Document:

ffntf-ex1014_690.htm

Exhibit 10.14 

 

 

4FRONT VENTURES CORP. 

SEVERANCE 

GENERAL WAIVER AND RELEASE AGREEMENT 

Jerry Derevyanny 

I elect to receive the special benefits described in this 4Front Ventures Corp. Severance and General Waiver and Release Agreement and in connection therewith provide the following General Waiver and Release (“Release”): 

1. Termination and Description of Special Benefits. 

I understand that my employment with 4Front Ventures Corp. (including all of its subsidiaries and affiliates, collectively, “4Front”) was terminated effective as of the close of business on June 30, 2020 (the “Termination Date”). I understand that, regardless of whether I sign this Release, I have already been paid my normal salary and for my 242 hours of unused vacation/paid time off, and all of my other health and welfare benefits, accrued through the Termination Date. I also understand that the special benefits I will receive by timely signing and not revoking this Release are as follows: 

	
 
	
(a)
	
a lump sum severance payment equal to $191,615.38 (which I acknowledge is equal to twelve (12) months of my base salary at the current rate per annum, minus $20,382.62 already paid to me for services that I have been providing to 4Front since the Termination Date), which payment shall be made, subject to withholding for applicable taxes, in connection with the first payroll period following the date on which this Release becomes effective (anticipated to occur on or about June 25, 2020, though I acknowledge and agree that I will assist 4Front with completing its Annual Information Form / Form 20-F filing due on or about June 30, 2020 for no additional compensation); 

	
 
	
(b)
	
a new grant of options to purchase 1,400,000 of 4Front’s Class A Subordinate Voting Shares (“SVS”) at a purchase price of Cdn$0.80 per SVS, which options shall vest as follows: (i) two-thirds (2/3) of such options shall immediately vest upon the parties’ execution of this Release, and (ii) the remaining one-third (1/3) of such options shall vest on the first (1st) anniversary of the parties’ execution of this Release. Such new grant of options will be evidenced by an option certificate, to be executed and delivered by 4Front in the form attached hereto as Exhibit A. 

In addition, I acknowledge and agree that, notwithstanding anything to the contrary set forth in my Employment Agreement or in any other written agreement executed between 4Front and me, my options to purchase 10,000 PVS and 11,250 PVS, respectively, evidenced by option certificates dated as of July 31, 2019, will automatically expire and no longer be exercisable on and as of the date that is thirty (30) days after the parties’ execution of this Release, to the extent the such options are not exercised on or before such date. I acknowledge and agree that such option certificates may be amended accordingly, and I will execute any acknowledgements, agreements or documents that may be necessary, in 4Front’s reasonable discretion, to give full force and effect to the modification of my previous option grants described in this paragraph. 

 

I further acknowledge that I have been offered health benefits coverage through the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Coverage will be provided for the duration prescribed under the applicable COBRA regulations and only if I sign applicable COBRA enrollment forms and remit the required premium payments to 4Front’s COBRA administrator in a timely fashion. 

2. General Release of Claims. 

I hereby release the Company (as defined in paragraph 5 below) from, and covenant not to sue the Company with respect to, any and all claims I have against the Company. The Company hereby releases me from, and covenants not to sue me with respect to, any and all claims the Company may have against me, excluding any claims based upon my intentional or negligent acts or omissions that either fall outside the course and scope of my employment or exceed my authorization during employment, or that arise after the effective date of this Release. The Company further acknowledges and agrees that my right to be indemnified by the Company in respect of actions or proceedings arising out of or relating to my employment with 

 

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the Company (subject to the exclusions set forth in the preceding sentence) shall survive following the effective date of this Release. 

3. Claims to Which Release Applies. 

This Release applies both to claims which are now known or are later discovered. However, this Release does not apply to any claims that may arise after the date I execute the Release, nor does this Release apply to any claims which may not be released under applicable law. 

4. Claims Released Include Age Discrimination and Employment Claims. 

The claims released by me hereunder include, but are not limited to: 

	
 
	
(a)
	
claims based on breach of contract, covenant of good faith and fair dealing, state or federal whistleblower statute or regulation, tort (including defamation, invasion of privacy, or intentional infliction of emotional distress), misrepresentation, wrongful discharge, terms and conditions of employment, discrimination, harassment, and retaliation; 

	
 
	
(b)
	
claims arising out of or relating in any way to my employment with the Company or the conclusion of that employment or any actions or inactions of the Company relating to me in any way; and 

	
 
	
(c)
	
claims arising under any federal, state or local law, regulation, ordinance or order that regulates the employment relationship and/or employee benefits (including wage claims of all types, whether for non-payment, late payment, overtime, bonuses, commissions, deductions and/or penalties). 

