Document:

EXHIBIT 10.4

 

 

 

FIRST AMENDMENT

TO

MEMBERSHIP INTEREST PURCHASE AGREEMENT

THIS FIRST AMENDMENT TO
MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Amendment”), dated as of January 28, 2022, is entered into among Kenneth
V. Stevens, an individual residing in the Commonwealth of Massachusetts (“Seller”), 4Front Ventures Corp., a corporation
amalgamated under the Laws of the Province of British Columbia, Canada (“4Front”), and Mission Partners RE, LLC, a
Delaware limited liability company (“Buyer”). All initially capitalized terms used but not defined in this Amendment
shall have the meanings assigned to such terms in the Purchase Agreement (as defined below).

BACKGROUND

WHEREAS, on October 6,
2021, the parties entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”), pursuant to which,
among other things, Buyer agreed to acquire 29 Everett Street, LLC, a Massachusetts limited liability company (the “Company”),
via the purchase from Seller of all of the outstanding membership interests of the Company on the terms and subject to the conditions
set forth in the Purchase Agreement; and

WHEREAS, the parties desire
to amend the Purchase Agreement, as set forth in this Amendment.

AGREEMENT

NOW, THEREFORE, in consideration
of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.       Amendments
to the Purchase Agreement.

(a)       Section
2.02 (Purchase Price) of the Purchase Agreement is hereby deleted and replaced in its entirety with the following:

“Section 2.02Purchase Price.
The aggregate purchase price for the Membership Interests shall be Eighteen Million Dollars ($18,000,000 USD) (the “Purchase
Price”). The Purchase Price shall be paid as follows:

(a)       the
sum of Sixteen Million Dollars ($16,000,000 USD) (the “Closing Date Payment”) shall be paid by Buyer at the Closing
in cash or other immediately available funds, in accordance with the wire instructions provided by Seller prior to the Closing; and

(b)       a
Promissory Note in the initial principal amount of Two Million Dollars ($2,000,000.00 USD), substantially in the form attached hereto
as Exhibit A (the “Seller Note”), issued by 4Front bearing interest at an annual rate equal to ten percent (10%)
and maturing on the six (6)-month anniversary of the Closing Date.”

    	 

    	 

    

 

 

(b)       Section
2.03(a)(i) of the Purchase Agreement is hereby deleted and replaced in its entirety with the following:

“(i)pay the
Closing Date Payment to Seller and deliver the duly executed Seller Note to Seller;”

(c)       Each
of Section 2.03(a)(iii) and section 2.03(b)(iii) of the Purchase Agreement is hereby deleted and replaced in its entirety with the following:

“(iii)[intentionally
omitted];”

(d)       The
Purchase Agreement is hereby amended by adding Exhibit A in the form attached hereto.

2.       Miscellaneous.

(a)       Governing
Law. This Amendment shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts without
giving effect to any choice or conflict of law provision or rule (whether of the Commonwealth of Massachusetts or any other jurisdiction).

(b)       Entire
Agreement. This Amendment, together with the Purchase Agreement, constitutes the entire agreement of the parties with respect to the
subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with
respect to such subject matter.

(c)       Reference
to the Agreement. From and after the date hereof, each reference in the Purchase Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein,” or words of like import referring to the Purchase Agreement, mean and are a reference to the
Purchase Agreement as amended by this Amendment.

(d)       No
Other Modification. Except as expressly amended by the terms of this Amendment, all other terms of the Purchase Agreement remain unchanged
and in full force and effect.

(e)       Counterparts.
This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to
be one and the same agreement. A signed copy of this Amendment delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Amendment.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

 

SELLER:

 

 

By:/s/ Kenneth V. Stevens

Name:Kenneth V. Stevens

 

 

4FRONT:

 

4FRONT VENTURES CORP.

