Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

SUPPORT AGREEMENT 
 THIS
SUPPORT AGREEMENT, dated as of April 21, 2022 (this “Agreement”), is entered into by and between Blueknight Energy Partners, L.P., a Delaware limited partnership (the “Partnership”), and Ergon
Asphalt & Emulsions, Inc., a Mississippi corporation (“Parent”). 
 RECITALS 

WHEREAS, concurrently with the execution of this Agreement, Parent, Merle, LLC, a Delaware limited liability company and wholly owned
Subsidiary of Parent (“Merger Sub”), the Partnership and Blueknight Energy Partners G.P., L.L.C., a Delaware limited liability company and the general partner of the Partnership (the “General Partner”), are entering
into an Agreement and Plan of Merger (as it may be amended from time to time, the “Merger Agreement”), pursuant to which (and subject to the terms and conditions set forth therein) Merger Sub shall merge with and into the
Partnership, the separate existence of Merger Sub will cease and the Partnership shall survive and continue to exist as a Delaware limited partnership (the “Merger”); 

WHEREAS, as of the date hereof, Parent is the Record Holder and beneficial owner in the aggregate of, and has the right to vote and dispose
of, (i) the number of common units representing limited partner interests in the Partnership (“Common Units”) and (ii) the number of Series A preferred units representing limited partner interests in the Partnership
(“Preferred Units”), in each case, as set forth opposite its name on Schedule A hereto (the Common Units and the Preferred Units, collectively, the “Existing Units”); 

WHEREAS, as a condition and inducement to the Partnership’s willingness to enter into the Merger Agreement and to proceed with the
transactions contemplated thereby, including the Merger, Parent is entering into this Agreement; and 
 WHEREAS, Parent acknowledges that
the Partnership is entering into the Merger Agreement in reliance on the representations, warranties, covenants and other agreements of Parent set forth in this Agreement and would not enter into the Merger Agreement if Parent did not enter into
this Agreement. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound
hereby, Parent hereby agrees as follows: 
 1. Defined Terms. The following capitalized terms, as used in this
Agreement, shall have the meanings set forth below. Capitalized terms that are used but not defined in this Agreement, but that are defined in the Merger Agreement, shall have the meanings ascribed to them in the Merger Agreement. 

 

 “Covered Unitholder” means Parent and each such other Person as may later
become party to this Agreement as a result of becoming a Record Holder or beneficial owner of Covered Units pursuant to Section 7(a), by joinder or otherwise. 

“Covered Units” means the Existing Units of which Parent is the Record Holder or beneficial owner as of the date hereof,
together with any Common Units or Preferred Units of which Parent becomes the Record Holder or beneficial owner on or after the date hereof (or any Common Units or Preferred Units with respect to which any Person as may later become party to this
Agreement pursuant to Section 7(a), by joinder or otherwise, if applicable, becomes the Record Holder or beneficial owner on or after the date hereof). 

“GP Conflicts Committee” has the meaning ascribed thereto in the Partnership Agreement. 

“Proxy Designee” means a Person designated by the GP Conflicts Committee by written notice to each of the parties hereto,
which notice may simultaneously revoke the designation of any other Person as a Proxy Designee. 
 “Record Holder” has the
meaning ascribed thereto in the Partnership Agreement. 
 “Transfer” means, directly or indirectly, to sell, transfer,
assign, pledge, encumber or similarly dispose of (by merger (including by conversion into securities or other consideration), by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise), either
voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the voting of or sale, transfer, assignment, pledge, encumbrance or similar disposition of (by merger, by tendering into any
tender or exchange offer, by testamentary disposition, by operation of law or otherwise). 
 2. Agreement to Vote Covered
Units. Prior to the Termination Date (as defined herein), each Covered Unitholder, severally and not jointly, irrevocably and unconditionally agrees that it shall at any meeting of the limited partners of the Partnership (whether annual or
special and whether or not an adjourned or postponed meeting), however called and in connection with the Merger, appear at such meeting or otherwise cause the Covered Units to be counted as present thereat for purpose of establishing a quorum and
vote (or consent), or cause to be voted at such meeting (or validly execute and return and cause such consent to be granted with respect to), in person or by proxy, all Covered Units (in all manners and by each applicable class): (a) in favor of the
Merger, the approval of the Merger Agreement and any other matter necessary or desirable for the consummation of the transactions contemplated by the Merger Agreement, including the Merger, and (b) against any action, agreement, transaction, or
proposal that is intended, would reasonably be expected, or the result of which would reasonably be expected, to impede, interfere with, delay, postpone, discourage, frustrate the purposes of, or adversely affect any of the transactions contemplated
by the Merger Agreement, including the Merger. For the avoidance of doubt, no Covered Unitholder (in its capacity as a unitholder) shall be under any obligation whatsoever to require or request that the limited partners of the Partnership vote on,
consent to or otherwise approve or reject any matter or issues; notwithstanding the foregoing, if any Covered Unitholder is the beneficial owner, but not the Record Holder, of any Covered Units, such beneficial owner agrees to take all actions
necessary to cause the Record Holder and any nominees to vote (or execute a consent with respect to) all of such Covered Units in accordance with this Section 2. 