 5. Release Covers Claims Against Related Parties. 

For purposes of this Release the terms “4Front” and the “Company” include 4Front and all of its past, present and future parents, subsidiaries and affiliates, and other current or former related entities thereof, and all of the past, present, and future officers, directors, employees, agents, members, insurers, legal counsel, and successors and assigns of said entities. Therefore, the claims released include claims I have against any such persons or entities. 

6. The Terms “Claims” and “Release” are Construed Broadly. 

As used in this Release, the term “claims” shall be construed broadly and shall be read to include, for example, the terms “rights,” “causes of action (whether arising in law or equity),” “damages,” “demands,” “obligations,” “grievances” and “liabilities” of any kind or character. Similarly, the term “release” shall be construed broadly and shall be read to include, for example, the terms “discharge” and “waive.” Nothing in this Release is a waiver of my right to file any charge or complaint with administrative agencies such as the United States Equal Employment Opportunity Commission which, as a matter of law, I cannot be prohibited from or punished for filing (hereafter, “Excepted Charge”), although 4Front’s acknowledgment of this exception does not limit the scope of the waiver and release in paragraphs 2-7 herein, and I waive any right to recover damages or obtain individual relief that might otherwise result from the filing of any Excepted Charge, with regard to any claim released herein. 

7. Release Binding on Employee and Related Parties. 

This Release shall be binding upon me and my spouse, agents, attorneys, personal representatives, executors, administrators, heirs, beneficiaries, successors, and assigns. 

8. Additional Consideration. 

I have executed this Release in consideration for the payments and benefits described in paragraph 1 above. I acknowledge that these payments and benefits represent consideration in addition to anything of value that I am otherwise entitled to receive from the Company. These payments and benefits are sufficient to support this Release. 

 

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9. Opportunity to Consider this Release; Consultation with Attorney. 

I have read this Release and fully understand its terms. I am hereby being offered seven (7) calendar days following the date on which this Release was presented to me to consider this Release. I am hereby advised in writing to consult with an attorney before signing this Release and I have done so or had the opportunity to do so. 

10. All Representations in Documents. 

In entering into this Release I acknowledge that I have not relied on any verbal or written representations by any Company representative other than those explicitly set forth in this Release. This Release sets forth the entire agreement between the Company and me and completely supersedes any prior agreements, oral statements or understandings concerning the termination of my employment and any benefits I might receive following that termination. This Release does not supersede my obligations and the Company’s rights under any agreement I have previously signed or executed with the Company pertaining to matters of confidentiality, intellectual property or restrictive employment covenants. I agree that I am not entitled to any other severance or benefits, vacation, bonus, commission or other payments of any kind, except those described in this Release. 

11. Voluntary Agreement. 

I have read this Release and fully understand its terms. I have entered into this Release knowingly and voluntarily and understand that its terms are binding on me. 

12. Partial Invalidity of Release. 

If any part of this Release is held to be unenforceable, invalid or void, then the balance of this Release shall nonetheless remain in full force and effect to the extent permitted by law. 

13. Headings. 

The headings and subheadings in this Release are inserted for convenience and reference only and are not to be used in construing the Release. 

14. Applicable Law and Venue. 

Washington law will apply in connection with any dispute or proceeding concerning this Release. Insofar as federal law does not control, venue as to any dispute regarding this Release, or interpretation thereof, shall be exclusively in Phoenix, Arizona. 

15. Relationship of Severance Benefits to My Rights Under Other Benefit Plans. 

I understand that the payments payable to me under paragraph 1 above shall not be taken into account for purposes of determining my benefits under any other qualified or nonqualified plans of the Company, including accrued rights I may have, if any, to retirement benefits under 4Front’s pension or other retirement plans. 

16. No Sexual Harassment. 

I represent and warrant that I have not suffered any sexual harassment or sexual abuse in connection with my employment by the Company, or by any officer, manager, employee, agent, customer, or supplier of the Company; that I am not currently aware of any facts or circumstances that would give rise to a sexual harassment or sexual abuse claim against the Company; and that this Release and the Severance is not a settlement or payment related to a sexual harassment or sexual abuse claim. 

