Document:

trtc_ex102.htm

EXHIBIT 10.2
  
 SECURED PROMISSORY NOTE
  
 	 $2,800,000
	  
	 May 8, 2019

		  
	 Las Vegas, Nevada

  
 FOR VALUE RECEIVED, the undersigned, Picksy, LLC, a Nevada limited liability company (the “Borrower”), with a mailing address of 1901 Camino Carlos Rey, North Las Vegas, NV 89031, hereby promises to pay to the order of MEDIFARM LLC, an Nevada limited liability company (the “Lender”), with a mailing address of 2040 Main Street, Suite 225, Irvine, CA 92614, the maximum principal amount of Two Million Eight Hundred Thousand Dollars ($2,800,000), together with interest on the unpaid Principal Amount (as defined below) outstanding from time to time at the rate or rates hereafter specified and any and all other sums which may be owing to the Lender by the Borrower hereunder.
  
 The following terms shall apply to this Note:
  
 1. Security and Priority. As security for payment of the Obligations (as defined below) under this Note, the Borrower and the Lender have entered into that certain Security Agreement of even date herewith (the “Security Agreement”). The Security Agreement and the Note are sometimes hereinafter referred to as the “Loan Documents.” The Borrower and the Lender have agreed that all Obligations under this Note will be secured by all of the Collateral (as that term is defined in the Security Agreement) of the Borrower.
  
 2. Interest Rate. Interest shall accrue and be payable on the outstanding Principal Amount at a fixed rate of interest equal to five percent (5.0%) per annum. Interest shall be calculated on the basis of a year of 360 days applied to the actual days on which there exists an unpaid balance under this Note. Interest shall be paid by the Borrower as follows: All interest shall be accrued and be paid at maturity of this Note
  
 3. Term; Maturity Date. For purposes of this Note and the Security Agreement, the “Maturity Date” shall be the date that is one (1) year after the date of this Note. For the avoidance of doubt, this Note is a balloon promissory note that requires that all indebtedness, principal and interest, be paid in full on the Maturity Date.
  
 4. Repayment Extension. If any payment of principal or interest shall be due on a Saturday, Sunday or any other day on which banking institutions in the State of Nevada are required or permitted to be closed, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest under this Note.
  
 5. Manner and Application of Payments. All payments due hereunder shall be paid in lawful money of the United States of America which shall be legal tender in payment of all debts and dues, public and private, in immediately available funds, without offset, deduction or recoupment. Any payment by check or draft shall be subject to the condition that any receipt issued therefore shall be ineffective unless the amount due is actually received by the Lender. Each payment shall be applied first, to the payment of any and all costs, fees and expenses incurred by or payable to the Lender in connection with the collection or enforcement of this Note; second, to the payment of all accrued and unpaid interest hereunder; and third, to the payment of the unpaid Principal Amount, or in any other manner which the Lender may, in its sole discretion, elect from time to time.
  
 6. Prepayment. Advances under this Note may be prepaid at any time without penalty.
  
 7. Obligations. The term “Obligations” shall mean the full and punctual observance and performance of all present and future duties, covenants and responsibilities due to the Lender by the Borrower of any nature whatsoever under this Note, including all present and future indebtedness and liabilities of the Borrower to the Lender for the payment of money extending to the Principal Amount and all interest, fees, late charges, expense payments, liquidation costs, and expenses provided in this Note, whether similar or dissimilar, related or unrelated, matured or unmatured, direct or indirect, contingent or noncontingent, primary or secondary, alone or jointly with others, now due or to become due, now existing or hereafter created, and whether or not now contemplated. If more than one Obligation is outstanding, each payment may be applied to such of the Obligations as the Lender shall determine in its sole discretion.
  
  	 
	 1

	 
 
	 

  
 8. Events of Default. Failure to pay the principal and interest on the indebtedness when due and to then cure such failure after 10 days written notice thereof by Lender to Borrower shall constitute an “Event of Default.”
  
