Document:

Exhibit 10.19

 

Execution
Version

 

GUARANTY

 

THIS GUARANTY, dated as
of the 3rd day of May, 2019 (this “Guaranty”), is made by Northern Swan Holdings, Inc., a British Columbia corporation
(“Initial Guarantor”) and an indirect parent of Herbal Brands, Inc., a Delaware corporation (the “Borrower”),
and each subsidiary of Borrower (“Subsidiary Guarantor”) that, after the date hereof, executes an instrument
of accession hereto substantially in the form of Exhibit A (a “Guarantor Accession”; such Subsidiary
Guarantors and Initial Guarantor, collectively the “Guarantors”), in favor of Rock Cliff Capital LLC, a limited
liability company formed under the laws of Delaware (“Lender”). Capitalized terms used herein without definition shall
have the meanings given to them in the Loan Agreement referred to below.

 

RECITALS

 

A. Borrower and Lender, are parties
to a Loan and Security Agreement, dated as of May 3, 2019 (as amended, modified, restated or supplemented from time to time, the
“Loan Agreement”), pursuant to which Lender will extend term loans to Borrower in an aggregate principal amount
of $8,500,000 (the “Loans”), upon the terms and subject to the conditions set forth therein.

 

B. It is a condition to the extension
of the Loans by Lender under the Loan Agreement that each Guarantor shall have agreed, by executing and delivering this Guaranty,
to guarantee to Lender the payment in full of the Guaranteed Obligations (as hereinafter defined). Lender is relying on this Guaranty
in its decision to extend Loans to Borrower under the Loan Agreement, and would not extend Loans thereunder without this Guaranty.

 

C. The Guarantors will obtain
benefits as a result of the incurrence of Loans by Borrower under the Loan Agreement, which benefits are hereby acknowledged, and,
accordingly, desire to execute and deliver this Guaranty.

 

STATEMENT OF AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, to induce
Lender to enter into the Loan Agreement and to induce Lender to extend Loans to Borrower thereunder, each Guarantor hereby agrees
as follows:

 

1. Guaranty.

 

(a) Each Guarantor hereby irrevocably, absolutely
and unconditionally, and jointly and severally:

 

(i) guarantees to Lender the
full and prompt payment, at any time and from time to time as and when due (whether at the stated maturity, by acceleration
or otherwise), of all of the Obligations of Borrower under the Loan Agreement and the other Loan Documents, including all
principal of and interest on the Loans, all fees, expenses, indemnities and other amounts payable by Borrower under the Loan
Agreement or any other Loan Document (including interest accruing after the filing of a petition or commencement of a case by
or with respect to Borrower seeking relief under any Insolvency Laws (as hereinafter defined), whether or not the claim for
such interest is allowed in such proceeding), and all Obligations that, but for the operation of the automatic stay under
Section 362(a) of the Bankruptcy Code, would become due, whether now existing or hereafter created or arising and whether
direct or indirect, absolute or contingent, due or to become due (all liabilities and obligations described in this Section
1(a)(i), collectively, the “Guaranteed Obligations”); and

 

     

     

    

 

(ii) agrees to pay on not later than fifteen
(15) days after Guarantor’s receipt of written or electronic notice of such payment by Lender all reasonable and
documented out-of-pocket expenses of Lender hereunder pursuant to the terms of Section 7.2 of the Loan Agreement, including
reasonable fees and disbursements of counsel in connection with (A) any amendments, supplements, consents or waivers hereto
and (B) the administration or enforcement of this Guaranty.

 

(b) Notwithstanding the provisions of Section
1(a) and notwithstanding any other provisions contained herein or in any other Loan Document:

 

(i) no provision of this
Guaranty shall require or permit the collection from any Guarantor of interest in excess of the maximum rate or amount that such
Guarantor may be required or permitted to pay pursuant to applicable law; and

 

(ii) the liability of each Guarantor
under this Guaranty as of any date shall be limited to a maximum aggregate amount (the “Maximum Guaranteed Amount”)
equal to the greatest amount that would not render such Guarantor’s obligations under this Guaranty subject to avoidance,
discharge or reduction as of such date as a fraudulent transfer or conveyance under applicable federal, provincial and state laws
pertaining to bankruptcy, reorganization, arrangement, moratorium, readjustment of debts, dissolution, liquidation or other debtor
relief, specifically including the Bankruptcy Code or any similar insolvency legislation in Canada, and any fraudulent transfer
and fraudulent conveyance laws (collectively, “Insolvency Laws”), in each instance after giving effect to all
other liabilities of such Guarantor, contingent or otherwise, that are relevant under applicable Insolvency Laws.

 

(c) The Guarantors desire to allocate among
themselves, in a fair and equitable manner, their obligations arising under this Guaranty. Accordingly, in the event any
payment or distribution is made hereunder on any date by a Guarantor (a “Funding Guarantor”) that exceeds
its Fair Share (as hereinafter defined) as of such date, that Funding Guarantor shall be entitled to a contribution from each
of the other Guarantors in the amount of such other Guarantor’s Fair Share Shortfall (as hereinafter defined) as of
such date, with the result that all such contributions will cause each Guarantor’s Aggregate Payments (as hereinafter
defined) to equal its Fair Share as of such date.

 

“Fair Share”
means, with respect to a Guarantor as of any date of determination, an amount equal to (i) the ratio of (x) the Adjusted Maximum
Guaranteed Amount (as hereinafter defined) with respect to such Guarantor to (y) the aggregate of the Adjusted Maximum Guaranteed
Amounts with respect to all Guarantors, multiplied by (ii) the aggregate amount paid or distributed on or before such date
by all Funding Guarantors hereunder in respect of the obligations guarantied.

 

     

     

    

 

“Fair Share Shortfall”
means, with respect to a Guarantor as of any date of determination, the excess, if any, of the Fair Share of such Guarantor over
the Aggregate Payments of such Guarantor.

 

“Adjusted Maximum Guaranteed
Amount” means, with respect to a Guarantor as of any date of determination, the Maximum Guaranteed Amount of such Guarantor
determined without considering any assets or liabilities arising by virtue of any rights to subrogation, reimbursement or indemnity
or any rights to or obligations of contribution hereunder as assets or liabilities of such Guarantor.

 

“Aggregate Payments”
means, with respect to a Guarantor as of any date of determination, the aggregate amount of all payments and distributions made
on or before such date by such Guarantor in respect of this Guaranty (including in respect of this Section 1(c)).

 

The amounts payable as contributions hereunder
shall be determined as of the date on which the related payment or distribution is made by the applicable Funding Guarantor. Each
Funding Guarantor’s right of contribution under this Section 1(c) shall be subject to the provisions of Section
4. The allocation among Guarantors of their obligations as set forth in this Section 1(c) shall not be construed in
any way to limit the liability of any Guarantor hereunder to Lender.

 

(d) The guaranty of each Guarantor set forth in
this Section 1 is a guaranty of payment as a primary obligor, and not a guaranty of collection. Each Guarantor hereby
acknowledges and agrees that the Guaranteed Obligations, at any time and from time to time, may exceed the Maximum Guaranteed
Amount of such Guarantor and may exceed the aggregate of the Maximum Guaranteed Amounts of all Guarantors, in each case
without discharging, limiting or otherwise affecting the obligations of any Guarantor hereunder or the rights, powers and
remedies of Lender hereunder or under any other Loan Document.

