Document:

ex_165811.htm

Exhibit 10.1

 

 

SPONSOR SUPPORT AGREEMENT

 

This SPONSOR SUPPORT AGREEMENT (this “Agreement”), dated as of November 27, 2019, is made by and between HighPeak Pure Acquisition, LLC, a Delaware limited liability company (the “Sponsor”), and Pure Acquisition Corp., a Delaware corporation (“Parent”). The Sponsor and Parent shall be referred to herein from time to time collectively as the “Parties.” Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Business Combination Agreement (as defined below).

 

WHEREAS, Parent and certain other parties, including affiliates of the Sponsor, entered into that certain Business Combination Agreement, dated as of the date hereof (as it may be amended, restated or otherwise modified from time to time, the “Business Combination Agreement”); and

 

WHEREAS, the Business Combination Agreement contemplates that the Parties will enter into this Agreement concurrently with the entry into of the Business Combination Agreement, and that, pursuant to the terms hereof, the Sponsor shall surrender certain of its equity interests in Parent as of immediately prior to the Merger Effective Time and agree to certain covenants and agreements related to the transactions contemplated by the Business Combination Agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.     Representations and Warranties. The Sponsor represents and warrants to Parent that the following statements are true and correct:

 

(a)     The Sponsor has the requisite limited liability company power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Sponsor. This Agreement has been duly and validly executed and delivered by the Sponsor and constitutes a valid, legal and binding agreement of the Sponsor (assuming this Agreement has been duly authorized, executed and delivered by the other Party), enforceable against the Sponsor in accordance with its terms (subject to Creditors’ Rights).

 

(b)     The Sponsor is the beneficial owner of 10,206,000 shares of Parent Class B Common Stock (the “Founder Shares”) as of the date hereof. Immediately prior to the Merger Effective Time and prior to the forfeiture of the Forfeited Securities (as defined below), all of the Forfeited Securities will be owned by the Sponsor. The Sponsor has, or will have as of the date hereof and immediately prior to giving effect to the transactions occurring on the Closing Date, as applicable, valid, good and marketable title to such Forfeited Securities, free and clear of all Encumbrances (other than Encumbrances pursuant to this Agreement or any other Transaction Agreement and transfer restrictions under applicable Law or under the Organizational Documents of Parent). Except for this Agreement, the Sponsor is not party to any option, warrant, purchase right, or other contract or commitment that could require the Sponsor to sell, transfer, or otherwise dispose of the Forfeited Securities. Neither the Sponsor, nor any transferees of any equity securities of Parent initially held by the Sponsor, has asserted or perfected any rights to adjustment or other anti-dilution protections with respect to any equity securities of Parent (including the Founder Shares) (whether in connection with the transactions contemplated by the Business Combination Agreement or otherwise).

 

 

 

 

(c)     The execution, delivery and performance by the Sponsor of this Agreement and the consummation by the Sponsor of the transactions contemplated hereby do not: (i) conflict with or result in any breach of any provision of the Organizational Documents of the Sponsor, (ii) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default or give rise to any right of termination, cancellation or acceleration under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement or other instrument or obligation to which the Sponsor is a party or by which its properties or assets may be bound, (iii) violate any Law of any Governmental Entity applicable to the Sponsor or its Subsidiaries, or any of their respective properties or assets (including the Founder Shares), as applicable, or (iv) result in the creation of any Encumbrance (other than Encumbrances pursuant to this Agreement or any other Transaction Agreement to which it is subject or bound and transfer restrictions under applicable Law or under the Organizational Documents of Parent) upon its assets (including the Founder Shares), except in the case of clauses (ii), (iii) and (iv) above, for violations which would not reasonably be expected to materially impact, impair or delay or prevent the ability of the Sponsor to consummate the transactions contemplated by this Agreement or have a material adverse effect on the ability of the Sponsor to perform its obligations hereunder.

 

2.     Sponsor Forfeiture. The Sponsor hereby acknowledges and agrees that, immediately prior to the Merger Effective Time, the Sponsor shall automatically be deemed to irrevocably transfer to Parent, surrender and forfeit for no consideration 760,000 Founder Shares (such Founder Shares, the “Forfeited Securities”) and that from and after such time such Founder Shares shall be deemed to be cancelled and no longer outstanding.

