SEC Contract Filing

Filing Date: 2024-01-31

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>tilt-20240128xex10d2.htm
<DESCRIPTION>EX-10.2
<TEXT>
<!--Enhanced HTML document created with Toppan Merrill Bridge 10.5.122.0--><!--Created on: 1/31/2024 10:23:00 PM (UTC)--><!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"><html><head><meta charset="UTF-8"><title></title></head><body><div style="margin-top:30pt;"></div><div style="max-width:100%;padding-left:5.88%;padding-right:5.88%;position:relative;"><div style="clear:both;max-width:100%;position:relative;"><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:right;margin:0pt 0pt 12pt 0pt;"><b style="font-weight:bold;">Exhibit 10.2</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt 0pt 12pt 0pt;"><b style="font-weight:bold;">GUARANTY</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">This GUARANTY (this &#8220;<b style="font-weight:bold;">Guaranty</b>&#8221;) dated as of January 28, 2024 is made by TILT HOLDINGS INC., a corporation formed under the laws of British Columbia (&#8220;<b style="font-weight:bold;">TILT</b>&#8221;), JIMMY JANG, L.P., a Delaware limited partnership (&#8220;<b style="font-weight:bold;">JJLP</b>&#8221;), BAKER TECHNOLOGIES,&#8239;INC., a Delaware corporation (&#8220;<b style="font-weight:bold;">Baker</b>&#8221;), COMMONWEALTH ALTERNATIVE CARE,&#8239;INC., a Massachusetts corporation (&#8220;<b style="font-weight:bold;">CAC</b>&#8221;), JIMMY JANG HOLDINGS INC., a British Columbia corporation (&#8220;<b style="font-weight:bold;">JJH</b>&#8221;), JJ BLOCKER CO., a Delaware corporation (&#8220;<b style="font-weight:bold;">JJB</b>&#8221;), SFNY HOLDINGS, INC., a Delaware corporation (&#8220;<b style="font-weight:bold;">SFNY</b>&#8221;), SEA HUNTER THERAPEUTICS, LLC, a Delaware limited liability company (&#8220;<b style="font-weight:bold;">SEA</b>&#8221;), STANDARD FARMS OHIO LLC, an Ohio limited liability company (&#8220;<b style="font-weight:bold;">SF Ohio</b>&#8221;), STANDARD FARMS LLC, a Pennsylvania limited liability company (&#8220;<b style="font-weight:bold;">SF Penn</b>&#8221;), SH FINANCE COMPANY, LLC, a Delaware limited liability company (&#8220;<b style="font-weight:bold;">SF Finance</b>&#8221;, together with TILT, JJLP, Baker, CAC, JJH, JJB, SFNY, SEA, SF Ohio, and SF Penn, each individually, and collectively, &#8220;<b style="font-weight:bold;">Guarantor</b>&#8221;) in favor of SHENZHEN SMOORE TECHNOLOGY LIMITED, a company organized and existing under the laws of Peoples&#8217; Republic of China and each of its Affiliates that sells products to Jupiter (as defined below) and TILT from time to time (each individually, and collectively, the &#8220;<b style="font-weight:bold;">Seller</b>&#8221;). Guarantor and Seller may be referred to herein individually as a &#8220;<b style="font-weight:bold;">Party</b>&#8221; and all may be referred to collectively herein as the &#8220;<b style="font-weight:bold;">Parties</b>&#8221;.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Guarantor, in order to induce Seller to enter into that certain Debt and Security Agreement (the &#8220;<b style="font-weight:bold;">Debt and Security Agreement</b>&#8221;) dated as of even date herewith, by and among Guarantor, Jupiter Research LLC, an Arizona limited liability company (&#8220;<b style="font-weight:bold;">Jupiter</b>&#8221;), and Seller, agrees as set forth below.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt 0pt 12pt 0pt;"><b style="font-weight:bold;">RECITALS</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">WHEREAS, Seller manufactures vaping technology products (collectively, the &#8220;<b style="font-weight:bold;">Products</b>&#8221;) and sells such Products to Jupiter Research LLC, an Arizona limited liability company and TILT (each individually, and collectively, the &#8220;<b style="font-weight:bold;">Buyer</b>&#8221;) from time to time.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">WHEREAS, Seller is unwilling to sell Products to Buyer on credit (each such sale, a &#8220;<b style="font-weight:bold;">Credit Sale</b>&#8221;) without satisfactory assurances of payment.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">WHEREAS, Seller is ready, willing, and able to make Credit Sales to Buyer on the condition that Guarantor guaranty the payment of any of those amounts owed by Buyers to Seller with respect to Credit Sales that are in excess of the amounts for which Secured Party receives an insurance payment for any non-payment thereof (the &#8220;<b style="font-weight:bold;">Covered Amounts</b>&#8221;).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">WHEREAS, in consideration of the benefits accruing to it from the proposed additional sales of Products, Guarantor wishes to execute this Guaranty in favor of Seller.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">NOW, THEREFORE, for valuable consideration hereby acknowledged, and in consideration of the facts recited above, Guarantor hereby agrees as follows for the benefit of Seller.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:center;margin:0pt 0pt 12pt 0pt;"><b style="font-weight:bold;">AGREEMENT</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:j