Document:

hlco_ex1017.htm

EXHIBIT 10.17
  
 PLEDGE AGREEMENT
  
 THIS PLEDGE AGREEMENT (as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”) dated as of August 4, 2022, is executed by THE HEALING COMPANY INC., a Nevada corporation (“Pledgor”), in favor of WESTMOUNT GROUP LLC, a Delaware limited liability company, as administrative and collateral agent for itself, as a Lender and for the other Lenders (in such capacities, together with its successors and assigns, the “Administrative Agent”).
  
 W I T N E S S E T H:
  
 WHEREAS, Pledgor owns one hundred percent (100%) of all equity membership interests of HLCO BORROWER, LLC, a Delaware limited liability company (“Company”), as more particularly described on Schedule I attached hereto;
  
 WHEREAS, Company, Administrative Agent and each of the other financial institutions party to the Credit Agreement (as defined below) as lenders (individually each a “Lender” and collectively the “Lenders”), have entered into that certain Credit Agreement, dated as of the date hereof, pursuant to which such Lenders will make certain Term Loans to Company (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time the “Credit Agreement”);
  
 WHEREAS, the Company pledged all its assets (other than Excluded Assets (as defined in the Security Agreement)) to Administrative Agent as collateral as required under the Credit Agreement;
  
 WHEREAS, Pledgor hereby acknowledges that it will directly and indirectly benefit from the making of such Term Loans to Company;
  
 NOW, THEREFORE, in consideration of the agreements made by Administrative Agent and Lenders for the benefit of Company in the Credit Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
  
 1. Definitions. When used herein, capitalized terms which are not otherwise defined have the meanings assigned thereto in the Credit Agreement.
  
 2. Pledge. As security for the payment and performance of all of the Obligations under the Credit Agreement or any other Credit Documents (the “Pledgor Obligations”), Pledgor hereby pledges and grants to Administrative Agent, for the benefit of itself and the Lenders, a continuing first priority security interest in, all of the following, whether now existing or hereafter owned, existing or arising (the “Subject Collateral”):
  
 (a) All equity interests in Company held by Pledgor, including, without limitation, the equity membership interests described on Schedule I hereto and any investment property and general intangibles evidenced by or relating to such equity membership interests (collectively, the “Subject Securities”), and all other property hereafter delivered to Administrative Agent in substitution for or in addition to any of the foregoing;
  
  
 	 
	1
	

	 

 
 
  
 
 (b) all documents, certificates and/or instruments representing any of the foregoing and all cash, securities, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing, except for any distributions with respect to the Subject Securities that would be permitted under the Credit Documents; and
  
 (c) all products and proceeds of all of the foregoing.
  
 Pledgor agrees to cause Company (x) not to elect to treat its equity interests as securities as contemplated by the definition of “security” in Sections 8-102(15) and 8-103 of Article 8 of the Uniform Commercial Code and (y) not to certificate its equity interests, provided, that if, notwithstanding the provisions of this Agreement, such equity interests are evidenced by a certificate, Pledgor agrees to promptly deliver to Administrative Agent, for the benefit of itself and Lenders, any and all certificates evidencing the Subject Securities; and prior to the delivery thereof to Administrative Agent, such Subject Securities shall be held by Pledgor separate and apart from its other property and in express trust for Administrative Agent. Pledgor hereby agrees to promptly deliver to Administrative Agent, for the benefit of itself and the Lenders, any other Subject Collateral which may at any time or from time to time come into the possession or control of such Pledgor; provided, that prior to the delivery thereof to Administrative Agent, such Subject Collateral shall be held by Pledgor separate and apart from its other property and in express trust for Administrative Agent.
  
 To the extent the Subject Collateral is deemed to be a security, Pledgor further agrees to obtain a securities account control agreement with any securities intermediary or other custodian of the Subject Collateral indicating that (i) all rights of Pledgor in the Subject Collateral are subject to security interest created hereunder, (ii) such securities intermediary or other custodian is authorized and instructed to comply with any instruction of Administrative Agent with respect to disposition or transfer of the Subject Collateral, including any instruction to cease accepting instructions from Pledgor, and (iii) in the event of a conflict between instructions given by Administrative Agent and instructions given by Pledgor, Administrative Agent’s instructions shall control. It is Pledgor’s intent that, to the extent that such securities are credited to a securities account, Administrative Agent is granted “control” within the meaning of Sections 9-104 and 9- 106 of the Uniform Commercial Code as in effect in the State of New York (the “UCC”) with respect to the Subject Collateral and any securities account to which the Subject Collateral is credited, and Pledgor hereby agrees to obtain a securities account control agreement with an intermediary to grant such “control”. Pledgor hereby agrees that it will not grant “control” (within the meaning of such sections of the UCC) to any Person other than Administrative Agent with respect to the Subject Collateral or any securities account to which the Subject Collateral is credited.
  
 3. Warranties; Further Assurances. Pledgor warrants to Administrative Agent that: (a) Pledgor is (or at the time of any future delivery, pledge, assignment or transfer thereof will be) the legal and equitable owner of the Subject Collateral owned by it free and clear of all liens, security interests and encumbrances of every description whatsoever other than the security interest created hereunder; and (b) the pledge and delivery of the Subject Collateral owned by it pursuant to this Agreement will create a valid first priority, perfected security interest in the Subject Collateral in favor of Administrative Agent and its assigns.
  
  
 	 
	2
	

	 

 
 
  
 
 So long as any of the Obligations shall be outstanding, Pledgor (i) shall not, without the express prior written consent of Administrative Agent, sell, assign, exchange, pledge or otherwise transfer, encumber, or grant any option, warrant or other right to purchase any Subject Securities pledged hereunder, or otherwise diminish or impair any of its rights in, to or under any of the Subject Collateral; (ii) hereby consents to the filing of such Uniform Commercial Code financing statements and other documents (and to pay the costs of filing and recording or re-filing and re- recording the same in all public offices reasonably deemed necessary or appropriate by Administrative Agent) and do such other acts and things, all as Administrative Agent may from time to time reasonably request, to establish and maintain a valid, first priority perfected security interest in the Subject Collateral (free of all other liens, claims and rights of third parties, other than Permitted Liens) to secure the performance and payment of the Pledgor Obligations; (iii) will execute and deliver to Administrative Agent such allonges, endorsements and similar documents relating to the Subject Collateral, reasonably satisfactory in form and substance to Administrative Agent, as Administrative Agent may reasonably request; and (iv) will furnish Administrative Agent such information concerning the Subject Collateral as Administrative Agent may from time to time reasonably request, and will permit Administrative Agent or any designee of Administrative Agent, from time to time to inspect, audit and make copies of and extracts from all records and all other papers in the possession of Pledgor which pertain to the Subject Collateral on the same terms as apply to inspections and audits of the Company under Section 5.5 of the Credit Agreement.
  