 

 

By:/s/ Leonid Gontmakher

Name:Leonid Gontmakher

Title:Chief Executive Officer

 

 

BUYER:

 

MISSION PARTNERS RE, LLC

 

 

By:/s/ Leonid Gontmakher

Name:Leonid Gontmakher

Title:Authorized Signatory

 

 

 

 

[Signature Page to First Amendment to Membership
Interest Purchase Agreement]

 

 

    	 

    	 

    

EXHIBIT A

 

Seller Note

 

(See attached)

 

    

    

    

 

PROMISSORY NOTE AND PLEDGE AGREEMENT

USD$2,000,000.00[•], 2022

 

For
value received, 4Front Ventures Corp., a corporation amalgamated under the laws of the Province of British Columbia, Canada (“4Front”
or “Maker”), promises to pay to the order of Kenneth V. Stevens, an individual residing in the Commonwealth of Massachusetts
(“Holder”), or his permitted transferees or assigns, in lawful money of the United States of America and in immediately
available funds, the aggregate principal amount of Two Million Dollars and No/100 Cents (USD$2,000,000.00), together with interest thereon
calculated as provided below, in accordance with, and subject to, the provisions of this Promissory Note and Pledge Agreement (this “Note
and Pledge”).

1.       Membership
Interest Purchase Agreement. This Note and Pledge is being executed in connection with the transactions contemplated by that certain
Membership Interest Purchase Agreement, dated as of October 6, 2021, as amended on the date hereof (the “Purchase Agreement”),
by and among Holder, 4Front and Mission Partners RE, LLC, and is subject to the provisions thereof. Initially capitalized terms used but
not defined in this Note and Pledge have the meanings assigned to such terms in the Purchase Agreement.

2.       Maturity
Date; Prepayments. The outstanding principal amount of this Note and Pledge, all accrued but unpaid interest thereon, and all other
amounts payable under this Note and Pledge shall be due and payable on the date that is six (6) months after the date of this Note and
Pledge (the “Maturity Date”). Maker may prepay its obligations under this Note and Pledge in whole or in part, at any
time or from time to time, without penalty or premium, by paying the outstanding principal amount together with all accrued but unpaid
interest thereon.

3.       Interest.
Except as otherwise provided herein, the outstanding principal amount of this Note and Pledge shall bear interest at an annual rate of
ten percent (10%) from the date hereof until such time as Maker’s obligations under this Note and Pledge are paid in full, whether
at maturity, upon acceleration, by prepayment or otherwise. Interest shall be payable monthly in arrears to Holder within ten (10) days
after the end of each calendar month. All computations of interest shall be made on the basis of a year of 365/366 days, as the case may
be, and the actual number of days elapsed.

4.       Payment
Mechanics. All payments of interest and principal shall be made in lawful money of the United States of America on the date on which
such payment is due by wire transfer of immediately available funds to Holder’s account at a bank specified by Holder in writing
to Maker from time to time. All payments made hereunder shall be applied first, to the payment of any fees or charges outstanding hereunder,
second, to accrued but unpaid interest and third, to the payment of the principal amount outstanding under this Note and Pledge. Whenever
any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension will be taken into account in calculating the amount of interest payable under this Note and Pledge.

5.       Intentionally
Deleted.

 

    	 

    	 

    

 

 

6.       Representations
and Warranties of Maker. Maker hereby represents and warrants to Holder as follows:

(a)       4Front
is a corporation duly amalgamated, validly existing and in good standing under the laws of the Province of British Columbia, Canada.

(b)       4Front
has the power and authority, and the legal right, to execute and deliver this Note and Pledge, and to perform its obligations hereunder.

(c)       The
execution and delivery of this Note and Pledge by 4Front, and the performance of 4Front’s obligations hereunder, have been duly
authorized by all necessary action in accordance with all applicable laws. 4Front has duly executed and delivered this Note and Pledge.

(d)       No
consent or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other Person
is required in order for 4Front to execute, deliver or perform any of its obligations under this Note and Pledge.