17. Confidentiality. 

I agree that I will not disclose, disseminate, or publicize, or cause or permit to be disclosed, disseminated, or publicized, any of the terms of this Release or the fact that I have entered into this Release, to any person, corporation, association, government agency, or other entity, other than my spouse, legal counsel, and tax advisor, except (1) to the extent 

 

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necessary to report income to appropriate taxing authorities, (2) in response to an order or subpoena of a court or government agency of competent jurisdiction, or (3) to make truthful statements about the facts and circumstances regarding the termination of my employment (i.e., that such termination was voluntary on my part). However, notice of receipt of such order or subpoena shall be immediately communicated to 4Front telephonically and in writing, so that 4Front shall have an opportunity to intervene and assert what rights it has to nondisclosure prior to my response to such order or subpoena. I agree that my spouse, legal counsel, and tax advisor shall be bound by this confidentiality provision. Any violation of this section is considered a material breach of this Release, subjecting me to a claim for damages resulting from such breach. If I violate this confidentiality provision before 4Front makes the payment specified in paragraph 1 above, then 4Front’s obligation to make such payment shall be extinguished; however, all other terms of this Release shall remain in effect. 

18. Confidential/Proprietary Information and Intellectual Property. 

Notwithstanding any concurrent obligations that I owe to 4Front relating to its confidential or proprietary information or Intellectual Property, that may or may not arise from separate employment-related agreements I have previously executed with 4Front, the applicability of which shall continue and be effective after my execution of this Release, I agree to keep confidential and not to use or disclose to others any secret or confidential information, proprietary information, or trade secrets of 4Front or its members, customers, or insureds that I acquired during my employment with 4Front. I also agree to disclose to any future employers the existence and extent of any obligations that I owe to 4Front relating to its confidential or proprietary information or Intellectual Property, including the existence of any employment-related agreements I have previously executed with 4Front. “Confidential information” includes information, including electronically stored information, that is proprietary to 4Front and not publicly known, that an employee conceives, originates, discovers or develops, in whole or in part, or that was obtained or accessed as a result of employment with 4Front. I further agree that all materials, reports, data, plans, designs, concepts, models, documentation, software, products and modifications (“Inventions”) I developed during my employment with 4Front are the property of 4Front and deemed “works made for hire.” I hereby assign and transfer to 4Front any right, title, or interest in such inventions, including, but not limited to, patent, trademark, service mark, copyright, industry property protection, trade secret, or any other intellectual property rights (“Intellectual Property”). I agree to cooperate fully with 4Front by executing any necessary documents and taking any other steps as may be reasonably requested by 4Front to perfect 4Front’s sole and exclusive ownership of Inventions and to pursue Intellectual Property in the United States and any foreign countries. I understand that nothing in this Release prohibits me from reporting to any governmental authority information concerning possible violations of law or regulation and that I may disclose trade secret information to a government official or to an attorney and use it in certain court proceedings without fear of prosecution, liability, or retaliation, provided I do so in compliance with 18 U.S.C. § 1833. 

19. Non-Disparagement; Social Media. 

I agree not to at any time make, publish, or communicate to any person or entity or in any public forum (including, but not limited to, social media) any defamatory or disparaging remarks, comments or statements concerning the Company or any of its businesses, operations, assets, products, services, practices (including, but not limited to, human resources and other company practices), shareholders, lenders, actual or prospective investors, directors, officers, employees, consultants or independent contractors. In addition, I agree to update my profile on social media websites (such as LinkedIn) to reflect that I am no longer an employee of the Company. If I violate this non-disparagement provision before 4Front makes the payment specified in paragraph 1 above, then 4Front’s obligation to make such payment shall be extinguished; however, all other terms of this Release shall remain in effect. 

Nothing herein shall be construed to restrict or impede me from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. I agree to promptly notify the Company in writing of any such order. 

20. Non-Competition and Non-Solicitation. 

For a period of twelve (12) months after the Termination Date (the “Restricted Period”), I agree not to, directly or indirectly: 

	
 
	
(a)
	
engage, own, manage, operate, control, aid or assist another in the operation, organization or promotion of, be employed by, participate in, advise, or engage in any manner with the ownership, management, operation or control of any business, which has a place of business or regularly conducts business in the Restricted Territory (as defined below) and is a Competing Business (as defined below); or 

 

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(b)
	
solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any person then-employed or then-engaged by 4Front, or otherwise encourage any such person to perform services for any other individual or entity, including me. 

For purposes of this Release, the term “Restricted Territory” means King County, Washington, and the term “Competing Business” means services or products that are similar to or competitive with those which the Company, or its predecessors, provided as of February 14, 2019, in the Restricted Territory. Nothing in this section is intended to, or shall be interpreted to, restrict my ability to practice law in the state of Washington. 

