Document:

lfr_12_30_19_Item 2.01_LubbockH2_Close_8-K_Ex10.1_Assignment

		
			Exhibit 10.1
		

		
			 
		

		
			ASSIGNMENT OF AGREEMENT OF PURCHASE AND SALE
		

		
			 
		

		
			This Assignment of Agreement of Purchase and Sale (the “Assignment”) is entered into as of December 26, 2019 (the "Effective Date"). The parties to this Assignment are Lodging Fund REIT III OP, LP, a Delaware limited partnership (the “Assignor”), LF3 Lubbock Casa, LLC, a Delaware limited liability company, and LF3 Lubbock Casa TRS, LLC, a Delaware limited liability company (collectively, the “Assignee”); all entities have an address of 1635 43rd Street South, Suite 205, Fargo, North Dakota 58103.
		

		
			 
		

		
			INTRODUCTORY STATEMENTS
		

		
			 
		

		
			A. The Assignor entered into an Agreement of Purchase and Sale effective as of July 26, 2019, as amended from time to time ("Purchase Agreement") (a copy of the Purchase Agreement is attached to this Assignment as Exhibit A) with respect to the purchase of a hotel business.
		

		
			 
		

		
			B.The Assignor and Assignee desire that Assignor assign its interest in the Purchase Agreement to Assignee under the terms and conditions set forth in this Assignment.
		

		
			 
		

		
			C.Unless otherwise agreed upon, at closing, LF3 Lubbock Casa, LLC will take ownership of the Real Property (as defined in the Purchase Agreement) and LF3 Lubbock Casa TRS, LLC will take ownership of all other Property (as defined in the Purchase Agreement).
		

		
			 
		

		
			In consideration of the above Introductory Statements, and the promises and provisions set forth in this Assignment, the parties agree as follows:
		

		
			 
		

		
			1.Assignment.  Assignor assigns to Assignee all of Assignor’s right, title, and interest in and to the Purchase Agreement.
		

		
			 
		

		
			2.Acceptance by Assignee. Assignee accepts the Assignment and all rights accruing to it under the Purchase Agreement, and assumes and agrees to perform all covenants and obligations of the Assignor under the Purchase Agreement, from and after the Effective Date.
		

		
			 
		

		
			3.Release of Assignor’s Liability. This Assignment does not relieve Assignor of any of its obligations to Seller under the Purchase Agreement.
		

		
			 
		

		
			4.Counterparts; Facsimile Signatures. This Assignment may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Assignment and all of which, when taken together, will be deemed to constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Assignment by telecopier or electronic mail shall be as effective as delivery of a manually executed signature page to this Assignment.
		

		
			 
		

		
			
		

		
			

		 

		

		
			 
		

		
			The parties have executed this Assignment as of the date listed below each party’s signature.
		

		
			 
		

			
					
						 

					
					
						ASSIGNOR

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Lodging Fund REIT III OP, LP,

				
	
					
						 

					
					
						a Delaware limited partnership

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Lodging Fund REIT III, Inc.

				
	
					
						 

					
					
						Its:  General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  /s/ Samuel C. Montgomery

				
	
					
						 

					
					
						By: Samuel C. Montgomery

				
	
					
						 

					
					
						Its:  Chief Operating Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						ASSIGNEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LF3 Lubbock Casa, LLC,

				
	
					
						 

					
					
						a Delaware limited liability company

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Lodging Fund REIT III OP, LP

				
	
					
						 

					
					
						Its:  Sole Member

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Lodging Fund REIT III, Inc.

				
	
					
						 

					
					
						Its:  General Partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  /s/ Samuel C. Montgomery

				
	
					
						 

					
					
						By: Samuel C. Montgomery

				
	
					
						 

					
					
						Its:  Chief Operating Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LF3 Lubbock Casa TRS, LLC,

				
	
					
						 

					
					
						a Delaware limited liability company

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Lodging Fund REIT III TRS, Inc.

				
	
					
						 

					
					
						Its:  Sole Member

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  /s/ Samuel C. Montgomery

				
	
					
						 

					
					
						By: Samuel C. Montgomery

				
	
					
						 

					
					
						Its:  Chief Operating OfficerExhibit 10.1

 

Execution Version

 

SHAREHOLDERS’
AGREEMENT

 

This
SHAREHOLDERS’ AGREEMENT is made the 27th day of December, 2019, among GTWY Holdings Limited, a Canadian corporation
(the “Company”), and the Holders (as defined herein). This Agreement shall be effective as of the Closing (as
defined below) pursuant to the terms herein.

