Common use of Purchase and Sale of Assets Assumption of Liabilities Clause in Contracts

Purchase and Sale of Assets Assumption of Liabilities. Section 2.1 Purchase and Sale of the Project Assets 10 Section 2.2 Excluded Assets 12 Section 2.3 Assumed Liabilities 13 Section 2.4 Excluded Liabilities 13 Section 2.5 Purchase Price 13 Section 2.6 Allocation of Purchase Price; Proration 15 Section 2.7 Withholding 17 Section 2.8 Closing 17 Section 2.9 Sellers' Deliverables 17 Section 2.10 Buyer's Deliverables 19 Section 3.1 Organization and Existence 19 Section 3.2 Authorization 19 Section 3.3 Noncontravention 20 Section 3.4 Governmental Approvals 20 Section 3.5 Absence of Certain Changes or Events 20 Section 3.6 Legal Proceedings 20 Section 3.7 Compliance with Laws; Permits 20 Section 3.8 Title to Project Assets 22 Section 3.9 Assigned Contracts, Master Lease Agreement 22 Section 3.10 Real Property 23 Section 3.11 Environmental Matters 24 Section 3.12 Taxes 24 Section 3.13 Intellectual Property 25 Section 3.14 Credit Support 26 Section 3.15 Affiliate Arrangements 26 Section 3.16 Brokers 26 Section 3.17 Insurance 26 Section 3.18 Data Room 26 Section 3.19 Eminent Domain Property 27 Section 3.20 Eminent Domain License 27 Section 3.21 No Other Representations or Warranties 28 Section 4.1 Organization and Existence 28 Section 4.2 Authorization 28 Section 4.3 Noncontravention 29 Section 4.4 Governmental Approvals 29 Section 4.5 Legal Proceedings 29 Section 4.6 Compliance with Laws 29 Section 4.7 Brokers 29 Section 4.8 No Other Representations or Warranties 30 Section 5.1 Organization and Existence 30 Section 5.2 Authorization 30 Section 5.3 Noncontravention 30 Section 5.4 Governmental Approvals 31 Section 5.5 Compliance with Laws 31 Section 5.6 Legal Proceedings 31 Section 5.7 Brokers 31 Section 5.8 Available Funds 31 Section 5.9 Buyer Ownership, Operations and Maintenance Permits 31 Section 5.10 Information 31

Purchase and Sale of Assets Assumption of Liabilities. EMPLOYEE MATTERS 1 Section 1.1 Purchased Assets 1 Section 1.2 Excluded Assets 1 Section 1.3 Assumed Liabilities; Excluded Liabilities 2 Section 1.4 Electronic Transfer of Certain Assets 2 Section 1.5 Inability to Assign Assigned Contracts 2 ARTICLE II. PURCHASE PRICE AND RELATED MATTERS 3 Section 2.1 Purchase and Sale of the Project Assets 10 Price 3 Section 2.2 Excluded Assets 12 Payment of Purchase Price 3 Section 2.3 Assumed Liabilities 13 Closing Inventory Adjustment Procedures. 4 Section 2.4 Excluded Liabilities 13 Earn-Out 5 Section 2.5 Purchase Price 13 Adjustments 6 Section 2.6 Allocation of Closing Purchase Price 7 Section 2.7 Tax Withholding 8 Section 2.8 Distribution of Purchase Price.. 8 ARTICLE III. CLOSING; Proration 15 Section 2.7 Withholding 17 Section 2.8 Closing 17 Section 2.9 Sellers' Deliverables 17 Section 2.10 Buyer's Deliverables 19 CLOSING CONDITIONS AND DELIVERIES 8 Section 3.1 Organization and Existence 19 Closing 8 Section 3.2 Authorization 19 Conditions to Obligations of Purchaser to Close 8 Section 3.3 Noncontravention 20 Conditions to Obligations of Seller and the Equityholders to Close 10 ARTICLE IV. REPRESENTATIONS AND WARRANTIES 11 Section 3.4 Governmental Approvals 20 4.1 Representations and Warranties Regarding Seller 11 Section 3.5 Absence of Certain Changes or Events 20 Section 3.6 Legal Proceedings 20 Section 3.7 Compliance with Laws; Permits 20 Section 3.8 Title to Project Assets 22 Section 3.9 Assigned Contracts, Master Lease Agreement 22 Section 3.10 Real Property 23 Section 3.11 Environmental Matters 24 Section 3.12 Taxes 24 Section 3.13 Intellectual Property 25 Section 3.14 Credit Support 26 Section 3.15 Affiliate Arrangements 26 Section 3.16 Brokers 26 Section 3.17 Insurance 26 Section 3.18 Data Room 26 Section 3.19 Eminent Domain Property 4.2 