 

3.     Covenants.

 

(a)     Subject to the terms and conditions of this Agreement, the Sponsor hereby unconditionally and irrevocably agrees to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated by Section 2 of this Agreement.

 

(b)     From the date hereof until the earlier of the Closing and the termination of the Business Combination Agreement in accordance with its terms, the Sponsor hereby unconditionally and irrevocably agrees that it shall not (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, with respect to any Forfeited Securities, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Forfeited Securities or (iii) publicly announce any intention to effect any transaction specified in clauses (i) or (ii).

 

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4.     Termination. This Agreement shall terminate, and have no further force and effect, if the Business Combination Agreement is terminated in accordance with its terms prior to the Closing under the Business Combination Agreement.

 

5.     Governing Law; Venue; Waiver of Jury Trial.

 

(a)     THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

 

(b)     THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE (OR, IF THE COURT OF CHANCERY OF THE STATE OF DELAWARE OR THE DELAWARE SUPREME COURT DETERMINES THAT THE COURT OF CHANCERY DOES NOT HAVE OR SHOULD NOT EXERCISE SUBJECT MATTER JURISDICTION OVER SUCH MATTER, THE SUPERIOR COURT OF THE STATE OF DELAWARE) AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF DELAWARE SOLELY IN CONNECTION WITH ANY DISPUTE THAT ARISES IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT AND THE DOCUMENTS REFERRED TO IN THIS AGREEMENT OR IN RESPECT OF THE TRANSACTIONS CONTEMPLATED HEREBY, AND HEREBY WAIVE, AND AGREE NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR INTERPRETATION OR ENFORCEMENT HEREOF OR ANY SUCH DOCUMENT THAT IT IS NOT SUBJECT THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT THIS AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS, AND THE PARTIES IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO SUCH ACTION, SUIT OR PROCEEDING SHALL BE HEARD AND DETERMINED EXCLUSIVELY BY SUCH A DELAWARE FEDERAL OR STATE COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF SUCH DISPUTE AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH SUCH ACTION, SUIT OR PROCEEDING IN THE MANNER PROVIDED IN SECTION 6 OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW SHALL BE VALID AND SUFFICIENT SERVICE THEREOF.

 

(c)     EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; (II) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THE FOREGOING WAIVER; (III) SUCH PARTY MAKES THE FOREGOING WAIVER VOLUNTARILY AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 5.

 

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6.     Notices. All notices, requests and other communications to any Party under, or otherwise in connection with, this Agreement shall be in writing and shall be deemed to have been duly given (i) if delivered in person; (ii) if transmitted by facsimile (but only upon confirmation of transmission by the transmitting equipment); (iii) if transmitted by e-mail (but only upon confirmation of transmission); or (iv) if transmitted by national overnight courier, in each case, as addressed as follows:

 

	 	(a)	If to the Sponsor, to:
	 	 	 
	 	 	
			HighPeak Pure Acquisition, LLC

			421 W. 3rd Street, Suite 1000

			Fort Worth, Texas 76102

			Attention: Ryan Hightower

			E-mail: * * *

			 

			with a required copy to (which copy shall not constitute notice):

			 

			Vinson & Elkins L.L.P.

			1001 Fannin, Suite 2500

			Houston, Texas 77002

			
	 	 	Attention:	Sarah K. Morgan and
	 	 	 	Jeffery B. Floyd
	 	 	Facsimile:	(713) 615-5234 and
	 	 	 	(713) 615-5660
	 	 	E-mail:	smorgan@velaw.com and
	 	 	 	jfloyd@velaw.com
	 	 	 	 
	 	(b)	If to Parent, to:
	 	 	 
	 	 	
			Pure Acquisition Corp.

			421 W. 3rd Street, Suite 1000

			Fort Worth, Texas 76102

			Attention: Steve Tholen

			E-mail: * * *

			 

			with a required copy to (which copy shall not constitute notice):

			 

			Hunton Andrews Kurth LLP

			600 Travis Street, Suite 4200

			Houston, Texas 77002

			Attention: G. Michael O’Leary

			Facsimile: (713) 220-4285

			E-mail: moleary@HuntonAK.com

			

 

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7.     Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. Each Party agrees that, in the event of any breach or threatened breach by any other Party of any covenant or obligation contained in this Agreement, the non-breaching Party shall be entitled (in addition to any other remedy that may be available to it, including monetary damages) to seek and obtain (on behalf of itself and the third Party beneficiaries of this Agreement) (a) a decree or order of specific performance to enforce the observance and performance of such covenant or obligation and (b) an injunction restraining such breach or threatened breach. Each Party further agrees that no other Party hereto or any other Person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 7, and each Party hereto irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

 

8.     Counterparts. This Agreement may be executed in any number of counterparts, including via facsimile transmission or email in “portable document format” (“.pdf”) form, all of which shall be considered one and the same agreement, it being understood that all Parties need not sign the same counterpart.