  
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 3. Grant of Irrevocable Proxy; Appointment of Proxy. 

(a) FROM AND AFTER THE DATE HEREOF UNTIL THE TERMINATION DATE, EACH COVERED UNITHOLDER HEREBY IRREVOCABLY AND UNCONDITIONALLY GRANTS TO, AND
APPOINTS, D. ANDREW WOODWARD, MATTHEW R. LEWIS, JOEL W. KANVIK AND ANY OTHER PROXY DESIGNEE, EACH OF THEM INDIVIDUALLY, SUCH COVERED UNITHOLDER’S, AS APPLICABLE, PROXY AND
ATTORNEY-IN-FACT (WITH FULL POWER OF SUBSTITUTION) TO VOTE (OR EXERCISE A WRITTEN CONSENT WITH RESPECT TO) THE COVERED UNITS SOLELY IN ACCORDANCE WITH SECTION 2 OF THIS
AGREEMENT. THIS PROXY IS IRREVOCABLE (UNTIL THE TERMINATION DATE AND EXCEPT AS TO ANY PROXY DESIGNEE WHOSE DESIGNATION AS A PROXY DESIGNEE IS REVOKED BY THE GP CONFLICTS COMMITTEE) AND COUPLED WITH AN INTEREST AND EACH COVERED UNITHOLDER SHALL TAKE
SUCH FURTHER ACTION OR EXECUTE SUCH OTHER INSTRUMENTS AS MAY BE NECESSARY TO EFFECTUATE THE INTENT OF THIS PROXY AND HEREBY REVOKES ANY OTHER PROXY PREVIOUSLY GRANTED BY SUCH COVERED UNITHOLDER, AS APPLICABLE, WITH RESPECT TO THE COVERED UNITS (AND
EACH COVERED UNITHOLDER HEREBY REPRESENTS TO THE PARTNERSHIP THAT ANY SUCH OTHER PROXY IS REVOCABLE AND HEREBY REVOKES ANY SUCH OTHER PROXIES). EACH COVERED UNITHOLDER HEREBY AFFIRMS THAT THE IRREVOCABLE PROXY SET FORTH IN THIS SECTION IS GIVEN IN
CONNECTION WITH THE MERGER AGREEMENT, AND THAT SUCH IRREVOCABLE PROXY IS GIVEN TO SECURE THE PERFORMANCE OF THE DUTIES OF SUCH COVERED UNITHOLDER UNDER THIS AGREEMENT. 

(b) The proxy granted in this Section 3 shall automatically expire upon the termination of this Agreement. 

4. No Inconsistent Agreements. Parent hereby represents, covenants and agrees that, except as contemplated by this
Agreement, it (a) has not entered into, and shall not enter into at any time prior to the Termination Date, any voting agreement or voting trust with respect to any Covered Units and (b) has not granted, and shall not grant at any time
prior to the Termination Date, a proxy or power of attorney with respect to any Covered Units, in either case, which is inconsistent with the Unitholder’s obligations pursuant to this Agreement. 