 

WHEREAS,
concurrently with the execution and delivery of this Agreement, the Company, Leisure Acquisition Corp. (“LACQ”)
and GTWY Merger Sub Corp., a Delaware corporation (“Merger Sub”), have entered into an Agreement and Plan of
Merger, dated as of December 27, 2019 (as it may from time to time be, amended, modified or amended and restated in accordance
with its terms, the “Merger Agreement”), providing for, among other things, a business combination transaction
(the “Business Combination”), pursuant to which LACQ will merge with and into Merger Sub, with LACQ surviving
as the surviving company and a wholly owned subsidiary of the Company and, as part of the consideration for such merger, common
shares of the Company (the “Common Shares”) will be issued to the stockholders of LACQ in accordance with and
subject to the terms and conditions set forth in the Merger Agreement; and

 

WHEREAS,
the Parties hereto wish to set forth certain nomination and voting rights in respect of the directors of the Company and other
governance rights following Closing of the Business Combination.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, the sufficiency of
which is hereby acknowledged by each of the Parties, the Parties agree as follows:

 

Article
1

INTERPRETATION AND GENERAL MATTERS

 

		1.1	Definitions

 

In
this Agreement, the following terms have the following meanings:

 

		(a)	“Act”
                                         means the Canada Business Corporations Act, as the same may be amended from time to time,
                                         and any successor legislation thereto, except where otherwise expressly provided.

 

		(b)	“Affiliate”
                                         means, with respect to any Person, any other Person directly or indirectly controlling,
                                         controlled by or under common control with such Person (including any Related Funds of
                                         such Person). As used in this definition, “control” (including, with its
                                         correlative meanings, “controlling,” “controlled by” and “under
                                         common control with”) shall mean possession, directly or indirectly, of power to
                                         direct or cause the direction of management or policies (whether through ownership of
                                         securities, by contract or otherwise). For purposes of this definition, (i) the Company
                                         and its subsidiaries shall not be deemed Affiliates of any party hereto, and (ii) “Related
                                         Fund” means (x) any investment funds or other entities who are advised by the
                                         same investment advisor and (y) and investment advisor with respect to an investment
                                         fund or entity it advises.

 

    

     

    

 

		(c)	“Agreement”,
                                         “this Agreement”, “the Agreement”, “hereof”,
                                         “herein”, “hereto”, “hereby”,
                                         “hereunder” and similar expressions mean this Shareholders’
                                         Agreement, including all of its schedules and all instruments supplementing, amending
                                         or confirming this Shareholders’ Agreement; and all references to “Articles”
                                         or “Sections” refer to the specified Article or Section of this Shareholders’
                                         Agreement.

 

		(d)	“Annual
                                         Shareholder Meeting” means an annual meeting of the shareholders of the Company
                                         at which directors are to be elected to the Board including, if applicable, by written
                                         consent.

 

		(e)	“Articles”
                                         means the articles of arrangement of the Company, as may be amended, replaced or superseded
                                         from time to time in accordance with their terms and the Act.

 

		(f)	“beneficial
                                         ownership” has the meaning attributed to such term in the Securities Act and
                                         “beneficially own” and “beneficially owned” shall
                                         have a correlative meaning.

 

		(g)	“Board”
                                         means the board of directors of the Company.

 

		(h)	“Business
                                         Combination” has the meaning set forth in the Recitals.

 

		(i)	“Business
                                         Day” has the meaning set forth in the Merger Agreement.

 

		(j)	“Catalyst”
                                         means, collectively, The Catalyst Capital Group Inc., Catalyst Fund II Parallel Limited
                                         Partnership, Catalyst Fund Limited Partnership II and Catalyst Fund Limited Partnership
                                         III, Gabriel de Alba, and their respective Affiliates.

 

		(k)	“Closing”
                                         has the meaning set forth in the Merger Agreement.

 

		(l)	“Common
                                         Shares” has the meaning set forth in the Recitals.

 

		(m)	“Company”
                                         has the meaning set forth in the Preamble.

 

		(n)	“Conditions”
                                         means, with respect to any Nominee (whether designated for nomination or then-serving
                                         on the Board), such Nominee’s failure to meet the qualification requirements for
                                         serving as a director under the Act, the Articles or applicable Securities Laws.

 

		(o)	“DS”
                                         means, collectively, MLCP GLL Funding, LLC, Matthews Lane Capital Partners LLC and their
                                         respective Affiliates.

 

		(p)	“DS
                                         Nominee” has the meaning set forth in Section 2.4(a)(ii).

 

		(q)	“DS
                                         Nominee Class” has the meaning set forth in Section 2.4(a)(ii).

 

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		(r)	“Holders”
                                         means, collectively, Catalyst and each Sponsor, in each case, to the extent such Person
                                         is a registered or beneficial holder of Common Shares and, where the context permits,
                                         upon the death of a shareholder who is an individual, means such shareholder’s
                                         personal legal representatives and “Holder” means any one of them.

 

		(s)	“LACQ”
                                         has the meaning set forth in the Recitals.

 

		(t)	“LW”
                                         means, collectively, A. Lorne Weil, Hydra LAC, LLC and their respective Affiliates.

 

		(u)	“LW
                                         Nominee” has the meaning set forth in Section 2.4(a)(i).

 

		(v)	“LW
                                         Nominee Class” has the meaning set forth in Section 2.4(a)(i).

 

		(w)	“Merger
                                         Agreement” has the meaning set forth in the Recitals.

 

		(x)	“Merger
                                         Sub” has the meaning set forth in the Recitals.

 

		(y)	“Nomination
                                         Date” has the meaning set forth in Section 2.5(a).

 

		(z)	“Nomination
                                         Letter” has the meaning set forth in Section 2.5(a).

 

		(aa)	“Nominee”
                                         has the meaning set forth in Section 2.4(a).

