Common use of PURCHASE AND SALE OF THE Clause in Contracts

PURCHASE AND SALE OF THE. SHARES 1 1.01 Basic Transaction 1 1.02 Purchase and Sale of Shares 1 1.03 The Closing 2 1.04 The Closing Transactions 2 1.05 Purchase Price Adjustments 3 1.06 Withholding Rights 5 ARTICLE II CONDITIONS TO CLOSING 5 2.01 Conditions to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY 7 3.01 Organization and Corporate Power 8 3.02 Subsidiaries 8 3.03 Authorization; No Breach; Valid and Binding Agreement 8 3.04 Capital Stock 9 3.05 Financial Statements 9 3.06 Absence of Certain Developments 10 3.07 Properties 11 3.08 Tax Matters 12 3.09 Contracts and Commitments 13 3.10 Intellectual Property 15 3.11 Litigation 17 3.12 Consents, etc. 17 3.13 Employee Benefit Plans 17 3.14 Insurance 19 3.15 Compliance with Laws; Permits 19 3.16 Environmental Compliance and Conditions 22 3.17 Affiliated Transactions 23 3.18 Employees 23 3.19 Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Warranties 25 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 25 4.01 Organization and Corporate Power 25 4.02 Authorization 26 4.03 No Violation 26 Table of Contents (Continued) Page 4.04 Governmental Authorities; Consents 26 4.05 Litigation 26 4.06 Brokerage 26 4.07 Investment Representation 26 4.08 Financing 27 4.09 Solvency 27

PURCHASE AND SALE OF THE. SHARES 1 1.01 Basic Transaction 1 1.02 Purchase CONVERTIBLE NOTE 2 1.1 Sale and Sale Issuance of Shares 1 1.03 The the Convertible Note 2 1.2 Closing 2 1.04 The Closing Transactions 2 1.05 Purchase Price Adjustments 3 1.06 Withholding Rights 5 ARTICLE II CONDITIONS TO CLOSING 5 2.01 Conditions to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 7 3.01 Organization 2 2.1 Organization, Good Standing and Corporate Power 8 3.02 Subsidiaries 8 3.03 AuthorizationQualification 2 2.2 Authorization 3 2.3 Valid Issuance of the Note Shares and Listing 3 2.4 Capitalization; No Breach; Valid Indebtedness 4 2.5 SEC Reports and Binding Agreement 8 3.04 Capital Stock 9 3.05 Certain Changes 5 2.6 Financial Statements 9 3.06 Absence of Certain Developments 10 3.07 Properties 11 3.08 Tax Matters 12 3.09 and Title to Assets 6 2.7 Contracts 6 2.8 Compliance and Commitments 13 3.10 Permits 6 2.9 Compliance with Other Instruments 7 2.10 Governmental Consents 7 2.11 Litigation 8 2.12 Taxes 8 2.13 Intellectual Property 15 3.11 Litigation 17 3.12 Consents, etc8 2.14 Brokerage 8 SECTION 3. 17 3.13 Employee Benefit Plans 17 3.14 Insurance 19 3.15 Compliance with Laws; Permits 19 3.16 Environmental Compliance and Conditions 22 3.17 Affiliated Transactions 23 3.18 Employees 23 3.19 Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Warranties 25 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF KING 9 3.1 Organization, Good Standing and Qualification 9 3.2 Authorization 9 3.3 Governmental Consents 9 3.4 Accredited Investor 9 3.5 Brokerage 10 SECTION 4. FILINGS AND AUTHORIZATIONS 10 SECTION 5. CONDITIONS TO OBLIGATION OF EACH PARTY TO EFFECT THE PURCHASER 25 4.01 Organization TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT 10 SECTION 6. CONDITIONS OF KING’S OBLIGATIONS AT THE CLOSING 11 SECTION 7. CONDITIONS OF THE COMPANY’S OBLIGATIONS AT THE CLOSING 12 SECTION 8. MISCELLANEOUS 13 8.1 Survival 13 8.2 Assignment; Successors and Corporate Power 25 4.02 Authorization 26 4.03 No Violation 26 Table of Contents (Continued) Page 4.04 Governmental Authorities; Consents 26 4.05 Litigation 26 4.06 Brokerage 26 4.07 Investment Representation 26 4.08 Financing 27 4.09 Solvency 27Assigns 13 8.3 Governing Law 14 8.4 Counterparts 14 8.5 Titles and Subtitles 14 8.6 Notices 14 8.7 Expenses 15 8.8 Publicity 15 8.9 Amendments and Waivers 16