5. Termination. This Agreement shall terminate upon the earliest of (a) the Effective Time, (b) the
termination of the Merger Agreement in accordance with its terms, (c) at the election of a Covered Unitholder in the event that the GP Conflicts Committee makes a Partnership Adverse Recommendation Change and (d) the mutual written
agreement of the parties hereto to terminate this Agreement (provided that any decision on behalf of the Partnership to terminate this Agreement pursuant to this clause (d) shall be made only by the GP Conflicts Committee) (such earliest date
being referred to herein as the “Termination Date”); provided that the provisions set forth in Sections 13 to 18 (and any related definitional 

  
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provisions) shall survive the termination of this Agreement; provided further that any liability incurred by any party hereto as a result of a breach of a term or condition of this
Agreement prior to such termination shall survive the termination of this Agreement. Upon termination of this Agreement in accordance with the foregoing provisions of this Section 4, none of the Covered Unitholders shall
have any further obligations or liabilities hereunder, except as provided in the immediately preceding sentence. 
 6.
Representations and Warranties of each Covered Unitholder. Each Covered Unitholder, severally (but not jointly) and making representations only as to itself, hereby represents and warrants to the Partnership as follows: 

(a) Such party is the Record Holder and beneficial owner of, and has good and valid title to, its respective Covered Units, free and clear of
Liens other than as created by this Agreement, the Merger Agreement or arising under generally applicable securities Laws. Such party has voting power, power of disposition, and power to agree to all of the matters set forth in this Agreement, in
each case with respect to all of such Covered Units. As of the date hereof, other than the Covered Units and indirect ownership of the General Partner, such party is not the Record Holder and does not own beneficially any (i) units or voting
securities of the Partnership, (ii) securities of the Partnership convertible into or exchangeable for units or voting securities of the Partnership or (iii) options or other rights to acquire from the Partnership any units, voting
securities or securities convertible into or exchangeable for units or voting securities of the Partnership. The Covered Units are not subject to any voting trust agreement or other contract to which such party is a party restricting or otherwise
relating to the voting or Transfer of the Covered Units. Such party has not appointed or granted any proxy or power of attorney that is still in effect with respect to any Covered Units, except as contemplated by this Agreement. 

(b) Such party is duly organized, validly existing and in good standing under the Laws of the State of Mississippi, or such other Laws of its
jurisdiction, and has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement by such party, the performance by such party of its obligations
hereunder and the consummation by such party of the transactions contemplated hereby have been duly and validly authorized by such party and no other actions or proceedings on the part of such party are necessary to authorize the execution and
delivery by such party of this Agreement, the performance by such party of its obligations hereunder or the consummation by such party of the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by such
party and, assuming due authorization, execution and delivery by the Partnership, constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, except as enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in
equity or at law). 
 (c) Except for the applicable requirements of the Exchange Act, (i) no filing with, and no permit,
authorization, consent or approval of, any Governmental Authority is necessary on the part of such party for the execution, delivery and performance of this Agreement by such party or the consummation by such party of the transactions contemplated
hereby and (ii) neither the execution, delivery or performance of this Agreement by such party nor the consummation by such 

  
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party of the transactions contemplated hereby nor compliance by such party with any of the provisions hereof will (A) conflict with or violate, any provision of the Organizational Documents
of such party, (B) result in any breach or violation of, or constitute a default (or an event which, with notice or lapse of time or both, would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation of a Lien on such property or asset of such party pursuant to, any contract to which such party is a party or by which such party or any property or asset of such party is bound or affected or
(C) violate any order, writ, injunction, decree, statute, rule or regulation applicable to such party or any of such party’s properties or assets except, in the case of clause (B) or (C), for breaches, violations or defaults that
would not, individually or in the aggregate, materially impair the ability of such party to perform its obligations hereunder. 
 (d) As of
the date of this Agreement, there is no action, suit, investigation, complaint or other proceeding pending against such party or, to the actual knowledge of such party, any other Person or, to the actual knowledge of such party, threatened against
such party or any other Person that restricts or prohibits (or, if successful, would restrict or prohibit) the Partnership from exercising its rights under this Agreement or the performance by such party of its obligations under this Agreement. 

(e) Such party understands and acknowledges that the Partnership is entering into the Merger Agreement in reliance upon such party’s
execution and delivery of this Agreement and the representations and warranties of such party contained herein. 
 (f) Such party
acknowledges that it is a sophisticated party with respect to the Covered Units and has adequate information concerning the business and financial condition of the Partnership to make an informed decision regarding the transactions contemplated by
this Agreement and has, independently and based on such information as Unitholder has deemed appropriate, made its own analysis and decision to enter into this Agreement. 