 

		(bb)	“Parties”
                                         means, collectively, the Company and the Holders, and “Party” means
                                         any one of them.

 

		(cc)	“Person”
                                         means an individual, a partnership, a corporation, a limited liability company, an association,
                                         a joint stock company, a trust, a joint venture, an unincorporated organization and a
                                         governmental entity or any department, agency or political subdivision thereof.

 

		(dd)	“SEC”
                                         means the United States Securities and Exchange Commission.

 

		(ee)	“Securities
                                         Act” means the Securities Act (Ontario) as the same may be amended from time
                                         to time, and any successor legislation thereto, except where otherwise expressly provided.

 

		(ff)	“Securities
                                         Laws” means, collectively, the applicable securities laws of each of the provinces
                                         and territories of Canada and the respective regulations, instruments and rules made
                                         under those securities laws together with all applicable published policy statements,
                                         notices, blanket orders and rulings of the securities commissions or regulatory authorities
                                         of Canada and of each of the provinces and territories of Canada and the applicable rules,
                                         regulations and requirements of the SEC or NYSE (or other U.S. nationally recognized
                                         stock exchange on which the Company has applied to list its securities).

 

    3

     

    

 

		(gg)	“Sponsors”
                                         means, collectively, DS and LW, and “Sponsor” means any one of them.

 

		(hh)	“Vora”
                                         means, collectively, HG Vora Special Opportunities Master Fund, Ltd. and its Affiliates.

 

		(ii)	“Vora
                                         Side Letter” means that certain Letter Agreement, dated as of the date hereof,
                                         by and between Vora and the Company.

 

		1.2	Time
                                         of the Essence

 

Time
will be of the essence with respect to the performance of each provision of this Agreement.

 

		1.3	Calculation
                                         of Time

 

Unless
otherwise specified, time periods within or following which any act is to be done pursuant to this Agreement will be calculated
by excluding the day on which the period commences and including the day on which the period ends.

 

		1.4	Business
                                         Days

 

Whenever
any action to be taken pursuant to this Agreement would otherwise be required to be taken on a day that is not a Business Day,
such action will be taken on the first Business Day following such day.

 

		1.5	Headings

 

The
descriptive headings preceding Articles and Sections of this Agreement are inserted solely for convenience of reference and are
not intended as complete or accurate descriptions of the content of such Articles or Sections. The division of this Agreement
into Articles and Sections will not affect the interpretation of this Agreement.

 

		1.6	Plurals
                                         and Gender

 

Any
reference in this Agreement to gender includes all genders (including neuter) and words denoting the singular number only will
include the plural and vice versa.

 

		1.7	Statutory
                                         References

 

Any
reference in this Agreement to a statute will mean such statute as it is in force as at the date of this Agreement (together with
all regulations promulgated thereunder), as the same may be amended, reenacted, consolidated or replaced from time to time, and
any successor statute thereto, unless otherwise stated.

 

		1.8	Rules
                                         of Construction

 

The
Parties to this Agreement waive the application of any law or rule of construction providing that ambiguities in any agreement
or other document will be construed against the Party drafting such agreement or other document.

 

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		1.9	Other
                                         References

 

The
expressions “include,” “includes” and “including”, as used in this Agreement, will be deemed
to be followed by “without limitation”, whether or not they are in fact followed by such words or words of like import.

 

Article
2

NOMINATION AND REPRESENTATION RIGHTS

 

		2.1	Closing
                                         Board

 

Upon
the Closing, the Board will be comprised of nine (9) directors, each nominated pursuant to the terms of the Merger Agreement and
the Ancillary Agreements.

 

		2.2	Staggered
                                         Board

 

Upon
the Closing, the Board will be staggered into the following three classes of directors: (i) the first class (“Class I”)
will be up for reelection at the first Annual Shareholder Meeting following the Closing and thereafter every three years; (ii)
the second class (“Class II”) will be up for reelection at the second Annual Shareholder Meeting following
the Closing and thereafter every three years; and (iii) the third class (“Class III” and together with Class
I and Class II, the “Classes” and each a “Class”) will be up for reelection at the third
Annual Shareholder Meeting following the Closing and thereafter every three years.

 

		2.3	Catalyst
                                         Nomination Rights

 

		(a)	Subject
                                         to the terms of this Agreement, from and after the Closing, Catalyst will have the right
                                         to designate Catalyst Nominees, as follows:

 

		(i)	so
                                         long as Catalyst collectively beneficially owns, in the aggregate, 50% or more of the
                                         Common Shares held by Catalyst as of the Closing, (A) two Catalyst Nominees to serve
                                         as Class III directors, (B) two Catalyst Nominees to serve as Class II directors and
                                         (C) one Catalyst Nominee to serve as a Class I director, at any meeting (or action by
                                         written consent) involving the election of Class III, Class II or Class I directors,
                                         as applicable;

 

		(ii)	so
                                         long as Catalyst collectively beneficially owns, in the aggregate, at least 40% but less
                                         than 50% of the Common Shares held by Catalyst as of the Closing, (A) two Catalyst Nominees
                                         to serve as Class III directors, (B) one Catalyst Nominee to serve as a Class II director
                                         and (C) one Catalyst Nominee to serve as a Class I director, at any meeting (or action
                                         by written consent) involving the election of Class III, Class II or Class I directors,
                                         as applicable;

