Preview
FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022
EXHIBIT 9
Mot. Seq. 13
December 21, 2018 Merger Agreement between GTI
and Fiorello
Index No. 652343/2018
FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022
EXECUTION VERSION
AMENDED AND RESTATED
AGREEMENT AND PLAN OF MERGER
by and among
GREEN THUMB INDUSTRIES INC.,
GTI CORE, LLC,
FIORELLO MERGER SUB, INC.,
FIORELLO PHARMACEUTICALS, INC.,
SIROSS LLC, AS REPRESENTATIVE,
and
THE SECURITYHOLDERS SET FORTH ON SCHEDULE 1 HERETO
Dated as ofDecember 21, 2018
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FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022
TABLE OF CONTENTS
ARTICLE I THE MERGER........................................................................................................................3
Section 1.01 The Merger...........................................................................................................3
Section 1.02 Articlesof Incorporation and Bylaws...................................................................3
Section 1.03 Directors and Officers ofSurviving Entity...........................................................3
Section 1.04 Effective Time; Closing........................................................................................3
ARTICLE IIEFFECT ON CAPITAL STOCK; MERGER CONSIDERATION; PAYMENT
PROCEDURES ..............................................................................................................................4
Section 2.01 Effect on Capital Stock.........................................................................................4
Section 2.02 [Reserved].............................................................................................................4
Section 2.03 Rights as Shareholders; Stock Transfers...............................................................5
Section 2.04 Exchange of Company Stock................................................................................5
Section 2.05 Dissenting Shares..................................................................................................8
Section 2.06 Closing Amounts..................................................................................................8
Section 2.07 Post-Closing Adjustments.....................................................................................8
ARTICLE IIIREPRESENTATIONS AND WARRANTIES OF COMPANY........................................10
Section 3.01 Organization and Corporate Power.....................................................................10
Section 3.02 Subsidiaries;Right to Acquire Interests.............................................................10
Section 3.03 Authorization; No Breach; Valid and Binding Agreement.................................10
Section 3.04 Capitalization,Title............................................................................................11
Section 3.05 Financial Statements...........................................................................................11
Section 3.06 Absence of Certain Developments......................................................................12
Section 3.07 Titleto Assets.....................................................................................................13
Section 3.08 Tax Matters.........................................................................................................14
Section 3.09 Contracts and Commitments...............................................................................15
Section 3.10 IntellectualProperty............................................................................................16
Section 3.11 Litigation.............................................................................................................16
Section 3.12 Governmental Authorities; Consents..................................................................17
Section 3.13 Employee Benefit Plans......................................................................................17
Section 3.14 Compliance with Laws. ......................................................................................17
Section 3.15 Undisclosed Liabilities.
......................................................................................17
Section 3.16 Labor and Employment. .....................................................................................18
Section 3.17 Insurance.............................................................................................................18
Section 3.18 Brokerage............................................................................................................18
Section 3.19 AffiliateTransactions. ........................................................................................18
Section 3.20 Certain Payments................................................................................................19
Section 3.21 Bank Accounts; Directors and Officers and Powers of Attorney.......................19
Section 3.22 Agreements with Regulatory Agencies..............................................................19
Section 3.23 No Other Representations...................................................................................19
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF GTI, PARENT AND MERGER
SUB...............................................................................................................................................20
Section 4.01 Making of Representations and Warmnties........................................................20
Section 4.02 Organization, Standing and Authority................................................................20
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Section 4.03 Corporate Power.................................................................................................20
Section 4.04 Corporate Authority............................................................................................20
Section 4.05 Sufficiency of Funds...........................................................................................21
Section 4.06 Litigation.............................................................................................................21
Section 4.07 Licensure.............................................................................................................21
Section 4.08 Purpose. ..............................................................................................................21
Section 4.09 Solvency. ............................................................................................................21
Section 4.10 Listingof Common Shares.................................................................................21
Section 4.11 GTI Capital Structure..........................................................................................22
Section 4.12 Governmental Filings;No Violations; Certain Contracts, Etc. ..........................22
Section 4.13 GTI Reports; Financial Statements.....................................................................23
Section 4.14 Absence of Certain Changes...............................................................................23
Section 4.15 Liabilities............................................................................................................24
Section 4.16 Compliance with Laws.......................................................................................24
Section 4.17 Brokers................................................................................................................25
ARTICLE V COVENANTS......................................................................................................................25
Section 5.01 Covenants of Company.......................................................................................25
Section 5.02 Commercially Reasonable Efforts......................................................................28
Section 5.03 Shareholder Approval.........................................................................................28
Section 5.04 Regulatory Filings;Consents..............................................................................29
Section 5.05 Publicity..............................................................................................................30
