Document:

Exhibit 10.9
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SECURITY AGREEMENT
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THIS SECURITY AGREEMENT (this “Agreement”) is entered into as of September 16, 2022 by and between TREES Corporation, a Colorado corporation (the “Company”), and the persons and entities identified on the signature page hereof (each individually a “Holder,” and collectively, the “Holders”).
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RECITALS:
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WHEREAS, The Company has issued and delivered Senior Secured Convertible Promissory Notes of even date herewith in the principal amount of $10,443,223.00 (“Notes”) to certain noteholders (“Holders”) pursuant to that certain Securities Purchase Agreement by and among the Company and Holders (“SPA”); and
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WHEREAS, Holders have required, as a condition of accepting the Notes, that the Company execute this Agreement to secure all obligations under the Notes.
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NOW THEREFORE, in consideration of the foregoing recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Holders hereby agree as follows:
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		1.
	Capitalized Terms.  Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed thereto in the SPA.

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		2.
	Liability Secured. This Agreement is entered into as security for the payment of the Notes.

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		3.
	Granting Clause. As security for the obligations under the Notes, the Company does hereby grant, pledge, transfer, sell, assign, convey and deliver to the Holder a security interest in, all of the right, title and interest of the Company, in and to the property listed on Exhibit A hereto, which is incorporated herein by reference and all proceeds or replacements thereof (hereinafter collectively referred to as the “Collateral”).

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		4.
	Warranties of Title.  The Company hereby: (a) covenants with the Holders, and their respective successors and assigns that the Company is the lawful owner of the Collateral and has the right to sell, assign, convey and grant a security interest in the same and that the Collateral is free and clear of all encumbrances and security interests (other than that of the Holders) except encumbrances in the ordinary course of business; (b) warrants and covenants to defend the title of the Collateral unto the Holders, against the claims of all persons; (c) warrants no financing statement covering any of the Collateral or any proceeds therefrom is on file at any public office; and (d) agrees, promptly upon request from the

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Holders to join with the Holders in executing one or more financing statements pursuant to the Uniform Commercial Code in form satisfactory to the Holders and to pay the cost of filing the same in all public offices wherever filing is deemed necessary or prudent by the Holders.
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		5.
	Taxes and Assessments. The Company agrees to pay all taxes, rents, assessments and charges levied against the Collateral and all other claims that are or may become liens against the Collateral, or any part thereof.

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		6.
	Insurance. For so long as this Agreement shall remain effective, the Company agrees to maintain insurance coverage on all Collateral secured hereby on terms and conditions consistent with reasonable business standards and in compliance with all contractual obligations of the Company.  The Company shall provide evidence of such insurance, and provide additional insured status, to the Lead Investor upon request.

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		7.
	Non-Waiver. It is agreed that no delay in exercising any right or option given or granted hereby to the Holders shall be construed as a waiver thereof; nor shall a single or partial exercise of any other right, power or privilege. Holders may permit the Company to remedy any default without waiving the default so remedied, and Holder may waive any default without waiving any other subsequent or prior default by the Company.

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		8.
	Events of Default. As used in this agreement, the term “Event of Default” shall mean the occurrence of an Event of Default under the Notes.

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		9.
	Acceleration of Liabilities. Upon the occurrence of any Event of Default, the Holder shall have the right without further notice to the Company to declare the entire unpaid balance of the Notes immediately due and payable.

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		10.
	Secured Party's Right After Default. Upon the occurrence of an Event of Default under this agreement, the Holder shall have, in addition to any other rights under this Agreement or under applicable law, the right upon reasonable notice to the Company to take any or all of the following actions at the same or at different times: (a) to collect all Collateral in the Company' name and take control of any cash or non-cash proceeds of Collateral (a deposit account control agreement to be in effect granting Holder exclusive control over cash proceeds in the event of default); (b) to enforce payment of any Collateral, to prosecute any action or proceeding with respect to the Collateral, to extend the time of payment of any and all Collateral, to make allowance and adjustments with respect thereto and to issue credits in the name of the Borrower; (c) to reposess any equipment, hard assets and inventory; (d) to transfer any licenses held by Company to name of Holder to the extent permitted by law; and (e) to exercise, in addition to all other rights and remedies of a Holder upon default under the Uniform Commercial Code. The net cash proceeds resulting from the exercise of any of the foregoing rights, after deducting all charges, expenses, cost and attorneys' fees relating thereto, including any and all costs and expenses incurred in securing the possession of Collateral and preparing the same for sale, shall be applied by the Holders to the payment of the Notes, whether due or to become due, and the Company shall remain liable to the Holders for any deficiency.

