Exhibit 10.10
SUBORDINATION AND INTERCREDITOR AGREEMENT
This SUBORDINATION AND INTERCREDITOR AGREEMENT, dated as of November 3, 2025 (this “Agreement”), is entered into by and among ENTREPRENEUR GROWTH CAPITAL LLC, a Delaware limited liability company (“EGC” or “Working Capital Lender”), JORDAN GEOTAS, acting on behalf of himself, and on behalf of the Noteholders (as defined below) (in such capacity the “Noteholder Representative”), SHENZHEN SMOORE TECHNOLOGY LIMITED, a company organized and existing under the laws of Peoples’ Republic of China and any of its affiliates joined hereto (collectively, “Smoore” together with EGC and the Noteholder Representative, each individually an “Existing Creditor”, and collectively, the “Existing Creditors”), and JORDAN GEOTAS, acting on behalf of himself and on behalf of the Bridge Noteholders (as defined below) (in such capacity, the “Bridge Noteholder Representative”) and JUPITER RESEARCH, LLC, an Arizona limited liability company (“Jupiter”). Each of the Existing Creditors and TILT may be referred to individually herein as a “Party” and collectively as the “Parties”.
WHEREAS, TILT Holdings Inc., a corporation formed under the laws of British Columbia (“TILT”), Jimmy Jang, L.P., a Delaware limited partnership (“JJLP”), Baker Technologies, Inc., a Delaware corporation (“Baker”), Commonwealth Alternative Care, Inc., a Massachusetts corporation (“CAC”), Jimmy Jang Holdings Inc., a British Columbia corporation (“JJH”), JJ Blocker Co., a Delaware corporation (“JJB”), Sea Hunter Therapeutics, LLC, a Delaware limited liability company (“SEA”), Standard Farms Ohio LLC, an Ohio limited liability company (“SF Ohio”), Standard Farms LLC, a Pennsylvania limited liability company (“SF Penn”), SH Finance Company, LLC, a Delaware limited liability company (“SF Finance”), and Jupiter (collectively with TILT, JJLP, Baker, CAC, JJH, JJB, SEA, SF Ohio, SF Penn, SF Finance, each individually an “Obligor”, and collectively, the “Obligors”) and certain purchasers are contemporaneously herewith entering into that Secured Note Purchase Agreement, dated as of even date herewith (as amended, restated, modified, renewed, extended, or replaced from time to time, the “Bridge Note Agreement” and the purchasers, the “Bridge Noteholders”);
WHEREAS, Smoore has made or may make loans from time to time to Jupiter and the payment of a portion of such loans are subject to that certain Debt and Security Agreement dated January 28, 2024 and guaranteed by TILT and to secure such guaranty, TILT granted Smoore a lien and security interest in its assets;
WHEREAS, Working Capital Lender has made or may make loans from time to time to Jupiter and the payment of a portion of such loans are guaranteed by Tilt and to secure such guaranty, Tilt granted EGC a lien and security interest in its assets;
WHEREAS, the Noteholders have made and may make loans from time to time to Tilt which loans are secured by liens and security interest in the assets of Obligors; and
WHEREAS, each Existing Creditor and the Bridge Noteholder Representative have agreed to enter into this Agreement to set forth their relative priorities of the liens and security interests granted by the Obligors to the Parties.
NOW, THEREFORE, in consideration of the mutual promises, covenants, conditions, representations, and warranties set forth herein and for other good and valuable consideration, the parties hereto agree as follows:
37884\16604535.1
“Account” or “Accounts” shall have the same meaning as contained in the UCC and shall also include contract rights and general intangibles related to Accounts, payment intangibles, instruments, and to all proceeds thereof including, but not limited to, credit card receivables, amounts payable from a credit card processor and the proceeds of any insurance thereon.
“Affiliate” shall mean, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, the specified Person. For the purposes of this definition, “Control” shall mean the possession, directly or indirectly, of more than fifty percent (50%) of the voting equity interests and the right to exercise same. The terms “Controlling” and “Controlled” have meanings correlative thereto.
“Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded, or replaced from time to time.
“Bridge Note Collateral” means all Collateral other than Working Capital Collateral.
“Bridge Note Default Notice” means a notice of default or event of default under the Bridge Note Documents, such notice to be sent in accordance with Section 16 hereof to each of the Parties hereto.
“Bridge Note Documents” mean the Bridge Note Agreement and all other documents and instruments evidencing, securing or pertaining to any portion of the Bridge Note Indebtedness, as amended, restated, supplemented, or otherwise modified from time to time.
“Bridge Note Indebtedness” means the Obligations (as defined in the Bridge Note Agreement) and other obligations and liabilities now or hereafter owed to any of the Bridge Noteholders pursuant to the Bridge Note Documents, whether before or after the commencement of a Proceeding and without regard to whether or not an allowed claim, and all obligations and liabilities incurred with respect to Permitted Refinancings, together with any amendments, restatements, modifications, renewals, increases or extensions of any thereof permitted hereunder.