21. Remedies. 

In the event of a breach or threatened breach by me of paragraphs 17, 18, 19 or 20 of this Release, I hereby consent and agree that 4Front shall be entitled to obtain, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, and that money damages would not afford an adequate remedy, without the necessity of showing any actual damages, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief. 

 

22. Return of 4Front Property. 

I agree to return all 4Front documents and other 4Front property currently in my possession, care, custody, or control within the time frame specified by 4Front during my out-processing. Severance benefits will be contingent on my timely return of 4Front property in reasonable condition. 

23. Availability and Cooperation. 

I agree to cooperate, at the request of 4Front, in the defense and/or prosecution of any charges, claims, and/or lawsuits relating to matters occurring during the period of my employment and about which I may have relevant information. In addition, I agree to make myself available to 4Front and its representatives, upon request, to assist with transitioning my duties and related matters. 

24. Section 409A of the Code. 

This Release shall comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or an exception thereto and each provision of the Release shall be interpreted, to the extent possible, to comply with Section 409A or an exception thereto. Nevertheless, 4Front does not and cannot guarantee any particular tax effect or treatment of the amounts due under this Release. Except for 4Front’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to you, 4Front will not be responsible for the payment of any applicable taxes on compensation paid or provided pursuant to this Release. Notwithstanding any other provision of this Release to the contrary, neither the time nor schedule of any payment under this Release may be accelerated or subject to further deferral except as permitted by Section 409A of the Code and the applicable regulations. You do not have any right to make any election regarding the time or form of any payment due under this Release. Notwithstanding anything in this Release to the contrary, if 4Front concludes, in the exercise of its discretion, that the severance benefits described in this Release are subject to Section 409A of the Code no severance payment will be paid prior to your “separation from service” as defined in Treasury Regulation Section 1.409A-1(h) (applying the default rules of Treasury Regulation Section 1.409A-1(h)). Installment payments shall be treated as separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii). 

If the severance benefits described in this Release are subject to Section 409A of the Code, and if you are a “specified employee” as defined in Treasury Regulation Section 1.409A-1(i)(1) on the date of your termination of employment, such payments shall not begin until the first day of the seventh month following your “separation from service” as defined in Treasury Regulation Section 1.409A-1(h) (applying the default rules of Treasury Regulation Section 1.409A-1(h)). 

[Signature Page Follows] 

 

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Jerry Derevyanny
	
 
	
 

	
 
	
 
	
SS# ###-##-####

	
Employee Name (Please Print)
	
 
	
 

	
 
	
 
	
 

	
/s/ Jerry Derevyanny
	
 
	
Date 6/26/2020

	
Employee Signature
	
 
	
 

 

Received and acknowledged by: 

4FRONT VENTURES CORP. 

 

 

	
By:
	
/s/ Leo Gontmakher
	
 
	
 

	
Name:
	
Leo Gontmakher
	
 
	
Date 6/30/2020

	
Title:
	
CEO
	
 
	
 

 

EXHIBIT A 

Option Certificate (New Grant) 

(See attached) 

 

 

6ffntf-ex1015_689.htm

 

Exhibit 10.15 

AMENDED AND RESTATED CONSULTING AGREEMENT 

This Amended and Restated Consulting Agreement, dated as of November 12, 2020 (this “Agreement”), is made and entered into by and among Ag-Grow Imports, LLC, a Washington limited liability company (the “Company”), 4Front Ventures Corp., a corporation amalgamated under the laws of the Province of British Columbia, Canada (“4Front”), and Maha Consulting LLC, a Puerto Rican limited liability company (“Consultant”). 

ARTICLE 1 

SCOPE OF WORK/COMPENSATION 

1.1 Services. The Company has engaged Consultant to provide services in connection with the Company’s recreational cannabis growing operations, and 4Front has engaged Consultant to provide leadership services. Consultant, by and through its employees and/or principals, will provide services to the Company and 4Front, respectively, as specified in the attached Scope of Work (collectively, the “consulting services” or the “services”). The parties agree to mutually review the Scope of Work periodically (and no less than annually) during the term of this Agreement, and to update the Scope of Work attached hereto to incorporate any changes that are mutually agreed upon. 

1.2 Compensation. The Company shall pay to Consultant USD $33,333.33 per month for services rendered to the Company and 4Front under this Agreement (it being acknowledged that no separate consideration will be paid by 4Front hereunder). The monthly compensation shall be paid on the first of the month following the month the services were provided. For the avoidance of doubt, the monthly compensation shall be paid regardless of the number of consulting hours actually provided by Consultant in a particular month. The Company and/or 4Front may, in its sole discretion, pay cash bonuses and/or issue equity incentive awards to Consultant from time to time based on Consultant’s performance hereunder. 