 

2. Guaranty Absolute. Each Guarantor
agrees that its obligations hereunder and under the other Loan Documents to which it is a party are irrevocable, absolute and
unconditional, are independent of the Guaranteed Obligations and any Collateral (as defined in the Loan Agreement) or other
security therefor or other guaranty or liability in respect thereof, whether given by such Guarantor or any other Person, and
shall not be discharged, limited or otherwise affected by reason of any of the following, whether or not such Guarantor has
notice or knowledge thereof:

 

(i) any change in the time,
manner or place of payment of, or in any other term of, any Guaranteed Obligations or any guaranty or other liability in respect
thereof, or any amendment, modification or supplement to, restatement of, or consent to any rescission or waiver of or departure
from, any provisions of the Loan Agreement, any other Loan Document or any agreement or instrument delivered pursuant to any of
the foregoing;

 

(ii) the invalidity or unenforceability
of any Guaranteed Obligations, any guaranty or other liability in respect thereof or any provisions of the Loan Agreement, any
other Loan Document or any agreement or instrument delivered pursuant to any of the foregoing;

 

     

     

    

 

(iii)
the addition or release of Guarantors hereunder or the taking, acceptance or release of other guarantees of any Guaranteed Obligations
or additional Collateral or other security for any Guaranteed Obligations or for any guaranty or other liability in respect thereof;

 

(iv) any discharge, modification,
settlement, compromise or other action in respect of any Guaranteed Obligations or any guaranty or other liability in respect thereof,
including any acceptance or refusal of any offer or performance with respect to the same or the subordination of the same to the
payment of any other obligations;

 

(v) any agreement not to
pursue or enforce or any failure to pursue or enforce (whether voluntarily or involuntarily, as a result of operation of law, court
order or otherwise) any right or remedy in respect of any Guaranteed Obligations, any guaranty or other liability in respect thereof
or any Collateral or other security for any of the foregoing; any sale, exchange, release, substitution, compromise or other action
in respect of any such Collateral or other security; or any failure to create, protect, perfect, secure, insure, continue or maintain
any liens in any such Collateral or other security;

 

(vi) the exercise of any
right or remedy available under the Loan Documents, at law, in equity or otherwise in respect of any Collateral or other security
for any Guaranteed Obligations or for any guaranty or other liability in respect thereof, in any order and by any manner thereby
permitted, including foreclosure on any such Collateral or other security by any manner of sale thereby permitted, whether or not
every aspect of such sale is commercially reasonable;

 

(vii) any bankruptcy, reorganization,
arrangement, liquidation, insolvency, dissolution, termination, reorganization or like change in the corporate structure or existence
of Borrower or any other Person directly or indirectly liable for any Guaranteed Obligations;

 

(viii) any manner of application
of any payments by or amounts received or collected from any Person, by whomsoever paid and howsoever realized, whether in reduction
of any Guaranteed Obligations or any other obligations of Borrower or any other Person directly or indirectly liable for any Guaranteed
Obligations, regardless of what Guaranteed Obligations may remain unpaid after any such application; or

 

(ix) any other circumstance that
might otherwise constitute a legal or equitable discharge of, or a defense, setoff or counterclaim available to, Borrower, any
Guarantor or a surety or guarantor generally, other than the occurrence of the payment in full in cash of the Guaranteed Obligations
(other than contingent and indemnification obligations not then due and payable) (the “Termination Requirement”).

 

3. Certain Waivers. Each Guarantor hereby
knowingly, voluntarily and expressly waives:

 

(i) presentment, demand for
payment, demand for performance, protest and notice of any other kind, including notice of nonpayment or other nonperformance
(including notice of default under any Loan Document with respect to any Guaranteed Obligations),
protest, dishonor, acceptance hereof, extension of additional credit to Borrower and of any of the matters referred to in Section
2 and of any rights to consent thereto;

 

     

     

    

 

(ii) any right to require
Lender, as a condition of payment or performance by such Guarantor hereunder, to proceed against, or to exhaust or have resort
to any Collateral or other security from or any deposit balance or other credit in favor of, Borrower, any other Guarantor or any
other Person directly or indirectly liable for any Guaranteed Obligations, or to pursue any other remedy or enforce any other right;
and any other defense based on an election of remedies with respect to any Collateral or other security for any Guaranteed Obligations
or for any guaranty or other liability in respect thereof, notwithstanding that any such election (including any failure to pursue
or enforce any rights or remedies) may impair or extinguish any right of indemnification, contribution, reimbursement or subrogation
or other right or remedy of any Guarantor against Borrower, any other Guarantor or any other Person directly or indirectly liable
for any Guaranteed Obligations or any such Collateral or other security;

 

(iii) any right or defense based
on or arising by reason of any right or defense of Borrower or any other Person, including any defense based on or arising from
a lack of authority or other disability of Borrower or any other Person, the invalidity or unenforceability of any Guaranteed Obligations,
any Collateral or other security therefor or any Loan Document or other agreement or instrument delivered pursuant thereto, or
the cessation of the liability of Borrower for any reason other than the satisfaction of the Termination Requirement;

 

(iv) any defense based on
Lender’s acts or omissions in the administration of the Guaranteed Obligations, any guaranty or other liability in respect
thereof or any Collateral or other security for any of the foregoing, and promptness, diligence or any requirement that Lender
create, protect, perfect, secure, insure, continue or maintain any Liens in any such Collateral or other security;

 

(v) any right to assert against
Lender any defense, counterclaim, claim, right of recoupment or setoff that it may at any time have against Lender (including failure
of consideration, fraud, fraudulent inducement, statute of limitations, payment, accord and satisfaction and usury), other than
compulsory counterclaims and other than the satisfaction of the Termination Requirement; and

 

(vi) any defense based on
or afforded by any applicable law that limits the liability of or exonerates guarantors or sureties or that may in any other way
conflict with the terms of this Guaranty.

 

     

     

    

 

4. No Subrogation;
Subordination. Each Guarantor hereby agrees that it will not exercise or seek to exercise, any claim or right that it may
have against Borrower or any other Guarantor at any time as a result of any payment made under or in connection with this
Guaranty or the performance or enforcement hereof, including any right of subrogation to the rights of any of Lender against
Borrower or any other Guarantor, any right of indemnity, contribution or reimbursement against Borrower or any other
Guarantor (including rights of contribution as set forth in Section 1(c)), any right to enforce any remedies of Lender
against Borrower or any other Guarantor, or any benefit of, or any right to participate in, any Collateral or other security
held by Lender to secure payment of the Guaranteed Obligations, in each case whether such claims or rights arise by contract,
statute (including the Bankruptcy Code), common law or otherwise until the satisfaction of the Termination Requirement. Each
Guarantor further agrees that all indebtedness and other obligations, whether now or hereafter existing, of Borrower, any
other subsidiary of Borrower or any other Guarantor to such Guarantor, including any such indebtedness in any proceeding
under the Bankruptcy Code and any intercompany debt or receivables, together with any interest thereon, shall be, and hereby
are, subordinated and made junior in right of payment to the Guaranteed Obligations. Each Guarantor further agrees that if
any amount shall be paid to or any distribution received by any Guarantor (i) on account of any such indebtedness at any time
after the occurrence and during the continuance of an Event of Default, or (ii) on account of any rights of contribution at
any time prior to the satisfaction of the Termination Requirements, such amount or distribution shall be deemed to have been
received and to be held in trust for the benefit of Lender, and shall forthwith be delivered to Lender in the form received
(with any necessary endorsements in the case of written instruments), to be applied against the Guaranteed Obligations,
whether or not matured, in accordance with the terms of the applicable Loan Documents and without in any way discharging,
limiting or otherwise affecting the liability of such Guarantor under any other provision of this Guaranty. Additionally, in
the event Borrower or any other Guarantor becomes a “debtor” within the meaning of the Bankruptcy Code, Lender
shall be entitled, at its option, as attorney-in-fact for each Guarantor, and is hereby authorized and appointed by each
Guarantor, to file proofs of claim on behalf of each relevant Guarantor to the extent such Guarantor has not done so more
than five (5) days prior to the deadline for such filing, and to demand, sue for, collect and receive every payment and
distribution on any indebtedness of Borrower to any Guarantor in any such proceeding, each Guarantor hereby assigning to
Lender its rights to receive payments and distributions in respect thereof.

 

5. Representations and Warranties.

 

(a) Each Subsidiary Guarantor
hereby represents and warrants to Lender that, as to itself, all of the representations and warranties relating to it contained
in the Loan Agreement are true and correct.