7. Certain Covenants of each Covered Unitholder. Each Covered Unitholder, severally (but not jointly) hereby covenants
and agrees, in each case, only on its own behalf as follows, in each case except as otherwise approved in writing by the Partnership: 

(a) Prior to the Termination Date, and except as contemplated hereby, such party shall not (i) Transfer, or enter into any contract,
option, agreement or other arrangement or understanding with respect to the Transfer of any of the Covered Units or beneficial ownership or voting power thereof or therein (including by operation of law), (ii) grant any proxies or powers of
attorney, deposit any Covered Units into a voting trust or enter into a voting agreement with respect to any Covered Units or (iii) knowingly take any action that would make any representation or warranty of such party contained herein untrue
or incorrect or have the effect of preventing or disabling such party from performing its obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, such party may Transfer any or all of the Covered Units, in
accordance with applicable Law, to any Affiliate of Parent; provided that prior to and as a condition to the effectiveness of such Transfer, each Person to whom any of such Covered Units or any interest in any of such Covered Units is or may
be Transferred shall have executed and delivered to the Partnership a counterpart of this Agreement pursuant to which such Person shall be bound by all of the terms and provisions of this Agreement as if such Person were a party with the obligations
of a Covered Unitholder. Any Transfer in violation of this provision shall be void. 

  
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 (b) Prior to the Termination Date, in the event that such party becomes the Record Holder
or acquires beneficial ownership of, or the power to vote or direct the voting of, any additional Common Units or Preferred Units, such Covered Unitholder shall promptly notify the Partnership of such acquisition of Common Units or Preferred Units,
and such Common Units or Preferred Units shall, without further action of the parties, be deemed Covered Units and subject to the provisions of this Agreement, and the number of Common Units or Preferred Units held by such party set forth on
Schedule A hereto shall be deemed amended accordingly and such Common Units or Preferred Units shall automatically become subject to the terms of this Agreement. 

8. Transfer Agent. Each Covered Unitholder hereby authorizes the Partnership to notify the Partnership’s transfer
agent that there is a stop transfer order with respect to all Covered Units (and that this Agreement places limits on the voting and Transfer of such Covered Units); provided, however, the Partnership shall further notify the
Partnership’s transfer agent to lift and vacate the stop transfer order with respect to the Covered Units on the Termination Date. 

9. Unitholder Capacity. This Agreement is being entered into by each Covered Unitholder solely in its capacity as a
holder of Common Units or Preferred Units, and nothing in this Agreement shall restrict or limit the ability of such Covered Unitholder or any of its respective Affiliates or any employee thereof who is a director or officer of the Partnership to
take any action in his or her capacity as a director or officer of the Partnership to the extent specifically permitted by the Merger Agreement. 

10. Disclosure. Each Covered Unitholder hereby authorizes the Partnership to publish and disclose in any announcement or
disclosure required by the SEC and in the Partnership Proxy Statement and the Schedule 13E-3 such party’s identity and ownership of the Covered Units and the nature of such party’s obligations under
this Agreement. 
 11. Non-Survival of Representations and Warranties. The
representations and warranties of each Covered Unitholder contained herein shall not survive the Termination Date or the closing of the transactions contemplated hereby and by the Merger Agreement. 

12. Amendment and Modification. This Agreement may not be amended, modified or supplemented in any manner, whether by
course of conduct or otherwise, except by an instrument in writing specifically designated as an amendment hereto, signed on behalf of each party hereto and otherwise as expressly set forth herein; provided that the Partnership may not amend this
Agreement unless it has been approved in writing by the GP Conflicts Committee. 
 13. Waiver. No failure or delay of
any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course
of conduct, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise have
hereunder. Any agreement on the part of a party to any such waiver shall be valid only if set forth in a written instrument executed and delivered by such party. 

  
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 14. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given if delivered personally or by email transmission, or mailed through a nationally recognized overnight courier, postage prepaid, to the parties at the following addresses (or at such other address for a party as
specified by like notice, provided, however, that notices of a change of address shall be effective only upon receipt thereof): 
  

	 	(i)	 If to Parent (or any other Covered Unitholder): 

Ergon Asphalt & Emulsions, Inc. 

2829 Lakeland Drive, Suite 2000 

Flowood, MS 39232 
 Attention:
Emmitte J. Haddox 
 Email: emmitte.haddox@ergon.com 

with copies (which shall not constitute notice) to: 

Baker Botts L.L.P. 
 910
Louisiana Street 
 Houston, TX 77002 

Attention: Joshua Davidson 

                 Jamie Yarbrough 

Email: joshua.davidson@bakerbotts.com 

            jamie.yarbrough@bakerbotts.com 

and 
 Watson Jones PLLC 

P.O. Box 23546 
 Jackson, MS
39225 
 Attention: J. Kevin Watson 

Email: kwatson@wjpllc.com 
  

	 	(ii)	 If to the Partnership: 

Blueknight Energy Partners, L.P. 

