Company: VREOF
Filing Date: 2025-03-21
Form Type: DEFM14C
Source: 0001140361-25-009815
Chunk: 139

Company: Vireo Growth Inc.
Filing Date: 2025-03-21
Form: DEFM14C
Chunk 139
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 effecting the Proper Restructuring required by and described in the Proper Merger Agreement, Proper and Proper MSA Newco will execute and deliver to each other the Proper Management Services Agreement. The Proper Management Services Agreement sets forth the terms on which Proper MSA Newco will operate Proper’s nonregulated assets until such time as Proper and its subsidiaries obtain the required regulatory approvals in Missouri to transfer their regulated assets (including any licenses to cultivate and transport cannabis products and own and operate cannabis retail stores) (the “Proper Regulated Assets”) to Proper MSA Newco, or, after the Proper Closing, any other affiliate of the Company.

Proper MSA Newco will charge a monthly installment fee of $1,800,000 pursuant to the Proper Management Services Agreement, which management fee will be reviewed and adjusted (upward or downward) by Proper and Proper MSA Newco quarterly.

The Proper Management Services Agreement may only be terminated by Proper or Proper MSA Newco upon the occurrence of a bankruptcy event of the other party, and (i) by Proper MSA Newco in the event that (a) any license held by Proper or its subsidiaries is revoked or (b) certain adverse regulatory determinations are made by the Missouri regulator with respect to the Proper Management Services Agreement, and (ii) by Proper if Proper MSA Newco fails to reimburse Proper for certain tax obligations of Proper and its equityholders in connection with the operation of Proper’s business by Proper MSA Newco, or if all of the licenses held by Proper or its subsidiaries are revoked.

The Proper Management Services Agreement includes customary indemnification provisions by each of Proper and Proper MSA Newco to the other party for losses arising out of a third party claim alleging (i) the breach or non-fulfillment of any representation, warranty, or covenant of the indemnifying party under the Proper Management Services Agreement, (ii) any negligent or more culpable act or omission of the indemnifying party in connection with the performance of its obligations under the Proper Management Services Agreement, (iii) any bodily injury or death of any person or damage to real or personal property caused by the negligent or more culpable acts or omissions of the indemnifying party, or (iv) any failure by an indemnifying party to materially comply with any applicable law (with the exception of federal cannabis laws).

#### Option Agreement
At or prior to the Proper Closing, Proper, the Company and/or Proper MSA Newco will execute and deliver to each other an option agreement (the