PURCHASE AND SALE OF THE. SHARES 1 1.01 Basic Transaction 1 1.02 14 2.1 Purchase and Sale and Contribution of Shares 1 1.03 The at the Closing 2 1.04 The 14 2.2 Adjustments 15 2.3 Net Inventory Value; Payment for Inventory 17 2.4 Closing; Delivery 18 2.5 Deliveries at Closing 19 2.6 Transfer Taxes 21 2.7 Withholding 21 ARTICLE 3 REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY 22 3.1 Organization 22 3.2 Capitalization 22 3.3 No Subsidiaries 23 3.4 Authorization 23 3.5 INTENTIONALLY OMITTED 23 3.6 Conflicts; Consents of Third Parties 23 3.7 Litigation 24 3.8 Intellectual Property 24 3.9 Material Company Contracts 26 3.10 Certain Transactions 2 1.05 Purchase Price Adjustments 3 1.06 Withholding 28 3.11 Rights 5 of Registration 28 3.12 Real Property 28 3.13 Tangible Personal Property 30 3.14 Inventory; Sufficiency of Assets 30 3.15 Financial Statements; No Undisclosed Liabilities 30 3.16 Absence of Changes 31 3.17 INTENTIONALLY OMITTED 32 TABLE OF CONTENTS (continued) Page 3.18 Employee Matters 32 3.19 Taxes 35 3.20 Insurance 38 3.21 Compliance with Law and Regulations; Permits 38 3.22 Suppliers 39 3.23 Corporate Documents 39 3.24 Brokers 40 3.25 Environmental Matters 40 3.26 Solvency 40 3.27 No “Bad Actor” Disqualification 40 ARTICLE II CONDITIONS TO CLOSING 5 2.01 Conditions to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 7 3.01 Organization and Corporate Power 8 3.02 Subsidiaries 8 3.03 Authorization; No Breach; Valid and Binding Agreement 8 3.04 Capital Stock 9 3.05 Financial Statements 9 3.06 Absence SELLERS 40 4.1 Ownership of Certain Developments 10 3.07 Properties 11 3.08 Tax Matters 12 3.09 Contracts and Commitments 13 3.10 Intellectual Property 15 3.11 the Company 40 4.2 Authorization 41 4.3 Conflicts 41 4.4 Litigation 17 3.12 Consents, etc. 17 3.13 Employee Benefit Plans 17 3.14 Insurance 19 3.15 Compliance with Laws; Permits 19 3.16 Environmental Compliance and Conditions 22 3.17 Affiliated Transactions 23 3.18 Employees 23 3.19 Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Warranties 25 41 4.5 Brokers 41 4.6 Powers of Attorney 41 4.7 Investment Purpose 41 ARTICLE IV 5 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 25 4.01 BUYER 42 5.1 Organization 42 5.2 Authorization 42 5.3 No Conflicts; Consents 42 5.4 Investment Intention 42 5.5 Brokers 43 ARTICLE 6 COVENANTS AND OTHER AGREEMENTS 43 6.1 Employees and Corporate Power 25 4.02 Authorization 26 4.03 No Violation 26 Table of Contents Employee Benefits 43 6.2 Confidentiality 44 6.3 Non-competition; Non-solicitation 44 6.4 Public Announcements 45 6.5 Recreational/Adult Use License 45 TABLE OF CONTENTS (Continuedcontinued) Page 4.04 Governmental Authorities6.6 Further Assurances 46 ARTICLE 7 INTENTIONALLY OMITTED 46 ARTICLE 8 SURVIVAL AND INDEMNIFICATION 46 8.1 Survival 46 8.2 Indemnification by Sellers 46 8.3 Indemnification by Buyer 47 8.4 Third Party Claims 47 8.5 Direct Claims and Claims for Indemnification 49 8.6 Limitations; Consents 26 4.05 Litigation 26 4.06 Brokerage 26 4.07 Investment Representation 26 4.08 Financing 27 4.09 Solvency 27Reimbursement; Additional Provisions 50 8.7 Tax Treatment 53 8.8 Exclusive