On August 19, 2022, Tattooed Chef, Inc. entered into a definitive equipment purchase agreement (“Purchase Agreement”) with Desert Premium Group, LLC (“DPG”). DPG is engaged in the business of manufacturing and selling a variety of frozen Mexican snacks and entrees. Under the terms of the Purchase Agreement, the Company acquired certain manufacturing, production, and storage assets, and assumed a lease for an 80,000 square foot manufacturing facility located in Albuquerque, New Mexico (“Lease”) at which the assets to be acquired currently operate, for a purchase price of approximately $10 million in cash.

The facility is located near the Company's Karsten and New Mexico Food Production facilities. The Purchase Agreement contains customary representations, warranties, covenants, and indemnities. The Lease expires on November 30, 2024 and is subject to two options to extend the term of this Lease, each for an additional five year term.

The monthly base rent for the initial term is $27,252.70.