 

		(iii)	so
                                         long as Catalyst collectively beneficially owns, in the aggregate, at least 30% but less
                                         than 40% of the Common Shares held by Catalyst as of the Closing, (A) one Catalyst Nominee
                                         to serve as a Class III director, (B) one Catalyst Nominee to serve as a Class II director
                                         and (C) one Catalyst Nominee to serve as a Class I director at any meeting (or action
                                         by written consent) involving the election of Class III, Class II or Class I directors,
                                         as applicable;

 

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		(iv)	so
                                         long as Catalyst collectively beneficially owns, in the aggregate, at least 20% but less
                                         than 30% of the Common Shares held by Catalyst as of the Closing, (A) one Catalyst Nominee
                                         to serve as a Class III director and (B) one Catalyst Nominee to serve as a Class II
                                         director at any meeting (or action by written consent) involving the election of Class
                                         III or Class II directors;

 

		(v)	so
                                         long as Catalyst collectively beneficially owns, in the aggregate, at least 5% but less
                                         than 20% of the Common Shares held by Catalyst as of the Closing, one Catalyst Nominee
                                         to serve as a Class III director, at any meeting (or action by written consent) involving
                                         the election of Class III directors.

 

		2.4	Sponsor
                                         Nomination Rights

 

		(a)	Subject
                                         to the terms of this Agreement, from and after the Closing, LW and DS shall each have
                                         the right to designate for nomination by the Board one individual (each, a “Sponsor
                                         Nominee” and together with the Catalyst Nominees, collectively, the “Nominees”
                                         and each a “Nominee”) for election to the Board, with one Sponsor
                                         Nominee designated to serve as a Class II director and the other Sponsor Nominee designated
                                         to serve as a Class III director (such applicable Class of each Sponsor Nominee to be
                                         mutually agreed by LW and DS prior to Closing), as follows:

 

		(i)	LW
                                         shall have the right to designate for nomination by the Board one individual for election
                                         to the Board into the same Class such director is designated prior to Closing by mutual
                                         agreement of LW and DS in accordance with Section 2.4(a) (the “LW Nominee
                                         Class” and such individual, the “LW Nominee”), at any meeting
                                         (or action by written consent) involving the election of the LW Nominee Class, as applicable,
                                         so long as (i) LW beneficially owns, in the aggregate, 80% or more of the Common Shares
                                         held by LW as of the Closing and (ii) Vora agrees to vote in favor of each of the Company’s
                                         nominees to the Board (including the Nominees selected in accordance with this Agreement
                                         and up for election at such meeting (or with respect to such action by written consent))
                                         in accordance with the terms of the Vora Side Letter; provided, that if LW ceases
                                         to beneficially own, in the aggregate, at least 50% of the Common Shares held by LW as
                                         of the Closing at any time during which an LW Nominee is serving on the Board, such LW
                                         Nominee shall immediately offer his or her resignation for consideration by the Board
                                         and in the event the LW Nominee does not do so, each Holder shall promptly take all necessary
                                         action within its control to cause the removal of such LW Nominee and LW’s rights
                                         pursuant to this Section 2.4(a)(i) shall immediately cease and terminate; and

 

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		(ii)	DS
                                         shall have the right to designate for nomination by the Board one individual for election
                                         to the Board into the same class such director is designated prior to Closing by mutual
                                         agreement of LW and DS in accordance with Section 2.4(a) (the “DS Nominee
                                         Class” and such individual, the “DS Nominee”), at any meeting
                                         (or action by written consent) involving the election of the DS Nominee Class, as applicable,
                                         so long as (i) DS beneficially owns, in the aggregate, 80% or more of the Common Shares
                                         held by DS as of the Closing and (ii) Vora agrees to vote in favor of each of the Company’s
                                         nominees to the Board (including the Nominees selected in accordance with this Agreement
                                         and up for election at such meeting (or with respect to such action by written consent))
                                         in accordance with the terms of the Vora Side Letter; provided, that if DS ceases
                                         to beneficially own, in the aggregate, at least 50% of the Common Shares held by DS as
                                         of the Closing at any time during which a DS Nominee is serving on the Board, such DS
                                         Nominee shall immediately offer his or her resignation for consideration by the Board
                                         and in the event the DS Nominee does not do so, each Holder shall promptly take all necessary
                                         action within its control to cause the removal of such DS Nominee and DS’s rights
                                         pursuant to this Section 2.4(a)(ii) shall immediately cease and terminate.

 

		(b)	If,
                                         prior to any meeting (or action by written consent) involving the election of Class I
                                         directors, Vora does not agree to vote in favor of each of the Company’s nominees
                                         to the Board up for election at such meeting (or with respect to such action by written
                                         consent), the LW Nominee or DS Nominee, as applicable, then currently serving on the
                                         Board as a Class III director shall immediately offer his or her resignation for consideration
                                         by the Board and in the event such LW Nominee or DS Nominee, as applicable, does not
                                         do so, each Holder shall promptly take all necessary action within its control to cause
                                         the removal of such LW Nominee or DS Nominee, as applicable.