 

(b) Initial Guarantor hereby represents
and warrants to Lender that it has the requisite power and authority to enter into this Guaranty and to consummate the transactions
contemplated hereby. The execution, delivery and performance of this Guaranty by Initial Guarantor have been duly authorized by
all necessary corporate action on the part of Initial Guarantor. This Guaranty has been duly executed and delivered by Initial
Guarantor and constitutes the legal, valid and binding agreement of Initial Guarantor enforceable against Initial Guarantor in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium and other
laws of general application affecting enforcement of creditors’ rights generally and (ii) equitable principles of general
applicability relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

     

     

    

 

6. Financial Condition of Borrower.
Each Guarantor represents that it has knowledge of Borrower’s financial condition and affairs and that it has adequate means
to obtain from Borrower on an ongoing basis information relating thereto and to Borrower’s ability to pay and perform the
Guaranteed Obligations, and agrees to assume the responsibility for keeping, and to keep, so informed for so long as this Guaranty
is in effect with respect to such Guarantor. Each Guarantor agrees that Lender shall have no obligation to investigate the financial
condition or affairs of Borrower for the benefit of any Guarantor nor to advise any Guarantor of any fact respecting, or any change
in, the financial condition or affairs of Borrower that might become known to Lender at any time, whether or not such Lender knows
or believes or has reason to know or believe that any such fact or change is unknown to any Guarantor, or might (or does) materially
increase the risk of any Guarantor as guarantor, or might (or would) affect the willingness of any Guarantor to continue as a
guarantor of the Guaranteed Obligations.

 

7. Payments; Application; Setoff.

 

(a) Each Guarantor agrees that,
upon the failure of Borrower to pay any Guaranteed Obligations when and as the same shall become due (after giving effect to any
grace period or cure period applicable thereto) (whether at the stated maturity, by acceleration or otherwise), and without limitation
of any other right or remedy that Lender may have at law, in equity or otherwise against such Guarantor, such Guarantor will, subject
to the provisions of Section 1(b), forthwith pay or cause to be paid to Lender, an amount equal to the amount of the Guaranteed
Obligations then due and owing as aforesaid.

 

(b) All payments made by each
Guarantor hereunder will be made in U.S. dollars to Lender, without setoff, counterclaim or other defense and, in accordance with
the Loan Agreement, free and clear of and without deduction for any taxes, levies, imposts, duties, deductions, withholdings, assessments,
fees or other charges imposed by any Governmental Entity, including any interest, additions to tax or penalties applicable thereto,
each Guarantor hereby agreeing to comply with and be bound by the provisions of the Loan Agreement in respect of all payments made
by it hereunder.

 

(c) In the event that the proceeds of any
sale, disposition or realization of the Collateral or otherwise are insufficient to pay all amounts to which Lender is legally
entitled, the Guarantors shall be jointly and severally liable for the deficiency, together with interest thereon at the highest
rate specified in any applicable Loan Document for interest on overdue principal or such other rate as shall be fixed by applicable
law, together with the costs of collection and all other fees, costs and expenses payable hereunder.

 

(d) Upon and at any time after
the occurrence and during the continuance of any Event of Default, Lender and its affiliates are hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to set off and apply any obligations (in whatever currency)
at any time owing by Lender or any such affiliate to or for the credit or the account of any Guarantor against any and all of the
obligations of such Guarantor now or hereafter existing under this Guaranty or any other Loan Document to Lender, irrespective
of whether or not Lender shall have made any demand under this Guaranty or any other Loan Document and although such obligations
of such Guarantor may be contingent or unmatured . The rights of Lender and its affiliates under this Section 7(d) are in
addition to other rights and remedies (including other rights of setoff) that the Lender or its Affiliates may have. Lender agrees
to notify Borrower and Guarantors promptly after any such setoff and application; provided that the failure to give such
notice shall not affect the validity of such setoff and application.

 

8. No Waiver. The rights and remedies
of Lender expressly set forth in this Guaranty and the other Loan Documents are cumulative and in addition to, and not exclusive
of, all other rights and remedies available at law, in equity or otherwise. No failure or delay on the part of Lender in exercising
any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power
or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege or be construed
to be a waiver of any default or Event of Default. No course of dealing between any of the Guarantors and Lender or their agents
or employees shall be effective to amend, modify or discharge any provision of this Guaranty or any other Loan Document or to constitute
a waiver of any default or Event of Default. No notice to or demand upon any Guarantor in any case shall entitle such Guarantor
or any other Guarantor to any other or further notice or demand in similar or other circumstances or constitute a waiver of the
right of Lender to exercise any right or remedy or take any other or further action in any circumstances without notice or demand.

 

9. Enforcement. The obligations
of each Guarantor hereunder are independent of the Guaranteed Obligations, and a separate action or actions may be brought against
each Guarantor whether or not action is brought against Borrower or any other Guarantor and whether or not Borrower or any other
Guarantor is joined in any such action. Each Guarantor agrees that to the extent all or part of any payment of the Guaranteed Obligations
made by any Person is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by
or on behalf of Lender to a trustee, receiver or any other Person under any Insolvency Laws (the amount of any such payment, a
“Reclaimed Amount”), then, to the extent of such Reclaimed Amount, this Guaranty shall continue in full force
and effect or be revived and reinstated, as the case may be, as to the Guaranteed Obligations intended to be satisfied as if such
payment had not been received; and each Guarantor acknowledges that the term “Guaranteed Obligations” includes all
Reclaimed Amounts that may arise from time to time.

 

10. Amendments, Waivers,
etc. No amendment, modification, waiver, discharge or termination of, or consent to any departure by any Guarantor from, any
provision of this Guaranty, shall be effective unless in a writing signed by the Guarantors and Lender, and then the same shall
be effective only in the specific instance and for the specific purpose for which given.

 

11. Addition, Release of Guarantors.
Each Guarantor recognizes that the provisions of the Loan Agreement require certain Persons that become subsidiaries of Borrower
and that are not already parties hereto to become Guarantors hereunder by executing a Guarantor Accession, and agrees that its
obligations hereunder shall not be discharged, limited or otherwise affected by reason of the same, or by reason of Lender’s
actions in effecting the same or in releasing any Guarantor hereunder, in each case without the necessity of giving notice to or
obtaining the consent of any other Guarantor.

 

     

     

    

 

12. Continuing Guaranty; Term;
Successors and Assigns; Assignment; Survival. This Guaranty is a continuing guaranty and covers all of the Guaranteed
Obligations as the same may arise and be outstanding at any time and from time to time from and after the date hereof, and
shall (i) remain in full force and effect until satisfaction of the Termination Requirement (provided that the
provisions of Sections 1(a)(ii) and 4 shall survive any termination of this Guaranty), (ii) be binding upon and
enforceable against each Guarantor and its successors and assigns (provided, however, that no Guarantor may sell,
assign or transfer any of its rights, interests, duties or obligations hereunder without the prior written consent of Lender)
and (iii) inure to the benefit of and be enforceable by Lender and its successors and assigns. Without limiting the
generality of clause (iii) above, Lender may assign all or a portion of the Guaranteed Obligations held by it (including by
the sale of participations) in accordance with the terms of the Loan Agreement, whereupon each Person that becomes the holder
of any such Guaranteed Obligations shall (except as may be otherwise agreed between Lender and such Person) have and may
exercise all of the rights and benefits in respect thereof granted to Lender under this Guaranty or otherwise. Each Guarantor
hereby irrevocably waives notice of and consents in advance to the assignment as provided above from time to time by Lender
of all or any portion of the Guaranteed Obligations held by it and of the corresponding rights and interests of Lender
hereunder in connection therewith. All representations, warranties, covenants and agreements herein shall survive the
execution and delivery of this Guaranty and any Guarantor Accession.

 

13. Governing Law; Consent to Jurisdiction; Appointment
of Borrower as Representative, Process Agent, Attorney-in-Fact.

 

(a) THIS GUARANTY
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

 

(b)
Each Guarantor and Lender hereby submits to the exclusive jurisdiction of the State and Federal courts in New York County, City
of New York, New York; provided, however, that nothing in this Guaranty shall be deemed to operate to preclude Lender from bringing
suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Guaranteed
Obligations, or to enforce a judgment or other court order in favor of Lender.