Section 5.06 Access; Information............................................................................................30
Section 5.07 No Solicitationby Company...............................................................................30
Section 5.08 Notification of Certain Changes.........................................................................31
Section 5.09 Current Information............................................................................................31
Section 5.10 Certain Litigation................................................................................................32
Section 5.11 Director and Officer Resignations......................................................................32
Section 5.12 Coordination.......................................................................................................32
Section 5.13 Confidentiality....................................................................................................32
Section 5.14 Employee Benefits..............................................................................................33
Section 5.15 Regulatory Matters. ............................................................................................33
Section 5.16 Submission of Affidavits....................................................................................33
Section 5.17 Certain Tax Matters............................................................................................34
Section 5.18 Release................................................................................................................36
Section 5.19 NYDOH..............................................................................................................37
ARTICLE VI CONDITIONS TO CONSUMMATION OF THE MERGER...........................................38
Section 6.01 Conditions to Obligations of theParties to Effect the Merger............................38
Section 6.02 Conditions to Obligations of Company. .............................................................38
Section 6.03 Conditions to Obligations of Parent....................................................................39
Section 6.04 Frustrationof Closing Conditions.......................................................................40
ARTICLE VII TERMINATION...............................................................................................................40
Section 7.01 Termination.........................................................................................................40
Section 7.02 Delay...................................................................................................................41
Section 7.03 Effect of Termination..........................................................................................41
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ARTICLE VIII INDEMNIFICATION......................................................................................................41
Section 8.01 Survival of Representations and Warranties.......................................................41
Section 8.02 kdemnification Provisions for Parent's Benefit.................................................41
Securityholders'
Section 8.03 Indemnification Provisions for Benefit. ..................................42
Section 8.04 Limitations on Indemnification. .........................................................................42
Section 8.05 Edemnification and Set-off for Cresco Losses. .................................................43
Section 8.06 Indemnification and Third-Party Claims............................................................45
Section 8.07 Indemnification Notice.......................................................................................46
Section 8.08 Defense of Third-Party Claims...........................................................................46
Section 8.09 Indenmification and Satisfaction ofConditions .................................................46
ARTICLE IX MISCELLANEOUS...........................................................................................................47
Section 9.01 Waiver; Amendment...........................................................................................47
Section 9.02 Governing Law; Waiver ofRight to Trialby Jury..............................................47
Section 9.03 Expenses.............................................................................................................48
Section 9.04 Notices................................................................................................................48
Section 9.05 Severability.........................................................................................................48
Section 9.06 Enforcement ofthe Agreement...........................................................................49
Section 9.07 Assignment.........................................................................................................49
Section 9.08 Certain Agreements and Acknowledgements.....................................................49
Section 9.09 Director and Officer Insurance...........................................................................50
Section 9.10 Investigation;Limitation on Warranties.............................................................50
Section 9.11 Counterparts........................................................................................................51
Section 9.12 No StrictConstruction........................................................................................51
Section 9.13 Captions..............................................................................................................51
Section 9.14 EntireAgreement................................................................................................52
Section 9.15 Parties inInterest;Third Party Beneficiarics......................................................52
Section 9.16 Interpretation.......................................................................................................52
Section 9.17 Waiver of Conflicts.............................................................................................53
Section 9.18 Representative.....................................................................................................53
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FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022
Schedules
Schedule 1- Securityholders
The Disclosure Schedule
Exhibits
Exhibit A - Amended and Restated Sections of theOriginal Agreement
Exhibit B - Certificate of Merger
Exhibit C - AffiliateGuaranty
Exhibit D - Form of Share Registration Instruction
Exhibit Z - Definitions
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AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER
This AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER (this
"Ag,cc,ncut") is dated as ofDecember 21, 2018, by and among Green Thumb Industries Inc.,a company
organized under the laws of British Columbia, Canada ("GTI"), GTI Core, LLC, a Delaware limited
liabilitycompany ("Parent"), Fiorello Merger Sub, Inc., a New York corporation and a wholly owned
subsidiary of Parent ("Merger Sub"), Fiorello Pharmaceuticals, Inc., a New York corporation
("CG;;zpa;zy"), Siross LLC, a Delaware limited liabilitycompany, solely in its capacity as the
representative for Company's Securityholders (together with any successor appointed pürsüaiitto Section
RJ8, "Representative"), and the Securityholders set forth on Schedule 1 thathave, concurrently with the
execution and delivery of the Original Agreement by Parent, Merger Sub, Company and Representative,
agreed to be bound by the terms of thisAgreement by executing and delivering a joinder agreement tothe
Original Agreement. GTI, Parent, Merger Sub, Company and, solely inits capacity as and solely to the
"Party"
extent applicable, Representative, shall be referred to herein from time to time as a and
collectivelyas the "Parties". Capitalized terms used and not otherwise defined herein have themeanings
setforth in Exhibit Z attached hereto.
RECITALS
WHEREAS, in July 2014, Governor Andrew M. Cuomo and the New York State
Legislature enacted the Compassionate Care Act to provide a comprehensive, safe and effective medical
iiiarijüaiia
program. Under the Compassionate Care Act, fiveoriginal licenses were awarded to private