 

		2.5	Board
                                         Nomination Procedure

 

		(a)	With
                                         respect to each Annual Shareholder Meeting, at least ninety (90) days prior to the one
                                         year anniversary of the date of the immediately prior year’s Annual Shareholder
                                         Meeting (the “Nomination Date”), each Holder entitled to designate
                                         a Nominee for nomination by the Board will deliver to the Company in writing the name
                                         of its respective Nominee(s) for the applicable Class up for nomination to the Board
                                         together with the information regarding such Nominee(s) (including the number of Shares
                                         beneficially owned or over which control or direction is exercised by such Nominee(s))
                                         that the Company is required by the Act and Securities Laws to send to shareholders of
                                         the Company in respect of such Annual Shareholder Meeting and such other information,
                                         including a biography of such Nominee(s), that is consistent with the information the
                                         Company publishes about other directors of the Company (the “Nomination Letter”),
                                         which Nomination Letter shall be in the form attached hereto as Exhibit A. It
                                         being understood that the Sponsor Nominees shall not be required to complete the Nomination
                                         Letter in the form attached if any Catalyst Nominee is permitted to provide less information
                                         than the attached form.

 

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		(b)	If
                                         any Holder fails to deliver the required Nomination Letter to the Company by the Nomination
                                         Date, such Holder shall be deemed to have designated the same Nominee(s) that were previously
                                         nominated by such Holder who continue to serve as a director of the Company at such time,
                                         subject to such individual(s) satisfying the Conditions for re-appointment to the Board.

 

		(c)	No
                                         later than fifteen (15) days after the Nomination Date, the Company shall provide the
                                         holders with notice of whether Vora has agreed to vote in favor of each of the Company’s
                                         nominees at such Annual Shareholder Meeting; provided, that, in no event shall
                                         the Company be deemed to have breached or violated its obligations hereunder if it fails
                                         to timely provide such notice due to Vora’s failure to abide by its obligations
                                         under the Vora Side Letter.

 

		(d)	The
                                         Nominee(s) of any Holder shall be nominated by or at the direction of the Board or an
                                         authorized officer of the Company, including pursuant to a notice of meeting, to stand
                                         for election to the Board at the Annual Shareholder Meeting and the Company shall solicit
                                         proxies from the holders of Common Shares in respect thereof, which solicitation obligation
                                         will be satisfied by delivery of a form of proxy to the holders of Common Shares following
                                         standard procedures and, where applicable, consistent with past practice.

 

		(e)	Notwithstanding
                                         anything herein to the contrary, from and after the Closing and at any time prior to
                                         an applicable termination event set forth in Section 3.1, the Holders shall not
                                         knowingly take or agree to take, directly or indirectly, any action to frustrate, obstruct
                                         or otherwise prevent, the Company from performing its obligations to nominate the Nominees
                                         under Section 2.3, Section 2.4 or Section 2.7.

 

		2.6	Resignation,
                                         Death, Incapacity or Disqualification of Nominee

 

In
the event of the resignation (other than pursuant to Section 2.4(b)), death or incapacity of a director who is a Nominee
that is serving on the Board, or in the event that a director who is a Nominee that is serving on the Board at any time ceases
to satisfy any of the Conditions, the Holder who appointed such Nominee shall be entitled to designate an individual satisfying
each of the Conditions to replace such director to serve on the Board (subject to such Holder’s satisfaction of the applicable
minimum ownership requirements set forth in this Agreement to nominate a director) by delivery of a written notice by such Holder
to the Company within 30 days after the director resigns, dies or becomes incapacitated, or ceases to satisfy any of the Conditions,
as applicable, and to the extent permitted by the Act and the Articles, the Board shall promptly appoint such individual as a
director, or to the extent not so permitted, shall nominate such individual for election as a director at the next Annual Shareholder
Meeting in accordance with Section 2.3 and Section 2.4.

 

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		2.7	Chairman
                                         Nomination Rights

 

Upon
the Closing, Gabriel de Alba will serve as Executive Chairman of the Board until the first Annual Shareholder Meeting (provided,
nothing herein shall restrain or prohibit Catalyst from designating Mr. de Alba as the Executive Chairman pursuant to the immediately
following sentence). At the first Annual Shareholder Meeting and thereafter, Catalyst will have the right to designate the individual
to serve as Executive Chairman of the Board, and the Board shall so elect such individual as Executive Chairman of the Board,
so long as Catalyst beneficially owns, in the aggregate, at least 5% of the total issued and outstanding Common Shares.

 

		2.8	Voting

 

		(a)	From
                                         and after the Closing, each Holder shall (so long as any such Holder is not subject to
                                         an applicable termination event as set forth in Section 3.1):

 

		(i)	vote
                                         or cause to be voted (including, if applicable, by written consent) all of its Common
                                         Shares and take all necessary steps within such Holder’s control to cause each
                                         Nominee nominated by any Holder pursuant to Section 2.3, Section 2.4 or
                                         Section 2.7 to be elected to the Board and to otherwise fully implement the applicable
                                         terms and conditions of this Agreement, and shall not take any action to cause the removal
                                         of any Nominee so elected to the Board, unless (x) the applicable Holder entitled to
                                         appoint such Nominee hereunder expressly so requests in writing or (y) taking such action
                                         to cause such removal is otherwise expressly permitted pursuant this Agreement; and

 

		(ii)	cause
                                         all Common Shares beneficially owned by such Holder to be present in person or by proxy
                                         for quorum purposes at each meeting of shareholders of the Company duly called during
                                         such period (including, if applicable, by written consent).