(e)       The
execution and delivery of this Note and Pledge, and the consummation by 4Front of the transactions contemplated hereby, do not and will
not (i) violate any provision of the organizational documents of 4Front; (ii) violate any law or governmental order applicable to 4Front
(or by which any of its properties or assets may be bound); or (iii) constitute a default under any material agreement or contract by
which 4Front may be bound.

(f)       This
Note and Pledge is a valid, legal and binding obligation of 4Front, enforceable against 4Front in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at
law).

7.       Covenants
of Maker. Until such time as all of Maker’s obligations under this Note and Pledge have been paid in full, 4Front covenants
and agrees that it will not:

(a)       create,
incur, assume or suffer to exist any indebtedness secured by the Pledged Interest (as defined below);

(b)       create,
incur, assume or suffer to exist any Encumbrances on the Pledged Interest (except for Permitted Encumbrances);

(c)       sell,
transfer or otherwise dispose of the Pledged Interest (except for transfers to wholly owned subsidiaries of 4Front); or

(d)       enter
into any contract or arrangement expressly prohibiting or limiting Maker’s ability to pay its obligations under this Note and Pledge
in accordance with the terms hereof.

8.       Events
of Default; Remedies. The existence or occurrence of one or more than one of the following events shall constitute an “Event
of Default” under this Note and Pledge:

 

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(a)       the
failure by Maker to make any payment of principal when due under this Note and Pledge in accordance with the terms hereof;

(b)       the
failure by Maker to make any payment of interest due under this Note and Pledge in accordance with the terms hereof within five (5) days
of written notice from Holder to Maker;

(c)       any
representation or warranty made or deemed made by Maker to Holder herein is incorrect in any material respect on the date as of which
such representation or warranty was made or deemed made;

(d)       Maker
fails to observe or perform any material covenant, obligation, condition or agreement contained in this Note and Pledge, other than the
covenants specified in clauses (a) and (b) above, and such failure continues for thirty (30) days after written notice to Maker;

(e)       the
involuntary filing against or voluntary filing by Maker of a petition or application for relief under federal bankruptcy law or any similar
state or federal law, or the issuance of any writ of garnishment, replevin, execution or attachment for service with respect to Maker
or any property of Maker, provided that such receiver, trustee, custodian, conservator, bankruptcy petition, writ of garnishment, replevin,
execution or attachment is not removed or dismissed within sixty (60) days of issuance;

(f)       the
failure by Maker to provide Holder with written notice of the occurrence of any of the events in the foregoing clause (e) within five
(5) days of Maker becoming aware of such event.

Upon the occurrence of any
Event of Default: (i) the entire unpaid principal balance due and owing under this Note and Pledge, together with all accrued but unpaid
interest thereon, and all other amounts payable hereunder, shall, at the option of Holder upon written notice to Maker, immediately become
due and payable, and (ii) Holder shall have and may exercise any and all rights and remedies available at law or in equity and also any
and all rights and remedies provided in this Note and Pledge or under applicable law.

9.       Additional
Security for Maker’s Obligations.

(a)       Pledge.
4Front (“Pledgor”) hereby pledges to Holder, and grants to Holder a security interest in, 100% of the shares of capital
stock of 4Front NECC Acquisition Co., a Massachusetts corporation, in its capacity as the Surviving Corporation as defined in and pursuant
to the terms of that certain Agreement and Plan of Merger, dated as of October 6, 2021, as amended on the date hereof, by and among New
England Cannabis Corporation, Inc., a Massachusetts corporation, Holder, 4Front and 4Front NECC Acquisition Co., a Massachusetts corporation
(the “Pledged Interest”), as security for the prompt and complete payment of the unpaid principal of and interest on
this Note and Pledge when such amounts become due and payable from time to time in accordance with the terms and provisions hereof. Pledgor
shall not, directly or indirectly, create, permit or suffer to exist, and shall defend the Pledged Interest against and take such other
action as is necessary to remove, any lien on the Pledged Interest, or any portion thereof, and shall not otherwise sell, transfer or
encumber the Pledged Interest without the prior written consent of Holder.