6060 American Plaza, Suite 600 

Attention: Joel W. Kanvik 

Email: jkanvik@bkep.com 
 with
copies (which shall not constitute notice) to: 
 Gibson, Dunn & Crutcher LLP 

2001 Ross Avenue, Suite 2100 

Dallas, Texas 75201 

  
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 Attention: Doug Rayburn 

Jonathan Whalen 
 Email:
drayburn@gibsondunn.com 
 jwhalen@gibsondunn.com 

Notices shall be deemed to have been received on the date of receipt if (a) delivered by hand or nationally recognized overnight courier service or
(b) upon receipt of an appropriate confirmation by the recipient when so delivered by email (to such email specified above or another email or emails as such person may subsequently designate by notice given hereunder only if followed by
overnight or hand delivery). 
 15. Entire Agreement. This Agreement and the Merger Agreement (including the Exhibits and Schedules
thereto) constitute the entire agreement, and supersede all prior written agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements, communications and understandings between the
parties with respect to the subject matter hereof and thereof. 
 16. No Third-Party Beneficiaries. Nothing in this Agreement, express
or implied, is intended to or shall confer upon any Person other than the parties and their respective successors and permitted assigns any legal or equitable right, benefit or remedy of any nature under or by reason of this Agreement. 

17. Assignment; Successors. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned
or delegated, in whole or in part, by operation of law or otherwise, by any party without the prior written consent of all other parties, and any such assignment without such prior written consent shall be null and void; provided, however,
that the Partnership may assign all or any of its rights and obligations hereunder to any direct or indirect wholly owned Subsidiary of the Partnership, and Parent may Transfer any or all of the Covered Units in accordance with
Section 7(a); provided further that no assignment shall limit the assignor’s obligations hereunder. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of, and be
enforceable by, the parties and their respective successors and assigns. 
 18. Other Miscellaneous Provisions. The provisions of
Sections 9.5, 9.7, 9.8, 9.10 and 9.11 of the Merger Agreement shall be incorporated into this Agreement, mutatis mutandis, except for such changes as are required to comply with applicable Law. 

[The remainder of this page is intentionally left blank.] 

  
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 IN WITNESS WHEREOF, the Partnership and Parent have caused to be executed or executed this
Agreement as of the date first written above. 
  

			
	PARENT
	
	ERGON ASPHALT & EMULSIONS, INC.
		
	By:	 	 /s/ J. Baxter Burns, II

	Name:	 	J. Baxter Burns, II
	Title:	 	President

 SIGNATURE PAGE TO SUPPORT
AGREEMENT 

 
			
	PARTNERSHIP
	
	BLUEKNIGHT ENERGY PARTNERS, L.P.
	
	By: Blueknight Energy Partners G.P., L.L.C., its general partner
		
	By:	 	 /s/ D. Andrew Woodward

	Name:	 	D. Andrew Woodward
	Title:	 	Chief Executive Officer

 SIGNATURE PAGE TO SUPPORT
AGREEMENT 

 SCHEDULE A 
  

									
	 Unitholder
	  	Common
Units	 	  	Preferred
Units	 
	 Parent
	  	 	2,745,837	 	  	 	20,801,757	 

 Schedule AExhibit 10.1

 

 

FIRST AMENDMENT TO AGREEMENT AND PLAN
OF MERGER

THIS FIRST AMENDMENT
TO AGREEMENT AND PLAN OF MERGER (this “Amendment”) is made as of this 8th day of April, 2022, by and among:
(i) 4Front Ventures Corp., a British Columbia corporation (the “Company”); (ii) Island Merger Sub, Inc., a Delaware
corporation and wholly owned subsidiary of the Company (“Merger Sub”); (iii) Island Global Holdings, Inc., a California
corporation (“Island”); and (iv) Navy Capital SR LLC, a Delaware limited liability company, solely in its capacity
as the representative of the Island Securityholders (the “Stockholder Representative”). The Company, Merger Sub, Island
and the Stockholder Representative are sometimes referred to herein individually as a “Party” and collectively as the
“Parties.” All capitalized terms used but not defined herein shall have the meanings given to them in the Agreement
(as hereinafter defined).