 

(c) Each
Guarantor expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and
each Guarantor hereby waives (to the extent permitted by law) any objection that it may have based upon lack of personal jurisdiction,
improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate
by such court. Each Guarantor hereby waives (to the extent permitted by law) personal service of the summons, complaints, and
other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made
by registered or certified mail addressed to each Guarantor at the address set forth on its signature page hereto, or subsequently
provided by such Guarantor in accordance with, Section 15 of this Agreement and that service so made shall be deemed completed
upon Borrower’s actual receipt thereof.

 

(d)
The Initial Guarantor shall appoint Kyle Detwiler, 33 Irving Place, Suite 9022, New York, New York 10003, as its agent for service
of process in any suit, action or proceeding with respect to this Guaranty and the Guaranteed Obligations and for actions brought
under the U.S. federal or state laws brought in any U.S. federal or state court located in the Borough of Manhattan in the City
of New York. Service of any process on Kyle Detwiler in any such action (and written notice of such service to the Company) shall
be effective service of process against the Company for any suit, action or proceeding brought in any such court.

 

     

     

    

 

14. Waiver of Jury
Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH GUARANTOR AND LENDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS GUARANTY, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION,
INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR SUCH PARTIES TO ENTER
INTO THIS GUARANTY.

 

15. Notices.
Any notice required or permitted to be given under this Guaranty must be in writing and be personally delivered or sent by overnight
delivery, certified mail (postage prepaid and return receipt requested), facsimile or email to the addresses and numbers set forth
on the signature pages to this Agreement. Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent
(with transmission confirmation); and notices sent by email shall be deemed to have been given upon the sender’s receipt
of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that, if a facsimile or email is given after 5:00 PM (EST), it shall
be deemed to have been given at the opening of business on the next business day for the recipient. Each Guarantor and Lender
may change the address for service of notice upon it by a notice in writing to the other party.

 

16. Severability.
To the extent any provision of this Guaranty is prohibited by or invalid under the applicable law of any jurisdiction, such provision
shall be ineffective only to the extent of such prohibition or invalidity and only in such jurisdiction, without prohibiting or
invalidating such provision in any other jurisdiction or the remaining provisions of this Guaranty in any jurisdiction.

 

17. Construction.
The headings of the various sections and subsections of this Guaranty have been inserted for convenience only and shall not in
any way affect the meaning or construction of any of the provisions hereof. Unless the context otherwise requires, words in the
singular include the plural and words in the plural include the singular.

 

18. Counterparts;
Effectiveness. This Guaranty may be executed in any number of counterparts and by different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same
instrument. This Guaranty shall become effective, as to any Guarantor, upon the execution and delivery by such Guarantor of a
counterpart hereof or a Guarantor Accession. Delivery of an executed counterpart of a signature page of this Guaranty or a Guarantor
Accession by facsimile or in electronic format (e.g., “pdf,” “tif” or similar file formats) shall be effective
as delivery of a manually executed counterpart of this Guaranty or such Guarantor Accession.

 

[Signature pages follow]

 

     

     

    

 

IN WITNESS
WHEREOF, the parties have caused this Guaranty to be executed under seal by their duly authorized officers as of the date first
above written.

 

	 	NORTHERN SWAN HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Kyle Detwiler
	 	Name: 	Kyle Detwiler
	 	Title: 	Chief Executive Officer
	 	 
	 	Address: 
	 	489 Fifth Avenue, 27th Floor
	 	New York, NY 10017
	 	Facsimile: N/A
	 	Email (send to all): jeremy@northernswan.com,
	 	kyle@northernswan.com, and chris@northernswan.com

 

[Signatures Continue on Following Page]

 

[Signature Page to Guaranty]

 

     

     

    

 

	Accepted and agreed to:	 
	 	 
	ROCK CLIPF CAPITAL LLC as Lender	 
	 	 	 
	By:	/s/ Justin Korsant	 
	Name:	Justin Korsant	 
	Title:	Authorized Signatory	 

 

Signature
Page to Guaranty

 

     

     

    

 

EXHIBIT
A

 

GUARANTOR ACCESSION

 

THIS GUARANTOR ACCESSION (this “Accession”), dated
as of ______________, 20____, is executed and delivered by [NAME OF NEW GUARANTOR], a ________________ (the “New
Guarantor”), pursuant to the Guaranty referred to below.

 

Reference is made to the Loan and Security
Agreement, dated as of May 1, 2019, between Herbal Brands, Inc., a Delaware corporation (the “Borrower”) and
Rock Cliff Capital LLC, as lender (the “Lender”) (as amended, modified, restated or supplemented from time to
time, the “Loan Agreement”). In connection with and as a condition to the extension of the Loans under the Loan
Agreement, Borrower and Northern Swan Holdings, Inc., a British Columbia corporation (“Initial Guarantor”) and
indirect parent of Borrower, have executed and delivered a Guaranty, dated as of the date of the Loan Agreement (as amended, modified,
restated or supplemented from time to time, the “Guaranty”), pursuant to which Initial Guarantor has guaranteed
the payment in full of the obligations of Borrower under the Loan Agreement and the other Loan Documents (as defined in the Loan
Agreement). Capitalized terms used herein without definition shall have the meanings given to them in the Guaranty.

 

Borrower has agreed under the
Loan Agreement to cause certain of its future subsidiaries to become a party to the Guaranty as a guarantor thereunder. The New
Guarantor is a subsidiary of Borrower that Borrower is required to cause to become a party to the Guaranty. The New Guarantor will
obtain benefits as a result of the extension of Loans to Borrower under the Loan Agreement, which benefits are hereby acknowledged,
and, accordingly, desire to execute and deliver this Accession. Therefore, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and as further inducement to Lender in connection
with their extension of Loans to Borrower under the Loan Agreement, the New Guarantor hereby agrees as follows:

 

1. The New Guarantor hereby joins
in and agrees to be bound by each and all of the provisions of the Guaranty as a Guarantor thereunder. In furtherance (and without
limitation) of the foregoing, pursuant to Section 1 of the Guaranty, the New Guarantor hereby irrevocably, absolutely and unconditionally,
and jointly and severally with each other Guarantor, guarantees to Lender the full and prompt payment, at any time and from time
to time as and when due (whether at the stated maturity, by acceleration or otherwise), of all of the Guaranteed Obligations, and
agrees to pay or reimburse upon demand all other obligations of the Guarantors under the Guaranty, all on the terms and subject
to the conditions set forth in the Guaranty.

 

2. The New Guarantor hereby represents
and warrants that after giving effect to this Accession, each representation and warranty related to it contained in the Loan Agreement
is true and correct with respect to the New Guarantor as of the date hereof.

 

3. This Accession shall be a Loan Document
(within the meaning of such term under the Loan Agreement), shall be binding upon and enforceable against the New Guarantor
and its successors and assigns, and shall inure to the benefit of and be enforceable by Lender and its successors and
assigns. This Accession and its attachments are hereby incorporated into the Guaranty and made a part thereof.

 

[Signature page follow]

 

    A-1

     

    

 

IN WITNESS WHEREOF, the
New Guarantor has caused this Accession to be executed under seal by its duly authorized officer as of the date first above written.

 

	 	[NAME OF NEW GUARANTOR]
	 	 	 
	 	By:	                                
	 	Name:	 
	 	Title:	 

 

 

A-2Exhibit 10.20

 

Execution Version

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT
(as it may be amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”)
is entered into as of May 3, 2019 by and among NS US Holdings, Inc., a Delaware corporation (“Pledgor”), and Rock
Cliff Capital LLC (together with its successors and assigns, “Lender”), in its capacity as lender party to
the Loan Agreement referred to below.

 

PRELIMINARY STATEMENT

 

Herbal Brands, Inc.,
a Delaware corporation and wholly-owned Subsidiary of Pledgor (the “Borrower”) and Lender are entering into
a Loan and Security Agreement dated as of the date hereof (as it may be amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement”). Pledgor is entering into this Pledge Agreement in order to induce Lender
to enter into and extend credit to the Borrower under the Loan Agreement and to secure the Obligations.