1.3 Confidentiality. In order for Consultant to perform the consulting services, it may be necessary for the Company and/or 4Front to provide Consultant with Confidential Information (as defined below) regarding the Company’s and/or 4Front’s business and products. The Company and 4Front will rely heavily upon Consultant’s integrity and prudent judgment to use this information only in the best interests of the Company and/or 4Front, respectively. 

1.4 Standard of Conduct/Remote Work. In rendering consulting services under this Agreement, Consultant shall conform to high professional standards of work and business ethics, and shall comply with all applicable federal, state, and local laws and regulations. Consultant shall not use time, materials, or equipment of the Company or 4Front without the prior written consent of the Company or 4Front, as applicable. In no event shall Consultant take any action or accept any assistance or engage in any activity that would result in any university, governmental body, research institute, or other person, entity, or organization acquiring any rights of any nature in the results of work performed by or for the Company or 4Front. 

Each of the Company and 4Front acknowledges that, from the outset of this Agreement, Consultant’s services will be provided remotely, and that physical presence upon the Company’s or 4Front’s premises will not be required in order to satisfactorily perform the consulting services. Without limitation, each of the Company and 4Front agrees that any consulting services may be performed from Puerto Rico. 

1.5 Outside Services. Other than employees and/or principals of Consultant, Consultant shall not use the service of any other person, entity, or organization in the performance of Consultant’s duties without the prior written consent of an authorized officer of the Company or the Board of Directors of 4Front (or its designee), as applicable. Should the Company or 4Front consent to the use by Consultant of the services of any other person, entity, or organization, no information regarding the services to be performed under this Agreement shall be disclosed to that person, entity, or organization until such person, entity, or organization has executed an agreement to protect the confidentiality of the Company’s or 4Front’s Confidential Information (as defined in Article 4) and the Company’s or 4Front’s absolute and complete ownership of all right, title, and interest in the work performed under this Agreement. 

 

1.6 Reports. Consultant shall periodically provide the Company and 4Front with written reports of its observations and conclusions regarding the consulting services. Upon the termination of this Agreement, Consultant shall, upon the request of Company or 4Front, prepare a final report of Consultant’s activities. 

1.7 Insurance. During the term of this Agreement, Consultant shall maintain in force adequate workers’ compensation, commercial general liability, errors and omissions, and other forms of insurance, in each case with insurers reasonably acceptable to the Company and 4Front, with policy limits sufficient to protect and indemnify the Company, 4Front, and their affiliates, and each of their respective subsidiaries, shareholders, controlling persons, directors, officers, employees, agents, and successors and assigns, from any losses resulting from your acts or omissions or the acts or omissions of Consultant’s 

 

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agents, contractors, servants, or employees. The Company and 4Front shall be listed as additional insured under each such policy, and Consultant shall forward a certificate of insurance verifying such insurance upon the Company’s or 4Front’s written request. 

ARTICLE 2 

INDEPENDENT CONTRACTOR 

2.1 Independent Contractor. Consultant is an independent contractor and is not an employee, partner, or co-venturer of, or in any other service relationship with, the Company and/or 4Front. The manner in which Consultant’s services are rendered shall be within Consultant’s sole control and discretion. Consultant is not authorized to speak for, represent, or obligate the Company or 4Front in any manner without the prior express written authorization from an authorized officer of the Company or the Board of Directors of 4Front (or its designee). In addition, neither Consultant nor any of Consultant’s principals or employees will be entitled to participate in any employee benefit plans or programs sponsored or maintained by the Company and/or 4Front from time to time. 

2.2 Taxes. Consultant shall be responsible for any and all taxes arising from compensation and other amounts paid under this Agreement. It is contemplated that no federal, state, or local income tax, or payroll tax of any kind, shall be withheld or paid by the Company or 4Front on behalf of Consultant or its employees. Consultant acknowledges that, in the event any services are provided by Consultant from the United States (which are not contemplated hereunder), the Company or 4Front is authorized to withhold payments for tax as may be required under the laws of the United States. Consultant further agrees to provide a Form W-8BEN-E to the Company. 