 

9.      Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the Parties.

 

10.    Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any Party (whether by operation of law or otherwise) without the prior written consent of the other Party. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and assigns. Any purported assignment in violation of this Section 10 shall be void.

 

11.     Severability. Each Party agrees that, should any court or other competent Governmental Entity hold any provision of this Agreement or part hereof to be invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such other term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. Except as otherwise contemplated by this Agreement, in response to an order from a court or other competent Governmental Entity for any Party to take any action inconsistent herewith or not to take an action consistent herewith or required hereby, to the extent that a Party hereto took an action inconsistent with this Agreement or failed to take action consistent with this Agreement or required by this Agreement pursuant to such order, such Party shall not incur any liability or obligation unless such Party did not in good faith seek to resist or object to the imposition or entering of such order.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be duly executed on its behalf as of the day and year first above written.

 

	 	THE SPONSOR:	 
	 	 	 
	
			 

				
			HighPeak Pure Acquisition, LLC

				
			 

			
	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Jack Hightower

				
			 

			
	
			 

				
			Name:

				
			 Jack Hightower

				
			 

			
	
			 

				
			Title:

				
			 Chief Executive Officer

				
			 

			

 

 

	 	PARENT:	 
	 	 	 
	
			 

				
			PURE ACQUISITION CORP.

				
			 

			
	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Steven W. Tholen

				
			 

			
	
			 

				
			Name:

				
			 Steven W. Tholen

				
			 

			
	
			 

				
			Title:

				
			 Chief Financial Officer

				
			 

			

 

Signature Page to

Sponsor Support AgreementThis
Assignment and Conveyance Agreement (this “Agreement”) is dated November 26, 2019 and is entered into by and between
2672237 Ontario Limited, an Ontario corporation (“Assignor”), and Kinetic Group Inc., a Nevada corporation (“Assignee”).

 

For
good and valuation consideration, the receipt and sufficiency of which is hereby acknowledged, the Assignor hereby assigns, conveys
and transfers 100% of its right, title and interest in, to and under the warrant agreement and warrants forms of which attached
hereto as Annex A to the Assignee in exchange for 1/3 of the Assignee’s common stock on a Fully-diluted and fully-issued
basis to be issued, transferred and delivered to the order of Assignor (subject, in each case to beneficial ownership limitations
of 4.99% and/or 9.99% of the Assignee’s common stock) as soon as practicable upon written request of the Assignor after
the date hereof.

 

The
term “Fully-diluted and fully issued basis” means that all options, warrants or other convertible securities or instruments
or other rights to acquire common stock or any other existing or future classes of stock of the Company have been exercised or
converted, as applicable, in full regardless of whether any such options, warrants or other convertible securities or instruments
or other rights are then vested, convertible or exercisable in accordance with their terms.

 

This
Agreement shall be governed by the laws of the State of New York without reference to its conflicts of laws principles or the
conflicts of laws principles of any other jurisdiction.

 

Agreed
and accepted on the date first written above:

 

	2672237
    Ontario Limited	 
	 	 	 
	By:
    	Elisha
    Kalfa	 
	/s/
    Elisha Kalfa	 
	Title:
    	Authorized
    signatory	 
	 	 	 
	Kinetic
    Group Inc.	 
	 	 	 
	By:
    	Nathan
    Rosenberg	 
	/s/
    Nathan Rosenberg	 
	Title:
    	Authorized
    signatory	 

 

    	 	 	 

    	 

    

 

Annex
A

 

WARRANT
AGREEMENT

 

THIS
WARRANT AGREEMENT (this “Agreement”), dated as of this 26th day of November 2019 (the “Effective Date”),
is entered into by and between Fairway LLC, a Nevada limited liability company, with its principal business address at 1000 North
Green Valley Parkway, Suite 440, Las Vegas NV 89074 (the “Company”) and 2672237 Ontario Limited a corporation incorporated
under the laws of the Province of Ontario with its principal business address at 535 Millway Avenue, Unit 3, Vaughan, Ontario
L4K 3V4 (the “Investor”). The Investor and the Borrower shall be collectively referred to as “Parties”.