Remedies 53 ARTICLE 9 INTENTIONALLY OMITTED 53 ARTICLE 10 MISCELLANEOUS 53 10.1 Tax Matters 53 10.2 Successors and Assigns 55 10.3 Governing Law; Venue 55 10.4 Titles and Subtitles 56 10.5 Notices 56 10.6 Expenses 57 10.7 Attorneys’ Fees 57 10.8 Amendments and Waivers 57 10.9 Specific Performance 57 10.10 Severability 58 10.11 Tax Advice 58 10.12 Delays or Omissions 58 10.13 Entire Agreement 58 10.14 Counterparts 58 TABLE OF CONTENTS (continued) Page Exhibits and Schedules Exhibit A – Form of Release Exhibit B – Form of Independent Contractor Agreement Exhibit C – Form of Amended and Restated Lease (Cambridge Location) Exhibit D – Form of Amended and Restated Lease (Georgetown Location) Exhibit E – Form of Note Exhibit F – Form of Security Agreement Exhibit G – Form of Termination Agreement Disclosure Schedule Schedule 1.1 – Sample Closing Net Working Capital Schedule Schedule 2.1(f) – Closing Date Payment Schedule Schedule 2.3 – Inventory; Net Inventory Value STOCK PURCHASE AGREEMENT This STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of November 13, 2018, by and among Healthy Pharms, Inc., a Massachusetts corporation (the “Company”), Xxxx Xxxxxxxx, an individual (“Overgaag”), Xxxxxxxxx Xxxxxxx, an individual (“Xxxxxxx” and, together with Overgaag, “ Sellers” and each a “Seller”), and 4Front Holdings LLC, a Delaware limited liability company (“Buyer”). Capitalized terms used and not otherwise defined in this Agreement have the meanings set forth in Section 1.1.

PURCHASE AND SALE OF THE. COMPANY SHARES 1 1.01 Basic Transaction 1 1.02 18 Section 2.1. Purchase and Sale of the Company Shares 1 1.03 The Closing 2 1.04 The Closing Transactions 2 1.05 18 Section 2.2. Purchase Price 18 Section 2.3. Purchase Price Adjustments 3 1.06 Withholding Rights 5 18 Section 2.4. Closing 20 Section 2.5. Closing Deliveries 21 Section 2.6. Transfer Taxes 23 ARTICLE II CONDITIONS TO CLOSING 5 2.01 Conditions to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III III. REPRESENTATIONS AND WARRANTIES OF REGARDING SELLER AND THE COMPANY 7 3.01 GROUP 23 Section 3.1. Organization of Seller, the Company and Corporate Power 8 3.02 Subsidiaries 8 3.03 Authorizationthe Company Group 23 Section 3.2. Authorization 23 Section 3.3. Noncontravention 23 Section 3.4. Title to the Company Shares 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.7. Financial Statements; No Breach; Valid and Binding Agreement 8 3.04 Capital Stock 9 3.05 Financial Statements 9 3.06 Indebtedness 25 Section 3.8. Undisclosed Liabilities 26 Section 3.9. Absence of Certain Developments 10 3.07 Properties 11 3.08 Changes 26 Section 3.10. Tax Matters 12 3.09 Contracts and Commitments 13 3.10 26 Section 3.11. Property 27 Section 3.12. Intellectual Property 15 3.11 28 Section 3.13. Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 17 3.12 Consents, etc31 Section 3.17. 17 3.13 Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. Employee Benefit Plans 17 3.14 Insurance 19 3.15 Compliance with Laws; Permits 19 3.16 Environmental Compliance Matters. 33 Section 3.21. Labor Matters 34 Section 3.22. Suppliers and Conditions 22 3.17 Affiliated Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 23 3.18 Employees 23 3.19 Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Warranties 25 35 Section 3.25. Brokers’ Fees 35 ARTICLE IV IV. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 25 4.01 REGARDING BUYER GROUP 35 Section 4.1. Organization 35 i Section 4.2. Authorization 36 Section 4.3. Noncontravention 36 Section 4.4. Government Authorizations 36 Section 4.5. Financial Sources 36 Section 4.6. Investment 37 Section 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Corporate Power 25 4.02 Authorization 26 4.03 Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Solvency 39 ARTICLE V. COVENANTS 40 Section 5.1. Conduct of the Company 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Violation 26 Table Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Contents (Continued) Page 4.04 Governmental AuthoritiesEmployees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Consents 26 4.05 Litigation 26 4.06 Brokerage 26 4.07 Investment Waiver of Conflicts Regarding Representation 26 4.08 Financing 27 4.09 Solvency 2761 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 64

PURCHASE AND SALE OF THE. SHARES 1 1.01 Basic Transaction 1 1.02 1.1. Purchase and Sale of Shares 1 1.03 The 1.2. Purchase Price 1 1.3. Closing 1 ARTICLE II CONSIDERATION AND MANNER OF PAYMENT 2 2.1. Payments at Closing 2 1.04 The Closing Transactions 2.2. Earn-Out 2 1.05 Purchase Price Adjustments 3 1.06 Withholding Rights 5 ARTICLE II CONDITIONS TO CLOSING 5 2.01 Conditions to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY 7 3.01 3.1. Organization and Corporate Power Qualification 8 3.02 Subsidiaries 8 3.03 3.2. Authorization; Enforceability 8 3.3. Organizational Documents 8 3.4. Capitalization 8 3.5. Subsidiaries 9 3.6. No Breach; Valid and Binding Agreement 8 3.04 Capital Stock 9 3.05 Violation 10 3.7. No Governmental Consents 10 3.8. Financial Statements 9 3.06 10 3.9. Absence of Undisclosed Liabilities 11 3.10. Absence of Certain Developments 10 3.07 Properties Changes 11 3.08 Tax Matters 12 3.09 3.11. Taxes 13 3.12. Material Contracts and Commitments 13 3.10 3.13. Real Property 15 3.14. Intellectual Property 15 3.11 18 3.15. Insurance Policies 19 3.16. Litigation 17 3.12 Consents, etc19 3.17. 17 3.13 Employee Benefit Plans 17 3.14 Insurance 19 3.15 Compliance with Laws; Permits 19 3.16 Applicable Laws 20 3.18. Regulatory Compliance 20 3.19. Environmental Compliance and Conditions 20 3.20. Employee Benefit Plans; Employees 22 3.17 Affiliated 3.21. Labor Matters 23 3.22. Affiliate Transactions 23 3.18 Employees 23 3.19 24 3.23. Books and Records 24 3.24. Brokers 24 3.25. Powers of Attorney 24 3.26. Product Warranty 24 3.27. Product Liability 25 3.28. Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Warranties 3.29. Indebtedness 25 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASER SELLER 25 4.01 Organization and Corporate Power 25 4.02 Authorization 4.1. Authorization; Enforceability 26 4.03 Page 4.2. Title to Shares 26 4.3. Litigation 26 4.4. No Violation 26 Table of Contents (Continued) Page 4.04 Governmental Authorities; Consents 4.5. Foreign Person 26 4.05 Litigation 4.6. Investment 26 4.06 Brokerage 26 4.07 Investment Representation 26 4.08 Financing 27 4.09 Solvency 4.7. Brokers 27