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		11.
	Miscellaneous.

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		a.
	Non-Public Information. Each Holder acknowledges that information concerning the matters that are the subject matter of this Agreement may constitute material non-public information under United States federal securities laws, and that United States federal securities laws prohibit any person who has received material non-public information relating to the Company from purchasing or selling securities of the Company, or from communicating such information to any person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell securities of the Company. Accordingly, until such time as any such non-public information has been adequately disseminated to the public, each Holder shall not purchase or sell any securities of the Company, or communicate such information to any other person.

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		b.
	Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado without regard to the principles of conflicts of law (whether of the State of Colorado or any other jurisdiction).

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		c.
	Exclusive Jurisdiction. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall only be commenced in the state and federal courts sitting in the County of Denver, Colorado (the “Colorado Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Colorado Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Colorado Courts, or such Colorado Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law.

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		d.
	JURY TRIAL WAIVER. THE COMPANY AND THE HOLDERS HEREBY IRREVOCABLY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, THE NOTES AND/OR THE WARRANTS.

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		e.
	Assignment. This Agreement shall be binding upon and inure to the benefit of the Company and the Holders and their respective successors. No assignment may be made without the prior written approval of the Parties.

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		f.
	No Third Party Beneficiaries. This Agreement is intended for the benefit of the Company and the Holders and their respective successors, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

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		g.
	Entire Agreement. This Agreement, the Notes and the Warrants, together with the exhibits and schedules thereto, contain the entire understanding of the Company and the Holders with respect to the matters covered herein and therein and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

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		h.
	Counterparts. This Agreement may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to be an original instrument which shall be enforceable against the parties actually executing such counterparts and all of which together shall constitute one and the same instrument. This Agreement may be delivered to the other parties hereto by e-mail of a copy of this Agreement bearing the signature of the parties so delivering this Agreement.

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		i.
	Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be ineffective if it materially changes the economic benefit of this Agreement to any party.

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		j.
	No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

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		k.
	Titles and Subtitles. The titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered in construing or interpreting this Agreement.

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		l.
	Amendments; Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the holders of more than sixty-six percent (66%) of the then aggregate outstanding principal amount of the Notes. Any waiver or amendment effected in accordance herewith will be binding upon each party to this Agreement. Notwithstanding the forgoing, no amendments or waivers shall be made without the prior written approval of Lead Investor.

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		m.
	Disclosure. The Holders acknowledge that this Agreement, the Notes and the Warrants may be deemed to be “material contracts,” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. The Holders further agree that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel.

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		n.
	Advice of Counsel.  Each Holder represents and acknowledges that it has had the opportunity to avail itself of the advice of counsel prior to signing this Agreement.

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[Signature page follows immediately]
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IN WITNESS WHEREOF, intending to be legally bound, the parties hereto have caused this Agreement to be executed as of the date set forth above.
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TREES CORPORATION
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By: ________________________
Name: Adam Hershey
Title: Interim Chief Executive Officer
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HOLDER
TCM Tactical Opportunities Fund II LP
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By: ________________________
Name: Douglas Troob
Title: Managing Partner
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Exhibit A
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Collateral
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All right, title and interest in and to all assets of the Company.