marijuana growers. The Compassionate Care Actwas expanded inAugust of 2017 and fiveadditial
licenses were awarded. One of the additional licenses was awarded to Company, which permits
Company to cultivate and process medical cannabis in the Stateof New York, as well as to establishand
operate four medical cannabis dispensaries (the "Business");
WHEREAS, Parent desires to acquire one hundred percent (100%) of the issued and
outstanding shares of capitalstock of Company in a reverse-subsidimy merger transaction on the terms
and subject to theconditions setforthherein;
WHEREAS, on June 29, 2018, Parent, Merger Sub, Company, Representative and the
Securityholders set forth on Schedule 1 entered into an Agreement and Plan of Merger (the "Original
Agreement");
WHEREAS, Company and Parent entered into thatcertain lineof creditagreement, dated
as of August 15, 2018 (the "Line of Credit Agreement"), pursuant to which Parent agreed to advance to
Company up to $10,000,000 on the tenns and subject tothe conditions set forth inthe Line of Credit
Agreement;
WHEREAS, on August 23, 2018 and on September 25, 2018, Company received letters
from the NYDOH denying the change of ownership of Company contemplated by the Original
Agreement;
WHEREAS, on October 5, 2018, Company received a letter
from the NYDOH requiring
Company to begin operations tothe satisfactionof the NYDOH by January 31, 2019, to avoid surrender
of the registration granted to Company by the NYDOH pursuant to the Compassionate Care Act that
permits Company to cultivateand process cannabis in the Stateof New York and establish and operate
four annabis dispensaries, including by having two (2) operativiialdispensing faciliticsand commencing
manufacturing within six (6)months prior tothe expiration of the registration;
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WHEREAS, Parent, Merger Sub, Company, and Representative intend to defease and
terminate the Line of Credit Agreement and the aggregate outstanding amount advanced thercünder;
WHEREAS, concurrently with the defeasance and termination of the Line of Credit
Agreement, Company shall issue to Parent a convertible note in the aggregate principal amount of
$10,000,000 plus accrued and unpaid interest under the Line of Credit Agreement (the "Convertible
Note"), which Convertible Note shallbe convertible by Parent into 16.7% of the issued and outstanding
Company Common Stock as of September 30, 2018;
WHEREAS, as a result of the foregoing developments, Parent, Merger Sub, Company,
and Representative desire to amend and restate the terms of the Original Agreement to, among other
things, (a)modify the consideration to be received by the Securityholders in the Merger at Closing by
eliminating the up to $10 million cash payment contingent on the legalization by New York State of
cannabis for recreational adult-use and replacing itwith the obligation to issue 1,700,000 Subordinate
Voting Shares, (b) extend the expiration date of the Original Agreement from December 31, 2018 to
August 31, 2019 and provide Parent with the unilateralright toextend the Expiration Date to December
31, 2019 in exchange for issuing, to the Securityholders at the time of any such extension, 250,000
Subordinate Voting Shares, and (c) add additional covenants to the Original Agreement requiring Parent,
Company and their respective affiliatestouse theirreasonable best effortsto cause Company to begin
operations to the satisfactionofthe NYDOH, by January 31, 2019;
WHEREAS, therespective boards ofdirectors of Company and Merger Sub have each (i)
determined thatthe Merger isfair,advisable and in the best interestsof their respective companies and
shareholders and approved
(ii) this Agreement and the transactions contemplated hereby, including the
Merger, upon theterms and subject to theconditions set forthherein;
WHEREAS, the respective boards of directors of each of Company and Merger Sub has
determined to recommend to its shareholders the approval and adoption of this Agreement and the
transactions contemplated hereby, including the Merger;
WHEREAS, the board of directors of Parent has approved this Agreement and the
Merger and the other transactionscontemplated hereby;
WHEREAS, the Securityholders have, previously with the execution and deliveryof the
Original Agreement, agreed to be bound by the terms of this Agreement by executing and delivering a
joinder agreement to theOriginal Agreement;
WHEREAS, although, for the sake of convenience, thisAgreement amends and restated
in its entirety the Original Agreement, the only Sections of the Original Agreement that have been
modified by this Agreement are those setforth on Exhibit A (the"Amended and Restated Sections of the
Original Agreement");
WHEREAS, except for the Amended and Restated Sections of the Original Agreement,
thisAgreement shallmake no further modifications, changes or amendments to the Original Agreement;
and
WHEREAS, the Securityholders set forthon Schedule 1 have =mmously adopted and
approved, by written consent in lieuof a meeting, thisAgreement, and have authorized the Representative
to enterinto, deliverand execute thisAgreement.
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NOW, THEREFORE, in consideration of the mutual covenants contained herein and
other good and valuable consideration, thereceipt and sufficiency of which are hereby acknowledged, and
intending to be legallybound, theParties agree as follows:
ARTICLE I
THE MERGER
Section 1.01 The Moracr.
At the Effective Time, on the terms and subject to the conditions of this Agreement and in
accordance with allapplicable Laws, Merger Sub shallmerge with and into Company (the "Merger"),
whereupon the separate corporate existence of Merger Sub shall cease and Company shall survive and
continue to existas a wholly owned Subsidiary of Parent (Company, asthe surviving entity inthe Merger,
sometimes being referredto herein as the"Suiviviiig Entity").
Section 1.02 Articlesof Incorooration and Bvlaws.
The articles of incorporation and bylaws of Company, as in effect immediately prior to the
Effective Time, shallbe the articlesof incorporation and bylaws of the Surviving Entity until,subject to
Section 9.09(a), thereafteramended as provided by applicable Law.
Section 1.03 Directors and Officers of Surviving Entity.
The directors and officers of Merger Sub, in each case, immediately prior to the Effective Time
shall,from and afterthe Effective Time, be the directorsand officers,respectively, ofthe Surviving Entity
until their successors have been duly elected or appointed and qualified or untiltheir earlier death,
resignation, or removal in accordance with the articles of incorporation and by-laws of the Surviving
Entity; provided, however, thatimmediately after theEffective Time, Susan Yoss and Eric Sirota shallbe
elected to the board of directors of the Surviving Entity and shall remain directors on the board of
directors of the Surviving Entity until such time as the Deferred Consideration has been paid in fullin
accordance with Section 2.01(b). Parent shall take, and shall cause itsAffiliates to take, allactions
necessary and desirable to cause Susan Yoss and Eric Sirota to be elected and remain directors on the
board of directorsof the Surviving Entity in accordance with the proviso in the immediately preceding
sentence, including by voting itsshares infavor of the foregoing and not taking any action thatwould be
inconsistent with theforegoing.
Section 1.04 Effective Time: Closing.
(a) On the terms and subject to the conditions of thisAgreement, at theClosing, the
Parties shall cause a certificate of merger substantially in the fonn of Exhibit B attached hereto (the
"Certificate of Merger") to be executed, acknowledged and filedwith the Departiiiciitof State of the
State of New York and make all such other filingsor recordings asmay be required by the NYBCL to
consummate the Merger. The Merger shall become effective (the "Effective Time") immediately upon
the filingof theCertificateof Merger with the Department of State ofthe State ofNew York.
(b) At the Effective Time, Merger Sub shall be merged with and into Company, the
separate existence ofMerger Sub shall cease and the Surviving Entity, without further action, shall
succeed to allthe assets,rights,privileges, powers and franchises and be subject to allof the liabilities,
disabilities
restrictions, and duties of Company and Merger Sub.