ARTICLE 3 

TERM AND TERMINATION 

3.1 Term. This Agreement shall be effective as of November 12, 2020 and shall continue in full force and effect for a period of 12 months. This Agreement shall automatically renew for additional 12-month periods unless (1) the parties agree otherwise or (2) any party delivers written notice of non-renewal to the other party(ies) hereto at least 30 days prior to the expiration of the then-current term. 

3.2 Termination. The Company or 4Front may terminate this Agreement for “Cause,” after giving Consultant written notice of the reason. Cause means: (1) Consultant has breached the provisions of Articles 1, 4 or 6 of this Agreement in any respect, or materially breached any other provision of this Agreement and the breach continues for 30 days following receipt of a notice from the Company or 4Front; (2) Consultant has committed fraud, misappropriation, or embezzlement in connection with the Company’ s and/or 4Front’s business; (3) Consultant has been convicted of a felony; or (4) Consultant’s use of narcotics, liquor, or illicit drugs has a detrimental effect on the performance of its responsibilities, or otherwise could threaten licenses or authorizations necessary to the Company or 4Front, as determined by the Company or 4Front. For the avoidance of doubt, all references to “Consultant” in this Section 3.2 shall be interpreted to also refer to each of Consultant’s principals, employees, agents or other representatives, and to the extent that Consultant (or any of Consultant’s principals, employees, agents or other representatives) serve as an officer of 4Front, nothing herein shall be interpreted to limit 4Front’s ability to remove or replace such officer in accordance with applicable law and the Bylaws of 4Front. 

 

3.3 Responsibility upon Termination. Any equipment provided by the Company or 4Front to Consultant in connection with or furtherance of Consultant’s services under this Agreement, including, but not limited to, computers, laptops, and personal management tools, shall, immediately upon the termination of this Agreement, be returned to the Company or 4Front, as applicable. 

3.4 Survival. The provisions of Articles 4 , 5, 6, and 7 of this Agreement shall survive the termination of this Agreement and remain in full force and effect thereafter. 

ARTICLE 4 

CONFIDENTIAL INFORMATION 

4.1 Obligation of Confidentiality. In performing consulting services under this Agreement, Consultant may be exposed to and will be required to use certain “Confidential Information” (as hereinafter defined) of the Company and/or 4Front. Consultant agrees that Consultant will not and Consultant’s employees, agents, or representatives will not use, directly or indirectly, such Confidential Information for the benefit of any person, entity, or organization other than the Company and/or 4Front, as applicable, or disclose such Confidential Information without the written authorization of any authorized 

 

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representative of the Company or 4Front, as applicable, either during or after the term of this Agreement, for as long as such information retains the characteristics of Confidential Information. 

4.2 Definition. “Confidential Information” means information not generally known and proprietary to the Company or 4Front (or to a third party for whom the Company or 4Front is performing work), as applicable, including, without limitation, information concerning any patents or trade secrets, confidential or secret designs, processes, formulae, source codes, plans, devices or material, research and development, proprietary software, analysis, techniques, materials, or designs (whether or not patented or patentable), directly or indirectly useful in any aspect of the business of the Company or 4Front, any vendor names, customer and supplier lists, databases, management systems and sales and marketing plans of the Company or 4Front, any confidential secret development or research work of the Company or 4Front, or any other confidential information or proprietary aspects of the business of the Company or 4Front. All information which Consultant acquires or becomes acquainted with during the period of this Agreement, whether developed by Consultant or by others, which Consultant has a reasonable basis to believe to be Confidential Information, or which is treated by the Company or 4Front as being Confidential Information, shall be presumed to be Confidential Information. 

4.3 Property of the Company and 4Front. Consultant agrees that all plans, manuals, and specific materials, including but not limited to any patents; trade secrets; confidential designs, processes, formulae, source codes, devices or material; proprietary software, analysis, techniques, materials, or designs (whether or not patented or patentable) directly or indirectly useful in any aspect of the business of the Company; vendor, customer, or supplier lists, databases, and management systems; and confidential research or development of the Company or 4Front, developed by the Consultant on behalf of the Company or 4Front in connection with services rendered under this Agreement, are and shall remain the exclusive property of the Company or 4Front, as applicable. Promptly upon the expiration or termination of this Agreement, or upon the request of the Company or 4Front, as applicable, Consultant shall return to the Company or 4Front all documents and tangible items, including samples, provided to Consultant or created by Consultant for use in connection with services to be rendered hereunder, including, without limitation, all Confidential Information, together with all copies and abstracts thereof. 