 9. Rights and Remedies Upon Default. Upon the occurrence of an Event of Default hereunder, the Lender, in the Lender’s sole discretion and with prior written notice to the Borrower, may: (a) declare the entire outstanding Principal Amount, together with all accrued interest and all other sums due under this Note, to be immediately due and payable, and the same shall thereupon become immediately due and payable without protest, presentment, demand or notice, which are hereby expressly waived; (b) exercise its right of setoff against any money, funds, or credits of the Borrower now or at any time hereafter in the possession of, in transit to or from, under the control or custody of or on deposit with, the Lender or any affiliate of the Lender in any capacity whatsoever; and (c) exercise any or all rights, powers and remedies provided for in the Loan Documents or now or hereafter existing at law, in equity, by statute or otherwise.
  
 10. Remedies Cumulative. Each right, power and remedy of the Lender hereunder, under the Loan Documents or now or hereafter existing at law, in equity, by statute or otherwise shall be cumulative and concurrent, and the exercise or beginning of the exercise of any one or more of them shall not preclude the simultaneous or later exercise by the Lender of any or all such other rights, powers or remedies. No failure or delay by the Lender to insist upon the strict performance of any one or more provisions of this Note or of the Loan Documents or to exercise any right, power or remedy consequent upon a default hereunder shall constitute a waiver thereof or preclude the Lender from exercising any such right, power or remedy. By accepting full or partial payment after the due date of any amount of principal of or interest on this Note, or other amounts payable on demand, the Lender shall not be deemed to have waived the right either to require prompt payment when due and payable of all other amounts of principal of or interest on this Note or other amounts payable on demand, or to exercise any rights and remedies available to it in order to collect all such other amounts due and payable under this Note.
  
 11. Collection Expenses. The Borrower shall pay any and all issue taxes, documentary stamp taxes, and other taxes that may be payable in respect of the issuance or delivery of this Note. If this Note is placed in the hands of an attorney for collection following the occurrence of an Event of Default hereunder, the Borrower agrees to pay to the Lender upon demand all costs and expenses, including, without limitation, all attorneys’ fees and court costs incurred by the Lender in connection with the enforcement or collection of this Note (whether or not any action has been commenced by the Lender to enforce or collect this Note). The obligation of the Borrower to pay all such costs and expenses shall not be merged into any judgment by confession against the Borrower. All of such costs and expenses shall bear interest at the rate of interest provided herein, from the date of payment by the Lender until repaid in full.
  
 12. Maximum Rate of Interest. Notwithstanding any provision of this Note or the Loan Documents to the contrary, the Borrower shall not be obligated to pay interest pursuant to this Note in excess of the maximum rate of interest permitted by the laws of any state determined to govern this Note or the laws of the United States applicable to loans in such state. If any provisions of this Note shall ever be construed to require the payment of any amount of interest in excess of that permitted by applicable law, then the interest to be paid pursuant to this Note shall be held subject to reduction to the amount allowed under applicable law and any sums paid in excess of the interest rate allowed by law shall be applied in reduction of the principal balance outstanding pursuant to this Note. The Borrower acknowledges that it has been contemplated at all times by the Borrower that the laws of the State of Nevada will govern the maximum rate of interest that it is permissible for the Lender to charge the Borrower pursuant to this Note.
  
 13. Choice of Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada, without reference to principles of choice or conflict of law thereunder. Whenever possible, each provision of this Note shall be interpreted to be effective and valid under applicable law. If any provision of this Note is prohibited by or invalid under applicable law, the provision shall be ineffective only to the extent of the prohibition or invalidity, without invalidating the remainder of the provision or the other remaining provisions of this Note.
  
  	 
	 2

	 
 
	 

  
 14. Notices. All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given if (and then two business days after) it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the addresses set forth in the first paragraph of this Note. Any party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other party notice in the manner herein set forth.
  
 15. Jurisdiction. THE BORROWER HEREBY CONSENTS AND AGREES THAT THE STATE AND/OR FEDERAL COURTS LOCATED IN THE STATE OF NEVADA SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE BORROWER, ON THE ONE HAND, AND THE LENDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE; PROVIDED, THAT THE BORROWER ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE STATE OF NEVADA.. This jurisdictional consent by Borrower is coextensive with or to the mutual jurisdictional consent of Borrower and Secured Party set forth in the Security Agreement applicable to this Note.
  