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(c) On the terms and subjectto the conditions of this Agreement, the closing of the
trasactions contemplated hereby (the "Closing") shall take place remotely via the exchange of
documents and signatures by electronicmail on thesecond (2nd)Business Day following fullsatisfaction
or due waiver of allof the closing conditions setforth in Article VI hereof (otherthan those conditions
that,by their nature,cannot be satisfieduntilthe Closing, but subject tothe satisfactionor waiver of such
conditions at the Closing) or on such other date as ismutually agreeable to Parent and Company. The
date of theClosing isreferred toherein as the "Closing Date".
ARTICLE II
EFFECT ON CAPITAL STOCK: MERGER CONSIDERATION: PAYMENT PROCEDURES
Section 2.01 Effect on Caoital Stock.
Subject to the provisions ofthis Agreement, at theEffective Time, eutematically by virtueof the
Merger and without any action on the partof Parent, Merger Sub, Company or any Securityholder:
(a) Each share of common stock of Merger Sub that is issued and outstanding
immediately prior to the Effective Time shallbe converted intoone (1) validly issued, fullypaid and
nonassessable share of common stock of the Surviving Entity, and the stock of the Surviving Entity
issued pursuant to such conversion shallconstitute allof the issuedand outstmding shares of capitalstock
of the Surviving Entity.
(b) Each share of Company Common Stock issued and outstanding immediately
prior to the Effective Time (other than Company Common Stock of Parent, Dissenting Shares and
treasury stock) shall automaticMly and without any further action on the part of the holder thereof be
converted intothe right toreceivc: (i)an amount in cash, without interest,equal to the Per Sharc Closing
Cash Consideration; (ii)thatnumber of Subordinate Voting Shares equal tothe Per Share Closing Equity
Consideration and (iii)thirtydays after the Termination of Cresco Proceedings, an amount in cash,
without interest,equal to thePer Share Deferred Consideration.
(c) Each share of Company Series A Preferred Stock issued and outstanding
immediately prior to the Effective Time (other than Company Common Stock of Parent, Dissenting
Shares and treasury stock) shall automatically and without any further action on the part ofthe holder
thereof be converted into the rightto receive an
(i) amount incash, without interest,equal to thePer Share
Closing Cash Consideration; (ii)thatnumber ofSubordinate Voting Shares equal to thePer Share Closing
Equity Consideration and (iii)
thirtydays afterthe Tennination of Cresco Proceedings, an amount incash,
without interest,equalto the Per Share Deferred Consideration.
(d) Each shareof Company Restricted Stock that isoutstanding immediately prior to
the Effective Time willvest infull,ifunvested, and become non-forfeitable effectiveimmediately prior to
the Effective Time and will be converted intothe right to receive (i)an amount in cash, without interest,
equal to the Per Share Closing Cash Consideration; that
(ii) number of Subordinate Voting Shares equal
to the Per Share Closing Equity Consideration and (iii)thirtydays after the Termiiiativii of Cresco
Proceedings, an amount in cash,without equal
interest, to thePer Share Deferred Consideration.
Section 2.02 [ReservedL
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Section 2.03 Rights as Shareholders: Stock Transfers.
All shares of Company Stock, when converted as provided in Section 2.01, shall no longer be
outstanding and shallautomatically be cmcelled and retired and shall cease to exist,and each Certificate
or Book-Entry Shares previously evidencing such shares shall thereafter represent only the right to
receive, foreach such share of Company Stock, the Merger Consideration in accordance with thisArticle
H At the Effective Time, holders of Company Stock shall cease to be, and shall have no rights as,
shareholders of Company, other than the rightto receivethe Merger Consideration as provided under this
Article II.After the Effective Time, there shall be no registrationof transferson the stock transfer books
of Company of shares ofCompany Stock.
Section 2.04 Exchange of Comoany Stock.
(a) Exchange Agent; Exchange Fund. Prior to the Closing, Parent and Company
shall mutually appoint an exchange agent (the "Exchange Agent") to act as theagent forthe purpose of
paying or delivering,as the case may be,the Merger Consideration for: (i)the Certificates;and the
(ii)
Book-Entry Shares. Parent shall deposit, or cause to be deposited with the Exchange Agent (x) atthe
Effective Time, sufficientfunds to pay the aggregate Closing Cash Consideration plus any cash to be paid
in lieu offractional Subordinate Voting Shares payable pursuant to Section 2.04(2); (y) atthe Effective
Time, share certificatesrepresenting Subordinate Voting Shares, or at Parent's option, Book-Entry
Subordinate Voting Shares, constituting at least the amounts necessary for the Closing Equity
Consideration; and (z)as necessary from time to time afterthe Effective Time, ifapplicable, any cash and
dividends or otherdistributions with respect to the Subordinate Voting Shares to be issued or to be paid
pursuant to Section 2.04(e)that are payable or deliverable, as the case may be, in respect of allof the
shares of Company Stock represented by the Certificatesand the Book-Entry Shares (otherthan Company
Common Stock of Parent, Dissenting Shares and treasury stock) (the "Exchange Fund") in amounts and
atthe times necessary for such payments or deliveries,as the case may be. The Exchange Fund shall not
be used forany other purpose. The Surviving Entity shallpay allcharges and expenses, including those
of the Exchange Agent, in connection with the exchange of shares of Company Stock forthe Merger
Consideration. Promptly afterthe Effective Time, Parent shallsend, or shallcause the Exchange Agent to
send, to each record holder of shares of Company Stock atthe Effective Time, a letter
of transminal and
instructions (which shallspecify that the delivery shall be effected, and risk of loss and titleshallpass,
only upon proper delivery of the Certificatesortransfer of theBook-Entry Shares to the Exchange Agent,
and which letterof transmittalwill be incustomary form and have such other provisions as Parent and the
Surviving Entity may reasonably specify, including, but not limited to (i) a representation that the
Certificatesand Book-Entry Shares shall be freeand clearof allLiens, and (ii)customary representations
to ensure cenipliace with Canadian SecuritiesLaws, Regulation D and Regulation S), in form and
substance reasonably satisfactorytoRepresentative, for use in such exchange.