 

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(b)       Delivery
of Pledged Interest. Upon the execution of this Note and Pledge, Pledgor shall deliver to Holder the certificate(s) representing the
Pledged Interest (to the extent such Pledged Interest is certificated), together with duly executed forms of assignment sufficient to
transfer title thereto to Holder. Pledgor authorizes Holder to take such action as may be necessary or desirable to record the pledge
granted hereunder, including, without limitation, filing appropriate financing statements to record the security interests granted hereby.
To the extent that the Pledged Interest is not currently certificated but one or more certificates are issued in the future representing
the Pledged Interest, Pledgor covenants and agrees to promptly deliver to Holder such certificate(s), together with duly executed forms
of assignment sufficient to transfer title thereto to Holder.

(c)       Voting
Rights; Cash Distributions. Notwithstanding anything to the contrary contained herein, until such time as there exists an Event of
Default hereunder, Pledgor shall be entitled to all voting rights (if any) with respect to the Pledged Interest and, shall be entitled
to receive all distributions paid in respect of the Pledged Interest, if any.

(d)       Distributions
of Interests. If, prior to the Maturity Date, Pledgor becomes entitled to receive or receives any securities or other non-cash property
in addition to, in substitution of, or in exchange for the Pledged Interest (whether as a distribution in connection with any recapitalization,
reorganization or reclassification, a distribution or otherwise), Pledgor shall accept such securities or other property on behalf of
and for the benefit of Holder as additional security for Pledgor’s obligations hereunder and shall promptly deliver such additional
security to Holder, together with duly executed forms of assignment, and such additional security shall be deemed to be part of the Pledged
Interest hereunder.

(e)       Default.
This Note and Pledge constitutes a security agreement for purposes of the Uniform Commercial Code in all relevant jurisdictions. If an
Event of Default occurs hereunder, Holder may exercise any and all rights, powers and remedies of any owner of the Pledged Interest (including
the right to vote the Pledged Interest and receive distributions with respect to such Pledged Interest) and shall have and may exercise
without demand any and all of the rights and remedies granted to a secured party upon default under the Uniform Commercial Code of the
Commonwealth of Massachusetts or otherwise available to Holder under applicable law.

10.       Payment
of Indebtedness and Release of Pledged Interest. Upon payment in full of the indebtedness evidenced by this Note and Pledge, Holder
shall take all necessary action required to release any security interests Holder has with respect to the Pledged Interest.

11.       Waiver
of Presentment. Maker, on behalf of itself and its successors and assigns, hereby waives diligence, presentment, protest and demand
and notice of protest, demand, dishonor and nonpayment of this Note and Pledge, and expressly agrees that this Note and Pledge, or any
payment hereunder, may be extended from time to time and that Holder may accept security for this Note and Pledge or release security
for this Note and Pledge, all without in any way affecting the liability of Maker hereunder.

 

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12.       Amendment
and Waiver. Except as otherwise expressly provided herein, the provisions of this Note and Pledge may be amended and Maker may take
any action herein prohibited, or omit to perform any act herein required to be performed by it, only if Maker has obtained the prior written
consent of Holder.

13.       Further
Assurances. Maker agrees that at any time and from time to time upon the written request of Holder, Maker will execute and deliver
such further documents and do such further acts and things as Holder may reasonably request in order to effect the purpose of this Note
and Pledge.

14.       Replacement.
Upon receipt of evidence reasonably satisfactory to Maker of the ownership and the loss, theft, destruction or mutilation of this Note
and Pledge and, in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to Maker, or,
in the case of any such mutilation, upon the surrender of this Note and Pledge to Pledgor, Maker shall execute and deliver, in lieu thereof,
a new Note and Pledge representing the same rights represented by such lost, stolen, destroyed or mutilated Note and Pledge and dated
so that there will be no loss of interest on such Note and Pledge. Any Note and Pledge in lieu of which any such new Note and Pledge has
been so executed and delivered by Maker shall not be deemed to be an outstanding Note and Pledge for any purpose.