Representations and Warranties Regarding Equityholders 27 Section 3.20 Eminent Domain License 27 Section 3.21 No Other 4.3 MMT Parties Representations or and Warranties 28 Section 4.1 Organization and Existence 28 Section 4.2 Authorization 28 Section 4.3 Noncontravention 29 Section 4.4 Governmental Approvals 29 Section 4.5 Legal Proceedings 29 Section 4.6 Compliance with Laws 29 Section 4.7 Brokers 29 Section 4.8 No Other Representations or Warranties ARTICLE V. PRE-CLOSING COVENANTS 30 Section 5.1 Organization and Existence General 30 Section 5.2 Authorization 30 Regulatory and Other Approvals; Notices and Consents 31 Section 5.3 Noncontravention 30 Operation and Preservation of Business 32 Section 5.4 Governmental Approvals 31 Access 33 Section 5.5 Compliance with Laws 31 Exclusivity 33 Section 5.6 Legal Proceedings 31 Confidential Information 34 Section 5.7 Brokers 31 NFP Documents; Permitted NFP Changes. 34 ARTICLE VI. ADDITIONAL COVENANTS 35 Section 5.8 Available Funds 31 6.1 Further Assurances 35 Section 5.9 Buyer Ownership6.2 MMT Party Confidential Information 35 Section 6.3 Customer and Supplier Inquiries; Accounts Receivable 36 Section 6.4 Tax Matters 36 Section 6.5 [RESERVED] 37 Section 6.6 Books and Records 37 Section 6.7 Preservation and Transition of Marijuana Inventory. 38 Section 6.8 Non-Competition and Non-Solicitation 38 Section 6.9 Continuation of Seller Existence 39 Section 6.10 Warranty Claims. 39 Section 6.11 K▇▇▇ Payments. 39 Section 6.12 Legend. 40 ARTICLE VII. CERTAIN REMEDIES 40 Section 7.1 Indemnification Obligations 40 Section 7.2 Indemnification Procedure 41 Section 7.3 Survival 43 Section 7.4 Limitations 44 Section 7.5 Materiality Qualifiers 45 Section 7.6 Exclusive Remedy; Rights to Specific Performance 45 Section 7.7 Recourse 45 Section 7.8 Knowledge and Investigation 46 Section 7.9 Effect of Indemnification Payments 46 Section 7.10 No Right of Contribution or Subrogation 46 Section 7.11 Effect of Officer’s Certificates 46 Section 7.12 References to “Indemnification Obligations” 46 ARTICLE VIII. TERMINATION OF AGREEMENT 47 Section 8.1 Termination Generally 47 Section 8.2 Effect of Termination 47 ARTICLE IX. MISCELLANEOUS 48 Section 9.1 Bulk Sales 48 Section 9.2 Press Releases and Public Announcements 48 Section 9.3 Notices 48 Section 9.4 Interpretation 49 Section 9.5 Counterparts; Electronic Signature 50 Section 9.6 Entire Agreement; Nonassignability; Parties in Interest 50 Section 9.7 Severability 50 Section 9.8 Extension; Waiver; Amendment 50 Section 9.9 Governing Law; Jurisdiction 51 Section 9.10 Waiver of Jury Trial 51 Section 9.11 Expenses 51 Section 9.12 Representative 51 Section 9.13 Attorneys’ Fees. 54 Exhibit A Definitions Exhibit B Form of Bill of Sale Exhibit C Form of Lock-Up Agreement Exhibit D Form of Promissory Note Exhibit E Accounting Principles Exhibit F Call Option Agreement Schedule 1.1 Purchased Assets Schedule 1.2 Excluded Assets Schedule 1.3 Assumed Liabilities Schedule 2.6 Allocation Principles This ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of April 21, Operations 2023 (the “Effective Date”), by and Maintenance Permits 31 Section 5.10 Information 31among Evergreen Holdco, LLC, a New Mexico limited liability company (“Purchaser”), Medicine Man Technologies, Inc. (“Parent” and, together with Purchaser, the “MMT Parties”), Sucellus, LLC, a New Mexico limited liability company (“Seller”), J▇▇▇▇ ▇▇▇▇▇▇▇, B▇▇▇▇ ▇▇▇▇▇▇, W▇▇▇▇▇▇ ▇▇▇▇▇▇▇, A▇▇▇▇▇ ▇▇▇▇▇, and G▇▇▇ ▇▇▇▇▇▇▇▇▇, all natural persons (the “Equityholders”) and B▇▇▇▇ ▇▇▇▇▇▇, as the Representative (the “Representative”). Purchaser, Parent, Seller, and the Equityholders are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” Capitalized terms used but not otherwise defined in this Agreement have the meanings set forth on Exhibit A.