(b) Procedures forSurrender: No Interest.Each holder of shares of Company Stock
thathave been converted intothe right toreceive the Merger Consideration shallbe entitledto receive the
Merger Consideration in respect of Company Stock rep
Preview
FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 EXHIBIT 9 Mot. Seq. 13 December 21, 2018 Merger Agreement between GTI and Fiorello Index No. 652343/2018 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 EXECUTION VERSION AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER by and among GREEN THUMB INDUSTRIES INC., GTI CORE, LLC, FIORELLO MERGER SUB, INC., FIORELLO PHARMACEUTICALS, INC., SIROSS LLC, AS REPRESENTATIVE, and THE SECURITYHOLDERS SET FORTH ON SCHEDULE 1 HERETO Dated as ofDecember 21, 2018 NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031399 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 TABLE OF CONTENTS ARTICLE I THE MERGER........................................................................................................................3 Section 1.01 The Merger...........................................................................................................3 Section 1.02 Articlesof Incorporation and Bylaws...................................................................3 Section 1.03 Directors and Officers ofSurviving Entity...........................................................3 Section 1.04 Effective Time; Closing........................................................................................3 ARTICLE IIEFFECT ON CAPITAL STOCK; MERGER CONSIDERATION; PAYMENT PROCEDURES ..............................................................................................................................4 Section 2.01 Effect on Capital Stock.........................................................................................4 Section 2.02 [Reserved].............................................................................................................4 Section 2.03 Rights as Shareholders; Stock Transfers...............................................................5 Section 2.04 Exchange of Company Stock................................................................................5 Section 2.05 Dissenting Shares..................................................................................................8 Section 2.06 Closing Amounts..................................................................................................8 Section 2.07 Post-Closing Adjustments.....................................................................................8 ARTICLE IIIREPRESENTATIONS AND WARRANTIES OF COMPANY........................................10 Section 3.01 Organization and Corporate Power.....................................................................10 Section 3.02 Subsidiaries;Right to Acquire Interests.............................................................10 Section 3.03 Authorization; No Breach; Valid and Binding Agreement.................................10 Section 3.04 Capitalization,Title............................................................................................11 Section 3.05 Financial Statements...........................................................................................11 Section 3.06 Absence of Certain Developments......................................................................12 Section 3.07 Titleto Assets.....................................................................................................13 Section 3.08 Tax Matters.........................................................................................................14 Section 3.09 Contracts and Commitments...............................................................................15 Section 3.10 IntellectualProperty............................................................................................16 Section 3.11 Litigation.............................................................................................................16 Section 3.12 Governmental Authorities; Consents..................................................................17 Section 3.13 Employee Benefit Plans......................................................................................17 Section 3.14 Compliance with Laws. ......................................................................................17 Section 3.15 Undisclosed Liabilities. ......................................................................................17 Section 3.16 Labor and Employment. .....................................................................................18 Section 3.17 Insurance.............................................................................................................18 Section 3.18 Brokerage............................................................................................................18 Section 3.19 AffiliateTransactions. ........................................................................................18 Section 3.20 Certain Payments................................................................................................19 Section 3.21 Bank Accounts; Directors and Officers and Powers of Attorney.......................19 Section 3.22 Agreements with Regulatory Agencies..............................................................19 Section 3.23 No Other Representations...................................................................................19 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF GTI, PARENT AND MERGER SUB...............................................................................................................................................20 Section 4.01 Making of Representations and Warmnties........................................................20 Section 4.02 Organization, Standing and Authority................................................................20 NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031400 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 Section 4.03 Corporate Power.................................................................................................20 Section 4.04 Corporate Authority............................................................................................20 Section 4.05 Sufficiency of Funds...........................................................................................21 Section 4.06 Litigation.............................................................................................................21 Section 4.07 Licensure.............................................................................................................21 Section 4.08 Purpose. ..............................................................................................................21 Section 4.09 Solvency. ............................................................................................................21 Section 4.10 Listingof Common Shares.................................................................................21 Section 4.11 GTI Capital Structure..........................................................................................22 Section 4.12 Governmental Filings;No Violations; Certain Contracts, Etc. ..........................22 Section 4.13 GTI Reports; Financial Statements.....................................................................23 Section 4.14 Absence of Certain Changes...............................................................................23 Section 4.15 Liabilities............................................................................................................24 Section 4.16 Compliance with Laws.......................................................................................24 Section 4.17 Brokers................................................................................................................25 ARTICLE V COVENANTS......................................................................................................................25 Section 5.01 Covenants of Company.......................................................................................25 