15.       Severability.
Any provision of this Note and Pledge which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

16.       No
Waiver. Holder shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder,
and no waiver shall be valid unless in writing, signed by an officer or director of Holder, and then only to the extent therein set forth.
A waiver by Holder of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Holder
would otherwise have on any future occasion. No failure to exercise or any delay in exercising on the part of Holder, any right, power
or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

17.       Governing
Law; Jurisdiction.

(a)       This
Note and Pledge shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts without giving
effect to any choice or conflict of law provision or rule (whether of the Commonwealth of Massachusetts or any other jurisdiction).

(b)       ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS NOTE AND PLEDGE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED
IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS IN EACH CASE LOCATED IN SUFFOLK
COUNTY, MASSACHUSETTS, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING.
SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE
OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION
TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY
SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

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(c)       EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS NOTE AND PLEDGE IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LEGAL ACTION ARISING OUT OF OR RELATING TO THIS NOTE AND PLEDGE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS NOTE AND PLEDGE
CERTIFIES AND ACKNOWLEDGES THAT (1) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (2) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (3) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (4) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS NOTE AND PLEDGE BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 17(c).

18.       Attorney’s
Fees and Costs. In the event of any legal action to enforce any provision of this Note and Pledge, the prevailing party in such action
shall be entitled to all of its reasonable attorney’s fees and costs incurred in connection with such enforcement action.

19.       Successors
and Assigns. This Note and Pledge shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

20.       Counterparts.
This Note and Pledge may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Note and Pledge delivered by email or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original signed copy of this Note and Pledge.

[Remainder of Page Intentionally Left Blank;
Signature Pages Follow]

 

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IN WITNESS WHEREOF, 4Front has
executed and delivered this Promissory Note and Pledge Agreement as of the date first written above.

 

4FRONT:

 

4FRONT VENTURES CORP.

 

 

By:

Name:

Title:

ACCEPTED BY HOLDER:

 

 

 

By:

Name:

 

 

 

 

 

 

 

 

[Signature Page to Project Mayflower Promissory
Note and Pledge Agreement]EXHIBIT 10.5

 

 

 

 

 

 

PROMISSORY NOTE AND PLEDGE AGREEMENT

	USD$2,000,000.00	January 28, 2022

 

For
value received, 4Front Ventures Corp., a corporation amalgamated under the laws of the Province of British Columbia, Canada (“4Front”
or “Maker”), promises to pay to the order of Kenneth V. Stevens, an individual residing in the Commonwealth of Massachusetts
(“Holder”), or his permitted transferees or assigns, in lawful money of the United States of America and in immediately
available funds, the aggregate principal amount of Two Million Dollars and No/100 Cents (USD$2,000,000.00), together with interest thereon
calculated as provided below, in accordance with, and subject to, the provisions of this Promissory Note and Pledge Agreement (this “Note
and Pledge”).

1.       Membership
Interest Purchase Agreement. This Note and Pledge is being executed in connection with the transactions contemplated by that certain
Membership Interest Purchase Agreement, dated as of October 6, 2021, as amended on the date hereof (the “Purchase Agreement”),
by and among Holder, 4Front and Mission Partners RE, LLC, and is subject to the provisions thereof. Initially capitalized terms used but
not defined in this Note and Pledge have the meanings assigned to such terms in the Purchase Agreement.

2.       Maturity
Date; Prepayments. The outstanding principal amount of this Note and Pledge, all accrued but unpaid interest thereon, and all other
amounts payable under this Note and Pledge shall be due and payable on the date that is six (6) months after the date of this Note and
Pledge (the “Maturity Date”). Maker may prepay its obligations under this Note and Pledge in whole or in part, at any
time or from time to time, without penalty or premium, by paying the outstanding principal amount together with all accrued but unpaid
interest thereon.