PURCHASE AND SALE OF THE. SHARES 1 1.01 Basic Transaction 1 1.02 ACQUIRED ASSETS 11 2.1. Purchase and Sale of Shares 1 1.03 The Closing 2 1.04 The Closing Transactions 2 1.05 the Acquired Assets 11 2.2. Assumption of Assumed Liabilities by the Purchaser; Retention of Retained Liabilities by the Sellers. 11 2.3. Purchase Price Adjustments 3 1.06 Withholding Rights 5 ARTICLE II CONDITIONS TO 11 2.4. Purchase Price Adjustment 12 2.5. WOTC Program Renewal. 13 3. CLOSING 5 2.01 Conditions 17 3.1. Closing 17 3.2. Closing Deliveries 17 3.3. Allocation of Purchase Price to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III Acquired Assets 21 3.4. Non-Assignability of Certain Acquired Assets 21 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 7 3.01 SELLER PARTIES 21 4.1. Organization and Corporate Power 8 3.02 Subsidiaries 8 3.03 AuthorizationQualification 22 4.2. Authority; No BreachEnforceability 22 4.3. Noncontravention 23 4.4. Investments in Other Persons 23 4.5. Capitalization of Sellers 23 4.6. Rights; Valid Warrants or Options; Dividends 24 4.7. Financial Statements; Undisclosed Liabilities; Books and Binding Agreement 8 3.04 Capital Stock 9 3.05 Financial Statements 9 3.06 Absence Records 24 4.8. Tangible Personal Property; Sufficiency of Certain Developments 10 3.07 Properties 11 3.08 Tax Matters 12 3.09 Contracts and Commitments 13 3.10 Intellectual Property 15 3.11 Assets 25 4.9. Real Property. 25 4.10. Insurance 26 4.11. Labor Relations 26 4.12. Permits; Compliance With Law 26 4.13. Litigation 17 3.12 Consents, etc27 4.14. 17 3.13 Material Agreements 27 4.15. Employee Benefit Plans 17 3.14 Insurance 19 3.15 Compliance with Laws28 4.16. Tax Matters 30 4.17. Environmental Matters 31 4.18. Intellectual Property 32 4.19. Brokers 34 4.20. Accounts Receivable 34 4.21. Absence of Changes and Events 34 4.22. Employees; Permits 19 3.16 Environmental Compliance and Conditions 22 3.17 Affiliated Labor Relations 35 4.23. Related Transactions 23 3.18 Employees 23 3.19 36 4.24. Securities Law Matters. 36 4.25. Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Warranties 25 ARTICLE IV 37 4.26. Solvency 37 5. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS 38 5.1. Authority; Authorization 38 5.2. Enforceability 38 5.3. Noncontravention 38 5.4. Title; Absence of Certain Agreements 38 6. REPRESENTATIONS AND WARRANTIES OF PURCHASER 25 4.01 AND PARENT 39 6.1. Organization and Corporate Power 25 4.02 Authorization 26 4.03 Qualification 39 6.2. Authority; Enforceability 39 6.3. Noncontravention 39 6.4. Litigation 39 6.5. Brokers 39 6.6. Solvency 40 6.7. Validity of Shares 40 7. COVENANTS OF THE SELLERS AND THE SHAREHOLDERS 40 7.1. Assistance in Proceedings 40 7.2. Non-Disparagement; Use of Names 40 7.3. Further Assurances 40 7.4. Confidentiality; Public Announcements 41 7.5. Payment of All Taxes by Sellers 42 7.6. Payment of Other Retained Liabilities 42 7.7. Sellers’ Anthem Health Plans 42 8. COVENANTS AND AGREEMENTS OF THE PURCHASER AND PARENT 42 8.1. WOTC Recovery Project 42 8.2. Further Assurances 42 8.3. Nondisparagement 43 9. INDEMNIFICATION 43 9.1. Indemnification by the Seller Parties 43 9.2. Indemnification by the Shareholders 43 9.3. Indemnification by Purchaser 43 9.4. Limitations on Indemnification 44 9.5. Indemnification Procedure 45 9.6. Right of Setoff 46 9.7. Exclusive Remedy 46 10. MISCELLANEOUS 47 10.1. Construction 47 10.2. Cooperation 47 10.3. Successors and Assigns 47 10.4. Entire Agreement 47 10.5. Counterparts 47 10.6. Headings 47 10.7. Expenses 47 10.8. Notices 48 10.9. Governing Law 49 10.10. Severability 49 10.11. Waiver 49 10.12. No Violation 26 Table Third Party Beneficiary 49 10.13. Enforcement of Contents Agreement 49 10.14. Appointment of Representative of the Sellers and Shareholders 50 10.15. Bulk Sales Laws 50 