 

		2.9	Committee
                                         Representation

 

From
and after the Closing, for so long as at least one Sponsor Nominee continues to serve on the Board, the Company hereby agrees
that at least one Sponsor Nominee will be offered the opportunity to serve on each committee of the Board (whether such committee
exists as of the date hereof or is established by the Board subsequent to the date hereof). The Company shall, to the extent practical,
notify DS and LW, so long as they continue to have rights hereunder, in writing of any new committee of the Board to be established
at least fifteen (15) days prior to the effective establishment of such committee. If requested by either DS or LW (assuming they
still have rights hereunder), each Holder and the Company shall take all necessary steps within their control to cause at least
one Sponsor Nominee (selected by DS or LW) to be appointed as a member of each such committee of the Board unless such designation
would violate any Securities Laws (subject in each case to any applicable exceptions, including those for “controlled companies”
and any applicable phase-in periods).

 

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Article
3

TERMINATION

 

		3.1	Term

 

Following
the date on which this Agreement becomes effective pursuant to Section 4.14, this Agreement will terminate on:

 

		(a)	with
                                         respect to Catalyst’s rights and obligations hereunder, the date after the first
                                         continuous fifteen (15) day period during which Catalyst does not beneficially own, directly
                                         or indirectly, in the aggregate, at least 5% of the issued and outstanding Common Shares;

 

		(b)	with
                                         respect to LW’s rights and obligations hereunder, the earlier of (i) the date on
                                         which LW is no longer entitled to designate an LW Nominee to serve on the Board pursuant
                                         to Section 2.4(a)(i) and (ii) the date on which an LW Nominee resigns or is removed
                                         from the Board pursuant to Section 2.4(b);

 

		(c)	with
                                         respect to DS’ rights and obligations hereunder, the earlier of (i) the date on
                                         which DS is no longer entitled to designate a DS Nominee to serve on the Board pursuant
                                         to Section 2.4(a)(ii) and (ii) the date on which a DS Nominee resigns or is removed
                                         from the Board pursuant to Section 2.4(b); or

 

		(d)	the
                                         earlier of (i) the dissolution or liquidation of the Company and (ii) the date on which
                                         this Agreement is terminated by written agreement of the Company and the Holders.

 

Notwithstanding
the foregoing, Sections 4.2, 4.7, 4.9, 4.10, 4.12, 4.13, 4.15 and 4.17
shall each survive the termination of this Agreement.

 

Article
4

GENERAL

 

		4.1	Severability

 

If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law, or public
policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse
to any Party. Upon any determination that any term or other provision is invalid, illegal or incapable of being enforced, the
Parties will negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as
possible in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the fullest
extent possible.

 

    10

     

    

 

		4.2	Obligations
                                         of the Holders not Joint

 

The
obligations of the Holders pursuant to this Agreement are several, and not joint nor joint and several, and, no Holder will be
liable to the Company or to any other party for the failure of any other Holder to comply with its covenants and obligations under
this Agreement.

 

		4.3	Public
                                         Filing

 

The
Parties hereby consent to the public filing of this Agreement if any Party is required to do so by law or by applicable regulations
or policies of any regulatory agency of competent jurisdiction or any stock exchange.

 

		4.4	SEC
                                         Periodic Reports

 

The
Company agrees to file (and the Holders shall take all necessary action within their control to cause the Company to
file); (i) within 45 days of the end of each fiscal quarter (other than the fourth fiscal quarter), quarterly and interim
financial statements, a “Management’s Discussion and Analysis” and any other information (to the extent
such additional information would be material to investors), in each case that would be required in a filing with the SEC
on Form 10-Q if the Company were required to file that form under SEC rules and regulations and (ii) within the time period
specified in the SEC’s rules and regulations, an Annual Report on Form 20-F; provided, that the foregoing filing
obligation shall not apply with respect to any such filing which the Board reasonably determines in good faith
would be contrary to the best interests of the Company to file.

 

		4.5	Further
                                         Assurances

 

Each
Party will provide such further documents or instruments required by any other Party as may be reasonably necessary or desirable
to effect the purpose of this Agreement and carry out its provisions.

 

		4.6	Assignment
                                         and Enurement

 

Neither
this Agreement nor any benefits or duties accruing under this Agreement will be transferred by any Party without the prior written
consent of the other Parties, except that any Holder will be entitled to assign this Agreement or the benefits or duties accruing
hereunder to any Affiliate of such Holder without the prior consent of any other Party, provided that the assignor will remain
liable for the performance under this Agreement of its assignees and of any subsequent direct or indirect assignees thereof. Subject
to the foregoing, this Agreement will enure to the benefit of and be binding upon the Parties and their respective successors
and permitted assigns. Any Holder to whom rights under this Agreement are transferred in accordance with the foregoing requirements
of this Section 4.6 will (x) as a condition to such transfer, deliver to the other Parties a written instrument by which
such transferee agrees to be bound by the obligations imposed upon Holders under this Agreement to the same extent as if such
transferee were a Holder under this Agreement and (y) be deemed to be a Holder hereunder.