3.       Interest.
Except as otherwise provided herein, the outstanding principal amount of this Note and Pledge shall bear interest at an annual rate of
ten percent (10%) from the date hereof until such time as Maker’s obligations under this Note and Pledge are paid in full, whether
at maturity, upon acceleration, by prepayment or otherwise. Interest shall be payable monthly in arrears to Holder within ten (10) days
after the end of each calendar month. All computations of interest shall be made on the basis of a year of 365/366 days, as the case may
be, and the actual number of days elapsed.

4.       Payment
Mechanics. All payments of interest and principal shall be made in lawful money of the United States of America on the date on which
such payment is due by wire transfer of immediately available funds to Holder’s account at a bank specified by Holder in writing
to Maker from time to time. All payments made hereunder shall be applied first, to the payment of any fees or charges outstanding hereunder,
second, to accrued but unpaid interest and third, to the payment of the principal amount outstanding under this Note and Pledge. Whenever
any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension will be taken into account in calculating the amount of interest payable under this Note and Pledge.

5.       Intentionally
Deleted.

    	 

    	 

    

 

 

6.       Representations
and Warranties of Maker. Maker hereby represents and warrants to Holder as follows:

(a)       4Front
is a corporation duly amalgamated, validly existing and in good standing under the laws of the Province of British Columbia, Canada.

(b)       4Front
has the power and authority, and the legal right, to execute and deliver this Note and Pledge, and to perform its obligations hereunder.

(c)       The
execution and delivery of this Note and Pledge by 4Front, and the performance of 4Front’s obligations hereunder, have been duly
authorized by all necessary action in accordance with all applicable laws. 4Front has duly executed and delivered this Note and Pledge.

(d)       No
consent or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other Person
is required in order for 4Front to execute, deliver or perform any of its obligations under this Note and Pledge.

(e)       The
execution and delivery of this Note and Pledge, and the consummation by 4Front of the transactions contemplated hereby, do not and will
not (i) violate any provision of the organizational documents of 4Front; (ii) violate any law or governmental order applicable to 4Front
(or by which any of its properties or assets may be bound); or (iii) constitute a default under any material agreement or contract by
which 4Front may be bound.

(f)       This
Note and Pledge is a valid, legal and binding obligation of 4Front, enforceable against 4Front in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at
law).

7.       Covenants
of Maker. Until such time as all of Maker’s obligations under this Note and Pledge have been paid in full, 4Front covenants
and agrees that it will not:

(a)       create,
incur, assume or suffer to exist any indebtedness secured by the Pledged Interest (as defined below);

(b)       create,
incur, assume or suffer to exist any Encumbrances on the Pledged Interest (except for Permitted Encumbrances);

(c)       sell,
transfer or otherwise dispose of the Pledged Interest (except for transfers to wholly owned subsidiaries of 4Front); or

(d)       enter
into any contract or arrangement expressly prohibiting or limiting Maker’s ability to pay its obligations under this Note and Pledge
in accordance with the terms hereof.

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8.       Events
of Default; Remedies. The existence or occurrence of one or more than one of the following events shall constitute an “Event
of Default” under this Note and Pledge:

(a)       the
failure by Maker to make any payment of principal when due under this Note and Pledge in accordance with the terms hereof;

(b)       the
failure by Maker to make any payment of interest due under this Note and Pledge in accordance with the terms hereof within five (5) days
of written notice from Holder to Maker;

(c)       any
representation or warranty made or deemed made by Maker to Holder herein is incorrect in any material respect on the date as of which
such representation or warranty was made or deemed made;

(d)       Maker
fails to observe or perform any material covenant, obligation, condition or agreement contained in this Note and Pledge, other than the
covenants specified in clauses (a) and (b) above, and such failure continues for thirty (30) days after written notice to Maker;

(e)       the
involuntary filing against or voluntary filing by Maker of a petition or application for relief under federal bankruptcy law or any similar
state or federal law, or the issuance of any writ of garnishment, replevin, execution or attachment for service with respect to Maker
or any property of Maker, provided that such receiver, trustee, custodian, conservator, bankruptcy petition, writ of garnishment, replevin,
execution or attachment is not removed or dismissed within sixty (60) days of issuance;

(f)       the
failure by Maker to provide Holder with written notice of the occurrence of any of the events in the foregoing clause (e) within five
(5) days of Maker becoming aware of such event.