​Exhibit 10.10
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INITIAL ESCROW AGREEMENT
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THIS ESCROW AGREEMENT (this “Agreement”) is entered into as of September 15, 2022, by and among TCM Tactical Opportunities Fund II LP (“Purchaser”), TREES Corporation, a Colorado corporation (the “Company”) and Day & Associates, LLC, a New Jersey limited liability company (the “Escrow Agent”, and together with Purchaser and Company, sometimes referred to individually as “Party” and collectively as the “Parties”).
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RECITALS:
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WHEREAS, Company and Purchaser have entered into a Securities Purchase Agreement of even date herewith (the “Securities Purchase Agreement”), pursuant to which the Company agreed to sell to Purchaser and Purchaser agreed to purchase from the Company, a certain Senior Secured Promissory Note(s) and a certain Warrant (as each term is defined in the Securities Purchase Agreement)  for up to $13,500,000.00 (the “Principal Amount”); and
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WHEREAS, pursuant to the terms of the Securities Purchase Agreement, the Parties have agreed to enter into this Agreement and deposit the entirety of the Principal Amount with the Escrow Agent as set forth in the Securities Purchase Agreement for the purposes set forth herein; and
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WHEREAS, the execution and delivery of this Agreement is a condition to the obligations of the Parties under the Securities Purchase Agreement.
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AGREEMENTS:
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NOW, THEREFORE, in consideration of the foregoing and the representations, warranties and mutual covenants hereinafter set forth, the Parties hereto agree as follows:
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1.Appointment.  The Parties hereby appoint Escrow Agent as their escrow agent for the purposes set forth herein, and Escrow Agent hereby accepts such appointment under the terms and conditions set forth herein.
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2.Escrow Amount.  On the date hereof, Purchaser, or its designee, shall deposit with Escrow Agent the sum of thirteen million five hundred thousand dollars and no/100 ($13,500,000.00) (the “Escrow Amount”).  Unless otherwise instructed by the Parties, Escrow Agent shall hold the Escrow Amount in a non-interest bearing deposit account insured by the Federal Deposit Insurance Corporation (“FDIC”) to the applicable limits.
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3.Disposition and Termination.
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(a)Escrow Agent is directed to hold and distribute the Escrow Amount as set forth in this Section 3.
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(b)Except as otherwise provided in this Section 3, Escrow Agent will distribute the Escrow Amount only in accordance with (i) a joint written instrument, substantially in the form attached hereto as Exhibit A, delivered to Escrow Agent that is executed by Authorized Representatives (as defined below) of each Company and Purchaser, and that instructs Escrow Agent as to the disbursement of some or all of the Escrow Amount (“Joint Payment Instructions”), or (ii) a final non-appealable order of a court of competent jurisdiction accompanied by a written certification of the prevailing Party that such judgment or decree is final and not subject to any further appeal or proceedings, a copy of which is delivered to Escrow
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Agent and the other Parties, that instructs Escrow Agent as to the disbursement of some or all of the Escrow Amount (a “Court Order”).
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(c)Amounts distributed pursuant to this Section 3 will be paid to Purchaser or to the Company in accordance with wire instructions set forth in Section 3(d) below or furnished by an Authorized Representative of a Party to the Escrow Agent and confirmed in accordance with Section 3(d) below.
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(d)Any instructions setting forth, claiming, containing, objecting to, or in any way related to the transfer or distribution of the Escrow Amount, must be in writing and set forth in a Portable Document Format (“PDF”), executed by the appropriate Party or Parties as evidenced by the signatures of the person or persons signing this Agreement or one of their designated persons as set forth on Schedules 1-A and 1-B attached hereto (each, an “Authorized Representative”), and delivered to Escrow Agent only by an attachment to an email on a Business Day to the email address set forth in Section 8 below.  No instruction for or related to the transfer or distribution of the Escrow Amount will be deemed delivered and effective unless Escrow Agent actually receives it on a Business Day as a PDF attached to an email at the email address set forth in Section 8 and as evidenced by a confirmed transmittal to the Party’s or Parties’ email address, and Escrow Agent has been able to satisfy any applicable security procedures as may be required hereunder.  Escrow Agent will not be liable to any Party or other person for refraining from acting upon any instruction for or related to the transfer or distribution of the Escrow Amount if delivered to any other email address, including but not limited to a valid email address of any employee of Escrow Agent.  The Parties each acknowledge that Escrow Agent is authorized to use the following funds transfer instructions to disburse any funds due to Purchaser as set forth in Section 3(g) below:
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Purchaser:
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Bank Name:
ABA Number:
Account Name:
Account Number:
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(e)In the event any other funds transfer instructions are set forth in a permitted instruction from a Party or the Parties in accordance with Section 3(d), Escrow Agent is authorized to seek confirmation of such funds transfer instructions by a single telephone call-back to one of the Authorized Representatives, and Escrow Agent may rely upon the confirmation of anyone purporting to be that Authorized Representative.  The persons and telephone numbers designated for call-backs may be changed only in a writing executed by Authorized Representatives of the applicable Party and actually received by Escrow Agent via facsimile or as a PDF attached to an email.  Except as set forth in Section 3(d) above, no funds will be disbursed until an Authorized Representative is able to confirm such instructions by telephone callback.  Escrow Agent, any intermediary bank and the beneficiary’s bank in any funds transfer may rely upon the identifying number of the beneficiary’s bank or any intermediary bank included in a funds transfer instruction provided by a Party or the Parties and confirmed by an Authorized Representative.  Further, the beneficiary’s bank in the funds transfer instructions may make payment on the basis of the account number provided in such Party’s or the Parties’ instruction and confirmed by an Authorized Representative even though it identifies a person different from the named beneficiary.