Purchase and Sale of Assets Assumption of Liabilities. Section 2.1 1 1.1 Transactional Overview; Purchase and Sale of Assets. 1 1.2 Retained Assets 4 1.3 Agreement to Assume 5 1.4 Retained Liabilities 6 1.5 Liabilities of the Project Assets 10 Section 2.2 Excluded Assets 12 Section 2.3 Assumed Liabilities 13 Section 2.4 Excluded Liabilities 13 Section 2.5 Transferred Entities 7 1.6 Purchase Price 13 Section 2.6 7 1.7 Purchase Price Adjustment and Treatment of Cash of Transferred Entities 8 ARTICLE II CLOSING; CLOSING DELIVERIES 8 2.1 Closing Date 8 2.2 Effectiveness 9 2.3 Closing Deliveries 9 2.4 Allocation of Purchase PricePrice 11 ARTICLE III REPRESENTATIONS AND WARRANTIES OF HONEYWELL 12 3.1 Due Organization 12 3.2 Authority 12 3.3 Transferred Entities; Proration 15 Section 2.7 Withholding 17 Section 2.8 Closing 17 Section 2.9 Sellers' Deliverables 17 Section 2.10 Buyer's Deliverables 19 Section 3.1 Organization Title to Equity Interests 13 3.4 No Conflict; Government Authorizations and Existence 19 Section 3.2 Authorization 19 Section 3.3 Noncontravention 20 Section 3.4 Governmental Third Party Approvals 20 Section 13 3.5 Financial Statements 14 3.6 Absence of Certain Changes or Events 20 Section 3.6 Changes; Undisclosed Liabilities 15 3.7 Taxes 16 3.8 Intellectual Property 18 3.9 Legal Proceedings 20 Section 3.7 19 3.10 Compliance with Laws; Permits 20 Section 3.8 Title to Project Assets 22 Section 3.9 Assigned Contracts, Master Lease Agreement 22 Section 3.10 Real Property 23 Section 3.11 Environmental Matters 21 3.12 Employee Matters and Benefit Plans 23 3.13 Material Contracts 24 Section 3.12 Taxes 24 Section 3.13 Intellectual 3.14 Customers and Suppliers 25 3.15 Real Properties 25 3.16 Title to Personal Property 25 Section 3.14 Credit Support and Inventory 26 Section 3.15 Affiliate Arrangements 3.17 Sufficiency of Assets 26 Section 3.16 Brokers 3.18 Labor 26 Section 3.17 3.19 Insurance 26 Section 3.18 Data Room 26 Section 3.19 Eminent Domain Property 27 Section 3.20 Eminent Domain License Finder’s Fee 27 Section 3.21 No Warranties 27 3.22 Product Liability 27 3.23 Related Parties Transactions 28 3.24 Receivables 28 3.25 Investment Purpose 28 3.26 Status of Shares; Limitations on Transfer and Other Restrictions 28 3.27 Disclaimer of Other Representations or and Warranties 28 Section 4.1 Organization and Existence 28 Section 4.2 Authorization 28 Section 4.3 Noncontravention 29 Section 4.4 Governmental Approvals 29 Section 4.5 Legal Proceedings 29 Section 4.6 Compliance with Laws 29 Section 4.7 Brokers 29 Section 4.8 No Other Representations or Warranties 30 Section 5.1 Organization and Existence 30 Section 5.2 Authorization 30 Section 5.3 Noncontravention 30 Section 5.4 Governmental Approvals 31 Section 5.5 Compliance with Laws 31 Section 5.6 Legal Proceedings 31 Section 5.7 Brokers 31 Section 5.8 Available Funds 31 Section 5.9 Buyer Ownership, Operations and Maintenance Permits 31 Section 5.10 Information 3128