (as defined in Section 8), Lessee shall
pay the fee at the rate specified in Schedule A (the “Fee”), on the tenth day of each calendar month during
the Term, after any mutual agreed upon set-off, offset, abatement or deduction. Lessee shall pay interest on all late payments
at the rate of one and one-half percent (1.5%) per month. Lessee shall reimburse Lessor for all costs incurred in collecting any
late payments, including, without limitation, attorneys’ fees. Payment of any late charge does not excuse Lessee of any default
under this Agreement.

 

Upon the expiration
of the Term or prior termination of this Agreement, Lessee shall have the option of buying the leased Equipment for the sum of
One and 00/100 Dollar ($1.00) in an “as-is” condition.

 

3.2 Transportation
Costs. Lessor shall be responsible for the transportation, including all costs of transportation, of Equipment. Delivery and transfer
of risk of loss of the Equipment shall occur at the time and place that Lessee or its duly authorized representative takes possession
of the Equipment.

 

3.3 Equipment
Installation. Lessor shall be responsible for fully installing the Equipment with all capabilities to cultivate and process marijuana
in accordance with all applicable Laws, including, without limitation, Chapters 453A and 453D of NRS 453A and 453D. Lessor shall
be responsible for insuring Equipment remains operable throughout the Term.

 

3.4 Performance
Guaranty. Lessor has previously deposited Three Hundred Thousand and 00/100 Dollars ($300,000.00) with Lessee to guaranty the performance
of the installation of the Equipment.

 

3.5 Right
to Offset. Lessee shall have the right to offset the Fee in the exact amount of any deficit in Distributable Income as defined
in the CSA.

 

4. Limited
Warranty. Lessor shall replace or repair the Equipment with similar Equipment if the Equipment fails to operate. Such repair or
replacement shall be made as soon as practicable after Lessee provides written notification.

 

OTHER THAN AS SET FORTH
ABOVE, LESSOR MAKES NO WARRANTY WHATSOEVER, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE; (c) WARRANTY AGAINST INTERFERENCE; OR (d) WARRANTY AGAINST INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADEMARK, TRADE SECRET
OR OTHER PROPRIETARY RIGHTS OF A THIRD PARTY; WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE
OR OTHERWISE.

 

     

     

    

 

5. Title
and Risk of Loss. Title to the Equipment remains with Lessor throughout the Term, and, except for Lessee’s option to purchase
the Equipment hereunder, Lessee shall acquire no right, title or interest in the Equipment. Lessee or Lessor shall not pledge or
encumber the Equipment in any way. Lessor shall bear all risk of loss, damage, destruction, theft and condemnation to or of the
Equipment from any cause whatsoever (the “Loss”). Lessee shall notify Lessor in writing within ten (10) days
of any such Loss.

 

5.1 Purchase
Option. Upon the expiration of the Term or prior termination of this Agreement, Lessee shall have the option to purchase the Equipment
from Lessor for One and 00/100 Dollar ($1.00), in accordance with Section 3.1, above, provided that Lessee provides written notice
to Lessor of its decision to exercise its option to purchase the Equipment no later than thirty (30) days prior to the expiration
of the Term. In the event of a prior termination of this Agreement, Lessee may give such notice within and up to thirty (30) days
following such termination. The Parties hereto shall execute and deliver all documents, provide all information and take or forbear
from all such action as may be necessary or appropriate to achieve the purposes of this Agreement, including, without limitation,
the delivery of a bill of sale acceptable to Lessee with respect to its purchase of the Equipment from Lessor.

 

6. Compliance
with Law. Lessee shall (a) comply with all applicable Laws, and (b) maintain in effect all the licenses, permissions, authorizations,
consents and permits that it needs to carry out its obligations under this Agreement.