 

RECITALS

 

WHEREAS,
the parties entered into a promissory note and loan agreement dated May 23, 2019 (the “Original Note”), pursuant to
which the Investor received warrants convertible into thirty-three percent (33%) of all outstanding membership interests/units
of the Company on a Fully-diluted and fully-issued basis (the “Warrants”) on the earlier of (i) the date that any
initial public offering, acquisition, merger, reverse merger or other transaction not in the ordinary course of business is consummated
or (ii) any date on which the Investor elects to convert such Warrants into membership interests/units of the Company so long
as such date is no later than 12 months from the date of the Original Note at an agreed and confirmed valuation of the Company
of Nine Million Dollars ($9,000,000); and

 

WHEREAS,
in order to obtain certain tax and structuring benefits in connection with a series of transactions that will result in the Company
becoming an indirect subsidiary of Kinetic Group Inc., a Nevada corporation, the Parties now wish to (i) enter into this agreement
in respect of the Warrants and (ii) amend and restate the Original Note.

 

AGREEMENT

 

Now,
therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

		1.	Warrants.

 

1.1
In consideration for the loan made by the Investor to the Company pursuant to the Original Note, the Company hereby issues to
the Investor warrants covering 100% of the Loan (as defined in the Original Note) in the form attached hereto as Annex A and
reflecting the following terms and conditions (the “Warrants”):

 

		a.	The
                                         Warrants are convertible into thirty-three percent (33%) of all outstanding membership
                                         interests/units of the Company or, at the election of Investor in its sole discretion,
                                         common or preferred stock of any publicly-held company owned by or that owns the Company
                                         (“PubCo”) on a Fully-diluted and fully-issued basis on the earlier of (i)
                                         the date that any initial public offering, acquisition, merger, reverse merger or other
                                         transaction not in the ordinary course of business is consummated or (ii) any date on
                                         which the Investor elects to convert the Warrants into membership interests/units of
                                         the Company or common or preferred stock of PubCo so long as such date is no later than
                                         12 months from the date hereof at an agreed and confirmed valuation of the Company of
                                         Nine Million Dollars (U.S. $9,000,000). For the avoidance of doubt, it is agreed that
                                         “membership interests/units”, as used in this agreement, carry full membership/ownership
                                         rights and benefits, including, but not limited to voting rights, and are not limited
                                         to economic interests.

 

    	 	 	 

    	 

    

 

		b.	The
                                         term “Fully-diluted and fully issued basis” means that all options, warrants
                                         or other convertible securities or instruments or other rights to acquire membership
                                         interests/units or any other existing or future classes of membership interests/units
                                         of the Company or common stock or any other existing or future classes of stock of PubCo
                                         have been exercised or converted, as applicable, in full regardless of whether any such
                                         options, warrants or other convertible securities or instruments or other rights are
                                         then vested, convertible or exercisable in accordance with their terms.

 

		c.	The
                                         Warrants and the underlying membership interests/units or common stock exercisable thereto
                                         shall be collectively referred to as the “Securities.”

 

		1.2	The
                                         Warrants shall be exercisable for a period of 12 months of the Effective Date.
	 	 	 
		2.	Provisions
                                         Pertaining to Registration and Transfer of the Warrants

 

		a.	The
                                         Parties further acknowledge and are aware that the Securities may only be disposed of
                                         in compliance with respective U.S. state and U.S. federal securities laws (including
                                         without limitations, any holding period requirements). In connection with any transfer
                                         of Securities other than pursuant to an effective registration statement, the Company
                                         may require the transferor thereof to provide to the Company an opinion of counsel selected
                                         by the transferor and reasonably acceptable to the Company, the form and substance of
                                         which opinion shall be reasonably satisfactory to the Company, to the effect that such
                                         transfer does not require registration of such transferred Securities under the Securities
                                         Act of 1933, as amended (the “Securities Act”).