WITNESSETH:

WHEREAS, the Parties
entered into that certain Agreement and Plan of Merger, dated March 30, 2022 (the “Agreement”), pursuant to which it
is contemplated that Merger Sub will merge with and into Island, with Island being the surviving corporation, in accordance with applicable
law and subject to the conditions set forth therein;

WHEREAS, pursuant
to the terms of the Agreement, the Navy LOC Holders agreed to post the Navy LOC as credit support for certain obligations and liabilities
of Island; and

WHEREAS, in order
(among other things) to simplify the transaction, the Navy LOC Holders are willing to fully fund the amount the Navy LOC Maximum Principal
Amount to Island at Closing on the terms and conditions set forth herein.

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, the Parties hereto agree that the Agreement
is hereby amended as follows:

		1.	Amendments.

(a)              
Notwithstanding any provision in the Agreement to the contrary, on the Closing Date, the Working Capital Adjustment Amount
shall be deemed to be $0 (and therefore under no circumstances shall there be any adjustment to the Purchase Price or the Estimated Purchase
Price based upon the value of the Working Capital Amount).

(b)              
Section 1 of the Agreement is hereby amended by replacing the defined terms “Navy LOC”, “Navy
LOC Note Holders” and “Navy LOC Securities” with the following respective defined terms:

(i)                
“Navy LOC” means the Navy LOC Holders’ payment at Closing, by wire transfer to Island, of the Navy
LOC Maximum Principal Amount.

 

    	 

    	 

    

 

(ii)             
“Navy LOC Note Holders” means the parties who fund the Navy LOC at Closing.

(iii)           
“Navy LOC Securities” means (x) 500,000 Merger Warrants, (y) Subordinate Voting Shares with an aggregate
value (based upon the VWAP on the Closing Date) equal to the Equity Ratio multiplied by the Navy LOC Consideration Amount, and (z) Merger
Notes with an aggregate initial principal amount equal to the Debt Ratio multiplied by the Navy LOC Consideration Amount.

(c)              
Section 3(h) of the Agreement is hereby amended and restated in its entirety as follows:

(i)                
Navy LOC. The Parties acknowledge and agree that, at the Closing, (i) the Purchase Price will be reduced by the Navy
LOC Consideration Amount and (ii) contingent upon the Navy LOC Note Holders funding the Navy LOC, the Company shall issue the Navy LOC
Securities to the Navy LOC Note Holders on a pro rata basis (in accordance with their respective funding of the Navy LOC).

(d)              
Exhibit C to the Agreement is hereby replaced in its entirety with the words “Intentionally Omitted.”

(e)              
Section 6(b) of the Agreement is hereby amended to insert the following as Section 6(b)(x):

(i)                
“The Navy LOC Note Holders shall have paid to Island by wire transfer the Navy LOC Maximum Principal Amount and Island
shall have provided evidence of receipt thereof to the Company.”

 

		2.	Modifications. Except as expressly set forth herein, the agreements, covenants and amendments contained
in this Amendment shall not constitute any amendment or waiver of any term or condition of the Agreement, and all such terms and conditions
shall remain in full force and effect and are hereby ratified and confirmed in all respects.

		3.	Incorporation by Reference. The terms of Section 11 (including, without limitation, Section 11(j)
(“Governing Law”) and Section 11(l) (“Counterparts”)) of the Agreement are hereby incorporated herein
by reference as applicable hereto, mutatis mutandis, as applicable to this Amendment.

[Signature page follows.]

 

    	 

    	 

    

IN WITNESS WHEREOF, the parties hereto have executed
this Amendment as of the day and year first above written.

 

“COMPANY”

 

4Front Ventures Corp.,

a British Columbia corporation

 

By: /s/ Leonid Gontmaker

Name: Leonid Gontmakher

Its: Chief Executive Officer

 

 

“MERGER SUB”

 

Island Merger Sub, Inc.,

a Delaware corporation

 

By: /s/ Leonid Gontmaker

Name: Leonid Gontmakher

Its: President

 

 

“ISLAND”

 

Island Global Holdings, Inc.,

a California corporation

 

By: /s/ Raymond Landgraf

Name: Raymond Landgraf

Its: President

 

 

“STOCKHOLDER REPRESENTATIVE”

 

Navy Capital SR LLC,

a Delaware limited liability company

 

 

By: /s/ Kevin McLaughlin

Name: Kevin McLaughlin

Its: CFO, Navy Capital Green Management,
LLC, its Member

 

  

[Signature Page to First Amendment to Agreement
and Plan of Merger]

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