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(f)As used in this Section 3, “Business Day” will mean any day other than a Saturday, Sunday, federal holiday or any other day on which Escrow Agent located at the notice address set forth below is authorized or required by law or executive order to remain closed.  The Parties acknowledge that the security procedures set forth in this Section 3 are commercially reasonable.  Upon delivery of the Escrow Amount by Escrow Agent, this Agreement will terminate, subject to the provisions of Section 6.
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(g)This Agreement will be terminated automatically on the sixtieth (60th) day follwoing the date hereof. The Agreement may also be terminated at any time by a written agreement executed by each of the Parties.  Upon termination of this Agreement, the Escrow Amount will be distributed, pursuant to the fund transfer instructions set forth in Section 3(d) above, to the Purchaser.
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4.Escrow Agent.  Escrow Agent will have only those duties as are specifically and expressly provided herein, which will be deemed purely ministerial in nature, and no other duties, including but not limited to any fiduciary duty, will be implied.  Escrow Agent has no knowledge of, nor any obligation to comply with, the terms and conditions of any other agreement between the Parties, nor will Escrow Agent be required to determine if any Party has complied with any other agreement.  Notwithstanding the terms of any other agreement between the Parties, the terms and conditions of this Agreement will control the actions of Escrow Agent. Escrow Agent may conclusively rely upon any written notice, document, instruction or request delivered by the Parties believed by it to be genuine and to have been signed by an Authorized Representative(s), as applicable, without inquiry and without requiring substantiating evidence of any kind and Escrow Agent will be under no duty to inquire into or investigate the validity, accuracy or content of any such document, notice, instruction or request.  Escrow Agent will not be liable for any action taken, suffered or omitted to be taken by it except to the extent that Escrow Agent’s gross negligence or willful misconduct was the cause of any direct loss to either Party.  Escrow Agent may execute any of its powers and perform any of its duties hereunder directly or through affiliates or agents.  In the event Escrow Agent shall be uncertain, or believes there is some ambiguity, as to its duties or rights hereunder or receives instructions, claims or demands from any Party hereto which in Escrow Agent’s judgment conflict with the provisions of this Agreement, or if Escrow Agent receives conflicting instructions from the Parties, Escrow Agent will be entitled either to (a) refrain from taking any action until it will be given Joint Payment Instructions which eliminate such conflict or by a Court Order or (b) file an action as an interpleader.  Escrow Agent will have no duty to solicit any payments which may be due it, including, without limitation, the Escrow Amount, nor will Escrow Agent have any duty or obligation to confirm or verify the accuracy or correctness of any amounts deposited with it hereunder.  Anything in this Agreement to the contrary notwithstanding, in no event will Escrow Agent be liable for special, incidental, punitive, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.
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5.Resignation; Succession; Removal.
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(a)Escrow Agent may resign and be discharged from its duties or obligations hereunder by giving fifteen (15) days advance notice in writing of such resignation to the Parties.  Escrow Agent’s sole responsibility after such fifteen (15) day notice period expires will be to hold the Escrow Amount and to deliver the same to a designated substitute escrow agent, if any, appointed by the Parties, or such other person designated by the Parties, or in accordance with the directions of a Court Order, at which time of delivery, Escrow Agent’s obligations hereunder will cease and terminate.  If prior to the effective resignation date the Parties have failed to appoint a successor escrow agent, or to instruct Escrow Agent to deliver the Escrow Amount to another person as provided above, at any time on or after the effective resignation date, Escrow Agent either (i) may interplead the Escrow Amount with a court of competent jurisdiction, or (ii) appoint a successor escrow agent of its own choice.  Any appointment by Escrow Agent of a successor escrow agent pursuant to the forgoeing will be binding upon the Parties and no appointed successor escrow agent will be deemed to be an agent of Escrow Agent.  Escrow Agent will deliver the Escrow Amount to any appointed successor escrow agent, at which time Escrow Agent’s obligations under this Agreement will cease and terminate.  Any entity into which Escrow Agent may be merged or converted or with which it may be consolidated, or any entity to which all or substantially all the escrow business may be transferred, will be considered “Escrow Agent” under this Agreement without further act.
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(b)The Parties may remove Escrow Agent by giving twenty (20) days advance notice in writing of such removal to Escrow Agent.  Within ten (10) days after giving the foregoing notice of removal to Escrow Agent, the Parties will jointly agree on and appoint a successor escrow agent.  If a successor to Escrow Agent has not accepted such appointment by the end of such ten (10) day period, Escrow Agent either (i) may interplead the Escrow Amount with a court of competent jurisdiction, or (ii) appoint a successor escrow agent of its own choice.  Any appointment of a successor escrow agent will be binding upon the Parties and no appointed successor escrow agent will be deemed to be an agent of Escrow Agent.
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6.Compensation.  The Parties agree jointly and severally to pay Escrow Agent upon execution of this Agreement, and from time to time thereafter, reasonable compensation for the services to be rendered hereunder, which unless otherwise agreed in writing, will be as described in Schedule 2.  As between the Parties, the Company on one hand, and Purchaser on the other, will each be responsible for one-half (1/2) of all amounts payable or reimbursable to Escrow Agent under this Section 6 or otherwise provided for in this Agreement.