Section 5.02 Commercially Reasonable Efforts......................................................................28 Section 5.03 Shareholder Approval.........................................................................................28 Section 5.04 Regulatory Filings;Consents..............................................................................29 Section 5.05 Publicity..............................................................................................................30 Section 5.06 Access; Information............................................................................................30 Section 5.07 No Solicitationby Company...............................................................................30 Section 5.08 Notification of Certain Changes.........................................................................31 Section 5.09 Current Information............................................................................................31 Section 5.10 Certain Litigation................................................................................................32 Section 5.11 Director and Officer Resignations......................................................................32 Section 5.12 Coordination.......................................................................................................32 Section 5.13 Confidentiality....................................................................................................32 Section 5.14 Employee Benefits..............................................................................................33 Section 5.15 Regulatory Matters. ............................................................................................33 Section 5.16 Submission of Affidavits....................................................................................33 Section 5.17 Certain Tax Matters............................................................................................34 Section 5.18 Release................................................................................................................36 Section 5.19 NYDOH..............................................................................................................37 ARTICLE VI CONDITIONS TO CONSUMMATION OF THE MERGER...........................................38 Section 6.01 Conditions to Obligations of theParties to Effect the Merger............................38 Section 6.02 Conditions to Obligations of Company. .............................................................38 Section 6.03 Conditions to Obligations of Parent....................................................................39 Section 6.04 Frustrationof Closing Conditions.......................................................................40 ARTICLE VII TERMINATION...............................................................................................................40 Section 7.01 Termination.........................................................................................................40 Section 7.02 Delay...................................................................................................................41 Section 7.03 Effect of Termination..........................................................................................41 NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031401 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 ARTICLE VIII INDEMNIFICATION......................................................................................................41 Section 8.01 Survival of Representations and Warranties.......................................................41 Section 8.02 kdemnification Provisions for Parent's Benefit.................................................41 Securityholders' Section 8.03 Indemnification Provisions for Benefit. ..................................42 Section 8.04 Limitations on Indemnification. .........................................................................42 Section 8.05 Edemnification and Set-off for Cresco Losses. .................................................43 Section 8.06 Indemnification and Third-Party Claims............................................................45 Section 8.07 Indemnification Notice.......................................................................................46 Section 8.08 Defense of Third-Party Claims...........................................................................46 Section 8.09 Indenmification and Satisfaction ofConditions .................................................46 ARTICLE IX MISCELLANEOUS...........................................................................................................47 Section 9.01 Waiver; Amendment...........................................................................................47 Section 9.02 Governing Law; Waiver ofRight to Trialby Jury..............................................47 Section 9.03 Expenses.............................................................................................................48 Section 9.04 Notices................................................................................................................48 Section 9.05 Severability.........................................................................................................48 Section 9.06 Enforcement ofthe Agreement...........................................................................49 Section 9.07 Assignment.........................................................................................................49 Section 9.08 Certain Agreements and Acknowledgements.....................................................49 Section 9.09 Director and Officer Insurance...........................................................................50 Section 9.10 Investigation;Limitation on Warranties.............................................................50 Section 9.11 Counterparts........................................................................................................51 Section 9.12 No StrictConstruction........................................................................................51 Section 9.13 Captions..............................................................................................................51 Section 9.14 EntireAgreement................................................................................................52 Section 9.15 Parties inInterest;Third Party Beneficiarics......................................................52 Section 9.16 Interpretation.......................................................................................................52 Section 9.17 Waiver of Conflicts.............................................................................................53 Section 9.18 Representative.....................................................................................................53 NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031402 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 Schedules Schedule 1- Securityholders The Disclosure Schedule Exhibits Exhibit A - Amended and Restated Sections of theOriginal Agreement Exhibit B - Certificate of Merger Exhibit C - AffiliateGuaranty Exhibit D - Form of Share Registration Instruction Exhibit Z - Definitions NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031403 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER This AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER (this "Ag,cc,ncut") is dated as ofDecember 21, 2018, by and among Green Thumb Industries Inc.,a company organized under the laws of British Columbia, Canada ("GTI"), GTI Core, LLC, a Delaware limited liabilitycompany ("Parent"), Fiorello Merger Sub, Inc., a New York corporation and a wholly owned subsidiary of Parent ("Merger Sub"), Fiorello Pharmaceuticals, Inc., a New York corporation ("CG;;zpa;zy"), Siross LLC, a Delaware limited liabilitycompany, solely in its capacity as the representative for Company's Securityholders (together with any successor appointed pürsüaiitto Section RJ8, "Representative"), and the