 16. Miscellaneous. The section headings of this Note are for convenience only, and shall not limit or otherwise affect any of the terms hereof. Save and except for the Security Agreement entered into between Borrower and Lender contemporaneously with this Note and the Asset Purchase Agreement as defined in the Security Agreement, this Note constitutes the entire agreement between the parties with respect to their subject matter and supersede all prior letters, representations or agreements, oral or written, with respect thereto. No modification, release or waiver of this Note shall be deemed to be made by the Lender unless in writing signed by the Lender, and each such waiver, if any, shall apply only with respect to the specific instance involved. This Note shall inure to the benefit of and be enforceable by the Lender and shall be binding upon and enforceable against the Borrower and the Borrower’s personal representatives, successors, heirs and assigns. Whenever used herein, the singular number shall include the plural, the plural the singular, and the use of the masculine, feminine or neuter gender shall include all genders. In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal, or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operates or would prospectively operate to invalidate this Note, then and in any of those events, only such provision or provisions shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced, or disturbed thereby.
  
 IN WITNESS WHEREOF, Borrower has duly executed this Note as of the day and year first hereinabove set forth.
  
  	 	 Picksy, LLC
	
	  
	 a Nevada limited liability company
	  

	 	 	 	 
		By:	/s/ Stacie Jackson	
	  
	 Name:
	 Stacie Jackson
	 
	 	 Title:
	 Manager
	 

  
  
  	 3trtc_ex103.htm

EXHIBIT 10.3
  
 SECURITY AGREEMENT
  
 THIS AGREEMENT, made this 8th day of May 2019, under the laws of the State of Nevada
  
 BETWEEN MEDIFARM LLC (herein called the “Secured Party”) whose address is 2040 Main Street, Suite 225, Irvine CA 92614 and PICKSY, LLC (herein called the “Debtor”), whose address is 1901 Camino Carlos Rey, North Las Vegas, NV 89031.
  
 WITNESSETH:
  
 To secure:
  
 1. The payment of an indebtedness of the Debtor to the Secured Party in the amount of Two Million Eight Hundred Thousand ($2,800,000) Dollars, 
  
 2. Any other indebtedness or liability of the Debtor to the Secured Party hereafter arising, including all future advances or loans which may be made by Secured Party to Debtor, (all hereinafter called the “obligations”).
  
 3. All costs and expenses incurred by the Secured Party in the collection of the foregoing, including reasonable attorney’s fees and other expenses for pursuing, searching for, receiving, taking, keeping, storing, advertising, and selling the collateral. If the Debtor shall default, after written notice and a 10 day cure period in the performance of any of the provisions of this agreement on the Debtor’s part to be performed, Secured Party may perform same for the Debtor’s account and any monies expended in so doing shall be chargeable with interest to the Debtor and added to the indebtedness.
  
 Debtor hereby grants and conveys to the Secured Party, a security interest in, and mortgages to the Secured Party, the following collateral:
  
 a. All of the Assets (as defined in the Asset Purchase Agreement) the Debtor has acquired from Secured Party pursuant that certain Asset Purchase Agreement of even date herewith (the “Asset Purchase Agreement”). The Debtor and Secured Party have agreed that all of the obligations of this agreement will be secured by the Assets. 
  
 b. All proceeds thereof, if any,
  
 c. All substitutions, replacements and accessions thereto
  
 DEBTOR WARRANTS, COVENANTS AND AGREES AS FOLLOWS:
  
 1. To pay and perform all of the obligations secured by this Agreement according to their terms.
  
 2. To defend the title to the collateral granted Secured Party against all persons and against all claims and demands whatsoever, which collateral, except for the security interest granted hereby, is lawfully owned by the Debtor and is now free and clear of any and all liens, security interests, claims, charges, encumbrances, taxes and assessments except as may be set forth in the schedule attached hereto.
  
 3. On demand of the Secured Party to do the following: furnish further assurance of title, execute any written agreement or do any other acts reasonably necessary to effectuate the purposes and provisions of this Agreement, execute any instrument or statement required by law or otherwise in order to perfect, continue or terminate the security interest of the Secured Party in the collateral and pay all filing fees in connection therewith.
  
  	 
	1
	 
 
	 

  
 4. To retain possession of the collateral during the existence of this Agreement and not to sell, exchange, assign, loan, deliver, lease, mortgage or otherwise dispose of same, except in the ordinary course of business without the written consent of the Secured Party.
  