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7.Indemnification and Reimbursement.  The Parties agree jointly and severally to indemnify, defend, hold harmless, pay or reimburse Escrow Agent and its affiliates and their respective successors, assigns, directors, agents and employees (the “Indemnitees”) from and against any and all losses, damages, claims, liabilities, penalties, judgments, settlements, litigation, investigations, costs or expenses (including, without limitation, the fees and expenses of outside counsel and experts and their staff and all expenses of document location, duplication and shipment) (collectively “Losses”), arising out of or in connection with: (a) Escrow Agent’s performance of this Agreement, except to the extent that such Losses are determined by a court of competent jurisdiction to have been caused by the gross negligence, willful misconduct, or fraud of such Indemnitee; and (b) Escrow Agent’s following any instructions or directions, whether joint or singular, from the Parties received in accordance with this Agreement.  The Parties hereby grant Escrow Agent a right of set-off against the Escrow Amount for the payment of any claim for indemnification, fees, expenses and amounts due to Escrow Agent or an Indemnitee.  In furtherance of the foregoing, Escrow Agent is expressly authorized and directed, but will not be obligated, to charge against and withdraw from the Escrow Amount for its own account or for the account of an Indemnitee any amounts due to Escrow Agent or to an Indemnitee under Sections 6 or 7.  The obligations set forth in this Section 7 will survive the resignation, replacement or removal of Escrow Agent or the termination of this Agreement.  As between the Parties, the Company on one hand, and Purchaser on the other, agree that irrespective of any joint and several liability that either may have to Escrow Agent under this Agreement, as between them, the Company on one hand, and Purchaser on the other, will each only be liable for 50% of any Losses incurred by Escrow Agent which result in reimbursement or indemnification under this Section 7.  As between the Parties, if either the Company on one hand, or Purchaser on the other, incurs greater than 50% of any such Losses, Purchaser or the Company, as applicable, will promptly make payment to the other such that each of the Company on one hand, and Purchaser on the other, has borne 50% of all amounts which are paid to Escrow Agent under this Section 7.
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8.Notices. All communications hereunder will be in writing and set forth in a PDF attached to an email, and all instructions from a Party or the Parties to Escrow Agent will be executed by an Authorized Representative, and will be delivered in accordance with Section 3(d) to the address set forth for each Party as follows:
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If to Purchaser:
TCM Tactical Opportunities Fund II LP
777 Westchester Ave, Suite 203
White Plains, NY 10604
Attn:  Peter Troob
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E-mail: ptroob@troobcapital.com
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If to Company:
TREES Corporation
1901 S. Navajo Street
Denver, CO 80223
Attn: David R. Fishkin, General Counsel
E-mail:dfishkin@treescann.com
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If to Escrow Agent:
Day & Associates, LLC
2 Hudson Place, Suite 100
Hoboken, NJ 07030
Attn:  Nick Day, Esq.
E-mail: nday@nickdaylaw.com
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9.Compliance with Court Orders.  In the event that legal garnishment, attachment, levy, restraining notice or court order is served with respect to any of the Escrow Amount, or the delivery thereof will be stayed or enjoined by an order of a court, Escrow Agent is hereby expressly authorized, in its sole discretion, to obey and comply with all such orders so entered or issued, which it is advised by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction, and in the event that Escrow Agent obeys or complies with any such order it will not be liable to any of the Parties hereto or to any other person by reason of such compliance notwithstanding such order be subsequently reversed, modified, annulled, set aside or vacated.
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10.Miscellaneous.  The provisions of this Agreement may be waived, altered, amended or supplemented only by a writing signed by Escrow Agent and the Parties.  Neither this Agreement nor any right or interest hereunder may be assigned by any Party without the prior consent of Escrow Agent and the other Party.  This Agreement will be governed by and construed under the laws of the State of New York.  Each Party and Escrow Agent irrevocably waives any objection on the grounds of venue, forum non-conveniens or any similar grounds and irrevocably consents to service of process by mail or in any other manner permitted by applicable law and consents to the jurisdiction of the courts located in the State of New York.  To the extent that in any jurisdiction either Party may now or hereafter be entitled to claim for itself or its assets, immunity from suit, execution, attachment (before or after judgment) or other legal process, such Party will not claim, and hereby irrevocably waives, such immunity.  Escrow Agent and the Parties further hereby waive any right to a trial by jury with respect to any lawsuit or judicial proceeding arising or relating to this Agreement.  No Party to this Agreement is liable to any other Party for losses due to, or if it is unable to perform its obligations under the terms of this Agreement because of, acts of God, fire, war, terrorism, floods, strikes, electrical outages, equipment or transmission failure, or other causes reasonably beyond its control.  This Agreement, and any joint instructions from the Parties, may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument or instruction, as applicable.  All signatures of the Parties to this Agreement may be transmitted by facsimile or as PDF attached to an email, and such facsimile or PDF will, for all purposes, be deemed to be the original signature of such Party whose signature it reproduces, and will be binding upon such Party.  If any provision of this Agreement is determined to be prohibited or unenforceable by reason of any applicable law of a jurisdiction, then such provision will, as to such
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jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability in such jurisdiction will not invalidate or render unenforceable such provisions in any other jurisdiction.  The Parties represent, warrant and covenant that, to each Party’s knowledge, each document, notice, instruction or request provided by it to the Escrow Agent will comply with applicable laws and regulations. Except as expressly provided in Section 7 above, nothing in this Agreement, whether express or implied, will be construed to give to any person or entity other than Escrow Agent and the Parties any legal or equitable right, remedy, interest or claim under or in respect of the Escrow Amount or this Agreement.
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***Signature Page to Escrow Agreement Follows***
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IN WITNESS WHEREOF, the Parties hereto have executed this Escrow Agreement as of the date set forth above.
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	PURCHASER:
	TCM Tactical Opportunities Fund II, LP.
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By:______________________________
Name: Peter Troob
Title: Managing Partner
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	COMPANY:
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TREES Corporation
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By: _____________________________
Name: Adam Hershey
Title: Interim Chief Executive Officer
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	ESCROW AGENT: 
	DAY & ASSOCIATES, LLC
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By: ____________________________
Name:  Nicholas Day, Esq.
Title:    Managing Member
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Signature Page to Escrow Agreement