 

ACCORDINGLY, Pledgor and Lender hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1 Terms Defined in Loan Agreement. All capitalized
terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Loan Agreement.

 

1.2 Terms Defined in UCC. Terms defined in
the UCC which are not otherwise defined in this Pledge Agreement are used herein as defined in the UCC.

 

1.3 Definitions of Certain Terms Used Herein.
As used in this Pledge Agreement, in addition to the terms defined in the first paragraph hereof and in the Preliminary Statement,
the following terms shall have the following meanings:

 

“Article”
means a numbered article of this Pledge Agreement, unless another document is specifically referenced.

 

“Closing Date” means the date of
the Loan Agreement.

 

“Collateral” shall have the meaning set forth in Article II.

 

“Control”
shall have the meaning set forth in Article 8 of the UCC or, if applicable, Section 9-106 of Article 9 of the UCC.

 

“Equity Interests”
means with respect to any Person, shares of capital stock, partnership interests, membership interests in a limited liability company,
beneficial interests in a trust or other equity ownership interests in such Person, and any warrants, options or other rights entitling
the holder thereof to purchase or acquire any of the foregoing.

 

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“Event of Default” means an event
described in Section 5.1.

 

“Exhibit”
refers to a specific exhibit to this Pledge Agreement, unless another document is specifically referenced.

 

“Liabilities”
mean all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions,
costs, fees, taxes, commissions, charges, disbursements and expenses (including those incurred upon any appeal or in connection
with the preparation for and/or response to any subpoena or request for document production relating thereto), in each case of
any kind or nature (including interest accrued thereon or as a result thereto and fees, charges and disbursements of financial,
legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual,
punitive, treble or otherwise.

 

“Pledged Collateral”
means (a) the Equity Interests in Borrower owned by Pledgor set forth on Exhibit B hereto and (b) all additional or substitute
Equity Interests of any class from time to time issued by Borrower to Pledgor, the certificates representing such additional or
substitute Equity Interests and all Stock Rights related thereto.

 

“Section”
means a numbered section of this Pledge Agreement, unless another document is specifically referenced.

 

“Stock Rights”
means all dividends, instruments or other distributions and any other right or property which Pledgor shall receive or shall become
entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any Equity Interest constituting
Collateral, any right to receive an Equity Interest and any right to receive earnings, in which Pledgor now has or hereafter acquires
any right, issued by an issuer of such Equity Interest.

 

“UCC”
means the Uniform Commercial Code, as in effect from time to time, of the State of New York or of any other state the laws of which
are required as a result thereof to be applied in connection with the attachment, perfection or priority of, or remedies with respect
to, Lender’s Lien on any Collateral.

 

The foregoing definitions
shall be equally applicable to both the singular and plural forms of the defined terms.

 

ARTICLE II

GRANT OF SECURITY INTEREST

 

Pledgor hereby pledges,
assigns and grants to Lender a security interest in all of its right, title and interest in, to and under the following property
and assets, whether now owned by or owing to, or hereafter acquired by or arising in favor of Pledgor (including under any trade
name or derivations thereof), and regardless of where located (all of which will be collectively referred to as the “Collateral”):

 

(i) all Pledged Collateral; and

 

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(ii) all proceeds
(including Stock Rights) of the foregoing, together with all books and records, computer files, programs, printouts
and other computer materials and records related thereto and any General Intangibles at any time evidencing or relating to
any of the foregoing;

 

to secure the prompt and complete payment and performance of
the Obligations.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Pledgor represents and warrants to Lender that:

 

3.1 Title,
Authorization, Validity, Enforceability, Perfection and Priority. Pledgor has good and valid rights in or the power to
transfer the Collateral and title to the Collateral with respect to which it has purported to grant a security interest
hereunder, free and clear of all Liens, and has full power and authority to grant to Lender the security interest in the
Collateral pursuant hereto. The execution and delivery by Pledgor of this Pledge Agreement has been duly authorized by proper
corporate proceedings of Pledgor, and this Pledge Agreement constitutes a legal valid and binding obligation of Pledgor and
creates a security interest which is enforceable against Pledgor in all Collateral it now owns or hereafter acquires, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. When
financing statements have been filed in the appropriate offices against Pledgor in the office of the Secretary of State of
the State of Delaware, Lender will have a fully perfected security interest in that Collateral of Pledgor in which a security
interest may be perfected by filing, subject only to Liens permitted under Section 4.1(e).

 

3.2 Type and
Jurisdiction of Organization, Organizational and Identification Numbers. The type of entity of Pledgor, its state of
organization, the organizational number issued to it by its state of organization and its federal employer identification
number are set forth on Exhibit A.

 

3.3 Principal Location. Pledgor’s
mailing address and the location of its place of business (if it has only one) or its chief executive office (if it has more
than one place of business), are disclosed in Exhibit A; Pledgor has no other places of business except those set
forth in Exhibit A.

 

3.4 Exact Names. Pledgor’s name in
which it has executed this Pledge Agreement is the exact name as it appears in Pledgor’s organizational documents, as
amended, as filed with Pledgor’s jurisdiction of organization.

 

3.5 No Financing
Statements, Security Agreements. No financing statement or security agreement describing all or any portion of the Collateral
which has not lapsed or been terminated (by a filing authorized by the secured party in respect thereof) naming Pledgor as debtor
has been filed or is of record in any jurisdiction except for financing statements or security agreement naming Lender as the
secured party.

 

    3

     

    

 

3.6 Pledged Collateral.

 

(a)
 Exhibit
B sets forth a complete and accurate list of all of the Pledged Collateral owned by Pledgor. Pledgor is the direct, sole beneficial
owner and sole holder of record of the Pledged Collateral listed on Exhibit B as being owned by Pledgor, free and clear
of any Liens, except for the security interest granted to Lender. Pledgor further represents and warrants that (i) all Pledged
Collateral owned by Pledgor has been (to the extent such concepts are relevant with respect to such Pledged Collateral) duly authorized,
validly issued, are fully paid and non assessable, and (ii) with respect to any certificates delivered to Lender representing an
Equity Interest, either such certificates are Securities as defined in Article 8 of the UCC as a result of actions by the issuer
or otherwise, or, if such certificates are not Securities, Pledgor has so informed Lender so that Lender may take steps to perfect
its security interest therein as a General Intangible.

 

(b) In addition,
(i) none of the Pledged Collateral owned by Pledgor has been issued or transferred in violation of the securities registration,
securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject, (ii) no options, warrants,
calls or commitments of any character whatsoever (A) exist relating to the Pledged Collateral or (B) obligate the issuer of any
Equity Interest included in the Pledged Collateral to issue additional Equity Interests, and (iii) no consent, approval, authorization,
or other action by, and no giving of notice, filing with, any governmental authority or any other Person is required for the pledge
by Pledgor of the Pledged Collateral pursuant to this Pledge Agreement or for the execution, delivery and performance of this Pledge
Agreement by Pledgor, or for the exercise by Lender of the voting or other rights provided for in this Pledge Agreement or for
the remedies in respect of the Pledged Collateral pursuant to this Pledge Agreement, except as may be required in connection with
such disposition by laws affecting the offering and sale of securities generally.

 

(c) Pledgor owns 100%
of the issued and outstanding Equity Interests which constitute Pledged Collateral.

 

ARTICLE IV

COVENANTS

 

From the date of this
Pledge Agreement and thereafter until this Pledge Agreement is terminated pursuant to the terms hereof, Pledgor hereby agrees that:

 

4.1 General. 

 

(a) Collateral Records.
Pledgor will maintain complete and accurate books and records with respect to the Collateral owned by it, and furnish to Lender,
such reports relating to such Collateral as Lender shall from time to time reasonably request.