 5. To keep the collateral free and clear of all liens, charges, encumbrances, taxes and assessments.
  
 6. To pay, when due, all taxes, assessments and license fees relating to the collateral.
  
 7. To keep the collateral, at Debtor’s own cost and expense, in good repair and condition and not to misuse, abuse, waste or allow it to deteriorate except for normal wear and tear and to make same available for inspection by the Secured Party at all reasonable times.
  
 8. To keep the collateral insured against loss by fire (including extended coverage), theft and other hazards as the Secured Party may reasonably require. Policies shall be in such form and in an aggregate amount equal to or exceeding the principal balance due under the Promissory Note at the time such policy is issued or renewed and with such companies as the Secured Party may approve, such approval not to be unreasonably withheld. Policies shall be obtained from responsible insurers authorized to do business in Nevada. Certificates of insurance or policies, payable to the respective parties as their interest may appear, shall be deposited with the Secured Party who is authorized, but under no duty, to obtain such insurance upon failure of the Debtor to do so after written notice to Debtor and a 10-day cure period thereafter. Debtor shall give immediate written notice to the Secured Party and to insurers of loss or damage to the collateral and shall promptly file proofs of loss with insurers. Debtor hereby assigns to the Secured Party all sums which may become payable under such insurance, including return premiums and dividends, as additional security for the indebtedness, but such assignment may only be exercised by Secured Party if Debtor is in default and 10 days have passed since notice of such default was given to Debtor by Secured Party and such default remains substantially uncured. Any other return premiums and/or dividends shall be paid to Debtor.
  
 9. To immediately notify the Secured Party in writing of any change in or discontinuance of Debtor’s place or places of business.
  
 DEFAULT:
  
 1. The following shall constitute a default by Debtor:
  
  	  
	a.	Failure to pay the principal or any installment of principal on the indebtedness when due and to then cure such failure after 10 days written notice thereof by Secured Party to Debtor.
	  
	  
	  

	  
	b.	Failure by Debtor to comply with or perform any provision of this agreement, after notice and a 10-day cure period.
	  
	  
	  

	  
	c.	False or misleading written material representations or warranties made or given by Debtor in connection with this agreement to Secured Party.
	  
	  
	  

	  
	d.	Subjection of the collateral to levy of execution or other judicial process.
	  
	  
	  

	  
	e.	Commencement of any insolvency proceeding by or against the Debtor or of any guarantor of or surety for the Debtor’s obligations which is not dismissed or otherwise disposed of within 60 days of commencement.

  
  	 
	2
	 
 
	 

  
 2. Upon any default of the Debtor and at the option of the Secured Party, the obligations secured by this Agreement shall, after written notice thereof by Secured Party to Debtor and the passage of 10 days’ time without such default being substantially cured, immediately become due and payable in full and the Secured Party shall have all the rights, remedies and privileges with respect to repossession, retention and sale of the collateral and disposition of the proceeds as are accorded to a Secured Party by the applicable sections of the Uniform Commercial Code as enacted in Nevada respecting “Default”, in effect as of the date of this Security Agreement.
  
 GENERAL PROVISIONS:
  
 1. Debtor consents to any extension of time or payment. 
  
 2. All items of collateral shall remain personal property, not become part of the freehold regardless of the manner of affixation and be kept at Debtor’s places of business in Las Vegas, Nevada, except in the ordinary course of business.
  
 3. The Debtor shall remain liable for any deficiency resulting from a commercially reasonable sale of collateral, and Debtor shall pay any such deficiency forthwith on demand and upon presentment of proof of the deficiency amount.
  
 4. The Uniform Commercial Code as enacted in the State of Nevada shall govern the rights, duties and remedies of the parties and any provisions herein declared invalid under any law shall not invalidate any other provision of this agreement. In addition to its statutory rights, the Secured Party may: 
  
 a. require Debtor to assemble the collateral and make it available to the Secured Party at a place to be designated by the Secured Party, reasonably convenient to both parties; 
  
 b. unless the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, Secured Party will give Debtor reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or any other intended disposition thereof is to be made. The requirements of reasonable notice will be met if such notice is mailed, postage prepaid, to the address of the Debtor shown above, at least three business days before the time of sale or disposition.
  