 

    	 	 	 

    	 

    

 

		b.	The
                                         Investor agrees to the imprinting, so long as is required by this Section 3.3 of a legend
                                         on any of the Securities in the following form:

 

“THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURIT!ES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.”

 

		c.	Certificates
                                         evidencing the Securities shall not contain any legend (including the legend set forth
                                         in this Section): (i) while a registration statement covering the resale of such security
                                         is effective under the Securities Act, (ii) following any sale of such Securities pursuant
                                         to Rule 144, (iii) if the Securities are eligible for sale under Rule 144, without the
                                         requirement for the Company to be in compliance with the current public information required
                                         under Rule 144 as to such Securities and without volume or manner-of-sale restrictions,
                                         or (iv) if such legend is not required under applicable requirements of the Securities
                                         Act (including judicial interpretations and pronouncements issued by the staff of the
                                         Securities Exchange Commission).
	 	 	 
		d.	In
                                         the event that the Investor will sell any Securities pursuant to either the registration
                                         requirements of the Securities Act, including any applicable prospectus delivery requirements,
                                         or an exemption therefrom, and that if the Securities are sold pursuant to a Registration
                                         Statement, they will be sold in compliance with the plan of distribution set forth therein,
                                         and acknowledges that the removal of the restrictive legend from certificates representing
                                         the Securities as set forth herein is predicated upon the Company’s reliance upon
                                         this understanding.
	 	 	 
		e.	If
                                         applicable, with respect to any Warrants issued hereunder, the Company shall, immediately
                                         upon such issuance, cause PubCo to provide its transfer agent with an irrevocable instruction
                                         to reserve sufficient respective number of underlying securities issuable per such Warrant,
                                         so long as each such respective Warrant is exercisable.

 

	 	3.	This
                                         Warrant Agreement shall be governed by and construed in accordance with the laws of the
                                         State of New York, without giving effect to its principles regarding conflicts of law.

 

    	 	 	 

    	 

    

 

Please
indicate your acceptance of these terms by countersigning where indicated below.

 

	Fairway
    LLC	 
	 	 	 
	By:
    	Nathan
    Rosenberg	 
	Title:
    	Authorized
    signatory	 
	 	 	 
	Agreed
    and accepted:	 
	 	 	 
	2672237
    Ontario Limited	 
	 	 	 
	By:
    	Elisha
    Kalfa	 
	Title:
    	Authorized
    signatory	 

 

    	 	 	 

    	 

    

 

Annex
A

 

THIS
WARRANT AND THE MEMBERSHIP INTERESTS/UNITS OR SHARES OF COMMON STOCK ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS
OF ARTICLE 4 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER
SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER
OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

 

WARRANT
TO PURCHASE MEMBERSHIP UNITS / SHARES OF COMMON STOCK

 

Company:
Fairway LLC

 

Holder:
2672237 Ontario Limited

 

Membership
Units: thirty-three percent (33%) of the membership interests/units (“Membership Units”) of the Company or, if applicable
shares of common stock of PubCo (as defined in the Warant Agreement) on a Fully-diluted and fully-issued basis on the earlier
of (i) the date that any initial public offering, acquisition, merger, reverse merger or other transaction not in the ordinary
course of business is consummated or (ii) any date on which the Investor elects to convert the Warrants into Membership Units
of the Company or common stock of PubCo so long as such date is no later than 12 months from the date hereof at an agreed and
confirmed valuation of the Company of Nine Million Dollars (U.S. $9,000,000) (collectively, “One Third of the Company”)

 

Class
of Stock/Equity: Membership Units of the Company or common stock of PubCo

 

Exercise
Price: not applicable; the Warrants evidenced hereby are exercisable without consideration

 

Issue
Date: November 26, 2019

 

Term:
See Section 4.1

 

THIS
WARRANT CERTIFIES THAT, for value received as consideration pursuant to that certain Original Note dated May 23, 2019 (as defined
in the Solstice Warrant Agreement of even date herewith (the “Warrant Agreement”)) and for other good and valuable
consideration the sufficiency of which is hereby acknowledged, Holder is entitled to receive One Third of the Company in the form
of (i) fully paid and nonassessable membership units of the Company or common stock of PubCo at the Exercise Price, all as set
forth herein, subject to the provisions and upon the terms and conditions set forth in this Warrant. It is agreed that the Holder,
in its sole discretion, may elect to receive shares of preferred stock instead of common stock and, as such, all references herein
to common stock shall, if applicable, include shares of preferred stock.