 

ARTICLE 5 

RIGHTS AND DATA 

All drawings, models, designs, formulas, methods, documents, and tangible items prepared for and submitted to the Company or 4Front by Consultant in connection with the services rendered under this Agreement shall belong exclusively to the Company or 4Front, as applicable, and shall be deemed to be works made for hire (the “Deliverable Items”). To the extent that any of the Deliverable Items may not, by operation of law, be works made for hire, Consultant hereby assigns to the Company or 4Front, as applicable, the ownership of trademark, copyright, mask work, or any other assignable intellectual property rights in the Deliverable Items, and the Company or 4Front shall have the right to obtain and hold in its own name any trademark, copyright, or mask work registration, and any other registrations and similar protection which may be available in the Deliverable Items. Consultant agrees to give the Company or 4Front (or its designees) all assistance reasonably required to perfect such rights. 

ARTICLE 6 

CONFLICT OF INTEREST AND NON-SOLICITATION 

6.1 Conflict of Interest. Consultant covenants and agrees not to consult or provide any services in any manner or capacity to a direct competitor of the Company or 4Front during the duration of this Agreement unless express written authorization to do so is given by an authorized representative of the Company or 4Front, as applicable. A direct competitor of the Company for purposes of this Agreement is defined as any individual, partnership, corporation, and/or other business entity that engages in the business of recreational cannabis production or processing in the state of Washington. A direct competitor of 4Front for purposes of this Agreement is defined as any individual, partnership, corporation, and/or other business entity that engages in the business of owning, managing or operating licensed recreational and/or medical cannabis cultivation, production, processing and/or dispensary facilities in the United States. 

6.2 Non-Solicitation. Consultant covenants and agrees that during the term of this Agreement, and for a 12-month period after the termination of this Agreement, Consultant will not, directly or indirectly, through an existing corporation, unincorporated business, affiliated party, or otherwise, solicit, hire for employment or work with, on a part-time, consulting, advising, or any other basis, other than on behalf of the Company or 4Front any employee or independent contractor employed by the Company or 4Front while Consultant is performing services for the Company and 4Front. 

 

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ARTICLE 7 

RIGHT TO INJUNCTIVE RELIEF 

Consultant acknowledges that the terms of Articles 4, 5, and 6 of this Agreement are reasonably necessary to protect the legitimate interests of the Company and 4Front, are reasonable in scope and duration, and are not unduly restrictive. Consultant further acknowledges that a breach of any of the terms of Articles 4, 5, or 6 of this Agreement will render irreparable harm to the Company or 4Front, as applicable, for which a remedy at law for breach of the Agreement is inadequate, and that the Company and/or 4Front shall therefore be entitled to seek any and all equitable relief, including, but not limited to, injunctive relief, and to any other remedy that may be available under any applicable law or agreement between the parties. Consultant acknowledges that an award of damages to the Company or 4Front, as applicable, does not preclude a court from ordering injunctive relief. Both damages and injunctive relief shall be proper modes of relief and are not to be considered as alternative remedies. 

ARTICLE 8 

GENERAL PROVISIONS 

8.1 Indemnification. Consultant shall defend, indemnify, and hold harmless each of the Company and 4Front, their affiliates, and each of their respective shareholders, directors, officers, employees, agents, successors, and assigns from and against any and all losses, damages, liabilities, deficiencies, actions, judgments, interest, awards, penalties, fines, costs, or expenses of whatever kind (including reasonable attorneys’ fees) arising out of or resulting from: (1) bodily injury, death of any person, or damage to real or tangible personal property resulting from Consultant’s (or its agents’) acts or omissions, (2) Consultant’s breach of any representation, warranty, covenant, or other obligation set forth in this Agreement, or (3) taxes of any kind payable in respect of the compensation payable to Consultant hereunder. This Section 8.1 shall survive the termination of this Agreement and remain in full force and effect thereafter. 

 

8.2 Construction of Terms. If any provision of this Agreement is held unenforceable by a court of competent jurisdiction, that provision shall be severed and shall not affect the validity or enforceability of the remaining provisions. 

8.3 Governing Law and Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws (and not the laws of conflicts) of the State of Washington. The Parties agree and submit to the sole jurisdiction of the courts of the State of Washington for any disputes arising out of this Agreement. 

8.4 Complete Agreement. This Agreement constitutes the complete agreement and sets forth the entire understanding and agreement of the parties as to the subject matter of this Agreement and supersedes all prior discussions and understandings in respect to the subject of this Agreement, whether written or oral. Without limitation, this Agreement supersedes and replaces in its entirety that certain Consulting Agreement, dated effective January 1, 2017, that was previously executed by and between Superior Gardens LLC (d/b/a Northwest Cannabis Solutions) and Consultant. 