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EXHIBIT A
FORM OF ESCROW RELEASE NOTICE – JOINT INTSRUCTIONS
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VIA EMAIL (nday@nickdaylaw.com)
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Date: [____________________]
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Day & Associates, LLC
2 Hudson Place, Suite 100
Hoboken, NJ 07030
Attn:  Nicholas Day, Esq.
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Re:  Initial Escrow Agreement dated September [      ], 2022
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Dear Mr. Day:
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We refer to an escrow agreement dated September [    ], 2022 by and among TCM Tactical Opportunities Fund II, LP (“Purchaser”), Day & Associates, LLC, a New Jersey limited liability company (the “Escrow Agent”) and TREES Corporation (the “Company”) (the “Escrow Agreement”).
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Capitalized terms used in this letter that are not otherwise defined herein shall have the same meaning given to them in the Escrow Agreement.
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The Parties instruct the Escrow Agent to release an amount equal to [__________________], from the Escrow Account, to the specified Party as instructed below.
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Amount (In writing)
Beneficiary
City
Country
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US Wire Transfer Instructions:
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Bank
Bank address
ABA Number:
Credit A/C Name:
Credit A/C #:
Credit A/C Address:
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	COMPANY:
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TREES Corporation
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By: ______________________________
Name: Adam Hershey
Title: Interim Chief Executive Officer
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	PURCHASER:
TCM Tactical Opportunities Fund II, LP
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By:______________________________
Name: Peter Troob
Title: Managing Partner