Securityholders set forth on Schedule 1 thathave, concurrently with the execution and delivery of the Original Agreement by Parent, Merger Sub, Company and Representative, agreed to be bound by the terms of thisAgreement by executing and delivering a joinder agreement tothe Original Agreement. GTI, Parent, Merger Sub, Company and, solely inits capacity as and solely to the "Party" extent applicable, Representative, shall be referred to herein from time to time as a and collectivelyas the "Parties". Capitalized terms used and not otherwise defined herein have themeanings setforth in Exhibit Z attached hereto. RECITALS WHEREAS, in July 2014, Governor Andrew M. Cuomo and the New York State Legislature enacted the Compassionate Care Act to provide a comprehensive, safe and effective medical iiiarijüaiia program. Under the Compassionate Care Act, fiveoriginal licenses were awarded to private marijuana growers. The Compassionate Care Actwas expanded inAugust of 2017 and fiveadditial licenses were awarded. One of the additional licenses was awarded to Company, which permits Company to cultivate and process medical cannabis in the Stateof New York, as well as to establishand operate four medical cannabis dispensaries (the "Business"); WHEREAS, Parent desires to acquire one hundred percent (100%) of the issued and outstanding shares of capitalstock of Company in a reverse-subsidimy merger transaction on the terms and subject to theconditions setforthherein; WHEREAS, on June 29, 2018, Parent, Merger Sub, Company, Representative and the Securityholders set forth on Schedule 1 entered into an Agreement and Plan of Merger (the "Original Agreement"); WHEREAS, Company and Parent entered into thatcertain lineof creditagreement, dated as of August 15, 2018 (the "Line of Credit Agreement"), pursuant to which Parent agreed to advance to Company up to $10,000,000 on the tenns and subject tothe conditions set forth inthe Line of Credit Agreement; WHEREAS, on August 23, 2018 and on September 25, 2018, Company received letters from the NYDOH denying the change of ownership of Company contemplated by the Original Agreement; WHEREAS, on October 5, 2018, Company received a letter from the NYDOH requiring Company to begin operations tothe satisfactionof the NYDOH by January 31, 2019, to avoid surrender of the registration granted to Company by the NYDOH pursuant to the Compassionate Care Act that permits Company to cultivateand process cannabis in the Stateof New York and establish and operate four annabis dispensaries, including by having two (2) operativiialdispensing faciliticsand commencing manufacturing within six (6)months prior tothe expiration of the registration; NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031404 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 WHEREAS, Parent, Merger Sub, Company, and Representative intend to defease and terminate the Line of Credit Agreement and the aggregate outstanding amount advanced thercünder; WHEREAS, concurrently with the defeasance and termination of the Line of Credit Agreement, Company shall issue to Parent a convertible note in the aggregate principal amount of $10,000,000 plus accrued and unpaid interest under the Line of Credit Agreement (the "Convertible Note"), which Convertible Note shallbe convertible by Parent into 16.7% of the issued and outstanding Company Common Stock as of September 30, 2018; WHEREAS, as a result of the foregoing developments, Parent, Merger Sub, Company, and Representative desire to amend and restate the terms of the Original Agreement to, among other things, (a)modify the consideration to be received by the Securityholders in the Merger at Closing by eliminating the up to $10 million cash payment contingent on the legalization by New York State of cannabis for recreational adult-use and replacing itwith the obligation to issue 1,700,000 Subordinate Voting Shares, (b) extend the expiration date of the Original Agreement from December 31, 2018 to August 31, 2019 and provide Parent with the unilateralright toextend the Expiration Date to December 31, 2019 in exchange for issuing, to the Securityholders at the time of any such extension, 250,000 Subordinate Voting Shares, and (c) add additional covenants to the Original Agreement requiring Parent, Company and their respective affiliatestouse theirreasonable best effortsto cause Company to begin operations to the satisfactionofthe NYDOH, by January 31, 2019; WHEREAS, therespective boards ofdirectors of Company and Merger Sub have each (i) determined thatthe Merger isfair,advisable and in the best interestsof their respective companies and shareholders and approved (ii) this Agreement and the transactions contemplated hereby, including the Merger, upon theterms and subject to theconditions set forthherein; WHEREAS, the respective boards of directors of each of Company and Merger Sub has determined to recommend to its shareholders the approval and adoption of this Agreement and the transactions contemplated hereby, including the Merger; WHEREAS, the board of directors of Parent has approved this Agreement and the Merger and the other transactionscontemplated hereby; WHEREAS, the Securityholders have, previously with the execution and deliveryof the Original Agreement, agreed to be bound by the terms of this Agreement by executing and delivering a joinder agreement to theOriginal Agreement; WHEREAS, although, for the sake of convenience, thisAgreement amends and restated in its entirety the Original Agreement, the only Sections of the Original Agreement that have been modified by this Agreement are those setforth on Exhibit A (the"Amended and Restated Sections of the Original Agreement"); WHEREAS, except for the Amended and Restated Sections of the Original Agreement, thisAgreement shallmake no further modifications, changes or amendments to the Original Agreement; and WHEREAS, the Securityholders set forthon Schedule 1 have =mmously adopted and approved, by written consent in lieuof a meeting, thisAgreement, and have authorized the Representative to enterinto, deliverand execute thisAgreement. NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031405 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, thereceipt and sufficiency of which are hereby acknowledged, and intending to be legallybound, theParties agree as follows: ARTICLE I THE MERGER Section 1.01 The Moracr. At the Effective Time, on the terms and subject to the conditions of this Agreement and in accordance with allapplicable Laws, Merger Sub shallmerge with and into Company (the "Merger"), whereupon the separate corporate existence of Merger Sub shall cease and Company shall survive and continue to existas a wholly owned Subsidiary of Parent (Company, asthe surviving entity inthe Merger, sometimes being referredto herein as the"Suiviviiig Entity"). Section 1.02 Articlesof Incorooration and Bvlaws. The articles of incorporation and bylaws of Company, as in effect immediately prior to the Effective Time, shallbe the articlesof incorporation and bylaws of the Surviving Entity until,subject to Section 9.09(a), thereafteramended as provided by applicable Law. Section 1.03 Directors and Officers of Surviving Entity. The directors and officers of Merger Sub, in each case, immediately prior to the Effective Time shall,from and afterthe Effective Time, be the directorsand officers,respectively, ofthe Surviving Entity until their successors have been duly elected or appointed and qualified or untiltheir earlier death, resignation, or removal in accordance with the articles of incorporation and by-laws of the Surviving Entity; provided, however, thatimmediately after theEffective Time, Susan Yoss and Eric Sirota shallbe elected to the board of directors of the Surviving Entity and shall remain directors on the board of directors of the Surviving Entity until such time as the Deferred Consideration has been paid in fullin accordance with Section 2.01(b). Parent shall take, and shall cause itsAffiliates to take, allactions necessary and desirable to cause Susan Yoss and Eric Sirota to be elected and remain directors on the board of directorsof the Surviving Entity in accordance with the proviso in the immediately