 4. Holding in Name of Administrative Agent, etc. Administrative Agent may from time to time during the continuance of an Event of Default, without notice to Pledgor, take all or any of the following actions: (a) transfer all or any part of the Subject Collateral into the name of Administrative Agent or any nominee or sub-agent for Administrative Agent, with or without disclosing that such Subject Collateral is subject to the lien, pledge and security interest hereunder, (b) appoint one or more sub-agents or nominees for the purpose of retaining physical possession of the Subject Collateral, (c) notify the parties obligated on any of the Subject Collateral to make payment directly to Administrative Agent of any amounts due or to become due thereunder,(d) endorse any checks, drafts or other writings in the name of Pledgor to allow collection of the Subject Collateral, (e) enforce collection of any of the Subject Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto, and (f) take control of any proceeds of the Subject Collateral.
  
 5. Voting Rights, Dividends, etc. Notwithstanding any other provisions contained in this Agreement, so long as the Obligations shall be outstanding, and so long as Administrative Agent has not given the notice referred to in clause (c) below:
  
  
 	 
	3
	

	 

 
 
  
 
 (a) Pledgor shall be entitled to exercise any and all voting or consensual rights and powers and purchase or subscription rights (provided that any exercise by Pledgor of such purchase or subscription rights may be made only from funds of Pledgor not comprising the Subject Collateral) relating or pertaining to the Subject Collateral or any part thereof for any purpose; provided, further, that Pledgor agrees that it will not exercise any such rights or powers in any manner which would have a Material Adverse Effect on the value of the Subject Collateral or any part thereof or any other material adverse effect in relation to the Subject Collateral or the Pledgor Obligations;
  
 (b) Pledgor shall be entitled to receive and retain any and all dividends, interest or other cash distributions payable on or in respect of the Subject Collateral which are paid in cash if such dividends, interest or other distributions are permitted by the Credit Documents, but all dividends, interest and distributions in respect of the Subject Collateral or any part thereof made in Subject Securities, whether resulting from a subdivision, combination or reclassification of Subject Collateral or any part thereof or received in exchange for Subject Collateral or any part thereof or as a result of any merger, consolidation, acquisition or other exchange of assets to which any Person who issues a Subject Security may be a party or otherwise or as a result of any exercise of any purchase or subscription rights, shall be and become part of the Subject Collateral hereunder and, if certificated and received by Pledgor, shall be forthwith delivered to Administrative Agent in due form for transfer (i.e., endorsed in blank or accompanied by stock or bond powers executed in blank) to be held for the purposes of this Agreement; and
  
 (c) During the continuance of an Event of Default, following notice delivered to Pledgor from Administrative Agent, all rights and powers which Pledgor is entitled to exercise pursuant to this Section 5, and all rights of Pledgor to receive and retain dividends pursuant to clause (b) hereof, shall forthwith cease, and all such rights and powers shall thereupon become vested in Administrative Agent which shall have, during the continuance of such Event of Default, the sole and exclusive authority to exercise such rights and powers and to receive such dividends, interest or other distributions. Any and all money and other property paid over to or received by Administrative Agent pursuant to this clause (c) shall be retained by Administrative Agent as additional Subject Collateral hereunder and applied in accordance with the provisions hereof.
  
 6. Remedies. During the continuance of an Event of Default, Administrative Agent may exercise from time to time any rights and remedies available to it under the UCC as in effect in the State of New York or otherwise available to it under the Credit Documents or other applicable law. Without limiting the foregoing, whenever an Event of Default shall exist, Administrative Agent, to the extent necessary to satisfy the Pledgor Obligations, (a) may, to the fullest extent permitted by applicable law, without notice, advertisement, hearing or process of law of any kind, (i) sell any or all of the Subject Collateral, free of all rights and claims of Pledgor therein and thereto, at any public or private sale and (ii) bid for and purchase any or all of the Subject Collateral at any such public sale and (b) shall have the right, for and in the name, place and stead of Pledgor, to execute endorsements, assignments and other instruments of conveyance or transfer with respect to all or any of the Subject Collateral. Pledgor hereby expressly waives, to the fullest extent permitted by applicable law, any and all notices, advertisements, hearings or process of law in connection with the exercise by Administrative Agent of any of its rights and remedies during the continuance of an Event of Default. Any notification of intended disposition of any of the Subject Collateral shall be deemed reasonably and properly given if given at least ten (10) days before such disposition. Any proceeds of any of the Subject Collateral may be applied by Administrative Agent to the payment of reasonable and documented expenses in connection with the Subject Collateral, including, without limitation, reasonable and documented external attorneys’ fees and legal expenses, and any balance of such proceeds may be applied by Administrative Agent toward the payment of the Pledgor Obligations, and in such order of application, as Administrative Agent may from time to time elect (and, after payment in full of all Pledgor Obligations, any excess shall be delivered to Pledgor or as a court of competent jurisdiction shall direct).
  
  
 	 
	4
	

	 

 
 
  
 
 Administrative Agent is hereby authorized to comply with any limitation or restriction in connection with any sale of Subject Collateral as it may be advised by counsel is necessary in order to (a) avoid any violation of applicable law (including, without limitation, compliance with such procedures as may restrict the number of prospective bidders or purchasers and/or further restrict such prospective bidders or purchasers to persons or entities who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of the Subject Collateral) or (b) obtain any required approval of the sale or of the purchase by any Governmental Authority, and Pledgor agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner and that Administrative Agent shall not be liable or accountable to Pledgor for any discount allowed by reason of the fact that such Subject Collateral is sold in compliance with any such limitation or restriction. Pledgor waives any right it may now or hereafter have to require Administrative Agent to marshal any of the collateral from time to time securing the Pledgor Obligations.
  
 7. Waiver of Transfer Restrictions. Pledgor and the Company hereby consent to the terms and conditions contained in this Agreement, to the transactions contemplated thereby and to all future amendments thereto, notwithstanding any limitations or restrictions on such transactions set forth in the governing documents of Company or otherwise with respect to the transfer of any of the Subject Collateral. Without limiting the foregoing, Pledgor and the Company agree that any rights of first refusal, options to purchase or other conditions or restrictions affecting the transfer of any of the Subject Collateral shall not be triggered by, or otherwise in any respect be applicable to, the execution and delivery of this Agreement or the exercise of Administrative Agent’s rights and remedies under this Agreement, as amended, restated, amended and restated, supplemented or otherwise modified from time to time, and upon Administrative Agent’s exercise of its rights and remedies under this Agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), Administrative Agent, a purchaser at a foreclosure sale of the Subject Collateral or any such party’s designee shall be immediately and automatically admitted as an owner of the Company with all ownership rights accruing to it (including, without limitation, all rights to distributions and voting) without the need to obtain the consent of any owner or the Company or to provide or comply with a right of first refusal or option to purchase with respect to any of the Subject Collateral in favor of any owner, the Company or any other Person, notwithstanding anything in the governing documents of Company, any agreement to which the Pledgor is now or hereafter a party with respect to any of the Subject Collateral or otherwise to the contrary or in conflict thereof.
  
 8. Representations and Warranties of Pledgor.
  
 To induce Administrative Agent to enter into the Credit Documents and extend credit to Company, Pledgor represents and warrants to Administrative Agent as follows:
  
  
 	 
	5
	

	 

 
 
  
 
 (a) Benefit. Pledgor is the sole equity holder of Company, and has received, or will receive, direct or indirect benefit from the making of this Agreement with respect to the Pledgor Obligations.
  
 (b) Familiarity and Reliance. Pledgor is familiar with, and has independently reviewed the books and records regarding, the financial condition of the Company and is familiar with the value of any and all Subject Collateral intended to be created as security for the payment of the Pledgor Obligations; provided, however, that Pledgor is not relying on such financial condition or the collateral as an inducement to enter into this Agreement.
  
 (c) No Representation By Administrative Agent. Neither Administrative Agent nor any other party has made any representation, warranty or statement to Pledgor in order to induce Pledgor to execute this Agreement.
  
 (d) Pledgor's Financial Condition. As of the date hereof, and after giving effect to this Agreement, Pledgor is, and will be, solvent, and has and will have assets which, fairly valued, exceed its obligations, liabilities (including contingent liabilities) and debts, and has and will have property and assets sufficient to satisfy and repay its obligations and liabilities.
  
 (e) Due Execution and Authorization.
  
 (1) Pledgor is a corporation, duly organized, validly existing and in good standing under the laws of its state of organization.
  
 (2) The execution, delivery and performance by Pledgor of the Credit Documents to which it is a party, and the consummation by Pledgor of the transactions contemplated thereby, (i) have been duly authorized by all requisite action of Pledgor and have been duly executed and delivered by Pledgor; (ii) do not violate any provisions of (A) any applicable law except where such violation would not reasonably be expected to have a Material Adverse Effect, (B) any order of any Governmental Authority binding on Pledgor or any of its properties except where such violation would not reasonably be expected to have a Material Adverse Effect, or (C) the bylaws (or any other equivalent governing agreement or document) of Pledgor, or any agreement between Pledgor and its equity owners or among any such equity owners; (iii) are not in conflict with, and do not result in a breach or default of or constitute an event of default, or an event, fact, condition or circumstance which, with notice or passage of time, or both, would constitute or result in a conflict, breach, default or event of default under, any indenture, agreement or other instrument to which Pledgor is a party, or by which the properties or assets of Pledgor are bound except where such conflict or breach would not reasonably be expected to have a Material Adverse Effect; (iv) except as set forth herein or therein, will not result in the creation or imposition of any Lien of any nature upon any of the properties or assets of Pledgor, and (v) except for filings in connection with the perfection of Administrative Agent’s Liens, do not require the consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority or any other Person that has not been obtained.
  
  
 	 
	6
	

	 

 
 
  
 
 (3) This Agreement is a legal and binding obligation of Pledgor and is enforceable in accordance with its terms, except as limited by any Debtor Relief Law relating to the enforcement of creditors’ rights.
  
 (4) Pledgor has all requisite power and authority to own its properties and assets and to carry on its business as now being conducted and as contemplated in the Credit Documents, and is duly qualified to do business in all of the jurisdictions in which the failure to so qualify would reasonably be expected to cause a Material Adverse Effect. Pledgor has all requisite power and authority to execute, deliver and perform the Credit Documents to which it is a party and to consummate the transactions contemplated under the Credit Documents to which it is a party.
  
 (5) Pledgor is not an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended, nor controlled by such an “investment company.”
  
 (f) Other Agreements. As of the Closing Date, Pledgor is not (a) a party to any judgment, order or decree or any agreement, document or instrument, or subject to any restriction, which would have a Material Adverse Effect on its ability to execute and deliver, or perform under, any Credit Document or to pay the Pledgor Obligations, (b) in default in the performance, observance or fulfillment of any obligation, covenant or condition contained in any agreement, document or instrument to which it is a party or to which any of its properties or assets are subject, except where such default would not reasonably be expected to have a Material Adverse Effect nor is there any event, fact, condition or circumstance which, with notice or passage of time or both, would constitute or result in a conflict, breach, default or event of default under, any of the foregoing except where such conflict, breach, default or event of default would not reasonably be expected to have a Material Adverse Effect, or (c) a party or subject to any agreement, document or instrument with respect to, or obligation to pay any, service or management fee with respect to, the ownership, operation, leasing or performance of any of its business.
  
 (g) Litigation. As of the Closing Date, there are no Adverse Proceedings pending against Pledgor except for Adverse Proceedings that would not reasonably be expected to have a Material Adverse Effect. Pledgor is not (a) in violation of any Requirements of Law except for violations that would not reasonably be expected to have a Material Adverse Effect, or (b) subject to or in default with respect to any judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other Governmental Authority except for a default that would not reasonably be expected to have a Material Adverse Effect.
  
 (h) Financial Statements and Reports. All written financial statements and written financial information relating to Pledgor that have been or may hereafter be delivered to Administrative Agent by Pledgor (a) are consistent with the books of account and records of Pledgor, (b) have been prepared in accordance with GAAP, on a consistent basis throughout the indicated periods, except that the unaudited financial statements contain no footnotes or year-end adjustments, and (c) present fairly in all material respects the financial condition, assets and liabilities and results of operations of Pledgor at the dates and for the relevant periods indicated in accordance with GAAP on a basis consistently applied. Pledgor does not have any material obligations or liabilities of any kind required to be disclosed therein that are not disclosed in such financial statements.
  
  
 	 
	7
	

	 

 
 
  
 
 (i) Compliance with Law. Pledgor (a) is in material compliance with all applicable laws except where such noncompliance would not reasonably be expected to have a Material Adverse Effect, and (b) is not in violation of any order of any Governmental Authority or other board or tribunal except where such violation would not reasonably be expected to have a Material Adverse Effect. Pledgor has not received any notice that Pledgor is not in material compliance in any respect with any of the requirements of any of the foregoing. No ERISA Event has occurred or is reasonably expected to occur which would reasonably be expected to result in a Material Adverse Effect.
  
 (j) Licenses and Permits; Labor. Pledgor is in material compliance with and has all permits necessary or required by applicable law or any Governmental Authority for the operation of its business as presently conducted and as proposed to be conducted, except where the failure to have such permits would not reasonably be expected to have a Material Adverse Effect. All permits necessary or required by applicable law or Governmental Authority for the operation of Pledgor’s businesses are in full force and effect and not in known conflict with the rights of others, except where the failure to have such permits or such conflict would not reasonably be expected to have a Material Adverse Effect. Pledgor has not been involved in any labor dispute, strike, walkout or union organization.
  
 (k) Anti-Terrorism; OFAC.
  
 (1) To the extent applicable, Pledgor is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Act”). No part of the proceeds of the Term Loans will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended to the date hereof and from time to time hereafter, and any successor statute.
  
 (2) Pledgor conducts its operations in compliance in all material respects with International Trade Laws. Neither the Pledgor, nor to the Pledgor’s knowledge, any of its officers, directors, employees or agents have, within the past five years, engaged in any activity or transaction prohibited by applicable export, import, anti-money laundering, anti-bribery, anticorruption or non-U.S. sanctions and trade embargo laws and regulations in connection with Pledgor’s operations. Neither the Pledgor nor any of its officers, directors, employees or agents has, within the past five years, engaged in any activity or transaction prohibited by economic sanctions laws and trade embargoes administered by the U.S. Department of State or OFAC.
  
  
 	 
	8
	

	 

 
 
  
 
 9. Attorney in Fact. Pledgor hereby irrevocably appoints Administrative Agent as its limited attorney-in-fact in accordance with the powers granted in connection with this Agreement (without requiring Administrative Agent to act as such), with full power of substitution, which appointment as limited attorney-in-fact is irrevocable during the term of this Agreement, to take any action Administrative Agent deems necessary during the continuance of an Event of Default to perfect, protect and realize upon its Lien and first priority security interest in the Subject Collateral, including the execution and delivery of any and all documents or instruments related to the Subject Collateral in Pledgor’s name, or otherwise to effect fully the purpose, terms and conditions of this Agreement and the other Credit Documents, and said appointment shall create in Administrative Agent a power coupled with an interest.
  
 10. General.
  
 (a) Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Subject Collateral if it takes such action for that purpose as Pledgor shall request in writing, but failure of Administrative Agent to comply with any such request shall not of itself be deemed a failure to exercise reasonable care, and no failure of Administrative Agent to preserve or protect any rights with respect to the Subject Collateral against prior parties, or to do any act with respect to preservation of the Subject Collateral not so requested by Pledgor, shall be deemed a failure to exercise reasonable care in the custody or preservation of any Subject Collateral.
  
 (b) No delay on the part of Administrative Agent in exercising any right, power or remedy shall operate as a waiver thereof, and no single or partial exercise of any such right, power or remedy shall preclude any other or further exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement shall be effective unless the same shall be in writing and signed and delivered by Administrative Agent and Pledgor, and then such amendment, modification, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
  
 (c) All obligations of Pledgor and all rights, powers and remedies of Administrative Agent expressed herein are in addition to all other rights, powers and remedies possessed by them, including, without limitation, those provided by applicable law or in any other written instrument or agreement relating to any of the Pledgor Obligations or any security therefor.
  
 (d) Upon notice to Pledgor, Administrative Agent may assign, without Pledgor’s consent, its interests in this Agreement and the other Credit Documents to any other Person, including, without limitation, any of Administrative Agent’s Affiliates.
  
 (e) This Agreement shall be binding upon Pledgor and Administrative Agent and their respective successors and assigns, and shall inure to the benefit of Pledgor and Administrative Agent and the successors and assigns of Administrative Agent.
  
  
 	 
	9
	

	 

 
 
  
 
 11. Governing Law; Jurisdiction; Service of Process; Venue.
  
 (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS CHOICE OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF A DIFFERENT JURISDICTION.
  
 (b) BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
  
 (c) PLEDGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT REFERRED TO IN CLAUSE (B) OF THIS SECTION 11. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
  
  
 	 
	10
	

	 

 
 
  
 
 12. TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, PLEDGOR AND ADMINISTRATIVE AGENT EACH HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND OR CLARIFY ANY RIGHT, POWER, REMEDY OR DEFENSE ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN, WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE, OR WITH RESPECT TO ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY; AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY. PLEDGOR AND ADMINISTRATIVE AGENT EACH FURTHER WAIVES ANY RIGHT TO SEEK TO CONSOLIDATE ANY SUCH LITIGATION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED. FURTHER, PLEDGOR AND ADMINISTRATIVE AGENT EACH HEREBY CERTIFIES THAT NO REPRESENTATIVE OR ADMINISTRATIVE AGENT OF LENDER, INCLUDING ADMINISTRATIVE AGENT’S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ADMINISTRATIVE AGENT WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. PLEDGOR AND ADMINISTRATIVE AGENT EACH ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT TO ADMINISTRATIVE AGENT AND LENDERS’ ACCEPTANCE OF THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AS APPLICABLE.
  
 13. Credit Agreement. Pledgor hereby agrees to be bound by any covenants stated to be binding upon it in the Credit Agreement and such covenants are hereby incorporated by reference as if fully set forth herein.
  
 14. Modification. This Agreement shall not be modified, supplemented, or terminated, nor any provision hereof waived, except by a written instrument signed by the party against whom enforcement thereof is sought, and then only to the extent expressly set forth in such writing.
  
 15. Duplicate Originals; Counterparts. This Agreement may be executed in any number of duplicate originals, and each duplicate original shall be deemed to be an original. This Agreement (and each duplicate original) also may be executed in any number of counterparts, each of which shall be deemed an original and all of which together constitute a fully executed Agreement even though all signatures do not appear on the same document. Receipt of an executed signature page to this Agreement by facsimile, portable document format (.pdf) attachment to an email or other electronic transmission shall constitute effective delivery thereof.
  
 16. Recitals. The recital and introductory paragraphs hereof are a part hereof, and form a basis for this Agreement and shall be considered prima facie evidence of the facts and documents referred to therein.
  
 17. Termination or Release. This Agreement and the security interests granted hereby shall terminate as set forth in Section 9.7 of the Credit Agreement.
  
 [Remainder of Page Intentionally Blank; Signatures on following page]
  
  
 	 
	11
	

	 

 
 
  
 
  
 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year first written above.
  
  
 	Address for notices:	 	 	PLEDGOR:	 
	  
	  
	  
	  
	  

	 The Healing Company, Inc. 
	  
	  
	 THE HEALING COMPANY INC.,
	  

	 11th Floor, Ten Grand Street 
	  
	  
	 a Nevada corporation
	  

	 Brooklyn, NY 11249
 Attn: Simon Belsham
 Email: simon@healingcompany.com 
	 	By:	 
	 
	Telephone: 551.775.8612	 	Name: 	Simon Belsham	 
		 	Title: 	Chief Executive Officer	 
	  
	  
	  
	  
	  

	 With a copy to:
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 Chapman and Cutler LLP
 Attn: Aaron J. Efta
 320 South Canal Street
 Chicago, IL 60606
 Email: ajefta@chapman.com
 Telephone: 312.845.3796
	  
	  
	  
	  

 
 
  
 
 [Signature Page to Pledge Agreement]
  
  
 	 
	12
	

	 

 
 
  
 
  
 	Address for Notices:	 	 	ADMINISTRATIVE AGENT:	 
	  
	  
	  
	  
	  

	Westmount Group LLC	 	 	WESTMOUNT GROUP LLC	 
	 900 Third Avenue, #1403
 New York, NY 10022
 Attention: Portfolio Manager – Healing
	  
	 By: 
	 
	  

	Email: Healing@i80group.com	 	Name: 	Marc Helwani	 
		 	Title:	Managing Member	 
	  
	  
	  
	  
	  

	 With a copy to:
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 Holland & Knight LLP 
 One Arts Plaza
 1722 Routh Street, Suite 1500
 Dallas, Texas 75201
 Telephone No. (214) 964-9490
 Facsimile: (214) 964-9501 
 Attn: Joe Steinberg
	  
	  
	  
	  

 
 
  
 
 [Signature Page to Pledge Agreement]
  
  
 	 
	13
	

	 

 
 
  
 
 ACKNOWLEDGMENT
  
 The undersigned hereby acknowledges receipt of a copy of the foregoing Agreement, agrees to the terms of, and agrees to be bound by, the Agreement and to promptly note on its books and records the security interests granted under such Agreement, and waives any rights or requirement at any time hereafter to receive a copy of such Agreement in connection with the registration of any of the Subject Collateral in the name of Administrative Agent or its nominee or the exercise of voting rights by Administrative Agent, and, after written notice from Administrative Agent that an Event of Default has occurred, each agrees, that in acting upon the instructions of Administrative Agent, it will not require the further consent of, or seek further instruction from, Pledgor at any time. The undersigned will not permit Pledgor or any other person to opt into Article 8 of the applicable Uniform Commercial Code with respect to its Subject Securities without the express, prior written consent of Administrative Agent.
  
  
  
  
 	  
	 Acknowledged and Agreed:
	  

	  
	  
	  

	 	HLCO BORROWER, LLC, a	
	  
	 Delaware limited liability company
	  

	 	 	 	 
		By:	 
	
	  
	 Name: 
	 Simon Belsham
	 
	 	Title: 	Authorized Officer	 
	 	 	 	 

 
 
  
 
 [Signature Page to Pledge Agreement]
  
  
 
 	 
	14hlco_ex1018.htm

EXHIBIT 10.18
  
 GUARANTY
  
 FOR VALUE RECEIVED, and in consideration of any loan or other financial accommodation heretofore or hereafter at any time made or granted to HLCO BORROWER, LLC, a Delaware limited liability company (“Company”) pursuant to the Credit Agreement (defined below), THE HEALING COMPANY INC., a Nevada corporation (“Guarantor”) hereby agrees, in favor of the Lenders and the Administrative Agent, as of August 4, 2022 as follows:
  
 1. Guaranty of Obligations. Guarantor unconditionally, absolutely, and irrevocably guarantees the full and prompt payment and performance when due, whether at stated maturity, by required prepayment, declaration, demand, acceleration or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), and at all times thereafter, of all obligations of Company to Administrative Agent for the benefit of the Lenders, or to Lenders, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, or now or hereafter existing or due or to become due, under or in connection with (and as defined in) that certain Credit Agreement, dated as of the date hereof, among the Company, Guarantor, the Lenders from time to time party thereto, and WESTMOUNT GROUP LLC (“Administrative Agent”) (including all annexes, exhibits and schedules thereto, and as from time to time amended, restated, amended and restated, supplemented or otherwise modified, the “Credit Agreement”) including, without limitation, all Obligations (all such obligations are herein referred to, collectively, as the “Liabilities”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement. This agreement (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Guaranty”) is a guaranty of payment and performance when due and not of collection.
  
 During the continuance of an Event of Default, Guarantor agrees on demand by Administrative Agent to pay and perform all of the Liabilities as are then or thereafter become due and owing or are to be performed under the terms of the Credit Documents. Guarantor further agrees to pay all expenses (including, without limitation, reasonable and documented outside counsel fees and expenses) paid or incurred by Administrative Agent in endeavoring to collect the Obligations, or any part thereof, and in enforcing this Guaranty.
  
 2. Continuing Nature of Guaranty and Liabilities; Termination. This Guaranty shall be continuing and shall not, to the fullest extent permitted by law, be discharged, impaired or affected by:
  
 (a) the insolvency of Company, Guarantor or any other Credit Party or, except as otherwise provided herein, the indefeasible payment in full of all of the Liabilities at any time or from time to time prior to termination of the Credit Agreement and the other Credit Documents and the full and final release and discharge of all obligations of all parties thereunder (other than contingent indemnification obligations which are not yet due and payable);
  
 [Healing Company] Guaranty
  
  
 	 
	1
	

	 

 
 
  
 
 (b) the power or authority or lack thereof of Company to incur the Liabilities;
  
 (c) the validity or invalidity of any of the Credit Documents or any other documents securing the same;
  
 (d) the existence or non-existence of Company as a legal entity;
  
 (e) any transfer by Company of all or any part of any Collateral in which the Administrative Agent has been granted a lien or security interest pursuant to the Credit Documents;
  
 (f) any statute of limitations affecting the liability of any Guarantor under this Guaranty or the Credit Documents or the ability of Administrative Agent to enforce this Guaranty or any provision of the Credit Documents; or
  
 (g) any right of offset, recoupment, counterclaim or defense of Guarantor whatsoever (other than payment in full and performance in full of all of the Liabilities (other than contingent indemnification obligations not yet due and payable) in accordance with the terms of the Credit Documents), including, without limitation, those defenses and other items which have been waived by Guarantor pursuant to Paragraphs 6 and 8 hereof.
  
 3. Insolvency of Company or Guarantor. Without limiting the generality of any other provision hereof, during the continuance of an Event of Default under Section 7.1(f) or (g) of the Credit Agreement, Guarantor will pay to the Administrative Agent forthwith the full amount which would be payable hereunder by Guarantor as if all of the Liabilities were then due and payable, whether or not such event occurs at a time when any of the Liabilities are otherwise due and payable.
  
 4. Payment of the Liabilities. Any amounts received by the Administrative Agent from whatever source on account of the Liabilities shall be applied toward the payment of such Liabilities, and in such order of application, as provided in the Credit Agreement, and notwithstanding any payments made by or for the account of Guarantor pursuant to this Guaranty.
  
 Guarantor agrees that, if at any time all or any part of any payment theretofore applied by the Administrative Agent to any of the Liabilities is or must be rescinded or returned by the Administrative Agent, as applicable, for any reason whatsoever (including, without limitation, the insolvency, bankruptcy or reorganization of Company), such Liabilities shall, for the purposes of this Guaranty and to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence notwithstanding such application by the Administrative Agent, as applicable, and this Guaranty shall continue to be effective or be reinstated, as the case may be, as to such Liabilities, all as though such application by the Administrative Agent, as applicable, had not been made.
  
 5. Permitted Actions of Administrative Agent. Administrative Agent may from time to time, in its sole discretion and without notice to Guarantor, take any or all of the following actions:
  
 (a) retain or obtain, in its own name or through an agent, a security interest in any assets of Company or any third party to secure any of the Liabilities or any obligations of Guarantor hereunder;
  
 [Healing Company] Guaranty
  
  
 	 
	2
	

	 

 
 
  
 
 (b) retain or obtain the primary or secondary obligation of any obligor or obligors, in addition to Guarantor, with respect to any of the Liabilities;
  
 (c) extend or renew for one or more periods (whether or not longer than the original period), alter, exchange or increase any of the Liabilities;
  
 (d) waive, ignore or forbear from taking action or otherwise exercising any of its default rights or remedies with respect to any default by Company under the Credit Documents;
  
 (e) release, waive or compromise any obligation of any Guarantor hereunder or any obligation of any nature of any other obligor primarily or secondarily obligated with respect to any of the Liabilities, without notice to any other obligor or any other guarantor;
  
 (f) release any security interest in, or surrender, release or permit any substitution or exchange for, all or any part of any collateral, including, but not limited to the Collateral, now or hereafter securing any of the Liabilities or any obligation hereunder, or extend or renew for one or more periods (whether or not longer than the original period) or release, waive, compromise, alter or exchange any obligations of any nature of any obligor with respect to any such property or permit the Administrative Agent to do any of the foregoing;
  
 (g) demand payment or performance of any of the Liabilities which are due and owing from Guarantor at any time or from time to time, whether or not Administrative Agent shall have exercised any of its rights or remedies with respect to any property securing any of the Liabilities or any obligation hereunder, or proceed against any other obligor primarily or secondarily liable for payment or performance of any of the Liabilities; and
  
 (h) exercise or refrain from exercising any rights under the Credit Documents against Company or any other Person or otherwise act or refrain from acting or permit the Administrative Agent or any other Person so entitled to do or refrain from doing any of the foregoing.
  
 6. Specific Waivers. Without limiting the generality of any other provision of this Guaranty, Guarantor hereby expressly waives, to the fullest extent permitted by applicable law:
  
 (a) notice of the acceptance by any beneficiary of this Guaranty;
  
 (b) notice of the existence, creation, payment, nonpayment, performance or nonperformance of all or any of the Liabilities;
  
 (c) presentment, demand, notice of dishonor, protest, notice of protest, notice of intent to accelerate, notice of acceleration, and all other notices whatsoever with respect to the payment or performance of the Liabilities or the amount thereof or any payment or performance by Guarantor hereunder;
  
 (d) all diligence in collection or protection of or realization upon the Liabilities or any thereof, any obligation hereunder or any security for or guaranty of any of the foregoing;
  
 [Healing Company] Guaranty
  
  
 	 
	3
	

	 

 
 
  
 
 (e) any right to direct or affect the manner or timing of Administrative Agent’s enforcement of their rights or remedies;
  
 (f) any defense, right of set-off, recoupment, or other claim whatsoever (other than payment in full and performance in full of all of the Liabilities in accordance with the terms of the Credit Documents) that Company or any third party may or might have to the payment or performance of the Liabilities;
  
 (g) any and all defenses which would otherwise arise upon the occurrence of any event or contingency described in Paragraph 2 hereof or upon the taking of any action by Administrative Agent permitted hereunder;
  
 (h) any defense, right of set-off, recoupment, claim or counterclaim whatsoever (other than payment and performance in full of all of the Liabilities in accordance with the terms of the Credit Documents), and any and all other rights, benefits, protections and other defenses which Guarantor may have, against Administrative Agent now or at any time hereafter, to full payment or performance of the Liabilities pursuant to the terms of this Guaranty; and
  
 (i) all other principles or provisions of law, if any, that conflict with the terms of this Guaranty, including, without limitation, the effect of any circumstances that may or might constitute a legal or equitable discharge of a guarantor or surety.
  
 7. Irrevocability. Guarantor hereby further waives all rights to revoke this Guaranty at any time, and all rights to revoke any agreement executed by Guarantor at any time to secure the payment and performance of Guarantor’s obligations under this Guaranty, including, without limitation, the Credit Documents to which it is a party.
  
 8. Waiver of Subrogation and Certain Other Rights. Prior to the satisfaction in full of all Liabilities (other than indemnification and other contingent Obligations, in each case not yet due and payable or in respect of which no assertion of liability and no claim or demand for payment has been made), Guarantor hereby waives and shall have no right of subrogation, reimbursement, exoneration, contribution or indemnity against Company, for any reason, including but not limited to by reason of any payments made or acts performed by Guarantor in compliance with the obligations of Guarantor hereunder or any actions taken by Administrative Agent pursuant to this Guaranty or pursuant to the Credit Documents.
  
 Guarantor agrees that nothing contained in this Guaranty shall prevent Administrative Agent from suing to collect on the Liabilities or from exercising, or allowing Administrative Agent to exercise, concurrently or successively any rights available to any of them at law and/or in equity or under any of the Credit Documents, and that the exercise of any of the aforesaid rights shall not constitute a legal or equitable discharge of Guarantor. Guarantor hereby authorizes and empowers Administrative Agent to exercise, in their sole discretion, any rights and remedies, or any combination thereof, which may then be available, since it is the intent and purpose of Guarantor that the obligations hereunder shall be absolute, independent and unconditional under any and all circumstances.
  
 [Healing Company] Guaranty
  
  
 	 
	4
	

	 

 
 
  
 
 Notwithstanding any foreclosure of the lien of any deed of trust or security agreement with respect to any or all of any real or personal property secured thereby, whether by the exercise of the power of sale contained therein, by an action for judicial foreclosure, or by the acceptance of a deed or possession of any other collateral in lieu of foreclosure, Guarantor shall remain bound under this Guaranty. Without limiting the generality of the foregoing, Guarantor specifically agrees that during the continuance of an Event of Default, Administrative Agent may, to the extent permitted by applicable law, elect to non-judicially or judicially foreclose against any real or personal property pledged to it under and in accordance with the terms of the Credit Documents, including but not limited to their rights under (i) that certain Pledge Agreement executed by Guarantor in favor of Administrative Agent and (ii) that certain Security Agreement executed by Company in favor of Administrative Agent, or exercise any other remedy against Company or Guarantor, any security for the Liabilities or any other guarantor, even if the effect of that action is to deprive Guarantor of the right to collect reimbursement from the applicable third party for any sums paid to the Administrative Agent hereunder.
  
 9. Covenants. Guarantor hereby covenants and agrees as follows:
  
 (a) Guarantor agrees that it shall, to the extent within its power, take all action necessary to permit or enable Company to comply with Company’s obligations under the Credit Agreement; and
  
 (b) except as permitted under the Credit Documents with respect to cash distributions by Company to Guarantor, Guarantor shall not, until (a) indefeasible payment and satisfaction in full in cash of the Obligations and (b) termination of the Credit Agreement and the other Credit Documents, accept any payment or other transfer of assets or funds from Company including, without limitation, the payment of any management, consulting or similar fees.
  
 10. Subordination. Guarantor hereby subordinates any and all indebtedness of Company to Guarantor to the full and prompt payment and performance of all of the Liabilities. Guarantor agrees that Administrative Agent and Lenders shall be entitled to receive payment of all Liabilities prior to Guarantor’s receipt of payment of any amount of any indebtedness of Company to Guarantor. Any payments on such indebtedness to Guarantor, if Administrative Agent so requests, shall be collected, enforced and received by Guarantor, in trust, as trustee for Administrative Agent and shall be paid over to Administrative Agent on account of the Liabilities, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty. Administrative Agent is authorized and empowered, but not obligated, in its sole discretion, (a) in the name of Guarantor, to collect and enforce, and to submit claims in respect of, indebtedness of Company to Guarantor and to apply any amounts received thereon to the Liabilities, and (b) to require Guarantor (i) to collect and enforce, and to submit claims in respect of, any indebtedness of Company to Guarantor, and (ii) to pay any amounts received on such indebtedness to Administrative Agent for application to the Liabilities.
  
 11. Assignment of Administrative Agent’s Rights. Administrative Agent and Lenders may, from time to time, without notice to Guarantor, assign or transfer any or all of the Liabilities or any interest therein (subject to such restrictions, if any, set forth in any Credit Document) and, notwithstanding any such assignment or transfer of the Liabilities or any subsequent assignment or transfer thereof, the Liabilities shall be and remain the Liabilities for the purpose of this Guaranty. Each and every immediate and successive assignee or transferee of any of the Liabilities or of any interest therein shall, to the extent of such party’s interest in the Liabilities, be entitled to the benefits of this Guaranty to the same extent as if such assignee or transferee were Administrative Agent or a Lender, as applicable; provided, however, that unless Administrative Agent shall otherwise consent in writing, Administrative Agent shall have an unimpaired right, prior and superior to that of any such assignee or transferee, to enforce this Guaranty for its own benefit as to those of the Liabilities which Administrative Agent has not assigned or transferred.
  
 [Healing Company] Guaranty
  
  
 	 
	5
	

	 

 
 
  
 
 12. Indulgences Not Waivers. No delay in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by Administrative Agent of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy; nor shall any modification or waiver of any of the provisions of this Guaranty be binding upon Administrative Agent, except as expressly set forth in a writing duly signed and delivered by Administrative Agent. No action of Administrative Agent permitted hereunder shall in any way affect or impair the rights of Administrative Agent or the obligations of Guarantor under this Guaranty.
  
 13. Financial Condition of Company. Guarantor represents and warrants that it is fully aware of the financial condition of Company, and Guarantor delivers this Guaranty based solely upon its own independent investigation of Company’s financial condition and in no part upon any representation or statement of Administrative Agent with respect thereto. Guarantor further represents and warrants that it is in a position to and hereby does assume full responsibility for obtaining such additional information concerning Company’s financial condition as Guarantor may deem material to its obligations hereunder, and Guarantor is not relying upon, nor expecting Administrative Agent to furnish it, any information in Administrative Agent’s possession concerning Company’s financial condition or concerning any circumstances bearing on the existence or creation, or the risk of nonpayment or nonperformance of the Liabilities.
  
 Guarantor hereby waives any duty on the part of Administrative Agent to disclose to Guarantor any facts Administrative Agent may now or hereafter know about Company, regardless of whether Administrative Agent has reason to believe that any such facts materially increase the risk beyond that which Guarantor intends to assume, or has reason to believe that such facts are unknown to Guarantor.
  
 Guarantor hereby knowingly accepts the full range of risk encompassed within a contract of “Guaranty” which includes, without limitation, the possibility that Company will contract for additional indebtedness for which Guarantor may be liable hereunder or otherwise after Company’s financial condition or ability to pay its lawful debts when they fall due has deteriorated.
  
 14. Representations and Warranties. Guarantor represents and warrants to Administrative Agent that each of the following statements is accurate and complete as of the date of this Guaranty:
  
 (a) Guarantor hereby confirms, adopts and makes, as to itself, as if set out in full herein, all of the other representations and warranties not expressly included in this Guaranty that are made by such Guarantor, or that are made by the Company solely to the extent such representations and warranties apply to Guarantor, in the Credit Agreement, including without limitation those representations and warranties that apply to the Guarantor made in Article IV of the Credit Agreement, and shall be deemed to have made all such representations and warranties, and Administrative Agent and each Lender shall be entitled to rely on each such representation and warranty, as to itself in this Guaranty as if set out in full herein; and
  
 [Healing Company] Guaranty
  
  
 	 
	6
	

	 

 
 
  
 
 (b) this Guaranty constitutes a legal, valid and binding obligation of Guarantor enforceable against Guarantor in accordance with its terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, debt arrangement, moratorium, dissolution or other laws of general application referring to or affecting the enforcement of creditors’ rights and remedies nor or hereafter in effect or general principles of equity.
  
 15. Guarantor Financial Information. Guarantor will provide Administrative Agent in writing such financial and other information with respect to its assets and liabilities as Administrative Agent shall reasonably request from time to time, in form and substance reasonably satisfactory to Administrative Agent.
  
 16. Binding Upon Successors. This Guaranty shall be binding upon Guarantor and its successors and assigns and shall inure to the benefit of Administrative Agent and its permitted successors and assigns. All references herein to “Company” shall be deemed to include Company and its successors and assigns, and all references herein to “Guarantor” shall be deemed to include Guarantor and its successors and assigns.
  
 In addition and notwithstanding anything to the contrary contained in this Guaranty or in any other document, instrument or agreement between or among any of Administrative Agent, Company, Guarantor or any third party, the obligations of Guarantor with respect to the Liabilities shall be joint and several with any other person or entity that now or hereafter executes a joinder to this guaranty, or otherwise guaranties any of the Liabilities separate from this Guaranty.
  
 17. Notices. All notices required or permitted to be given hereunder shall be in writing and shall be either personally delivered, faxed to the fax numbers provided herein or sent by United States certified or registered mail, postage prepaid, return receipt requested, addressed to Guarantor or Administrative Agent at their respective addresses stated below, or at such other address as either party hereafter notices the other party as herein provided. Notices shall be effective at the times and in the manner set forth in Section 9.1 of the Credit Agreement and to the addresses set forth on the signature pages hereto.
  
 [Healing Company] Guaranty
  
  
 	 
	7
	

	 

 
 
  
 
 18. Governing Law; Jurisdiction; Etc.
  
 (a) Governing Law. THIS GUARANTY SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS GUARANTY, GUARANTOR, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO GUARANTOR AT ITS ADDRESS PROVIDED ON THE SIGNATURE PAGES HERETO AND TO ANY PROCESS ADMINISTRATIVE AGENT APPOINTED BY IT IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER GUARANTOR IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (d) AGREES THAT ADMINISTRATIVE AGENT AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST GUARANTOR IN THE COURTS OF ANY OTHER JURISDICTION. GUARANTOR HEREBY AGREES THAT PROCESS MAY BE SERVED ON IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES PERTAINING TO IT AS SPECIFIED HEREIN. ANY AND ALL SERVICE OF PROCESS AND ANY OTHER NOTICE IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE EFFECTIVE AGAINST GUARANTOR IF GIVEN BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY ANY OTHER MEANS OR MAIL WHICH REQUIRES A SIGNED RECEIPT, POSTAGE PREPAID, MAILED AS PROVIDED ABOVE.
  
 19. ENTIRE UNDERSTANDING. THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND ADMINISTRATIVE AGENT WITH RESPECT TO GUARANTOR’S GUARANTY OF THE LIABILITIES AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND ADMINISTRATIVE AGENT AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND ADMINISTRATIVE AGENT, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY. THERE ARE NO ORAL AGREEMENTS BETWEEN GUARANTOR AND ADMINISTRATIVE AGENT.
  
 20. Counterparts. To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making proof of this Guaranty to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages. Receipt of an executed signature page to this Guaranty by facsimile, portable document format (.pdf) attachment to an email or other electronic transmission shall constitute effective delivery thereof.
  
 [Healing Company] Guaranty
  
  
 	 
	8
	

	 

 
 
  
 
 21. Invalid Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining provisions of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be contrary to the basic understandings and intentions of the parties as expressed herein.
  
 22. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS GUARANTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL- ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS GUARANTY, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS GUARANTY, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 22 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
  
 23. Termination or Release. This Agreement and the guaranty made herein shall terminate, and the Collateral Agent shall deliver a release or other evidence of termination as set forth in Section 9.7 in the Credit Agreement.
  
 [Remainder of page intentionally left blank; signature page follows.]
  
 [Healing Company] Guaranty 
  
  
 	 
	9
	

	 

 
 
  
 
 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed as of the date first written above.
  
  
 	Address for notices:	 	GUARANTOR:	 
	  
	  
	  
	  
	  

	 The Healing Company Inc. 
	  
	 THE HEALING COMPANY INC.,
	  

	 11th Floor, Ten Grand Street
	  
	 a Nevada corporation
	  

	Brooklyn, NY 11249 Attn: Simon Belsham
 Email: simon@healingcompany.com
	 	By:	 
	 
	 Telephone: 551.775.8612
	 	Name:	Simon Belsham	 
		 	Title: 	Chief Executive Officer	 
	 With a copy to:
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 Chapman and Cutler LLP Attn: Aaron J. Efta
	  
	  
	  
	  

	 320 South Canal Street Chicago, IL 60606
	  
	  
	  
	  

	 Email: ajefta@chapman.com
	  
	  
	  
	  

	 Telephone: 312.845.3796
	  
	  
	  
	  

 
 
  
 
 [Signature Page] 
 Guaranty
  
  
 	 
	10
	

	 

 
 
  
 
  
 	ACKNOWLEDGED AND AGREED as of the date first written above:	 	ADMINISTRATIVE AGENT:	 
	  
	  
	  
	  
	  

	 Address for Notices:
	  
	 WESTMOUNT GROUP LLC
	  

	  
	  
	  
	  
	  

	 Westmount Group LLC
	  
	  
	  
	  

	 900 Third Avenue, #1403
 New York, NY 10022
 Attention: Portfolio Manager – Healing Company
		By:	 
	 
	Email: Healing@i80group.com		Name:	Marc Helwani 	 
			Title:	Managing Member	 
	 With a copy to:
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 Holland & Knight LLP 
 One Arts Plaza
	  
	  
	  
	  

	 1722 Routh Street, Suite 1500
	  
	  
	  
	  

	 Dallas, Texas 75201
	  
	  
	  
	  

	 Telephone No. (214) 964-9490
	  
	  
	  
	  

	 Facsimile: (214) 964-9501
 Attn: Joe Steinberg
	  
	  
	  
	  

 
 
  
 
 [Signature Page]
 Guaranty
  
  
 	 
	11
	

	 

 
 
  
 
  
  
  
 	 ACKNOWLEDGED AND AGREED as of
	 
	 the date first written above:
	  

	  
	  

	 COMPANY:
	  

	  
	  
	  

	 HLCO BORROWER, LLC, a Delaware limited liability company
	  

	  
	  

	 By: 
	 
	 
	 Name:
	Simon Belsham	 
	 Title:
	Authorized Officer	 

 
 
  
 
 [Signature Page]
 Guaranty
  
  
 	 
	12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}]]