8.5 Dispute Resolution. If there is any dispute or controversy between the parties arising out of or relating to this Agreement, the parties agree that such dispute or controversy will be arbitrated in accordance with proceedings under American Arbitration Association rules, and such arbitration will be the exclusive dispute resolution method under this Agreement. The decision and award determined by such arbitration will be final and binding upon both parties. All costs and expenses, including reasonable attorneys’ fees and experts’ fees, of all parties incurred in any dispute that is determined and/or settled by arbitration pursuant to this Agreement will be borne by the party determined to be liable in respect of such dispute; provided, however, that if complete liability is not assessed against only one party, the parties will share the total costs in proportion to their respective amounts of liability so determined. Except where clearly prevented by the area in dispute, both parties agree to continue performing their respective obligations under this Agreement until the dispute is resolved. 

8.6 Modification. No modification, termination, or attempted waiver of this Agreement, or any provision thereof, shall be valid unless in writing signed by the party against whom the same is sought to be enforced. 

8.7 Waiver of Breach. The waiver by a party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other or subsequent breach by the party in breach. 

8.8 Successors and Assigns. This Agreement may not be assigned by any party without the prior written consent of the other parties hereto; provided, however, that the Agreement shall be assignable by the Company or 4Front without Consultant’s consent in the event the Company or 4Front, as applicable, is acquired by or merged into another corporation or business entity. The benefits and obligations of this Agreement shall be binding upon and inure to the parties hereto, their successors and assigns. 

 

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8.9 No Conflict. Consultant represents and warrants to each of the Company and 4Front that Consultant has not previously assumed any obligations inconsistent with those undertaken by Consultant under this Agreement. 

8.10 Execution of Agreement. This Agreement may be executed in multiple counterparts and by electronic or facsimile signature, each of which shall be deemed an original and all of which together shall constitute one instrument. 

[SIGNATURE PAGES FOLLOW] 

 

IN WITNESS WHEREOF the parties have hereunto set their respective hands and seals as at the date written above. 

 

	
 
	
 
	
 
	
 

	
CONSULTANT: Maha Consulting LLC
	
 
	
 
	
COMPANY: Ag-Grow Imports, LLC

	
 
	
 
	
 
	
 

	
Per:
	
 
	
 
	
By: Brightleaf Development, LLC – its Sole Member

	
/s/ Leonid Gontmakher

 
	
 
	
 

	
By: 4Front Nevada Corp, its Sole Member

	
Name: Leonid Gontmakher
	
 
	
 

	
By: 4Front Ventures Corp, it sole stockholder

	
Title: CEO                    
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
/s/ Joshua N. Rosen

 

	
 
	
 
	
 
	
Name: Joshua N. Rosen

	
 
	
 
	
 
	
Title: Executive Chairman

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
4FRONT: 4Front Ventures Corp.

	
 
	
 
	
 
	
Per:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
/s/ Joshua N. Rosen

 

	
 
	
 
	
 
	
Name: Joshua N. Rosen

	
 
	
 
	
 
	
Title: Executive Chairman

 

SCOPE OF WORK 

Ag-Grow Imports, LLC: 

Supporting the Company’s IP, packaging and services agreement with Superior Gardens (dba Northwest Cannabis Solutions) and 7Point, including the: 

	
 
	
1.
	
assessment of new strain potential, and planning revision and refinement of current strains; 

	
 
	
2.
	
management and scheduling of all growing operations; and 

	
 
	
3.
	
assistance, counseling, and advice similar to that of a “master grower,” advising on plant health and best practices. 

4Front Ventures Corp.: 

Support 4Front’s key infrastructure projects, most notably: 

	
 
	
1.
	
completing construction and commencing operations at Commerce, CA manufacturing facility; 

	
 
	
2.
	
completing infrastructure upgrades at 4Front’s Georgetown, MA and Elk Grove Village production facilities; 

	
 
	
3.
	
supporting budgeting and capital raising process to expand 4Front’s presence in Massachusetts and Illinois; and 

	
 
	
4.
	
supporting additional production facility project in Illinois assuming properly capitalized. 

 

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Provide leadership services, including: 

	
 
	
1.
	
collaborating with 4Front’s leadership team and Board of Directors to drive and sustain profitability, while capitalizing on the growth opportunities in 4Front’s key markets; and 

	
 
	
2.
	
collaborating with 4Front’s leadership team and Board of Directors to set and update strategic direction and identify the proper resources to support execution. 

 

 

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