“Business Day” means any day that is not a Saturday, Sunday, or other day on which commercial banks in Arizona or New York are authorized or required by law to remain closed.
“Collateral” means any and all property and interests in property that secures all or a portion of the Indebtedness.
“Collections Account” means a “deposit account” (as such term is defined in the UCC) in the name of Jupiter established pursuant to the Working Capital Loan Agreement under the “control” (as such term is defined in the UCC) of Working Capital Lender.
“Creditor” means any of the Bridge Noteholders and the Existing Creditors.
“Documents” means, collectively, the Bridge Note Documents, the Working Capital Loan Documents, the Noteholder Documents and the Smoore Documents.
“Enforcement Action” means (a) to take from or for the account of any Obligor by setoff or in any other manner, the whole or any part of any moneys which may now or hereafter be owing by any Obligor with respect to Indebtedness, (b) to sue any Obligor for payment of, or to initiate or participate with
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others in any suit, action or proceeding against any Obligor to (i) enforce payment or performance of or to collect the whole or any part of any of the Indebtedness or (ii) commence judicial enforcement against any Obligor of any of the rights and remedies under the applicable Documents or applicable law with respect to the applicable Indebtedness, including, without limitation, the commencement of (or joining in) a Proceeding, (c) to exercise any put option to any Obligor or to cause any Obligor to honor any redemption or mandatory prepayment obligation under any Document, (d) to notify account debtors or directly collect Accounts in respect of any of the Indebtedness, (e) to take any action under the provisions of any state or federal law, including, without limitation, the UCC, or under any contract or agreement, to enforce, foreclose upon, take possession of or sell any Collateral, or (f) to exercise in any other manner any remedies (including enforcing any security interest) against any Obligor with respect to any of the Indebtedness set forth in any applicable Document or that otherwise might be available at law, in equity, pursuant to judicial proceeding or otherwise in respect of the applicable Indebtedness; provided, however, that the term Enforcement Action shall not include (w) any suit or action initiated or maintained by a Creditor within thirty (30) days of the expiration of, and solely to the extent such suit or action is necessary to prevent the expiration of, any applicable statute of limitations or similar permanent restriction on claims (provided that no payment on the applicable Indebtedness or money damages are received or retained in connection therewith), (x) upon the occurrence and during the continuation of an event of default with respect to any Indebtedness, accruing any increased interest with respect to such Indebtedness as a result of such event of default, or (y) the filing of any notice in a Proceeding not in violation of this Agreement.
“Existing Intercreditor Agreement” means that certain Subordination and Intercreditor Agreement, dated as of January 28, 2024, by and among TILT, Jupiter, EGC, the Noteholder Representative and Smoore, as the same may be amended, restated, amended and restated, or otherwise modified from time to time and that certain Amended and Restated Subordination and Intercreditor Agreement, dated as of March 13, 2023, by and among TILT, Jupiter, EGC and the Noteholder Representative, as the same may be amended, restated and otherwise modified from time to time. .
“Indebtedness” means, collectively, the Bridge Note Indebtedness, the Working Capital Indebtedness, the Note Indebtedness and the Smoore Indebtedness.
“Inventory” shall have the meaning given to such term in the UCC and shall also include all of each Person’s now owned and hereafter acquired goods, merchandise or other personal property, wherever located, to be furnished under any contract of service or held for sale or lease, all raw materials, work in process, finished goods and materials and supplies of any kind, nature or description which are or might be used or consumed in such Person’s business or used in connection with the manufacture, packing, shipping, advertising, selling or finishing of such goods, merchandise or other personal property, and all documents of title or other documents representing any of the above, and such Person’s books relating to any of the foregoing.
“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, option, levy, execution, attachment, garnishment, hypothecation, assignment for security, deposit arrangement, encumbrance, charge, security interest, or other preferential arrangement in the nature of a security interest of any kind or nature whatsoever, on or of such asset, and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease, or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset.
“Note Agreement” means the Secured Note Purchase Agreement dated as of November 1, 2019, among Jupiter, affiliates of Jupiter, Noteholder Representative and the Noteholders, as amended, restated, supplemented, or otherwise modified from time to time,
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“Noteholders” means, collectively, the Persons identified as the Purchasers under the Secured Note Purchase Agreement (each individually, a “Noteholder”).
“Noteholder Documents” means the Note Agreement and all other documents and instruments evidencing, securing or pertaining to any portion of the Note Indebtedness, as amended, restated, supplemented, or otherwise modified from time to time.
