Effective December 7, 2015, Grow Solutions Holdings, Inc. closed a Credit Agreement by and among the company, as borrower, Grow Solutions, Inc. and One Love Garden Supply as joint and several guarantors (such guarantors, collectively, the "Subsidiaries" and together with the company, the "Borrowers") and TCA Global Credit Master Fund, LP as lender. Pursuant to the Credit Agreement, TCA agreed to loan the company up to a maximum of $3,000,000 for the company's product division, construction and renovation of two stores, and inventory. An initial amount of $950,000 was funded by TCA at the closing of the Credit Agreement.

Any increase in the amount extended to the Borrowers shall be at the discretion of TCA. The amounts borrowed pursuant to the Credit Agreement are evidenced by a Revolving Note and the repayment of the Revolving Note is secured by a first position security interest in substantially all of the company's assets in favor of TCA, as evidenced by a Security Agreement by and between the company and TCA and a first position security interest in substantially all of the Subsidiaries' assets in favor of TCA, as evidenced by a Security Agreement by and among the Subsidiaries and TCA. The Revolving Note is in the original principal amount of $950,000, is due and payable, along with interest thereon, on June 7, 2017, and bears interest at the rate of 18% per annum, with the first four months of payments by the company under the Revolving Note being interest only.