 

7. Insurance.
During the term of this Agreement, Lessor shall, at its own expense, maintain and carry insurance in full force and effect which
includes, but is not limited to, commercial general liability insurance in a sum no less than One Million and 00/100 Dollars ($1,000,000.00)
with financially sound and reputable insurers. Upon Lessee’s request, Lessor shall provide Lessee with a certificate of insurance
from Lessor’s insurer evidencing the insurance coverage specified in this Agreement. The certificate of insurance shall name
Lessee as an additional insured. Lessor shall provide Lessee with ten (10) days’ advance written notice in the event of a
cancellation or material change in Lessee’s insurance policy. Except where prohibited by law, Lessor shall require its insurer
to waive all rights of subrogation against Lessee’s insurers and Lessee.

 

8. Term
and Termination. The term of this Agreement commences on the date of this Agreement and continues for a period of Eight (8) years,
unless and until earlier terminated as provided under this Agreement (the “Term”). In addition to any remedies
that may be provided in this Agreement, either Party may terminate this Agreement with immediate effect upon notice to the other
party, if the other party: (i) fails to pay any amount when due under this Agreement, and such failure continues for ten (10) days
after the other party’s receipt of notice of nonpayment; (ii) has not otherwise performed or complied with any material terms
of this Agreement; (iii) becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings
relating to bankruptcy, receivership, reorganization or assignment for the benefit of creditors; (iv) terminates the Consulting
Agreement entered into between the Lessor and Lessee; or (v) in the event Lessee fails to operate the Equipment within one hundred
eighty (180) days after installation by Lessor.

 

     

     

    

 

8.1 Termination.
Upon a permitted termination by Lessor or Lessee, Lessee shall pay Lessor the sum of one hundred twenty percent (120%) of the original
cost of the Equipment, less fifty percent (50%) of the any Lease payments made by Lessee. Such amount shall be paid by Lessee in
twelve (12) monthly equal installments, with the first such installment being due and payable on the first (1st) day
of the month following the first full month following such permitted termination.

 

9. Taxes.
Lessor shall pay for any or all sales, use, personal property and any other taxes, fees, permits, licenses, or any other similar
charges of any kind that might apply, or might be assessed now or later, in connection with Lessee’s use of the Equipment.

 

10. Entire
Agreement. This Agreement, including and together with any related exhibits, schedules, attachments and appendices, constitutes
the sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersedes all prior and
contemporaneous understandings, agreements, representations and warranties, both written and oral, regarding such subject matter.

 

11. Survival.
Subject to the limitations and other provisions of this Agreement, the representations and warranties of the Parties contained
herein shall survive the expiration or earlier termination of this Agreement as well as any other provision that, in order to give
proper effect to its intent, should survive such expiration or termination, shall survive the expiration or earlier termination
of this Agreement.

 

12. Notices.
All notices, requests, consents, claims, demands, waivers, summons and other legal process, and other similar types of communications
hereunder must be in writing and addressed to the relevant Party at the address set forth on Schedule B of this Agreement
(or to such other address that may be designated by the receiving Party from time to time in accordance with this Section 12).
All notices must be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), or certified
or registered mail (in each case, return receipt requested, postage prepaid). A notice is effective only (i) upon receipt by the
receiving Party and (ii) if the Party giving the notice has complied with the requirements of this Section 12.

 

Lessee shall also promptly
notify Lessor of each accident involving the Equipment, including time, place, nature of the accident or damage, and such other
information as may be known, and advise Lessor of all correspondence, papers, notices, and documents received regarding the Equipment.

 

13. Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

14. Amendments.
No amendment to or modification of this Agreement is effective unless it is in writing and signed by an authorized representative
of each Party.

 

     

     

    

 

15. Waiver.
No waiver by any party of any of the provisions of this Agreement shall be effective unless explicitly set forth in writing and
signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising,
any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege.

 

16. Cumulative
Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either Party
of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available
at law, in equity, by statute, in any other agreement between the Parties or otherwise.

 

17. Assignment;
Successors and Assigns. Lessee shall have the right to assign, transfer, delegate or subcontract any of its rights or obligations
under this Agreement without the prior written consent of Lessor. No assignment or delegation shall relieve Lessee of any of its
obligations hereunder. This Agreement is binding on and inures to the benefit of the Parties to this Agreement and their respective
permitted successors.