Upon the occurrence of any
Event of Default: (i) the entire unpaid principal balance due and owing under this Note and Pledge, together with all accrued but unpaid
interest thereon, and all other amounts payable hereunder, shall, at the option of Holder upon written notice to Maker, immediately become
due and payable, and (ii) Holder shall have and may exercise any and all rights and remedies available at law or in equity and also any
and all rights and remedies provided in this Note and Pledge or under applicable law.

9.       Additional
Security for Maker’s Obligations.

(a)       Pledge.
4Front (“Pledgor”) hereby pledges to Holder, and grants to Holder a security interest in, 100% of the shares of capital
stock of 4Front NECC Acquisition Co., a Massachusetts corporation, in its capacity as the Surviving Corporation as defined in and pursuant
to the terms of that certain Agreement and Plan of Merger, dated as of October 6, 2021, as amended on the date hereof, by and among New
England Cannabis Corporation, Inc., a Massachusetts corporation, Holder, 4Front and 4Front NECC Acquisition Co., a Massachusetts corporation
(the “Pledged Interest”), as security for the prompt and complete payment of the unpaid principal of and interest on
this Note and Pledge when such amounts become due and payable from time to time in accordance with the terms and provisions hereof. Pledgor
shall not, directly or indirectly, create, permit or suffer to exist, and shall defend the Pledged Interest against and take such other
action as is necessary to remove, any lien on the Pledged Interest, or any portion thereof, and shall not otherwise sell, transfer or
encumber the Pledged Interest without the prior written consent of Holder.

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(b)       Delivery
of Pledged Interest. Upon the execution of this Note and Pledge, Pledgor shall deliver to Holder the certificate(s) representing the
Pledged Interest (to the extent such Pledged Interest is certificated), together with duly executed forms of assignment sufficient to
transfer title thereto to Holder. Pledgor authorizes Holder to take such action as may be necessary or desirable to record the pledge
granted hereunder, including, without limitation, filing appropriate financing statements to record the security interests granted hereby.
To the extent that the Pledged Interest is not currently certificated but one or more certificates are issued in the future representing
the Pledged Interest, Pledgor covenants and agrees to promptly deliver to Holder such certificate(s), together with duly executed forms
of assignment sufficient to transfer title thereto to Holder.

(c)       Voting
Rights; Cash Distributions. Notwithstanding anything to the contrary contained herein, until such time as there exists an Event of
Default hereunder, Pledgor shall be entitled to all voting rights (if any) with respect to the Pledged Interest and, shall be entitled
to receive all distributions paid in respect of the Pledged Interest, if any.

(d)       Distributions
of Interests. If, prior to the Maturity Date, Pledgor becomes entitled to receive or receives any securities or other non-cash property
in addition to, in substitution of, or in exchange for the Pledged Interest (whether as a distribution in connection with any recapitalization,
reorganization or reclassification, a distribution or otherwise), Pledgor shall accept such securities or other property on behalf of
and for the benefit of Holder as additional security for Pledgor’s obligations hereunder and shall promptly deliver such additional
security to Holder, together with duly executed forms of assignment, and such additional security shall be deemed to be part of the Pledged
Interest hereunder.

(e)       Default.
This Note and Pledge constitutes a security agreement for purposes of the Uniform Commercial Code in all relevant jurisdictions. If an
Event of Default occurs hereunder, Holder may exercise any and all rights, powers and remedies of any owner of the Pledged Interest (including
the right to vote the Pledged Interest and receive distributions with respect to such Pledged Interest) and shall have and may exercise
without demand any and all of the rights and remedies granted to a secured party upon default under the Uniform Commercial Code of the
Commonwealth of Massachusetts or otherwise available to Holder under applicable law.