 

(b) Authorization
to File Financing Statements; Ratification. Pledgor hereby authorizes Lender to file, and if requested will deliver to
Lender, all financing statements or amendments thereto, and other documents and take such other actions as may from time to
time be reasonably requested by Lender in order to maintain a first priority, perfected security interest in and, if
applicable, Control of, the Collateral. Any financing statement filed by Lender may be filed in any filing office in any UCC
jurisdiction and may (i) indicate Pledgor’s Collateral by any description which reasonably approximates the description
contained in this Pledge Agreement, and (ii) contain any other information required by part 5 of Article 9 of the UCC for the
sufficiency or filing office acceptance of any financing statement or amendment, including
whether Pledgor is an organization, the type of organization and any organization identification number issued to Pledgor.
Pledgor also agrees to furnish any such information described in the foregoing sentence to Lender promptly upon written
request.

 

    4

     

    

 

(c) Further Assurances.
Pledgor will, if so requested by Lender, furnish to Lender, as often as reasonably Lender requests, statements and schedules further
identifying and describing the Collateral owned by it and such other reports and information in connection with the Collateral
as Lender may reasonably request, all in such detail as Lender may reasonably specify. Pledgor also agrees to take any and all
actions necessary or desirable to defend title to the Collateral against all Persons and to defend the security interest of Lender
in the Collateral and the priority thereof against any Lien not expressly permitted hereunder.

 

(d) Disposition of
Collateral. Pledgor will not sell, lease or otherwise dispose of the Collateral.

 

(e) Liens. Pledgor
will not create, incur, or suffer to exist any Lien on the Collateral except the security interest created in favor of Lender
by this Pledge Agreement.

 

(f) Other Financing
Statements. Pledgor will not authorize the filing of any financing statement naming it as debtor covering all or any portion
of the Collateral owned by Pledgor, except for financing statements naming Lender as the secured party. Pledgor acknowledges that
it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement
without the prior written consent of Lender, subject to Pledgor’s rights under Section 9-509(d)(2) of the UCC.

 

(g) Compliance with
Terms. Pledgor will perform and comply in all material respects with all obligations in respect of the Collateral owned by
it and all agreements to which it is a party or by which it is bound relating to such Collateral.

 

4.2 Delivery of Securities, and
Documents. Pledgor will (a) deliver to the Lender promptly upon execution of this Pledge Agreement the originals of all
Securities constituting Collateral owned by it (if any then exist), (b) hold in trust for Lender upon receipt and promptly
thereafter deliver to Lender any Securities constituting Collateral, (c) upon Lender’s request, deliver to Lender (and
thereafter hold in trust for Lender upon receipt and promptly deliver to Lender) any Document evidencing or constituting
Collateral.

 

4.3 Intentionally Omitted.

 

4.4 Pledged Collateral. 

 

(a) Changes in Capital Structure of
Issuers. Pledgor will not (i) permit or suffer Borrower to dissolve, merge, liquidate, reduce Borrower’s capital,
sell or encumber all or substantially all of Borrower’s assets or permit Borrower to merge or consolidate with any
other entity, or (ii) vote any such Pledged Collateral in favor of any of the foregoing, in each case in a manner
inconsistent with the Loan Agreement, or (iii) retire Pledgor’s Equity Interests in Borrower or other Securities
evidencing ownership in Borrower.

 

    5

     

    

 

(b) Issuance of
Additional Securities. Pledgor will not permit or suffer Borrower to issue additional Equity Interests, any right
to receive the same or any right to receive earnings, except to Pledgor.

 

(c) Registration of Pledged Collateral.
Pledgor will permit any registerable Pledged Collateral to be registered in the name of Lender or its nominee at any time at
the option of Lender.

 

(d) Exercise of Rights in Pledged Collateral.

 

(i) Without in any
way limiting the foregoing and subject to clause (ii) below, Pledgor shall have the right to exercise all voting rights or other
rights relating to the Pledged Collateral owned by it for all purposes not inconsistent with this Pledge Agreement, the Loan Agreement
or any other Loan Document; provided however, that no vote or other right shall be exercised or action taken which would
have the effect of impairing the rights of Lender in respect of such Pledged Collateral.

 

(ii) Pledgor will permit
Lender or its nominee at any time after the occurrence of an Event of Default, upon written notice by Lender to Pledgor, to exercise
all voting rights or other rights relating to the Pledged Collateral owned by Pledgor, including, without limitation, exchange,
subscription or any other rights, privileges, or options pertaining to any Equity Interest constituting Pledged Collateral as if
Lender or its nominee, as applicable, were the absolute owner thereof.

 

(iii) Pledgor shall
be entitled to collect and receive for its own use all cash dividends and interest paid in respect of the Pledged Collateral owned
by Pledgor to the extent not in violation of the Loan Agreement other than any of the following distributions and payments (collectively
referred to as the “Excluded Payments”): (A) dividends and interest paid or payable other than in cash in respect
of such Pledged Collateral, and instruments and other property received, receivable or otherwise distributed in respect of, or
in exchange for, any Pledged Collateral; (B) dividends and other distributions paid or payable in cash in respect of such Pledged
Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in capital of an issuer; and (C) cash paid, payable or otherwise distributed, in respect of principal of, or in
redemption of, or in exchange for, such Pledged Collateral; provided however, that until actually paid, all rights to such
distributions shall remain subject to the Lien in favor of Lender created by this Pledge Agreement.

 

(iv) All Excluded Payments
and all other distributions in respect of any of the Pledged Collateral owned by Pledgor, whenever paid or made, shall be delivered
to Lender to hold as Pledged Collateral and shall, if received by Pledgor, be received in trust for the benefit of Lender, be segregated
from the other property or funds of Pledgor, and be forthwith delivered to Lender as Pledged Collateral in the same form as so
received (with any necessary endorsement).

 

(e) Intentionally Omitted.

 

4.5 No Interference. Pledgor agrees that
it will not interfere with any right, power and remedy of Lender provided for in this Pledge Agreement or now or hereafter
existing at law or in equity or by statute or otherwise, or the exercise or beginning of the
exercise by Lender or the other Secured Parties of any one or more of such rights, powers or remedies.

 

    6

     

    

 

4.6 Change of Name or Location. Promptly
(and in no event later than ten (10) days) after the occurrence thereof, Pledgor shall notify Lender in writing of a (a)
change in its name as it appears in official filings in the state of its incorporation or organization, (b) change in its
chief executive office, principal place of business, mailing address, or the location of its records concerning the
Collateral as set forth in this Pledge Agreement, (c) change in the type of entity that it is, (d) change in its organization
identification number, if any, issued by its state of incorporation or other organization, or (e) change in its state of
incorporation or organization.

 

ARTICLE V

EVENTS OF DEFAULT AND REMEDIES

 

5.1 Events of Default.
The occurrence of any one or more of the following events shall constitute an Event of Default hereunder:

 

(a) Any representation
or warranty made by Pledgor in this Pledge Agreement shall be materially false as of the date on which made;

 

(b) Intentionally Omitted;

 

(c) Pledgor shall fail
to observe or perform any of the terms or provisions of this Pledge Agreement (other than a breach which constitutes an Event of
Default under any other Section of this Article V), and such failure shall continue unremedied for a period of fifteen (15)
Business Days after the receipt by Pledgor of notice thereof from Lender; or

 

(d) The occurrence of
any “Event of Default” under, and as defined in, the Loan Agreement.