preceding sentence, including by voting itsshares infavor of the foregoing and not taking any action thatwould be inconsistent with theforegoing. Section 1.04 Effective Time: Closing. (a) On the terms and subject to the conditions of thisAgreement, at theClosing, the Parties shall cause a certificate of merger substantially in the fonn of Exhibit B attached hereto (the "Certificate of Merger") to be executed, acknowledged and filedwith the Departiiiciitof State of the State of New York and make all such other filingsor recordings asmay be required by the NYBCL to consummate the Merger. The Merger shall become effective (the "Effective Time") immediately upon the filingof theCertificateof Merger with the Department of State ofthe State ofNew York. (b) At the Effective Time, Merger Sub shall be merged with and into Company, the separate existence ofMerger Sub shall cease and the Surviving Entity, without further action, shall succeed to allthe assets,rights,privileges, powers and franchises and be subject to allof the liabilities, disabilities restrictions, and duties of Company and Merger Sub. NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031406 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 (c) On the terms and subjectto the conditions of this Agreement, the closing of the trasactions contemplated hereby (the "Closing") shall take place remotely via the exchange of documents and signatures by electronicmail on thesecond (2nd)Business Day following fullsatisfaction or due waiver of allof the closing conditions setforth in Article VI hereof (otherthan those conditions that,by their nature,cannot be satisfieduntilthe Closing, but subject tothe satisfactionor waiver of such conditions at the Closing) or on such other date as ismutually agreeable to Parent and Company. The date of theClosing isreferred toherein as the "Closing Date". ARTICLE II EFFECT ON CAPITAL STOCK: MERGER CONSIDERATION: PAYMENT PROCEDURES Section 2.01 Effect on Caoital Stock. Subject to the provisions ofthis Agreement, at theEffective Time, eutematically by virtueof the Merger and without any action on the partof Parent, Merger Sub, Company or any Securityholder: (a) Each share of common stock of Merger Sub that is issued and outstanding immediately prior to the Effective Time shallbe converted intoone (1) validly issued, fullypaid and nonassessable share of common stock of the Surviving Entity, and the stock of the Surviving Entity issued pursuant to such conversion shallconstitute allof the issuedand outstmding shares of capitalstock of the Surviving Entity. (b) Each share of Company Common Stock issued and outstanding immediately prior to the Effective Time (other than Company Common Stock of Parent, Dissenting Shares and treasury stock) shall automaticMly and without any further action on the part of the holder thereof be converted intothe right toreceivc: (i)an amount in cash, without interest,equal to the Per Sharc Closing Cash Consideration; (ii)thatnumber of Subordinate Voting Shares equal tothe Per Share Closing Equity Consideration and (iii)thirtydays after the Termination of Cresco Proceedings, an amount in cash, without interest,equal to thePer Share Deferred Consideration. (c) Each share of Company Series A Preferred Stock issued and outstanding immediately prior to the Effective Time (other than Company Common Stock of Parent, Dissenting Shares and treasury stock) shall automatically and without any further action on the part ofthe holder thereof be converted into the rightto receive an (i) amount incash, without interest,equal to thePer Share Closing Cash Consideration; (ii)thatnumber ofSubordinate Voting Shares equal to thePer Share Closing Equity Consideration and (iii) thirtydays afterthe Tennination of Cresco Proceedings, an amount incash, without interest,equalto the Per Share Deferred Consideration. (d) Each shareof Company Restricted Stock that isoutstanding immediately prior to the Effective Time willvest infull,ifunvested, and become non-forfeitable effectiveimmediately prior to the Effective Time and will be converted intothe right to receive (i)an amount in cash, without interest, equal to the Per Share Closing Cash Consideration; that (ii) number of Subordinate Voting Shares equal to the Per Share Closing Equity Consideration and (iii)thirtydays after the Termiiiativii of Cresco Proceedings, an amount in cash,without equal interest, to thePer Share Deferred Consideration. Section 2.02 [ReservedL NY 247759106v8 CONFIDENTIAL - ATTORNEYS' EYES ONLY D031407 FILED: NEW YORK COUNTY CLERK 01/14/2022 09:39 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 551 RECEIVED NYSCEF: 01/14/2022 Section 2.03 Rights as Shareholders: Stock Transfers. All shares of Company Stock, when converted as provided in Section 2.01, shall no longer be outstanding and shallautomatically be cmcelled and retired and shall cease to exist,and each Certificate or Book-Entry Shares previously evidencing such shares shall thereafter represent only the right to receive, foreach such share of Company Stock, the Merger Consideration in accordance with thisArticle H At the Effective Time, holders of Company Stock shall cease to be, and shall have no rights as, shareholders of Company, other than the rightto receivethe Merger Consideration as provided under this Article II.After the Effective Time, there shall be no registrationof transferson the stock transfer books of Company of shares ofCompany Stock. Section 2.04 Exchange of Comoany Stock. (a) Exchange Agent; Exchange Fund. Prior to the Closing, Parent and Company shall mutually appoint an exchange agent (the "Exchange Agent") to act as theagent forthe purpose of paying or delivering,as the case may be,the Merger Consideration for: (i)the Certificates;and the (ii) Book-Entry Shares. Parent shall deposit, or cause to be deposited with the Exchange Agent (x) atthe Effective Time, sufficientfunds to pay the aggregate Closing Cash Consideration plus any cash to be paid in lieu offractional Subordinate Voting Shares payable pursuant to Section 2.04(2); (y) atthe Effective Time, share certificatesrepresenting Subordinate Voting Shares, or at Parent's option, Book-Entry Subordinate Voting Shares, constituting at least the amounts necessary for the Closing Equity Consideration; and (z)as necessary from time to time afterthe Effective Time, ifapplicable, any cash and dividends or otherdistributions with respect to the Subordinate Voting Shares to be issued or to be paid pursuant to Section 2.04(e)that are payable or deliverable, as the case may be, in respect of allof the shares of Company Stock represented by the Certificatesand the Book-Entry Shares (otherthan Company Common Stock of Parent, Dissenting Shares and treasury stock) (the "Exchange Fund") in amounts and atthe times necessary for such payments or deliveries,as the case may be. The Exchange Fund shall not be used forany other purpose. The Surviving Entity shallpay allcharges and expenses, including those of the Exchange Agent, in connection with the exchange of shares of Company Stock forthe Merger Consideration. Promptly afterthe Effective Time, Parent shallsend, or shallcause the Exchange Agent to send, to each record holder of shares of Company Stock atthe Effective Time, a letter of transminal and instructions (which shallspecify that the delivery shall be effected, and risk of loss and titleshallpass, only upon proper delivery of the Certificatesortransfer of theBook-Entry Shares to the Exchange Agent, and which letterof transmittalwill be incustomary form and have such other provisions as Parent and the Surviving Entity may reasonably specify, including, but not limited to (i) a representation that the Certificatesand Book-Entry Shares shall be freeand clearof allLiens, and (ii)customary representations to ensure cenipliace with Canadian SecuritiesLaws, Regulation D and Regulation S), in form and substance reasonably satisfactorytoRepresentative, for use in such exchange. (b) Procedures forSurrender: No Interest.Each holder of shares of Company Stock thathave been converted intothe right toreceive the Merger Consideration shallbe entitledto receive the Merger Consideration in respect of Company Stock rep