SEC Contract Filing

Filing Date: 2016-07-21

Document Content:
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<TYPE>EX-10.7
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<FILENAME>ex10-7.htm
<DESCRIPTION>EX-10.7
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<div style="FONT-WEIGHT: bold; TEXT-ALIGN: right">Exhibit 10.7</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt"><u>WAIVER</u></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">This WAIVER (this &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Waiver</u></font>&#8221;) is made and entered into as of July 15, 2016, by and between SMG Growing Media, Inc., an Ohio corporation having its principal place of business at 14111 Scottslawn Road, Marysville, Ohio 43041 (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Investor</u></font>&#8221;), and AeroGrow International, Inc., a Nevada corporation having its principal place of business at 6075 Longbow Dr., Suite 200, Boulder, Colorado 80301 (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>AeroGrow</u></font>&#8221;).&#160; The Investor and AeroGrow are sometimes referred to herein collectively as the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Parties</u></font>&#8221; and individually as a &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Party</u></font>.&#8221;</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">WHEREAS, the Parties are parties to that certain Securities Purchase Agreement, dated as of April 22, 2013 (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Purchase Agreement</u></font>&#8221;), pursuant to which the Investor purchased shares of the Company&#8217;s Series B Convertible Preferred Stock, par value $0.001 per share;</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">WHEREAS, in conjunction with the execution of the Purchase Agreement, the Company filed a Certificate of Designations of Series B Convertible Preferred Stock with the Secretary of State of the State of Nevada on April 19, 2013 (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Certificate of Designations</u></font>&#8221;);</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">WHEREAS, the Parties are parties to that certain Investor Rights Agreement, dated as of April 22, 2013 (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Investor Rights Agreement</u></font>&#8221;);</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">WHEREAS, the Company intends to enter into a series of transactions with the Investor and its affiliates on or about the date hereof, including the execution of: (i) that certain Second Amendment to Warrant to Purchase Shares of Common Stock between the Parties; (ii) that certain Second Amendment to Technology License Agreement between OMS Investments, Inc., a Delaware corporation (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>OMS</u></font>&#8221;), and the Company; (iii) that certain Second Amendment to Brand License Agreement between OMS and the Company; (iv) that certain First Amendment to Supply Chain Services Agreement among The Scotts Company LLC, an Ohio limited liability company (&#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Scotts</u></font>&#8221;), OMS and the Company; (v) that certain First Amendment to Collaboration Services Agreement among Scotts, OMS and the Company (the documents referred to in clauses (i) through (v), collectively, the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Amendments</u></font>&#8221;); and (vi) that certain Term Loan and Security Agreement between the Parties (the &#8220;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Term Loan</u></font>&#8221;); and</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">WHEREAS, in connection with the execution of the Amendments and the Term Loan and the consummation of the transactions contemplated thereby, the Investor is willing to waive certain provisions of the Certificate of Designations and the Investor Rights Agreement, all subject to the terms and conditions of this Waiver.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties