Document:

Exhibit

EXHIBIT 10.3

PLEDGE AGREEMENT
THIS PLEDGE AGREEMENT (this “Agreement”) is made and entered into as of October 19, 2017, by and among JRJR33, INC., a Florida corporation (the “Issuer”), the Subsidiaries of the Issuer that are signatories hereto  (collectively, the “Pledgors”), and any other Subsidiary of the Issuer that becomes a party hereto from time to time as a Pledgor, in favor of JGB COLLATERAL, LLC, as agent for the Purchasers (as defined in the Purchase Agreement) (collectively with the Purchasers, the “Secured Parties”).  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement. 
W I T N E S S E T H:
WHEREAS, the Purchasers and the Issuer are entering into that certain Securities Purchase Agreement dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), pursuant to which, among other things (a) subject to the terms and conditions, the Issuer will issue and sell a 14.0% Original Issue Discount Senior Secured Guaranteed Convertible Term Loan Notes in the aggregate principal amount of $5,263,158 and certain Common Stock Purchase Warrants, each dated the date hereof (together with any other notes or warrants issued in substitution or replacement thereof, and as may be amended, restated, supplemented or otherwise modified from time to time, the “Securities”) to the Purchasers in exchange for $5,000,000 in aggregate purchase price consideration paid by the Purchasers to the Issuer; 
WHEREAS, in order to induce the Purchasers to enter into the Purchase Agreement and other Transaction Documents (as defined therein) and to induce the Purchasers to make a senior debt investment $5,000,000 in the Issuer in the form of a purchase of the Securities for a purchase price of $5,000,000, each of the Pledgors has agreed to pledge and grant a continuing security interest in the Collateral (as hereinafter defined) to secure all Secured Obligations (as defined below); 
WHEREAS, each of the Pledgors (other than the Issuer) are direct and indirect Subsidiaries of the Issuer and will derive substantial direct and indirect benefits from the transactions contemplated by the Purchase Agreement including the making of the $5,000,000 senior debt investment by the Purchasers to the Issuer, and have therefore agreed to enter into this Agreement; and
WHEREAS, Pledgors own a certain percentage of all of the outstanding membership interests, partnership interests or shares of stock of the respective Subsidiaries of the Pledgors, as indicated on Schedule I attached hereto and incorporated herein by this reference (each such Subsidiary is referred to herein as a “Pledged Entity” and, collectively, the “Pledged Entities”).
NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each Pledgor hereby agrees in favor of Secured Parties as follows:
1.SECURITY FOR OBLIGATIONS, ETC.  
This Agreement is for the benefit of Secured Parties and is security for the prompt payment in full when due, whether at stated maturity, by acceleration or otherwise of the following obligations of the Pledgors, whether presently existing or hereafter incurred or arising: (i) in the case of the Pledgors, all of the Obligations (as such term is defined in the Security Agreement), and (ii) all reasonable, documented out-of-pocket costs and expenses incurred in connection with the enforcement and collection of the obligations described in the immediately preceding clause (i), and the enforcement of this Agreement and the Transaction Documents, including but not limited to the reasonable, documented out-of-pocket fees, charges and disbursements of counsel to the Secured Parties (all such obligations described in the foregoing clauses (i) and (ii) are referred to herein collectively as the “Secured Obligations”).
2.PLEDGED INTERESTS.

2.1     Pledged Interests.  As used herein, the term “Pledged Interests” shall mean any and all shares of the outstanding membership interests, limited partnership interests, capital stock or other equity interests (as the case may be) of the Pledged Entities that Pledgors may now or hereafter own, control or hold, which shares and interests as of this date are described on Schedule I attached hereto; provided, however, that the Pledged Interests of any Pledged Entity that is a Subsidiary that is organized under the laws of a jurisdiction other than the United States, a State thereof, or the District of Columbia (a “Foreign Subsidiary”) of a Pledgor shall be limited to sixty-five (65%) of the outstanding membership interests, limited partnership interests, capital stock or other equity interests (as the case may be) of such Pledged Entity.

2.2     Pledgor’s Representations and Warranties.  Each Pledgor represents and warrants to Secured Parties that, on the date hereof, (a) the Pledged Interests owned by Pledgor are shown on Schedule I attached hereto, (b) Pledgor is the holder of record 

and beneficial owner of such Pledged Interests, (c) such Pledged Interests constitute the percentage of the issued and outstanding membership interests, limited partnership interests, capital stock or other equity interests of the Pledged Entities shown on Schedule I, (d) in the case of such Pledged Interests that constitute membership interests or limited partnership interests, such Pledged Interests are not represented by certificates, but each such interest constitutes a “security” within the meaning of Article 8 of the Code, and (e) each Pledgor has rights in and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder free and clear of any and all Liens except as expressly permitted under the Purchase Agreement.

3.PLEDGE OF SECURITIES; ETC.

3.1     Pledge.  Subject to the terms and conditions hereof, and in order to secure the Secured Obligations, each Pledgor hereby pledges to Secured Parties for its benefit all of its rights, titles and interests in and to the Pledged Interests, together with (i) subject to the rights of Pledgor set forth in Section 5, all dividends and distributions (whether in cash, shares, warrants, options, or other interests or securities), cash, instruments or other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Interests, and (ii) all cash and non-cash proceeds of the foregoing, and each Pledgor hereby grants to Secured Parties a present and continuing security interest in, and hereby assigns, transfers, interests, hypothecates and sets over to Secured Parties, all of such Pledgor’s rights, titles and interests in and to the Pledged Interests (and in and to any certificates or instruments evidencing the items described in clauses (i) and (ii) above) to be held by Secured Parties, upon the terms and conditions set forth in this Agreement.  In the event that any of the Pledged Interests are hereafter represented by certificates, the applicable Pledgor shall give Secured Parties prompt written notice thereof and shall deliver to Secured Parties any and all certificates representing the Pledged Interests accompanied by undated transfer powers duly executed in blank by such Pledgor and any and all certificates and instruments evidencing the items described in clauses (i) and (ii) above promptly upon such Pledgor’s receipt thereof.

3.2     Definition of Pledged Securities and Collateral.  The Pledged Interests and all items described in clause (i) of Section 3.1 are hereinafter collectively called the “Pledged Securities”,  and the Pledged Securities, together with all other securities and moneys received and at the time held by Secured Parties hereunder and any cash or non-cash proceeds of any of the foregoing are hereinafter collectively called the “Collateral”.

4.VOTING; ETC.  Unless an Event of Default (as defined below) has occurred and is continuing and Agent has elected to exercise any of its rights and remedies under Section 6, Pledgors shall be entitled to vote any and all of the Pledged Securities and to give consents, waivers or ratifications in respect thereof; provided that no vote shall be cast or any consent, waiver or ratification given or any action taken which would violate or be inconsistent with any of the terms of this Agreement or the Purchase Agreement.  All such rights of Pledgors to vote and to give consents, waivers and ratifications shall cease upon receipt of notice from Agent during the continuance of any Event of Default (as defined below) that Agent has elected to exercise its rights and remedies under Section 6 below. 

5.DIVIDENDS AND OTHER DISTRIBUTIONS.

5.1     Rights of Secured Parties and Pledgor Prior to Event of Default.  Unless an Event of Default (as defined below) shall have occurred and be continuing or be caused thereby, all cash dividends or distributions payable in respect of the Pledged Securities shall be paid to Pledgors as their interests may appear, which cash dividends or distributions shall no longer be part of the Collateral. Upon the occurrence and during the continuance of any Event of Default all cash dividends or distributions payable in respect of the Pledged Securities shall be paid to the Secured Parties and applied as provided in Section 8 hereof.  Secured Parties shall be entitled to receive directly, and to retain as part of the Collateral:
(a)all other or additional interests, shares, or other securities paid or distributed by way of dividend or otherwise in respect of any of the Pledged Securities;
(b)all other or additional interests, shares, or other securities paid or distributed in respect of any of the Pledged Securities by way of stock-split,  reclassification, combination of shares or similar rearrangement; and
(c)all other or additional shares, interests, or other securities which may be paid in respect of any of the Pledged Securities by reason of any consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar reorganization provided such consolidation.

5.2     Additional Interests or Shares.  Each Pledgor agrees and covenants that, unless Agent consents otherwise in writing, it will cause the Pledged Entities not to issue any shares of any class of such Pledged Entity’s membership interests, limited partnership interests, capital stock or other equity interests to Pledgor in addition to or in substitution for any of the Pledged Interests, except any such membership interests, limited partnership interests, capital stock or other equity interests pledged to Secured Parties pursuant to this Agreement.  Any additional membership interests, limited partnership interests, shares of capital stock or other equity interests of any class of any Pledged Entity which may be hereafter acquired by any Pledgor shall automatically become part of the Pledged Interests covered hereby and such Pledgor shall promptly deliver to Secured Parties any and all 

certificates evidencing the same accompanied by undated stock powers duly executed in blank by such Pledgor; provided, however, in the case of any Pledged Entity that is a Foreign Subsidiary of a Pledgor, in no event shall the membership interests, limited partnership interests, capital stock or other equity interests (as the case may be) of such Pledged Entity and constituting part of the Collateral hereunder exceed sixty-five (65%) of the outstanding membership interests, limited partnership interests, capital stock or other equity interests (as the case may be) of such Pledged Entity.

6.EVENTS OF DEFAULT.

6.1     Definition of Events of Default.  Any of the following specified events shall constitute an “Event of Default” under this Agreement:

(a)the occurrence of any Event of Default (as such term is defined in any of the Debenture);
(b)any representation, warranty or statement made or deemed to be made by any Pledgor under or in connection with this Agreement shall have been false or misleading in any material respect when made or deemed to be made; or
(c)any Pledgor shall fail to observe or perform any covenant or agreement set forth in this Agreement in any material respect.

6.2     Remedies.  In case an Event of Default shall have occurred and be continuing, Agent shall be entitled to exercise all of the rights, powers and remedies (whether vested in Agent by this Agreement, any Transaction Document or by law and including, without limitation, all rights and remedies of a secured party under the Code (as defined below) for the protection and enforcement of its rights in respect of the Collateral), and Agent shall be entitled, without limitation, to exercise the following rights:
(d)to receive all amounts payable in respect of the Collateral otherwise payable under Section 5 to any of the Pledgors and to enforce the payment of the Pledged Securities and to exercise any and all of the rights, powers, and remedies of any Pledgor thereunder;
(e)subject only to applicable law, upon foreclosure or otherwise to the extent permitted under applicable law to transfer all or any part of the Collateral into Agent’s name or the name of its nominee or nominees;
(f)subject only to applicable law, after delivery of notice as provided in Section 4, to vote all or any part of the Collateral (whether or not transferred into the name of Agent) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though Agent was the outright owner thereof;
(g)subject only to applicable law, at any time or from time to time to sell, assign and deliver, or grant options to purchase, all or any part of the Collateral in one or more parcels, or any interest therein, at any public or private sale at any exchange, broker’s board or at any of Agent’s offices or elsewhere, without demand of performance, advertisement or notice of intention to sell or of the time or place of sale or adjournment thereof or to redeem or otherwise (all of which are hereby expressly and irrevocably waived by each Pledgor), for cash, on credit or for other property, for immediate or future delivery without any assumption of credit risk, and for such price or prices and on such terms as Agent in its reasonable discretion may determine.  Each Pledgor agrees that to the extent that notice of sale shall be required by any applicable law that ten (10) days’ notice to Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and any such sale may, without further notice, be made at the time and place to which it was so adjourned.  Each Pledgor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder.  At any such sale, unless prohibited by applicable law, Agent may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption.  Secured Parties shall not be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall it be under any obligation to take any action whatsoever with regard thereto;
(h)to settle, adjust, compromise and arrange all accounts, controversies, questions, claims and demands whatsoever in relation to all or any part of the Collateral;
(i)to execute all contracts, agreements, documents and instruments to bring, defend and abandon all such actions, suits and proceedings and to take all other actions in relation to all or any part of the Collateral as Agent in their reasonable discretion may determine;
(j)to appoint managers, agents, officers and servants for any of the purposes mentioned in the foregoing provisions of this Section 6.2 and to dismiss the same, all as Agent in their reasonable discretion may determine;
(k)generally, to take all such other action as Agent reasonably may determine as incidental or conducive to any of the matters or powers mentioned in the foregoing provisions of this Section 6.2 and which Agent may or can do lawfully and to use the name of any Pledgor for the purposes aforesaid and in any proceedings arising therefrom.
For purposes of this Agreement, “Code” means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of New York; provided, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Agent’s Lien on any Collateral is governed by the Uniform Commercial 

Code as enacted and in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.
7.REMEDIES, ETC., CUMULATIVE.  Each right, power and remedy of Secured Parties provided for in this Agreement, in any Purchase Agreement or in any other Note Document or now or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in addition to every other such right, power or remedy.  The exercise or beginning of the exercise by Secured Parties of any one or more of the rights, powers or remedies provided for in this Agreement, in the Purchase Agreement or any other Note Document or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by Secured Parties of all such other rights, powers or remedies, and no failure or delay on the part of Secured Parties to exercise any such right, power or remedy shall operate as a waiver thereof.

8.APPLICATION OF PROCEEDS.  All moneys collected by Secured Parties upon any sale, collection or other disposition of any of the Collateral, together with all other moneys received by Secured Parties hereunder, shall be applied as follows:
First, to the payment of the costs and expenses of such sale, collection or other realization, including, without limitation, reasonable attorneys’ fees and all other reasonable expenses, liabilities and advances made or incurred by Secured Parties in connection therewith;
Second, to the payment of the Secured Obligations then due in such order as Secured Parties may elect; and
Third, after payment in full of all Secured Obligations then due, to Pledgors as their interests may appear or to their successors or permitted assigns, or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct any surplus then remaining from such proceeds.
Each Pledgor shall remain liable to the Secured Parties for any deficiency owing on the Secured Obligations after the application of the proceeds of the Collateral as provided above.
9.PURCHASERS OF COLLATERAL.  Upon any sale of any of the Collateral hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of Secured Parties or the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to Secured Parties or such officer or be answerable in any way for the misapplication or nonapplication thereof.

10.FURTHER ASSURANCES.  Each Pledgor agrees that Pledgor will do such acts and things and promptly execute and deliver (and cause the Pledged Entities to promptly execute and deliver) to Agent such financing statements or additional conveyances, assignments, agreements and instruments as Agent may reasonably require to perfect and maintain the perfection of Secured Parties’ Liens hereunder in the Collateral and to otherwise carry into effect the purposes of this Agreement or to further assure and confirm unto Secured Parties its rights, powers and remedies hereunder.  Without limiting the generality of the foregoing, each Pledgor hereby irrevocably authorizes Agent at any time and from time to time to file in any filing office any Uniform Commercial Code financing statements and amendments thereto (or equivalents thereof in any foreign countries) that indicate the Collateral and contain any other information required for the sufficiency or filing office acceptance of any financing statement or amendment (or equivalents thereof in any foreign countries), including whether Pledgor is an organization, the type of organization and any organization identification number issued to Pledgor.

11.STANDARD OF CARE.  Secured Parties shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which Secured Parties accords their own property, it being understood that Secured Parties shall not have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not Secured Parties have or are deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Collateral.

12.REPRESENTATIONS AND WARRANTIES.  Each Pledgor hereby represents and warrants that: (i) it is the legal record and beneficial owner of, and has good and marketable title to, the Pledged Interests described in Section 2 hereof, subject to no Lien whatsoever (other than Liens in favor of Secured Parties), (ii) Pledgor has full power, authority and legal right to pledge all the Pledged Securities and the other Collateral pursuant to this Agreement, (iii) the delivery of possession of the pledged certificates with indorsements in blank to Secured Parties (in the case of any certificated Pledged Interests) and the filing of any appropriate financing statements (or equivalents thereof in any foreign countries), no consent of any other party (including, without limitation, any other creditor of Pledgor) and no order, consent, license, permit, approval, validation or authorization of, exemption by, notice to or registration, recording, filing or declaration with, any governmental or public body or authority is 

required to be obtained by Pledgor in connection with the execution, delivery or performance of this Agreement or consummation of the transactions contemplated hereby, including, without limitation, the exercise by Secured Parties of the voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement (except, in each instance, as may be required in connection with the disposition of the Pledged Securities by laws affecting the offering and sale of securities generally and the healthcare laws and regulations of the United States and the states in which the Pledged Entities conduct business), (iv) all of the Pledged Interests have been duly and validly issued, are fully paid and, where applicable, nonassessable, and (v) the delivery of possession of the pledged certificates with indorsements in blank to Secured Parties and the filing of any appropriate financing statements (or equivalents thereof in any foreign countries), the pledge and delivery of the Pledged Securities pursuant to this Agreement creates a valid and perfected first priority security interest in the Pledged Securities, and the proceeds thereof, which security interest is not subject to any prior Lien or any agreement purporting to grant to any third party a Lien on the property or assets of Pledgor which would include the Pledged Securities.

13.COVENANTS OF PLEDGORS.  Each Pledgor covenants and agrees that (i) without the prior written consent of Agent, Pledgor will not sell, assign, transfer, pledge, or otherwise encumber any of its rights in or to the Collateral, or any unpaid dividends, interest or other distributions or payments with respect to the Collateral or grant a Lien in the Collateral, unless otherwise expressly permitted by the Purchase Agreement; (ii) Pledgor will, at its expense, promptly execute, acknowledge and deliver all such instruments and take all such actions as Agent from time to time may request in order to ensure to Secured Parties the benefits of the Liens in and to the Collateral intended to be created by this Agreement, including the filing of any necessary Code financing statements (or equivalents thereof in any foreign countries), which may be filed by Secured Parties with or (to the extent permitted by law) without the signature of Pledgor, and will cooperate with Secured Parties, at Pledgor’s expense, in obtaining all necessary approvals and making all necessary filings under federal, state, local or foreign law in connection with such Liens or any sale or transfer of the Collateral; (iii) Pledgor has and will defend the title to the Collateral and the Liens of Secured Parties in the Collateral against the claim of any Person and will maintain and preserve such Liens; (iv) Pledgor will assist the Pledged Entities in defending Secured Parties’ rights, titles and security interests in and to the Pledged Securities and the proceeds thereof against the claims and demands of all persons whomsoever; (v) Pledgor will have like title to and right to pledge any other property at any time hereafter pledged to Secured Parties as Collateral hereunder and will likewise defend the right thereto and security interest therein of Secured Parties; and (vi) Pledgor will not, with respect to any Collateral, without the prior written consent of Agent enter into any shareholder agreements, voting agreements, voting trusts, trust deeds, irrevocable proxies or any other similar agreements or instruments except to the extent permitted under the Purchase Agreement.

14.NOTICES, ETC.  All notices and other communications hereunder to Secured Parties or to any Pledgor shall be given in the manner and to the addresses specified in Section 10.1 of the Purchase Agreement. 

15.POWER OF ATTORNEY.  Each Pledgor hereby absolutely and irrevocably constitutes and appoints Agent to be Pledgor’s true and lawful agent and attorney-in-fact, effective upon the occurrence and during the continuation of an Event of Default, with full power of substitution, in the name of Pledgor:  (a) to execute and do all such assurances, acts and things which Pledgor ought to do but has failed to do under the covenants and provisions contained in this Agreement; (b) to take any and all such action as Agent may, in its reasonable discretion, determine as necessary for the purpose of maintaining, preserving or protecting the security constituted by this Agreement or any of the rights, remedies, powers or privileges of Secured Parties under this Agreement; and (c) generally, in the name of Pledgor exercise all or any of the powers, authorities, and discretions conferred on or reserved to Secured Parties by or pursuant to this Agreement, and (without prejudice to the generality of any of the foregoing) to seal and deliver or otherwise perfect any instrument or document of conveyance, agreement, or act as Agent reasonably may deem proper in or for the purpose of exercising any of such powers, authorities or discretions.  Pledgor hereby ratifies and confirms, and hereby agrees to ratify and confirm, whatever lawful acts Agent shall do or purport to do in the exercise of the power of attorney granted to Agent by Pledgor pursuant to this Section, which power of attorney, being given for security, is irrevocable.

16.Lien Absolute.  All rights of Secured Parties hereunder, and all obligations of Pledgor hereunder, shall be absolute and unconditional irrespective of:
(a)any lack of validity or enforceability of any of the Purchase Agreement, any other Note Documents or any other agreement or instrument governing or evidencing any Secured Obligations;
(b)any change in the time, manner or place of payment of, or in any other term of, all or any part of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from any of the Purchase Agreement, any other Note Document or any other agreement or instrument governing or evidencing any Secured Obligations;
(c)any exchange, release or non-perfection of any other Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations;
(d)the insolvency of any Pledgor or any subsidiary thereof; or
(e)any other circumstance which might otherwise constitute a defense available to, or a discharge of, Pledgor.

17.TERMINATION.  This Agreement and all security interests and other liens granted or conveyed hereunder shall remain in full force and effect and shall be irrevocable until the time at which all of the Secured Obligations (other than contingent indemnification obligations so long as no claim or demand for indemnification then exists or has then been made) have been indefeasibly paid in full, at which time this Agreement and all such security interests and other liens will terminate, subject to reinstatement as provided below.  Each Pledgor hereby waives any right such Pledgor may have upon payment in full of the Secured Obligations to require Secured Parties to terminate their security interests in the Collateral or any financing statement relating thereto until this Agreement is terminated in accordance with the foregoing terms. Effective upon the consummation of a disposition of any Collateral to any Person (other than the Pledgors) to the extent such disposition is expressly permitted under the Purchase Agreement and the application of proceeds thereof in conformity with the provisions of this Agreement and the Purchase Agreement, the security interest granted under the Transactions Documents in such Collateral (but not any of the proceeds thereof) so disposed of will terminate and the Secured Parties shall, upon Issuer’s request and at Issuer’s sole cost and expense, promptly deliver such releases as may be appropriate to give public notice of such release, provided, however, the security interest granted under the Note Documents in all remaining Collateral will remain in full force and effect.  Each Pledgor agrees that, if any payment made by any Pledgor or other Person and applied to the Secured Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds of any Collateral are required to be returned by Secured Parties to such Pledgor, its estate, trustee, receiver or any other party, including any Pledgor, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or repayment, any lien or other Collateral securing such liability shall be and remain in full force and effect, as fully as if such payment had never been made.  If any lien or other Collateral securing such Pledgor’s liability shall have been released or terminated by virtue of this Agreement, such lien, other Collateral or provision shall be reinstated in full force and effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of any such Pledgor in respect of any lien or other Collateral securing such obligation or the amount of such payment.  

18.MISCELLANEOUS.  This Agreement shall create a continuing security interest in the Collateral and shall be binding upon the respective heirs, legal representatives, successors and assigns of Pledgors and shall inure to the benefit of and be enforceable by Secured Parties and their successors and assigns; provided, however that no Pledgor shall assign any of its rights, duties or obligations hereunder to any Person without the prior written consent of Agent.  The headings in this Agreement are for purposes of reference only and shall not limit or define the meaning hereof.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument.  In the event that any provision of this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be severable from the other provisions of this Agreement which shall remain binding on all parties hereto.  Each Pledgor waives acceptance and notice of acceptance of this Agreement by Secured Parties.  Time is of the essence of this Agreement.  This Agreement may not be amended or modified except by a written instrument signed by each of the parties hereto.  

19.GOVERNING LAW; CONSENT TO SERVICE OF PROCESS; WAIVER OF JURY TRIAL.  This Agreement, including all matters of construction, validity, enforcement and interpretation, shall be governed by, and construed in accordance with, the laws of the State of NEW YORK, without regard to conflicts of laws principles, and any applicable laws of the United States.  THE TERMS OF SECTIONS 5.8 AND 5.21 OF THE PURCHASE AGREEMENT WITH RESPECT TO GOVERNING LAW, consent to service of process AND WAIVER OF JURY TRIAL ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS, AND THE PARTIES HERETO AGREE TO SUCH TERMS.    

20.ENTIRE AGREEMENT.  This Agreement, together with all instruments, certificates and documents executed or delivered by the parties in connection herewith or with reference hereto, embodies the entire understanding and agreement between the parties hereto with respect to the Collateral and supersedes all prior agreements, understandings and inducements, whether express or implied, or oral or written.

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IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed as of the date first written above.
	
		
	pledgors:

JRJR33, inc.

           /s/ John Rochon, Jr.
	

AGEL AGILITY, LLC

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Financial Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	AGEL ENTERPRISES, INC.

           /s/ John Rochon, Jr.
	BETTERWARE LIMITED

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	CVSL TBT LLC

           /s/ John Rochon, Jr.
	HAPPENINGS COMMUNICATIONS GROUP, INC.
           /s/ John P. Rochon

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John P. Rochon
      Title: Chief Executive Officer

	KLEENEZE LIMITED

           /s/ John Rochon, Jr.
	My Secret Kitchen Ltd.

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	Paperly, Inc.

           /s/ John Rochon, Jr.
	Spice Jazz LLC

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	Stanley House Distribution Limited

           /s/ John Rochon, Jr.
	The Longaberger Company

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	TMRCL Holding Company

           /s/ John Rochon, Jr.
	TMRCL Holding LLC

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	Uppercase Acquisition, Inc.

           /s/ John Rochon, Jr.
	 

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	 

	
		
	AGENT:

JGB COLLATERAL, LLC
          /s/ Brett Cohen
	 

	By:__________________________________
      Name: Brett Cohen
      Title: President
	 

SCHEDULE I

Pledged Interests

Pledged Interests of Pledgors:

	
			
	Entity
	Pledged Equity and Holder
	Other Holder

	Agel Enterprises, Inc.
	10,000 shares of 9,999 shares of Common Stock held by CVSL Inc.
	1 Share held by John Rochon, Jr.

	CVSL TBT LLC
	100% membership interest held by CVSL Inc. 
	none.

	Happenings Communications Group, Inc.
	1,000 Shares held by CVSL Inc.
	none.

	The Longaberger Company
	1254 Class A shares, representing 65% of all Class A shares and 968 Class B Shares, representing 39% of all Class B Shares 
	David W. Longaberger Trust owns 884 Class A shares, representing 35 % of all class A shares and 1532 Class B shares, representing 61 percent of all class B shares 

	Paperly Inc.
	10,000 shares held by CVSL Inc.
	none

	Spice Jazz LLC
	100% membership interest held by CVSL Inc.
	None.

	Uppercase Acquisition, Inc.
	1 fully paid ordinary share held by CVSL Inc.
	none.Exhibit

EXHIBIT 10.4

SUBSIDIARY GUARANTEE

This SUBSIDIARY GUARANTEE, dated as of October 19, 2017 (this “Guarantee”), is made by each of the signatories hereto (together with any other entity that may become a party hereto as provided herein, the “Guarantors”), in favor of the Secured Parties defined below. 

W I T N E S S E T H:

WHEREAS, pursuant to that certain Securities Purchase Agreement, dated as of the date hereof, by and between JRjr33, Inc., a Florida corporation (the “Company”) and the Purchasers (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), the Company has agreed, among other things, to sell and issue to the Purchasers, and the Purchasers have agreed to purchase from the Company, the Debentures, subject to the terms and conditions set forth therein; and

WHEREAS, each Guarantor is a direct or indirect Subsidiary of the Company and will directly benefit from the extension of credit to the Company represented by the issuance of the Debentures; and        
    
NOW, THEREFORE, in consideration of the promises contained therein and to induce the Purchasers to enter into the Purchase Agreement and to carry out the transactions contemplated thereby, each Guarantor hereby agrees with the Purchasers as follows:
 
1.Definitions. Unless otherwise defined herein, terms defined in the Purchase Agreement and used herein shall have the meanings given to them in the Purchase Agreement. The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision of this Guarantee, and Section and Schedule references are to this Guarantee unless otherwise specified. The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.  The following terms shall have the following meanings:

“Agent” means JGB Collateral, LLC, a Delaware limited liability company.

“Guarantee” means this Subsidiary Guarantee, as the same may be amended, supplemented or otherwise modified from time to time.

             “Obligations” means, in addition to all other costs and expenses of collection incurred by Purchasers or Agent in enforcing any of such Obligations and/or this Guarantee, all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company or any Guarantor to any Secured Party, including, without limitation, all obligations under this Guarantee, the Debentures and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time.  Without limiting the generality of the foregoing, the term “Obligations” shall include, without limitation: (i) principal of, and interest on the Debentures and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Company or any Guarantor from time to time under or in connection with this Guarantee, the Debentures, the other Transaction Documents and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company or any Guarantor. 

“Purchasers” means each of the entities set forth on Schedule 1 attached hereto.

“Secured Parties” means the Agent, the Purchasers, each Purchaser Party, and each of their respective successors or assigns.
 
2.Guarantee.

(a)Guarantee.
 
(i)The Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantee to the Secured Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations. 
 
(ii)Anything herein or in any other Transaction Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder and under the other Transaction Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws, including laws relating to the insolvency of debtors, fraudulent conveyance or transfer or laws affecting the rights of creditors generally (after giving effect to the right of contribution established in Section 2(b)). 

(iii)Each Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Secured Parties hereunder.

(iv)The guarantee contained in this Section 2 shall remain in full force and effect until all the Obligations and the obligations of each Guarantor under the guarantee contained in this Section 2 shall have been satisfied by indefeasible payment in full. 

(v)No payment made by the Company, any of the Guarantors, any other guarantor or any other Person or received or collected by any Secured Party from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce (other than a reduction of the amount owed hereunder, if applicable), release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Obligations or any payment received or collected from such Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Guarantor hereunder until the Obligations are indefeasibly paid in full.

(vi)Notwithstanding anything to the contrary in this Guarantee, with respect to any defaulted non-monetary Obligations the specific performance of which by the Guarantors is not reasonably possible (e.g. the issuance of the Company’s Common Stock), the Guarantors shall only be liable for making the Secured Parties whole on a monetary basis for the Company’s failure to perform such Obligations in accordance with the Transaction Documents. 

(b)Right of Contribution. Subject to Section 2(c), each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate share of such payment. Each Guarantor’s right of contribution shall be subject to the terms and conditions of Section 2(c). The provisions of this Section 2(b) shall in no respect limit the obligations and liabilities of any Guarantor to the Secured Parties and each Guarantor shall remain liable to the Secured Parties for the full amount guaranteed by such Guarantor hereunder.
 
(c)No Subrogation.  Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor by any Secured Party, no Guarantor shall be entitled to be subrogated to any of the rights of any Secured Party against the Company or any other Guarantor or any collateral security or guarantee or right of offset held by any Secured Party for the payment of the Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the Secured Parties by the Company on account of the Obligations are indefeasibly paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for the Secured Parties, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be 

turned over to the Secured Parties in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Secured Parties, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Secured Parties may determine.
 
(d)Amendments, Etc. With Respect to the Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Obligations made by any Secured Party may be rescinded by any Secured Party and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Secured Parties, and the Purchase Agreement and the other Transaction Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as any Purchaser and/or Agent, as applicable, may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Secured Parties for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. The Secured Parties shall have no obligation to protect, secure, perfect or insure any Lien at any time held by the Agent for the benefit of the Secured Parties as security for the Obligations or for the guarantee contained in this Section 2 or any property subject thereto.  
 
(e)Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Secured Parties upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Company and any of the Guarantors, on the one hand, and any Secured Party, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2. Each Guarantor waives to the extent permitted by law diligence, 
(f)presentment, protest, demand for payment and notice of default or nonpayment to or upon the Company or any of the Guarantors with respect to the Obligations. Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment and performance without regard to (a) the validity or enforceability of the Purchase Agreement or any other Transaction Document, any of the Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Secured Parties, (b) any defense, set-off or counterclaim (other than a defense of payment or performance or of fraud by Secured Parties) which may at any time be available to or be asserted by the Company or any other Person against the Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Company or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Company for the Obligations, or of such Guarantor under the guarantee contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Secured Parties may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as they may have against the Company, any other Guarantor or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Secured Parties to make any such demand, to pursue such other rights or remedies or to collect any payments from the Company, any other Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Company, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Secured Parties against any Guarantor. For the purposes hereof, “demand” shall include the commencement and continuance of any legal proceedings. For the avoidance of doubt, no Secured Party shall be obligated to file any claim relating to the Obligations in the event that the Company becomes subject to a bankruptcy, reorganization or similar proceeding, and the failure of Secured Parties so to file shall not affect the Guarantors’ obligations hereunder.  
 
(g)Reinstatement. The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Company or any Guarantor or any substantial part of its property, or for any other reason otherwise, all as though such payments had not been made.

(h)Payments. Each Guarantor hereby guarantees that payments hereunder will be paid to the Purchasers or Agent, as applicable, without set-off or counterclaim in U.S. dollars at the address set forth or referred to in the Signature Pages to the Purchase Agreement.

3.Representations and Warranties. Each Guarantor hereby makes the following representations and warranties to Secured Parties as of the date hereof:
 
(a)Organization and Qualification. Such Guarantor is a corporation, duly incorporated, validly existing and in good standing under the laws of the applicable jurisdiction set forth on Schedule 2, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. Such Guarantor has no subsidiaries other than those identified as such on the Disclosure Schedules to the Purchase Agreement. Such Guarantor is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually or in the aggregate, (x) adversely affect the legality, validity or enforceability of any of this Guarantee in any material respect, (y) have a material adverse effect on the results of operations, assets or financial condition of such Guarantor  or the Company and its Subsidiaries taken as a whole or (z) adversely impair in any material respect such Guarantor’s ability to perform fully on a timely basis its obligations under this Guarantee (a “Material Adverse Effect”).
 
(b)Authorization; Enforcement.  Such Guarantor has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Guarantee, and otherwise to carry out its obligations hereunder. The execution and delivery of this Guarantee by such Guarantor and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of such Guarantor. This Guarantee has been duly executed and delivered by such Guarantor and constitutes the valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

(c)No Conflicts. The execution, delivery and performance of this Guarantee by such Guarantor and the consummation by such Guarantor of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of its Certificate of Incorporation or By-laws or (ii) conflict with, constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument (evidencing debt or otherwise) to which such Guarantor is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which such Guarantor is subject (including Federal and State securities laws and regulations), or by which any material property or asset of such Guarantor is bound or affected, except in the case of each of clauses (ii) and (iii), such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as could not, individually or in the aggregate, have or result in a Material Adverse Effect. The business of such Guarantor is not being conducted in violation of any law, ordinance or regulation of any governmental authority, except for violations which, individually or in the aggregate, do not have a Material Adverse Effect.
 
(d)Consents and Approvals. Such Guarantor is not required to obtain any consent, waiver, authorization or order of, or make any filing or registration with, any court or other federal, state, local, foreign or other governmental authority or other person in connection with the execution, delivery and performance by such Guarantor of this Guarantee, except where such failure could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

(e)Purchase Agreement. The representations and warranties of the Company set forth in the Purchase Agreement as they relate to such Guarantor, each of which is hereby incorporated herein by reference, are true and correct in all material respects as of each time such representations are deemed to be made pursuant to such Purchase Agreement, and the Secured Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided that each reference in each such representation and warranty to the Company’s knowledge shall, for the purposes of this Section 3, be deemed to be a reference to such Guarantor’s knowledge. 

(f)Foreign Law.  Each Guarantor has consulted with appropriate foreign legal counsel with respect to any of the above representations for which non-U.S. law is applicable. Such foreign counsel have advised each applicable Guarantor that such counsel knows of no reason why any of the above representations would not be true and accurate. 

Such foreign counsel were provided with copies of this Guarantee and the Transaction Documents prior to rendering their advice. 

4.Covenants.  

(a)Each Guarantor covenants and agrees with the Purchasers that, from and after the date of this Guarantee until the Obligations shall have been indefeasibly paid in full, such Guarantor shall take, and/or shall refrain from taking, as the case may be, each commercially reasonable action that is necessary to be taken or not taken, as the case may be, in order to prevent the occurrence and continuance of an  Event of Default (as defined in the Debentures). 
 
(b)So long as any of the Obligations are outstanding, unless the Agent shall have otherwise given prior written consent (or, in the event that the Agent no longer holds any Debentures, the Purchasers holding at least 50.1% of the outstanding principal amount of the Debentures shall have otherwise given prior written consent), each Guarantor will not directly or indirectly on or after the date of this Guarantee:

i.enter into, create, incur, assume or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

ii.enter into, create, incur, assume or suffer to exist any liens of any kind (other than Permitted Liens), on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

iii.amend its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of any Secured Party;

iv.repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its securities or debt obligations; 

v.pay cash dividends on any equity securities of the Company;

vi.enter into any transaction with any Affiliate of such Guarantor which would be required to be disclosed in any public filing of the Company with the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by the Board of Directors; or

vii.enter into any agreement with respect to any of the foregoing.

5.Miscellaneous.

(a)Amendments in Writing. None of the terms or provisions of this Guarantee may be waived, amended, supplemented or otherwise modified except in writing by the Agent (or, in the event that the Agent no longer holds any Debentures, in a writing by the Purchasers holding at least 50.1% of the outstanding principal amount of the Debentures shall have otherwise given prior written consent).
 
(b)Notices. All notices, requests and demands to or upon the Purchasers, Agent or any Guarantor hereunder shall be effected in the manner provided for in the Purchase Agreement, provided that any such notice, request or demand to or upon any Guarantor shall be addressed to such Guarantor at its notice address set forth on Schedule 2.

(c)No Waiver By Course Of Conduct; Cumulative Remedies. The Secured Parties shall not by any act (except by a written instrument pursuant to Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any default under the Transaction Documents or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the Secured Parties, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Secured Parties of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which any Secured Party would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

(d)Enforcement Expenses; Indemnification.

(i)Each Guarantor agrees to pay, or reimburse the Secured Parties for, all its costs and expenses incurred in collecting against such Guarantor under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Guarantee and the other Transaction Documents to which such Guarantor is a party, including, without limitation, the reasonable fees and disbursements of counsel to the Secured Parties.
 
(ii)Each Guarantor agrees to pay, and to save the Secured Parties harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable in connection with any of the transactions contemplated by this Guarantee.

(iii)Each Guarantor agrees to pay, and to save the Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Guarantee to the extent the Company would be required to do so pursuant to the Purchase Agreement.

(iv)The agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Purchase Agreement and the other Transaction Documents. 

(e)Successor and Assigns. This Guarantee shall be binding upon the successors and assigns of each Guarantor and shall inure to the benefit of the Secured Parties and their respective successors and assigns; provided that no Guarantor may assign, transfer or delegate any of its rights or obligations under this Guarantee without the prior written consent of the Agent (with any requisite consent of the Purchasers as required by the Transaction Documents), and any assignment in violation herewith shall be null and void.
 
(f)Set-Off. Each Guarantor hereby irrevocably authorizes the Secured Parties at any time and from time to time while an Event of Default under any of the Transaction Documents shall have occurred and be continuing, without notice to such Guarantor or any other Guarantor, any such notice being expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits, credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Secured Parties to or for the credit or the account of such Guarantor, or any part thereof in such amounts as the Secured Parties may elect, against and on account of the obligations and liabilities of such Guarantor to the Secured Parties hereunder and claims of every nature and description of the Secured Parties against such Guarantor, in any currency, whether arising hereunder, under the Purchase Agreement, any other Transaction Document or otherwise, as the Secured Parties may elect, whether or not the Secured Parties have made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured. The Secured Parties shall notify such Guarantor promptly of any such set-off and the application made by any Secured Party of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Secured Parties under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Secured Parties may have.
 
(g)Counterparts. This Guarantee may be executed by one or more of the parties to this Guarantee on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

(h)Severability. Any provision of this Guarantee which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

(i)Section Headings. The Section headings used in this Guarantee are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

(j)Integration. This Guarantee and the other Transaction Documents represent the agreement of the Guarantors and the Secured Parties with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Secured Parties relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Transaction Documents.

(k)Governing Laws. All questions concerning the construction, validity, enforcement and interpretation of this Guarantee shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each of the Company and the Guarantors agree that all proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Guarantee (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Each of the Company and the Guarantors hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guarantee and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Guarantee or the transactions contemplated hereby.

(l)Acknowledgements.  Each Guarantor hereby acknowledges that:

(i)it has been advised by counsel in the negotiation, execution and delivery of this Guarantee and the other Transaction Documents to which it is a party; 
 
(ii)the Secured Parties have no fiduciary relationship with or duty to any Guarantor arising out of or in connection with this Guarantee or any of the other Transaction Documents, and the relationship between the Guarantors, on the one hand, and the Secured Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 

(iii)no joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated hereby among the Guarantors and the Secured Parties. 

(m)Additional Guarantors.  The Company shall cause each of its subsidiaries formed or acquired on or subsequent to the date hereof to become a Guarantor for all purposes of this Guarantee by executing and delivering an
(n)Assumption Agreement in the form of Annex 1 hereto.
 
(o)Release of Guarantors. Each Guarantor will be released from all liability hereunder concurrently with the indefeasible repayment in full of all amounts owed under the Purchase Agreement, the Debentures and the other Transaction Documents. 

(p)Seniority. The Obligations of each of the Guarantors hereunder rank senior in priority to any other Indebtedness (as defined in the Purchase Agreement) of such Guarantor. 

*********************

(Signature Pages Follow)
 

IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered as of the date first above written.
	
		
	pledgors:

JRJR33, inc.

           /s/ John Rochon, Jr.
	

AGEL AGILITY, LLC

           /s/ John Rochon, Jr. 

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Financial Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	AGEL ENTERPRISES, INC.

           /s/ John Rochon, Jr.
	BETTERWARE LIMITED

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	CVSL TBT LLC

           /s/ John Rochon, Jr.
	HAPPENINGS COMMUNICATIONS GROUP, INC.
           /s/ John P. Rochon

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John P. Rochon
      Title: Chief Executive Officer

	KLEENEZE LIMITED

           /s/ John Rochon, Jr.
	My Secret Kitchen Ltd.

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	Paperly, Inc.

           /s/ John Rochon, Jr.
	Spice Jazz LLC

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	Stanley House Distribution Limited

           /s/ John Rochon, Jr.
	The Longaberger Company

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	TMRCL Holding Company

           /s/ John Rochon, Jr.
	TMRCL Holding LLC

           /s/ John Rochon, Jr.

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer

	Uppercase Acquisition, Inc.

           /s/ John Rochon, Jr.
	 

	By:__________________________________
      Name: John Rochon, Jr.
      Title: Chief Executive Officer
	 

SCHEDULE 1

PURCHASERS

SCHEDULE 2

GUARANTORS

                  The following are the names, notice addresses and jurisdiction of organization of each Guarantor.

                                         
	
				
	Name of Guarantor
	Jurisdiction of Incorporation
	Owned by Percentage
	Notice Address

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

                                                            

 Annex 1 to
SUBSIDIARY GUARANTEE

ASSUMPTION AGREEMENT, dated as of ____ __, ______ made by ______________________________, a ______________ corporation (the “Additional Guarantor”), in favor of the Secured Parties pursuant to the Purchase Agreement referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in such Purchase Agreement. 

                 W I T N E S S E T H :

     WHEREAS, JRjr33, Inc., a Florida corporation (the “Company”) and the Purchasers have entered into a Securities Purchase Agreement, dated as of October 19, 2017 (as amended, supplemented or otherwise modified from time to time, the “Purchase Agreement”); 

     WHEREAS, in connection with the Purchase Agreement, the Subsidiaries of the Company (other than the Additional Guarantor) have entered into the Subsidiary Guarantee, dated as of October 19, 2017 (as amended, supplemented or otherwise modified from time to time, the “Guarantee”) in favor of the Secured Parties; 

     WHEREAS, the Purchase Agreement requires the Additional Guarantor to become a party to the Guarantee; and

            WHEREAS, the Additional Guarantor has agreed to execute and
deliver this Assumption Agreement in order to become a party to the Guarantee.

             NOW, THEREFORE, IT IS AGREED:

1.Guarantee. By executing and delivering this Assumption Agreement, the Additional Guarantor, as provided in Section 5(m) of the Guarantee, hereby becomes a party to the Guarantee as a Guarantor thereunder with the same force and effect as if originally named therein as a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Guarantor thereunder. The information set forth in Annex 1-A hereto is hereby added to the information set forth in Schedule 2 to the Guarantee. The Additional Guarantor hereby represents and warrants that each of the representations and warranties contained in Section 3 of the Guarantee is true and correct on and as the date hereof as to such Additional Guarantor (after giving effect to this Assumption Agreement) as if made on and as of such date.
 
2.Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
                  IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                           [ADDITIONALGUARANTOR]

                                            By:                     
                                            Name:
                                            Title:HB 10/10

Annex 1-A to Assumption Agreement

Additional Guarantor Information

                  The following are the names, notice addresses and jurisdiction of organization of the Additional Guarantor.

	
				
	Name of Guarantor
	Jurisdiction of Incorporation
	Owned by Percentage
	Notice Address

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