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SCHEDULE 1-A
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TCM Tactical Opportunities Fund II, LP
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DESIGNATION OF AUTHORIZED REPRESENTATIVES
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Each of the following persons is at the date hereof an Authorized Representative, as such term is defined in the Escrow Agreement, dated [•], 2022 by and among Purchaser, the Company  and the Escrow Agent (the “Escrow Agreement”), that the signature appearing opposite each person’s name is the true and genuine signature of such person, and that each person’s contact information is current and up-to-date at the date hereof.  Each of the Authorized Representatives is authorized to issue instructions, confirm funds transfer instructions by callback and effect changes in Authorized Representatives, all in accordance with the terms of the Escrow Agreement.
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	NAME
	SIGNATURE
	TELEPHONE & CELL NUMBERS

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Peter Troob
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___________________________
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Office: (914) 694-5777
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	E-mail:ptroob@troobcapital.com

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Douglas Troob
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___________________________
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Office: (914) 694-5777
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	E-mail:dtroob@troobcapital.com

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Vincent Mazziotta
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___________________________
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Office: (914) 694-5777
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	E-mail: vmarzziotta@troobcapital.com

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All instructions, including but not limited to funds transfer instructions, must include the signature of the Authorized Representative authorizing said funds transfer on behalf of such Party.
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SCHEDULE 1-B
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TREES Corporation
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Telephone Numbers and Authorized Signatures of
Person(s) Designated to Give Instructions and Confirm Funds Transfer Instructions
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Each of the following persons is at the date hereof an Authorized Representative, as such term is defined in the Escrow Agreement, dated [•], 2022 by and among Purchaser, the Company  and the Escrow Agent (the “Escrow Agreement”), that the signature appearing opposite each person’s name is the true and genuine signature of such person, and that each person’s contact information is current and up-to-date at the date hereof.  Each of the Authorized Representatives is authorized to issue instructions, confirm funds transfer instructions by callback and effect changes in Authorized Representatives, all in accordance with the terms of the Escrow Agreement.
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	NAME
	SIGNATURE
	TELEPHONE & CELL NUMBERS

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David Fishkin
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___________________________
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Office: 917.880.0743
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	E-mail: dfishkin@generalcann.com

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Adam Hershey
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___________________________
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Office: 917.880.0743
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	E-mail: ahershey@generalcann.com

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Jessica Bast
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___________________________
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Office: 917.880.0743
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	E-mail: jbast@treescann.com

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All instructions, including but not limited to funds transfer instructions, must include the signature of the Authorized Representative authorizing said funds transfer on behalf of such Party.
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SCHEDULE 2
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Schedule of Fees for Escrow Agent Services
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Based upon our current understanding of your proposed transaction, our fee proposal is as follows:
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Acceptance and Administration Fee
To cover the acceptance of the Escrow Agency appointment, the study of the Escrow Agreement, and supporting documents submitted in connection with the execution and delivery thereof, and communication with other members of the working group.  The annual administration fee covers maintenance of the Escrow Account including safekeeping of assets in the escrow account, normal administrative functions of the Escrow Agent, including maintenance of the Escrow Agent’s records, follow-up of the Escrow Agreement’s provisions, and any other safekeeping duties required by the Escrow Agent under the terms of the Escrow Agreement. Fee is based on Escrow Amount being deposited in a non-interest bearing transaction deposit account, FDIC insured to the applicable limits.
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Fee:  $0
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Transaction Fees
To oversee all required disbursements or release of property from the escrow account to any Party, including cash disbursements made via check and/or wire transfer, fees associated with postage and overnight delivery charges incurred by the Escrow Agent as required under the terms and conditions of the Escrow Agreement:
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Fee:  $0, except that wire charges or delivery fees are to be withheld from any dispursement of funds.
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Other Fees
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Material amendments to the Agreement or the coordination of dispute resolution activity will be subject to additional charges by the Escrow Agent and will require an upfront retainer in an agreed upon amount to be paid equally by the Parties.

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