 

    	 	 	 

    	 

    

 

ARTICLE
1. EXERCISE.

 

1.1
Method of Exercise. Holder may exercise this Warrant by delivering a duly executed Notice of Exercise in substantially
the form attached as Appendix 1 hereto to the principal office of the Company.

 

1.2
Delivery of Certificate and New Warrant. Promptly after Holder exercises this Warrant, the Company shall deliver to Holder
certificates for or other evidence (reasonably acceptable to the Holder) of the Membership Units or common stock received and,
if this Warrant has not been fully exercised and has not expired, a new Warrant representing the Membership Units or common stock
not so received.

 

1.3
Replacement of Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the
Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

 

ARTICLE
2. ADJUSTMENTS TO THE MEMBERSHIP UNITS.

 

2.1
Dividends, Splits, Combinations, Etc. If the Company declares or pays a dividend on the Membership Units payable in membership
units, or other securities, or common stock payable in common stock, or other securities, then upon exercise of this Warrant,
for each Membership Unit or share of common stock acquired, Holder shall receive, without cost to Holder, the total number and
kind of securities to which Holder would have been entitled had Holder owned the Membership Units or, if applicable, shares of
common stock of PubCo of record as of the date the dividend occurred. If the Company subdivides the Membership Units or if PubCo
subdivides its common stock by reclassification or otherwise into a greater number of interests/units or shares or takes any other
action which increases the amount of units into which the Membership Units are convertible shares of common stock into which such
shares of common stock are convertible, the number of interests/units or shares of common stock of PubCo purchasable hereunder
shall be proportionately increased and the Exercise Price shall be proportionately decreased. If the outstanding interests/units
of the Company or common stock of PubCo are combined or consolidated, by reclassification or otherwise, into a lesser number of
interests/units, the Exercise Price shall be proportionately increased and the number of Membership Units or, if applicable shares
of common stock of PubCo shall be proportionately decreased.

 

2.2
Reclassification, Exchange or Substitution, Etc. Upon any reclassification, exchange, substitution, or other event that
results in a change of the number and/or class of the securities issuable upon exercise or net exercise of this Warrant, Holder
shall be entitled to receive, upon exercise or net exercise of this Warrant, the number and kind of securities and property that
Holder would have received for the Membership Units or, if applicable, common stock of PubCo if this Warrant had been exercised
immediately before such reclassification, exchange, substitution, or other event. The Company or its successor shall promptly
issue to Holder an amendment to this Warrant setting forth the number and kind of such new securities or other property issuable
upon exercise or net exercise of this Warrant as a result of such reclassification, exchange, substitution or other event that
results in a change of the number and/or class of securities issuable upon exercise or net exercise of this Warrant.

 

    	 	 	 

    	 

    

 

2.3
Merger or Consolidation. Upon any capital reorganization of the Company’s/PubCo’s capital stock or membership
interests (other than a subdivision, combination, reclassification or exchange of membership interests/units or common stock provided
for elsewhere in this Section 2) or a merger or consolidation of the Company or PubCo with or into another limited liability company
or corporation, then as a part of such reorganization, merger or consolidation, provision shall be made so that the Holder shall
thereafter be entitled to receive upon the exercise of this Warrant, the number and kind of securities and property of the Company,
or of the successor company/corporation resulting from such reorganization, merger or consolidation, to which that Holder would
have received for the Membership Units if this Warrant had been exercised immediately before such reorganization, merger or consolidation.

 

2.4
Fractional Membership Units. No fractional Membership Units or shares of common stock shall be issuable upon exercise or
net exercise of this Warrant and the number of Membership Units or shares of common stock to be issued shall be rounded up to
the nearest whole Membership Unit or share of common stock.

 

ARTICLE
3. COVENANTS OF THE COMPANY.