10.       Payment
of Indebtedness and Release of Pledged Interest. Upon payment in full of the indebtedness evidenced by this Note and Pledge, Holder
shall take all necessary action required to release any security interests Holder has with respect to the Pledged Interest.

11.       Waiver
of Presentment. Maker, on behalf of itself and its successors and assigns, hereby waives diligence, presentment, protest and demand
and notice of protest, demand, dishonor and nonpayment of this Note and Pledge, and expressly agrees that this Note and Pledge, or any
payment hereunder, may be extended from time to time and that Holder may accept security for this Note and Pledge or release security
for this Note and Pledge, all without in any way affecting the liability of Maker hereunder.

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12.       Amendment
and Waiver. Except as otherwise expressly provided herein, the provisions of this Note and Pledge may be amended and Maker may take
any action herein prohibited, or omit to perform any act herein required to be performed by it, only if Maker has obtained the prior written
consent of Holder.

13.       Further
Assurances. Maker agrees that at any time and from time to time upon the written request of Holder, Maker will execute and deliver
such further documents and do such further acts and things as Holder may reasonably request in order to effect the purpose of this Note
and Pledge.

14.       Replacement.
Upon receipt of evidence reasonably satisfactory to Maker of the ownership and the loss, theft, destruction or mutilation of this Note
and Pledge and, in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to Maker, or,
in the case of any such mutilation, upon the surrender of this Note and Pledge to Pledgor, Maker shall execute and deliver, in lieu thereof,
a new Note and Pledge representing the same rights represented by such lost, stolen, destroyed or mutilated Note and Pledge and dated
so that there will be no loss of interest on such Note and Pledge. Any Note and Pledge in lieu of which any such new Note and Pledge has
been so executed and delivered by Maker shall not be deemed to be an outstanding Note and Pledge for any purpose.

15.       Severability.
Any provision of this Note and Pledge which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

16.       No
Waiver. Holder shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder,
and no waiver shall be valid unless in writing, signed by an officer or director of Holder, and then only to the extent therein set forth.
A waiver by Holder of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Holder
would otherwise have on any future occasion. No failure to exercise or any delay in exercising on the part of Holder, any right, power
or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

17.       Governing
Law; Jurisdiction.

(a)       This
Note and Pledge shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts without giving
effect to any choice or conflict of law provision or rule (whether of the Commonwealth of Massachusetts or any other jurisdiction).

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(b)       ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS NOTE AND PLEDGE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED
IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS IN EACH CASE LOCATED IN SUFFOLK
COUNTY, MASSACHUSETTS, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING.
SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE
OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION
TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY
SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(c)       EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS NOTE AND PLEDGE IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LEGAL ACTION ARISING OUT OF OR RELATING TO THIS NOTE AND PLEDGE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS NOTE AND PLEDGE
CERTIFIES AND ACKNOWLEDGES THAT (1) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (2) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (3) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (4) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS NOTE AND PLEDGE BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 17(c).

18.       Attorney’s
Fees and Costs. In the event of any legal action to enforce any provision of this Note and Pledge, the prevailing party in such action
shall be entitled to all of its reasonable attorney’s fees and costs incurred in connection with such enforcement action.

19.       Successors
and Assigns. This Note and Pledge shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

20.       Counterparts.
This Note and Pledge may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Note and Pledge delivered by email or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original signed copy of this Note and Pledge.

[Remainder of Page Intentionally Left Blank;
Signature Pages Follow]

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IN WITNESS WHEREOF, 4Front has
executed and delivered this Promissory Note and Pledge Agreement as of the date first written above.

 

4FRONT:

 

4FRONT VENTURES CORP.

 

 

By:/s/ Leonid Gontmakher

Name:Leonid Gontmakher

Title:Chief Executive Officer

 

ACCEPTED BY HOLDER:

 

 

 

By:/s/ Kenneth V. Stevens

Name:Kenneth V. Stevens

 

 

[Signature Page to Project Mayflower Promissory
Note and Pledge Agreement]

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