 

18. No
Third-Party Beneficiaries. This Agreement benefits solely the Parties to this Agreement and their respective permitted successors
and assigns and nothing in this Agreement, express or implied, confers on any other Person any legal or equitable right, benefit
or remedy of any nature whatsoever under or by reason of this Agreement.

 

19. Choice
of Law. This Agreement and all matters arising out of or relating to this Agreement are governed by, and construed in accordance
with, the laws of the State of Nevada, without regard to the conflict of laws of such State.

 

20. Confidential
Arbitration. The Parties hereto agree that any dispute concerning or arising out of the provisions of this Agreement shall be resolved
by confidential arbitration in accordance with the rules of the American Arbitration Association. Such confidential arbitration
shall be held in Clark County, Nevada, and the decision of the arbitrator(s) shall be conclusive and binding on the parties and
shall be enforceable in any court of competent jurisdiction. The arbitrator may, in his or her discretion, award attorneys’
fees and costs to such party as he or she sees fit in rendering his or her decision.

 

24. Limitation
of Liability. IN NO EVENT SHALL LESSEE BE RESPONSIBLE OR LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY,
PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN ALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF ANY PROVISION
OF THIS AGREEMENT, WHETHER OR NOT THE POSSIBILITY OF SUCH DAMAGES HAS BEEN DISCLOSED IN ADVANCE BY LESSOR OR COULD HAVE BEEN REASONABLY
FORESEEN BY LESSOR, REGARDLESS OF THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED, AND
NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. IN NO EVENT SHALL LESSEE’S AGGREGATE
LIABILITY UNDER THIS AGREEMENT EXCEED TWO TIMES THE TOTAL OF THE AMOUNTS PAID TO LESSOR HEREUNDER OR TWENTY-FIVE THOUSAND AND 00/100
DOLLARS ($25,000.00), WHICHEVER IS LESS.

 

     

     

    

 

25. Force
Majeure. Lessor shall not be liable or responsible to Lessee, nor be deemed to have defaulted or breached this Agreement, for any
failure or delay in fulfilling or performing any term of this Agreement when and to the extent such failure or delay is caused
by or results from acts or circumstances beyond the reasonable control of Lessor including, without limitation, acts of God, flood,
fire, earthquake, explosion, governmental actions, war, invasion or hostilities (whether war is declared or not), terrorist threats
or acts, riot, or other civil unrest, national emergency, revolution, insurrection, epidemic, lockouts, strikes or other labor
disputes (whether or not relating to either party’s workforce), or restraints or delays affecting carriers or inability or
delay in obtaining supplies of adequate or suitable materials, materials or telecommunication breakdown or power outage provided
that, if the event in question continues for a continuous period in excess of one hundred eighty (180) days, Lessee shall be entitled
to give notice in writing to Lessor to terminate this Agreement.

 

26. Counterparts.
This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be
one and the same agreement. Notwithstanding anything to the contrary in Section 12, a signed copy of this Agreement delivered by
facsimile, email or other means of electronic transmission is deemed to have the same legal effect as delivery of an original signed
copy of this Agreement.

 

27. Headings.
Headings in this Agreement are for convenience of reference only and are not to be used in any interpretation of the agreement
between the parties.

 

28. Enforcement.
This Agreement shall not be enforceable unless it is (i) signed by Lessor, and (ii) a copy of this fully executed Agreement is
delivered to Lessee.

 

29. Cross-Default
Provision. Any breach or default under this Agreement shall also constitute a breach or default under the CSA and the Consulting
Agreement, and any breach or default under the CSA or the Consulting Agreement shall constitute a breach or default under this
Agreement.

 

[Signatures on the following page.]

 

     

     

    

 

IN WITNESS WHEREOF, the Parties hereto have
executed this Agreement as of the date first above written.

 

	LESSEE:	LESSOR:
	 	 
	ACRES CULTIVATION, LLC	MJ Holdings, Inc.

 

	By:	/s/ John Mueller	 	By:	/s/ Terrence M. Tierney
	Name:	John Mueller	 	Name:	Terrence M. Tierney
	Title:	Manager	 	Title:	Corporate Secretary/CAO

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