 

3.1
Notice of Certain Events. If the Company or PubCo proposes at any time (a) to declare any dividend or distribution upon
or in respect of any of its membership interests/units or common stock, whether in cash, property, stock, or other securities
and whether or not a regular cash dividend; (b) to effect any reclassification or recapitalization of any of its membership interests/units
or stock; or (c) to merge or consolidate with or into any other company or corporation, or sell, lease, license, or convey all
or substantially all of its assets, or to liquidate, dissolve or wind up, then, in connection with each such event, the Company
shall give Holder: (1) at least three (3) days prior written notice of the date on which a record will be taken for such dividend,
distribution, or subscription rights (and specifying the date on which the holders of its membership interests/units will be entitled
thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) above; and (2) in the case of
the matters referred to in (b) and (c) above at least three (3) days prior written notice of the date when the same will take
place (and specifying the date on which the holders of its membership interests/units or common stock will be entitled to exchange
their membership interests/units or common stock for securities or other property deliverable upon the occurrence of such event).

 

3.2
No Stockholder Rights or Liabilities. Except as provided in this Warrant, the Holder will not have any rights as a member
of the Company or PubCo until the exercise of this Warrant. Absent an affirmative action by the Holder to purchase the Membership
Units or common stock of PubCo, the Holder shall not have any liability as a member of the Company or PubCo.

 

    	 	 	 

    	 

    

 

3.3
Closing of Books. The Company will at no time close and will procure that PubCo will at no time close its transfer books
against the transfer of this Warrant or of any Membership Units or shares of common stock issued or issuable upon the exercise
of this Warrant in any manner which interferes with the timely exercise of this Warrant.

 

ARTICLE
4. MISCELLANEOUS.

 

4.1
Term. This Warrant is exercisable in whole or in part at any time and from time to time on or before the earlier of 5:00
pm Israel Time on the first (1st) anniversary of the Issue Date.

 

4.2
Legends. This Warrant and the Membership Units or common stock of PubCo (and the securities issuable, directly or indirectly,
upon conversion of the Membership Units or common shares of PubCo, if any) shall be imprinted with a legend in substantially the
following form:

 

THIS
WARRANT AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION.

 

4.3
Transfers. This Warrant and any securities issuable upon exercise of this Warrant (and the securities issuable, directly
or indirectly, upon conversion of the Membership Units or common shares, if any) may not be transferred or assigned in whole or
in part without compliance with applicable federal and state securities laws by the transferor and the transferee (including,
without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company,
as reasonably requested by the Company). After compliance with all restrictions on transfer set forth in this Section 4.3, and
within a reasonable time after the Company’s receipt of an executed Assignment Form in the form attached hereto, the transfer
shall be recorded on the books of the Company or PubCo upon the surrender of this Warrant, properly endorsed, to the Company at
its principal offices. In the event of a partial transfer, the Company shall issue to the new holders one or more appropriate
new warrants.

 

4.4
Notices. All notices and other communications from the Company to the Holder, or vice versa, shall be deemed delivered
and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or the Holder, as the case may (or on the first business day after transmission by facsimile)
be, in writing by the Company or such Holder from time to time. Effective upon receipt of the fully executed Warrant, all notices
to the Holder shall be addressed as set forth on the signature page hereto until the Company receives notice of a change of address
in connection with a transfer or otherwise. Notice to the Company shall be addressed as set forth on the signature page hereto
until the Holder receives notice of a change in address.

 

4.5
Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

4.6
Counterparts. This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement.

 

4.7
Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without
giving effect to its principles regarding conflicts of law.

 

    	 	 	 

    	 

    

 

Appendix
1

FAIRWAY
LLC

CONVERSION
NOTICE

 

Reference
is made to the Warrant Agreement dated November 26, 2019 between Fairway LLC and 2672237 Ontario Limited (the “Warrant Agreement”).
In accordance with and pursuant to the Warrant Agreement, the undersigned hereby elects to convert the Warrant into thirty-three
percent (33%) of all outstanding membership interests/units of the Company or shares of common stock of PubCo on a Fully-diluted
and fully-issued basis ordinary/common, as of the date specified below. Capitalized terms used but not defined herein have the
meanings assigned to such terms in the Warrant Agreement.

 

	 	Date
    of Conversion:	 

 

	 	Number
    of membership interests/units of to be issued:	 

 

 

Number
of shares of common stock of ___________________ to be issued:

 

Please
issue the membership interests/units (or its equivalent) or shares of common stock of _________________in the following name and
to the following address:

 

Issue
to: _________________________________________

_________________________________________

 

Address:
_________________________________________

 

Telephone
Number: ________________________________

 

Email
address: _________________________________

 

Holder:
__________________________________________

By:

Title:

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