10.16. Nondisclosure Agreement 50 10.17. Survival 50 INDEX OF EXHIBITS Exhibit A Convertible Subordinated Promissory Note Exhibit B WOTC Escrow Agreement Exhibit C Guarantee Exhibit D Subordinated Promissory Note Exhibit E Subordination Agreement Exhibit F Bills of Sale Exhibit G Assignment and Assumption Agreements Exhibit H IP Assignments Exhibit I Non-Competition Agreement INDEX OF SCHEDULES Schedule 1.1 (Continueda) Page 4.04 Governmental AuthoritiesAssigned Agreements Schedule 1.1 (b) Assumed Liabilities Schedule 1.1 (c) Excluded Assets Schedule 1.1 (d) Enumerated Retained Liabilities Schedule 1.1 (e) Excluded Agreements Schedule 1.1 (f) WOTC Recovery Project Schedule 1.1 (g) CIC Plus Schedule 3.2 (a)(iii) Consents and Approvals Schedule 3.2 (b) Allocation of Cash and Notes Schedule 3.2 (b)(ix) Consents and Approvals of Purchaser and Purchaser Schedule 3.3 Allocation Purchase Price Schedule 4.1 Organization and Qualification Schedule 4.3 (a) Noncontravention Schedule 4.3 (b) Notice from or Consent to Seller or Shareholder Schedule 4.4 Investments in Other Persons Schedule 4.6 Rights; Consents 26 4.05 Warrants or Options; Dividends Schedule 4.7 Liabilities Not in the Ordinary Course of Business Schedule 4.8 Permitted Liens Schedule 4.8 (a) Tangible Personal Property; Sufficiency of Assets Schedule 4.9 Real Property Schedule 4.10 Insurance Policies Schedule 4.11 Labor Relations Schedule 4.12 Permits; Compliance With Law Schedule 4.13 Litigation 26 4.06 Brokerage 26 4.07 Investment Representation 26 4.08 Financing 27 4.09 Solvency 27Schedule 4.14 Material Agreements Schedule 4.15 Employee Benefit Plans Schedule 4.15(a) Schedule 4.15(d) Schedule 4.15(e) Schedule 4.16 Tax Matters Schedule 4.16(a) Tax Matters Schedule 4.17 Environmental Matters Schedule 4.18(a) Intellectual Property Schedule 4.18(c) Intellectual Property Schedule 4.18(d) Intellectual Property Schedule 4.18(e) Intellectual Property Schedule 4.18(f) Intellectual Property Schedule 4.18(g) Intellectual Property Schedule 4.18(h) Intellectual Property Schedule 4.20 Accounts Receivable Schedule 4.21 Absence of Changes and Events Schedule 4.22(a) List of Employees Schedule 4.22(b) Schedule 4.23 Related Transactions Schedule 4.25 Top Twenty-Five Customers Schedule 5.3 Noncontravention ASSET PURCHASE AGREEMENT THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made effective as of April 30, 2004, by and among, First Advantage Corporation, a Delaware corporation (“Parent”), CIC Enterprises, LLC, a Delaware limited liability company and wholly-owned subsidiary of Parent (“Purchaser”), CIC Enterprises, Inc., an Indiana corporation (“CIC”), STEPS, Inc., an Indiana corporation (“STEPS”), SFC, Inc., an Indiana corporation (“SFC”) and Xxxxxx, Inc., an Indiana corporation (“Xxxxxx”) (CIC, STEPS, SFC and Xxxxxx are sometimes individually referred to as a “Seller” and collectively as the “Sellers”), and Xxxx X. Xxxxx (“Xx. Xxxxx”), Xxxxxxx X. Xxxxx (“Xx. Xxxxx”), The Xxxxxxx Xxxxx 2004 Irrevocable Trust dated January 30, 2004 (“JC Trust”), The Xxxxx Xxxxx 2004 Irrevocable Trust dated January 30, 2004 (“BC Trust”), and The Xxxxx Xxxxx 2004 Irrevocable Trust (“KC Trust”) (each of Xx. Xxxxx, Xx. Xxxxx, the JC Trust, BC Trust and KC Trust, a “Shareholder” and together the “Shareholders”; the Shareholders collectively with the Sellers are sometimes referred to as the “Seller Parties” and individually as a “Seller Party”).