“Noteholder Indebtedness” means the Obligations (as defined in the Note Agreement) and other obligations and liabilities now or hereafter owed to any of the Noteholders pursuant to the Note Documents, whether before or after the commencement of a Proceeding and without regard to whether or not an allowed claim, and all obligations and liabilities incurred with respect to Permitted Refinancings, together with any amendments, restatements, modifications, renewals, increases or extensions of any thereof permitted hereunder.
“Paid in Full” or “Payment in Full” means as respects the applicable Indebtedness, the payment in full in cash of such Indebtedness other than inchoate obligations for which no claim has been made and the termination of all obligations on the part of any Creditor to advance funds with respect thereto.
“Permitted Refinancing” means any refinancing of the applicable Indebtedness pursuant to Permitted Refinancing Loan Documents.
“Permitted Refinancing Loan Documents” means, with respect to any Indebtedness, any financing documentation which replaces the documentation relating to such Indebtedness, and pursuant to which such Indebtedness is refinanced (in each case in accordance with then applicable Documents or Permitted Refinancing Loan Documents, as the case may be), as such financing documentation may be amended, restated, supplemented, or otherwise modified from time to time.
“Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association or joint venture.
“Proceeding” means any voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation, dissolution, reorganization, assignment for the benefit of creditors or other proceeding for the liquidation, dissolution or other winding up of TILT, Jimmy Jang, Jupiter, or any of their respective subsidiaries or any of their respective properties.
“Smoore Documents” means the Smoore Guaranty, Debt and Security Agreement and all other documents and instruments evidencing, securing or pertaining to any portion of the Smoore Indebtedness, as amended, restated, supplemented, or otherwise modified from time to time as permitted hereunder.
“Smoore Guaranty” means that certain Guaranty dated as of January 28, 2024, by TILT, JJLP, Baker, CAC, JJH, JJB, SFNY, SEA, Standard Farms, SF Ohio, SF Penn, and SF Finance, in favor of Smoore.
“Smoore Indebtedness” means the Secured Obligations, as defined under the Debt and Security Agreement.
“Substantial Assets” means all assets that collectively comprise all or substantially all of the assets, property or undertaking of any Obligor that are sold pursuant to a Substantial Asset Sale Agreement.
“Substantial Asset Sale Agreement” means any agreement pursuant to which an Obligor sells, or agrees to sell, all or substantially all of its assets, property or undertaking to a purchaser for value.
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“Substantial Asset Proceeds” means all money, deposits, accounts, credits, assets, property, value, or any other form of consideration whatsoever that comprise any portion of the purchase price for Substantial Assets paid or payable to an Obligor pursuant to any Substantial Asset Sale Agreements.
“Substantial Asset Proceeds Subordinate Creditors” has the meaning set out in Section 6(a), any “Substantial Asset Proceeds Subordinate Creditor” means any one of them.
“Supporting Obligation” shall have the meaning given to such term in the UCC.
“UCC” means Article 1 or Article 9 of the Uniform Commercial Code in effect from time to time in the State of California.
“Working Capital Collateral” means the following property of Jupiter, in each case, whether now owned or existing or hereafter created, acquired or arising and wherever located: (a) Jupiter’s Accounts; (b) Jupiter’s Inventory, merchandise, materials, whether raw, work in progress or finished goods, packaging and shipping materials and all other tangible property held for sale or lease; (c) Proceeds of any of the foregoing, including Cash Proceeds and other non-cash Proceeds, and proceeds of any insurance policies covering any of the of the foregoing; (d) the Collections Account, (e) Jupiter’s records, to the extent related to any of the foregoing, including all books, records and other property at any time evidencing or relating to any of the foregoing, and all electronic means of storing such records; (f) to the extent not otherwise included above, all collateral support and Supporting Obligations relating to any of the foregoing; and (g) to the extent not otherwise included above, all products and accessions of or in respect of any of the foregoing.
“Working Capital Default Notice” means a notice of default or event of default under the Working Capital Loan Documents, such notice to be sent in accordance with Section 21 hereof to each of the parties hereto.
“Working Capital Indebtedness” means the Obligations (as defined in the Working Capital Loan Agreement) in an aggregate principal amount not to exceed $4,000,000 and all other amounts and other obligations and liabilities now or hereafter owed by Jupiter to Working Capital Lender pursuant to the Working Capital Loan Documents, whether before or after the commencement of a Proceeding and without regard to whether or not an allowed claim, and all obligations and liabilities incurred with respect to Permitted Refinancings, together with any amendments, restatements, modifications, renewals, increases or extensions of any thereof permitted hereunder.
“Working Capital Loan Agreement” means that Loan and Security Agreement dated July 21, 2021, among Jupiter, Tilt and Working Capital Lender (as amended, restated, supplemented, or otherwise modified from time to time, including, without limitation, by that Joinder and First Amendment to Loan and Security Agreement dated March 13, 2023).