 

		4.7	Entire
                                         Agreement

 

This
Agreement constitutes the entire agreement between the Parties with respect to the matters herein and supersedes all prior agreements,
understandings, negotiations and discussions relating to the subject matter hereof.

 

    11

     

    

 

		4.8	Amendments,
                                         Modifications, etc.

 

This
Agreement may not be amended, added to, qualified or modified except by an agreement in writing executed by all of the Parties.

 

		4.9	Waiver

 

Except
as otherwise expressly set out herein, no waiver of any provision of this Agreement will be binding unless it is in writing. No
indulgence or forbearance by a Party will constitute a waiver of such Party’s right to insist on performance in full and
in a timely manner of all covenants in this Agreement. Waiver of any provision will not be deemed to waive the same provision
thereafter, or any other provision of this Agreement, at any other time.

 

		4.10	Notices

 

All
notices, requests, demands or other communications required or permitted to be given by one Party to another under this Agreement
will be given in writing and delivered by personal delivery or delivery by recognized commercial courier or by e-mail addressed
as follows:

 

		(a)	if
                                         to the Company:

 

Gateway
Casinos & Entertainment Limited

4331
Dominion Street

Vancouver,
BC V5G 1C7

Attention:
Tolek Strukoff, Chief Legal Officer and Corporate Secretary

Facsimile:
(604) 412-0117

E-mail:
tstrukoff@gatewaycasinos.com

 

With
copies to:

 

Latham
& Watkins LLP

330
North Wabash Avenue, Suite 2800

Chicago,
Illinois 60611

Attention:
Zachary Judd and Matthew Dixon

Facsimile:
(312) 993-9767

E-mail:
zachary.judd@lw.com, matthew.dixon@lw.com

 

and
to:

 

Bennett
Jones LLP

#2500
- 666 Burrard Street

Vancouver,
British Columbia V6C 2X8

Attention:
Christian Gauthier

Facsimile:
(604) 891-5100

E-mail:
gauthierc@bennettjones.com

 

    12

     

    

 

		(b)	if
                                         to Catalyst:

 

c/o
The Catalyst Capital Group Inc.

181
Bay Street Suite 4700

Bay
Wellington Tower Brookfield Place

P.O.
Box 792

Toronto,
ON M5J 2T3

E-mail:
GDeAlba@catcapital.com

 

With
copies to:

 

Latham
& Watkins LLP

330
North Wabash Avenue, Suite 2800

Chicago,
Illinois 60611

Attention:
Zachary Judd and Matthew Dixon

Facsimile:
(312) 993-9767

E-mail:
zachary.judd@lw.com, matthew.dixon@lw.com

 

and
to:

 

Bennett
Jones LLP

#2500
- 666 Burrard Street

Vancouver,
British Columbia V6C 2X8

Attention:
Christian Gauthier

Facsimile:
(604) 891-5100

E-mail:
gauthierc@bennettjones.com

 

		(c)	if
                                         to the Sponsors:

 

c/o
Leisure Acquisition Corp.

250
W. 57th Street

Suite
2223

New
York, NY 10107

Attention:
Daniel B. Silvers

E-mail:
dsilvers@matthewslane.com

 

With
copies to:

 

Proskauer
Rose LLP

Eleven
Times Square

New
York, NY 10036-8299

Attention:
Jeffrey A. Horwitz, Daniel I. Ganitsky

E-mail:
jhorwitz@proskauer.com; dganitsky@proskauer.com

 

    13

     

    

 

and
to:

 

Miller
Thomson LLP

Scotia
Plaza

40
King Street West, Suite 5800

P.O.
Box 1011

Toronto,
Ontario M5H 3S1

Attention:
Lawrence D. Wilder

E-mail:
lwilder@millterthomson.com

 

or
at such other address of which the addressee may from time to time may notify the addressor. Any notice delivered by personal
delivery or by courier to the Party to whom it is addressed as provided above will be deemed to have been given and received on
the day it is so delivered at such address. If such day is not a Business Day, or if the notice is received after 4:00 p.m. (addressee’s
local time), then the notice will be deemed to have been given and received on the next Business Day. Any notice transmitted by
e-mail will be deemed to have been given and received at the time of receipt. If such day is not a Business Day, or if the transmission
of e-mail is received after 5:00 p.m. (addressee’s local time), then the notice will be deemed to have been given and received
on the next Business Day.

 

		4.11	Counterparts;
                                         Email and Electronic Signatures

 

This
Agreement may be signed in one or more counterparts, each of which once signed will be deemed to be an original. All such counterparts
together will constitute one and the same instrument. Notwithstanding the date of execution of any counterpart, each counterpart
will be deemed to bear the effective date first written above. This Agreement, any and all agreements and instruments executed
and delivered in accordance herewith, along with any amendments hereto or thereto, to the extent signed and delivered by means
of a scanned email or internet transmission copy or other means of electronic transmission, will be treated in all manner and
respects and for all purposes as an original signature, agreement or instrument and will be considered to have the same binding
legal effect as if it were the original signed version thereof delivered in person.