 

5.2 Remedies. 

 

(a) Upon the occurrence and during the continuance
of an Event of Default, Lender may exercise any or all of the following rights and remedies:

 

(i) those rights and
remedies provided in this Pledge Agreement, the Loan Agreement, or any other Loan Document; provided that, this Section
5.2(a) shall not be understood to limit any rights or remedies available to Lender prior to an Event of Default;

 

(ii) those rights and
remedies available to a secured party under the UCC (whether or not the UCC applies to the affected Collateral) or under any other
applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff or bankers’
lien) when a debtor is in default under a security agreement;

 

(iii) [intentionally
omitted];

 

(iv) [intentionally
omitted];

 

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(v)
in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to time with
or without notice and shall take place at Lender’s premises or elsewhere), for cash, on credit or for future delivery
without assumption of any credit risk, and upon such other terms as Lender may deem commercially reasonable; and

 

(vi) concurrently with
written notice to the applicable Pledgor, (A) transfer and register in its name or in the name of its nominee the whole or any
part of the Pledged Collateral, provided, that after any such Event of Default has been waived in accordance with the provisions
of the Loan Agreement and to the extent Lender has exercised its rights under this clause, Lender shall, promptly after the request
of Pledgor, cause the Pledged Collateral to be transferred to, or request that the Pledged Collateral is registered in the name
of, the Pledgor to the extent it or its nominees holds an interest in the Pledged Collateral at such time, (B) exchange certificates
or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations,
(C) exercise the voting and all other rights as a holder with respect thereto, (D) to collect and receive all cash dividends, interest,
principal and other distributions made thereon, and (E) to otherwise act with respect to the Pledged Collateral as though Lender
was the outright owner thereof.

 

(b) Lender may comply
with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not
be considered to adversely affect the commercial reasonableness of any sale of the Collateral.

 

(c) Lender shall have
the right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase
the whole or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption Pledgor hereby
expressly releases.

 

(d) Until Lender is able
to effect a sale, lease, or other disposition of Collateral, Lender shall have the right to hold or use Collateral, or any part
thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or for any other purpose
deemed appropriate by Lender. Lender may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral
and to enforce any of Lender’s remedies (for the benefit of Lender), with respect to such appointment without prior notice
or hearing as to such appointment.

 

(e) [intentionally omitted].

 

(f) Notwithstanding the
foregoing, Lender shall not be required to (i) make any demand upon, or pursue or exhaust any of its rights or remedies against,
Pledgor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Obligations or to pursue
or exhaust any of its rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii)
marshal the Collateral or any guarantee of the Obligations or to resort to the Collateral or any such guarantee in any particular
order, or (iii) effect a public sale of any Collateral.

 

(g) Pledgor
recognizes that Lender may be unable to effect a public sale of any or all the Pledged Collateral and may be compelled to
resort to one or more private sales thereof in accordance with clause (a) above. Pledgor also acknowledges that any
private sale may result in prices and other terms less favorable to the seller than if such
sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to
have been made in a commercially unreasonable manner solely by virtue of such sale being private. Lender shall be under no
obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit Pledgor or the issuer
of the Pledged Collateral to register such securities for public sale under the Securities Act of 1933, as amended, or under
applicable state securities laws, even if the applicable Pledgor and the issuer would agree to do so.

 

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5.3 Pledgor’s Obligations Upon Event of
Default. Upon the request of Lender after the occurrence of an Event of Default, Pledgor will:

 

(a) assemble and make
available to Lender the Collateral and all books and records relating thereto at Pledgor’s premises; and

 

(b) permit Lender, by
Lender’s representatives and agents, to enter, occupy and use any premises where all or any part of the Collateral, or the
books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books
and records relating thereto, or both, and to remove all or any part of the Collateral or the books and records relating thereto,
or both, without any obligation to pay Pledgor for such use and occupancy.

 

ARTICLE VI

ATTORNEY IN FACT; PROXY

 

6.1 Authorization for Lender to Take Certain Action.

 

(a) Pledgor irrevocably
authorizes Lender at any time and from time to time in the sole discretion of Lender and appoints Lender as its attorney-in-fact
(i) to endorse and collect any cash proceeds of the Collateral, (ii) to file any financing statement with respect to the Collateral
and to file any other financing statement or amendment of a financing statement (which does not add new collateral or add a debtor)
in such offices as Lender in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority
of Lender’s security interest in the Collateral, (iii) to discharge past due taxes, assessments, charges, fees or Liens on
the Collateral, and (iv) to do all other acts and things necessary to carry out this Pledge Agreement; and Pledgor agrees to promptly
reimburse Lender for any payment made or any expense incurred by Lender in connection with any of the foregoing in accordance with
Section 7.3; provided that, this authorization shall not relieve Pledgor of any of its obligations under this Pledge Agreement
or under the Loan Agreement.

 

(b) All acts of said
attorney or designee are hereby ratified and approved. The powers conferred on the Lender under this Section 6.1 are solely
to protect Lender’s interests in the Collateral and shall not impose any duty upon Lender to exercise any such powers. Lender
agrees that, except for the powers granted in Section 6.1(a)(ii) and (iv), it shall not exercise any power or authority
granted to it unless an Event of Default has occurred and is continuing.

 

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6.2 Proxy.
PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS LENDER AS ITS PROXY AND ATTORNEY IN FACT (AS SET FORTH IN SECTION
6.1 ABOVE) OF PLEDGOR WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE
SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED
COLLATERAL, THE APPOINTMENT OF LENDER AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS,
POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR
WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH
PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED
COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY
OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE OF AN EVENT OF DEFAULT.

 

6.3 Nature of Appointment; Limitation of
Duty. THE APPOINTMENT OF LENDER AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND
SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS PLEDGE AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 7.13.
NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NONE OF LENDER, ANY OF ITS AFFILIATES, OR ANY OF ITS OR ITS AFFILIATES’
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER
GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN
DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO SUCH PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT
AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY
PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

 

ARTICLE VII

GENERAL PROVISIONS

 

7.1 Waivers.
Pledgor hereby waives notice of the time and place of any public sale or the time after which any private sale or other
disposition of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable
law, any notice made shall be deemed reasonable if sent to Pledgor, addressed as set forth in Article IX, at least ten
(10) Business Days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other
disposition may be made. To the maximum extent permitted by applicable law, Pledgor waives all claims, damages, and demands
against Lender arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the
gross negligence or willful misconduct of Lender as finally determined by a court of competent jurisdiction. To the extent it
may lawfully do so, Pledgor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants
not to assert against Lender, any valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and
all rights or defenses it may have as a surety now or hereafter existing which, but for this provision, might be applicable
to the sale of any Collateral made under the judgment, order or decree of any court, or
privately under the power of sale conferred by this Pledge Agreement, or otherwise. Except as otherwise specifically provided
herein, Pledgor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law)
of any kind in connection with this Pledge Agreement or any Collateral.

 

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7.2 Limitation on Lender’s Duty with
Respect to the Collateral. Lender shall use reasonable care with respect to the Collateral in its possession or under its
control. Lender shall have no other duty as to any Collateral in its possession or control or in the possession or control of
any agent or nominee of Lender, or any income thereon or as to the preservation of rights against prior parties or any other
rights pertaining thereto.

 

7.3 Secured Party Performance of Debtor
Obligations. Without having any obligation to do so, Lender may perform or pay any obligation which Pledgor has agreed to
perform or pay in this Pledge Agreement and Pledgor shall reimburse Lender for any amounts reasonably paid by Lender pursuant
to this Section 7.3. Pledgor’s obligation to reimburse Lender pursuant to the preceding sentence shall be paid
to Lender not later than fifteen (15) days after Pledgor’s receipt of written notice of such payment by Lender.

 

7.4 Specific Performance
of Certain Covenants. Pledgor acknowledges and agrees that a breach of any of the covenants contained in Sections 4.1(d),
4.1(e), 4.2, 4.4, 4.6, 5.3, or 7.6 will cause irreparable injury to Lender, that Lender
has no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of Lender to seek and
obtain specific performance of other obligations of Pledgor contained in this Pledge Agreement, that the covenants of Pledgor
contained in the Sections referred to in this Section 7.4 shall be specifically enforceable against Pledgor.

 

7.5 Dispositions Not Authorized. Pledgor
is not authorized to sell or otherwise dispose of the Collateral and notwithstanding any course of dealing between Pledgor
and Lender or other conduct of Lender, no authorization to sell or otherwise dispose of the Collateral shall be binding upon
Lender unless such authorization is in writing signed by Lender.