“Working Capital Loan Documents” means the Working Capital Loan Agreement and all other documents and instruments evidencing, securing or pertaining to any portion of the Working Capital Indebtedness, as amended, restated, supplemented, or otherwise modified from time to time as permitted hereunder. Notwithstanding the foregoing, the Working Capital Loan Documents shall not include the TILT Security Agreement.
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| (i) | with respect to any Substantial Asset Proceeds that constitute the proceeds of Working Capital Collateral: |
| (1) | first, towards repayment of the Working Capital Indebtedness, until all such obligations are paid in full; and |
| (2) | second, in respect of any residual amount of such Substantial Asset Proceeds remaining after all Working Capital Indebtedness are paid in full, towards repayment of the Noteholder Indebtedness, until all such obligations are paid in full; |
| (3) | third, in respect of any residual amount of such Substantial Asset Proceeds remaining after all Smoore Indebtedness are paid in full, towards repayment of the Smoore Indebtedness, until all such obligations are paid in full; |
| (4) | fourth, in respect of any residual amount of Substantial Asset Proceeds after the payments set out in Section 6(a)(i)(1) through Section 6(a)(i)(3) above are complete, to TILT or as TILT may subsequently direct. |
| (ii) | with respect to any Substantial Asset Proceeds that are not the proceeds of Working Capital Collateral: |
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IN WITNESS WHEREOF, each of the Parties hereto has duly executed and delivered this Agreement, or caused this Agreement to be duly executed and delivered by its officer or officers thereunto duly authorized, as of the date first above written:
EXISTING CREDITORS:
ENTREPRENEUR GROWTH CAPITAL LLC,
a Delaware limited liability company
By: /s/ Dean Landis
Name: Dean Landis
Title: President
Address:
Entrepreneur Growth Capital LLC
505 Park Avenue
New York, New York 10022
Email: [***]
/s/ Jordan Geotas
JORDAN GEOTAS, as an individual
Address:
Jordan Geotas
[***]
/s/ Jordan Geotas
JORDAN GEOTAS, as Noteholder Representative
Address:
Jordan Geotas
[***]
Signature Page - Subordination and Intercreditor Agreement
SHENZHEN SMOORE TECHNOLOGY LIMITED,
a company organized and existing under the laws of Peoples’ Republic of China
By: /s/ ____________________
Name:
Title:
Address:
Email:
Cheney Xu (徐驰)
Head of Legal and IP
[***]
Eula Liu (刘淑杰)
Legal Director
[***]
Signature Page - Subordination and Intercreditor Agreement
OBLIGORS:
TILT HOLDINGS INC., a corporation formed under the laws of British Columbia
By: /s/ Tim Conder
Name: Tim Conder
Title: Chief Executive Officer
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
Jimmy Jang, L.P., a Delaware limited partnership
By: Jimmy Jang Holdings Inc., its general partner
Email:
By: /s/ Tim Conder
Name: Tim Conder
Title: President
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
BAKER TECHNOLOGIES, INC., a Delaware corporation
By: /s/ Tim Conder
Name: Tim Conder
Title: President
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
COMMONWEALTH ALTERNATIVE CARE, INC., a Massachusetts corporation
By: /s/ Tim Conder
Name: Tim Conder
Title: President
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
Signature Page - Subordination and Intercreditor Agreement
JJ BLOCKER CO., a Delaware corporation
By: /s/ Tim Conder
Name: Tim Conder
Title: President
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
SEA HUNTER THERAPEUTICS, LLC, a Delaware limited liability company
By: /s/ Tim Conder
Name: Tim Conder
Title: Chief Executive Officer
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
STANDARD FARMS OHIO LLC, an Ohio limited liability company
By: /s/ Tim Conder
Name: Tim Conder
Title: Chief Executive Officer
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
STANDARD FARMS LLC, a Pennsylvania limited liability company
By: /s/ Tim Conder
Name: Tim Conder
Title: Chief Executive Officer
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
Signature Page - Subordination and Intercreditor Agreement
SH FINANCE COMPANY, LLC, a Delaware limited liability company
By: /s/ Tim Conder
Name: Tim Conder
Title: President
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
JUPITER RESEARCH, LLC, an Arizona limited liability company
By: /s/ Tim Conder
Name: Tim Conder
Title: Chief Executive Officer
Address:
7655 E. Redfield Rd., Suite 110
Scottsdale, AZ 85260
Signature Page - Subordination and Intercreditor Agreement
BRIDGE NOTEHOLDER REPRESENTATIVE:
/s/ Jordan Geotas
JORDAN GEOTAS, as Bridge Noteholder Representative
Address:
Jordan Geotas
[***]
Signature Page - Subordination and Intercreditor Agreement