 5. In addition to any rights granted to Secured Party under the Uniform Commercial Code as enacted in the State of Nevada, in the event of an unremedied default by the Debtor, Secured Party may elect to take over the operations of the Debtor in its Las Vegas, Nevada location and continue to operate said business under the licenses granted by DOT (as defined in the Asset Purchase Agreement). Such election shall be deemed to be full satisfaction of Debtor’s obligations to Secured Party hereunder and under the Note (as defined in the Asset Purchase Agreement).
  
 6. Any waiver of or acquiescence in any default by the Debtor, or failure of the Secured Party to insist upon strict performance by the Debtor of any warranties or agreements in this Agreement, shall not constitute a waiver of any subsequent or other default or failure, except as provided otherwise at law or in equity.
  
 7. The terms, warranties and agreements herein contained shall bind and inure to the benefit of the respective parties hereto, and any legal representatives, successors and assignees.
  
 8. Secured Party may assign this agreement only upon written approval of Debtor, which approval shall not be unreasonably withheld and if assigned the assignee shall be entitled, upon notifying the Debtor, to performance of all of Debtor’s obligations and agreements hereunder and the assignee shall be entitled to all of the rights and remedies of the Secured Party hereunder. Notwithstanding the foregoing, Secured Party may not assign its rights to elect to take over the operations of the Debtor in its Las Vegas, Nevada location and continue to operate said business under the licenses granted by NV DOT (as defined in the Asset Purchase Agreement) without the express prior written approval of the assignee by the NV DOT.
  
  	 
	3
	 
 
	 

  
 9. The Secured Party is hereby authorized to file a Financing Statement as executed by Debtor.
  
 10. Miscellaneous Provisions
  
 a. Save and except for the Asset Purchase Agreement, this Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereof, and no other agreement, statement, or promise relating to the subject matter of this Agreement which is not contained herein shall be valid or binding.
  
 b. This Agreement shall be binding on the heirs, executors, administrators, legal representatives, successors, and assigns of the respective parties.
  
 c. The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties hereunder, shall be governed by the laws of the State of Nevada. This Agreement is made, and is performable, in Clark County, Nevada.
  
 d. This Agreement may only be amended by the mutual agreement of the parties herein in a properly executed written instrument specifically referencing this Agreement.
  
 e. The headings used in this Agreement are used for administrative purposes only and do not constitute substantive matter to be considered in construing the terms of this Agreement.
  
 f. Wherever the context shall so require, all words herein in the male gender shall be deemed to include the female or neuter gender, all singular words shall include the plural, and all plural words shall include the singular.
  
 g. Except as specifically provided otherwise herein, any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served on, or given to any party to this Agreement by any other party to this Agreement shall be in writing and shall be deemed properly delivered, given, or served when personally delivered to the party to whom it is directed, or in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, certified mail, return receipt requested, at the hereafter indicated addresses for notice. Any party may change his, her, or its address for the purposes of this Paragraph by giving written notice of the change to all other parties in the manner provided in this Paragraph. The parties’ addresses for notice hereunder shall be as set forth on the first page of this Agreement.
  
 h. Any signatory to this Agreement who is the prevailing party in any legal proceeding against any other signatory under or with relation to this Agreement or the transaction(s) contemplated herein shall be additionally entitled to recover Court costs and reasonable attorneys’ fees from the non-prevailing party.
  
 i. This Agreement may be executed in multiple counterparts, each of which shall be an original, but all of which, when taken together, shall constitute but one Agreement.
  
 [Signature page follows]
  
  	 
	4
	 
 
	 

  
 IN WITNESS WHEREOF, the Parties have respectively signed and sealed these presents the day and year first above written.
  
  	 PICKSY, LLC
	 	MEDIFARM LLC	 
	  
	  
	  
	  
	  
	  

	 By:
	/s/ Stacie Jackson	 	By:	/s/ Derek Peterson	 
	  
	  
	  
	  
	  
	  

	 Name:
	Stacie Jackson	 	Name:	Derek Peterson	 
	  
	  
	  
	  
	  
	  

	 Title:
	Manager	 	Title:	Manager	 

  
  
  	 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}]]