 

		4.12	Governing
                                         Law and Jurisdiction for Disputes

 

This
Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia (without giving effect
to any conflict of laws principles thereunder) and the federal laws of Canada applicable therein.

 

		4.13	Third
                                         Party Beneficiaries

 

The
terms and provisions of this Agreement are intended solely for the benefit of the Parties and their respective successors and
permitted assigns, and it is not the intention of the Parties to confer any third party beneficiary rights and this Agreement
does not confer any such rights upon any third party (including any holders of securities of the Company) that are not party to
this Agreement.

 

		4.14	Effectiveness

 

This
Agreement shall become effective solely upon (a) execution of this Agreement by each of the Holders and the Company and (b) the
consummation of the Closing. In the event that the Merger Agreement is terminated for any reason without the Closing having occurred,
this Agreement shall not become effective and shall be void ab initio.

 

    14

     

    

 

		4.15	Remedies

 

Each
Party agrees that an award of monetary damages would not be an adequate remedy for any loss incurred by reason of any breach of
this Agreement and that, in the event of any breach or threatened breach of this Agreement by a Party, the Company or the Holder,
as the case may be, will be entitled, without the posting of bond, to equitable relief, including injunctive relief and specific
performance. Such remedies will not be the exclusive remedies for any breach or threatened breach of this Agreement but will be
in addition to all other remedies available at law or in equity.

 

		4.16	Authority

 

Each
Party represents and warrants to and agrees with each other Party that the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby have been duly authorized on behalf of such Party and do not violate any agreement or
other instrument applicable to such Party or by which its assets are bound. This Agreement does not, and will not be construed
to, give rise to the creation of a partnership among any of the Parties, or to constitute any of such Parties members of a joint
venture or other association.

 

		4.17	Conflict
                                         with Articles

 

In
the event of any conflict between the Articles and this Agreement, it is expressly agreed that as between the Holders and the
Company, this Agreement shall prevail and the parties hereto shall use best efforts to amend the Articles to be consistent with
this Agreement. In the event of a conflict between the provisions of Canadian law and this Agreement (including any conflict with
the Act), each Holder and the Company shall cooperate to effectuate the provisions of this Agreement in accordance with, and take
such actions as may be required to satisfy, the requirements of Canadian law (including the Act, as applicable), including taking
all necessary action within their control to fully effectuate the intent and purpose of this Agreement while satisfying any requirement
of Canadian law (including the Act, as applicable). For the avoidance of doubt, nothing contained in this Agreement shall be deemed
to constitute an amendment of the Articles or of any previous articles of association of the Company. Notwithstanding any other
provisions of this Agreement, to the extent not inconsistent with the Articles and the Act, the Company undertakes to be bound
by and comply with the terms and conditions of this Agreement insofar as the same relates to the Company and any subsidiaries
of the Company and to act in all respects as contemplated by this Agreement.

 

(Remainder
of page left intentionally blank. Signature page follows.)

 

    15

     

    

 

IN
WITNESS WHEREOF the Parties have caused this Agreement to be duly executed as of the date first written above.

 

	 	GTWY
HOLDINGS LIMITED 

	 	 	 
	 	By:	/s/ Gabriel de Alba
	 	 	Authorized
    Signatory

 

    16

     

    

 

	 	THE
    CATALYST CAPITAL GROUP INC.
	 	 	 
	 	By:	/s/ Gabriel de Alba 
	 	 	Authorized
    Signatory
	 	 	 
	 	CATALYST
    FUND II PARALLEL 

    LIMITED PARTNERSHIP
	 	 	 
	 	By:	/s/ Gabriel de Alba 
	 	 	Authorized
    Signatory
	 	 	 
	 	CATALYST
    FUND LIMITED PARTNERSHIP II
	 	 
	 	By:	/s/ Gabriel de Alba 
	 	 	Authorized
    Signatory
	 	 	 
	 	CATALYST
    FUND LIMITED PARTNERSHIP III
	 	 
	 	By:	/s/ Gabriel de Alba 
	 	 	Authorized
    Signatory
	 	 	 
	 	GABRIEL
    DE ALBA
	 	 
	 	By:	/s/ Gabriel de Alba 
	 	 
	 	A.
Lorne Weil

	 	 
	 	By:	/s/ A. Lorne Weil  

 

    17

     

    

 

	 	MLCP
    GLL FUNDING LLC
	 	 
	 	By:	/s/ Daniel B. Silvers       
	 	 	Authorized
    Signatory
	 	 	 
	 	MATTHEWS
LANE CAPITAL PARTNERS LLC

	 	 
	 	By:	/s/ Daniel B. Silvers
	 	 	Authorized
    Signatory
	 	 	 
	 	HYDRA
LAC, LLC

	 	 
	 	By:	/s/ A. Lorne Weil
	 	 	Authorized
    Signatory

 

 

18

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