 

7.6 No Waiver; Amendments; Cumulative
Remedies. No failure or delay by Lender in exercising any right or power under this Pledge Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or
power. The rights and remedies of Lender hereunder are cumulative and are not exclusive of any rights or remedies that they
would otherwise have. No waiver of any provision of this Pledge Agreement or consent to any departure by Pledgor therefrom
shall in any event be effective unless in writing signed by Lender and then only to the extent in such writing specifically
set forth.

 

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7.7 Limitation
by Law; Severability of Provisions. All rights, remedies and powers provided in this Pledge Agreement may be exercised
only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this
Pledge Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be
limited to the extent necessary so that they shall not render this Pledge Agreement invalid, unenforceable
or not entitled to be recorded or registered, in whole or in part. Any provision in this Pledge Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions
thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any
other jurisdiction, and to this end the provisions of this Pledge Agreement are declared to be severable.

 

7.8 Reinstatement.
This Pledge Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or
against Pledgor for liquidation or reorganization, should Pledgor become insolvent or make an assignment for the benefit of
any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of Pledgor’s
assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of
the Obligations, or any part thereof (including a payment effected through exercise of a right of setoff), is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations,
whether as a “voidable preference,” “fraudulent conveyance,” or otherwise (including pursuant to any
settlement entered into by a Secured Party in its discretion), all as though such payment or performance had not been made.
In the event that any payment, or any part thereof (including a payment effected through exercise of a right of setoff), is
rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

 

7.9 Benefit of Agreement. The terms and
provisions of this Pledge Agreement shall be binding upon and inure to the benefit of Pledgor, Lender and their respective
successors and assigns (including all Persons who become bound as a debtor to this Pledge Agreement), except that Pledgor
shall not have the right to assign its rights or delegate its obligations under this Pledge Agreement or any interest herein,
without the prior written consent of Lender. No sales of participations, assignments, transfers, or other dispositions of any
agreement governing the Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to
Lender hereunder.

 

7.10 Survival of
Representations. All representations and warranties of Pledgor contained in this Pledge Agreement shall survive the execution
and delivery of this Pledge Agreement.

 

7.11 Taxes and
Expenses. Any taxes (including income taxes) payable or ruled payable by Federal or State authority in respect of this Pledge
Agreement shall be paid by Pledgor, together with interest and penalties, if any. Pledgor shall reimburse Lender for any and all
reasonable out of pocket expenses and internal charges (including reasonable attorneys’, auditors’ and accountants’
fees and reasonable time charges of attorneys, paralegals, auditors and accountants who may be employees of Lender) paid or incurred
by Lender in connection with the preparation, execution, delivery, administration, collection and enforcement of this Pledge Agreement
and, to the extent provided in the Loan Agreement in the audit, analysis, administration, collection, preservation or sale of
the Collateral (including the reasonable expenses and charges associated with any periodic or special audit of the Collateral).
Any and all costs and expenses incurred by Pledgor in the performance of actions required pursuant
to the terms hereof shall be borne solely by Pledgor.

 

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7.12 Headings.
The title of and section headings in this Pledge Agreement are for convenience of reference only, and shall not govern the interpretation
of any of the terms and provisions of this Pledge Agreement.

 

7.13 Termination.
This Pledge Agreement shall continue in effect (notwithstanding the fact that from time to time there may be no Obligations outstanding)
until (i) the Loan Agreement has terminated pursuant to its express terms and (ii) all of the Obligations have been paid in full.

 

7.14 Entire Agreement.
This Pledge Agreement and the other Loan Documents embody the entire agreement and understanding between Pledgor and Lender relating
to the Collateral and supersedes all prior agreements and understandings between Pledgor and Lender relating to the Collateral.

 

7.15 CHOICE OF
LAW. THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

7.16 CONSENT
TO JURISDICTION. Pledgor and Lender hereby submit to the exclusive jurisdiction of the State and Federal courts in New
York County, City of New York, New York; provided, however, that nothing in this Pledge Agreement shall be deemed to operate to
preclude Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other
security for the Obligations, or to enforce a judgment or other court order in favor of Lender. Pledgor expressly submits and consents
in advance to such jurisdiction in any action or suit commenced in any such court, and Pledgor hereby waives (to the extent permitted
by law) any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby
consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Pledgor hereby waives (to the
extent permitted by law) personal service of the summons, complaints, and other process issued in such action or suit and agrees
that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Pledgor at
the address set forth in Exhibit A, or subsequently provided by Pledgor in accordance with, Section 8.2 of this Pledge Agreement
and that service so made shall be deemed completed upon Borrower’s actual receipt thereof.

 

7.17 WAIVER OF
JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, PLEDGOR AND LENDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING
CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.

 

7.18 Counterparts. This
Pledge Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement,
and any of the parties hereto may execute this Pledge Agreement by signing any such counterpart. Delivery of an executed
counterpart of a signature page of this Pledge Agreement by facsimile or other electronic transmission shall be effective as
delivery of a manually executed counterpart of this Pledge Agreement.

 

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ARTICLE VIII

NOTICES

 

8.1 Sending Notices. Any notice required
or permitted to be given under this Pledge Agreement must be in writing and be personally delivered or sent by overnight
delivery, certified mail (postage prepaid and return receipt requested), facsimile or email to the addresses and numbers set
forth on the signature pages to this Pledge Agreement. Notices sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to
have been given when sent (with transmission confirmation); and notices sent by email shall be deemed to have been given upon
the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement); provided that, if a facsimile or
email is given after 5:00 PM (EST), it shall be deemed to have been given at the opening of business on the next business day
for the recipient.

 

8.2 Change in Address for Notices. Pledgor
and Lender may change the address for service of notice upon it by a notice in writing to the other party.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
Pledgor and Lender have executed this Pledge Agreement as of the date first above written.

 

	 	PLEDGOR:
	 	 
	 	NS US HOLDINGS, INC.
	 	 	 
	 	By:	/s/ Kyle Detwiler
	 	Name: 	Kyle Detwiler
	 	Title:	Chief Executive Officer
	 	 
	 	Address:
	 	489 Fifth Avenue, 27th Floor
	 	New York, NY 10017
	 	Facsimile: N/A
	 	Email (send to all): jeremy@northernswan.com,
	 	kyle@northernswan.com, and
	 	chris@northernswan.com
	 	 
	 	LENDER:
	 	 
	 	ROCK CLIFF CAPITAL LLC 
	 	as Lender
	 	 
	 	By: 	/s/ Justin Korsant
	 	Name: 	Justin Korsant
	 	Title: 	Authorized Signatory

 

	 	Address:
	 	 
	 	412 West 15th Street, 14th Floor 

New York, New York 10011
	 	 
	 	Facsimile: 	 
	 	Email:	 

 

[Signature Page to Pledge Agreement]

 

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EXHIBIT A

 

NOTICE ADDRESS FOR PLEDGOR

 

NS US Holdings, Inc.

c/o Kyle Detwiler

33 Irving Place, Suite 9022

New York, New York 10003

Attention: Kyle Detwiler

Email (send to all): jeremy@northernswan.com,

kyle@northernswan.com, and chris@northernswan.com

 

INFORMATION AND COLLATERAL LOCATIONS OF

 

		I.	Name of Pledgor: NS US Holdings, Inc.

 

		(a)	Prior Legal Name(s): N/A

 

		II.	State of Incorporation or Organization: Delaware

 

		III.	Type of Entity: corporation

 

		IV.	Organizational Number assigned by State of Incorporation
or Organization: 6491425

 

		V.	Federal Tax Identification Number: 82-2314618

 

		VI.	Place of Business (if it has only one) or Chief
Executive Office (if more than one place of business) and Mailing Address:

 

33 Irving Place, Ste. 9022

New York, NY 10003

Attention: Kyle Detwiler, CEO

 

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EXHIBIT B

 

LIST OF PLEDGED COLLATERAL

STOCKS

 

	Name of  Pledgor	 	Issuer	 	Certificate 
 Number(s)	 	Number of 
 Shares	 	Class of 
 Stock	 	Percentage of 
 Outstanding 
 Shares	 
	NS US Holdings, Inc.	 	Herbal Brands, Inc.	 	1	 	100	 	Common	 	 	100	%

 

 

17

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